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Home My WebLink About02/28/2019 Study Session - El Paseo Courtesy Cart Program .............. ..•...• • • CITY OF F 11Lffl DESERT 54 73-510 FRED WARING DRIVE• (� PALM DESERT, CALIFORNIA 92260-2578 \ 1 w �I� !� TEL: 760 346-0611 FAX: 760 341-6372 .,••°,f►Z a£ ;'E ' Rachelle Klassen infoC�palm-desen.org NOTICE OF STUDY SESSION OF THE PALM DESERT CITY COUNCIL NOTICE IS HEREBY GIVEN that the Palm Desert City Council will convene for a Study Session Thursday, February 28, 2019, at 2:00 p.m. in the Administrative Conference Room of the Palm Desert Civic Center, 73510 Fred Warinq Drive, Palm Desert, California 92260. Said Study Session will be for the purpose of discussing the El Paseo Courtesy Cart Program. RAC ELLE D. KLASSE , ITY CLERK CITY OF PALM DESERT, CALIFORNIA February 21, 2019 NO ACTION WILL BE TAKEN AT THE STUDY SESSION. PURPOSE OF THE STUDY SESSION IS INFORMATION ONLY. "PAINIFD DN AEC/QED P.VFI EL PASEO COURTESY CARTS ,,..„ . .,. , . ., ..4“ I* Vit**•'• '' it .,. Nib ! .- r'. ! y ', -7 Study Session Goals Direction from the City Council on the following: Retain existing program y Add Application (App) r Contract with outside vendor Expand program off El Paseo Allow advertising oal % _ H istory of the Courtesy Carts➢ Shopper Hopper Program ,„. • Endedin 2008 • Palm Desert hotels & shopping areas ➢ Courtesy Cart Program • Began in 2004 "°�'t„,w," 1 I' ar-V '0 - w4- • El Paseo between Portola Avenue & ii High way 74 i " y�., • Current Carts purchased in 2013 ► 0 411/t -:* Cu rrent Courtesy Program ➢ 2 carts operate daily 11 a.m. - 6 p.m. y October through May y Third cart, available on request (ADA & special events) Hailed or picked up at 8 designated stops General Fund monies Contract expires in May 2019 - • I`\ z 's Annual Ridership Month 2016/2017 2017/2018 2018/2019 October N/A 2,206 3,089 November 3,420 3,670 3,720 December 3,529 3,782 3,841 January 4,962 4,487 4,588 February 6,020 5,982 N/A March 6,822 6,672 N/A April 5,342 5,640 N/A May 2,160 3,930 N/A Total 32,255 36,359 N/A FY 2018,, . /. 2019 Program Costs $ 115,500 - Operation of 2 carts and Maintenance $21,000 - Insurance (3 carts) ; $ 136,500 - Total FY Budget aier • . • : p ••••••• 14 , • . me; 2„ /44 ' ' *-7•••I , IF • NO'i .171.L" ..44 *Or S- fri;IWID .4141 1 #111 " •4. '`.6 • '1P, 171441°14 IAN -.4111116 oL11.41, •_1r • it . - --441.11," Options for Fiscal Year 2019/ 2020 Cu rrent Courtesy Ca rts Maintain existing program 2 Carts Operate daily from 11 a.m. - 6 p.m., October - May • Seating for 10 riders • Third cart available on request (ADA accessible) • $140,000 annually (est.) 3 Carts ➢ Operate on the same schedule as above. • Seating for 13 riders • Increases visibility • Increases ridership potential • :. • $197,500 annually (est.) *An advertising component could be layered onto either of these options. Courtesy Carts + Basic App Add an App to allow tracking of cart locations and receive notification when a cart is arriving. 