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HomeMy WebLinkAbout16 Community Bike Share Programenda Item # ACTION 16 To: Board of Directors From: Jeremy Popov Date. June 07, 2017 Subject: Consideration of Participation in a Community Bike Share Program 1. WHY THIS MATTER IS BEFORE THE BOARD The District has an opportunity to consider participating in a community bike share service via partnership with other local agencies. As a policy matter this item requires Board approval. 2. HISTORY The Truckee Tahoe Airport District (TTAD) approached District staff regarding the formation of a local bike share program. District staff met with TTAD to learn more and prepare this staff report for Board consideration. 3. NEW INFORMATION Many progressive communities include bike sharing as an alternative form of transportation and as a representation of their commitment to sustainability, efficiency, and health. Bike share programs allow users to rent a bicycle for local transportation and return the bicycle to any bike share bicycle station within certain boundaries. The fee to rent a bicycle depends on the rental duration. The TTAD has already established the framework agreement fora bike share program in Truckee. TTAD has signed a one year contract with Zagster, a "bike share as a service" company with headquarters in Cambridge, MA (and local offices in California), to provide bike share services to Truckee. The agreement will provide 10 bicycles with two drop-off locations, one at the Airport and one at the fire station in downtown Truckee. As part of the full service model, all maintenance, balancing, replacements, and ongoing operation/ management, is handled by Zagster. The bicycles would be made available during non -winter months and stored during the winter period. TTAD issued an RFP and received three proposals. Zagster was selected as the most advantageous because of their unique full service offering. The TTAD reached out to District staff to assess whether the District would be interested in also supporting the program by placing an additional drop-off location at the District facility. This would include five additional bicycles available for the public to use, and further, would strateqicallv locate a pick-up/drop-off location on the west side of Truckee near schools and several major employers. These bicycles would also be available for District staff to utilize, which would be a benefit and enhancement to the District's wellness program and a clear display of the District's commitment to conservation, efficiency, and health. The District would be able to work under the TTAD's existing contract without a direct contract with Zagster. A simple contract between the District and the TTAD would be drafted to facilitate a reimbursement agreement from the District to the TTAD. The District's share of bicycles (five) would be branded with the District's logo. Over the long term, TTAD anticipates increased local agency involvement and perhaps a long term contract management turnover to the Town of Truckee or the Truckee -Donner Recreation and Park District. The fee structure for bicycle use is based on a membership model. In the membership model, users can pay a daily fee for a 24-hour pass, a monthly fee, or an annual membership fee. Once a member, users are be able to utilize the bicycles for 60 minutes free of charge, with an additional $3 charge for each additional 60 minutes up to a per trip / day maximum of $30. The revenue received would be returned to the District, less Zagster's processing charge of 7%, to help offset the cost of the program. If the Board approves participation the District will also need to provide a surface to place the bicycle rack. The conservation garden could be a good location, as increased traffic may encourage users to spend time in the garden. The conservation garden is also away from main heavy equipment access gates. Insurance is provided by Zagster. Should the Board wish to participate in this agreement, staff will reach out to TTAD to formalize the agreement and cover important aspects like insurance, site improvement requirements, etc. The Zagster proposal to TTAD is included as Attachment 1. 4. FISCAL IMPACT The cost to the District would be $9,000 to secure aone-year program inclusive of the full service and maintenance of five bicycles branded with the District's logo. Although not budgeted in FY17 Electric or Water Utility expenses, sufficient funds are available in the Electric /Water Utility general fund should the Board consider approval. 