Transportation System Improvement OCTOBER 19, 2015 CITY COUNCIL CONSENT CALENDAR SUBJECT:

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1 CITY COUNCIL CONSENT CALENDAR OCTOBER 19, 2015 SUBJECT: INITIATED BY: PURCHASE ORDER WITH CYCLEHOP, LLC FOR BICYCLE SHARE EQUIPMENT COMMUNITY DEVELOPMENT DEPl\RTMENT (Stephanie DeWolfe, AICP, Director~ (John Keho, AICP, Assistant Director)q_.K 0 (Bianca Sieg I, Long Range & Mobility ~lanning Manager) (5Z e,.,,( (Chris Corrao, AICP, Associate Planner) r.;j STATEMENT ON THE SUBJECT: The City Council will consider approval of a purchase order with CycleHop, LLC (CycleHop) for the purchase of bicycle share equipment. RECOMMENDATION: Authorize staff to proceed with a purchase order with CycleHop for the purchase of bicycle share equipment for a total not to exceed $119,250 in support of the citywide bike share program. BACKGROUND ANALYSIS: On August 17, 2015 the City Council approved a 150 bicycle 'smart bike' bike share program planned for launch in Spring 2016 (Attachment B). The operator, CycleHop, LLC will utilize Social Bicycles (SoBi), which offers a technologically advanced bike share model. This is the same type of system that will be used by the pending City of Santa Monica and City of Beverly Hills bike share programs. The City will be contracting with CycleHop for the installation and management of a bike share program. This authorization is for 50% of the cost of 150 SoBi bicycles, with onboard technology, skirt guards and 8 gear hubs, and 50% of shipping costs. The purchase order will allow staff to expedite the launch of the City's bike share program. The manufacturing and shipping of bike share equipment takes approximately six months from the time the order is submitted. Approval of this purchase order will allow for a timely launch of the bike share system, while continuing to finalize the operational agreement with CycleHop. Staff is anticipating the launch of the bike share program in Spring Next Steps Staff will return to City Council on November 2, 2015 with an agreement with CycleHop for the installation and operation of the bike share system. CONFORMANCE WITH VISION 2020 AND GOALS OF THE GENERAL PLAN This item is consistent with the following Vision 2020 Strategic Programs: Transportation System Improvement AGENDA ITEM 2. 0.

2 Adaptability to Future Change This item is also consistent with the following goals of the West Hollywood General Plan: M-1: Develop a world-class transit system in West Hollywood. M-2: Collaborate on regional transportation solutions that improve mobility, quality of life, and environmental outcomes. EVALUATION: Long Range & Mobility Planning staff will monitor and evaluate the rollout process of citywide bike share. Once bike share is operational in April 2016, staff will ensure that agreed upon performance standards are being met by CycleHop. ENVIRONMENTAL SUSTAINABILITY AND HEAL TH: Bike share programs have the potential to reduce local traffic congestion, increase transit ridership, and reduce the City's contribution of greenhouse gas emissions. Bike share can improve public health by offering affordable and accessible bicycles to the public. Smart bikes provide data on cumulative Vehicle Miles Traveled and can help the City account for greenhouse gas emission reductions associated with bike share in an effort to meet the GHG reduction goals set in the 2011 Climate Action Plan. OFFICE OF PRIMARY RESPONSIBILITY: Community Development Department FISCAL IMPACT: 50% of the cost of 150 So Bi 'smart bikes' with on board technology, including skirt guards, 8-speed hubs, and shipping costs is due upon placing an order. That total comes to $119,250. $500,000 has been allocated in the City budget for the citywide bike sharing program in account numbers , , ATTACHMENTS A. Social Bicycles Equipment B. City Council Staff Report - August 17,

3 SoBi Bicycle Features 8-GEAR SMART BICYCLE Adjustable comfort seat Eight-speed internally geared hubs Chain less shaft-drive transmission Integrated locking mechanism Grip bell Easy access low frame Kickstand Reliable & intuitive braking nwl't your nw fllhess ROUT\ HE Punctureresistant Kevlar tires Hub brakes WESTSIDE cmes BIKE SHARE CYCLEH0P ATTACHMENT A

