San Diego Station Car Pilot Program Partner Agencies

San Diego Station Car Pilot Program Partner Agencies:

CCDC Coalition for Sorrento Valley Congestion Relief BOMA Golden Triangle Chamber of Commerce City of San Diego San Diego Regional Economic Development Corp. San Diego Regional Chamber of Commerce

A Report compiled by: Thomas Bruccoleri Senior Transportation Planner

Chris Burke Planner I

Maria Filippelli Planning Technician

Jeremie Brown Marketing Analyst I Table of Contents

Executive Summary...... 1

Introduction...... 2

Market Study...... 7

Operations Plan...... 12

Lessons Learned...... 16

Conclusion...... 19

Appendices - please note appendices are available online at www.ridelink.org

Appendix A – Mobility Pass Program Demonstration Appendix B – Flexcar Marketing Plan for San Diego Appendix C – Pricing of the Mobility Passes Appendix D – Regional Carshare Working Group Charter and Meeting Notes Appendix E – RFP and SOW for Carshare Demonstration Program Appendix F – SANDAG’s Marketing Efforts Appendix G – Assembly Bill 2154: On-Street Parking Appendix H – Proposed On-Street Parking Locations Appendix I – Estimate of On-Street Parking Benefits and Costs Appendix J – Meeting Notes: Transportation Committee and MTDB Executive Committee (not referenced in report) San Diego Station Car Pilot Program Study

Executive Summary Carsharing is a service where participants, either in a cooperative, public, or private organization, have access to a fleet of vehicles that can be reserved for business or personal use for a predetermined period of time. Carsharing has shown benefits in markets throughout the United States and Europe in lowering people’s dependence on cars, increasing the use of regional transit systems, and improving the standard of living for members. In 2002, the San Diego Association of Governments (SANDAG) submitted for and received grant funds to develop a station car program, a form of carsharing specific to transit centers, in the San Diego region. In accordance with the grant funding, SANDAG conducted a Station Car Pilot Program Study that consisted of two parts; the first was a marketing study and operations plan, the second was implementation of the carsharing demonstration program. The San Diego Station Car Pilot Program Study served as a two-year demonstration to measure the market demand for carsharing, specifically station car services, and to outline the implementation plan necessary for carsharing operations in San Diego. To attain the highest utilization of the carsharing program, SANDAG promoted the program by bundling carsharing into San Diego’s regional Transportation Demand Management (TDM) offering. SANDAG used the San Diego Metropolitan Board’s Employee Commuting Opportunities Pass (ECO Pass) Program, which sold bulk transit passes to San Diego employers, as a model for a similar product that incorporated carsharing. SANDAG branded the new program the “Mobility Pass.” The Mobility Pass was marketed to employers, residential developers, and homeowners associations. Although the station car program did not achieve the level of participation originally envisioned, other opportunities for carsharing and transit alternatives were identified. San Diego State University (SDSU), through an independent effort, evaluated the SANDAG pilot program’s impact and discovered participants found great value using a shared vehicle in the connection from transit to work, and began to utilize transit more in their daily lives. To take advantage of these findings, SANDAG plans to evaluate additional options for connecting commuters from transit to work, as well as program to address their needs during the workday, of which carsharing will be part of the solution. By November 2007, there were approximately 75 carsharing vehicles and 2,100 carsharing members in the San Diego region due in part to these grants funds and the cooperation between SANDAG and its member agencies. Carsharing presents tremendous opportunities by providing access to an additional mobility source in coordination with transit, alleviating traffic congestion to dense areas such as Downtown San Diego. It provides a solution to common concerns of transit users such as flexibility to get to work, home, and other destinations. To take advantage of this resource, SANDAG will investigate bundling carsharing into the new Compass Card Program and TDM Strategy.

1 Introduction

What is Carsharing? A concept that originated with great success in Europe in the late 1980’s, Carsharing is a service where participants, either in a cooperative, public, or private organization, have access to a fleet of vehicles that can be reserved for business or personal use, for a predetermined period of time. Carsharing organizations have many benefits for its members, such as providing access to a fleet of vehicles at a fraction of the cost of individual car ownership. It also provides daytime use of a vehicle if someone takes transit or an alternative means of transportation to work. By sharing vehicles, participants help to alleviate parking congestion in high-density areas where parking is limited, as well as provide increased transit use and environmental benefits. Carsharing is utilized by individuals as an alternative to car ownership and by businesses looking for a convenient way to maintain fleet vehicles. Vehicles can be checked out for increments ranging from half an hour to multiple days and then returned to their designated location upon completion of the trip to await the next user. Gas, insurance, vehicle maintenance, and roadside assistance are typically included in the fee structure. In order to generate the highest utilization, carsharing vehicles are strategically located throughout the region in urban cores and mixed-use areas that include businesses, transit stations, and residential areas. As reported by Flexcar, each carsharing vehicle takes approximately 15 personal vehicles off the road.

