Agenda item

            The Director reminded the Committee that, at its meeting on 19th March, it had agreed to initiate a tendering exercise for the delivery of Phase 1 of the Belfast Public Bike Hire Scheme on the understanding that a that a further report would be submitted to the Committee’s meeting on 9th April which would outline the potential capital costs associated in extending the scope of the Scheme to include the Gaeltacht Quarter, the North Belfast Cultural Quarter and the Lower Newtownards Road. Accordingly, the Committee considered the undernoted report in this regard:

1.     The capital cost implications of the extension to the original network are summarised below:

2.1      The costs above have been derived from a research exercise which gathered estimated cost data for a number of existing schemes across the world and excludes the potential contribution to costs from advertising or sponsorship.

2.2      It should be noted that the linear extension of the network beyond the core city centre area will have additional revenue cost implications associated with the redistribution of the bikes. The experience from developed schemes highlights the importance of an integrated network to provide alternative drop off and pick up locations and to support natural redistribution through normal operations.

3         Resource Implications

3.1      The additional estimated resource implications for the capital costs for extending the scheme to the North, West and East of the city are outlined above.

3.2      There are ongoing revenue costs in relation to future operation which are not covered by the capital funding from DRD. The initial work carried out by the OBC estimated the revenue costs for the core network to be approximately £370,400 per annum. Any extension beyond the core network will result in additional revenue costs. There is currently no provision in the approved Departmental budget for additional expenditure for the proposed bike scheme and the actual capital and revenue costs can only be confirmed following the procurement of the different contracts.

4         Recommendations

4.1      The Committee is requested to consider the additional capital costs associated with the extended scheme and if appropriate request the SP&R Committee to consider the allocation of the additional resources required.

 4.2      Following completion of the first stage of the procurement process, further reports will be brought back to both the SP&R and Development Committees to inform the Investment Decision on the implementation of the scheme.

            During discussion, a Member made the point that it would be inadvisable for the Committee to agree to extend the scope of the scheme without having considered the full revenue costs associated with its upkeep and maintenance.  He pointed out that a business model for the operation of the original scheme had yet to be finalised and, therefore, the future financial implications for the Council were unknown.

            After discussion, it was

Moved by Councillor Webb,

Seconded by Alderman Ekin and

      Resolved - That the Committee agrees to recommend that the Strategic Policy and Resources Committee agrees to commence a procurement exercise for the scheme based on two options, viz., the first on the original proposal and the second to include the extension of the scheme to the Royal Victoria Hospital, the Gaeltacht Quarter, the Crumlin Road Gaol and the Holywood Arches. It notes also that, in the interim period, the Director would liaise with the Public Health Agency and The Queen’s University of Belfast to establish if those bodies would be willing to make a financial contribution towards the scheme.