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HomeMy WebLinkAbout11-19-2020 ATC Agenda PacketCity of San Luis Obispo, Agenda, Planning Commission Agenda ACTIVE TRANSPORTATION COMMITTEE Thursday, November 19, 2020 6:00 p.m. REGULAR MEETING Teleconference Based on the threat of COVID-19 as reflected in the Proclamations of Emergency issued by both the Governor of the State of California, the San Luis Obispo County Emergency Services Director and the City Council of the City of San Luis Obispo as well as the Governor’s Executive Order N-29-20 issued on March 17, 2020, relating to the convening of public meetings in response to the COVID-19 pandemic, the City of San Luis Obispo will be holding all public meetings via teleconference. There will be no physical location for the Public to view the meeting. Below are instructions on how to view the meeting remotely and how to leave public comment. Additionally, members of the Active Transportation Committee are allowed to attend the meeting via teleconference and to participate in the meeting to the same extent as if they were present. Using the most rapid means of communication available at this time, members of the public are encouraged to participate in Council meetings in the following ways: 1. Remote Viewing - Members of the public who wish to watch the meeting can view: ➢ View the Webinar: ➢ Registration URL: https://attendee.gotowebinar.com/register/1248819120778777615 ➢ Webinar ID: 431-560-515 2. Public Comment - The Active Transportation Committee will still be accepting public comment. Public comment can be submitted in the following ways: • Mail or Email Public Comment ➢ Received by 3:00 PM on the day of meeting - Can be submitted via email to emailcouncil@slocity.org or U.S. Mail to City Clerk at 990 Palm St. San Luis Obispo, CA 93401 ➢ Emails sent after 3:00 PM and up until public comment is opened on the item – Limited to one page emailed to cityclerk@slocity.org, which will then be read aloud during the public comment period on the item specified. • Verbal Public Comment o Received by 3:00 PM on the day of the meeting - Call (805) 781-7164; state and spell your name, the agenda item number you are calling about and leave your comment. The verbal comments must be limited to 3 minutes. All voicemails will be forwarded to the Committee Members and saved as Agenda Correspondence. Active Transportation Committee Agenda November 19, 2020 Page 2 o During the meeting – Comments can be submitted up until the Public Comment period is opened for the item when joining via the webinar (instructions above). Please contact the City Clerk’s office at cityclerk@slocity.org to more information. All comments submitted will be placed into the administrative record of the meeting. MISSION: The purpose of the Active Transportation Committee (ATC) is to provide oversight and policy direction on matters related to bicycle and pedestrian transportation in San Luis Obispo and its relationship to bicycling and walking outside the City. CALL TO ORDER: Chair Jonathan Roberts ROLL CALL : Committee Members Thomas Arndt, Lea Brooks (vice chair), Donette Dunaway, Timothy Jouet, Briana Martenies, Russell Mills, Jonathan Roberts (chair) PUBLIC COMMENT: At this time, people may address the Committee about items not on the agenda. Persons wishing to speak should come forward and state their name and address. Comments are limited to three minutes per person. Items raised at this time are generally referred to staff and, if action by the Committee is necessary, may be scheduled for a future meeting. CONSIDERATION OF MINUTES 1. Minutes of the October 20, 2020 Special Meeting INFORMATION ITEM 2. ACTIVE TRANSPORTATION PLAN UPDATE (FUKUSHIMA – 10 MINUTES) An update will be provided on the current status of the Active Transportation Plan. ACTION ITEM 3. BIKE SHARE SERVICES (FUKUSHIMA – 100 MINUTES) Receive an update on the current state of bike share services and provide a recommendation on next steps for City Council consideration. Attachment 2: Staff Report Active Transportation Committee Agenda November 19, 2020 Page 3 Attachment 3: San Luis Obispo Rapid Bike Share Assessment ADJOURNMENT The next Regular Meeting of the Active Transportation Commi ttee is scheduled for Thursday , January 21 , 20 21, at 6:00 p.m., by teleconference. ATTACHMENTS 1. DRAFT Minutes of the October 20, 2020 Special Meeting 2. Agenda Item 3: Staff Report on Bike Share 3. San Luis Obispo Rapid Bike Share Assessment The City of San Luis Obispo wishes to make all of its public meetings accessible to the public. Upon request, this agenda will be made available in appropriate alternative formats to persons with disabilities. Any person with a disability who requires a modification or accommodation in order to participate in a meeting should direct such request to the City Clerk’s Office at (805) 781-7100 at least 48 hours before the meeting, if possible. Telecommunications Device for the Deaf (805) 781-7107. Agenda related writings and documents are available online or for public inspection at the Public Works Department, 919 Palm Street, SLO. Meeting audio recordings can be found at the following web address: http://opengov.slocity.org/WebLink/1/fol/60965/Row1.aspx DRAFT Minutes – Active Transportation Committee Meeting of October 20, 2020 Page 1 Minutes - DRAFT ACTIVE TRANSPORTATION COMMITTEE Tuesday, October 20, 2020 SPECIAL Meeting of the Active Transportation Committee CALL TO ORDER A Special Meeting of the San Luis Obispo Active Transportation Committee was called to order on Tuesday, October 20, 2020 at 6:00 p.m. via teleconference, by Chair Roberts. ROLL CALL Present: Committee Members Thomas Arndt, Lea Brooks (vice chair), Donette Dunaway, Timothy Jouet, Briana Martenies, Russell Mills, and Jonathan Roberts (chair) Absent: None Staff: Active Transportation Manager Adam Fukushima, and Recording Secretary Lareina Gamboa PUBLIC COMMENT ITEMS NOT ON THE AGENDA None. APPROVAL OF MINUTES 1.Review Minutes of the Active Transportation Committee Meeting of August 20, 2020: ACTION: UPON MOTION BY COMMITTEE MEMBER BROOKS, SECONDED BY COMMITTEE MEMBER JOUET, CARRIED 7-0-0, to approve the Minutes of the Active Transportation Committee Meeting of August 20, 2020, as presented. INFORMATION ITEM 2.Active Transportation Plan Update Active Transportation Manager Fukushima provided a presentation and responded to Committee inquiries in regards to updates of the Active Transportation Plan. Public Comment None. No action was taken on this item. ACTION ITEM Attachment 1, Page 1 of 2 DRAFT Minutes – Active Transportation Committee Meeting of October 20, 2020 Page 2 3. ATC Recommendations for FY 2021-23 City Budget Goals Active Transportation Manager Fukushima provided a presentation and responded to Committee inquiries in regards to the City Budget Goals for the upcoming fiscal year. Public Comment None. --End of Public Comment-- CM Marteineis stated a conflict of interest with the Anholm Neighborhood Greenway Project Phase 2 due to property she owns in the project vicinity. She recused herself by muting her microphone and turning off her camera at 7:06 p.m. ACTION: UPON MOTION BY COMMITTEE MEMBER BROOKS, SECONDED BY COMMITTEE MEMBER JOUET, CARRIED 6-0-1 (CM MARTENIES RECUSED), to recommend inclusion of the Anholm Neighborhood Greenway Project Phase 2 as the highest priority for the ATC’s City Budget Goals for FY 2021-23. Following this Action, CM Martenies returned to the meeting at 7:26 p.m. ACTION: UPON MOTION BY COMMITTEE MEMBER BROOKS, SECONDED BY COMMITTEE MEMBER MILLS, CARRIED 7-0-0, to move forward the staff recommendation for City Budget Goals for FY 2021-23 other than the Anholm Neighborhood Greenway Project Phase 2. ADJOURNMENT The meeting was adjourned at 8:13 p.m. The next Regular Active Transportation Committee meeting is scheduled for Thursday, November 19, 2020 at 6:00 p.m., by teleconference. APPROVED BY THE ACTIVE TRANSPORTATION COMMITTEE: XX/XX/2020 Attachment 1, Page 2 of 2 City of San Luis Obispo, Agenda, Planning Commission Agenda Item 3 Staff Report ACTIVE TRANSPORTATION COMMITTEE 3.BIKE SHARE SERVICES (FUKUSHIMA – 100 MINUTES) The purpose of this agenda item is to update the ATC on the current state of bike share and provide an opportunity for the ATC to provide a recommendation on next steps ahead of the City Council meeting on December 8th. As part of the 2014 General Plan Update, the Circulation Element introduced new modal shift objectives to support the increased use of alternative forms of transportation and decreased dependence on single-occupant automobiles. Among the policies and programs supporting these modal shift objectives, the Circulation Element identified a specific recommendation for the City to evaluate a bike share program in coordination with Cal Poly. On October 1, 2019, the City Council held a study session on the topic of shared micro-mobility, a term used to describe shared mobility services that utilize human-scale transportation devices such as bicycles, scooters, and electric mopeds. At the conclusion of the study session, the City Council provided clear direction to staff to continue with development of a citywide bike share program (no scooters or other devices at this time) with the following next steps: 1.Develop a policy framework for a potential bike share system in San Luis Obispo, which should include the following characteristics: a.A hybrid system, which allows bicycles to be docked at designated stations or at standard bike racks in between rides. b.Electric assist bicycles should be a prominent component of a city bike share fleet. c.Ideally, the bike share fleet should include devices geared to a variety of user abilities (recumbent, cargo capabilities, and child seats). d.A bike share system should include equity considerations, improving access for low- income and disadvantaged community members. 