Rules Committee Meeting October 30, 2024: Price Gouging Ban, Flag Policy, and Consent Agenda
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Rules Committee Meeting – October 30, 2024
The San Diego City Council Rules Committee met on October 30, 2024, chaired by Council President Sean Elo-Rivera. The committee considered a consent agenda, a proposal to ban algorithmic rent-fixing software, and amendments to the city's flag and display policy. The meeting included extensive public testimony and debate.
Consent Calendar
- Approved unanimously (5-0):
- Item 1: Approval of committee minutes from October 2, 2024.
- Item 2: Authorization to execute a second amendment to the NextRequest service agreement (Civic Plus) for public records portal services.
- Item 3: Amendment to the San Diego Municipal Code on the composition of the Airport Advisory Committee, adding a Navajo community seat.
Public Comments & Testimony
Consent Agenda:
- Terry Ann Skelly corrected her prior comment on hemp regulations (SB 1498) and requested enforcement focus on communities of color.
- A speaker (original) raised concerns about air quality from a ceramics kiln, transparency in public records, and human trafficking allegations at the airport.
- Judy Strang reiterated the request for a report on enforcement of hemp regulations, noting 75% of treatment admissions are for marijuana addiction.
- Kathleen Lippitt warned that mixed-use zoning will allow smoke shops next to multi-unit housing, harming sensitive uses.
- Another speaker (iPhone) criticized the city's handling of senior safety and asked for more detailed presentations on consent items.
Item 5 – Framework to Protect Against Price Gouging: Supporters (16 in-person speakers, many virtual):
- Paul Downey (Serving Seniors) called algorithmic rent-setting “21st century robber barons” that push seniors toward homelessness.
- Juan Guerrero, a young renter, supported the proposal.
- Nicole Lilly (Our Time to Act) noted that only 40% of UCSD alumni stay in San Diego due to housing costs.
- Jesse Schmidt (Alliance San Diego) urged an end to data-driven exploitation.
- John Wee (Big Voices) described community members priced out of City Heights.
- Adriana Luna (California Working Families Party) said corporate landlords use AI to artificially inflate rents.
- Hazim Wakas, Mohammed Umar, Randy Torres Van Bleck (PANA) supported the ban, citing the DOJ lawsuit and high rents.
- Manny Rodriguez (City Heights CDC) noted many landlords do not use such software but corporate landlords do.
- Nathaniel Tate (Sinome Policy Initiative) highlighted that over 50% of renters are housing burdened.
- Sarmio Estrada (Building Trades Family Housing) urged support, calling price fixing by algorithm still price fixing.
- Mia Losef (Local Progress), Sandy Miskowski (Heel Network/Lived Experience Advisors), John Brady (Lived Experience Advisors), and Gil Vera (Legal Aid Society) also spoke in favor.
Opponents/Concerns:
- Melanie Woods (California Apartment Association) argued the housing crisis is due to lack of supply, not software, and questioned costs and potential preemption.
- Craig Benedetto (NAIOP San Diego) cited late docketing and lack of stakeholder outreach, warning of unintended consequences.
- Molly Kirkland (Southern California Rental Housing Association) urged no action, fearing impact on small/medium landlords.
- Jeff Hoiter questioned the feasibility of defining algorithms and suggested waiting for federal action.
- Adrian Luna (Building Industry Association) argued the proposal is rushed and lacks understanding of technology.
- Cesar Javier opposed, saying resources should go to emergency housing instead.
- Lori Saldania suggested the issue should go to Land Use and Housing Committee, and noted impacts of short-term rentals.
Item 4 – Flag and Display Policy Amendments:
- Michael Brando supported the progress pride flag, citing ongoing anti-LGBTQ sentiment.
- Lori Saldania questioned the legality of a private ceremony on July 1, 2024, in the council chambers.
- Cesar Javier asked about the precedent for the amendments.
- Other virtual speakers provided comments on flag symbolism and cybersecurity.
Discussion Items
Item 5 – Ban on Algorithmic Rent-Fixing Software:
- Council President Elo-Rivera introduced the proposal, noting San Diego’s high cost of living and the need to address price gouging via software like RealPage.
- Maya Rosas (Deputy Chief of Staff) presented the framework, citing the DOJ lawsuit against RealPage, examples from San Francisco and Philadelphia, and the goal of prohibiting the use of non-public competitor data to set rents. She clarified the ordinance would not regulate rent amounts, ban property management software, or interfere with affordable housing programs.
