Kh SFMTA Sola ie Municipal Cher Bre Transportation Synth Borden, Oo Agency Maloim Hecke, Decor Edward D. Rein, Oretort Fans January 16, 2017 Gang Li Chief Executive Officer Bluegogo International, Inc. 4633 Old Ironsides Drive, Suite 106 Santa Clara, CA 95054 CS@bluegogo.com Re: Proposed Bike Share Business in San Francisco Dear Mr. Li: We understand that your company intends to launch a bike share business in San Francisco. The San Francisco Municipal Transportation Agency and San Francisco Public Works are the two City agencies primarily responsible for maintaining and protecting the public right of way in the City and County of San Francisco (City). We write to request information about how yott intend to operate in San Francisco and to inform you that an exclusive right to operate a bike share program in the public right of way in the City has been granted to another company. In particular, in light of information about your business model that has come to our attention, we are concerned about whether your proposed business activities in San Francisco will comply with the City’s requirements for use of its right of way. In addition, we are concerned that it conflicts with the existing exclusive right the City has granted to another company for a bike share program, under a contract for a regional bike share program adopted by the Metropolitan Transportation Commission, While San Francisco actively promotes bieycle transportation and we would welcome the opportunity to learn more about your proposed operations, we want to make sure you familiarize yourself with San Francisco's requirements for use of its right of way and understand that San Francisco will actively enforce local laws protecting the City’s right of way. First, we request that you provide us with your business plan for operations in San Francisco. That plan must include, but not be limited to: how you intend to use our public right of way: sidewalks, plazas and any other public spaces and assets for your shared bicycle business; where bicycles will be located in the public right of way, including for pick-up and drop-off by users: any use of bike racks or other existing infrastructure in the public right of way; any installation of new infrastructure in the public right of way; any plan to redistribute bieycles in the event of an over- concentration in one area; the customers you plan to target; the number of bicycles you intend to introduce to the City; how bicycles are secured if placed in the public right of way; and how you plan to maintain the bicycles in safe working order. Second, the City expects businesses to conduct their operations in compliance with local law by making sure that they understand and will meet all those requirements and will obtain all required permits, before they begin their operations. To the extent that your shared bicycles will occupy the 1 South Van Ness Avenue 7th Floor, San Francisco, CA $4103 416.701.4500 www simta.comGang Li 2 January 16,2017 public right of way, we require they do so in compliance with local law and in a manner that does not constitute a public nuisance or public safety hazard. For example, San Francisco Public Works Code section 723 provides that itis “unlawful ... to pile, cap or otherwise obstruct any street, lane, alley, place or court, or any portion thereof” without permission from Public Works. We will not tolerate any business model that results in obstruction of the public right of way or poses a safety hazard. Thitd, if your company intends to install infrastructure in the public right of way, the City requires that your company obtain any and all appropriate permits in advance of installation. Fourth, we presume that you are aware that a City business registration is required to conduct a business.! We request that you provide us a copy of this business registration. Finally, the City has entered into a contractual agreement with the Metropolitan Transportation Commission, Bay Area Motivate, LLC, and other Bay Area cities granting Bay Area Motivate, LLC an exclusive right to operate a bike share program in the public right of way in the City and in other participating cities for a 10 year term, The relevant part of that contract provides: 32.1 Exclusive Rights and Exceptions. The Participating Cities hereby grant to Operator the exclusive right to operate a bike share program in the public rights-of-way in the Participating Cities during the Term, with the exception of (i) non-automated non-selfservice (i.e. renting a bike requires direct in- person human interaction) bike rental operations, (ii) electric scooter sharing program, and (ii) automated (i... renting a bike requires no direct in-person human interaction) roundtrip bike share operations (ie., where the renter is required to return the bike to the same location from which it was rented), You need to ensure that your business operations would not conflict with this provision. If your business operations violate this contractual right, the City may withhold any required permits and your company may by subject to legal action. Since we understand that your company plans to deploy bikes in the immediete future, we request that you notify us regarding the date your company plans to commence business operations in the City and respond to this letter by January 31, 2017. We look forward to your response. incerely, z Edward D. Reiskin ‘Mohammed Nuru Director of Transportation Director of Public Works San Francisco Mu ipal Transportation Agency San Francisco Public Works Thay sfireasurer.orgiregistration