SR 08-23-2022 10C
City Council
Report
City Council Meeting: August 23, 2022
Agenda Item: 10.C
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To: Mayor and City Council
From: Edward F King, Director, Mobility (DOT)
Subject: Introduction and First Reading of an Ordinance amending SMMC 3.22 and
adding section 3.23 to allow shared mobility services to be provided under a
contract agreement with the City
Recommended Action
Staff recommends that the City Council introduce for first reading the proposed
ordinance to do the following:
1. Amend Section 3.22.090 of the Santa Monica Municipal Code to extend the term
of the second Shared Mobility Device Pilot Program from March 30, 2023, to
September 30, 2023; and
2. Create Section 3.23 of the Santa Monica Municipal Code to establish a
contracting model for shared mobility device services.
Executive Summary
The City of Santa Monica has operated a shared mobility program since 2018. Since
July 1, 2021, the City has been in the second pilot program with four companies (Lyft,
Spin, Veo, and Wheels) who operate five distinct device types (Class 1 and 2 e-bikes,
two-wheeled electric scooters, three-wheeled e-scooters, and sit-down e-scooters).
The second pilot program ends on March 30, 2023. Pursuant to Council’s direction on
March 9, 2021, to transition shared mobility services to a contracting model, staff
recommends Council adopt the attached ordinance that would take effect on October 1,
2023 and establish that shared mobility device services are only allowed to operate in
Santa Monica when contracting with the City. The extension of the current pilot program
will provide staff the time necessary to go through the procurement process The
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ordinance would extend the second pilot program from its initial termination date on
March 30, 2023 to September 30, 2023.
A contracting model is preferred because contracting provides a stronger foundation for
cities and companies to work together toward improved outcomes such as affordability
of service, improved device safety, and mitigation of bad rider behaviors. This stronger
foundation is achieved through relationship-building, defined service level standards,
and enhanced incentives, penalties, and fees.
The contracting model will:
• Incorporate a variation of the Administrative Regulations as comprehensive
terms and conditions, Service Level Agreements (SLAs), and Key Performance
Indicators (KPIs) within the contractual agreements with the selected operator(s).
• Reduce the number of operators but maintain enough devices to meet rider
demand.
• Improve reliability, affordability, and availability of shared mobility options while
improving safety, sustainability, and administrative outcomes.
• Seek to include multiple device types to meet an array of mobility needs.
• Monitor technological modifications to shared mobility vehicles and integrate
solutions to mitigate bad rider behavior such as improperly parked vehicles and
sidewalk riding.
• Maintain open and productive partnerships between the City and the operator(s).
• Generate cost recovery/revenue through innovative partnerships, sponsorships,
and revenue sharing models to ensure that costs are recovered to oversee and
manage the program.
This staff report requests authority to issue the Request for Proposals (RFP) to
implement the contracted model and extend the second pilot program through
September 30, 2023, to allow staff time to develop the contracting model, identify
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members of the selection committee, complete a procurement process, negotiate with
operators, coordinate a transition period, and launch service in October 2023 while
maintaining continuity in shared mobility service.
The selection committee will select the recommended shared mobility device
operator(s) for the contracting model through an RFP process scheduled for release in
Fall 2022. Staff will then return to Council in Summer 2023 to recommend the contract
award(s) with the selected operator(s).
Background
Since the 2015 launch of the City-owned Breeze Bike Share system and subsequent
rollout of electric shared mobility devices in 2017, shared mobility device services have
been a valued component of Santa Monica’s local transportation network. By promoting
alternatives to car trips, the shared mobility industry has shifted from an era of
disruption to one of integration within Santa Monica’s transportation network. Shared
mobility services are ideal for Santa Monica because they provide flexibility, are usable
year-round, provide first/last mile connections to the public transit network, and feel safe
and reliable for many people to use on the 100+ mile bike network, much of which was
installed in the last decade since City Council adopted the Bike Action Plan.
In September 2017, shared e-scooters were introduced by a private operator in Santa
Monica. The new shared micromobility devices (e-scooters, e-bikes, etc.) provide lower-
emission mobility options for short trips around town. These devices aligned with City
goals to reduce transportation emissions, mitigate congestion, and improve community
members’ access to destinations.
