TO:
Honorable Mayor Powell and Members of the City Council
THROUGH:
David N. Carmany, City Manager
FROM:
Richard Thompson, Community Development Director
Laurie Jester, Planning Manager
Esteban Danna, Associate Planner
SUBJECT:Title
Presentation of the "Car2Go" Program by the South Bay Cities Council of Governments.
DISCUSS AND PROVIDE DIRECTION
Body
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RECOMMENDATION
Staff recommends City Council discuss the program and provide direction. If the City Council supports the program staff will return to the City Council with the required documents to implement the program.
FISCAL IMPLICATION
There is no cost to the city incurred through the operation of car2go. car2go will compensate cities for lost parking revenues. The service is a non-exclusive operation and the City has no obligation or financial responsibility for car2go's rental process.
BACKGROUND
The South Bay Cities Council of Governments has been studying travel patterns in the South Bay region for the last five years. The principal finding was that most trips, other than the commute trip, are less than five miles. The Local Use Vehicle Pilot Demonstration Program funded by the South Coast Air Quality Management District has verified that a high proportion of trips are purely local.
The South Bay region does not have a robust transit system that can serve these short trips. As a result, South Bay residents face high costs of gasoline and car ownership in order to make these multiple short trips. Based on the interest in reducing the aforementioned costs to residents and creating more travel choices, the South Bay Cities Council of Governments has been soliciting car sharing programs over the last two years.
car2go is a subsidiary of Daimler AG that provides car-sharing services in several cities in Europe and North America. car2go, currently operating in five American cities and nine cities in Europe and Canada, researched the South Bay and saw the potential for their car sharing service in the area to provide a new mobility option for short trips.
The South Bay Cities Council of Governments recently adopted Resolution No. 2012-2 (Attachment B) approving the program and identifying an initial operating area which includes the cities of El Segundo, Gardena, Hawthorne, Hermosa Beach, Lawndale, Lomita, Manhattan Beach, Redondo Beach, and Torrance. car2go has expressed interest in expanding to other cities in the South Bay in the future. If approved, car2go is prepared to begin operations by mid-2013.
DISCUSSION
The Program
Car sharing services are defined in California Vehicle Code Section 22507.1 (Attachment C). car2go is a car sharing service that is a completely personal, flexible mobility option first introduced in Austin, Texas in 2009. It is unique among car sharing programs because it offers point-to-point service - the car can be picked up or left anywhere in the defined operating area. The idea is "jump in, drive away, drop off". Whenever a car is needed, a car2go member can use one of the 300-350 distinctive blue and white Smart Fortwo vehicles that will be located throughout the South Bay. The cars are modern and safe and clearly marked as part of the program.
Vehicles will be maintained so they will always be clean, fueled and ready to go, spontaneously or with a reservation. The service provides a complete personal mobility option without a security deposit, or the usual fixed and variable costs associated with car ownership. Those interested register online with a one-time membership fee of $35. Users pay 38 cents per minute for the use of the car, and a maximum of approximately $15 per hour. Drivers must be licensed, have a good driving record and be over 18. The car2go car sharing model can be expected to substantially reduce vehicle emissions and the number of cars on the road.
The vehicle can be driven anywhere - inside or outside of the operating area. When the member is finished with the vehicle, it must be parked within the operating area in any authorized legal parking place. The vehicle does not need to be returned to its original pick-up location. This feature makes the car2go service unique among car sharing firms.
The Smart Fortwo vehicles themselves are the most fuel-efficient non hybrid or electric vehicles on the road today. Additionally, the car2go concept improves the area's overall vehicle utilization ratio since privately-owned vehicles are generally used only 1-2 hours a day and sits idle for the majority of the day, sometimes occupying valuable parking spaces. A shared car2go vehicle has been shown to provide, on average, over four hours of utilization. And the ultra-compact car2go cars have a lower impact on city infrastructure.
Providing "on-demand" fuel efficient transportation options for individuals, car2go also compliments the South Bay's public transportation by closing the gaps commonly associated with public transit commuting, and it is a practical and affordable alternative to the rising costs and hassles associated with vehicle ownership. car2go successfully operates in Austin, Texas, Miami, Florida, Washington, D.C., Portland, Oregon and San Diego, California as well as cities throughout the world. Members can use the program in any of the other car2go cities in the United States.
car2go - South Bay
The company is requesting a permit to allow their vehicles to park without time limit or payment of meters in the public right of way unless there are specific restrictions. Each vehicle would be issued a separate permit in the form of a South Bay sticker which will be prominently displayed in each vehicle. The company will register and insure all of the vehicles and pay all applicable taxes, fees and licenses. A proposed permit which has been prepared by the South Bay Cities Council of Governments attorney for your review is attached (Attachment D). The City Attorney is currently reviewing these documents to insure liability is properly addressed.
As stated in the draft permit, car2go will furnish regular reports on the usage of the vehicles and be subject to audit. In order to make this system work in the South Bay, all of the initial nine cities will need to approve a permit for the program's non-exclusive operation in their city. The permit covers the ability for these cars to be parked in metered or restricted parking spaces with partial or complete exemptions. The proposed permit term is for three years and is revocable by the City at any time if required by public need or if the permittee fails to comply with the agreed upon conditions.
Potential Concerns
The car2go business model depends upon a broad-based agreement with the city that allows the vehicles to park on the street. During peak periods, the commercial districts and also some residential neighborhoods near the commercial areas are already burdened with parking shortages. With multiple vehicles taking up very limited parking space on the streets, sometimes for hours, it is reasonable to expect that not all of the community feedback about car2go will be positive.
Should the City receive complaints or observe vehicles that are parked in violation, the City must notify car2go. Successful resolution of those concerns will require the involvement of the Police Department and a response from car2go to move the vehicles.
Exempting car sharing programs from meter time limits may negatively impact the limited supply of parking in the downtown and North Manhattan Beach commercial areas. The impact may be especially significant during summer time or special events. Specifically, parking demand increases significantly in the downtown area during the summer when the downtown experiences a large number of beach visitors. Special events such as farmers' market day and the volleyball tournament also increase parking demand.
The City Council may wish to consider a one year pilot program in order to quantify the benefits of the car sharing program as well as any impacts, and make adjustments to the program as needed.
The South Bay Cities Council of Governments staff is making arrangements to discuss the program with the Downtown Business and Professionals Association to ensure that any concerns will be addressed.
CONCLUSION
Staff recommends City Council discuss the program and provide direction. If the City Council supports the program Staff will return to the City Council with the necessary Resolution and Ordinances to implement the program.
Attachments:
1. South Bay Cities Council of Governments Resolution No. 2012-2
2. California Vehicle Code Section 22507.1