HomeMy WebLinkAboutOrdinance 6406 ), ALE
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113 West Mountain Street
Fayetteville,AR 72701
(479)575-8323
Ordinance: 6406
File Number: 2020-1184
AMEND§75.10 PERMIT REQUIRED:
AN ORDINANCE TO AMEND§ 75.10 PERMIT REQUIRED TO INCREASE ELECTRIC
SCOOTER PERMIT FEES AND UPDATE OPERATIONAL AND PRICING REQUIREMENTS,
AND TO APPROVE A BUDGET ADJUSTMENT
WHEREAS,on November 16,2019 the City Council passed Ordinance 6205 authorizing the use of
Electric Motorized Scooters and Scooter-Share Programs;and
WHEREAS,staff's proposed amendments will increase the permit fees from$20.00 to$30.00 to
better align with peer markets,provide clear authority for administrative increases to existing fleet sizes,
and modify operational and pricing requirements.
NOW,THEREFORE,BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
FAYETTEVILLE,ARKANSAS:
Section 1: That the City Council of the City of Fayetteville,Arkansas hereby repeals§75.10(D)(4)(a)
and enacts a new subsection(a)as follows:
"(a)The initial application for an operating authority permit must be accompanied by the
non-refundable application fee of$150.00.A fee of$30.00 per shared scooter in the operator's fleet
shall be paid prior to the issuance of any permits.Applications to renew an operating authority permit
must be accompanied by a non-refundable application fee of$100.00.A fee of$30.00 per shared
scooter in the operator's fleet shall be paid prior to the issuance of renewal permits."
Section 2:That the City Council of the City of Fayetteville,Arkansas hereby repeals§ 75.10(G)(1)-
(2)and enacts replacement subsections(1)and(2)as follows:
Page 1 Printed on 1/20/21
Ordinance: 6406
File Number. 2020-1184
"(1)An Operator's initial fleet must be a minimum of one hundred(100)shared scooters and shall not
exceed two hundred fifty(250)shared scooters.Operators may request an increase to their existing
fleet of up to two hundred fifty(250)additional shared scooters as part of any permit renewal.A
request for an increase in fleet size shall include a rationale and analysis to justify the additional fleet
size.Authorization of additional units is at the sole discretion of the city.
(2)The total number of deployed scooters in an operator's fleet must maintain a minimum average of
one(1)trip per scooter per day,determined by monthly usage.Should this demand not be met,the
city may require a portion of the scooters to be relocated or removed."
Section 3:That the City Council of the City of Fayetteville,Arkansas hereby repeals §75.10(H)and
enacts a new subsection(H)as follows:
"(H)All customer pricing including promotional options must be approved by the city and shall be
specified on the operators permit."
Section 4: That the City Council of the City of Fayetteville,Arkansas hereby approves a budget
adjustment,a copy of which is attached to this Resolution,to recognize the increase in permit fee
revenue.
PASSED and APPROVED on 1/19/2021
1
Approve l Attest:
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ionel Jordan or Kara Paxton, City Clerk Tre.4 er
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Page 2 Printed on 1/20/21
'FF^YFr City of Fayetteville, Arkansas 113 West Mountain Street
ti Fayetteville,AR 72701
' (479)575-8323
C /
P, , Text File
File Number: 2020-1184
Agenda Date: 1/19/2021 Version: 1 Status: Passed
In Control: City Council Meeting File Type:Ordinance
Agenda Number: C 5
AMEND§75.10 PERMIT REQUIRED:
AN ORDINANCE TO AMEND §75.10 PERMIT REQUIRED TO INCREASE ELECTRIC
SCOOTER PERMIT FEES AND UPDATE OPERATIONAL AND PRICING REQUIREMENTS,AND
TO APPROVE A BUDGET ADJUSTMENT
WHEREAS,on November 16,2019 the City Council passed Ordinance 6205 authorizing the use of Electric
Motorized Scooters and Scooter-Share Programs;and
WHEREAS,staff's proposed amendments will increase the permit fees from$20.00 to$30.00 to better align
with peer markets,provide clear authority for administrative increases to existing fleet sizes,and modify
operational and pricing requirements.
NOW,THEREFORE,BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
FAYETTEVILLE,ARKANSAS:
Section 1: That the City Council of the City of Fayetteville,Arkansas hereby repeals §75.10(D)(4)(a)and
enacts a new subsection(a)as follows:
"(a)The initial application for an operating authority permit must be accompanied by the non-refundable
application fee of$150.00.A fee of$30.00 per shared scooter in the operator's fleet shall be paid prior to the
issuance of any permits.Applications to renew an operating authority permit must be accompanied by a
non-refundable application fee of$100.00.A fee of$30.00 per shared scooter in the operator's fleet shall be
paid prior to the issuance of renewal permits."
