sr-022310-8bCity Council Meeting: February 23, 2010
Agenda Item: 8- g
To: Mayor and City Council
From: Eileen P. Fogarty, Director of Planning and Community Development
Subject: Proposed Plan to Establish a Carsharing Program
Recommended Action
Staff recommends that the City Council:
1. Direct staff to issue a request for proposals for the operation of a pilot Carsharing
program.
2. Authorize, in concept, the use of certain on and/or off-street parking spaces as
needed to support an active Carsharing program.
3. Authorize, in concept, the use of City resources to promote an active Carsharing
program.
4. Direct staff to draft an ordinance authorizing the reservation of on-street curb
space for Carsharing vehicles.
Executive Summary
Carsharing organizations provide members with access to a fleet of shared vehicles
located in neighborhoods for rental on a short-term basis, making it easier for
households to live without a car or a second vehicle. The draft Land Use and
Circulation Element recommends Carsharing as a means for reducing parking demand,
promoting use of alternative modes of travel, and reducing vehicle miles traveled by
residents and employees. Carsharing began in Europe, and has spread to many cities
and college campuses in the U.S., but carshare organizations have been slow to
establish programs in Southern California, except in connection with residential
university campuses. After a review of the current status of the carshare industry, staff
recommends the City issue a Request for Proposals and offer to partner with a
Carsharing organization by, for example, providing parking spaces under an exclusive
agreement for a pilot period, co-marketing the program, and facilitating access to local
businesses and organizations that may wish to participate.
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Background
Parking congestion and traffic are continuing concerns of Santa Monica residents. In its
consideration of the draft Land Use and Circulation Element (LUCE), Council endorsed
strategies to manage parking and reduce traffic, including transportation demand
management (TDM) programs that make it easier for commuters to leave their cars at
home, that reveal the true costs of driving, and that attract new residents who drive less
frequently.
The purpose of this report is to discuss potential approaches to develop and implement
a carsharing program in Santa Monica and to obtain policy guidance prior to issuing a
Request for Proposals (RFP).
Discussion
carsharing is a mobility option sometimes called the "missing link" in the package of
alternatives to the privately-owned automobile. It is a special form of short-term car
rental characterized by:
• Pre-screening of members
• All-inclusive short-term rates (gas, maintenance and insurance)
• Distributed fleet of neighborhood-based cars, often near transit
• On-line or automated phone-based reservations
• Self-service pickup and return (no rental office)
carsharing organizations (CSOs) often use smart technology such as special keyfobs
that allow a member direct access to the reserved vehicle, GPS to track location and
usage, and automated billing systems. CSOs may be small or large, for-profit
corporations or nonprofit organizations.
Background and Opportunities
carsharing began in Switzerland and has spread to cities and college campuses in
Europe, Australia, the United States and Canada. Some of the larger U.S. operations
are in Seattle, Washington; Portland, Oregon; San Francisco and Oakland, California;
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Arlington, Virginia; New York City; Boston, Massachusetts; Washington, D.C.;
Philadelphia and Chicago, and there are numerous smaller operations, often in college
towns.
Santa Monica was once home to a small carsharing program, with Flexcar vehicles
located in private spaces near 6th Street and Colorado, 6th and Broadway, and 7th and
Ocean Park and over 100 local members as of June 2007. Flexcars were also located
in Los Angeles and Pasadena. After Flexcar merged with Zipcar in October 2007, this
program was discontinued. Zipcar refocused its operations on residential college and
university campuses that offer a large student population with low car ownership rates.
In 2008, the City of Los Angeles Department of Transportation (LADOT) issued a
request for Letters of Interest for a one year pilot program in four areas of the city.
Zipcar, the only respondent, chose to place cars only near UCLA and USC, where it can
leverage its on-campus vehicles and membership base to achieve high utilization.
The characteristics of areas where carsharing is considered most likely to succeed are
descriptive of a number of Santa Monica neighborhoods:
• Parking pressures (parking is scarce, pricey, less convenient)
• Ability to live without a car (walkable/bikable, good public transit, local shopping)
• High density (more customers nearby).
• Mix of uses (business member use during the work day and individual members
during evenings ahd weekends)
Santa Monica areas that appear to be good candidates for carsharing include:
• Downtown Santa Monica
• The Civic Center area
• Sections of Ocean Park
• The area bounded by 20th, Colorado, Pico and Cloverfield
• Expo Line station areas (in the future)
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Determining the exact locations would be a collaborative process between the CSO and
the City
Environmental and Social Benefits
The draft LUCE proposes carsharing as a component of a set of TDM tools to help
achieve the goal of "no net new peak trips" and the goal of reduced parking demand:
Access to a carshare vehicle at a destination supports the decision to walk, bike or use
transit to get there, as a car is available for use if needed. carsharing increases
awareness of the true costs of driving, as users typically pay by the hour. Research
shows carshare members reduce their vehicle miles traveled (VMT), increase their use
of other modes such as transit, bicycling and walking, and reduce their car ownership.
Many carshare fleets include hybrid and fuel efficient new vehicles, further increasing air
quality benefits. Reduced car ownership also reduces parking demand and provides
financial savings for households owning (and parking) fewer cars. The Automobile Club
of Southern California estimates the cost of car ownership alone, excluding operating
costs, averages $5,783 per year.
Conversely, carshare membership broadens transportation opportunities for low income
and other households with low vehicle ownership, providing access to a car for trips that
would be difficult or impossible on transit
Challenges
The most challenging part of developing a carsharing program appears to be getting it
started. CSOs are generally cautious and selective in expanding to new markets, due
to the investment required in the vehicle fleet and technology. Some solicitations by
cities have received little or no interest, but the marketplace is changing, with traditional
car rental companies entering the market as well as new small start-ups..
CSOs typically look for free parking from a city partner. A city must weigh the benefits
of providing such spaces with the needs of other parkers as well as the impact on
parking revenues.
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Once a carsharing program is established, operational issues may arise such as:
• Non-carshare vehicle parked illegally in reserved carshare space
• Carshare vehicle parked illegally because designated space not available
• Carshare space not cleaned adequately
• Carshare vehicle not moved by CSO when required for special event
CSO responsibilities should be clearly defined in the agreement to minimize conflicts
and City staff must be prepared to monitor compliance, and address complaints and
community issues.
City Participation
Carsharing has the greatest opportunity to succeed when it is launched in partnership
with public and private sector institutions. The City can better attract CSOs and
promote a sustainable operation by offering its support and participation. Some CSO's
have asked for and received revenue guarantees from their program partners; however,
there are a variety of other ways the City could participate with a manageable impact on
existing resources. Staff recommends the City participate by:
1) Sharing staff's knowledge of neighborhoods and its GIS resources to
collaboratively identify locations for carshare vehicles
2) Assisting with outreach to business associations, neighborhood associations, the
Convention and Visitors Bureau, developers, community organizations, and
nearby cities that may be eager to offer carsharing to members.
3) Assisting in marketing and promotion via City TV, newsletters, etc.
4) Designating parking spaces- for the exclusive use of carshare vehicles and
offering them at no cost to a single operator during a pilot period
5) Citing or towing non-carshare vehicles from signed carshare spaces
6) Considering replacement of a portion of the City's own fleet with carshare
vehicles
7) Incorporating the requirement to provide parking for carshare vehicles in
development agreements, where appropriate
Staff is requesting Council direction on potential City participation at this time so that it
may be included in solicitation documents.
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Ordinance
Carshare organizations typically prefer to locate at least some vehicles in highly visible,
dedicated and signed spaces to build awareness and establish the service as safe,
convenient and fully integrated with the surrounding transportation network. Generally,
the preference is for on-street parking to ensure visibility. Staff recommends that the
City consider providing parking spaces for the exclusive use of carshare vehicles free of
charge on the street and/or in public structures and lots. The City's Municipal Code
does not currently provide the authority to designate on-street parking spaces for
carshare vehicles. California Vehicle Code Section 22507 allows cities, by ordinance or
resolution, to designate certain streets, or portions of streets for the exclusive parking. of
vehicles in a carshare program. Adopting an ordinance prior to or concurrently with
issuing an RFP will demonstrate the City's commitment and readiness to implement
carsharing.
Vendor Solicitation
To attract the most interest in bringing a program here, staff recommends issuing an
RFP that:
• Encourages participation by keeping response requirements simple,
• Provides flexibility for each vendor to propose a unique program or even
alternative options,
• Allows City staff to work collaboratively with one or more vendors to refine the
proposed program before an agreement is brought to Council for consideration.
Staff recommends entering into an exclusive. arrangement for a period of up to three
years with a single vendor for a demonstration program. This would allow the vendor to
add cars to its fleet gradually and create a more financially sustainable program.
Vendor Requirements
Potential CSO partners would be evaluated on their:
1) Sustainability, as measured by membership growth and utilization, and financial
viability
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2) Progress in achieving the potential social and environmental benefits of
carsharing, such as reduction in VMT and car ownership and increased use of
alternative forms of transportation by members
3) Compliance and cooperation regarding parking laws, cleaning parking areas, and
fleet management
4) Member satisfaction
5) Access by low income residents and/or those who do not own. a car
6) Cost savings for the City if a portion of fleet vehicles are replaced with use of
carsharing vehicles
7) As profitability is achieved, reinvesting in the local. program and/or paying for
parking provided by the City
Next steps
1) Prepare an ordinance for first reading that authorizes the Transportation
Management Division to designate on-street spaces exclusively .for registered
carsharing vehicles and provides penalties for violation
2) Develop a process for designating public parking spaces for carsharing vehicles,
including a community involvement component
3) Initiate an RFP for a pilot program
4) Concurrently, maintain communication with the Westside Cities Council of
Governments and other stakeholders to provide opportunities for collaboration
5) Negotiate with one or more of the responsive proposers and return to Council
with details of a recommended program.
Alternatives
1) Council could choose not to actively participate or pursue a carsharing program
at this time. carsharing organizations have the option to establish programs
independent of City participation, by developing parking agreements on private
property. Eventually; it is likely that market forces will lead to the establishment
of this type of program here again. This alternative is not recommended as it
would likely result in a slower introduction of carsharing and in a program serving
a more limited portion of the community.
2) Council could direct staff to develop a local non-governmental organization to
provide carsharing. services, or lend support to community groups wishing to
develop one, rather than issue a solicitation to existing organizations. This
alternative is not recommended due to the resources that would be required.
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Financial Impacts & Budget Actions
There is no immediate financial impact from this recommendation. Staff will return with
the results of the solicitation and a recommended agreement, including an assessment
of financial impact, and request consideration of any needed budget actions at that time.
If the City participates as described above, some revenue loss would be realized from
parking spaces designated for carshare vehicles, and some signage and enforcement
costs incurred.
Prepared by: Annette Colfax, Transportation Demand Program Manager
Approved:
Forwarded to Council:
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Rod Gould
City Manager
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Development