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
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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
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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.
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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
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the right to adjost those rates anytime at its awn discretion.
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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
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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.
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• 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
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Forwarded to Council:
Rod Gould
City Manager
Reference:
Contract No. 9753 (CCS)