Loading...
HomeMy WebLinkAbout10/6/2026 Item 6c, Hermann and Read - Staff Agenda CorrespondenceCity of San Luis Obispo, Council Memorandum City of San Luis Obispo Council Agenda Correspondence DATE: October 6, 2026 TO: Mayor and Council FROM: Greg Hermann, Deputy City Manager Prepared By: Chris Read, Sustainability Manager VIA: Whitney McDonald, City Manager SUBJECT: ITEM #6C – 2026 COMMUNITY BIKESHARE PROGRAM – REQUEST FOR PROPOSALS Staff received the following questions regarding the draft community bikeshare request for proposals. The questions are below with staff’s response shown in italics: 1. Will there be a clause in any final agreement that includes the ability for the city to “opt out” of the agreement if the selected vendor does not meet certain performance metrics or requirements? For example, I could see a requirement to ensure maintenance requirements are met, availability of bikes across the service area or that bikes are left in appropriate, agreed upon locations? Yes. The Operator Agreement (RFP Exhibit A, Section 17) allows the City or Cal Poly to terminate the agreement at any time, for any reason, with or without cause, by giving written notice. The Operator would then have 90 days to remove all equipment and restore City property to its original condition. Section G.2 of the RFP also allows termination if the Operator breaches the Operator Agreement or the Service Level and License Agreement. The specific performance standards mentioned in the question will be defined in the City's Service Level and License Agreement. These include (but are not limited to) maintenance, bike availability across the service area, and proper parking. RFP Section C requires that agreement includes escalation procedures, response timelines, and enforcement mechanisms for improperly parked bikes, customer complaints, and vendor non-performance. The Operator must also submit quarterly reports tracking performance against those standards (RFP Section B.18). Because the City's Service Level and License Agreement will come back to Council for approval, Council will have the chance to review those metrics and consequences before the program launches. ITEM #6C – 2026 COMMUNITY BIKESHARE REQUEST FOR PROPOSALS Page 2 2. Can you please explain what the “minimum age requirements, helmet use programs, and/or speed governance in sensitive areas” terms mean on page 32 of the packet? The terms are defined as follows: • “Minimum Age Requirements” set the youngest age at which someone can register and ride. Bikeshare systems commonly require riders to be 18. • “Helmet Use Programs” encourage riders to wear helmets. Examples include free or discounted helmets for system users, helmet giveaway events, and in-app reminders or incentives. • “Speed Governance in Sensitive Areas” refers to the use of GPS to automatically reduce a bike's top assisted speed in designated zones, such as parks or on busy multi-use paths. 3. The RFP also allows bidders to provide “functional equivalent” proposals should they be able to provide sufficient justification for an alternative approach. Can you explain what this means? If a bidder believes a particular RFP requirement is not feasible, could have unintended consequences, or is not the best approach, the bidder may propose an alternative that achieves the same goal. The bidder must explain and justify the alternative (RFP Section B and Section H, Alternative Proposals). For example, a bidder could propose virtual docks instead of physical docks, or a different approach to rider safety than the examples listed. This flexibility is intentional. Staff's research after the 2024 RFP found that prescriptive requirements limited the number of viable bids. Any alternative still must meet the program's goals and objectives. There are two checks to make sure these approaches are aligned with the City’s expectations: 1) consistency with objectives will be assessed by the review committee, and 2) the final terms would be set in the Service Level and License Agreement, which requires Council approval. 4. Does the Office of Sustainability and Natural Resources Office still have the capacity to manage this project through launch given the upcoming staff transitions? The Office of Sustainability and Natural Resources (SNR) would lead the project through launch, including procurement, contracting, and outreach. SNR has a dedicated College Corps Fellow for this work and is in the process of hiring a limited-term contract position to backfill office capacity during a staff member’s planned leave. SNR has allocated sufficient time to effectively run the procurement, contracting, and additional outreach efforts and will also use a team- based approach with other City departments as needed given the transitions. ITEM #6C – 2026 COMMUNITY BIKESHARE REQUEST FOR PROPOSALS Page 3 After launch, the Public Works Active Transportation Manager would serve as the City's liaison to the Operator, with support from SNR staff. The Operator is contractually responsible for running a self-sufficient program, including handling all user requests and equipment issues. In the operational phase of the project, impacts on Citywide staff capacity are expected to be minimal. Staff in peer cities with similar programs report spending about one hour a week or less once their programs were running. 5. Right now, the language states in the RFP and the staff report: Proposals that establish a commitment to utilize local labor and businesses for maintenance and repair support are encouraged. Is it possible to change this language to require the use of local labor and businesses for maintenance and repair of equipment, if available? Rather than just “encouraging” local labor use? The 2026 RFP includes an expectation for a local presence with flexibility on timing. Under Section B.14 (Organizational Development), each bidder must describe where its team and office/warehouse space will be located, and how those resources will be located within San Luis Obispo County (and ideally in the City) over time. Bidders must also identify their local operations team and qualifications (RFP Section H, Qualifications). In the proposed draft RFP language, Operators are not immediately required to have a local team and facility. A new operator entering a small market like San Luis Obispo may need to launch with support from an existing regional operation and then build local staff and facilities as ridership grows. Requiring a fully local workforce from the start could make the program financially unworkable for bidders and reduce the number of viable proposals. Instead, the RFP asks each bidder to show its path to a local presence, and proposals will be evaluated on that plan. The language in Section B.16 encouraging the use of local labor and businesses for maintenance and repair works the same way. It rewards bidders who commit to local labor while leaving room for operators who rely on their own trained technicians for specialized e-bike and battery work, especially in the early stages of the program. If Council would like firmer commitments, staff could set specific milestones for establishing local staff and facilities in the City's Service Level and License Agreement, which will come back to Council for approval. However, Staff recommends weighing these additional requirements with potential impacts to program feasibility. ITEM #6C – 2026 COMMUNITY BIKESHARE REQUEST FOR PROPOSALS Page 4 6. In the previous RFP, I believe that inclusion of way-finding signage was a required element. In this RFP, it is only preferred or encouraged? Why did we not keep that requirement in this RFP, when it was requested by the ATC in the last RFP? In 2024, the ATC recommended including wayfinding signage as an evaluative criterion in the additional points section, and the 2024 RFP listed it among the optional elements eligible for additional evaluation points rather than as a requirement. The 2026 RFP keeps that same approach: wayfinding signage remains one of the Additional Bikeshare System Elements that can earn bidders additional points. The RFP also requires the Operator to provide a real-time public map showing the location and status of every bike and station (RFP Section B.11), which serves a similar purpose for riders.