O2578City Council Meeting: June 26, 2018 Santa Monica, California
ORDINANCE NUMBER 21�5 78 (CCS)
(City Council Series)
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
SANTA MONICA AMENDING SANTA MONICA MUNICIPAL CODE CHAPTER 3.21
ESTABLISHING A SHARED MOBILITY DEVICE PILOT PROGRAM AND RELATED
PERMITTING AND OPERATOR SELECTION PROCESS
WHEREAS, shared mobility has exploded globally offering several different types
of devices including bikes, e -bikes, and electric scooters; and
WHEREAS, in recent months, in part due to rapid technological advancements,
the City of Santa Monica's (City) public rights-of-way have been inundated with shared
mobility devices; and
WHEREAS, the proliferation of such systems and devices impeded pedestrian
circulation and paths of travel, and created hazards in the public rights-of-way for persons
with disabilities and others, especially when left unattended; and
WHEREAS, such devices blocked paths of travel, sidewalks, driveways, lanes,
and parkways; and
WHEREAS, such devices created safety hazards especially for persons with
disabilities attempting to navigate past all such hazards; and
WHEREAS, such devices had been involved in a number of traffic collisions, some
of which resulted in serious injuries; and
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WHEREAS, in response to the rapid proliferation of such systems and devices,
and the serious safety hazards created by their use, the City adopted Ordinance No.
2570, which establishes interim operating regulations for shared mobility systems and
devices and requires operators to first obtain a vending permit prior to displaying a shared
mobility device for rent in public; and
WHEREAS, the City now seeks to create a shared mobility device pilot program
that will improve access to mobility options for residents, employees, visitors to Santa
Monica, create new and diverse mobility options, ensure safety by reducing sidewalk and
pathway impediments, facilitate access for disabled individuals, educate users about the
proper rules and etiquette, create a legal and enforceable framework for managing shared
mobility in the public right of way, and build good working partnerships with shared
mobility service providers; and
WHEREAS, a shared mobility device pilot program would establish minimum
operating requirements in the categories of maintenance, education, safety, customer
service, data sharing and insurance/indemnification and also identify a broader list of
recommended program components through which applicants could be evaluated during
the pilot term; and
WHEREAS, a shared mobility device pilot program would be established for a
short term to inform the content of future operating requirements and program
components, and to provide flexibility during the pilot program duration through the
Administrative Regulations.
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NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA
DOES HEREBY ORDAIN AS FOLLOWS:
Section 1. Santa Monica Municipal Code Chapter 3.21 is hereby repealed and
replaced in full as follows:
3.21 SHARED MOBILITY DEVICE PILOT PROGRAM
3.21.010 Purpose. Consistent with the City's goals of enhancing mobility and
access, easing traffic congestion, and promoting sustainability, this Chapter creates a
limited term pilot program to facilitate the use of shared mobility devices while ensuring
the protection of public health and safety, including the safety of the public traveling by
foot, bicycle, or vehicle on public sidewalks, streets, and other public rights-of-way.
3.21.020 Definitions
(a) "Abandon" shall mean leaving an item unattended for any length of time.
(b) "Director" shall mean the Director of Planning and Community Development
or designee.
(c) "Operator" shall mean any person or businesses entity selected by the City
to participate in the Shared Mobility Device Pilot Program pursuant to this Chapter.
(d) "Public Area" shall mean any outdoor area that is open to the public for
public use, whether owned or operated by the City or a private party.
(e) "Public Right -of -Way" shall mean any public alley, parkway, public
transportation path, roadway, sidewalk, or street that is owned, granted by easement,
operated, or controlled by the City.
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(f) "Shared Mobility Device" shall mean any transportation device by which a
person can be propelled, moved or drawn, that is displayed, offered or placed for rent in
any Public Area or Public Right -of -Way, except that a "Shared Mobility Device" does not
include any device being vended or made available for rent exclusively from a vehicle
pursuant to a valid City vending permit; a Car Share Vehicle, as defined by Chapter 3.06
of this Code; a device authorized by the City Bike Share System pursuant to Chapter 3.20
of this Code; a taxicab as regulated in Chapter 6.49 of this Code, a device operated by
the Los Angeles County Metropolitan Transportation Authority; or any other device
excluded pursuant to Administrative Regulations.
3.21.025 Administrative Regulations
(a) The Director may adopt Administrative Regulations to implement the
provisions of this Chapter, including, but not limited to, permit application procedures and
permit standards, which may include regulations relating to lawful conduct, public safety,
data sharing, data privacy, and/or the timely removal of hazards.
