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2/21/2018 - STAFF REPORTS - 5.C.
PALM $a iy h G1 ti v v M hC0 1C V PMPYttO C4`/FOAN`P CITY COUNCIL STAFF REPORT DATE: February 21, 2018 SUBJECT: DISCUSSION OF THE BUZZ TROLLEY PROGRAM AND APPROVAL OF THE REMAINING TERM OF THE THIRD OF FOUR ONE-YEAR EXTENSION OPTIONS TO THE TROLLEY SERVICES OPERATOR AGREEMENT WITH MV TRANSPORTATION INC., RENEWING THE PROGRAM FOR NINE MONTHS EFFECTIVE MARCH 19, 2018 THROUGH DECEMBER 18, 2018 FROM: David H. Ready, City Manager BY: Community and Economic Development Department SUMMARY Review of the BUZZ Trolley Program relative to ridership, routes, hours of operation, revenue generation and marketing. City Council had previously extended the Trolley Services Operator Agreement for three months pending this review, and Staff is now seeking direction on the remaining nine-month portion of the third of four one-year extension options to the operating agreement with MV Transportation, Inc., effective March 19, 2018 through December 18, 2018. RECOMMENDATION: 1. Receive update on the BUZZ Trolley Program as of the end of the third program year ending on December 18, 2017. 2. Authorize staff to implement any recommended measures to streamline operations, increase ridership, reduce operating costs and generate revenue. 3. Approve the remaining nine-month portion of the third of four one-year extension options to the Trolley Services Operator Agreement with MV Transportation, Inc., in an amount not to exceed $670,000 for the remaining nine months of the fourth year of service. 4. Authorize the City Manager or his designee to execute all necessary documents. REM No.5 City Council Staff Report February 21, 2018— Page 2 BUZZ Trolley Operator Agreement STAFF ANALYSIS: On June 18, 2014, Council approved a Trolley Services Operator Agreement with MV Transportation, Inc., in the amount of $918,874 for a one-year pilot program. The agreement contains four additional one-year extension options at the mutual written consent of the parties. On November 15, 2017, City Council approved the renewal of the first three-month portion of the one-year extension option for the fourth year of service, and directed Staff to bring back additional details and statistics along with recommended measures which may improve service and ridership, reduce operating costs and generate revenue. This action seeks direction and feedback from the Council on these possible measures and the extension of the program for the remaining nine months of the fourth year of the program. BUZZ Program - Third Operating Year(December 19, 2016 to December 18, 2017) The 2016-17 operating year served just over 195,000 passengers, bringing overall BUZZ ridership to 665,800 since the launch of the trolley program in December 2014. The program served approximately 240,000 and 230,000 riders during the first and second years of operation, respectively. Trolley ridership data is included in Attachment 1. There were no significant changes in the trolley route during the third operating year, except for the extension of the route east along E. Andreas Road to Alvarado Road to service the Convention Center and surrounding hotels such as the Renaissance - Stop 26 - and a southbound stop at the Arrive Hotel - Stop 1 a — as shown in Attachment 2. The trolley program has been beneficial in providing a new visitor experience for Palm Springs' tourism brand —specifically, connecting businesses, visitors, and residents along the Palm Canyon Drive corridor; reducing downtown parking congestion; bridging long walking distances within the central business district and between outlying major hotels and the Convention Center; providing a safer alternative to drinking and driving; and likely reducing the number of vehicles on the road. A comparison of the Palm Springs BUZZ with other trolley programs is included in Attachment 3. Optimization of BUZZ Trolley Program Having completed three years of operation, we have gained the benefit of experience, customer feedback and real data to help identify improvements to both the quality and efficiency of service, as well as the costs of operation. Some options for Council to consider are as follows: �2 City Council Staff Report February 21, 2018—Page 3 BUZZ Trolley Operator Agreement 1. Operational Cost Reductions • Reduce Service Hours Reducing service hours would reduce the cost of operation while optimizing use of the service at peak demand times and days. The hourly rate of service is $51.26 per trolley; with four trolleys in operation, that is just over $200 per hour. Based on passenger counts by day, the distribution of passenger use of the BUZZ breaks down as follows: Thursday 27%, Friday 24%, Saturday 28%, and Sunday 21%. MV Transportation has been collecting passenger counts by time intervals for the last operating, which show Sunday ridership drops steadily after 6:00 pm; in fact, only 8.5% of the overall use of the service occurs on Sundays between 6:00 pm to 1:00 am. Thursday, Friday and Saturday passenger counts reveal that from 11:00 am to 6:00 pm the number of riders per hour steadily increases until peak usage is reached between 6:00 pm to 10:00 pm; however, between 10:00 pm and 1:00 am usage steadily drops. An analysis of service hour reduction measures is included in Attachment 4, and summarized as follows: o Ending Sunday service at 6:00 pm rather than 1:00 am results in annual savings of over $50,800 and estimated reduction in ridership of 8.5%. o Changing Thursday, Friday and Saturday service to start at 5:00 pm rather than 11:00 am would result in annual savings of approximately $243,000, with an estimated loss of 35% of ridership (based on passenger counts taken in the last operating year). • Reduce the Number of Trolleys in Operation Reducing the number of trolleys in operation would allow for lower operating costs while keeping the same service hours. If the current route is unchanged, a reduction in the number of vehicles from four to three would increase the waiting time between trolleys from 15 minutes to 20 minutes. However, with some route and stop adjustments, the service could be operated using only three trolleys with the same 15-minute wait time. For example, reducing dwell time at Stop 1 at Indian and Vista Chino in addition to modifying the downtown route would maintain 15-minute wait times, and based on Year 4 hourly operating rates and projected operating hours would produce an annual reduction in operating cost of over$130,000 (see Attachment 4). 