TO:
Honorable Mayor and Members of the City Council
THROUGH:
Mark Danaj, City Manager
FROM:
Andy Sywak, Economic Vitality Manager
SUBJECT:Title
Possible Pilot Program for an Ad-Supported Electric Vehicle Shuttle Service within Manhattan Beach (Economic Vitality Manager Sywak).
PROVIDE DIRECTION
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Recommended Action
RECOMMENDATION:
(a) Staff seeks direction from the City Council on whether to allow use of a city-owned facility for the purpose of engaging in a public-private partnership, on a pilot basis, with an Ad-Supported Electric Shuttle Service Provider (Shuttle Service) to bring a short-distance transportation service to Manhattan Beach residents at no cost to the user.
(b) In the event the Council chooses to proceed, authorize the City Manager to negotiate and approve an agreement/lease with the vendor(s).
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EXECUTIVE SUMMARY:
The City has been contacted by two companies that are interested in providing free electric shuttle service to residents and visitors in all areas west of Sepulveda Boulevard in Manhattan Beach. (If an initial pilot proves successful, the program could be expanded citywide.) This service functions through a ride-hailing mobile app similar to Uber or Lyft with a business model based on selling advertising on the outside and inside of its electric six-seater vehicles to offset the cost of service (See Attachment 1 - Gem E6 shuttle). This proposal will enhance mobility and economic vitality in an area that has severe parking scarcity. In addition, the City could receive compensation for providing an area for the electric shuttles to charge in an unused space at the Metlox facility (See Attachment 2 - Charging Station location at Metlox).
Staff seeks direction on whether the City Council is interested in using a city-owned facility to pursue a pilot program to provide a free electric vehicle shuttle service to the community.
FISCAL IMPLICATIONS:
If City Council would like to pursue this pilot program, Staff can negotiate a monthly rent payment from the shuttle service provider for charging its vehicles at Metlox or an additional public facility. The City could also negotiate to convert this rent payment into advertising City programs on the shuttles themselves. The shuttle service is not anticipated to have any financial costs to the city.
BACKGROUND:
In 2015, the City of Manhattan Beach as well as the Downtown Manhattan Beach Business & Professional Association (DBPA) were approached by an electric shuttle service called The Downtowner (See Attachment 3 - Downtowner Proposal for Service in Manhattan Beach). Currently operating in two cities in Florida and locally in Newport Beach, this company operates six-seater electric vehicles that pick up passengers in a defined geographical area through a ride-hailing mobile app (like Uber/Lyft) for short trips. The rides are free for passengers and the service is paid for by advertisers who wrap the vehicle in a large graphic promoting their brands.
The service uses a battery-charged electric vehicle called a GEM E6 manufactured by Polaris (vehicles are just under 14-feet long and four-and-a-half feet wide). Customers request a one-way ride through use of a mobile device and wait to be picked up by the vehicle to be taken to their destination. The unloading and loading of patrons would need to take place in legal areas and not in the public right-of-way. The vehicles have a top speed of 25 MPH and are prohibited from driving on streets such as Sepulveda, Aviation, Artesia and Rosecrans where the average speed is higher.
In April, the South Bay Council of Governments was approached by another Shuttle Service, The Free Ride. This company also provides a free shuttle service utilizing GEM E6s in four states and recently launched the service in Venice and Santa Monica. The City met with a representative from the Free Ride on May 2 (See Attachment 4 - Free Ride proposal for Service in Manhattan Beach).
DISCUSSION:
In an effort to address parking constraints in downtown Manhattan Beach, improve economic vitality and promote environmental sustainability, staff is seeking City Council direction on instituting a pilot electric shuttle service in Manhattan Beach. Bringing an electric shuttle service to Manhattan Beach fits in with some of the City’s “Pillars of Success” as laid out in the Manhattan Beach Strategic Planning Framework to promote environmental stewardship and economic vitality. In addition, the City’s General Plan and draft Downtown Specific Plan address use of alternative transportation systems, such as shuttles, to improve access to parking.
Electric shuttles have the potential to enhance resident and visitor mobility around the city and reduce greenhouse gas emissions by reducing the time individuals spend in their cars. The shuttles will circulate residents and visitors in Manhattan Beach to their destination without taking up additional parking spaces. This service would enable residents to leave their cars at home and take short trips to businesses and local restaurants without worrying about finding a parking space.
It is not clear what regulatory powers the City has over a shuttle service operating in the City. The service is not a taxicab and cannot be regulated under the Vehicle-for-Hire aspects of City Code. The City must treat all parties who wish to advertise in a content-neutral way and may not have the authority to prohibit vehicles with advertisements from driving on city streets.