Section 2:That the City Council of the City of Fayetteville,Arkansas hereby repeals §75.10(G)(1)-(2)and
enacts replacement subsections(1)and(2)as follows:
"(1)An Operator's initial fleet must be a minimum of one hundred(100)shared scooters and shall not exceed
two hundred fifty(250)shared scooters.Operators may request an increase to their existing fleet of up to two
hundred fifty(250)additional shared scooters as part of any permit renewal.A request for an increase in fleet
size shall include a rationale and analysis to justify the additional fleet size.Authorization of additional units is at
the sole discretion of the city.
City of Fayetteville,Arkansas Page 1 Printed on 1/20/2021
File Number 2020-1184
(2)The total number of deployed scooters in an operator's fleet must maintain a minimum average of one(1)
trip per scooter per day,determined by monthly usage.Should this demand not be met,the city may require a
portion of the scooters to be relocated or removed."
Section 3:That the City Council of the City of Fayetteville,Arkansas hereby repeals§ 75.10(H)and enacts a
new subsection(H)as follows:
"(H)All customer pricing including promotional options must be approved by the city and shall be specified on
the operators permit."
Section 4: That the City Council of the City of Fayetteville,Arkansas hereby approves a budget adjustment,a
copy of which is attached to this Resolution,to recognize the increase in permit fee revenue.
City of Fayetteville,Arkansas Page 2 Printed on 1/20/2021
City of Fayetteville Staff Review Form
2020-1184
Legistar File ID
1/19/2021
City Council Meeting Date-Agenda Item Only
N/A for Non-Agenda Item
Peter Nierengarten 12/30/2020 SUSTAINABILITY/RESILIENCE (631)
Submitted By Submitted Date Division/Department
Action Recommendation:
Approval of the amendment of ordinance 75.10 Operation of Scooter Share Programs to update operator permit
requirements and approval of a budget adjustment.
Budget Impact:
1010.090.6600-5814.05-Trail
Improvements General Fund
Account Number Fund
21012.1—Mobility/Trail Improvements Scooter License
Project Number Project Title
Budgeted Item? No Current Budget $ -
Funds Obligated $ -
Current Balance
Does item have a cost? No Item Cost $ -
Budget Adjustment Attached? Yes Budget Adjustment $ 15,000.00
Remaining Budget $ 15,000.00
V20180321
Purchase Order Number: Previous Ordinance or Resolution# 3?O5
Change Order Number: Approval Date: 7/16/2019
Original Contract Number:
Comments:
CITY OF
FAYETTEVILLE CITY COUNCIL MEMO
ARKANSAS
MEETING OF JANUARY 19, 2021
TO: Mayor and City Council
THRU: Susan Norton, Chief of Staff
Peter Nierengarten, Environmental Director
FROM: Dane Eifling, Mobility Coordinator
DATE: December 30, 2020
SUBJECT: Electric Scooter Share Programs Ordinance Amendment
RECOMMENDATION:
City staff recommends approval of the amendment of ordinance 75.10 Operation of Scooter
Share Programs to update operator permit requirements and approval of a budget adjustment.
BACKGROUND:
Arkansas State law requires municipalities to provide reasonable accommodations for shared
micromobility companies to legally operate. The City of Fayetteville has permitted shared
electric scooters to operate since November of 2019.
E-scooters have been very popular in Fayetteville and on the UA campus. Typically, there are
between one thousand and three thousand trips taken each day. Since issuing the original
permit to the micromobility company Spin for 250 e-scooters the program has added a second
vendor VeoRide and expanded to 1,000 total e-scooters.
E-scooters provide several economic benefits to the City of Fayetteville. The Operating permit
fees are $20 per scooter every six months which results in $40,000 in revenue for the City
annually. The University of Arkansas has a similar fee structure and charges $25 per scooter
every 6 months, generating $50,000 in annual revenue. Scooter rides also generate sales tax
revenue, and as employers, VeoRide and Spin have created approximately 25 full-time jobs in
Fayetteville. Additionally, e-scooters help support trailside economic development.
E-scooters also offer several environmental benefits by providing low-carbon, convenient and
economical transportation options for residents and visitors. When e-scooters replace car trips,
they help reduce vehicle miles traveled, vehicular congestion and competition for parking. E-
scooters can also help provide last mile connectivity to/from transit stops.