4 Social Bicycles (SoBi): Smart Bike System Social Bicycles are "smart bikes" equipped with a solar powered, GPS-enabled lock. Find, reserve, and unlock a bike with your mobile phone. You can park a bike at system hub locations or at any public bike rack. WESTSIDE CITIES BIKE SHARE CYCLEH0P

5 CITY COUNCIL UNFINISHED BUSINESS AUGUST 17, 2015 SUBJECT: CITYWIDE BIKE SHARE PROGRAM INITIATED BY: COMMUNITY DEVELOPMENT DEPARTMENT (Stephanie DeWolfe, AICP, Director) (John Keho, AICP, Assistant Director) (Bianca Siegl, Long Range & Mobility Planning Manager) (Georgia Sheridan, AICP, Senior Planner) (Chris Corrao, AICP, Associate Planner) STATEMENT ON THE SUBJECT: The City Council will consider a proposal to implement a 150 bicycle 'smart bike' citywide bike share program by Spring 2016 in West Hollywood. RECOMMENDATIONS: 1. Direct staff to negotiate a contract with CycleHop, LLC for the purchase, construction, installation, operation and maintenance of a 150 'smart bike' bike share system for a period of three years, with two, two-year extensions. 2. Direct staff to launch public outreach process to solicit community input on potential station locations. 3. Prioritize implementation of bike infrastructure improvements upon completion of Pedestrian & Bicycle Mobility Plan. EXECUTIVE SUMMARY: This report summarizes the City's efforts to develop a public, city-wide bike share program in West Hollywood, and describes the proposed program operated by CycleHop, LLC (CycleHop), with equipment from Social Bicycles. The report addresses recent progress in implementing bike share with CycleHop in other Westside communities (Santa Monica, Beverly Hills, and UCLA), includes a discussion of Metro's the separate traditional bike share program to be operated by Bicycle Transit Systems, and addresses the differences and compatibility of the two systems. West Hollywood is well suited for bike share based on its urban form, demographics, residential density, employment density and destinations. CycleHop recommends a 150 bicycle 'smart bike' bike share system using Social Bicycles, which can be locked at bike share stations, as well as City bike racks. 'Smart bikes' use wireless technology that allows for bicycles to be parked and locked at any public bicycle rack, in addition to designated stations. An initial system size of 150 bikes at 20 stations is proposed as Phase I of a two-phase rollout. An optional Phase II could add 100 bicycles and 10 additional stations if and when demand justifies an expansion for an overall total of 250 bicycles at 30 stations citywide. The initial phase would locate stations in key 1 ATTACHMENT B

6 commercial districts throughout the City. West Hollywood has a strong advertising market and could likely attract advertisers and sponsors to offset program costs. CycleHop estimates capital costs to be approximately $508,000 with annual operating costs of approximately $345,000 for a 150-bike system (Phase I). With advertising revenues and user fees, CycleHop projects that the City could net over $200,000 in revenues annually. This report concludes with an implementation strategy for Phase I of a bike share system in West Hollywood. Should the City Council elect to move forward with this proposal, staff anticipates a six to nine month implementation period from contract execution to full program rollout. If a bike share program is approved, staff will return to City Council with a contract between the City and CycleHop. The contract is a three year contract with two separate optional two-year extensions for a total potential contract length of seven years. Staff will return to City Council to discuss program logistics, fare structure, branding, advertising/sponsorship, and bicycle facility improvements prior to deployment of bike share. BACKGROUND ANALYSIS: Bike share is a public bicycle transportation system that provides bicycles for short trips (typically between one and three miles) from bike stations placed at strategic locations throughout a city. It is a low cost system that reduces barriers to urban cycling by eliminating the need to store and maintain a bicycle. Bike share bicycles typically have headlights, tail lights, and cargo baskets, and provide residents, employees, students, and visitors with a fun and zero emission mode of transportation. The number of bike share systems in the United States has grown significantly in the last decade, with some large systems such as 'Citibike' in New York City with over 10,000 bicycles. Program Goals The following goals have informed the development of the recommended bike share system in West Hollywood: A West Hollywood bike share system should accommodate demand and provide efficient point to point bike transportation at a low cost. The system should be revenue neutral or positive and leverage the City's desirable advertising market to the fullest extent possible to cover operational costs. In addition, the City should use innovative and technologically advanced equipment to serve the diverse needs of the City's dense urban environment, provide ease of use for customers, and connections to key destinations within and around West Hollywood. The system architecture (i.e. bike equipment, docks and applications) should be easy to use, light, modular, and minimize its footprint on the City's sidewalks and public spaces. Lastly, the system should provide connectivity to key local destinations within and near City limits, and be easy to use for customers/riders. A West Hollywood bike share system should also be compatible with neighboring jurisdictions to the extent possible allowing users to travel to nearby destinations outside of the City's boundaries. 2

