DIRECTION REGARDING WEHO PEDALS BIKE SHARE PROGRAM AND DOCKLESS BIKE SHARE PILOT MAYOR PRO TEMPORE JOHN D' AMICO COUNCILMEMBER LAUREN MEISTER

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1 CITY COUNCIL DECEMBER 3, 2018 NEW BUSINESS SUBJECT: INITIATED BY: DIRECTION REGARDING WEHO PEDALS BIKE SHARE PROGRAM AND DOCKLESS BIKE SHARE PILOT MAYOR PRO TEMPORE JOHN D' AMICO COUNCILMEMBER LAUREN MEISTER PREPARED BY: STATEMENT ON THE SUBJECT: COMMUNITY & LEGISLATIVE AFFAIRS DIVISION John Leonard, Manager) Oz-1--- Andi Lovano, Senior Management Analys tt- The City Council will consider directing staff to begin the process of ending the existing WeHo Pedals bike share program and to develop a dockless bike share pilot program in West Hollywood. RECOMMENDATIONS: 1) Direct the Parking Services Division to initiate the process of ending the City's bike share program as currently structured, including terminating the existing agreement with CycleHop, LLC to operate and maintain the program. 2) Direct the Parking Services Division and the Long Range Planning Division to research and develop a dockless bike share pilot program in West Hollywood. 3) Report to the Transportation Commission on the development of the dockless bike share pilot program before returning to City Council for final review. BACKGROUND / ANALYSIS: In August 2016, West Hollywood launched WeHo Pedals, a citywide bike share system consistent with those in Santa Monica, Beverly Hills, and the UCLA campus. The City entered into an agreement with CycleHop, LLC for the purchase, installation, operation, and maintenance of GPS- enabled " smart bikes" available to residents, visitors, and commuters. The program consists of 150 bikes at 21 dedicated stations distributed in and around West Hollywood. The bikes operate as one of the City's numerous transportation options. In January 2018, staff brought forward an update on the status of the bike share program during the first sixteen months of operation, which included information about program enhancements since launch, revenue and funding, customer feedback, and next steps. The report explained that in the first sixteen months of operations, while operating as a geographically isolated system and without a permanent system Page 1of6 AGENDA ITEM 5. A.

2 sponsor, WeHo Pedals, was not yet on a path to become financially self-sustaining. The revenue received over twelve months only covered 33 percent of the system' s operational costs, not including City staff time. Total income was $ 133, 771 and the operating expenses were $ 344,750 per year. At the time, it was anticipated that funding for the ongoing operations of the bike share program would come from user fees, revenue from station- based advertising, and a system-wide sponsorship. However, revenue from user fees continues to be far below initial estimates, and CycleHop has been unable to secure a system- wide sponsor. The City also entered into a Regional Bike Share Memorandum of Understanding to formally connect West Hollywood' s bike share system to identical bike share systems in Santa Monica, Beverly Hills, and UCLA. The hope was that regional integration would create a contiguous system area using the same pricing structure, with a single membership for riders, and including all the bike share bikes owned by the separate partners. This regional system, known as Bike Share Connect, provides members with access to 830 bikes and more than 139 stations throughout the Westside; however, ridership in West Hollywood has not significantly increased. Even with the implementation of the regional program, the bike share system remains an underutilized program and an inefficient use of resources. In the last six months, the program has averaged about 45 trips a day, and the average cost is $ 25 per trip. While the program' s goals of encouraging alternate modes of transportation and reducing greenhouse gas emissions are important priorities for the City, there may be alternatives that could accomplish the same goals while being more user-friendly, more accessible, and more cost effective. Dockless Bike Share Since the implementation of the bike share program, new technologies have emerged, such as dockless bikes, which are becoming more popular for their accessibility and ease of use. Dockless bike companies offer shared bicycles for rent on sidewalks and private property. With this privately-owned and operated dockless bikeshare model, the bikes do not need to be locked to a standard rack and do not require designated stations or hubs. The bikes are accessible via a mobile app and the user pays per ride, similar to the way a ride is initiated for rideshare companies like Uber and Lyft. The dockless bikes are managed by for-profit bike share companies, rather than municipalities, and require no public funds. These bike share companies are wellfinanced and have targeted westside cities such as Santa Monica and West Hollywood for expansion. Santa Monica and Los Angeles have begun dockless bike pilot programs. The programs include permitting certain companies to offer dockless bikes, limiting the total number of bikes in the cities, increasing transparency and regulations for safe use, and collecting data on usage and customer experience. Page 2 of 6

