Glasgow City Council

Executive Committee

Report by Councillor Alistair Watson, Executive Member forSustainability and Transport

Contact: Brian Devlin Ext: 79100

Introduction of a Mass Automated Cycle Hire (M.A.C.H) Scheme in Glasgow

Purpose of Report:

To advise Committee of the progress made on the proposals to introduce a MassAutomated Cycle Hire (M.A.C.H) Scheme in Glasgow and obtain approval of thefunding to implement the scheme.

Recommendations:

It is recommended that the Committee:-

? Notes the contents of this report and approves funding of 586,000 over a3 year period to progress the scheme.

? Instructs the LES Executive Director to liaise with all possible stakeholdersto potentially reduce the Councils financial contribution and to assist withthe potential for future expansion.

Ward No(s):

Local member(s) advised: Yes ? No ?

Citywide: ?

consulted: Yes? No ?

Item 510th October 2013

21. Background to Mass Automated Cycle Hire (M.A.C.H) Scheme

1.1. It has been a long term ambition of the Council to introduce a MassAutomated Cycle Hire Scheme (MACH) in Glasgow. Such a scheme alignswith the cycling objective within the Councils Local Transport Strategy (LTS)to promote healthy and environmentally sustainable methods of transportthat minimise harmful emissions and energy consumption including thosethat involve physical activity.

1.2. Following on from the LTS Glasgows Strategic Plan for Cycling 2010 2020 has been developed and was launched at the Cycling Scotland annualnational cycling conference in November 2011. The headline aspiration ofthe Plan is that Cycling will be the biggest participation activity in the city by2020 and evolved from the Cycling Action Plan for Scotland 2010, whichstates by 2020, 10% of every day journeys taken in Scotland will be bybike.

1.3. Well known, high profile examples of such cycle hire schemes exist inLondon, Paris and other European cities. In 2009 an initial study found aviable MACH scheme in Glasgow to be undeliverable within the fundingavailable (200k).

1.4. However, the market has since developed. New smaller scale andadaptable models have been introduced or are currently being developed inseveral UK and European cities, using simpler bike infrastructure and newdocking technology making implementation simpler.

2. Feasibility Study

2.1. In autumn 2012, in view of the upcoming Commonwealth Games in 2014and an increased volume of requests from elected members, cycle charities,cycle pressure groups and the general public, it was decided to revisit thepossibility of a MACH scheme in Glasgow.

A feasibility study sought to:-

? Review existing UK, European and worldwide MACH schemes? Carry out a stakeholder consultation/workshop? Make initial recommendations on whether a scheme could be

introduced in Glasgow and which possible scheme variants were mostsuitable

2.2. There are over 300 cycle hire schemes in operation around the world withthe vast majority established since the year 2000. Under the feasibilitystudy, a review of 24 of these schemes was conducted, including detailedinterviews with the City sponsors or operators of 10 schemes. Eachbusiness model reviewed was scaled for an equivalent scheme in Glasgowin terms of bike numbers and Capital / Revenue costs.

2.3. The study was supported by an LES led stakeholder workshop held inDecember 2012, which was attended by GCC LES Project Management

3and Traffic Operations staff, SPT, Glasgow Chamber of Commerce,Glasgow University, Cycling Scotland and NHS Greater Glasgow. Theworkshop looked at each MACH business model/scheme in detail andwhether it could be realistically introduced in Glasgow as well as timescalesfor implementation.

2.4. Specific attention was given to the capital and revenue costs of such ascheme in Glasgow, any staff costs, possible sources of revenue fromadvertising and sponsorship from both public and private sectors as well asincome from bike user fees.

3. Feasibility Study Conclusions and Recommendations

3.1. From the various options considered, the study recommended a schemewith low technology & infrastructure needs, which could be adapted withdeveloping technologies and delivered at a small to medium scale.

This solution is deemed to be the most deliverable, scalable option, withfewest barriers to success and has the following key elements:-

? Flexible docking station, which uses standard cycle racks rather thanthe installation of bespoke fixed docking stations requiring electricalpower, civil engineering works and planning consents,

? Implementation timescales are such that an initial cycle hire scheme of150 cycles / 30 cycle stations can be rolled out prior to the 2014Commonwealth Games with expansion to 400 cycles post the Games,

? Hiring of the cycles is user friendly and the operation of the scheme ismore efficient through the use of tried and trusted technology, such asmobile phones.

? The study estimated that a total investment of 1.35M for 400 cycles /30 stations would be required, for a 3 year period, which includes theinitial Capital cost of starting the scheme and 3 years of revenuesupport to run the scheme (note that it is deemed good practice to runa scheme for 3 years to provide a platform for success).

3.2. The study highlighted that historically, schemes require a lot of earlyfinancial commitment and backing to succeed and that schemes can fail dueto lack of visibility of the cycles i.e lack of numbers on the ground.

