O26301
City Council Meeting: February 11, 2020 Santa Monica, California
ORDINANCE NUMBER 2630 (CCS)
(City Council Series)
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
SANTA MONICA AMENDING SANTA MONICA MUNICIPAL CODE SECTION 3.21.090
TO EXTEND THE TERM OF THE FIRST SHARED MOBILITY DEVICE PILOT
PROGRAM TO JUNE 30, 2020, AND CREATING SANTA MONICA MUNICIPAL CODE
CHAPTER 3.22 TO ESTABLISH A SECOND SHARED MOBILITY DEVICE PILOT
PROGRAM AND RELATED PERMITTING AND OPERATOR SELECTION PROCESS
WHEREAS, the City of Santa Monica consists of just over eight square miles of
land, which is home to 90,000 residents, the job site of 300,000 workers, and a destination
for as many as 500,000 visitors on weekends and holidays; and
WHEREAS, the City's public rights-of-way are designed to accommodate a
multimodal transportation system and are heavily utilized by residents, workers and
visitors; and
WHEREAS, in late 2017 and early 2018, in part due to rapid technological
advancements, the City's public rights-of-way were flooded with new, unpermitted
commercial shared mobility systems and devices, including in particular electronic
scooters; and
WHEREAS, the rapid, unpermitted proliferation of such systems and devices
created serious safety hazards for pedestrians, bicyclists and drivers; impeded pedestrian
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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, in response to the rapid, unpermitted proliferation of such systems
and devices, and the serious safety hazards created by their use, on March 6, 2018, the
City adopted Ordinance No. 2570, which enacted Santa Monica Municipal Code
(“SMMC”) Chapter 3.21 to establish interim operating regulations for shared mobility
systems and devices and require operators to first obtain a vending permit prior to
displaying a shared mobility device for rent in public; and
WHEREAS, to create a longer-term shared mobility device pilot program that
would 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, on June 26, 2018, the City adopted Ordinance No. 2578, which
repealed and replaced SMMC Chapter 3.21 to establish a 16-month shared mobility
device pilot program (the “first pilot program”) to manage dockless electronic scooter and
bicycle systems operating in the public right-of-way; and
WHEREAS, in September 2018 the City launched the first pilot program with four
shared mobility operators; and
WHEREAS, following the launch of the first pilot program, people quickly took to
riding shared mobility devices, generating a total of 2,673,819 trips from October 2018 to
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October 2019, with forty-nine percent of all shared mobility device riders reporting that
they would have otherwise traveled in a car; and
WHEREAS, on November 12, 2019, City staff presented to the City Council a
summary of the findings, considerations, and lessons learned from the first pilot program
and sought direction from the City Council on, and alternatives for, long-term regulatory
and permitting structures for shared mobility services in Santa Monica; and
WHEREAS, on November 12, 2019, Council directed staff to develop a second
pilot program that reduces the number of operators, maintains f lexibility to adapt the
evolving industry, and focuses efforts towards ensuring customer reliability, affordability,
and access, while improving safety, rider behavior, sustainability, and financial outcomes;
and
WHEREAS, on November 12, 2019, Council also directed staff to extend the term
of the first pilot program to May 17, 2020 to allow staff time to develop the second pilot
program, solicit and select operators, and coordinate a transition period between the two
pilot programs; and
WHEREAS, on December 10, 2019, the City adopted Ordinance 2627, which
amended SMMC Section 3.21.090 to extend the term of the first pilot program to May 17,
2020; and
WHEREAS, the City now seeks to further extend the term of the first pilot program
to June 30, 2020, and to create a second pilot program that continues to 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
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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.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA
DOES HEREBY ORDAIN AS FOLLOWS:
Section 1. Santa Monica Municipal Code Section 3.21.090 is hereby amended as
follows:
Permits issued pursuant to this Chapter shall terminate and be of no further force
or effect beyond June 30, 2020, unless otherwise extended or terminated earlier by the
City.
Section 2. Santa Monica Municipal Code Chapter 3.22 is hereby created as
follows:
3.22 SECOND SHARED MOBILITY DEVICE PILOT PROGRAM
3.22.010 Purpose. Consistent with the City’s goals of enhancing mobility and
access, easing traffic congestion, and promoting sustainability, this Chapter creates a
second limited term pilot program to continue 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. The second pilot program also seeks to continue to recover the
costs to the City of overseeing and enforcing the operation and regulation of a shared
mobility device pilot program.
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3.22.020 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) “Mobility officer” shall mean the City’s mobility manager or designee.
(d) “Operator” shall mean any person or business entity selected by the City to
participate in the second shared mobility device pilot program pursuant to this Chapter.
(e) “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.
(f) “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.
(g) “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 moped, as defined by California Vehicle Code Section 406; 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.
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3.22.025 Administrative Regulations
(a) The d irector 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.
3.22.030 Prohibited Conduct
Notwithstanding any other provision of this Code, no person shall:
(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
issued in accordance with this Chapter 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; or
(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.
