Last Chance for Feedback on the Illinois Bike Transportation Plan

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Permalink Reply by Reboot Oxnard on November 23, 2013 at 6:40am

This is a really good question. Alta Planning + Design is essentially Michael Jones, a Canadian cycling enthusiast and businessman. From their website:

Founder Michael Jones built up a large portfolio of bicycle and trail master plans working as a planner. A lifelong skier and cyclist, Michael decided to form his own company dedicated exclusively to bicycle, pedestrian, and trail planning and design in 1996.

Once the plan has been created, Alta Bicycle Share (a second company, also controlled by Michael Jones) steps in and assumes management control of the implementation of the plan, which we in Chicago know as Divvy. Even in the best light, this is dangerously close to corporate rent-seeking; there have been allegations that the arrangement is intended to serve the interests of the companies more than the public.

In a related development, Bixi and it's parent firm, PBSC Urban Solutions, Canadian companies that provide the bikes and and racks that are the visible components of the Divvy system, have apparently collapsed and ceased operations after years of financial and legal problems. Even their websites appear to have all been shut down within the past couple of weeks.

clp said:

Hi Craig!   Great!   But who/what is Alta Planning + Design, and how are you involved in the IDOT planning process? 

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Permalink Reply by Reboot Oxnard on November 23, 2013 at 11:18am

You've got a fair point - weather forces the closure of the bike system every year in Montreal. Winters must be really rough there, if that's what forced Bixi to shut it's websites down, too.

At the tag end of October, Bixi rejected a multi-million dollar bailout deal from Toronto. There was supposed to be a Toronto meeting on Nov 13 to see if an alternative plan could be arranged that would keep them afloat - no word on that meeting - but the Mayor and several other politicians there have stated that they will not support any more bailout money and expect the company to fail.

Bixi was due to file it's 2012 annual report in March 2013, it has failed to do so as of November. In September, the Auditor in Montreal said he had seen preliminary numbers and didn't see how Bixi could continue operations. He, too, was supposed to have a meeting last week with Bixi to discuss their fate; public sentiment in Montreal clearly supports Bixi but not the tens of millions of dollars (most recently CA$108 million in 2011) they have been pouring into the company to keep it afloat. The Montreal transportation minister has said he doesn't see the city providing any additional funds to Bixi.

I haven't seen anything that says they have actually filed for bankruptcy but there is also no indication that they are functioning at any level and it's clear that without massive cash infusions they will not be able to resume operations in the Spring.

What's really depressing about this is that the problem appears to be at least partially related to too much growth, particularly the contracts that Alta has signed in the US. There are reports that a number of US cities have not yet paid for bike systems they acquired and that is creating a cash flow problem. At the same time, after five years of operations, ridership/membership in Montreal is insufficient for the firm to be self-supporting, as it was supposed to be, so there are serious structural faults, as well.

Jeff Schneider said:

Bixi has ceased operations - for the winter, as they always do.  I didn't see anything in the linked articles indicating a permanent closure.  There is a lot to read online about their troubled finances,  but it seems the city of Montreal wants to keep it going.

Reboot Oxnard said:

This is a really good question. Alta Planning + Design is essentially Michael Jones, a Canadian cycling enthusiast and businessman. From their website:

Founder Michael Jones built up a large portfolio of bicycle and trail master plans working as a planner. A lifelong skier and cyclist, Michael decided to form his own company dedicated exclusively to bicycle, pedestrian, and trail planning and design in 1996.

Once the plan has been created, Alta Bicycle Share (a second company, also controlled by Michael Jones) steps in and assumes management control of the implementation of the plan, which we in Chicago know as Divvy. Even in the best light, this is dangerously close to corporate rent-seeking; there have been allegations that the arrangement is intended to serve the interests of the companies more than the public.

In a related development, Bixi and it's parent firm, PBSC Urban Solutions, Canadian companies that provide the bikes and and racks that are the visible components of the Divvy system, have apparently collapsed and ceased operations after years of financial and legal problems. Even their websites appear to have all been shut down within the past couple of weeks.

clp said:

Hi Craig!   Great!   But who/what is Alta Planning + Design, and how are you involved in the IDOT planning process? 

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Permalink Reply by Anne Alt on November 23, 2013 at 11:39am

I guess you guys haven't heard that Toronto has worked out a deal to keep Bixi going there.

Here's more on the subject from the I Bike TO blog.

For additional info: Bixi in Toronto does stay open in winter, with short closures when there's significant snow and/or ice.

Montreal's Bixi program shuts down in winter.  More on Montreal's Bixi program.

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