2009-27142 ResoRESOLUTION NO. 2009-27142
A RESOLUTION OF THE MAYOR AND CITY COMMISSION APPROVING AND
AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE A CONCESSION
AGREEMENT BETWEEN THE CITY AND DECOBIKE, LLC, AS THE SUCCESSFUL
PROPOSER PURSUANT TO REQUEST FOR PROPOSALS (RFP) 44-07/08, FOR THE
IMPLEMENTATION, MANAGEMENT, AND OPERATION OF ASELF-SERVICE BICYCLE
SHARING PROGRAM; SAID AGREEMENT HAVING AN INITIAL TERM OF FIVE (5)
YEARS (COMMENCING ON THE OPERATIONAL ROLLOUT DATE, AS DEFINED IN
THE AGREEMENT) WITH A FIVE (5) YEAR RENEWAL TERM, TO BE EXERCISED AT
THE CITY'S SOLE OPTION AND DISCRETION.
WHEREAS, self-service bicycle sharing programs are revolutionizing the way
residents and tourists commute within cities in Europe and North America, and aself-service
bicycle sharing program with public access has been determined by the City to be a
desirable and valuable mode of alternative public transportation for the community; and
WHEREAS, aself-service bicycle sharing program serves as a great health benefit to
residents and tourists, alleviates parking and vehicular traffic congestion, and reduces
vehicle emissions and reliance on fossil fuels, serving as a vital and integral part of the
community; and
WHEREAS, aself-service bicycle sharing program will generate substantial revenues
for the City and create a variety of new jobs for locals; and
WHEREAS, on September 10, 2008, the City Commission authorized the issuance
of a Request for Proposals No. 44-07/08 to solicit proposals for the City-wide
implementation, management and operation of a self-service bicycle rental program
available to the public (the RFP); and
WHEREAS, the Mayor and City Commission, at its January 28, 2009, meeting,
passed and adopted Resolution No. 2009-26993, which accepted the recommendation of
the City Manager, pursuant to the RFP; and authorized the Administration to enter into
negotiations with Concessionaire as the top-ranked responsive proposer; and
WHEREAS, accordingly, the City and Concessionaire have negotiated the
attached Agreement for the implementation, management and operation of an exclusive
City-wide self-service bicycle sharing program.
NOW THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and
City Commission hereby approve and authorize the Mayor and City Clerk to execute
a Concession Agreement between the City and DecoBike, LLC, as the successful
proposer pursuant to Request for Proposals (RFP) 44-07/08, for the implementation,
management, and operation of a self-service bicycle sharing program; said
agreement having an initial term of five (5) years (commencing on the Operational
Rollout Date, as defined in the Agreement) with a five (5) year renewal term, to be
exercised at the City's sole option and discretion.
PASSED AND ADOPTED THIS 15th
ATTEST:
~ati~~
Robert Parcher
CITY CLERK
DAY OF July 2009.
M i erre a B wer
MAYOR
T:\P,GENDA\2009\July 15\Consent\RFP 44-07-08 Bike Sharing Concession Agreement - RESO.doc
APPROVED AS TO
FORM & LANGUAGE
& FOR EXECUTION
'~ r ',~ '~,- ~ - 6 °I
COMMISSION ITEM SUMMARY
(:nnrlwnsEtd Title
A Resolution of the Mayor and City Commission Approving All Material and Substantive Terms of the Agreement
between the Cityand DecoBike, LLC, as the Successful Proposer Pursuant to Request for Proposals (RFP) 44-07/08,
for the Implementation, Management, and Operation of aSelf-Service Bicycle Sharing Program; FurtherAuthoriang the
Mayor and City Clerk to Execute the Final Agreement; Said Agreement Having an Initial Term of Five (5) Years,
Commencing on the Operational Date and Ending Five (5) Years from the Operational Date, with a Five (5) Year
Renewal Term to be Exercised at the Citys Sole Option and Discretion.
Key Intended Outcome Sup orted:
Maintain or Im rove Traffic Flow
Supportin Data Surve s, Environmental Scan, etc.
Residents in the 2007 Community Satisfaction Surveycited traffic congestion as the second mostimportfactoraffecting
their ualit of life in the Cit .
