ericg
11-17-2008, 09:48 PM
This is a little something I've been working on. It's still shotty and the spread sheet didn't come out on here altogeter. Still, let me know what you think if it's positive, or if you're interested, call 321.506.1684.
Benign Energy Saving Time
MOV
Measurable Organizational Value : Motiv- Oriented Viability : Modus Operandi Vectura
“Delivering Generational Justice”
'The best way to get around'
Executive Summary
Hour Ride Share/ Auto Eco-operative a.k.a. B.E. Line provides an economically efficient and environmentally sound choice of public transportation that drives the market in the best direction. By giving commuters a better means of managing their time, travel rates, and concurrent economy, HRS delivers and affirms tomorrow’s energy market today. MOV will serve as the sole medium to utilize, market, and generate capital for electric, HHO, bio-fuel, and innovative vehicles – not currently produced or regulated by the governing industry’s wrought course and interests.
As entropic measures drastically increase due to the ecological gap between social and economic affairs, the utilization of resources must measure up to global means and standards. HRS is the missing link that will help bridge this gap by redefining the nature of our present socio-economic associations in order to reconstitute a national identity in consummate and universal terms. It delivers generational justice by cutting down on pollution, inconvenience, congestion, and transportation costs, while generating capital for this mandate. The overall objective is to liquidate polluting industries (Constitutionally) via stock in benign energy thereby initiating a socio- economic and political overhaul, and concurrently, the world’s ecological position.
Apart from the ‘Freedom Act’ recently introduced before Congress that would provide tax credit incentives for electric vehicles, any real or timely legislation has yet to be seen. The Electric Drive provisions in HR 6 are funneled into the Department of Energy’s National Energy Technology Laboratory where the mission statement still exclusively advocates coal and oil technologies. Auto shows are years late, and have only gone to show extremely high priced alternative vehicles purported to be on the market years from now after billions more are made from oil – not to mention the actual social facts and chain reactions that continue to affect the world in every way, shape, and form. Corporate entities such as Flexcar/ Zipcar and U-Haul have car share programs in various cities, but are unwittingly antiquated in their consumer model and rate or degree of orientation. As the oil/ auto industry's wrought course and interests continue to drive the US into the ground, we cannot afford to wait any longer for the industry to make par. Instead of regulating the present industry, MOV again provides the traction necessary to ground resources, legislation, and all in affinity – while in turn catalyzing and proliferating a mandate that adheres to practical solutions for ecological problems now. This is supported with mutual funds at the national level that will maintain a public rule in re-calibrating the national agenda - which would potentially generate the means to produce a timely, affordable, and ecological US vehicle with technology (MDI, Steorn etc) that, until now, has not been open to public use. Nature’s return on ignoble interest creates a deficit on life, and is cause for human peril. We are at the most critical pivot point in human existence. At the present rate we will continue to see detrimental impacts the world over. Where everything counts, time is the biggest factor. HRS gets to the point by creating a timely choice for practical mandates, just as mutual funds give common sense a chance at the national level. People simply have to go in order for the government to follow. What drives you?
Once established and self-sustaining a national campaign will build and generate this membership program extremely fast. It is an extremely primed, high growth market. MOV is extremely viable around any campus or city. Fiscal benefits at the national level (10–30+ locations) as a FP Cooperative include a return of capital interest and/ or yearly tax benefits and/ or mutual funds/ stock in production, and energy credits – making HRS potentially profitable for members. Members are also encouraged to be involved with legislation and social progression, creating a better informed and decisive new market and mainstream in our democracy. It may seem small initially, but will quickly yield big things as the concept is consummated, the ground work is laid, and good returns are guaranteed. HRS is formidable as it offers extremely competitive rates for city travel, satisfies an extremely viable, primed and practical niche in the marketplace, and takes an initiative that is both socially and economically conscious. HRS is more than a means from A to B, it is literally a revolution in every way, shape, and form.
Operations & Logistics
I have resolved to establish this program in Seattle as it is especially viable in having an ideal layout and mainly progressive (‘green’) demographic. The initial fleet of 45 – 60 vehicles will be a combination of the existing initiatives in the industry. 100% electric vehicles include Spark-EV’s, Hybrid Technologies’ LiV series, Phoenix Motors, Miles, ZENN, and various eastern manufacturers (YZFC, HYEV, CNDP). Bio-electric hybrid conversions from the Green Car Company will also be used in order to collaborate with and proliferate Seattle’s existing bio-fuel and conversion initiatives. 15-20 electric scooters include EVT, Oxygen, Kasea, models from Hybrid Technologies and Spark EV, among others. ES’s can travel 30-45+ miles at 30-45+ mph, and EC’s can travel 40-120+ miles at 35-80+ mph - ideal for most areas. These vehicles can easily be upgraded to better suit HRS. Public charging stations (city outlets) already exist in Seattle and aside from the base location more can be facilitated for ‘opportunity charging’ to increase their operation to optimal levels.
These vehicles, however, are primers. Being introduced in 2008 and 2009 – TH!NK, Spark-EV, Miles and ZENN’s new highway models, REVA, MDI, and a myriad of others will be available for regulation in the US – all of which will be relatively exclusive to HRS during their initial run. The demand has outgrown the supply. HRS is less expensive, more efficient, and more convenient than taking a bus, renting a car, or hailing a taxi. It is extremely novel, ecologically appealing, and practical for people with or without a vehicle to maintain. Seattleites 20 to 44 years old make up more than 280,000 or half of Seattle’s population. HRS will initially serve approximately 130 – 540 – 720< people each day, depending on time allotments. Vehicles will be ‘roundabouts’ concentrated initially in high transit locations throughout the city – expanding from the University District to Ballard, Downtown, Capitol Hill, Broadway, Seattle Center, West Seattle and beyond using area sampling. Members can pick up and drop off throughout the city using a user friendly map that indicates all routes and parking in each vehicle. Vehicles can be tracked online in real time using a GPS phone system (accutracking). A checklist will also be inside the vehicle for pick up/ drop off inspection. At any time, customers can call the office or go online (hrshome.com) to find an unoccupied vehicle’s current location and/ or create an allotted schedule. Optional delivery is available. Members will use smart cards/ electronic keys to activate their account for the time used. There are various transaction systems available for this (upswingcrm, allthingspos, hidcorp, khaprocesing, ddsystems). Vehicles will be maintained, delivered, and regulated with approximately 5-8 employees initially. I’m currently in correspondence with Kibble and Prentice, who will provide the insurance, though other viable insurance companies include Omaha National Indemnity and Marsh. The base location in the University District is now being scouted. I plan on working with SDOT and MKC, among many other organizations in order to make MOV as viable as possible. By consolidating all organizations in affinity, overdue and vital legislation can also be passed. Besides initial arrangements, business agreements and production will be decided on in the future when MOV is established with equity and banking capital.
