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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 1 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 2 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. 3 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. 4 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 5 Reference Contract No. 9360 (CCS).