Mailing Address:
113 W. Mountain Street www.fayetteville-ar.gov
Fayetteville, AR 72701
DISCUSSION:
The attached amendment would do the following:
1. Increase the permit fees from $20 to $30 to better align with peer markets. This will
generate an additional $20,000 per year in revenue
2. Clarify that vendors may request to increase their fleet size during any permit renewal,
not just the initial permit renewal (increasing the fleet size will be at the discretion of the
Mayor and will require equitable distribution of e-scooters across the City)
3. Remove restrictions on pricing to allow companies to introduce more innovative pricing
and promotions for customers.
4. Give the City final approval authority of all customer pricing options.
5. Lower the required rides per scooter per day from 2 to 1 to allow greater flexibility during
seasonal periods of lower ridership.
New revenue would be used to pay for safety and infrastructure improvements for e-scooters
and bicycles. These expenses include parking areas, signage, bike lane painting and other
infrastructure improvements.
Local operators Spin and VeoRide have expressed their support of this amendment and intend
to renew operating permits under the amended ordinance in February 2021. University of
Arkansas staff has also reviewed the changes and indicated that University permit fees may
also be raise from $25 to $30.
Below is an analysis of peer markets scooter fees.
Peer Market Fee Comparison
Market Fees Annual revenue per-scooter
(adjusted for Fayetteville's
average ridership)
Norman, OK $1 per scooter per day $365.00
Tallahassee, FL 20 cents per ride + 60 cents $339.45
per scooter per day
Fayetteville & $60 per scooter $120.00
University of Ark. (with semiannually (City&UA)
amendment)
Lincoln Nebraska 15 cents per ride $91.25
Wichita KS 15 cents per ride $91.25
Fayetteville & $45 per scooter $90.00
University of Ark. semiannually (City&UA)
(current)
Omaha Nebraska 11 cents per ride $65.70
Arkansas State 10 cents per ride $62.05
University
2
BUDGET/STAFF IMPACT:
$20,000.00 in new revenue to the general fund; $15,000.00 to be made available for Mobility
Programs support.
ATTACHMENTS:
• Highlight and Strikeout of changes to Ordinance 75.11 Operation of Scooter Share
Programs
• Budget Adjustment
3
75.10-Permit Required
(A) A person commits an offense if,within the city, he or she operates, or causes or permits the operation
of, a scooter-share program without a valid operating authority permit issued under this chapter.
(B) Issuance of apermit does not authorize the operation of a shared scooter on the Universityof
P
Arkansas campus or private property without the approval of the property owner.
(C) The total number of initial permits issued by the city for shared scooters shall not exceed five hundred
(500).
(D) Application for operating authority permit.
(1) To obtain an operating authority permit, a person shall make application in the manner and on
the form prescribed by the city.The applicant must be the person who will own, control,or operate
the proposed shared scooter program.
(2) An application shall be accompanied by the non-refundable application fee and shall contain at
least the following information:
(a) The form of business of the applicant and, if the business is a corporation or association, a
copy of the documents establishing the business and the name and address of each person
with a 20% or greater ownership interest in the business;
(b) The signature of the applicant;
(c) The address of the fixed facilities to be used in the operation, if any, and the address of the
applicant's corporate headquarters, if different from the address of the fixed facilities;
(d) The name of the person designated by the applicant to receive on behalf of the applicant
any future notices sent by the city to the operator, and that person's contact information,
including a mailing address, telephone number, and email address;
(e) Documentary evidence from an insurance company indicating that such insurance company
has bound itself to provide the applicant with the liability insurance required by this chapter;
(f) Documentary evidence of payment of ad valorem taxes on property within the city, if any, to
be used in connection with the operation of the proposed shared scooter program;
(g) The number and types of shared scooters to be operated; and
(h) An agreement to indemnify the city.
(3) An operating authority permit may be renewed following the process in this section.
(4) Application and fleet fees.
(a) The initial application for an operating authority permit must be accompanied by the non-
refundable application fee of $150.00. A fee of $20.00-$30.00 per shared scooter in the
operator's fleet shall be paid prior to the issuance of any permits. Applications to renew an
operating authority permit must be accompanied by a non-refundable application fee of
$100.00. A fee of$20.00$30.00 per shared scooter in the operator's fleet shall be paid prior
to the issuance of renewal permits.
(b) Fees collected pursuant to this subsection shall first be applied to the costs incurred by the
city for administering the scooter share permit program and then to infrastructure
improvements and maintenance related to the operation of electric motorized scooters.
