Item Coversheet

Resolutions - C7  T




COMMISSION MEMORANDUM

TO:Honorable Mayor and Members of the City Commission 
FROM:Alina T. Hudak, City Manager 
DATE:June  23, 2021
 



SUBJECT:

A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING AND AUTHORIZING THE CITY MANAGER TO EXECUTE AMENDMENT NO. 3 TO THE AGREEMENT WITH DECO BIKE, LLC (D/B/A CITI BIKE) FOR THE IMPLEMENTATION, MANAGEMENT, AND OPERATION OF A SELF-SERVICE BICYCLE SHARING PROGRAM PURSUANT TO REQUEST FOR PROPOSALS (RFP) NO. 44-07/08; SAID AMENDMENT APPROVING THE IMPLEMENTATION OF A ONE-YEAR PILOT PROGRAM FOR THE OPERATION OF UP TO 100 DOCKED ELECTRIC-ASSISTED BICYCLES CITYWIDE WITHIN THE EXISTING CONCESSION AREAS.


RECOMMENDATION

The Administration recommends that the Mayor and Commission adopt the Resolution approving Amendment No. 3 to the Agreement with Deco Bike, LLC (D/B/A Citi Bike) to allow for a one-year docked electric-assisted bicycle sharing pilot program in Miami Beach.

BACKGROUND/HISTORY

On July 12, 2009, the City and Deco Bike, LLC (“Concessionaire”) executed a Concession Agreement for a Self-Service Bicycle Rental & Sharing Program (“Agreement”).  On July 18, 2012, the City and Concessionaire entered into Amendment No. 1 to the Agreement, extending the term of the Agreement through September 30, 2023 and increasing the operation ceiling to 1100 bicycles on a Citywide basis, modifying the financial terms and approving advertising and sponsorships.  On May 12, 2015, the City and Concessionaire executed Amendment No. 2, approving the sponsorship with Citibank, to operate under the program name of “Citi Bike”.

 

Since 2011, the City has provided its residents and visitors with a bicycle sharing service through the Agreement.  As part of this Agreement, Citi Bike provides approximately 1,000 bicycles which can be rented at any of its 100 stations or "docks" strategically and conveniently located throughout the City.  The Agreement also provides revenue to the City through a revenue sharing agreement with Citibank.  In FY 2018/19, the Citi Bike revenue share to the City was $531,644 with a total of over 1.7 million trips registered, of which over 1 million were member (resident) trips.

The City's Agreement currently provides for deployment of standard human-powered bicycles which require the user to pedal.  Concessionaire also provides docked bicycle sharing services for the City of Miami.   In the last few years, however, the popularity and use of electric-assisted bicycles in the U.S. has grown and more people are using electric-assisted bikes as a more convenient means of active transportation. 

 

The City has established a citywide mode share goal that seeks to reduce travel by motor vehicle and increase the share of travel by riding transit, walking, and riding a bicycle.  The Administration believes that the use of electric-assisted bicycles could serve as a more convenient means of mobility for users as compared to the conventional human-powered bicycles provided by Concessionaire and help the City achieve its mode share goal of 8% bicycle trips by 2035 (5.5% in 2016).

 

Prior Committee and Commission Action

A discussion item regarding a potential electric-assisted bicycle sharing program was referred at the October 17, 2018 City Commission meeting by Commissioner Ricky Arriola to the Neighborhood/Community Affairs Committee (NCAC).  At the November 30, 2018 NCAC meeting, the Committee requested that the Administration explore the potential of deploying a pilot program and to research the potential use of the existing bike lanes in the City.

 

On February 11, 2019, the Transportation, Parking and Bicycle-Pedestrian Facilities Committee discussed this item and passed the following motion:  "The TPBPFC recommends that the City enter into conversations with the existing company the City has for bicycle sharing (Citi Bike), as they have provided good service throughout their contract with the City."  This motion was transmitted to the Mayor and City Commission via LTC # 084-2019.

 

This item was subsequently discussed at the May 20, 2019 NCAC meeting.  At the meeting, the Administration recommended pursuing a pilot program in partnership with Citi Bike via an amendment to the current Agreement; however, the NCAC recommended that the Administration come back to NCAC and present a vision and preliminary plan for an electric-assist bicycle sharing pilot program, including the number of electric-assist bicycles to be deployed and potential locations, gather research from independent organizations on the effectiveness of electric-assisted bicycles, other cities' experiences with these devices (including safety issues), and potential financial implications.

 

At the July 23, 2019 NCAC meeting, City staff presented several options to the Committee and recommended a competitive procurement as the preferred option.  NCAC discussed this item, including the advantages and disadvantages of a potential pilot program.  The Committee passed a motion by acclamation recommending that the Administration engage in a pilot program for docked electric-assisted bicycle sharing in the City and amend the City’s contract with Citi Bike, which already includes a provision for additional services, to provide electric-assisted/motorized bicycles on a pilot basis as part of Citi Bike’s current bicycle sharing program; and further recommending that the City Attorney’s Office work on a prohibition on riding electric-assisted bicycles on sidewalks in the City.  Lastly, the Committee recommended that the Administration determine an appropriate duration for the pilot program and take the item to the City Commission for further consideration.    

 

On December 11, 2019, the City Commission adopted Resolution No. 2019-31105, accepting the recommendations of the Neighborhood/Community Affairs Committee, and authorizing the City Manager to negotiate an amendment to the contract between the City and Deco Bike, LLC (D/B/A Citi Bike) for the provision of a docked electric-assisted bicycle sharing pilot program, subject to City Commission's approval of the final amendment.

