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City
Council Report |
City Council Meeting: November
11, 2014
Agenda Item: 8-A
To: Mayor and City Council
From: David Martin, Director of Planning and Community
Development
Subject: Award of Contract for Bikeshare Installation, Launch and Operations and Related
Program Policy Direction
Recommended Action
Staff recommends that the
Council:
1.
Authorize the City Manager to negotiate and execute a contract with CycleHop, LLC,
a Florida-based company in an amount not to exceed $5,615,567 for the purchase,
installation, and operation of a 500-bicycle bike sharing system, with two
additional two-year renewal options in the amount of $4,790,013, for a total
amount not to exceed $10,405,580 over an eight-year period, with future year
funding contingent on Council approval and budget adoption;
2.
Direct the City Manager to pursue corporate sponsorship funding,
either directly or through an agency, to provide a minimum of $250,000 per year
and return to Council for approval of a specific sponsor(s) prior to system
launch. Corporate messaging for the sponsor would be displayed on bikeshare bicycles, on-line, in hard copy bikeshare materials and recognition during the system
launch.
3.
Direct staff to pursue the development of a system identify that
is distinct from association with any corporate sponsor, incorporates the color
green for sustainability, includes the Metropolitan Transportation Authority
(Metro) logo, and provides some opportunities for local expression within a
regional system, and to return to Council in January with a
recommendation.
4.
Provide direction on the proposed rate and membership structure
and direct staff to continue to coordinate with Metro and return to Council
with a recommended fee resolution.
5.
Approve the recommended policy and approach for siting bikeshare stations.
6.
Direct the City Attorney to prepare an ordinance prohibiting use
of bikeshare station racks except for parking of bikeshare bicycles.
Executive Summary
When the Council adopted the 2011 Bike Action Plan, it prioritized the development of a bikeshare system that would offer the community a convenient way to connect with transit and with the districts that are the heart of the Santa Monica community. Council, seeking to implement bikeshare ahead of the arrival of the Exposition Light Rail, directed staff to pursue advancing the funding for the system from its original allocation period (fiscal years 2016-2018) and appropriated $50,000 to support that effort.
Over the
past 2½ years, staff was successful in advancing the initial funding and has
pursued and received additional grant funding and worked with an array of local
and regional partners to define a system that would serve local needs and
integrate into a future regional system.
Following an open, competitive procurement process described in this
report, staff recommends
that Council authorize a contract with the best bidder, CycleHop, LLC., for the purchase,
installation and operation of a bikeshare system
based on “smart-bike” equipment and technology provided by Social Bicycles, to
include 500 bicycles and 1,000 racks.
The technology allows for flexible station size, so the number of
stations to be provided would depend on the space available and the number of
racks deployed at each one; approximately 65-75 locations are anticipated,
serving both central and outlying areas of the city. CycleHop would
operate the system on the City’s behalf for up to seven years, at which time a
further contract extension could be negotiated.
If approved by Council, it is anticipated that Bikeshare bikes would be operating in Santa Monica by next
summer (2015), prior to arrival of the Exposition Light Rail. The contract includes a contingency for
construction of the system in the amount of $113,200 (5%).
In addition to the contract
award, staff is seeking decisions and direction regarding a number of related
tasks required for implementation of the Bikeshare
system. These include: authorization to
seek corporate sponsorship to supplement anticipated user fees and provide
additional financial support for the bikeshare
system; review of concepts for system identification and a
decision-making strategy
following which staff would return to Council with recommendations for the
color and system name; development of a user fee and rate structure, which
requires a fee resolution; adoption of a station siting policy and approach;
and drafting of an ordinance that would restrict use of bikeshare
racks to parking for bikeshare system bicycles. Since
the system would formally launch after July 1, 2015, associated operating
expenses and revenues are presented for initial consideration now, but would be
included in the Proposed FY 2015-17 Biennial Budget.
Throughout the development of this program, Santa Monica has
been working with Westside Cities Council of Governments cities and Metro to
ensure that the bikeshare system created here could
serve as the foundation for a regional system, without precluding
decision-making by other cities, essentially following the examples of the
Washington, D.C. and Boston metro areas.
