COUNCIL AGENDA: 12/01/15 ITEM: 4 CITY OF SAN JOSE CAPITAL OF SILICON VALLEY TO: HONORABLE MAYOR AND CITY COUNCIL SUBJECT: BAY AREA BIKE SHARE EXPANSION Memorandum FROM: Jim Ortbal DATE: Approved Date irftt/ls' COUNCIL DISTRICT: 3,4,6 RECOMMENDATION Adopt a resolution authorizing the City Manager or designee to enter into a Coordination Agreement between the City of San Jose, Bay Area Motivate, LLC (Motivate), the Metropolitan Transportation Commission (MTC), and Partner Cities (San Francisco, Oakland, Berkeley, and Emeryville), and to sign all documents necessary to effectuate the expansion of the Bike Share program. OUTCOME Entering into this agreement will grant Motivate the exclusive right to operate Bike Share in a public-private partnership with the City of San Jose (City) for a 10-year term, with two additional five year options. The program will be privately-funded using a title sponsor and usage fees. The agreement will allow Motivate to operate a Bike Share program in the City, within both public and private right-of-ways. Under this agreement, Motivate will install and operate up to 100 Bike Share Stations with up to 1,000 bicycles in the City. Motivate will also provide the City a portion of any excess revenue generated by the program. Expansion of Bike Share within San Jose supports the City's ambitious mode shift goals to have 15% of commute trips completed by bicycles by 2040. BACKGROUND With Envision San Jose 2040 General Plan and Bike Plan 2020, the City adopted ambitious goals for shifting automobile trips to all other transportation modes. As part of an effort to create a balanced transportation system, the City's goal is to increase the share of commute trips made by bike from 1.1 % to 5% by 2020 and to 15% by 2040. Strategies discussed in Bike Plan 2020 to increase bicycle trips include implementation and expansion of a public bicycle share system.
Page 2 of 6 Fig. 1 - San Jose City Hall Bike Share Station Fig. 2 - Bike Share on San Fernando St Bay Area Bike Share Pilot Program In August 2013, Bay Area Bike Share was launched as a pilot program in five Bay Area Cities (San Jose, San Francisco, Mountain View, Palo Alto, and Redwood City). The Bay Area Air Quality Management District (Air District) administered the program in partnership with the Santa Clara Valley Transportation Authority (VTA) and the partner cities. Bike Share is a pointto-point system of bicycles intended for short trips of a utilitarian purpose, with multiple docking stations placed strategically within a city's urban area. Funding for the pilot program came from two grant programs, the Congestion Mitigation and Air Quality program (CMAQ) and Transportation Funds for Clean Air program (TFCA). Alta Bicycle Share was selected to operate the Bicycle Share program. Bay Area Bike Share was initially intended to include 100 stations and 1,000 bicycles throughout the five cities; however, due to funding constraints, the pilot was only 70% implemented. Motivate Bike Share and Bay Area Expansion In 2014, Motivate purchased rights to operate Bay Area Bike Share from Alta Bicycle Share, which includes the current bike share fleet in San Jose (16 stations and 130 bicycles). Motivate is a private corporation that operates successful bike share programs around the world, including in New York City, Washington DC, Boston, Chicago, Toronto, and Melbourne. In early 2015, Motivate made an unsolicited proposal to MTC to expand the existing program to a 7,000-bike system in the Bay Area with approximately 700 stations. Mayor Liccardo, as an MTC Commissioner, facilitated the preliminary expansion discussions with MTC. The program would be financed entirely by Motivate under a for-profit sponsorship model, with no use of public funding. In March 2015, MTC accepted contract terms with Motivate to operate a
Page 3 of 6 regional bike share program with support from San Jose and the Partner Cities. Under this agreement, San Jose's bike share program will expand to 1,000 bikes and approximately 100 stations. The program will be implemented in four phases over two years. MTC will administer the program regionally through a separate agreement with Motivate. This separate agreement includes pricing, system performance, and the program's security fund to cover damages to City and other property. ANALYSIS Under the terms of the agreement, Motivate will fund, operate, and maintain an extensive bike share program within San Jose at no cost to the City. The City will issue permits for stations and grant Motivate the exclusive right to operate Bike Share in San Jose. The City will provide City staff support to help facilitate station placement, outreach, and permitting. Staff anticipates the first phase to complete by the end of 2016. Station Placement San Jose will receive 1,000 bicycles and approximately 84 stations (100 total including the 16 existing stations) over several installation phases through 2017. Stations will be placed approximately % mile apart, with a station density of 12-16 stations per square mile. Attachment A shows the existing stations within the draft expansion area. Individual station locations will be chosen based on the service area analysis, a demand analysis to be completed by Motivate and City of San Jose, Department of Transportation (DOT), public input from outreach meetings, online crowd-sourcing, coordination with other City departments, and input from community stakeholders. The majority of stations will be on sidewalks and in on-street parking lanes. Any lost revenue from displaced metered parking will be reimbursed to the City by Motivate. Placement will take into account safety, utility, and aesthetics. Parks, plazas, other public property, and private property will also be considered. Based on ongoing analysis, Bike Share expansion under this agreement would likely take place in the Greater Downtown and Central San Jose area. Neighborhoods included would be Downtown, the Alameda, Diridon Station, Japantown, Metro/Technology Park, Midtown, the Rosegarden, the San Jose State area, Spartan-Keyes, and Berryessa BART. At least 20% of stations in each city must be located in an MTC-defined Community of Concern. Communities of Concern are defined as a census tract with a high concentration of four or more of the following: low income households, no car households, seniors, persons with a disability, female heads of household with children, or cost-burdened renters.
