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Council Agenda: 10-06-2026
Item Number: 5.1(a)
DRAFT--Contact the Office of the City Clerk at (408)535-1260 or [email protected] for final document.
DRAFT
ORDINANCE NO.
AN ORDINANCE OF THE CITY OF SAN JO SE ADDING A
NEW CHAPTER 11.91 TO TI TLE 11 OF THE SAN JOSE
MUNICIPAL CODE RELATING TO THE REGULATION OF
PERSONAL DELIVERY DEVICES
WHEREAS, pursuant to the provisions and requirements of the California Environmental Quality Act of 1970, together with related State CEQA Guidelines and Title 21 of the San José Municipal Code (collectively, "CEQA"), the Director of Planning, Building and Code Enforcement has determined that the provisions of this Ordinance do not constitute a project, under File No. PP17-008 (General Proc edure & Policy Making resulting in no changes to the physical environment); and
WHEREAS, the City Council of the City of San José is the decision-making body for this Ordinance; and
WHEREAS, this Council has reviewed and considered the "not a project" determination under CEQA prior to taking any approval actions on this Ordinance;
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF SAN JOSE:
A new Chapter 11.91 is added to Title 11 of the San Jose Municipal Code, to be numbered, entitled, and to read as follows:
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Council Agenda: 10-06-2026
Item Number: 5.1(a)
DRAFT--Contact the Office of the City Clerk at (408)535-1260 or [email protected] for final document.
Chapter 11.91
PERSONAL DELIVERY DEVICES
11.91.010 Purpose
The purpose of this Chapter is to regulate the use of Personal Delivery Devices to ensure the public health, safety, and welfare of the public by maintaining clear and safe sidewalks for pedestrians, particularly those with disabilities, as well as safe roadways for bicyclists while fostering zero-emission delivery innovation.
11.91.020 Definitions
The definitions set forth in this Chapter sha ll govern the application and interpretation of this Chapter.
11.91.030 Administrative Regulations
“Administrative Regulations” shall mean t he regulations adopted pursuant to Section
11.91.120.
11.91.040 Director
“Director” shall mean the Director of Transportation or their designee.
11.91.050 Mobility Data Specification
“Mobility Data Specification” shall mean the open source digital management system, or successor standard, of application programming interfaces utilized to assist in managing transportation and shared vehicles in the Public Right-of-Way.
11.91.060 Operator
“Operator” shall mean any person or entity that is issued a permit under this Chapter to operate a Personal Delivery Device System for commercial purposes in the Public Right- of-Way or in a Public Area.
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Council Agenda: 10-06-2026
Item Number: 5.1(a)
DRAFT--Contact the Office of the City Clerk at (408)535-1260 or [email protected] for final document.
11.91.070 Personal Delivery Device
“Personal Delivery Device” shall mean an autonomous or remotely piloted motorized device primarily intended for transporting proper ty on public sidewalks, crosswalks, and roadways.
11.91.080 Personal Delivery Device System
“Personal Delivery Device System” shall mean all of the Personal Delivery Devices that an Operator utilizes for commercial purposes on City sidewalks, streets, and Public Right- of-Way or in a Public Area.
11.91.090 Public Area
“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.
11.91.100 Public Right-of-Way
“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.
11.91.110 Personal Delivery Device operator pe rmit application procedure, fees and requirements
A. The procedures set forth in Chapter 6.02 for permits and licenses shall govern the application for, investigation, approval , denial, suspension and revocation of a permit to operate a Personal Delivery Devi ce System issued pursuant to this Chapter, except as specifically provided in this Chapter.
B. Any person seeking to obtain a permit fo r the operation of a Personal Delivery Device System shall pay the City of S an José a property repair and maintenance deposit totaling Ten Thousand Dollars ($10,000) prior to permit issuance to ensure SAW:MDT:JMD
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Item Number: 5.1(a)
DRAFT--Contact the Office of the City Clerk at (408)535-1260 or [email protected] for final document.
adequate funds are available to reimburse the City for future public property repair, device impoundment and maintenance costs t hat may be incurred, including but not limited to any costs of repairing or maintaining public property damaged by the Operator or its cu stomers, administrative fines, removing Personal Delivery Devices improperly parked and addressing and abating any other violations, the permit application fee, and per Personal Deliv ery Device fees as established by resolution of the City Council.
