City Council
Report
City Council Meeting: September 26, 2023
Agenda Item: 8.D
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To: Mayor and City Council
From: Anuj Gupta, Interim Director of Transportation, Mobility (DOT) Subject: Introduction and Adoption of an Urgency Ordinance Amending Santa Monica Municipal Code Section 3.22.090 to Extend the Second Shared Mobility Device Pilot Program
Recommended Action
Staff recommends that the City Council:
1. Adopt a finding of categorical exemption pursuant to Section 15301 and Section 15308 of the California Environmental Quality Act (CEQA) Guidelines
2. Introduce and adopt an urgency ordinance amending Santa Monica Municipal Code (SMMC) Section 3.22.090 to extend the term of the Second Shared Mobility Device Pilot Program from September 30, 2023, to a date thirty calendar days after execution of the contract(s) under SMMC Section 3.23 for permanent shared mobility services.
Executive Summary
The City of Santa Monica has operated a shared mobility pilot program (“Pilot Program”) since 2018. Since July 1, 2021, the City has been in the second phase of its Pilot Program with three companies (Spin, Veo, and Wheels; Lyft was initially a fourth operator who ceased operations across Southern California in November of 2022). The three operators operate four distinct device types (Class 1 and 2 e-bikes, two-wheeled electric scooters, and sit-down e-scooters). This second phase of the Pilot Program was initially slated to end on March 30, 2023, pursuant to Council’s direction on March 9, 2021, to transition shared mobility services to a contracting model.
On August 23, 2022, Council reaffirmed the transition of the shared mobility pilot program to a contracting model, directed staff to move forward with procurement for 2 of 7
contracted service with up to two shared mobility operators, and extended the ongoing second Pilot Program to September 30, 2023.
Following Council’s direction, staff initiated a formal procurement for contracted shared mobility services. In adherence to procurement protocol, staff crafted and, on January 18, 2023, released a Request for Proposals (“RFP”) that prioritized City goals of effective and affordable mobility, safety and order, environmental sustainability, community partnership, system maintenance, and organizational stability. Staff then assembled a selection committee of diverse internal stakeholders representing multiple City departments and one external subject matter expert to evaluate proposals and return with the two highest-scoring bidders for subsequent contract negotiations.
With the top-scoring bidders having been identified through the formal procurement process, staff is currently in the process of negotiating contract terms that best serve City goals and the mobility needs of the community. In order to achieve this task and bring an award recommendation to Council, staff recommends that Council adopt an urgency ordinance extending the end date of the second Pilot Program from September 30, 2023, to a date that is 30 calendar days after the execution of the contract(s) for permanent service. Such execution will only occur after Council approves negotiated contract terms for the two highest-scoring bidders at a future Council meeting.
Background
History of Shared Mobility in Santa Monica
Since dockless shared scooters were first deployed in Santa Monica in 2017, the City has worked to shape dockless shared mobility in ways that maximize its benefit to the community for both users and non-users alike. As part of this effort, the City launched a first-phase Pilot Program in 2018, which transitioned to a second phase in 2021, and which remains ongoing. See Table 1 for a thorough timeline of City actions in administering dockless shared mobility.
Table 1: Shared Mobility Timeline
Date Description Attachment
September 2017 Bird Rides, Inc. e-scooter sharing launched in N/A 3 of 7
Date Description Attachment
Santa Monica.
June 26, 2018 City Council 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 City Council approved a Shared Mobility public right of way (PROW) usage fee to fund the
creation of infrastructure to improve 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
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 Share program
terminated; 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,
and following the second pilot program, to shift
from the 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 the status of the second pilot
H
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Date Description Attachment
program.
August 23, 2022 Council extended the second pilot program from March 30, 2023, to September 30, 2023, and
directed staff to develop and release an RFP for
contracted shared mobility services.
I
November, 2022 Lyft ceases shared mobility operations in Santa Monica and across Southern California.
N/A
January 18, 2023 Procurement for contracted Shared Mobility service commences with release of RFP.
