Translink Public Bike System Report - Executive Summary

PUBLIC BIKE SYSTEM – FEASIBILITY STUDY

TransLink Public Bike System Feasibility Study

PBS Feasibility Study March 2008 Quay Communications Inc

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Public Bike Study

FOREWORD

cover page photo credit - Bicing, Barcelona by photographer vdbdc

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EXECUTIVE SUMMARY

Executive Summary The purpose of this study is to evaluate the feasibility of a Public Bicycle System (PBS) for Metro Vancouver, review the range of possible financing and administrative models, provide an assessment of the potential costs, and recommend a business strategy. Ultimately, this study concludes that PBS delivers significant real benefits and is feasible in parts of Metro Vancouver where residential and employment densities are high, land uses are diverse, and good cycling facilities are available. The study recommends that PBS be positioned as part of the public transit network and that TransLink should be responsible for its delivery in the same way that it owns, plans, and funds other transit services.

Background A typical PBS consists of a fleet of bicycles, a network of automated docking stations to store and access the bicycles, a user registration system, a system status information system, a maintenance program and a bicycle redistribution mechanism. Existing systems are funded by a mix of subscription revenues and general public revenues, including revenues derived from the sale of advertising rights and parking charges. All existing systems are controlled by a public agency [municipality or transportation agency] but a number of operating models are in use ranging from completely contracted out services to in-house systems. Several major European cities, Paris, Barcelona, and Lyon in particular, have launched major Public Bicycle Systems that have redefined the perception and the potential of the bicycle as a mainstream public transit mode. These cities have been successful in introducing the bicycle as a core public transit mode specifically aimed at short trips under 5km. The German Rail Agency has introduced a similar system, Call a Bike, operated by its DB Rent division in six German cities to facilitate intercity travel and service customers at either end of rail trips. Table 1 Mainstream Public Bicycle Systems Paris Municipal JCDecaux

Agency Operator Population # Bicycles # Residents/ Bicycle Operating Agency Funding

Lyon Municipal JCDecaux

Frankfurt Federal DBRent

2,153,600 20,600 104

Barcelona Municipal Clear Channel 1,605,600 3000* 535

466,400 3000** 155

652,600 720 906

Third-Party Contractor Subscriptions & Outdoor Advertising

Third-Party Contractor Subscriptions & Parking Revenues

Third-Party Contractor Subscriptions & Outdoor Advertising

State Railway Subscriptions & General Revenues

Montreal Regional Stationnement Montreal 1,039,500 2400 433

Vancouver TBD TBD

Regional Agency Subscriptions & Parking Revenues

TBD

578,000 3800 152

TBD

* increasing to 6000 in 2008 ** increasing to 4000 in 2008

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EXECUTIVE SUMMARY

Benefits Large scale PBS in Paris, Barcelona, and Lyon have been attracting the attention of transportation and sustainability professionals around the world. With up to 15% of the urban population subscribing to the service and uniformly positive customer satisfaction ratings, the systems are providing a fast, convenient and flexible transportation option for shorter distance trips and are achieving car trip reductions of up to 5%. PBS extends the reach and quality of the conventional transit system at a comparatively low cost especially in congested urban areas where the potential for conventional transit service improvements is constrained. By acting as a “door-opener” to increase the acceptance of cycling as an urban transportation mode, PBS also leads to significant increases in levels of private cycling. The ready availability, high visibility and low barriers to entry of PBS seem to trigger the same social change in transportation behaviour that brought recycling, once a fringe activity, into the mainstream. Bicycle trips are zero emission and cost effective, and a streetscape peopled with a mix of pedestrians, cyclists and fewer, slower vehicles is both less stressful and more liveable than a busy auto-only arterial. The PBS-driven increase in cyclists has the effect of making cycling safer for everyone, even as the systems increase the numbers of bicycles on the streets tenfold, incident counts have remained stable. PBS provides good ‘green collar’ jobs, including manual and semiskilled positions. In some locations these positions are used in support of job re-entry or other social programs.