 

Pursuant to Miami-Dade County Emergency Order No. 05-20, the Citi Bike program was suspended on March 18, 2020. Miami-Dade County Emergency Order 29-20 authorized resumption of service and the service resumed on September 17, 2020.


ANALYSIS

Pursuant to direction from the City Commission at the December 11, 2019 Commission meeting, City staff has negotiated Amendment No. 3 to the current contract with Concessionaire for the provision of a docked electric-assisted bicycle sharing pilot program (“Pilot Program”) in Miami Beach including the following key terms:

 

Pilot Program Duration

Citi Bike expects to launch the Pilot Program within 90 days of the Effective Date of the Agreement.  The duration of the Pilot Program will be 12-months from the launch date.  Progress reports will be provided to the City after conclusion of the 6-month and 12-month periods.  The City could, however, terminate the Pilot Program for convenience at any time with 30-day advanced notification to the Concessionaire.   

 

Number and Placement of Electric-Assisted Bicycles

The Pilot Program will consist of a minimum of 80 and maximum of 100 electric-assisted bicycles (i.e. approximately 10% of the current Citi Bike inventory in the City).  Electric-assisted bicycles will be placed at existing Citi Bike docking locations throughout the City, replacing the same quantity of conventional bikes throughout the Pilot Program, and maintaining the same overall number of bicycles under the current bicycle-sharing program.  Users will be able to identify the location of electric-assisted bicycles through Citi Bike’s mobile application as well as visually. All electric-assisted bicycles used in the Pilot Program will be equipped with GPS devices for tracking purposes. 

 

Maximum Operating Speed

To ensure the safety of riders and the public, the electric-assist function on each bicycle will be regulated to a maximum speed of 12 MPH.  Over 12 MPH, electric-assist bicycles will operate as conventional bicycles (i.e. solely on human power).    

 

Prohibited Areas

Under the City Code, the electric-assisted bicycles that will be used as part of the Pilot Program are defined as motorized bicycles.  Furthermore, the City Code deems motorized bicycles to be a motorized means of transportation, and, consequently, their use is prohibited by various provisions of the City Code in certain areas of the City, including, but not limited to: Lincoln Road Mall, Beachwalk, Lummus Park Promenade, South Pointe Park, and any sidewalk in the City.  Citi Bike will be required to install stickers on the inside of each bicycle basket, on the exterior of each docking station, and on its website, pursuant to the restrictions set forth in Section 70-67 of the City Code.

 

Performance Metrics and User Surveys

Under Amendment No. 3, Concessionaire will provide a monthly report with the following performance metrics: number of electric-assisted bikes deployed, number of trips, usage (members vs casual), most popular stations for bicycle pick-up and drop-off, and average trip length.  Furthermore, Concessionaire will conduct an electronic user survey during the pilot program to ascertain trip purpose, how often the electric-assisted bicycles are being used, how the trip was conducted prior to the pilot program, and other information to determine the effectiveness of the Pilot Program in terms of providing a viable first mile/last mile option and reducing vehicular trips in the City.

 

Pricing and Revenue Sharing

Given the capital investment associated with integration of the new equipment by Concessionaire, both the price schedule for customers and revenue share for the City will remain per the current Agreement. 

 


SUPPORTING SURVEY DATA

Based on the 2019 Resident Survey, 64% of residents feel somewhat safe when riding their bicycle in the City, and 37% of residents feel unsafe.  47% of residents responded that at least one person in their household regularly rides a bike.  33% of residents consider bicycling the most viable alternative to using cars for trips within Miami Beach.

FINANCIAL INFORMATION

Given the current revenue share with Citi Bike, this amendment is expected to have a positive fiscal impact on the City. 

CONCLUSION

The City is moving towards becoming a more bicycle-friendly city through the implementation of various bicycle facilities and enhancements recommended in the adopted 2016 Transportation Master Plan and Bicycle-Pedestrian Master Plan.  Both master plans, as well as the City's adopted Modal Hierarchy, prioritize bicycles as a mode of transportation for residents and visitors, particularly in terms of providing efficient first mile/last mile connections. 

 

The Administration believes that the use of electric-assisted bicycles could serve as a more convenient means of mobility for users as compared to the conventional human-powered bicycles provided by Concessionaire and help the City achieve its mode share goal of 8% bicycle trips by 2035 (5.5% in 2016).

 

If  the City Commission approves Amendment No. 3 to the agreement with  Citi Bike for a one-year electric-assisted bicycle sharing pilot program, the Administration will work with Citi Bike  to commence the pilot program within  90 days.  Furthermore, the Administration will provide quarterly updates on the status of the pilot program, including performance metrics, via Letter to Commission, to help  inform  a  future decision  on  a long-term electric-assisted bicycle sharing program in the City  once the pilot program terminates.  

Applicable Area

Citywide
Is this a "Residents Right to Know" item, pursuant to City Code Section 2-14? Does this item utilize G.O. Bond Funds?
No No 

Strategic Connection

Mobility - Improve the walking and biking experience.
Legislative Tracking
Transportation and Mobility
Sponsor
Commissioner Ricky Arriola and Vice-Mayor Michael Gongora

ATTACHMENTS:
Description
Resolution
Amendment 3