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3.22.040 Maximum Number of Shared Mobility Operator Permits and Sh ared
Mobility Devices Permitted
(a) The mobility officer shall issue up to three shared mobility operator permits
authorizing the deployment of one or more shared mobility devices within the City. No
shared mobility operator permits shall be issued to any operator that proposes to deploy
any shared mobility device that is exclusively powered by the human body or powered by
combustion engine.
(b) The mobility officer shall establish the number of shared mobility devices
whose deployment within the City is 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 maximum number of permitted operators or devices pursuant to
Section 3.22.040(d), the mobility officer may adjust the maximum number of devices
authorized by each shared mobility operator permit. In making determinations regarding
the maximum number of authorized devices, the mobility officer shall take into
consideration market needs, the total number of devices and the total number of devices
of any particular type deployed in the City, device utilization, and any other criteria set
forth in administrative regulations. The mobility officer 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 mobility officer’s
final 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
mobility officer’s established device limitations.
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(c) No operator shall be granted authorization for less than 50 shared mobility
devices of one type.
(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.
3.22.050 Shared Mobility Operator Permit Application Procedure, Fees and
Requirements
(a) Any person seeking to obtain a shared mobility o perator permit shall submit
a written application, signed under penalty of perjury, using the form designated by the
mobility officer for that purpose.
(b) The City Council may establish permit fees and charges by resolution,
which shall:
(1) defray the City’s costs in administering and enforcing the provisions
of this Chapter; and
(2) reflect charges associated with use of public property pursuant to this
Chapter.
(c) The mobility officer shall 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:
(1) 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 ;
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or (ii) is a trustee, director, partner, or officer of that entity or of another entity that
owns or controls the applicant, except 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;
(2) 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;
(3) Information sufficient to show that the applicant is financially,
technically, and legally qualified to operate and maintain a shared mobility device
system;
(4) A description of the proposed plan of operation, including, at a
minimum, a detailed description of:
(i) The applicant’s current operations as a shared mobility
device provider in the City and other jurisdiction s;
(ii) The applicant’s proposed operations in the City
including the maximum numbers and types of shared mobility devices
anticipated to be deployed during the duration of the pilot program, the
plan for balancing deployment of 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;
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(iii) The applicant’s regulatory compliance program;
(iv) The applicant’s history of, intent to , and ability to
comply with state and local law;
(v) The applicant’s plans to implement safety programs,
including, for example, programs by which the applicant will receive
information about and notify users of inappropriate use , encourage
users to use appropriate safety devices such as helmets, and
discourage users from leaving devices in locations that create hazards
in the public right-of-way for persons with disabilities and others;
(vi) The applicant’s plans to educate users of shared
mobility devices about applicable California Vehicle Code provisions
and other applicable laws, regulations, and guidelines;
(vii) 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 to provide the City with data
necessary for the City to ensure accessibility and availability of the public
right-of-way and other public space for shared use by all, and protect the
health, welfare, and safety of the public;
(viii) The applicant’s plans for encouraging use of shared
mobility devices as a substitute for trips by car and as a linkage to
existing public mass transit systems; and
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(ix) The applicant’s plans for complying with a ny other
requirements set forth by the administrative regulations.
(5) Expect to the extent specifically requested by an applicant, a ll
applications shall be treated as public records pursuant to the California Public
Records Act and shall be distributed to all applicants in the event of any appeal by
any applicant. If an applicant believes that any portions of an application should
be exempt from treatment as a public record and distribution to other applicants,
the applicant shall specifically designate those portions and , with respect to each
such portion, provide a written explanation of the reasons for the designation.
3.22.60 Shared Mobility Operator Selection
(a) The shared mobility operator selection committee shall be established by
the mobility officer. The committee shall consist of City staff with appropriate knowledge
and experience and at least one expert in shared mobility who is not a member of City
staff, as further set forth in the administrative regulations.
(b) The committee shall review all applications and make written
recommendations to the mobility officer based on a ranking of each qualified applicant
in accordance with objective criteria set forth by this Chapter and the 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; willingness to permit application materials to be treated as public record and
made available to the public and other applicants; relevant record of the applicant’s or
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officers’, owners’ or principals’ violations of federal, state or local law, or rules and
regulations; quality, durability and safety record of proposed device s; proposed public
right of way management and safety plan; and any other objective criteria established
by the administrative regulations.
(d) Each applicant shall be provided an opportunity to submit written comments
or objections to the committee’s recommendations.
(e) The mobility officer shall set forth, in writing, the reasons supporting his or
her determinations. The mobility officer may request additional information from City
staff, any applicant, or any other source that would assist in determining the final
qualifications and rankings.
(f) The mobility officer shall grant a shared mobility device operator permit to
up to the highest three ranked applicants. Should applicants among the three highest
ranked receive the same score, a lottery shall be used to establish the final rankings for
any applicants that achieved the same score.
