Capital CarShare

Business Plan
July 2012

Table of Contents
Acknowledgments ..................................................................................................................................... 3 1| Executive Summary .............................................................................................................................. 4 2| Industry Overview................................................................................................................................ 7 History of Car Sharing ...................................................................................................................... 7 Car Sharing vs. Private Vehicle Ownership ................................................................................... 8 Car Sharing in the Capital Region ................................................................................................... 9 3| Membership Characteristics & Location Selection ......................................................................... 11 Target Car sharing Audience ......................................................................................................... 11 Car sharing Feasibility Index.......................................................................................................... 12 Site Selection ..................................................................................................................................... 16 Car Sharing Pod Location Criteria................................................................................................. 20 Other Considerations....................................................................................................................... 20 4| Fleet Infrastructure ............................................................................................................................. 22 Ownership Method .......................................................................................................................... 22 Loanation........................................................................................................................................... 22 Fuel Type ........................................................................................................................................... 23 Fleet Model Recommendations...................................................................................................... 24 5| Technology & Services ....................................................................................................................... 26 Services .................................................................................................................................................. 27 6| Price Structure ..................................................................................................................................... 29 Competitive Analysis ...................................................................................................................... 29 Developing Capital CarShare Membership Plans ....................................................................... 31 Business Membership ...................................................................................................................... 32 Penalties & Fees ................................................................................................................................ 32 7| Organizational Structure .................................................................................................................... 34 For-Profit vs. Non-Profit ................................................................................................................. 34 Organizational Oversight ............................................................................................................... 34 Staffing ............................................................................................................................................... 34
Chapter: Acknowledgments

8| Implementation & Future Growth.................................................................................................... 36 Growth Patterns ............................................................................................................................... 36 Implementation Timeframe ............................................................................................................ 36 9| Financial Outlook ................................................................................................................................ 38

Tables & Figures Table 1: Cost of Vehicle Ownership vs. Car Sharing ............................................................................ 8 Table 2: Characteristics of Car-sharing members ................................................................................ 11 Table 3: Car sharing Feasibility Index - Indicators & Weightings .................................................... 13 Table 4: Potential Car-sharing Vehicle Models .................................................................................... 25 Table 5: Car sharing Membership Plan Comparison .......................................................................... 30 Table 6: Capital CarShare Membership Plan Tiers.............................................................................. 31 Table 7: Abbreviated Schedule of Fees ................................................................................................. 33 Table 8: Capital CarShare Financial Projections .................................................................................. 39

Chapter: Acknowledgments

Acknowledgments
The Capital CarShare consultant team would like to acknowledge the assistance of the following organizations and companies in providing invaluable information and guidance for this plan.

Buffalo CarShare Community Loan Fund of the Capital District Ithaca CarShare Metavera Solutions PilotFish Networks Porter & Curtis, LLC University at Albany, State University of New York

In addition, this report would not have been possible without the support of the Feasibility Study Committee: Albany Parking Authority Capital District Transportation Authority (CDTA) Capital District Transportation Committee (CDTC) Central Avenue Business Improvement District City of Albany, New York City of Schenectady, New York New York State Department of Transportation The College of Saint Rose
Chapter: Acknowledgments

1| Executive Summary
The Capital Region is quickly approaching a threshold: by the year 2040 our region is projected to have over 884,831 residents, an increase of 140,000 residents from 19801. Recent estimates from the U.S. Census Bureau show that during 2006 to 2010, 79.7% of Capital Region residents commuted alone in their own vehicles2. As state offices and businesses begin to restack their offices, parking (both on-street and private) which is already constrained in some places will become increasingly contentious. At the same time, gas prices have continued to escalate, with government projections showing continued elevated average gas prices over the next two years3. Simply put, driving alone is getting more expensive and time-consuming; Its time for an alternative which helps residents and workers keep costs down while providing the flexibility of vehicle ownership. This alternative is Capital CarShare, a comprehensive car sharing organization designed to meet the transportation needs of Capital Region residents. How does Car Sharing Work? Car Sharing is a transportation innovation which gives subscribers the flexibility of having a vehicle available for short-term trips, while freeing them from the financial and administrative obligations of automobile ownership. Car sharing is largely self-service: subscribers reserve a vehicle near their location using an online or telephone-based reservation system, access the vehicle using their RFID (radio frequency identification)-enabled membership card, and return it to the car sharing pod, or parking space, at the end of their trip. Billing is tracked and completed automatically by an interface between the vehicle and the car-sharing server, with no further action required by the member. Membership Plans The proposed membership plans are equally simple, with three tiers to allow members to customize their plans to their driving habits. For members who rarely use a vehicle, the basic plan allows them to rent a vehicle at a base hourly rate of $9.00, without any monthly subscription fees. For more extensive users, an intermediate plan of $10 per month, with an annual discounted rate of $100, grants them a lower hourly rate of $7.00, providing a substantial discount for those driving more than five hours a month. Lastly, for those members who are looking to Capital CarShare to replace their current vehicle, the Gold Plan provides the lowest
Capital District Regional Planning Commission. (n.d.) Capital District Population Projections. Retrieved from: http://www.cdrpc.org/Proj-Pop.html 2 U.S. Census Bureau. Table B08101: Means of Transportation to Work by Age. 2006-2010 American Community Survey 5-year estimates. 3 U.S. Energy Information Administration. (2012). Table 4c: U.S. Regional Motor Gasoline Prices and Inventories. Retrieved from: http://205.254.135.7/forecasts/steo/tables/?tableNumber=10
1

Chapter: 1| Executive Summary

hourly rates in exchange for a monthly membership fee of only $30 or $300 annually. Combined with a mileage charge of $0.25 per mile, this charge covers all gas, maintenance, and insurance. Drivers no longer have to worry about the expense of unexpected flat tires, oil changes, or transmission problems. Capital CarShare frees drivers from these obligations, allowing them to focus on continuing to make the Capital Region a vibrant, exciting place to work, live, and play. Where will Capital CarShare operate? Capital CarShare has identified four initial implementation stages which are outlined in greater detail in Section 3. This strategy was designed to build a strong membership base over its first years of operations, which could in turn support future expansion. Initially starting in Downtown Albany, Capital CarShare will expand out into surrounding neighborhoods over the first three stages of implementation before continuing to expand to other Capital Region cities. This plan was based on a demographic analysis of key car sharing indicators as well as potential membership. What type of vehicles will Capital CarShare use? As detailed in Section 4, Capital CarShare will initially start with a fleet of gasoline-powered, fuel-efficient hatchbacks such as the Toyota Yaris or similar vehicles, as well as a small pickup truck to allow for a flexibility of uses. However, Capital CarShare will actively pursue funding sources and partnerships to incorporate hybrid or alternative fuel vehicles into the initial fleet. As the initial fleet of gasoline-powered vehicles nears replacement, hybrid vehicles will be introduced to the fleet. How will Capital CarShare be organized? Capital CarShare will be organized as a non-profit corporation, to allow the organization to achieve a broader social purpose without the pressures of maximizing profits for shareholders. A Board of Directors, made up of key stakeholders and a membership representative, will be responsible for organizational oversight and ensuring fiscal stability. An Executive Director will be assisted in their duties by a membership coordinator and several interns in managing daily operation of the organization. Member volunteers, called Car Captains, will assist in ensuring that each vehicle in the car sharing fleet is in good condition and ready for use by our members. Can Capital CarShare be financially self-sustainable? Simply put, Yes. Initially, Capital CarShare will need to raise approximately $175,000.00 between grants, loans, and contributions (either financial or in-kind) from shareholders and partners. The first several quarters do have projected losses, largely due to the high initial infrastructure costs. The first year shows a net profit of approximately $4,848 including start-up funding. With one-time expenses and funding sources removed, the first year shows a net loss of approximately $28,911. The second year remains profitable over all, with a net profit of
Chapter: 1| Executive Summary

approximately $40,865 ($253,454 after one-time expenses and funding sources are removed.) As with any business, profitability takes time as initial start-up expenses usually overshadow initial revenue. However our financial outlook, outlined further in Section 9, shows a relatively strong pattern of growth and associated shift to profitability within two years. Summary Its not a secret: gas prices are rising, parking is becoming increasingly difficult, emissions from private automobile usage are having a detrimental effect on our environment. This reality has resulted in Capital Region residents and workers to increasingly look for solutions and amenities to improve their quality-of-life while reining in expenses. Providing access to a vehicle for residents, workers, and visitors without the associated cost and time investment of private vehicle ownership will improve quality-of-life in the Capital Region, serve as an economic driver in the region, and help facilitate an increase in footsteps in our downtown cores. For years, the Capital Region has been discussing ways to reduce its environmental footprint, increase its economic viability, and attract and retain its creative class. Capital CarShare can help to make progress towards these goals, building upon the Capital Regions legacy of being an incredible place to work, live, and play.