Feasibility PBS feasibility is affected by both environmental circumstances and system design. In order to optimize uptake, PBS requires an environment where many short and medium length trips currently occur or could occur. These areas are distinguished by high population and employment densities and a diverse mix of land uses. The environment also needs to be sufficiently bikeable, as determined by the quality of the cycling network, the steepness of local topography and local climate. Based on an analysis of these indicators, multiple neighbourhoods in Metro Vancouver are considered strong candidates for a successful PBS. Ratings by characteristic are shown for some of them in the following table: Table 2 Assessment of Metro Vancouver Areas Metro Vancouver Richmond Town Centre Lonsdale Quay JoyceCollingwood Metrotown Edmonds New Westminster

Population Density High High

Demographics High Medium

Employment Density Very High Very High

Cycling Mode Split High Medium

Transit Mode Split Very High High

High High

Medium Medium

Medium Medium

Medium Low

Very High High

High High High

Medium Medium Medium

Very High High High

Low Low Medium

Very High High High

In terms of system design, a viable PBS requires a network area of sufficient size and density. The network area should be large enough to capture many origins and destinations. For Metro Quay Communications Inc.

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EXECUTIVE SUMMARY

Vancouver, the downtown peninsula is the minimum recommended start-up area while the extended Metropolitan Core is the preferred recommended start-up area, see figure 1. Ideal density is 300 meter spacing between docking stations. The station locations must be prominent and visible, equipment must be suitable for high volume self-service use in the public domain and the fare structure should optimize use by offering the first half-hour free. Best practice emphasizes the need to launch a system with sufficient initial density to ensure its success.

Figure 1 Possible Phase 1 Network Areas ($ millions) Scenario 1 [Minimum]

# Bicycles: # Docking Stations: Capital Cost: Total Expenses: Total Revenues: Operating Deficit: Revenue/Cost Ratio:

1,000 70 $5-10 $3-5 $1.5-2.5 $1.5-2.5 50%

Scenario 2

# Bicycles: # Docking Stations: Capital Cost: Total Expenses: Total Revenues: Operating Deficit: Revenue/Cost Ratio:

Scenario 3 [Preferred]

2,700 180 $13-24.5 $5-10 $3.5-6.5 $2-3.5 65%

# Bicycles: # Docking Stations: Capital Cost: Total Expenses: Total Revenues: Operating Deficit: Revenue/Cost Ratio:

3,800 250 $18.5-34.5 $7-12 $5-9 $2-4 70%

Costs There are four major cost areas in a PBS: 1. direct capital costs for procuring and installing the system [bicycles and terminals]; 2. direct operating costs for running the system; 3. associated capital costs for building cycling infrastructure and needed streetscape improvements [lanes and docking station areas]; 4. associated operating costs for maintaining the on-road cycling and docking station infrastructure The preferred network area for phase 1 (Scenario 3 in Figure 1) calls for 250 stations and 3,800 bicycles, with stations placed every 300m. This configuration is forecast to provide between 5 million – 10 million trips per year and direct capital costs are estimated at $18.5- $34.5 million. Direct annual expenses are estimated at $7-$12 million with an estimated $5-$9 million recovered in direct system revenues. User fees are projected to recover up to 70% of operating costs so that the annual operating deficit would be $2-$4 million. Quay Communications Inc.

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EXECUTIVE SUMMARY

Associated capital costs for PBS fall into two categories: improved on-street bicycle facilities and; and docking station streetscape improvements. Given the breadth of benefits associated with a PBS scheme four-way funding for these associated capital costs should be pursued, including federal, provincial, regional and local sources. Host municipalities should be responsible for the local share, not to exceed 50% of the cost for infrastructure improvement in their area. The target bicycle network density for the PBS service area is 2 km/km2 or greater. Infrastructure costs for grade separated cycle lanes are estimated at $1.25 - $1.5 million/km and approximately $500,000/km for painted lines and periodic curb bulges.