2.Identify potential costs and funding model for a bike share program. 3.Prepare an RFP to solicit potential bike share vendor(s). 4.With Council support and as funding allows, initiate a bike share pilot program, including access to Cal Poly. The Current State of Bike Share Since the 2019 Council Study Session, there have been significant changes to the bike share industry and funding model. Prior to 2020, most bike share systems were backed by large venture capital funding entities, but in late 2019 the funding model started showing signs of decline along with other market changes. The COVID-19 pandemic has further impacted the bike share industry. Given the uncertainty in the bike share marketplace, the City hired Alta Planning and Design (Alta), an active transportation consulting firm with extensive national expertise with bike share to perform a rapid assessment of the current bike share market and assess the current viability of bike share in San Luis Obispo (see attachment B). The rapid assessment informs this staff report. Attachment 2, Page 1 of 6 Active Transportation Committee Agenda Item 3 November 19, 2020 Page 2 Many of the bike share systems that were identified in the 2019 study session as potential models for a San Luis Obispo bike share system are no longer operational in 2020. For example, the Cities of Santa Cruz and Davis (communities similar in size and demographics to San Luis Obispo) had deployed successful bike share systems operated by JUMP bikes—both systems were procured and operated without significant local funding commitments by the municipalities. However, in late 2019, JUMP was acquired by Lime Scooters and bike share operations were discontinued in cities that were not willing to allow concurrent deployment of shared scooters. Elsewhere, Gotcha Bikes ended their program at UC Santa Barbara after the City of Santa Barbara was not willing to sign a partner contract with them. The economic impact of COVID-19 accelerated these woes, crippling many bike share and scooter share systems throughout the country. For example, Zagster was the operator of a bike share program in Cambria, which has since ceased all national operations. Currently, UC Santa Barbara and the Cities of Santa Cruz and Davis no longer have operating bike share programs, although Davis plans to consider resuming operations soon with a program that allows both shared bicycles and scooters. Most of the remaining cities in California that have continued to operate bike share programs are in high-population metropolitan areas. Many of these cities have self-funded the program, secured large corporate sponsors or have received funding through the State’s Clean Mobility Options Voucher Pilot Program, which requires a jurisdiction to meet minimum eligibility requirements based on population of disadvantaged communities. San Luis Obispo has had difficulty establishing eligibility for this program based on the State’s criteria for defining disadvantaged communities. While there are currently few communities comparable to the City of San Luis Obispo with active bike share programs, the City of Santa Barbara may serve as a valuable example to monitor. Santa Barbara recently partnered with the vendor BCycles and will soon begin a pilot bike share program in their community without local funding commitments. Discussions with their city staff as well as the vendor indicate that BCycles is using Santa Barbara to test feasibility of bringing bike share to smaller California cities. Different than most bike share companies funded by venture capital, BCycle is funded by Trek bicycles, a company with a business model that has proven resilient even with the economic impacts of COVID-19. The Santa Barbara bike share program could be a model for San Luis Obispo; however, it is too soon to draw conclusions on the success or viability of this system. Costs Based on recent trends in the bike share market and economic model, the odds are growing less and less likely that a city with the population and market size of San Luis Obispo will successfully attract a qualified bike share vendor that is willing to install and operate a system that requires no local subsidy. While the revenue potential and corresponding costs associated with operating a bike share system will vary depending on the selected v endor, specific equipment, pricing structure, and use, the major costs incurred by the vendor, and often subsidized by the local municipality fall into two categories: Start-Up Costs and Operating Costs. Start-Up Costs This category includes both capital and launch costs. Capital costs are the costs associated with the purchase of equipment including bikes, payment kiosks and docks. Launch costs are mostly one-time costs that include up-front expenses such as procuring a service center and storage warehouse, purchasing bike and station assembly tools, station installation, website development, communications and technical support set-up and pre-launch marketing. Attachment 2, Page 2 of 6 Active Transportation Committee Agenda Item 3 November 19, 2020 Page 3 Operating Costs Operating costs include those required to operate and maintain the system. This includes staffing costs, equipment and bike maintenance, rebalancing of bikes to address demand, customer services, insurance and administrative oversight. Most vendor/operators price out a system with a per-bike cost for launch, capital costs, and operations. Based on current industry data, Alta’s assessment estimates bike share costs for a docked or hybrid system in San Luis Obispo to be $5,000 per bike for Start -Up Cost and $2,000 per bike per year in operational costs. Alta’s assessment states that the City of San Luis Obispo service area (including Cal Poly) would likely support a minimum size of 20 stations and 160 bikes and a maximum size of 30 stations and 360 bikes. Using this data, a bike share system in San Luis Obispo could range in cost as shown below: Cost Type Unit Cost 20 Stations / 160 Bike 30 Stations / 360 Bikes Launch Costs $2,000 per bike $320,000 $720,000 Capital Costs $3,000 per bike $480,000 $1,080,000 Total Start-Up Costs $5,000 per bike $800,000 $1,800,000 Operating Costs per Year $2,000 per bike $320,000 $720,000 Actual costs will depend on the vendor and type of equipment selected. Funding The revenue sources for bike share come from user fees, sponsorship, advertising, and public funding. Successful and resilient bike share programs typically involve a mixture of two or more sources. User Fees: User fees include the fees bike share patrons pay for memberships, along with any overtime fees. Revenues from user fees typical grow steadily over the first three years as more users join the system. This revenue is only generated after a system has been deployed and used by the community. Grants and Public Funding: While various sources of grant funding exist for bike share, the most likely sources are state and local grant programs. At the statewide level, many cities with current bike share programs have received funding from the California Air Resources Board’s Clean Mobility Options Voucher Pilot, which is designed to fund micro-mobility projects (such as bike share) in disadvantaged communities and at affordable housing locations. The next application window is in 2021; however, San Luis Obispo is not likely to compete well under this program, as most of the city would not meet the disadvantaged community qualifications. Similarly, Caltrans Active Transportation Program (ATP) grants have been awarded to help fund bike share systems in large metro areas, but again the City of San Luis Obispo would have trouble competing with other jurisdictions under this program due to lack of areas within the city that meet the disadvantaged community designation. In other cities, ongoing public funding has come from local “steady stream” sources such as parking revenues, bus/bike/station advertising, or special taxes. San Luis Obispo may also consider approaching other regional funding partners, such as the San Luis Obispo Council of Governments (SLOCOG), to explore additional grant funding opportunities for bike share. In recent discussions, SLOCOG staff has expressed support for bike share as a concept, but no specific SLOCOG- Attachment 2, Page 3 of 6 Active Transportation Committee Agenda Item 3 November 19, 2020 Page 4 administered grant programs have been identified at this time to fund bike share in San Luis Obispo. Partnership with Cal Poly: Similar to SLO Transit service, if the City is to operate a bike share system that includes the Cal Poly campus, it is reasonable to expect that Cal Poly participate with a fair share financial contribution towards the costs of operating any City-led bike share program. Cal Poly