SUBJECT:
title
Approval of a resolution authorizing the President & CEO, or her designee, to finalize and execute a second amended and restated Interlocal Agreement (ILA) between CapMetro and the City of Austin for the expansion and electrification of the Bikeshare Program for an initial three-year term with operations and maintenance and capital contributions from the City in amounts not to exceed $750,000 and $3,600,000 respectively, and other contributions outlined in the ILA, with options to extend the ILA through FY2034.
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FISCAL IMPACT:
Refer to executive summary for clarification.
STRATEGIC PLAN:
Strategic Goal Alignment:
☒ 1. Customer ☐ 2. Community
☐ 3. Workforce ☐ 4. Organizational Effectiveness
Strategic Objectives:
☒ 1.1 Safe & Reliable Service ☒1.2 High Quality Customer Experience ☐ 1.3 Accessible System
☒ 2.1 Support Sustainable Regional Growth ☒ 2.2 Become a Carbon Neutral Agency
☒ 2.3 Responsive to Community and Customer Needs ☐ 2.4 Regional Leader in Transit Planning
☐ 3.1 Diversity of Staff ☐ 3.2 Employer of Choice ☐ 3.3 Expand Highly Skilled Workforce
☐ 4.1 Fiscally Responsible and Transparent ☒ 4.2 Culture of Safety ☒ 4.3 State of Good Repair
EXPLANATION OF STRATEGIC ALIGNMENT: The Bikeshare system will empower, enhance, and serve the region and its communities through the responsible delivery of high-quality public transportation that seeks to close the gap between the first mile and last mile of traditional fixed route bus and train service. The Bikeshare program shall be operated through joint funding contributions from the City and CapMetro as outlined in the ILA.
BUSINESS CASE: CapMetro Bikeshare facilitates sustainable, healthy, equitable first and last mile connections to transit through a partnership with the City of Austin whereby the City owns the hardware and bicycles and CapMetro operates, maintains, and plans for the system. This partnership allows for strategic growth and an on-going state of good repair.
COMMITTEE RECOMMENDATION: This item will be presented to the Operations, Planning, and Safety Committee on February 12, 2025.
EXECUTIVE SUMMARY: This second amended and restated Bikeshare ILA between the City of Austin and CapMetro allows for the receipt and use of up to $14.1 million in Transportation Alternatives Set Aside (TASA) grant funds ($11.3 M in federal funds and $2.8M in local match funds). These funds will be used to expand, enhance, and electrify the City’s docked bikeshare system, now known as CapMetro Bikeshare. The City of Austin Transportation and Public Works Department, supported by CapMetro, was awarded the TASA Federal funding. This funding will result in fully electrifying the fleet and increasing the number of Bikeshare stations. CapMetro will purchase and seek reimbursement from the City for all eligible capital expenses including e-bicycles, associated hardware, associated Bikeshare station construction, and electric infrastructure needed to power the grant-funded system expansion.
City of Austin Contribution: The City will contribute up to $250,000 each year for operations and maintenance (O&M) of the Bikeshare Program from FY 2025 to FY 2027 for a total amount not to exceed $750,000. The parties will meet in good faith to review operational costs on April 1, 2026. The April 2026 discussion will include a presentation by CapMetro on financial analysis of operational costs and revenue and will provide a basis for seeking a revised operational contribution from the City for FY 2028 - 2034.
City of Austin Capital Contribution: The City’s capital contributions to the Bikeshare Program for the initial 3-year term of the ILA includes local government match funds for the TASA grant award and TASA grant funds in a combined amount not to exceed $3,600,000. In addition, funds from the sale of City Bikeshare assets will be applied toward program costs.
CapMetro O&M Contribution: O&M costs over and above the City’s annual O&M Contribution after the deduction of Program revenue will be the responsibility of CapMetro. The CapMetro Board will approve CapMetro’s O&M budget for the Bikeshare Program annually as part of the annual budget process. CapMetro is working to reduce O&M costs by charging e-bikes at stations, actively seeking advertising sponsors for the Bikeshare Program, and planning a change in the overall Bikeshare fare system. It is the intent of the parties to equally share the operating costs of the Bikeshare Program after the reduction of Bikeshare revenue.
