City of Santa Monica
California

Staff Report
1524

Memorandum of Understanding with the City of Los Angeles for Venice area Breeze Bike Share Stations Installation and operation

Information

Department:Strategic & Transportation Planning (PCD)Sponsors:
Category:03. Consent Calendar

Recommended Action

Recommended Action

 

Staff recommends that the Council:

 

1.      Authorize the City Manager to execute a Memorandum of Understanding (MOU) with the City of Los Angeles for the installation of Breeze Bike Share Stations and bike share operation in the Venice area of the City of Los Angeles.

 

2.      Authorize the City Manager to execute future Memorandum of Understandings (MOU) with the City of Los Angeles for the installation and operation up to 15 additional Breeze Bike Share Stations in other adjacent areas, not to exceed 20 City of Los Angeles stations.

 

Staff Report Body

Executive Summary

 

When the Council adopted the 2011 Bike Action Plan (Attachment A), it prioritized the development of a bike share system throughout Santa Monica with a focus on supporting a regional bike share network. On November 12, 2015 Santa Monica launched the Breeze Bike Share system throughout Santa Monica. The grant funding for Breeze Bike Share included capital funding for up to five stations outside of Santa Monica. Staff has received numerous requests for stations in the Venice area of Los Angeles, and therefore initiated conversations with Los Angeles City Councilmember Mike Bonin’s office to pursue the expansion of Breeze Bike Share to that district. After thorough review, both parties have agreed to the terms of the zero-cost MOU, which will enable the City of Santa Monica and its operator Cyclehop, to site, install, maintain, and operate five Breeze Bike Share stations in the Venice area of Los Angeles.

 

This expansion of Breeze Bike Share to the Venice area would: improve operational efficiency for Cyclehop by reducing the time spent retrieving out-of-hub bikes, enhance the user experience by opening-up a new destination where users can visit and lock the Breeze Bikes without incurring out-of-hub fees, and provide a desired service to a neighboring constituency increasing staff’s ability to attract new bike share members and generate additional revenue.

 

The report recommends that City Council authorize the City Manager to execute the MOU to enable Breeze Bike Share to be expanded into the Venice area, and to authorize similar MOUs for potential expansions in other adjacent communities like the Mar Vista area, not to exceed 20 City of Los Angeles Stations. Los Angeles City Council is anticipated to review and approve the MOU on February 26, 2016.

 

Background

 

On August 23, 2011 (Attachment B), Council directed staff to pursue a regionally-coordinated bike share system as a high implementation priority. On September 24, 2013 (Attachment C), staff gave a progress update to Council, including an initial feasibility analysis and update on regional bike share development. Council gave direction to move forward on the project in Santa Monica while working with regional partners. Council accepted a grant in the amount of $500,000 for the bike share system through an agreement with the South Coast Air Quality Management District Mobile Source Air Pollution Reduction Committee that provided capital funding for up to five stations outside Santa Monica.

 

On November 11, 2014 (Attachment D) Council authorized the City Manager to execute an eight year operations contract with Cyclehop LLC, consisting of four initial years and two additional two-year renewal options, not to exceed a total amount of $10,405,580 over eight years for the operations of the 500-bicycle sharing system. Following the contract execution, staff and the operator initiated a public engagement process to solicit community feedback on bike share station siting. Through public meetings and solicitation of comments through a web-portal, staff received numerous requests for stations in the Venice area of Los Angeles because of its proximity and strong connections to Santa Monica including Main Street to Abbott Kinney, and the Marvin Braude beach bike path.

 

On November 12, 2015 Santa Monica launched Breeze Bike Share throughout the City of Santa Monica.  Preceding launch, staff initiated contact with Los Angeles City Councilmember Mike Bonin’s office to explore the siting of Venice area Breeze Bike Share stations. Councilmember Bonin’s office confirmed their constituents’ desire for Breeze Bike Share in their district, and advised that an MOU would be needed. The MOU between the City of Santa Monica and the City of Los Angeles, would permit the installation of five stations in the Venice area, and allow Cyclehop to operate and maintain the Breeze Bike Share at the selected sites.

 

Discussion

 

There is a near seamless connection between the City of Santa Monica and the Venice area of Los Angeles including main connections along Main Street to Abbott Kinney and along the Marvin Braude beach bike path. People riding on-street facilities and the beach path regularly cross from one jurisdiction to the other for commuting, recreation, or tourism purposes. Over the first two months of operation the Breeze Bike Share operator, Cyclehop, has observed numerous daily Breeze trips to and from the Venice area and beyond. Because of the flexibility of Breeze’s ‘smart bike’ technology Breeze bikes have been, and will continue to be, used and dropped off in the Venice area. Dedicated stations in the Venice area will focus the majority of trip origins and termini to specific locations, which will improve operational efficiency by reducing the time spent retrieving out-of-hub bikes. Since the Breeze Bike Share launch on November 12, 2015 Councilman Bonin’s office has been inundated with requests for stations in their communities and has expressed to staff their eagerness to provide Breeze Bike Share to their constituents.

 

Following a thorough review by City of Santa Monica Attorney’s Office and City of Los Angeles DOT, both parties have agreed to the terms of the MOU, which will enable the City of Santa Monica and its operator Cyclehop, to site, install, maintain, and operate five Breeze Bike Share stations in the Venice area of Los Angeles.

 

The agreement stipulates a seven year term of service in which: the City of Santa Monica is permitted to operate Breeze Bike Share in accordance with the Cyclehop contract with the City of Santa Monica; neither party shall be financially compensated for this service; both parties indemnify and hold harmless the other party and will assume the liability imposed on it for any wrongful act or negligence; and the City of Santa Monica carries the appropriate insurances to carry out bike share operations within the City of Los Angeles. Either party can terminated the agreement upon giving a sixty day notice in writing.

 

Los Angeles City Council is anticipated to review and approve the MOU on February 26, 2016. The siting and installation of the Venice area bike share stations is tentatively scheduled for mid-March 2016.

 

Financial Impacts and Budget Actions

 

There is no immediate financial impact or budget action necessary as a result of the recommended action. Staff will return to Council if specific budget actions are required in the future. While neither city will be financially compensated for the service, new stations in the Venice area will create no additional costs for the Breeze Bike Share System. A grant from the South Coast Air Quality Management District provided capital funding for station equipment acquisition, including stations in the Venice area. The cost of operating and maintaining Breeze Bike Share stations in the Venice area is included in the existing contract with CycleHop to operate the 500-bicycle bike share system. Venice area stations may generate additional revenue by attracting new users from neighboring communities to the system and facilitate greater public use of bike share between the two cities.

Meeting History

Feb 23, 2016 5:30 PM  City Council Regular and Special Joint Meeting
draft Draft