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Resolution 2018-30194 RESOLUTION NO. 2018-30194 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, TERMINATING THE CITY'S WATER TAXI PILOT PROGRAM. WHEREAS, on April 30, 2016, the City Commission adopted Resolution No. 2016- 29370 approving a water taxi pilot program (pursuant to ITN No. 2014-326-JR) with Water Taxi Miami, Inc. (Concessionaire) for a term of one (1) year serving the Purdy Avenue Dock, Sea Isle Marina, Bayside Marketplace, and Miami Beach Marina; and WHEREAS, pursuant to ITN specifications, and its Concession Agreement with the City, the water taxi service operated at no cost to the City Friday through Sunday of every week, subject to weather conditions; and WHEREAS, the limited days and hours of operation, service frequency, and fare structure were established by the Concessionaire and approved by the City Commission; and WHEREAS, the limited pilot service was proffered by the Concessionaire as a means to test the service and build ridership in advance of a permanent commuter-based service; and WHEREAS, the total number of passengers boarding at Purdy Avenue Dock as part of the Water Taxi Pilot Program from December 30, 2016 to September 30, 2017 was 144 passengers; and WHEREAS, periodic site inspections conducted by Transportation Department staff determined that the Concessionaire was in violation of various terms of the Concession Agreement, including compliance with the type of vessels, on-site monitoring, and schedule; and WHEREAS, a Contractor Incident Report was issued to the Concessionaire on July 7, 2017; and, subsequently, given the Concessionaire remained non-compliant with the terms of the Concession Agreement, a Contractor Notice of Violation was issued to the Concessionaire on August 30, 2017; and WHEREAS, on October 27, 2017, the Neighborhood/Community Affairs Committee (NCAC) discussed the Water Taxi Pilot Program and whether or not to extend the City's Concession Agreement with the Concessionaire, Water Tax Miami, Inc., for a one-year pilot program, which was to expire on November 29, 2017; and WHEREAS, at its October 27, 2017 meeting, the NCAC recommended extending the Concession Agreement with the Concessionaire for one (1) month in order to enable water taxi service during Art Basel; and, further, the NCAC recommended that staff return to the NCAC in December, 2017 with alternative options for the operation of a successful waterborne transportation service in the City; and WHEREAS, at its meeting on October 31, 2017, the City Commission discussed the Water Taxi Pilot Program, and approved a one (1) month extension of the Concession Agreement until December 30, 2017, enabling the continuation of water taxi service during Art Basel 2017; and waived the on-site monitoring requirement during the extension period; and WHEREAS, the Art Basel Water Taxi Plan of Operation was approved by the City Manager and consisted of one (1) day of operation (Thursday, December 7) in addition to the regular days of water taxi pilot service (Friday, Saturday, and Sunday) during Art Basel; and WHEREAS, based on information provided by the Concessionaire, no passengers boarded at Purdy Avenue Dock during this four (4) day period; and WHEREAS, during the one (1) year pilot program, the water taxi service used one of the City's existing docks at Purdy Dock for its operation; and WHEREAS, the City allocated funding in FY 2016/17 for the design and construction of a dock for motorized vessels and a kayak launch at Purdy Avenue Dock; and WHEREAS, the City's Concession Agreement with the Concessionaire, Water Taxi Miami, Inc., for a one (1) year pilot program expired on December 30, 2017; and WHEREAS, given the City's goal to provide mobility options, including a successful commuter-based waterborne transportation service, Transportation Department staff conducted some research and contacted various water taxi operators in the region and throughout the country to identify elements that are essential in providing a successful waterborne transportation service, such as an operating subsidy, advertising on-board the vessels, and passenger/dock amenities; and WHEREAS, pursuant to the NCAC's recommendation at its October 27, 2017 meeting, City staff developed various options for moving forward with water taxi service in Miami Beach that were presented and discussed by the NCAC at its meeting on December 20, 2017, which included the following options: 1. Entering into a new agreement with the initial Concessionaire on a pilot basis terminable at the City's sole discretion. 