On June 26, 2018 (Attachment A), Council approved the creation of a Shared Mobility
Pilot Program to develop new area of policy, regulation, operation, and enforcement for
shared mobility devices in Santa Monica. System performance improved during the first
pilot program, which officially launched in September 2018. However, challenges
remained in managing the public right-of-way (PROW), encouraging public safety,
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adapting old regulations to new business types, and ensuring companies are
accountable for public outcomes.
On March 9, 2021 (Attachment G), staff returned to Council to provide an update on the
first pilot program and to recommend shifting from a permitted pilot program to a longer-
term contract model that would strengthen the City’s partnership with operators. Council
directed staff to implement a second Shared Mobility Pilot Program to allow time for
COVID-19 related uncertainty to settle and shift to a contracted model on March 31,
2023.
Background Timeline
Date Description Attachment
September 2017 Bird Rides, Inc. e-scooter sharing launched in
Santa Monica.
N/A
June 26, 2018 The City formally approved a Shared Mobility
Device Pilot Program and associated fees to
develop a new area of policy, regulation,
operation, and enforcement for shared mobility
devices in the City.
A
August 28, 2018 The City approved a Shared Mobility public right
of way (PROW) usage fee to fund the creation of
infrastructure to improve the safety for riders and
citywide streets.
B
September 17,
2018
The Shared Mobility Pilot Program launched with
Bird, Jump, Lime, and Lyft, all of whom were
selected through a competitive process.
N/A
November 12, 2019 Staff returned to Council to present pilot program
outcomes. The program showed high ridership
and utilization, but challenges remained in rider
behavior, PROW management, and provider
regulation.
C
January 28, 2020 Council directed staff to create a second pilot
program to build on the successes of the first and
better address challenges.
D
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February 11, 2020 The City extended the term of the first pilot
program, and the City subsequently released in
March 2020 a Request for Applications (RFA) for
the second pilot program.
E
May 12, 2020 Due to the COVID-19 pandemic, the second pilot
program was postponed, and the first pilot
program was extended until April 30, 2021. The
Shared Mobility PROW fee was revised from $1
per device per day to $0.20 per trip.
F
November 2020 City-owned Breeze Bike Shared program
terminated, and Lyft launched e-bikes that were
originally permitted under the pilot program but
not initially deployed.
N/A
March 9, 2021 Council directed staff to implement a 21-month
second Shared Mobility Device Pilot Program.
Then, following the second pilot program, shift
from a temporary permit model to a longer-term
contracting model for shared mobility services in
the City.
G
July 1, 2021 The City launched the second pilot program. N/A
May 10, 2022 Staff released an Information Item providing an
update on status of the second pilot program.
H
Discussion
The first and second pilot programs were developed to test shared e-scooters and e-
bikes operated by private companies, using a flexible approach that could be
responsive to community needs and technological advancements within an evolving
industry. Ridership of shared mobility devices was strong from the first month of the first
pilot program, with a total of 3,050,000 trips in 2019. When the COVID-19 pandemic
took hold in March 2020, travel throughout the City dramatically declined across all
modes. In 2021, during the first six months of the second pilot program, movement in
the City continued to be impacted by the pandemic, with shared mobility ridership
remaining at only 26% of pre-pandemic levels.
Between July 1, 2021, and June 30, 2022, riders generated 849,916 trips, with a typical
trip covering 1.46 miles in 10.1 minutes. While ridership growth has been slow to return
to pre-pandemic levels, a core userbase continues to rely on these services for regular
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transportation needs. According to a City-issued user survey conducted in January
2022, 43% of riders live in Santa Monica. These local riders make frequent use of
shared mobility, with more than half (50.1%) of responding Santa Monica residents
saying they use shared e-scooters and e-bikes once per week or more.
Figure 1: Shared Mobility trips by month for all providers, split across calendar years.
Source Mobility Data Specification (MDS) data collected through internal City data
pipeline, Remix, and Ride Report.