- Councilmember Lee seconded the motion and emphasized stakeholder engagement. Councilmember Campillo expressed concerns about legal preemption, pending litigation, and potential unintended consequences; he made a substitute motion to first conduct a legal review, which failed for lack of a second. Council President Pro Tem LaCava and Councilmember Moreno supported moving forward, with assurances of stakeholder input. The motion passed 4-1, with Campillo voting no.
Item 4 – Amendments to Council Policy 000-10:
- City Clerk Diana Fuentes and Deputy Director Jennifer Barry presented proposed updates to clarify room reservation priorities, add cybersecurity measures for public audio/visual submissions, and establish a formal flag display policy. The policy includes a list of pre-approved flags (Juneteenth, Progressive Pride, Kumeyaay Nation) and allows addition by council resolution.
- Councilmember LaCava raised concerns about the policy’s scope (applying to city property beyond council control) and requested fine-tuning before full council. The committee agreed to forward the policy with modifications, including further legal review and adjustments to flag display months (June, July, October for Pride). The motion passed unanimously 5-0.
Key Outcomes
- Item 5: Passed 4-1 (Campillo no). The city attorney’s office will work with Council District 9 to draft an ordinance banning the sale and use of price-fixing software and bring it to the full city council. Stakeholder engagement is promised.
- Item 4: Passed unanimously 5-0. The amended policy will go to full council with modifications based on committee discussion, including legal review and adjustments to flag display periods and sponsorship provisions.
- Consent Agenda: Approved unanimously 5-0.
- Non-agenda public comment was heard, including calls for evening meetings, election reform, and concerns about marijuana product regulation, smoke-free housing, and representation for District 2.
Meeting Transcript
Test one, two, three, four, five. Test one, two, three, four. Okay. All right, good morning, everyone. Welcome to the rules committee meeting of October 30th, 2024. Uh, just a quick bit of housekeeping here for everyone's awareness regarding agenda order. Uh it will be ordered uh we'll we'll do things in the order listed with um the exception of discuss on the discussion agenda hearing item five before item four. Otherwise, it will run as the agenda um lays out. I will now hand it over to Natalie who will go over information and instruction for today's meeting. While members of the public are able to attend the meetings in person, this meeting is being televised and live streamed on the city's website, and council administration will continue to make arrangements for the public to comment using the Zoom webinar platform. Additionally, members of the public who wish to provide testimony via a call-in or an internet-based service option must enter the virtual queue within five minutes after the conclusion of in-person public testimony or before the virtual queue is exhausted, whichever occurs first. This will allow for better meeting management between the two platforms and ensure the committee is able to manage and conduct city business. We appreciate the public's cooperation. Council President. Vice Chair Locava. Present. Committee member Lee. Here. Committee member Campio? Here. Committee member Moreno. Present. Also attending the meeting is Charles Modega, independent budget analyst, Deputy City Attorney Kathy Steinman, and Director of Policy for Mayor Todd Gloria, Matt Yeagan. If you're in person, please complete a speaker slip located at the entrance of chambers and place it in the box indicated at the speaker's lecture in the front of the room. Please do so in a timely manner to ensure proper meeting management. In-person testimony will conclude before virtual testimony begins. Members of the public can join the webinar by computer, tablet, or smartphone by accessing the link which is listed online in the preamble language of the agenda on the city's webpage. To join the Zoom webinar by telephone, please dial 16692545252. When prompted, the webinar ID is 1605498117 pound. This information is also available on the agenda and will appear on the screen during the public comment period for each agenda item. If you are watching via City TV 24 or online, there may be a delay. Council President. Do we have any committee member mayor uh mayoral staff, city attorney, or IBA comments. All right. Um not seeing or hearing any. Do we have any requests for continuance? Right, not seeing any of those. Let's move to our consent agenda. Any requests to pull items from the consent agenda. Hearing none, we'll move forward a public comment on our consent agenda. Natalie, if you'd please proceed. Thank you, Chair. The public comment period for the consent agenda is now open. The consent agenda includes item one approval of committee minutes from October 2nd, 2024. Item two, authorization to execute the second amendment to the next request service agreement with next request council known as Civic Plus for continuation of public records portal services. Item three, amendment to section two, Article 6, Division 22 of the San Diego Municipal Code on the composition of the airport advisory committee. Please note each speaker will have one minute per item and please indicate which item or items you're speaking to. You will have a maximum of three minutes. And Chair, we have not received any speakers from individuals in chambers on the consent agenda, but we do have three hands raised in the virtual queue. I'll start the five-minute timer and we will begin with Terry Ann Skelly.
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