03 City Council Staff Report February 21, 2018—Page 4 BUZZ Trolley Operator Agreement 2. Operational Improvements • Change the Thursday-only Detour Route ("VillageFest Detour") One of the most frequent customer complaints we receive is the slow and inconsistent service on Thursday evenings. This is a direct result of VillageFest traffic on Belardo Road. Changing this Thursday-only detour to use Calle Encilia as the southbound trolley route will greatly reduce these impacts and the walking distance to Palm Canyon Drive would be minimal. This is currently the detour route used for parades and other special events where Palm Canyon is closed at Alejo. Ultimately, once the Indian Canyon two-way conversion is complete, the southbound detour route would work very effectively on Indian Canyon Drive (see Attachment 2). • Bike Racks Install bicycle racks on the exterior of all trolleys to increase ridership from bike riders, especially given the increase of tourism and bike rentals in the downtown. • Shuttle Operation Provide special shuttle services for certain events to reduce congestion and traffic and improve the quality of the event by providing an alternative to driving. For example, in lieu of the normal route and service, a special shuttle service using one or more trolleys could operate during parades and major events to bring people to within a close walking distance to Palm Canyon Drive. 3. Revenue Opportunities • Branding/Advertising The Director of Resource Development has been working with Symblaze, the City's Branding and Marketing Consultant, to develop advertising collateral materials with pricing packages for both the inside and outside of the BUZZ Trolley. Based on the pricing structure offered for branding the BUZZ, developed through extensive research on rates charged by other public transit agencies for exterior vehicle ads, the potential annual income from sale of ad spaces is between $240,000 and $384,000 and is described in detail in Attachment 5. Start-up costs would be incurred to rewrap the vehicles but would be absorbed through the sale of ads and recovered quickly — within a few months. The rewrapping of trolleys would be timely as existing wraps have faded, and the brand could benefit from a "refresh" after three years. The rewrapping could also include some exposure of the windows to make the passengers on the inside of the trolleys visible, a suggestion that has been made by the Council Subcommittee and others. o� City Council Staff Report February 21, 2018— Page 5 BUZZ Trolley Operator Agreement The trolleys have been retrofitted with interior ad spaces and are ready to fill. Initial outreach efforts have already generated interest in exterior and interior ad buys, and as of today, the City has secured commitments from two local businesses for interior ad buys. Exterior advertising opportunities are not limited to local businesses, but rather could be targeted to any company with a local presence or interest in advertising in this market. Pricing packages and specifications are included in Attachment 5. We expect that once all ad spaces are sold, interior advertising will generate an annual revenue of approximately $40,800. • Rental of Trolleys Over the last three years, there has been a steady stream of interest in BUZZ Trolley rentals for private events or tours, which could generate extra revenue for the program. This can be achieved with minimal start-up costs and only requires development of a formal pricing structure and application process. If billed at$120 per hour, the City could expect revenue of approximately$70 per hour from rental services to offset the cost of operations. • Instituting a Fare The introduction of a fare would generate revenue for the operation of the BUZZ. Based on 2016-17 passenger counts, a $1.00 fare would conservatively generate $100,000 of revenue to fund the program; a $0.50 fare could easily generate $50,000. The cost to implement would be approximately $750 — the cost per vehicle to install a fare box. The fare boxes are secure while in place on the trolley and are designed to accept coins or bills. When the fare box is removed from the trolley at the end of the service day, the mechanism locks so that only the key holder can access the money collected. A pricing structure would need to be established if a fare is instituted. For example, Santa Barbara has a downtown-waterfront and seaside shuttle with the following fare structure: Regular one-way fare is $0.50, seniors (age 62 and over), persons with disabilities and persons with Medicare cards are $0.25, and children under 45 inches tall ride free. All fares are one-way and may be paid with coins or bills. Exact change is required since fare boxes do not give change and drivers cannot make change. 