This report recommends a series of specific actions the City Council can
take to establish a citywide, bikeshare system,
developed with participation from other Cities and regional entities. If this contract is approved, other Westside
Cities will have the opportunity to join the program if they are able to secure
capital funding and approve a comparable operating cost and revenue
structure.
Alternatively, the City could defer independent actions and
wait for Metro to establish a regional system.
Metro is currently developing its own business model for regional bikeshare, and plans to issue its own Request for Proposals
next year. Santa Monica could avoid the
risk of selecting a system that may not integrate easily with the system that
Metro may eventually operate throughout the region by declining to award any
contract at this time and, instead, wait for Metro to complete its procurement
for the regional pilot. Metro has asked
Santa Monica to consider this course of action, but in this scenario, the City
and the region stand to lose the federal grant funds previously awarded to the
Santa Monica project and Santa Monica bikeshare
implementation would be delayed by at least a year. The City Council must decide whether to
accept the risk of being an early-adopter—that the region may ultimately make
different decisions to which Santa Monica would have to adjust for
compatibility and regional integration; or the risks of waiting—that available
funding will be lost and procurement terms may be less advantageous for the
City under a subsequent procurement.
However it arrives in Santa
Monica, bikeshare would not only enable more people
to enjoy bicycling, but also generate important benefits for mobility,
environment and personal health and well-being.
Bikeshare is a key strategy to implement the
General Plan goal of not increasing vehicle trips and diversifying vehicle
modes utilized by the community. Bikeshare linked with transit, especially regional transit
services including rapid bus and the highly anticipated light rail, will
provide a high-quality alternative to traffic congestion for many Santa Monica
commuters, and bikeshare users also tend to increase
their use of transit and walking trips. Bikeshare would complement ongoing investments in light
rail and improved bike access to support the City’s active transportation
goals.
Background
On August 23, 2011, Council reviewed and provided
comments on the draft Bike Action Plan, and directed that initiating a
regionally-coordinated bikeshare system be included
as a high implementation priority. On November 22, 2011, Council approved the Bike
Action Plan, directed staff to try to advance funding for a bikeshare
system and appropriated $50,000 to jump-start the project.
On September
24, 2013, staff gave a progress update to Council and explained some of the
issues involved with station siting, regional coordination and program funding.
An initial feasibility analysis was presented.
Council gave strong direction to move forward on the project in Santa
Monica while working with regional partners.
Council accepted a grant in the amount of $500,000 for the bikeshare system through an agreement with the South Coast
Air Quality Management District Mobile Source Air Pollution Reduction Committee
and authorized staff to
release a Request for Proposals to procure a bikeshare
system and contract operator consistent with Council direction. At the meeting, Council also directed staff
to seek potential funding for the forecasted annual operating deficit with the
option to pursue advertising/sponsorship revenue to the extent user fee revenue
is infeasible or insufficient. The
advertising/sponsorship strategy presented at the meeting potentially included
measures that would have required a change to current off-site advertising
regulations.
The bikeshare system purchase,
construction and installation would be funded by funds that are currently
appropriated including grants awarded by Metro ($1,543,000) on September 22,
2011, by AQMD ($360,000) on September 7, 2012, with
the remaining $361,000 available in CIP funds. The grant awards also include a
commitment of in-kind staff match.
Santa Monica’s Bikeshare system
developed from an extensive process within the Westside Cities Council of
Governments (WSCCOG), where high interest has been
expressed for a number of years in developing a coordinated bikeshare
system that would be affordable, support transit and work well throughout the
region. Together, WSCCOG
cities conducted a Request for Information process, commented on and reviewed
the Request for Proposals and responses submitted, and interviewed all
proposers. Individual Councils within
the WSCCOG have also approved the concept of seeking
operating funding for a system through allowing corporate sponsorship on bikeshare bicycles.
The RFP was crafted with a provision to require the vendor to allow
other cities, including WSCCOG cities, to join in the
procurement at the same price offered to Santa Monica. The AQMD
grant even provides capital funding for up to five stations outside Santa
Monica. The WSCCOG
cities and other regional stakeholders continue to follow, inform and support
this effort.