Whether the business form is managed by a NP or simply a FP Co-operative lies with the best interests of HRS’s members and its capital. MOV is open to corroborate with EPA’s Office of Transportation & Air Quality - Smart Growth, Seattle City Light (REC), Seattle Department of Transportation, WA Transit Association, Intercity Transit, carsharing.net, Cooperative Auto Network, Puget Sound Regional Council, Washington Clean Tech Alliance, Commuter Choice, Climate Solutions, Puget Sound Clean City Coalition, Community Transportation Association of America, Surface Transportation Policy Project, Transit Oriented Development Advocates, Association for Commuter Transportation, Transportation Choices Coalition, Electric Drive Transportation Association, Seattle Electric Vehicle Association, Environmental Transportation Options, Green Congress, and a myriad of others. Cities following Seattle will also offer in-kind services and local advocates. It has been very well received by those in the business, and consulting services are readily available. Customers will be reached on many avenues online, local newspapers, on-campus/ city flyers, brochures, collaboration with local businesses, a myriad of organizations, sponsored radio stations such as KEXP, and word-of-mouth initially. Vehicles will also have the web-site and telephone number on them using car wraps.
Initial Investment/ Overhead (Yr)
30-40 Cars at $4,000 - $25,000 each: $500,000 - $900,000* (Financing avail except for Spark EV’s)
15-20 ES’s at $2,450 – $3,000: $36,750 - $60,000
Solar/ Stations: $100-180,000/ $10-20,000* (not nec initially)
Loan Repayment: $30,000*
Insurance: $84,000*
Parking/ Location (based on initial location): $12,600*
5 Employees: $60,000*
Accounts, H/Software/ Tracking/ Market/ Misc: $50,000*
= $881,600 – $1.2 million
I.I.: $225,000 – 300,000 (W/ a 10 Yr. Finance Plan)
10 Year Finance Plan & Down Payments
30-40 Cars: DP at $150,000 – $200,000; $32,000 – $70,000/ yr.*
15-20 Electric Scooters: DP at $15,000 – $20,000; $3,000 - $4,000/ yr.*
Solar/ Stations: DP at $50,000; $15,000/ yr.* (not nec initially)
Loan Repayment: $30,000/ yr.* (< 10 yrs)
Insurance: $84,000/ yr.*
Parking/ Location (based on initial location): $12,600/ yr.*
5 Employees: $60,000/ yr.*
Accounts, H/ Software/ Tracking/ Market/ Misc: DP at $50,000; $50,000/ yr.*
= DP at $225,000 – $300,000; $286,100 – $311,000/ yr.*
Earnings
@ $2/ hr for ESs; $3/ hr for Cars
60 EVs @ 8 hrs/ day: $38,400 mth ~ $460,800 yr
45EVs @ 12 hrs: $43,200 mth ~ $518,400 yr
Ea. add. ES: (8 hrs) $5,760 yr; (12 hrs) $8,640 yr
Ea. add. Car: (8 hrs) $8,640 yr; (12 hrs) $12,960 yr
@$3/ hr for ES’s; $4/ hr for Cars
45 EVs @12 hrs: $59,400/ mth ~ $712,800 yr
Ea. add. ES: (12 hrs) $12,960 yr
Ea. add. Car: (12 hrs) $17,280 yr
Profit
60 EVs @ $2 & $3/ hr (8 hrs): $149,800 yr
45 EVs @ $2 & $3/ hr (12 hrs): $232,300 yr
60 EVs @ $2 & $3/ hr (12 hrs): $380,200 yr (> $10 million/ yr @ 30 locations)
(before taxes, excluding fees and other considerations)
45 EVs @ $3 & $4/ hr (12 hrs): $426,700/ yr.
Mutual Funds – % of consummated stock and interest at the national level that wields informed consumer values.
Rates
30 cars @ 8 usable hrs/ day at $3/ hr x 30 days = $21,600/ mth.
15 ES’s @ 8 usable hrs/ day at $2/ hr x 30 = $7,200/ mth.
= $28,800/ mth ~ $345,600/ yr. – 286,100 (Overhead) = $59,500 (Profit)/ yr
30 cars @ 12 hrs/ day at $3/ hr x 30 days = $32,400/ mth.
15 ES’s @ 12 hrs/ day at $2/ hr x 30 days = $10,800/ mth.
= $43,200/ mth. ~ $518,400/ yr. – 286,100 (O) = $232,300 (P)/ yr
40 cars @ 8 hrs at $3 x 30 = $28,800/ mth.
20 ES’s @ 8 hrs at $2 x 30 = $9,600/ mth.
= $38,400/ mth. ~ $460,800/ yr. - 311,000 (O) = $149,800 (P)/ yr
40 cars @ 12 hrs/ day at $3/ hr x 30 days = $43,200/ mth.
20 ESs @ 12 hrs/ day at $2/ hr x 30 days = $14,400/ mth.
= $57,600/ mth ~ $691,200/ yr. – 311,000 (O) = $380,200 (P)/ yr
$11.4 million/ yr @ 30 locations ~ $38 million/ yr @ 100 locations
30 cars @ 16 hrs/ day at $3/ hr x 30 days = $43,200/ mth.
