2015 Annual Operations Report Santa Monica Bike Center Operated by Bike and Park Santa Monica LLC 1555 2ND Street, Santa Monica, CA 90401
TABLE OF CONTENTS Letter from the GM……………………………………………………………………………………………………………3 Education…………………..………………………………………………………………………………………………………4 Bike Education and Maintenance Classes………………………………………………………………...4 Stakeholder Engagement…………………………………………………………………………………………………..5 Community Involvement – Chamber of Commerce Committees……………….……………..5 Bicycle Friendly Business Program …………………………………………………………………………..5 Santa Monica Bicycle Friendly Yearbook…………………………………………………………………..6 Community Events…………………………………………………………………………………...…..………….7 Customer Service……………………………………………………………………………………………………………….8 Bike Parking Utilization……………………………………………………………………………………………..8 Members Survey…………………………………………………………………………………………………..…..9 Visitors and Tourism………………………………………………………………………………………………….10 Social Media Reach and Customer Feedback…………………………………………………………….10 Tour Report……………………………………………………………………………………………………………….11 Operations………………………………………………………………………………………………………………………….12 2014 Facility Maintenance Costs……………………………………………………………………………….12 2014 Membership Revenue……………………………………………………………………………………….12 2014 Awards and Recognition, Charities and Events We Support………………………………13
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LETTER FROM THE GM
2015 was a year of transition for the Santa Monica Bike Center. As Bike and Park Santa Monica continues to grow, so do the opportunities for our staff. In May of 2015 we transitioned leadership and I took over for Ron Durgin as General Manager. There were, of course, many new responsibilities that came with the job, but one of the great advantages was the institutional knowledge I brought to the table as a long time employee. Having been a part of the SMBC team since the day we opened our doors facilitated this change as we continue to evolve as a company. We also hired a new Outreach Coordinator and Head Mechanic who are instrumental members of our team. One of the great challenges that our company faced this year was the construction of the Esplanade project. Net profits were down 14% from 2014 due to our sidewalk being completely demolished, thus limiting access to our storefront (in addition to a change in traffic patterns and street closures as Colorado Ave and Main St were reconfigured). Nevertheless, through the efforts of our management team and our dedicated staff, we were able to work with these limitations, turn over a profit and continue to provide the same quality service that we’re known for. SMBC is very excited for the new opportunities the Colorado Esplanade will bring to our facility. The opening of the Expo line and the increased pedestrian space, along with the brand new protected bike path, will be welcomed improvements that will breathe new life into the corner of Santa Monica we call our home. Our company looks forward to the expansion of downtown Santa Monica as our community grows and I think the Esplanade will one day become the heart of downtown (as these improvements connect us more seamlessly with city hall and Main Street).
membership sales. Established members, and new members alike, committed to more annual memberships as well as packages with towel options. We also expanded our program by working directly with adult schools in the area (General Assembly and MAKE) to provide brand new membership packages that included a bike rental option along with facility access. This new program functioned as a sort of blend of our Bikes@Work and Commuter Loaner programs further increasing our reach in the community and exemplifying our commitment to supporting the city’s goal of no new net car trips into downtown Santa Monica. I’m happy to report that in 2015 Bike and Park began offering health care for our full time employees. This benefit extends our company’s commitment to providing a welcoming and secure work environment for our team. Benefits such as healthcare, commuter credit, and our bonus program on high grossing days, boost employee morale and helps us stay competitive in the job market by allowing us to attract and retain more qualified employees. Other areas of growth included introducing a new bike education class through our partnership with Sustainable Streets. The intermediate class, called Ready to Ride, fills a gap in the curriculum and offers students a great transition between the Adult Learn to Ride and Confident City Cycling classes. Our company also grew our tours department by expanding our contracts and signing with 25 companies from around the globe. In closing, Bike and Park is very excited for what we think will be a record breaking season in 2016. We look forward to bringing new life to our 4th and Broadway location with the construction of an office space. Our goal is to double our Bike Center memberships in 2016. We’re excited to continue to work with the city to promote the great variety of services SMBC has to offer the public.
One of the silver linings for 2015 was an increase of 17% in LOVE YOUR COMMUTE – BIKE AND PARK SANTA MONICA – SMBIKECENTER.COM
Andrea Aponte 3
EDUCATION The Santa Monica Bike Center partners with Sustainable Streets to bring bicycle education and maintenance that aim to encourage people of all ages and backgrounds to engage in active transportation for daily trips. Education plays a key role in motivaing more people to choose sustainable, active transportation to reach any destination. The menu of classes offered by Sustainable Streets includes Adult Learn to Ride, Ready to Ride, Confident City Cycling, and a 4-part Bike Maintenance series. In 2015, 72 classes were taught (up from 63 classes the year prior) with a total of 207 participants.