7 Previous Direction After a presentation on bike share on June 2, 2014, the City Council directed staff to return with an implementation plan for a citywide bike share system consistent with the City of Santa Monica's bike share program and coordinate with the principles, goals and objectives for a regional bike share network as put forth by the Westside Cities Council of Governments (WSCCOG). Staff was directed to engage with CycleHop to assess how a similar citywide bike share program could be implemented in West Hollywood. Staff provided City Council with an update on bike share on January 20, Staff has also provided updates on regional bike share efforts to the Transportation Commission at the following meetings: March 20, 2014 and August 20, 2014, and most recently on July 15, Transportation Commission At the July 15, 2015 Transportation Commission hearing, the Commission unanimously recommended that the City Council direct staff to contract with CycleHop for a bike sharing program in West Hollywood (Attachment D). Other comments expressed concern over distribution of helmets, and ensuring that bicycle facility improvements are made as part of this program. Commissioners also suggested that discounts or reduced rates should be offered to residents in addition to low-income constituents. Finally, comments suggested that a robust bicycle safety campaign should accommodate a bike share program to educate users about the rules of the road, discourage cycling on sidewalks, and encourage appropriate cycling behavior. The Bicycle Task Force The Bicycle Task Force (BTF) was established in November 2010 as the City was in the final stages of the General Plan update. The BTF was comprised of 18 members representing various commissions, residents, and City staff. The recommendations of the BTF have resulted in projects such as the installation of bicycle sharrows on Sweetzer Avenue and Fountain Avenue, and led to the creation of the West Hollywood Bicycle Coalition, which is part of the Los Angeles County Bicycle Coalition. The work of the BTF helped lay groundwork that informed the update of the Pedestrian and Bicycle Mobility Plan, which serves as the guiding document for pedestrian and bicycle infrastructure improvements. In addition, the Bicycle Task Force Report recommends the development of a bike share program for West Hollywood. Bike Share Programs in the Westside Cities The City of Santa Monica has been a regional leader in bike share implementation. In February 2014, the City of Santa Monica released a Request for Proposals (RFP) to install and operate a bike share system. Representatives from each Westside City, including West Hollywood staff, worked closely with Santa Monica during their exploration process, reviewed the RFP prior to its release, and participated in the interview panel to select CycleHop as the best vendor, utilizing the most current and technologically advanced equipment. At their November 11, 2014 City Council meeting, the City of Santa Monica awarded a contract to CycleHop for the purchase, construction, installation, and operation of a 500 bicycle bike share system. The Santa Monica bike share system will have approximately stations and will use Social Bicycles (smart bikes). Santa Monica expects a November 2015 system launch date. 3

