Saturday, July 20, 2024
Hawai'i Free Press

Current Articles | Archives

Saturday, December 5, 2020
Audit: City Loses $450K per Year Subsidizing Bikeshare
By News Release @ 1:09 AM :: 2831 Views :: Honolulu County, Ethics

Audit of the City’s Bikeshare Program, Resolution 19-290

From Honolulu City Auditor, December 3, 2020


Honolulu’s bikeshare program enhances Honolulu’s initiatives to promote green alternatives and provides an environmentally-friendly transportation option of Honolulu’s urban core. Although city support for this program may have been justified based on its merits initially, it lacked a cost-benefit analysis to truly measure the program’s worth. Bikeshare Hawaii receives a myriad of city exemptions to support its operations that are not formalized and lack transparency. Furthermore, these exemptions also have a cost element and the cost to the city, in terms of metered parking stall revenues, and permit and concession fees, are not calculated or even considered when evaluating the program. Bikeshare Hawaii is reaping significant benefits, with little return to the city and its taxpayers, beyond bike operations itself. Going forward, the city should re-evaluate its relationship, right-size the benefits and exemptions, and properly monitor its grant agreement with Bikeshare Hawaii.

The city incurred over $450,000 in loss revenue in 2019

By agreement, the city cannot receive revenues from the bikeshare system. The city is losing revenues from the replacement of 44 metered stalls, which totaled an estimated $303,692 in 2019. In addition, the city exempted Bikeshare Hawaii from paying an estimated $157,00 in street usage permit fees annually. Bikeshare revenues increased 190% from FY 2017 ($939,788) to FY 2019 ($2.7 million). The city did not share in the $5.3 million in revenues collected by the Bikeshare program between FY2017 and FY2019. In addition to fare revenues, Biki also receives monies from sponsorships, but does not report these amounts to DTS as required by contract agreement. The city did not share in the nearly $1.4 million in sponsorship revenues collected between FY 2017 and FY 2020.

DTS is unable to hold Bikeshare Hawaii accountable for it's operational and fiscal performance as required by agreement.

DTS could not provide documentation for 7 of 11 contract control requirements. DTS does not effectively monitor Bikeshare Hawaii in these areas and does not enforce grant agreement requirements. As a result, the Biki program lacks transparency and accountability. Currently, DTS cannot assure Honolulu citizens that the Bikeshare program is operating as intended and that the contracted operator is fulfilling its responsibilities. Bikeshare Hawaii is falling short of its responsibility to be transparent and justify their use of city property.

We made 9 recommendations to improve transparency and accountability of the bikeshare program The Managing Director and Department of Enterprise Services expressed general agreement with the report’s findings and recommendations….

Read:  Highlights 

Read:  Full Audit Report  

Big Q: Do you support the Biki bikesharing program, which an audit said lacked oversight and cost the city nearly $500,000 in parking fees?

KHON: Audit says ‘city should re-evaluate its relationship’ with Bikeshare Hawaii  

HNN: Audit: Lack of oversight, costly parking stall use problems among Biki program

SA: Biki bikes costing Honolulu an estimated $460,728 in lost revenue, audit finds

CB: Show More Aloha, Biki — Bike Program Should Share The Wealth


TEXT "follow HawaiiFreePress" to 40404

Register to Vote


Aloha Pregnancy Care Center


Antonio Gramsci Reading List

A Place for Women in Waipio

Ballotpedia Hawaii

Broken Trust

Build More Hawaiian Homes Working Group

Christian Homeschoolers of Hawaii

Cliff Slater's Second Opinion

DVids Hawaii


Fix Oahu!

Frontline: The Fixers

Genetic Literacy Project

Grassroot Institute

Hawaii Aquarium Fish Report

Hawaii Aviation Preservation Society

Hawaii Catholic TV

Hawaii Christian Coalition

Hawaii Cigar Association

Hawaii ConCon Info

Hawaii Debt Clock

Hawaii Defense Foundation

Hawaii Family Forum

Hawaii Farmers and Ranchers United

Hawaii Farmer's Daughter

Hawaii Federation of Republican Women

Hawaii History Blog

Hawaii Jihadi Trial

Hawaii Legal News

Hawaii Legal Short-Term Rental Alliance

Hawaii Matters

Hawaii Military History

Hawaii's Partnership for Appropriate & Compassionate Care

Hawaii Public Charter School Network

Hawaii Rifle Association

Hawaii Shippers Council

Hawaii Together


Hiram Fong Papers

Homeschool Legal Defense Hawaii

Honolulu Navy League

Honolulu Traffic

House Minority Blog

Imua TMT

Inouye-Kwock, NYT 1992

Inside the Nature Conservancy

Inverse Condemnation

July 4 in Hawaii

Land and Power in Hawaii

Lessons in Firearm Education

Lingle Years

Managed Care Matters -- Hawaii

Missile Defense Advocacy

MIS Veterans Hawaii

NAMI Hawaii

National Parents Org Hawaii

NFIB Hawaii News

NRA-ILA Hawaii


OHA Lies

Opt Out Today

Patients Rights Council Hawaii

Practical Policy Institute of Hawaii

Pritchett Cartoons

Pro-GMO Hawaii

Rental by Owner Awareness Assn

Research Institute for Hawaii USA

Rick Hamada Show

RJ Rummel

School Choice in Hawaii

Talking Tax

Tax Foundation of Hawaii

The Real Hanabusa

Time Out Honolulu

Trustee Akina KWO Columns

West Maui Taxpayers Association

What Natalie Thinks

Whole Life Hawaii