Bike Fleet Cost-Benefit Calculator

Bike Fleet Cost-Benefit Calculator Introduction Welcome to the Cost-Benefit Calculator. This is designed to: 1. Help you assess the financial impact of a bike fleet in your organisation; 2. Assess how the costs and benefits compare with car fleets and taxis; and 3. Evaluate some aspects of your bike fleet. Format: Summary A summary page which details the net costs and benefits of bike fleets per annum and per km of travel. Indicative comparisons are provided for motor vehicle and taxi costs. Bike fleet costs & benefits This allows you to make inputs for your bike fleet. Motor vehicle fleet costs Details of calculation of indicative motor vehicle fleet costs. NO data input is required. Taxi costs Details of indicative taxi travel costs. NO data input is required. Limitations of the Cost-Benefit Calculator: Note that this is not a cashflow calculator. Some costs are shown as average costs per annum, and no discount rate has been used to calculate the time value of money. The calculator does not take into account ALL the costs (and benefits) of bike fleets, car fleets and taxi use since each work situation is different. Issues that are not addressed include: - Trip times for different transport modes; - Availability and waiting times for fleet cars and taxis; and - Productivity savings from reduced travel times for particular modes. How to use the Cost-Benefit Calculator: Bike Fleet Costs and Benefits The bike fleet page already has suggested figures – some of which are mentioned in the Toolkit. We recommend that you make a copy of the calculator and put your own estimates $48 in the blue squares e.g. You can accept the suggested figures if you don’t have your own. You can then refine these estimates once you have reviewed the rest of this Toolkit and sought further information from others in your organisation to support or revise your estimates. The first section contains the data input, and the second section contains the calculations, which then feed into the summary page. Motor Vehicle Fleet Costs and Taxi Costs Data are provided on the cost of these types of travel, for indicative comparison purposes. The Cost-Benefit Calculator does not calculate the cost of your specific car fleet, or actual taxi use, Details of data sources are contained in the relevant pages. As noted above, possible time savings/productivity benefits of motor vehicle and taxi use have not been quantified. If these benefits exist, they will be specific to individual organisations. Summary This data will allow you to make a business case for a bike fleet for your organisation. You can assess how changes to values in the calculator will affect your bike fleet i.e. a 'what-if' analysis. You can input data from your fleet after 12 months' operation to find the actual costs and benefits. Please go to the "Bike fleet costs & benefits" tab to commence entering your data... Page 1 of 9 Printed 8/12/2008 Bike Fleet Cost/Benefit Analysis Summary BIKE FLEETS: The number of bikes in your BIKE FLEET is: Costs: The ESTABLISHMENT COSTS of your bike fleet are: The ANNUAL RUNNING COSTS of your bike fleet are: The TOTAL ANNUAL COSTS (including amortised establishment costs*) of your bike fleet are: Benefits: The ANNUAL BENEFITS** of your bike fleet are: Total: Net BENEFIT of your BIKE FLEET per ANNUM** Net BENEFIT of your BIKE Fleet per BIKE per ANNUM** * Establishment costs are averaged out over a number of years - see Bike fleet costs & benefits page for calculation details. ** A number in brackets represents a $ saving for your organisation. Per km 10 $42,547 $19,842 $29,125 $(59,200) $(30,075) $(3,007) $(1.20) CAR FLEETS: Average COSTS for fleets of 11 to 40 vehicles Total cost per vehicle per annum $11,146 Cost per km $0.74 TAXIS: Average COST for a 7km city journey in Sydney Cost $18.84 Cost per km $2.69 Printed 8/12/2008 ATTACHMENT M BIKE FLEETS - COSTS & BENEFIT CALCULATOR DATA ENTRY Data Source of information / notes Please enter your data in the blue squares e.g. Suggested figures have already been provided, some of which are mentioned in the Toolkit. You can accept the suggested figures if you don't have your own. You can then refine these estimates once you have reviewed the rest of the Toolkit and sought