Thank you for publishing the news about Zipcar’s success in Davis. It is a city contract we should not forget.
The headline is a little misleading. There is no goal for the city. There is no way the city can win anything through the contract. As you point out on the back page, “None of the revenues are channeled back to the city, no matter how well the program does.” And if Zipcar revenues decline, the city obligation increases.
So far, the city has paid $8,711.80 to Zipcar. It also has furnished four exclusive auto parking spaces to it, without charge. And the agreement will continue another 18 months, for a full two years.
Hopefully, 30 days before the end of the agreement, the city will remember to give Zipcar a written notice of termination or the contract automatically will renew for another year. For the total contract term “Zipcar shall be the only car-sharing service promoted and used by the city.”
But still another car rental company can open a similar service in Davis. Check the Internet; there are competing services. If it charges less than Zipcar and Zipcar’s revenue decreases, the city has to pay more.
A part of this cost might be offset by requiring payment of a reasonable fee for the auto parking spaces. But not from Zipcar; the agreement says auto parking spaces shall be provided at “no charge.”
“What a deal,” but for whom?
Norman Roberts
Davis