3 In developing their pilot program, the City of Los Angeles established several regulations aimed at increasing public safety and gathering data for the program. ( Los Angeles' s program also includes e- scooters, which are not permitted in West Hollywood). A few of the regulations include: Fees: Operators will pay a $ 20,000 annual fee, plus $ 130 per device ( same as the city of Santa Monica.) For services in low-income areas, the per-device fee will be $ 39. Fleet Size: The initially permitted fleet size will be 3, 000 devices, with up to 7, 500 additional devices serving low-income areas. Data: Operators are required to report usage data to the city. This is one of the key components of the pilot program. Los Angeles is implementing realtime data sharing, measurement and regulation for municipalities and service providers. This data system is available to any City that wishes to similarly track shared scooters and bicycles within its boundaries. It is meant to ensure that governments have the ability to enforce, evaluate and manage providers in a standardized, predictable format. Equity Provisions: In addition to the fleet size incentive above, operators must offer a way for people without smart phones to use the service, an option to pay with cash, and a low- income plan with reduced fares, as well as provide a multilingual mobile app and a call center. Liability: The LA City Council increased the operators' general liability insurance requirements from $ 1 million to $ 5 million, and specified that indemnity provisions would apply to both companies and individual riders. Santa Monica is taking a similar approach with the new transportation options by establishing a 16- month pilot program, which also allows for both scooters and bicycles. Unlike Los Angeles, Santa Monica limited the number of vendors that can operate in the City. Santa Monica has also taken several steps to increase public education and safety on the new devices. The City as designated sidewalk boxes for parking dockless vehicles in a way that won't impede the right-of-way. They have also launched a public education campaign, subsidized by legal and impound fees collected from dockless scooter and bicycle operators and earmarked for mobility education, to help equip riders with the rules of the road. Local Pilot Program This item directs staff to end the existing station- based, WeHo Pedals bike share program that is currently operating in West Hollywood. This direction includes terminating the existing contract with CycleHop, LLC to operate and maintain the program. The existing agreement with CycleHop allows for termination of the agreement Page 3 of 6

4 at the City's discretion with the notice given in writing at least 30 days before the date of termination. In place of the current program, this item recommends the establishment of a dockless bike share pilot program. The intent is for the existing bike share program to end when the dockless bike share program begins so there is no gap in service. The pilot program will allow for a limited number of dockless bike share companies to operate in West Hollywood for a certain time period, likely six months to one-year. A pilot program would set strict and clear parameters for vendors looking to operate within the City and require orderly management of the bikes so as not to negatively impact public spaces ( e. g. impede sidewalks). The pilot program will be for bikes only, and will not change the City's existing prohibition against e- scooters. During the pilot program, staff will evaluate the dockless bike share program and make recommendations regarding next steps. Key issues to evaluate include: ridership levels number of rides, miles traveled, key destinations), operational standards ( bikes parked in intended locations, rebalancing/ redistribution of bikes, bikes per square mile, number of bikes in good repair), user experience ( end user behavior and satisfaction). Other jurisdictions that are experimenting with similar pilot programs have found that it is helpful to have expectations that are clearly communicated with the bike operators, preestablished infrastructure that encourages safety and legal riding, rules with consequences, and transparency between the operator and city. Data sharing agreements have also been integral to enforcing the permitted regulations, and provides cities with valuable information about user's habits, that can be used for infrastructure planning efforts. The dockless model supports the City's goal of making biking an easy, affordable, and convenient option for getting around. Because of the lower price point to entry, dockless bike share would allow more of the West Hollywood population to access bike share. This would allow the City to remain at the forefront of bike sharing in Southern California, testing new mobility options along with our neighboring cities, and refining operational standards to best meet the needs of our community. CONFORMANCE WITH VISION 2020 AND THE GOALS OF THE WEST HOLLYWOOD GENERAL PLAN: This item is consistent with the Primary Strategic Goal(s) ( PSG) and/or Ongoing Strategic Program( s) ( OSP) of: OSP- 1: Adaptability to Future Change. OSP- 4: Transportation System Improvement. In addition, this item is compliant with the following goal(s) of the West Hollywood General Plan: Page 4 of 6