Shifting to a Contracting Shared Mobility Device Services Model
The first and second pilot programs demonstrated rapid adoption and ridership. Looking
ahead, Santa Monica will continue to be impacted by private sector company volatility
as the industry adapts to financial challenges. As ridership and rider revenue have
slowed and financial viability has come under increased scrutiny, many shared mobility
operators have had to downsize and/or change operational strategies, including
decreasing staffing, service levels and withdrawing from some markets. These trends
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are causing cities to consider adjustments to regulatory and partnership structures to
ensure long-term reliable, consistent, available, and affordable service.
Multiple cities are shifting away from permitting models to contracts for shared mobility
services. Portland, Oregon, and Denver, Colorado, both shifted from permitting models
to contracts for shared mobility services. Following a second pilot program for electric
scooters, Portland recently launched an RFP to solicit bids for up to two companies.
Currently, Denver has contracts with two companies who operate both e-scooters and
e-bikes. Comparing Denver’s shared mobility ridership last quarter before their
contracted model took effect – Q1 2021 – with the same quarter one year later, there is
a 73% increase in daily rides. Denver communicated to staff that they have seen
improvements in operation and service since switching to a contracting model.
Relative to the current permitting model, contracting provides a stronger foundation
for cities and companies to work together toward contractually defined outcomes. The
contract model focuses regulatory efforts in areas with clearly defined performance
expectations and seeks to align them with reporting and enforcement processes. This
approach narrows the focus on regulations, with emphasis on oversight and
relationship-building with operators through continued development of technology-
based tools for management and enforcement. Companies operating under contract
have a longer-term commitment to operations than permitted entities, which enables
them to prioritize long-term investment in the market. Examples include newer devices,
innovative technologies (e.g., technologies to minimize sidewalk riding), transit
integration opportunities, supplemental revenue options such as sponsorships, and
diverse payment plans that will improve affordability for users.
Affordability for All Continues to be a Challenge
The City requires each permitted provider to offer low-income qualified rates that are
easily accessible. The low-income programs each of the four current operators provide
are based on requirements related to some combination of home zip code, participation
in state or federal means-tested aid programs, and Santa Monica College (SMC)
enrollment status. Incentives range from monthly memberships at a reduced price,
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reduced or eliminated unlock fees, and per-minute trip costs ranging from $0.05 to
$0.29 cents per minute. While these low-income programs offer meaningful affordability
benefits for participants, they represent a small share of overall operations in Santa
Monica. Based on complete reporting from current operators within Santa Monica, a
total of 7,770 trips were taken between October 2021 and April 2022, representing
about 2% of the 364,000 overall trips taken in that time.
Beyond the low-income rate offering, the four current operators offer similar payment
plan options and charge a similar rate per trip. All four operators charge a $1 unlock fee
and between $0.33 - $0.49 per minute of use, a substantial increase from rates charged
at the end of the first pilot program ($0.23 - $0.30 per minute). While the second pilot
program has delivered cost reduction for some shared mobility options, primarily for
low-income riders and casual users, rates continue to be much higher than public
transportation options, dominating the overall cost of a multi-modal transit/shared
mobility trip. For example, BBB costs $1.10 per trip using the regional Transit Access
Pass (TAP) or mobile ticketing ($1.25 cash fare) and Metro bus and rail lines cost $1.75
per trip. By comparison, a typical shared mobility trip that starts within 100 feet of the
Downtown E (Expo) Line station lasts 9.5 minutes. Thus, a traveler who takes the train
and then finishes their journey via shared an e-scooter or e-bike would pay $1.75 for the
rail portion of their trip and as much as $5.66 for the shared mobility portion. In addition
to presenting affordability issues, this mismatch of fees limits the role of shared mobility
in linking users to transit and advancing the City's goal of multi-modal connectivity.
Reflecting the cost to ride, the current userbase skews wealthy. Based on the January
2022 bi-annual user survey, 47% of participants make more than $100,000 per year and
61% make $75,000 or more. The issue of affordability for users who make less than
$100,000 is a barrier for habitual shared mobility use. When asked “What barriers
prevent you from using e-scooters or e-bikes in Santa Monica?” 36% of survey
respondents overall selected too expensive (the second most selected reason).