further information from others in your organisation. N.B. All figures include GST. CORE ASSUMPTIONS - COSTS Number of bikes in fleet Number of regular users Number of km per bike per annum Number of km per regular user per annum Percentage of users requiring training Percentage of users requiring other assistance Length of testing session (hours) Length of training session (hours) Length of other assistance session (hours) Type of fleet Fleet manager/administrator salary per annum Average staff salary per annum On-costs included in hourly rates Fleet manager/administrator and staff hours per annum Cost of fleet manager/administrator (per hour) Average staff cost (per hour) CORE ASSUMPTIONS - BENEFITS Improved productivity from better morale, team building and corporate culture (%) Improved employee health & fitness resulting in reduced sick leave & absenteeism Reduced staff turnover Improved public image Promotional benefits per user - annual Other promotional opportunities Assume all are mountain, hybrid or city bikes. Capital and mtce costs of folding & 10 power-assisted bikes likely to be greater 80 2,500 312.50 Value calculated 50% 50% 2 3 1 Demonstration Select from drop-down list $45,000 $45,000 20% Allow for superannuation and other payroll on-costs. 1,500 $ 36.00 Calculated $ 36.00 Calculated Demonstration Operational Staff Other 1.0% Estimate based on information from the Victorian TravelSmart Employers’ Toolkit $0 $0 $0 $200 $0 You can use your own estimates or actual data You can use your own estimates or actual data You can use your own estimates or actual data Estimate based on likely promotional budget You can use your own estimates or actual data Establishment costs are those which occur when the bike fleet is first set up. They will be amortised (spread over) a number of years to give a better indication of the cost per kilometre of running a bike fleet $900 10% Calculated (hide percentages) 10% 0% ESTABLISHMENT COSTS - ASSUMPTIONS Retail price per bike Discount for fleet size (10% for 10, 15% for 20) Page 3 of 9 Printed on 8/12/2008 ATTACHMENT M BIKE FLEETS - COSTS & BENEFIT CALCULATOR Discount on helmets and accessories Net cost per bike Cost per helmet Retail price of bike accessories (per bike) Additional equipment e.g. high-visibility vests, paniers, racks Cost of additional helmets, tools etc in central pool No. of users in initial testing session Cost of external training session (establishment phase) Other establishment costs No. of years for amortisation of Fleet users setup time No. of years for amortisation of bikes and minor capital items Staff time - Bike Fleet Manager Determine likely demand for fleet (hours) Marketing bike fleets to staff (hours) Prepare manuals, procedures, forms etc (hours) Arrange insurance/workers compensation etc (hours) Purchase bikes and accessories (hours) Testing of staff (health check, physical assessment, road rules, cycling ability, use of equipment) (hours) Other assistance for staff - route-planning, bike buddies (hours) Total hours No. of years for amortisation for Bike Fleet Manager time Major Capital Costs New/additional bike fleet parking facilities New/additional showers New/additional change-rooms New/additional lockers, irons etc. Cost of changed access arrangements for bike fleet Other major capital costs No. of years for amortisation of major capital costs ANNUAL COSTS - ASSUMPTIONS New users per annum as percentage of regular users Number of new users per annum Cost of external training session (recurrent) Hours of management time per bike per annum Incentives to staff to use fleet Membership of state group for insurance benefits Ongoing marketing (hours per year per user) 0% Insert percentage 810 $70 A lower quality helmet will cost about $50 Standard equipment comprises flashing front & rear LED lights, mudguards, $390 computer, a D-lock, spare tube, tyre levers, a pump and puncture kit. $0 Insert value - see toolkit for suggested figures $575 Additional helmets, floor pump, misc.tools, oil, tubes, batteries for lights etc 5 $55 Group of 5 $0 List details 5 4 40 60 100 20 60 This is an estimate and will vary for different organisations This is an estimate and will vary for different organisations This is an estimate and will