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Home My WebLink About2020-10-15; North Coastal Cities' Bikeshare Pilot Project Update; Gomez, PazTo the members of the: CITY COUNCIL Date 10/, sh~cA _.::L cc .L CM ✓ ACM ✓ DCM (3) .,/ --- Oct. 15, 2020 Council Memorandum To: From: Honorable Mayor Hall and Members of the City Council Paz Gomez, Deputy City Ma~ager, Pub~orks Via: Re: Geoff Patnoe, Assistant City Manager ~ North Coastal Cities' Bikeshare Pilot Project Update {cityof Carlsbad Memo ID #2020224 This memorandum provides an update on the north coastal cities' regional partnership (partnership) in which the Cities of Encinitas, Solana Beach and Del Mar planned to launch an electric bikeshare system. as a pilot project, which was discussed in Council Memo ID# 2019091 dated Aug. 9, 2019 (Attachment A). Background On May 7, ·2019, staff presented to City Council an update on the efforts of north coastal·cities and other agencies, including the Cities of Carlsbad, Oceanside, Encinitas, Solana Beach and Del Mar; North County Transit District (NCTD); San Diego Association of Governments (SAN DAG); and Marine Corps Base Camp Pendleton, to implement a multi-agency electric bikeshare system, City Council decided not to participate in the bikes hare pilot project at that time but requested that staff monitor the three cities' activities during the pilot year and report back with data periodically. The three cities that decided to participate in the pilot project are ~he Cities of Encinitas, Solana Beach and Del Mar. The City of Oceanside also declined to participate in the pilot project but indicate_d they would reconsider their decision after reviewing the first-year results. Marine Corps Base Camp Pendleton, NCTD and SAN DAG remained involved _in ·reviewing the progress · of the three cities but did not sign the bikeshare pilot project contract. · Discussion The vendor selected for the bikeshare system pilot project, Gotcha, recently informed the three north coastal cities that they are unable to fulfill the partnership's order of 500 electric bicycles (e-bikes) due to newly imposed tariffs placed on Chinese imports and shipping disruptions due to the COVID-19 pandemic. The combination of these various factors has resulted in severe impacts to Gotcha's finances and disruptions in the manufacturing supply chain. Accordingly, the current contract with Gotcha will be terminated due to their inability to fulfill the partnership's order. The Cities of Encinitas, Del Mar and Solana Beach have indicated that they will continue to pursue implementation of a bikeshare program in North County. The partnership is currently Public Works Branch Transportation Department 1635 Faraday Ave I Carlsbad, CA 92008 I 760-l;i02-2730t Council Memo -North Coastal Cities' Bikeshare Pilot Project Update· Oct. 15, 2020 Page 2 worki_ng with SAN DAG to contact the other bikeshare vendors that had previously submitted responses to the program's original request for information (RFI) to determine if the order for 500 e-bikes can be fulfilled by a new vendor. Next steps City staff will continue discussions with the other north coastal cities to receive updates regarding the future of bikeshare in North County and will report to City Council as needed. Attachment: A. Council Memo ID# 2019091 dated Aug. 9, 2019 cc: Scott Chadwick, City Manager Celia Brewer, City Attorney Gary Barberio, Deputy City Manager, Community Services Laura Rocha, Deputy City Manager, Administrative Services David Graham, Chief lnnovatio'n Officer Neil Gallucci, Police Chief Robby Contreras, Assistant City Attorney Jeff Murphy, Community Development Director Tom Frank, Transportation Director Nathan Schmidt, Transportation Planning and Mobility Manager 2 To the members of the: (-') Fl11'. ~OUNCIL Date ~ CA ✓ CC ✓ CM .-./'COO 1./DCM {3)✓ August 9, 2019 ATTACHMENT A Council Memorandum To: Honorable Mayor Hall and Members of the City Council From: Paz Gomez, Deputy City Manager, Public Works Via: Elaine Lukey, 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 pres~nted 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 C~ina. SAN DAG and City of Encinitas staff informed city staff that the tariff issue has in~reased 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 successfuJ 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 qual\ty 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 tr~de war and its effects is here at CNN." Here is the link to the newsletter: http:ljcatherineblakespear.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 citi,es 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