(b) No person shall fail to comply with the City's Administrative Regulations.
Any violation of any administrative regulation issued pursuant to this Section shall
constitute a violation of this Code and shall subject the violator to the penalties set forth
in this Chapter.
3.21.030 Prohibited Conduct
Notwithstanding any other provision of this Code, no person may:
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(a) Display, offer or make available for rent any Shared Mobility Device within
the City, unless the person has first obtained (i) a valid Shared Mobility Operator Permit
and (ii) a business license issued in accordance with Chapter 6.04 of this Code;
(b) Abandon a Shared Mobility Device not authorized by this Chapter in the
Public Right -of -Way or a Public Area in such a way that the Device is available for rent;
and
(c) Abandon a Shared Mobility Device in the Public Right -of -Way or a Public
Area in a manner that (a) obstructs travel upon or blocks access to a Public Right -of -Way;
(b) poses an immediate public safety hazard; or (c) is otherwise prohibited by applicable
laws or Administrative Regulations.
3.21.040 Maximum Number of Shared Mobility Operator Permits and Shared
Mobility Devices Permitted
(a) The Director may issue up to four Shared Mobility Operator Permits
authorizing the deployment of a Shared Mobility Device within the City. Two Shared
Mobility Operator Permits shall be issued to Operators that propose to deploy electric
scooters as Shared Mobility Devices and two Shared Mobility Operator Permits shall be
issued to Operators that proposes to deploy electric bikes as Shared Mobility Devices.
No Shared Mobility Operator Permits shall be issued to any Operator that proposes to
deploy a Shared Mobility Device that is exclusively powered by the human body or
powered by combustion engine.
(b) The Director may establish the number of Shared Mobility Devices
authorized under each Shared Mobility Operator Permit. No more than on a weekly basis
or within fourteen days following any City Council action adjusting the number of permitted
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Operators or Devices pursuant to Section 3.21.040(d), the Director may adjust the
maximum number of devices authorized by each Shared Mobility Operator Permit. The
Director shall take into consideration market needs, the number of devices deployed in
the City, device utilization, and any other criteria set forth in Administrative Regulations.
The Director shall first publish his or her tentative adjustment decision under this Section,
along with reasons supporting the decision, and solicit comments prior to making a final
determination. The Director's determinations under this Section shall constitute the final
decision of the City and are not subject to further administrative review. No person shall
fail to comply with the Director's established device limitation.
(c) No Operator may be granted authorization for less than 250 Shared Mobility
Devices
(d) At any time, in the City Council's discretion, the City Council may reassess
the number of Shared Mobility Operator Permits authorized for issuance. The City
Council, in its discretion, may determine by resolution that the number of Shared Mobility
Operator Permits or the number of total authorized devices should be reduced or
increased.
3.21.050 Shared Mobility Operator Permit Application Procedure, Fees and
Requirements
(a) Any person seeking to obtain a Shared Mobility Operator Permit shall
submit a written application, signed under penalty of perjury, using the form designated
by the Director for that purpose.
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(b) The City Council may establish permit fees and charges by resolution,
which shall:
(i) defray the City's costs in administering and enforcing the provisions
of this Chapter; and
(ii) reflect charges associated with use of public property pursuant to this
Chapter.
(c) The Director may specify the information that must be provided in
connection with an application and the form in which the information is to be provided.
The application shall contain, at a minimum, the following information:
(i) The name and business address of each person or entity that (i) has
more than a ten percent equity, participation, or revenue interest in the applicant
or (ii) is a trustee, director, partner, or officer of that entity or of another entity that
owns or controls the applicant, excepting persons serving in those capacities as
volunteers, without compensation, for organizations exempt from income taxes
under Section 501(c) (3), (4), or (6) of the Internal Revenue Code;
(ii) The name and business address of any parent or subsidiary of the
applicant, namely, any other business entity owning or controlling the applicant in
whole or in part, or owned or controlled in whole or in part by the applicant, and a
statement describing the nature of any such parent or subsidiary business entity;
(iii) Information sufficient to show that the applicant is financially,
technically, and legally qualified to operate and maintain a Shared Mobility Device
system.
