HONOLULU (KHON2) — An audit released on Dec. 4 says the City and County of Honolulu lost out on more than $450,000 in 2019 while Biki was allowed to use metered stalls and other spaces that previously generated revenue for the City.
Bikeshare Hawaii — structured as a nonprofit and going into business in a no-bid contract with the City — took in millions in revenue and paid a subsidiary to run the operation.
The auditor said:
“Combined with the exemption from city permit and concession fees, Bikeshare Hawaii is reaping significant benefits, with little return to the city and its taxpayers, beyond bike operations itself. Going forward, the city should re-evaluate its relationship, right-size the benefits and exemptions, and properly monitor its grant agreement with Bikeshare Hawaii.“Audit of the City’s Bikeshare Program, Resolution 19-290
The County responded by saying that the auditor overstated the annual revenue loss, but will look at whether early termination of the grant agreement is possible, after which Biki would have to pay fees.
To read the full audit, click here.
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