OLD BUSINESS  6.

COMMITTEE MEMORANDUM

HISTORY:

On May 16, 2018, the Mayor and Commission referred Item No. R9Q, entitled, "Discussion of Dockless Bicycle Sharing Platform Regulations" to the Neighborhoods Committee for discussion. 

On June 20, 2018, the Neighborhoods and Community Affairs Committee (NCAC) discussed the item and directed the Administration to return to the Committee with proposed regulatory guidelines for dockless “DoBi” bike sharing services.

General Concerns:

The DoBi model has been deployed in US cities over the last two years in varying markets; under regulated and unregulated conditions. In all cases, the paramount concern is obstruction of the right-of-way; DoBi providers being ready, willing, and able to correct these obstructions or deficiencies; and uncontrolled proliferation of DoBi.   

It is also important to note that during the last session of the State Legislature HB 1033 was introduced proposing a pre-emption of regulation by local governments.  HB 1033 was not approved; however, despite assurances from members of the DoBi industry that they will not seek a pre-emption, another preemption bill could be introduced in a future session of the Legislature. 

ANALYSIS:

The Administration reviewed regulations from a variety of cities, including: Seattle, Washington, San Francisco, California, and Palo Alto, California as well as local jurisdictions such as Miami Springs, Village of Key Biscayne, Coral Gables, Orlando, Florida among others. The following guidelines are largely composed of the City of Seattle’s requirements and certain components from others that are applicable to Miami Beach.  These were reviewed and endorsed by the Police Department, Code Compliance Department, Public Works, City Attorney’s Office, and Parking Department.  However, please keep in mind that this is a preliminary draft which will likely need further refinement. The Administration proposes the following regulatory framework for DoBi services. 

DEFINITIONS:

1. "Dockless Bicycle Sharing Company" hereinafter referred to as “DoBi” means an entity that makes “dockless” bicycles available for private use by reservation and available for shared use through an online application, software, or website. DoBi is intended for shared use by individuals.

2. DoBi means a bicycle that is self-locking and that is not connected to a docking station.

3. "User" means a person who reserves a DoBi through a bicycle sharing company's online application, software, or website.

4. Habitual Offender is a DoBi service that has received five (5) penalties within a 30 day period, as stated in the enforcement provisions below. 

All DoBi providers shall comply with the following requirements:

SAFETY REQUIREMENTS

1. All bicycles used in DoBi systems shall meet the standards outlined in the Code of Federal Regulations (CFR) under Title 16, Chapter II, Subchapter C, Part 1512 – Requirements for Bicycles. Dockless bicycle providers shall meet the safety standards outlined in ISO 43.150 – Cycles, subsection 4210.

2. Notify its users and promote all bicycle regulations as set forth in Florida Statutes Chapter 316.2065, entitled, Bicycle Regulations.  

3. Provide a mechanism for notification to the operator of any safety or maintenance issue with the bicycle, including a contact number visible on the bicycle.

4. Satisfy and maintain insurance, indemnity, and hold harmless requirements permit requirements.

5. Have visible language that notifies the user that:   

   1. Helmets shall be worn while riding a bicycle.

   2. Bicyclists shall yield to pedestrians on sidewalks.

6. Acknowledgment 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.

7. 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.

8. DoBi must have a bell or other audible device and riders must provide an audible signal when approaching pedestrians from behind.  

9. DoBi shall be equipped with front light(s).

    

PARKING (for DoBi)

Bicycle parking shall, at a minimum: 

    1.      Dobi and its customers shall not be permitted to attach bicycles to personal property, fixtures or structures on the City’s rights-of-way.2.     On blocks without sidewalks, bicycles may be parked if the travel lane(s) and pedestrian access are not impeded.

    2.       The City reserves its right to determine certain block faces where DoBi is prohibited. [Potential locations to consider include Lincoln Road, Ocean Drive, Espanola Way to name a few.]   

    3.        Create geo-fenced corrals within certain areas, at the sole discretion of the City, where bicycles shall be parked.\

    4.     Bicycle(s) parked on City right-of-way 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 DoBi.

    5.         Bicycles shall be upright when parked.

    6.     Any bicycle that is parked incorrectly shall be re-parked in a  correct manner or shall be removed by the DoBi within two (2) hours of receiving notice.

    7.     Bicycles shall not be parked in the landscape/furniture zone adjacent to or within:

         a.     Transit zones, including bus stops, shelters, passenger waiting areas and bus layover and staging zones, except at existing bicycle racks:

          b.     Disabled parking spaces or access aisles;

          c.     Passenger, commercial, or freight loading zones;

          d.    Street furniture that requires pedestrian access (for example -                                   benches, parking pay stations, transit information signs, etc.);

          e.    Curb ramps

          f .      Entryways;

          g.     Parklets;

          h.      Driveways; and

           i.       Bicycles shall not be parked in any landscaped areas.

OPERATIONS

1. 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. Provide services through its online application, software, or website.

3. Provide contact information including customer service support information on each bicycle for bicycle relocation requests from the public or city staff; staff customer service lines 24 hours a day, 7 days a week; and provide a two (2) hour response window for urgent customer service issues/bicycle relocation requests.