N/A
Current Shared Mobility Pilot Program
Currently, three operators are permitted to conduct shared mobility service in Santa Monica: Spin, which is permitted to deploy 700 e-scooters; Veo, which is permitted to deploy 200 scooters and 500 class 2 e-bikes; and Wheels/Helbiz, which is permitted to deploy 100 scooters and 100 class 1 e-bikes. Lyft was formerly permitted to deploy 600 class 1 e-bikes; however, they ceased operations in Santa Monica in 2022 as part of a broader withdrawal from Southern California markets.
This second-phase Pilot Program has furthered the City’s goals of providing for safe, effective, orderly, and equitable transportation for the community. Work remains to be done, however, in promoting system affordability, as well as ensuring a diverse set of shared mobility device types (particularly class 1 e-bikes, which have been largely absent since Lyft’s withdrawal).
Procurement of Contracted Shared Mobility
To address these issues and to advance the City’s goals for shared mobility service more effectively, City Council initially instructed staff to pursue a contracted shared mobility system on March 9, 2021. Council then reaffirmed this direction on August 23, 2022, with instructions to staff to begin procurement for shared mobility contracts with up to two operators.
As directed by Council, staff prepared an RFP for contracted shared mobility service that prioritized goals of affordability, equity, safety, order, and community partnership. 5 of 7
The RFP was released on January 18, 2023, with a total of six proposals received by the closing date of March 8, 2023. These proposals were then evaluated by a selection committee comprised of seven total members: six City staff members representing various departments, and one external expert in shared micromobility. The selection committee members read, analyzed, and scored the submitted proposals according to a scoring rubric developed by Mobility staff and made available to all bidders as part of the RFP process. In assigning scores, selection committee members met regularly with each other and with staff to discuss the substance and intent of the scoring rubric, as well as to discuss any proposal-specific questions that may arise.
Discussion
The terms of the final shared mobility contract(s) will be important to ensure the best possible service for Santa Monica community members. Specifically, staff will seek to negotiate terms that ensure affordable, safe, orderly, and environmentally sustainable provision of shared mobility service that is actively and equitably promoted throughout the community.
To achieve these goals, staff recommends that Council extend the current Pilot Program while contract negotiations proceed. Specifically, staff recommends that Council adopt the attached emergency ordinance amending SMMC Section 3.22.090 to extend the end date of the second Pilot Program from September 30, 2023, to a date that is thirty (30) calendar days after contract(s) for shared mobility service are executed. This recommended ordinance amendment needs to be done on an emergency basis, given that the current pilot program ends on September 30, 2023, which would not provide sufficient time for the second reading and subsequent 30-day period required of a standard ordinance modification.
If Council adopts the attached emergency ordinance, staff will continue with contract term negotiations with the two top-scoring bidders. After substantive agreement on terms are reached, staff will return to Council for approval of final contract execution with one or both recommended bidders. This will likely occur in Quarter 2 or Quarter 3 of fiscal year 2023-2024. If Council approves, the contract(s) will then be executed, and 6 of 7
the 30-day clock will begin, after which the current pilot program will end, replaced by the new contracted program.
Environmental Impact Statement
CEQA applies only to projects that have the potential for have 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 proposal to extend the current phase of regulation of shared mobility 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 shared mobility program 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 shared mobility program is intended to regulate shared mobility devices for the protection of the environment, including people. Therefore, the program does not have the potential for causing a significant effect on the environment and is categorically exempt from CEQA review under CEQA Guideline sections 15301 and 15308.
Financial Impacts and Budget Actions
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There is no immediate financial impact or budget action necessary as a result of the recommended action. As discussed in the staff report delivered to Council on August 23, 2022, the next, contracted phase of the Shared Mobility program will provide for full cost recovery so that all costs to administer the program are covered by revenues from the permanent program. Likewise, the extension of the current Shared Mobility pilot program will entail the prorated extension of current annual operator fees, along with the continuation of current public right-of-way usage fees, which presently cover all City costs required to administer the program. Staff will return to Council if specific budget actions are required in the future.
Prepared By: Trevor Thomas, Senior Transportation Planner Approved Forwarded to Council
Attachments:
A. Urgency Ordinance Extending Second Pilot Program AC (004) Final B. Written Comment