05 City Council Staff Report February 21, 2018—Page 6 BUZZ Trolley Operator Agreement City Council Ad Hoc BUZZ Subcommittee (Moon/Middleton) Recommendations: The City Council BUZZ Subcommittee met with staff to review the report and offered the following recommendations for the City Council's consideration: 1. Agree with moving the route from Belardo Road to Calle Encilia on Thursday evenings during VillageFest. 2. End Sunday service at 6:00 pm, as ridership is lowest at that time, saving approximately $50,000. 3. Reduce summer service hours and number of trolleys — savings to be determined. 4. End Measure J funding after the current fiscal year — transfer costs to the General Fund (a capped amount to be determined) in conjunction with advertising revenue to make up the gap. 5. Analysis of "local vs visitor" ridership and review of reasons why riders take the BUZZ. Ongoing Strategic Marketing Initiatives Symblaze Ongoing Support: • Provide real-time promotional and management work via social media including posting engaging content to promote the brand, report new services, special events, special hours or advising on delays, service interruptions, etc., and responding in real-time to riders on questions, complaints, or lost items. • Maintain and update the BUZZ website as needed; • Produce web-ready and print-ready tools to promote the BUZZ; • Design collateral such as colorful memes, new route maps and other pieces (up to three per month, including updates of existing pieces); • Liaising with and outreach to community stakeholders and riders and working with the City on strategy and improvements; • Create, execute and manage BUZZmail monthly newsletter; • Provide monthly web analytics reports including page views and social media metrics; • Design of programs and pricing for trolley sponsorship (exterior advertising) and onboard advertising package; • Redesign trolley wraps to artistically incorporate sponsor brands; and • Refocus effort to support programming that will generate revenue and increase ridership. 06 City Council Staff Report February 21, 2018—Page 7 BUZZ Trolley Operator Agreement • Initiate semi-annual outreach to stakeholders, most especially hotels, encouraging prominent positioning of the BUZZ on their website. City will provide content, if requested. • Install route signage in each trolley together with a message to post on social media and/or leave a review on influencer sites such as Trip Advisor or Yelp! Overall, the reviews on both sites have been very positive, especially Trip Advisor; 185 total reviews, 168 of which are marked excellent or very good. See Attachment 6 for a sampling of the ten most recent reviews. Monitor these sites regularly and respond to reviewers. • Update the 30-second BUZZ TV commercial and submit to hotels with in-room channels for inclusion in their programming. • Create content specifically for owners of vacation rentals and request that they include it on the rental site where their property is listed. This information will also be distributed to local vacation rental management companies. FISCAL IMPACT: The cost for the fourth year of operation, based on the current route, operating hours and number of vehicles in circulation is $888,300, a reduction from the first year of the pilot program due to savings in start-up costs associated with the launch of the program, training of drivers, and procurement and branding of the vehicles. Year 4 operation costs are slightly higher than the second and third year operating costs due to expected increased maintenance and servicing of the aging vehicles. In accordance with the contract with MV Transportation, should the City elect not to extend the trolley program at any time beyond the first year of the program, the City is obligated to pay the difference in the depreciated value and the market value of the trolley buses, not to exceed $24,334 per trolley (a maximum of $121,670 for the five trolley buses). The remaining nine-month term of Year 4 will be funded from Measure J Account No. 260-4500-59462 in the amount of up to $670,000, depending on Council direction on operational hour reductions. Finally, if directed to move forward with extending the program for an additional nine months, Staff will bring forward to the next City Council Meeting a contract extension for Symblaze to continue marketing services concurrent with the MV contract. 07 City Council Staff Report February 21, 2018—Page 8 BUZZ Trolley Operator Agreement SUBMITTED: Dia a R. Shay Jay VVat Director of Redevelopment Coordinator Comy and Economic Development David H. Ready, City Manager Attachments: 1. Ridership Data 2. Trolley Route and Stop Figures 3. Comparison of BUZZ with other Trolley Services 4. Operational Cost Reduction Scenarios 5. Advertising Potential Income Summary and 'Brand the BUZZ' Collateral Material 6. Trip Advisor Reviews 7. Renewal letter dated January 30, 2018 renewing the remaining nine-month portion of the third of four one-year extension options to the Trolley Services Operator Agreement (A6564) 08 ATTACHMENT NO. 1 RIDERSHIP DATA 09 Distribution of Ridership by time of day(Dec 22,2016-Dec 17,2017) ■llam-2pm i n 2pm-4pm i 4pm 6pm ■6pm-8pm I I ®8pm lOpm 1Opm-lam i { Distribution of Ridership by day of week(Dec 22,2016-Dec 17,2017) w Thursday I Friday Saturday I=Sunday 10 BUZZ Trolley Ridership by Week 7=0 S ppp ': - --- —-- 4,000 e 3,000 1 ' 2.000 ----RIDERSHIP YEAR 1 ----RIDERSHIP YEAR 2 ---RIDERSHIP YEAR 3 1,000 Dec O-g4 FED � MAR � AM � MAY � TOME � S��y � AULr l SEP � OC-r � NoU ! aEC QT T T -- - -r r-, ,- ,-r, --e -e -1— 1 1 ,- . -. - 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 7-016-17 OPt2ArtN6 YcAR r BUZZ TROLLEY RIDERSHIP Operating week YEAR I YEAR T YEAR 3 1 1,053 1,575 2,452 2 3,269 4,147 4,758 3 4,415 5,014 3,113 4 3,877 3,505 2,707 5 4,993 4,385 2,180 6 4,174 4,369 3,591 7 4,299 3,984 3,960 8 