2. Issuing a new competitive solicitation for commuter-based public waterborne transportation services at no cost to the City. 3. Issuing a new competitive solicitation for commuter-based public waterborne transportation service with a City subsidy. 4. Partnering with Miami-Dade County as part of a potential future regional water taxi service; and WHEREAS, at the December 20, 2017 NCAC meeting, after some discussion on the above options, the NCAC made a motion to recommend suspending the water taxi pilot program, which pilot program would expire on December 30, 2017; and WHEREAS, at the same meeting, the NCAC recommended a competitive bid process which would also be open to allow for alternative ways of reducing the operating costs of the service by including the possibility of advertising on the vessels; and WHEREAS, furthermore, the NCAC recommended reaching out to the City of Miami in an effort to undertake future water taxi service collaboratively; and WHEREAS, while some of the NCAC members were open to the possibility of subsidizing a waterborne transportation service, the general consensus among the NCAC members was that a decision as to whether or not the City should provide a subsidy would depend on the outcome of the conversations with the City of Miami regarding a potential collaboration with the City of Miami Beach to provide these services as a mobility option between the two cities; and WHEREAS, at its February 14, 2018 meeting, and after discussion, the City Commission passed a motion to terminate the City's water taxi program, which pilot program expired on December 30, 2017. NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND THE CITY COMMISSION OF THE CITY OF MIAMI BEACH, that the Mayor and City Commission hereby terminate the City's water taxi pilot program. PASSED AND ADOPTED this /y day of February, 2018. ATTEST: P.. I 7 47 an Gelber, Mayor . *!.INCORP ORATED:* Rafael . Granado, City lerk Ay N... APPROVED AS TO FORM & LANGUAGE rAGENDA\2018‘02 February\Transportation\Water Taxi Reso v3 deco &FOR EXECUTION �(A'- jCityAttorney1 Date Resolutions - R7 I MIAMI BEACH COMMISSION MEMORANDUM TO: Honorable Mayor and Members of the City Commission FROM: Jimmy L. Morales, City Manager DATE: February 14, 2018 SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE NEIGHBORHOOD/COMMUNITY AFFAIRS COMMITTEE, TO SUSPEND THE WATER TAXI SERVICES, EXPLORE COST SAVING MEASURES FOR THESE SERVICES, SUCH AS ADVERTISING AND/OR COLLABORATING WITH THE CITY OF MIAMI'S CURRENT WATER TAXI SERVICES, AND PURSUE A COMPETITIVE BID PROCESS FOR WATER TAXI SERVICES, INCORPORATING ACCEPTABLE COST SAVINGS COMPONENTS RECOMMENDATION Adopt the Resolution. BACKGROUND On April 30, 2016, the City Commission adopted Resolution No. 2016-29370 approving a water taxi pilot program (pursuant to ITN No. 2014-326-JR)with Water Taxi Miami, Inc. (Concessionaire) for a term of one (1) year serving the Purdy Avenue Dock, Sea Isle Marina, Bayside Marketplace, and Miami Beach Marina. Pursuant to ITN specifications, the water taxi service operated at no cost to the City. The service operated Friday through Sunday of every week, subject to weather conditions. The limited days and hours of operation, service frequency, and fare structure were established by the Concessionaire and approved by the City Commission. The limited pilot service was proffered by the Concessionaire as a means to test the service and build ridership in advance of a permanent commuter-based service. Attachment A depicts the water taxi route, schedule, and fares in place during the one (1) year pilot program. The total number of passengers boarding at Purdy Avenue Dock as Dart of the Water Taxi Pilot Program from December 30. 