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STAKEHOLDER ENGAGEMENT Community Involvement – Chamber of Commerce Committees Our General Manager & Outreach Coordinator are actively involved with three Chamber of Commerce committees. Engaging with the community and attending community events maintains our public presence, keeps bicycling initiatives at the forefront, and helps grow the bicycle industry in Santa Monica. • • •
Santa Monica Bicycle Industry Forum Wellbeing Festival Committee Sustainable Quality Awards Subcommittee
In October 2013 we launched the Bike Friendly Business campaign in Santa Monica, utilizing the League of American Bicyclists Bike Friendly Business program to accredit and designate local businesses for their bike friendly efforts. With our leadership and support 4 businesses achieved a Bicycle Friendly Business designation. Currently we are in the process of working with more businesses to join the ever growing list of award recipients. Below is a list of award recipients in 2015. • Giant Santa Monica – Silver • AIKA for Urban Cycling – Bronze • CYCLEPATHIC FITNESS – Bronze • Rubin Postaer and Associates Advertising – Bronze Read a full description of the program and local achievements in our 2015 Bicycle Friendly Yearbook on the next page. LOVE YOUR COMMUTE – BIKE AND PARK SANTA MONICA – SMBIKECENTER.COM
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Hover over the image below and click the far right icon to read the full Santa Monica Bicycle Friendly Yearbook:
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COMMUNITY EVENTS January • State of the City (SMCC) February • Shared-use Mobility Conference • Westside Coalition Super Bowl-a-thon April • Sustainable Quality Awards May • National Bike Challenge • Ecochella at UCLA • Santa Monica Festival – Family Bike Hub • Business Lunch mixer for DTSM Employees at ROC. • Travel and Tourism Summit (SM) • Bike to Work Day/Week – Pit stop • Bicycle Commuting Clinic at Colorado Center • Bicycle Commuting Clinic at Lowes Hotel
June • iHeart Radio interview with GM Andrea to promote resources for beginner cyclists (in partnership with My City Bikes). July • Picnic at the Promenade Series - Maintenance Clinic August • 6th Annual Women’s in Green Forum – Bicycle Commuting Clinic September • Interbike October • SM Bike Expo November • Bike Tourism Summit – Panel on working with your local CVB • Bike Center 4 year Anniversary • McKinley Family Bike Fest & Kidical Mass December • SM Buy Local Holiday Campaign • St. Johns Hospital- Maintenance Clinic
22 Total Events 16 Santa Monica Events 1 Charitable Events LOVE YOUR COMMUTE – BIKE AND PARK SANTA MONICA – SMBIKECENTER.COM
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CUSTOMER SERVICE Bicycle Parking Utilization The Santa Monica Bike Center has been operating since November 2011. In the first four years a total of 683 members have used the bike parking facility, with an average of 171 members using the facility each calendar year. A gender statistics report tells us that since opening 68% of members are male, 27% are female and 5% are unspecified. The Bike Center provides daily bike valet for non-members. On average, we valet parked 4 bikes per day, with an annual total of 1550 in 2015. In addition, our Bikes@Play program resulted in 161 bicycle rides in 2015. Based on the first four years of operations, Bike Center members accessed the commuter facility an average of 23,000 times a year. Member entry data and bike valet counts are used to calculate the number of round trips made by bicyclists. According to this data, Bike Center members and non-members contributed an average of 32 round-trip bicycle commutes every day in 2015 towards the City’s NoNew Net Trip goals. LOVE YOUR COMMUTE – BIKE AND PARK SANTA MONICA – SMBIKECENTER.COM
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CUSTOMER SERVICE Annual Members Survey
Every year we survey our members to get valuable feedback about membership information, cycling habits, facility maintenance and staff performance. Hover over the image below, and click the far right icon to read a summary of the 2015 survey results.
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CUSTOMER SERVICE Visitors and Tourism Casual users continue to be the main revenue source at the Bike center, renting roughly 33,000 bicycles and related equipment in 2015. This includes 3,300 family bike rentals, which continues to be a unique feature of the Bike Center. In 2015 we extended our family bike rental fleet to include two new Co-Motion tandem bikes. Additionally, we changed our comfort bike fleet to feature the Momentum iWant PARK, which was the #1 rental in our fleet in 2015.
