SR-05-27-2014-3KID
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City of City Council Report
Santa Monieao
City Council Meeting: May 27, 2014
Agenda Item:3r-
To: Mayor and City Council
From: David Martin, Director of Planning and Community Development
Subject: Withdraw Pilot Car Share Program Selection
Recommended Action
Staff recommends that the City Council:
1. Withdraw authorization to negotiate and execute a contract with Hertz
Corporation, a New Jersey -based company, for a pilot car share program in the
City of Santa Monica.
2. Direct staff to initiate a request for proposals in order to obtain new proposals for
the Pilot Car Share Program.
Executive Summary
On June 25, 2013, Council authorized the City Manager to negotiate and execute a two -
year contact with the Hertz Corporation to provide a pilot car share program in the City
of Santa Monica. Since July 2013, staff have been working with representatives from
the Hertz Corporation to negotiate and execute a professional services agreement.
After two rounds of revision, Hertz has become unresponsive to repeated requests from
City staff to finalize the contract. On March 27, 2014, staff sent a letter to Hertz
requesting a response by April 18, 2014. No response was provided by the requested
deadline; therefore, staff has determined that Hertz is no longer interested in pursuing
the project. Staff requests that Council formally withdraw authorization to negotiate and
execute a contract with Hertz, and to direct staff to reissue a request for proposals.
Background
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,
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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,
supports multi -modal transportation choices, and is included in the department's work
plan for FY13 -15.
On July 10, 2012, Council approved Ordinance No. 2403 (CCS), which authorizes the
implementation of a City car share program and allows staff to designate specific on-
street parking spaces for the exclusive use of car share vehicles.
The City released a request for proposals (RFP) for a City pilot car share program on
September 6, 2012. The City received four proposals from qualified firms. The
proposals were reviewed according to the selection criteria identified in the RFP. Two
firms were selected for interview. In June 2013, staff recommended Hertz as the best
bidder, as they best met the selection criteria described in the RFP.
Discussion
Despite the positive qualifications and references for Hertz, the City has been unable to
negotiate and execute an agreement. After two rounds of revision, Hertz has become
unresponsive to repeated requests from City staff to finalize the contract. On March 27,
2014, staff sent a letter to Hertz requesting a response by April 18, 2014. No response
was provided by the requested deadline; therefore, staff has determined that Hertz is no
longer interested in pursuing the project. City staff understand that the City of Los
Angeles is presently facing a similar situation; City of Los Angeles staff have been
negotiating with Hertz to provide a similar car share service in Los Angeles, but have
yet to finalize a contract.
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Staff are eager to implement a pilot car sharing program. With a reissuance of the RFP,
staff are confident other car share providers will respond and ultimately a car share
provider will be selected for the pilot program. It is staff's goal to begin the pilot car
share program in late fall 2014. Once the RFP has been issued and responses have
been reviewed, staff will return to Council with a recommendation for a new provider
and a request for authorization to negotiate and execute a contract.
Financial Impacts & Budget Actions
There is no immediate financial impact or budget action necessary as a result of the
recommended action.
Prepared by: Sam Morrissey, P.E., City Traffic Engineer
Approved:
David Martin, Director
Planning & Community Development
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Forwarded to Council:
Ro Gould
City Manager