4. Hire and maintain, a minimum of one (1) full-time equivalent staff per 100 bicycles to manage, repair, and re-balance the fleet within the Miami Beach city limits, at full capacity; and monitor and reposition bicycles on a 24 hour basis in order to ensure no obstructions on the City’s rights-of-way and maximizes efficiencies.

5. Share monthly reports with city staff, free of charge, with useful data (i.e., average riding time, average riding distance, number of active riders, cumulative calories burned, and carbon offset). DoBi shall also provide real-time access to bicycle locations and related data.

6. Include GPS (Global Positioning System) devices on each bicycle.

7. Protect and maintain all data domestically.  

8. Provide contact information for personnel who are capable of addressing any issues that may arise.   

9. Relocate or rebalance bicycles every 24 hours or within two (2) hours of receiving notice.

10. Insurance/Indemnification:

    a.     Workers’ Compensation, as required by Florida Law;

    b.     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 c.    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.  Providers 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 provider’s use of the City’s rights-of-way, use of the provider’s bikes by anyone, or provider’s failure to comply with the terms of the permit; and

    d.     Have a cash deposit or irrevocable letter of credit approved by the City in the amount of $100 per bicycle. These funds shall be accessible to the City for future public property repair and maintenance costs that may be incurred; removing; and storing bicycles improperly parked; or if a DoBi is not present to remove bicycles.  In case there is an approval to  increase the size of their fleet, the cash deposit or letter of credit shall be adjusted appropriately before deploying additional bicycles.

      
      

ENFORCEMENT

The following is the enforcement provision for DoBi services:

1. Any bicycle improperly parked or blocking the City’s rights-of-way which is not removed or relocated by the DoBi 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 DoBi within four (4) hours shall be removed by the City and shall be subject to a $100.00 penalty;

3. A DoBi deemed as a “habitual offender” is subject to the enforcement provisions contained in the City Code, Section ___.

Other Considerations:

Permitting Options:

As we know, the City has a concession agreement with Citibike, formerly known as DecoBike, and it is a very successful bicycle sharing program in its own right. Currently, Citibike provides 1,000 bicycles at 100 docking stations, citywide.

It is important to note that the bike sharing business model in Miami Beach is unique.  Our research indicates that Miami Beach is one of the few, if not only, municipality with a fully privately funded bike share system.  Typically, cities must fund bike sharing programs meanwhile in MIami Beach, it is actually a revenue generator that offsets parking meter revenue and then some.  

If the direction is to pursue a City endorsed DoBi model, at some level, a limitation to the quantities of DoBi entities, no more than five (5), and deployment of bicycles per entity of no more than 100 bicycles per entity, for a grand total of no more than 500 DoBi is recommended. The following are potential permitting options, all of which would require the inclusion of the aforementioned requirements:

1. City Code amendment allowing five (5) DoBi permits with a maximum of 100 bicycles per permit.

2. Procurement solicitation (RFP/RFQ) for up to five (5) DoBi concessionaires with a maximum of 100 bicycles per permit.

Pursuant to aforementioned concession agreement with Citibike, Section 3.1, entitled, “Bicycle Rental Services”, states, Citibike may desire and request to add new technologies or equipment that are not contemplated in their Agreement.  Therefore, Citibike may be granted a “right of first refusal” as one of the five (5) DoBi entities to provide 100 bicycles.  If Citibike waives their right of first refusal, a fifth DoBi entity could be allowed.

Fiscal Impacts:

There are 82 metered parking spaces citywide impacted by Citibike docking stations. This results in an estimated annual parking revenue loss of $395,000.  The Citibike concession agreement currently yields $438,000, annually.  Therefore, currently, bike sharing revenues exceed parking revenue loss by $43,000, annually.

It is important to note that overall the bicycle sharing (docked and dockless) industries are fairly recent and their economics are rather fragile. The introduction of different business models, while progressive and intuitively the next progression in the industry, has an associated risk. The new upstart DoBi business model may adversely impact the “docked” business model.  If for any reason the Dobi model is not sustainable over time, there is a risk of losing the current successful bike sharing service.  Of course, the City could always pursue a procurement solicitation for either or both services.    

DoBi Financial Return to the City:

A permit fee in the form of a daily bicycle parking fee for use of the City’s right-of-way is reasonable and justified should the NCAC and ultimately the Mayor and Commission endorse it.  

Clearly, an essential component to the DoBi model is their use of the right-of-way for the placement or “parking of bicycles”. The Miami Beach City Code Section 82-151, entitled, “Temporary Obstructions, Permit Required”, provides for a usage fee of $0.25 per lineal foot per day. 

Upon further research for the dimensions of bicycle parking spaces, including KImley-Horne; Association of Pedestrian and Bicycle Professionals (APBP); and other several cities, a typical bicycle parking space is two (2) feet wide by six (6) feet long or twelve (12) square feet. 

Pursuant to the City Code, at $0.25 per lineal foot, this equates to $1.50 daily per bicycle.  Therefore, the following permit fee structure is proposed yielding up to an estimated $273,750, annually:

• 500 bicycles (5 permits of 100 bicycles each) x $1.50 per day x 365 days = $273,750  

CONCLUSION:
The Administration is seeking guidance regarding this matter.