Port of San Diego and San Diego County LAFCO Approve Memorandum of Understanding

The Port of San Diego and the San Diego County Local Agency Formation Commission (San Diego LAFCO) have approved a Memorandum of Understanding (MOU) that outlines a collaborative framework for the future relationship between the agencies. This agreement marks a significant step in fostering a cooperative relationship between the Port and LAFCO while respecting the Port’s unique mission and operations.

"The Port of San Diego successfully champions public access, the environment, and responsible economic development of San Diego Bay,” said Chairman Frank Urtasun, Port of San Diego Board of Port Commissioners. “We thank LAFCO Chairman Stephen Whitburn, the Commission, and the LAFCO team for coming together on an MOU that demonstrates the Port’s ongoing commitment to transparency, accountability, and integrity, and establishes collaboration between the two agencies to maintain open communication and achieve common objectives."

“I’d like to thank Chairman Urtasun and the Port Commissioners and staff for the collaborative process that produced this MOU,” said Stephen Whitburn, Chairman of San Diego LAFCO. “The Port is a tremendous asset to the San Diego region, and this agreement paves the way for our continued partnership to benefit the public.”

Provisions of the MOU include the following:

• Jurisdiction – acknowledges and specifies LAFCO areas of oversight and review of the Port, and the California State Lands Commission’s role in making recommendations.

• Changes of organization to Port territory – includes a process for cleanup and future annexations of territory into the Port and specifies that any change or reorganization of Port Tidelands must be done in consultation with and great deference to the recommendations of the California State Lands Commission, the state agency with oversight of the Port. 

• Sphere of Influence (SOI) – details how and when LAFCO will establish an interim SOI and future permanent SOI for the Port.

• Apportionment payment – as one of the special districts with LAFCO oversight, the Port will contribute its proportional apportionment share of LAFCO's budget, supporting the commission's operational costs.

• Municipal Services Reviews (MSRs) – provides a roadmap for and delineates the scope of LAFCO MSRs of the Port. LAFCO can conduct limited MSRs, focusing on specific Port services and operational aspects, while respecting state-mandated limitations. The first MSR under this agreement is anticipated to take place in 2026.

• Stakeholder group - if the Port agrees in writing, LAFCO agrees to make available a stakeholder group comprising board members of the San Diego Waterfront Association for purposes of ongoing consultation in preparation of the Inaugural MSR.  Note: as part of the Port Board's resolution approving the agreement, and in response to public feedback, the Port added language to the resolution to ensure diverse stakeholder representation inclusive of the Port’s member cities and communities.

LAFCO’s Board approved the MOU on December 2, 2024. The Board of Port Commissioners approved the MOU on December 10, 2024. The full MOU is available here.