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10062026-Unfinished Business-20-staff report

Long Beach City Council
October 6, 2026

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10062026-Unfinished Business-20-staff report
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October 6, 2026
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Long Beach City Council
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20 September 22, 2026
Honorable Mayor and City Council
City of Long Beach
California
RECOMMENDATION:

Recommendation to adopt Specifications No. RFP PW-25-631 and award a contract to Drop Mobility, California LLC, of San Francisco, CA, for operation, maintenance, and modernization of the City of Long Beach’s BikeShare program, in the amount of $23,346,518, authorize a 10 percent contingency in the amount of $2,334,652 for a total contract amount not to exceed $25,681,170, for a period of three years, with the option to renew for two additional one-year periods; and, authorize the City Manager, or designee, to execute all documents necessary to enter into the contract, including any necessary subsequent amendments. (Citywide)

DISCUSSION
City Council approval is requested to enter into a contract with Drop Mobility California LLC (Drop) for the operation, maintenance, and modernization of the City of Long Beach’s (City) BikeShare program (Program). This includes the deployment and daily management of a Cityowned fleet of Class 1 pedal-assist electric bicycles, conversion of the City’s existing pedal bicycle fleet to the new software platform, installation and operation of charging docks/hubs, battery swapping operations, fleet inspection, preventative maintenance, scheduled rebalancing, and customer service coverage seven days per week. The Program transitions the City’s bikeshare system from a pedal-only fleet to a modern electric fleet while retaining City ownership of all bicycles, stations, and equipment.

In 2025, the existing pedal bicycle fleet recorded more than 79,000 rentals, demonstrating sustained demand for short-trip and first- and last-mile connections. Pedal-assist electric bicycles will extend that service to longer trips and a broader range of riders while advancing the goals of the City’s Climate Action Plan and Bicycle Master Plan. The current fleet consists of approximately 480 beach cruiser bicycles in working condition, with an additional 250 bicycles requiring maintenance before returning to service. The system currently operates without electric bicycles or charging infrastructure.

Contractor Selection
The Request for Proposals (RFP) was advertised in the Long Beach Press-Telegram on December 16, 2025, and 119 potential proposers specializing in bikeshare program management, including system operations, maintenance, fleet electrification, retrofit solutions, hub infrastructure, equity programming, data reporting, staffing, and costs were notified of the RFP opportunity. Of those proposers, 39 downloaded the RFP via the City’s electronic bid Public Works
411 West Ocean Boulevard, 5th Floor, Long Beach, CA 90802 (562) 570-6383
Honorable Mayor and City Council
September 22, 2026

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system. The RFP document was made available from the Procurement Services Division, located on the sixth floor of City Hall, and the Division’s website at www.longbeach.gov/purchasing. An RFP announcement was also included in the Procurement Services Division’s weekly update of Open Bid Opportunities, which is sent to 44 local, minorityowned, and women-owned business groups. There were 4 proposals received on March 3, 2026. Of those 4 proposers, 1 was a Minority-owned Business Enterprise (MBE), none were Women-owned Business Enterprises (WBEs), 2 were certified Small Business Enterprises (SBEs), and 1 was a Long Beach vendor (Local). After a thorough review and evaluation process by a multi-departmental panel consisting of reference checks, written proposals, and presentations, the selection committee determined that Drop (not a MBE, WBE, SBE, or Local) was the most qualified firm to provide the services.

Under the contract, Drop will deploy 700 Class 1 pedal-assist electric bicycles in the first year of the contract, convert 150 of the City’s existing pedal bicycles to the new software platform, and expand station hubs across the City. Each vehicle in the fleet will be internet-connected, GPStracked, and equipped with a UL-certified swappable battery. All bicycles will lock to docks and physical infrastructure, providing the system with security and organization while preserving parking flexibility for riders.

System expansion will be phased across the second and third years of the contract allowing the ability to grow the system to 2,000 electric bicycles and 500 retrofit converted bicycles supported by 1,600 charging docks and 530 station hubs providing 6,410 designated parking spaces, positioning the program to meet increased demand associated with the 2028 Olympic and Paralympic Games.

Drop’s proposal includes a locally staffed operating model, including regional leadership based in Long Beach, a bike servicing and rebalancing warehouse within the City, and dedicated field, warehouse, and customer service staff, supported by a technology platform providing geofenced stations, real-time fleet telemetry, compliance reporting, and ridership analytics. The proposal supports the City’s Bike Share for All equity program and non-digital and unbanked payment options, ensuring the modernized system remains accessible to residents enrolled in state and federal assistance programs.

