Item Coversheet

OLD BUSINESS  2.

COMMITTEE MEMORANDUM

TO: Neighborhood/Community Affairs Committee Members


FROM:
Jimmy L. Morales, City Manager


DATE: January 24, 2018


SUBJECT:

DISCUSSION REGARDING 1) RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING THE BUSINESS TERMS FOR THE ISSUANCE OF A PERMIT TO SKINNY LABS INC. D/B/A SPIN, IN CONNECTION WITH A SIX (6) MONTH CITYWIDE PILOT PROGRAM FOR STATIONLESS BIKE SHARING SERVICES; AUTHORIZING THE ADMINISTRATION TO NEGOTIATE A FINAL PERMIT AGREEMENT BASED UPON THE TERMS SET FORTH HEREIN; AND FURTHER AUTHORIZING THE CITY MANAGER TO EXECUTE THE FINAL PERMIT AGREEMENT; AND 2) REGULATIONS FOR DOCKLESS BIKESHARING PILOT PROGRAM


HISTORY:

On December 13, 2017, the Mayor and City Commission discussed item No. R7J, entitled, “Approve 6 month permit w/ Spin, Dockless Bicycle Pilot” and the Mayor and City Commission referred this item to the Neighborhoods and Community Affairs Committee (NCAC) for discussion.
 
On December 20, 2017, the Neighborhoods and Community Affairs Committee held a discussion regarding a dockless bike sharing pilot program and directed the Administration to:
 
(1) Learn about Florida House Bill 1033 (HB 1033) and its potential implications related to dockless bike sharing and bike sharing companies; and
(2) Develop a regulatory framework that would address the issue of bicycle placement on the right-of-way and how bicycles may have GPS technology to determine their exact placement and violations thereof.
 
On January 17, 2018, the Mayor and Commission briefly discussed the item and approved Resolution No. 2018- 30133 and referred the item to the NCAC for further discussion and to bring back the item to the City Commission on February 14, 2018.
 

Additionally, the Administration is seeking direction regarding Commissioner Aleman’s proposed six month pilot program for dockless bike sharing. Please refer to the attachment entitled, “Spin Pilot - Memo & Reso“ containing the December 13th City Commission agenda item, including the related Resolution. 



ANALYSIS:

Pursuant to the direction from the NCAC regarding this item, the Administration has been monitoring the progression of HB 1033 and drafted a regulatory framework for dockless bike sharing services that may be codified contingent upon the outcome of HB 1033.
 
House Bill 1033 (HB 1033) was introduced in the state legislature proposing a preemption of regulation by local governments.  HB 1033 contains the following preemption language:
 
64           (6) PREEMPTION.—
65           (a) It is the intent of the Legislature to provide for
66  uniformity of laws governing dockless bicycles and bicycle
67  sharing companies throughout the state. Dockless bicycles and
68  bicycle sharing companies shall be governed exclusively by state
69  law. A local governmental entity may not:
70           1. Impose a tax on, or require a license for, a dockless
71  bicycle or a bicycle sharing company relating to reserving a
72  dockless bicycle;
73           2. Subject a dockless bicycle or a bicycle sharing company
74  to any rate, entry, operation, or other requirement of the local
75  governmental entity;
76           3. Require a bicycle sharing company to obtain a business
77  license or any other type of authorization to operate within the
78  jurisdiction of the local governmental entity; or
79           4. Enter into a private agreement containing a provision
80  that prohibits a bicycle sharing company from operating within
81  the jurisdiction of the local governmental entity or that limits
82  the operation of a bicycle sharing company within such
83  jurisdiction. To the extent that a local governmental entity
84  entered into an agreement containing such a provision before
85  
July 1, 2018, such provision is unenforceable.
86           (b) This subsection does not prohibit an airport or
87  seaport from designating locations for staging, pickup, and
88  other similar operations relating to dockless bicycles at the
89  airport or seaport.
 
The Administration continues to monitor the progression of HB 1033.  Both the House and Senate versions of the bill are drafted to preempt municipalities from regulating dockless bicycle sharing services.  The House version of the bill was referred to a committee and was heard at its first step.  