5. RECOMMENDATION Authorize the General Manager to execute a contract with the TTAD for the placement of five Zagster bicycles and a pick-up/drop-off bicycle station (not inclusive of District staff time or local site improvement costs) for an amount not to exceed $9,000 plus a 10% contingency for a total amount of $9,900. Jeremy Popov Administrative Services Manager Michael D. Holley General Manager rA Zagster � PROPOSAL CONTACT: Jordan Klein jordan@zagster.com PROPOSAL DATE: Marc 13th, 2017 Today the most progressive and forward thinking communities include bike sharing as a critical part of their multimodal transportation strategy and as a visible representation of their commitment to sustainability, efficiency, health and innovation. Zagster is the leader in bike sharing innovation for cities, academic communities, and corporate campuses across the United States. Working with universities, SGAs, mayors, city councils, metropolitan councils of governments and community improvement districts. We have a track record of delivering scalable, cost effective and connected bike sharing programs for communities such as Fort Collins Colorado, College Park - Maryland, Duke, Purdue, Yale, Salesforce and Workday to name a few. In total, Zagster operates more than 180 bike share programs across 35 states. The company uniquely delivers a full service: bike sharing hardware, technology, operations and analytics which work together seamlessly through mobile applications and connected cloud services. The sharing technology and biking hardware is continuously improved by the company and delivered to every program at no additional cost. Also, because of our unique "bike share as a service" model, Zagster is able to deliver scalable, successful programs to districts like I rUckee/I ahoe with transparent operations, predictable costs and a guaranteed level of service. It takes serious resources to manage, maintain and market a municipal bike share program. Zagster's principal product strategy is to ensure that all members of the community have access to the most time - efficient, fun, sustainable and healthy way to get around. This proposal outlines our service and how we plan to meet your goals as a partner. We are excited to help strengthen the Truckee Tahoe Airport District and we welcome any questions or feedback you have regarding the details included in this proposal. JORDAN KLEIN SOUTHWEST SALES CONSULTANT, ZAGSTER jordan@zagster.com (617) 714-9717 v2016 Zagster Inc - Confidential and Proprietary , Zagster ALPHARMA Gtf>*GIA Leading the way OUR CITY PARTNERS INCLUDE: ILLIN01S CITY OF LIGHTS CITY OF 1�'FST I AFAYI I fl �C�I�TER I Ipi/ .It 41 � C�-11NC �'VILLI. C'auncll of (:o�ernrnents CITY Of Westfield INDIANA WESTNINSTEtI U2016Zagster Inc- ConfrdentialandProprietary ®, Zagster Bike sharing has emerged as one of the most successful public transportation movements in North American Cities. Many cities implement bike sharing programs in order to reduce driving trips, improve access to transit, enable healthy lifestyles, stimulate local economic activity and promote sustainability. With distributed bike sharing programs, bikes are made available throughout the city for on -demand, local trips. Zagster's comfortable cruiser bicycles are designed for transportation —to get to and from work, run errands, for leisure and exploring the city. SERVICE OVERVIEW Zagster's service includes everything needed to run a bike share program. TTAD simply provides space for the docking stations and a designated contact for communicating with Zagster's dedicated customer success team regarding the program's rollout and administration. Because Zagster is continuously upgrading its bikes and technology, certain features may change over time. However, in general, Zagster's offering spans four categories: hardware, software, marketing and operations Bikes iOS and Android Apps Custom Website Dedicated launch and Locking Technology Docks Custom Signage Text reservation support Real-time cloud data Administrative reporting Printed &Digital Assets Press Relations Local Promotion success teams lete Maintenance Comp Repairs &Replacements 24x7 Rider Support $4M Liability Coverage c�2o16Zagsterinc- CanfidendalandProprietary ®� Zagster KEY HARDWARE INFORMATION ZAGSTER BREEZER UPTOWN - CRUISER BIKE Adjustable seat fits adult riders Smart keypad control allows for quick checkout Fenders and chain guard keep riders clean Mounted ring lock immobilizes bike when not in use 8 gear shifting III Convenient frontbasket with prominentbranding