Fiscal Note
This resolutions rescinds resolution RES-11-00106, which authorized a three-year contract with Trek Bicycle Corporation for a bicycle sharing program. Three annual payments of $100,000 were to be made by the City to Trek, and a sharing of profits with Trek over the lifetime of the contract was to occur. The new five-year contract authorized by this resolution provides for payments of $1 per year to Trek for each of the next five years, and eliminates the profit sharing provision. The $100,000 appropriated from the 2011 Contingent Reserve to the Parks Division will be restored to the Contingent Reserve, as follows:
GN01-54901-617150 ($100,000) Parks Division - Other Services General
GN01-57600-971000 $100,000 Contingent Reserve - Miscellaneous Direct Appropriations.
Title
Rescinding RES-11-00106 and Reauthorizing the Mayor and City Clerk to execute a five-year agreement with Trek Bicycle Corporation for the operation of a City-sponsored bicycle-sharing program in the City of Madison.
Body
WHEREAS, the City of Madison was approached by Trek Bicycle Corp. (“Trek”) who expressed an interest in providing a bicycle-sharing program in the City that would consist of the short-term rental of bicycles from kiosks located throughout the City, including on City property; and,
WHEREAS, this City-sponsored bicycle-sharing program was to be operated by Trek Retail Corporation (“Trek Retail”), a fully owned subsidiary of Trek, with the use of equipment manufactured and licensed by B-Cycle LLC (“B-Cycle”), another subsidiary of Trek, and provided for by an approximate $1.7 million investment by Trek;
WHEREAS, on February 1, 2011, the Common Council adopted RES-11-00106 (Legistar File No. 21106), authorizing the Mayor and City Clerk to enter into three-year agreement and lease with B-Cycle for the operation of the bicycle-sharing program, and also amending the 2011 Operating Budget by appropriating $100,000 from the Contingent Reserve to the Parks Division ...
Click here for full text