For low- and middle-income users, expense is even more of a barrier, with 42% of users
who earn less than $100,000 and 47% of users earning less than $75,000 citing cost as
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a barrier to entry. Under the current Shared Mobility Pilot Program permit structure, the
City does not set rider rates or equity efforts and could not do so without a contract or
other binding action. Under a contract model, the City seeks to ensure dependable
quality service by negotiating contract terms pertaining to affordability, equity,
community engagement, operational service levels, penalties, and contract termination.
Shared Mobility Contract Structure
Consistent with Council direction to pursue a contracted model for the next phase of
shared mobility in Santa Monica, staff is preparing to solicit proposals to select and
negotiate agreements with up to two vendors to provide shared mobility services under
contract with the City. The contracted model will be structured as follows:
1. Contract Term: 3-year (beginning October 2023), with renewal options and final
reporting at the end of each contract term.
2. Contract Authority: The proposed ordinance (Attachment I) defines basic
program procedures including application and selection and authorizes staff to
develop an RFP for soliciting bids from providers. Day-to-day oversight will be
managed through negotiated contractual Service Level Agreements (SLAs).
3. New Device and Operations Selection Process: The City will launch a formal
RFP selection process to identify no more than two operators with the best
available devices to participate in the next iteration of the program. Devices could
include e-bicycles, two-wheeled e-scooters, sit-down e-scooters, etc. Proposed
devices would have to meet the City’s definition of device and comply with all
federal and state laws. The selected operator(s) would begin operations on or
after October 1, 2023. The City seeks operators with operational experience, a
diversity of high-quality devices, tiered membership options, offer
technologies/systems that reduce sidewalk riding and haphazard parking, and
provide a commitment to reliable, equitable and affordable access. Provision of
devices accessible to people with disabilities would be encouraged.
4. Scale of Program: The number of devices will be negotiated in the contract,
adjusted to meet demand and drive ridership growth. Fleet caps could be
adjusted based on demonstrated and sustained fleet utilization built into the
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contract. Minimums and maximums of fleet counts will be determined in each
neighborhood within the City of Santa Monica as defined in contract negotiations.
Operator Selection Priorities
Staff will structure the procurement selection criteria around clearly defined performance
expectations with a focus on the outcome priorities described below. Staff will seek to
optimize community benefits of the program, and Council direction will assist if/when
financial challenges emerge, and tradeoffs need to be considered. To both streamline
program administration and facilitate greater investment on the part of individual
operators, the City will seek to procure the services of up to two operators.
Performance
Category
Points of Emphasis
Equitable, Affordable,
and Effective
Transportation
• Fare structures and membership options that provide
affordability for users at all income levels
• Easy access to devices throughout the City
• Operations that promote multi-modal connectivity
• Integrated connections with the City of Los Angeles and
other regional partners
Safety and Order • Devices that make use of the best available technologies
to keep riders and non-riders safe
• Operations and maintenance designed to keep streets
and sidewalks free and clear of parked devices
• Facility upkeep and road safety trainings for operator
staff
Environmental
Sustainability
• Fleet operations and device lifecycles that minimize
greenhouse gas emissions and other environmental
harms
• Service levels designed to maximize the displacement of
car trips and resulting emissions and congestion
Community Partnership • Active and thoughtful community outreach
• Provision of secure data streams to the City for program
administration, evaluation, and planning applications
• Corporate stability and the application of a sound and
sustainable business model
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Performance
Category
Points of Emphasis
System Maintenance • Shared Mobility Drop Zones/Bike Share Station
maintenance
• Responsiveness to community concern and complaints
• System distribution/rebalancing
Organizational Stability • Comprehensive data sharing agreements
• Information pertaining to revenue and growth projections
The procurement will continue to seek improvements in device quality and advanced
safety features/technologies that can help to drive safe operations, improve rider
behaviors, and reduce occurrences of haphazard parking. Such technologies and
operational measures may include geo-fencing prohibited zones, on-device modules
that detect and deter sidewalk riding, parking incentives, built-in locking mechanisms,
and in-app messaging.
