Chapter 3.21 SHARED MOBILITY DEVICE PILOT PROGRAM

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.

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.

(Added by Ord. No. 2578CCS § 1, adopted 6/26/18)

§ 3.21.030 Prohibited conduct.

Notwithstanding any other provision of this Code, no person may:

Display, offer or make available for rent any shared mobility device within the City, unless the person has first obtained: (1) a valid shared mobility operator permit; and (2) a business license issued in accordance with Chapter 6.04 of this Code;

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

§ 3.21.040 Maximum number of shared mobility operator permits and shared mobility devices permitted.

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.

(Added by Ord. No. 2578CCS § 1, adopted 6/26/18)

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 propose 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.

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 operators or devices pursuant to Subsection (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.

§ 3.21.050 Shared mobility operator permit application procedure, fees and requirements.

No operator may be granted authorization for less than two hundred fifty 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.

(Added by Ord. No. 2578CCS § 1, adopted 6/26/18)

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.

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.

§ 3.21.060 Shared mobility operator selection.

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:

(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; 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;

(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 in the City and other jurisdictions, including copies of the applicant's operating permits for all such jurisdictions,

(ii)

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,

(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, a program by which the applicant will receive information about and notify users of inappropriate use,

(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

(viii)

Any other requirements set forth by administrative regulation.

(Added by Ord. No. 2578CCS § 1, adopted 6/26/18)

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.

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.

§ 3.21.070 Limitations on City liability.

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 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.

(Added by Ord. No. 2578CCS § 1, adopted 6/26/18)

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:

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 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.

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 Chapter is automatically suspended. In order to reinstate the permit, the permittee shall provide a new certificate and policy of insurance to the City.

§ 3.21.080 Grounds for revocation, suspension or denial.

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.

(Added by Ord. No. 2578CCS § 1, adopted 6/26/18)

A shared mobility operator permit may be revoked, suspended, or denied by the Director based upon any of the following grounds:

An applicant or operator, including its employees, managers, officers, principals, directors, owners, contractors, representatives, or agents:

(1)

Making one or more false or misleading statements, or material omissions on the permit application, during the application process, or during the pilot program;

(2)

Failing to provide information requested or required by the City;

(3)

Operating or proposing to operate in a manner that endangers public health or safety; or

(4)

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.

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.

(Added by Ord. No. 2578CCS § 1, adopted 6/26/18)

§ 3.21.090 Pilot program term.

Permits issued pursuant to this Chapter shall terminate and be of no further force or effect beyond June 30, 2021, unless otherwise extended or terminated earlier by the City.

(Added by Ord. No. 2578CCS § 1, adopted 6/26/18; amended by Ord. No. 2627CCS § 1, adopted 12/10/19; Ord. No. 2630CCS § 1, adopted 2/11/20; Ord. No. 2639CCS § 1, adopted 5/26/20; Ord. No. 2666CCS § 1, adopted 3/23/21)

§ 3.21.100 Impoundment of devices.

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.

The City Council may adopt impound fees by resolution, which shall reflect the City's enforcement, investigation, storage and impound costs.

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.

(Added by Ord. No. 2578CCS § 1, adopted 6/26/18)

§ 3.21.110 Enforcement.

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 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.

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.