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(iv) A description of the proposed plan of operation, including, at a
minimum, a detailed description of:
(a) The applicant's current operations in the City and other
jurisdictions, including copies of the applicant's operating permits for all
such jurisdictions;
(b) The applicant's proposed operations in the City
including the maximum number of Shared Mobility Devices anticipated
during the duration of the pilot program, the plan for balancing Shared
Mobility Devices for Citywide coverage, the plan for Shared Mobility
Device maintenance, levels of staff for operations and administration,
and the plan for customer service;
(c) The applicant's regulatory compliance program;
(d) The applicant's history of, intent to and ability to comply
with state and local law;
(e) The applicant's plans to implement safety programs,
including, for example, a program by which the applicant will receive
information about and notify users of inappropriate use;
(f) The applicant's plans to educate users of Shared
Mobility Devices about applicable California Vehicle Code provisions
and other applicable laws, regulations, and guidelines;
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(g) The applicant's plans to comply with applicable federal,
state, and local data privacy laws and otherwise to protect the privacy of
personal information provided by Users; and
(h) Any other requirements set forth by administrative
regulation.
3.21.60 Shared Mobility Operator Selection
(a) The Shared Mobility Operator Selection Committee shall be established by
the Director. The Committee shall consist of City Staff with appropriate knowledge and
experience, as further set forth in the Administrative Regulations.
(b) The Committee shall review all applications and make written
recommendations to the Director based on a ranking of each qualified applicant in
accordance with objective criteria set forth by this Chapter and Administrative
Regulations.
(c) Each qualified applicant shall be evaluated based upon objective criteria
including: experience; proposed operations plan; financial wherewithal and stability;
adequacy of insurance; ability to begin operations in a timely manner; public education
strategies; relevant record of the applicant's or officers', owners' or principals' violations
of Federal, State or local law, or rules and regulations; and any other objective criteria
established by Administrative Regulation.
(d) Each applicant shall be provided an opportunity to submit written comments
or objections to the Committee's recommendations.
(e) The Director shall set forth, in writing, the reasons supporting his or her final
determinations. The Director may request additional information from City Staff, any
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applicant, or any other source that would assist in determining the final qualifications and
rankings.
(f) The Director shall grant a Shared Mobility Operator Permit to the highest
four ranked applicants. Should two applicants receive the same score, a lottery shall be
used to establish the final rankings for any applicants that achieved the same score.
(g) The Director's determinations under this Section shall constitute the final
decision of the City and shall not be subject to further administrative review.
(h) The Director may impose, as part of any Shared Mobility Operator Permit
issued, any and all conditions that are necessary to effectuate the purposes of this
Chapter, mitigate traffic impacts, ensure accessibility of the Public Right -of -Way and
availability of public space for shared use by all, or protect the health, welfare, and safety
of the public. No person shall fail to comply with such permit conditions.
3.21.070 Limitations on City Liability
To the fullest extent permitted by law, the City shall not assume any liability
whatsoever with respect to having issued a Shared Mobility Operator Permit or otherwise
approving the operation of any Shared Mobility Device. As a condition to the issuance of
any Shared Mobility Operator Permit, the applicant shall be required to meet all of the
following conditions:
(a) The applicant must execute an agreement, in a form approved by the City
Attorney, agreeing to indemnify, defend (at applicant's sole cost and expense), and hold
harmless the City, and its officers, officials, employees, representatives, and agents from
any and all claims, losses, damages, injuries, liabilities or losses which arise out of, or
which are in any way related to, the City's issuance of or decision to approve a Shared
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Mobility Operator Permit, the process used by the City in making its decision, or the
alleged violation of any federal, state or local laws by the applicant or any of its officers,
managers, employees or agents.
(b) Maintain insurance at coverage limits, and with conditions thereon determined
necessary and appropriate from time to time, as determined by the Risk Manager and
name the City of Santa Monica as additional insured. The applicant's insurance policy
shall be endorsed to state that coverage shall not be cancelled except after thirty days
prior written notice by certified mail has been given to the City. If any insurance policy
issued to a permittee is cancelled for any reason, the permit issued under this Ordinance
is automatically suspended. In order to reinstate the permit, the permittee shall provide a
new certificate and policy of insurance to the City.
(c) Reimburse the City for all costs and expenses, including but not limited to
attorney fees and costs, which it may be required to pay as a result of any legal challenge
related to the City's approval of or activities conducted pursuant to the applicant's Shared
Mobility Operator Permit. The City may, at its sole discretion, participate at its own
expense in the defense of any such action, but such participation shall not relieve any of
the obligations imposed hereunder.