15 ES’s @16 hrs/ day at $2/ hr x 30 days = $14,400/ mth.
= $57,600/ mth. ~ $691,200/ yr.
In accordance with a 10-year finance plan, MOV is currently seeking an initial loan amount of three hundred thousand dollars. This covers the down payments for the vehicles, soft/ hardware, location, management, marketing, and miscellaneous expenses. Additional vehicles, EV legislation, tax incentives/ rebates, membership fees, and income taxes (NP, FP & Coop) have not been factored.
(60 V @ $2 & $3hr)
(Thou) 2008 2009 2010
Revenue 129 2,472 11,918
Expenses 103 1,477 6,271
Net Profit 25 994 5,646
Notes on the above summary
2008 is now at 33% of the fiscal year. No revenue is factored for the first 2–3 months to allow for establishment. 2008 is calculated at 3, 6, 8, and 10 hrs/ day each consecutive month from Sep to Dec, 12 hrs/ day beginning Jan 2009. 10 more locations will be created in 2009 applying the same method. 2010 is based on a growth rate of 2 locations per month totaling 31 active or 35 actual locations. Again, this does not consider additional vehicles, EV legislation/ tax incentives/ rebates, membership fees, or income taxes. Rates could also be increased by one dollar.
Lead Principal
Eric M. Guinn is 29 years old with 2 years of military service and one year of college. He has been nurturing this concept and tracking the industry quite extensively since 2005. He is very familiar with Seattle , WA having lived there for over a year. He currently lives in Satellite Beach, Florida and can be reached at emckannon@yahoo.com or 321-506-1684.
MOV - Measurable Organizational Value : Motiv- Oriented Viability : Modus Operandi Vectura
MOV FINANCIAL- Initial Fiscal Model
LOAN 300,000
DOWN PAYMENTS
Vehicles 200,000
Location/ Employees/ Soft/ Harware/ Market/ Misc. 100,000
2008
JAN FEB MAR APR MAY JUNE JULY AUG SEP OCT NOV DEC TOTAL
REVENUE 000,000 0 000,000 000,000 14,400 28,800 38,400 48,000 129,600
EXPENSE 0 300,000 - - 25,916 25,916 25,916 25,916 103,664
PROFIT 0 0 0 0 - - 3,852 22,084 25,936
2009
REVENUE 57,600 57,600 57,600 72,000 100,800 139,200 187,200 244,800 302,400 360,000 417,600 475,200 2,472,000
LOAN 300,000 300,000 300,000 300,000 300,000 300,000 300,000 300,000 300,000 300,000 11
EXPENSE 25,916 25,916 25,916 51,832 77,748 103,664 129,580 155,496 181,412 207,328 233,244 259,160 1,477,212
PROFIT 31,684 31,684 31,684 20,168 23,052 35,536 57,620 89,304 120,988 152,672 184,356 216,040 994,788
2010
REVENUE
532,800
576,000
633,600
710,400
796,800
892,800
1,008,000
1,123,20
1,238,40
1,353,6
1,468,8
1,584,0
11,918,400
LOAN 600,000
600,000
600,000 600,000 600,000 600,000 600,000 600,000 600,000 600,000 600,000 600,000 35
EXPENSE 285,076 285,076 336,908 388,740 440,572 492,404 544,236 596,068 647,900 699,732 751,564 803,396 6,271,672
PROFIT 247,724 290,924 296,692 321,660 356,228 400,396 463,764 527,132 590,500 653,868 717,236 780,604 5,646,728
Notes From Above
Sep 2008: 40 Cars & 20 ESs at 3 hrs each day; Oct at 6 hrs; Nov at 8 hrs; and December is at 10 hrs.
Jan 2009 < is at 12 hrs for initial location. Each month from Feb through Nov receives $300,000 loan totaling 11 locations at the end of 2009. Each location starts 2 months after its loan is received (April starts the 2nd location, May the 3rd and so on). 2010 is calculated at 2 locations each month. May 2010 marks when all 2009 startups are at 12 hrs ($57,600/ mth x 11 = $633,600 – $285,076 (O)= $348,524 (P)/ mth ~ $4.1 million/ yr).
Notes
Customer’s monthly bill.
Weekly rates. Monthly rates. After 30 hrs 1$ hour? Set Schedules. Routine vs random.
Locations – University District - Down Town N-S – Broadway – Greenlake – Ballard - West Seattle… Certain parking lots/ Zoning etc
$50 - 80 month for bus pass.
45 vehicles initially. 12 hours day/ people = 540.
60 vehicles. 12 hrs day/ people = 720 commuters a day.
• Update contact with Insurance – Approx $100,000/ yr (Kibble & Prentice)
• Carshare Tax (www.carsharing.net/news): Non-applicable to coop.
• Rebates/ Incentives – See Below (www.hybrid-car.org, http://alternativefuels.about.com/od/incentiveprograms/a/taxcredits.htm, http://www.eere.energy.gov/afdc/progs/view_all.php/WA/0 etc)
• On-Street Parking Program (SDOT)
60 EVs @ 10 hrs or $20 (ES)/ $30 (Car) per day ea = $576,000/ yr - $311,000 (O) = $265,000 (P)
$50 (ES) - $70 (Car)/ mth for 1 hour/ day or 30 hrs/ mth = $547,200/ $236,200 (P)/ yr
@ 720 customers (12 hrs, 60 EVs)
@ min of $200,000 (P) ea location x 30 locations in < 3 yrs = $6 mill (P)/ yr; 100 locations in 5 yrs = 20 mill+/ yr
• Survey Networks Seattle
8 different people a day per car. 30 cars. 240 people a day. 1,680 people a week. 7,200 a month...