Operator(s) will be required to provide the city with system data compatible with MDS
and General Bikeshare Feed Specification (GBFS) data application program
interfaces (API), along with monthly reporting. The final terms of contractual
agreement(s) will be negotiated with the selected operator(s).
Cost Recovery and Sponsorship Options
Transportation services historically struggle to turn profit in the absence of federal,
state, and/or local subsidy. For example, the City-owned Breeze Bike Share system
was operated under a 5-year contract and was supported by user revenues,
sponsorship revenue, and a small amount of City funds. Santa Monica, which currently
finds itself at the top of the cost spectrum for shared mobility operators, will need to be
flexible and creative to fully recover internal costs of program administration while
enabling robust and useful shared mobility services.
As many shared mobility companies are withdrawing from cities due to financial strain,
cities who want continued operations are adjusting fees and supporting alternative
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revenue generation like sponsorships in exchange for increased service levels, reduced
user fares, and expanded equity programs.
Through contract negotiations, the City will ensure full cost recovery for staff time and
the associated software services needed to manage the program. Through the
procurement process, the City will explore and negotiate a variety of strategies to
balance the goals of affordability for users, long-term financial viability of operations,
reliable/accessible service, and minimum cost recovery for administrating the program.
With a contract model, operators are better positioned to use sponsorships to offset
costs of daily operations, fleet, and infrastructure maintenance. Staff will request details
about sponsorship plans as part of applications submitted via the RFP process like the
City’s agreement with Hulu, which helped generate revenue to cover Breeze Bike Share
operational costs, membership programs for low-income users, and annual
memberships. Per City guidelines, the City will approve contract terms which ensure
that sponsorship aligns with the City’s Big Blue Bus advertising policy.
Through contract negotiations, sponsorship agreements could also include provisions
for revenue sharing with the City of Santa Monica above agreed-upon revenue
thresholds. Any sponsorship and/or revenue sharing terms will be coordinated with the
Community Partnerships Program that was approved by Council on January 26, 2021.
Staffing Implications
The permitting, oversight, and enforcement required to ensure compliance with
regulations of the first and second pilot programs has demanded considerable
administrative and enforcement staff commitment consisting of a full-time program
coordinator and a limited-term Code Enforcement officer. Following citywide
restructuring in mid-2020, the Code Enforcement and Mobility divisions absorbed those
duties among existing staff, at times to the detriment of other work efforts and priorities.
It is anticipated that a longer-term contractual partnership with fewer shared mobility
companies will lighten administrative oversight and enforcement efforts required to
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ensure that the selected shared mobility operator(s) maintain their service level
obligations. The implementation of this model will uphold community expectations for
public safety, access for all users, affordability, reliability, and data collection/analysis.
The full cost of service oversight and enforcement will be recovered through terms
agreed upon as part of contract negotiations and/or revenue sharing. Staff will assess
the staffing needs required to administer the program. Any personnel changes would
align with the budget process.
In addition to shifting from permitted to contracting shared mobility operations, staff
recommends amendments to the Municipal Code to extend the ongoing second Shared
Mobility Pilot Program from March 30, 2023, to September 30, 2023. Should Council
approve the pilot extension and direct staff to pursue a contracting model, over the next
ten months staff would:
• Work with currently permitted operators (Lyft, Spin, Veo and Wheels) to ensure
continuous shared mobility service through the remaining term of the second pilot
program.
• Complete the scope of work for contractual shared mobility services.
• Complete an RFP solicitation process to competitively select up to two operators,
pursuant to the procurement process and return to Council at a later date with
recommendation of award(s).
• Negotiate contract terms with selected operator(s).
• Return to Council for award of the contract(s) and authorization to execute the
contract(s).
Environmental Impact Statement
CEQA applies only to projects that have the potential for causing a significant effect on
the environment. A project is not subject to CEQA under CEQA Guidelines Section
15061(b)(3) “where it can be seen with certainty that there is no possibility that the
activity in question may have a significant effect on the environment.” The proposed
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ordinance to change regulation of shared mobility devices from a permit system to a
contracted service model would not result in a physical environmental effect on the
environment.