(E) Changes to information in operating authority application.
(1) Any changes to the information provided in the operating authority permit application must be
reported to the city, in the manner prescribed by the city, within ten (10) days of the change.
(2) If the information reported to the city under this section includes an increase in the number of
shared scooters, any additional vehicle fees due shall be submitted to the city simultaneously with
the change in information.
(F) An operating authority permit expires six (6) months from the date it is issued.
(G) Operator Fleets.
(1) An Operator's initial fleet must be a minimum of one hundred (100) shared scooters and shall
not exceed two hundred fifty (250) shared scooters. Operators may request an increase to their
lrR+t+al existing fleet of up to two hundred fifty (250) additional shared scooters as part of any
permit renewal. A request for an increase in fleet size shall include a rationale and analysis to
justify the additional fleet size.Authorization of additional units is at the sole discretion of the city.
(2) The total number of deployed scooters in an operator's fleet must maintain a minimum average
of two-(2) one (1) trip per scooter per day, determined by monthly usage. Should this demand
not be met, the city may require a portion of the scooters to be relocated or removed.
(3) The city may establish zones to limit or require the deployment of scooters in certain areas to
ensure that scooters are accessible to the public across the city.
(H) A scooter share operator or scooter share program shall not charge a per minute fee to users
exceeding one fifth (1/5 ') the cost to unlock a shared scooter. All customer pricing including
promotional options must be approved by the city and shall be specified on the operators
permit.
(I) Refusal to issue or renew operating authority permit.
(1) The city shall refuse to issue or renew an operating authority permit if the applicant:
(a) Intentionally or knowingly makes a false statement as to a material matter in an application
for a permit or permit renewal;
(b) Has been convicted twice within a twelve (12) month period for a violation of this article
regarding the deployment of a shared scooter or the rebalancing or removal of a dockless
vehicle, or a rule or regulation adopted under this article regarding the deployment of a
shared scooter or the rebalancing or removal of a shared scooter, or has had an operating
authority permit revoked within two(2) years of the date of application; or
(c) Has deployed unpermitted electric scooters within the City of Fayetteville in violation of this
chapter.
(2) If the city determines that a permit should be denied,the city shall notify the applicant or operator
in writing that the application is denied and include in the notice the specific reason or reasons
for denial and a statement informing the applicant or operator of the right to, and the process for,
appeal of the decision.
(J) Suspension or revocation of operating authority permit.
(1) The city may suspend an operating authority permit if the city determines that the operator failed
to comply with a request to remove a shared scooter, a request to rebalance shared scooters
issued by the city within the time specified in the order, or for failure to comply with any other
requirement in this chapter. Suspension of an operating authority permit does not affect the
expiration date of the permit.
(2) The city may revoke an operating authority permit if the city determines that the operator has:
(a) Made a false statement as to a material matter in the application concerning the operating
authority permit;
(b) Failed to maintain the insurance required by this article;
(c) Operated shared scooters that were not authorized by the operating authority permit;
(d) Failed to pay a fee required by this article; or
(e) Failed to comply with the provisions of this chapter.
(3) After revocation of an operating authority permit, an operator is not eligible for another permit for
a period of up to two (2) years, depending on the severity of the violation resulting in the
revocation.
(K) Appeals. Any person whose application for an operating authority permit, or renewal of an operating
authority permit, is denied by the city, or an operator whose operating authority permit has been
revoked or suspended by the city, may appeal the decision to the city council by filing a written notice
in the City Clerk's office within ten (10) business days of the decision.
(Ord. No. 6205 , §1(Exh. A), 7-16-19)
City of Fayetteville, Arkansas- Budget Adjustment Form (Legistar)
Budget Year Division Adjustment Number
/Org2 ENGINEERING (621)
2021 (BY)
Requestor: Peter Nierengarten
BUDGET ADJUSTMENT DESCRIPTION/JUSTIFICATION:
Budget adjustment is needed to move increased e-scooter license permit revenue into an expenditure account for trail
improvements.
