September 19, 2023
Library and Community Services
DATE: September 19, 2023
TO: Mayor Martinez and Members of the City Council
FROM:
LaShonda White, Deputy City Manager, Community
Services
Denée Evans, Transportation Services Project Manager
Subject:
Sole-Source Contract with Charleston Mobility, LLC for
Electric Bikeshare Operations
FINANCIAL IMPACT: This project funding is being proposed for approval from the funds set aside via the City Council approved
Resolution for Transformative Communities and the FY
2023-24 Environmental and Community Investment
Agreement (ECIA) Transportation Budget and based on
the First Mile/Last Mile Transportation Strategic Plan
(11785051-400201-2A108).
PREVIOUS COUNCIL
ACTION:
June 4, 2019, July 20, 2021, and August 24, 2022
STATEMENT OF THE
ISSUE:
City Staff is requesting City Council approval to execute a sole-source contract with Charleston Mobility to continue operations for the expansion of the City of Richmond
electric bikeshare program.
RECOMMENDED ACTION:
APPROVE and APPROPRIATE $1,112,553.98 from the
allocated Environmental and Community Investment
Agreement (ECIA) Transportation grant fund to support
the citywide electric bikeshare program expansion, which includes a grant match to perform eBike share duties
related to the Richmond Rising Transformative Climate
Communities Grant; and APPROVE a sole-source
contract with Charleston Mobility LLC for bikeshare
program operations in an amount not to exceed
$2,162,857.18 (includes a five percent or $102,993.20
contingency for unforeseen expenses) and a contract
AGENDA
REPORT
September 19, 2023
term commencing September 19, 2023, through
September 19, 2028 – Community Services Department
(LaShonda White/ Denée Evans 510-621-1718).
DISCUSSION:
On July 18, 2018, the City of Richmond and the Metropolitan Transportation Commission (MTC) entered a grant funding agreement in the amount of $1,024,000 to fund the Bike Share Capital Program to plan and to operate a pilot electric bikeshare program with a contract expiration of December 31, 2022. The program was to fund a total of 250 electric bikes located amongst 25 bike hubs within an approved project area.
The goal of the Bike Share Capital Program was to expand bicycle access and use through bike sharing and to facilitate multimodal transportation in connection with transit and other regional bike share operators. The MTC funding was intended to help project sponsors with capital purchases and implementation costs, including outreach.
On June 15, 2020, and after experiencing some supply chain delays, the Richmond Transportation Department (the “Department”) successfully launched the electric bikeshare program.
In mid-June 2022, the bikeshare program accomplished nearly two years of uninterrupted bike share operations. Richmond received recognition as an innovative Micromobility leader, and the Department was preparing to request additional funds or to seek new grant funds to continue the bikeshare program beyond the MTC funding termination date of December 31, 2022. Unfortunately, in early July 2022, national news reports announced that Richmond’s bikeshare contractor, Bolt Mobility, had abruptly ceased operations within several markets leaving behind hundreds of locked bikes and hubs without notice. By mid-July 2022, and despite numerous failed efforts to contact Bolt, Richmond was one of the last markets to experience the lapse in service.
Bolt Mobility left approximately 60 bikes at various hubs throughout the city and defaulted on their local warehouse lease containing over 150 additional bikes (many in various states of disrepair) and hub equipment. After a public article issued by the former Richmond Mayor Butt, the City experienced a surge of local theft of approximately two dozen of the MTC grant-funded bikes that were left behind as well as experienced an additional burglary (which was reported to Richmond Police Department) from both the City Corporation Yard and a temporary City storage location of the recovered bikes.
September 19, 2023
Costly Emergency Contract Expenses and Program Relaunch Delays
On August 19, 2022, City Council approved an emergency bike share contract with sole-source provider Charleston Mobility who was committed to salvage the remaining eBike equipment and the ability to relaunch the program within a matter of months. The emergency eBike share plan was to accomplish several tasks related to fulfilling the bikeshare duties (Attachment 1) including the Richmond Rising Transformative Climate Communities Grant (TCC) commitments and relaunching the program. but limiting the total assets deployed to a maximum of 100 bikes to allow time to stabilize, repair, engage in growth plans, and measure the outcomes and effectiveness of the previous program.
Unfortunately, the bikeshare relaunch objectives have been impacted by a series of actions that were required to address the legal implications of the defaulted Bolt contract and to return the bike equipment to the City. Meanwhile several months of accrued expenses, and unforeseen equipment replacement costs has resulted in the fully expended emergency bikeshare contract amount of $345,000, and as of June 30, 2023, the expiration of that initial contract with Charleston Mobility.
There were monthly expenses to maintain the reprogrammed monthly network service subscription fees, bike insurance coverage, and funds were used to reconcile the several months of defaulted and unpaid Bolt warehouse lease fees. Additionally, the emergency funds were used to repair the bikes that the City was able to retrieve from the city bike hubs and to purchase batteries to operate the bikes.