2016 (inception) to September 30, 2017 was 144 passengers. Water Taxi Miami has not provided the City with total ridership figures uo to contract termination date of December 30, 2017. Further Water Taxi Miami has not vet paid the full amount of the City's ticket surcharge owed to the City_ Periodic site inspections conducted by the Transportation Department staff determined that the Concessionaire was in violation of various terms of the Agreement including compliance with the type of vessels, on-site monitoring, and schedule. As a result, a Contractor Incident Report was issued to the Concessionaire on July 7, 2017; and, subsequently, given the Concessionaire remained non- compliant with terms of the agreement, a Contractor Notice of Violation was issued to the Concessionaire on August 30, 2017 (Attachment B). On October 27, 2017, the Neighborhood/Community Affairs Committee (NCAC) discussed the Water Page 1034 of 1270 • Taxi Pilot Program and whether or not to extend the City's agreement with the Concessionaire, Water Tax Miami, Inc., for a one-year pilot program (the Agreement), which was to expire on November 29, 2017. At the meeting, the Committee recommended extending the Agreement with the Concessionaire for one (1) month in order to enable for water taxi service during Art Basel; and, further, the NCAC recommended that staff return to NCAC in December with alternative options for operation of a successful waterborne transportation service in the City. At its meeting on October 31, 2017, the City Commission discussed the Water Taxi Pilot Program, and approved a one (1) month extension of the Agreement until December 30, 2017, enabling for continuation of water taxi service during 2017 Art Basel; and waived the on-site monitoring requirement during the extension period. An Art Basel Water Taxi Plan of Operation was approved by the City Manager and consisted of one (1) day of operation (Thursday, December 7) in addition to the regular days of water taxi pilot service (Friday, Saturday, and Sunday). Based on information provided by the Concessionaire, no passengers boarded at Purdy Avenue Dock during this four (4) day period. During the one (1) year pilot program, the water taxi service used one of the City's existing docks at Purdy Dock for its operation. The City allocated funding in FY 2016/17 for the design and construction of a dock for motorized vessels and a kayak launch at Purdy Avenue Dock. The City is in the process of procuring a consultant to start the design and to apply for the necessary permits in order to issue a bid for the construction of the dock, with a contract award anticipated towards the end of this year or beginning of next year once all permits have been obtained. Once constructed, the new dock for motorized vessels will be used for water taxi operation. The City's agreement with the Concessionaire, Water Taxi Miami, Inc., for a one (1) year pilot program expired on December 30, 2017. Given the City's goal to provide mobility options, including a successful commuter-based waterborne transportation service, Transportation Department staff has conducted some research and contacted various water taxi operators in the region and throughout the country to identify elements that are essential in providing a successful waterborne transportation service. Based on these conversations, the key issues to a successful water taxi operation include: • Providing an operating subsidy • Allowing advertising on-board the vessels • Providing passenger/dock amenities With limited expertise in operating waterborne transport, public entities have partnered with private maritime operators to provide waterborne transport services as a mobility option for commuters using a variety of incentives including exclusive operating licenses, advertising and marketing, public infrastructure investments, and operating subsidies. Regardless of which option is selected, based on discussions with several current water taxi service operators, allowing advertisement space on vessels is attractive to operators as it provides an opportunity to recover a portion of the operating costs, particularly for systems with low ridership demand. Pursuant to the NCAC's recommendation at its October 27, 2017 meeting, staff has developed various options for moving forward with water taxi service in Miami Beach. The options below were presented and discussed by the NCAC at its meeting on December 20, 2017: 1. Enter into a new agreement with the Concessionaire who operated the City's pilot program (Water Taxi Miami, Inc.)on a pilot basis terminable at the City's sole discretion. 2. Issue a new competitive solicitation for commuter-based public waterborne transportation services at no cost to the City. Page 1035 of 1270 3. Issue a new competitive solicitation for commuter-based public waterborne transportation service with a City subsidy. 