SR-10-13-2015-3B
City Council
Report
City Council Regular Meeting: October 13, 2015
Agenda Item: 3.B
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To: Mayor and City Council
From: David Martin, Director, Planning and Community Development,
Transportation Planning (PCD)
Subject: Agreement for Pilot Car Share Services
Recommended Action
Staff recommends that the City Council:
1. Award RFP# 7-8-2015 to Zipcar Corporation, a Massachusetts-based company, for
the provision of car sharing services;
2. Authorize the City Manager to negotiate and execute a contract with Zipcar
Corporation at no cost for two years, with two additional one-year renewal options at no
cost, on the same terms and conditions, for a total contract term not to exceed four
years.
Executive Summary
The contract to be awarded to Zipcar would provide a two -year pilot car sharing
program in the City of Santa Monica at no cost. There is no financial cost to the City to
provide the program as the cost to utilize the service will be covered by car share
members. The contractor would agree to performance criteria set by the City that
address program characteristics including customer service, vehicle availability,
greenhouse gas emissions and marketing. The City would provide a minimum of 20 on-
and off-street parking spaces for the program. The car sharing p rogram would offer
members a fully automated online 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 important tool in contributing towards a reduction in
vehicle ownership to promote alternative transportation modes to achieve the City's
Land Use and Circulation Element (LUCE) goal of No Net New PM Peak Hour Vehicle
Trips -- and the City’s top Strategic Goal of establishing a new model for mobility. It is
anticipated that the pilot public car share program would begin operation late in 2015,
and provide the traditional model of roundtrip car sharing services. If the program is
deemed successful, two additional one-year options for renewal may be exercised at
the City's sole discretion.
Background
Car sharing, a system where pre-approved members have access to private
automobiles at a specified hourly or daily rate (inclusive of fuel, insurance, and
maintenance), provides residents, employees, and visitors with convenient and viable
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alternatives to car ownership while also serving as a first- and last-mile option for transit
riders.
In 2012 the 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. Subsequently, on
June 25, 2013, Council authorized a two-year contract with Hertz Corporation to provide
a pilot car share program in the City of Santa Monica. Hertz became non -responsive
during the contract negotiations. On May 27, 2014, Council withdrew authorization of
the negotiations with Hertz and directed staff to initiate a new request for proposals for
the Pilot Car Share Program. Subsequently on July 28, 2015 Council authorized the
first reading of amendments to Chapter 3.06 of the municipal code allowing for the
designation of car share spaces in public off-street City-owned parking facilities.
Discussion
The addition of a public car sharing service in Santa Monica for visitors, residents, and
employees would facilitate choosing transit, biking, walking or ridesharing for primary
trips by offering the option of an automobile for trips when a vehicle is necessary. Staff
is recommending a pilot car share program to enable the provision of car sharing
services in advance of the Expo Light Rail opening in a format that provides the
flexibility to meet the needs of the City and current and future car share users.
Research shows that car share members reduce their vehicle miles traveled (VMT),
increase their use of other modes such as transit, bicycling and walking, and reduce
their car ownership. Reduced car ownership also reduces parking demand and
provides financial savings for households owning (and parking) fewer cars. The
Automobile Club of Southern California estimates the cost to own and operate a vehicle
in Southern California is $9,226 per year. Car sharing is a component of the City’s
strategic goal of a new model for mobility and has the potential to decrease local
household transportation costs which furthers the Strategic Goal of overall affordability
for lower-income residents.
Car Share Provider Participation
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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 address customer demand (including "green"
vehicles).
-Vehicles will be distributed throughout Santa Monica.
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. Attachment A shows the rates included in Zipcar's
proposal to the City.
4. Marketing Program -
-Provider would conduct an extensive marketing program for a wide range of
potential users, including residents, employees, and visitors.
-Provide information about local transit options and programs that support
transportation choice.
