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HomeMy WebLinkAboutMemo - Mail Packet - 6/9/2020 - Memorandum From Tessa Greegor, Amanda Mansfield And Aaron Iverson Re: Fort Collins Bike Share And E-Scooter Share UpdateFC Moves 281 North College Avenue P.O. Box 580 Fort Collins, CO 80522.0580 970.224.6058 970.221.6239 - fax fcgov.com/transportation Planning, Development & Transportation MEMORANDUM DATE: June 2, 2020 TO: Mayor Troxell and City Councilmembers THROUGH: Darin Atteberry, City Manager Kelly DiMartino, Deputy City Manager Caryn Champine, PDT Director Dean Klingner, PDT Deputy Director FROM: Tessa Greegor, FC Moves, Active Modes Manager Amanda Mansfield, FC Moves, Transportation Planner Aaron Iverson, FC Moves, Senior Manager RE: Fort Collins Bike Share and E-Scooter Share Update The purpose of this memo is to provide City Council with an update on the Fort Collins Bike Share and E-Scooter Share programs and upcoming program change details. Bottom Line: On May 27, 2020, Zagster (Bike Share operator) notified the City of its plans to end bike share services in Fort Collins (and throughout the country) due to the impact of COVID-19 on its business. The City released a Request for Information (RFI) this week and expects to launch a competitive RFP process for a new Bike Share operator later this year. Bird (E-Scooter Share operator) is expected to relaunch scooter operations this month following an amendment to its contracts with the City and its e-scooter share partner Colorado State University (CSU). Fort Collins Bike Share (Pace Bike Share / Zagster, Inc.) Overview and Update: • The Fort Collins Bike Share Program launched in 2016, with 16 stations and 79 bikes. The program operated through a contract between the City and a private vendor/operator, Zagster. This contract was set to expire in August 2020. In addition to the City’s sponsorship, several local businesses and organizations supported the program. • In 2018, Zagster rebranded the program as Pace and expanded the system to include 250 bikes and 42 public docking stations. The program experienced ridership growth annually, with a doubling of trips between 2018 and 2019. • In March 2020, Zagster notified the City if its need to scale back the bike share system to ensure the financial sustainability of the program. • On March 27, 2020, Zagster suspended bike share services due to COVID-19. • On May 27, 2020, Zagster informed the City and program partners that it will no longer be providing bike share services in Fort Collins due to the impact of COVID-19 on its business. It is Staff’s understanding that Zagster has terminated all its bike share programs throughout the country. • As 2020 marks 5 years since the inception of the bike share contract with Zagster, City staff in partnership with CSU had already planned to launch a competitive Request for Proposals (RFP) process to secure a new vendor/operator contract later this year. DocuSign Envelope ID: E4C42F1B-5D8F-4907-89AD-0EFADB386E16 Next Steps: • The City will work with Zagster and responsible companies to pursue sponsorship refunds for the remainder of the contract (through August 2020). • Zagster will be removing the bike share bikes and stations over the next couple of weeks. • Zagster and the City will continue to contact bike share members and program partners to provide information regarding the transition. • The City and CSU released a Request or Information (RFI) on June 1, 2020, to solicit information from potential bike share service providers interested in operating in Fort Collins. • The City and CSU expect to release an RFP in summer or fall 2020 to secure a new bike share program contract for Fort Collins, with an expected launch in 2021. Fort Collins E-Scooter Share Pilot Program (Bird) Overview and Update: • In partnership with CSU and e-scooter share provider Bird, the City of Fort Collins launched a 12-month e-scooter share pilot program on October 23, 2019. Prior to the launch, on March 19 and July 2, 2019, the Fort Collins City Council adopted code updates to develop a regulatory framework that would allow for greater control of e-scooter operation and parking behaviors. • After 5 months of operation, in response to COVID-19, Bird began scaling down its fleet on March 23 and paused all operations on March 27. By this time, there had been 51,293 rides ad 10,223 unique riders, occurring during an operational period defined by mostly poor weather. • In May 2020, Bird requested that the City and CSU consider amending the pilot program contract to allow for a change to the current fee structure and operational structure. Bird’s proposals are for a $0.20 per ride fee structure to replace the current quarterly payment structure, and a Fleet Manager operational model to replace the current hiring and operations model. Both proposals would lower overhead costs for Bird, and the proposed fee structure would result in roughly a 50% reduction in revenue for the City and CSU. Next Steps: • City and CSU staff are reviewing Bird’s proposed contract amendments. • The City expects Bird to relaunch their scooter services in June if the City, CSU and Bird agree on contract amendments. • Bird is expected to launch their latest and best model, Bird Two, in summer or fall 2020. This model is expected to address some of the issues the City has observed related to the Bird e- scooter GPS-response time in the downtown dismount zone. How well the Bird Two addresses this issue will be a factor in whether the City decides to continue its partnership with Bird. • The City and CSU are considering the future of their partnership with Bird and will come before Council prior to the end of the pilot program (either August 25 or November 24) for input on successes, challenges and next steps. Next steps being considered include an extension of the pilot through the end of 2020, a contract renewal with Bird, or pursuit of a partnership with a new e-scooter share provider via an RFP process. • If City and CSU staff decide to pursue a partnership with a new e-scooter share provider, a modification to the Bike Share Program RFP to appeal to vendors who provide both e-scooter share and bike share services will be considered. For questions, please contact Tessa Greegor (tgreegor@fcgov.com) or Amanda Mansfield (amansfield@fcgov.com). DocuSign Envelope ID: E4C42F1B-5D8F-4907-89AD-0EFADB386E16