In addition, Section 15302 exempts Class 1 projects from CEQA, which include the
“operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of
existing public or private structures [or] facilities, including streets, sidewalks, bicycle
and pedestrian trails, and similar facilities.” The project consists of the regulation of
shared mobility devices within the public right of way because it consists of alternate
operation (and permitting) of public streets, sidewalks, and similar facilities that do not
create additional automobile lanes. The shared mobility devices are required to be
operated within existing public streets, would utilize existing shared mobility stations,
and would not necessitate the construction of new vehicle travel lanes for operation.
Therefore, the project qualifies as a Class 1 exemption.
Furthermore, Section 15308 also provides an exemption for Class 8 projects, which
include actions taken by regulatory agencies, as authorized by state or local ordinance,
to assure the maintenance, restoration, enhancement, or protection of the environment
where the regulatory process involves procedures for the protection of the environment.
The proposed ordinance is intended to regulate shared mobility devices for the
protection of the environment, including people. Therefore, the proposed project does
not have the potential for causing a significant effect on the environment and is
categorically exempt from CEQA review under CEQA Guideline sections 15302 and
15308.
Financial Impacts and Budget Actions
There is no immediate financial impact or budget action necessary as a result of the
recommended action. The new program to be developed will provide for full cost
recovery so that all costs to administer the program, as detailed in the Staffing
Implications section, will be cost neutral and covered by revenues from the permanent
program. Staff will return to Council as part of the biennial budget process if specific
budget actions are required in the future.
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Prepared by: Barbara Jacobson, Transportation Planning Associate
Prepared By: Trevor Thomas, Transportation Planning Associate
Approved
Forwarded to Council
Attachments:
A. Staff Report 3126 - June 26, 2018 (Web Link)
B. Staff Report 3134 - August 28, 2018 (Web Link)
C. Staff Report 3615 - November 12, 2019 (Web Link)
D. Staff Report 3877- January 28, 2020 (Web Link)
E. Staff Report 4000 – February 11, 2020 (Web Link)
F. Staff Report 4089 - May 12, 2020 (Web Link)
G. Staff Report 4389 – March 9, 2021 (Web Link)
H. Shared Mobility Program Update July 2021-March 2022 Information Item – May
10, 2022 (Web Link)
I. 3.23 ContractingSharedMobilityOrdinance 8.23.2022 hvt
J. Written Comment
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City Council Meeting: August 23, 2022 Santa Monica, California
ORDINANCE NUMBER _________ (CCS)
(City Council Series)
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
SANTA MONICA AMENDING SANTA MONICA MUNICIPAL SECTION 3.22.090 TO
EXTEND THE TERM OF THE SECOND SHARED MOBILITY DEVICE PILOT
PROGRAM FROM MARCH 30, 2023 TO SEPTEMBER 30, 2023, AND CREATING
SANTA MONICA MUNICIPAL CODE CHAPTER 3.23 TO ESTABLISH A
CONTRACTING MODEL SHARED MOBILITY DEVICE PROGRAM
WHEREAS, in September 2017, shared electric scooters were introduced by a
private operator in Santa Monica; and
WHEREAS, in recognizing that a regulated shared mobility device program could
be a valued component of Santa Monica’s local transportation network by promoting
alternatives to car trips, in June 2018, the City approved a Shared Mobility Device Pilot
Program and associated fees to develop a new area of policy, regulation, operation, and
enforcement for shared mobility devices in the City; and
WHEREAS, in March 2021, Council adopted a Second Shared Mobility Device
Pilot Program, and also directed staff to, upon the conclusion of the Second Shared
Mobility Device Pilot Program, shift from a temporary permitting model to a longer-term
contracting model with fewer operators for shared mobility services in the City; and
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WHEREAS, the contracting model focuses regulatory efforts in areas with clearly
defined performance expectations while seeking to align them with reporting and
enforcement processes; and also narrows the focus on regulations, with emphasis on
oversight and relationship-building with operators through continued development of
technology-based tools for management and enforcement; and
WHEREAS, although the City will now contract directly with Shared Mobility Device
System operators instead of issuing permits, the Santa Monica Municipal Code must still
be amended to continue prohibiting certain shared mobility device conduct for both
authorized operators and non-authorized operators.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA
DOES HEREBY ORDAIN AS FOLLOWS:
SECTION 1. Section 3.22.090 of the Santa Monica Municipal Code is hereby
amended as follows:
3.22.090 Pilot program term.
Permits issued pursuant to this Chapter shall take effect on July 1, 2021, and be of
no further force or effect beyond March 30 September 30, 2023, unless otherwise
extended or terminated earlier by the City.