8 Throughout the development of their program, the City of Santa Monica has been working with WSCCOG to ensure that their bike share system could be scalable to the region. The City of Santa Monica negotiated terms that include a "me-too" clause, which guarantees that other cities in the region can contract with CycleHop under the same pricing and contracting terms making it easily adaptable and expandable for other jurisdictions. As a result, other Westside Cities/communities are pursuing bike share programs with CycleHop (see Attachment B). The City of Beverly Hills, UCLA, and the City of Long Beach are all moving forward with CycleHop-operated bike share programs featuring Social Bicycles. The City of Culver City has actively participated in regional bike share discussions and recently initiated a bike share feasibility report. Century City may also be considering a bike share program in the near future and has expressed an interest in better connecting its employees that reside in West Hollywood to Century City. West Hollywood Bike Share Suitability The City's residential density, employment density, strong advertising market, tourism trade, and high number of destinations create a positive environment for bike share. The City is well served by public transit, and has a lower than average vehicle ownership rate, with many residents who are already engaged in the sharing economy and frequent users of transportation services like Uber and Lyft. West Hollywood is an active community and was rated as the most walkable city in California in both 2011 and However, traffic and parking continue to be the issues that residents dislike the most about living in West Hollywood, according to the 2013 Community Study. While the City has limited ability to reduce regional traffic congestion that impacts the City, a bike share system with smart bikes could provide a new transportation mode for residents and visitors to bypass traffic and reduce parking hassles. West Hollywood has 3.5 miles of bike lanes and sharrows, and plans to continue to expand the bicycle network following completion of the Pedestrian and Bicycle Mobility Plan update in early While the City has made a number of improvements in recent years to bike facilities, further improvement will be necessary to support and grow bike share in West Hollywood. As increasing numbers of cyclists take to City streets, the City must initiate and commit to measured and continuous bicycle improvements to ensure a comfortable experience for bike share users. CycleHop Experience & Services Founded in 2011, CycleHop currently has five bike share systems operating in the United States and Canada, with six additional programs scheduled for rollout over the next year. The list below indicates CycleHop's partner cities with pending bike share programs noted with an asterisk: City: *Atlanta, GA *Beverly Hills, CA *Long Beach, CA *Louisville, KY #of Bicycles: Scheduled Rollout Summer 2015 Winter 2015 Winter 2016 Spring

9 Orlando, FL Ottawa, ON Phoenix, AZ San Ramon, CA *Santa Monica, CA Tampa, FL *UCLA Campus *West Hollywood Operating Operating Operating Operating Fall 2015 Operating Spring 2016 Spring 2016 Total bicycles in operation: 1,800 *Total bicycles planned for operation: 1,950 (West Hollywood not included) As a bike share system operator, CycleHop is responsible for program administration, technical support, equipment maintenance, daily distribution and rebalancing of bikes, as well as the initial equipment installation and siting, ongoing customer services for program registration and payments, and in some cities, advertising and sponsorship. Social Bicycles (Smart Bikes) Social Bicycles was founded in 2010 in Brooklyn, New York, and manufactures wireless enabled 'smart bikes' for 15 bike share programs worldwide. The CycleHop system utilizes equipment and technology from Social Bicycles and represents the most advanced "smart bike" bike share technology available and ready for widespread deployment. Typically, bike share systems have relied on a traditional configuration, where a group of bicycles are parked to a dock with an electronic kiosk. The customer uses the kiosk for payment, and bikes are then dispensed (i.e. unlocked) to riders. In contrast, Social Bicycles (smart bikes) allow for customers to rent (i.e. unlock) and return (i.e. lock) a bike directly from onboard technology embedded in the bike, rather than a kiosk. Each smart bike has GPS technology embedded in the bike, allowing for a number of significant benefits including the following: 1. Parking: Smart Bikes address a frustration for some users of traditional bike share systems where riders reach their destination to find no docking spaces available. The issue is so prevalent that the term "dock-blocking" has become known in the bike share industry to describe this situation. With the traditional model of bike share, the rider must proceed to another station until an available dock is found to return the bike. With smart bikes, bicycles are available at stations, however the onboard technology allows users to lock the bike to any available bicycle rack. All available bikes will be shown on a smart phone app. Credits are offered to users who return bikes to station areas, reducing the burden of rebalancing bicycles, and lowering the cost to bike share users. 2. Apps: Riders can use a smartphone app to reserve bikes, pay for rental, find available bikes using real-time GPS, track rides online, and share their rides with their social networks. 3. Data: With GPS data embedded on all smart bikes, cities are able to collect critical data on travel patterns and system usage. This information can help 5