(g) The mobility officer shall, on a date determined by the mobility officer, post
on the City’s website, and send to all applicants by email notice of the posting with a link
to the City’s website, all of the following: the ranking determinations as to all applicants,
the determination of the highest ranked applicants to whom shared mobility device
operator permits will be issued, the written reasons supporting the mobility officer’s
determinations, and all portions of all applications other than those portions that
applicants have specifically designated with written reasons as exempt from treatment
as public records and distribution to the other applicants.
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(h) No later than 14 calendar days after the date on which the mobility officer
posts and distributes notice of the mobility officer’s determinations, an applicant may file
an appeal of the mobility officer’s determinations, with respect to that applicant only, to
the Director. The administrative regulations shall contain the process for appeal. In
connection with any appeal, no applicant shall be entitled to receive the application
materials submitted by any other applicant that the other applicant has designated with
written reasons as exempt from treatment as a public record and distribution to the other
applicants. The issuance of any shared mobility device operator permits shall be stayed
until the Director has issued his or her final determinations.
(i) In the event of an appeal by any applicant, the Director shall review the
mobility officer’s determinations in their totality de novo and, no later than 28 calendar
days after the date on which the mobility officer posts and distributes notice of the
mobility officers determinations, the Director shall either confirm the mobility officer’s
determinations or render his or her own determinations of applicant ranking and of the
applicants to whom mobility device operator permits will be issued . The Director shall
set forth, in writing, the reasons supporting his or her final determinations.
(j) The Director’s determinations under this Section shall constitute the final
decision of the City and shall not be subject to further administrative review.
(k) The mobility officer 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.
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3.22.070 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 a nd expense), and hold
harmless the City, and its council, council members, boards, board members,
commissions, commission members, task forces, task force members, officers, officials,
employees, representatives, volunteers, and agents from any and all claims, losses,
damages, injuries, or liabilities which arise out of, or which are in any way related to, the
City's issuance of or decision to approve a shared mobility operator permit; the process
used by the City in making its decision to approve a shared mobility operator permit; the
operation and use of any shared mobility device deployed by any operator who has
received a shared mobility operator permit; the classification by the operator of any
individuals or entities performing services for the operator as employees or contractors;
or the alleged violation of any federal, state or local laws by the applicant or any of its
officers, managers, employees, contractors, or agents.
(b) Maintain insurance at coverage limits, and with conditions thereon determined
necessary and appropriate from time to time, as determined by the City’s 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
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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 Ordinan ce
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
arising out of or in any way related to any claim, loss, damage, injury, or liability as to
which the applicant has an obligation to indemnify, defend, and hold harmless the City
pursuant to Section 3.22.070(a) above. The City may, at its sole discretion, participate at
its own expense in the defense of any such legal challenge, but such participation shall
not relieve any of the obligations imposed hereunder.
3.22.080 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:
(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
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(iv) Failing to comply with any requirement imposed by the provisions of
this Code (or successor provision or provisions) including any rule, regulatio n,
condition or standard promulgated pursuant to this Chapter (or successor provision
or provisions), or any term or condition imposed on the shared mobility operator
permit, or any provision of state or federal law.
(b) Conviction of the operator, to include any of its officers, principals, directors,
or owners, 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.
3.22.090 Pilot Program Term
Permits issued pursuant to this Chapter shall take effect on July 1, 2020, and be
of no further force or effect beyond January 1, 2022, unless otherwise extended or
terminated earlier by the City.
3.22.100 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
3.22.030 shall be subject to immediate impoundment by the City.
(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.
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3.22.110 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 3. 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. In particular, but without limitation, Santa Monica
Municipal Code Chapter 3.21 shall be repealed effective as of July 1, 2020. This repeal
of Santa Monica Municipal Code Chapter 3.21 as of July 1, 2020, shall have no effect on
the terms of agreements entered into between operators and the City in conjunction with
shared mobility operator permits issued pursuant to Chapter 3.21, including without
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limitation any indemnification agreements, to the extent those terms, by their nature, are
intended to have effect beyond the term of such shared mobility operator permits.
Section 4. 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, o r phrase not
declared invalid or unconstitutional without regard to whether any portion of the ordinance
would be subsequently declared invalid or unconstitutional.
Section 5. 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 11th day of February, 2020.
_____________________________
Kevin McKeown, Mayor
State of California )
County of Los Angeles ) ss.
City of Santa Monica )
I, Nikima S. Newsome, Assistant City Clerk of the City of Santa Monica,
do hereby certify that the foregoing Ordinance No. 2630 (CCS) had its
introduction on January 28, 2020 and was adopted at the Santa Monica City
Council meeting held on February 11, 2020, by the following vote:
AYES: Councilmembers Davis, Morena, Himmelrich, Winterer, Jara,
Mayor Pro Tem O’Day, Mayor McKeown
NOES: None
ABSENT: None
ATTEST:
_____________________________________ _________________
Nikima S. Newsome, Assistant City Clerk Date
A summary of Ordinance No. 2630 (CCS) was duly published pursuant to
California Government Code Section 40806.
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2/21/2020