The program has been in the works for five years and will launch in early 2014 when 250 bikes will be distributed through 24 stations.
By the spring of 2014, 1,500 bikes will be distributed through 150 stations.
A company from Portland, Ore., will be the program's vendor, but the city is also expected to spend about $500,000 annually on maintenance to keep the program going.
Critics of the program have raised concerns about whether it's safe enough for casual users.
The city must also address a B.C. law that requires cyclists to use helmets. (CKNW/News 1130)
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