Discussion
In
the 2011 Bike Action Plan, the Council identified development of a bikeshare system as a high implementation priority. The Plan anticipated an initial 250-bicycle
system with 25 stations. Since then, the
City has secured system equipment and launch funding through two competitive
grants and Bike Action Plan implementation funds. Once
purchased, this equipment would be the City’s property, which the selected
vendor would operate on behalf of the City based on the negotiated contract
terms. Ongoing operations are
anticipated to be funded through a combination of user fees and fees for
corporate messaging on the bicycles, website and marketing materials
(sponsorship). The City would receive all revenues generated by Bikeshare system, which, once established, are anticipated
to be sufficient to provide funding for future system operations as well as enhancements
and potentially some small improvements to bicycle safety for the community.
Safety and Health
Bikeshare has safety benefits for the
circulation system as a whole because drivers adjust their driving behavior
when they expect to be sharing the streets with bicyclists. Experience in other
US Cities has demonstrated that crash rates decrease as more people ride. Recent and continuing City investments in
bicycle infrastructure and programming in Santa Monica are already reducing the
rate of crashes per counted cyclist. The
bikeshare operator would reinforce this trend by
providing key safety messages on bikes, stations and the website and written
materials. The City will continue to
develop improved bikeways that encourage people to ride and share the road
safely.
In addition to road safety benefits, bikeshare offers significant improvements in personal
health to riders. Metro’s model
estimates the direct benefits of cycling at $2.00 per mile, with 25% due to avoided
vehicle operating and maintenance costs and 75% due to avoided health care
expenses.
Helmets and Youth
Cycle Hop would encourage helmet use
among all riders and provide a way to make helmets available to everyone who
rides. Promotions for the program would
include helmet distributions and messaging on the bikes and on stations
advising riders to wear helmets.
Enforcement of the State of California’s helmet law, which requires
people under the age of eighteen to wear helmets, will continue to be conducted
by the Police Department. Every adult
who enters into a contract to rent any Bikeshare
bicycle would be required to ensure that any minor rider of the bicycle is 1)
at least 16 years old; 2) at least 5 feet tall; 3) able to reach the ground
with both feet when seated on the bike, and; 3) wearing a helmet.
Pursuit of a
Regional BikeShare System
As described above, Santa Monica’s bikeshare
launch has been developed in partnership with the WSCCOG,
Metro and other public agencies across the region, and is structured to serve
as an expandable pilot project for a regional bikeshare
system. The desire to develop a system
concept that is easily expandable to a regional system, with a user fee
structure that can be self-sustaining, has informed staff’s recommendations
regarding equipment, contractor selection, technology and other aspects of the
system. The proposed system is the most
flexible with respect to regional integration because the bicycles and
technology allow stations that can be sized for placement in a wider array of
locations with the least amount of displacement of sidewalk space, parking
spaces and other valuable urban real estate. Other cities selecting “smart
bike” technology could use any operator and be compatible.
Staff has held ongoing talks with Metro staff, as Metro has
advanced its own efforts to facilitate the launch of a regional system. Metro staff was involved in the Santa Monica
RFP review in which the panel selected the Social Bike equipment. Metro
considers Santa Monica to be one of its pilot areas for a regional system it
hopes to coordinate. A Metro/CalTrans grant (along with an AQMD
grant) is providing the initial capital funding for the recommended bikeshare program. Over the past few months, Metro has
redoubled its efforts to lead and coordinate bikeshare
implementation throughout the region; staff has been participating in those
coordination efforts. While there has
been some discussion with Metro about their interest in delaying Santa Monica’s
launch in order to move onto their schedule, staff believes it is advisable to
continue to keep the project moving forward based on the schedule that Council
requested when approving the 2010 Bike Action Plan and reiterated at the
September 24, 2013 meeting. A delay in
launching the bikeshare system would not benefit
Santa Monica, which would face the loss of $2 million in grant funding that
would expire, jeopardizing the City’s ability to procure the desired system
without General Fund or other replacement capital.
Nevertheless, launching prior to the rest of the Metro system does
not preclude regional system integration.