This contract modernizes how the City delivers bikeshare service, replacing an aging pedal-only fleet with a connected electric system while retaining City ownership of the bicycle infrastructure and assets. Under the new contract, the City will deploy ebikes, as well as retrofit existing bicycles to prolong their useful life. Consolidated operations and software provide the Department with data to track fleet performance, ridership, and costs through reporting and analytics.

Local Business Outreach
To align with the City’s outreach goal, Long Beach businesses are encouraged to submit proposals for City contracts. The Procurement Services Division also assists businesses with registering on the Long Beach Buys platform to download RFP specifications. Through outreach, 9 Long Beach vendors were notified to submit proposals, of which 3 downloaded and 1 submitted a proposal. The Procurement Services Division is committed to continuing to perform outreach Honorable Mayor and City Council
September 22, 2026

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to local vendors to expand the proposer pool.

This matter was reviewed by Deputy City Attorney Vanessa S. Ibarra on September 3, 2026, Procurement Analyst Tommy Ryan on August 27, 2026, and Budget Management Officer Nader Kaamoush on September 3, 2026.

SUSTAINABILITY
The contract provides a renewed focus on alternative means of transportation aligned with the City’s sustainability goals. The City’s BikeShare program provides reliable public transit and helps reduce vehicle miles traveled within Long Beach. The expanded parking locations will be placed on streets adjacent to intersections in conjunction with the state’s Daylighting Law (AB 413) keeping corners and crosswalks clear of parked vehicles improving visibility and creating safer infrastructure for cyclists and pedestrians to cross intersections.

TIMING CONSIDERATIONS
City Council action to adopt Specifications No. RFP PW-25-631 and award a contract concurrently is requested on September 22, 2026, to ensure the contract is fully executed by the estimated service commencement date of January 1, 2027.

FISCAL IMPACT
The total amount of the contract will not exceed $25,681,170, inclusive of a 10 percent contingency. Proposition A currently appropriated in the Capital Project Fund Group in the Public Works Department will fund the Year 1 Capital Investment of $2,918,750. The Public Works Department has applied for a $5,136,000 grant from the California Transportation Commission – Active Transportation Program (ATP) – Cycle 8 for the expansion of the BikeShare program.

If awarded, the grant will cover Year 2 and 3 Capital Investments. The remaining $1,780,250 necessary for years two and three one-time capital investment will be covered by future years’ Proposition A through the annual CIP budget process. Staff will return to City Council to request grant appropriation if the grant is awarded.

Contract Item Amount Not to
Exceed Notes
Year 1 Capital Investments $2,918,750
Electric Bicycles, Parking Hubs
and Wayfinding Signage
(System Expansion)
Year 2 and 3 Capital Investments $6,916,250 Additional System Expansion Operations and Maintenance (O&M) $13,511,518 O&M for 3-year term 10 percent Contingency $2,334,652
Total Contract Amount Not to Exceed: $25,681,170
The City currently receives approximately $2.9 million annually in Proposition A funding to support the BikeShare Program, including vendor operations and City staffing. The new contract includes a not-to-exceed O&M amount of $13.5 million over three years. This amount represents Honorable Mayor and City Council
September 22, 2026

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the maximum authorized reimbursement for eligible O&M expenses and is not an annual guaranteed payment to the vendor. Rather, the vendor will submit invoices for variable costs and be reimbursed so City staff can ensure scaling up is done within budget.

The City and Drop anticipate that the transition from the existing pedal-only system to a larger electric bikeshare fleet will increase ridership and program revenue. The current program generated $210,615 in revenue in 2025 and $141,145 from January through July 2026. Based on Drop’s experience transitioning bikeshare systems to electric bicycles, the vendor projects that Long Beach could experience up to a 500 percent increase in ridership by year 3 if the City operates the full fleet size available through the contract. This anticipated increase in ridership is expected to generate additional program revenue, which will be used to offset the cost of ongoing O&M under the new contract. If revenue does not cover eligible O&M expenses, the remaining costs will be paid with Proposition A funds appropriated through the annual budget process. If revenue exceeds eligible O&M expenses, the remaining revenue will be remitted to the City.

The Public Works Department will continue to oversee contract expenditures and system expansion to ensure expenditures remain within appropriated funding and the authorized contract amount. This recommendation has no staffing impact beyond the normal budgeted scope of duties and is consistent with existing City Council priorities. This recommendation is expected to have a positive impact on local jobs.

SUGGESTED ACTION:

Approve recommendation.

Respectfully submitted,
Joshua Hickman
Director
Public Works

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