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HomeMy WebLinkAbout2024-08-22; Carlsbad Good Ride Update (Districts - All); Rocha, LauraTo the members of the: CITY COUN CIL Date ~ l22124cA ✓ cc ✓ CM_~✓ocM (3)V Council Memorandum August 22, 2024 To: From: Via: Subject: Honorable Mayor Blackburn and Members of the City Council Laura Rocha, Deputy City Manager, Administrative Services Matt Sanford, Economic Development Wier Geoff Patnoe, Assistant City Manager bf Carlsbad Good Ride Update (Districts -A I) {city of Carlsbad Memo ID# 2024065 This memorandum provides information regarding the Carlsbad "Good Ride" visitor transportation program that was piloted beginning September 1, 2023, and is set to conclude on August 31, 2024. Background In response to feedback that a common challenge for visitors in Carlsbad is getting to different attractions without having to rent a car or hire a ride-share service, like Uber or Lyft, the Carlsbad Tourism Business Improvement District (89 Act) Advisory Board {Board) conducted research into potential solutions that would enhance visitor mobility without increasing traffic. In its fiscal year 2022-23 Operating Budget, the Board allocated $1 million for a visitor transportation services grant to fund a pilot program for one year. The grant was designed to fund a program that efficiently moved hotel guests between hotel properties and popular destinations around the city. Because the funds were approved at the same time as the conversion of the Carlsbad Tourism Business Improvement District (CTBID) to a new operating structure, the funds were granted to Visit Carlsbad to manage the program. Visit Carlsbad contracted Circuit Transit Inc. (Circuit) to stand up and execute the destination transportation services pilot program. Visit Carlsbad found that Circuit's proposal for transportation services offered several key benefits: • Flexible and Efficient Service: Circuit's electric vehicles could transport visitors to various key locations via flexible routes, meaning the routes could be the most efficient means to get to a destination while still maximizing ridership. The destinations themselves were adaptable and could be altered as needed, allowing for the addition or removal of stops during major events. Furthermore, Circuit could adjust the number of vehicles in operation during peak months and weekends, while scaling back or Administrative Services Branch Economic Development Department 1635 Faraday Avenue I Carlsbad, CA 92008-7314 I 442-339-5987 t Council Memo -Carlsbad Good Ride Update August 22, 2024 Page 2 eliminating service during periods of low or no demand. This flexibility ensured efficient use of funds and availability of transportation when visitors needed it most. The program could also be built to include points of origin or destination as a hotel or lodging establishment, ensuring the program was primarily used by lodging guests. • Consistent Branding and Visitor Experience: Circuit offered program branding on the exterior of their vehicles, creating a cohesive look and feel that aligned with the city's branding. This feature enhanced a sense of place and minimized confusion for visitors. • Environmental Sustainability: Circuit's all-electric fleet supported the city's goals to reduce greenhouse gas emissions. The shared shuttle system also decreased vehicle miles traveled in comparison to single-vehicle rides, further promoting sustainability. • High-quality service and Knowledgeable Staff: Drivers worked directly for Circuit and were not independent contractors. This ensured a high standard of service and well- informed drivers. It also meant that visitors using the program would experience reliable customer service. • Data-driven Adaptability and Performance Assessment: Since no ridership data existed for this type of transit program in Carlsbad, Circuit proposed to work with Visit Carlsbad to provide data that could be used to adjust the program in real-time. This collaboration would allow for service expansion and contraction based on demand at different times of the year, helping Visit Carlsbad establish a performance baseline. Circuit began operating the Carlsbad Good Ride on September 1, 2023. Discussion Pilot Program Performance When the program launched, it generated 17 media placements, including Yahoo News, Smart Meetings and the San Diego Business Journal. This yielded 83.6 million impressions and showed that Carlsbad was working to become more accessible to visitors. To accommodate the seasonal nature of tourism in Carlsbad, vehicles were allocated according to monthly average occupancies and designated high, medium and low seasons : • High: (April -August): 9 vehicles, 7 days per week • Medium (March, September, October): 5 Vehicles, 5 days per week • Low (January, February, November, December): 3 vehicles, 5 days per week The top destinations of the program were: • Carlsbad Village • LEGOLAND California Resort Council Memo -Carlsbad Good Ride Update August 22, 2024 Page 3 • Hilton Garden Inn • Cape Rey • Cassara • MarBrisa • Carlsbad Outlets Between September 1, 2023, and July 30, 2024, there were 9,820 rides with a total of 21,097 individual riders. This worked out to be a cost per ride of $86 and a cost per individual rider of $40. For reference, the average fare for shared ride services, like Uber or Lyft, that began and ended in Carlsbad over the last 12 months was $26. While the program provided a valuable service for visitors to Carlsbad, the cost per rider was not cost-effective. Ridership data showed significant differences in overall usage between low and high seasons, with higher ridership in the spring and summer months. The cost of keeping vehicles in service during lower usage months in the Fall and Winter contributed to the high cost per ride. Because of these factors, at its August 6, 2024, meeting, the Visit Carlsbad Board of Directors voted to not extend the pilot program. The last day Carlsbad visitors can use the service will be August 31, 2024. Next steps The Visit Carlsbad Board provided direction to the organization's staff to evaluate alternate service models that are more cost-effective, as they did see the value of moving visitors around the city. Visit Carlsbad will be considering proposals from providers at their September or October meetings. Should they decide to fund an alternative service, it is likely to be up and running ahead of the 2025 high season. Staff will continue to support Visit Carlsbad in their pursuit of an effective visitor transportation program. Should a program be reactivated, staff will also continue to evaluate opportunities to connect the service with other flexible fleet and regional mobility solutions. cc: Scott Chadwick., City Manager Cindie McMahon, City Attorney Paz Gomez, Deputy City Manager, Public Works Gary Barberio, Deputy City Manager, Community Services Tom Frank, Transportation Director Nathan Schmidt, Transportation Planning and Mobility Manager Kristina Ray, Communications and Engagement Director Rachel Maltz, Economic Development Program Manager