Chapter: 1| Executive Summary

2| Industry Overview
History of Car Sharing Car sharing has been in existence almost as long as the car itself. The first formal attempt at car sharing occurred in 1948 in Zurich, Switzerland with a car cooperative known as Sefage. The 20th century saw many experiments in car sharing. However, it wasnt until the 1990s that modern technology was developed which made car sharing more convenient and feasible. Today, car sharing organizations are operating in twenty-six countries on five continents, with over a million members and over thirty-thousand vehicles.
4

Car sharing has gained popularity in North America in the last twenty years with no signs of slowing down. As of July 2011, there were twenty-six U.S car sharing programs with over fivehundred thousand members sharing ten-thousand vehicles.5 The car sharing market is generally divided into for profit, non-profit and cooperative business models. Car sharing has typically been composed of neighborhood based cars that members of a car sharing organization can access with a special membership card or key. The key to the vehicle and a card to purchase fuel are located within the car. Car sharing is poised to continue to grow, especially with the development of new innovations such as one-way car sharing and peer-to-peer car sharing. One-way car sharing allows vehicles to be picked up in one location and returned to another within a designated area. This model is in operation in select cities, both in the United Sates and globally. Peer-to-Peer car sharing, where a vehicle owner directly shares their vehicle with their peers through a provider, is also spreading and innovating car sharing. According to some sources, it is estimated that each car sharing vehicle removes 9 to 13 personal vehicles a total of 90,000 to 130,000 across the country. This reduction in personal automobile ownership results in a reduction of greenhouse gas emissions, reduced demand for parking, increased use of public transit and non-motorized transportation and savings for drivers.6
Chapter: 2| Industry Overview

Car sharing, 2012 March 5, Innovative Mobility Research: http://www.innovativemobility.org/car sharing/index.shtml 5 Car sharing, 2012 March 5, Innovative Mobility Research: http://www.innovativemobility.org/car sharing/index.shtml 6 Martin, Elliot; and Susan A. Shaheen and Jeffery Lidicker, Impact of Car sharing on Household Vehicle Holdings: Results in North America, March 2010
4

Car Sharing vs. Private Vehicle Ownership In order to be successful, car sharing programs need to be cost-effective for both operators and drivers. As part of the plan development process, an analysis was run on several price points to measure where the financial break-even point would be, such that private ownership was a better fiscal option for potential users. To complete this analysis, data was taken from the 2010 American Automobile Associations cost of driving survey, which was modified to reflect current average gasoline prices in the Capital Region as of February 29, 2012. For drivers of small sedans, the financial break-even point was around 3,500 miles annually. It is important to note that while this appears to be a very small number, car share members reported driving as much as 79.8% fewer miles than when they previously owned their own automobile, according to a recent report. Furthermore, surveyed car-sharing members often reported increasing their use of public transit, contributing to this reduction while demonstrating the synergy possible between car sharing and transit.7
Table 1: Cost of Vehicle Ownership vs. Car Sharing

Miles Driven Annually

Car Share Private Vehicle

Assumptions:

0 $100.00 $4,381.00

1,500 $2,077.27 $4,661.95

3,000 $4,054.55 $4,942.90

4,500 $6,031.82 $5,223.85

6,000 $8,009.09 $5,504.80

Fixed vehicle ownership costs (insurance, depreciation, finance charges) of $4,381.00 Variable vehicle ownership charges (gas, maintenance, tires) of $0.1873/mile Car Share Silver Plan ($100/year, $7.00/hour, $0.25/mile) 5.5 miles driven per hour

Figure 1: Cost of Vehicle Ownership vs. Car Sharing

Car Ownership vs. Car Share

$9,000.00 $8,000.00 $7,000.00 $6,000.00 $5,000.00 $4,000.00 $3,000.00 $2,000.00 $1,000.00 $0.00 0 1,500 3,000 4,500 6,000 Annual Mileage

Annual Cost

Car Sharing

Shaheen, S. Cohen, A., Chung, M. (2009). North American Car sharing : A Ten-Year Retrospective. Transportation Research Board.
7

Chapter: 2| Industry Overview

Private Vehicle

Car Sharing in the Capital Region In the Capital Region, car sharing is relatively new. Over the last few years car sharing has been discussed as a transportation option worth exploring, especially among a number of local colleges. There have been several attempts to attract a large for-profit car sharing organization to the area. Ultimately these private vendors were not interested in initiating a regional car sharing program. In 2010, Hertz on Demand located several vehicles internally on the UAlbany Uptown Campus, as well as one on the Downtown Campus. The vehicles are open to the public but their availability may be limited when school is not in session. The purpose of Capital CaShare is to have a regional car sharing program that serves the larger community.

Why Car Sharing is Vital for the Capital Region Car Sharing Benefits: Although there are many benefits to incorporating a car sharing program into the regional transportation system, three major benefits are: Reduced environmental impact of commuting Reduced demand for parking Increased regional economic activity

Reduced Environmental Impact Car sharing has been shown to decrease greenhouse gas emissions. It is estimated that car sharing has resulted in a 225,000 ton reduction in greenhouse gas emissions in North America.8 Car sharing in the Capital Region is consistent with recent efforts of New York State and the Capital Region to become more sustainable, which have been expressed in documents such as C.D.T.C.s New Visions Plan and the City of Albanys Albany 2030 Comprehensive Plan. These plans have emphasized the importance of transitioning to innovative, less-impactful transportation options, such as mass transit, alternative fuels, and car sharing. Reduced Demand for Parking visitors and residents. Car sharing has been shown to eliminate at least nine personal vehicles for every car sharing vehicle in service, helping to reduce the demand for parking. This will be vital for the region, especially in Albany where a number of developments are increasing pressure on the existing parking infrastructure. One such development has been the reorganization of office space used by New York State, which has resulted in the relocation of
8

Martin, E. W., & Shaheen, S. A. (2011, December). Greenhouse Gas Emission Impacts of Car sharing in North America. IEEE Transactions of Intelligenet Trasnportation Systems, Vol.12 No.4 , pp. 1074-1086

Chapter: 2| Industry Overview

In many of the regions dense urban areas, there is limited on-street parking for commuters,

between 2,000 and 5,000 workers to downtown Albany offices, including the Empire State Plaza. 9 Also on the horizon, the City of Albany is implementing a residential parking permit system for streets within a three-quarter of a mile radius surrounding the Empire State Plaza.10 Car sharing will be a viable option for anyone working, living or visiting the region to increase mobility without out increasing the need for parking. Economic Benefit A car sharing operation stimulates economic activity through the maintenance and operation of the vehicle fleet, as well as increases the purchasing power of members. Members who car share in lieu of owning a private vehicle often save significant amounts of money on their transportation costs, which in turn can be used in local businesses, further growing our economy. PhillyCarShare estimated that the economic benefit for Philadelphia in the form of direct expenditures by the organization was $14 million, while $13.2 million in net purchasing power was saved by members due to cost savings by using car sharing services.11 Relying heavily on PhillyCarShares methodology, Buffalo CarShare determined that their members had saved over $377,000 in expenses simply by choosing car sharing over private car ownership. Furthermore, as an organization, Buffalo CarShare directly spent over $440,000 over two years in the local economy, and paid over $28,000 in sales/car rental taxes from to New York State.