One Carsharing Vehicle Takes fifteen personal cars off the road

Background on Carsharing Grant Funding The SANDAG Station Car Pilot Program represented a new direction in publicly supported but privately operated mobility services and offered a great opportunity to expand the scope and desirability of the San Diego region’s public transportation system. In fiscal year 2002, SANDAG applied for grant funds to introduce carsharing asa complement to its regional transit network and land use goals. In the submission, SANDAG proposed to conduct this project in two phases. Phase I was intended to develop a baseline marketing study to measure the demand for carsharing services among residents and employers. If the results from the marketing study showed that 2 Carshare carsharing was potentially viable in the San Diego region, Phase II would then include Users: development of an operations plan. between SANDAG proposed to augment the original grant with a second grant submittal. The the age of focus was to conduct a pilot integrating carsharing into the SANDAG TDM program 25 and 55 by adding carsharing near two multimodal stations, the Old Town Transit Center and (79 percent) the Santa Fe Depot, as well as several San Diego Trolley light rail transit (LRT) stations. SANDAG was awarded the second grant and the first Phase I Marketing study was ex- panded to measure the demand of residents, commuters, and employers. The results (Flexcar San Diego would be adapted into the operations plan and integrated into the San Diego Station Membership Car Pilot Program. Survey – 2006) To further augment the SANDAG study, San Diego State University (SDSU) was con- tacted to administer an in-depth evaluation of the program. Research from SDSU’s Mobility Pass Study (Appendix A) showed that the effectiveness of carsharing fre- quently depends upon the transit options available and how passengers can travel from home to work and other desired destinations. When transit is used, trips have historically become time consuming and inconvenient. Passengers complain mostly about waiting at collection and delivery points, but do not seem to mind the time spent during the transit trips. The use of individual, privately owned automobiles at either end of the transit trip is not appealing from an environmental standpoint and not desirable in terms of parking costs and land consumption. The carsharing program focused on addressing these critical concerns in the San Diego region.

Why San Diego? The San Diego region is dominated by commuters in single-occupancy vehicles (SOVs), with the U.S. Census Bureau reporting in 2005 that 78 percent of San Diego commuters drive to work alone. Highways are running out of capacity, emissions levels and commute times continue to rise, and yet transit ridership remains low at 3.4 percent of workers us- TAXI Car-Rental ing public transportation for their commute (Census Bureau, 2005). There are various barriers to increasing transit use, but two stand out more prominently Car-Sharing than the others. The first barrier identified by transit users is the lack of a vehicle at work for personal or business-related use during the day (i.e., for errands,

Flexibility Bike meetings, or emergencies). The second barrier identified is the inability for the commuter to complete Public Transportation their trip between the transit center and their home or work, referred to as the “first mile” and “last mile” of a commute. The ”first mile” of a commute is de- Distance fined as the connection between a commuter’s home and transit station. The “last mile” is the connection between where transit stops and the commuter’s work site. The San Diego region is limited in how effectively it can address these obstacles in increasing transit usage. The region is defined by its population sprawl and the terrain 3 in certain areas which hinders cost-effective transit planning. Also, the geographic Introduction

limitations of transit stations, such as limited parking and distance from transit to work sites, create difficulties in connecting transit users to their residence and work via shuttles. Fixed-route bus services in these areas are not practical, revealing an opportunity to utilize carsharing to better assist transit users.

SANDAG’s Motivation SANDAG envisioned carsharing as a necessary component in the TDM program and regional land use planning goals. In collaboration with Flexcar, SANDAG and UCSD Flexcar Locator Map found on www.flexcar.com select partner agencies—North San Diego County Transit District (NCTD), Centre City Development Corporation (CCDC), and the Metropolitan Transit Development Board (MTDB)—developed a network of shared vehicles to achieve regional goals. The project addressed several areas of concern to SANDAG, namely improving mobility and reducing congestion through increased use of carsharing, transit services, and ridesharing. Carsharing also is seen as a tool to encourage and enable Transit-Oriented Development (TOD) efforts.

Hillcrest Area Flexcar Locator Map found on www.flexcar.com

The project’s three major goals: r 1. To increase use of congestion-reducing modes such as COASTER, Trolley, Express Bus, biking, carpooling, and vanpooling, thereby decreasing congestion caused by SOVs on the region’s busiest highways r 2. To enable carsharing services to be offered in the San Diego region r 3. To support the region’s urban cores and TOD/Smart Growth efforts

4 Increase Transit Ridership The demand-driven carsharing project was developed to add flexibility and scope to the transit network at no additional cost to SANDAG, attracting new transit and rideshare patrons, and increasing overall participation. This would create significant results in lowering the number of SOVs, total vehicle miles traveled (VMT), and vehicle emissions dispersed into the environment. San Diego County’s geography and housing density makes it difficult to sufficiently provide transit to all MTS’s newest residents. Carsharing and station cars could bridge airconditioned these gaps. Support for carsharing as a tool for increasing transit use has been seen luxury coach bus in existing carsharing projects around the world. In Washington, D.C., a survey found that 13 percent of carsharing users increased their transit usage, with 30 percent of users selling a vehicle because of carsharing services. Ninety-seven percent of users found the service to be complimentary to the transit system. Bremen, Germany, found that 26 percent of users increased their usage of public transportation options, with almost 10 percent of users selling a vehicle (Glotz-Richter, 2002). An additional 25 percent joined carsharing instead of buying a vehicle. These examples, along with others from the U.S. and Europe, were a driving force in SANDAG’s motivation.