C. The Director may specify the information that must be provided in connection with an application and the form in which the info rmation is to be provided. In addition to the information set forth in Chapter 6.02, the application shall contain, at a minimum, the following information:
1. The name and business addr ess of each person or entity that: (i) has more than a ten percent (10%) equity, participat ion, or revenue interest in the applicant; or (ii) is a trustee, director, par tner, or officer of that entity or of another entity that owns or controls the applicant, excepting persons serving in those capacities as vo lunteers, without compensation, for organizations exempt from income taxes under Section 501(c)(3), (4), or (6) of the United States 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 technically and legally qualified to operate and maintain a Personal Delivery Device System;
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Council Agenda: 10-06-2026
Item Number: 5.1(a)
DRAFT--Contact the Office of the City Clerk at (408)535-1260 or [email protected] for final document.
4. A description of the proposed plan of operation, including, at a minimum, a detailed description of:
a. The applicant’s current operations in the City and other jurisdictions;
b. The applicant’s proposed operations in the City including the plan for balancing Personal Delivery Devices for Citywide coverage, the plan for Personal Delivery Device ma intenance, levels of staff for operations and administration, and the plan for customer service;
c. The applicant’s regulat ory compliance program;
d. The applicant’s history of and abil ity to comply with state and local law;
e. The applicant’s plan to comply wit h the operating requirements in the Administrative Regulations;
D. Notwithstanding any other requirement, the Director has the authority to deny a permit to the extent that issuing a permi t would conflict with existing contractual agreements or permits issued to other Operators, lead to an overconcentration of Personal Delivery Devices in the Public Right-of-Way, or otherwise adversely impact an existing Personal Delivery Device System.
11.91.120 Administrative Regulations
The Director shall adopt Administrative Regulations, and update as the Director determines is necessary, to implement the prov isions of this Chapter, including, but not limited to, permit application procedures, pe rmit standards and permit conditions, which may include regulations relating to lawful conduct, operating standards for public safety, SAW:MDT:JMD
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Item Number: 5.1(a)
DRAFT--Contact the Office of the City Clerk at (408)535-1260 or [email protected] for final document.
data sharing, data privacy, area of the program, number of Operators, number of devices, maintenance of devices, customer service, and the timely removal of hazards.
11.91.130 Prohibited Conduct
Notwithstanding any other provision of this Code, no person shall:
A. Display, offer or operate any Personal De livery Device within the City, unless the person has first obtained a valid permit fo r the operation of a Personal Delivery Device System;
B. Leave a Personal Delivery Device not permitt ed by this Chapter in the Public Right- of-Way or in a Public Area in such a way that the device is available for rent, use, or operation; or
C. Leave a Personal Delivery Device in either the Public Right-of-Way or in 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 the Administrative Regulations.
D. No person shall fail to comply with the Administrative Regulations or any provision of this Chapter. Any violation of any Administrative Regulation or this Chapter shall constitute a violation of this Code.
11.91.140 Limitations on City Liability; Permit Conditions
To the fullest extent permitted by law, the City shall not a ssume any liability whatsoever with respect to any Operator s operation of A Personal De livery Device or Personal Delivery Device System, for having issued a permit for the operat ion of a Personal Delivery Device System, or otherwise app roving the operation of any Personal Delivery SAW:MDT:JMD
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Item Number: 5.1(a)
DRAFT--Contact the Office of the City Clerk at (408)535-1260 or [email protected] for final document.
Device. As a condition to the issuance of any permit for the operation of a Personal Delivery Device System, the Operator sha ll be required to meet all of the following conditions:
A. The Operator must exec ute an agreement or agree to permit conditions, 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, losses, fines, penalties, judgements, demands, and defense costs (including, without limitation, actual direct, out-of-pocket costs and expenses, and amounts paid in compromise, settlement, or judgement, and reasonable legal fees arising from any claim or litigation of every kind or nature or liability of any kind or nature including civil, criminal, administrative or investigative) arising out of which arise out of, in connection with, or which are in any way related to, the City’s issuance of or decision to approve a permit for the operation of a Personal Delivery Device System, the process used by the City in making its decision, the Operator’s (including its officers, managers, employees, the Operator, agents, and volunteers) business conduct and operations, any violation of any laws by the Operator (including its officers, manager s, employees, the Operator, agents, and volunteers) or its users, or any bodily injury including death or damage to property arising out of or in connection with any use, misuse, placement, or misplacement, including not limited to placement or misp lacement resulting in alleged violations of the Americans with Disabilities Act (ADA), of the Operator’s device, property or equipment by any person, except such loss or damage which was caused by the sole willful misconduct of the City. The Operator will conduct all defenses at the Operator's sole cost and expense, and City shall reasonably approve selection of the counsel to represent City as proposed by the Operator. This indemnification obligation shall apply to all claims and liability regardless of whether any insurance of the Operator, its affiliates or other parties are applicable thereto. The policy limits of any insurance of the Operator, its aff iliates or other partie s are not a limitation SAW:MDT:JMD
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Council Agenda: 10-06-2026
Item Number: 5.1(a)
DRAFT--Contact the Office of the City Clerk at (408)535-1260 or [email protected] for final document.