(Carleo-Evangelist, 2011) (Carleo-Evangelist, Times Union, 2012) 11Ecoonsult Corporation. (2010). The Economic And Environmental Impact of PhillyCarShare In The Philadelphia Region. Philadelphia: PhillyCarShare
9 10

10

Chapter: 2| Industry Overview

3| Membership Characteristics & Location Selection

While the aim for Capital CarShare is to provide mobility solutions to as broad of a segment of the regional population as possible, it is important to ensure that the where the pods are located generate enough revenue to sustain and grow the organization. This is particularly crucial for the initial stages of implementation, when capital is particularly limited. As such, a significant portion of this project was spent looking at membership characteristics and site selection for the initial rollout of Capital CarShare.

Target Car sharing Audience Over the past decade, a significant amount of research has been completed focusing on the typical demographics of car sharing members. Although it is important not to design programs which favor one demographic over another, it is important to know which residents are more likely to use your service for both marketing and financial projection purposes. In 2005, the Transportation Cooperative Research Program released the report Car-Sharing: Where and How It Succeeds. In this report, the authors identified key characteristics that were common among the membership of a number of successful car sharing programs, which are detailed in Table 2.

Table 2: Characteristics of Car-sharing members

Characteristic Age Income Education Household size Auto ownership Gender

Typical Car-Sharing Member Mid 30s Mid 40s Upper middle class Upper levels (College degree(s)) Smaller than average (1-2 persons) Half own one vehicle Slightly more attractive to males

Source: TCRP Report 108, Exhibit 3-3

Building upon this research, a report presented by the Transportation Research Board in 2007 showed statistically significant correlations between the success of car sharing programs and most of the same characteristics from table 2. The one exception was education, which their

11

Chapter: 3| Membership Characteristics & Location Selection

research did not show as having a statistically significant relationship12. As such, this indicator was not utilized in the feasibility index.

Car sharing Feasibility Index In order to determine how to best empirically measure and identify areas where car sharing would most likely be successful, it was imperative to develop a data model which incorporated the aforementioned characteristics of car sharing members, as well as other key indicators. A review of a number of location selection methodologies was completed early into the planning process. One city, San Diego, used a methodology which was both comprehensive and flexible enough to incorporate a wide range of data. This method incorporated a number of key indicators which were each assigned relative weights. These weightings aligned with the perceived importance of each indicator to the overall success of a car sharing program. The San Diego model was used as the base for the model developed for this study, and was modified to reflect the data available and particular distribution in the Capital Region. The criteria used and the weightings assigned to each indicator are seen in Table 3. Proportional data was primarily taken from the 2006-2010 American Community Survey 5-year estimates, although data dealing with population counts or density was taken from the 2010 Decennial Census. In addition, employment data was obtained from the U.S. Census Bureau Longitudinal-Employer Household Dynamics Program. All data was collected at the census tract level, as it was the finest grain data consistently available from all sources. When this model was applied to the demographic data for the Capital Region, the feasibility index scores ranged from a low of 19 to a high of 38, out of a possible range of 17 to 51. This data was then broken into quartiles and mapped using ArcGIS 10, providing a visualization of the spatial distribution of the feasibility index, as seen in Figure 1. Each quartile was assigned a successively darker shade, with the darkest shades indicating those census tracts with the highest proportion of the demographic and physical characteristics that have been identified as key to a successful car sharing operation, and thus the highest feasibility scores.
Chapter: 3| Membership Characteristics & Location Selection

Celsor, C., Millard-Ball, A. (2006). Where Does Car-Sharing Work? Using GIS to Assess Market Potential. Transportation Research Board.
12

12

Table 3: Car sharing Feasibility Index - Indicators & Weightings

Indicator Density Population per acre Age Percentage of population between 25 and 45 years old Income Percentage of households with annual income between $30,000 and $75,000 Household Size Percentage of households with 2 or fewer members Auto Ownership Percentage of households which do not own an automobile Alternative Transportation Percentage of workers who commute using alternative modes of transportation (Bicycling, walking, public transit, work at home) Housing Tenure Percentage of households which are renteroccupied Employment Number of employees per acre

Classes <= 15 per acre 15 30 per acre > 30 per acre <= 30% 30% - 50% > 50% <= 20% 20% - 40% > 40% <= 30% 30% - 60% > 60% <= 20% 20% - 40% > 40% <= 30% 30% - 60% > 60%

Score 1 2 3 1 2 3 1 2 3 1 2 3 1 2 3 1 2 3

Indicator Weight 3

13

Chapter: 3| Membership Characteristics & Location Selection

<= 20% 20% - 40% > 40% <=30 per acre 30 60 per acre >= 60 per acre

1 2 3 1 2 3

Figure 2: Car sharing Feasibility Index

14

Chapter: 3| Membership Characteristics & Location Selection

Lastly, a filter was placed on this data to only choose census tracts with a density that could best support car sharing. For the purposes of this final check, the density threshold was set at either 3 households per acre or 50 employees per acre.

Figure 3: Feasibility Index, with density filter applied

15

Chapter: 3| Membership Characteristics & Location Selection

Site Selection Taking this data a bit further, the top ranked census tracts were isolated and ranked amongst themselves, to get a better idea as to their distribution and their individual scores. Although it was originally intended to be limited to the ten highest-ranked census tracts, a number of tracts had similar feasibility index scores. This result required that the study be broadened to eleven tracts. The resulting distribution can be seen in figure 2.

Figure 4: Highest Ranked Census Tracts

The eleven highest ranked tracts are located in downtown and Troy, Albany, locations Schenectady,

which feature dense employment and residential populations, as well as a large proportion of the population which falls within the demographic
Chapter: 3| Membership Characteristics & Location Selection

profile outlined earlier in this section One important consideration of site selection is maintaining proximity of pods to one another, at least for the initial roll-out. The initial vehicles should be located in areas which will guarantee high utilization and are located within walking distance to other pods to allow members to easily access multiple vehicles. The purpose for this clustering technique is to prevent the negative experience and resulting reputational impact that could occur if the one vehicle in an area was taken at the same time that another member needed it. Although this is certainly unavoidable in some instances, if it occurs too often it could create the perception that the car sharing program is a hassle because the vehicles are never there when they are needed.

16

Membership projections Membership projections were developed based on U.S. Census Bureau population figures for residents 25 and older, taken from the 2010 Decennial Census. Commercial figures were taken from the Longitudinal-Employer Household Dynamics Program and reduced by three-quarters, reflecting the reality that a significant portion of the workday population will not be inclined to join this service. Furthermore, these figures were multiplied by a range of penetration rates, allowing for a full picture of potential membership numbers depending on the success of the organizations outreach and marketing efforts.

Figure 4 : Initial Implementation Stages

17

Chapter: 3| Membership Characteristics & Location Selection

Multi-stage Implementation

Stage 1: Center Square, Hudson/Park, Downtown, University Heights (Census Tracts 22, 11, 21) Key Demographics o o o o Residents over 25: 4,415. Employees: 49,063. Households with 0 or 1 vehicle: 79.7%. Over three-quarters of households have 2 or fewer members.

High concentration of dense residential population, employment base, and high-rental tenure make this an ideal core area to start within. Major employment centers are located throughout the tracts, including State Offices, large office buildings, and several institutions such as Albany Medical Center. Parking can be contentious in this area, which may be improved through a wide-spread adoption of car sharing.

Potential Membership: o o Residents Alone: 1% penetration rate: 44 members; 3%: 132 members. Residents & Employees: 1%: 166 members; 3%: 500 members.

Timeframe: Year 1, first through third Quarter.

Stage 2: Washington Park, Pine Hills, West Hill neighborhoods (Census Tracts 8, 14, 15, 6, 5.02) Key Demographics o o o Residents over 25: 6,529. Employees: 6,160. Households with 0 or 1 vehicle: 69.8%
Chapter: 3| Membership Characteristics & Location Selection

Relatively dense residential and key employment centers provide a strong potential membership base. Adjacency to prior tracts allows network to grow organically and contiguously. Fairly constrained parking situation in these neighborhoods would improve with car sharing adoption, but may spark objections to the dedication of scarce parking to car sharing pods.

Potential Membership: o o Residents Alone: 1% penetration rate: 65 members; 3%: 196 members. Residents & Employees: 1%: 81 members; 3%: 242 members.

Timeframe: Year 1, third quarter through Year 2, second quarter.