-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 Sustainability and Greenhouse Gas Emissions Reduction - Vehicles
are expected to be either zero emission, hybrid or at the top of their class in terms o f
fuel efficiency and emissions (EPA Smart Way or Smart Way Elite approved vehicles).
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Additionally a “waterless” carwash system would be used for the cleaning process.
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.
8. Data & Surveying – The provider will make data available to the City in real-time,
including self-service reporting tools regarding data such as utilization, member signups
and member activation. Additionally the provider will gather survey data from members
regarding topics such as customer satisfaction and pre- and post-membership travel
behavior.
City Participation
The City would assist in the implementation of the car sharing pilot program in the
following ways:
1. Provision of off-street and on-street parking spaces - The City would provide a
minimum of 20 off-street and on-street parking spaces free of charge to be reserved for
car sharing vehicles for the purpose of the pilot program and sign them accordingly.
The City would assist in identifying optimal locations for car sharing vehicles based on
existing demand, proximity to public transportation, and proximity to major employers
and complementary land uses. To further the City's goals, emphasis would be on
locating: 1) in and around high density residential areas, 2) in and around major
employment centers, and 3) at transit stations and other transportation hubs.
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 from posted car
sharing parking spaces.
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3. Assistance in marketing and promotion - The City has an extensive community
network including employee transportation coordinators, residential property
management companies, educational institutions, corporations, neighborhood
associations, merchant associations, and non-profit organizations interested in offering
car sharing to their residents, students, patrons, and/or employees. The City would
assist in connecting the operator with potential partners seeking vehicle availability
and/or membership services.
The car sharing organization would initially enter into a two-year pilot agreement,
pending Council authorization. The contract would contain a provision for two optional
one year extensions.
Consultant Selection
On July 8, 2015, the City issued a Request for Proposals (RFP) for a car sharing
program. The RFP was posted on the City's on-line bidding site, and notices were
advertised in the newspaper in accordance with City Charter and Muni cipal Code
provisions. Three hundred and eighty-five vendors were notified, 13 vendors
downloaded the RFP and three firms responded. Responses to the RFP were reviewed
by a selection panel of staff from Transportation Planning, Parking Operations, Housing
and Economic Development, the Office of Sustainability, and Downtown Santa Monica
Inc.
Proposals were received from Blue Solutions, Green Commuter, and Zipcar. Staff
recommends Zipcar Corporation as the best qualified firm to provide a pilot car sharin g
program for Santa Monica due to their extensive experience, ability to implement a
program in advance of Expo opening, affordable customer rates, and other evaluation
criteria. Zipcar Corporation is a car sharing company with over 900,000 members and a
fleet of over 10,000 vehicles in 31 major metropolitan areas and on more than 470
college campuses in Austria, Canada, France, Spain, Turkey, the United Kingdom and
the United States. With over fifteen years of experience, Zipcar has a track record of
providing car sharing services in small towns and large metropolitan cities. Locally,
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Zipcar has programs with the City of Los Angeles, West Hollywood, City of Pasadena,
Metro, USC, UCLA, LMU, UC Irvine, and LAX. Additionally, Zipcar has 12 vehicles
located in Santa Monica in private lots through relationships with property owners as
well as hundreds of local active Zipcar members. Zipcar would continue to pursue the
placement of vehicles in private lots to adequately serve the City and is proposing to
secure approximately two vehicles in private locations for every one vehicle placed in a
City owned on- or off-street location. Providing the number and variety of vehicles
needed to meet the City’s needs will be easier as a result of Zipcar becoming a wholly-
owned subsidiary of Avis Budget Group, Inc., a vehicle rental services company, in
March 2013. With approximately 10,000 vehicles in the Avis Budget Group rental fleet,
Zipcar is now more able to scale their operations quickly and efficiently.
Next Steps
A contract for a two-year pilot car share program would be negotiated and executed.
