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ITEM 2 |
City Council Memorandum Government Relations & Transportation Policy Memo No. TP22-03
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Date: |
August 23, 2021 |
To: |
Mayor and Council |
Thru: |
Joshua H. Wright, City Manager Ryan Peters, Government Relations and Policy Manager |
From: |
Jason Crampton, Transportation Planning Manager |
Subject: |
Shared Mobility Licensing Program |
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Proposed Motion: |
Move City Council pass and adopt Resolution No. 5507 approving the Shared Mobility Licensing Program |
Background: |
In December 2019, City Council approved a one-year Shared Mobility Pilot Licensing Program. The program expired in December of 2020. The City received interest from multiple companies, but due to the Covid-19 pandemic, no companies ultimately applied to participate in the program. City Council also approved an amendment to Chapter 12 of the City Code that established parking and operating rules for electric scooters and shared mobility devices. The code amendment remains in effect. The proposed licensing program requires shared mobility (electric scooter and bicycle rental) companies to obtain an approved license agreement with the City prior to staging and renting devices within City right-of-way. The licensing program allows the City to assess fees, terminate licenses, or elect to not renew licenses for any shared mobility company that is not following program rules or being a good partner to the City, while at the same time allowing the City to continue relationships with companies that are following program rules and bringing a positive experience to Chandler. Attachment 2 summarizes licensing program rules and Attachment 3 provides a program license application with sample terms and conditions. |
Discussion: |
Shared mobility devices such as electric bicycles and electric scooters have become prevalent in many cities in the Valley and across the country. Nationally, the number of trips being taken on shared mobility devices has increased from 321,000 in 2010 to 136,000,000 in 2019. These devices can provide residents with alternative means of transportation for short trips, including connections to transit and Chandler businesses. They can also contribute to fewer vehicle miles traveled and the associated benefits such as reduced congestion, improved air quality, and reduced stress on roadways. However, when shared mobility devices first entered the market, there were not many regulations in place. Cities began to experience a number of issues such as blocked sidewalks and/or ADA required accessible spaces, an overabundance of devices often placed in a disorderly fashion, and devices left in inappropriate locations (such as in front of a single-family residence) for days or even weeks. As a result, many cities across the nation, including several Arizona jurisdictions, have developed policies and regulations to address these concerns. Scottsdale adopted an ordinance to amend the City Code to regulate scooter riders and shared mobility companies. Tempe, Gilbert, Phoenix and Mesa have each amended their city/town code to regulate scooter riders and require shared mobility companies to obtain a license agreement before being allowed to operate in each municipality. Cities that require license agreements have experienced significantly fewer negative issues associated with shared scooters and bicycles as a result of these policies. Public Outreach: In preparing the 2020 Shared Mobility Pilot Program, staff conducted a public survey, business survey, a public meeting and targeted outreach. Additionally, staff reviewed the proposed program with the Airport, Development Services, and Public Works and Utilities Council Subcommittee on September 16, 2019. Feedback was mixed regarding the preference for scooters in the community, but a strong majority of residents and businesses supported the idea of developing regulations to better manage scooters. See Attachment 4 for a summary of public outreach and feedback received. Transportation Commission: The Shared Mobility Program was reviewed at the August 18, 2021, meeting of the Transportation Commission and was recommended for approval by a vote of (7-0). |
Financial Implications: |
An application fee of $3,000 will be charged to companies interested in participating in the program. Additionally, use fees of $0.10 per ride provided and penalty fees of $50, $250, and $500 for first, second, and third offenses, respectively, will be assessed. City Council approved these fees in December 2019. Revenue collections are estimated to be $10,000 - $20,000. This estimate is based on experiences in peer municipalities but may vary due to market conditions and number of participating companies. Revenues collected will be utilized to offset program administration and enforcement costs. |
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