TITLE
Recommendation to adopt Specifications No. RFP PW16-058 and award a contract to CycleHop, LLC, of Santa Monica, CA, for the operation of the Bike Share Program, at no cost to the City for period of five years, from March 9, 2016 to March 8, 2021, with the option to renew for two additional five-year periods; and authorize City Manager, or designee, to execute all documents necessary to enter into the agreement, including any necessary amendments thereto regarding the terms of the agreement and scope of services. (Citywide)
DISCUSSION
On June 2, 2015, the City Council awarded a contract to CycleHop, LLC (CycleHop), in an amount not to exceed $2,176,625 to purchase the equipment for a Bike Share system. As the subsequent step, City Council approval is requested to enter into a contract with CycleHop for the implementation of the Bike Share Program.
CycleHop will operate, maintain and grow the Bike Share Program, which consists of the City’s 500 bicycles and 50 bike share kiosks, with the goal to self-sustain operations with revenue generated from user fees, sponsorship and advertising sales. The proposed agreement is expected to result in a positive fiscal impact to the City, based on a revenue-sharing model that will also fund the program’s ongoing operations and future expansion. Any net revenue reinvested by CycleHop into capital cost outlays and maintenance would be exempt from revenue sharing.
Operating 24 hours a day, the system will be monitored remotely and receive daily maintenance and cleanliness checks from the CycleHop operations team. A call center will operate at a minimum hour range of 6:00 a.m. to 8:00 p.m., with the objective that 98 percent of calls are answered within 3 minutes. Bicycles will be redistributed throughout the system, as necessary, on a daily basis, to meet demand. Docks and bicycles will be repaired or replaced within 48 hours of discovery or notification of defect. CycleHop will place stations in areas of high visibil...
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