Ooops, Dave did get his answer in . . . he was just late . . . and I went off to work!
Question: Sure, its cool but . . . is it a good idea to make a sole source deal with Trek to provide bike kiosks for the City of Madison at a cost of $300,000 ($100,000 from this year’s contingent reserve) to the taxpayer in this current economy? Should there have been an RFP, why or why not? Is it appropriate to use money from the contingent reserve?
The B-Cycle bike sharing program is an incredible opportunity for Madison. Bike sharing is a hallmark of a world class city – one where companies want to invest, locate or attract talented professionals. It represents the kinds of smart investments we can make now to ensure that we are a leader in the new economy. And, it supports a great local company that brings jobs to our region.
Trek is offering to make the $1.4 million investment to set up the program and will manage it. And, they do not expect to make any money off the program. In fact, at least for the first few years, they expect a financial loss. But, because they are located in the area and Madison is important to them, they want to try their product here, even if it means losing money. Trek has also agreed to open it’s financial books and if they do make a profit, it will be split evenly with the city.
In addition, because Trek is the only company in the country that not only offers the infrastructure for bike sharing, but also offers unique GPS technology, it is appropriate under city ordinance to do a sole source contract. That’s why it’s gained the approval of BOE and the Pedestrian Bicycle Motor Vehicle Commission.
This is the kind of thing that gives a city a competitive edge in the new economy. So much of our success in the new economy is about keeping Madison a progressive, green, and bike-friendly city. Few other places can offer this combination, and that’s exactly what will attract and retain talent. And it will reduce carbon emissions in Madison and help us reach out goal of increasing bike share to 20% by 2020.
The program will also have an immediate economic benefit. Local businesses will be more easily accessible for those who carpool or use public transit. Trek is creating jobs right here in Madison to service the B-Cycle system.
And let’s not forget, Trek is giving Madison an incredible deal for this one-of-a-kind system. It has enormous potential for our city, and I look forward to community input to determine locations and overall implementation of the system.
I think that there are a lot of questions about this deal that need to be answered.
1. Is this going to serve all of Madison or only the Isthmus (i.e. will I be able to rent a bike to my northside workplace from the east side)?
2. Will Trek be required to pay all of its employees (including those in foreign plants and subsidiaries in foreign plants) a living wage under the Madison Living Wage Ordinance? Almost all bikes (expect for custom racing jobs) are made in Asia (http://allanti.com/articles/where-was-my-bike-made-pg328.htm) including many of Trek’s brands. Will they guarantee a living wage for these workers?
Dave thinks Trek is so gracious for funding this project, but nobody’s talking about the huge advertising payday this will become for Trek. So don’t give me this “Oh but Trek is spending $1.4m of their own money…” They are getting tons of free, perpetual advertising in return.
“Trek has also agreed to open it’s financial books and if they do make a profit, it will be split evenly with the city.”
This is hilarious, but sadly this is how Dave thinks. If you think Trek (like many other companies) wouldn’t try to move profits from this venture to other areas of the balance sheet via tried and true accounting tricks, I have a bridge to sell you.
Former Alder Robbie Webber, a cycling expert, supports this.
Read all about it…
http://frontporchcoffeetalk.blogspot.com/2011/02/b-cycle-in-madison-lets-do-it.html#comments
She’s not crazy, or looking for conspiracy, she’s just being smart.
Brenda is smart too, well, most of the time… This one got ahead of her.
Why does no one ever mention that Trek is not GIVING Madison anything?? They are leasing their system to Madison for 3 years at $100K per year. At the end of the year we can bargain for a new lease, or Trek can take their kiosks and their bikes and say so long. If a new car rental agency sets up in town, do we say the rental agency is GIVING us all these cars??? Too late now. At least we got one railroad project in Madison.
Neil Heinen just agreed with you on the Channel 3 opinion that you don’t break the laws..even for a “cool” program…a question, is the reason to rush this due to high demand to use bikes right now? (I wish the weather made that the case!) Hmmm…does this create a precedent?