4,559 4,690 4,366 9 6,803 6,466 4,896 10 4,893 51988 4,795 11 6,820 5,627 5,069 12 5,256 5,748 4,501 13 5,678 4,945 5,223 14 5,999 7,036 6,319 35 5,519 7,032 5,259 16 5,561 7,498 5,489 17 4,703 5,124 4,019 18 4,849 4,491 4,351 19 4,494 3,935 4,605 20 4,431 4,598 4,784 21 4,404 4,335 3,960 22 4,605 5,296 4,111 23 7,494 4,407 5,154 24 4,324 7,556 3,481 25 4,353 3,559 3,916 26 4,042 3,555 2,685 27 3,898 3,235 1,435 28 4,607 3,587 2,731 29 4,027 3,651 2,037 30 5,137 2,938 2,549 31 4,449 3,260 2,819 32 5,294 3,386 3,162 33 4,111 3,839 3,300 34 4,370 3,560 2,326 35 4,543 3,489 3,051 36 4,450 3,539 2,771 37 3,314 3,432 3,017 38 5,656 5,628 2,364 39 3,758 3,936 3,416 40 4,594 3,959 4,060 41 4,779 4,191 4,027 42 4,116 4,205 3,461 43 4,944 4,522 3,916 44 3,794 4,697 4,315 45 4,156 4,141 4,378 46 4,749 4,760 5,203 47 6,650 5,435 4,181 48 3,76S 4,392 3,811 49 4,205 3,727 3,665 50 3,744 3,295 2,839 51 3,093 1,744 3,076 52 2,931 2,727 3,410 53 1,576 3,002 Total Year 239,566 231,243 195,054 Grand Total-3 years of operation 665,763 .. 12 ATTACHMENT NO. 2 TROLLEY ROUTE AND STOP FIGURES 13 0 A`'; ; E Via Escue O 0 Ivy Palm Resort Spa Rick's Restau t w & Bak iys Inn Palm Springs w Y1 The Monroe Im Springs Billy Reed's staurant 1 Bakery & B Mojave River Ac imey Cant tot 7-Eleven 8 W Vista Chino >» Las Palmas Liquor 6 '�! Stores & Markets , CL ARRIVE 0 f Via Sol 0 �1 J J s o .� � � o Desert Figure 1-Stop #1 a at Arrive Hotel 14 y fhe Tropicatr cope MgmNab r current route z US Post Office© z proposed change S n 1 n n C Pokn Span s ♦♦♦ � 3Le'r � awergon Cemer$ Spa Reson Casino r EMdronRd C +'+ lwalssarce PaMn Spr* rd r Nihon f m Sptlngs cn A ItChio Inrztda�f J� �'"P a asks R i�( ,1 Regal C nemas Q s! Palm Springs 9 ShrrmJne geli 6 Bakery;; PmCilr(•Premlrr Bank y q Q 7� '^ ShaSeys Piva Parla td „q Hard Rob Hotel Paton Springs Figure 2-Route Change & New Stop #26 at Convention Center y ' r. 15 1,L_1vtr%0 rD C a . o wspalmas vEavadera N EL MIRADOR W veredasur D Regional M cal Center z Cam Sur Katherine Finchy 2_ E Tact OLD L A S z Elementary School® E E Buer z Z PALMAS W Re al Dr < ° < 9 � m o su o n o p N Ruth o I z a Hardy Park a i x � s < s A d � THE MOVIE ETam o. C1 WMe0o0 COLONY E Via< W Crescent Dr < m Robolights O W Chino D m W Alejo Rd � g z z a 0 c) d O m D m O1 E At do Rd o ° E Ama 0 Palm Sprir a Ca o0 Conventio Palm Springs r Art Museum Renaiss ce Palm Springs E rd Rock Hotel Im Springs W Arenas R d 6Aren D n c E Sari: a 0 HISTORIC a Satumino Rd d Barist TENNIS CLUB 0 Ct°� 1e Village Racquet Club W Ramon Rd OO eMyr aps Ramor Figure 3-Alternative "Thursday-only" Detour Route - 16 ATTACHMENT NO. 3 COMPARISON OF PALM SPRINGS BUZZ WITH OTHER TROLLEY SERVICES 17 Comparison of Palm Springs BUZZ with Other Trolley Services Year Program program AnnuslCostaf Annual Operation Coal City Operator Began Fare Operation Rtdenhlp Annual Miles Contribution Il Vehicles In Feet Route unit cost per Mlle Unit cost per rider City of Santa Barbara 51 million,Metropolitan Transit Distskt 50.5 State Street Une 2.9 miles million,collected fare$0.2 and Waterfront Une 112 hour Santa Barbara ,..M1D ,... 1990 $0.50 51,700,000 520,00a 82,000.million 8(owned by MID) loop $20.73 53.27 City of Walnut Creek _. .... .. 5200,000 for fare box recovery;remaining $600.000 by Central Loop from BART station to Contra Costa 'Broadway Plaza-about2 Walnut Creek CCRA.. mid 1990s Free $500,000 _. 300,000 40,000 Transportation Authority 3(owned by CCCTA) 'milestotal $20.00 $2.67 ..Downtown Imp 12.5 miles); _. .City of Scottsdale lhnugh Miller Road loop(20 ml); Dunn 1986 the City's Transportation Neighborhood loop(10 mil; Scottsdale,AZ Transportasim.(Downtown). Free 53,000,0D0 961,00) SSO,000 Tax a 0.2%sales tax 211owned by the City) Hospitality looplZO ml) 5SAS $3.12 Orange County 13(owned by the City) Six mile loop Thurs,Fri noon Professional Transportation Authority Operates Memorial to 10 pm,Sat 10 am 10 10 Parking,Signal _ (ORA)89%and City of Day weekend though Fen,Sun 10 am to 8 pm with San Clemente HIR,CA 2017 Free $150,000 88,642 18,144 San Clemente 11% end of September pick-ups every IS minutes 58.27 52.69 _.. State S Regional Funds _ City of Laguna (60%)and Parking Fund 29(15 during summer, Laguna Beach Beads 1970S _Free $1.300,000. 800,ODD 224,000(4016) 48 during off season) North CIIH Drive to 7th Ave. $5.80 $1.63 Federal Transit._. _.... _.... _. . Administration Grant ($1SOk),City 92514 Cal State-Channel Island$25k Ora,-homeloW trope), Camarillo town Center Camarillo Area Chamber of Commerce vehicle eased by Shopping Center to Metro Camarillo Transit 2015 Free 52221000 70,800 40,000 525k operator Unk $5.55 $3.14 Cltyof Ventura,Ventura Port District and Ventura County fairgrounds; Subsidized bypaymentfor Ten mile loop from historic Downtown dedicated stops and downtown to Ventura Venture advertisement an back of One CNG veMde Harbor,pick-ups every 55 Ventura Partners(010) 2023 Free $126,0Dg 30,000 25,000 trolley (cutaway seats 15) .minutes SSA4 54.20 $SSk AQMD;$991,Meaure pilot in 2015, M Orange County Second week of June Professional no,program Transportation Authority through Labor Day Fri, Two trolleys In circulation San Juan Parking,Signal In 2016,5tatt- (OCTA)project V Grant Sat 11 am to 10 pm Sun;with pickups every 20 Capistrano Hill,CA up 2017 Free $154,000 11.000 7.644 funding 11 am to S pm minutes Fri,Sat&Sun $20,15 $14.00 Santa Crux _.. .City of Santa Cruz,Santa Trolley - Crux business and Co tsonJum,lac. organization sponsors, -Ooa CNG Veh1de Connects the Beach and a SOlC4 non- 50.25 AB2766 Grant from Memorial Day Downtown 12 pm to 8 pm profit;First exact Monterey Bay Air Quality Weekend to Labor Day with pick-ups every 30 Santa Cruz Transit lrx:_ 2024 change $ 66,000 44,500 3,000 Control District Weekend minutes $22.00 SIAS MV City of Palm Springs Five CNG Trogevstyle 10.5 mlic km around City Transportation, (Measure 11 and Palen buses,four in 11 am to 1 am with pick ups Pairs Sprirtps Inc. 2014 Free $W413.70 195,054 135,000 Springs Resorts operation yeartound every 15 minutes Thurs-Sun $6.SS $4,53 S 881,550.25 . 