Honorable Mayor and Members of the Hermosa Beach City Council Regular Meeting of November 14, 2017
Title
UPDATE ON OPTIONS FOR A SOUTH BAY BIKE SHARE
PROGRAM AND TEXT AMENDMENTS TO THE HERMOSA
BEACH MUNICIPAL CODE TO ESTABLISH A PERMITTING
PROCESS REGULATING THE PLACEMENT OF BIKESHARE
BIKES IN THE PUBLIC RIGHT OF WAY AND PREVENT
BIKESHARE OPERATORS FROM OPERATING WITHOUT
A PERMIT IN THE CITY OF HERMOSA BEACH
(Environmental Analyst Leeanne Singleton)
Body
Recommended Action:
Recommendation
It is recommended that the City Council:
1. Introduce on first reading and adopt ordinance 17-XX (Attachment 1) establishing a permit requirement for bikeshare operations, and establishing administrative penalties for failure to obtain and/or for parking any bicycle that is not part of a City-permitted program in the public right-of-way; and,
2. Provide direction to the City Manager on whether to pursue one of the following options for bikeshare operations:
• Establish a permitting program that would allow multiple bikeshare operators to offer their services in Hermosa Beach and use designated public right of ways for parking bikeshare equipment
• In collaboration with neighboring cities, coordinate with one of the existing operators in LA County to join an existing bikeshare program
• Solicit proposals, in collaboration with neighboring cities, to negotiate with an operator for exclusive operation of a bikeshare program in the beach cities; or
• Do not further pursue a bikeshare program at this time.
If Council provides direction to establish a bikeshare program, staff recommends pursuing a one year pilot permitting program that would allow multiple operators.
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Background:
The City of Hermosa Beach has been coordinating with the cities of Manhattan Beach, Redondo Beach, and El Segundo, as well as the Beach Cities Health District to explore the development of a Bikeshare Program for the Beach Cities. Bikesharing is an additional transportation choice, ideal for short distance trips providing users the ability to pick up a bicycle at a variety of designated locations and return it to any other location within the system's service area. These bikeshare services allow users to only pay for the bike while they are actually riding the bike, with the bike checked back in at the end of the trip and available for another user to check out. The technology associated with bikeshare equipment has evolved rapidly in the last year, with several companies now offering dockless bikeshare equipment in which the bike self-locks, meaning that it can be left virtually anywhere in the public right of way and has the potential to create a nuisance condition if not addressed in the municipal code.
Establishing a bike share program in Hermosa and the South Bay has been a topic of discussion in various Hermosa Beach commission and City Council discussions in recent years as an opportunity to expand transportation choices for residents and visitors to Hermosa Beach. The 2016 Strategic Plan identified Bike Sharing as an item “on the horizon” for 2017-2021 and PLAN Hermosa, the city’s integrated General Plan and Coastal Land Use Plan adopted in 2017 includes policies and implementation actions associated with expanding transportation options and facilitating bicycle rentals in the Coastal Zone.
Local Bike Rental Shops
Hermosa Beach has shops that rent bicycles to the public, but other nearby cities have lost bicycle rental concessions in recent years, which is part of the motivation for exploring bikesharing options within the beach cities. While there is some overlap with the potential users or customers between a bikeshare system and bicycle rental shops, most bikeshare systems tend to focus on providing another commuting option, 24-hour service, app-based payment systems, and providing flexibility/options for where bikes are picked up and dropped off, while bicycle rental shops tend to be geared more toward recreational use by visitors/tourists that are picked up and dropped off in the same location during daytime hours. Bicycle rental shops also tend to offer a range of rental equipment (road bikes, kids bikes, tandem bikes) that they offer for rental, where most bikeshare companies offer just one type of bicycle and restrict use to those 16 years or older.
In the beach cities there are a total of eight shops that offer bicycle rentals on an hourly or daily basis. There are currently no shops in Manhattan Beach that offer bike rentals, three in Hermosa Beach (although one is closing) and five in Redondo Beach/Torrance. There is currently one local bike rental shop that offers electric bikes. Staff has met with local shops that offer bike rentals and found that they are concerned about a possible launch of a bike share program. Information on each bike shop that offers rentals in the beach cities is provided in the table below.
