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ITEM 3 |
City Council Memorandum Government Relations & Transportation Policy Memo No. TP22-04
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Date: |
August 23, 2021 |
To: |
Mayor and Council |
Thru: |
Joshua H. Wright, City Manager Ryan Peters, Government Relations and Policy Manager |
From: |
Jason Crampton, Transportation Planning Supervisor |
Subject: |
Agreement No. CM8-962-3970, Amendment No. 1, with Lyft, Inc., for the First Mile, Last Mile Program |
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Proposed Motion: |
Move City Council approve Agreement No. CM8-962-3970, Amendment No. 1, with Lyft, Inc., for the First Mile, Last Mile Program in an amount not to exceed $49,000, for the period of one year, beginning July 21, 2021 through July, 2022. |
Background/Discussion: |
The First-Mile, Last-Mile Program kicked off in September 2020 as a one-year agreement with Lyft, with four one-year extension options. This partnership program extends the transit reach in South Chandler, where bus service is currently limited, by providing Chandler residents with discounted Lyft trips to and from bus stops south of Pecos Road. Although traditional fixed route bus service works well in areas with higher population density, it is not always as effective in lower-density areas like South Chandler. The cost to provide robust bus service throughout South Chandler would be approximately $12 - $15 per passenger boarding for an estimated total of $3,000,000 - $6,000,000 per year. Under the program, residents utilize the promotional code "ChandlerTransit" to receive 50% off of trips to and from bus stops within the service area (See Attachment 2 for a service area map). The City pays the remaining 50% at an average cost of approximately $5 per trip. During the first ten months of the program, residents took 2,348 trips. As expected, ridership was low during the first few months, but as program awareness improved and people began traveling more, it steadily increased over winter and spring months. See Attachment 3 for monthly ridership trends, average trip lengths and costs. |
Evaluation: |
On July 16, 2020, City Council approved an agreement with Lyft, Inc., for the First-Mile, Last-Mile program, for a one-year period, with the option of up to four one-year extensions. The Contractor has agreed to extend for one additional year at the same terms and conditions. Staff recommends the extension of this agreement. |
Financial Implications: |
The City pays 50% of the cost of each trip performed. Over the first ten months of the program, the average cost per trip has been $5.14. The City’s total cost will not exceed $49,000 for the one-year extension of the program. |
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Fiscal Impact |
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