Issue:
Shall the Cit Commission a rove the award of the contractor re'ect all bids?
item summary~rcecommenaai~on:
RFP No. 44-07/08 was issued on September 11, 2008, with an opening date of December 5, 2008. The Cityissued bid
notices to 86 prospective Proposers via a-mail, BidSync, and/or Bidnet, which resulted in the receiptofproposalsfrom B-
cycle, Deco Bike, LLC (DecoBike}, and Societe En Commandite Stationnement de Montreal (SCSM).
Following extensive discussion at its regular meeting on January 28, 2009, the Mayor and City Commission adopted
Resolution No. 2009-26993 authorizing the CityAdministration to enter into negotiationswith DecoBikeforan agreement
to manage and operate aself-service bicycle rental program.
From the original RFP discussion at the January2009 City Commission meeting, the qualityof and design ofequipment
(rental kiosk and bicycles), was identified as a key area to address. During negotiations, the vendor invested
approximately $700,000 in capital and significantly improved the bicycle qualityand aesthetic appeal of the rental kiosk.
The Transportation & Parking Committee (TPC) in its consideration asked that bicycle riding on Lincoln Road be
prohibited as part of the City Code. TPC and the Lincoln Road Merchants have expressed a concern for resident and
patron safety. While the Mayor's Blue Ribbon Bikeways Committee has expressed a similar concern for resident and
patron safety, they believe that a less than complete ban of bicycles might solve the problem and keep abike-friendlyfeel
for Lincoln Road. The Mayor's Blue Ribbon Bikeways Committee would support a requirement to walk bicycles in activity
periods as a potential situation. The Mayor's Blue Ribbon Bikeways Committee has agreed to meet with the Lincoln
Road Merchants to work on a mutually satisfactory solution to a real concern. Rather than have this issue, which likely
requires an ordinance change, at this City Commission meeting, it is suggested that the Administration facilitate a meeting
with the Lincoln Road Merchants and the Mayor's Blue Ribbon Bikeways Committee to develop a solution to present to
the City Commission at its next regular meeting.
Shared Revenues 25% on advertising revenues
^ 12% on gross revenues from $1 to $2,999,999
^ 15% on gross revenues over $3 million
^ Grace period on first $1 million gross revenues during first contract year
Bicycle and Kiosk Design The bicycle and kiosks were upgraded to be sturdier and more
aesthetically pleasing.
Program Scope & Launch Phase I: 500 Bikes -South Beach and parts of Middle Beach
^ Phase II: 400 Bikes -North Beach and parts of Middle Beach
Parking Spaces Approximately 50 parking spaces Citywide to be donated at a projected
average of $1,500 revenue loss per space annually
Payment & Performance Bond $100,000 Payment and Performance Bond
Advisory Board Recommendation:
Transportation & Parking Committee; Finance and Citywide Projects Committee; Mayor's Blue Ribbon Bikeways
Committee
Financial Information:
Source of Amount I Account Approved
Funds: I 1 N/A
OBPI Total
Financial Impact Summary:
City Clerk's Office Le islative Trackin
Robert Middau h Ext. 6163
I uepar~#lent Dire±~tor I Assia?~nt City Manaaer I City Manasyer
GL SF R _ PDW JMG
T:\AGENDA 9\July 151Consent\RFP 44-07/ e-Sharing Concession Agreement - SUMMARY.doc
i.~ ~ ~ ~~~ ~ AG Ells F'P,R iTENt ~_-
m MIAMIBEACH
City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachN.gov
COMMITTEE MEMORANDUM
TO: Mayor Matti Herrera Bower and Members of the City Commission
FROM: Jorge M. Gonzalez, City Manager
DATE: July 15, 2009
SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION APPROVING ALL
MATERIAL AND SUBSTANTIVE TERMS OF THE AGREEMENT BETWEEN THE
CITY AND DECOBIKE, LLC, AS THE SUCCESSFUL PROPOSER PURSUANT TO
REQUEST FOR PROPOSALS (RFP) 44-07/08, FOR THE IMPLEMENTATION,
MANAGEMENT, AND OPERATION OF ASELF-SERVICE BICYCLE SHARING
PROGRAM; FURTHER AUTHORIZING THE MAYOR AND CITY CLERK TO
EXECUTE THE FINAL AGREEMENT; SAID AGREEMENT HAVING AN INITIAL
TERM OF FIVE (5) YEARS, COMMENCING ON THE OPERATIONAL DATE AND
ENDING FIVE (5) YEARS FROM THE OPERATIONAL DATE, WITH A FIVE (5)
YEAR RENEWAL TERM, TO BE EXERCISED AT THE CITY'S SOLE OPTION AND
DISCRETION.