Enable Carsharing Services in San Diego Implementing the program in San Diego would provide additional transportation services to commuters throughout the Region. Commuters that previously had a lack of connection to or lack of parking at a transit station would now have access to transit. Providing an incentive to local business and TOD’s would assist in drawing people to transit as a preferred means of travel. Carsharing has two dominant types of models, station cars and neighborhood cars. University research on station cars has shown there can be up to three sets of users in a business day (Shaheen). The home-end user drives the car to a transit station Station Car from their neighborhood center, parks the car, and conveniently departs from the station by bus or train. The work-end user arrives at the station by located at Sorrento Valley bus or train, and takes the car to his or her final destination. The third user drives Station the vehicle mid-day for business trips, similar to a company fleet vehicle, or personal errands. Carsharing vehicles placed near TOD’s would be considered neighborhood cars and would serve residential users. The residents, in turn, would augment and support the 5 transit system, fostering the transit-oriented lifestyle. Urban Core and Transit-Oriented Development (TOD) Case Study: The carsharing project supports the Regional Transit Vision, which focuses on supporting a transit-oriented lifestyle by reducing the number of VMTs on the roadway system. This helps to shift peak-period trips to transit and provides carsharing as an extension to the transit system, thereby increasing a commuter’s flexibility while retaining ridership. The San Diego carsharing program enhances the region’s mobility package by providing a fleet of vehicles to connect customers to their work and homes in a way Paula that complements existing transit service. Through this program, transit ridership Member since March 2003 would become more appealing and the region TOD goals more achievable. “When we moved to San Diego five years ago, we were committed to being car-free, and so we looked for an apartment where we could walk to bus lines, the grocery store, that kind of thing. When I took my first Flexcar trip, I just couldn’t believe how easy it was! Just swipe my card and go. I love having the freedom to use it when I need it, or to not use it when I don’t.

Entire San Diego Area Flexcar Locator Map

Downtown San Diego Area Flexcar Locator Map

6 1Glotz-Richter, Michael. “Bremen Karte Plus AutoCard: Experiences from Bremen,” Public Transportation International. June 2002. Market Study

Objective The objective of Phase I was to establish the marketability of carsharing services in San Diego. From this market study it would be determined if carsharing was a viable mode of transportation. If so, an operations plan would be established to implement a carsharing demonstration project in San Diego.

Marketability and Viability SANDAG had three main objectives to determine the marketability of a carsharing program: • to increase the value of transit by decreasing barriers of transit use, • to offer carsharing as a transit link in a geographically diverse area, and • to create a marketable price point

SANDAG used several studies to support these intended goals and to justify developing an operations plan. Susan A. Shaheen, PhD, a University of California at Berkeley researcher who has researched carsharing extensively, was identified by SANDAG as a prime source of information. Dr. Shaheen has determined that carsharing vehicles serve a niche market between private Rideshare Week automobiles and public transportation. Several of her papers support carsharing for exposure at increased connectivity and increased transit use, as well as environmental and social SANDAG’s benefits. In Dr. Shaheen’s 2002 survey, “North American Market Developments,” she PR event held at states that “travel choices are often limited by lack of connectivity among travel the San Diego Civic Center Plaza modes.” San Diego County is no stranger to this. The geographic layout, proliferated with canyons, leads to areas that transit cannot efficiently serve. Carsharing services, offered as station cars, can help to supplement these gaps in transit by providing a connection between different modes of transportation. Dr. Shaheen separates shared-use vehicles into two classifications, station cars and carsharing vehicles. Previous to this project, SANDAG looked to explore both alternatives in addressing its major goals of increasing transit usage, enabling carsharing in the region and supporting the region’s TOD efforts. Station cars became the chosen model because they can bridge the gaps that commuters have identified as barriers to transit usage, connecting them from transit to their work and business through a flexible, convenient mode. Carsharing vehicles can support and complement transit services, helping to grow ridership. Carsharing, as Dr. Shaheen reported, also 7 can lead to partnerships with housing developers and a reduction in parking spots needed, thereby increasing area for other kinds of beneficial and usable development. Carshare Carsharing also can lead to decreased congestion in downtown traffic—another aspect Users: that is appealing to San Diego. Dr. Shaheen concludes in her survey report that public evenly distributed and private sectors, working together, can achieve the environmental and social goals between male that carsharing can provide. (52 percent) Another study that supported carsharing was conducted by Caltrans and the University and female of California at Davis (UC Davis). They managed a station car project under the name (48 percent) of CarLink between January and November 1999 (Shaheen et al, 2004). Analysis conducted by UC Davis provided a number of justifications for this type of service, (Flexcar San Diego including: Membership • Shuttle services are typically only provided during peak rush-hour periods, Survey – 2006) limiting options for commuters • The mobility of individuals who take transit or rideshare to work is often restricted to the employment center during the day • Shuttles only serve the employment side of the commute, leaving the station- to-home commute unserviced Strategically placed station cars can help address many of these issues in the San Diego region by providing mobility for both ends of the transit trips, providing mobility for mid-day errands, and eliminating SOVs to and from transit centers. Along with the findings of Dr. Shaheen, SANDAG found that the Northern California CarLink study reflected what was proposed in SANDAG’s project regarding station car use. In justifying the marketability of carsharing, SANDAG also researched and referred to carsharing programs in other cities such as Portland, Oregon; Seattle, Washington; and Washington, DC. CarSharing Portland (CSP) began in 1998 and saw significant results in the first year (Katzev, 1999). Members increased their transit ridership and saved on average $154 per month in transportation costs. Other relevant statistics include 26 percent of its members selling a personal vehicle after joining and 53 percent of CSP’s members avoiding the purchase of an additional vehicle. Seattle, Washington, in 2002, had 1,500 members, 40 vehicles, and also experienced an increase in transit ridership and a decrease in vehicle ownership among their members. Washington, DC, began their carsharing program in 2001 with Flexcar and reported similar first-year results to Portland’s and Seattle’s—13 percent increased transit use and a decrease in VMTs within the city. After establishing a baseline of information and identifying three primary qualifiers that would determine the marketability of a carsharing program, SANDAG relied on the studies above to support and justify developing an operations plan.

