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Commission debates whether internet should be treated as an exempt utility as landlords bundle service
Summary
Commission members raised concerns that landlords are bundling internet as a utility charge, sometimes exceeding provider costs or changing terms mid-lease; commissioners discussed prohibiting profit on pass-through charges and requiring notice before changes.
Commissioners at the May 21 meeting debated whether internet access should remain listed among landlord "utility" pass-throughs that are exempt from local fee regulation. Several speakers described cases where a landlord limited tenants to one provider plan, charged a fixed monthly fee that appeared higher than provider rates, or required addenda mid-lease.
Council Member Adina said landlords "shouldn't be making a profit" on utility pass-throughs and urged clearer ordinance language so charges reflect actual cost rather than a revenue stream. Robert and other participants described the practical infrastructure constraints: some buildings are prewired for a single provider (Xfinity or AT&T), which limits consumer choice and makes reconfiguration costly.
The commission discussed at least three possible approaches: remove internet from the ordinance's utility exemption and regulate it like other tenancy fees; permit internet as an exempt utility but cap charges to the landlord's actual cost; or require explicit notice and a minimum notice period before any change to an internet arrangement so tenants have time to decide whether to remain.
Members flagged two implementation issues: (1) the technical wiring and installation differences across single-family houses, multifamily buildings and high-rises, which can make consumer-level opt-out difficult; and (2) the equity and budgeting impacts when mid-lease changes increase tenants' monthly costs.
Staff and legal counsel said amending the ordinance would be required to change the utility definition. Commissioners asked city staff to prepare draft language options so the commission can consider a concrete amendment at a later meeting.
