Item # Terms and Conditions for Bike Share Operations and Equipment
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1 Transportation Committee Item # Information August 30, 2016 Terms and Conditions for Bike Share Operations and Equipment Issue: Should SACOG award a contract to Social Bicycles for Regional Bike Share System Equipment and Operations? Recommendation: None, this is for information only. Discussion: On July 14, 2016, the SACOG Regional Bike Share Policy Steering Committee (PSC) and Project Management Teams (PMT) interviewed the top three bike share operators that submitted proposals: Bewegen, Next Bike, and Social Bicycles (SoBi). Firms who submitted proposals but were not interviewed include Bicycle Transit Systems, CycleHop, and Shift Transit. Bike Share PSC Members: Christopher Cabaldon, Mayor of West Sacramento Steve Hansen, City of Sacramento Councilmember Jeff Harris, City of Sacramento Councilmember Lucas Frerichs, City of Davis Councilmember Mike McKeever, SACOG Executive Director Larry Greene, SMAQMD APCO Bike Share PMT Staff: Judy Matsui-Drury, City of Sacramento Chris Dougherty, City of West Sacramento Jennifer Donofrio, City of Davis Jeffrey Damon, Sacramento Regional Transit District Tim Bustos, University of California, Davis Josh Neri, Sacramento State University As authorized by the SACOG Board, the Bike Share PSC unanimously recommended that the CEO enter contract negotiations with SoBi for a Regional Bike Share System Equipment and Operations. The PSC rated SoBi the highest in each evaluation criteria: Operator Capacity, System Elements, and Innovative Business Model. Overall, SoBi showed the Committee that they had the most prepared team to target the region s diverse planning and ridership needs, the most advanced Smart-Bike system that allows riders to check out and park bikes outside of docks if needed, and the most innovative business model. This model provides price incentives for users to rebalance the system which lowers operating costs, includes costs for recapitalization of the fleet, shares profits with SACOG, and provides opportunities to expand the bike fleet from 900 to 1200 bikes over 5 years with the ability to upgrade to pedal assist e-bikes in the future. SoBi gave a brief presentation to the Transportation Committee on August 4 th on their
2 Transportation Committee Page 2 proposed equipment and system operations approach (see Attachment A, Social Bicycles presentation ). Negotiations with Social Bicycles On July 25, SACOG s CEO and COO entered negotiations with Social Bicycles to draft key contract terms and conditions prior to requesting that the SACOG Board authorize the award of a contract. A key issue discussed during negotiations has been crafting contract incentives to reduce the risk that system operating costs would exceed fare box recovery, sponsorship revenues, and committed local agency funds. Other issues include service level agreements to ensure a high level of service and high customer satisfaction. In the interest of executing the contract quickly to avoid delaying the launch of the system beyond Spring 2017, SACOG and SoBi staff have been developing key terms and conditions that will inform the detailed drafting of the contract between SACOG and SoBi. Staff intends to continue negotiations and bring a detailed award recommendation to the Transportation Committee in October. Several business model options and term sheet issues were reviewed and recommended by the SACOG Bike Share PSC, which advised SACOG to pursue a business model option that reduces risk to public agency operating subsidies while balancing the risk to launch a system in a timely manner with sufficient projected revenues. SACOG staff will brief the Transportation Committee on the development