Budget and Government Efficiency Committee Meeting - May 23, 2018

The meeting was called to order by Chair Bree with a quorum of Councilmembers Ward, Kate, and Gomez. The committee approved the minutes from the April 18 and 19, 2018 meeting by unanimous consent with no discussion. The meeting then proceeded through non-agenda public comment and four action items: revisions to pedicab regulations, a medical examination and drug testing contract, a marketing agreement for a helicopter filter donation, and an EcoPass transit benefit agreement for city employees.

Consent Calendar

• The committee record of actions from April 18 and 19, 2018 was approved by unanimous consent with no items pulled for discussion.

Public Comments & Testimony

• Non-Agenda Public Comment: Two speakers addressed the committee regarding urban forestry funding.
  • Virginia Wilson requested funding for the urban forestry program: two additional full-time employees for the five-year plan, $300,000 for the street tree program, and restoration of $900,000 that had been cut. She noted that the total of $1,004,000 represents less than one-tenth of one percent of the budget after the May revision.
  • Ann Feige, chair of the Community Forest Advisory Board, expressed disappointment that the urban forestry program may not be funded in the current budget year. She asked how the city can align its general plan, community plan updates, climate action plan, and five-year actions to achieve implementation. She noted that the mayor added $300,000 for the free tree program last year but that it may end.
• Public Testimony on Agenda Item 1 (Pedicab Regulations): Multiple speakers provided comments.
  • Jewel Denoviev: Supported the proposed fare disclosure requirement but asked for stronger language to ensure passengers know their rights.
  • Juan Vergan: Supported the proposed regulations, noting that good operators do not need excessive lights or music, and urged focusing on fare disputes.
  • Laura Rovic (owner of Social Cycle, a specialized pedicab): Expressed concern that language regarding lighting, pedal assist, and sound systems is subjective and requested clearer definitions.
  • Andrew Marshall (12-year pedicab driver): Opposed a total ban on lights and music, arguing they enhance the customer experience and safety visibility. Suggested instead focusing on enforcing fare rules.
  • Michael Vavrzynski (Pedicab Limo, San Diego Pedicab Association): Supported fare disclosure but opposed banning lights and music. He noted that lights improve safety and that the ban would reduce driver income. He presented 70 signatures from operators opposing the light and music regulations, with over 40 not informed of the meeting.
  • Samuel Wooden: Opposed removing lights, stating they are part of the city's atmosphere and customer experience.
  • Lucas Stames: Emphasized safety—lights make pedicabs highly visible; suggested police discretion for music volume.
  • Pat Moran (8-year pedicab operator): Supported fare disclosure and suggested industry-led enforcement. Argued against removing lights and music, citing examples of weddings and romantic tours.
  • William Gioko (6-7 years pedicab): Opposed a total ban on lights and music, sharing personal stories of customer enjoyment. Noted existing laws on sound decibels and asked for stricter enforcement against overcharging.
  • Ali Horuz (owner of BIP Petty Cabs): Agreed with fare disclosure but questioned enforcement and consequences for repeat offenders. Proposed a 40-watt limit for music speakers and allowing non-flashing LED lights for safety. Raised concerns that the pedal-assist ban has harmed his business, causing loss of 50 drivers.
  • Nicole Kane (San Diego Pedicab Association): Presented the association's goals to improve industry standards, including a training program, uniform pricing, and collaboration with the police department.

Discussion Items

• Item 1: Pedicab Municipal Code and Fee Revisions

  • Acting Lieutenant Daniel Meyer and Sergeant Brian McGilvere of the San Diego Police Department Vice Unit presented proposed amendments to the municipal code governing pedicabs. The changes addressed public safety concerns: bright/strobing LED lights, loud sound amplification systems, pedal-assist devices, and fare disputes. The proposal also updated definitions to match California Vehicle Code categories (traditional pedicabs vs. specialized pedicabs) with corresponding fees. The specialized pedicab operator who was consulted agreed with the separate fee structure.
  • Councilmember Ward offered a motion with amendments: allow static single-color LED lights for safety, require rate structure signs on the outside of traditional bikes, allow e-assist technology (not fully motorized), allow small music devices not exceeding neighborhood decibel limits, and require display of operator permit/company name/contact information. Councilmember Gomez seconded. The motion passed unanimously.

• Item 2: US HealthWorks Medical Contract

  • Assistant Personnel Director Garst and Deputy Personnel Director Cynthia Mitchell presented a five-year, $3.6 million agreement with US HealthWorks Medical Group to provide employment medical examinations, drug testing, and DMV medical exams. The contract estimate for FY19 is $517,666, with approximately 80% from the general fund. Only one proposer responded to the RFP. The evaluation committee included police and fire representatives. Councilmember Kate asked about past costs ($2.7 million over five years, spending $2.4 million). Vice Chair Ward inquired about the $600,000 annual general fund impact and whether it is in the FY19 budget. A staff member confirmed that annual appropriations will be based on need. The motion by Councilmember Kate, seconded by Vice Chair Ward, passed unanimously.

• Item 3: Aerometals Marketing Agreement for Helicopter Filter

  • Battalion Chief Chuck McFarland (Air Operations) and Natasha Kaller (Executive Director of Corporate Partnerships) presented an agreement with Aerometals Inc. The company will donate an inlet barrier filter (valued at $220,000) for the city's new Sikorsky S70i helicopter. In exchange, the city will provide data evaluation and limited marketing rights (use of city name and images). Chief McFarland explained that the filter reduces engine erosion and should lower costs under the power-by-the-hour agreement with General Electric. The contract lasts up to five years. Councilmember Kate asked about warranties and was told both Sikorsky and GE have validated the filter. The motion by Councilmember Kate, seconded by Councilmember Gomez, passed unanimously.

• Item 4: MTS EcoPass Agreement for City Employees

  • Gene Matter (Transportation and Stormwater Assistant Director), Steve Selnecker, and Travis Brady presented a five-year agreement with MTS for the EcoPass program, capped at $1 million per year. The program offers discounted transit passes to city employees (25% MTS discount plus city subsidies of 90% for MEA-represented employees and 75% for others). Participation has grown 44% over the prior five years. In FY18, there were 791 annual pass holders (661 MEA, 130 non-MEA). Councilmember Gomez asked about tying the program to the Transit Tuesday campaign; staff noted timing constraints but agreed to explore the idea. The motion by Councilmember Gomez, seconded by Vice Chair Ward, passed unanimously.

Key Outcomes

• Approved pedicab code amendments with modifications: static LED lights, outside rate signs, e-assist allowed, limited music devices, and operator/permit display. (Unanimous)
• Approved the US HealthWorks five-year medical and drug testing contract not to exceed $3.6 million. (Unanimous)
• Approved the marketing agreement with Aerometals accepting the filter donation in exchange for data and marketing rights. (Unanimous)
• Approved the five-year EcoPass agreement with MTS for city employee transit benefits, capped at $1 million per year. (Unanimous)
• The committee adjourned; next meeting scheduled for May 23, 2018 at 9:00 AM.