Title
Skinny Labs, LLC dba SPIN - RCS 63-2213 Shared Micromobility - Name Change Amendment (Ordinance S-50934)
Description
Request to authorize the City Manager, or his designee, to execute an amendment to Revenue Contract 157713 with Skinny Labs, Inc., dba SPIN to authorize a name change and entity ownership change to Bird Rides, Inc. dba Pheenix USH, LLC., for the Shared Micromobility Program. Further request to authorize the City Controller to disburse all funds related to this item. No additional funds are needed; request to continue using Ordinance S-49256.
Report
Summary
This contract provides a third party operator for the shared micromobility program which includes e-scooters, e-bikes, peddle bikes, and adaptive vehicles. The term is not to exceed five years with the goal to diversify transportation options and enhance connectivity. The operators provide an approved fleet mix within prescribed boundaries managed through geofencing technology. The program is offered at no cost to the City which receives revenues based on ridership with a minimum annual guarantee. The program's vision and goals includes reducing single-occupancy vehicle use, improving air quality, increasing transportation access in under served communities, and ensuring the safety of pedestrians and riders through safe bike infrastructure. Effective September 2023, Skinny Labs, Inc., dba SPIN became a wholly owned subsidiary of Bird Rides, Inc. Upon approval, it will continue as a separate operating entity doing business as Pheenix USH, LLC., with responsibility for all rights, interests, and obligations to the City. This market has traditionally been unstable, and many operators have restructured since the City's initial pilot program began in 2019. It is important for City Council to note that Bird Rides, Inc. dba Pheenix, USH, LLC., is currently in the midst of its own financial restructuring that the City is closely monitoring.
Contract Term
Upon approval, the contract term will remain unchanged, ending on Jan. 20, 2025, with an option to renew through Jan. 20, 2028.
Financial Impact
This is a revenue generating contract only. No funds are needed. Skinny Labs, Inc., dba SPIN is a wholly owned subsidiary of Bird Rides, Inc. effective September 2023 and will remain a separate operating entity doing business as Pheenix USH, LLC.
Concurrence/Previous Council Action
The City Council:
- Approved a Pilot Program extension (Ordinance G-6967) on March 2, 2022;
- Approved issuing a solicitation for operator for a comprehensive Micromobility program on May 11, 2022; and
- Approved contracts to operate the Shared Micromobility program with Skinny Labs, LLC., dba SPIN, and Neutron Holdings, Inc. dba LIME (Ordinance S-49256) on Dec. 14, 2022.
The Transportation, Infrastructure and Planning Subcommittee:
- Recommended approval of the Revenue Contract Solicitation on April 20, 2022, by a vote of 4-0.
Location
Council Districts: 7 and 8
Department
Responsible Department
This item is submitted by Deputy City Manager Alan Stephenson and the Street Transportation Department.