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INTERGOVERNMENTAL AGREEMENT — BIKE SHAR 6.1 . H. -Page 5 WHEREAS, on October 27, 2010, the MTC's Commissioners awarded the Air District $4.29 million in grant funds from its Climate Initiatives Program to administer a Regional Bicycle Share Pilot; WHEREAS, MTC will coordinate regional marketing of the Climate Initiatives Program working with its contractor and the parties, review key milestones and documents, and provide assistance with integration of an ongoing bike share program with 51 Lorg and with the Clipper system; WHEREAS, SFMTA has pledged $682,500 in local match, SAMTRANS has pledged $105,000 in local match, and VTA has pledged $500,000 in local match; WHEREAS, the parties wish to implement a Regional Bicycle Share Pilot (the "Project") in reliance upon the grant award to the Air District and upon the local matching fund commmitments; WHEREAS, the Air District is the lead agency for the Project and will execute the grant funding agreement with Caltrans; WHEREAS, the Air District will be responsible for ensuring that the Project complies with all applicable requirements of law and with grant funding documents. NOW, THEREFORE, the parties agree to work together to implement the Project as follows: 1. Purpose of Agreement The purpose of this agreement is to define an organizational structure for implementing the Project, to ratify the financial and logistical commitments that the parties have made to the Project, and to set forth basic policy directions for the Project. 2. Project Description, Purpose, and Funding The Project will deploy 1,000 bicycles at up to approximately 100 kiosk stations along the peninsula transportation corridor at locations in San Jose, Palo Alto, Mountain View, Redwood City and San Francisco. Its objective is to pilot zero - emissions bike - sharing strategically in downtown urban centers of varying sizes and population densities in close proximity to transit services located in Priority Development Areas (PDA) or other areas with high potential for use. This Project will demonstrate and test the potential to effectively reduce single- occupancy vehicle travel to transit stops by offering bicycles as a first - and last -mile transportation alternative, thereby reducing vehicle miles traveled and greenhouse gas emissions and improving local air quality. It will also work to test the viability of bicycling as a stand -alone anode of travel. The Project will provide bicycles for use by program members (e.g. memberships may be daily, weekly, and annual) from unattended stations, incentivizing short -term use (e.g. 30 minutes). The bicycles will be tamper and vandalism proof and will employ radio - frequency identification smartcards and wireless and intemet technologies to coordinate and track bicycle reservations, pick -up, drop -off, and subscriber information. This advanced technology system will track user demand and provide a mechanism to maintain a balanced distribution of bikes within each host community, and the desirable number of bikes and spare parking within each station. Information obtained via the technology portion of the program will be combined with surveys to calculate emissions reduced by the Project, its success in market penetration, its sustainability and its ability to be replicated or expanded. Although the Project launch date may be staggered, the pilot will operate for a minimum of twelve months within each host commmunity. The Project will be coordinated and administered by the Air District in partnership with cities, counties and transportation agencies. Among the outcomes of the Project, the Air District will research, test, and evaluate sustainable program financing models, including private - public Page 2 of 12