4. Partner with Miami-Dade County as part of a potential future regional water taxi service. 1. Enter into a new Agreement with the same Concessionaire who operated the City's pilot program (Water Taxi Miami, Inc.)on a pilot basis terminable at the City's sole discretion. Under this option, the terms of a new Agreement would have to be negotiated with Water Taxi, Miami, Inc. The Concessionaire has expressed an interest in revising the term of the prior Agreement given that the water taxi service was not profitable. The new terms proffered by Water Taxi Miami, Inc. are included in Attachment C and summarized below. • Providing free-of-charge weekday commuter service from Purdy Avenue Marina to Sea Isle Marina (OMNI) and to Bayside Marketplace at 15-30 minute frequency of service. • The City would be subject to $125/hour/vessel operating cost (for the existing 38 passenger vessels). • If larger vessels and/or vessels equipped with NC are to be used, the City would be responsible for purchasing the desired vessels and the vendor would charge a lower operating cost per hour. While this option can serve as an interim solution, considering the poor performance of the expired water taxi service over the past year as well as the Concessionaire's non-compliance with the terms of the pilot agreement, this option is not recommended as a long-term solution. 2. Issue a new competitive solicitation for commuter public waterborne transportation service at no cost to the City. The City's solicitation for waterborne transportation services was issued in 2014 and resulted in only one (1) operator (Water Taxi Miami, Inc.) submitting a bid for the services. The ITB stipulated that the services shall be provided at not cost to the City; however, since that time, the City has funded the construction of a new dock for motorized vessels at Purdy Avenue Dock. This represents a material change in the provision of the services which favors the Concessionaire. As an example, the City of Miami provides water taxi service through a concession agreement between Bayfront Park Management Trust (an agency of the City of Miami) and Conway Tours, d/b/a Big Bus Tours (Concessionaire). The water taxi operator, Water Taxi Miami, Inc. (same operator that provided the service to City of Miami Beach), is a subcontractor to the Concessionaire. The water taxi service operates at no cost to the City of Miami. Further, the City receives a concession fee of $42,000 per year (effective January 1, 2014), plus a 5% revenue share on all transactions, including Big Bus Tour tickets, water taxi tickets, and Island Queen Cruises tickets, as well as food, beverage, and merchandise sales, plus ticket surcharges. The Concession fee is subject to an annual increase of 3% or CPI increase, whichever is greater. As an additional example, the City of Fort Lauderdale currently provides water taxi service through an agreement with a private operator, Water Taxi of Fort Lauderdale, LLC, at no cost to the City. The City requires a license fee from the operator of$100 per vessel for a two (2)year period. Further, the City of Fort Lauderdale does not allow advertising on the vessels. Given this business plan, the fare structure is similar to the fare structure established by Water Taxi Miami , Inc. who operated our pilot program. 3. Issue a new competitive solicitation for commuter public waterborne transportation service with a City subsidy. Page 1036 of 1270 This option is similar to the above option with the exception that the City would provide an annual subsidy to the operator to offset a portion of the operations cost of the service and, as a result, to reduce the cost of fares to passengers. This option would make the water taxi service a more affordable and competitive mobility option for commuters. Based on a conversation with the water taxi operator for the City of Jacksonville (St. John's River Taxi), the water taxi operator indicated that the City provides an annual subsidy of $120,000 or no more than $15,000 per month. The operator is required to match the City's subsidy in order to sustain the annual operation of the water taxi service estimated at $240,000 per year. Many other cities throughout the country (e.g., New York City, San Francisco, and Boston) operate successful subsidized commuter water taxi service. 