HomeMy WebLinkAbout2019-08-09; North Coastal Cities' Bikeshare Pilot Project Update; Gomez, PazTo the members of the:
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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
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