8 per ES. 15 ESs. 120 a day. 840 a week. 3,600 a month…
Car Share Programs: Mobility Switzerland (@ 12+ hrs), communitycarshare.com (Bellingham), CAN, SFCS, igocars.org, Flex-Zipcar: Phone/ card activation & under 21.
Base Location: University Way NE & NE 50th Street
Making the Parking System Work
University District Program: Randy.wiger@seattle.gov 206-684-8186
SDOT Car Share: David.allen@seattle.gov 206-733-9302
Puget Sound Regional Council – Custom Data/ UrbanSim: (Peter) Pcaballero@psrc.org 206.587.4818 – Senior Modelers/ Travel Model: (Mark) Mcharnews@prsc.org 206.971.3285
NCBA: http://www.ncba.coop/abcoop.cfm
Upgrades: SEVA, GCC, MCE, SEVA
Marketing: Wraps, brochures, air etc
Finances: Ea Make
Routes: SDOT/ Working Maps (Laminated)/ Layovers – Carshare On-Street Parking Policy
Infrastructure: SDOT/ National HW
Locations: PSRC – Base/ Parking/ Cells
Member Interface: System/ Accounting – Carsharing.net/tools
Website: Develop
Employees: Online, Paper
(Management/ Marketing Team?)
EIN # 39-2052647 (MOV)
SBA – Vicki Peake (5.5.08)
321-433-5570
BCC Bldg 10; Room 122
Numerica Credit Union:
Kandi Johnson
Business Development Officer
kjohnson@numericacu.com
(509) 536-6142 Office
(208) 704-3399 Cell
(509) 462-6258 FAX
Ryan Douglas, CLCS
Account Executive, P&C Division
Kibble & Prentice, a USI company
206-577-6856 DIRECT
206-508-6082 FAX
601 Union St., Suite 1000
Seattle, WA 98101-4064
ryan.douglas@kpcom.com
http://www.eere.energy.gov/afdc/progs/view_all.php/WA/0
State Incentives
Alternative Fuel Vehicle (AFV) and Hybrid Electric Vehicle (HEV) Tax Exemption
Beginning January 1, 2009, new passenger cars, light-duty trucks, and medium-duty passenger vehicles that are dedicated AFVs are exempt from the state sales and use tax. Qualified vehicles must operate exclusively on natural gas, propane, hydrogen, or electricity, meet the California motor vehicle emissions standards effective January 1, 2005, and comply with the rules of the Washington Department of Ecology. Additionally, new passenger cars, light-duty trucks, and medium-duty passenger vehicles that utilize hybrid electric technology and have a U.S. Environmental Protection Agency estimated highway fuel economy of at least 40 miles per gallon are exempt from state sales and use tax. This tax exemption expires January 1, 2011. (Reference Revised Code of Washington 82.08.809 and 82.08.813)
Electric and Plug-In Hybrid Electric Vehicle Demonstration Grants
The Vehicle Electrification Demonstration Grant Program is established within the Department of Community, Trade, and Economic Development (DCTED), and administered by the Director of the DCTED. Eligible applicants are state agencies, public school districts, public utility districts, or political subdivisions of the state. Grants may be awarded to projects involving the purchase or conversion of existing vehicles to plug-in hybrid electric vehicles or battery electric vehicles for use in an applicant's fleet or operations; additional eligibility requirements apply. (Reference House Bill 1303, 2007)
Electric Vehicle (EV) Recharging at State Buildings
Recognizing that it is in the state's interest and to the benefit of the public to encourage the use of EVs to reduce emissions and improve air quality, publicly and privately owned plug-in EVs may be recharged at state office locations where the vehicles are used for state business, commuter vehicles, or conducting business with the state. (Reference House Bill 1303, 2007, and Revised Code of Washington 43.01)
http://alternativefuels.about.com/od/incentiveprograms/a/taxcredits.htm
Electric Vehicle Tax Credit
This credit is due to expire in 2007 and was reduced by 75 percent in 2006, so it would be wise to check with your tax professional to clarify the portion that could apply to your situation. Overall, the credit equals 10 percent of the cost of the vehicle up to $4,000, and the vehicle must be powered primarily by an electric motor drawing current from batteries or other portable sources of electricity. Business or personal vehicles qualify.
Additionally, for qualified electric vehicle recharging used in a trade or business, a tax deduction of up to $100,000 per location is available. More information is available here.
United States (Federal) Incentives and Laws
Electric Vehicle Tax Credit
A tax credit for the purchase of qualified electric vehicles is provided under Section 179A of the Energy Policy Act of 1992; it was extended through 2007 by the Working Families Tax Relief Act of 2004. IRS Form 8834 (PDF 368 KB) can be used to calculate the credit for qualified electric vehicles placed in service. Download Adobe Reader. The credit amount equals 10% of the cost of the vehicle up to $4,000. This credit is scheduled to be reduced by 75% in 2006 and expire in 2007. To qualify for the credit, the vehicle must be powered primarily by an electric motor drawing current from batteries or other portable sources of electricity. All dedicated, plug-in-only electric vehicles qualify for the tax credit, which is available for business or personal vehicles. A tax deduction of up to $100,000 per location is available for qualified electric vehicle recharging property used in a trade or business.
http://alternativefuels.about.com/gi/dynamic/offsite.htm?zi=1/XJ/Ya&sdn=alternativefuels&cdn=autos&tm=4&gps=132_165_1276_581&f=11&su=p284.8.150.ip_&tt=14&bt=0&bts=0&zu=http%3A//www.eere.energy.gov/afdc/laws/incen_laws.
