HomeMy WebLinkAboutItem 04 - Visitor Shuttle ITEM #
MEMO TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: PAUL W. McCALLUM, EXECUTIVE DIRECTOR I5
MEETING DATE: APRIL 7, 2009
SUBJECT: GRAPEVINE VISITOR SHUTTLE SYSTEM PROPOSAL
RECOMMENDATION:
Mayor and City Council to consider the implementation of a Grapevine Visitor Shuttle
System intended to increase visitor traffic and spending at Grapevine's retail, restaurant,
attraction and lodging facilities and to authorize enough employees that would be equal
to eight, full-time positions to operate the system.
FUNDING:
Funding will be provided by Hotel Occupancy Tax through the CVB Account Number
115-42200-350-01, plus the 4B Sales Tax and fare revenues for a total of$771,964.00.
1st YEAR COST PROJECTIONS:
• Projected Annual Costs - $771,964
• Projected Fare Revenue - $218,000
• Projected Charter Revenue - $24,000
BACKGROUND:
Extensive research was performed with the hotels, attractions, restaurants, wineries,
Historic District merchants, Bass Pro Shops Outdoor World and Grapevine Mills to
determine the estimated volume of visitor ridership to and from these destinations.
Included in the research were the periods of highest demand. The estimated ridership
figures were over 75,000 riders in 2007 and over 111,000 in 2008. Due to the fact that
these numbers were on-property estimates, we have taken a more conservative
approach in projecting 57,000 in the start-up year. Also, we have taken into account the
timeframe necessary to spread the awareness of the shuttle system to the hotel,
restaurant and attraction staffs and, in turn, their guests. We believe that once the
awareness level of the hotels and guests begin to escalate, over a period of 10 to 18
months, the ridership is expected to exceed the 2008 actual hotel numbers.
The Convention and Visitors Bureau will lease four, 24 passenger buses for a period of
36 months and acquire a used bus for back up purposes. The shuttle system will
operate under the Grapevine Vintage Railroad which will provide management. Full-
time and part-time drivers will be hired and trained to operate the system seven days per
R:\AGENDA\04-07-09\April 7 2009-shuttle proposal to council.doc April 2,2009(11:38AM)
week. The additional positions are included in the proposed operating budget.
Following input from the Mayor and Council during the January 20th Workshop, the trial
run conducted on January 30th and the Workshop held on March 24, the routes have
been amended to four buses running four routes. The routes will utilize two transfer
points which will reduce the onboard time for cross town guests.
The costs for this Visitor Shuttle System will be borne by the Hotel Occupancy Tax, 4B
Sales Tax and fare revenues. No funds from the general fund or property tax will be
expended on this Visitor Shuttle System.
Staff recommends approval.
PWM/br
R:WGENDA\04-07-09 Wpril 7 2009-shuttle proposal to council.doc April 2,2009(11:38AM)