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Resolution No. 2022-16 Conversion Plan to Phase in On-Demand Transportation Services FreeBee LLC - February 1, 2022 CITY OF AVENTURA RESOLUTION NO. 2022-16 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF AVENTURA, FLORIDA, ADOPTING A CONVERSION PLAN TO PHASE IN ON-DEMAND TRANSPORTATION SERVICES BY EXPANDING THE SCOPE OF SERVICE TO ENCOMPASS THE ENTIRE CITY; AUTHORIZING THE CITY MANAGER TO PURCHASE ADDITIONAL VEHICLES FROM FREEBEE LLC, THE CURRENT VENDOR, AS PART OF PHASE ONE OF THE CONVERSION PLAN; PROVIDING FOR IMPLEMENTATION; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, over the years, the City of Aventura ("City") has provided a circulator bus system for its residents and has retained consultants to conduct traffic studies to ensure the City's transit system was operating efficiently, tracking both ridership and local conditions impacting the bus routes; and WHEREAS, over the past two years, a new transportation model has emerged, known as On-Demand Transportation, allowing a rider to travel from point to point within a pre-determined boundary by using a phone app or direct phone call to request an on- demand vehicle, which is dispatched to the user's location; and WHEREAS, in February 2021 , the City received proposals from two on-demand service providers and entered into a one-year pilot program with FreeBee, LLC ("FreeBee") to provide fully electric buses available to residents in a predetermined zoned boundary; and WHEREAS, the pilot program commenced in June 2021 , with ridership and demand for this service growing steadily; and WHEREAS, the City Manager is recommending expanding the on-demand service to the entire City in two phases by continuing to use Freebee's electric buses and to order electric Tesla vehicles ("SUVs") from the same vendor; and WHEREAS, the City Commission finds that this Resolution is in the best interest of the City and its residents. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF AVENTURA, FLORIDA, AS FOLLOWS: Section 1. Recitals Incorporated. That each of the above-stated recitals are hereby adopted and confirmed. Section 2. Conversion Plan Approved. That the City Commission hereby approves the City Manager's Conversion Plan, attached hereto as Exhibit "A" to expand the scope of on-demand electric transportation service to the entire City in two phases. Section 3. Purchases Approved. That the City Commission hereby approves the purchase of four electric Tesla vehicles, as consistent with Phase 1 of the Conversion City of Aventura Resolution No. 202246 Plan, and two electric buses per consensus of the City Commission at the January 20, 2022 Commission Workshop. Section 4. City Manager Authorized. That the City Manager is hereby authorized to take all necessary steps to implement this Resolution. Section 5. Effective Date. That this Resolution shall become effective upon its passage. The foregoing Resolution was offered by Commissioner Shelley, who moved its adoption. The motion was seconded by Commissioner Landman, and upon being put to a vote, the vote was as follows: Commissioner Jonathan Evans Absent Commissioner Denise Landman Yes Commissioner Dr. Linda Marks Yes Commissioner Marc Narotsky Yes Commissioner Robert Shelley Yes Vice Mayor Rachel S. Friedland Yes Mayor Enid Weisman Yes PASSED AND ADOPTED this 1st day of February, 2022. ' ENID WEISMAN, MAYOR a ATTEST: ELLISA L. HORVA MMC CITY CLERK APPROVED AS TO LEGAL SUFFICIENCY: i A � � ! '� CITY ATTORNEY Page 2 of 2 Exhibit "A" CITY OF "ENTURA OFFICE OF THE CITY MANAGER MEMORANDUM TO: City Commission FROM: Ronald J. Wasson City Manager er 6_� DATE: January 14, 2022 SUBJECT: Conversion Plan to On-Demand Transportation Service (City Manager) January 20, 2022 City Commission Workshop Agenda Item 5 BACKGROUND The City of Aventura has over the years provided a circulator bus system for its residents to allow those who did not drive or wish to use their vehicles to visit shopping areas, doctors, hospitals, and other locations with limited parking availability. In the early years, an express bus service was established with limited routes that served three areas of the City: the north, south, and central. Over the years as ridership increased and demand increased for more stops to be added to the already established routes, additional buses were added with the specific design to move residents to anywhere in the City they would like to go. The Aventura Circulator Bus System became well known in Miami-Dade County for being a model in local transportation and reducing local vehicle traffic. From the beginning, all the routes began and ended in the Aventura Mall where riders could connect with the other circulator buses and arrive at various locations in the City. In time, the Aventura Mall, with permission from Miami-Dade County Municipal Transit Division, established a Bus Depot which increased the availability for local ridership to connect with the Miami-Dade Transit Bus System, giving residents even greater access to local transportation opportunities. Over the years, outside traffic studies were conducted by the University of South Florida, Center for Urban Transportation, to ensure our transit system was operating efficiently and to track ridership and local conditions as they impacted routes. Over the past 24 months, however, a new transportation model has emerged. On- Demand Transportation Service, which allows for a user wishing to go from point A to point B within a predetermined boundary, to use a phone app or direct phone call to request an on-demand vehicle, which then is dispatched to the user's location. From there the user is picked up and ultimately dropped off at the location of their choosing. In February 2021 the City of Aventura, after receiving proposals from two on-demand service providers, entered into a one-year pilot project with Freebee LLC, 2312 N. Miami Avenue, Miami Florida 33127. The agreement was to provide two fully electric vehicles that would be available to residents in a predetermined zoned boundary, allowing residents to use the system, develop a ridership base and establish publicity for the new program. (Total cost $322,953.80 for 12-months of service) The pilot program began to operate this past June when the new vehicles were delivered and put into service. A six (6) month review was scheduled to review Freebee operations, ridership, and overall satisfaction of residents. It was determined at the November Workshop review that Freebee ridership and the demand for the on-demand transportation service has been growing steadily and