AGENDA #4d
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TO: |
Roger L. Stancil, Town Manager |
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FROM: |
J.B. Culpepper, Planning Director David Bonk, Long Range and Transportation Coordinator |
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SUBJECT: |
Performance Agreement for a Community Bicycle Loan Program |
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DATE: |
March 26, 2007 |
The attached resolution would authorize the Town Manager to execute on behalf of the Town a performance agreement to set up and operate a community bicycle loan program. Enactment of the attached ordinance would appropriate $15,000 from contingency funds in the 2006-2007 Budget.
On May 10, 2006 at the Public Hearing on the Recommended Budget for 2006-2007, the Council received a request for funds from Dennis Markatos-Soriano, operations manager of Students United for a Responsible Global Environment (SURGE), concerning a proposed Community Bike-Loan Program.
A Budget Working paper for the Public Hearing recommended that the request for funding be referred to the Bicycle and Pedestrian Advisory Board for consideration and a recommendation to the Council. It advised that if the Council ultimately decided to fund the request, the Council’s contingency account would be available.
On June 27, 2006, the Bicycle and Pedestrian Advisory Board received a presentation of the proposed program, including business and financial plans, from Dennis Markatos-Soriano of SURGE and Chris Richmond of the “ReCYCLEry.” The Board endorsed the goals of the program and supported the request for funds to start up and operate the program.
On September 11, 2006, the Council considered a request for funds to set up and operate a community bicycle loan program and directed the Town Manager to begin discussion of a performance agreement with Students United for a Responsible Global Environment (SURGE) to provide a Community Bicycle Loan Program (Attachment 1). Attachment 1 describes the program and provides a discussion of issues concerning how the community bicycle loan program will operate. The Council requested a follow-up report providing details of a performance agreement for its consideration. The Council encouraged SURGE to pursue funding from the University and from the Town of Carrboro for the program.
The Community Bicycle Loan Program launched a limited program September 11, 2006. The program is to provide an alternative service of transportation for citizens, commuters and visitors to Chapel Hill, using a “hub” program where users check out a bicycle from an attendant at a hub. Hubs are currently located at two downtown locations in Chapel Hill, at the 3 Cups coffee shop on W. Franklin Street and the Skylight Exchange on W. Rosemary Street. Five or more loaner bicycles are available at each hub. If additional funding is secured, four more locations are planned at various Chapel Hill/Carrboro locations including the University Student Union. The program would ideally like to provide hubs dispersed around the town, such as on Martin Luther King Jr. Boulevard, to provide the service to as wide a geographical area as possible. Users register for a fee and get a program identification card, and then visit any of the designated hubs around the community to sign out a bicycle. The program works like a lending library for bikes.
SURGE has an initial goal of serving 100 members. Since the program began it has attracted 45 members. SURGE believes that providing additional hubs dispersed through out the community will attract greater membership. Attachment 2 is a report provided by SURGE, which sets out financial support received to date from grants donations, fundraising and membership; it also outlines activities since the program was launched.
On September 11, 2006, SURGE outlined its initial request for funds for the program. Attachment 3 is the program’s initial projection and budget for set up and operating costs. The Council directed the Town Manager to begin discussion of a performance agreement with SURGE to provide a Community Bicycle Loan Program and encouraged SURGE to pursue funding from the University and from the Town of Carrboro for the program. The following outlines what other financial commitment SURGE has been able to secure for 2006-2007:
University: SURGE indicates it has been involved in conversations with the University in order to locate one to two hubs on campus. However, without providing hubs on campus at this time, SURGE has not asked the University for funding for the program. SURGE indicates progress is being made with the University’s Student Union as a potential hub to come on line this spring, and once that happens, SURGE plans to approach the campus administration for funds.
Town of Carrboro:
SURGE indicates it approached the Town of Carrboro for funds last fall. At that point the budget request cycle had already ended for 2006-2007, and no discretionary funds were available. SURGE was advised by Carrboro staff to seek funds through a Human Services grant for 2007-2008. SURGE indicates it will be making a Human Services grant application to the Towns of Carrboro and Chapel Hill and Orange County for operational funds in 2007-2008.
Others: Since September 11, 2006, SURGE has sought and received funds from other sources to support the bicycle loan program. SURGE received $6,250 in direct financial support for the program including a grant of $2,500 from the Wide Waters Fund through Triangle Community Foundation, $3,000 from the Legacy Group through fundraising and individual donations, $750 from the ReCYCLEry through bicycle sales, and $400 in Membership dues collected. In addition, the program has received $3,000 in indirect funding through donations to the ReCYCLEry - $2,500 from the Tarwheels Cycling Club and $500 from REI. With this funding SURGE has launched and provided a limited program from two hubs located in downtown Chapel Hill.
Funding Request to the Town of Chapel Hill for Financial year 2006-2007: The funding request is for the current financial year 2006-2007. We understand that SURGE will also be seeking operational funds in 2007-2008 for the community bicycle loan program by making a Human Services grant application to the Town of Carrboro, Chapel Hill and Orange County. If the Council decides to provide funding for 2006-2007, there is no guarantee of future funding from the Council for the program.
Notwithstanding that SURGE has managed to launch a community bicycle loan program without funds from the Town, SURGE advises that the program is currently limited by the number of hubs and their geography. Funding from the Town would help the program to expand the number of people that could be served and provide hubs dispersed to other locations in the Town. Funding would also assist with outreach and publicity efforts to bring the program to the attention of citizens and potential program members.
As requested by the Council on September 11, 2006, we have prepared a performance agreement to provide SURGE with $15,000 to set up and operate a community bicycle loan program during 2006-2007.
The request is for $5,000 to set up the program and $10,000 to operate the program. As a limited program was set up in September 2006, we believe the $5,000 set up portion of the request should be used to provide at least two more hubs in Chapel Hill. These additional hubs should be provided in locations geographically removed from the two existing hubs located in the downtown. We believe the $10,000 portion of the request, which is to operate the program, will allow the program to expand service to additional hubs in Chapel Hill; it will also assist with paying for publicity and promotional costs in addition to the operational costs incurred for the year to date through June 2007.
The performance agreement requires that SURGE provide acceptable records and a report to the Council outlining how it has served Chapel Hill citizens. Ten thousand dollars would be paid initially on approval of this performance agreement, with an additional $5,000 paid after May 31, 2007, if the Council receives from SURGE a satisfactory annual report of program operations.
The key terms of the agreement are as follows. The full agreement is Attachment 4:
Provide services to citizens of Chapel Hill using Town funds to administer and promote the program, establish and maintain at least four hubs in Chapel Hill off campus (two in locations geographically removed from the two existing hubs located in the downtown), to equip and maintain bicycles to a roadworthy standard, provide liability insurance, provide safety and education information to riders, maintain a system of user registration, secure and shelter the bicycles.
A discussion of issues concerning how the community bicycle loan program will operate were discussed in the memorandum to the Council dated September 11, 2006 (Attachment 1).
The attached resolution approves a performance agreement for funds to set up and operate a community bicycle loan program, and the attached ordinance would approve appropriation of $15,000 from contingency funds in the 2006-2007 Budget. If the Council decides to provide funding for 2006-2007, there is no guarantee of future funding from the Council for the program.
Staff Recommendation: As requested on September 11, 2006, we have provided a performance agreement and appropriation ordinance to set up and operate a community bicycle loan program. We recommend that if the Council wishes to support the program, the Council adopts the attached resolution to authorize the Manager to execute on behalf of the Town a performance agreement and the Council enact the attached ordinance to appropriate $15,000 from contingency funds in the 2006-2007 Budget.