United States (Federal) Incentives and Laws
Loan Guarantee Program
The U.S. Department of Energy (DOE) provides loan guarantees to eligible projects that reduce air pollution and greenhouse gases, and support early commercial use of advanced technologies, including biofuels and alternative fuel vehicles. The loan guarantee program is not intended for research and development projects. DOE may issue loan guarantees for up to 100% of the amount of the loan for an eligible project. For loan guarantees of over 80%, the loan must be issued and funded by the Treasury Department's Federal Financing Bank. For additional program guidelines and solicitation announcements, please visit the Loan Guarantee Program Web site. (Reference 42 U.S. Code 16513)
Benign Energy Saving Time
MOV
Measurable Organizational Value : Motiv- Oriented Viability : Modus Operandi Vectura
“Delivering Generational Justice”
'The best way to get around'
Executive Summary
Hour Ride Share/ Auto Eco-operative a.k.a. B.E. Line provides an economically efficient and environmentally sound choice of public transportation that drives the market in the best direction. By giving commuters a better means of managing their time, travel rates, and concurrent economy, HRS delivers and affirms tomorrow’s energy market today. MOV will serve as the sole medium to utilize, market, and generate capital for electric, HHO, bio-fuel, and innovative vehicles – not currently produced or regulated by the governing industry’s wrought course and interests.
As entropic measures drastically increase due to the ecological gap between social and economic affairs, the utilization of resources must measure up to global means and standards. HRS is the missing link that will help bridge this gap by redefining the nature of our present socio-economic associations in order to reconstitute a national identity in consummate and universal terms. It delivers generational justice by cutting down on pollution, inconvenience, congestion, and transportation costs, while generating capital for this mandate. The overall objective is to liquidate polluting industries (Constitutionally) via stock in benign energy thereby initiating a socio- economic and political overhaul, and concurrently, the world’s ecological position.
Apart from the ‘Freedom Act’ recently introduced before Congress that would provide tax credit incentives for electric vehicles, any real or timely legislation has yet to be seen. The Electric Drive provisions in HR 6 are funneled into the Department of Energy’s National Energy Technology Laboratory where the mission statement still exclusively advocates coal and oil technologies. Auto shows are years late, and have only gone to show extremely high priced alternative vehicles purported to be on the market years from now after billions more are made from oil – not to mention the actual social facts and chain reactions that continue to affect the world in every way, shape, and form. Corporate entities such as Flexcar/ Zipcar and U-Haul have car share programs in various cities, but are unwittingly antiquated in their consumer model and rate or degree of orientation. As the oil/ auto industry's wrought course and interests continue to drive the US into the ground, we cannot afford to wait any longer for the industry to make par. Instead of regulating the present industry, MOV again provides the traction necessary to ground resources, legislation, and all in affinity – while in turn catalyzing and proliferating a mandate that adheres to practical solutions for ecological problems now. This is supported with mutual funds at the national level that will maintain a public rule in re-calibrating the national agenda - which would potentially generate the means to produce a timely, affordable, and ecological US vehicle with technology (MDI, Steorn etc) that, until now, has not been open to public use. Nature’s return on ignoble interest creates a deficit on life, and is cause for human peril. We are at the most critical pivot point in human existence. At the present rate we will continue to see detrimental impacts the world over. Where everything counts, time is the biggest factor. HRS gets to the point by creating a timely choice for practical mandates, just as mutual funds give common sense a chance at the national level. People simply have to go in order for the government to follow. What drives you?
Once established and self-sustaining a national campaign will build and generate this membership program extremely fast. It is an extremely primed, high growth market. MOV is extremely viable around any campus or city. Fiscal benefits at the national level (10–30+ locations) as a FP Cooperative include a return of capital interest and/ or yearly tax benefits and/ or mutual funds/ stock in production, and energy credits – making HRS potentially profitable for members. Members are also encouraged to be involved with legislation and social progression, creating a better informed and decisive new market and mainstream in our democracy. It may seem small initially, but will quickly yield big things as the concept is consummated, the ground work is laid, and good returns are guaranteed. HRS is formidable as it offers extremely competitive rates for city travel, satisfies an extremely viable, primed and practical niche in the marketplace, and takes an initiative that is both socially and economically conscious. HRS is more than a means from A to B, it is literally a revolution in every way, shape, and form.
Operations & Logistics
I have resolved to establish this program in Seattle as it is especially viable in having an ideal layout and mainly progressive (‘green’) demographic. The initial fleet of 45 – 60 vehicles will be a combination of the existing initiatives in the industry. 100% electric vehicles include Spark-EV’s, Hybrid Technologies’ LiV series, Phoenix Motors, Miles, ZENN, and various eastern manufacturers (YZFC, HYEV, CNDP). Bio-electric hybrid conversions from the Green Car Company will also be used in order to collaborate with and proliferate Seattle’s existing bio-fuel and conversion initiatives. 15-20 electric scooters include EVT, Oxygen, Kasea, models from Hybrid Technologies and Spark EV, among others. ES’s can travel 30-45+ miles at 30-45+ mph, and EC’s can travel 40-120+ miles at 35-80+ mph - ideal for most areas. These vehicles can easily be upgraded to better suit HRS. Public charging stations (city outlets) already exist in Seattle and aside from the base location more can be facilitated for ‘opportunity charging’ to increase their operation to optimal levels.
These vehicles, however, are primers. Being introduced in 2008 and 2009 – TH!NK, Spark-EV, Miles and ZENN’s new highway models, REVA, MDI, and a myriad of others will be available for regulation in the US – all of which will be relatively exclusive to HRS during their initial run. The demand has outgrown the supply. HRS is less expensive, more efficient, and more convenient than taking a bus, renting a car, or hailing a taxi. It is extremely novel, ecologically appealing, and practical for people with or without a vehicle to maintain. Seattleites 20 to 44 years old make up more than 280,000 or half of Seattle’s population. HRS will initially serve approximately 130 – 540 – 720< people each day, depending on time allotments. Vehicles will be ‘roundabouts’ concentrated initially in high transit locations throughout the city – expanding from the University District to Ballard, Downtown, Capitol Hill, Broadway, Seattle Center, West Seattle and beyond using area sampling. Members can pick up and drop off throughout the city using a user friendly map that indicates all routes and parking in each vehicle. Vehicles can be tracked online in real time using a GPS phone system (accutracking). A checklist will also be inside the vehicle for pick up/ drop off inspection. At any time, customers can call the office or go online (hrshome.com) to find an unoccupied vehicle’s current location and/ or create an allotted schedule. Optional delivery is available. Members will use smart cards/ electronic keys to activate their account for the time used. There are various transaction systems available for this (upswingcrm, allthingspos, hidcorp, khaprocesing, ddsystems). Vehicles will be maintained, delivered, and regulated with approximately 5-8 employees initially. I’m currently in correspondence with Kibble and Prentice, who will provide the insurance, though other viable insurance companies include Omaha National Indemnity and Marsh. The base location in the University District is now being scouted. I plan on working with SDOT and MKC, among many other organizations in order to make MOV as viable as possible. By consolidating all organizations in affinity, overdue and vital legislation can also be passed. Besides initial arrangements, business agreements and production will be decided on in the future when MOV is established with equity and banking capital.