2 Shaheen, Susan A. (1999). Dynamics in Behavioral Adaptation to a Transportation Innovation: A Case Study of CarLink – A Smart Carsharing System. UCD-ITS-RR-99-16. Institute of Transportation Studies, UC Davis

3 Katzev, Richard. “CarSharing Portland: Review and Analysis of Its First Year.” Oregon Department of Environmental Quality, www. publicpolicyresearch.net/documents/CSP_first_year_eval.PDF. July 1999. 8 Market Study

Increase the Value of Transit by Decreasing SOVs Increasing transit ridership was the first main goal of the carsharing pilot program. Evidence from Dr. Shaheen and other cities have shown that this is a universal outcome of carsharing. To increase the value of transit and consequently achieve an overall boost in transit ridership, it was important to first establish that transit riders would find value in carsharing services in addition to regular transit service. In September of 2002, Flexcar first opened operations in San Diego. Flexcar, the nation’s oldest and largest carsharing company, already had established markets in Portland, Oregon, Seattle, Washington, and Washington, DC. Through the research undertaken by SANDAG and the success of carsharing in other cities, the addition of carsharing to augment the existing transit services in San Diego County was well supported (see Flexcar marketing plan – Appendix B).

A Transit Link As mentioned previously, the geography of San Diego often makes it difficult to provide transit services to all areas. This made the second marketing goal fairly easy to achieve. Several locations were researched for station car vehicle placement. Early candidate stations for placement of vehicles included the COASTER stations of Oceanside, Carlsbad Poinsettia, Carlsbad Village, and Encinitas. Old Town Transit Center and a handful of other Trolley stations also were considered for placement. After reviewing each station, considering the criteria of population and employment density and potential “last mile” gaps, it was determined that two specific locations possessed a combination of attributes that would support carsharing services: Sorrento Valley COASTER Station and Centre City at the Santa Fe Depot Station.

Sorrento Valley The Sorrento Valley COASTER Station is located near a sprawling, suburban employment center and was seen as an ideal location for station car services. High volumes of commuters ride the COASTER to Sorrento Valley and utilize the COASTER Connection or private shuttles to bridge the transportation gap from the rail station to surrounding businesses. Though this public and private shuttle network provides a ”last mile” bridge between transit and a commuter’s work for a substantial number of Sorrento Valley employers, research found that many employers and their employees outside the shuttle service areas would utilize the COASTER rail services if they had convenient and reliable transportation to and from their place of employment. Station cars could augment shuttle services and help bridge the “last mile” gap for small and medium sized companies outside the boundaries of current 9 shuttle routes. Station cars also would be available throughout the day for numerous potential passengers, unlike shuttles. Careshare Considering this and SANDAG’s familiarity with the employers in the area through Users: the TDM programs, Sorrento Valley was designated as a potential carsharing have a Bachelor’s demonstration site. Degree or greater (80 percent)

Centre City In addition to being an employment center, Centre City also is a dense residential (Flexcar San Diego center and a transit hub. Due to the close proximity of many Centre City residents’ Membership homes to their workplace, it was anticipated that a substantial number of downtown Survey – 2006) residents would opt to utilize carsharing services in lieu of owning their own vehicle and paying for the associated expenses. However, it was Centre City’s employment density that made it an ideal location for direct placement of vehicles at or in close proximity to employer sites. This allowed for both business and personal use of the station cars and encouraged greater use of transit by providing a “security blanket” to commuters in the form of a personal vehicle available throughout the day. Additionally, Centre City’s rapid growth in residential construction provided a platform for TOD efforts. Here, carsharing could be incorporated as a standard element in high- density construction, reducing automobile traffic and dependence while boosting transit ridership. These were aspects that SANDAG wanted to address with the project and the reasons Centre City was chosen as a site for carsharing services and expansion.

Marketable Price Point The last goal in assessing the marketability of carsharing in San Diego was the ability to determine a viable and marketable price point. To do this, SANDAG considered two different pricing options. The first option focused only on carsharing services and included station cars, neighborhood vehicles, and fleet cars for businesses. Carsharing companies have recorded successes in all of these areas of vehicle usage, with competitive price structures in several locations including previously mentioned urban areas. All of the services in the first option had proven feasible by existing operations with pricing determined by what the market will bear (Appendix C). The second pricing option considered was the packaging of carsharing services with transit service in one comprehensive pass, known as the “Mobility Pass.” Extensive meetings between SANDAG and MTDB staff found that there was substantial interest in the possibility of a pass that would combine transit and carsharing services in a single- fare medium. This combination pass was seen as a marketable and effective way to tap into the residential bulk-sales market, providing additional services to the existing 10 Market Study

Eco Pass. Employers and/or developers could purchase the Mobility Pass as a benefit for their employees or tenants, respectively, while boosting overall transit ridership. It was believed that a discounted pass carrying the same discounts available to Eco Pass buyers, combined with carsharing privileges and services at a discounted rate, would produce significant participation. Estimated budgeting based on Eco Pass pricing and approximate carsharing rates confirmed that a feasible price point could be reached. The value of carsharing to commuters as established by other regions’ results, the value that MTDB placed on carsharing as a marketable service to their customers, and MTDB’s willingness to provide Eco Pass pricing for the Mobility Pass Project, lead SANDAG to further believe that carsharing was indeed a marketable value within the San Diego region. The objective of the marketing plan was to recruit 200 participants by August 31, 2005. In Sorrento Valley, the targets were employees near the COASTER station area seeking a way to bridge the “last mile” of their commute. The downtown targets included Home Owners Associations (HOA) and Property Managers looking to alleviate parking pressures. SANDAG also engaged in a mix of direct marketing with mailings and presentations, and indirect marketing with radio ads to attract participants to the program. Having established a market for the carsharing services, SANDAG confirmed that a demonstration project was warranted and that further planning should commence leading to an Operations and Marketing Plan.

