City Council members last week gave staff the green light to issue a request for proposals for an exclusive municipal contract that would go to a sole operator of a bike-sharing system and come up for renewal after an agreed-upon period of time, thus offering Boulder the chance to change vendors or squash the program if necessary.
The Council also voted to tweak an ordinance concerning bike sharing in an attempt to make the city a bit more appealing for a business.
But for that to matter, an initial vendor would have to strike a deal with the city, and officials acknowledged it may take some time for that to happen due to the economic slug of the coronavirus and its reach to micromobility companies like bike- and scooter-share operators. Some have gone dormant, exited communities and gone through company mergers and bankruptcy, as well as suffered decreases in venture capital backing, according to private sector feedback given to the city that was shared by Boulder Senior Transportation Planner David “DK” Kemp.
“It’s highly possible the request for proposals and contractual process could be extended due to COVID-19 and its effect on participating micromobility companies and their ability to provide services in a timely manner,” a city staff memo stated.
But some operations, especially smaller ones, have seen an uptick in usage during the pandemic, Kemp said.
Criteria in the city’s request will include guidelines to have a micromobility company identify partnership strategies with the Boulder BCycle system consisting of bikes stored on docks that can be used by customers of the nonprofit operation. It is being subsidized this year, and a $50,000 city subsidy is budgeted for 2021.
“Coordination with Boulder BCycle is critical and is an important element of the overall shared micromobility program. We are currently engaged in a strategic planning process with Boulder BCycle to determine a viable path forward for the organization including the successful coordination with a future private-sector dockless micromobility provider,” Kemp said.
Councilman Mark Wallach questioned why the request for proposals should be an exclusive contract, which some operators reportedly suggested to the city would be preferred.
“We would not protect a restaurant from competition. The concepts of protecting an operator that comes in under an RFP and granting them monopoly status is a little bit problematic,” Wallach said.
But Kemp and Kevin Crouse, director of Boulder Bike Share, operator of the BCycle system, believe limiting the newest iteration of bike sharing in the city to one vendor provides the most stability for riders and financial viability for a company.
“Deciding whether we do this as allowing a for-profit business to come in and do business or whether we view this as a public utility, this is the time to make this decision. If you view it as a public utility, it’s worth protecting,” Crouse said in support of an exclusive contract for any potential new operator.
In the second quarter of this year, which includes the time the coronavirus disrupted Boulder County, Boulder BCycle provided about 10,000 trips, just 34% of the number of trips it averaged in the second quarter from 2017 to 2019. The nonprofit operation increased free trip periods for its monthly and annual pass holders, and also dropped the price of its paid trip pass to $1 per ride, measures that are still in effect as a result of the pandemic, Kemp said.
“As we look across the landscape, we’re seeing a depleted regional transit agency, and we’re seeing micromobility companies falling day by day, and we’re seeing our transportation budgets tighten,” Boulder Chamber Director of Public Affairs Andrea Meneghel said in support of staff’s recommended rule changes. “These conditions make it imperative we seek to attract the type of providers that can creatively offer sustainable solutions to our mobility challenges.”
Among the new policies approved by the city were allowing an initial fleet of 500 bikes compared to the 150 that were allowed in 2018, with the ability for operators to increase the fleet by 20% if an average of two rides per vehicle per day is achieved; if less than one ride per vehicle per day is occurring on average over four weeks, the fleet can decrease by 10%. Additionally, 15% of the fleet must be rebalanced to undeserved neighborhoods daily, and 25% of rebalancing vehicles must be electric-assist in the first year of operations.
Speed limits would be 20 miles per hour on the street and 15 on multiuse paths, and the operator would have to offer a one-year low-income customer plan that waives any vehicle deposit and offers an affordable cash payment option and unlimited trips under 30 minutes. Officials could regulate speeds with “geo-fencing” technology, considering the vehicle locations would likely be tracked, Kemp said. Additionally, parking at micromobility hubs would be encouraged. Electric-assist bikes are not currently allowed on city open space trails.
Potential scenarios for Boulder BCycle, should a vendor be selected, listed in Kemp’s presentation include:
Boulder Bike Share continuing to own the system and deploying its own electric bikes under a cost- and revenue-sharing model with its for-profit equipment supplier.
Boulder Bike Share operating a system owned by a private dockless mobility company under a cost- and revenue-sharing agreement, or as a contractor.
Boulder Bike Share competing with other operators for a contract to operate a system owned by the city, county, Regional Transportation District or Via.
Boulder Bike Share entering a partnership with the winner of the city’s contracting process, using new technology and agreeing on a way to wind down the aging B-Cycle system and transfer more than 8,000 active members to a new platform.
“It’s less clear what exactly the city is trying to accomplish with micromobility,” Crouse said. “I’m thrilled about the equity components in the new ordinance. I wish there were defined metrics around reducing single-occupancy vehicles, facilitating the use of public transit, what role micromobility will play in hitting Boulder’s desired bike-share mode split.”
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