18

Stage 3A: Arbor Hill, West Hill, Beverwyck neighborhoods(Census Tracts 2, 7, 5.01) Key Demographics o o o Residents over 25: 8,918 Employees: 4,419 Households with 0 or 1 vehicle: 82.2%

Good combination of residential and commercial base, as well as a high percentage of households without vehicles. Adjacency to existing network allows the organization to continue to grow organically. Recent planning focus on Arbor Hill and Sheridan Hollow may allow easier incorporation into the neighborhood as part of developing plans.

Potential Membership: o o Residents Alone: 1% penetration rate: 89 members; 3%: 267 members. Residents & Employees: 1%: 100 members; 3%: 301 members.

Timeframe: Year 2, third quarter through Year 3, fourth quarter.

Stage 3B: Delaware Avenue, Pastures, Mansion, South End neighborhoods (Census Tracts 16, 20, 23, 25) Key Demographics o o o Residents over 25: 14,967 Employees: 2,485 Households with 0 or 1 vehicle: 69.5%

Primarily a residential neighborhood, although there is a growing commercial base network allows the organization to continue to grow organically. Recent mass transit route reorganization has increased transit access to these neighborhoods, increasing the number of potential members.
Chapter: 3| Membership Characteristics & Location Selection

present as well. High percentage of households without vehicles. Adjacency to existing

Potential Membership: o o Residents Alone: 1% penetration rate: 150 members; 3%: 449 members. Residents & Employees: 1%: 156 members; 3%: 468 members.

Timeframe: Year 2, third quarter through Year 3, fourth quarter.

Stage 4: Downtown Troy or Downtown Schenectady By this point in its development, Capital CarShare will have built a fairly strong brand identity and presence within Albany, which will help to fund expansion to a second city. As Stage 3 is slated to occur during Year 3, this expansion will likely not occur until the fourth or fifth year of business. As such, it would be premature to select a municipality at this point. Factors that should go into this decision include a demographic analysis, as well as municipal and institutional support.

19

Car Sharing Pod Location Criteria Within each implementation area, choosing each car sharing vehicle location (also known as a pod) will require careful study. Although there will always be extenuating circumstances, it is important that car sharing pods are situated in locations that meet certain criteria. This criteria includes: Land Use: Pods should be located near mixed land-use whenever possible. This will increase the utility of the vehicle as residents, businesses and their patrons, and workers have increased access to the vehicle for their transit needs. Density: In order for the pod to be financially successful, it is important that the the area surrounding the pod (roughly a half mile radius) has a high residential and employment density. Generally speaking, 2,500 residents within half a mile of the vehicle would provide a solid base of potential members. This figure could be less if there are sufficient potential members from nearby businesses. Accessibility: Pods should be easily recognizable and accessible to residents and visitors alike. The ideal location will be near a centrally located primary road for the tract. Although this may not be a high-traffic thoroughfare, it is important that this road have steady traffic patterns, to both increase visibility and accessibility. Parking: Pods need to have a dedicated parking spot, ideally at the end of block or street. This will increase visibility and allow members to locate the vehicles easily, even in an unfamiliar neighborhood. Additionally highly visible signage/street markings will be very important for identifying and advertising car sharing pods. As such, it is Proximity to other pods: When possible, it is preferable for pods to be within walking distance (half mile) of another pod. This allows members the option of using a different pod if the vehicle they usually use is already booked. Other Considerations It is important to note that site selection will not be solely driven by the aforementioned data model used to create the feasibility index. Occasionally, there will be other influences which will help determine where the next phase of fleet expansion should take place. While it would be difficult to identify every potential influence, pod sponsorship and government grants are two examples which could help to expand Capital CarShare to new areas. Pod Sponsorship Many of the car sharing organizations that were studied had incorporated or solicited private sponsorship of car-sharing pods. This provides the sponsor with a price-competitive alternative to private fleet and parking management while providing the car sharing organization with financial support for the start-up costs of the pod, as well as a cache of potential members.
Chapter: 3| Membership Characteristics & Location Selection

important that selected locations allow for appropriate signage and/or street markings.

20

Although each potential partnership would need to be carefully analyzed to ensure that the pod is otherwise feasible, this option can be a great way to expand the car sharing network with much lower outlay of capital. Potential partner organizations include: State, County, and Municipal Governments Universities / Colleges (Staff and Students) Hospitals Shopping Centers/Commercial Plazas Residential Complexes Hotels

Capital CarShare will actively work to solicit and build these partnerships to help accelerate the expansion of the network while raising the profile and market penetration of car sharing.
Figure 5: A Marriot Courtyard-branded Zip Car Pod in Dallas, TX.

Government Grants Another potential source of funding which could influence the expansion of the car sharing network is government grants. State and Federal agencies often provide financial grants to incentivize private entities to tackle pressing social and economic issues. As part of this process, government grants. Much like with the pod sponsorship, a grant award will allow Capital Car Share to expand into areas which may not have been feasible until later in the implementation timeline. These grants would reduce the startup and maintenance capital required to operate the pod. In addition, some government grants may be able to be used to offer subsidized plans for targeted populations. Some potential topics where grant funding may be available include assisting with mobility, mitigating food deserts, and increasing environmental sustainability in the region.
Chapter: 3| Membership Characteristics & Location Selection

the consultant team has been working to identify potential funding streams, including

21

4| Fleet Infrastructure
Ownership Method One of the first decisions that need to be made in terms of fleet management is whether it is better to purchase or lease the car sharing vehicles. Leasing vehicles requires a much smaller initial capital outlay than purchasing, but would involve a monthly lease payment per vehicle. Leased vehicles generally have penalties for exceeding annual mileage limits, which could prove to be an unplanned expense. Purchasing vehicles requires either a large initial investment or securing financing from either a dealer or private institution. However, purchased vehicles are not subject to mileage surcharges and provide the organization with complete flexibility to customize them as needed, including adding car sharing equipment and vehicle graphics. The latter point can be negotiated into the lease contract, as has been done by some organizations. For the car sharing organizations reviewed as part of this study, both ownership models have been utilized. However, for the purposes of Capital CarShare the preferred method would be to purchase the fleet outright to allow for maximum flexibility in terms of fleet management and customization. Vehicles will be kept in service for approximately three to five years, or before the vehicle depreciates significantly in resale value. This timeframe will be established based on the model chosen and the Kelly Blue Book resale value for that model year. Loanation Once the organization is past the initial implementation stage it will explore allowing people to share their car with the entire car sharing membership. The model for this program is currently in use with eGo, a car sharing organization in Colorado. The criteria for vehicles are: Automatic transmission Less than five years old Less than 75,000 miles Body and interior in good condition Reliable make and model Must own vehicle outright (no liens on title) Must be willing to enter into a two year loan agreement.
Chapter: 4| Fleet Infrastructure

Fuel-efficient sedan, hatchback, AWD vehicle, minivan, pick-up truck

The car is outfitted with the car sharing organizations hardware and it is put into the fleet similar to that of other vehicles. The vehicle will be placed strategically to expand the organizations fleet but will also take into consideration the location of vehicle owner.

22

Those who share their car receive: Use of their car and entire car share fleet with an annual usage credit based on the Kelly Blue Book value of their vehicle. The car share organization will take responsibility of the insurance, maintenance and gas for the vehicle. The owner of the vehicle can take their car back at any time but must give the organization a minimum thirty day notice. Fuel Type There are three major fuel sources which are commercially available that need to be considered during the vehicle selection. Gasoline is currently the default choice for private vehicles sold in the United States, making up approximately 96% of vehicles sold in February 2012. Comparatively, hybrid vehicles made up 3.16%, electric vehicles made up 0.15%, and clean diesel made up 0.79% of total passenger vehicle sales in the same month13. Many car sharing organizations utilize either gasoline or hybrid vehicles in their fleets. These options each have their benefits and drawbacks which need to be carefully weighed. Gasoline vehicles tend to be cheaper to purchase and maintain, but are subject to the increasingly expensive and unpredictable gasoline prices, which in turn can rapidly increase operating expenses. In addition, the burning of fossil fuels has been linked to a number of environmental issues. Hybrid vehicles use less gasoline, which reduces fuel expenses and emissions. However, hybrid vehicles can be more expensive than their gasoline counterparts. Electric, Clean Diesel, and Compressed Natural Gas (CNG) vehicles are also generally more expensive than gasoline vehicles, and also require specialized refueling stations or equipment. These options would have a lower environmental impact and would be more insulated from rising gasoline prices. However, ensuring that there is sufficient recharging or refueling infrastructure in the implementation area could pose a logistical problem. That said, there has been an increase in the rate of installation of alternative refueling or Furthermore, alternative fuel vehicles may make the organization more competitive when applying for government grant programs and private partnerships. One valuable source for information about alternative fuel sources, infrastructure, and funding sources can be found at the U.S. Department of Energys Alternative Fuels & Advanced Vehicles Data Center Website:
Chapter: 4| Fleet Infrastructure

recharging infrastructure throughout the Capital Region over the past several years.