Staff is seeking concurrence from Metro on a price and fee structure and
parameters for system identity so that the proposed Santa Monica system may
merge as smoothly as possible into the regional system as it develops. System identification components that the
Metro Board may adopt in the coming year could include Metro-produced design
elements, the Metro logo, a Metro color palette, and specified locations for
corporate messaging on the bicycles. If the timing works out, some of these components may be
incorporated into Santa Monica’s initial roll-out. Otherwise, staff recommends installing the
system as proposed and, at Council direction, adjusting the color, name,
sponsorship branding and fee structure later as appropriate in order to
integrate into a regional system.
Vendor/Operator Selection Process
On February 28, 2014, the City published a Request for Proposals to install and operate a bikeshare
system. Seven
proposals, representing all major American bikeshare
firms and one European vendor, were received and evaluated by a selection
committee including local representatives (Public Works, PCD,
CCS, SMC, DTSM, Inc.), Westside Cities (West
Hollywood, Culver City, Beverly Hills, LA), Metro and UCLA Transportation. Consistent with the criteria that were
provided in the RFP, all proposals were evaluated based on the proposed
equipment, competitive pricing, understanding of the project’s scope, direct experience
on similar projects, approach to the work and to regional integration, customer
service approach, technical competence, qualifications of the proposed staff,
and the ability to meet the required time frames. System installation and
start-up costs were all proposed within the amount covered by the grant,
although some, like the selected vendor, were able to propose more bikes and
racks within that cost. The operational
costs were considered on a per-bike basis in order to make a fair comparison of
proposals. Proposals generally ranged
between about $2,000-$3,000 per bike, with one outlier, which did not include
some necessary expenses, at $1,041/bike.
All seven teams were
interviewed by a panel including City and regional agency staff members and local
stakeholders, rating each bidder based on the above criteria. Two of the
proposers, CycleHop, LLC., and Social Bicycles,
emerged as finalists following this process.
Both proposed to use
equipment and software manufactured by Social Bicycles (SoBi).
The review team favored the Social
Bicycles system over others reviewed for a number of reasons including its
comfortable design, integrated hardware developed and owned directly by Social
Bicycles, open interfaces for programmers, and advanced communications and
information capability (Attachment A).
SoBi’s “smart-bike” system (one in which the
technology for renting, releasing and locking the bicycles is on the bikes
rather than on the racks) was also preferred for its advantage in offering a
lower per-station capital cost than was anticipated because it does not require
that a pay kiosk be incorporated into each station. Instead, each bike is capable of accepting
payments and releasing the bike-locking mechanism independently via a mobile,
web and administrative software that interacts with the smart-bike
hardware. People who are not registered
can sign up on-line using a computer or mobile device, at one of 20 outdoor pay
kiosks at the larger, more central stations, or at bikeshare
partners including the Bike Center, City transit store and potentially other
local businesses. Once registered, users
can initiate rentals by walking up to any bicycle. Without need for a kiosk,
smaller stations, consisting of as few as 4 racks, are feasible. If a customer returns to find no bikeshare rack available, the bicycle can be locked up
nearby. System operators can locate the bike through its GPS and retrieve it
for rebalancing. SoBi
Stations can fit into busy centers or quiet residential areas without being intrusive. The system’s flexibility is also one of its
key values for regional integration, since bikes are locked to standard racks
and do not require specialized docking stations for pick-up or returns.
As
a group, the evaluation team preferred this type of system over the type of
“smart-rack” systems deployed in most US bikeshare
programs, in which stations consist of a pay kiosk integrated with locking
racks. Some firms that proposed the more traditional systems had more
experience operating US bikeshare systems, but many
of those systems have unresolved challenges providing service area coverage and
establishing fiscal stability.
Because
favorable pricing for SoBi’s system components
allowed more equipment to be procured within the grant funding amount, as part
of the procurement process both finalists were asked to submit Best and Final
Offers for a 500-bike system, with 1,000 racks to be deployed in an unspecified number of stations
(approximately 65-75), 20 kiosks and large and small identification signs. This would allow more complete citywide
coverage than was anticipated in either the original grant application (250
bikes) or the RFP (350 bikes), increasing the system’s potential to serve the
entire Santa Monica community and to generate revenue that covers a larger
amount of the program costs.
