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Port approves Bay Area Bikeshare pilot stations on waterfront with 12-month fee waiver

Port Commission · July 9, 2013
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Summary

The Port Commission approved a license and 12-month fee waiver for Alta Bikeshare stations at several waterfront locations as part of a pilot; staff emphasized non-compete pricing protections for local rentals and operational flexibility.

The Port Commission approved a memorandum of understanding and a 24-month license to host Bay Area Bikeshare stations on Port property, with a fee waiver for the first 12 months of the pilot as requested by Alta Bikeshare and SFMTA.

What was approved: Kania Dorland presented station locations on Port property (Roundhouse Plaza across from Pier 27; Embarcadero sidewalk locations; Seawall Lot 324 near Piers 9'15; Exploratorium/ Harry Bridges Plaza; Gap Plaza near Rincon Park; Bryant Street/Embarcadero near Pier 40) and described the license terms: an initial 24-month license, funding for the first 12 months, and an option for the Port to impose a fee or percentage rent after month 12 if the program shows positive gross revenue.

Pricing and operations: Dorland said the citywide roll-out is expected to include up to 1,000 bicycles at 100 stations. The pricing structure is tiered "with the first half hour free," and the license contains a non-compete clause to limit direct price competition with area bike-rental businesses. Dorland and MTA staff said modular stations can be rebalanced and resized to meet demand and that operators will rebalance bikes to avoid full or empty stations.

Questions and safeguards: Commissioners asked about membership, helmet availability and how the program handles full stations; SFMTA staff described membership options, in-station credit purchase, rebalance operations and a kiosk code to extend short free trips when a destination station is full.

Vote: The commission voted to approve the license and the 12-month fee waiver for the pilot; staff will monitor program performance and report back before month 13 to discuss potential fees or revenue sharing.

The Port's approval cleared station placement on Port property and affirmed operational safeguards to protect local rental businesses while allowing the pilot to proceed.