4. Partner with Miami-Dade County as part of a potential future regional water taxi service. The County is currently working on updating a 2006 feasibility study on regional waterborne transportation solutions, including a plan for on-demand and fixed-route waterborne transportation. At this time, however, the timeline for completion of the County's feasibility study and a potential solicitation for such services has not been determined. It is worth noting that County staff has expressed an interest in a potential partnership with Miami Beach consisting of providing water taxi service along the coastal communities (including North Bay Village, Surfside, Bal Harbour, Bay Harbour, and Haulover) and using the City's docks for its regional service. If/when feasibility of regional water taxi services is determined by Miami-Dade County, an option for Miami Beach could be to partner with the County on a potential future solicitation for the services. However, given that the County is currently in the feasibility stage and it is not known if/when the County will procure these services, this option is not recommended in the short term. DECEMBER 20, 2017 NCAC MEETING At the December 20, 2017 NCAC meeting, after some discussion on the above options, the NCAC made a motion to suspend the water taxi pilot program (pilot program agreement expired on December 30, 2017). Additionally, the Committee recommended a competitive bid process which would also be open to allow for alternative ways of reducing operating cost of the service by including possibility of advertising on-board the vessels. Furthermore, the Committee recommended reaching out to City of Miami in an effort to undertake future water taxi service collaboratively. While some of the Committee members were open to the possibility of subsidizing the service, the general consensus among the NCAC members was that a decision as to whether or not the City should provide a subsidy would depend on the outcome of the conversations with the City of Miami on a potential collaboration between Miami Beach and Miami to provide these services as a mobility option between the two cities. CONCLUSION Should the City Commission adopt this resolution, the Administration will work with the City of Miami Administration on a potential collaborative effort to provide commuter-based water taxi service as a mobility option between Miami Beach and Miami. The Administration will update the Mayor and City Commission on the outcome of these discussions with City of Miami, which will affect how the City chooses to move forward with procuring water taxi service. Concurrently, the City will complete the design and construction of a new dock for motorized vessels at Purdy Dock this year to be used for future water taxi operations. Page 1037 of 1270 KEY INTENDED OUTCOMES SUPPORTED Ensure Comprehensive Mobility Addressing All Modes Throughout The City FINANCIAL INFORMATION Legislative Tracking Transportation ATTACHMENTS: Description ❑ Attachment A ❑ Attachment B ❑ Attachment C Page 1038 of 1270 Attachment A pg 1/2 WHETHER TOURING THE WELCOME CITY OR JUST GETTING AROUND TOWN, NOW ' YOU CAN COAST INTO ABOARD THE WEEKEND ON • A WATER TAXI! 1111111.111111111.11111111/4 sEARILE . vuaor MA0.1NR DOCK DOCK BAYSIDE MARKETPLACE MIAMI BFGCN ,MARINL ' Irortn I HOURS OF OPERATION griry Friday to Sunday at the Purdy r Avenue dock, using a 38 - il.. -- passenger vessel with the ability - - to accommodate bicycles Bayside Miami Beach Purdy Ave Sea Isle Marketplace Marina Dock Marina. 1045 AM1 1:20 AM I I:40 AM 12:00 PM 12:15 PM 12 50P 1 10P 1:30 PM 1 45 PM 220 PM 2 40 PM 3:00 PM 3:15 PM 350 PM 4:10 PM 430 PM 4:45 PM 5:20 PM 5:40 PM 6:00 PM i 630 PM* 6:50 PM* TIO PM* 730 PM* ONE WAY FARES: Adults and children five (5) years of age and older: $15.00** Children one to four (1-4) years of age: $7.50 ALL DAY UNLIMITED PASS: Adults and children five (5) years of age and older: $30.00** Children one to four (1-4) years of age: $15.00 MONTHLY PASS: $95.00 ANNUAL PASS: $295.00 'Fom lmm ! to Avgust 31 only ,ass us about spodol'rates;or Miami Beach residents FOR ADDITIONAL INFORMATION,VISIT:WWW.WATERTAXIMIAMI.COM Page 1039 of 1270 TAXIIianU; Attachment pg 2/2 ,SI QUIRE RECORRER LA ; BIENVENIDOS °EGARASUDESrNO A BO RDO• ADIFiso,RgSEMANA PASEANDO EN UN TAXI ACUATICO! illi "AISLE . vuaor MARINA pVFNUE DOCN MARKETPLACE MIAMI RFACH N ,MARIA 11 EiVIS +1R II -r HORARIO DE 1k ? s'._ OPERACIONES: Viernes a domingo, usando un buque para 38 pasajeros