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    HomeNewsCity Council to Consider Ending Bird Rides Inc Contract After Bird Filed...

    City Council to Consider Ending Bird Rides Inc Contract After Bird Filed for Bankruptcy

    At the next Regular West Hollywood city council meeting on Monday, March 18, 2024, the City Council is set to receive an update on the Dockless Micro-mobility Program with a recommendation by Staff to end their contract with Bird Rides, Inc after the company filed for Chapter 11 Bankruptcy and failed to inform WeHo City.

    According to the Staff report, in December 2023, after extensive negotiations, the Council instructed staff to advance the program’s next phase. This decision involved finalizing operational agreements for the Second Phase, along with solidifying agreements with current partners, Bird and Lime, specializing in on-demand micro-mobility services. Seeking to refine the initial pilot program, negotiations between the City, Lime, and Bird Rides, Inc. led to the Second Phase Agreement, spanning an eighteen-month period.

    The Second Phase Agreement, sanctioned by the City Council, introduces measures to mitigate risks associated with community concerns. It shifts a substantial portion of liabilities onto the scooter companies through enhanced insurance, indemnification, penalty structures, and other provisions. However, the effectiveness of this strategy hinges on the ability of the companies, such as Bird and Lime, to fulfill their augmented obligations under the agreement.

    On December 20, 2023, City staff received unexpected news via email regarding Bird’s filing for voluntary Chapter 11 bankruptcy, set to be publicly disclosed later that day. According to the Staff report, Bird had not informed the City beforehand, despite ongoing negotiations for the Second Phase Agreement. Subsequent to the filing, thorough examination by the City Clerk’s Office and City Attorney ensued, scrutinizing the bankruptcy documentation.

    After careful review of publicly accessible bankruptcy filings, both staff and the City Attorney advised against proceeding with the Second Phase Agreement with Bird. Instead, they recommended allowing the existing contract with Bird to lapse by March 31, 2024. The decision stems from concerns about Bird’s financial stability and the uncertainties accompanying bankruptcy proceedings, which could impede their ability to meet contractual obligations, thereby jeopardizing the City’s interests.

    Acknowledging the potential impact of Bird’s bankruptcy on creditors and business partners, the City would likely need to monitor or even participate in the bankruptcy proceedings in Florida, entailing additional expenses and unforeseen costs. Consequently, the City opted not to engage in a Second Phase Agreement with Bird, Inc.

    However, should Bird successfully reorganize and demonstrate its capability to resume municipal partnerships, the City remains open to revisiting potential agreements in future program phases. Presently, exercising caution and prudence amidst the bankruptcy proceedings is paramount.

    Regarding Lime, the City finalized a Second Phase Agreement with the company, effective April 1, 2024. This agreement permits the deployment of up to 200 scooters and 50 e-bikes across the city for an eighteen-month term. Notably, provisions have been incorporated into the agreement mandating advanced notification of any future bankruptcy filings by Lime, aiming to avert a repeat scenario.

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    Paulo Murillo
    Paulo Murillohttps://wehotimes.com
    Paulo Murillo is Editor in Chief and Publisher of WEHO TIMES. He brings over 20 years of experience as a columnist, reporter, and photo journalist. Murillo began his professional writing career as the author of “Love Ya, Mean It,” an irreverent and sometimes controversial West Hollywood lifestyle column for FAB! newspaper. His work has appeared in numerous print and online publications, which include the “Hot Topic” column in Frontiers magazine, where he covered breaking news and local events in West Hollywood. He can be reached at [email protected]

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    ByeByeBirdie
    ByeByeBirdie
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    25 days ago

    The photo in this article makes me realize that I never see bird scooters in the street. like ever. Lime is the dominant vendor. They are everywhere. So not really a big loss.

    Lydia Astorga
    Lydia Astorga
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    25 days ago

    Well and good if they will be no longer on the streets. They are dangerous specially to the senior citizens.

    sam
    sam
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    25 days ago

    I would love City Council to address this fact before approving the contract with Lime. Lime scooters pose a danger not only to human health but also to that of the environment. According to a study by North Carolina State University, two-thirds of the time, Lime scooter trips generate more greenhouse gas emissions than an alternative source of transportation, including a car. This large carbon footprint comes from the unsustainable raw materials and energy used in manufacturing, the short longevity of Lime scooters and the energy needed for vehicles to collect scooters and take them to a charging station before… Read more »

    Toms
    Toms
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    25 days ago

    Perfect what happens to the Fountain bike scooter lane where Sepi was going to ride her scooter LOL

    :dpb
    :dpb
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    25 days ago

    Is time to shut the door on this program. Period. The safety of pedestrians, the handicapped and motorists is most important. The city has been given a legal way out. Use it. Move on from this disaster.

    mike dunn
    mike dunn
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    Reply to  :dpb
    25 days ago

    Scooters are a safety hazard. Ban scooters altogether from major streets and all sidewalks in the city. Also allow homeowners and businesses to discard scooters in their trash if left on their property or blocking access to they property.

    Toms
    Toms
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    Reply to  mike dunn
    25 days ago

    TRASH exactly next one I see blocking sidewalk it goes in a dumpster

    Last edited 25 days ago by Toms
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