February 2012 Dashboard. HyridCars.com. Retrieved from: http://www.hybridcars.com/news/february2012-dashboard-42085.html

13

23

http://www.afdc.energy.gov/afdc/. Incorporating alternative fuel vehicles into the Capital Car Share Fleet will be actively pursued by Capital CarShare to help lower the Capital Regions carbon footprint. Initially, Capital CarShare will likely start with a gasoline powered fleet which will be replaced over time with hybrid vehicles. This choice will lower the initial vehicle expenses, which is crucial during the initial start-up stages. However, Capital CarShare will actively pursue funding sources and partnerships to incorporate alternative fuel vehicles as a significant portion of its fleet.

Fleet Model Recommendations When selecting a vehicle for Capital CarShares fleet, several factors had to be considered, such as purchase price, gas mileage, maintenance costs, and flexibility. In order to keep maintenance and on-board equipment installation costs as low as possible, it was decided to initially start with one model of vehicle, with the exception of one truck for flexibility. A subcompact hatchback was chosen for a vehicle class, as they are relatively compact and fuel-efficient, but offer a greater amount of cargo room for members. In addition, the purchase price was only slightly higher than their sedan counterparts. The Toyota Yaris provides the best combination of fuel efficiency, purchase price, and maintenance costs in this vehicle class. This report therefore has used the Toyota Yaris as the suggested standard fleet vehicle for budgetary and planning purposes. Ultimately, the decision on a specific model will depend largely on the availability of dealer financing and a negotiated fleet purchase price, as well as grant opportunities and private partnerships

24

Chapter: 4| Fleet Infrastructure

Table 4: Potential Car-sharing Vehicle Models

Hatchbacks
Make Chevrolet Ford Honda Nissan Toyota Model Sonic 2LS Hatchback Fiesta Hatchback Fit Hatchback Versa S Yaris Transmission Automatic Automatic Automatic Automatic Automatic Fuel Gas Gas Gas Gas Gas MPG (city/hwy) 25/35 29/39 28/35 24/32 30/35 Price $16,634 $16,809 $15,441 $16,460 $15,041 Maintenance (5 years) N/A $1,858 $1,862 $2,271 $1,887

Sedans
Make Chevrolet Ford Honda Nissan Toyota Model Sonic 2LS Sedan Focus Civic Versa S Sedan Corolla Transmission Automatic Automatic Automatic Automatic Automatic Fuel Gas Gas Gas Gas Gas MPG (city/hwy) 25/35 26/36 28/39 30/38 27/34 Price $15,730 $16,558 $16,499 $13,900 $16,004 Maintenance (5 years) N/A $ 2,605 $ 1,882 $2,271 $ 2,109

Electric/Alternative Fuels
Make Chevrolet Ford Honda Nissan Toyota Model Volt Fusion Civic Hybrid Leaf Prius Transmission N/A Automatic Variable N/A Automatic Fuel Gas/Electric Gas/Electric Gas/Electric Electric Gas/ Electric MPG (city/hwy) 36 miles/charge, 35/40 mpg 41/36 mpg 44/44 mpg 100 miles/charge 51/48 Price $39,995 $29,570 $24,820 $37,250 $23,725 Maintenance (5 Years) $1,680 $2,370 $1,72 $1,786 $1,655

Crossovers/Vans/Trucks
Chapter: 4| Fleet Infrastructure Make Chevrolet Ford Honda Nissan Toyota Model Equinox Crossover F150 XL Odyssey (Minivan) Quest Van Sienna (Minivan) Transmission Automatic Automatic Automatic Automatic Automatic Fuel Gas Gas Gas Gas Gas MPG (city/hwy) 22/32 17/23 18/27 19/24 19/24 Price $24,340 $22,649 $26,643 $28,575 $24,261 Maintenance (5 Years) $ 2,549 N/A $2,024 $2,609 $2,290

25

5| Technology & Services

While early car sharing initiatives often relied on the honor-system or relatively low-tech methods for facilitating reservation scheduling, fleet management, and member accounts, modern car sharing operations generally rely on a two-tiered system of technology to keep operations flowing smoothly: on board (in-car) equipment, and server-side equipment. For each category, there are a number of service providers, each with their own product line and cost structure. Contact information for each provider contacted can be located in the Appendix. On Board Equipment The on-board equipment is responsible for controlling and providing access to the vehicle, tracking and communicating mileage driven and vehicle location, as well as providing fleet security and reservation management services with some models. Access to the vehicle is gained by the member placing their membership card, which contains an RFID chip, against the drivers side of the windshield. RFID is a radio frequency identification used to transfer data. The on-board equipment verifies that the member has a current reservation and unlocks the vehicle. At the end of the reservation, the member simply returns the vehicle key to the compartment in the glove box and places their membership card back up to the RFID reader, which then locks the vehicle. On-board equipment is available through a number of vendors, which offer options to either purchase or lease the equipment. Generally speaking, purchase prices range between $1000 and $1400, while lease prices are generally $50-70 per month. Installation procedures vary greatly by the equipment, but take approximately two hours per vehicle for an experienced mechanic or technician. Server-Side Equipment Modern car sharing operations often manage dozens of vehicles, used by hundreds or thousands of members who subscribe to one of a number of different membership plans. Without a well-developed technology solution, running such an organization would be which take care of much of the heavy lifting, allowing car sharing operators to tailor their service to what best meets the diverse needs of their clientele. Although each provider has subtle differences in the interface and included features of their systems, all of the systems reviewed offered: Reservations Internet & Telephone Vehicle Tracking and immobilization Membership management Billing, Tier management & partnership discounts
Chapter: 5| Technology & Services

tremendously difficult. However, a number of technology vendors have developed systems

26

Generally speaking, these systems are hosted by the vendor, reducing the technical expertise required by the car sharing staff. In terms of cost, most of the systems that were studied had a tiered pricing approach for the server-side equipment, assessing a monthly fee per networked vehicle, generally between $38-60. Initial set up costs vary by provider, but generally cost approximately $2000.

Services
Insurance An initial quote was received from William P. Curtis, a principal at Porter & Curtis, LLC, a consultative commercial insurance broker and risk management services provider. Porter & Curtis is the insurance broker for other car sharing organizations such as Buffalo Car Share. William Curtis presented on insurance for car sharing organizations at the fall 2011 Upstate Transportation Forum in Ithaca, New York. Although premiums depend on the vehicle type, limits, deductibles and ultimately loss experience, Mr. Curtis estimated a monthly expense of between $150 and $200 per vehicle for budget purposes. This includes $1,000,000 of liability coverage, statutory minimum limits for uninsured/underinsured motorists & PIP (no fault). There would be a $500 deductible for comprehensive and collision. Those 18- 20 years of age need to demonstrate that they are covered by another car insurance policy. DMV/Credit Check In order to protect the organizations infrastructure, as well as to comply with insurance requirements, Capital CarShare will be required to obtain a DMV record for each subscriber. These records searches generally run between $10.00 and $15.00, depending on the vendor. Merchant Services In order to accept and process credit cards for reservations, Capital CarShare will need to establish a contract with a merchant services provider. These services can either be obtained through third-party vendors or often through the banking services provide. Generally, a monthly fee is assessed as well as a percentage-based transaction fee, ranging from 1.5-5% depending on the terms of the contract and usage patterns. For the purposes of the financial projections, we have assumed $150 in setup costs, $25 a month in maintenance fees, and a 3.00% transaction fee. Office Rent & Utilities As with any business, office space will be necessary to facilitate the organizations operations. It is suggested that Capital CarShare open a storefront office space, preferably in an area with high pedestrian traffic. Although cheaper space may be available through a shared-space
Chapter: 5| Technology & Services

27

arrangement with another organization, many car sharing organizations (such as Buffalo) have found success in outreach efforts simply by having a highly-visible storefront office.