con Sa capacidad para bicidetas Bayside Miami Beach Purdy.Ave'. Sea Isle Marketplace Marina Dock -i Marina 1045 AM 1120 AM 1140 AM 12:00 PM 1215 PM I 1250 PM i 110 PM 130 PM 1:45 PM 2:20 PM 2:40 PM 3:00 PM 3:15 PM 350 PM 4:10 PM 430 PM 445 PM 520 PM 540 PM 600 PM 630 PM* 650 PM* 7.10 PM* ll 730 PM* TARIFAS DE IDA SOLAMENTE: Adultos y nines de cinco (5) anos de dad en adelante: $15.00** Ninos de uno a cuatro )1-4) ones de edad: $7.50 PASE DIARIO ILIMITADO: Adultos y ninos de cinco (5) and de edad en adelante: $30.00** Ninos de uno a cuatro 1-4) aids de edad: $15.00 PASE MENSUAL: $95.00 PASE ANUAL: $295.00 *Del I de jwlio nl 31 do ogoslo solnmento ^'PregJnr obrelcs c s -pocwks s n ideroes r N- ii Reach PARA MAS INFORMACION,VISITE WWW.WATERTAXIMIAMI.COM Page 1040 of 1270 TAXIt,i,n:, Attachment B MIAMIBEACH City of Miami Beach, 1755 Meridian Avenue, 3 Floor. Miami Beach, Florida 33139,imniv,mtamibeochfl aov PROCUREMENT DEPARTMENT Tel.305-673-7490,Fax 786.394.4235 August 30, 2017 SENT VIA E-MAIL TO: vlessinq(Ogmail.com Maxim Vlessing Water Taxi Miami, Inc. 244 Biscayne Blvd., Suite 2708-N Miami, FL. 33132 NOTICE OF VIOLATION RE: CONCESSION AGREEMENT 14-326.01 BETWEEN THE CITY OF MIAMI BEACH AND WATER TAXI MIAMI, INC., FOR THE TURNKEY IMPLEMENTATION, MANAGEMENT, OPERATION (INCLUDING DOCK OPERATIONS) AND MAINTENANCE OF A WATERBORNE TRANSPORTATION SERVICES PILOT PROGRAM, PURSUANT TO ITN NO. 2014-326-JR. Dear Mr. Vlessing: The purpose of this letter is to notify Water Taxi Miami, Inc. ("Concessionaire")that it is in violation of its contractual obligations pursuant to the above-referenced agreement(the "Agreement")with the City of Miami Beach(the"City"). Specifically,Concessionaire has failed to provide an employee to be stationed at or near the Concession Area; whose responsibility is to provide on-site monitoring of the program, including the Concession Area, pursuant to Section 3.1.9 of the agreement. Additionally, Concessionaire has failed to adhere to the Plan of Operation's scheduled hours and Destinations without proper notification to and authorization from the City in contradiction to Section 3.1.7 and Exhibit 4 of the agreement. This letter shall serve as notice to Concessionaire that the described violations of contract requirement(s) shall be corrected as follows: 1. Concessionaire shall provide an employee,who will be stationed at or near the Concession Area, whose responsibility will be to provide on-site monitoring(oversight)of the Program including the concession area. This employee must be provided on, or before September 8, 2017. 2. Effective immediately, the Concessionaire must strictly adhere to all provisions of Section 3.1.7 and Exhibit 4 of the agreement. Failure to correct the violation(s)of contract requirement(s)by the deadline noted may result in the issuance of a Notice of Default by the City,which may include, but not be limited to, termination of your agreement with the City for default and ineligibility for future work. Should you have any questions, please contact Fidel Miranda at 305-673-7490 or at fidelm iranda(n7 m iami beachfl.q ov. Sincerely, at Fidel Miranda Contracts Compliance Administrator vve are"omm eaa o,re.:dng e, erg p,_.c service arid.ali? alll0o11.of 1o0ond pia> e co vbmnw I n,..,e con,,rmmy MAW i i Attachment C TAX/1-01.411,6/ Proposal of Water Taxi Service for discussion item before the Committee in mid-December Water Taxi Miami has been operating since November 2016 at the Purdy Avenue dock location, during which time we have encountered adverse operating conditions. The first month in operation, the East Venetian bridge was under construction and thus we were not able to begin operations until the first week of December 2016. In addition, Water Taxi Miami has been competing with service from illegal charter operators that are docking at the Purdy Avenue dock, and who are not authorized by or under contract with the city of Miami Beach. Water Taxi Miami has tried the entire year to adjust the pilot program, but the necessary steps were not implemented by the City of Miami Beach to help make the service more affordable. The main purpose of the Water Taxi pilot program was to identify necessary changes and adjust the operation until it works and is successful. After one year, we come to the same conclusion as Mayor Philip Levine: Without significant subsidy, Water Taxi will not be a success like the