MarketingPhasse Execution 2: Market As the Station Car Project evolved, it became Designated essentially two different projects.Study The first part parking spots included direct support of carsharing. To achieve for Carsharing this, SANDAG set out to secure on-street parking vehicles and to raise awareness of carsharing. The second part was focused on the station car demonstration in Sorrento Valley and marketing of the Mobility Pass as a TOD and downtown residential solution. Because the Mobility Pass portion of the project required a much different approach than carsharing in general, it was planned and executed separately. For the Mobility Pass, there would be a more structured and methodical Project that was to be primarily a joint effort between SANDAG and Flexcar, the selected carsharing operator. A base plan and timeline were developed for Mobility Pass demonstration project, but there were several iterations to the plan and timeline as the project progressed. Unforeseen challenges and changes involving marketing and pricing structure will be further addressed in the Operations Plan Development section of this report. Both movements would ultimately be guided by the Carsharing Working Group and both efforts would be supported by the carsharing company selected from the Request for Proposals (RFPs).

11 Operations Plan

Objective Carshare Users: The objective of the Operations Plan was to utilize 20 station cars located at have carsharing targeted COASTER and Trolley Stations. Ultimately, deployment of station cars and within several an establishment of carsharing services in San Diego were intended to boost transit blocks of ridership and encourage TOD throughout the region. their work (79 percent) Development of an Operations Plan After the validity of carsharing in San Diego was determined, SANDAG efforts were (Flexcar San Diego then focused on aligning existing concepts and objectives into a plan of action. The Membership key components addressed in establishing the operations plan were the formation of Survey – 2006) a Carsharing Working Group to guide and oversee project developments and progress; a definition of the Mobility Pass’s scope, incorporation of station cars and features, planning of the Mobility Pass validation study, associated agreements, timeline, scope of work and Request for Proposals (RFP) to procure carsharing vendor services; and compilation of the results of the study.

Carsharing Working Group To guide carsharing efforts through the demonstration project and after, it was necessary to form an advisory body specific to carsharing. The Regional Carsharing Working Group (RCWG) was comprised of at least one representative from local agency transportation professionals, select special interest organizations, and the carsharing company (Flexcar). Membership consisted of one representative each from Caltrans, Metropolitan Transit System (MTS), NCTD, CCDC, City of San Diego, Building Owners and Managers Association (BOMA), Coalition for Sorrento Valley Congestion Relief, Golden Triangle Chamber of Commerce, San Diego Regional Economic Development Corporation, San Diego Regional Chamber of Commerce, and Flexcar. The RCWG objective was to provide guidance, coordinate with SANDAG and the carsharing company staff, and assist with the development and implementation of the San Diego Station Car Pilot Program Study and of general carsharing services in the region. The RCWG discussed, reviewed, made recommendations, and approved items associated with regional transportation goals and policies. The RCWG was to function through the completion of the Regional Carsharing Demonstration Project. A Charter was created for the RCWG to guide the purpose, responsibilities, and duration of existence for the Working Group (For Charter and RCWG meeting minutes see Appendix D).

Mobility Pass (Compass+) Definition and Development The primary goal of the Mobility Pass Project was to boost transit ridership by offering a new product that combined complimentary services while taking advantage of existing discounted fare structures. The package of services offering a higher level of mobility and value of transit, combined with the desirable pricing, was anticipated to be very marketable and valuable as a transit and TOD marketing tool. 12 Operations Plan

Case Study: During the same period the Mobility Pass was being developed, SANDAG was working on another project involving the development and introduction of a regional smart Saul card for transit and parking known as the Compass Card. This card was to become the Member since June 2007 regional standard for transit use, allowing commuters to use one card to access and pay for all transit modes. So that the Mobility Pass could become a comprehensive I love Flexcar because by using your minivans or trucks pass providing seamless access to services, it was deemed that the Mobility Pass would I can pick up furniture and incorporate the smart card platform being developed. The Mobility Pass Program was other large items that I buy branded Compass+, to reflect SANDAG’s new all-encompassing mobility branding. myself. It is so convenient, and way cheaper than paying shipping. On top of that, I can do it on my own schedule Request for Proposal Creation and do no need to leave work A draft RFP was created by MTDB and SANDAG staff regarding the base objectives of and sit around my house the project. The RFP laid the foundation for carsharing while incorporating necessary waiting for something to be delivered. components for support of Compass+. The primary goals of the RFP continued to be the promotion of carsharing as a method of boosting transit ridership, decreasing Way to go Flexcar! congestion and demand on the region’s busiest highways, expanding the scope of mobility services within the region without further expense to SANDAG, and encouraging increased TOD. Signing of an agreement with the selected contractor, Flexcar, occurred March 2004. The full RFP, including the SOW, can be found as Appendix E to this report.