Whether the business form is managed by a NP or simply a FP Co-operative lies with the best interests of HRS’s members and its capital. MOV is open to corroborate with EPA’s Office of Transportation & Air Quality - Smart Growth, Seattle City Light (REC), Seattle Department of Transportation, WA Transit Association, Intercity Transit, carsharing.net, Cooperative Auto Network, Puget Sound Regional Council, Washington Clean Tech Alliance, Commuter Choice, Climate Solutions, Puget Sound Clean City Coalition, Community Transportation Association of America, Surface Transportation Policy Project, Transit Oriented Development Advocates, Association for Commuter Transportation, Transportation Choices Coalition, Electric Drive Transportation Association, Seattle Electric Vehicle Association, Environmental Transportation Options, Green Congress, and a myriad of others. Cities following Seattle will also offer in-kind services and local advocates. It has been very well received by those in the business, and consulting services are readily available. Customers will be reached on many avenues online, local newspapers, on-campus/ city flyers, brochures, collaboration with local businesses, a myriad of organizations, sponsored radio stations such as KEXP, and word-of-mouth initially. Vehicles will also have the web-site and telephone number on them using car wraps.
Initial Investment/ Overhead (Yr)
30-40 Cars at $4,000 - $25,000 each: $500,000 - $900,000* (Financing avail except for Spark EV’s)
15-20 ES’s at $2,450 – $3,000: $36,750 - $60,000
Solar/ Stations: $100-180,000/ $10-20,000* (not nec initially)
Loan Repayment: $30,000*
Insurance: $84,000*
Parking/ Location (based on initial location): $12,600*
5 Employees: $60,000*
Accounts, H/Software/ Tracking/ Market/ Misc: $50,000*
= $881,600 – $1.2 million
I.I.: $225,000 – 300,000 (W/ a 10 Yr. Finance Plan)
10 Year Finance Plan & Down Payments
30-40 Cars: DP at $150,000 – $200,000; $32,000 – $70,000/ yr.*
15-20 Electric Scooters: DP at $15,000 – $20,000; $3,000 - $4,000/ yr.*
Solar/ Stations: DP at $50,000; $15,000/ yr.* (not nec initially)
Loan Repayment: $30,000/ yr.* (< 10 yrs)
Insurance: $84,000/ yr.*
Parking/ Location (based on initial location): $12,600/ yr.*
5 Employees: $60,000/ yr.*
Accounts, H/ Software/ Tracking/ Market/ Misc: DP at $50,000; $50,000/ yr.*
= DP at $225,000 – $300,000; $286,100 – $311,000/ yr.*
Earnings
@ $2/ hr for ESs; $3/ hr for Cars
60 EVs @ 8 hrs/ day: $38,400 mth ~ $460,800 yr
45EVs @ 12 hrs: $43,200 mth ~ $518,400 yr
Ea. add. ES: (8 hrs) $5,760 yr; (12 hrs) $8,640 yr
Ea. add. Car: (8 hrs) $8,640 yr; (12 hrs) $12,960 yr
@$3/ hr for ES’s; $4/ hr for Cars
45 EVs @12 hrs: $59,400/ mth ~ $712,800 yr
Ea. add. ES: (12 hrs) $12,960 yr
Ea. add. Car: (12 hrs) $17,280 yr
Profit
60 EVs @ $2 & $3/ hr (8 hrs): $149,800 yr
45 EVs @ $2 & $3/ hr (12 hrs): $232,300 yr
60 EVs @ $2 & $3/ hr (12 hrs): $380,200 yr (> $10 million/ yr @ 30 locations)
(before taxes, excluding fees and other considerations)
45 EVs @ $3 & $4/ hr (12 hrs): $426,700/ yr.
Mutual Funds – % of consummated stock and interest at the national level that wields informed consumer values.
Rates
30 cars @ 8 usable hrs/ day at $3/ hr x 30 days = $21,600/ mth.
15 ES’s @ 8 usable hrs/ day at $2/ hr x 30 = $7,200/ mth.
= $28,800/ mth ~ $345,600/ yr. – 286,100 (Overhead) = $59,500 (Profit)/ yr
30 cars @ 12 hrs/ day at $3/ hr x 30 days = $32,400/ mth.
15 ES’s @ 12 hrs/ day at $2/ hr x 30 days = $10,800/ mth.
= $43,200/ mth. ~ $518,400/ yr. – 286,100 (O) = $232,300 (P)/ yr
40 cars @ 8 hrs at $3 x 30 = $28,800/ mth.
20 ES’s @ 8 hrs at $2 x 30 = $9,600/ mth.
= $38,400/ mth. ~ $460,800/ yr. - 311,000 (O) = $149,800 (P)/ yr
40 cars @ 12 hrs/ day at $3/ hr x 30 days = $43,200/ mth.
20 ESs @ 12 hrs/ day at $2/ hr x 30 days = $14,400/ mth.
= $57,600/ mth ~ $691,200/ yr. – 311,000 (O) = $380,200 (P)/ yr
$11.4 million/ yr @ 30 locations ~ $38 million/ yr @ 100 locations
30 cars @ 16 hrs/ day at $3/ hr x 30 days = $43,200/ mth.