ADMINISTRATION RECOMMENDATION
Adopt the Resolution.
ANALYSIS
On June 25, 2008, the Mayor and City Commission approved the issuance of Request for Proposals
(RFP) No. 44-07/08 for aself-service bicycle-sharing program. The purpose of this RFP was to
identify a qualified firm to deliver and operate a citywide self-service bicycle rental program for public
use and stationed in the public right-of-way (ROW).
The selected Proposer will be required to implement a program, which should enable the public to
self-rent bicycles from any kiosk location and return them to another. Services would be provided by
the selected Proposer on a 24-hour, 365-day-a-year (full time) basis with sufficient personnel to
successfully operate the program.
The City's goals and objectives are to promote a vision to make bicycling an integral part of daily life
for Miami Beach residents and visitors. This program is to be accessible to the maximum number of
people in the most cost-efficient manner to increase bicycle and decrease local motor vehicle use.
Self-service bicycle rental programs provide a convenience for bicyclists since bicycles are available
on an as-needed basis. Bicycle tune-ups and storage are not necessary, and bike stations are
provided in strategic locations. Benefits to the City include reduced traffic congestion, improved air
quality, quieter and more livable streets, and the opportunity for citizens to improve their health
through exercise. It is anticipated that the bicycle system would also be integrated with other
Commission Memorandum -Concession Agreement Pursuant to RFP#44-07/08 For ASelf-
Service Bicycle Rental Program
July 15, 2009
Page 2
alternative modes of transportation, such as transit and car-sharing programs, and may promote
walking, since users can easily switch between these modes. The various travel modes will also be
coordinated with the City's various parking facilities. Aself-service bicycle-sharing program will
contribute to the City's effort to promote multi-modal transportation options, which will help to
facilitate mobility throughout the City.
RFP PROCESS
RFP No. 44-07/08 was issued on September 11, 2008, with an opening date of December 5, 2008.
The City issued bid notices to 86 prospective Proposers via a-mail, BidSync, and/or Bidnet, which
resulted in the receipt of proposals from B-cycle, Deco Bike, LLC (DecoBike), and Societe En
Commandite Stationnement de Montreal (SCSM).
SCSM was disqualified having failed to provide arevenue-sharing plan and evidence that it met the
minimum two (2) year requirement operating aself-service bicycle rental program. B-cycle was also
disqualified for failing to provide clear and consistent information regarding the expected financial
contributions by the City in its presentation to the Evaluation Committee.
Following extensive discussion at its regular meeting on January 28, 2009, the Mayor and City
Commission adopted Resolution No. 2009-26993 authorizing the City Administration to enter into
negotiations with DecoBike for an agreement to manage and operate aself-service bicycle rental
program with an emphasis on refining revenue sharing provisions, upgrading aesthetics of the
bicycle and kiosk, and outlining the scalability of the program.
CONTRACT NEGOTIATIONS
Following the City Commission's approval, the City and DecoBike held numerous sessions to
negotiate the following Concession Agreement (the Agreement), with a focus in the key areas
recommended by the Mayor and City Commission.
From the original RFP discussion at the January 2009 City Commission meeting, the quality of and
design of equipment (rental kiosk and bicycles), was identified as a key area to address. During
negotiations, the vendor agreed to add approximately $700,000 in capital and has significantly
improved the bicycle quality as well as the aesthetic appeal of the rental kiosk station. Subsequent
to the City Commission approval, the kiosk design must still be approved by the Historic
Preservation Board and the Design Review Board. The vendor has indicated a certain amount of
flexibility in the final design and is amenable to any color scheme and reasonable design elements,
such as the introduction of different shapes in design, to achieve a final product.