Dynamo powered, automatic front & rear lights THE SHARED BIKE RIDERS LOVE • Unanimously voted the most comfortable bike share bike by The Ohio State University • 30% lighter than competitive bike share bikes • Custom built with heavy-duty, easily sourced components LOCKING TECHNOLOGY (BLUETOOTH RING LOCK) Riders can unlock, ride and return any bike with any data or text message capable mobile phone. Because all the locking technology is automated and installed on the bike, there's no need for expensive kiosks. • Bluetooth T" low energy (BLE) smart lock • Locks/Unlocks at the touch of a button within the app, or by typing a code on the on -bike keypad • Solid-state design prevents tampering or removal • Securely mounted to the bike • Made exclusively for Zagster by AXA ON -BIKE KEYPAD Controls the ring lock o Allows access for riders using feature phones or smartphones without BLE compatibility o Robust and weatherproof o Enables one -touch locking i+)2016 Zagster Inc - Confidential end Praprfetary ®' Zagster. FLEXIBLE, SECURE DOCKING STATIONS • Individual docks allow for flexible applications and multiple siting options • Can be anchored or freestanding • Signage includes instructions and space for sponsorship • Security cable attached to each dock keeps bikes anchored between trips Sq` Docking cable securely attaches bike to station i Individual docking station ©2016 Zagster Inc - Confidential and Proprietary �� Zagster EQUITY THROUGH ACCESSIBILITY Accessible bikes are on the ground at Ohio State university and in Corvallis, OR; Rome, NY; Westminster, CO; Fort Collins, CO; Carmel, IN; College Park, MD. Accessible bikes enable access for riders who would otherwise be unable to use bike -share systems. RECUMBENT TRICYCLE CARGO SIDE BY SIDE TANDEM HANDCYCLE GZ016Zabsterinc ConfidenrialandProprietar} ®� Zagster PHYSICAL o Bike basket signage o Station signage o Full -bike customization* SIGNUP FLOW &RIDE FLOW • Intuitive interface makes signup quick and easy • Location Service optimized • Map shows bike station locations SELECTED BIKE $HARE Forest Ci andmark � NerWa115quare S� P BmneY St Bey waY `I f lnshtute • BloddN'd Y SI KeMaII/Mli® L k \ets�s C CHOOSE YOUR 81KE SHARE 101 Station Drive W ESTW OO D, MA Forest City CAM BRIDGE, MA SELECT ftrwac Bulfinch Main St CAMBRIDGE, MA MIT can School of Managemem SELECT U20t6Zagsterinc- ConFidentialandProprietaq' r� Zagster� Choose your bike Find the 4-digit bike # on the bike tube or the lockbox. 4 GHI 7 PQRS 353 START A RIDE 2 ABC 5 JKL 8 TUv 0 Done 3 DEF 6 MNO 9 YlXYZ Q Get rolling Here's your unlock code for bike # 353: 2639849 Enter your code into the lodebox on the back of the bike to access your Wock key. Close the Ieckbox and keep the tHock with you during your ride. LOCK INSTRUCTIONS TRIP DURATION 00:03 END RION Your trip summary TRIP DURATION ?6m15r. TOTAL CHARGE $0 ZAGSTER RIDER SUPPORT Ycur rFde v2. mad+pos�.ble by our pn-ud rartner: O AICOA map u2016 Zagster- Inc - Confrdentia! and Proprretagf ®� Z a g ste r� 1. BORROW Enter the bike's number into the app and tap START RIDE. You'll get a unique code to open and close the lockbox. 2. UNLOCK Use the key from inside the lockbox to operate the U-lock that attaches the bike to its station. Be sure to shut the lockbox before you ride. 3. RIDE Have fun! Use the U-lock to keep the bike secure if you make stops along the way. When you're done, lock the bike back to any Zagster station and close the lockbox. Then go to the app and tap END RIDE. Get rolling Here's your unlock cede for bike 7i 353� rear C r-IMU*I ktw C„a*WeV- bI.e to ues yrar Uk:d L'y'. CaKs uYe t z�:: Axp ac Ulxk �: thya ai nF ycx 6]e �I OCK INSTRUCTIONS TRIP DURATION z6:1 S v2016 Zagster lnc - C"onFrdential and Proprietary ®� Z a g s t e r GENERAL LIABILITY COVERAGE Zagster holds industry -standard insurance coverage that includes: • $2,000,000 General Aggregate • $2,000,000 Umbrella Coverage • $2,000,000 Product Liability • $1,000,000 Each Occurrence • $1,000,000 Personal/Advertising Injury Limit • $1,000,000 Employer's liability coverage A Certificate of Insurance is available to customers upon request. COMPLETE MAINTENANCE All operations and maintenance related to the bike share program is included in the cost of the Zagster service. Zagster services all bikes on a routine basis to make sure that the program is operating effectively and safely. CORE MAINTENANCE SERVICES • Local mechanic dedicated to servicing your bike share system • Proactive, comprehensive j0-point maintenance checks for every bike, every two weeks • Bike and station cleaning during maintenance checks • Immediate remote disablement of bikes flagged for maintenance • Free replacement parts (including labor) • Replacement bikes every three years LOCAL, ZAGSTER CERTIFIED MECHANICS The Zagster Certified Mechanic (ZCM) program hires local bike maintenance professionals. Applicants are required to have at least two years of professional bike maintenance experience to be considered. Zagster holds multiple interviews and conducts knowledge tests and background checks on qualified applicants. Zagster provides selected ZCMs with training on its leading internal mobile app maintenance technology. t02016 Zagster Inc - Confidential and ProprietarEr ®� Z agste r� REPAIRS AND REPLACEMENTS Zagster performs all repairs and replacements on bikes to keep them in per working order as needed. REBALANCING On an ongoing basis, Zagster's mechanics use location data generated by our ride tracking technology to reset stations to their optimal bike counts in order to make the bikes available to as many potential riders as possible. If a more efficient way to position stations is determined over time, Zagster's Customer Success team may make strategic recommendations for moving, reallocating or adding bike parking. 24/7 RIDER SUPPORT Zagster provides 24x7 rider phone and email support to every rider on every system. This comprehensive customer service program includes: ® 24x7 phone and email support Empowered, multilingual staff who are trained to handle 95% of calls without escalation o A partnership with a third -party translation service o Automated tools that provide support staff with instant data about the member, including identify and contact information, bike share membership information and trip history • Elasticity to support unlimited system members DEDICATED ACCOUNT MANAGEMENT Zagster provides every bike sharing partner with a dedicated customer success manager. Zagster's customer success team has extensive experience, training and resources to help meet your needs and ensure that your program is successful, <c�2016Zabsterinc- ConfideneialandProprietar}� �� Zagster SPONSORSHIPS Zagster will strategize with the Truckee Tahoe Airport District to identify potential sponsors and LO customize a sponsorship package that meets the growth needs of the program and fully subsidizes (along with rider membership fees) the ongoing operations of the program. a� Deaconess COLOLA ORATIVSE'SPONSORSHIP MODEL �pt�PliOF-jT �,pSEHrvgL G OL. a O A C) ��NpL GOy.T 4f� o ++tE{iNAL GO` a O 70 BIKES ACROSS 7 STATIONS ($0 CITY INVESTMENT) 1VIERITAIN' �/ ST.MARY'S H EARTH 41 trf l n A uvan'Svl le Welborn Baptist Foundation 90 BIKES ACR05510 STbTIdN5G22 BIKE INITIALnCIT� INVESTMENT) V1Slt hamilton county indiana Sponsored by It\ Carmel � Clay k / Parks&Recreation IL L,�( VWW TERRICE ALLEGION MARKET DISTRICT c�2016 Zagster Inc - Confidential and Proprietary , L..1 �.�I Zagster shares its data with customers for usage, planning and safety purposes via a web -based dashboard portal. This data is updated in real time and allows for critical insight into the performance of the bike share. Zagster uses two main sources of data to track bike share activity: trip data collected when members start and end trips, and the location of bikes during trips. Any time a member starts or ends a trip, Zagster records the trip information, such as the member name, membership plan, bike number and start and end time. Then, Zagster tracks the site of bikes in real time using its mobile app and geofence technology. Based on decades of experience in the transportation sharing economy, Zagster has built dashboards that clearly display the important data needed to evaluate the success of the program. Reports include member reporting (new and total memberships by plan), trip reporting (number of trips, trip length, and distance), location reporting (trip type, heat mapping, and direction requests), issue reporting (call center inquiries or incidents), and financial reporting (membership and usage revenue). Below is an example of an administrative dashboard that Truckee/Tahoe will be able to view at any time. OS/312013 09242013 685 Active Members ® Map 01I772014 OSl13/2014 09106/2014 Date 93 AF# More New Trips Total Trips 20070 18000 16000 14000 12000 10000 8000 6000 4000 2000 0 12/302014 04125/2015 08/19/2015 12/13/2015 ©2016Zagsterinc- [onfldentialandProprletaiy �, Zagster QUARTERLY REPORTS Additional reporting will be prepared by the dedicated CSM (Customer Success Manager) working with TTAD and