upon the obligation of the O perator, including without lim itation, the amount of indemnification to be provided by the Operator. The prov isions of this indemnification obligation shall survive the termination of the Permit.
B. Maintain insurance at coverage lim its, and with conditions thereon determined necessary and appropriate from time to time, as determined by the City’s Risk Manager, and name the City as additional insured and provide the City with a certificate of insurance evidencing the required cove rage and identifying the City as an additional insured. If any insurance policy issued to an Operator in order for the Operator to comply with this Subsection is cancelled for any reason, the permit issued under this Chapter is automatically suspended. In order to reinstate the permit, the Operator shall provide a new certificate of insurance meeting the requirements of this Chapter 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 r equired to pay as a result of any legal challenge related to the City’s approval of or activities conducted pursuant to the Operator’s permit for the operation of a Personal Delivery Device System. 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.
11.91.150 Grounds for Revocation, Suspension, Reduction, or Denial
A. An Operator’s permit may be revok ed, suspended, or denied, by the Director based upon any of the grounds specified in Chapter 6. 02 or any of the following grounds:
1. An applicant or Oper ator, including its employees, managers, officers, principals, directors, owners, contractors, representatives, or agents has:
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Council Agenda: 10-06-2026
Item Number: 5.1(a)
DRAFT--Contact the Office of the City Clerk at (408)535-1260 or [email protected] for final document.
a. Made one or more false or mi sleading statements, or material omissions on the permit application, during the application process;
b. Failed to provide information r equested or required by the City;
c. Operated or has proposed to op erate in a manner that endangers public health or safety; or
d. Failed to comply with any require ment imposed by the provisions of this Code including any rule, r egulation, condition or standard adopted pursuant to this Chapter, or any term or condition imposed on the permit for the operation of a Personal Delivery Device System, or any provision of California law.
2. Conviction of the O perator, to include any of its officers, owners or principals, of a criminal offense t hat is substantially related to the qualifications, functions or duties of the shared micro-mobility business or profession, including, but not limited to, any crimi nal conviction involving a violent or serious felony, fraud, deceit, or embezzlement.
B. An Operator’s fleet si ze may be temporarily, permanently or conditionally reduced by the Director for violation of any of the provisions of this Chapter or the Administrative Regulations.
11.91.160 Duration of Permits Issued
Permits issued pursuant to this Chapter sha ll be effective for up to one (1) year. An Operator who meets all requirements of this Chapter may apply for permit renewal.
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Council Agenda: 10-06-2026
Item Number: 5.1(a)
DRAFT--Contact the Office of the City Clerk at (408)535-1260 or [email protected] for final document.
11.91.170 Removal or Impoundment of Devices
A. A Personal Delivery Device that is operat ing, displayed for use, or abandoned, in the Public Right-of-Way or in a Public Area in violation of Section 11.91.130 shall be subject to immediate impoundment by the City or removal by the City under Chapter 13.24.
B. The City Council may adopt impound fees as set forth in the schedule of fees and charges established by resolution of the City Council, which shall reflect the City’s enforcement, investigation, storage and impound costs.
C. No person shall retrieve any impounded Personal Delivery Device except upon demonstrating proper proof of ownership of the device and payment of applicable impound fees.
PASSED FOR PUBLICATION of title this _____ day of ___________, 2026, by the following vote:
AYES:
NOES:
ABSENT:
DISQUALIFIED:
MATT MAHAN
Mayor
ATTEST:
TONI J. TABER, MMC
Cit
y Clerk