10 the City in a number of ways, including: a. Tracking reductions in Vehicles Miles Traveled (VMT) associated with bike share; b. Informing the need and location of future station locations; c. Enhancing the City's Transportation Demand Management program; and d. Providing feedback from users to identify high-demand bike routes. 4. Payment: With the smart bike model of bike share, fares can be paid through a smart phone app, online with a credit card, or through a payment kiosk (the City intends on having one central payment kiosk where customers without smart phones can purchase memberships). Social Bicycles will be implementing a cash payment option in winter 2016 via Pay by Me, where users can pay cash at a convenience store for membership in lieu of using a credit card. 5. Footprint: Smart bike racks are more slender and lighter than traditional bike share stations. This is due to the fact that the locking mechanism is on the bike itself, eliminating the need for underground utility connections, and locking mechanisms built into the dock. Smart bike stations are essentially branded linear bike racks with wayfinding and program information, and may include space for advertisement. In a City like West Hollywood with many competing uses for limited sidewalk space, a smart bike system is the best option for minimizing clutter in the public right of way. Advertising & Sponsorship Given the City's high desirability for advertising, there are favorable market conditions to help fund a bike share program through outdoor advertising and sponsorship. CycleHop's preliminary analysis estimates the value of sponsorship and advertising to be approximately $300,000 annually. This forecast was based on advertising market conditions in the area, "out of home" advertising ratings based on visibility for potential bike share stations, and analysis of comparable bike share programs operating in other cities. While CycleHop has the ability to provide advertising and sponsorship procurement services, the City may choose to contract with any advertising service provider. The Bike Share Feasibility Study provides more information on advertising in terms of type, location, and potential revenues. The City has a pending Street Media study that will look at outdoor advertising (bus benches and other City assets) in the public right of way holistically. When the Street Media project is complete, advertising for the bike share program could be managed under the same contract which would bring consistency in advertising to the public right of way. CycleHop provides advertising and sponsorship procurement as one of its services and can manage bike share advertising until the City is ready to transfer that responsibility to another vendor that will be handling the City's other outdoor advertising assets. 6

11 Budget Preliminary figures indicate that the initial capital costs of this program could be repaid over a three year period after securing sponsorship and an advertising contract. Estimated Startup Costs: Total Equipment & Installation: Estimated Annual Expenses/Revenue: Projected User Fees: Projected Advertising: Total Annual Revenue: Total Operating Expenses: Projected Net Revenue to City: $508,315* $262,500 $300,000 $562,500 -$ $218,178 * $500,000 has been allocated in FY15-16 budget. Additional expenses for possible curb or sidewalk reconfiguration are not included in this amount, and will be determined during the station siting process. Preference will be given in the station siting criteria for locations that do not require any concrete work. The revenue projection from user fees is based on Santa Monica's adopted fare structure. Adoption of a different fare structure for West Hollywood could change this estimate. Staff will conduct an analysis and return to City Council for further discussion regarding membership rates, hourly rates, possible discounts to low income residents, other discounts or incentives, and resulting impacts to projected user fees. Advertising revenue estimates are optimistic, and assume future coordination with other advertising assets described in the Street Media program. Actual revenues in the first few years of the bike share program may be lower. A limited percentage of sponsorship/advertising revenues may be deducted for advertising/sponsorship management and procurement. In addition, assumed station locations used to calculate advertising revenue projections may not be feasible due to site planning considerations such as solar access, adequate public right of way, visibility near driveways, clearance from utility boxes and traffic signals, etc. Proposed Implementation Strategy Staff proposes the following implementation strategy to roll out a successful bike share program in West Hollywood, in partnership with CycleHop. August> September Execute Contract and Purchase Bicycles: Initiate a three year contract with CycleHop, with two optional two year extensions for a total of seven years, similar to the terms developed by the City of Santa Monica for the installation, operations, and maintenance of a 150 bike system, with potential for expansion to 250 bicycles with future demand. October > November Conduct Community Outreach: Staff and CycleHop will conduct a public outreach campaign and create a "suggest a station" website where constituents can pin a 7