shared with TTAD on a quarterly basis. The CSM will compile the system data in an easily digestible format and review the reporting details with the customer during each quarterly review call. The goal of the quarterly review is to use the data provided to highlight system strengths, identify system opportunities, and present recommendations to further improve upon the success of the system MEMBERSHIP UTILIZATION ADOPTION RIDER SUPPORT FLEET &FINANCIAL • Reach: Membership as a % of total targeted segment • Total number of Users during reporting period • Number of new Users enrolled during reporting period by membership type • Rentals per station, rentals per bike • Rentals by time period (time of day, week/weekend, month, quarter, etc) • Duration of rides • Conversion: First Rides as a % of total members • Adoption: Repeat ridership • % of tickets per rental • Ticket volume by issue category and by ticket channel • Ticket satisfaction rating • Rider NPS Scores • Voice of the Rider feedback • Maintenance frequency • Repairs /replacement within quarter • Rider Revenue n _ ��2016 Zabster Inc - Confidential and Proprietary �� ��� �� � l� � �� Zagster shares its data with customers for usage, planning and safety purposes via a web -based dashboard portal. This data is updated in real time and allows for critical insight into the performance of your program. r, cz: S p I as 'o a a A CL ° E 146th St E 146th St W 146th St a ; t � T d rD n N p W 141 st St o W 141 st St c y :E v � n 1 e rD 3 {� x l ",' O O a rD W 136th St r'o D W i,Iain S' .a; P E 131stSt E 131st yy Clay Middle , ,p E 126th St School PIUM Cr n — Golf COL 0 0 0 Hills L °o a ®1 f course Brookshire NorthWot ° Golf Club Hills E 116th St E 116ttt St - J � E 116th St o` y _ t' m of ho Crest o � L 3t p Crooked Stick °J °- Golf Club ,n St 1060h St E 10tF1'St E 106th St E 106th St a 31 Q 10 a � W c E 9901 St I {' t7 Ma FM` pr r�2016Zagsterinc- ConfidenrialandPreprietary �� Zagster SUGGESTED MEMBERSHIP & COST ���r rl"T MEMBERSHIP TYPES AND COSTS Based on our experience operating bike share programs at Zagster, we suggest the following membership structure: 24-Hour Pass $6 Monthly Membership $10 Annual Membership $40 Sponsor Membership Free RIDE STRUCTURE AND LIMITS Regardless of which plan a member chooses, Zagster recommends the following rider structure for all bike usage: First 60 minutes of usage Free Each additional 60 minutes of usage $3 Per Trip /Day Maximum $30 These program structures are recommendations and Zagster will work with TTAD to determine the optimal rider pricing structure for the bike share. RIDER REVENUE RECOVERY As a service, Zagster collects revenue from all riders and returns these revenues less a 7% processing charge to the sponsor. This means that with good ridership and a properly priced membership plan, many Zagster partners see financial return that helps to offset the cost of their bike share program on an ongoing basis. t�2o16 Zagster Inc - Confidential and Proprietary n w EXAMPLE COST SCHt:UU Below is an example cost schedule for the complete first -year term to the Truckee Tahoe Airport District, CA, for a 10-bike, 2-station program. The total amount of bikes may vary as we move further into our discussions. Bikes $1,800.00 10 $18,000.00 Annual expense, cruiser bike with sharing technology Extra Bike Parking Spaces $0.00 10 $0.00 Included Setup &Installation $0.00 2 $0.00 One Time Expense Theft &Vandalism Coverage $0.00 10 $0.00 Included Additional Insured -Primary/Non- $250.00 1 $250.00 Contributory - One time expense Cost for first year: $18,250.00 THIS PRICE INCLUDES: • Dedicated launch team &success manager • System planning consultation • Marketing consultation & material production • Bike delivery, setup &installation • Station sign production &station installation • Ongoing bike maintenance & parts replacement • Ongoing marketing & account support • Staffed phone & email support for riders • Access to analytic dashboards • Theft / Vandalism Coverage • Liability coverage for bikes & stations This price does not include any capital improvements which may be desired by program sponsors, such as concrete padding or shelter construction. The costs of these capital improvements may vary by location. This proposal is confidential and proprietarily prepared for the Truckee Tahoe Airport District, CA. For any questions you can contact me at anytime via phone or email. �ORDAN KLEIN SOUTHWEST SALES CONSULTANT - ZAGSTER Jordan@zagster.com 1 617.714.9717 's�_016 Zabster Inc -Confidential and Proprietary Zagster