Monthly Archives: May 2011

BIXI CLEARS UP MISCONCEPTIONS

WWCA is very happy to see BIXI in Westmount as a move to encourage cycling here.  Unfortunately there has been a lot of criticism of BIXI lately.  The following letter is a response by BIXI to its members and users.

BIXI. Establishing the facts.
Letter to members and BIXI users
In the past days, much has been said about BIXI that does not correspond to the reality. Therefore it seems essential to restore the facts, particularly now that the plan proposed by the City was finally well-received by the Ministry of Municipal Affairs after more than five months of delay and waiting. The following serves as a clarification regarding some of the allegations which have been circulating in the media.
“BIXI is a financial disaster and is not profitable”: FALSE. BIXI experienced a liquidity problem which was the direct result of a five-month wait for the approval by the Municipal Affairs Minister of its agreement with the City of Montreal. BIXI is a company which experienced rapid growth and realized, after only 2 years, volumes of some $50 million. BIXI also posted results that were 40% greater than the projected budget, thanks in large part to the successful expansion of its system internationally. BIXI does not have a profitability problem nor is BIXI a financial disaster in any way.
“The Montreal operation of BIXI is not profitable”: TRUE. From the beginning, the business plan projected that the Montreal operation of the system would not derive profits in the first years of operation. The plan also indicated that operational costs would be covered once BIXI reached 50,000 members and with the involvement of sponsorship. Proud of the 30,000 members at the end of 2010, we have currently exceeded the level of 40,000 members after only one month of operation in our new 2011 season.
“Montreal is absorbing the BIXI debt”: FALSE. The City gives no money to BIXI. Montreal advanced a loan to BIXI. The initial loan to BIXI in the amount of $37 million is repayable with interest. This loan was accorded to cover conceptualization costs of the system, the patents, the manufacturing and delivery of the components (bikes and stations), the operation losses of the first years as well as the start up costs. This loan is presently owed to Stationnement de Montréal.
“The city is giving $108 million to BIXI”: FALSE. Let us take the time to properly understand the numbers that make up the whole.
$37 million : this amount is a loan to BIXI repayable with interest. The remaining $71 million, guaranteed by the City of Montreal, is comprised of a financing package negotiated with the National Bank subsequent to a tender notice.

It consists of a revolving line of credit of $6 million, as is standard for all businesses; a letter of credit facility up to $5 million for deposit guarantees for all public offerings which is a standard practice with the guarantees rescinded after the process.

factoring facility up to $60 million offered by the Bank to finance accounts receivable which allows for the necessary liquidity to pay our suppliers while waiting for the cities with whom we do business to effect the payment of our invoices. This facility can only be used when a contract is signed by a city in good and due form.

“Montrealers are financing the export of the BIXI system to other markets”: FALSE. It is, in fact, the contrary. Montrealers fully benefit from the export of the BIXI system to other markets. Last year, it is the successes of the sales of BIXI ($8.5 million) on the international scale that covered the operational deficit of Montreal ($7 million). In this way, we were able to achieve a surplus of $1.5 million and offer a quality system to Montrealers.
“We have a luxurious bike costing $7,400 compared to Barcelona with a bike costing $75”: FALSE. BIXI does not cost $7,000, no more than it costs $3,500, heard on television. The Barcelona bike does not cost $75. The Barcelona bike costs more than 600 €, basically the same cost of our bike. How could we sell with such success on three continents if the bike costs so much? The Montreal bike is likely the most solid and best conceived bike in the world. Its reliability is greater than the bikes currently used in other cities.
“BIXI employs 450 people”: FALSE. . BIXI employs 50 people and has created more than 400 employees at different suppliers everywhere in the region for the manufacturing of the diverse components of the system.
Our business plan is clear. It has been presented publically. We remain in line with the business plan and once again count on respecting these objectives again this year. The plan outlines clearly that the system will cost nothing to Montrealers. This is our commitment.
By Roger Plamondon, Chairman of the Board of Directors, Public Bike System Company


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WWCA TAKES POSITION ON “DOORING” OF CYCLIST

The WWCA’s position on “dooring” is that cyclists must have safe passage.  This means that there must be room for the cyclist to be able to ride without the risk of hitting the door of a car.  Fining drivers might help but it is not the answer.  The WWCA believes that helmets  are important but usually when the accident is between a car and cyclist, the helmet will not help greatly.  There must be more bike paths in the city along with buffer zones to prevent the terrible accident that happened here in Montreal.  Until these paths are built, both cyclists and drivers must be aware of each other and be cautious when driving.

BIXI ARRIVES IN WESTMOUNT

Mayor Peter Trent officially opened the BIXI station on de Maisonneuve Blvd and Greene Ave today.  It is one of five stations in Westmount. The Mayor pointed out that Westmount is the first city outside Montreal to have BIXI’s.  The event was well attended by councillors and citizens.  The Westmount Walking and Cycling Association had several members in attendance.  A happy day for the Association because it has lobbied for BIXI for a long time.

QUESTIONS FROM WWCA TO WESTMOUNT CITY COUNCIL AT APRIL 4, 2011 MEETING

Members of the WWCA asked five questions at the last council meeting.  These topics (question number beside them) were the Master Traffic Plan (2), improvements to Glen bike path(7), MUHC active transport entrance(10), Bixi(11), and poll on cycling(12).  These questions and their answers can be read on Westmount Watch. There is an additional feature now on Westmount Watch.  With each question is the audio version of it.  You can decide whether to listen to the question and answers, or hear them or both.

http://westmountwatch.org/2011/04/question-period-notes-4-april-2011