representatives have expressed strong support for ensuring that any City-initiated bike share system include service to the university and would prefer to serve as a financial partner to the City in funding this endeavor, in lieu of the university procuring and administering a separate, stand-alone bike share program for the campus. Advertising: Advertising is a potential source of revenue for bike share, particularly with corporate branding of bicycles themselves or sponsorship of individual stations/docks; however, this may require changes in City policy regarding advertising on public facilities, depending on the form of branding considered. Citing prior experience of SLO Transit in exploring advertising prospects, there have been significant challenges with maintaining sustained sponsorships, as well as having staff resources to pursue and negotiate advertising agreements. Because advertising revenues range significantly between different markets and bike share systems, it is difficult to estimate the revenue potential from this source for a San Luis Obispo bike share program. How Important is Bike Share in Making Progress Towards the City’s Mode Shift Goals? As the City continues to make investments in infrastructure and programs to support the General Plan mode share targets, which include increasing bicycle mode share to 20% of all trips (currently at 8.3% of all commute trips), it is important to consider the effectiveness of each strategy and prioritize investments accordingly. Given the rapidly changing nature of the bike share market, data on mode share trends is just emerging and results can vary significantly from city to city. As a point of reference in a similar community, before discontinuing service the JUMP bike share system in Santa Cruz was extremely successful reaching a peak monthly ridership of over 40,000 rides (roughly 1,300 trips per day). That said, not all bike share trips replace car trips—surveys of bike share users indicate that less than half (11%-45%) of bike share trips replaced an automobile trip, with the remaining trips representing those that were already car free, users who would normally walk, use public transit, or personally-owned bicycle. In October 2019, the City administered a Citywide Transportation Survey to better understand barriers to bicycling and walking in San Luis Obispo. Only 17% of survey respondents cited lack of convenient access to a bicycle as a primary barrier to bicycling, while 77% cited fear of riding in heavy traffic. Per the survey, the top five barriers to bicycling in the city are related to safety concerns and lack of access to high-quality bicycle infrastructure. While bike share may increase access for some users—particularly visitors and commuters who mostly travel to the city by car— access to a bicycle has not been identified as major barrier to bicycling. When comparing the costs and benefits of various ways to invest in bicycling, the City is likely to see more return on investment in terms of increasing bicycle mode share by investing in infrastructure, such as physically-separated bike facilities and crossing improvements. Bike Share Policy Framework The matrix below summarizes the primary components of an ideal bike share system in San Luis Obispo. If the City decides to proceed with soliciting proposals from prospective bike share vendors, the Request for Proposal (RFP) includes rating criteria to evaluate each vendor’s proposal based on the ability to satisfy these primary criteria: Attachment 2, Page 4 of 6 Active Transportation Committee Agenda Item 3 November 19, 2020 Page 5 Criteria Description Bike Share System Type (Docked, Dockless or Hybrid) Hybrid System – Allows flexibility for bike to be parked in designated stations/docks or parked at any standard bike rack in between uses. Bicycle Type Significant portion of fleet should include pedal-assist electric bicycles. Additional points should be given to vendors that have the capability to provide devices geared towards a variety of user types (i.e. recumbent bikes, cargo bikes, or bikes with child seats) Fleet Size & Stations Prefer a minimum of 20 stations and 160 bikes. Stations should be easily movable and require minimal time to install and/or remove without substantial construction activities. Permitted Operator would be required to provide a sufficient supply of bicycles in high traffic locations, such as transit hubs, so that users can consistently rely on this service for their transportation needs. For an effective “last mile” transportation solution, the user must be able to rely on finding a working bicycle when needed. Equity Considerations Vendors should provide options for subsidized or free bike share membership for low-income users. Neighborhoods with higher concentration of low-income or historically disadvantaged populations should be prioritized when locating designated stations or installations of new public bike racks to be used for bike share parking. Integration with Transit Additional points for vendors that demonstrate an ability to integrate bike share with transit, which may include seamless transfers between SLO Transit/RTA bus service and bike share trips, combined subscriptions for monthly bus and bike share passes, etc. Preference for Local Labor Additional points for vendors that commit to using predominantly local staff and/or businesses for bike share maintenance and operations. Public Safety & Nuisance Issues Vendors should demonstrate a cohesive plan for addressing nuisance issues in a timely manner, including repairing damaged bicycles and removing/relocating bicycles that have been parked in an illegal or inappropriate manner. This plan should include ways that the vendor will educate and incentivize (or penalize) users to promote safe bicycling and parking behavior. Permitted Operator is held accountable for operating safely and responsively in accordance with their permit conditions. Start-Up Strategy Select one vendor through a competitive RFP process. Attachment 2, Page 5 of 6 Active Transportation Committee Agenda Item 3 November 19, 2020 Page 6 Negotiate contract for a two-year pilot program, with an option to reevaluate after the first year. Open Data Permitted Operator is required to provide useful data that will enable the City to better understand user behavior to make necessary program adjustments. POLICY CONTEXT Since at least 1982, the City’s Circulation Element to the General Plan has mandated programs to reduce traffic congestion and encourage use of other modes of transportation to the single occupant vehicle including transit, bicycling and walking. As mentioned previously, the City’s current Circulation Element sets ambitious goals such that by 2035 the City should increase mode share of bicycles to 20% and 18% for walking, carpools and other forms of transportation (Policy 1.7.1). The Circulation Element also states that “the City shall evaluate a bike share program in coordination with Cal Poly and other educational institutions” (Policy 4.2.1). In terms of current policy regarding bike share, the City of San Luis Obispo Municipal Code currently prohibits electric scooters and motorized skateboards, but potentially allows for bike share with an encroachment permit and business license. Previous ATC Recommendation on Bike Share At the meeting on October 20, 2020, the ATC included bike share as part of its list of recommended FY 2021-23 Major City Goals. STAFF RECOMMENDATION The ATC should make a recommendation on next steps in regard to bike share services to be considered by the City Council on December 8, 2020. The ATC may want to consider the following options in its discussion: Option 1: Recommend the City move forward with the proposed policy frame work and solicit vendors for proposals to operate a bike share system at no direct cost to the City. If no qualifying proposals are received, continue monitoring the bike share industry and develop a funding plan within the next year to present for further input. Option 2: Recommend Option #1 but with modifications to the proposed policy frame work. Option 3: Recommend not soliciting vendors for proposals until funding is identified for start-up and ongoing operations of a bike share system, perhaps as part of the upcoming FY2021-23 Financial Plan. Option 4: Recommend not soliciting vendors for proposals at this time but continue to monitor the state of the bike share market and continue discussion to a future date. If the ATC recommends this option, it should remove bike share as a recommended FY 2021-23 Major City Goal. Attachment 2, Page 6 of 6 To: Adam Fukushima, City of San Luis Obispo From: Samuel Zneimer, Alta Planning + Design Date: November 5, 2020 Re: San Luis Obispo Rapid Bike Share Assessment Executive Summary This memo summarizes the current state of the bike share industry, while providing a “rapid assessment” of the potential for bike share in San Luis Obispo, CA. The report presents the following key considerations for launching a new bike share system: • Types of Service Models • Types of Governance (or Business) Models • San Luis Obispo Context Relevant to Bike Share System Performance • Potential System Scale, Costs, and Operations in San Luis Obispo • Funding Opportunities • Case Studies with Similar Characteristics to San Luis Obispo • Equity Considerations • Findings and Conclusions Key Findings 1. San Luis Obispo may likely need to approach operators with funding: Smaller cities are largely not currently target markets for privately funded bike share systems. While this does not mean a bike share system cannot be successful, it is important to underscore that some public funding (possibly substantial) may be necessary to finance the system, especially initially. San Luis Obispo Council of Governments (SLOCOG) has expressed strong interest in a bike share system; this may be a key funding opportunity for the City. 2. Partnering with Cal Poly may be the best approach for a long-term, sustainable system: A key criteria to a successful bike share system is finding areas with mid- to high-density and clusters of people and activity. In a small city this is usually found in a downtown area or college campus. With a student population of over 21,000 undergraduates and over 700 graduates, Cal Poly provides a key market segment that is a likely bike share system user. Additionally, the ability to include bike share membership in student fees provides a steady stream of revenue for the system while increasing the likelihood of system usage. 