Loading...
HomeMy WebLinkAbout2019-08-09; North Coastal Cities' Bikeshare Pilot Project Update; Gomez, PazTo the members of the: (-',SFl~OUNCIL Date ~ CA V CC ✓ CM ~ COO V DCM (3) V"" August 9, 2019 Council Memorandum To: Honorable Mayor Hall and Members of the City Council From: Paz Gomez, Deputy City Manager, Public Works Via: Elaine Lu key, Chief Operations Officer Re: North Coastal Cities' Bikeshare Pilot Project Update {cityof Carlsbad Memo ID# 2019091 This memorandum provides an update on the efforts of the cities of Encinitas, Solana Beach and Del Mar to launch the vendor Gotcha's bikeshare system as a pilot project. Background On May 7, 2019, staff presented to City Council an update on the efforts of the north coastal cities and other agencies, including San Diego Association of Governments (SAN DAG), to implement a multi-city bikeshare system. City Council decided not to participate in the bikeshare pilot project at that time, but requested that staff monitor the three other cities' activities during the pilot year and report back with data periodically. Discussion The vendor selected for the bikeshare system pilot project, Gotcha, has temporarily suspended the project's launch. Newly imposed tariffs have resulted in a breakdown in communications between Gotcha and its suppliers in China. SAN DAG and City of Encinitas staff informed city staff that the tariff issue has increased costs at several levels for parts destined for the United States. These changes have impacted the supply chain, the original schedule of equipment deliveries and system cost estimates, The City of Encinitas' Mayor Blakespear issued the following statement in her weekly newsletter: "China trade war hits Encinitas If you thought the trade war with China hadn't hit home yet, think again . This week I received some unsettling news -the exciting new bike share program that was supposed to be up and running this summer is suspended indefinitely because of tariffs on bicycle parts made in China. The City of Encinitas had chosen Gotcha, a "micro-mobility" company that was going to provide 300-400 bikes for the cities of Encinitas, Del Mar and Solana Beach, along with virtual and actual hubs and the technology to provide rentals and keep track of every bike. We chose this company in part because of their successful focus on customer Public Works Branch Faraday Center 1635 Faraday Ave I Carlsbad, CA 92008 I 760-602-2730 Honorable Mayor Hall and Members of the City Council Aug.9,2019 Page 2 service, high quality equipment and a clutter-free approach to managing public streets in other cities. Now because of the newly imposed tariffs and a resultant breakdown in communications between Gotcha and their suppliers in China, we're not sure when our bike share will roll out. It certainly won't be this summer. This is a major disappointment that is directly linked to the U.S. President's trade war. I'll keep you in the loop about further developments. An article about the trade war and its effects is here at CNN." Here is the link to the newsletter: http://catherineblakespear.com/8-4-19-tragedy-as-leucadia-bluff-collapses-and-china-trade- war-affects-encinitas/ Gotcha's leadership will be meeting with leadership of each of the three affected cities on Sept. 7, 2019, to provide more details. City of Encinitas staff indicated that they are continuing to work with Gotcha on necessary elements of the system roll-out, with the assumption that the launch will eventually occur. Next steps City staff will continue to monitor the progress of the Gotcha bikeshare system launch and report to City Council as needed. cc: Scott Chadwick, City Manager Celia Brewer, City Attorney Gary Barberio, Deputy City Manager, Community Services Debbie Fountain, Community & Economic Development Director Sean Haeri, Transportation Director Amanda Guy, Deputy City Attorney Christie Marcella, Economic Development Manager John Kim, Acting City Traffic Engineer 2