In other local cities where this service has been provided, it was approved by a simple business license with proof of insurance (Santa Monica), a Conditional Use Permit to improve a charging location (Newport Beach) and approval from the Transportation Commission (Los Angeles - Venice).
A Shuttle Service provider could also operate in Manhattan Beach without using a city-owned facility by renting space in a private garage and obtaining a use permit. They may be required to prepare a parking demand analysis as well.
Charging Location
In order for the service to work effectively, a location to charge the vehicles within Manhattan Beach is critical. Vehicles need to be recharged throughout the day using a 10kW electric charger to continue to operate. An unoccupied area underneath the main escalator at the Metlox facility has been suggested as a possible charging location. This area was originally intended to be used for valet service but never utilized and is currently closed off by bollards. Were a Shuttle Service provider to commence service using the Metlox facility, the City would negotiate an agreement that may include rent payments and/or free advertising.
Conversations with Public Works and the Tolkin Group (who manages the tenants at Metlox) revealed that the electric capacity to charge the vehicles exists and could be routed through a panel operated by the Tolkin Group. The shuttle provider would pay the Tolkin Group for energy usage and be responsible for any improvements necessary to establish service.
Council may want to consider whether it would like to allow the Shuttle Service provider to use the Metlox facility or another city property as a charging location. Additional charging locations outside of Metlox have not been explored at this time.
Pilot Program
The City solicited a proposal from each provider in advance of this meeting to better understand how each service may service Manhattan Beach. The pilot program would operate with a provider using four-to-six vehicles seven days a week with hours from the late morning to the late evening.
Due to the limited number of vehicles, the initial pilot would be confined to the area of Manhattan Beach west of Sepulveda Boulevard. The service could then be extended with more vehicles to the entire city if demand is high enough and the shuttle is well received.
Next Steps:
If Council is interested in pursuing a partnership with a Shuttle Service provider using the Metlox facility, they could choose to delegate the following to the City Manager:
(a) Evaluate proposals and select a vendor, negotiating just compensation for use of the Metlox garage.
(b) Examine whether the charging of vehicles at the Metlox facility may also require amendments to the City’s Master Use Permit with the Coastal Commission as well as the Coastal Development Permit.
(c) Any parameters the Council wishes to have with the pilot program regarding hours of operation and length of pilot.
POLICY ALTERNATIVES:
ALTERNATIVE # 1:
Although only the Metlox facility has been explored as possible location for the charging locations, other areas (school, park, private property) could be considered.
PROS:
This would enable the City to avoid making any alterations to the Master Use Permit and Coastal Development Permit for the Metlox facility.
CONS:
It’s not certain what additional public space is available to hold charging stations and if sufficient electric capacity would be available at these locations, and would require more time to evaluate.
ALTERNATIVE # 2:
Decide not to use a city-owned facility for potential partnership.
PROS:
City would not have to alter any facility.
CONS:
City could miss out on opportunity to enhance mobility in commercial areas and reduce congestion.
PUBLIC OUTREACH/INTEREST: As mentioned in the Discussion section, electric shuttles have the potential to enhance mobility around the city, better circulate consumer traffic and reduce greenhouse gas emissions by reducing the time individuals spend in their cars. The Shuttle Service could serve as an especially great resource for nearby residents who might not make the short trip to Downtown or the North End due to parking scarcity.
The Downtowner made a presentation to the DBPA Board at their October 2015 meeting about their service and has had several meetings with their members. The DBPA and its members are very supportive of bringing this service to town in time for the summer (See Attachment 5 - DBPA Letter to Council). City staff has met with Downtowner representatives on several occasions to tour the Metlox facility.
City Staff has also had conversations with staff in the City of Newport Beach, the Santa Monica Conference and Visitors Bureau and the Venice Chamber of Commerce regarding their experience with the Shuttle Service providers that operate in their city and how they handled regulatory issues. All feedback was positive.
ENVIRONMENTAL REVIEW
Pursuant to the California Environmental Quality Act (“CEQA”), the City has determined that the proposed project is Statutorily Exempt from the requirements of CEQA and the City’s CEQA Guidelines as it is a temporary pilot program for electric shuttles and will not have a significant impact on the environment pursuant to CEQA Guidelines Section 15262 - Feasibility and Planning studies. Staff will return to Council in the future and any further environmental review will be considered at that time.
LEGAL REVIEW
The reason this matter is before the City Council is because the vendors would like to use public property for the charging stations. If the Council approves such use, an agreement would be developed that will address items such as compensation and advertising.
ATTACHMENTS
1. Gem E6 Shuttle
2. Charging Station location at Metlox
3. Downtowner Proposal for Service in Manhattan Beach
4. The Free Ride Proposal for Service in Manhattan Beach
5. DBPA Letter to Council