3. The rapid assessment found a bike share system in San Luis Obispo could support a range of 20-30 stations and 160-360 bikes. This system size would contribute toward the City’s adopted target of 20 percent bike commute mode share. If coupled with thoughtful equity-focused strategies, it has the potential to create new mobility options for communities with limited transportation options. Attachment 3, Page 1 of 21 Bike Share Industry Summary There were an estimated 69 million bike share trips taken in North America in 2019 in communities of all sizes.1 The average trip was 30 minutes and traveled 1.4 miles. While the rates vary from city to city, surveys of bike share users have found a range of 11%-45% of users reporting that their bike share trip replaced an automobile trip (including ride-hailing trips).2 Bike Share in California The US Department of Transportation and the Bureau of Transporta tion Statistics tracks bike share and e-scooters across the country. Image 1 shows the locations of docked bike share, dockless bike share, and e-scooter share across the state in 2020. This includes systems in Sacramento, San Francisco, Oakland, Emeryville, Berkeley, San José, Fremont, Los Angeles, Beverly Hills, Long Beach, and San Diego. Two communities on this map (Santa Monica and Riverside) recently ended operations in October/November 2020. Additional communities with bike share not reflected on this map include South El Monte (as part of GoSGV, the San Gabriel Valley bike share system), Davis and West Sacramento (as part of the Sacramento JUMP system), and campus systems. Finally, bike share was poised to launch in communities such as Richmond and Sonoma/Marin, but these system launches were delayed to 2021 due to COVID-19. Image 1. Locations of bike share and scooter share in California, 2020 (Source: USDOT BTS, 2020). 1 NABSA - 2020 State of the Industry 2 NACTO - Shared Micromobility in the USA. Attachment 3, Page 2 of 21 Types of service models Two general types of bike share systems are in operation in the U.S. today: • Docked • Hybrid Each system type is defined in further detail in the following section. Both types have an option to include e-bikes as either the primary system vehicle or in addition to traditional bicycles. A third type of bike share system is dockless bike share, in which bikes are self-locking and may be left anywhere the user places it. While these types of systems were popular in 2017 and 2018, their deployment in the United States market has significantly declined. Given the limite d options for dockless service providers and the input by the City Council in September 2019 to not pursue a dockless model given the challenges associated with the service model (e.g. bikes obstructing pedestrian clear zones, etc.), this system type will not be discussed further. Attachment 3, Page 3 of 21 Docked System Description Also referred to as station-based systems, this bike share system type is based on powered stations (either solar or hard - wired) with docks that securely lock a bike and kiosks for user payment transac tions and information. At the kiosk, casual users can purchase a single trip, day pass, or short -term membership on-demand. Bike share bikes must be retrieved from and returned to a station. Because the equipment is relatively expensive, most U.S. agencies use federal transportation grants and large corporate sponsorship deals to cover the capital and opera tions costs. Defining Feature Because bicycles within a dock-based system must be secured at a station, station density and visibility are critical to success, rebalancing is a major element of operations, and users enjoy reliability. The local government has control over bike locations, level of service, and pricing because the systems are largely city or agency -owned. Feasibility Considerations Pros Cons Station placement gives the agency control over bike locations and parking in the public right-of-way. Stations with docks mean higher system costs than hybrid options. Contracting establishes service level standards including: pricing, maintenance, customer service, usage data, bike quality, and safety. More upfront work is required to plan and design station locations. Bike locations are predictable for users, which is particularly valuable for commuters and transit riders. Station placement may require permits and negotiation with adjacent land owners. Stations create a physical presence for the bike share system and advertise to new users. Reliance on sponsorship and grants can be difficult to sustain. Status as “infrastructure” can establish a more long- lasting system. Lack of flexibility limits the geographic reach and access to destinations for users. Difficult and expensive to upgrade system, as technology evolves. Cost Considerations Typical station with 8-10 bikes: $35,000 to $55,000 Operating fees: $2,000-$2,500 per bike per year Example Providers • Lyft (Motivate) (Example market: Oakland, Emeryville and Berkeley, CA) • BCycle (Example market: Madison, WI) • Bewegen (Example market: Columbia, SC) • Koloni (Example market: Fox Valley Region, IL) Attachment 3, Page 4 of 21 Hybrid System Description Also referred to as a “smart bike” system, this approach houses transactions on the bike rather than at a station. Parking requirements for a hybrid system can range from allowing parking at a bike rack anywhere within the se rvice area to requiring bicycles be locked at virtual stations, or hubs, that consist of branded racks. The racks have no software or technology features (different than the dock-based system), though they may be delineated using geofencing to a certain extent. When stations are included in the system, the program can require that a bike be left at a station or can permit it to be parked anywhere within the service area. In this type of hybrid system, a typical pricing structure charges a fee to park outside of the hubs or offers an incentive to park at the stations to encourage users to use the branded racks. Defining Feature Offer the reliability and visibility of docked systems with significantly more flexibility. Agency contracts or ownership provide control over implementation, but less ability to manage parking in the right-of-way once launched. Hybrid systems are found in cities of all sizes. Feasibility Considerations: No Stations Pros Cons System can be launched more quickly than docked or hybrid systems with stations. Without adequate bike parking infrastructure, bikes can be improperly parked and obstruct the right-of-way. Station planning and design is not necessary, which saves time and money. Fleet can suffer higher rates of vandalism and theft. System is highly flexible for users. Attachment 3, Page 5 of 21 Feasibility Considerations: With Stations Pros Cons Sponsorship opportunities can create community partnerships. The hardware and software included on the bikes and the need for stations means higher costs than hybrid systems without stations, but lower than fully docked. Station placement gives the agency control over bike locations and parking in the right-of-way. Station placement may require permits and negotiation with adjacent land owners. Stations create a physical presence for the system and advertise to new users. Time and funding for re-balancing bikes. Bike locations are both predictable and flexible for users. Difficult and expensive to upgrade system as technology evolves. Users can more easily locate a pod of bikes for a group to ride. Status as “infrastructure,” can establish a more long- lasting system. Cost Considerations In viable markets, equipment and operations are typically provided to agencies at no cost and companies must apply and pay for permits to operate the system. Companies are supported by venture capital and user fees. In smaller markets, the system is likely to be either purchased outright by the lead agency or procured and contracted through a competitive RFP process. Typical station with 8-10 bikes: $20,000 to $25,000 Operating fees: $2,000-$2,500 per bike per year Example Providers • Lyft (Motivate) (Example market: Portland, OR) • Gotcha (Example market: Washington State University) • Veoride (Example market: Cedar Rapids, IA) • CycleHop (Example market: Beverly Hills, CA) • BCycle (Example market: Los Angeles, CA) • Uber (JUMP) (Example market: Sacramento, CA) Attachment 3, Page 6 of 21 Bike Share Business Models There are four basic bike share governance models in the United States: • Privately owned and operated (permitted or contracted) • Publicly owned and privately operated • Publicly owned and nonprofit operated • Nonprofit owned and operated Generally, there is little relationship between bike share business models and city size. For example, pr ivately owned and operated systems may work well in small cities looking for a turnkey solution, while larger cities may attract companies based on market profitability. The only difference between these models may be that a large city offers permits for a bike share company to operate in their city, while a small city may contract a company to operate in their city. Similarly, publicly owned or nonprofit owned systems may be found in both large and small cities. Attachment 3, Page 7 of 21 Privately Owned and Operated Description An experienced private company brings established skills and credentials in operating bike share programs. The company takes on the risk of funding and operating the program in return for generated revenues. This model is most attractive in markets that support strong returns from advertising, such as a large city or a community with large employers. Privately owned and operated systems can either be awarded permits to operate within a city (the company pays the city to operate) or can be awarded a contract to operate within the city (the city pays the company to operate). This is largely dependent on the local market. Example Markets Sacramento, CA: Lime owns and operates the JUMP system in Sacramento and West Sacramento. San Gabriel Valley, CA: Gotcha owns and operates the GoSGV electric-assist bike share program for the region. Feasibility Considerations Pros Cons Removes financial responsibility and risk from the City and other local partners Correlated to market demand and highly dependent on private sector interest The private operator is strongly incentivized to ensure program success (e.g. high ridership and profitability) Due to private operation, agency control and program transparency is limited to what is defined in regulation and permitting Higher likelihood of success due to established skills and experience from private sector operator Funding options may be limited to what private operator can support Equity goals are harder to implement Summary of Staff Resources Required This type of business model likely requires a low to medium level of City staff involvement. Staff time may include: • Significant involvement in administering and managing a permit program or a contract that enables operations; • Varying levels of involvement in performance monitoring, depending on the number of vendors operating and/or the robustness of the permit or contract stipulations; • Limited involvement in outreach/engagement; • Little to no involvement in seeking sponsor or grant funds . Attachment 3, Page 8 of 21 Publicly Owned and Privately or Non-Profit Operated Description Ownership and financial responsibility for the system is managed by a government agency (e.g., a City, regional, or transit agency). The agency contracts out operations to a third party (or parties), which manages equipment, sponsorship and advertising, marketing, promotions, etc. Example Markets Austin, TX: The City of Austin owns the MetroBike B-cycle bike share system, while the nonprofit Bike Share of Austin operates the system. Chicago, IL: The City of Chicago owns the Divvy bike share system, while Motivate (owned by Lyft) operates the system. Feasibility Considerations Pros Cons The agency has full program control, including the brand, look, and operating standards Agency must have both interest and capacity to manage the program Agency can apply for federal, state, and local funding Agency takes on risk and ongoing financial responsibility Public can hold the agency accountable to a transparent system There are multiple competing priorities beyond financial and operating performance Agency can include goals such as geographic and social equity in the program Summary of Staff Resources Required This type of business model likely requires a medium to high level of City staff involvement. Staff time may include: • Significant involvement in contract administration and management; • Significant involvement in performance monitoring; • Significant involvement in shared decision-making; • Varying levels of involvement in outreach/engagement; • Varying levels of involvement in soliciting sponsorships or grant funds . Attachment 3, Page 9 of 21 Nonprofit Owned and Operated Description An existing or newly formed nonprofit organization (NPO) takes on ownership and financial responsibility for the program. The NPO can manage any combination of responsibilities, including day-to-day system operations, and can also contract out some services to a third party, e.g., marketing and promotions, sponsorship and advertising, etc. Example Markets Boulder, CO: Boulder Bike Sharing owns and operates the Boulder B-cycle system. Tulsa, OK: This Machine owns and operates the Tulsa bike share system. App and technology support are provided by Drop Mobility. Feasibility Considerations Pros Cons This option provides the most flexibility in funding, including local, state, and federal funds, sponsorships, advertising, and philanthropic contributions If NPO is newly-created, building capacity and establishing organization can take time Community-oriented missions of NPOs are well-received by the public NPO often lacks skills and experience at system launch A Board of Directors made up of a broad range of community stakeholders effectively engages public, private, and community organizations in the system The NPO’s performance standards may not meet public and agency expectations for transit service Summary of Staff Resources Required This type of business model likely requires a low to medium level of City staff involvement. Staff time may include: • Moderate involvement in con tract administration and management; • Varying levels of shared decision-making, depending on contract stipulations; • Varying levels of performance monitoring, depending on contract stipulations and/or the public agency's role as a funder; • Limited involvement in outreach/engagement; • Limited involvement in solicitation of sponsorships ; • Moderate involvement in soliciting grant funds . Attachment 3, Page 10 of 21 San Luis Obispo Rapid Bike Assessment San Luis Obispo has a goal to reach 20 percent bike commute mode share by 2030. The following section of this memo will discuss how bike share may fit into the San Luis Obispo context to help the City achieve its mode share goal. San Luis Obispo Context Demographics & Potential User Profiles The City of San Luis Obispo is home to approximately 47,000 residents, with roughly 8,000 additional people living on- campus at California Polytechnic University (Cal Poly), located just outside of the City Limits. Wit h a jobs-to-housing ratio of 2.5:1, many San Luis Obispo workers commute into town from outside areas, increasing the City’s weekday population to nearly 56,000 persons. Most employed San Luis Obispo residents work within the City, with nearly 60% reportin g a daily commute time of less than 15 minutes. Major employers within the city include Cal Poly, San Luis Obispo County, Te net Healthcare and the City of San Luis Obispo. The median age of San Luis Obispo residents is 26, much younger than the County (40) and State (37), likely due to the college-aged population. Children and young adults under the age of 24 account for 48 percent of the city population, while 12 percent are aged 65 and over. Average household income is $49,600, roughly 25 percent below the County average, and roughly 32 percent of San Luis Obispo households own one or fewer automobiles.3 In fall 2019, the City of San Luis Obispo administered a Citywide Household Transportation Survey to residents. Based on the results, the survey profiled San Luis Obispo’s population into one of four bicycling “types”: • 19 percent are “strong and fearless” — they will ride on any roadway regardless of traffic condition. • 38 percent are “enthusiastic but cautious” — they will share the roadway with traffic if necessary but prefer to ride in a designated bike facility • 22 percent are “interested but concerned” — they bicycle infrequently but would ride more if they felt safer. • 21 percent are “not currently interested” — they are not interested in bicycling at this time. Based on this understanding of San Luis Obispo demographics, the profile of a potential user of a bike share program might include: • Local residents who live, work and recreate in the bike share service area seeking another mobility option to get to work or go out to a restaurant; this can be especially critical for the 32 percent of households who own one or fewer automobiles, or those that live near a bus line. The program should identify ways to provide equitable access to the bikes in order to reach this user group. • Transit commuters traveling to the Downtown Transit Center or elsewhere wanting to run errands or meet a friend for lunch. In this way the system can: o Offer a “first or last mile” option between transit and work, school or other similar destinations. o Extend the reach of transit into areas that are currently underserved by transit, particularly with electric - powered bikes that extend trip distances. • Driving commuters who want to run errands or meet a friend for lunch during the workday. • University and college students wanting to get downtown or other destinations off campus. • Visitors accessing parks, entertainment, hotels, and cultural attractions. • Residents, employees or visitors looking to go for a relatively-short recreational ride along the Railroad Safety Trail and other city greenways. 