CapMetro Capital Contribution: CapMetro’s Capital Contribution to the Bikeshare Program was expended from July to November of 2024 when CapMetro’s Bikeshare team replaced 73 stations for $4 million. Future capital expenditures from CapMetro are not expected and will require Board approval.
Background: The City of Austin was among the first municipalities to install a publicly funded bikeshare system in the United States. Austin B-Cycle, now CapMetro Bikeshare, started in 2013 with 43 station/kiosks and 350 bikes.
PRIOR BOARD RELATED APPROVALS:
August 2020 - Authorize negotiation and execution of an interlocal agreement with the City of Austin related to expansion and management of Bike Share of Austin and BCycle Austin, a station-based bike share system, for an initial term of four years, and a renewal term of up to three years.
May 2022 - Finalize and execute an amended and restated Interlocal Agreement between Capital Metro and the City of Austin to improve, expand and electrify the MetroBike program through joint funding contributions from both parties for an additional period of up to 10 years with a not to exceed amount as specified in the Interlocal Agreement. The MetroBike program shall be operated directly by CapMetro with funding contributions for operations and capital contributed by the City as outlined in the Interlocal Agreement.
January 2024 - Approval of a resolution authorizing the President & CEO, or her designee, to finalize and execute a contract with PBSC Urban Solutions, Inc. for the procurement of bicycles, docks, stations, software, and related technology and infrastructure for a public bikesharing system for a term of five (5) base years following a three (3) month mobilization period and five (5), one-year options for an amount not to exceed $20,645,858. The City of Austin will own all physical hardware, while CapMetro is responsible for operating and maintaining the technology and hardware.
DBE/SBE PARTICIPATION: Does not apply.
PROCUREMENT: Does not apply.
RESPONSIBLE DEPARTMENT: Strategic Planning and Development
body
RESOLUTION
OF THE
CAPITAL METROPOLITAN TRANSPORTATION AUTHORITY
BOARD OF DIRECTORS
STATE OF TEXAS
COUNTY OF TRAVIS
AI-2024-1191
WHEREAS, the City of Austin has been awarded $11.3 million in Federal Transportation Alternative Set-Aside grant funds with a 20 percent local government match ($2,823,325) for a total of $14.1 million investment for the expansion of the CapMetro Bikeshare system; and
WHEREAS CapMetro manages and operates the CapMetro Bikeshare system in accordance with that First Amended and Restated Interlocal Agreement between the City and CapMetro setting forth the roles and responsibilities of the parties related to the Bikeshare Program; and
WHEREAS, the parties now wish to enter into the Second Amended and Restated Interlocal Agreement (ILA) to memorialize the City’s contribution of TASA Grant funds and other related O&M and capital funding for the strategic expansion and on-going operations and maintenance of the Bikeshare system; and
WHEREAS, the ILA outlines the process and allocates funds derived from the sale of the legacy (B-Cycle) Bikeshare system.
WHEREAS, with this ILA, the parties are establishing a partnership which the parties define as a shared and equal financial commitment and accountability, as set forth in the ILA, to fully implement a financially sustainable Bikeshare Program.
NOW, THEREFORE, BE IT RESOLVED that the CapMetro Board of Directors authorizes the President & CEO, or her designee, to finalize and execute a second amended and restated Interlocal Agreement (ILA) between CapMetro and the City of Austin for the expansion and electrification of the Bikeshare Program for an initial 3-year term with operations and maintenance and capital contributions from the City in amounts not to exceed $750,000 and $3,600,000 respectively, and other contributions outlined in the ILA, with options to extend the ILA through 2034.
____________________ Date: ____________________
Secretary of the Board
Becki Ross