Ordinance 0665-2025
Explanation
1. BACKGROUND
This ordinance seeks to authorize the execution of a contract modification between the City of Columbus and Frost Brown Todd LLP (“Frost Brown Todd”) for the provision of legal representation in the matter of Pheenix USH LLC D/B/A SPIN, v. City of Columbus, et al., Case No. 2:24-cv-004290 (“Litigation”) pending before the U.S. District Court for the Southern District of Ohio.
The Department of Public Service became the subject of Litigation after selecting VeoRide Inc. dba Veo, through a competitive solicitation, to which Spin also responded, to oversee the Columbus and Central Ohio Shared Mobility Program. Spin filed a lawsuit in the U.S. District Court for the Southern District of Ohio challenging the contract award to Veo. Consequently, there was a need to retain outside counsel to represent the Department of Public Service during the Litigation, culminating in the execution of a service contract valued at $50,000 between the City Attorney’s Office and Frost Brown Todd for that purpose.
However, the total cost of representation in this matter will exceed the aforementioned sum, necessitating the execution of a contract modification in order to authorize the encumbrance and expenditure of additional funding in order to compensate Frost Brown Todd for services rendered through the resolution of the Litigation. Frost Brown Todd responded to a Request for Statement of Qualifications (“RFSQ”) in 2024 that was issued by the City Attorney’s Office and was one of the law firms selected by the RFSQ Committee to perform outside counsel work on behalf of the City. It would not be in the best interests of the City to change outside counsel at this juncture in the Litigation, as Frost Brown Todd has been engaged throughout the Litigation and cost efficiencies will be realized by retaining current outside counsel to see the Litigation to its conclusion.
Amount of additional funds to be expended: $85,000.00
Original contract amount: $50,000.00 (PO491579)
Modification 1: $85,000.00 (This legislation)
Total contract amount including all modifications: $135,000.00
2. PLANNED CONTRACT MODIFICATION
This is a planned contract modification necessary to support the total cost associated with the provision of outside legal services through the resolution of the Litigation.
3. CONTRACT COMPLIANCE
The contract compliance number for Frost Brown Todd LLP is CC025266, which expires April 21, 2025.
4. FISCAL IMPACT
Funding in the amount of $85,000.00 is available within the Mobility Enterprise Operating Fund for this expenditure.
5. EMERGENCY DESIGNATION
Emergency action is requested to facilitate the execution of the requisite contract modification to enable the City to satisfy the current financial obligations owed to Frost Brown Todd and to allow for ongoing representation in the still pending Litigation.
Title
To authorize the City Attorney, on behalf of the Department of Public Service, to modify the contract with Frost Brown Todd LLP for the provision of outside legal representation in the matter of Pheenix USH LLC D/B/A SPIN, v. City of Columbus, et al., Case No. 2:24-cv-004290; to authorize the expenditure of $85,000.00 from the Mobility Enterprise Operating Fund; to authorize the payment of expenses incurred prior to the creation of the resultant purchase order; and to declare an emergency. ($85,000.00)
Body
WHEREAS, the Department of Public Service desired to overhaul and expand its micromobility program in order to provide a positive user experience and to advance broader goals related to equity, sustainability, economic development, and community livability; and
WHEREAS, the Department of Public Service selected VeoRide Inc. dba Veo, through a competitive solicitation, to oversee the Columbus and Central Ohio Shared Mobility Program; 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, Pheenix USH LLC dba Spin initiated legal action in the United States District Court for the Southern District of Ohio challenging the contract award to Veo; and
WHEREAS, the City Attorney’s Office engaged outside legal counsel to represent the City during the Litigation, culminating in the execution of a professional services contract with Frost Brown Todd for that purpose; and
WHEREAS, it is necessary to modify the existing contract to authorize the encumbrance and expenditure of additional funding in order to fully compensate Frost Brown Todd for services rendered through the resolution of the Litigation; 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 so that the requisite contract modification may be executed as soon as reasonably practicable to enable the City to satisfy the current financial obligations owed to Frost Brown Todd and to maintain legal representation in the Litigation; NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the Columbus City Attorney, acting on behalf of the Department of Public Service, be and is hereby authorized to execute a contract modification with Frost Brown Todd LLP for services rendered relative to the Litigation.
SECTION 2. That the expenditure of $85,000.00, or so much thereof as may be needed, is authorized in Fund 6500 (Mobility Enterprise Operating Fund), Subfund 650001 (Mobility Enterprise), Dept-Div 59-06 (Parking Services), in Object Class 03 (Services) per the accounting codes in the attachment to this ordinance, and that such expenditure may be used for costs incurred prior to the creation of the resultant purchase order.
SECTION 3. That the funds necessary to carry out the purpose of this ordinance are hereby deemed appropriated, and the City Auditor shall establish such accounting codes as necessary.
SECTION 4. That the City Auditor is authorized to make any accounting changes to revise the funding source for all contracts or contract modifications associated with this ordinance.
SECTION 5. That for the reasons stated in the preamble hereto, which is made a part hereof, this ordinance is 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.