Selected Operator: CycleHop,
LLC
Based on careful review and evaluation of the Best and Final
Offers, staff is requesting authorization to execute an agreement with CycleHop, LLC for installation and launch of the project
and for the ongoing operation of the bikeshare system
for up to seven years (three years plus two two-year extension options). CycleHop’s per-bike annual cost is proposed at $2,190
for the 500-bicycle system. In addition
to the equipment that was determined to be the best fit for Santa Monica, CycleHop’s team was determined to have superior experience
with bikeshare start-ups and operations, including
B-cycle systems in Denver and Broward County, station siting and installation
in Chicago, and a Hoboken (NJ) pilot project, as well as with related projects
including bike rental operations and commuter bike centers, including the Santa
Monica Bike Center. The firm has won
major regional bikeshare contracts, with planning and
implementation underway in Tampa (FL), Phoenix (AZ), Atlanta (GA), Orlando (FL)
and Ontario, Canada. This experience was reflected in a more thorough and
realistic proposal and in the assembly of an experienced start-up and
operations team, which is anticipated to result in a high level of customer
service. CycleHop
had a strong approach to regional integration and also identified a sufficient
number of disadvantaged business subcontractors to comply with Federal
requirements for the grant-funded portion of the project.
The recommended terms (Attachment B)
are advantageous for the City in that they include acquiring high quality
equipment with enough stock to serve the entire city, sufficient resources and
incentives for the operators to maintain the City-owned bikeshare
equipment, and mechanisms for the City to monitor the quality of user
experience and enhance the system as needed over time. The proposed portion of the contract for
purchase and installation of the system is in the amount of $2,264,000,
including contingency. The operational
amount for the first year is up to $1,095,140, with established 2% annual
increases, which also covers equipment maintenance and replacement during the contract
term.
Bikeshare Rates and Revenue Structure
The proposed rate structure is
intended to encourage people to ride bikes in Santa Monica by providing an
affordable transportation option, without the need to purchase, maintain, or
store a bicycle. In most cities where bikeshare exists, including highly-utilized, popular
systems such as Capitol Bikes (Washington, D.C.), Citibike
(NYC) and Divvy Bike (Chicago), user fees cover only a portion of the
operational costs. In all of these
cases, a very low charge to members, with mostly free, unlimited use thereafter
in increments of up to 30 minutes, has meant that even popular systems with
high bicycle usage are financially challenged.
As Bikeshare is a form of transit, many cities
opt to keep user fees low and their systems have ongoing structural deficits,
which are generally resolved through subsidies, along with significant levels
of outdoor advertising and sponsorships.
However, cities are beginning to conclude that these rate structures
pose a long-term burden. There is
discussion amongst bikeshare experts and operators
across the country about converting to fee structures that are more similar to
the one being proposed herein.
The rate structure of the proposed
Santa Monica system, which may be used as a model for the region, relies on
user fees to fund a much greater proportion of the cost while at the same time
providing a membership with daily free time with advantages for regular users
and the lowest one-trip short ride cost of any major US system. Whereas the feasibility study anticipated
that user fees would cover 27-42% of cost, the proposed rate structure is
expected to generate fees to cover 85% or more of anticipated operating costs
(Attachment C). It accomplishes this through reducing initial minimum and
one-time user fees but eliminating the unlimited free usage that is hampering
other systems’ financial performance.
Monthly memberships would be offered, with a discount for those paying
upfront for a full year and further encouragement to combine bikeshare with transit by offering a discount when a
monthly membership is purchased in conjunction with BBB transit cards or
passes. As shown in the table below, a low monthly price would include either
one or two hours daily, after which the user would be charged the regular rate
of $2 per 20 minutes. For casual users, there would be a low entry rate of $2 for
the first twenty minutes, and the same $2 for each 20 minutes thereafter ($6
hourly). Based on this principle, when
bikes are in use, they are generating revenue. The more time that the bikes are
utilized, the more revenue the system generates.