Staff would work with the provider to identify and prepare agreed upon parking
locations, develop a marketing and outreach plan for the Santa Monica launch, and
implement a kickoff event inclusive of extensive neighborhood-based marketing. It is
anticipated that the pilot public car share program would begin operations at the end of
2015.
At launch the system will consist of "traditional" round-trip car share vehicles, which are
picked-up and returned to the same location. Once the pilot program is underway staff
will monitor and evaluate the effectiveness of the program. Zipcar is testing a one-way
style service in select markets, where members are able to reserve and pick-up a
vehicle at a designated location and drop it off at another designated spot within the
system. If there is a demonstrated need and desire to provide this style of one-way
service between the dedicated parking spaces, staff will work with the provider to
incorporate this type of service.
Financial Impacts and Budget Actions
There is no immediate financial impact or budget action necessary as a result of the
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recommended action.
Prepared By: Francie Stefan, Strategic & Transportation Planning Manager
Approved
Forwarded to Council
Attachments:
A. Attachment A Zipcar Santa Monica Proposed Rates
B. July 10, 2012 Council Hearing on Ordinance 2403
C. June 25, 2013 Council Hearing Authorizing negotiations with Hertz for a Pilot Car
Share Program
D. May 27, 2014 Council Hearing Withdrawing AUthorization of negotiations with
Hertz
E. July 28, 2015 Council Hearing on Amendments to Chapter 3.06 Regarding the
Designation of Car Share Spaces
Car Sharing Program for City of Santa Monica 34 | P a g e
CONSUMER PLANS FEES AND RATES ZIPCAR FOR BUSINESS
PLAN
MEMBERSHIP FEE
OCCASSIONAL DRIVING
PLAN
FULL RATES
$7.00 MONTHLY FEE or
$70.00 ANNUAL FEE
$35.00 ADDITIONAL DRIVER
FEE
$25.00 ONE TIME
APPLICATION FEE
$35.00 ANNUAL FEE PER
DRIVER
NO APPLICATION FEES
$75.00 ONE TIME BUSINESS
ACCOUNT SET UP FEE
EXTRA VALUE PLANS
(EVP)
DISCOUNTED RATES BASED ON
MONTHLY PREPAID DRIVING
CREDIT
NO ANNUAL FEE
$25.00 ONE TIME
APPLICATION FEE
N/A
$50 PREPAID MONTHLY 10% OFF ALL DRIVING NO ROLLOVER OF CREDIT N/A
$75 PREPAID MONTHLY 10% OFF ALL DRIVING 1 MONTH ROLLOVER OF
CREDIT N/A
$125 PREPAID MONTHLY 10% OFF ALL DRIVING 2 MONTH ROLLOVER OF
CREDIT N/A
$250 PREPAID MONTHLY 15% OFF ALL DRIVING 2 MONTH ROLLOVER OF
CREDIT N/A
RATE TYPE
*CONSUMER WEEKDAY DRIVING
RATES
MONDAY - THURSDAY
*CONSUMER WEEKEND
DRIVING RATES
FRIDAY – SUNDAY
**ZIPCAR FOR BUSINESS
DRIVING RATES
MONDAY – FRIDAY
HOURLY RATE – ‘FORD
GOOD CLASS’ $8.50 $9.50 N/A
HOURLY RATE – ‘GOOD
CLASS’ $9.50 $10.50 $9.50
HOURLY RATE – ‘BETTER
CLASS’ $10.50 $11.50 $9.50
HOURLY RATE – ‘BEST
CLASS’ $11.50 $12.50 $11.50
BUSINESS DAY RATE –
7AM TO 7PM MONDAY -
FRIDAY
N/A N/A $69
DAILY RATE – 24 HOUR
PERIOD $78 $82 $76
**OVERNIGHT RATE
6PM – 8:30AM MONDAY
- THURSDAY
$33 $33 $33
* Beginning rates, may increase, depending on location
** Applies only to ‘Good Class’ and ‘Better Class’ Vehicles
Reference:
CONTRACT NO. 10914
(CCS)