SR 08-28-2018 8A
City Council
Report
City Council Meeting: August 28, 2018
Agenda Item: 8.A
1 of 8
To: Mayor and City Council
From: David Martin, Director, Transportation Planning
Subject: Use of Public Property Fees for Shared Mobility Devices
Recommended Action
Staff recommends that the City Council adopt a Resolution establishing a Shared
Mobility Use of Public Right of Way fee (Attachment A).
Executive Summary
Privately-owned shared mobility systems arrived in Santa Monica in September 2017.
While the City supports the concepts of shared mobility as low emissions options that
can facilitate Sustainable City goals, improve local air quality, enable people to move
without a car, reduce pressure on vehicle lanes and parking spaces, and
increase overall access and mobility, the appearance of these shared mobility creates
new challenges in managing streets, sidewalks, and public spaces, and exacerbates the
problems of competition for use of the public right-of-way (PROW). The City is actively
working on a number of fronts to allow the services to provide new low-emission
mobility options, while protecting public health and safety.
Council approved a 16-month shared mobility device pilot program set to start in
September 2018 that will facilitate the development of tools to regulate a quickly
changing industry. During the pilot program, participating operators are responsible for a
cost recovery Operator fee and Per Device Fee. When the Council adopted the pilot
program it also directed staff to come back with a fee for commercial use of public
property for private shared mobility devices at that meeting. Revenue from this fee could
provide significant funding for urgently needed expansion of sidewalk and street
infrastructure to make walking, biking and scooting (in combination with public transit)
safer and more attractive alternatives to the single-occupant commuting and driving, the
primary source of Santa Monica’s severe traffic congestion problems.
2 of 8
Staff recommends the establishment of a Shared Mobility Use of PROW Fee, based on
the occupied square footage of shared mobility devices, and the existing area value of
public property established by the Outdoor Dining License Fees. Revenue collected
from the use of PROW fee is expected to be committed to mobility projects and
programs that increase safety and mobility access in Santa Monica.
Background
On February 27, 2018 (Attachment B), Council received an update on the Mobility
Strategic Goal and discussed efforts toward achieving the three targets of: 1) Increasing
trips by walking, biking and transit; 2) Eliminating severe injuries and fatalities from
traffic collisions; and 3) Creating a complete and connected network of
transportation. Creating new and safe ways to get around that are convenient,
comfortable, and affordable is a component of the broad third target.
Around September 2017, Bird began offering shared electric scooters in Santa Monica.
The scooters are seen regularly on City streets and sidewalks. Currently, Bird and
another company, Lime, have City-issued Business Licenses and Vending Permits to
offer e-scooters on private property with conditions on its operations, particularly as they
relate to scooters being placed in the Public Right of Way (PROW).
On March 6, 2018, Council adopted an emergency ordinance that established an
impound fee for shared mobility devices that pose a hazard in the PROW, among other
enforcement-related provisions. Council increased the impound fee on June 12, 2018
(Attachment C).
On June 26, 2018 (Attachment D), Council approved creation of a 16-month shared
mobility pilot program to facilitate the use, operation and regulation of shared mobility
devices in Santa Monica. The Shared Mobility Pilot Program will:
Develop a new area of policy, regulation, and enforcement through firsthand
experience
Allow the City time to adapt to a rapidly changing industry, but leave room to
learn and adjust as appropriate
3 of 8
Test new device and service providers in a growing industry
Explore partnership models with private companies
Explore possibilities for data capture, structures, and utilization for the purpose of
advancing the new model of mobility
Allow the City time to experiment with different management tools (e.g. “Geo-
fencing” and creation of shared mobility device drop zones
Along with creation of the program, Council adopted a fee resolution establishing fees
and charges to recover costs for program administration and code enforcement. The
fees would be levied on selected operators so that the program does not require
subsidy from other public funds. Council also directed staff to explore a fee that will
charge shared mobility operators for conducting commercial business on public
property, similar to the fees charged to restaurants for operating outdoor dining on the
public right-of-way.
Staff released a Request for Applications for the Shared Mobility Pilot program on July
10, 2018. Staff is currently in the process of selecting pilot program operators. The final
selection is expected to be made on or about August 30, 2018 by the Planning and
Community Development Director.
Discussion
Santa Monica is at the leading edge of creating and sustaining a multi-modal model for
mobility with services like the Big Blue Bus (BBB), Breeze Bike Share and BBB’s
Mobility On Demand Every Day (MODE), large investments like the Expo Line, and
infrastructure that rebuilds our streets to move people safely, equitably and efficiently.