Trolley system. Further, the service should target regular workday commuters, who need service daily and during times that match with typical work schedules. We propose a new and revised Water Taxi program with the following operational specifications: • Water Taxi Miami would provide Water Taxi service from 6 am to 9 pm on weekdays (15 hours a day), and from 9 am to 9 pm on weekends. • The route would go from Purdy Avenue Dock to Sea Isle Marina (Omni) to Bayside Marketplace, and service would run every 30 minutes with one vessel, or every 15 minutes with two vessels. • Operating cost would be $125 per hour per vessel. The operator, Water Taxi Miami, will supply the vessels. • If the city wants the program to offer larger, more luxury vessels with A/C, then the city would provide the vessels. In that case, Water Taxi Miami would charge a lower hourly rate, to be determined based on the vessel size and other costs such as insurance, docking fees and maintenance fees. • During the first year, Miami Beach residents would travel for FREE (like the trolley buses). • A second option is to charge riders a small fee of$2, and use this revenue to offset the city's subsidy. • A marketing campaign should directly target residents who are most likely to explore waterborne service as a public transportation alternative. Untapped Commuter Demand We believe there is untapped commuter demand for waterborne transportation, if done right. Currently, nearly 14,000 commuters take buses to and from Miami Beach every weekday on bus routes that overlap with the Water Taxi service stops, and more than 91,000 private cars transit across the McArthur Causeway and the Venetian Causeway every day. 253 NE 2nd Street suite 1809, Miami Florida 33132 I Phone:305-600-2511 Page 1042 of 1270 TAialltiCtiath The Metrobus routes that partially overlap with the stop sites serviced by Water Taxi Miami are shown in the table below. If Water Taxi Miami were to capture as little as 1% of that bus commuter market (.01), the Company could be transporting an average of 138 passengers a day, and that doesn't include weekends. The intention of Water Taxi is not to reduce bus ridership, but to provide a viable alternative to private car and to expand options for those who already use public transportation. To that end, residents who already rely on public transportation are a logical initial target market for the waterborne service. p�* kr"k x . ' , ' > _�g�gra a V r ;� . "` w4' a � x' '�„ "t 4.Ltit6iiid: 4"....,. .� w ' 4".. § ,' r �1•,TxtjM } .+ s""n" Downtown Miami-Omni -McArthur Cwy- Miami Beach -So Beach-Lincoln Rd-Collins Av- 129th St. Cwy-Aventura Mall 119 Route 5 10,150 8,083 7,762 284,296 Overlapping Water Taxi Stops: • Sea Isle Marina (Omni) • Purdy Avenue Dock • Chopin Plaza (Bayside) Downtown Miami -Omni - McArthur Cwy-So Beach- Collins Av/41st St-Mt. Sinai Hospital 103 Route C 2,813 2,588 1,832 78595 Overlapping Water Taxi Stop: • Chopin Plaza (Bayside) • Sea Isle Marina (Omni) • Purdy Avenue Dock Civic Center-Jackson Hosp-Cedars-VA Hosp- Omni - McArthur Cwy-So Beach - Lincoln Rd - Collins Av/41st St- Mt. Sinai Hospital 113 Route M 763 513 425 20,208 Overlapping Water Taxi Stop: • Sea Isle Marina (Omni) • Purdy Avenue Dock NE 17th Terr/Bisc- Omni-Venetian Cwy- Lincoln Rd -So Beach 101 Route A 101 41 30 2,432 Overlapping Water Taxi Stops: • Sea Isle Marina (Omni) • Purdy Avenue Dock TOTAL 13,827 11,225 10,049 385,531 253 NE 2"d Street suite 1809, Miami Florida 33132 I Phone:305-600-2511 Page 1043 of 1270 iisWeire TAXliam, In addition to Metrobus users who would gravitate toward a waterborne alternative, the goal of waterborne transportation is to make itself viable and attractive for a portion of the daily commuters who drive their private cars across the causeways that connect the mainland with Miami Beach and other municipalities across Biscayne Bay. The average daily traffic on each of the two causeways that are relevant to the proposed Water Taxi route are shown in the table below. If Water Taxi were to service as little as one-half percent (.005) of this car-commute market, the Company could be transporting an average of 457 passengers a day, or 3,199 a week (assuming one person per car). i.CatiseWaY AverageDai(yTr@ffi MacArthur Causeway 87,500 Venetian Causeway 3,900 TOTAL 91,400 253 NE 2ntl Street suite 1809, Miami Florida 33132 I Phone:305-600-2511 Page 1044 of 1270