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CC - CONSENT ITEM: Approval of a New Operating Agreement with Pheenix CH LLC dba Bird for the City’s Dockless Shared Micromobility Program for Fiscal Year 2026-2027.
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Meeting Date: May 26, 2026
Contact Person/Dept.: Jeremy Marks / Transportation Department
Phone Number: (310) 253-6508
Fiscal Impact: Yes [X] No [] General Fund: Yes [] No [X]
Attachments: Yes [X] No []
Public Notification: (E-Mail) Meetings and Agendas - City Council (05/21/2026)
Department Approval: Nick Zornes, Chief Transportation Officer (04/30/2026)
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RECOMMENDATION
Staff recommends the City Council approve an Operating Agreement with Pheenix CH LLC dba Bird (“Bird” or “Operator”) for the continued operation of the City’s Dockless Shared Micromobility Program for Fiscal Year 2026-2027 (July 1, 2026 through June 30, 2027).
BACKGROUND
The City’s shared micromobility program was established in July 2018, when the Transportation Department executed Interim Operating Agreements with Bird Rides, Inc. and Lime. Following the conclusion of that Initial Pilot Program in March 2020, the City launched Phase 2 of the program in August 2020 with Wheels as the sole operator; Bird did not participate in Phase 2. In June 2021, City Council authorized an updated Operating Agreement and directed staff to conduct a Request for Qualifications process for up to two (2) operators in Fiscal Year 2022 (FY22). Bird Rides, Inc. was selected through that process and executed an Operating Agreement effective November 20, 2021, rejoining the program alongside Wheels. Bird has operated in Culver City continuously since that time. Following Bird’s acquisition by Pheenix CH LLC, the City executed an updated Operating Agreement with Pheenix CH LLC dba Bird in June 2025, covering July 1, 2023 through June 30, 2026 (the “FY26 Operating Agreement”). That agreement does not provide for further extensions and expires on June 30, 2026.
Most recently, the City Manager exercised the administrative authority under the FY26 Operating Agreement and approved a fleet size increase request submitted by Bird, authorizing the Operator to increase its maximum permitted fleet size in Culver City from 200 to 250 vehicles. This increase reflects growing ridership demand and the Operator’s demonstrated ability to meet the program’s operational and compliance requirements.
DISCUSSION
Proposed FY27 Operating Agreement
The FY26 Operating Agreement with Pheenix CH LLC dba Bird expires on June 30, 2026, and does not provide for further extensions. In order to maintain continuity of the City’s shared micromobility program, staff has prepared a new standalone Operating Agreement to govern Bird’s continued operations in Culver City for Fiscal Year 2026-2027 (July 1, 2026 through June 30, 2027) (the “FY27 Operating Agreement” or “Agreement”).
The proposed FY27 Agreement is intended as a bridge year. The purpose of extending the program with Bird for one (1) additional fiscal year is to provide staff adequate time to return to City Council to seek direction regarding the structure of the program going forward and will follow a competitive procurement process in Fiscal Year 2027-2028. Staff anticipate returning to City Council no later than the third quarter of Fiscal Year 2026-2027 with a program status update and recommended next steps.
Key Terms of the Proposed FY27 Operating Agreement
The proposed FY27 Operating Agreement is substantively consistent with the FY26 Operating Agreement. Key terms include:
• Term: The Agreement commences July 1, 2026 and expires June 30, 2027, with no provision for further extension.
• Fee Structure: The Operator shall pay the City an Annual Permit Fee of $20,000; an Annual Operations Fee of $100 per permitted vehicle, based on the number of permitted vehicles; and a Public Right-of-Way (PROW) Fee of $0.20 per trip that starts and/or ends in Culver City.
• Fleet Size: The Operator is authorized to deploy a minimum of 50 vehicles and a maximum of 250 vehicles daily within Culver City, consistent with the fleet size increase recently approved by the City Manager.
• Program Requirements: The Operator is subject to all vehicle, operational, data sharing, reporting, equitable access, user engagement, and insurance and indemnification requirements set forth in the Operating Agreement, consistent with the terms of the FY26 Operating Agreement.
• Termination: The City may terminate the Agreement without cause at any time upon written notice to the Operator.
Next Steps
Staff will return to City Council no later than the second quarter of Fiscal Year 2026-2027 to provide an update on the shared micromobility program and to seek direction on the structure of the program for Fiscal Year 2027-2028 and future years. That report will address, among other things, the appropriate scope and vehicle types for the program, any updates to program fees, and whether to seek one or more operators. Staff anticipate that a competitive procurement process, would be initiated no later than the third quarter of Fiscal Year 2026-2027 to allow sufficient time for operator selection, agreement execution, and service launch prior to July 1, 2027.
FISCAL ANALYSIS
The proposed FY27 Operating Agreement is structured as a revenue-generating arrangement: the Operator pays fees to the City and the City makes no payments to the Operator. The City anticipates receiving the following revenues under the Agreement:
• Annual Permit Fee: $20,000 (flat fee per operator per year)
• Annual Operations Fee: Up to $25,000 (based on a maximum permitted fleet of 250 vehicles at $100 per vehicle per year)
• Public Right-of-Way (PROW) Fee: $0.20 per trip starting and/or ending in Culver City (amount varies based on ridership)
All program revenues will be deposited into the Municipal Bus Lines Fund (20370100.346595 - Scooter Share Mitigation) and will be used to support transportation infrastructure, program administration, and related mobility initiatives - consistent with prior program practice. There are no anticipated costs to the City beyond existing staff time for contract administration, monitoring, and program oversight.
ATTACHMENTS
1. 2026-05-26_ATT_Proposed Operating Agreement with Pheenix CH LLC dba Bird for Dockless Shared Micromobility Program, Fiscal Year 2026-2027
recommended action
MOTION(S)
That the City Council:
1. Approve a new Operating Agreement with Pheenix CH LLC dba Bird for the City’s Dockless Shared Micromobility Program for Fiscal Year 2026-2027, effective July 1, 2026 through June 30, 2027;
2. Authorize the City Attorney to review/prepare the necessary documents; and
3. Authorize the City Manager to execute such documents on behalf of the City.