Page 4 of 6 Membership and Rate Structure Motivate will charge program users an annual membership fee of $149 per year. This fee is subject to adjustments each year based on changes in the Consumer Price Index. Discounted memberships will be offered to lower income individuals at $60 per year, with the option to pay in monthly installments. To determine qualification for membership discounts, Motivate will look to an individual's qualification for other existing discounted Bay Area programs. For example, Motivate is considering enrollment in PG&E's CARE program and MTC's Lifeline Transportation Program as qualifiers for discounted Bike Share memberships. Exclusive Access to San Jose's Bike Share Market This Agreement grants Motivate the exclusive right to operate Bike Share in San Jose and Partner Cities during the term of this agreement. This Agreement also grants Motivate the rightof-first-offer to operate electric-assist Bike Share in San Jose and Partner Cities. Through this public-private partnership, San Jose will receive a Bike Share program with no capital or operating costs in return for granting Motivate these exclusive rights. At this time, there are no other credible operators of Bike Share offering San Jose this service. EVALUATION AND FOLLOW-UP DOT will continually coordinate with Motivate to ensure stations are located in the most beneficial locations and that requests from the public for station locations are considered by Motivate. Motivate will handle all operations of Bike Share, including maintenance, station rebalancing, and 24-hour customer service with a 1-800 number for members to contact the program operator. The stations will be equipped with easy to use technology. System performance will be tracked by Motivate with reports regularly provided to DOT for review. PUBLIC OUTREACH Public outreach for this agreement has included an online crowd-sourcing tool allowing the public to select locations they feel are good candidates for Bike Share stations. The tool is online at http://suggest.bayareabikeshare.com/. Outreach was also conducted at the City's BPAC public meeting on September 19, 2015. Ongoing discussions about this project have been occurring with various stakeholders, including developers in preliminary development phases, the San Jose Downtown Association, businesses owners, property managers, and interested residents. Motivate will conduct additional outreach about station planning, equity, and safety upon execution of this agreement. Direct outreach to property owners adjacent to potential station
Page 5 of 6 locations will be conducted in advance of installation. Motivate will also reach out to City departments, Council Offices, residents, and neighborhood and business associations as needed. This memorandum will be posted on the City's Council Agenda website for the December 1, 2015 Council Meeting. COORDINATION Preparation of this memo was coordinated with the Office of the City Attorney. Development of the proposed Bike Share expansion has been coordinated with the Planning Department, the Office of Economic Development, and the Department of Public Works. POLICY ALIGNMENT This project works toward achieving a number of City goals, in particular those in Envision San Jose 2040 and San Jose Bike Plan 2020: Goal of 15% of all trips taken by bicycle by 2040; Implement Bike Share program; and Goal of increasing transit trips to 30% by 2040 (first-and last-mile connection complemented by Bike Share). In addition to these transportation mode shift goals, Bike Share can address a number of nontransportation related goals in Envision 2040. Bike Share supports economic development, local business, neighborhood place-making, health, environmental sustainability, and equity goals. COST IMPLICATIONS This project has no capital, operations, or maintenance costs to the City. The City will not be responsible for funding, capital installation, operating, or maintenance costs related to the Bike Share program under this agreement. The City will be responsible for funding permits and City staff support. Staff support will be accomplished with existing budget resources and will not impact existing programs, projects, or other Department responsibilities.
Page 6 of 6 CEOA Exempt, File No. PP14-016. /s/ JIM ORTBAL Interim Director of Transportation For questions, please contact John Brazil, Associate Transportation Specialist, at (408) 975-3206. Attachment