Raleigh delays vote on proposed BikeShare program

City leaders aren’t ready to take a proposed bike rental program for a spin.

The Raleigh City Council on Tuesday delayed a vote on a proposed “BikeShare” bike rental program after some members worried that it would cost too much. Council members scheduled a work session for March 15 to discuss the proposal further.

The program would place 300 bikes at 30 stations around Raleigh, mostly downtown and at local universities. Launching the program would cost about $2 million, $1.6 million of which would be covered by a federal grant. Raleigh must decide by April 1 whether it wants to use the grant, according to city staff.

The council’s main concern is an estimated $438,000 annual operating cost – and there appears to be tension between city leaders and potential sponsors over who should commit first.

Local companies privately pledged to cover about $250,000 of annual operating costs in exchange for sponsorships, said Councilman Bonner Gaylord, who networked to organize partners. He declined to offer company names or their desired contracts, but representatives from Citrix and Rex Healthcare expressed their interest to the council Tuesday.

“We believe that it provides a much-needed alternative for transportation for employees, for citizens,” said Catherine Harrell, senior director of marketing at Citrix.

But, without hearing specifics, some council members remained skeptical that BikeShare would garner enough interest to protect the city from having to write big subsidy checks. Councilwoman Kay Crowder pointed out that a similar program failed in Seattle and said that Blue Cross Blue Shield North Carolina, which sponsors Charlotte’s program, has considered pulling out due to high costs. Crowder wants the private sector to fund as much of the program as possible because she doesn’t think Raleigh should be in the “bike business.”

The cost is high for renters too, said Councilman Dickie Thompson.

Under the proposal, users could ride free as long as they rent and return the bike to any of the stations within 30 minutes. The city would then charge $4 for each additional half-hour, $8 for 24 hours or a flat $80 fee for unlimited use for 12 months. The city would offer reduced fees to students: $2 for each additional half-hour and $50 for a 12-month pass.

Thompson cast doubt that parents would want to spend $50 for a spouse and two kids to ride for just an hour.

“That’s pretty darn expensive for a family of four,” Thompson said.

Supporters see BikeShare not only as fairly-priced but as a chance to promote alternative modes of transportation and healthy lifestyles.

So is Wake County commissioner Sig Hutchinson, a Raleigh resident who noted that 70 U.S. cities are home to some sort of bike-sharing program.

“Clearly, they see the value of this,” Hutchinson told the council. “And citizens who are willing to spend a day in the city clearly understand that it’s fine to spend the cost associated with renting the bikes for a day.”

This story was originally published February 16, 2016 at 3:23 PM with the headline "Raleigh delays vote on proposed BikeShare program."