AGENDA CAPTION:
Title
Consider approval of Resolution 2026-133R, approving a License Agreement with Neutron Holdings, Inc., doing business as Lime, authorizing a dockless electric scooter program within the city’s right-of way, in coordination with Texas State University, to offer students, visitors, and the public an environmentally friendly alternative to single occupancy vehicle trips for one year and up to five additional one-year renewals upon mutual agreement; authorizing the City Manager, or her designee, to execute the agreement on behalf of the city; and declaring an effective date.
Body
Meeting date: August 18, 2026
Department: Public Works
Amount & Source of Funding
Funds Required: $0.00
Account or Project Number (C = CIP funds): N/A
Funds Available: N/A
Account Name: N/A
Fiscal Note:
Prior Council Action: May 16, 2023 (resolution 2023-92R) approval of a License Agreement with SPIN for a dockless electric scooter program.
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Background Information:
In September 2021, the City of San Marcos and Texas State University (TXST) entered into shared micromobility contracts with SPIN, a dockless electric scooter company, to provide publicly accessible electric scooters and electric pedal-assist bicycles. SPIN provided the community with a “socially distanced” transportation option to get around town during the COVID-19 pandemic. SPIN operated within the City’s right-of-way (ROW) and TXST property until exiting the market on June 30, 2025. SPIN informed the City and TXST that due to financial constraints in the private market, the company was leaving the San Marcos market.
Following the exit of SPIN, the City and TXST issued a joint Request for Proposal (RFP) on August 21, 2025 to solicit a new dockless electric scooter provider for the community. The first RFP received one bid which was disqualified based on the requirements of the solicitation. A second RFP was issued November 6, 2025, but no bids were received.
As a result of the inadequate bids from the two RFPs, a Request for Qualifications (RFQ) with an updated scope of work was issued April 2, 2026. From that solicitation, Neutron Holdings, Inc. doing business as Lime, was selected as the sole operator for both the City and University campus.
The proposed License Agreement is for one year, with the option for up to five additional one-year renewals upon mutual agreement. This agreement authorizes Lime to operate a dockless scooter program within the City’s ROW, in coordination with TXST, to offer students, visitors, and the public an environmentally friendly alternative to single-occupancy vehicle trips.
The License Agreement includes revenue to the City in the form of a per trip fee of $0.10 for trips originating within the City of San Marcos. The License Agreement stipulates penalties and remedies should Lime not meet the provisions of the License Agreement. The Agreement also requires implementation of the Lime Access program for low-income riders to ensure equitable service. TXST has approved a contract with Lime to allow dockless electric scooter service on the University campus and properties.
Lime will begin operations within the same geographic boundary previously used for micromobility services and has committed to a successful launch and partnership with this program. Should this Agreement be approved, Lime has indicated a preference to begin operations and service beginning September 1, 2026.
Program benefits include:
• Increased micromobility opportunities for residents and visitors of San Marcos
• “First-mile // last-mile” connection to public transit
• Lime Access program for low-income riders to ensure equitable service
• Reduced traffic congestion
• Improved transportation access for third-shift workers
• Enhanced transportation equity
• Reduction in vehicle emissions
Council Committee, Board/Commission Action:
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Alternatives:
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Recommendation:
Staff recommends approval of the item.