Deployment of Compass+ With Flexcar onboard to provide carsharing services and support, Compass+ development efforts started early in the summer of 2004 with an anticipated launch of Compass+ and the participation of select commuters slated for February of 2005. Efforts for Compass+ began in one of the two selected project locations, Sorrento Valley, due to the nature of the large, suburban employment site with an abundance of long-distance commuters and limited “last mile” connections. Outreach consisted of recruitment luncheons, meetings with individual employers such as Kleinfelder, Luce Forward, and Intuit which led to 14 program participants. Several public events were held at local restaurants, cafes, and apartment complexes to promote Compass+ to local employees and residents. SANDAG, along with Flexcar, also went to several local events such as the Del Mar Environmental Fair. Downtown, the second project location, outreach efforts included attending CityFest Street Fair, Horton Plaza, and farmer’s markets to pass out flyers and answer the questions of interested, potential members. The promotion of Compass+ was rounded out by an advertising mix of newspaper articles, e-mail blasts, and direct marketing. An abbreviated program timeline is presented in the table below and a full marketing timeline can be found as Appendix F.

13 Program Timeline: 2002 Received Grant Funding for San Diego Station Car Pilot Program Study Obtained Board Approval of Budget 2003 Request for Proposal Submitted for Carsharing Demonstration Project Prepared Operations Plan Obtained Board Approval for Mobility Pass (Compass+) Pilot RFP Issued for a Carsharing Partner 2004 Flexcar Selected for the Carsharing Project SANDAG Hosted Mobility Switzerland Began Carsharing Program – SANDAG and Flexcar Sign Contract 2005 Flexcar and SANDAG Roll Out the Compass+ Program Began Compass+ Study (SDSU Study) Promotion of Carsharing in Selected San Diego Areas 2006 Marketing/Advertising to Sorrento Valley Employers 2007 End of Pilot Program Last Working Group Meeting

Compass+ Study Results To evaluate the success of Compass+, determine possible fare structures for continued service, and justify the continuation of services, it was determined that an outside source was needed to conduct a professional study. San Diego State University (SDSU), in an independent effort, received funding from University of California Berkeley’s Partners for Advanced Transit and Highways (PATH) specifically to study the effects and outcomes of the Compass+ Program. A Memorandum of Understanding (MOU) was reached, officially welcoming SDSU to the project in December of 2004. The SANDAG partnership with SDSU conducted research utilizing the participants of the Compass+ Program. SDSU surveyed 29 participants in Compass+ to determine the effectiveness of the program. These participants completed a total of 100 surveys (on average each participant completed 3.5 surveys) and recorded over 1,350 trips. Of these participants, 86 percent previously used transit, predominantly on the COASTER and/ or Trolley, and approximately 75 percent of these participants expressed satisfaction with their previous experience.

14 Operations Plan

The research was focused on gaining an understanding of the following topics: • Can Compass+ effectively increase transit ridership, and decrease private automobile usage among participants? • How should transit and carsharing be integrated via Compass+ to support the regional transit vision and the City of Villages strategic plans (local transit and land use plans)? • How should future iterations of Compass+ and accompanying pricing structure be designed, to ensure long-term financial and marketing viability? As witnessed by other carsharing programs, Compass+ participants increased their use of transit, while decreasing the amount they drive alone. The number of trolley trips by program participants increased to 24 percent of their total trips from just 6 percent before the program. In line with what other markets have experienced, the percentage of trips where participants walked and rode bicycles increased significantly as well. In combination with a 60 percent decrease in the percentage of trips where participants drove alone, the length of trips and vehicle miles traveled decreased by 51 percent and 45 percent, respectively. Clearly Compass+ affected the travel and transit patterns of its participants. The study shows an overwhelmingly positive response to Compass+ and an improvement in participants’ attitudes towards transit use in general. Integrating the carsharing offering as part of the TDM program provides a solution to a common concern of transit users: a need for flexibility to get to work, home, and Growth of Flexcar Members in San Diego Region (2005 to 2007) 2,200 other destinations. Additionally, FY07-Q2 participants started to utilize 2,000 other forms of transportation 1,800 such as walking, bicycling, and FY07-Q1 carpooling rather than driving 1,600 FY06-Q4 alone. 1,400

FY06-Q3 Program participants were 1,200 questioned about their FY06-Q2 1,000 willingness to pay for a service

Number of Flexcar Members like Compass+ in the future. 800

FY06-Q1 During the program, participants 600 were paying a median of $116 for FY05-Q4 FY05-Q2 FY05-Q3 400 FY05-Q1 the Compass+ services. Seventy percent of the participants stated 200 2005 2006 2007 they would be willing to pay over Year $120 for Compass+ benefits and 30 percent were willing to pay $200! However, it was unsure whether this supported financial and market viability. As was seen during the demonstration, pricing was a major hurdle for SANDAG, MTDB, and Flexcar when bringing the product to market. It is unclear whether a marketable price point, based on the survey results above, would be achievable without subsidy. Further investigation needs to be done to determine the costs to effectively expand 15 and promote station cars in the San Diego region. Lessons Learned

San Diego was able to offer carsharing to its citizens as an integral part of a Case Study: transportation and transit-oriented lifestyle due, in large part, to grant funding received by SANDAG. However, SANDAG did identify challenges that arose when Richard trying to fully integrate the station car model as it was originally envisioned. Member since Sept. 2007

