At its meeting tomorrow, Portland City Council is set to authorize the contract with Alta Bicycle Share for our forthcoming bike share system. In advance of that vote, the City has released new cost estimate numbers for the project.
Thanks to new numbers from Alta, we now have much more detailed estimates for both the launch and ongoing operational costs. According to Alta, it will cost $4,599,823 to launch the system (that’s up from initial estimates of about $3.8 – $4 million). Those launch costs break down into $2,589,323 for 75 stations, $827,250 for 750 bicycles and $1,183,250 to manage the launch.
Alta already has $1.8 million in hand for the launch thanks to a federal grant, so that leaves them with about $2.8 million they need to raise from private and corporate sponsorships.
As for the ongoing operations, Alta estimates it will cost $1,856,550 to operate bike share for the first year. $986,000 in projected user fees and $870,550 in sponsorships will pay for those first year operations. With inflation, operations costs are expected to rise each subsequent year and Alta estimates a total of $10,055,673 will be needed over five years.
While Alta continues to be scrutinized for delays in launching their New York City system, back in October she told BikePortland that, “we are hopeful for [the Portland launch] next Spring or Summer. As soon as we are able to negotiate a contract we’ll be working with our non-profit partner – Portland Bike Share Inc – to secure private sector system sponsors.”
For more info, see the City’s Portland Bike Share website.