TO: ADAM PIRRIE, CITY MANAGER
FROM: BRAD JOHNSON, COMMUNITY DEVELOPMENT DIRECTOR
DATE: NOVEMBER 26, 2024
Reviewed by:
City Manager: AP
SUBJECT:
Title
REQUEST FOR DIRECTION ON THE AMERICAN RESCUE PLAN ACT FUNDED GOSGV E-BIKE SUBSIDY PROGRAM (FUNDING SOURCE: AMERICAN RESCUE PLAN ACT FUND)
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SUMMARY
In March 2022, the City surveyed community members and businesses, asking for input on what ARPA funding priorities they would like to see for the community. In response to the feedback from the surveys, staff prepared funding recommendations for the City Council's consideration. In May 2022, the City Council approved American Rescue Plan Act (ARPA) funding options, which included $100,000 to provide rebates to Claremont residents who purchase an electric bike (e-bike).
In July 2023, staff presented two e-bike programs utilizing ARPA funding, including an E-Bike Rebate Program and a subsidy for monthly bike rentals through the GoSGV e-bike share program managed by ActiveSGV. The City Council approved these programs and allowed staff to adjust the budget between the two programs. Staff allocated $40,000 towards the E-Bike Rebate Program and $60,000 for the GoSGV program.
On July 23, 2024, staff requested a budget increase to continue the GoSGV membership subsidy. The City Council approved increasing the program budget by $41,250 to $101,250, which would fund the program through the end of 2024 and directed staff to work with ActiveSGV to gather data to measure the program's effectiveness.
ActiveSGV conducted a survey and received 102 responses from the 119 program participants. The survey received positive responses; most participants were very satisfied with their e-bikes. However, less than fifteen percent of respondents would continue their GoSGV membership if the program was no longer subsidized. Due to the survey results, staff is requesting City Council direction on future funding for the program.
RECOMMENDATION
Recommended Action
Staff recommends the City Council provide direction to staff as to whether additional American Rescue Plan Act funds should be allocated to the GoSGV subsidy program or if the existing funds should be depleted and the program be terminated.
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ALTERNATIVE TO RECOMMENDATION
In addition to the recommendation, there is the following alternative:
• Request additional information from staff.
FINANCIAL REVIEW
The City of Claremont received a total allocation of $8.7 million in American Rescue Plan Act Funding. The City Council originally approved $100,000 for e-bike incentive programs, including an E-Bike Rebate Program and GoSGV Program subsidy, and authorized staff to allocate the funds depending on the demands of each program. The July 2024 budget amendment increased the e-bike incentive program funding to $141,250.
The staff cost to prepare this report is estimated at $800 and is included in the operating budget of the Community Development Department
ANALYSIS
In July 2023, the Claremont City Council approved $100,000 in ARPA funding for the E-Bike Rebate Program and the GoSGV e-bike subsidy program. The E-Bike Rebate Program offered a rebate of up to $1,000 for moderate-income Claremont residents who purchased an eligible e-bike. Staff allocated $40,000 of the approved budget for the e-bike rebates, allowing for 40 rebates, and $60,000 for the GoSGV subsidies.
In September 2022, ActiveSGV launched the GoSGV program, which offers affordable monthly e-bike rental memberships for San Gabriel Valley residents. The classic commuter bike costs $69 monthly, but through the subsidy program, ActiveSGV lowered the monthly price to $50. With the City Council-approved subsidy, the GoSGV commuter bikes are free to Claremont residents.
Since the inception of the subsidy, Claremont residents' participation has remained consistent. With the July funding increase, approximately 150 residents rent bikes monthly, which is the maximum that the City and ActiveSGV have set. With the current program allocation and no increase in the number of subsidies offered, the program has enough funding to provide a subsidy for one more month. After the funds have been depleted, participants will become responsible for the monthly payments or may return the bike to ActiveSGV.
Additionally, Claremont residents are eligible to participate in the GoSGV share-to-own program, which allows participants to take ownership of the bike after making payments equivalent to ActiveSGV’s cost to purchase the e-bike. At the City’s rate of fifty dollars per month, a participant could take ownership of the bike after fifty months of payments.
Participant Survey
With the July 2024 funding increase, the City Council requested ActiveSGV and staff to survey the GoSGV participants to understand how they utilize their e-bikes and whether the subsidy should be continued. ActiveSGV conducted a user survey over two months and received 102 responses from the participants.
The GoSGV program user survey (Attached) highlights that participants use e-bikes frequently, with 48% riding weekly and 25% daily, primarily for recreation (81%), errands (63%), and commuting (41%). Most trips are short, with 68% traveling one to five (1-5) miles. User satisfaction is high, averaging nine (9) out of ten (10), and 63% report cost savings compared to other transportation methods. The survey indicates that the program has been beneficial for e-bike adoption, with 83% of respondents considering purchasing an e-bike because of it. However, only 15% would continue their membership if subsidies ended, while 59% are unsure.
ActiveSGV informed staff that it would be difficult for respondents to access the bike odometer. To address this, they created a how-to video and a guide for respondents to get the odometer reading. Due to this, ActiveSGV made the response to the odometer question optional; only thirty-five participants responded. The median miles traveled was 174 miles, with the least used bike traveling only eight miles and the most with 1,104 miles traveled. The program had a positive impact on reducing car trips, with 42% of respondents substituting "sometimes" and 45% substituting "often" or "always.” These findings suggest the program has benefited e-bike adoption.
Funding Considerations
Due to the cost of the program in relation to the limited number of subsidized bikes offered, staff is requesting direction from the City Council on whether the subsidy should be continued. Other program adjustments should be made if the City Council decides to increase program funding. This could include requiring the renter to contribute to the monthly subscription, such as paying twenty dollars ($20) a month while the City would pay the rest. Another option is to require a minimum number of miles traveled per month to be eligible for the subsidy. This could be done by the participant submitting photo evidence of odometer readings. If the participant does not utilize the bike that month, they could be responsible for the full membership price.
RELATIONSHIP TO CITY PLANNING DOCUMENTS
Staff has evaluated the agenda item in relationship to the City’s strategic and visioning documents and finds that it applies to the following City Planning Documents: Council Priorities, Sustainable City Plan, and the 2024-26 Budget.
CEQA REVIEW
This item is not subject to environmental review under the California Environmental Quality Act (CEQA).
PUBLIC NOTICE PROCESS
The agenda and staff report for this item have been posted on the City website and distributed to interested parties. If you desire a copy, please contact the City Clerk’s Office.
Submitted by: Prepared by:
Brad Johnson Alex Cousins
Community Development Director Senior Management Analyst
Attachment:
GoSGV E-Bike Subsidy Program Survey