An added issue was the scope of the project and the necessary minimum number of bicycles to be
economically feasible. The vendor has undertaken both a market analysis to support the need and
market for bicycles, as well as a more detailed analysis of their pro forma to assess the project
scope. The vendor has indicated that a minimum of 500 bicycles in South Beach and portions of
Middle Beach is the critical mass for an economic program and an additional 400 bicycles to serve
North Beach and remaining portions of Middle Beach is necessary for a Citywide program. The
Agreement reflects the first 500 bicycles to be installed in South Beach and portions of Middle
Beach, and when successfully operating, the next 400 bicycles are to be introduced to North Beach
and remaining areas of Middle Beach. A maximum seven (7) month build-out for the first 500
bicycles is allowed and a shorted three (3) month build-out is anticipated for the remaining 400
bicycles. (see Attachment A)
Commission Memorandum -Concession Agreement Pursuant to RFP#44-07/08 For ASelf-
Service Bicycle Rental Program
July 15, 2009
Page 3
Based on the City Commission's concerns, the maximum number of bicycles in any kiosk has been
limited to sixteen (16), however the number of bicycles per kiosk shall vary on the location. This
change addresses the specific concern as to visual impacts. As a result, DecoBike proposes to
install 85 kiosks throughout the City to
On June 3, 2009, following a presentation by DecoBike, the Finance and Citywide Projects
Committee expressed support for the program, however, recommended the following points be
addressed through further negotiations:
^ Provide outlined exit strategy for DecoBike
• Provide the totals for DecoBike's lowest revenue projections (see Attachment B)
• Confirm the number of parking spaces to be provided and to minimize the amount of parking
spaces used
^ Require DecoBike to acquire a payment and performance bond equaling the amount of lost
revenues projected from the donated parking spaces
As a result of negotiations, the Administration addressed each of the points suggested by the
Finance and Citywide Projects Committee:
DecoBike must provide a $100,000 payment and performance bond.
Aside from the increased payment and performance bond, upon expiration, or earlier
termination of this Agreement, DecoBike shall surrender the Concession Areas in the same
condition as the Concession Areas were prior to the Commencement Date with reasonable
wear and tear excepted. DecoBike shall, at its sole expense and at no charge to the City,
remove all Equipment from the Areas, (as well as any other permanent or fixed
improvements if so requested by the City Manager or his designee) no later than sixty (60)
days after the conclusion of the Term, or from the date of other termination of this
Agreement (unless a longer time period is agreed to by the City Manager, in writing).
DecoBike's lowest revenue projections suggest that a total of $13,296,662 in gross
revenues can be collected from short and long-term subscriptions. This equates to
$1,199,599 in shared revenues to the City. In addition to the projected $825,000 in shared
advertising revenues, the City expects to receive (based on DecoBike's projections and the
negotiated shared revenues structure detailed in the table below) no less than $1,904,599
over five (5) years, or $380,919.80 annually.
The Administration confirmed that approximately fifty (50) spaces out of a total of 85 kiosks
will be needed Citywide to support this project. Each parking space is expected to have a
$1,500 average annual out of pocket expense to the City. Each surface area has been
projected to cost about $1,000 per space to install (the City assumes paver installation by
other more economical solutions such as concrete slabs or crushed shells). These costs
either in lost revenue or in surface preparation shall be offset and surpassed by income
generated by the program. Assuming surface expenses for the program not to exceed
$42,000 and parking revenue loss not to exceed $75,000, the bond requirement wiU cover
the City's potential exposure.
As part of the negotiations, the need for advertising was discussed. Advertising limited only to the
three (3) exterior bicycle basket panels (appropriately 8.5" x 11" each) was determined to be an
integral part of the revised pro forma for the vendor. The return to the City for this feature is 25% of
the gross, projected to be $825,000 over the first five (5) years of the concession. Advertising on
this limited basis was reviewed and supported by the TPC and the Finance and Citywide Projects
Committee. Approval of the Agreement as presented, includes the ability to advertise, as discussed,
Commission Memorandum -Concession Agreement Pursuant to RFP#44-07/08 For ASelf-
Service Bicycle Rental Program
July 15, 2009
Page 4
and will require the Administration to bring minor City Code clarification to the next City Commission
meeting for action.
