LTC CAR2GO termination of Agreement 2 0 2 g8 2sr
MIAMI BEACH
OFFICE OF THE CITY MANAGER
NO. LTC# LET ER TO COMMISSION
039-2016
TO: Mayor Philip Levine and Members (,f the City ommission
FROM: Jimmy L. Morales, City Manager 1,
DATE: January 28, 2016
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SUBJECT: CAR2GO TERMINATION OF AG EMENT
The purpose of this LTC is to advise the Mayor and City Commission that car2go, our car-sharing
service provider, is exercising their right to terminate their contract with the City. They have
provided the required thirty(30)day notice(see attached letter).and will cease operation in the
City effective March 1, 2016. Per contract specifications, car2go, which started operating in the
City on October 1, 2015, waives any claim to any portion of the total prepaid Program Cost.of
$219,542.40.
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In a recent meeting,car2go advised the City that despite growing CMB business,which they
previously had stated was 40%of their total South Florida business, they were not meeting the
revenue to make their operation successful. They cited Florida taxes and competition in the
transportation industry as two of the factors inhibiting their success. Car2go will also cease their
City of Miami operation.
This is CMB's second attempt at car sharing service.. A previous contract with Hertz was also
unsuccessful. Car2go was the only responder to the last solicitation. The Administration will
research other opportunities to provide car-sharing service in the City.
c: Kathie Brooks,Assistant City Manager
Mark Taxis,Assistant City Manager
Susanne Torriente, Assistant City Manager
John Woodruff, Budget Director
Eric Carpenter, Assistant City Manager/Public Works Director
Marcia Monserrat, Special Projects Coordinator
Nannette Rodriguez, Communications Director
Jose Gonzalez, Transportation Director
Saul Frances, Parking Director •
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January 26, 2016
Via Federal Express
Saul Frances
City of Miami Beach
1700 Convention Center Drive
Miami Beach, Florida 33139
RE: Car Share Program Agreement
Dated:September. 16, 2015
Dear Mr, Frances:
This letter is to inform you of car2go's intent to terminate the Car Share Program Agreement(the
"Agreement") between car2go N.A., LLC and the City of Miami Beach.
We regret to inform you that we are suspending our service in Miami Beach. Pursuant to section 2.d. of
the Agreement,we are providing thirty(30)days' notice of our intent to terminate the Agreement,and
such termination shall be effective as of March 1,2016.
You may contact me using the information below should you have any questions or concerns.
Best reg..rds,
ith
fyi Curtin
ineral Counsel
car2go N.A.LLC
DAIMLER 1717 West 6`h Street
A Daimler North America Company Suite 425
Austin,Texas 78703
512.428.6233 Phone
512.992.2709 Fax
www.car2go.com
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