Explanation
1. BACKGROUND
This ordinance authorizes the Director of Public Service, or a designee, to enter into agreements with Pheenix USH LLC dba Spin and to accept payments from the same relative to the Columbus and Central Ohio Shared Mobility Program.
The Department of Public Service, Office of Support Services previously issued a Request for Proposals (RFP) seeking responses from qualified vendors to potentially manage, operate, and expand a shared micromobility program in the City of Columbus and several other neighboring jurisdictions. The RFP was formally advertised on the Vendor Services and Bonfire website from June 27, 2024, to September 12, 2024, and garnered six (6) responses. All proposals were deemed responsive and were fully evaluated when the Evaluation Committee met on September 19, 2024.
The three highest scoring firms, Neutron Holdings Inc. dba Lime, Spin, and VeoRide Inc. dba Veo, were then invited to interview with the Evaluation Committee between October 10, 2024, and October 21, 2024. Based on those interviews, the Evaluation Committee narrowed the field down to two firms: Spin and Veo. The Evaluation Committee reconvened on October 31, 2024, to consider additional information provided by the two finalists and ultimately selected Veo to oversee the Columbus and Central Ohio Shared Mobility Program.
Following the passage of Ordinance 3366-2024, which authorized the Director of Public Service to enter into a revenue sharing agreement with Veo, Spin initiated legal action in the United States District Court for the Southern District of Ohio, in Pheenix USH LLC dba Spin v. City of Columbus, et al., Case No. 2:24-cv-04290, challenging the City’s award to Veo (“Litigation”). As a result of a settlement agreement reached between Spin and the City in the Litigation, this legislation seeks to authorize the execution of a revenue sharing agreement, or similar instrument, between the parties as soon as reasonably practicable. The substance of that agreement will be nearly identical to the Service Level and Revenue Sharing Agreement between the Department of Public Service and Veo with respect to fleet deployment and management, enforcement of parking rules, compliance with local laws, performance expectations, and reporting.
2. CONTRACT COMPLIANCE
Spin currently is not registered with Vendor Services and will be required to become contract compliant prior to the execution of the proposed revenue sharing agreement with the City.
3. FISCAL IMPACT
Pursuant to the proposed agreement, Spin will be required to bear any and all operational costs incurred during the provision of services and to pay a portion of the revenue it generates to the Department of Public Service, meaning there will be no outlay by the City directly related to Spin and/or its operations.
4. EMERGENCY DESIGNATION
Emergency action is requested to facilitate the execution of the requisite agreement as soon as reasonably practicable in order to coincide with the official launch of the Columbus and Central Ohio Shared Mobility Program in mid-March.
Title
To authorize the Director of the Department of Public Service to enter into agreements with and to accept payments from Pheenix USH LLC dba Spin relative to the Columbus and Central Ohio Shared Mobility Program; and to declare an emergency. ($0.00)
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WHEREAS, the Department of Public Service, Office of Support Services issued a Request for Proposals (RFP) seeking responses from qualified vendors to potentially manage, operate, and expand a shared micromobility program in the City of Columbus and several other neighboring jurisdictions; and
WHEREAS, that solicitation was formally advertised on the Vendor Services and Bonfire websites from June 27, 2024, to September 12, 2024, and elicited six responses from: Neutron Holdings Inc. dba Lime; Drop Mobility; Pheenix USH LLC dba Spin; Tandem Mobility LLC; Trip Technology; and VeoRide Inc. dba Veo; and
WHEREAS, following an evaluation process, which included interviews with Lime, Spin, and Veo, the Evaluation Committee selected Veo to oversee the Columbus and Central Ohio Shared Mobility Program on the basis Veo submitted the best overall proposal; and
WHEREAS, following the passage of Ordinance 3366-2024, which authorized the Director of Public Service to enter into a revenue sharing agreement with Veo, Spin initiated legal action in the United States District Court for the Southern District of Ohio challenging the City’s award to Veo; and
WHEREAS, as a result of a settlement agreement reached in the Litigation, the City has agreed to enter into contract with Spin relative to the Columbus and Central Ohio Shared Mobility Program through at least December 31, 2025; and
WHEREAS, this legislation seeks to authorize the Director of Public Service, or a designee, to enter into a revenue sharing agreement and any other instrument as may be necessary, including a separate service level agreement, with Spin relative to the Columbus and Central Ohio Shared Mobility Program; and
WHEREAS, an emergency exists in the usual daily operation of the Department of Public Service in that it is immediately necessary to authorize the passage of this legislation to facilitate the execution of the requisite agreement as soon as reasonably practicable in order to coincide with the official launch of the Columbus and Central Ohio Shared Mobility Program in mid-March, all for the immediate preservation of the public health, peace, property, and safety; NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the Director of the Department of Public Service be, and hereby is, authorized to enter into a revenue sharing agreement and any other instrument as may be necessary, including a separate service level agreement, with Pheenix USH LLC dba Spin, stipulating that Spin may operate within the City of Columbus through at least December 31, 2025, and to accept payments from the same relative to the Columbus and Central Ohio Shared Mobility Program.
SECTION 2. That for the reasons stated in the preamble hereto, which is hereby made a part hereof, this ordinance is hereby declared to be an emergency measure and shall take effect and be in force from and after its passage and approval by the Mayor or ten days after passage if the Mayor neither approves nor vetoes the same.