12 desired station location on a map. Outreach will be conducted to hotel operators, major employers, local business owners, residents, bicycle community groups and organizations, and managers/property owners of large development projects. CycleHop will engage the community in a branding effort to name the West Hollywood system. December> January Finalize Station Locations: Staff will identify bike station locations based on input from the community, business and property owners, available space within the public right of way, solar access, key destinations, consideration for advertising, and appropriate distribution of bike stations across the City. Staff will coordinate with neighboring cities, to secure potential station locations nearby yet outside of West Hollywood's borders. Of particular interest is the Hollywood & Highland area for access to the Metro Red Line subway (approximately 2.5 miles from City Hall), in addition to the Grove/Farmer's Market area. In addition, locations will be identified where sidewalk/parking configurations may need to change to accommodate racks. The Long Range & Mobility Planning Division will coordinate with the Department of Public Works to accommodate any physical changes necessary. Staff will return to the Transportation Commission and City Council with an update on the final station locations. Attachment C illustrates preliminary proposed station locations. February > April Site Preparation, Installation & System Test: The City will complete any remaining concrete and landscaping site preparation work for bike share stations by February. System installation will take place soon after that time, with a system test occurring in March 2016 and full public launch planned for April Additional Considerations During the implementation process and throughout operation of the bike share system, several additional considerations will be evaluated and addressed, and may brought back to the Transportation Commission and City Council for further direction as appropriate, including the following: 1. Bicycle Facility Improvements: The Pedestrian and Bicycle Mobility Plan will identify priority projects to support bike share readiness. The City should seek to quickly implement key bike facility improvements and work to eliminate gaps in the existing bicycle network so that there are more comfortable routes with improved wayfinding for cyclists of all skill levels. 2. Operational Safety: The City may wish to consider limits on the nighttime use of bicycles in entertainment districts to discourage drinking and cycling. The smart bike model allows for bicycles to be disengaged (i.e. turned off) in designated areas at certain times of the day if desired by the City. In addition, staff will work towards establishing a helmet policy for the City and make helmets available either through a kiosk, or via a coupon to local bike shops. 3. Transit Payment Integration: The City is working with the Westside Cities and Metro to address compatibility with Metro's system, including striving to integrate both 8