However, another expense arised when the repaired bikes, replacement batteries, and new bikes were stored in two separate City property locations and both sites were targeted resulting in two incidents of theft of the new bikes, refurbished bikes, replacement parts, and batteries.
It is important to note that Charleston Mobility, LLC is not the cause nor are they responsible for the program relaunch delays. Despite the delays, Charleston Mobility continued to work on back-office relaunch tasks, equipment inventory documentation, bike rebranding, and replacement, and participated in numerous planning meetings for the TCC grant bikeshare implementation.
Electric Bikeshare Update
As of early June 2023, all the abandoned warehouse bikes have been accounted for and have been rebranded, repainted, and/or repaired as needed for the relaunch. The bikeshare APP has been updated and reprogrammed to accommodate the rates for both the citywide eBikeshare program and the TCC grant project area. While waiting for legal clearance to relaunch, Charleston Mobility has been meeting with Transportation and the project partners to update the TCC grant program budget, update bikeshare roles and responsibilities, and to finalize the project area eBikeshare service plan.
September 19, 2023
Utilizing the previous site assessments and community feedback remains the focus of the relaunch, as well as the deployment of the rebranded equipment to most of the previously successful bike hubs scheduled for a soft launch in October 2023. The launch will be followed by conducting additional community outreach and/or surveys to determine desired locations for new bike hub locations throughout the city.
Justification for Bikeshare Contract and Additional Fund Support
Additional services and related bikeshare activities are on hold as a result of the expiration of the emergency eBikeshare contract. The City and Charleston Mobility must have an executed service contract and receive approval from the Richmond City Council for additional funds to provide all eBikeshare related tasks for the next five years. This contract term will allow Charleston Mobility to fulfill the citywide expansion and TCC related tasks during the term of the grant as well as to ensure uninterrupted electric bikeshare service while Transportation staff and Charleston Mobility staff seek additional funds to sustain the program. It is anticipated that the eBikeshare program can be relaunched within six weeks or late October 2023 after contract execution.
Listed below is the proposed five-year budget overview for the eBikeshare program, which explains the funds and actions needed to operate a successful program.
Transportation staff are only requesting City Council approval to use ECIA funds to support the program.
September 19, 2023
Income Sources 5 Year Projections City of Richmond
ECIA Grant $ 1,000,000.00
ECIA Grant Match - TCC $ 112,553.98 Subtotal $ 1,112,553.98
TCC Grant
Planning $ 15,000.00
Outreach $ 170,600.00
Security $ 50,000.00
Hardware $ 212,550.00
Design and Installation $ 60,000.00 Maintenance $ 439,160.00
TCC Grant Subtotal $ 947,310.00
Sponsorship $ 630,000.00
Additional Grants $ 2,475,000.00
Projected Ridership
Revenue $ 220,941.70
Total Project Budget $ 5,385,805.68
Prior Transportation staff grant management experience and award success will be applied to ensure the success of the bikeshare program. Transportation staff intends to follow the success of the Richmond Moves shuttle program example to proactively seek funding opportunities to sustain eBikeshare in Richmond and within the region. The Richmond Transportation Department to date, has been awarded over seven million dollars from multiple funding agencies to ensure shuttle expansion and operations well beyond the initial grant term. Richmond was granted one million dollars of state funds (seed money) to create and to support two years of operational expenses for its first electric shuttle program with the requirement to seek additional funds to sustain the program beyond the grant term. With the funded shuttle expansion plans underway, it is fair to say that Richmond Moves has taken root.
Potential Municipal Collaborations and Hub Sponsorships
The City of Richmond has actively been in discussions with Charleston Mobility, as well as San Pablo and El Cerrito to seek future joint grant opportunities to collaborate on
September 19, 2023
leveraging Richmond’s eBikeshare program for expansion into their respective jurisdictions.
BART and the University of Berkeley Field Station have also expressed a strong interest in bike hub sponsorship as a first mile last mile transportation amenity for students and employees.
In conclusion, Transportation staff seeks City Council approval to appropriate a total of $1,112,553.98 from the allocated ECIA Transportation grant fund to support the citywide electric bikeshare program expansion, which includes a grant match in the amount of $112,553.98 (Attachment 4) to perform bikeshare duties related to the Richmond Rising Transformative Climate Communities Grant. Transportation staff also requests approval of a contract with Charleston Mobility, LLC for bikeshare program operations in an amount not to exceed $2,162,857.18 (includes a five percent or $102,993.20 contingency for unforeseen expenses) for a contract term commencing September 19, 2023, through September 19, 2028.
DOCUMENTS ATTACHED:
Attachment 1 – Charleston Mobility Emergency Bike Share Contract Attachment 2 – Charleston Mobility Bike Share Expansion Contract Attachment 3 – Resolution Transformative Climate Communities Grant Attachment 4 – Richmond Rising City of Richmond in-kind Leveraging Funding Commitment
Attachment 5 – Sole Source Form