Santa Monica is also at the epicenter of global transportation trends in which
rideshare/transportation network companies are pouring billions of dollars into new
technologies that will fundamentally transform how we move about the city.
Specifically, Santa Monica is experiencing the sea change in travel modes most
immediately in shared mobility such as “dockless” or “free-floating” electric-bike share
and electric-scooter share. The rapid adoption of these devices and others has caused
Santa Monica, and cities all over the country, to quickly explore and fund solutions for
4 of 8
reallocating public space to accommodate the explosion of these new transportation
options.
While many residents have eagerly embraced the new options, their arrival has severely
disrupted the limited sidewalk space, particularly in business districts as novice riders
commandeered sidewalks for riding and parking e-scooters. Residents, workers and
business owners have expressed outrage and frustration about the hazards and
collisions and accidents that followed the arrival of electric-scooter share due to
reckless rider behavior and careless device parking. The challenges for managing the
safe public use of the limited space on our streets, sidewalks, and beach paths did not
begin with e-scooters. Yet the sudden proliferation of these systems pose both
increased urgency and increased opportunity for revamping responsibilities for
complaint resolution, liability, oversight resource needs, and commercial use of the
PROW.
In light of the rapid changes, Council approved the creation of a 16-month Shared
Mobility Pilot Program. As a component of the pilot program, Council established a cost
recovery fee for staff time to administer and enforce compliance with the pilot program
of $20,000 annually per operator, and $130 annually per device. Currently adopted fees
recover only program oversight cost, and do not compensate for the use of public
property for private commercial purposes.
The public right of way land is a valuable asset, designed primarily for the movement of
people, goods and related activities. In order to manage the equitable utilization of the
PROW as a shared public asset, cities establish regulations and fees. A primary
example is the installation of parking meters to facilitate turnover of spaces so that
spaces remain available to the public throughout the day. The taxicab franchise is
another related management tool, which limits the number of taxicabs to avoid traffic
created by oversaturation and charges a fee per taxicab per year. When the PROW is
utilized by private parties for private profit, it is both appropriate and necessary for the
public to recapture some of the private profit generated to be used for the benefit of the
public, who both own and use this valuable community asset.
5 of 8
Use of Public Right of Way Fee
The City implements charges for commercial use of the PROW such as outdoor dining,
which compensates the city for public space that is being occupied by private
companies for private business purposes. Shared mobility companies commercialize
public space by:
deploying the shared mobility devices to the PROW where they are made
available for rent,
temporarily displaying such devices in the PROW as they are being made
available for rent, and
generating considerable income from conducting commercial business from the
PROW through their mobile apps.
In exchange for shared mobility companies’ ability to conduct commercial activities in
the PROW, the proposed fee would compensate the public as a community benefit,
which could be used to expand mobility infrastructure and services (like protected bike
lanes, mobility hubs, Vision Zero improvements, paratransit services, or educational
programs) that will help integrate shared mobility devices safely into the Santa Monica
landscape. For example, on July 24, 2018, Council allocated $2 million from the FY
2017 – 2018 General Fund savings to complete a project to add 19 miles of high
visibility green bike lanes throughout the City, which would be repaid from future funding
sources including the Shared Mobility Use of the PROW fee, should Council adopt it.
The City’s Outdoor Dining License Fees establish a square foot (sq ft) value of public
property for the purposes of conducting business in the PROW. The Outdoor Dining fee
charges more per sq ft for enclosed ($6.56) and partially enclosed ($3.52 - $2.81)
spaces in the PROW as the public space seemingly becomes an extension of the
adjacent restaurant tenant space. The Outdoor Dining Fee charges less for outdoor
dining without a barrier visibly separating the tables/chairs from the public realm ($2.48 -
$1.97 depending on location).
6 of 8
Shared mobility devices in the PROW take up considerable space like tables and
chairs. Staff estimates that depending on whether they are standing upright or laying on
their side, each device can occupy an area of 12 – 18 sq ft. Further, the occupied area
can seem even more significant and pose clearance challenges for pedestrians or
passersby when improperly placed at the end of a ride, or when knocked over.
Using the established value of $2.48/sq ft for outdoor dining without barrier, and the low-
end of the estimated square footage occupied by shared mobility devices (12 sq ft), the
monthly fee per devices would be $29.76, or $0.98 per device per day. Based on this
calculation, staff recommends Council establish the proposed daily Share Mobility Use
of PROW Fee of $0.98 per device per day.