231,143 _ Opefating Yr.2. $3.81 _. $ 962.328.19 239,566 Operating Yr.1 $4.02 F„r S 2.728,292.13._ 665.763 _ . Average 13 years) $4.10 00 ATTACHMENT NO. 4 BUZZ TROLLEY OPERATIONAL HOUR COST REDUCTION CALCULATIONS 19 BUZZ TROLLEY OPERATIONAL HOUR COST REDUCTION SCENARIOS Hourly Rote S 51.26 Current Annual Cost $ 888,3W Annual Fixed Cost $ Annual Variable Cost $ 594,636 Ibis cost is based on the number of hours In service plus travel time from office to route II SCENARIO NI-Run service 11 am to 1 am Thursday,Friday and Saturday and 11 am to 6 pm Sunday;operate service with 4 trolleys (Estimated reduction In ridership 8.5%based on passenger counts In third year of operation) N of hours N of trolleys Weekly cost Annual Variable Cost Annual Savings Revised Annual Cost Thursday 14.5. 4 5 2,973 $ 154,600 Friday 14.5 4 $ 2,973 $ 254,600 Saturday 14.5 4 S 2,973 $ 154,600 Sunday 7.5. 4 $ 1.538 $ 79,966 _.. ... . __. . __ . .. ...... $ 543,766.....$.. 50,870 $ 937,430 SCENARIO 42•Run service 5 pm to lam Thursday,Friday and Saturday and 11 am to 6 pm Sunday;operate service with 4 trolleys (Estimated reduction In ridership 35%based on passenger counts In third year of operation) 'N of hours N of trolleys Weekly cost Annual Variable Cost Annual Savings Revised Annual Cost Thursday 8.S _ 4 $ 2,743 $ 90,626 Friday _ 8.S 4 $ 1,743 $ 90,628 Saturday 8.5 4 $ 1,743 $ 90,626 Sunday 7.5 4 5 1,538 5 79,966 _... . ... . S 351.849 $ 242,737 $ 645,513 SCENARIO N3-Run service 5 pm to 1 am Thursday,Friday and Saturday and 11 am to 6 pm Sunday;operate service with 3 trolleys (Estimated reduction In ridership 35%based on passenger counts In third year of operation) N of hours N of trolleys Weekly cost .Annual Variable Cost Annual Savings Revised Annual Cost Thursday._... _ 8.5 3.. $.. ... 1,307 $ _....67,971.. .. Friday. __. 8.5 3 $ 1.307 $ _-67,971. Saturday 8.5 3. $ 1,307 $ 67,971 Sunday _. 7.5 3 $ 1,153 $ 59,974 $ 263,886 $ 330,750 $ 557,S50 SCENARIO N44tun service 11 am to 1 am Thursday,Friday and Saturday and 11 am to 6 pm Sunday;operate service with 3 trolleys (Estimated reduction in ridership 8.5%based on passenger counts in third year of operation) N of hours iN Of trotteys Weekly cost Annual Variable Cost Annual Savings Revised Annual Cost Thursday 14.5 3 $ 2,230 $ . 11519S0 Friday ._. .... 14.5 3.. 5 2,230...$ 115,950 Saturday 14.5. 3 5 2,230 $ 115,950 _.. _.... _ _. . Sunday 7.5 3 $ 1,1S3 $ 59,974 N $ 407,825 $ 186,811 $ 701.489 O � City Council Staff Report Attachment-2/7/2018 ATTACHMENT NO. 5 BUZZ TROLLEY ADVERTISING INCLUDING POTENTIAL INCOME SUMMARY AND COLLATERAL MATERIALS 21 BUZZ Trolley Advertising Potential Income Each trolley has been fitted with 4 above-the-window frames designed to accommodate ads: • Frames are 12" high by 48" wide • Seven ad spaces measuring 12" x 24" are for sale • One ad space will be reserved for BUZZ Trolley route map • One privacy panel behind the driver (premium space) measuring 24" x 37" Potential income from the sale of these ad spaces is as follows: • 3 months at $1,200 x 7 spaces = $8400 x 4 quarters = $330600 • 3 months at $1,800 x 4 quarters = $7,200 • Total annual maximum income = $40,800 from all five trolleys combined Potential maximum income from the sale of exterior ad spaces at 2S% is as follows: • 3 months at $12,000 x S vehicles is $60,000 x 4 quarters = $240,000 Potential maximum income from the sale of exterior ad spaces at 50% is as follows: • 3 months at $24,000 x 5 vehicles is $96,000 x 4 quarters-$384,000 TOTAL MAXIMUM INCOME FROM ALL ADS= $424,800 This is gross income and does not account for the following expenses: • Printing costs for inside ads—advertisers will be send in camera-ready art; we will print 5 sets and install; cost TBA • Re-wrap costs for the trolley on both the 25% and 50% ads; current best quote received on this service is approximately $6,500 22 ' 1 ' 1 • • • • • . • . . • • . • • • . - Embraced by tourists and residents alike, the BUZZ has been and At all touchpoints, the BUZZ brand has an unfailingly The BUZZ is a i--reducing: • Cars on the road. • Downtown congestion. • The City's carbon footprint! RIDD _; LE F :. • �� f 40 i AND WHAT REALLY GETS AROUND TOW Ann 1 GIANT BILLBOARD B ' 1RD ON WHEELS, 1 1 • lm �s.9 i HAVE YOUR BRAND MESSAGING-YOURS ONLY-PROMINENTLY DISPLAYED ON A BUZZ TROLLEY EXTERIOR. • Major coverage for your brand (multiple options, • Creative consultant to help bring your brand to life on the BUZZ. • Final approval rights on the trolley wrap design. owl . . . .n? . . . . PACKAGE A: HUGE (25% COVERAGE) Marquis treatment for yourbrand-at a great value. nil 1�11F+ your brand PACKAGE B: JUMBO (50% COVERAGE) When you want to • . • ll • i � ■ice ��—� i ,,;, your brana K Y TERMS The following pricing is for a single BUZZ trolley; consideration will be extended to those seeking to advertise on 2 or more trolleys: PACKAGE A: HUGE (25% coverage) 3 months: $12,000 6 months (includes 1 refresh): $22,000 12 months (includes 3 refreshes) $44,040 PACKAGE B: JUMBO (50% coverage) 3 months (includes 1 wrap): $24,000 As mentioned above, each sponsorship includes: Creative consultant 6 months (includes 1 wrap + 1 refresh): $44,000 12 months (includes 1 wrap + 3 refreshes): $88,000 . assist you. Final approval r • on designs • • your brand. NO NO .. r'' THIS ADVERTISING SOLUTION GIVES YOUR BRAND TREMENDOUS, WIDE-RANGING, NONSTOP VISIBILITY IN PALM SPRINGS. FUN FACTS