for all intents and purposes was being utilized by the community and considered successful. The only real negative issue raised was longer wait times at certain times of the day due to heavy demand, particularly by school children requesting rides to and from school. Clearly, as the program has become more popular, intermittent delays and longer wait times to be picked up have been experienced. After discussing the options with the Freebee representatives, it was determined to move ahead and plan for expanding the service to the entire City with the mindset to begin revising/reducing the existing bus service. Presently the Aventura Circulator Bus Service operates six (6) separate routes throughout the city, all beginning and terminating at the Aventura Mall Bus Depot. The preliminary details for moving ahead with this plan of action will be as follows- On-Demand Service Transportation Action Plan Phase-1: Initially, the City will begin to transition from the current two (2) vehicle Freebee On-Demand Service model with existing rules and increase the on-demand vehicles operating in Aventura to six (6) vehicles (Increase of four (4) vehicles). Once the new vehicles are delivered to Aventura for operation, the pilot program boundary (Geo-fence) will be lifted and the entire City will have full access to the on-demand service. The cost of each new Tesla Vehicle with an operator is $122,239. (Total Cost: $488,956 for four vehicles) This initial Phase 1 will take approximately 90 to 120 days once the new Tesla vehicles are deployed. During this period, we will continue to operate the bus system but launch an aggressive advertising campaign alerting residents of the availability of the new on-demand transportation service. During this period, we will also be letting residents also know we will be revising the current bus routes to three (3) express routes which will continue to service the north, south, and central areas of the City. These buses will operate on an approximate 30 to 40-minute schedule which will begin and end at the Aventura Mall. Additionally, the new bus routes will now include some bus stops at the curbside locations. The circulator buses will generally no longer be entering individual properties or stopping at individual buildings. (Exceptions for hospital, assisted living facilities, etc.) The bus stops will be clearly identified with new signage on the street allowing for faster service. At the end of the 90-Day Phase-1 Period, the new bus routes will be deployed. By reducing the number of bus routes to three, the City will see an annual cost saving of approximately $634,000 which will help offset the cost of the new Freebee on-demand services. Phase-2: This operational phase will be from 120 to 150 days to evaluate the new bus routes and the on-demand transportation service as it relates to ridership, demand for service, wait times, etc. Also, we will be carefully monitoring the ridership of the circulator buses for the same indicators. It could be reasonably concluded that as the On-Demand Transportation service becomes more popular, we could anticipate a reduction in ridership. Over time, staff will review to determine if the bus routes would need to be revised. It will be critical to have the following things in place as we begin this phase- 1. Appropriate Signage is in place for the bus stop locations. This is important for the residents and riders to know where the bus will stop. 2. Information and Advertising: this will be done through literature and pamphlets to be distributed to each residential building, property manager, Condo Association, etc. Also, workshops will be scheduled initially with property managers and building associations. Social Media platforms and our Aventura Website will also host information sessions regarding the plan and how to access the new On-Demand Transportation System. As we are in the Phase-2 review, careful consideration will be to ultimately decide to fully increase the On-Demand Transportation Vehicles in Aventura from six (6) to ten (10) electric vehicles which is the recommended number of vehicles to handle all the transportation needs for residents if the circulator system was significantly reduced. Please know the goal for the On-Demand Transportation Service is to have the wait time from the initiation of a ride request to the pick-up to be under 10 minutes. If that number is achieved, the program will be successful. If this program is fully implemented, the approximate cost of Phase-1 and Phase-2 would be as approximately as listed. For budgeting purposes however, I have shown what the full cost of a new Aventura transportation service would cost over an entire year after fully implementing Phase-2. Phase 1: • $322,953 (Current 2 electric bus vehicles) • $488,956 (Additional 4 new electric Tesla vehicles) • $1,269,999 (Operation of current 6 Bus Circulator Routes) Phase 2: • $322,953 (Current 2 electric bus vehicles) • $977,912 (Total 8 electric Tesla Vehicles) • $634,999 (Operation of 3 Bus Circulator Routes) Total: $1,935,864 (Net Increase of $665,865) Note: Efforts to have sponsorships from local businesses will be pursued to help off-set operational costs. RECOMMENDATION At this time, I would recommend having a transportation consultant review our plan, ascertain our ridership and make any suggested changes for implementation specifically with regards to reviewing bus stops. The desire to move from a fixed route circulator system to an integrated On-Demand Transportation Service with a limited fixed route express service will face some challenges, but if done carefully and with a robust public awareness campaign, it will be successful. A review of our current system with the focus of transitioning to a new three bus express route and determining the best and most used bus stops/destinations would be extremely important to ensure the best operation and continued use of the bus system. I would recommend moving forward on initiating Phase 1 of the Action Plan, beginning with ordering the 4 electric vehicles and beginning the advertising campaign for the On- Demand Transportation Service. As part of our contract with Freebee, we are allowed to expand/add additional vehicles as necessary. Due to the lead time of getting the Tesla vehicles, (60 to 90 days), it would be in our best interest to start that process now. Once the vehicles are delivered, we could then continue to accumulate more data analysis as we roll out the program and work through this transition. Attachments: Basic 3 Bus Circulator Route Map 3 Months of Ridership Date of Current 6 Bus Routes RJW/