Many of the bikeshare operators have found success in partnering with local bicycle shops in the service area to support maintenance needs, customer purchases of accessories, and re-directing users to the shops for more versatile equipment.
Bikeshare Technology and Equipment
There is an array of equipment options for bike share programs. As technology advances, more equipment has become available and older equipment has become obsolete. Most bike share programs today have one of three setups: Smart Dock with charged docking stations, Smart Bikes with or without bike racks, and Electric Assist Bikes (E-bikes) with charged docking stations.
1. Smart Dock with Charged Dock Stations
For a Smart Dock system, the customer performs transactions with the kiosk at the Smart Dock station often reserving a bike through a mobile app or the internet first. Once the customer has checked out a bike and would like to return it, the customer must physically return the bike to another Smart Dock station within the system boundary (i.e. the geographic area within which bike share customers may ride without incurring a penalty fee). Bikes under a Smart Dock system must always be docked in a station if they are not being used. Due to these restrictions - bikes always having to be docked, the system boundary and service area - the portion of the community within convenient walking distance of a bike share station - are the same. Logistically, some cities have found this easier when implementing a bike share program and defining the area of service despite the lack of flexibility for customers in having to plan trips around availability of bikeshare stations. A drawback of this system are the docking stations themselves, which require a power source and maintenance to accept payments.
2. Smart Bike with or without Bike Racks
A Smart Bike removes the need for docking by having the customer interface on the bike itself coupled with the integration of GPS to track each individual bike. Each bike location is reflected in an interactive map provided to the customer via the internet or phone application. Bike share programs that use Smart Bikes either have branded bike racks with information panels or do not need to be physically locked to anything (back wheel lock). Smart Bikes can be returned to any bike rack, or parked in areas designated for bicycle parking. Often a fee is incurred for leaving a Smart Bike outside of the system boundary. Since Smart Bikes do not have to be docked, every customer can return a Smart Bike or check out a Smart Bike from anywhere in the service area. Smart Bike provides more flexibility to customers with minimal additional, logistic complications to the bike share system. However, the flexibility can also create a need to rebalance the distribution of bikes and the challenge of users parking bikes that are inaccessible to the general public. Due to Smart Bike’s flexibility, Smart Bikes often have to be rebalanced. Rebalancing requires picking up bicycles that haven’t been returned to the bike share bike racks and redistributing them based on demand by the operators. The other complication is establishing the service area and system boundary since Smart Bikes can essentially be taken anywhere.
3. E-Bike with Charged Dock Stations
E-bike bike share programs have the same concept as Smart Dock except the bicycles are charged to provide an electric assist to the rider. Each kiosk must be A/C powered in order to implement an E-bike bike share system. Solar powered docking stations and batteries are on the rise for E-bikes, but are not as readily available due to bike charging complications. Many bike share equipment providers are working to change this and make batteries and renewable energy the main source of power for E-bikes. The customer will check out the bike using the kiosk, reserving the E-bike via a mobile app or the internet first, and upon riding can be provided with an electric assist on average up to 20 mph. Other E-bikes on the market can exceed this speed, but due to the increased risk of injury with increased speed, bike share programs that are attempting to incorporate E-bikes into their systems opt for the lower speed E-bikes. Each E-bike must be returned and docked into a charged docking station.
E-bikes cater can cater to a broader demographic, can serve longer length trips, and are also an option for a steep or hilly terrain, such as some east/west corridors in the Beach Cities. The major drawback for most cities with E-bikes is the obstacle of laws surrounding motorized vehicles being parked on sidewalks, and speed restrictions at which a license is required from the DMV; E-bikes have motors while other bicycles do not and the law is still catching up to make the distinction. E-bikes may also require additional training or education or safety precautions given the higher speeds at which they can travel.
Current Bikeshare Operators
In recent years, bike sharing systems have become popular in many cities around the globe as a way to expand transportation choices. According to the Bike Sharing World Map (Attachment 4), in October 2017 there were a total of 1,422 bike share systems operating worldwide, 400 cities pursuing a bike share program, and 157 programs that are no longer operating. As of 2016, there were more than 55 different systems operating in U.S. cities. These systems have continued to grow in the number of trips taken each year, with more than 28 million trips nationwide in 2016.