Social Media Reach & Customer Feedback 2014/2015 Platform Facebook
Likes ‘14 I ‘15 846
Followers ‘14 I ‘15
1268
Visits ‘14 I ‘15 419
Reviews ‘14 I ‘15
4.2
4.2
68
76
4.5
4.6
41
85
94% – BIKE 95%AND PARK SANTA MONICA – SMBIKECENTER.COM 4.5 4.5 LOVE YOUR COMMUTE
18
49
198
536
644
912
Yelp TripAdviso r
564
Rating ‘14 I ‘15
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Instagram: 536 followers, doubled since 12/31/14 • Yelp: 55 five star votes • TripAdvisor: #6 of 55 Tours and Activities in Santa Monica, #11 last year, 35 excellent rated reviews
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CUSTOMER SERVICE
Tour Report
Through our partnership with Santa Monica Travel and Tourism (SMTT) and an outside marketing group, Alon, we continue to grow interest in guided bike tours. Our options vary from Urban Farming, Street Art, Sweet Shops, and corporate outings. We also offered a new walking tour in 2015 featuring food from around the world by highlighting businesses on Main Street.
2015 was a record year for our tours as we signed 25 contracts with various travel companies to advertise and sell our tours. These contracts came from companies spread throughout the world in places such as Germany, Japan, China, and Russia. SMTT brought in the majority of our tour business last year, through a variety of familiarization tours that were coordinated by their office.
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OPERATIONS
2014 Facility Maintenance Costs Maintenance item
2015
Janitorial Services Cleaning supplies Window cleaning Window treatments Plumbing Pest control Security system Door maintenance Tenant improvements TOTAL
2014 $18,824 $7647 $1,800 $0 $811 $1,201 $0 $2141 $3,394 $35,818
% Change
$18,688 $5700 $900 $10,910 $1,587 $795 $2,780 $1,329 $2,414 $45,103
.7% 34% 100% -100% -49% 51% -100% 61% 41% -21%
2015 Membership Revenue Package Name
Notable expenditures and revenue: •
Window cleaning costs doubled because 2014 service contract began in July.
•
Significant reduction in plumbing costs due to monthly cleaning of shower drains by SMBC staff.
•
Increase in tenant improvement costs because of architectural plans drafted for new office in PS7.
•
Cost of cleaning supplies includes member services such as towels. There was a higher demand for towels based on membership sales.
•
The difference in total maintenance costs and membership revenue is subsidized by the operator from retail sales.
•
There was an increase in annual passes across the board.
•
There was a higher demand for passes with towel service, as well as residential passes.
2015 Net Revenue 2014 Net Revenue % Change
Annual Pass Annual Pass + Locker Annual Pass + Locker + Towel
$3,348 $5,567 $3,110
$2,179 $5,435 $2,010
Annual Pass + Towel
$141
N/A
Annual Residential Bike Storage
$711
N/A
Bikes@Work Basic Monthly Pass
$113 $8,462
$400 $8,787
Monthly Pass + Rental
$919
N/A
Monthly Pass + Rental + Locker
$156
N/A
Monthly Pass + Locker $6,014 $8,511 Monthly Pass + Locker + Towel $4,427 $1,793 Monthly Pass + Towel $1,030 $363 LOVEMonthly Pass - No Auto Renew YOUR COMMUTE – BIKE AND PARK SANTA MONICA$24 – SMBIKECENTER.COM $24
54% 2% 55%
-72% -4%
-29% 147% 184% 0%
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OPERATIONS 2015 Awards and Recognition Our goal at the Bike Center is to align our business practices with our mission, and to work with progressive communities who share our passion for encouraging people to ride bikes. The awards and recognition listed below are indicators that we are moving in the right direction. • Green Business Certification 2014-2016 – Business Greening Program with Sustainable Works • Sustainable Quality Award 2014-2015 – Excellence in Economic Development Award • National Bike Challenge – 1st in California, 17th Nationwide • Designated as 2015 Best Workplaces for Commuters • Bike Friendly Business 2012-2018 – Platinum designation through the League of American Bicyclists.
Charities and Events We Supported in 2015 • • • • • • •
LOVE YOUR COMMUTE – BIKE AND PARK SANTA MONICA – SMBIKECENTER.COM
Sustainable Streets League of American Bicyclists Santa Monica Next Chamber of Commerce / SQA Westside Coalition Heal the Bay Shared Use Mobility Center
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Andrea Aponte, General Manager Bike and Park Santa Monica LLC Operators of the Santa Monica Bike Center andrea@smbikecenter.com smbikecenter.com (310) 656-8500 LOVE YOUR COMMUTE – BIKE AND PARK SANTA MONICA – SMBIKECENTER.COM
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