COUNCIL DATE: 1/19/2021
LEGISTAR FILE ID#: 2020-1184
B lack/
12/31/2020 10:11 AM
Budget Director Date
TYPE: D - (City Council)
JOURNAL #:
GLDATE:
RESOLUTION/ORDINANCE CHKD/POSTED: /
TOTAL 15,000 15,000 v.20201112
Increase/ (Decrease) Proiect.Sub#
Account Number Expense Revenue Project Sub.Detl AT Account Name
1010.001.0001-4208.00 - 15,000 21012 1 RE License-Scooters
1010.090.6600-5814.05 15,000 - 21012 1 EX Improvements-Trails
H:\Budget Adjustments\2021_Budget\City Council\01-19-2021\2020-1184BAE-Scooter Trail Imp 1 of 1
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AFFIDAVIT OF PUBLICATION
I, Brittany Smith, do solemnly swear that I am the Accounting Legal Clerk of the Northwest Arkansas
Democrat -Gazette, a daily newspaper printed and published in said County, State of Arkansas; that I was so
related to this publication at and during the publication of the annexed legal advertisement
the matter of Notice pending in the Court, in said County, and at the dates of
the several publications of said advertisement stated below,
and that during said periods and at said dates, said newspaper
was printed and had a bona fide circulation in said County;
that said newspaper had been regularly printed and published
in said County, and had a bona fide circulation therein for the
period of one month before the date of the first publication of
said advertisement; and that said advertisement was published
in the regular daily issues of said newspaper as stated below.
City of Fayetteville
Ord 6406
Was inserted in the Regular Edition on:
January 24, 2021
Publication Charges: $200.64
9'tt& S;";�
Brittany Smith
Subscribed and sworn to before me
This 2s- day of _�.,,-_ , 2021.
(�� wz
Notary Public
My Commission Expires: 7-tul +
**NOTE** Please do not pay from Affidavit
Invoice will be sent.
Ordinance: 6406
File Number: 2020-1194
AMEND § 75.10 PERMIT
REQUIRED:
AN ORDINANCE TO AMEND §
75.10 PERMIT REQUIRED TO
INCREASE ELECTRIC
SCOOTER PERMIT FEES AND
UPDATE OPERATIONAL AND
PRICING REQUIREMENTS,
AND TO APPROVE A BUDGET
ADJUSTMENT
WHEREAS, on November 16,
2019 the City Council passed
Ordinance 6205 authorizing the use
of Electric Motorized Scooters and
Scooter -Share Programs; and
WHEREAS, staffs proposed
amendments will increase the
permit fees from $20.00 to $30.00
to
better align with peer markets,
provide clear authority for
administrative increases to existing
fleet sizes, and modify operational
and pricing requirements.
NOW, THEREFORE, BE IT
ORDAINED BY THE CITY
COUNCIL OF THE CITY OF
FAYETTEVILLE, ARKANSAS:
Section 1: That the City Council of
the City of Fayetteville, Arkansas
hereby repeals § 75.10(D)(4)(a) and
enacts a new subsection (a) as
follows:
"(a) The initial application for an
operating authority permit must be
accompanied by the
non-refundable application fee of
$150.00. A fee of S30.00 per shared
scooter in the operators fleet shall
be paid prior to the issuance of any
permits. Applications to renew an
operating authority permit must be
accompanied by a non-refundable
application fee of$100.00. A fee of
$30.00 per shared scooter in the
operators fleet shall be paid prior
to the issuance of renewal permits."
Section 2: That the City Council of
the City of Fayetteville, Arkansas
hereby repeals § 75.10(G)(l )-
(2) and enacts replacement
subsections (1) and (2) as follows:
"(1) An Operators initial fleet must
be a minimum of one hundred
(100) shared scooters and shall not
exceed two hundred fifty (250)
shared scooters. Operators may
request an increase to their existing
fleet of up to two hundred fifty
(250) additional shared scooters as
part of any permit renewal. A
request for an increase in fleet size
shall include a rationale and analysis
to justify the additional fleet size.
Authorization of additional units is
at the sole discretion of the city.
(2) The total number of deployed
scooters in an operator's fleet must
maintain a minimum average of one
(1) trip per scooter per day,
determined by monthly usage.
Should this demand not be met, the
city may require a portion of the
scooters to be relocated or
removed."
Section 3: That the City Council of
the City of Fayetteville, Arkansas
hereby repeals § 75.10(H) and
enacts a new subsection (H) as
follows:
"(H) All customer pricing including
promotional options must be
approved by the city and shall be
specified on the operators permit."
Section 4: That the City Council of
the City of Fayetteville, Arkansas
hereby approves a budget
adjustment, a copy of which is
attached to this Resolution, to
recognize the increase in permit fee
revenue
PASSED and APPROVED on
1/19/2021
Approved:
Lioneld Jordan, Mayor
Attest:
Kara Paxton, City Clerk Treasurer
75373415 Jan 24, 2021