Amend bike-share contract with Lyft, Inc. to increase contract value not to exceed $26,480,000 and modify term date (amend Contract 30007443)
The City of Portland ordains:
Section 1. The Council finds:
- BIKETOWN, the City of Portland’s bike-share system began in July 2016. The popular transportation system has logged 3.2 million bike trips.
- Bike-share is an important strategy to meet City goals of increasing mobility access and reducing transportation carbon emissions. Survey of users find that approximately 25% of BIKETOWN trips by residents and commuters replace automobile trips.
- The BIKETOWN for All program has provided transportation access to Portland residents living on very low incomes, currently serving 4,000 members through partnerships with service organizations including Street Roots and Andando en Bicicletas y Caminando.
- Through strong public-private sponsorships, PBOT has leveraged over $20 million in private investment in this public transportation service.
- OnDecember 15, 2015,Nikeand thePortlandBureauof Transportationenteredintoafive-yearpartnershipagreement, throughwhichNikecommittedtoinvest $10millionintothesystem, plus$500,000ofin-kindprogram investments. ThroughNike’spartnership, BIKETOWNhasengagedandcelebratedPortland’srichanddiversecommunities throughtheBIKETOWNDesignChallengeandtheCultureCollection.
- In September 2019, to increase the number of bicycles, expand to East Portland, and incorporate electric-assist bicycles, Procurement Services issued Request for Proposals (RFP) No. 00001328 for Bikeshare System in the City of Portland, Oregon.
- In July 2020, through ordinance #190079, City Council authorized an extension of the City’s BIKETOWN partnership agreement with Nike through summer 2025, increasing its minimum value to $18 million.
- In July 2020, through ordinance #190078, City Council authorized PBOT to enter contract No. 30007443 with Lyft, Inc. to operate an electric-assist bike-share program for up to ten years, with a not-to-exceed amount of $11,300,000 over five years.
- In contract No. 30007443, the parties agreed that the City would pay Lyft a portion of its Nike sponsorship revenue to Lyft to provide the system assets and operate the system, and that the City would cover the cost of any subsidy to low-income users of the system.
- In September 2020, Lyft replaced the entire BIKETOWN bike fleet with electric-assist bicycles, increased the fleet size from 1,000 to 1,500, and expanded the service area by 66% to parts of the East Portland neighborhoods of Jade District, Lents, Gateway, Parkrose, and Powellhurst-Gilbert neighborhoods.
- In March 2021, PBOT initiated Prescribe a Bike in partnership with the Multnomah County health department through a Better Bike Share Partnership grant. This program partners with all four Multnomah County health clinics in Portland and Parkrose and McDaniel high schools to provide free BIKETOWN members and bike safety education to county health clinic patients and high school students.In September 2021, PBOT increased its subsidy of the BIKETOWN for All program through a Drive Change grant.
- In January 2022, BIKETOWN expanded its service area by an additional 25% to 41 square miles, including the East Portland neighborhoods of Hazelwood, Mill Park, and Parkrose Heights and all or parts of the North Portland neighborhoods of Arbor Lodge, Cathedral Park, Kenton, Portsmouth, St. Johns, and University Park.
- In September 2023, City Council authorized ordinance #191463, implementing the Portland Clean Energy Community Benefits Fund (PCEF) Climate Investment Plan. This plan authorized $25 million for Strategic Priority 7 – Equitable clean transportation access, which supports the expansion of PBOT’s Transportation Wallet Access for All and BIKETOWN for All programs. PCEF funds now fully cover PBOT’s cost of the BIKETOWN for All program.
- In December 2023, BIKETOWN set a new annual ridership record 647,200 trips, a 62% increase over the pre-pandemic high. Through the BIKETOWN for All program, Portlanders living on low incomes took over 350,000 free or highly discounted trips in 2023.
- Increasing the contract value of the City’s bike-share contract with Lyft to $26,480,000 and changing the term to September 9, 2028 will allow the City to continue its popular BIKETOWN service to Portlanders and highly discounted trips to people living on low incomes.
NOW, THEREFORE, the Council directs:
- That the Chief Procurement Officer is hereby authorized to execute Amendment #1 to Contract No. 30007443 with Lyft, Inc. in a form similar to the contract attached as Exhibit A.
Official Record (Efiles)
An ordinance when passed by the Council shall be signed by the Auditor. It shall be carefully filed and preserved in the custody of the Auditor (City Charter Chapter 2 Article 1 Section 2-122)
Passed by Council
Auditor of the City of Portland
Simone Rede
Impact Statement
Purpose of Proposed Legislation and Background Information
This amendment would increase the not-to-exceed contract value of bike-share contract with Lyft, Inc. from $11,300,000 to $26,480,000 and change the total term length (Initial Term combined with the Renewal Term) from ten to eight years, ending on September 9, 2028.
The City’s primary costs in the contract are for: a) The provision of capital (e.g., e-bikes, station infrastructure); b) day-to-day operation of the system; c) the subsidy for the BIKETOWN for All equity membership program; d) incentives (membership and/or ride credit) delivered through PBOT’s transportation demand management and equity programs (e.g., Transportation Wallet, Portland SmartTrips).
Revenue from PBOT’s bike-share sponsorship agreement with Nike covers the entire cost of PBOT’s share of capital and operations costs. Portland Clean Energy Community Benefits Fund (PCEF) dollars fund the entirety of the City’s cost for the BIKETOWN for All equity membership subsidies.
Approximately 99% of PBOT’s total cost for this contract is covered through Nike sponsorship and PCEF funds.
Original executed in December 2015, the Nike $22.3 million bike-share sponsorship agreement is concurrently being extended by three years to September 9, 2028 with a new maximum value of $29.8 million. Since the City’s share of capital and operation costs are covered through Nike sponsorship funds, the Lyft end term date is being amended to coincide with the Nike agreement. That extension is being executed administratively through the Public Works Deputy City Administrator.
As part of the PCEF Climate Investment Plan, City Council authorized a five-year, $25 million to PBOT for Strategy Priority 7 – Equitable clean transportation access. That allocation funds PBOT’s expansion of the Transportation Wallet Access for All program and the City’s cost of the BIKETOWN for All program.
Financial and Budgetary Impacts
Amending the contract will have no Financial and budgetary impacts. These costs are already budgeted in the FY24-25 budget.
Community Impacts and Community Involvement
PBOT has not conducted public involvement specific to this amendment; however, the Bureau of Planning and Sustainability conducted an extensive public engagement process for the PCEF Climate Investment Plan. PCEF staff received several comments in support of the BIKETOWN for All program.
100% Renewable Goal
Not applicable.
Financial and Budget Analysis
This action amends PBOT’s bike-share contract with Lfy, Inc., increasing the contract’s not to exceed by $15.2 million and includes provisions to renew the contract to September 8th, 2028. Grant agreements with Nike and the PCEF Climate Investment Plan provide all relevant funding for operational and capital costs.