The attached Agreement delineates the negotiated terms in key elements of the Agreement (see
Attachment B). The following outlines the Agreement's key terms:
Term Five (5) years with five (5) year renewal option exercised at City's sole
discretion.
Shared Revenues 2596 on advertising revenues
^ 1296 on gross revenues from $1 to $2,999,999
^ 1596 on gross revenues over $3 million
There is a grace period on the first $1 million in gross revenues during the first
contract ear.
Bicycle and Kiosk Design The bicycle and kiosks were upgraded to be sturdier and more aesthetically
pleasing. For example, the following changes have been implemented: (see
Attachment C)
Kiosk
• Upgraded, concealed solar panel system (only system with a non-
visible solar panel at street level)
• Locking tethers replaced with internal locking mechanisms
• Bicycle rack dividing forks removed for a streamlined appearance
• Color-matched, aluminum powder coated rack-raA
• City decides on colors for bikes, kiosks and rack-rails in the program
• A smaller kiosk footprint that would allow an 8-bike kiosk to fit inside a
typical City parking space
• At the request of the Transportation and Parking Committee, the
locking bar has been upgraded to brushed aluminum to prevent the
show of wear on the kiosks.
Bicycle
• Full size, 26" beach cruiser
• Upgraded, all aluminum frame for high-strength 8 light weight
• Custom low step-through design for ease of use
• Premium color-matched powder coat finish
• Front/Side/Rear self generating safety lights
• Comfortable and adjustable seat with locking feature
• Basket for convenient storage
• All arts & com onents rust and corrosion resistant
Kiosk Locations DecoBike proposed 106 citywide locations (subject to City approval) in
anticipation for 900 bicycles and 85 kiosks ultimately to be in circulation. (see
Attachment D
Program Scope & Launch Phase 1: 500 Bikes -South Beach and parts of Middle Beach
• Phase II: 400 Bikes -North Beach and parts of Middle Beach
Critical Mass is a minimum of 900 bikes too erate Ci ide.
Parking Spaces According to the Parking Department, approximately 50 parking spaces
overall in South, Middle, and North Beach respectively) would be necessary to
establish the program in several locations Citywide. A projected average of
$1 500 revenue loss er s ace annual) is ex acted.
Payment lli Performance At the request of the Finance and Citywide Projects Committee, DecoBike is
Bond required to submit a payment and performance bond for $100,000.
Commission Memorandum -Concession Agreement Pursuant to RFP#44-07/08 For ASelf-
Service Bicycle Rental Program
July 15, 2009
Page 5
The Transportation and Parking Committee (TPC) in its consideration asked that bicycle riding on
Lincoln Road be prohibited as part of the City Code. TPC and the Lincoln Road Merchants have
expressed a concern for resident and patron safety. While the Mayor's Blue Ribbon Bikeways
Committee has expressed a similar concem for resident and patron safety, they believe that a less
than complete ban of bicycles might solve the problem and keep abike-friendly feel for Lincoln
Road. The Mayor's Blue Ribbon Bikeways Committee would support a requirement to walk bicycles
in activity periods as a potential situation. The Mayor's Blue Ribbon Bikeways Committee has
agreed to meet with the Lincoln Road Merchants to work on a mutually satisfactory solution to a real
concern. Rather than have this issue, which likely requires an ordinance change, at this City
Commission meeting, it is suggested that the Administration facilitate a meeting with the Lincoln
Road Merchants and the Mayor's Blue Ribbon Bikeways Committee to develop a solution to present
to the City Commission at its next regular meeting. Overall, each group expressed their support for
the bike-sharing program and believed it can succeed in Miami Beach.
CONCLUSION
The attached Agreement represents the outcome of numerous negotiations sessions, as well as
one that improves upon DecoBike's original proposal and addresses the key areas discussed during
Commission deliberations.
Overall, this program serves to meet the City's goals and objectives of being environmentaUy-
conscious by promoting a vision to make bicycling an integral part of daily life for Miami Beach
residents and visitors. Benefits from this program will include reduced traffic congestion, improved
air quality, quieter and more livable streets, and the opportunity for citizens to improve their health
through exercise. This program is set to be the largest known bicycle-sharing program to date in the
United States.
