Title
A Resolution Of The City Commission Of The City Of Hollywood, Florida, Approving And Authorizing The Second Renewal Of The Agreement With Circuit Transit Inc., Formally Known As The Free Ride, For Circulator Services Under The Same Terms And Conditions In An Estimated Annual Amount Of $885,360.00.
Strategic Plan Focus
Economic Vitality
Body
Staff Recommends: Approval of the attached Resolution.
Explanation:
In partnership with the CRA, in 2018 the City Commission authorized execution of an agreement with Free Ride, now known as Circuit Transit Inc. (R-2018-335 / R-CRA-2019-38) for an amount $885,360.00. Circuit Transit (CT) provides patrons transportation services to and from Downtown Hollywood, Hollywood Beach, the City’s parking garages, and recently expanded the route to City Hall.
As of March 1st CT provided 7,062 rides to 11,278 riders. That averages 239 rides per day. CT has retrofitted its vehicles in response to community health concerns and continues to provide satisfactory service, while providing an essential service to residents during the COVID-19 pandemic. Ridership was 90% of what it was pre-COVID in January & February 2021, despite capacity being reduced by 20% for COVID related safety precautions. This means the service is more efficient and completed more app requests than for the same two-month period pre-COVID (just less people in each party).
In mid-March 2021 $1 per rider was implemented. For example, if one person requests a ride the fair is $1, if the ride request is for three people the fare is $3. Flag down rides continue to be free as they are “just along for the ride” on the route the app user requests, and the flag down rider can hop on/off along the way. As part of this transition a promo code is available in the in-app alert for all users. Although it’s only been a couple of weeks, riders are using the promo code and demand has not slowed. A more detailed update is fourth coming.
The City and the CRA jointly recommend renewal of the CT agreement for one year under the same terms and conditions, as authorized in the Agreement. Those terms and conditions have the City responsible for 1/3 and the CRA responsible for 2/3 of the annual amount.
Renewal of this agreement will be retroactive to March 5, 2021 since a 120 day extension was granted by the City Manager.
Should Broward County open an application cycle to fund community shuttles, this vendor anticipates applying under the existing Hollywood program.
Fiscal Impact:
Funding for this agreement will be shared as follows: CRA will contribute 2/3rd of costs approximately $590,240.00 from account numbers 163.638504.55200.548060.000000.000.000 and 166.668602.55200.548060.000000.000.000. The City will contribute the remaining 1/3 of the cost approximately $295,120.00 which is available in account number 336.140201.54100.531170.000000.000.000.
There is the potential for advertising revenue to offset the cost of the services. The contract calls for Circuit Transit, Inc. to pay the City fifty percent of net advertising revenue generated from ad placements on the Circulator vehicles. This would be credited proportionately to all accounts contributing to the payment of the contract.
There are currently three sponsor wrapped cars, which are projected to bring the City approximately $10,000.00. The potential for advertising revenue has been significantly impacted by COVID.
Recommended for inclusion on the agenda by:
Andria Wingett, Assistant Director of Development Services
Shiv Newaldass, Director of Development Services and Chief Development Officer
Gus Zambrano, Assistant City Manager for Sustainable Development