2 carts - $155,000 (est.) in Year 1 & $140,000 (est.) in Year 2+ 3 carts - $212,500 (est.) in Year 1 & $197,500 (est.) in Year 2+ Operational costs + $15,000 for app in Year 1 only No app fee for Year 2+ *An advertising component can be layered onto this option. Courtesy Carts + Comprehensive App Add an App to allow people to track cart locations, receive notification when a cart is arriving, and request a pick-up. 2 carts - $170,000 (est.) in Year 1 & $155,000 in Year 2+ r 3 carts - $227,500 (est.) in Year 1 & $212,500 in Year 2+ Apo *An advertising component could be layered onto this option. <` Outside Vendor Own, operate, maintain, and insure carts. Free Ride Everywhere Downtown (FRED) & Round the Town. - Includes App to request rides. y Advertising on the exterior of carts to offset program costs. Ads can be reserved for City generated content only (fora premium). v J Per the City Attorney, advertisers can be limited to a 4 geographical area (i.e. El Paseo). R P C3� , 1 additional hour of operation daily. C3 n D `' Sri ,etstue . ... :., - .tif., : ..„ . - ... Round the Town ...... ...ro----411 I 11.11111011•01110, ..dem ) .p" 1411 — e pelBlutP Wei r 1 I ilit , - , , 11P. illf . .' 411111111.-" JETBLUE. ,;, .• myjetbluec b; it • 1.441Th 6:t. AO NOW WALL -SIZ,ED - - jet:* • (iay ...41i --'" ''' ''‘ • I 41! 410 jetEllueCaq t 0, • • A, • a •• t ' 7 " IS / ___ RI. 4....„ ( • . _ . ..trilioe— 'i *eft ' IIN,I11- 44Slihr'' # 1 , ' I 77 29200„„ROAD . . ........„„ 577.0;A Free Ride Everywhere D ----— ..1 C 0.0 40 1710-, ... .. ... ..... • I _ .........„„- Estimated Costs for Outside Vendor Number of Carts 2 3 Hours/Months 8/8 8/8 Monthly Seat Capacity 7,680 11,520 Max Annual Funding Needed if Advertising is Paid in Full by $184,830 $264,122 the City Ad Sales Projected $48,000 $72,000 Revenue Share (Service Credits) - Est. -$19,200 -$36,000 (40%) (50%) Max Annual Funding Needed if Outside Advertising is Allowed $165,630 $228,122 *80% of Operational Expenses allocated to jobs and employee-related expenses. 1 Outside Vendor/ Downtown Corridor ‘,=. Own, operate, maintain, and insure carts. Circulation off El Paseo (i.e. San Pablo, Westfield, and The Living Desert Zoo and Garden). Requested pick ups. y Not recommended by staff at this time. . , a , Ian Cost Comparison Year 1 Year 2+ Year 1 Year 2+ 2 Carts 2 Carts 3 Carts 3 Carts Current Carts $140,000 $140,000 $ 197,500 $197,500 Current Carts - Basic App $155,000 $140,000 $212,500 $197,500 Current Carts - Comprehensive App $170,000 $155,000 $227,500 $212,500 Outside Vendor $184,830 $ 184,830 $264,122 S264,122 Outside Vendor - Advertising Credit $ 165,630 $165,630 $228,122 $228,122 Circulate off El Paseo TBD TBD TBD TBD Marketing Costs ';,= Cart identification signage - $15,000 (if currents-carts are used) $10,000 — street decals & rack cards `""RF`rART or - , $20,000 - street decals, rack cards & geo- fenced digital campaign FRFF s e ims at EL PASEO • • • • PAl M PCSERT • • • • • • Flag down our FREE COURTESY URT and rra�d the entire EI Pauo Shopping&Dining Dimic! El Paseo Business Improvement District The EPBID Board received a presentation from staff on February 21. Recommended the following: ➢ Retain existing carts ➢ Operate 3 carts daily October - May ➢ Add an app that allows people to track cart locations and receive notifications when a cart is arriving. The Board had concerns about allowing advertising. ➢ If advertising is allowed - El Paseo businesses or City 1 EL PASEO_ 7 only. Staff Recommendations > Retain current 2 cart program - Identification signage on carts Basic app to track cart locations and notification of arrival ➢ Explore advertising inside carts Circulation limited to El Paseo , , _ ,„....41444. iri co L,