Big storage bill possible,
But city taxpayers could still face a $130,000 bill just for bike storage
Hamilton’s popular bike sharing program will go dark June 1 after city council rejected a $400,000 stopgap proposal to keep bicycles rolling through the rest of 2020.
But infuriated SoBi Hamilton supporters say taxpayers now face a bill of $130,000 just to “mothball” the 900 bikes in storage — without giving anyone a chance to ride them amid a COVID-19 pandemic that has restricted bus travel.
The debate was spurred by a surprise decision by Uber to bail early on its bike share operating contract with the city June 1. Council argued into the wee hours Thursday over a pitch to temporarily save SoBi with ward infrastructure cash offered by three lower-city councillors — but the idea died on a rare 8-8 tie vote.
A non-profit that used to run SoBi under subcontract, Hamilton Bike Share Inc., wrote a letter Thursday urging Uber to hand back the contract — as well as $50,000 a month in operating aid. If that request doesn’t fly, the group will try to fundraise $400,000 to keep the network alive, said Chelsea Cox.
In the meantime, SoBi bikes will likely be taken off the road next week — around the same time the city presents a pandemic “mobility plan” to council that is expected to highlight new measures to encourage cycling.
“It is poor leadership in a pandemic to shut these bikes into storage, stranding thousands, when cycling is recommended as a safe way to move around cities,” said Coun. Nrinder Nann, who argued unsuccessfully at council the city had an obligation to the 26,500 residents who pay to use the network.
The cost of collecting, disassembling and storing the bikes after June 1 was mostly discussed in private because it is part of a legal claim against Uber. But several councillors confirmed $130,000 as one estimate for a year of storage.
Coun. Chad Collins said he viewed that amount as the upset limit, arguing the city could cut storage costs to closer to $15,000 if it uses a pandemicemptied city facility to eliminate rental fees.
He called that the “fiscally responsible” option for a city facing a $60-million COVID-19 deficit, noting the city can still search for a new SoBi operator.
“The focus is to make sure the bikes are safe from theft and other damage while we determine if another operator can be found to run (the bike share network) at no cost to the city,” he said.
By contrast, an upset Coun. John-Paul Danko called $130,000 the “lowball” storage estimate, adding staff explained the high-tech bikes need special care for their batteries and computer brains if the city wants to maintain their value.
“In the end, I would not be surprised to find it cost us just as much to mothball the bikes as it would have to save the program,” said Danko, who went online Thursday to accuse half his fellow councillors of killing the bike share program “out of pure spite.”
Other financial questions about bike share remain unanswered.
The city could pursue Uber in court for breach of contract, but council did not reveal Thursday if that is the plan.
SoBi hubs and bicycles were in the middle of an upgrade funded by a $1.3-million provincial grant. The city has spent $575,000 so far and “committed” another $361,000. It’s still unclear if more money will be spent on the bikes and whether Hamilton is required to return unused funds to Ontario.
Who refunds annual or monthly membership fees for SoBi members? The city says Uber-owned Social Bicycles, the contracted operator, is responsible for any refunds. But city lawyers also acknowledged that fact will not necessarily stop upset members from trying to seek compensation from the municipality, which owns the bikes.
Fans of the bike share system — including the head of Hamilton’s chamber of commerce — piled on with criticism for the city Thursday.
“Was sad to wake up to this, but can’t say that I’m surprised by this disgraceful power display,” tweeted chamber president Keanin Loomis. “Just when you thought things couldn’t sink any lower.”
Around 7,000 people signed an online petition urging the city to step in and save SoBi ahead of council’s vote.
Dozens of people also shared #SoBiStories on Twitter at the urging of Cycle Hamilton.
Architect Kyle Slote called the bike share network a “gamechanger” for getting around town. “What started as a quick way to get to the office has turned into my primary mode of transportation, recreation and exercise. Nearly broke (3,000) km last year,” he wrote.