TO: CRA Board of Commissioners
FROM: Ivan Cabrera, AICP, Redevelopment Manager
THROUGH: Renée A. Jadusingh, Esq., CRA Executive Director
DATE: July 15, 2021
Title
POINT-TO-POINT TRANSPORTATION SERVICES - FOURTH AMENDMENT TO THE ORIGINAL AGREEMENT - ONE YEAR CONTRACT RENEWAL WITH BEEFREE, INC. D/B/A FREEBEE
Body
Recommended Action:
Recommendation
1. Approve the renewal of the Point-to-Point Transportation Services Agreement with BeeFree Inc. d/b/a Freebee for an additional one-year term and authorize the Board Chair to execute all documents necessary for said purpose.
2. Authorize the Executive Director to send correspondence to the City of Delray Beach recommending that the City continue a point to point based transportation service with a broader service area expanding beyond the CRA District.
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Background:
On January 28, 2019, the CRA issued a Request for Proposals for a Pilot Program for Point-to-Point Transportation Services.
After which, the CRA and BeeFree, Inc. d/b/a Freebee entered into a Point-to-Point Transportation Services Agreement on June 25, 2019, (“Original Agreement”). Subsequently, both parties executed two (2) amendments due to COVID-19. The First Amendment was executed on March 27, 2020, and included temporary changes to the service area and hours of operation. The Second Amendment was executed on April 8, 2020, and included temporary changes related to ceasing operations of the service and modifications to the contract price paid by the CRA to Freebee during this time period.
Per the Original Agreement, the parties may mutually agree to renew the term of the Original Agreement for two (2) additional one (1) year terms, subject to the approval of the CRA’s Board of Commissioners, and the execution by both parties of a written amendment to the Original Agreement. On June 23, 2020, the CRA Board approved the Third Amendment to the Original Agreement extending the term of the Original Agreement to August 30, 2021.
If the CRA Board approves the renewal of the Original Agreement for an additional one-year term, this would be the last option to renew under the Original Agreement.
The presence of Freebee within the community continues to have several tangible positive impacts, including:
Transportation Benefits:
• Helps to reduce the number of cars on the road and the vehicular traffic within the Downtown area.
• Helps to reduce traffic congestion and free up limited street parking availability.
Economic Development Benefits:
• Through the Ride Freebee mobile app, many of Delray Beach's local businesses have taken advantage of the opportunity for free advertising; by offering exclusive deals and discounts through the app, Freebee helps to increase the customer base of local businesses.
Goodwill Community Benefits:
• During the Covid-19 pandemic, Freebee helped provide meal delivery to the local senior community during the stay-at-home orders.
Environmental Benefits:
• By providing 100% electric transportation, Freebee is helping to reduce carbon emissions while providing a point-to-point transportation to a highly trafficked area.
Service Numbers:
• 107,443 Total Passengers (September 5, 2019 to April 30, 2021)
• 56,217 Completed Rides (September 5, 2019 to April 30, 2021)
As a result of the positive impact in the community, CRA staff has received several emails from residents living outside the current service area requesting an expansion of the service area to their residences, however, these areas are outside the CRA District.
The breakdown of the cost of the services with advertising on the vehicles, which offsets the cost of services by $180,000/year is as follows:
|
Description |
Monthly Cost |
Yearly Cost |
|
Transportation Service with Advertising |
$33,463,33 |
$401,559.96 |
At this time, CRA Staff is requesting the CRA Board approve this Fourth Amendment to the Original Agreement renewing and thereby extending the term of the Original Agreement to August 30, 2022. Additionally, authorize the Executive Director to send correspondence to the City of Delray Beach recommending that the City continue a point to point based transportation service with a broader service area beyond the CRA District.
Attachment(s): Exhibit A - Original Agreement and Amendments
CRA Attorney Review:
The CRA General Counsel will draft the Fourth Amendment per the terms set forth by the CRA Board.
Finance Review:
N/A
Funding Source/Financial Impact:
Funding is available in the amount of $1,400,000 - GL# 5230 - Transportation Services