28

Chapter: 5| Technology & Services

6| Price Structure
After site selection, development of a membership structure is one of the most important aspects of creating a successful car sharing program. A successful membership plan will provide users with a range of options to best meet their transit needs, while providing the organization with a strong revenue base to further maintain and develop its network. Additionally, it is vital that the membership plan remain competitive with other means of transportation. To achieve this balance, a competitive analysis was completed of several car sharing programs, which in turn was used in conjunction with local market conditions to develop a proposed Capital CarShare membership plan. Competitive Analysis To start off this process, a survey was completed of other car sharing programs of various sizes. To best capture a range of programs that would provide the most relevant information, programs were selected from both regionally proximate as well as more distant car sharing operators. In addition, a more established program was included to provide context in terms of scalability as Capital CarShare grows. A total of twelve programs were analyzed as part of this process, from small single car operators to a major regional operator with hundreds of vehicles. Ultimately, six programs were chosen for a more in-depth analysis, given their proximity to the Capital Region, as well as unique features of their programs. The six programs that were analyzed were Ithaca Car Share (Ithaca, New York), CuseCar (Syracuse, New York), Buffalo Car Share (Buffalo, New York), eGo CarShare (Boulder, Colorado), CarShare Vermont (Burlington, Vermont), and I-Go Car Sharing (Chicago, Illinois). Of these programs, all featured a multi-tiered approach to membership. This approach allows users to choose the plan which best matches their anticipated level of usage, while encouraging and rewarding users who use the service more regularly. This financial incentive is very important, as each vehicle in the fleet incurs a number of fixed costs, regardless of how often they are used. The higher the utilization of each vehicle, the lower the fixed cost per mile and the greater the revenue stream. These cost savings can in turn be used to expand the car sharing network.
Chapter: 6| Price Structure

29

Table 5: Car sharing Membership Plan Comparison

Operator Ithaca Car Share CuseCar

Tiers Just In Case It's My Car Student Sponsor Out-N-About Commuter Buffalo Settler Buffalo Roamer

Membership Fee $50.00/year $200.00/year $20.00/year $20.00/year $60.00/year $200/year or $18/month $50/year or $5/month $20/month (1 driver) $25/month (2 drivers) $0 $10/month $0.00 $0.00 $15.00/month 3 hours incl. $30.00/month $5/month $50/year $15/month $150/year

Hourly $7.95 $4.95 $7.95 $5.95 $7.95 $5.95 $8.00 $5.00

Mileage $0.20 $0.20 $0.20 $0.20 $0.20 $0.20, 60 miles incl. $0.20 $0.20

Buffalo Car Share

eGo CarShare I-Go Car Sharing

Peace of Mind Free Wheelin Go Standard Go Standard Plus Go Budget Go Anytime

$4.506.50 $2.50-4.00 $6.75 $8.50 $8.50 $7.00 $6.95 $4.95

$0.30 $0.30 $0.40 $0.40, 150 miles incl. $0.40, 150 miles incl. $0.40, 150 miles incl. $0.25 $0.25

CarShare Vermont

Share-a-Little Share-a-Lot

30

Chapter: 6| Price Structure

Developing Capital CarShare Membership Plans When developing the structure for Capital CarShare, two key objectives were established: a) Create a simple, easy to communicate structure, and b) ensure the structure is flexible, competitive, and profitable. With these objectives in mind, the following membership plan was created, providing users with a range of options to best fit their transit needs.

Table 6: Capital CarShare Membership Plan Tiers

Tier Basic

Target Audience Members who are not sure of their projected usage, or only plan on using Capital CarShare occasionally. Members who plan to use Capital CarShare at least weekly. (at least 5 hours per month) Members who plan to use Capital CarShare on a regular basis. (at least 10 hours per month) Covers requesting and processing the DMV records check

Monthly Fee $0

Usage Fee Hourly Rates starting at $9.00; $0.25/mile Hourly Rates starting at $7.00; $0.25/mile Hourly Rates starting at $5.00; $0.25/mile.

Silver

$10 Or $100/year $30 Or $300/year

Gold

Application Fee

$30; Waived for Gold Annual Subscriptions

This multi-tiered system provides plans which fit all usage patterns, while rewarding those who more actively use their memberships and/or are willing to commit to an annual membership. The members break-even point for the silver level is five hours monthly, while for the gold membership it is seven hours monthly. This encourages greater use on the part of the member while helping to increase vehicle usage. Figure 5 revisits the chart shown earlier in the report, but expands to show all three tiers of service. With this chart, it is easy to see how members who travel longer distances or use the service more frequently can save on their travel expenses by opting for a higher membership tier. Furthermore, the break-even point against the cost of private ownership becomes even profitable revenue flow for the organization.
Chapter: 6| Price Structure

greater, allowing a wider segment of travelers to benefit from car-sharing while maintaining a

31

Figure 6: Capital CarShare Membership Tiers and Private Ownership

Car Ownership vs. Car Share

$12,000.00 $10,000.00 Annual Cost $8,000.00 $6,000.00 $4,000.00 $2,000.00 $0.00 0 1,500 3,000 Annual Mileage 4,500 6,000

Private Vehicle Base Plan Silver Level Gold Level

Business Membership In addition to the individual membership options, Capital CarShare will offer local businesses the option of participating in this new transportation option through the Business Silver plan. This plan is structured similar to the Silver Tier plan, with a $100 annual membership fee and a $7.00 hourly charge. However, business owners will have the option of adding drivers for a reduced rate of $20 each. Annual membership subscribers will have their first driver application fee waived. The Business Silver plan will give business owners greater control over their transportation expenditures, while eliminating the overhead that comes with owning a business vehicle or fleet. Penalties & Fees As with any other service, occasionally there will be violations of the membership agreement. These violations may range from the mundane, such as returning a car late or leaving the windows open, to the more serious, such as smoking in the vehicle or damaging the vehicle. In order to both discourage such behavior, as well as accommodate for the financial burden taken on by the organization to remedy these actions, a penalty fee structure has been established. Generally speaking these fees will run between $15 and $35 per infraction. These fees will be used to help maintain these vehicles, as well as cover expenses such as providing alternate transportation for affected members. For accidents or vehicle damage which results in an insurance claim, members will be responsible for paying the $500 insurance deductible incurred by the organization. This would be similar if the incident occurred in their private vehicle. By holding the member responsible for reimbursement of the deductible, the impact on the organization and larger membership base is reduced.
Chapter: 6| Price Structure

32

Table 7: Abbreviated Schedule of Fees

Violation Vehicle not left in Ready Condition Late Return of Vehicle Smoking or Pets (without crate) in Car Vehicle Damaged (minor)

Description Vehicle is left with less than tank of gas, parked in an incorrect location, and/or dirty or with litter. Car is returned after the reservation time has finished. Occupant either smoked or had animals in the vehicle. Minor damage to the vehicle, with repair costs less than $500.

Fee $30

Vehicle Damaged (major) Major damage to the vehicle, with repair costs exceeding $50.0. Lost Gas Card Lost Vehicle Key Replacement Membership Card Fleet gas card is lost/stolen Vehicle key is lost or irreparably damaged. Membership RFID Card is damaged or lost,

Reported: $4.25/15 minutes Unreported: $7.50/15 minutes $50 or reasonable cleaning costs, whichever is greater. $30 + reasonable repair costs. (No charge if caused by normal wear and tear.) $30 + $500 deductible $15 $150 One complimentary replacement per year. $10 each afterwards.

