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SR-06-25-2013-3ICity Council Meeting: June 25, 2013 Agenda Item: 3 -1 To: Mayor and City Council From: David Martin, Director of Planning & Community Development Subject: Pilot Car Share Program Recommended Action Staff recommends that the City Council authorize the City Manager to negotiate and execute a two -year contract with the Hertz Corporation, a New Jersey -based company, at no cost to provide a pilot car sharing program in the City of Santa Monica, with one additional three -year renewal option Executive Summary The contract to be awarded to Hertz would provide a two year pilot car sharing program in the City of Santa_ Monica at no cost. The contractor would agree to performance criteria set by the City that addresses program characteristics including customer service and vehicle availability, greenhouse gas emissions and marketing. The City would provide at least ten on and /or off - street parking spaces for the program. The car sharing program would offer pre- approved members a fully automated on -line reservation and billing system that would provide access to a fleet of self - service vehicles strategically placed throughout the City. Development of this program is an essential tool in contributing towards the City's Land Use and Circulation Element (LUCE) goal of No Net New PM Peak Hour Vehicle Trips. It is anticipated that the pilot public car share program would begin operation in fall 2013. If the program is deemed successful, an additional three -year option may be exercised to extend the contract. The extension would allow for the option of negotiating provisions for the City to recover lost parking space revenue and /or a possible profit sharing arrangement. Background Car sharing, a membership based system where pre- approved members have access to private automobiles at a specified hourly or daily rate (inclusive of fuel, insurance, and maintenance), is a relatively new concept in personal mobility. Car sharing services first became popular in the San Francisco Bay Area in the early 2000s. Car sharing soon spread to Southern California, and by 2005 Santa Monica was home to a 1 number of car share vehicles for use by pre- approved members. All of these car share vehicles were located in designated off - street parking facilities. Due to contractions within the industry, by 2008 car sharing had disappeared from Santa Monica and the majority of Southern California cities. Development of a car sharing program is an essential tool in contributing towards the City's Land Use and Circulation Element (LUCE) goal of No Net New PM Peak Hour Vehicle Trips. The City is served by Santa Monica's Big Blue Bus and Metro Regional bus service and will host three light rail stations by 2016. Research has shown a beneficial relationship between the availability of car sharing and transit ridership, including a reduced reliance on car ownership. The City is focused on closely integrating land use and transportation measures, including strong Transportation Demand Management strategies. Implementing an easily accessible car sharing program complements the City's investments in transit, pedestrian and bicycle facilities and supports multi -modal transportation choices and is included in the department's work plan for FYI 3-15. The City envisions developing a car sharing program and establishing a legal relationship whereby the private firm would implement, market, and manage the program and the City would provide on- street and /or off - street parking assets. On February 23, 2010, Council directed staff to pursue a car sharing program. On July 10, 2012, Council approved Ordinance 2403 which allows staff to designate specific on- street parking spaces for the exclusive use of car share vehicles. Discussion The addition of a public car sharing service in Santa Monica for visitors, residents, and workers would facilitate choosing transit, biking, walking, or carpooling for primary trips by offering the option of an automobile for trips where a vehicle is necessary. The roll- out of the pilot program is anticipated to require an initial investment of staff resources in 2 the form of stakeholder meetings and identifying site locations followed by ongoing monitoring and oversight. Car Share Provider Participation The car sharing provider would cover all direct costs associated with the pilot program. Additionally, the car sharing organization must meet the following expectations. Language to this effect would be included in the contract. 1. Availability, choice and quality vehicles - • Vehicles are available, well maintained and clean. • A range of vehicles are offered to addresses customer demand (including alternative fuel options). 2. Customer service and user interface - • Prompt customer service response to vehicle maintenance, billing, membership and other issues. • Accessible user interface through web and mobile applications. 3. Affordability - The program must be reasonably priced with pricing levels guaranteed for the duration of the pilot program. Exhibit A shows the rates included in Hertz's proposal to the City. Exhibit A The table below represents Hertz on Demand's base rates for the Santa Monica car share program. Please note that weekday rates qualify Monday- Thursday, and members will receive dally rate when the cost of a multi hour rental exceeds the daily rate. the right to adjost those rates anytime at its awn discretion. 3 Entry Level $6.50 :$70.00 $8.00 $85.00 Economy $8.00 $76.00 $10.00 $90.00 Intermediate $9.00 $80.75 $10.50 $94.50 Fullsize $10.00 $89.50 $11.50 $103.50 Prius & Electric $10.50 $94.50 $12.00 $108.00 Midsize SUV $1150 $105.50 $13.00 $121.00 5 Pass SUV /Pickup Truck $13.50 $112.50 $15.50 $129.50 Mercedes /Large SUV $15.00 $135.00 $16.50 $148.50 Escalade /Navigator /Challenger $22.00 $180.00 $23.50 $205.00 "rtntez include9ns,inaoaro,maintenmse, IAO milespo ;4boarsnerind and 2d /AOnAsitle aootmareofnoetIadmrne. Hlot, "I, the right to adjost those rates anytime at its awn discretion. 3 4. Marketing Program - Provider would conduct an extensive marketing program a wide range of potential users, including residents, employees and visitors, and: • Provide information and links to information about local transit options and programs that support alternative transportation. • Partner with local organizations, businesses, employers, property managers, and organizations for marketing purposes. • Target outreach to underserved neighborhoods and neighborhoods with high parking demand. 5. Commitment to Greenhouse Gas Emissions Reduction - Vehicles are expected to be either zero emission, hybrid or at the top of their class in terms of fuel efficiency and emissions. 