San Diego City Council Meeting – Monday, March 24, 2025

The San Diego City Council convened on March 24, 2025, at approximately 9:00 AM for the morning session, recessed into closed session, and reconvened at 2:00 PM for the regular meeting. The council considered three major agenda items: approval of a second amendment to the library systems contract (S400), an informational presentation on the FY2024 Business Diversity Annual Report (Item 200), and adoption of a Grocery Pricing Transparency Ordinance (S401). The meeting included extensive public testimony, deliberation, and votes on each item.

Consent Calendar

• No separate consent calendar was presented; all items were heard individually.

Public Comments & Testimony

• Closed Session (CS1 & CS2): One speaker expressed concerns about cybersecurity and budget priorities for legacy applications, and noted that a related contract item had been pulled from a previous committee meeting. The same speaker also commented on trip-and-fall liability and sidewalk safety.
• Item S400 – Library Systems Contract:
  • Cesar Javier criticized the contract oversight and alleged a lack of transparency, calling for audits.
  • Andrea Ebbing supported the library as a critical resource but questioned the city's contract management and the mayor's workload.
  • Remote speakers (Joyce Sonata, others) emphasized the vital nature of the ILS system, expressed concern about contract neglect, and noted the need for cybersecurity integration.
  • Blair Beekman praised the library as a community jewel and urged embedding cybersecurity measures into contract processes.
• Item 200 – Business Diversity Annual Report:
  • Cesar Javier argued that overlapping departmental responsibilities waste money and undermine equity.
  • Andrea Ebbing linked contract distribution to alleged county misconduct and unaddressed public safety issues.
  • Joyce Sonata highlighted declining diversity percentages, particularly for women in construction (from 4-3% to 1%) and in AE (from 15% to 7%), and noted zero awards to Black-owned firms in construction.
  • Francine Maxwell stated the report shows a lack of intentionality; the “George Floyd effect” has been retired, and she urged redirecting staffing from deputy COOs to equity programs.
• Item S401 – Grocery Pricing Transparency Ordinance:
  • Supporters: Paul Downey (Serving Seniors) called the ordinance critical for seniors on fixed incomes; Bob Pratt (AARP volunteer) described digital barriers as deepening inequality; Barry Berman (AARP volunteer) emphasized the digital divide; Bob Kaiser (senior citizen) shared personal difficulty without a smartphone; Tim James (California Grocers Association) opposed the current language, asking for a delay to avoid unintended consequences like loss of all coupons; Andrea Ebbing shifted to support the ordinance; multiple remote speakers (Thelma Navarro, Al Del Mastro, Julie Porter, John Brady, Elida Chavez, Francine Maxwell) shared personal struggles with digital coupons and urged passage; Blair Beekman recommended working on formulas to prevent price increases.
  • Opposition/Concerns: Al Del Mastro warned of overregulation and urged a conversation with grocers; Justine Murray (San Diego Regional Chamber of Commerce) expressed concerns about the lack of stakeholder outreach and possible negative effects on loyalty programs.
• Non-Agenda Public Comment: Speakers addressed topics including District 1 vacancy and county governance, a home-based ceramics kiln operation complaint, tobacco and marijuana policy, and calls for stronger enforcement against illegal flavored tobacco/marijuana sales.

Discussion Items

• Item S400 – Second Amendment to Contract with Innovative Interfaces Inc. for Library Systems Maintenance

  • Staff (Raul Goudinho, Curtis Williams) presented the request for a two-year extension and $338,000 increase due to a 10-month implementation gap not captured in the original contract. The library admitted a lapse in communication but has implemented weekly check-ins with purchasing. The RFP for a new contract is underway, with notice of intent to award expected in April 2025.
  • Councilmember Campbell noted the money was already in the library budget, that the system is mission-critical (without it libraries cannot operate), and that such oversights are now rare. She moved staff’s recommendation.
  • Councilmember Von Wilpert asked about tracking responsibilities and price increases, and expressed concern about expired contracts generally, but stated she would not support the item due to a policy against voting for expired contracts. She voted no.
  • Councilmember Campillo seconded the motion, emphasizing the need to continue library operations and fix the timeline issue.
  • Vote: Passed 7–2 (Councilmembers Foster and Von Wilpert voted no; Councilmember Campbell absent? but recorded as present in roll call – discrepancy: councilmember Campbell was present and voted yes, but later noted absent for S401? Actually Campbell was present for S400, and then absent for S401 per roll call. Vote was 7-2 with Foster and Von Wilpert no.)

• Item 200 – Fiscal Year 2024 Business Diversity Annual Report (Informational)

  • Staff presented data: 378 certified SLBE firms; aspirational goal of 20% for CIP projects met each year; FY24 total contract awards of $704.1 million, with $116.9 million to SLBE/ELBE firms. Breakdown by category and ethnicity showed disparities (e.g., construction awards: 88% white, 9% Latino, 0% Black). A new citywide SLBE aspirational goal of 15% was adopted for FY25. Income caps are being revised upward.
  • Councilmembers discussed challenges: the drop in women-owned business participation, the need for unbundling large contracts, and the limitation of the aspirational goal set at 15% for all contracts. Councilmember Campillo suggested separate goals for different contract types.
  • No motion required; item was informational only.

• Item S401 – Grocery Pricing Transparency Ordinance

  • Presenter Jeffrey Nguyen outlined the ordinance: requires retail grocery stores that offer digital-only discounts (via apps or online) to also make identical discounts available in paper/physical form or as shelf tags. The ordinance aims to address the digital divide affecting seniors, low-income households, and those without digital literacy. Enforced through unfair competition law (California Business & Professions Code). Exemption for online-only retailers.
  • Councilmember Elo Rivera (author) emphasized that this is a fairness measure to ensure all San Diegans can access the best prices, noting that 165 days have passed since the proposal was announced and a committee hearing was held. He moved approval.
  • Councilmember Von Wilpert seconded and offered an amendment to delay implementation for 90 days after the second reading, to allow the grocery industry time to adjust. The amendment was accepted.
  • Councilmember Foster supported, referencing seniors in her district on fixed incomes.
  • Councilmember Campillo raised questions about enforcement mechanism (state UCL) and whether all grocery stores must post a sign even if they don't offer digital discounts. City Attorney confirmed no issue with the amendment.
  • Vote: Unanimously passed 8–0 (Councilmember Campbell absent).

Key Outcomes

• Item S400: Approved a second amendment to the contract with Innovative Interfaces Inc., extending services through February 2026 and increasing contract capacity by $338,000 (funds already in library budget). Vote: 7–2.
• Item 200: Informational only; report received and placed on file. Council noted ongoing equity challenges and staff’s upcoming outreach efforts.
• Item S401: Adopted the Grocery Pricing Transparency Ordinance (first reading) with a 90-day delayed implementation after the second reading. The ordinance requires physical or paper equivalent of any digital discount at retail grocery stores with physical locations in San Diego. Vote: 8–0.
• Closed Session: Nothing to report out.
• Next Meeting: Tuesday, March 25, 2025, at 10:00 AM.