Daily Per Device Shared Mobility Use of PROW Fee Calculation
Outdoor Dining per Square-foot Fee
Without
Barrier
$1.97
Without
Barrier
$2.48
Partially
Enclosed
$2.81
Partially
Enclosed
$3.52
Shared Mobility
Device
Square-Footage
12 $0.78 $0.98 $1.11 $1.39
16 $1.04 $1.30 $1.48 $1.85
18 $1.17 $1.47 $1.66 $2.08
If established by Council the Shared Mobility Use of PROW Fee would be collected at
the beginning of the month and calculated based on the number of devices in each
operator’s fleet at the first of the each month.
Possible Shared Mobility Use of PROW Fee Alternatives
Increase or reduce the fee: The proposed Use of PROW Fee was calculated
based on the value of the PROW as was established in for the Outdoor Dining
License Fee. Some Shared Mobility Devices, such as e-scooters, are removed from
the PROW for charging at night. Council could consider reducing the fee for e-
scooters based on their evening removal, however, most non-permanent outdoor
7 of 8
dining areas are also removed at night. On the other hand, because few devices
lock to stationary objects like bike racks, the devices can easily be knocked over in
which case the device’s occupied area is much larger. Council may consider
increasing or decreasing the Use of PROW Fee based on these or other reasons.
Forego or postpone the Use of PROW Fee: Council may consider foregoing the
Use of PROW fee all together, or adopt the fee and schedule the fee to begin
collection after the Shared Mobility Pilot Program term has completed. Participants
in the pilot program will pay cost-recovery fees for administration and enforcement,
and levying an additional fee on operators may hinder smaller operators from
participating in the pilot program. Council may consider postponing the collection of
the Use of PROW Fee until after the pilot term in order to reduce the cost of entry to
the pilot program.
Financial Impact and Budget Actions
The City will select up to four operators to participate in the Shared Mobility Pilot
Program. Staff anticipates that the program will launch with approximately 3,000
devices. If the proposed rate set forth in this report is applied at the start of the Pilot
Program staff projects additional monthly revenue of approximately $89,000. Revenues
will be booked to 01700003.403460 (Shared Mobility PROW Fee) and the revenue
budget will be adjusted during the FY 2018-19 midyear budget.
Prepared By: Kyle Kozar, Bike Share Coordinator
Approved
Forwarded to Council
8 of 8
Attachments:
A. Mobility Strategic Goal Update and Discussion (WebLink)
B. Staff Report Pilot Program for Shared Mobility Devices (WebLink)
C. Second Reading and Adoption of Ordinance Amending SMMC 3.21 (WebLink)
D. Disabilities Commission_Letter to Planning Division re Proposed Use of Public
Property Fee_072418
E. Resolution - Shared Mobility Fee - 08282018
1
City Council Meeting: August 28, 2018 Santa Monica, California
RESOLUTION NUMBER __________ (CCS)
(City Council Series)
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF SANTA MONICA ESTABLISHING A SHARED MOBILITY DEVICE PUBLIC
RIGHT OF WAY USE FEE
WHEREAS, the City consists of just over eight square miles of land, which is home
to approximately 90,000 residents and has a day-time population that surges to 250,000
as employees and tourists travel to the City; and
WHEREAS, the City has embraced the concepts of shared mobility as low
emissions options that can facilitate sustainability goals, improve local air quality, enable
people to move without a car, reduce pressure on vehicle lanes and parking spaces, and
increase overall access and mobility; and
WHEREAS, the City’s public rights-of-way are designed to accommodate a
multimodal transportation system and are heavily utilized by residents, employees,
tourists, and other visitors; and
2
WHEREAS, shared mobility creates new challenges in managing streets,
sidewalks, and public spaces, and raises questions about new commercial uses o f the
public right-of-way; and
WHEREAS, on June 26, 2018, Council created a 16-month shared mobility pilot
program to facilitate the use, operation and regulation of shared mobility devices in the
City; and
WHEREAS, Santa Monica Municipal Code Section 2.72.010 authorizes the City to
establish fees and charges for the private commercial use of public property; and
WHEREAS, the City now seeks to create and adopt a fee to charge shared mobility
device operators for their use and temporary privatization of public property to conduct
private commercial business activities.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA
DOES RESOLVE AS FOLLOWS:
SECTION 1. Each Operator in the Shared Mobility Device Pilot Program shall pay
a Shared Mobility Device Public Right of Way Use Fee of $.98 per device per day.
SECTION 2. The fees established by this resolution shall be effective as of
September 17, 2018.
3
SECTION 3. The City Clerk shall certify to the adoption of this resolution, and
thenceforth and thereafter the same shall be in full force and effect.
APPROVED AS TO FORM:
________________________
LANE DILG
City Attorney