1. Local Bikeshare Operations
Systems already operating in LA County include the City of LA, Long Beach, Santa Monica, West Hollywood, Pasadena, with Beverly Hills and Culver City actively pursuing development of or participation in a bike share program. Currently, there are two different operators of bike share systems in LA County:
• Cyclehop, which operates in Santa Monica, Long Beach, West Hollywood and will soon be operating in Beverly Hills, Westwood, and Culver City. CycleHop runs their own operational services and is provided equipment by Social Bicycles. CycleHop offers Smart Bikes, but have recently made E-bikes available. Smart Bikes do not need to be returned to a station upon ride completion, making a Smart Bike, bike share program more flexible compared to a traditional Smart Dock system.
• LA County Metro, which is operating in Downtown LA and has recently expanded to Pasadena, Venice, and San Pedro. Los Angeles County Metropolitan Transportation Authority (Metro) operates the Metro Bike Share program. Metro Bike Share is provided equipment by BCycle and operational services by Bicycle Transit Systems. Metro currently utilizes a Smart Dock system, but will be launching Smart Bikes in 2018. At this point in time, Metro’s service area expansion focus is on areas adjacent to their light rail and high traffic bus operations as a way to enhance transit accessibility.
Additionally, several of the market-based bikeshare operations, described in more detail below, have indicated that they are also in discussions with cities in LA County to launch programs, including announcements in early November of bikeshare program launches in Griffith Park and LA City Council District 15 (from San Pedro to Watts).
2. Joint-City/Regional Bike Share Program Service Providers
Since each of the beach cities are relatively small in geographic area, a joint-operation or compatible programs is an area of need for the long-term success of the program. With that in mind, staff explored other joint-city or regional program operations to gain a better understanding of the considerations. Four of the five largest programs in the US are joint-city, regional bike share programs.
• Capital Bikeshare (Greater Washington D.C.) is the one of the largest regional bike share programs in the United States. Capital Bikeshare consists of over 3,700 bicycles with 440 stations, and spans five cities and two states. In 2008, the District of Columbia launched the first bike share program in North America with 120 bikes and 10 stations serving downtown Washington D.C. SmartBike D.C. ran in operation for two years. In 2010, Capital Bikeshare launched in Arlington, VA and The District of Columbia. Capital Bikeshare soon launched in Alexandria, VA in 2012. Montgomery, MD soon followed during the spring of 2013. In a three year span, all cities that were initially a part of the bike share collaboration efforts were up and running. Capital Bikeshare continues to be successful and the number of rides each year increases. In the fourth quarter of 2010, Capital Bikeshare reported 117,693 trips compared to the second quarter of 2015; 999,074 trips.
• Hubway (Boston, MA) In 2011, Hubway launched in Boston boasting over 100,000 rides in just a small 10 week span and by November consisted of over 3,600 members. Many bike share programs struggle to achieve 100,000 rides in the span of a year. With such quick success, followed by the hibernation period for bike share due to Boston’s extreme winter weather, three cities joined Hubway. In 2012 Cambridge, Somerville, and Brookline signed a regional agreement with Boston and signed contracts with Motivate. Since 2011, rides have increased by 696% from 140,974 rides in 2011 to 1,122,558 rides in 2015.
• Divvy (Chicago, IL) Chicago’s bike share program, is large and expansive with over 5,800 bikes and 580 stations. Divvy launched in 2013 and is a program under Chicago Department of Transportation (CDOT). Similar to Hubway, Divvy did not launch as a joint-city, regional bike share program. In 2016, the cities of Evanston and Oak Park became part of the Divvy bike share system. Due to the popularity of the program and the efforts of CDOT, 100 miles of bikes lanes were added to the streets of Chicago and the city hit number one on Bicycling Magazine’s “50 Best Bike Cities of 2016” in the Fall of 2016.