33

Chapter: 6| Price Structure

7| Organizational Structure
For-Profit vs. Non-Profit Capital CarShare will be formed as a nonprofit corporation under the laws of New York State. While this does entail some additional paperwork than forming as a for-profit corporation, this type of legal entity will better position the organization to raise capital through grants and donations. Furthermore, forming as a nonprofit entity will allow Capital CarShare to pursue expanding car sharing and related services to areas which might prove more challenging to serve profitably. Capital CarShare will purposefully set a double bottom line for itself, measuring success not simply on profitability but also on improving quality of life of the neighborhoods in which it operates while reducing the environmental impact of private car ownership. Organizational Oversight The Board of Directors for Capital CarShare will be made up of representatives from key groups representing stakeholders, local and regional transit organizations, as well as the members themselves. Directors are responsible for overseeing and setting the overall strategy of the organization, as well as providing guidance and direction for the executive director and staff. A mix of inside and outside directorships was utilized to provide the board with a balance of specialized experience and independent oversight. The tentative board composition is as such: Executive Director Local Government Representative Regional Transportation Agency (CDTA/CDTC) Representative Business Improvement District Representative Educational Institution Representative Member Representative

Staffing Initially, Capital CarShare should be staffed with a full-time executive director, a part-time membership coordinator, and two part-time interns. These staff members will be responsible for the day-to-day operations of the business, as well as raising awareness of Capital CarShare and car sharing in general in the community. Executive Director This position will be responsible for all aspects of the day-to-day operation of the program, including member services, community outreach, car-sharing advocacy, grant-writing and administration. It is critical that the individual chosen for this position be entrepreneurial and a
Chapter: 7| Organizational Structure

34

self-starter. In a large part, the success of Capital CarShare will rely on the dedication and skills of the executive director. This position will report to the Board of Directors. Membership Coordinator This position is responsible for all aspects of the member experience, including community outreach, billing and account support, as well as system and infrastructure management. The Membership Coordinator is responsible for overseeing the Car Captain program, as well as resolving any disputes or situations that may arise between members or concerns members have about the vehicles. Initially, this position will be a part-time position; however, it should become full-time within twelve months. This position reports to the Executive Director. Interns Interns working for Capital CarShare during its early stages will have an invaluable opportunity to assist in the building of a new car sharing organization, providing learning opportunities which will well-position these individuals for their future careers. Ideally, one intern each will be assigned to the Executive Director and the Membership Coordinator to assist in projects related to their core responsibilities. In addition, each intern will be responsible for providing front-line member support for reservation inquiries, basic problem resolution and membership questions. Compensation will not be available for these positions; however CarShare interns will be eligible for course credit at participating institutions and will receive a complimentary Capital CarShare membership which will extend for one year after the completion of their internship. Car Captains An important member of the Capital CarShare team will be the Car Captain. These volunteers will be responsible for checking in on an assigned vehicle on a weekly basis to make sure that the organizations service standards are being upheld. Car Captains will ensure that the cars are clean, visually ensure that they are not damaged or missing any components, and alert Capital CarShare staff if the vehicle needs further attention. In addition, Car Captains will be responsible for shoveling out their assigned vehicle within twelve hours of the end of a snowstorm. For their service and support, Car Captains will be granted a complimentary Gold Tier membership for as long as they serve in their capacity. The Car Captain program, used in many car sharing organizations around the country, is a great way for supporters to get involved in the Capital CarShare organization and provides invaluable support for car sharing in the Capital Region.
Chapter: 7| Organizational Structure

35

8| Implementation & Future Growth

Growth Patterns Although Capital CarShare anticipates an aggressive pattern of membership growth, for our financial projection we have worked with a conservative growth number of fifteen members per month on average, adjusted for seasonal fluctuations and decreasing interest between implementation rollouts. Furthermore, as a result of a planned outreach campaign, we have anticipated an initial membership base of fifty members. These figures will lead to an anticipated membership base of 340 members by the end of the second year in operation. This level of membership will support up to fifteen cars, using a benchmark ratio of twenty-two to twenty-five members to one car. Implementation Timeframe As mentioned in the discussion of implementation stages, the planned initial roll-out of Capital CarShare is scheduled to take place over a period of three years, with continued expansion afterwards. It is estimated that the first three to six months will be spent by organizers locating and hiring an executive director, completing and filing the organizing documents for incorporation and 501(3)c status, identifying and soliciting funding sources, and sourcing and purchasing the required infrastructure. Although some of these tasks will be on-going, such as soliciting grants and procuring infrastructure, the aforementioned tasks need to be completed prior to the start of operations. The first implementation stage, centered around Downtown Albany, Center Square, and University Heights, will start as soon as feasibly possible and will initially wrap up approximately in the third quarter of the first year. It will be vital that care is taken to identify and correct any issues as soon as possible during this stage, as it will both serve as a model for future implementation and attract substantial public and media attention. Initially, this stage depending on market penetration. It is expected that implementation stage 2, which involves expanding car sharing pods into Albanys Park South and Pine Hills neighborhoods, will begin to start around the fourth quarter of the first year and continue into the third quarter of the second year. Ideally, new pods will be added gradually, expanding the network radially out through the targeted area. Depending on adoption and market penetration, there could be anywhere from two to six cars installed during this stage. The third stage of implementation, which would bring car sharing into the Arbor Hill, South End, and Delaware Avenue neighborhoods, would tentatively take place through the third
Chapter: 8| Implementation & Future Growth

could involve the installation of anywhere between four and eight cars throughout the area,

36

year. This is a large expanse of territory and could result in anywhere from four to eight cars installed in this area.
Figure 7: Implementation Timetable

Ongoing tasks will include regular review of market adoption and vehicle usage to identify areas which may need additional capacity, as well as future expansion locations. As part of this membership perceives their car sharing experience. Additionally, there will need to be an ongoing outreach effort to community members, groups, and organizations to increase awareness and adoption, as well as to identify and negotiate partnerships with key stakeholders to increase the network coverage at a lower capital expense.
Chapter: 8| Implementation & Future Growth

task, regular membership surveys or panels should be conducted to get a picture of how the

37

9| Financial Outlook
In order to develop a comprehensive set of financial projections, the consultant team incorporated information gathered from service providers and other car sharing organizations, as well as independent analysis specific to the Capital Region. As with any set of projections, certain assumptions were made, specifically in regards to membership projections and funding sources. While we feel these numbers are both conservative in nature and realistic in scope, these figures should be viewed as acquisition goals; any change in these numbers could require either extending the time frame of the implementation plan or finding alternative funding sources. For the first year of operations, our projections show revenue of $331,957.00, of which $156,957.00 are revenue from operations and $175,000.00 are proceeds from start-up funding sources. The largest revenue stream is from hourly usage charges, accounting for $99,400.50. For this same period, our projections show an expense total of $328,795.94. Vehicle purchases made up the largest expense at $121,278.00, followed by staff wages at $74,950.00. These figures result in a projected net profit for the first year of $4,848.56. With one-time revenue and expense categories omitted, there is a net operating loss of $28,911.20 for the first year. During the second year, there is projected revenue of $399,607.00, primarily sourced from car sharing operations. As with the first year the largest projected revenue stream is hourly usage charges, which contributes $244,989.00 in revenue. During this same period, there is a projected $358,741.90 in expenses. With one-time vehicle acquisition expenses omitted, annual expenses are projected at $253,454.90, a 18.79% increase in variable expenses. This increase is largely attributed to increased fuel and maintenance costs, as well as the transition of the membership coordinator from part time to full time status.