6. Hiring locally - priority to Santa Monica residents in hiring and compliance with the City's Living Wage Ordinance. 7. Indemnification - The program would not create financial risks to or burdens upon the City and the operator must fully and unconditionally indemnify the City. City Participation The City would assist in the implementation of the car sharing pilot program in the following ways: 1. Provision of on- street and /or off - street parking spaces — The City would provide at least 10 on- street and /or off - street parking spaces free of charge to be reserved for car sharing vehicles for the purpose of the pilot program and sign them accordingly. Some spaces may include Electric Vehicle Supply Equipment (EVSE). The City would assist in identifying optimal locations for car sharing vehicles based on existing demand, proximity to public transportation, proximity to major employers and other land uses. The locations of car share spaces on public property are to be mutually agreed upon between the City and the car share operator. To further the City's goals, emphasis would be on locating at: 1) transit stations and other transportation hubs, 2) in and around major employment centers, and 3) in and around high density residential areas with apartment buildings and condominiums. 2. Towing of non -car sharing vehicles from designated parking spaces — Certain on- street spaces would be designated for car share vehicles only. These spaces would be signed as car share vehicle parking only, and all other vehicles would be subject to towing. This would allow for towing of any non -car sharing vehicle 2 from posted on- street car sharing parking spaces. The same would hold true for posted off - street car sharing spaces. 3. Assistance in marketing and promotion — The City has an extensive network including employer rideshare coordinators, developers, residential property management companies, educational institutions, corporations, neighborhood associations, merchant associations, and non - profit organizations interested in offering car sharing to their residents, students and /or employees. The City would assist to the extent that staff resources are available. 4. Potential future City use of car share services — During the pilot program the City would explore the potential use of car share services to supplement its own pool of vehicles for general employee use and to reduce the need to purchase /manage /maintain additional pool vehicles. The City would work with the car share operator to determine the costs and logistics for the use of car share vehicles to supplement City pool vehicles. The car sharing organization would initially enter into a two -year pilot agreement, pending Council authorization. The contract would contain a provision for an optional three -year extension. The extension would allow for the option of negotiating provisions for the City to recover costs associated with lost parking space revenue and /or possible profit sharing arrangements with the car sharing organization based on specified targets. The City of Los Angeles is currently considering similar arrangements with car sharing organizations. Contractor Selection A request for proposals (RFP) was released in September 2012. The City received four proposals from qualified firms. The proposals were reviewed according to the selection criteria identified in the RFP, and two firms were selected for interview. Staff recommends Hertz is the best bidder based on the following criteria: • Hertz has been identified as having the greatest willingness and ability to perform all aspects of the proposal, including delivery of all service and software within specifications contained in the RFP. ® Hertz has the best plan for service personnel to satisfy any service problems that may arise during all phases of the contract. 5 • Hertz has been determined to have all necessary facilities and financial resources to complete the contract within the anticipated timeframe. • The proposed program, vehicles, service and software provided by Hertz were the most responsive to the specifications and other requirements contained in the RFP. • Hertz demonstrated the best understanding of project objectives. • Hertz had the best record and references for demonstrated experience in delivering car sharing in similar environments. Next Steps Staff would work with the provider to identify and prepare agreed upon locations. A contract for a two -year pilot car share program would be negotiated and executed. Staff would work with the Police Department on training and enforcement. It is anticipated that the pilot public car share program would begin operations in fall 2013. Once the pilot program is underway, City staff would monitor car share utilization information to ensure that the program is being well utilized in the City. Staff would also work with regional stakeholders, primarily Los Angeles Department of Transportation ( LADOT) staff, to compare the City's pilot program usage with other permanent car share programs. In the City of Los Angeles, it is staff's understanding that LADOT is currently developing an operator contract that allows for revenue sharing with the City of Los Angeles if certain designated levels of utilization are reached by the car sharing program. Furthermore, it is staff's understanding that LADOT's operator contract would provide for complete cost recovery for all City resources, including signage and lost parking revenue. Staff would utilize the regular reporting to be required as a part of the pilot car share program agreement to determine if it would be possible to transition the program from a pilot to a longer -term option where the City would have the opportunity to recover all costs for City resources and also share in the revenues created by a successful car share program. M Financial Impacts & Budget Actions There is no immediate financial impact or budget action necessary as a result of the recommended action, aside from potential revenue losses due to the provision of up to 10 on- street parking spaces for the exclusive use of car share vehicles. Staff would work with the Finance Department when locating on- street spaces for the exclusive use of car share vehicles to ensure that the vehicles are placed in locations where on- street utilization is not at 100% to minimize potential parking meter revenue loss. There would be no out -of- pocket expenditures other than signage for the parking spaces. The signage would be less than $1,000 and can be absorbed by existing account 014213.544010. Prepared by: Sam Morrissey, P.E., City Traffic Engineer Approved: David Martin, Director Planning and Community Development Department 7 Forwarded to Council: Rod Gould City Manager Reference: Contract No. 9753 (CCS)