TO:
Honorable Mayor and Members of the City Council
THROUGH:
Mark Danaj, City Manager
FROM:
Andy Sywak, Economic Vitality Manager
SUBJECT:Title
Update on Downtowner Pilot Program and Request for Program Extension (Economic Vitality Manager).
ADOPT RESOLUTION NO. 17-0105 AND PROVIDE DIRECTION
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Recommended Action
RECOMMENDATION:
Staff recommends that Council extend the term of the Downtowner pilot program for one year and authorize an amendment to the agreement to allow for alcohol advertising with appropriate guidelines.
Body
EXECUTIVE SUMMARY:
Since its launch on Feb. 1, 2017, the Downtowner has transported approximately 28,040 passengers in its first five months of operation. The six-month pilot program expires on July 31, 2017. The Downtowner would like to extend the term of the pilot program for one additional year and be permitted to have advertisements featuring alcohol content on their vehicles to increase revenue and enhance the viability of the current program.
They are also proposing to expand the service area, which would cost approximately $647,000-$840,000 annually. Staff has undertaken a review of possible funding sources to support an expanded program but has not identified a reliable grant funding source to fund a service of this magnitude.
FISCAL IMPLICATIONS:
The fiscal implications vary greatly depending on what action Council takes.
1. A year-long extension of the term of the existing program and service area would come at no cost to the City.
2. A citywide service expansion of the current model would cost the city approximately $840,000 annually and $647,000 if expanded eastward only to Sepulveda. Should City Council consider expanding services throughout the city, staff recommends releasing an RFP to ensure that the City receive the greatest value of service for a more permanent, city-wide program. A full analysis of funding sources and impacts to other city programs ...
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