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<div class="moz-cite-prefix">Thanks Zennon,<br>
<br>
Good feedback on bike valet numbers, its appreciated. <br>
<br>
1) I see what you are saying on the service hours. The service
hours had been set up in a somewhat arbitrary matter as a first
attempt and I had stuck with those numbers. I took a second look
at this yesterday and revised things to come up with numbers that
could be linked back to capacity and operational hours, here is
what I came up with.<br>
<br>
<table style="border-collapse: collapse;width:486pt"
cellpadding="0" cellspacing="0" border="0" width="647">
<colgroup><col
style="mso-width-source:userset;mso-width-alt:7131;width:146pt"
width="195"> <col style="width:48pt" width="64"> <col
style="mso-width-source:userset;mso-width-alt:2669;width:55pt"
width="73"> <col
style="mso-width-source:userset;mso-width-alt:3510;width:72pt"
width="96"> <col
style="mso-width-source:userset;mso-width-alt:3986;width:82pt"
width="109"> <col
style="mso-width-source:userset;mso-width-alt:4022;width:83pt"
width="110"> </colgroup><tbody>
<tr style="height:15.0pt" height="20">
<td style="height:15.0pt;width:146pt" height="20"
width="195">Setup</td>
<td style="width:48pt" width="64">Capacity</td>
<td style="width:55pt" width="73">Hours</td>
<td style="width:72pt" width="96">Capacity * Hours</td>
<td style="width:82pt" width="109">Service Hours</td>
<td style="width:83pt" width="110">Bike Hours/Service Hours</td>
</tr>
<tr style="height:15.0pt" height="20">
<td style="height:15.0pt" height="20">Small</td>
<td align="right">50</td>
<td align="right">8</td>
<td align="right">400</td>
<td align="right">1</td>
<td class="xl65" align="right">400</td>
</tr>
<tr style="height:15.0pt" height="20">
<td style="height:15.0pt" height="20">Medium</td>
<td align="right">150</td>
<td align="right">8</td>
<td align="right">1200</td>
<td align="right">3.25</td>
<td class="xl65" align="right">369</td>
</tr>
<tr style="height:15.0pt" height="20">
<td style="height:15.0pt" height="20">Large</td>
<td align="right">300</td>
<td align="right">8</td>
<td align="right">2400</td>
<td align="right">6.75</td>
<td class="xl65" align="right">356</td>
</tr>
<tr style="height:15.0pt" height="20">
<td style="height:15.0pt" height="20">Bombers 500</td>
<td align="right">500</td>
<td align="right">8.5</td>
<td align="right">4250</td>
<td align="right">12</td>
<td class="xl65" align="right">354</td>
</tr>
<tr style="height:15.0pt" height="20">
<td style="height:15.0pt" height="20">Bombers 750</td>
<td align="right">750</td>
<td align="right">8.5</td>
<td align="right">6375</td>
<td align="right">18</td>
<td class="xl65" align="right">354</td>
</tr>
<tr style="height:15.0pt" height="20">
<td style="height:15.0pt" height="20">Bombers 1000</td>
<td align="right">1000</td>
<td align="right">8.5</td>
<td align="right">8500</td>
<td align="right">24</td>
<td class="xl65" align="right">354</td>
</tr>
<tr style="height:15.0pt" height="20">
<td style="height:15.0pt" height="20">Bombers 1250</td>
<td align="right">1250</td>
<td align="right">8.5</td>
<td align="right">10625</td>
<td align="right">30</td>
<td class="xl65" align="right">354</td>
</tr>
</tbody>
</table>
<br>
I then used these numbers to revise our rates and the numbers for
the Bombers proposal. Those numbers are attached in the Summary
pricing schedule (2014-Bike-Valet-Pricing.xlsx). For those who
want to look into more details, I'm also attaching a more detailed
spreadsheet that goes through costs (BV-Draft-Costs-2014-V4.xlsx).
<br>
<br>
2) The average use number was a total estimate on my part, and
didn't reflect the Bombers experience. I'm attaching a graph from
Amanda's 2013 BV report to give a better idea of what the actual
bicycle numbers from 2013 were for the Bomber games. We were at
capacity until the Banjo Bowl in September. Three issues that we
think led to the decreasing number of cyclists both going to the
game and parking with us that we hope to address in 2014 are bike
valet capacity not meeting demand, bicycle thefts and convenience.
On the first front, we want to ensure that we have enough capacity
to meet fan needs from the start of the season so that they get in
the habit of using the service. Last year, we turned a lot of
people away at the early games, when were full well before game
time. I think that led many to drop the bikes, especially as it
got very hard to find a place to park for those arriving at the
games a bit late. The bicycle thefts all occurred with bikes
parked outside of the bike valet service, but it was a definite
issue as the season went on. That was a negative of all the
publicity we received. The third strategy we are hoping to use to
attract more cyclists is to have an additional valet site located
at the southwest corner of the stadium for those coming in from
Fort Richmond or along Chancellor Matheson, as its a bit awkward
for these patrons to get to the current valet locations.<br>
<br>
3) We've given the Bombers 2 options to consider. A status quo
option that would allow us to park 500 bikes/game and an enhanced
option that would allow us to park 1250 bikes during the peak
months, scaling down to 750 as the season progresses and weather
deteriorates. Fro the 10 game package, we've priced the 500 bike
capacity at $11,500 and the larger capacity package at $19,150.
