City Attorney Michael Aguirre conceded the hotly contested city attorney’s race to Judge Jan Goldsmith Wednesday, citing special interest groups he believes contributed to the failure of his re-election campaign.

With a small fraction of precincts reporting early Tuesday night, support for Goldsmith surged to a substantial lead that carried through election night, granting Goldsmith a win by nearly 20 percent of the vote.

In a press conference to announce his concession, Aguirre admitted he was “surprised” by Goldsmith’s 60-40 lead.

Aguirre’s single term in office was plagued with controversy and public feuds between the city attorney and labor, Mayor Jerry Sanders, police and firefighters over wage increases, the City Council and development interests.

Aguirre was elected in 2004 to deal with the looming pension and securities crisis, however he faced a number of hiccups and rulings not in his favor along the way. His pension appeal, which seeks to overturn $900 million in pension benefits Aguirre says were illegally granted, is currently in the Court of Appeals.

Sanders and Aguirre’s strained relationship was born of several incidents: Sanders claimed Aguirre wrote a memo to the mayor during the October wildfires, urging Sanders to have an evacuation plan at the ready; and after the La Jolla landslides, Aguirre said publicly the city may have been at fault; perhaps most widely reported, during the Sunroad investigation, Aguirre called Sanders “corrupt.”

Aguirre also drew criticism during the election for his lawsuits to create a “foreclosure sanctuary” in San Diego. Goldsmith and Aguirre’s opponent in the primary election, City Council President Scott Peters, dismissed Aguirre’s attempts.

Throughout the campaign, Goldsmith delivered a nonpartisan message to voters, and said he would transform the office from a political vehicle to a legal department.

Goldsmith was the first elected mayor of Poway and was a member of the State Assembly from 1988 to 1998. In 1998 he launched a failed campaign to become the California State Treasurer, and he’s spent the last nine years as a Superior Court Judge. After his 1998 campaign, he says “politics were out of [his system],” but, he says, Aguirre’s actions, failed lawsuits, political crusades and mismanagement of the office prompted him to run against the incumbent.

“You have mayors who think they’re governors, governors who think they’re presidents and city attorneys who think they’re God,” Goldsmith said, during a meeting with the gay Log Cabin Republican group in September. “I don’t understand it. You do the job you were hired to do.

“If I’m going to do it, I’m going to do it my way, and I’m going to operate based on the law – not politics and not partisanship.”

Goldsmith was not available Wednesday for comment.

Now, Goldsmith will begin transitioning into the City Attorney’s Office. During Tuesday’s election returns, Goldsmith said he will consult the City Council on the next course of action regarding the pension appeal, according to The San Diego Union-Tribune.

Emboldened by a call for change from San Diego residents Wednesday, Goldsmith announced plans to re-craft the City Attorney’s Office and sent a memo to the current staff. In the letter, he indicated some, not all, staff will be let go.

“I would like to retain as many attorneys in our office as possible,” he wrote.

Those “interested in remaining,” will go through an abbreviated reapplication process.

During his press conference, Aguirre criticized Goldsmith for using the Labor Relations Department in the reapplication process, because the department falls under the mayor’s authority.

At his press conference, Aguirre did little to acknowledge personal failures that may have resulted in his loss, instead faulting The San Diego Union Tribune, the “Charger’s drumbeat,” the Chamber of Commerce and the “pension power boomers.”

“We still have, in San Diego, government by organized money,” Aguirre said.

He said he was unable to implement many of the fundamental reforms he planned at the beginning of his term.

Aguirre said he designated a coordinator and allotted office space for Goldsmith’s transition into office.

He also indicated his reluctance to return to public office, and said he will remain in private practice.