4. Wider Cycling Initiatives

4.1. The introduction of a MACH scheme would support the aspirations of bothSustainable Glasgow and the Active Travel theme of the TechnologyStrategy Board (TSB) Future Cities project. In addition it would contribute tomeeting many of the aims of both the Councils Local Transport Strategyand the Strategic Plan for Cycling 2010 2020, by promoting a healthy andenvironmentally sustainable method of transport that minimises harmfulemissions and energy consumption. There are obvious health improvementbenefits by people cycling over the long term, as well as benefits to thewider public sector, in relation to having a more healthy population.

44.2. The introduction of the MACH scheme would further build on over 13m ofmajor improvements to walking / cycling infrastructure that the Council hasdelivered over the last few years and will deliver through the forthcomingyear. These include:-

? Smarter Choices improvements to walking / cycling routes from theCity Centre to the Games Village, Commonwealth Arena and ParkheadForge (including a dedicated cycle way from Bridgeton Cross to theCommonwealth Arena).

? Connect 2 - a dedicated cycle route from the SECC and Kelvingroveacross the Bridge to Nowhere over the M8 to the city centre.

? Improvements to the National Cycle Route, through the followingProjects:-

? Walking / Cycling link from SECC to Riverside Museum,? Kelvin Walkway / Eldon Street Underpass,? Custom House, Anderston & Lancefield Quays,? Bells Bridge refurbishment,

? Langlands Path a walking and cycle route that improves accessibilityto and from Govan town centre,

? Over 100 cycle racks have been installed each year, greatly increasingsecure cycle storage facilities throughout the City.

4.3. The Council is also involved in numerous events in order to promote cyclingas a sustainable travel option. These include taking part in EuropeanMobility Week and Bike to Work Week, as well as ensuring there is apromotional presence at numerous community events throughout the city.Additional promotion of the MACH scheme would be undertaken at theseevents.

4.4. The above measures and promotional activity has contributed to a 130%increase in cyclists travelling into the city centre over the last 5 years.

5. Recent Tender Process

5.1. An EU competitive tender for delivery of a Cycle Hire scheme wascompleted on 16th Sep 2013 and 7 tenders were assessed. The preferredbidder operates 15,000 bikes over 10 countries in 80 cities e.g. Nurnberg,Warsaw, Leipzig, Dubai and Christchurch.

5.2. The preferred bidder had the top Quality score and was the MostEconomically Advantageous Tender, requiring 401k funding from theCouncil over 3 years to cover both Capital and Revenue costs.

6. Further Cost Information

6.1. Other costs totaling 185k to implement the scheme relate to the delivery ofinfrastructure surrounding the supply and installation of the 30no. MACHStations on the ground (circa 65k) and a requirement for a Council staff

5member to liaise with the Service Provider to monitor and safeguard theCouncils investment (circa 120k i.e. 40k over 3 years).

6.2. The total Capital & Revenue investment costs highlighted above equate to586k over the 3 years compared to the cost estimated by the feasibilitystudy of 1.35M, which is seen as testament that a well established companyis keen to introduce new locations within the United Kingdom.

6.3. To protect any Council investment, there is a claw-back clause within theMACH Services Contract Agreement, which will allow the Council to recoupmonies provided if the Service Provider decides to walk away or fails todeliver on the Councils Key Performance Indicators (KPIs) for the scheme.

7. The Way Forward

7.1. The Committee is requested to approve the Capital & Revenue funding toimplement the MACH scheme over a 3 year period with the possibility ofextending the contract by two 1 year extensions.

7.2. The preferred bidders implementation schedule identifies 1st May 2014 asthe go-live date for Phase 1 - 150 bikes to 30 MACH Stations with thescheme expanding to 400 bikes in Sep 2014.

7.3. It is proposed that Glasgow City Council funds the scheme in the firstinstance and then seeks other stakeholders to participate in the scheme toreduce the Councils financial content and to assist with the potential forfuture expansions. This could possibly include linkages with the newSouthern General Hospital. To ensure delivery of this innovative schemethe Council needs to make this financial commitment now and thereafterseek 3rd party funding.

7.4. Assuming Committee approves the funding, LES Officers will work with thepreferred bidder and stakeholders to identify where the docking stationsshould be located. The Appendices to this report contain outline informationon this aspect, together with details of the operation of the proposed system.

8. Council Strategic Plan Implications

Economic Impact: NoneSustainability: Introduction of a MACH scheme contributes to

Glasgows sustainability transport targets.

Financial: Total investment of 586,000 for 400 cycles / 30stations, for a 3 year period. This consists of 466kcapital costs and 120k revenue costs over the 3 yearperiod. The council has made financial provision for thissum.

Legal: None.

Personnel: None.

6Sustainable Procurementand Article 19:

Any works procured through this scheme will beundertaken through GCCs procurement section.

9. Recommendations:

It is recommended that the Committee:-

9.1. Notes the contents of this report and approves funding of 586,000 over a 3year period to progress the scheme.

9.2. Instructs the LES Executive Director to liaise with all possible stakeholders topotentially reduce the Councils financial contribution and to assist with thepotential for future expansion.

BRIAN DEVLINEXECUTIVE DIRECTOR

LAND & ENVIRONMENTAL SERVICES10 October 2013