3 Draft San Luis Obispo Active Transportation Plan 2020 (American Community Survey 2018 5 -year estimates) Attachment 3, Page 11 of 21 Land Use Profile & Potential Service Area/Station Locations Bike share systems are most successful where there is a mix of land uses, medium- to high-density of homes and jobs, and where trip-making occurs throughout the day and night as well as on weekends. The City consists primarily of low - and medium-density residential and open space, with retail uses concentrated at the heart of the City’s downtown core and the corridors along Los Osos Valley Road and Madonna Road. Key destinations include the downtown core and Mission Plaza, Cal Poly, the Damon-Garcia Sports Fields, large retail centers along the Madonna and Los Osos Valley Road corridors, the San Luis Obispo Airport & adjacent business parks, hospitals, rail station, and numerous parks & open spaces, such as Bishop Peak and Laguna Lake Park. Local public K-12 schools within the City Limits include 7 elementary schools, Laguna Middle School, San Luis Obispo High School. Attachment 3, Page 12 of 21 Bike Share Demand The following areas are expected to have high bike share demand, relative to the City as a whole: • Downtown San Luis Obispo, including Downtown Transit Center & Mission Plaza • California Polytechnic State University • High-, medium-high, and medium-density residential areas north of Downtown, including those east of Hwy 1 and along California Blvd that connect to Cal Poly o The Railroad Safety Trail along California Blvd would provide a safe place for “interested but concerned” residents to use bike share • High-, medium-high, and medium-density residential areas south of Downtown • San Luis Obispo Amtrak station and nearby retail area o The Railroad Safety Trail would provide a safe place for “interested but concerned” residents to use bike share • Parks, such as Meadow Park, Mitchell Park, and Emerson Park Potential System Scale, Costs & Revenues System Scale The system scale will be highly dependent on the service model and the business model. In a fully station -based bike share system, the system works best when stations are located at destinations and spaced no more than ¼ mile (1,320 feet) apart. While the number of bikes at a station will depend on the demand for bikes at the station (e.g. stations at high-traffic locations such as transit stops and retail destinations would offer more bicycles), most systems average 8 to 12 bikes per station. The industry standard for providing docks ranges from 1.6 to 2.0 docks per bike. A higher number of docks per bike reduces the likelihood of stations reaching full capacity, wh ich reduces out-of-station parking and makes for a better and more reliable user experience. Assuming a station-based bike share system that includes all key areas noted in the prior section, this service area would likely support a minimum system size of 20 stations and 160 bikes, and a maximum of 30 stations and 360 bikes. A higher number of stations unlocks more potential bike shar e trips, while a smaller system might make it more difficult for users to find bicycles or access destinations. In a hybrid system that offers a bicycle that can lock to a bike rack anywhere in the service area, stations may be spaced farther apart, as users will have the option to park at a rack near their destination. System Cost & Revenue The actual costs and revenues of the bike share system will vary depending on the selected vendor, specific equipment, pricing structure and usage. These figures provide conservative estimates using current data from the industry. Though the events of the 2020 year have brought major change and uncertainty, the direct costs of bike share system equipment and operations are not expected to shift significantly. The following section describes the two major types of costs associated with bike share systems: start-up costs and operating costs. Start-Up Costs This category includes both capital and launch costs. Capital costs are the costs associated with the purchase of equi pment including bikes, transaction kiosks (if present), map frame panels and docks. Launch costs are mostly one-time costs that include up-front costs such procuring a service center and storage warehouse, purchasing bike and station assembly tools, station installation, website development, communications and IT set-up and pre-launch marketing. Attachment 3, Page 13 of 21 Operating Costs Operating costs include those required to operate and maintain the system. This includes staff (may be a combination of City and/or vendor staff) and equipment related to: • Station maintenance: Including troubleshooting any technology problems with the kiosk or docking poin ts, cleaning and clearing the station, removing litter and graffiti, etc. • Bike maintenance: Including regular inspection and servicing of bikes as well as maintaining equipment inventory, etc. • Re-balancing: Staff time and equipment associated with moving bikes from full to empty stations and vice versa. This is typically a problem associated with peak demand at commute periods and dur ing events. Re-balancing costs can be mitigated through the use of pricing that encourages riders to return bikes to priority stations or to stations low on bikes. • Customer service: Providing a responsive customer interface for inquiries and complaints as well as performing marketing and outreach to new and existing customers. • Direct expenses: Such as maintaining an operations facility, purchasing tools and spare parts, upkeep of software, communications and IT, administrative oversight, and general administrative costs such as insurance and membership database management. Most vendor/operators price out a system with a per-bike cost for launch, capital costs, and operations. Based on current industry data, Alta estimates bike share costs for a docked or hybrid system in San Luis Obispo to be: • Launch: $2,000/bike • Capital: $3,000/bike • Operations: $2,000/bike/year Using this data, a conservative estimate for a bike share system in San Luis Obispo with 20 stations and 160 bikes would require $320,000 in launch costs, $480,000 in capital costs, and an annual operating cost of $320,000. A conservative estimate for a bike share system in San Luis Obispo with 30 stations and 360 bikes would require $720,000 in launch costs, $1,000,000 in capital costs, and an annual operating cost of $720,000. Actual costs will be dependent on the specific equipment and vendor chosen. Revenue: User Fees The revenue sources for bike share come from user fees, sponsorship, advertising and public funding. User fees include the fees bike share patrons pay for memberships, along with any overtime fees. A key factor to determine revenue through user fees is the “Farebox Recovery Rate” (FRR). The FRR is the percentage of the system’s operating costs expected to be covered by user fees. In bike share systems similar to the recommended system and in cities of similar sizes to San Luis Obispo, the FRR range s from 20 - 40 percent. Assuming an FRR of 25 percent, the user fees for bike share in San Luis Obispo are expected to be approximately $80,000 to $180,000 in the first year of operation. The FRR is expected to grow over the first three years as more users join the system. Considering the FRR, the annual operating gap (costs minus revenues) can be estimated at $240,000 to $540,000 per year. This funding may be secured through a variety of sources, including a combination of sponsorship revenue, and state an d federal grants. See the next section of this memo for more information on funding opportunities. Attachment 3, Page 14 of 21 Funding Opportunities Revenue for bike share programs typically comes from user fees, public grants, and sponsorship and advertising. It is expected that the full cost of bike share will not be covered by these funding sources. Direct appropriations will likely be required to cover the difference between the cost and the revenues from these sources. San Luis Obispo bike share should leverage all three sources of funding to implement and sustain bike share in San Luis Obispo. User Fees User fees include the fees bike share patrons pay for annual, monthly or daily memberships, along with any additional fees (i.e. use of a bicycle beyond the prescribed use period) and pay-per-trip options that are not classified as a membership. Users fees are projected to cover approximately one-third of the operating costs in San Luis Obispo by Year 3 and none of the capital costs. Grants and Public