Your branded trolley will run: Palm Springs enjoys: w On a 10.5-mile route through the commercial ° 7M+ visitors per year heart of Downtown Palm Springs. • 100K+ weekend population (in season) • 56 hours/week & 243 hours/month! ° 1OK attendees at Downtown VillageFest every Thursday N CD F§ VALUE :aF � - ti .rr=y� T R RESULT?THE 1 CAPTURE HUNDREDS THOUSANDS IMPRESSIONS 1 ' ON EVERY 4-Off y 1 1 ' BOTH PEDESTRIAN AND VEHICULAR TRAFFIC. Compare aUZZ to traditional outdoor Bow Buzz Stays in fixed place. Moves constantly Geared toward drivers only. VSAccessible to all. Gets stale. Remains fresh. Becomes invisible. Continues to catch the eye. rs CONTACT wou" vow �6 to &5LCU� V We,& Love to 0M wf HARRIET BARON Director of Resource Development City of Palm Springs 760,322,8367 Harriet.Baron@paimspringsca.gov • 4,000 ride the BUZZ in 1 week. Here are the available ad spaces. Your • 17,000+ ride the BUZZ in 1 month. single ad appears on all 5 trolleys: • 50,000+ ride the BUZZ in 3 months! The BUZZ brings these thousands of Dimensions: 24" x 12" potential customers through Downtown Palm Springs and nearby . 3 months: $1,200 neighborhoods—right to your business. . 6 months: $2,160 (10%discount applied) • 1 year: $4,080 (15% discount applied) i , / Ifli`` 1. Connect with us. 2. Pick 3, 6, or 12 months. 3. Make payment to City of Palm Springs. 4. Deliver art electronically: PDF 24" x 12" or 24" x 37", full color, full bleed. And that's it—we'll take it from there! Dimensions: 24"x 37" See? Easy! • 3 months: $1,800 • 6 months: $3,240 (10%discount applied) • 1 year: $6,120 (15%discount applied) t� Have questions or want to discuss it? s Get in touch! �a PSBuzz@palmspringsca.gov 76O.322.xxxx 32 ATTACHMENT NO. 6 TRIP ADVISOR REVIEWS 33 o tripadvisor The Buzz 186 Reviews—4.5 out of a possible 5 rating 913 of 120 things to do in Palm Springs 1 - 10 most recent reviews as of 1/30/18 io Maureen S London,Canada Reviewed 2 days ago treat Free: Transportation ft>r F7uwntoivn Area My girlfriend came to visit us for 10 days and there were days where my husband needed our car so we caught the free Buzz transportation and jumped on and off at our leisure. Good way to show the downtown area and the buses are clean with friendly drivers who are very knowledgable. Good Job Palm Springs. threetravelers285 Kennewick,Washington Reviewed 5 weeks ago treat way to get doAntmin. Very handy free shuttle to get to Village Fest and downtown. Friendly and helpful shuttle drivers. Stopped every 15 minutes. So easy to use and saved us from hunting for a place to park. Plichimous55 Puerto Vallarta, Mexico Reviewed December 24,2017 Shuttle around Great way of getting down to the heart of Palm Springs, free, and the drivers are friendly as well as knowledgeable 34 1 kaledoniain Vancouver Reviewed December 24,2017 via mobile Take The Buzz Used Buzz a few times from hotel to downtown. Buzz bus was clean and heated. Wish they ran it to the airport.Needs more ridership so city hall don't cut the service in the next budget. Leah C Vancouver,Canada Reviewed December 11,2017 perfect way to get around! A great way to get around! Easy to use and free! What more can you ask for?? Lots of stops and super friendly (and helpful!)drivers. H. Pat0514 Oakville, Canada Reviewed November 20,2017 Convenient We took the Buzz the night of the Villagefest as it was recommended we try not to drive in and park. It was convenient and on time. 35 sfdann Salt Lake City, Utah 580217 Reviewed November 20,2017 Made our trip So grateful for this awesome free trolley -it made our car-free getaway possible and was so convenient, fast and friendly. Not every town operates something this excellent and we are huge fans. Friendly drivers and convenient routes and times. Well done, Palm Springs! R,,5m, Loreen H Topton, Pennsylvania 10219 Reviewed November 18,2017 Great free PS Ims ill tovyn Local way to travel up and down the main shopping area of PS. It is free and makes it easy to visit PS without worry about parking. Karin 0909 Pretoria,South Africa 12165 Reviewed November 15,2017 Friendly and r•clillf& service! This free service got to receive my praise! We were waiting at the Tennis Club for the BUZZ and since there were construction works in the road leading to the bus stop, the BUZZ could not access the road. While we were waiting, a worker in a truck passed, enquiring if we were waiting for the BUZZ. He then arranged for the BUZZ to take an alternative route-even went as far as to arrange with the valet at Spencers' to make a u-turn,just to accommodate us. I feel that is 'going the extra mile'and while we used the BUZZ a few times over the weekend, we can confirm that this great, free service simply exceed the expectation -on time, friendly and reliable! You get my thumbs up!! 36 r~ " �,r.. Vagabond2be Suwance, Georgia 42489 Reviewed November 3,2017 via mobile ll.q (Jest o le L(«Pl bearings If you arrive Thursday to Sunday, do the Buzz shuttle first thing. Ride the whole route to get your bearings in the city and start choosing restaurants and stores you want to return to. You tell the driver when you get on where you want to be dropped off. He or she will do so at the closest Buzz stop. It's free but common to drop a$1 per person tip. Look for the big pink signs along the major streets. You can download the app to see where the trolleys are on the route. One arrives about every 15 minutes. Ii 37 ATTACHMENT NO. 7 RENEWAL LETTER- MV TRANSPORTATION, INC. 38 �PAtM Sp -y City of Palm Springs Community and Economic Development Department • QW)I. Too quitz Canyon A5y • Palm Spt,ngs.C.th(urma ')"6' �r .