The first challenge was the difficulty of incorporating carsharing in the regional My car recently had a major transit offering. Compass+ provided an ideal channel to offer carsharing, but it did engine problem that was not not achieve the expected sales or usage SANDAG foresaw. Requirements for the worth repairing. I have no idea what kind of car I want to buy Compass+ program in Sorrento Valley included the ability to gather four people per next..and Flexcar gives me the station car and only non-transit riders were targeted in order to attract more transit flexibility to do the chores that users. This did not gather the desired number of participants. Additional reasons I need to do without having to for difficulty in incorporating carsharing included the limited marketing area and make a rash or quick decision inconsistent pricing of the Compass+ product. on replacing my car. Flexcar gives me the time I need to SANDAG was also limited to whom Compass+ could be marketed to in the Sorrento make a good decision! Valley area. Within a quarter mile of where MTS had established routes, no marketing or promotional efforts where made. Instead, SANDAG focused on a small group of key employers not served by current transit services. A substantial amount of interest was garnered from within these employers. However, basic program requirements and restrictions along with delays brought about by product pricing caused the loss of numerous potential participants. The limited number of employers contributed only a small number of participants to the program. This limited the effectiveness of the project and increased overall program costs with regard to staff time invested. However, the carsharing model worked well at getting commuters from the COASTER to their employers. As mentioned from the SDSU study, Compass+ participants appreciated the access to transit, incorporating it more into their everyday lifestyle, and lowering the amount of SOV trips. Unfortunately, the station car did not generate an adequate amount of utilization at the employer site which is a key aspect to a successful station car program. The program did not focus on generating sufficient mid-day usage at the participant employer sites, leaving the vehicles unused without the ability to generate revenue, and creating cost issues for Flexcar. This, in turn, led to a funding shortfall for Flexcar. When Flexcar’s efforts to obtain direct sponsorship from the participants’ employers did not yield funding to fill the gap, Flexcar was left with no choice but to decrease their subsidy of carsharing services for Compass+, thereby increasing the cost of the pass for participants. With rising program costs, the Compass+ price point made the program undesirable to many participants. In addition, the program was not able to offer any discounts to bring Compass+ monthly pass pricing more in line with Eco Pass pricing. These pricing and participation issues, along with the retraction of $100,000 of proposed funding, restricted the appeal of Compass+ to participants and resulted in the lower-than-expected participation rate. Lastly, SANDAG had difficulty in obtaining an allocation of parking spaces in overcrowded transit station lots for station cars. Member agencies responsible for the parking lots could not allocate the desired number of available spots needed for this program. For this reason, SANDAG was unable to place the envisioned number of station cars, as was originally proposed. However, six parking spaces at the 16 Lessons Learned

Sorrento Valley COASTER Station were successfully secured and utilized for Compass+ efforts (see figure for more detail). Currently, Flexcar is the only provider in the San Diego region offering carsharing to commuters. Usage continues to grow and is beginning to reach levels enabling Flexcar to sustain operations. SANDAG is seeking to pursue an on-street parking demonstration. Studies have shown that on-street parking demonstrations raise awareness of carsharing, thereby increasing interest and use of carsharing.

SORRENTO VALLEY ROAD

Bus Stop

10 Designated Carsharing Vehicle Only Parking Stalls at Sorrento Valley Coaster Station

Carsharing in San Diego Today/Flexcar’s Perspective While the Compass+ station car concept was for the focus of SANDAG’s RFP that brought Flexcar to San Diego, the “neighborhood model” of carsharing has proven to be the most beneficial to the region and Flexcar. Flexcar’s ability to grow from an initial six cars in 2004 to approximately 75 by the fall of 2007 has been due, in large part, to the program’s efforts. SANDAG’s desire to implement a carsharing program in the San Diego region brought Flexcar here long before San Diego would have been approached by Flexcar for expansion. This partnership gave the program a significant amount of credibility that would have otherwise been difficult to establish in the environment of Southern California’s “car culture.” Simply put, carsharing success in San Diego is attributable to the support of SANDAG and its partner agencies. There are three main components to the growth and success of carsharing in San Diego. First, through San Diego Station Car Pilot Program Study grant funding, Flexcar was able to launch and sustain a program in the region. Next, Flexcar was able to leverage SANDAG’s promotional and communication channels for regional growth. Through SANDAG’s RideLink program, Flexcar has been able to reach out to major regional employers. In Sorrento Valley, this relationship helped open the door to a partnership with Qualcomm, one of San Diego’s largest employers, which provides discounted carsharing use as part of their Q-Life employee benefit program. Finally, SANDAG adopted the Flexcar service, exemplifying how businesses can integrate carsharing into their own transportation portfolio. SANDAG continues to be one of Flexcar San Diego’s flagship clients. To integrate carsharing in the San Diego regional transportation offering, Flexcar and regional transit agencies need to collaborate. Flexcar was founded in 1999 as a public- 17 private partnership with King County Metro (Seattle, Washington) as a way to boost public transit ridership. Studies have documented that carsharing members increase their public transit usage. Transit agencies in many Flexcar markets provide special discounts and programs to Flexcar members, to take advantage of this dynamic. As SANDAG has shown, public agencies using Flexcar, rather than investing in their own fleet, reinforce the benefits of carsharing both financially and environmentally. Public agencies that use carsharing as a means to augment, supplement, and even replace general service fleet vehicles have reduced both their costs and their carbon footprint as shown in Portland, Oregon, Arlington, Virginia, and Philadelphia, Pennsylvania. Carsharing reduces the carbon footprint since each shared car put in service takes about 15 other cars off the road. Flexcar also offers Ultra Low-Emission Vehicles and fuel- efficient hybrids that average up to 55 miles per gallon. Flexcar’s overall fleet averages 40 percent higher mpg than the national average. On-street parking presents another opportunity to promote carsharing. Studies show on-street parking increases the public image of a carsharing service, and aids in SANDAG/Flexcar congestion relief in dense urban areas. By relieving congestion, cities experience Partnership greater turnover of the existing parking, which contributes to more available metered parking revenue. San Diego has the ability to join these ranks, if member agencies move for greater participation in carsharing. The recent passage of state legislation Assembly Bill 2154, “Car Share Parking,” sponsored by Christine Kehoe, allows a city or county to designate certain streets or portions of streets for the exclusive parking privilege of motor vehicles participating in a carshare vehicle or rideshare program, clearing a major hurdle previously hindering on-street parking. Carsharing in San Diego is on the right path. Characteristics that contribute to successful carsharing programs, such as parking shortages and urban density, are present here in San Diego, presenting opportunities for Flexcar. For example, at UCSD, where parking is in extremely high-demand and comes at a considerable premium, Flexcar has established one of the most successful collegiate programs in the country. Downtown San Diego, where parking is a premium and congestion is an issue, presents opportunities for long-term sustainability. Carsharing will continue to make great strides in the region to help people overcome the burdens of vehicle ownership, increase their usage of transit, and improve livability of the urban environment with the assistance of its regional partners.