Funding Numerous public funding options are available for bike sharing in the United States, but the most common are federal grants issued by agencies such as FHWA, FTA, or CDC, state grants, and local transportation funds. The FHWA provides a summary of public funding sources in its guide to Bike Sharing in the United States (2012): http://www.fhwa.dot.gov/environment/bicycle_pedestrian/funding/faq_bikeshare.cfm At the statewide level, there is a California voucher program called Clean Mobility Options Voucher Pilot that is designed to fund micro-mobility projects (such as bike share) in disadvantaged communities and at affordable housing locations. There will be an application window in 2021. San Luis Obispo would only qualify for this grant if the bike share were based out of an affordable housing facility located in one of the SB1550 Low-Income Census tracts in the City. This is likely not a good fit for the City, as San Luis Obispo is exploring a city-wide bike share system. More information can be found at: https://www.cleanmobilityoptions.org/ At the local level, most cities have limited the use of local public funding to providing local matches to federal grants (such as CMAQ) as well as providing in-kind services such as staff time, right-of-way use, or displacement of on-street parking revenues (Columbus, OH is one exception as they committed $2.3M of local funds from the Capital budget to purchase the equipment). Local funding would most likely be directed towards capital costs or a specific annual amount for operations (for example, Boulder, CO commits $50,000 annually to the bike share program). Agencies are less likely to want the responsibility — and potential uncertainty — of funding annual operating costs. In other cities, ongoing public funding has come from local “steady stream” sources such as parking revenues, bus bike rack advertising, special taxes, or a portion of the fees imposed for new license plates. Station purchase could also form part of a developer’s transportation demand management (TDM) strategy. This strategy has been used to fund six new bike share stations in Cambridge, Massachusetts. San Luis Obispo bike share may also consider approaching other public agencies to solicit grant funding, such as SLOCOG. Advertising and Sponsorship Revenues There is a subtle difference between advertising and sponsorship. Advertising includes a contract with a company to provide a regularly changing graphic display and message, which could be independent of the bike share station or other street furniture. The advertiser or message may not be associated with bike sharing or bicycling in general. Sponsorship typically involves a longer-term relationship between the sponsor and the vendor, where stickers are put on the infrastructure (bikes, stations, or website) with a logo or statement that “Company X supports SLO bike share.” Attachment 3, Page 15 of 21 Sponsorship provides a significant funding opportunity. Potential major partners include local hospitals (e.g. French Hospital Medical Center, Sierra Vista Regional Medical Center) or local companies (e.g. Mindbody, Inc.). Experience in other cities has shown that companies are generally interested in sponsorship for its positive impr ession and “good corporate citizen” benefits as much as for its media exposure. The value of sponsorship varies significantly between cities and the level of branding. It is possible that sponsorship in the range of $5,000 to $10,000 per station per year is achievable in San Luis Obispo based on experience in other cities: • Nice Ride Minnesota obtained approximately $5,500 per station per year for presenting sponsorship from BlueCross BlueShield (this does not include additional station sponsorship sales th at would increase this rate). • CoGo in Columbus OH received $8,333 per station per year for station sponsorship by the Medical Mutual company. • GREENbike in Salt Lake City received $25,000 per station for a three-year term ($8,333/year) and received sponsorship for 8 of the inaugural ten stations. • Denver B-cycle reported sponsorship of approximately $11,700 per station in 2011. There are generally four approaches to sponsorship: • Title Sponsor: A single sponsor that pays for full branding of the system. Not often feasible in smaller markets. • Presenting Sponsor(s): A sponsor or sponsors that pay for certain parts of the infrastructure. Allows for multiple sponsors to support the system, but requires significant effort to secure and retain sponsors. May not be fe asible in a smaller market. • Station/Hub Sponsors: A sponsor or sponsors that pays for logo placement on a station kiosk and/or a certain number of bikes. Allows local businesses to participate, but requires significant effort to secure and retain sponsors. This is a good option in a smaller market; however, the amount of funding may not be sufficient t o cover system costs. • Other sponsors: One-time sponsors, product partners, media partners, and others may contribute to the system. For example, a sponsor can pay for day-passes for all residents for one weekend. This is useful for marketing and outreach, but does not provide a steady stream of revenue to cover system costs. Other Considerations The City may consider implementing the bike share in conjunction with its transit system to secure zero-emission bus (ZEB) credits through the California Air Resources Board (CARB)’s Innovative Clean Transit (ICT) regulation. Under ICT, transit agencies are required to transition to a 100 percent ZEB fleet by 2040. A transit agency may opt to use a Zero-Emission Mobility Program in lieu or in conjunction of making a ZEB purchase to meet the required minimum number of ZEBs. In order for bike share to qualify for these credits, the program must meet the following requiremen ts (as set forth in section 2023.1(a)(4) of the ICT regulation): 1. The program provides zero-emission mobility services by using bicycles, scooters, or other zero-emission vehicles with a gross vehicle weight rating of 14,000 pounds or less, or any combination of these; 2. The program must be either directly operated by the transit agency or operated by a c ontractor to the transit agency; 3. The transit agency must be able to track and record zero -emission passenger miles for each zero-emission vehicle. Attachment 3, Page 16 of 21 Case Studies Great Rides Bike Share, Fargo Location: Fargo, ND (population: 122,359) Owner/Operator: Great Rides Bike Share Inc. (BCycle system) Start of Service: 2014 (*paused in 2020 due to COVID-19 pandemic) System Type: Docked Number of stations/hubs: 11 stations Number of bikes: 100 bikes Although not in California or on the West Coas t, Fargo’s Great Rides Bike Share system is one of the best examples of a system that serves both a city and a university. Five stations are on campus while the remaining six are clustered in the downtown. System design and management heavily reduces barriers to entry for NDSU students, who are automatically enrolled in program membership through mandatory student fees, which help to fund the system. Students activate bikes with their student ID cards. Non-student residents can join as an annual member, a monthly member, or can pay per hour. This integration and partnership with the University has led to system success, with students taking 90% of all bike share trips and each bike averaging 6-7 rides per day. In 2017, the system averaged about 13,500 trips per month; there were between 12,000 and 25,000 trips per month during the school year, and about 5,500 trips per month in the summer. JUMP Bikes, Santa Cruz Location: Santa Cruz, CA (population: 64,725) Owner/Operator: JUMP / Lime Start of Service: 2018 End of Service: 2020, due to Lime’s acquisition of JUMP System Type: Hybrid Number of stations/hubs: 25 stations Number of bikes: 350+ bikes The City of Santa Cruz partnered with JUMP Bikes to bring bike share to Santa Cruz, with the goal of providing affordable short-term bike rentals and a new transportation option to residents and visitors alike. The system saw 2.5 to 6.2 trips per bike per day, with 20,000 to 50,000 monthly trips and monthly average trip distances ranging from 1.4 to 2.3 miles. These statistics suggest a very well-used system in a community with many similarities to San Luis Obispo, including the presence of a university. While the system performed well in its two operating years, the program ended when Lime Scooters acquired JUMP and the City was told that the system would not continue unless the company was allowed to deploy at least 2 scooters for each existing bike. Attachment 3, Page 17 of 21 Santa Barbara BCycle, Santa Barbara Location: Santa Barbara, CA (population: 91,350) Owner/Operator: BCycle Start of Service: 2020 TBD (not yet in service) System Type: Docked Number of stations/hubs: TBD (estimate: 30 stations) Number of bikes: TBD (estimate: 125-250 electric bicycles) Santa Barbara will be launching electric bike share through a partnership with BCycle. The program was approved by City Council on October 20, 2020 despite concerns from the Historic Landmarks Commission. The system will be fully electric and residents or visitors to Santa Barbara will be able to rent bikes using a smart phone app. JUMP Bikes, Sacramento Location: Sacramento, CA (population: 508,529), West