The other advantage of the proposed
rate system is that it is simple and immediately understandable to customers,
reducing customer confusion and complaints when charges exceed their
expectations. Complicated pricing and
“surprise” charges have posed problems for other major systems.
Proposed Bikeshare
User Fee Rate Structure
|
Plan |
Advertised Rate |
Minimum |
|
|
Casual Users |
$2 per 20 min |
20min |
|
|
Monthly
Membership 1 hour free riding
time per day |
$20 per month |
2 months |
|
|
Monthly
Membership 2 hours free riding
time per day |
$25 per month |
2 months |
|
|
Bike &
Bus Combo 1 hour free riding
time per day (add-on to bus charges) |
$15 per month |
1 month |
City staff has shared this proposed
fee structure with Metro bikeshare staff and has
asked that it be considered as they review alternatives and develop a
recommendation for a regional fee structure.
Council is asked to approve the fee structure in concept. Staff will
return with a fee resolution at an appropriate time prior to launching the bikeshare system.
The operator, with agreement from the City,
could develop incentives, special offers and assistance for low-income users to
attract new users and encourage the widest possible range of opportunities to
use the system. Over time, if
projections are met, opportunities to provide these kinds of subsidies may be
possible from system revenues collected by the City.
CycleHop conducted a study of other similar
systems as well as the characteristics of bike usage in Santa Monica. For
purposes of revenue estimation and system funding, based on the experience of
other systems, the proposed system size, the mild weather conditions and other
community characteristics, a conservative estimate of 60,000 casual users and
5,000 members annually, translating to 2,000 annual trips per bike, was used.
The following summarizes the projected
annual operational costs and revenues.
The
table above estimates a relatively low shortfall from potential user fees in
terms of covering the cost of the system’s operation. However, Year 1 may not be a typical year
because it generally takes time to build up regular user base for the system,
and initial fare incentives may be required.
The experience in other cities indicates that sponsorship for the
program is necessary to off-set program costs. For Santa Monica, sponsorship
will be important to ensure repayment of the initial use of General Fund money.
The bikeshare
program will require additional City staff for program administration, the cost
of which is included in the overall operating budget starting at $196,000 in
Year 1. This includes salaries and wages
for a staff administrator position, administrative support and expenses. Initial operating revenue and expenses will
be included in the Proposed FY2015-17 Biennial Budget.
By year seven, based on a 2% annual
cost increase, contract operating costs would increase by $138,166 (see table
below). The projected revenue would
still be expected to offset the operating expenses with these increases, based
on conservative assumptions for ridership. Because ridership may well exceed
expectations, the contract terms include specific triggers for a budget
re-opener if the scale of services significantly exceeds expectations. Any budget increase would require Council
approval.
Service Level Agreements
As specified in the RFP, CycleHop is required to provide a high level of service in terms
of system operability, customer relations, equipment maintenance, rebalancing
of stations to ensure bicycle availability, and cleanliness of stations and
bicycles. Staff proposes requiring
specific thresholds for each of these categories in the operations contract
(Attachment D). A system for measuring
and monitoring is also proposed, with responsibilities both for the vendor and
for the City staff administrator, who would verify the condition of the bikeshare system in the field on a regular basis.
Operator Incentives
The proposed contract contains two mechanisms to encourage
operator performance in terms of promoting and increasing ridership and system
operation and maintenance. Within the
bid amount contained in the Best and Final offer, a $25,000 incentive (included
in the Marketing and PR line item above) is offered for exceeding ridership
projections as follows: $10,000 if memberships exceed the 5,000 projected by
10%; $10,000 if casual users exceed the projection of 60,000 system users by 10%;
an additional $5,000 if either of those numbers exceeds the projection by 15%.
The service level
incentive was included as an RFP requirement for vendor agreement, and states
that 10% of the monthly operating contract amount would be held back and paid
upon verification that the performance thresholds in the contract’s service
level agreements (SLAs) have been met. Staff will develop a fair and equitable
system for vendor reporting, staff inspection, and remediation of unacceptable
service so that the operator maintains the highest levels of service and the
City has a well-functioning system with clean, operable bicycles.