38

Chapter: 9| Financial Outlook

Assumption
per user (one-time)

Frequency/Unit

Y1Q1

Y1Q2

Y1Q3

Y1Q4

Y1

Y2Q1

Y2Q2

Y2Q3

Y2Q4

Y2

Totals

$30.00
per household per household per household per household per business per business

$100.00 $10.00 $300.00 $30.00 $100.00 $10.00

per hour per hour per hour per hour per mile driven average penalty

$900.00 $29,940.00 $7,500.00 $2,550.00 $15,300.00 $4,590.00

$9.00 $7.00 $5.00 $7.00 $0.25 $30.00 $25,000.00 $97,504.00 $87,363.00 $103,392.00 $111,348.00

Table 8: Capital CarShare Financial Projections

Category Receipts Registration Fees Membership Dues Silver: Annual Silver: Monthly Gold: Annual Gold: Monthly Business Silver: Annual Business Silver: Monthly Hourly Usage Basic Silver Gold Business Silver Mileage Penalties Cost Sharing Grants Loans Total Receipts $1,500.00 $5,070.00 $900.00 $390.00 $2,700.00 $720.00 $300.00 $60.00 $5,827.50 $2,700.00 $1,512.00 $1,237.50 $378.00 $496.50 $150.00 $25,000.00 $75,000.00 $75,000.00 $188,044.00 $73,062.00 $36,720.00 $19,278.00 $15,300.00 $1,764.00 $6,426.00 $1,020.00 $32,682.00 $47,967.00 $63,264.00 $1,350.00 $8,340.00 $1,500.00 $720.00 $4,500.00 $1,260.00 $300.00 $60.00 $20,880.00 $10,368.00 $5,481.00 $4,275.00 $756.00 $1,812.00 $300.00 $1,500.00 $11,850.00 $2,100.00 $1,080.00 $6,300.00 $1,980.00 $300.00 $90.00 $31,428.00 $15,768.00 $8,127.00 $6,525.00 $1,008.00 $2,739.00 $450.00 $1,350.00 $16,440.00 $3,000.00 $1,440.00 $9,000.00 $2,610.00 $300.00 $90.00 $41,265.00 $20,520.00 $10,962.00 $8,775.00 $1,008.00 $3,639.00 $570.00 $5,700.00 $41,700.00 $7,500.00 $3,630.00 $22,500.00 $6,570.00 $1,200.00 $300.00 $99,400.50 $49,356.00 $26,082.00 $20,812.50 $3,150.00 $8,686.50 $1,470.00 $25,000.00 $75,000.00 $75,000.00 $331,957.00 $156,957.00 $900.00 $19,140.00 $3,900.00 $1,650.00 $9,900.00 $2,970.00 $600.00 $120.00 $47,646.00 $23,760.00 $12,474.00 $9,900.00 $1,512.00 $4,158.00 $660.00 $1,350.00 $23,100.00 $5,100.00 $1,980.00 $11,700.00 $3,600.00 $600.00 $120.00 $57,096.00 $28,728.00 $14,931.00 $11,925.00 $1,512.00 $5,007.00 $810.00 $1,350.00 $28,020.00 $6,300.00 $2,340.00 $14,400.00 $4,230.00 $600.00 $150.00 $67,185.00 $33,480.00 $17,766.00 $14,175.00 $1,764.00 $5,907.00 $930.00 $4,500.00 $100,200.00 $22,800.00 $8,520.00 $51,300.00 $15,390.00 $1,800.00 $390.00 $244,989.00 $122,688.00 $64,449.00 $51,300.00 $6,552.00 $21,498.00 $3,420.00 $0.00 $25,000.00 $0.00 $399,607.00 $10,200.00 $141,900.00 $30,300.00 $12,150.00 $73,800.00 $21,960.00 $3,000.00 $690.00 $344,389.50 $172,044.00 $90,531.00 $72,112.50 $9,702.00 $30,184.50 $4,890.00 $25,000.00 $100,000.00 $75,000.00 $731,564.00

per vehicle (one-time)* per vehicle (one-time) per vehicle (one-time) per vehicle, per month per gallon per vehicle, per month per vehicle, per month per vehicle (one-time) per vehicle, per month per vehicle, per month

$61,114.00 $5,281.12 $4,700.00 $2,100.00 $529.60 $629.00 $300.00 $360.00 $60.00 $300.00 $480.00 $80.00 $0.00 $480.00 $80.00 $0.00 $480.00 $80.00

$30,082.00 $2,640.56 $2,350.00 $3,150.00 $966.40 $943.50

$30,082.00 $2,640.56 $2,350.00 $4,200.00 $1,460.80 $1,258.00

$0.00 $0.00 $0.00 $4,200.00 $1,940.80 $1,258.00

$0.00 $0.00 $0.00 $4,200.00 $2,217.60 $1,258.00

$45,123.00 $3,960.84 $3,525.00 $5,775.00 $2,670.40 $1,729.75 $450.00 $660.00 $110.00

$30,082.00 $2,640.56 $2,350.00 $6,825.00 $3,150.40 $2,044.25 $300.00 $780.00 $130.00

$30,082.00 $2,640.56 $2,350.00 $7,875.00 $3,427.20 $2,358.75 $300.00 $900.00 $150.00

$105,287.00 $9,241.96 $8,225.00 $24,675.00 $11,465.60 $7,390.75 $0.00 $1,050.00 $2,820.00 $470.00

per month per month per hour

$15,041.00 $1,320.28 $1,175.00 $525.00 $4.00 $157.25 $0.00 $150.00 $60.00 $10.00 $2,000 $300.00 $2,700.00 $200.00
per year per year (part-time Y1) per year (compl. membership) per year (compl. membership)

of receipts per new user (one-time) $19.33/month/$1000 borrowed

Payments Vehicle Purchases Tax, Title, Registration Carshare Equipment Insurance Gas Maintenance Parking Signage Reservation Software In-car Hardware fee SmartCard Equipment Marketing Office (Rent, Utilities) Professional Services Wages Executive Director Membership Coordinator Interns Car Captains Benefits Merchant Service Fees DMV Records /Credit Check Debt Service Total Payments $600.00 $3,240.00 $40.00 $2,000.00 $900.00 $8,250.00 $1,200.00 $18,612.50 $13,000.00 $5,312.50 $100.00 $200.00 $6,409.38 $420.19 $1,350.00 $1,449.96 $118,825.75 $900.00 $8,100.00 $600.00 $18,712.50 $13,000.00 $5,312.50 $100.00 $300.00 $6,409.38 $682.45 $1,500.00 $1,449.96 $79,206.75 ($46,524.75) ($33,504.95) $15,660.00 $900.00 $8,100.00 $600.00 $18,812.50 $13,000.00 $5,312.50 $100.00 $400.00 $6,409.38 $998.76 $1,350.00 $1,449.96 $81,471.95 $900.00 $8,250.00 $1,600.00 $18,812.50 $13,000.00 $5,312.50 $100.00 $400.00 $6,409.38 $1,323.36 $900.00 $1,449.96 $47,604.00 $69,218.25 $4,848.56 $121,278.00 $10,562.24 $9,400.00 $13,650.00 $4,897.60 $4,088.50 $0.00 $1,200.00 $4,560.00 $260.00 $2,000.00 $3,600.00 $32,700.00 $4,000.00 $74,950.00 $52,000.00 $21,250.00 $400.00 $1,300.00 $25,637.50 $3,424.76 $5,100.00 $5,799.84 $327,108.44 $900.00 $8,250.00 $1,200.00 $22,250.00 $13,000.00 $8,750.00 $100.00 $400.00 $7,612.50 $1,527.69 $1,350.00 $1,449.96 $52,775.75 $44,728.25

$52,000.00 $21,250.00 $200.00 $200.00 35% of payroll 3.00% $30.00 $1,449.96

$900.00 $8,100.00 $600.00 $22,400.00 $13,000.00 $8,750.00 $100.00 $550.00 $7,612.50 $1,829.41 $1,350.00 $1,449.96 $108,245.86 ($20,882.86)

$900.00 $8,100.00 $600.00 $22,500.00 $13,000.00 $8,750.00 $100.00 $650.00 $7,612.50 $2,242.11 $900.00 $1,449.96 $92,606.78 $10,785.22

$900.00 $8,250.00 $1,600.00 $22,600.00 $13,000.00 $8,750.00 $100.00 $750.00 $7,612.50 $2,417.55 $10,200.00 $1,449.96 $105,113.52 $6,234.48

$3,600.00 $32,700.00 $4,000.00 $89,750.00 $52,000.00 $35,000.00 $400.00 $2,350.00 $30,450.00 $8,016.75 $13,800.00 $5,799.84 $358,741.90 $40,865.10

$226,565.00 $19,804.20 $17,625.00 $38,325.00 $16,363.20 $11,479.25 $0.00 $2,250.00 $7,380.00 $730.00 $2,000.00 $7,200.00 $65,400.00 $8,000.00 $164,700.00 $104,000.00 $56,250.00 $800.00 $3,650.00 $56,087.50 $11,441.51 $18,900.00 $11,599.68 $685,850.34 $45,713.66

Net Profit Loss

39

Chapter: 9| Financial Outlook