Operating hours:

• Mid-Beach On-Demand Transit Service:
•  Monday - Friday: 6:30 am - 10 pm (14 billable hours)
•  Saturday: 8 am - 10 pm (12.5 billable hours)
• Sunday: 8 am - 8 pm (10.5 billable hours)

• On-Demand Transit Service for Seniors:
•  Monday - Sunday: 7 am - 5:30 pm (9.75 billable hours)

Current performance metrics:

1.     Average monthly ridership (FY23):

•  Mid-Beach On-Demand Transit Service: 2,162
•  On-Demand Transit Service for Seniors: 4,033

      2.    Average waiting time (completed riders): 18 minutes

3.    Completed rides % by waiting times: 

•   0 - 10 min: 43.9%
•  10 - 15 min: 17.1%
•  15 - 20 min: 11.9%
•  20-30 min: 14.6%
•  30+ min: 12.5%

Based on a review of the current service level, the average passenger wait time is under 20 minutes which is comparable to the average wait time of our citywide trolley service.

The Administration is working with Freebee to improve the efficiency of the service and reduce passenger wait times, especially during peak hours and shift changes.

Within the next few months, at the City's request, Freebee will switch from using golf-type electric vehicles to Tesla X, which could bring several benefits, including:

• Longer vehicle range: Tesla X is an electric vehicle with a longer driving range without needing to recharge as compared to golf-type cars. This means that the vehicle is more efficient and can travel further on a single charge, allowing it to cover more distance and serve more passengers without frequent charging.
• Improved safety: Tesla X is equipped with advanced safety features, such as autopilot and collision avoidance systems, that can help reduce the risk of accidents and enhance passenger safety.
• Comfort and convenience: Tesla X offers a comfortable and luxurious ride, with features like a panoramic windshield, falcon-wing doors, and advanced climate control systems. This can provide passengers with a more enjoyable and convenient travel experience, which can help attract more riders and improve customer satisfaction.

Another improvement proposed by the Administration is changing the location where vehicles are being charged to reduce the downtime associated with recharging. The Administration believes these changes will improve overall service performance and will result in increased passenger demand. After these changes are implemented in the next few months, staff will analyze average wait times and passenger demand, and will propose any further improvements and service changes as warranted. 

At this time, the Administration believes that the current service level is appropriate for the demand generated within the Mid-Beach service area. However, staff will continue to monitor the service and work with Freebee to ensure maximum efficiency and identify if any service improvements should be recommended. 

FINANCIAL IMPACT:

Based on the existing contract with Freebee, the annual operating cost for on-demand transit services is $540,100:

• Mid-Beach On-Demand Transit Service (2 vehicles – Tesla Model X): $324,100.00

• On-Demand Transit Service for Seniors (2 vehicles – Gem e6): $216,000.00
  
  

As in previous years, revenue share generated from advertising sales would offset the cost to the City. Revenue to the City has historically been approximately $65,000 per year on average.

The hourly rate to the City for Gem e6 (golf-type vehicle) is $26.25, and $29.33 for the forthcoming Tesla Model X. Passengers are not charged a fee for this service. Assuming the same operating hours as Mid-Beach On-Demand Transit Service, adding eight (8) Tesla Model X vehicles will incur an additional annual operating cost of 972,300, or $162,050 per vehicle annually. If six (6) Gem e6 vehicles are added, the cost increase would be $765,528, or $127,588 per vehicle annually. If three (3) Tesla Model X vehicles and three (3) Gem e6 vehicles are added, the cost increase would be $868,914 annually.

The Administration is satisfied with the service quality, service reliability, quality of personnel, and customer service provided and demonstrated by Freebee, as well as with Freebee's compliance with all contractual requirements since the Agreement's inception.

Incorporating two (2) Tesla Model X vehicles to the program, as currently contemplated, will increase service efficiency. Tesla vehicles can cover more service areas in a shorter period, thus enhancing the service capacity while keeping the same number of vehicles in service and minimally increasing service costs. After these changes are implemented in the next few months, staff will analyze average wait times and passenger demand and propose any further improvements and service changes as needed.