15 ES’s @16 hrs/ day at $2/ hr x 30 days = $14,400/ mth.
= $57,600/ mth. ~ $691,200/ yr.
In accordance with a 10-year finance plan, MOV is currently seeking an initial loan amount of three hundred thousand dollars. This covers the down payments for the vehicles, soft/ hardware, location, management, marketing, and miscellaneous expenses. Additional vehicles, EV legislation, tax incentives/ rebates, membership fees, and income taxes (NP, FP & Coop) have not been factored.
(60 V @ $2 & $3hr)
(Thou) 2008 2009 2010
Revenue 129 2,472 11,918
Expenses 103 1,477 6,271
Net Profit 25 994 5,646
Notes on the above summary
2008 is now at 33% of the fiscal year. No revenue is factored for the first 2–3 months to allow for establishment. 2008 is calculated at 3, 6, 8, and 10 hrs/ day each consecutive month from Sep to Dec, 12 hrs/ day beginning Jan 2009. 10 more locations will be created in 2009 applying the same method. 2010 is based on a growth rate of 2 locations per month totaling 31 active or 35 actual locations. Again, this does not consider additional vehicles, EV legislation/ tax incentives/ rebates, membership fees, or income taxes. Rates could also be increased by one dollar.
Lead Principal
Eric M. Guinn is 29 years old with 2 years of military service and one year of college. He has been nurturing this concept and tracking the industry quite extensively since 2005. He is very familiar with Seattle , WA having lived there for over a year. He currently lives in Satellite Beach, Florida and can be reached at emckannon@yahoo.com or 321-506-1684.
MOV - Measurable Organizational Value : Motiv- Oriented Viability : Modus Operandi Vectura
MOV FINANCIAL- Initial Fiscal Model
LOAN 300,000
DOWN PAYMENTS
Vehicles 200,000
Location/ Employees/ Soft/ Harware/ Market/ Misc. 100,000
2008
JAN FEB MAR APR MAY JUNE JULY AUG SEP OCT NOV DEC TOTAL
REVENUE 000,000 0 000,000 000,000 14,400 28,800 38,400 48,000 129,600
EXPENSE 0 300,000 - - 25,916 25,916 25,916 25,916 103,664
PROFIT 0 0 0 0 - - 3,852 22,084 25,936
2009
REVENUE 57,600 57,600 57,600 72,000 100,800 139,200 187,200 244,800 302,400 360,000 417,600 475,200 2,472,000
LOAN 300,000 300,000 300,000 300,000 300,000 300,000 300,000 300,000 300,000 300,000 11
EXPENSE 25,916 25,916 25,916 51,832 77,748 103,664 129,580 155,496 181,412 207,328 233,244 259,160 1,477,212
PROFIT 31,684 31,684 31,684 20,168 23,052 35,536 57,620 89,304 120,988 152,672 184,356 216,040 994,788
2010
REVENUE
532,800
576,000
633,600
710,400
796,800
892,800
1,008,000
1,123,20
1,238,40
1,353,6
1,468,8
1,584,0
11,918,400
LOAN 600,000
600,000
600,000 600,000 600,000 600,000 600,000 600,000 600,000 600,000 600,000 600,000 35
EXPENSE 285,076 285,076 336,908 388,740 440,572 492,404 544,236 596,068 647,900 699,732 751,564 803,396 6,271,672
PROFIT 247,724 290,924 296,692 321,660 356,228 400,396 463,764 527,132 590,500 653,868 717,236 780,604 5,646,728
Notes From Above
Sep 2008: 40 Cars & 20 ESs at 3 hrs each day; Oct at 6 hrs; Nov at 8 hrs; and December is at 10 hrs.
Jan 2009 < is at 12 hrs for initial location. Each month from Feb through Nov receives $300,000 loan totaling 11 locations at the end of 2009. Each location starts 2 months after its loan is received (April starts the 2nd location, May the 3rd and so on). 2010 is calculated at 2 locations each month. May 2010 marks when all 2009 startups are at 12 hrs ($57,600/ mth x 11 = $633,600 – $285,076 (O)= $348,524 (P)/ mth ~ $4.1 million/ yr).
Notes
Customer’s monthly bill.
Weekly rates. Monthly rates. After 30 hrs 1$ hour? Set Schedules. Routine vs random.
Locations – University District - Down Town N-S – Broadway – Greenlake – Ballard - West Seattle… Certain parking lots/ Zoning etc
$50 - 80 month for bus pass.
45 vehicles initially. 12 hours day/ people = 540.
60 vehicles. 12 hrs day/ people = 720 commuters a day.
• Update contact with Insurance – Approx $100,000/ yr (Kibble & Prentice)
• Carshare Tax (www.carsharing.net/news): Non-applicable to coop.
• Rebates/ Incentives – See Below (www.hybrid-car.org, http://alternativefuels.about.com/od/incentiveprograms/a/taxcredits.htm, http://www.eere.energy.gov/afdc/progs/view_all.php/WA/0 etc)
• On-Street Parking Program (SDOT)
60 EVs @ 10 hrs or $20 (ES)/ $30 (Car) per day ea = $576,000/ yr - $311,000 (O) = $265,000 (P)
$50 (ES) - $70 (Car)/ mth for 1 hour/ day or 30 hrs/ mth = $547,200/ $236,200 (P)/ yr
@ 720 customers (12 hrs, 60 EVs)
@ min of $200,000 (P) ea location x 30 locations in < 3 yrs = $6 mill (P)/ yr; 100 locations in 5 yrs = 20 mill+/ yr
• Survey Networks Seattle
8 different people a day per car. 30 cars. 240 people a day. 1,680 people a week. 7,200 a month...
8 per ES. 15 ESs. 120 a day. 840 a week. 3,600 a month…
Car Share Programs: Mobility Switzerland (@ 12+ hrs), communitycarshare.com (Bellingham), CAN, SFCS, igocars.org, Flex-Zipcar: Phone/ card activation & under 21.