• Citibike (New York, NY & Jersey City, NJ) has a bike share program New York and Jersey City. New York and Jersey City are operated by Motivate and allow access to both cities for membership. Citibike NYC/Jersey City is the largest bike share program in the nation and generates the most rides of any bike share program. In spring of 2013, New York launched their program with 5,000 founding memberships, selling out in a matter of 30 hours. In 2015, Jersey City launched their bike share program that is integrated with Citibike NYC. The bike share program will consists of over 12,000 bikes by the end of 2017, and has generated well over 44 million rides to date.
3. Current E-bike Operations
In July, 2017 Summit Bike Share was launched for Park City and Summit County in state of Utah. This is the first full E-bike fleet that has been implemented into a bike share program in the United States. Each docking station is either solar powered or wind powered, and is not connected to the city’s grid. The E-bikes themselves run on batteries that are capable of a 1 hour to charge the battery with 24 hour battery autonomy, which are charged upon docking the E-bikes to the stations. A typical E-bike has multiple settings for speeds up to 20 or 30 mph, while the Summit Bike Share E-bikes reach up to 14.5 mph; providing a much safer speed restriction for riders.
In October 2017, the City of Santa Cruz entered into an agreement with Social Bicycles to launch a mixed fleet of traditional bikes and E-bikes as part of a bikeshare program. That program is expected to launch in March 2018.
4. Market-Based Bikeshare/Rideshare Operations
The technology and approach to funding bike sharing systems is also continuing to evolve and shift toward a venture-financed approach where cities no longer need to provide significant capital investment to purchase the bikes and install dedicated bike share stations. Instead the cost of the bikes and associated operation and maintenance is covered by the fees paid by the user, and the primary involvement of the cities would be in the siting/permitting of the equipment and stations and the advertising/education about the program.
Within the last year, several cities have shifted or added to their existing network of bike share by authorizing these dockless bike share programs, typically on a non-exclusive basis, to operate within the community. This approach is similar to how cities issue permits and charge a fee to authorize taxi operators or allow newsracks to be placed within the public right of way.
This new system of dockless bike share operations has been launched in cities and university campuses both small and large including large cities like Seattle, Dallas, San Francisco, Washington D.C., and smaller programs in California cities like South San Francisco, Imperial Beach, Alameda, South Lake Tahoe. There are a number of companies that are operating dockless bikeshare systems in the US and they include: LimeBike, Spin, Ofo, and Mobike. Several of these operators have indicated plans to launch in cities in LA County in the next few months.
In September 2017, Washington D.C. launched a pilot program that permitted four different operators for a period of six months, in addition to its existing docking station-based Capital Bikeshare program, to see if the dockless system can help to cover existing gaps/periods of peak demand and facilitate greater bike use and reduce traffic congestion.
In addition to bike sharing equipment, there are companies launching throttle-assist scooter sharing programs under a similar funding model and app-based approach. Last month in Santa Monica, the company Bird launched an app-based scooter system.
Analysis:
Goals and Objectives of a South Bay Bikeshare System
As noted previously, the City of Hermosa Beach has collaborated with nearby cities and the Beach Cities Health District in exploring options for bikesharing. As the different operations and technologies have been reviewed, it was important for the group to define a set of goals and objectives, identified below, to help evaluate the range of bikeshare options and determine which make the most sense for our area:
• Offer additional transportation choices and flexibility to residents and visitors
• Reduce parking demand and traffic congestion
• Support healthy and active lifestyles
• Connect to other transit (or bikeshare) systems
• Increase awareness and safety for bicycling
• Connect local destinations, points of interest, and employment centers
• Reduce greenhouse gas emissions and improve air quality
• Offer a lower-cost alternative to driving/parking
• Support economic development/tourism and partnerships with local bike shops
• Offer an amenity for the community particularly those that may not have the storage space or up-front costs for bicycles
• Collaborate with operators to share data that enables informed, data driven decision-making related to transportation infrastructure investments
Municipal Code Amendments
With the number of bikeshare operators expanding rapidly in the last year, there are some amendments to the municipal code necessary to prevent “rogue” bike share companies that have launched services in some cities without consulting city officials. Lack of changes to the municipal code could limit the City’s ability to provide expectations for the operation of bikeshare companies and pose public safety risks if not properly managed.