SECTION 2. Chapter 3.23 of the Santa Monica Municipal Code is hereby added
as follows:
3.23.020 Definitions.
(a) “Abandon” shall mean leaving an item unattended for any length of time.
(b) “Operator” shall mean any person or business entity selected by the City to
operate a Shared Mobility Device System pursuant to this Chapter.
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(c) “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.
(d) “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.
(e) “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 and that complies with all Federal and State of
California laws, 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 pedicab as regulated in Chapter 6.50 of this Code; or a device
operated by the Los Angeles County Metropolitan Transportation Authority.
(f) “Shared mobility device system” shall mean the deployment, maintenance,
service, storage, or recovery of one or more Shared Mobility Device that is being vended
or made available for rent or other commercial use in the City of Santa Monica.
3.23.030 Prohibited Conduct regarding operation of a Shared Mobility Device or
Shared Mobility Device System
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 shared mobility device is part of a shared mobility device system
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operated by a person or company contracting with the City for shared mobility device
services in accordance with the provisions of this Chapter;
(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: (1) obstructs travel upon or blocks access to a public right-of-way; (2)
poses an immediate public safety hazard; or (3) is otherwise prohibited by applicable laws
or administrative regulations;
(d) Engage in any sports or recreational activity with any shared mobility device
that endangers public health or safety or threatens injury to persons, or damage to
property.
3.23.040 Limitations on City liability
To the fullest extent permitted by law, the City shall not assume any liability
whatsoever with respect to the operation of any shared mobility device system by shared
mobility device operators contracting with the City. As a condition of being awarded a
contract to operate a shared mobility device system, a bidder shall be required to meet
all of the following conditions:
(a) The bidder 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 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
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operation of a shared mobility device system; 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 bidder 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 bidder’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.
(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 bidder has an obligation to indemnify, defend, and hold harmless the City
pursuant to Section 3.23.040(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.
3.23.050 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
3.23.030 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.
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(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.
3.23.060 Enforcement
(a) Any person who violates any provision of this Chapter shall be guilty of an
infraction, which shall be punishable by a fine not exceeding two hundred fifty dollars, or
a misdemeanor, which shall be punishable by a fine not exceeding five hundred dollars
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 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.
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
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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 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 thirty
days after adoption.
APPROVED AS TO FORM:
_________________________
DOUGLAS SLOAN
City Attorney
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Vernice Hankins
From:Santa Monica City Manager's Office
Sent:Monday, August 22, 2022 7:40 AM
To:councilmtgitems
Subject:FW: 8/23 council meeting item 10C: YES to affordable and equitable bikeshare
From: Allon Percus <Allon.Percus@cgu.edu>
Sent: Saturday, August 20, 2022 10:19 AM
To: Council Mailbox <Council.Mailbox@santamonica.gov>
Cc: Santa Monica City Manager's Office <manager.mailbox@santamonica.gov>; Council Mailbox
<Council.Mailbox@santamonica.gov>; Kyle Kozar <Kyle.Kozar@santamonica.gov>; contact@smspoke.org
Subject: 8/23 council meeting item 10C: YES to affordable and equitable bikeshare
EXTERNAL
Dear Santa Monica City Councilmembers,
I am writing concerning item 10C on the council meeting agenda for August 23rd. As a Santa Monica resident, I SUPPORT
the staff recommendation for a contracting model for shared mobility services.
With the closure of the Breeze bikeshare system, shared mobility in Santa Monica currently suffers from two fatal flaws:
1)It is prohibitively expensive to use on a regular basis.