vary for different organisations This is an estimate and will vary for different organisations This is an estimate and will vary for different organisations $ 32 Assumes testing in groups of 5 40 352 5 $0 $0 $0 $0 $0 $0 20 Facilities for commuter cyclists should not be included Facilities for commuter cyclists should not be included Facilities for commuter cyclists should not be included Facilities for commuter cyclists should not be included List details Annual costs are costs which occur each year after the bike fleet is set up e.g. maintenance, training new users 10% 8 Calculated from core assumptions Individual training for new joiners. Costs could be reduced if training is run for $240 groups of 5 - 10 6 High estimate - less for large fleets $50 Payment for events, support for workplace bicycle user group BNSW membership for 2+ members at same address and includes 3rd party & $60 personal accident insurance 1 Page 4 of 9 Printed on 8/12/2008 ATTACHMENT M BIKE FLEETS - COSTS & BENEFIT CALCULATOR Percentage of fleet replaced annually due to loss, theft or damage Cost of programmed maintenance per bike p.a. (outsourced) Cost of minor unprogrammed maintenance per bike p.a. (outsourced) Spare parts - tyres, brake pads, chain No. of breakdowns per bike p.a. Taxi vouchers for breakdowns Staff time per breakdown (hours) 10% For bikes ridden up to 2,500 km p.a. If bikes are ridden regularly in wet or dusty $55 conditions an additional service costing about $110 would be required $25 In good conditions, four years - one pair of tyres - $80, two sets of brake pads $38 $40, one chain - $30 2 $17 $17 is based on a 7 km trip 0.5 CALCULATIONS COSTS - ESTABLISHMENT COSTS Bikes, minor capital items & other costs Cost of bikes Cost of bike helmets Cost of bike accessories Additional helmets, tools etc in central pool Cycling training - outsourced Other establishment costs Total for bikes, minor capital items & other costs Total annual amortised cost Staff time - Bike fleet manager Determine likely demand for fleet Marketing bike fleets to staff Prepare manuals, procedures, forms etc Arrange insurance/workers compensation etc Purchase bikes and accessories Testing of staff (health check, physical assessment, road rules, cycling ability, use of equipment) Other assistance for staff - route-planning, bike buddies Total bike fleet manager Total annual amortised cost Staff time - Fleet users Testing Cycling training Other assistance for staff - route-planning, bike buddies Total staff costs Data Source of information / notes NO data entry is required in this section. It details all the calculations based on your inputs above. $8,100 This figure will be higher if helmets are provided for all regular users. Currently $700 based on a helmet per bike. $3,900 $575 $2,200 $0 $15,475 $3,869 $1,440 $2,160 $3,600 $720 $2,160 $1,152 $1,440 $12,672 $2,534 $5,760 $4,320 $4,320 $14,400 Page 5 of 9 Printed on 8/12/2008 ATTACHMENT M BIKE FLEETS - COSTS & BENEFIT CALCULATOR Total annual amortised cost Major capital costs New/additional bike fleet parking facilities New/additional showers New/additional change-rooms New/additional lockers, irons etc. Cost of changed access arrangements for bike fleet Other major capital costs Total major capital costs Total annual amortised cost TOTAL ESTABLISHMENT COSTS TOTAL ANNUAL AMORTISED ESTABLISHMENT COSTS COSTS - ANNUAL COSTS Staff time - Bike fleet manager General fleet management On-going marketing of fleet Testing new users (health check, physical assessment, road rules, cycling ability, use of equipment) Other assistance for new users e.g. route-planning, bike buddies Staff time - New fleet users Testing Cycling training Other assistance for staff - route-planning, bike buddies Other costs Cycling training for new users - outsourced Incentives to staff to use fleet including events, work bike club, ride-towork group or bicycle user group per user Membership of state group Replacement of lost, worn, stolen and damaged bikes and accessories Programmed maintenance - outsourced Minor unprogrammed maintenance Spare parts - tyres etc. Breakdown cost (staff time & taxi vouchers) Increased insurance premiums Additional insurance policies e.g. property damage, loss, theft, or other insurance TOTAL ANNUAL