13 systems with Metro's TAP Pass program in the future. A significant barrier to TAP integration is that bike share requires a credit card to deter the theft of bikes, and the TAP system is not linked to a credit card. However, it is possible for a TAP card to be used as a membership identifier, and users would be required to then enter a PIN for payment. Metro has indicated that it may require cities using other bike share vendors (such as West Hollywood) to pay for costs related to integration with its fare payment systems. Staff will continue to work with Metro and with other Westside cities on TAP integration and encourage interoperability of all regional bike share programs. 4. Advertisina. Branding & Sponsorship: Staff will evaluate advertising options, coordinating with the Street Media project, secure vendors, and execute contracts for program sponsorship. Staff will return to the City Council with recommendations for the advertising program. Staff recommends green bicycles, to be consistent with Social Bicycles in the City of Santa Monica and the City of Beverly Hills. Developing a name and brand for the program will be part of the public outreach process led by a vendor. Finally, refining sponsorship and advertising projections will provide a more detailed and accurate revenue projection for the City. 5. Bicycle Safety Education: Bicycle safety education will be an important component of bike share in West Hollywood. Staff will work with the West Hollywood Bicycle Coalition, CycleHop and regional bicycle safety organizations to promote safe riding behaviors, discourage cycling on City sidewalks, and will also work to make motorists aware of the new bike share program through public service announcements. Bicycle safety classes will be offered to residents and visitors, and staff will work with the Sheriff's Department to assist with public outreach and also to enforce the City's regulations. 6. Fee Structure: Staff will evaluate the City of Santa Monica's fee structure, and consider various types of discounts that could be offered to low-income residents. In addition, fees should be set as to encourage annual memberships for residents, while making program accessible to visitors as well. 7. Sunset Boulevard: Sunset Boulevard poses both opportunities and challenges for bike share, as its topography, auto-oriented street design and high vehicle volumes do not lend to comfortable bicycle riding. However, it also is home to many large hotels whose guests are likely users of bike share. Many hotels on Sunset Boulevard already offer bikes to hotel guests on a first come first serve basis. Finally, the Sunset Strip area has an extremely profitable outdoor advertising market and siting stations in this area would help to support the bike share program. These factors will be considered in development of the proposed station locations. Metro Regional Bike Share Coordination In a separate but related effort, Metro is seeking to launch a county-wide bike share program structured around the Metro rail system to address first/last mile connectivity. In June 2015, the Metro Board selected Bicycle Transit Systems, Inc., which uses B Cycle bicycles in a traditional bike share model. The docking equipment used by the Metro selected vendor is not compatible with the equipment previously selected by the 9

14 Westside Cities. Metro expects to implement its program in phases, with Phase I launching in Downtown Los Angeles by summer 2016 and Phase II launching in Pasadena in Hollywood is the closest Metro bike share expansion area to West Hollywood. Expansion to Hollywood could occur after the successful implementation of the bike share pilot in Downtown Los Angeles. All jurisdictions in Los Angeles County have the ability to join Metro's program, using a traditional bike share model operated by Bicycle Transit Systems. Unfortunately, the program's current financial model and older and less flexible technology makes it a much less desirable program for West Hollywood. Metro's program is required to be cost neutral for the agency, but not for participating cities. Metro proposes to retain sponsorship and advertising revenues generated through bike share and to fund 50% of capital costs and 35% of ongoing operating and maintenance costs for cities participating in their program. This will require participating cities to fund 65% of ongoing operating and maintenance costs. Many communities identified as Metro's likely expansion areas may not have the resources to cover operating costs without an advertising revenue stream, and others may not wish to forego potential revenues from local advertising. This financial model may slow or restrict expansion to some areas. After a close analysis of the two separate bike share systems that are emerging in the region (the smart bike system used by some of the Westside Cities and the traditional bike share system to be used by Metro), it is clear that the smart bike system is more advanced and better suited for the City of West Hollywood, and offers a better return on investment through potential sponsorship and advertising. Because Metro is not offering consistent advertising and sponsorship revenues to local jurisdictions to fund ongoing operations and maintenance, selecting Metro's bike share system for West Hollywood could pose a significant financial burden to the City. In addition, Metro's funding sources may not allow for bike share stations to be located on private property, an area where great potential exists for expansion. Finally, because there are many demands on the City's limited sidewalks and public spaces, selecting a bike share system with slender and light system architecture is of critical importance for West Hollywood. The City is regularly participating in working meetings with Metro and the Westside cities to actively promote interoperability of the two bike share systems to encourage ease of use at a regional scale, including fare payment systems. West Hollywood staff also will continue to work with the Westside Cities, UCLA, and Long Beach, to collaborate on bike share compatibility and issues such as membership reciprocity for other bike share programs utilizing Social Bicycles. Next Steps If approved by City Council, staff will begin the process of negotiating a contract with CycleHop and move forward with the proposed implementation strategy including starting a comprehensive public outreach campaign to solicit feedback from the community on station locations. Staff will return to City Council within 45 days requesting approval of a contract with CycleHop. Staff will return to City Council with regular updates on bike share implementation until the official launch of the program tentatively scheduled for April