It is recommended that a Resolution of the Mayor and City Commission of the City of Miami Beach,
Florida, approve all material and substantive terms of the Agreement between the City and
DecoBike, LLC, as the successful proposer pursuant to Request for Proposals No. 44-07/08, for the
implementation, management, and operation of aself-service bicycle sharing program; further
authorizing the Mayor and City Clerk to execute the Agreement having an initial term of five (5) years
commencing on the Operational Date and ending five (5) years from the Operational Date, with a
five (5) year renewal term to be exercised at the City's sole option and discretion.
Attachments
1. Attachment A -Proposed Rollout Timeline
2. Attachment B -Updated DecoBike Pro Forma
3. Attachment C -Concession Agreement
4. Attachment D -Bicycle and Kiosk Design Upgrades
5. Attachment E -Proposed Citywide Kiosk Locations
a
.0
v
m
E
p
E
N
11.1
C
m
m
0
c
v
U
m
0
U~
~ t
U
v
Y ~
m
o ~
U
o~
d
oc
Q
a
m
w
z
Q
U
w
',>
O
~-
U
O
f-
W
to
a
J
N
m
3
o ;~
Imo
m
~3a~
O^ 3
.- ...r o0
oov
o ~ o
a
.~ a n
Qc4
N
m m .~
^1v>U
v
c
•
•
w
~ ~
m 3 .-..
ro 3 ~N~
3 v
c~ m L m
~, L 3aa3
w_,
c ~ ~ v °~
~~ ~ a~
~
m U°
o ~
o
= o
a
~aE
~ -aDC c~ p
N ® 0 ~
~~' ~ ~ U
o
o °
m°a
a
m~
oE~
U oc
U mt
E
C `
y r y
m ~ C
~ G m
~
~~a. v,~Q
E
0
U
i~
H
SL
m
,i y 3
m m `~
33~v
~ N C C
-- v ~
c ap -~ O
O c m m
o ° m Z
m
m v
y U
~ L O O
.«- U >
~mUU
a
O
i~~.
N
Y
m
m~
3~m
~mm~
p3~
~-t~ O
ma. --o
vc~°~
d o y v
c
c o m o
~~'Ev
v v m m
E ~ ~, a
m cv~0
a
E
i~
m ~
~ o
~~
cv p
c
~ _O
O
o °'
~O
G m
m
Er
m~
a
E
m
0
~ a~
~ Q 0 ,,,
p~ C
~ U pt C 0
~~~ p 0
}
uY~y o
~a~~
-0D~ ~Z
w ~ 00
fC~no~eU
,`q~~$gB
~~~N~~~
~ wA~~E
+Za~o~K
~~
d~
.- a a u.
N ~ ~ G
C N ,P C
CO
0 v~$~~
h ~~d~r,
" ~ O
+ Z `~
~~
'-ahv>av
oc 88F
0 amh`~~
N ~
~~ri~or
+ Z oe
~a~
~ "' V/ V! V
c
d N ~ fl
v~a~
~v~~0
L ~~C
~~~8
E~~~
o ~~„
~f~~
0
U
..
gg $$g
~~ ~~~
~~ ~~~
y y N y
..
N
~g ~~~
~n ~~R
1~ C •-
n
oe
h
>NVlH
p p~ p
3000
~~~h
;f~N~
>NV
N
.g
a
u
u
00
h c
1~
O NNy
!t C
m
0
~~g
~~o
L m ~
a C
)U~
O M
u ~ ,~
N C
4
0
c~Z
o~~
8
3~~
0 0
~m~
c
~ o
`o `o
Z ~ n
3
b
3
,~ 9
g
.-o d d er~ a..
do ~d ~~ .-
4
Y Q ~
Y g n
Y ~ d
Y ~ v
Y
i~ 5 d b o i d i~
dm ~m ~.r d® ~.~
~
~ ~~ ~
~ ~~ ~~
E
0 ~ ~ ~ Q
QE
0
f o~c f arc f o`e f a°c ~ ac
0 0 0 0 0 0 0 0 0 0
x s x: s x a s s s
g-
} ~ r n
i ~ n ~g
} } .gg •
T a n
Attachment C -Concession Agreement