COSTS TOTAL COSTS - ANNUAL & AMORTISED ESTABLISHMENT COST PER BIKE PER ANNUM - costs only COST PER KM - costs only $2,160 $2,880 $576 $144 $576 $432 $144 $960 $4,000 $4,800 Assumes no property damage insurance; bike (full retail price) plus accessories (at $1,290 appropriate discount) $550 $250 $380 $340 $36 $700 $0 $0 $19,842 $29,125 $2,913 $1.17 $2,880 $0 $0 $0 $0 $0 $0 $0 $0 $42,547 $9,283 Page 6 of 9 Printed on 8/12/2008 ATTACHMENT M BIKE FLEETS - COSTS & BENEFIT CALCULATOR BENEFITS - PER ANNUM Improved productivity from better morale, team building and corporate culture Improved employee health & fitness resulting in reduced sick leave & absenteeism Reduced staff turnover Improved public image Promotional benefits - annual Other promotional opportunities TOTAL BENEFITS PER ANNUM Net Benefit per BIKE per annum Net Benefit per KM Net BENEFIT of your BIKE FLEET per ANNUM** Net BENEFIT of your BIKE Fleet per BIKE per ANNUM** Net BENEFIT of your BIKE FLEET per KM travelled** Benefits are in brackets, as they represent a $ saving for your organisation. Based on wages of fleet users and productivity increase of 1% (from Victorian $(43,200) TravelSmart Employers’ Toolkit) $0 $0 $0 $(16,000) $0 $(59,200) $(5,920) $(2.37) $(30,075) Using amortised establishment costs $(3,007) Using amortised establishment costs $(1.20) Using amortised establishment costs ** A number in brackets represents a $ saving for your organisation, ie, the benefits are greater than the costs. Page 7 of 9 Printed on 8/12/2008 MOTOR VEHICLE FLEETS NO data entry is required. This is standard information indicative of a car fleet operation. This shows the approximate direct costs for a Toyota Camry Altise 2.4 Automatic, held for a 3 year time period, sold at 54% residual value, with a fuel efficiency of 9.5l/100kms in NSW with a 25+ year old driver with no previous accident history. Data provided by Nic Lowe of GoGet, and based on industry data. Cost Breakdown Per Annum ASSUMPTIONS - COSTS Annual kilometres travelled Fuel efficiency (litres/100km) Purchase price of vehicle Capital cost of parking space No. of years parking space amortised over Other parking charges (per week) No. of weeks per annnum parking charges apply Depreciation rate (p.a.) Service cost Service interval (km) Tyre cost (each) Effective tyre life (m) DIRECT COSTS PER VEHICLE PER ANNUM Insurance Fuel Registration Green slip/CTP insurance Imputed depreciation Service Tyres Service club membership TOTAL DIRECT COSTS OTHER COSTS PER VEHICLE PER ANNUM Parking spaces Parking costs TOTAL OTHER COSTS TOTAL COSTS TOTAL COST PER KM Data 15,000 9.5 $31,500 $30,000 40 $20 46 18.75% $380 10,000 $120 35,000 $1,042 Based on valuation $1,710 $360 $569 $4,868 $570 $206 $152 eg, NRMA, RACV, RACQ $9,476 $750 $920 $1,670 $11,146 $0.74 Source of Information/Notes Notes: These are average costs for car fleets of 11 to 40 vehicles. Costs per km may be significantly greater for smaller fleets and lower for larger fleets Interest cost has not been included. Tolls and airport parking charges have not been included. Additional costs e.g. driver training that might be required by some organisations have not been included. No productivity or efficiency benefits have been included. Page 8 of 9 Printed on 8/12/2008 TAXI COSTS No data entry is required. COSTS Cost for an 'average' 7km city journey Plus Cabcharge/credit card fee (10%) Total RATE PER KM Data Source of Information/Notes $17.13 NSW Director General of Transport (Media release 1 Aug 2006) $1.71 $18.84 $2.69 Taxi Pricing Structure - City Rates Booking fee Flag fall Charge per km Waiting time - per hour Cabcharge/credit card fee NSW $1.50 $2.90 $1.68 $43.30 10% VIC $1.30 $3.10 $1.52 $31.20 10% QLD Similar rates for country $1.10 $2.50 $1.60 $36.00 Rate if travelling under 21 km/hr 10% Notes: Additional charges which may apply include freeway tolls and airport parking charges. Some states have differential ‘peak’ and ‘off-peak’ (higher) rates. For this analysis it is assumed that work trips are made at times when ‘peak’ fares apply. Trips at times/places with high traffic congestion will incur ‘waiting time’ charges due to frequent stopping/slow travel. No productivity or efficiency benefits have been included. Page 9 of 9 Printed on 8/12/2008