Base Location: University Way NE & NE 50th Street
Making the Parking System Work
University District Program: Randy.wiger@seattle.gov 206-684-8186
SDOT Car Share: David.allen@seattle.gov 206-733-9302
Puget Sound Regional Council – Custom Data/ UrbanSim: (Peter) Pcaballero@psrc.org 206.587.4818 – Senior Modelers/ Travel Model: (Mark) Mcharnews@prsc.org 206.971.3285
NCBA: http://www.ncba.coop/abcoop.cfm
Upgrades: SEVA, GCC, MCE, SEVA
Marketing: Wraps, brochures, air etc
Finances: Ea Make
Routes: SDOT/ Working Maps (Laminated)/ Layovers – Carshare On-Street Parking Policy
Infrastructure: SDOT/ National HW
Locations: PSRC – Base/ Parking/ Cells
Member Interface: System/ Accounting – Carsharing.net/tools
Website: Develop
Employees: Online, Paper
(Management/ Marketing Team?)
EIN # 39-2052647 (MOV)
SBA – Vicki Peake (5.5.08)
321-433-5570
BCC Bldg 10; Room 122
Numerica Credit Union:
Kandi Johnson
Business Development Officer
kjohnson@numericacu.com
(509) 536-6142 Office
(208) 704-3399 Cell
(509) 462-6258 FAX
Ryan Douglas, CLCS
Account Executive, P&C Division
Kibble & Prentice, a USI company
206-577-6856 DIRECT
206-508-6082 FAX
601 Union St., Suite 1000
Seattle, WA 98101-4064
ryan.douglas@kpcom.com
http://www.eere.energy.gov/afdc/progs/view_all.php/WA/0
State Incentives
Alternative Fuel Vehicle (AFV) and Hybrid Electric Vehicle (HEV) Tax Exemption
Beginning January 1, 2009, new passenger cars, light-duty trucks, and medium-duty passenger vehicles that are dedicated AFVs are exempt from the state sales and use tax. Qualified vehicles must operate exclusively on natural gas, propane, hydrogen, or electricity, meet the California motor vehicle emissions standards effective January 1, 2005, and comply with the rules of the Washington Department of Ecology. Additionally, new passenger cars, light-duty trucks, and medium-duty passenger vehicles that utilize hybrid electric technology and have a U.S. Environmental Protection Agency estimated highway fuel economy of at least 40 miles per gallon are exempt from state sales and use tax. This tax exemption expires January 1, 2011. (Reference Revised Code of Washington 82.08.809 and 82.08.813)
Electric and Plug-In Hybrid Electric Vehicle Demonstration Grants
The Vehicle Electrification Demonstration Grant Program is established within the Department of Community, Trade, and Economic Development (DCTED), and administered by the Director of the DCTED. Eligible applicants are state agencies, public school districts, public utility districts, or political subdivisions of the state. Grants may be awarded to projects involving the purchase or conversion of existing vehicles to plug-in hybrid electric vehicles or battery electric vehicles for use in an applicant's fleet or operations; additional eligibility requirements apply. (Reference House Bill 1303, 2007)
Electric Vehicle (EV) Recharging at State Buildings
Recognizing that it is in the state's interest and to the benefit of the public to encourage the use of EVs to reduce emissions and improve air quality, publicly and privately owned plug-in EVs may be recharged at state office locations where the vehicles are used for state business, commuter vehicles, or conducting business with the state. (Reference House Bill 1303, 2007, and Revised Code of Washington 43.01)
http://alternativefuels.about.com/od/incentiveprograms/a/taxcredits.htm
Electric Vehicle Tax Credit
This credit is due to expire in 2007 and was reduced by 75 percent in 2006, so it would be wise to check with your tax professional to clarify the portion that could apply to your situation. Overall, the credit equals 10 percent of the cost of the vehicle up to $4,000, and the vehicle must be powered primarily by an electric motor drawing current from batteries or other portable sources of electricity. Business or personal vehicles qualify.
Additionally, for qualified electric vehicle recharging used in a trade or business, a tax deduction of up to $100,000 per location is available. More information is available here.
United States (Federal) Incentives and Laws
Electric Vehicle Tax Credit
A tax credit for the purchase of qualified electric vehicles is provided under Section 179A of the Energy Policy Act of 1992; it was extended through 2007 by the Working Families Tax Relief Act of 2004. IRS Form 8834 (PDF 368 KB) can be used to calculate the credit for qualified electric vehicles placed in service. Download Adobe Reader. The credit amount equals 10% of the cost of the vehicle up to $4,000. This credit is scheduled to be reduced by 75% in 2006 and expire in 2007. To qualify for the credit, the vehicle must be powered primarily by an electric motor drawing current from batteries or other portable sources of electricity. All dedicated, plug-in-only electric vehicles qualify for the tax credit, which is available for business or personal vehicles. A tax deduction of up to $100,000 per location is available for qualified electric vehicle recharging property used in a trade or business.
http://alternativefuels.about.com/gi/dynamic/offsite.htm?zi=1/XJ/Ya&sdn=alternativefuels&cdn=autos&tm=4&gps=132_165_1276_581&f=11&su=p284.8.150.ip_&tt=14&bt=0&bts=0&zu=http%3A//www.eere.energy.gov/afdc/laws/incen_laws.
United States (Federal) Incentives and Laws
Loan Guarantee Program
The U.S. Department of Energy (DOE) provides loan guarantees to eligible projects that reduce air pollution and greenhouse gases, and support early commercial use of advanced technologies, including biofuels and alternative fuel vehicles. The loan guarantee program is not intended for research and development projects. DOE may issue loan guarantees for up to 100% of the amount of the loan for an eligible project. For loan guarantees of over 80%, the loan must be issued and funded by the Treasury Department's Federal Financing Bank. For additional program guidelines and solicitation announcements, please visit the Loan Guarantee Program Web site. (Reference 42 U.S. Code 16513)