Title
Resolution to Approve Amendment No. 1 to the Right-of-Way License Agreement with Spin, Inc., for the Operation of Electric Scooters and Electric Bicycles in the City of Ann Arbor
Memorandum
Spin, Inc. (Spin) is the owner and operator of the Spin electric scooter (e-scooter) service which has been in operation in Ann Arbor since April 2019. Currently, Spin operates 400 dockless shared e-scooters in Ann Arbor at a rate of $1 per scooter per day as approved by City Council in R-21-226. Half of those scooters are licensed by the City of Ann Arbor; the other half are licensed by the University of Michigan.
The attached amendment to the existing agreement would introduce and allow for the operation of 100 dockless shared electric bicycles (e-bikes) in addition to the existing e-scooters. Pursuing this deployment with Spin is advisable because:
a) this is a target identified in the Moving Together Towards Vision Zero Transportation Plan;
b) Spin has proven to be a responsive micromobility operator resulting in few complaints;
c) using the same company for e-scooters and e-bikes results in a seamless experience for users. Spin is also integrated with Lyft ride hailing service which means a single app can grant users access to one of three different shared mobility options;
d) Spin has recently integrated equitable access into their deployment - namely the Spin Cash Card makes their vehicles available to unbanked individuals and non-smartphone users; and Spin Access offers 50% discounted rides for qualifying individuals (e.g. public housing residents).
Budget/Fiscal Impact: Spin has requested a reduced licensing fee to offset the increased operational cost to deploy e-bikes. Specifically, they've requested that they be charged $.20/e-scooter or e-bike/day (as opposed to $1/e-scooter/day). This would reduce the annual fee collected by the City from ~$73,000/year to ~$18,250/year to the Major Streets Fund. This reduced fee seems reasonable because City staff...
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