• TLL (-60)323 8259 • rdx 176111 322 H325 •TD)('61g N(t I.75?' t' � o�.tta a`'• �P l'mnmunnl 1lukachq�nc�t A}amy•G,mm.tmt) MkIIIJuncnt IN�t Gt_m Q�/I:0 RN llomn n v,n 1)...hynnuu •I.unuamc Uaa.lopmun •lk,tof•pn4Nt. Art January 30,2018 MV Transportation, Inc. 5910 N.Central Expressway,Suite 1145 Dallas,TX 75206 Attention: Judie Smith,Area Vice-President The City Council of the City of Palm Springs unanimously voted on November 15, 2017 to extend the contract with MV Transportation, Inc.for operation of the BUZZ trolley for the first three months of the one year extension option. The City desires to continue operation of the BUZZ trolley service for the fourth year of operation. Please be advised that the City wishes to exercise the remaining portion of the third one-year extension option for a period of nine-months, effective March 19, 2018 through December 18, 2018. Thank you for the ongoing excellent services that MV is providing for operation of the BUZZ trolley service. Sincerely, Diana Diana R. Shay, Redevelopment Coordinator AGREED: APPROVED: MV TRANSPORTATION INC. CITY OF PALM SPRINGS By: By: Its: Its: Post Office Box 2743 0 Palm Springs, California 92263-2743 39 Joan Bove Forrer Michael E. Guerra, Esq. 457 W. Arenas Rd. eIi -. ' . Palm Springs,CA 92262 y 805-455-4982 2016 FE83 20 32 February 19, 2018 Hand Delivered Mayor Robert Moon and Councilmembers Geoff Kors, J.R. Roberts, Lisa Middleton and Christy Holstege 3200 E. Tahquitz Canyon Way Palm Springs, CA 92262 Re: The BUZZ Trolley Program Should Be Discontinued - Agenda Item 5.C., February 21, 2018 City Council Meeting Dear Mayor Moon and Councilmembers Kors, Roberts, Middleton and Holstege: I am writing on behalf of Joan Bove Forrer and myself. We are both full-time voting residents of Palm Springs living in the Historic Tennis Club Neighborhood. We urge you to discontinue funding and operation of the BUZZ trolley program. Over the past three years the city has wasted almost $3,000,000 on this flawed program. The February 21, 2018 BUZZ Trolley staff report provides sufficient facts to conclude that the BUZZ program is an economic and operational failure. The nearly $1 million a year overall cost of the BUZZ trolleys could be put to much better use. The current cost per rider stated in the staff report for operation of the BUZZ buses is $4.53 based on "cost of operation" divided by ridership. (Staff Report, pp. 12 and 18 - [cost of operation $884,413, 195,054 riders].) This operational cost per rider is prohibitive and not economically sustainable for our city given the financial condition of Palm Springs.' ' The staff report presents information on the amount of the "Operator Agreement", "cost of operation" and "cost" for the BUZZ buses related to MV Transportation, Inc. (Staff Report, pp. 1, 21 7, and 18.) However, we cannot find in the staff report mention of the "cost" of the BUZZ program for past or current consulting services agreements with Symblaze, Inc. (See Staff Report, p. 4—"Director of Resource Development has been working with Symblaze, the City's Branding and Marketing Consultant...") The yearly consulting cost should be included in calculating the city's overall cost per rider. Mayor and City Council February 19, 2018 Page 2 of 4 As you know, BUZZ ridership is measured by a "pickup" at a stop. Thus, a single person, staying at the Riviera who is picked up at that stop, and who is dropped off downtown at the Village Green stop, and then later returns as a pickup from the Village Green stop is operationally costing the city $9.06 for that simple round trip. This is an exorbitant expenditure. The city should not be subsidizing outlying hotels. Moreover, even a rider who only goes a few blocks on the BUZZ bus still costs the city $4.53 for that pickup. This is not economically sustainable and becomes more obvious when riders get on and off the BUZZ buses multiple times in a trip. For example, consider a group of four(4) Riviera patrons traveling on the BUZZ from the Riviera to downtown (4 pickups), getting off downtown, then back on to the BUZZ (4 pickups) continuing onto the Saguaro and finally back to the Riviera (4 pickups at the Saguaro). This roundtrip involves 12 pickups (calculated as 12 riders), thus costing the city $54.36 for that four person two-stop round trip. If the Riviera and the Saguaro felt there was a need, these hotels could easily provide their patrons with an in house on-demand shuttle service, as opposed to the city tax payers footing the bill for this outlying hotel perk. Or, the Riviera and Saguaro patrons could take the Sunline buses into downtown. The end of the BUZZ program will not leave Palm Canyon and Indian Canyon without public transit. The BUZZ bus route in many locations duplicates and overlaps much of the Sunline route on Palm Canyon and Indian Canyon. Finally, the city does not know how many discreet persons use the BUZZ trolley on any day or weekend or whether the riders are visitors, residents and/or employees of the various hotels and business on the route. As pointed out above 12 "riders" may only be 4 persons getting on and off the BUZZ multiple times. At the very least the number of"persons" using the BUZZ is half the ridership ("pickup") number. At worst, the ridership number should be divided by 3 or 4 to arrive at the number of discreet users (persons) in a day or weekend. Besides being a wasteful economic perk mainly for the outlying hotels for which the city's taxpayers are footing the bill, the BUZZ program is an operational failure. Even with Palm Springs booming, ridership on the BUZZ buses has decreased year over year and has dropped 44,512 riders (down approx. 