The Senate version of the bill has been referred to two committees; however, it has not been heard yet. 


REGULATIONS FOR DOCKLESS BICYCLE SHARING SERVICES
 
The Administration has conducted research of other jurisdictions’ regulations of dockless bike sharing. Most jurisdictions are grappling with the issue of placement of bicycles on the right of way and enforcement.  

 

Our research reveals the City of Seattle being furthest along with regulating dockless bike sharing. 

 

They following is a draft of a regulatory framework and enforcement provisions for dockless bicycle sharing services.  Please note these proposed regulations are pending legal review and may likely require further revision.  Subsequently, this or a revised version  may be codified contingent upon any action, if any, taken by the state legislature.

 

DEFINITIONS:
1. Dockless bicycle sharing services are made available for shared use to individuals on a very short term basis for a price. Transactions are made through a smartphone/mobile application which allows users to borrow a bicycle from point A and return it at point B with neither of said points having a fixed location and/or docking station.
2. Habitual Offender is a permitted operator who has received five (5) penalties within a 30 day period, as stated in the enforcement provisions below.    
SAFETY REQUIREMENTS
 
1. All bicycles used in dockless bicycle sharing systems issued a permit shall meet the standards outlined in the Code of Federal Regulations (CFR) under Title 16, Chapter II,
2. Subchapter C, Part 1512 – Requirements for Bicycles. Additionally, permitted systems shall meet the safety standards outlined in ISO 43.150 – Cycles, subsection 4210.
3. Any electric bicycles used in systems issued a permit shall meet the National Highway Traffic Safety Administrations (NHTSA) definition of low-speed electric bicycles; and shall be subject to the same requirements as ordinary bicycles (described in Requirement S1). This means that electric bicycles shall have fully operable pedals, an electric motor of less than 750 watts, and a top motor-powered speed of less than 20 miles per hour when operated by a rider weighing 170 pounds. Additionally, the City reserves the right to terminate any permit issued if the battery or motor on an electric bicycle is determined by THE Florida Department of Transportation (FDOT) to be unsafe for public use.
4. All permitted operators shall notify its users and promote all bicycle regulations as set forth in Florida Statutes Chapter 
316.2065, entitled, Bicycle Regulations.
5. All permitted operators shall provide a mechanism for customers to notify the operator of any safety or maintenance issue with the bicycle.
6. All permitted operators shall satisfy and maintain insurance, indemnity, and hold harmless requirements permit requirements.
7. All permitted systems shall have visible language that notifies the user that:
a. Helmets shall be worn while riding a bicycle in King County.
b. Bicyclists shall yield to pedestrians on sidewalks.
8. Permitted operators must acknowledge that the City is not responsible for educating users regarding helmet requirements and other laws. Neither is the City responsible for educating users on how to ride or operate a bicycle. Permitted operators agree to educate users regarding laws applicable to riding and operating a bicycle in the City and to instruct users to wear helmets and otherwise comply with applicable laws.
 