An ordinance containing the proposed amendments to the municipal code to both prevent operation of bikeshare equipment without a permit and to establish a permitting system, if Council provides direction to do so, are provided as Attachment 1.
Implementation Options
With regards to implementation of a bikeshare program, there are a couple of different approaches the City of Hermosa Beach can take. To date, the beach cities have received interest from at least three operators of bikeshare programs. Each program implementation option is described in detail below, and Council should provide direction to the City Manager on whether to pursue one of the following options for bikeshare operations. If Council wishes to pursue a bikeshare program, staff would recommend a permitting approach and the launch of a pilot program (Option 1 listed below).
1. Establish a permitting program that would allow multiple bikeshare operators
If direction is provided to develop a permitting process, staff would recommend starting the issuance of permits with a one-year pilot program in which the City would authorize/issue non-exclusive permits for qualified bikeshare operators. The pilot program would allow multiple operators to install a maximum of 1,000 total dockless bikes (e-bikes or traditional). Most operators have installed between 200 and 300 bikes each in communities with similar populations or visitor profiles. Additionally, with a permit approach local bike shops/rental operators have the opportunity to apply for a permit and launch their own bikeshare operation if they are so inclined.
A pilot program approach would allow for a relatively quick launch of bike share operations, yet ensures that operators are vetted before a permit/license is issued. Additionally, the approach of launching a non-exclusive program will allow the City and permitted operators the flexibility to refine program components during the pilot phase, and offer the community an opportunity to test various technologies and options and provide feedback. This permit approach, if also adopted by nearby cities, would allow the expansion of the geographic network for system users and provide consistency for operators across the jurisdictions, but would reduce the complication of having to create a complex cost/revenue sharing model among the cities or requiring all cities to join a program prior to launch. An example permit application prepared for San Francisco Municipal Transit Agency is provided as Attachment 2.
2. Coordinate with one of the existing operators in LA County to join an existing bikeshare program
By joining an existing program, the City would sign on to a Memorandum of Understanding established between local jurisdictions like Santa Monica, West Hollywood, or Pasadena with the current operators of bikeshare programs. This would provide for the integration of equipment across a larger geographic area, but also limits the negotiating capabilities of the beach cities for certain terms or conditions of operation.
3. Solicit proposals to negotiate with a bikeshare operator for exclusive operation of a bikeshare program
Under this scenario, the City would collaborate with neighboring cities to issue a Request for Proposals from bikeshare operators, review the proposals, and provide a recommendation to City Council to enter into an exclusive contract for the operation of a bikeshare program with the most qualified operator. The proposals submitted by different potential operators would describe the scale and scope of a program, technology to be used, and cost structure that would include the use of any advertising revenues, user fee structure, and expected costs to the City.
4. Do not further pursue a bikeshare program at this time
If Council provides direction to not pursue a bikeshare program, staff would not spend any additional time pursuing a bikeshare program until further direction is provided by Council.
General Plan Consistency:
PLAN Hermosa, the City’s General Plan, was adopted by the City Council in August 2017. As part of that document, the City set goals and adopted policies aimed at offering greater transportation choices to the community and reducing traffic congestion/demand for parking. Implementation of a bikeshare program helps to implement the following General Plan goals and policies:
Governance Element:
• 4.2 Leadership in sustainability. Establish the City as a regional leader in sustainable development and encourage compact, walkable development patterns that conserve land resources, supports active transportation, reduces vehicle trips, improves air quality, and conserves energy and water.
• 4.3 Collaboration with adjacent jurisdictions. Maintain strong collaborative relationships with adjacent jurisdictions and work together on projects of mutual interest and concern.
• 4.4 Regional transportation and infrastructure decisions. Actively support regional transportation and infrastructure projects and investment decisions that benefit the City and the region.
Mobility Element:
• 3.4 Access opportunities. Provide enhanced mobility and access opportunities for local transportation and transit services in areas of the city with sufficient density and intensity of uses, mix of appropriate uses, and supportive bicycle and pedestrian network connections that can reduce vehicle trips within the city’s busiest corridors.
• 3.6 Complete bicycle network. Provide a complete bicycle network along all designated roadways while creating connections to other modes of travel including walking and transit.