18 Conclusion

Tasked with determining whether the San Diego region represented a well-qualified market for carsharing, SANDAG evaluated market research and other carsharing programs, and came to the conclusion that carsharing in combination with the Compass+ program would increase transit ridership and support the region’s TOD efforts. After determining San Diego represented all the characteristics of a viable market, SANDAG contracted with Flexcar as a part of the San Diego Station Car Pilot Program Study funded by a Caltrans grant. Although the station car study, as executed, did not support all three types of users, carsharing remains a viable augmentation to transportation in the San Diego region. Exposure of the station car and neighborhood carsharing vehicles has increased the awareness of carsharing in the San Diego region. The flexibility carsharing provides to get to work, home, and other destinations is a preferred compliment to the region’s transit system. Due to the limited transit alternatives available to address San Diego’s geographic constraints and the ongoing need to assist transit users with a bridge for the first and last mile gap, carsharing will continue to play an integral part of the SANDAG TDM strategy, potentially being integrated into the Compass Card program.

Next Steps: As identified in this report, regional commuters will use transit more when presented with viable “first/last mile” solutions and flexible transit options, like the ability to make mid-day appointments or leave work early in case of an emergency. SANDAG is evaluating the following strategies: First Mile Solutions Using station cars as a “first mile” solution by locating the cars at COASTER Stations located in more residentially dense areas like Carlsbad Village, Oceanside Transit Center, and Qualcomm may provide higher utilization during the day as opposed to Sorrento Valley. Commuters could take the car in the morning to these stations to access transit. During the day, commuters in those areas could access the cars for errands or business trips. This additional usage would lower the operating cost and allow for a more marketable price point to commuters. Last Mile Solutions Working with companies that have existing fleet vehicles, SANDAG could assist in developing a program where employees would drive company cars to the transit stations at the end of the day and back to work the following morning, creating a station car using fleet vehicles. This option coincides well with Flexcar goals of company fleet replacement and could be marketed collectively. A second option is short-distance vanpools or general carsharing vehicles, where commuters would be picked up at the transit stops and connected to their place of work.

19 The project’s three major goals: 1. Increase use of congestion-reducing modes such as COASTER, Trolley, biking, carpooling, and vanpooling, thereby decreasing congestion caused by SOVs on the region’s busiest highways

2. Enable carsharing services to be offered in the San Diego region

3. Support the region’s urban cores and TOD efforts

Flexible Transit Options SANDAG recommends the continuation of efforts to support on-street carshare parking spaces in Downtown San Diego (Appendix I). The groundwork for this pilot project is already in place: In August 2006, the On-street Parking Bill was passed (Assembly Bill No. 2154, Appendix G). Not only does this provide commuters with flexibility, but also it provides relief from parking congestion in areas like Downtown San Diego. SANDAG is currently working to implement a pilot project to establish several dedicated, on-street spaces which would then be monitored to validate potential benefits including an increase in transit ridership, decrease in traffic, zero- effect or increase in overall parking meter revenue, and improved quality of life brought about by the carsharing vehicles. Several locations in Downtown San Diego have been identified as ideal locations for this demonstration (see map, Appendix H). SANDAG has funding available to study an on-street parking demonstration and will work with the City of San Diego and CCDC to wave meter fees. The results of this pilot project will guide carsharing vehicle placement and further carsharing support in the future. Additionally, taxi services for transit commuters during the day could be offered so that employees do not feel “stranded” or option-less if a need arises and they have to travel outside of the transit support regions. As an integral part to SANDAG’s TDM Strategy, carsharing will continue to support our efforts to gain and retain transit commuters by supporting first and last mile solutions, while providing an option to commuters. The on-street parking study is scheduled to conclude in early summer 2009. At that time, SANDAG will publish another report, similar to this one, with details and next steps for carsharing in the San Diego region.