Corporate Sponsorship Process
Pursuant to Council’s direction on September 24, 2013, staff is pursuing corporate
sponsorship to fill the gap in the operational cost of the bikeshare
system. Additional revenue to augment user fees through corporate messaging is
proposed to be consistent with Big Blue Bus advertising guidelines. Accordingly, messages may appear on the bikes
and website, but not on fixed, permanent signs at the stations or elsewhere in
the public right of way.
Through a contract with Global Green funded by the AQMD grant, options and potential revenue from a variety of
sponsorship levels have been explored.
Global Green made inquiries with a number of larger companies to gauge
their interest in the opportunity to help finance the bikeshare
program in exchange for having their company logo on bikes, the website and
other promotional materials and for featuring their support at launch
events. Staff directed Global Green in
their discussions with potential sponsors to exclude offers for logo placement
on fixed structures in the public right-of-way (i.e., signs, kiosks, racks) in
order to adhere to the City’s traditional policy to prohibit this type of
advertising and to avoid the need to amend the Code in regard to off-site
advertising regulations (Attachment E).
The initial results of Global Green’s inquiries indicate that
Santa Monica is indeed an attractive market, particularly due to the large
number of visitors in the Downtown and beach areas, where the largest number of
bicycles sporting their corporate logo would be visible by many for a large
part of each day, and for most days throughout the year. Santa Monica’s climate and tourist economy
give it an edge over systems established in other locations without those
advantages. Staff plans to issue a RFP
to select a firm or agency that would obtain sponsorships with a goal of
bringing the recommended sponsor(s) to the Council for approval prior to the
system launch. The amount is anticipated
to be between $250,000 and $500,000 annually, with preference for a longer-term
commitment of at least three years or preferably five years. Council direction
to continue on this course of action is requested in this report.
Marketing/System identification
Santa Monica’s Bikeshare
system is expected to function eventually as part of a larger regional system,
developing in conjunction with Metro and other regional partners. For that
reason, staff recommends that Santa Monica’s system identification and identity
reflect regional considerations as well as the City’s individual
character.
Metro is currently developing a
proposal for regional system identification, but it is not expected be adopted
by the Metro Board in time to meet production deadlines. Metro staff plan to recommend
using the color green and incorporating the Metro logo, to suggest the link to
regional transit, for bikeshare systems within its
umbrella. There may be other aspects to
their identity elements, but they are not currently available.
To maintain the project schedule and
set up a compatible situation, staff recommends that the Council approve green
as the system color at this time along the lines of Metro’s proposed direction
for identification. Staff will then work
with CycleHop and its marketing consultant, Phelps,
to develop a proposal for the specific shade of green and a system name that
could blend with other potential system names for regional cohesion. Staff also recommends that the design include
the Metro logo. If Council supports this
direction, Phelps will develop this concept into a more detailed system
identity for Council consideration within the next two months.
Station and Bicycle Design and
Equipment
The bikeshare
stations included in the system launch would range in size between four and
potentially 20 racks. All would be
provided on public property, which is a grant requirement. As a “smart bike” system, the station
equipment is highly simplified.
Essentially, the stations consist of branded bike racks and some form of
identification sign, although racks in some residential areas may be installed
without signage if preferred. In addition, some larger stations in
high-activity areas would include pay kiosks.
With the exception of the kiosks, station pieces have no electronic
components. Kiosks are solar-powered as
are the bicycle computers.
Parking docks are modular, and do not
have to be linked to one another, allowing single racks to be added or
subtracted as needed and configurations to adapt to site specific conditions
and needs. The ability to deploy more,
smaller stations offers better user access and can make it easier to locate and
integrate with other street design features and services.
The bikes included in the contract
cost are designed with step-through frames, 8-speed gear hubs, shaft-drive
transmissions, internal brake and gear wiring, fenders, puncture resistant
tires, cargo baskets and real-time global positioning. The on-bike computers
will have the ability to read the type of card technology used by the Metro TAP
passes.