19%) from "Year 1" to "Year 3" (239,566 to 195,054). (Staff Report, p. 12.) Mayor and City Council February 19, 2018 Page 3 of 4 The staff report does not address directly why the ridership is down so much even with the city booming. The staff report suggests ways it hopes to increase ridership (i.e. more advertising). However, we suggest ridership is down for reasons related to inherent problems with the route, buses, need, weather and competition. More advertising will not cure these problems. First, the BUZZ route loop split between Palm Canyon (southbound) and Indian Canyon (northbound) (one way in each direction with a block separating the south and northbound legs of the route)probably depresses ridership. This separation of north and southbound legs requires additional and probably inconvenient effort for a rider to merely change travel directions (i.e. return to where they started). For example, a person seeking to return to a location where they started north of the Village Green stop must either ride the BUZZ all the way south (adding unnecessary travel time) or walk the distance from Palm Canyon to Indian Canyon and then find a stop and then wait for a bus on Indian Canyon. The split route creates a barrier to ease of use and increases overall trip effort and trip time for most return trips (either north or southbound). Second, it is our observation that with such great weather for 6 to 8 months of the year in Palm Springs, visitors and residents in proximity to downtown like to walk into downtown and along Palm Canyon, but not ride. Third, the impact of an increasingly hotter climate and the intensity of the sun during the recent summers is likely depressing ridership during the summer months and it will continue to be a problem into the future. The chart on page 11 of the staff report (BUZZ Trolley Ridership by Week) shows a significant drop off in ridership between summer Year 1 and summer Year 2 and an even greater drop off for this last summer (Year 3) versus summers Year 1 and 2. Fourth, it is possible that since the launch year of the BUZZ in 2014, the more convenient on-demand ride hailing services like Uber and Lyft have become popular alternatives to the BUZZ and these services have taken ridership away from the BUZZ buses at all times during the year. Similarly, it seems probable that ridership is down because the novelty of the BUZZ from the first year has worn off. Visitors and residents who tried the BUZZ during the hype of the launch year have decided it does not suit their needs, is inconvenient and/or is time consuming and those first-year riders have abandon using the BUZZ and are opting for more convenient alternatives that suit their needs. Mayor and City Council February 19, 2018 Page 4 of 4 Finally, the buses themselves may be contributing to suppressing ridership. The city should consider that the buses themselves are not inviting. Oddly, the BUZZ buses windows are wrapped so it is not possible to see into the buses from the outside. (See Staff Report, p. 4.) Because the windows are covered up we have heard the BUZZ buses described as "scary" and "creepy." The City of Palm Springs BUZZ program is too expensive at almost $1 million dollars a year and an operational failure having dramatically lost 44,512 riders in just two years. The BUZZ trolley program is not economically sustainable and is operationally flawed and the program should be ended. fully submitted, oan a Forrer MI ael E. Guerra, Esq. cc: City Manager David Ready, Esq., Ph.D. THE HISTORIC TENNIS CLUB NEIGHBORHOOD ORGANIZATION 611 S. Palm Canyon Dr., Box No. 7220 Palm Springs, CA 92262 htcno.communication@gmail.com Np - m Hand Delivered rTj '7 February 19, 2018 C:' Mayor Robert Moon and Councilmembers Geoff Kors, J.R. Roberts, co Lisa Middleton and Christy Holstege w City of Palm Springs N 3200 E. Tahquitz Canyon Way Palm Springs, CA 92262 Re: BUZZ Trolley—Request to End the BUZZ Program, February 21,2018 City Council Meeting Agenda Item 5.C. Dear Mayor Moon and Councilmembers Kors, Roberts, Middleton and Holstege: The Board of Directors of the Historic Tennis Club Neighborhood Organization urges you to end the economically wasteful BUZZ trolley program. The almost$1 million a year spent on the BUZZ trolleys should be saved or used instead for funding deserving and needed programs. Along with the fact that the BUZZ trolley program is economically wasteful, it should be noted that the original November 20, 2013 recommendation by city staff and the ad hoc group of hotel General Managers (Trolley Committee)was to run the BUZZ buses from 5:00 p.m. to l:00 a.m., Thursday through Sunday, from the Riviera to the Parker Hotel. No detour into the Historic Tennis Club neighborhood was included. (See, City Council Staff Report,November 20, 2013, Agenda Item 5.A., pp. 1-3.) Nevertheless, the BUZZ buses were and are routed through our peaceful neighborhood. From March 1, 2015 to March 15, 2015, the Historic Tennis Club Neighborhood Organization (HTCNO) conducted an email survey of 250 neighbors in the Tennis Club Neighborhood on whether they were for or against the BUZZ buses running in the Tennis Club Neighborhood. We received 80 responses. Twenty (20)responses indicated they were for having the BUZZ buses run through the Tennis Club Neighborhood,but sixty (60)responses indicated they were against the BUZZ buses running in the Tennis Club Neighborhood. Finally, generally the BUZZ trolley program has not lived up to the city's expectations of usage. A causal observation of the buses traveling on city roadways shows that few people use the buses as the BUZZ buses appear to be mostly empty during the times that this Board's members have observed the buses. It is time to end this costly and wasteful program. Sincerely, The Board of Directors of the Historic Tennis Club Neighborhood Organization CC: City Manager David Ready, Esq., Ph.D. n/� -- /I V`' `a4rr)a