3.21.080 Grounds for revocation, suspension or denial.
A Shared Mobility Operator Permit may be revoked, suspended, or denied by the
Director based upon any of the following grounds:
(a) an applicant or Operator, including its employees, managers, officers,
principals, directors, owners, contractors, representatives, or agents:
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(i) Making one or more false or misleading statements, or material
omissions on the permit application, during the application process, or during the
pilot program;
(ii) Failing to provide information requested or required by the City;
(iii) Operating or proposing to operate in a manner that endangers public
health or safety; or
(iv) Failing to comply with any requirement imposed by the provisions of
this Code (or successor provision or provisions) including any rule, regulation,
condition or standard adopted pursuant to this Chapter, or any term or condition
imposed on the Shared Mobility Operator Permit, or any provision of state law.
(b) Conviction of the Operator, to include any of its officers, owners or
principals, of a criminal offense that is substantially related to the qualifications, functions
or duties of the shared mobility business or profession, including but not limited to any
criminal conviction involving a violent or serious felony, fraud, deceit, or embezzlement.
3.21.090 Pilot Program Term
Permits issued pursuant to this Chapter shall terminate and be of no further force
or effect beyond December 30, 2019, unless otherwise extended or terminated earlier by
the City.
3.21.100 Impoundment of Devices
(a) A Shared Mobility Device that is displayed, offered, or made available for
rent, or abandoned, in the Public Right -of -Way or a Public Area in violation of Section
3.21.030 shall be subject to immediate impoundment by the City.
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(b) The City Council may adopt impound fees by Resolution, which shall reflect
the City's enforcement, investigation, storage and impound costs.
(c) No person shall retrieve any impounded Shared Mobility Device except
upon demonstrating proper proof of ownership of the Device and payment of applicable
impound fees.
3.21.110 Enforcement
(a) Any person who violates any provision of this Chapter, including any permit
condition, shall be guilty of an infraction, which shall be punishable by a fine not exceeding
$250.00, or a misdemeanor, which shall be punishable by a fine not exceeding $500.00
per violation or by imprisonment in the County Jail for a period not exceeding six months
or by both such fine and imprisonment.
(b) Any person who violates any provision of this Chapter, including any permit
condition, shall be subject to administrative fines and administrative penalties pursuant to
Chapter 1.09 and Chapter 1.10 of this Code.
(c) Any person convicted of violating this Chapter in a criminal case, or found
to be in violation of this Chapter in a civil or administrative case brought by a law
enforcement agency, shall be ordered to reimburse the City and other participating law
enforcement agencies their full investigative costs.
Section 2. Any provision of the Santa Monica Municipal Code or appendices
thereto inconsistent with the provisions of this Ordinance, to the extent of such
inconsistencies and no further, is hereby repealed or modified to that extent necessary to
effect the provisions of this Ordinance.
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Section 3. If any section, subsection, sentence, clause, or phrase of this
Ordinance is for any reason held to be invalid or unconstitutional by a decision of any
court of competent jurisdiction, such decision shall not affect the validity of the remaining
portions of this Ordinance. The City Council hereby declares that it would have passed
this Ordinance and each and every section, subsection, sentence, clause, or phrase not
declared invalid or unconstitutional without regard to whether any portion of the ordinance
would be subsequently declared invalid or unconstitutional.
Section 4. The Mayor shall sign and the City Clerk shall attest to the passage of
this Ordinance. The City Clerk shall cause the same to be published once in the official
newspaper within 15 days after its adoption. This Ordinance shall become effective 30
days from its adoption.
APPROVED AS TO FORM:
LANE DILG
City Attorney
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Approved and adopted this 26th day of June, 2018.
Ted Winterer, Mayor
State of California )
County of Los Angeles ) ss.
City of Santa Monica )
I, Denise Anderson -Warren, City Clerk of the City of Santa Monica, do
hereby certify that the foregoing Ordinance No. 2578 (CCS) had its introduction
on June 12, 2018, and was adopted at the Santa Monica City Council meeting
held on June 26, 2018, by the following vote:
AYES: Councilmembers Himmelrich, McKeown, O'Day, Vazquezr
Mayor Pro Tem Davis, Mayor Winterer
NOES: None
ABSENT: Councilmember O'Connor
ATTEST:
Denise Anderson -Warren, City Clerk Date
A summary of Ordinance No. 2578 (CCS) was duly published pursuant to
California Government Code Section 40806.