We've included a 15% admin fee in the cost of both proposals (as
well as our general pricing), so the financial benefit to us for
the extra capacity would be in that 15% fee. We would also gain
from tips, increased exposure of Bike Winnipeg, and the more basic
goal of encouraging more people to bike to the game (and hopefully
gain the confidence to bike to other destinations as well). I'm
attacing the summary we sent to the Bombers as well. The plan will
be to get in front of them to provide a proper presentation/pitch.<br>
<br>
<br>
<br>
<img alt="" src="cid:part1.03030602.07060902@bikewinnipeg.ca"
height="921" width="1345"><br>
<br>
It's hard to say how the Bombers will react. We can also work with
the Event Day Advisory Committee to help push for increased
capacity as Janice Lukes is part of that committee. As the money
for bike valet actually comes through an MPI sponsorship, we can
also contact them about the expanded capacity. I am going to
contact the WRHA about some potential funding opportunities for
Bike Winnipeg, and will also look the potential for that funding
to provide capital for any expansion. <br>
<br>
Mark<br>
<br>
<br>
On 12/03/2014 12:33 AM, Gagne, Zennon wrote:<br>
</div>
<blockquote
cite="mid:4BD3BB82E068F54A960BD7A83579406F1EF0148C@CAVANEXC300.ca.kworld.kpmg.com"
type="cite">
<pre wrap="">Great work Mark and Amanda at quantifying the costs associated with BV. The considerable amount of effort that has gone in to the analysis definitely helped me gauge how the operation is run and the costs associated with it. I've spent a significant amount of time looking at these costs:
1. The one thing I don't understand is how the 'service hours' are assigned to each capacity. As in, why is it 30 hours for 1250 capacity, 25 hours for 1000, and 10 hours for 500? Is this calculated on the first tab at the bottom? (See Bombers-1250 Cell B41 for the 30 hours).
2. If I read Tab 1 Cell B52-C52 right, we run at 75% of capacity on average. Is it realistic to believe that we can park over 1000 bikes in a game if we are not currently hitting capacity of 400?
3. What is the financial benefit to BV and Bike Winnipeg of an increase in capacity from 400 to 1250 bikes. Is there room on the bombers side to triple our rate per game for triple increase in capacity? If we do end up negotiating for the preferred 1250, will the rate paid by the bombers be increased accordingly? How will that work? I also think if we give the bombers too many options, they will opt for the lower amount to keep the costs as low as possible.
What do you think, overall awesome job on this, pretty cool to see how everything comes together as you have laid it out.
Zennon
-----Original Message-----
From: <a class="moz-txt-link-abbreviated" href="mailto:finance-bounces@lists.bikewinnipeg.ca">finance-bounces@lists.bikewinnipeg.ca</a> [<a class="moz-txt-link-freetext" href="mailto:finance-bounces@lists.bikewinnipeg.ca">mailto:finance-bounces@lists.bikewinnipeg.ca</a>] On Behalf Of Mark Cohoe
Sent: Monday, March 10, 2014 6:13 AM
To: <a class="moz-txt-link-abbreviated" href="mailto:finance@lists.bikewinnipeg.ca">finance@lists.bikewinnipeg.ca</a>
Cc: '<a class="moz-txt-link-abbreviated" href="mailto:jeremy@bikewinnipeg.ca">jeremy@bikewinnipeg.ca</a>'
Subject: [Finance] Draft Budgets
HI,
Amanda and I met over the weekend and did a detailed run through of the
numbers for bicycle valet to come up with pricing for small (<50 bikes),
medium (50-150 bikes) and large (> 150 bikes) setups. For the Bombers,
we developed 4 scenarios based on capacities of 1250, 1000, 750 and 500
bikes, 500 being the status quo. Amanda, I've made a few small changes
to the numbers from what we had Saturday, but mainly to deal with the
service hours. I also decided you were right about listing the capital
costs under expenditures in the budget, so that's in there too.
To develop the prices, we broke down costs into fixed and operational
costs. We borrowed Jeremy's idea of service hours to help factor fixed
costs into the rates. To calculate a service hour fee, we assigned a
fixed number of service hours to each setup type, multiplied that number
by the estimated number of each contracted setup type to determine a
service hours total for the season, and then divided fixed costs by that
number to get a service hour cost. See the Cost Analysis Spreadsheet to
review these calculations.
The service hour fee was then combined with estimated variable costs to
get a total setup cost (which included transport and a fixed number of
operational hours) and hourly rate for any additional hours.
Note that because the Bombers contract takes up such a large portion of
our contract setups, the service hour costs depends on which capacity
scenario the Bombers choose for 2014. The actual service hour charge is
listed on each tab (Bombers-1250, Bombers-1000, etc.) as a fixed number
rather than as a linked cell. In each case it was calculated by setting
the service hours cell on the rates tab and adjusting the quantity of
new stations and racks in the depreciation calculation.
I've marked the 1250 bike capacity option as the preferred option. If
the Bombers go with that option, we would have to come up with an
additional $12,000 for capital acquisition. Amanda and I thought it
would be best to ask for a multi-year contract from the Bombers, so
ideally this would give us ability to get a loan. We also recognized
that regardless of what option is chosen by the Bombers, we will need to
bill game by game to manage our cash flow.
For the BV and BW budgets, I've made calculations based on the Status
Quo option, which gives capacity for 500 bikes/game. We had a capacity
for 400-450 last year.
To balance the BV budget, I pushed the Bomber rate up a bit to
$1300/game. The BW budget includes a contingency of 4% of expenses (BV
and BW Core).
Cheers,
Mark
</pre>
</blockquote>
<br>
<br>
<pre class="moz-signature" cols="72">--
Mark Cohoe
Executive Director
Bike Winnipeg
<a class="moz-txt-link-abbreviated" href="http://www.bikewinnipeg.ca">www.bikewinnipeg.ca</a>
204-894-6540</pre>
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