• 4.9 Encourage TDM strategies. Encourage use of transportation demand management strategies and programs such as carpooling, ride hailing, and alternative transportation modes as a way to reduce demand for additional parking supply.
• 7.8 Active transportation education and safety. Promote the participation in pedestrian, bicycle, and skateboard safety and education programs to facilitate safe and confident use of alternative modes of transportation.
Implementation Actions:
• MOBILITY-13. Install and maintain transportation amenities such as bicycle parking and electric vehicle charging stations so that they are available at each commercial district or corridor, park, and public facility.
• MOBILITY-14. Periodically review the South Bay Bicycle Master Plan to consider new or modified facilities and opportunities.
• MOBILITY-15. Facilitate the operation of bicycle rental concessions in the Coastal Zone.
• MOBILITY-16. Install additional bicycle parking facilities and wayfinding signage near the beach, the Pier, and The Strand.
PLAN Hermosa also identified ideal locations for transportation amenities, including ideal bicycle parking locations in commercial areas and public facilities in Hermosa Beach. These locations (identified in Attachment 3) would be used in conjunction with the bicycle mini corral plan to install additional bicycle parking locations that can be used to park and lock both private and bikeshare bikes.
Fiscal Implications:
At this time, there are no fiscal implications associated with enacting changes to the municipal code. Depending on the direction provided by Council for implementation there are different cost components that will be considered. A brief summary of the different cost components and examples are provided below, though it should be noted that exact costs or rate structures will depend on the type of program pursued.
Equipment Purchase and Maintenance
Early bikeshare programs often involved significant capital investment, advertising revenue, or grant funding from cities to purchase equipment, docking stations, and pay for an operator to maintain the equipment. With the recent evolution in bikeshare to a dockless system, many of the new operators have been able to significantly reduce the cost of manufacturing bikes and offer programs with limited financial investment from the City as the user fees cover the cost of the equipment and operations.
Permit /Management Costs
If the City pursues a permit approach, the City would establish an application fee to cover the cost of staff time to review the application and an annual renewal fee (at a lower rate) to ensure regular review of operators. Additionally, under a permit approach the City would likely establish a monthly per bike license fee to ensure infrastructure like bicycle parking and education needs scale with the size of the program.
Infrastructure and Capital Improvement Needs
Depending on the approach and scale of a bikeshare program, there may be a near-term need to install additional designated bike parking areas and/or signage. This cost would be covered by an exclusive operator or paid for by the City through permit fees.
In the longer-term, the success of bikeshare programs is generally tied to having safe and convenient bicycle infrastructure for all segments of the community. Additional investment in bicycle infrastructure, as identified in the South Bay Bicycle Master Plan and PLAN Hermosa is generated solely by the launch of a bikeshare program, but may emphasize the need for investment in active transportation infrastructure.
Education, Marketing, and Outreach
In order to effectively evaluate the various aspects and operators, City staff will prepare education and outreach materials and/or host meetings so that the City can help to raise awareness and collect feedback early in a bikeshare program operation. The City will maintain a digital/online forum for bikeshare users to report issues and provide feedback on the permitted operations. These costs are expected to be under $5,000 in the first year, and would either be covered as part of an exclusive agreement or the costs from issuing permits.
Bikeshare User Costs
To facilitate competitive rate pricing, the exact cost of use will be determined by each bikeshare operator at the launch of their program. There is a wide variety of fee structures that have been used in existing bikeshare operations, and examples of some of the structures are provided below.
Attachments:
1. Proposed City of Hermosa Beach Municipal Code Amendments
2. Sample Permit Application for Bikeshare Operators from SFMTA
3. PLAN Hermosa Transportation Amenities/Bicycle Parking Areas
4. Link to Bike Sharing World Map
Respectfully Submitted by: Leeanne Singleton, Environmental Analyst
Concur: Ken Robertson, Community Development Director
Concur: Glen W.C. Kau, P. E., Public Works Director
Noted for Fiscal Impact: Charlotte Newkirk, Accounting Manager
Legal Review: Lauren Langer, Assistant City Attorney
Approved: Sergio Gonzalez, City Manager