DOCKLESS BICYCLE SHARING – PARKING
 
1. Bicycle parking shall, at a minimum:  (a) not adversely affect the City’s rights of way; (b) not adversely affect the property of any third parties; (c) not inhibit pedestrian movement within the City’s rights of way or along other property or rights of way owned or controlled by the City; and (d) not create conditions which are a threat to public health, safety and welfare;
2. Permitted operators and its customers shall not be permitted to attach bicycles to personal property, fixtures or structures on the City’s rights of way.
3. On blocks without sidewalks, bicycles may be parked if the travel lane(s) and pedestrian access are not impeded.
4. The City reserves the right to determine certain block faces where free-floating bicycle share parking is prohibited.
5. Bicycles shall not be parked in the landscape/furniture zone adjacent to or within:
a. Parklets
b. Transit zones, including bus stops, shelters, passenger waiting areas and bus layover and staging zones, except at existing bicycle racks;
c. Passenger, commercial, or freight loading zones;
d. Disabled parking spaces or access aisles;
e. Street furniture that requires pedestrian access (for example - benches, parking pay stations, bus shelters, transit information signs, etc.);
f.    Curb ramps;
g. Entryways; and
h. Driveways.
6. A permit issued by the City is only valid for operations within the Right-of-Way.
7. The City retains the right to create geo-fenced stations within certain areas where bicycles shall be parked.
8. Any dockless bicycle that is parked in one location for more than 24 hours without moving may be removed by the City and taken to a City facility for storage at the expense of the permitted operator. The City shall invoice the violating operator for any and all expenses incurred.
9. All permitted operators shall provide contact information for bicycle relocation requests on every bicycle.
10. Bicycles shall be upright when parked.
11. Any bicycle that is parked incorrectly shall be re-parked in a correct manner or shall be removed by the operator within two (2) hours of receiving notice.
OPERATIONS
1. Permitted operators shall be responsible for maintaining bicycles pursuant to industry maintenance standards and shall be solely responsible for repair, replacement and restoration of any real or personal property damaged as a result of the operation of the program.
2. Permitted operators shall monitor and reposition bikes in order to ensure bicycles do not obstruct the City’s rights of way and maximizes efficiencies.
3. All permitted operators shall have a staffed operations center within the City.
4. All permitted operators shall have a 24-hour customer service phone number for customers to report safety concerns, complaints, or ask questions.
5. All permitted operators shall provide the City with a direct contact for dockless bicycle share company staff who are capable of rebalancing bicycles.
6. All permitted operators shall relocate or rebalance bicycles every 24 hours or within two hours of receiving notice.
7. Insurance/Indemnification: Spin shall be required to maintain the following insurance coverages:  (1) Workers’ Compensation, as required by Florida Law; (2) Commercial General Liability and Rights of Way Damage Insurance (One Million Dollars ($1,000,000) combined single limit per occurrence, with Two Million Dollars ($2,000,000) annual aggregate for bodily injury, property damage, products, completed operations, and contractual liability coverage; and (3) Comprehensive automobile insurance in an amount not less than one million dollars ($1,000,000) per occurrence for bodily injury and property damage, including coverage for owned and non-owned vehicles.  All insurance coverages shall be subject to review and approval by the City’s Risk Manager.  Spin shall indemnify the City from all claims, including, without limitation court costs and reasonable attorneys’ fees, resulting in loss of life, bodily injury or property damage arising directly or indirectly out of or from or account of Spin’s use of the City’s rights of way, use of the Spin bikes by anyone, or Spin’s failure to comply with the terms of the permit.
8. All permitted operators shall have a performance bond of $100 per bicycle with a cap of $100,000. The form of the bond shall be approved by the City. These funds shall be accessible to the City future public property repair and maintenance costs that may be incurred, removing, and storing bicycles improperly parked, or if a company is not present to remove bicycles if its permit is terminated. If a permitted operator increases the size of their fleet, the performance bond shall be adjusted appropriately before deploying additional bicycles.

 

ENFORCEMENT:
  

The following are the proposed enforcement provisions for permitted dockless bicycle sharing services:
  

1. Any bicycle improperly parked or blocking the City’s rights of way which is not removed or relocated by the permitted operator within two (2) hours shall be subject to a $25.00 penalty;
2. Any bicycle improperly parked or blocking the City’s rights of way which is not removed or relocated by the permitted operator within four (4) hours shall be removed by the City and shall be subject to a $100.00 penalty;
3. Permitted operators deemed as a habitual offenders is subject to right-of way violations with fines starting at $1,000, pursuant to the City Code.  
4. The City Manager or designee is authorized to suspend an operator’s permit upon the issuance of a right-of way violation.
5. The City Manager or designee is authorized to revoke an operator’s permit upon an adjudication of “guilty” for a second right-of-way violation.  




CONCLUSION:

The Administration is seeking direction with regard to this item.



ATTACHMENTS:
DescriptionType
Spin Pilot Memo & ResoOther