2)Youth under 18 years of age are completely excluded from using it.
I urge the council to move as quickly as possible to restore an affordable bikeshare system to Santa
Monica. Furthermore, I urge the city to ensure that the system will be available to teenagers (under the responsibility of
an adult, if needed), as are most public bikeshare systems such as LA Metro Bikeshare. As a basic matter of equity and
public health, our youth deserve every possible encouragement to use active rather than automotive transportation.
Best wishes,
Allon Percus
1105 Centinela Ave.
Santa Monica, CA 90403
Item 10.C 08/23/22
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Santa Monica City Council
Regular Meeting
8/23/2022
Public Comment
Re:Agenda Item 10.C -Introduction and First Reading of an Ordinance amending SMMC 3.22
and adding section 3.23 to allow shared mobility services to be provided under a contract
agreement with the City
Dear Honorable Mayor and City Councilmembers,
Veo is supportive of both staff recommendations in moving towards a contracted model
for shared mobility device services.
As one of the City’s current shared mobility providers, Veo is grateful to serve the Santa Monica
community and proud to call Santa Monica our home. Just over a year ago, Veo launched its
state-of-the-art class II e-bikes and stand-up scooters in the City of Santa Monica. We’ve been
busy ever since.
Earlier this year Veo moved its headquarters to Santa Monica, specifically to Third Street
Promenade in the heart of the city. We’ve more than doubled our local headquarters staff and
have plans to continue hiring locally.
We have built strong, meaningful relationships with community leaders and organizations,
learning from them and following their lead in delivering a micromobility program that suits the
needs of our community. Forming meaningful and long-lasting relationships has - and always
will be - a critical part of Veo’s ethos.
Building trust and working cooperatively with the community have resulted in tremendous
success in device utilization. Our Cosmo class II e-bikes and Astro stand-up devices account for
a significant portion of the pilot program’s aggregate ridership totals.
Veo has truly made Santa Monica its home, and we have felt the love returned from the
community in being voted Most Loved Micromobillity Vendor during the Most Loved 2022
campaign.
The move towards a longer-term contracted model is an astute and welcome evolution of the
program. However, there are two critical points for consideration that we believe should be
included in discussion as the City moves to extend the current pilot and issue a competitive RFP
for contracted services:
1. Issue no new permits during the extension phase of the pilot
program:It is inferred, but not explicitly mentioned, that the City will
Item 10.C 08/23/22
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continue to work with only the four current shared mobility operators. The
City’s original procurement process for the current iteration of the pilot
program was incredibly thorough and judicious. Potentially issuing a
temporary permit for only a few months to a fifth operator will only confuse
the public and micromobility users. Additionally, bringing in a new
operator may detrimentally affect the perception of the program as the
new operator lags in ramping up operations, familiarizing themselves with
local regulations, and building the working relationships necessary to
operate successfully in the City and with local regulators.
2. Include an employee-based operation model as a program selection
priority:The state of the micromobility industry has evolved a lot over the
past five years. Veo firmly believes that it is incumbent on a micromobility
provider to not only be a responsible operator, but a responsible employer
as well. This means hiring local employees to carry out all aspects of
operations - from battery charging, to vehicle maintenance, to device
rebalancing. Veo hires W2 employees and offers them full benefits
starting Day 1 on the job. Not only is being a job creator and working to
uplift one’s local community socially and ethically responsible, but it's also
responsible from a safety aspect as well. No franchise or gig economy
worker should have to utilize their private residence or lease their own
warehouse to repair and charge batteries. Vehicle operations should be
conducted by trained employees in a controlled, safe environment, with
constant and consistent supervision. The City has done a commendable
job in standing up fair program regulations that work for the operator and
the community. A full W2 workforce is the best solution to maintaining a
cohesive and tidy shared mobility program amongst operators and on the
streets of Santa Monica. The City should prioritize the creation of good,
stable jobs with full employee benefits from its contracted shared mobility
providers.
Sincerely,
Nick Efron
Policy & Partnerships Manager, Veo
Santa Monica, CA
Item 10.C 08/23/22
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