Siting and Authorization
Bikeshare stations may be located at sidewalk
or street level, depending on the opportunities provided within existing street
configurations. In general, it is
preferable for stations to be placed where bicycle routes are available and
where the cyclist can begin the journey safely and merge comfortably into
traffic. Stations should be easily
visible from major streets and important sites, such as major bus stops, Expo stations,
the Third Street Promenade, parks, hotels, libraries and other popular
attractions. When specific sites are
chosen, staff will consider issues such as clearance from curbs, driveways and
utilities, maintaining ADA access, proximity and/or need to relocate existing
items on the street, solar access for bike/kiosk recharging, and access for
street and sidewalk cleaning.
Staff is requesting Council
authorization of a station siting process by which staff will determine the
precise location of stations (Attachment F).
Council input is requested on the draft siting map to ensure that bikeshare access is generally being provided as Council
intends (Attachment G). Staff will then
finalize specific locations in the public right of way subject to a process
that includes approval by the Department of Public Works. Stations on public property owned or managed
by a specific department (libraries, parks) would be sited in coordination with
that department. Staff would obtain any
required authorization from the Coastal Commission prior to installation of any
stations in the Coastal Zone, and if stations are proposed on State beach
property, the appropriate approvals will be obtained.
Municipal Code Amendment Requirements
Because the “smart-bike” system
utilizes racks that are designed for the bikes but are essentially regular bike
racks, staff is requesting direction to prepare an amendment to the Municipal
Code to prohibit the use of these designated bikeshare
stations by other non-bikeshare purposes.
Staff will also consider whether other ordinance changes may be required
and will bring the proposed ordinance forward to Council prior to system
operation.
Contract terms
The procurement was conducted jointly
for capital expenses and operations to ensure an optimal cost for the total
equipment purchase, installation and operations. The contract includes a total of seven years
of operation consisting of three initial years and two additional two-year
options. It includes a two-month
operating advance and 10% retention (discussed above) to ensure service
standards are met. The equipment
purchasing terms address the need for an initial deposit by requiring the City
to pay 50% of equipment costs up front and the balance on delivery. Security to ensure delivery will be
negotiated. Attachment B includes these
and other key contract terms.
Schedule
Following contract
execution, the system is expected to be operational in approximately eight to
nine months, with the goal of a summer debut.
The full schedule, which includes the station siting, equipment
manufacturing, marketing development and launch preparation, is detailed in
Attachment H. Staff’s plan to return to
Council in January to confirm the system identity is necessary to maintain the
launch schedule by providing specific instructions to the manufacturers for the
bike’s color and name. If authorized by the Council, the pre-launch publicity
would begin immediately.
Alternatives
As an alternative to
the actions recommended in the report, the Council may consider postponing the
implementation of a BikeShare program in order to
become part of the regional rollout being developed by Metro. In this case, it is likely that BikeShare would be delayed in Santa Monica by at least two
years and the City would lose the CalTrans and AQMD grant funding (approximately $2 million total, which
is recommended in this report for the equipment purchase). The City would then follow Metro’s lead in
regard to system identification, fee structure, sponsorship and equipment.
Financial Impacts & Budget
Actions
The contract to be awarded to CycleHop,
LLC for the purchase, construction, installation, and operation of the
500-bicycle sharing system is for an amount not to exceed $10,405,580. Funds
for the purchase and installation of the bike sharing system are available in
the FY 2014-15 Capital Improvement Program budget in the following accounts:
C204073.589100 $ 1,543,000
C204073.589200 $
300,000
C204073.589300 $
360,000
C017024.589000 $ 61,000
$
2,264,000
Expenditures related to the ongoing operations of the
500-bicycle sharing system will cost the City $8,141,580 over a seven year
period. The projected revenues from user fees and advertising/sponsorship fees
are anticipated to generate $1,510,000 annually. The General Fund will provide the initial
year’s funds to support the operating costs, and those funds will be paid back
in following years. Budget authority will be requested in the FY2015-17 biennial
budget for Council approval. Future year funding is contingent on Council
approval and budget adoption.
Prepared by: Lucy Dyke, Deputy Director for Special
Projects, Elizabeth Bar-El, AICP, Senior Planner;
Francie Stefan, Strategic & Transportation Planning Manager
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Approved: |
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Forwarded
to Council: |
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David Martin, Director Planning and Community
Development |
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Rod Gould City Manager |
Attachments: