sr-042611-3kCity Council Meeting: April 26, 2011
Agenda Item:
To: Mayor and City Council
From: Eileen Fogarty, Director, Planning and Community Development
Subject: Award of Contract for Bike Transit Center Operations to Bike and Park,
LLC
Recommended Action
Staff recommends that the City Council:
1) Authorize the City Manager to negotiate and execute a 2-year contract with two
2-year renewal options with Bike and Park, LLC for operation of the downtown
bike transit mobility center for a total not to exceed $120,000, inclusive of
optional services; and,
2) Approve the budget changes as outlined in the Financial Impact and Budget
Actions section of this report.
Executive Summary
This report recommends that the City Council award a 2-year contract with two 2-year
renewal options with Bike and Park, LLC to operate the new bike transit mobility center
in Parking Structures No. 7 & 8, located at Broadway and 4th Street and Colorado and
2°a Street, respectively. The center, currently under construction, will serve as a bike
and multi-modal "hub" for the downtown community, offering secure parking, showers
and lockers for regular commuters, and attended parking, bike repairs, rentals, travel
information and related services for all. Bike and Park will also promote "green mobility"
through outreach and education to employers and the public, and conduct bicycling
classes and tours as part of its core services. The initial two-year agreement will not
exceed $120,000.
Background
The City's Land Use and Circulation Element (LUCE) adopted in 2010 calls for an
increased emphasis on bicycling and other active transportation modes to improve
access, address congestion, reduce greenhouse gas emissions, promote healthy living
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and foster community. The LUCE identifies downtown as a priority area for non-auto
transportation, where the new Expo light rail station will become a focal point. This
mobility center will open ahead of the light rail station, offering alternative access during
construction, and will facilitate access after it is completed. LUCE policies and actions
specifically include mobility centers and secure bike parking as necessary for the City to
reach its No Net New PM Peak Trips goal.
The City obtained a federal grant from. the Los Angeles County Metropolitan
Transportation Authority (Metro) to build a downtown bike transit center. Construction
of the bike transit center began in March, with completion expected in Summer 2011
Previous Council Actions
On March 11.2008, Council authorized staff to proceed with the feasibility study for the
bike parking facilities in Parking Structures No. 7 and 8. On Julv 8, 2008, City Council
approved schematic designs of the Parking Structures Fagade Improvements Project
including the bike facilities layout. The design of the elevation was approved by the
Architectural Review Board at the April 6, 2009 meeting. On July 14, 2009, Council
authorized further development of the bike facilities as part of the pedestrian oriented
uses at both parking structures. On October 27. 2009, Council approved moving grant
funding for the Downtown Bicycle Center to Parking Structures No. 7 and 8 from
Parking Structure No. 2. On December 7. 2010, Council approved contracts with Icon
West, Inc. for construction of the project and Civil Source for construction management.
Discussion
The downtown bike transit center will serve as a community hub for bicycle and other
green mobility options as well as a secure parking facility to encourage commuters,
residents and visitors to bicycle to and within the district. Located at Colorado and
Second Street, and Broadway and 4th, in Parking Structures No. 7 and 8, the center is
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adjacent to the Santa Monica Place mall and near the Exposition Light Rail Line's
downtown terminal station.
The center is designed with secure parking space for 262 bikes in access-controlled
areas. Center members will be issued a key card enabling them to self-park their bikes
at any time, seven days a week. The secure area in Structure No. 8 includes men's and
women's showers, and both structures have lockers, restrooms and aself-service repair
area. Structure No. 8 also has retail space fronting Colorado Avenue with additional
racks for rental and valet-parked bikes, space for information displays, bike repair and
sales merchandise displays. Bi-fold doors will open the retail space to the street during
staffed hours. The retail space activates the street frontage, and allows the operator to
generate revenues to support center operations. The City has applied to Metro for grant
funding for additional mobility centers at the other two Expo Line stations at Memorial
Park/17th Street and Bergamot Station/26th Street.
Operator Selection
Staff issued a Request for Proposal (RFP) in December 2010 to select an operator for
the bike transit center. The selection committee consisted of four members from City
departments, including Finance, Housing and Economic Development, and Planning
and Community Development, and two external representatives, one from Metro and
one from the City of Long Beach. Three operator teams submitted proposals.
Members of the committee evaluated .references and Finance Department staff
evaluated information on financial stability. All three teams were interviewed on
February 18, 2011.
The selection panel ranked the teams according to price and fiscal responsibility (in this
case amount of requested City subsidy and willingness to assume financial risk); quality
and range of services to be offered; experience and efficiency; and the ability of the
proposer to provide such future service as may be required. Approach to the project
and ability to expand to additional locations were also considered.
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Bike and Park, LLC was selected as best proposer. Bike and Park's experience
includes operating the McDonald's Cycle Center in Millenium Park, Chicago and on-site
operations in Washington D.C's Union Station bike center. Bike and Park was recently
awarded the contract to operate a new center in Cincinnati, scheduled to open in 2012.
Their proposed team includes several local businesses and organizations. Perry's Cafe
& Rentals will operate -the bike rentals and tours components of the center. Urban
Motion Inca will offer limited Segway tour opportunities. Sustainable Streets will conduct
local marketing, employer and community outreach, and bike education activities. The
team will also involve local bike shops in the center by providing their information on the
bike center's web site and offering co-promotional opportunities.
Bike and Park's proposed services were the most comprehensive and their financial
proposal the most favorable to the City. Bike and Park will offer guided bike and
Segway tours, a bike share program for local employees, and on-going bicycle
education classes and outreach programs within their core services as well as basic
items such as maintaining and staffing the center, selling access passes, bike rental
and repair, and attended bike parking.
While many bike centers elsewhere require an ongoing public subsidy, Bike and Park
recognized that Santa Monica's strong visitor and. tourism market, and the facility's
prime location, provide an opportunity to operate it as aself-sustaining venture. Bike
and Park requested one-time City funding of $50,000 for initial furniture and equipment
costs for the center, after which revenues from its rental, repair and tour operations are
expected to cover center operating expenses, including a menu of education and
outreach programs. Bike and Park accepts the financial risk should revenues be less
than projected during the initial contract term. Bike and Park has agreed to pay the City
base rent of $17,500 and 15% of revenues from rentals and tours above $250,000,
consistent with City concession agreements such as that for bike rental at the beach.
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The Bike and Park team has the experience and expertise to provide other services in
support of the City's bicycle programs, including advising on future mobility centers,
organizing community bike tours, conducting bicycle skills training, and operating bike
valets. Staff is requesting additional contract authority of $70,000, for a contract total of
$120,000, to allow Bike and Park to provide these optional services on an as-needed
basis over the initial contract term.
Financial Impacts & Budget Actions
The $50,000 needed for center start-up in FY 2010-11 is available in account 0207011-
589054. Thereafter, the center will be self-supporting. Bike and Park will pay the City
$17,500 annually in rent and 15% of revenues from rentals and tours above $250,000.
This will be reinvested in bicycle programs. Account 20402.404471 PROP C LOCAL
RETURN-BIKE has been established to receive the revenues. Sufficient existing
Proposition C Local Return funds have been recommended for inclusion in the FY
2011-13 Budget to cover the $70,000 for optional services.
The maxim net financial impact to the City is $85,000 during the initial two-year term, as
a result of Bike and Park's rental commitment of $17,500 per year. The impact to the
City may be further reduced based oh the amount of rental and tour revenue generated
by Bike and Park each year.
Prepared by:
Annette Colfax, Transportation Demand Program Manager
Approved:
Forwarded to Council:
Eileen Fogarty, irector, Department of -Rod Gould
Planning and Community Development City Manager
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Reference Contract No.
9360 (CCS).