of these business models and other negotiation issues. Developing Public Agency Agreements & Securing Sponsorships On July 28, SACOG met with various PSC and PMT members along with SoBi s CEO, Ryan Rzepecki, and discussed key intergovernmental and bike share operator issues. While SACOG will have an agreement with SoBi to operate the bike share system, SACOG needs agreements between public agencies to help plan, permit, and monitor the system to ensure a timely system launch, high customer satisfaction, and control costs. Toole Design Group consultants have informed these discussions based on best practices and lessons learned from many bike share systems across the country. Staff plans to further refine key intergovernmental and bike share operator issues with both Bike Share Committees to inform draft agreements over the next two months. SACOG did advertise a RFP for Sacramento Regional Bicycle Sharing System Advertising, Sponsorship, and Partnership, which could have resulted in a staff recommended sponsorship broker. SACOG is currently negotiating with SoBi to secure sponsorship development assistance as part of alternative business models prior to engaging other brokers. Approved by: Mike McKeever Chief Executive Officer MM:rh Attachment
3 Transportation Committee Page 3 Key Staff: Kirk Trost, Chief Operating Officer/General Counsel, (916) Matt Carpenter, Director of Transportation Services, (916) Sam Shelton, Senior Analyst, (916)
4 Attachment A
5 Smart Bike Vision Ryan Rzepecki CEO
6 Team SALES VEHICLES AND STATIONS SOFTWARE Ryan Rzepecki CEO Justin Wiley Head of Business Development Nick Foley Head of Industrial Design Marcin Pyla CTO LEGAL Avra van der Zee General Counsel, Co-COO Joanna Jacob Business Development Associate FINANCE Georgia Crowther Mechanical Engineer Michael Steiner Industrial Designer Seth Leaman Supply Chain Manager Michal Bil General Manager Tech Marcin Iracki Project Manager Kamil Nowak SW Engineer Jay Lee Associate Counsel Alan Ma Project / Launch Manager Mariusz Zajac Industrial Designer Krzysztof Gulcz SW Engineer FINANCE Claudio Barbosa Financial Controller Justin Fung Project Manager Mark Miretsky Project Manager ELECTRONICS Paweł Duleba FW Engineer Michał Rzechonek FW Engineer Sebastian Troć SW Engineer Andrzej Hudy SW Engineer OPERATIONS DESIGN Peter Van Oudenaren FW Engineer Damian Winiarczku SW Engineer Daniel Trevino Fleet Manager Jan Zmuda Senior Designer Marek Zajac FW Engineer Michał Puchala SW Engineer
7 Smart Bike Mobile payments and booking Transit Integration GPS tracking Low Cost Infrastructure Secure Out-of- Station Locking
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15 Planning and Implementation Experience 2013 HAILEY, ID40 SFO AIRPORT, CA40 BUFFALO, NY75 AUSTRALIA
16 Planning and Implementation Experience 2013 HAILEY, ID SAN RAMON, CA100 SFO AIRPORT, CA40 HENDERSON, NV20 BUFFALO, NY75 AMEX, NYC20 PHOENIX, AZ500 TAMPA, FL300 UVA, VA 120 AUSTRALIA
17 Planning and Implementation Experience LOS ANGELES, CA1200 BOISE, ID114 SFO AIRPORT, CA40 SAN RAMON, CA100 HAILEY, ID40 HENDERSON, NV20 TOPEKA, KS100 HAMILTON, ON, CANADA750 bikes BUFFALO, NY75 OTTAWA, ON CANADA300 AMEX, NYC20 LONG BEACH, NY100 MONASH UNIVERSITY100, MELBOURNE PHOENIX, AZ500 TAMPA, FL300 UVA, VA 120 ORLANDO, FL200 AUSTRALIA USF, FL100
18 Planning and Implementation Experience PORTLAND, OR1400 SFO AIRPORT, CA40 SAN MATEO, CA50 BOISE, ID114 SAN RAMON, CA100 HAILEY, ID40 HENDERSON, NV20 TOPEKA, KS100 HAMILTON, ON, CANADA750 bikes CLEVELAND, OH250 OTTAWA, ON CANADA300 BUFFALO, NY250 AMEX, NYC20 LONG BEACH, NY100 LOS ANGELES, CA1200 AUSTRALIA MONASH UNIVERSITY100, MELBOURNE PHOENIX, AZ850 ATLANTA, GA100 TAMPA, FL300 USF, FL100 UVA, VA 120 ST PETE, FL ORLANDO, FL200
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