5 G- 3: Provide excellent customer service, including utilization of emerging technologies. M- 2: Collaborate on regional transportation solutions that improve mobility, quality of life and environmental outcomes. EVALUATION PROCESSES: Staff will develop evaluation criteria as part of the dockless bike share pilot program, including the amount and type of ridership, and consumer feedback. ENVIRONMENTAL SUSTAINABILITY AND HEALTH: A bike share program helps to reduce local traffic congestion, increase bike ridership throughout the city, and reduce the City' s greenhouse gas emissions. These measurable impacts target the GHG reduction goals set in the 2011 Climate Action Plan. Bike share has also been a contributor to community health by offering affordable and accessible bicycles to the public. COMMUNITY ENGAGEMENT: The City conducted trainings and informational workshops and engagement opportunities for community members and residents regarding the current bike share program. As the program transitions to the dockless pilot program, the City will have to expand community engagement to ensure that current riders can transition to the new program and new riders are aware of the program and are educated on how to readily access the dockless system. OFFICE OF PRIMARY RESPONSIBILITY: DEPARTMENT OF PUBLIC WORKS / PARKING DIVISION PLANNING & DEVELOPMENT SERVICES DEPARTMENT/ LONG RANGE PLANNING DIVISION FISCAL IMPACT: In January 2018, staff projected that the City's existing bike share program would continue to generate a deficit each year of nearly $ 400,000. The City's initial capital investment for the program was approximately $ 500,000, and it was anticipated that excess revenues in future years of operation would help off-set the initial capital investment. Based on data from the last twelve months ( November 2017 through October 2018), the program continues to generate a deficit. This is due to several factors: there is no system-wide sponsorship as was originally intended and the ridership is much lower than originally anticipated. The program originally projected 8, 000 trips per month ( 263 trips per day), and in the past twelve months the actual average ridership level has been only trips per day). 14% of projections ( 1, 124 trips per month or 40 Page 5 of 6

If Council decides to terminate the existing program at this time, the City will no longer incur costs related to the program, a potential General Fund savings of up to $ 400,000 annually.

6 If Council decides to terminate the existing program at this time, the City will no longer incur costs related to the program, a potential General Fund savings of up to $ 400,000 annually. Further, the City may sell the existing bike share equipment ( stations, advertising signs, and bicycles) to offset costs. Bike Share Performance Summary - Projections vs. Actual Original Actual 111 Actual Y2 Actual Y3, Q1 Projections Aug16- July17) ( Aug17- July18) ( Aug18- Oct18) Annual Revenue User fees 262, , , 789 8, 344 Station- based advertising System- wide sponsorship 115, , , , , , Total Income 602, , , , 350 Annual Expenses Operating Expenses 344, , , , 188 City Employee Expenses* 155, , , Total Expenses 500, , , , 188 Net Revenue to City 102, , , ,838 Ridership Avg. Monthly Trips 8, , Avg. Daily Trips Avg. Cost Per Trip The City hired a temporary staff person to administrate the bike share program. The temporary employee' s contract ended in June At that time, the administration of the bike share program was transferred to the Parking Services Division and is now included in staffs existing work plans. Page 6 of 6

CITY COUNCIL UNFINISHED BUSINESS SUBJECT: INITIATED BY:

CITY COUNCIL UNFINISHED BUSINESS JANUARY 16, 2018 SUBJECT: INITIATED BY: UPDATE REGARDING THE WEHO PEDALS BIKE SHARE PROGRAM, AUTHORIZATION OF MOU WITH REGIONAL BIKE SHARE SYSTEM PARTNERS, AND UPDATE REGARDING