Item - 2022.PA32.4

The Board of Directors, Toronto Parking Authority:

1.  Authorized payment of a $2,990,000 deposit (excluding Harmonized Sales Tax) for the purchase of new equipment to support year two (2023) of the Four-Year Bike Share Toronto Growth Plan, comprising new bicycles, new stations, docks, and ancillary elements from PBSC Urban Solutions Inc. The purchase will be made pursuant to the terms and conditions of the Equipment Supply Agreement dated March 22, 2016 between the Toronto Parking Authority and PBSC Urban Solutions Inc. and will be made in the amount of $11,028,019 (excluding Harmonized Sales Tax (Harmonized Sales Tax) of which, $2,990,000 (excluding Harmonized Sales Tax) will be paid as an advance deposit in 2022 to secure delivery of the equipment in early 2023.

Bike Share Toronto is a central component of Toronto Parking Authority’s transformation into a mobility services provider. Accelerating Bike Share’s growth and role as an integral part of Toronto’s mobility network is a strategic priority for both the Toronto Parking Authority and the City of Toronto.

Toronto Parking Authority has developed a Four-Year Growth Plan that will guide the expansion of the Bike Share Toronto program through 2025. At the completion of the Growth Plan, the Bike Share Toronto system will include a minimum of 1,000 stations and 10,000 bikes, including 2,000 e-bikes, that are distributed across all 25 Wards of the City.  An overview of the Growth Plan is included in PA32.3 - Bike Share Toronto - Four-Year Growth Plan.

First year expansion of the program, which includes a modest addition of 50 stations, including 100 iconic bikes and 225 e-bikes, is currently in progress. The appropriate authorities to purchase the equipment for the first-year expansion were provided by Toronto Parking Authority Board of Directors at its meeting of February 18, 2022.

In the second year of the four-year expansion, Bike Share Toronto will add a further 160 stations, including 1,815 bikes of which 1,300 will be E-FIT pedal assist bikes. As a result of the growing demands for bike share equipment, together with ongoing supply chain issues that the global market is experiencing, Toronto Parking Authority is seeking authority from Toronto Parking Authority Board of Directors to purchase the equipment needed for its second-year expansion.

The total cost to purchase the new equipment, which includes the supply and delivery of approximately 1,300 E-FIT pedal assist bikes, 515 Iconic bicycles, 30 e-charging stations, 130 solar paneled stations and ancillary elements, is $11,028,019 (excluding Harmonized Sales Tax). The equipment will be purchased from PBSC Urban Solutions Inc., pursuant to the terms and conditions of Toronto Parking Authority’s Equipment Supply Agreement with PBSC. Under the terms of this agreement, PBSC requires a deposit of $2,990,000 (excluding Harmonized Sales Tax) which will be funded by Toronto Parking Authority through a reallocation of 2022 unspent capital dollars. The details of this reallocation are included in PA32.5 - Capital Variance Report for the Eight Months Ending August 31, 2022. The remaining balance of $8,038,019 (excluding Harmonized Sales Tax) has been included in Toronto Parking Authority’s proposed 2023 Capital Budget and 2024 - 2032 Capital Plan.