Title
Dockless Bikeshare Program (Ordinance G-6474)
Description
Request to authorize the City Manager, or his designee, to amend chapters 31 and 36 of the Phoenix City Code to establish a dockless bikeshare program effective July 30, 2018. There is no cost to the City of Phoenix. All costs associated with the program will be recovered through proposed permit fees.
Report
Summary
The proposed bikeshare program was developed in response to the emergence of dockless shared individual mobility systems. The primary intent of this program is to ensure safety and mobility for all users of the right-of-way, while maintaining aesthetics and preventing potential visual blight in the Phoenix community. In addition to bikeshare programs, ebike and electric scooter sharing models are appearing nationwide.
Dockless bikeshare is a fee-based service in which bikes are made available in public right-of-way for shared use on a short-term basis. Users of dockless bikeshare services typically use a smartphone app to locate and rent a bike. A dockless bike may be located in designated areas, or at an appropriate spot left by the previous user. This is different from a docked bikeshare system in that there are no fixed docking stations for the bikes. The bikes are secured with an electronic wheel-locking mechanism that is unlocked via the bikeshare operator’s smartphone app.
The proposed ordinance (Attachment A) establishes:
- Definitions related to the dockless bikeshare program.
- A permit requirement to operate a dockless bikeshare system in the City's right-of-way.
- Regulations for parking bikeshare bicycles in the right-of-way.
- The authority for the City (or its authorized representative) to assess a fee to relocate or repark dockless bikeshare bicycles parked in violation of City Code.
- An opportunity to include additional dockless shared individual mobility options such as scooters and electric bicycles as part of this program. City Code 36-64 currently prohibits motorized skateboards (scooters) and motorized play vehicles (electric bicycles), which would need to be amended by future Council action if in the City’s best interest to do so.
The program will allow dockless bikeshare operators to apply for permits and to initially deploy up to 500 bikes each. The City Manager, or his designee, may increase the maximum number of bikes allowed per operator if deemed in the best interest of the City. The permit will include requirements that address safety, parking, operations, maintenance, data sharing, as well as standard terms and conditions such as indemnification, insurance, and performance bonds.
The proposed program fees are intended to recover the City's costs of administering the program, and will be evaluated periodically and adjusted as appropriate.
- Dockless Bikeshare Permit Application Fee: $500.
- Bike Permit Fee: $20 per bike annually.
- Relocation/Re-Parking Fee: $80 per bike relocated/re-parked.
During the first six months of the program, staff will evaluate its administrative efforts, and gather data from operators to determine if any revisions to the program are needed.
Financial Impact
There is no cost to the City of Phoenix. All costs associated with the program are intended to be recovered through the proposed program fees. Staff will evaluate the fee structure after six months to determine if the fee structure needs to be modified.
Concurrence/Previous Council Action
The Transportation and Infrastructure Subcommittee recommended this item for approval on May 8, 2018 by a vote of 4-0. The Subcommittee directed staff to speak with bikeshare vendors to learn more about their ideas to implement dockless bikeshare, to evaluate if there is a need to allow dockless bikes to be parked only in designated areas and to complete a cost analysis after the first six months of the program to ensure cost recovery.
Staff met with representatives of the various bike share companies interested in operating in Phoenix to explain the proposed ordinance and permit process and answer questions. Overall, industry representatives indicated support of the proposed ordinance.
Department
Responsible Department
This item is submitted by Deputy City Manager Mario Paniagua and the Street Transportation Department.