Operating Models There are a number of operating and financing models for PBS currently in use. The recommended structure for a Metro Vancouver system would see TransLink take ownership of the PBS service with operations to be provided by a contract operator reporting to a new or existing TransLink operating subsidiary. It is particularly important that TransLink be the owner to ensure a consistent standard of service and inter-operability across Metro Vancouver. A contract operator is recommended as the main activities of the new company will include procurement and maintenance of a fleet of equipment unfamiliar to any of the existing subsidiaries, a significant emphasis on technology (for the backend system) and, should implementation be desired prior to the 2010 Games, an accelerated implementation schedule. Implementation of PBS may be the impetus to structure a new TransLink subsidiary focused on the delivery of services within the Transportation Demand Management (TDM) scope. Insurance should be carried by TransLink using the authority’s self-insurance scheme. Successful implementation and ongoing operation of the PBS will require active municipal partnerships for tasks such as enhancing and maintaining cycling infrastructure, selecting docking station sites, making the requisite public right of way available at no cost and facilitating the construction of docking stations (e.g. permitting). A strong financial commitment by municipal partners will ensure active partnership in these equally crucial non-financial aspects. In consideration of the considerable local benefits accruing to host municipalities, including the provision of a fare structure where the first 30 minutes are free host municipalities would be required to provide at no cost to TransLink, 6m of on-street, sidewalk or other public realm space [in highly visible locations and adjacent to all major trip generators/attractors] every 300m within their PBS network region. This is estimated to total 12,860m2 in the Metropolitan Core. Host municipalities may elect to offset any resultant losses in parking revenues through any funding mechanism at their disposal including general revenues, outdoor advertising revenues etc.

Financing Models Various models were considered in the development of this report and are discussed in detail in the Business Strategy. Based on the deliberations of the Bicycle Working Group the following recommendations have been adopted. Capital funding for the new system should be contained within TransLink’s annual capital plan – including fleet procurement, station design and build, maintenance facilities, service vehicles and IT

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EXECUTIVE SUMMARY

systems; but excluding on-street cycling facilities and docking station streetscape improvement costs. Application for infrastructure funding should be made to the federal Ministry of Transportation, the provincial Cycling Infrastructure Partnerships Program, the Federation of Canadian Municipalities Green Municipal Fund and any other relevant funding programs. Operating costs should be included within TransLink’s annual operating plan, in the case of a Metropolitan Core PBS with 3540 bicycles and 235 stations, and based on a medium use scenario, system revenues are estimated to reach $6.4 million with annual operating costs of $7.6 to $10.3 million. Based on these assumptions the annual operating requirement could range from $1.2 to $3.9 million. Figure 2 Recommended Operating & Finance Model

Fare Structure The PBS fare structure is intended to encourage frequent short-term use by having a low annual registration fee and making the first 30 minutes free. Longer duration use is discouraged by the rapidly escalating rates for additional half-hours which also make it more attractive to rent a bicycle for half a day from an existing bicycle rental business. The 30 minute free feature is strongly correlated to system uptake, such that even a special 30 minute fare of $1 would negatively impact use and reduce the benefits to individuals, the host municipality, TransLink and the environment that the program is intended to generate.

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EXECUTIVE SUMMARY

Table 3 Proposed Fare Structure for Metro Vancouver Public Bicycle System Registration 1st 30 minutes 2nd 30 minutes 3rd 30 minutes Each additional hour Deposit/Caution

Tariff $50/year, $10/week, $2/day Free $1.50 $3.00 $4.50 $250.00

Advertising Rights It is not recommended that Metro Vancouver PBS Operating Contracts be packaged with advertising rights; however respondents to any future RFP should be given the opportunity to indicate how they might generate funding in support of their proposal – including recommending schemes that include advertising rights. It will be up to the host municipality to judge if the advertising proposals are acceptable, and all advertising revenues from municipal owned locations would flow to the municipality. Advertising on the bicycles themselves would fall under the Transit Advertising contract currently in place between TransLink and Lamar Advertising. Revenue from bicycle advertising or a sponsorship program would be to TransLink’s account.

Conclusion Metro Vancouver is considered one of the most liveable cities in the world and has a world-class transportation system. The topography and density of selected neighbourhoods make them strong candidates for public bicycle systems – caution must be used in predicting North American behaviour based on European experience but the indicators suggest that results here will mirror other PBS. By improving mobility options, increasing cycling activity and reducing automobile travel, PBS can help achieve a variety of planning objectives, including congestion reduction, road and parking cost savings, consumer savings, improved transport for non-drivers, energy conservation, emission reductions, and improved public fitness and health. PBS support local economic development and help create a city that is better prepared for a future in which fuel prices rise and urban populations increase. This study concludes that a PBS would be a meaningful addition to the current mix of public transit services in Metro Vancouver and has real potential to make a cost-effective contribution to the overall sustainability and quality of life in the region.

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March 2008

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