Sacramento, CA (population: 53,727) Owner/Operator: JUMP / Lime Start of Service: 2018; re-launch in 2020 End of Service: 2020, due to Lime’s acquisition of JUMP System Type: Hybrid Number of stations/hubs: Unknown Number of bikes: 200-600 bikes The Cities of Sacramento, West Sacramento partnered with JUMP Bikes to bring bike share to the Sacramento region in 2018. The initial program was hugely popular; Sacramento ranked second (behind Paris) for the most -used JUMP system in the world. Between June 2019 and February 2020, riders in Sacramento took about 550,000 bike trips. The program was paused in March 2020 due to Lime’s acquisition of JUMP, and re-launched in September 2020. Bikes are currently only available in Sacramento and West Sacramento in a program with scooters, and may return to Davis. The new Lime program include a low-income program called LimeAccess, which costs $5/year and allows free rides of up to 30 minutes. Attachment 3, Page 18 of 21 Equity Considerations Equity initiatives are imperative to a successful bike share system. These initiatives mitigate barriers to access for low- income and underrepresented communities, and promote an accessible system that caters to the needs of a wide variety of users. Defining equity in bike share systems is complex and is often contextual to the region it serves. For San Luis Obispo, this definition is an important step as it will inform the practices and operations of the system. The more ways an equity program addresses the barriers for bike share usage, the more robust and successful it will be. The equity of bike share systems is largely evaluated in terms of the ability of all populations represented within the community to participate in the program (i.e. removing barriers to access) as well as geographic di stribution and station placement. Alta researched effective bike share system equity strategies across North America to understand which strategies will most effectively accompany San Luis Obispo’s proposed system. Several systems provided useful examples including Sacramento’s former JUMP bike share system which offers lower ridership costs to low-income users, as well as Boulder’s B-Cycle system which has a variety of pass options to cater to a variety of user needs. The following initiatives are recommended for the City of San Luis Obispo. Removing Barriers to Users Subsidized Memberships and Income-Based Discounts: The vast majority of bike share systems that pursue equity goals, regardless of size, have plans that address the financial barriers to users . An income-based discount option is a key strategy to include low-income bike share riders who may not be able to afford the transportation service at the standard fee. Subsidized memberships support equity goals by reducing barriers to access to those wh o might not usually consider bike share to be a low-cost form of transportation. Cash Payment: In recent years, many bike share providers, both public and private, have implemented cash payment options where users can go to designated locations to add cash to their accounts. Reload locations are often social service providers, bike share offices, and local grocery or convenience stores. Alternate Payment Structures: Beyond income-based discounts and cash payment options, bike share systems should consider other alternative payment structures in order to reduce the financial barriers to entry. For example, rather than offering either a year-long pass or weekly passes, bike share providers could consider offering monthly passes which cater to regular users who can’t afford the high total cost of a year-long pass or the high per-trip cost of a weekly pass. Additionally, providing longer rental times can alleviate fears of overage charges. Reduce Liability and Eliminate Hidden Fees: Some bike share systems require a deposit or have steep fees for lost or stolen bikes. Eliminating these fees across the board or just for low-income users can make people feel more comfortable using the system. This will require discussion with the operator/vendor ultimately chosen to support implementation of bike share in San Luis Obispo. Targeted Marketing: Targeted marketing is any content that increases awareness of the bike share among demographics and populations that may benefit from additional outreach. This strategy is a key way for providers to pursue equity goals. Targeted marketing should reflect the needs of San Luis Obispo residents and visitors. Successful content is created for (and often with the help of) specific groups and communities the bike share system hopes to engage. These strategies could include: ambassador photo shoots, press releases, social media, billboards, bus -stop displays, bike station panels, flyers, emails, and custom painted or sponsored bikes by community partners. Additionally, bike share informat ion offered in both Spanish and English will help further reduce barriers. Electric Assist Bikes: Electric assist bicycles provide better access to a system’s service area for riders with mobility and fitness challenges. With the introduction of these bikes into the bike share system, users will be able to more easily move throughout the service area, as electric bikes make longer trips more possible and help users to overcome steep terrain. Attachment 3, Page 19 of 21 Address Enforcement That May Deter Usage: People of color (POC) receive bicycle-related citations from police officers at higher rates than people who are white. This may deter potential users from accessing the system. Fear of being stopped for not having a helmet or for violating rules such as riding on the sidewalk m ay deter POC groups within the community from seeing bike share as a safe and viable transportation option. Though concrete solutions to this barrier are beyond the scope of this memo, it is important to highlight the need to acknowledge that some users may not feel comfortable using bike share. Program operators should consider implementation of outreach, education, and/or encouragement programs that may help counter the effects of the aforementioned fears. Geographic Accessibility Station Location and Service Area: Bike share station locations and service area extent are critical components of an equitable system. While bike share systems typically launch in high demand (and presumed higher revenue) areas, such as downtown and near tourist destinations, geographic and social equity should be considered when deciding where to locate a station. San Luis Obispo’s recommended stations should be selected through an equity lens. Areas where low -income residents live and places close to public transit corridors should be used to create the recommended bike share stations and service area extent. Rebalancing: Bike sharing is a transportation system that is dynamic and fluid. It is important for every bike share provider to ensure the appropriate redistribution of bicycles to its full-service area such that no location is over or undersupplied. Without rebalancing efforts, the system may drift away from its original service area and be rendered ineffective or exclusionary to certain communities. Stations located in SB1550 Low Income census tracts should be prioritized for rebalancing efforts as these areas were identified in the equity analysis. Bike share providers can also incentivize rebalancing by users through fee and payment structures or prioritize certain locati ons over others to ensure that the system is equitable for all people. Attachment 3, Page 20 of 21 Findings and Conclusions San Luis Obispo will likely need to approach operators with funding Smaller cities are currently less lucrative target markets than large cities for privately funded bike share systems. While this does not mean a bike share system cannot be successful, it is important to underscore that some public funding (possibly substantial) will likely be necessary to finance the system, especially initially. SLOCOG may be a partner to provide system funding. San Luis Obispo meets many of the criteria that are associated with successful small city bike share systems, including presence of a college campus, existing and planned bicycle facilitates, flat topography, nearby recreational areas with trail connections, and serving as the region’s primary media market. Due to these factors, it is likely a system will be successful from an operational standpoint and, over time, may require less City fu nding. Partnering with Cal Poly may be the best approach for a long-term, sustainable system As noted, a key criterion to a successful bike share system is finding areas with mid- to high-density and clusters of people and activity. In a small city this is usually found in a downtown area or college campus. With a student population of over 21,000 undergraduates and over 700 graduates, Cal Poly provides a key market segment that is a likely bike share system user. Additionally, the ability to include bike share membership in student fees provides a steady stream of revenue for the system while increasing the likelihood of system usage. Cal Poly also employs over 3,000 staff members. The bike share program may be able to offer these staff members discounted memberships to facilitate trips such as commute trips or errands to other areas of the city. Attachment 3, Page 21 of 21