Request for Committee Action

2020-00342 - License agreements for shared motorized foot scooter operations in 2020
2019-00223 - License agreement for shared motorized foot scooter operations in 2019
2018-00883 - License agreement for shared motorized foot scooter operations

In early 2020, Public Works issued a Request for Application (RFA) from qualified vendors to participate in the 2020 scooter program and the City Council authorized Public Works to enter into licensing agreements with up to two vendors. An evaluation panel reviewed and scored the applications and the two highest scoring proposals were selected for participation. However, due to challenges arising from the COVID-19 pandemic, the 2020 program as originally proposed is no longer appropriate and, thus, the City has not executed license agreements with the selected applicants. To address current conditions Public Works is recommending a new structure based on a modified version of the previously approved 2019 license agreement, including the following key changes:

1. Establishes a program to run through March 31, 2021, with an optional extension through December 31, 2021, for up to six (6) vendors to operate shared scooters in City right of way. Public Works Director retains discretion to suspend operations at any time based on weather conditions. The previously proposed program authorized two licenses.
2. Establishes an initial maximum of 2,500 scooters allowed on City right of way, split evenly among active vendors, with the following deployment and distribution requirements:
   • Deployment:
     • A minimum of 200 scooters deployed no later than July 1, 2020. The previously proposed program required a minimum deployment of 1,250 scooters per vendor by May 1, 2020.
     • An additional 200 scooters deployed no later than August 1, 2020. The previously proposed program required deployment of the remaining 1,250 scooters per vendor by May 31, 2020.
     • Additional scooters up to the vendor cap can be deployed at any time.
     • Vendors not meeting the minimum deployment requirements will not be granted a license or have their licenses revoked, and their allocation of permitted scooters will be redistributed among the remaining vendors.
     • If there are fewer than 6 active, licensed and compliant vendors, then beginning August 1, and the first of every month thereafter, Public Works may assign any remaining, unallocated scooter capacity to other vendors. 
   • Distribution requirements from 2019 are unchanged and require:
     • At least 30% be distributed among Areas of Concentrated Poverty within Minneapolis.
     • Not more than 40% distributed throughout downtown and surrounding neighborhoods.
     • The remaining 30% distributed in areas outside of those requirements above, as proposed by the vendor.
3. Requires vendors to pay a fee on each scooter deployed to offset the expense of Public Works oversight and enforcement, as well as implementation of supporting infrastructure such as designated parking zones. In 2019, the fee was $100 per scooter. The proposed fee structure for 2020 will be:
   • $50 per scooter for the first 200 scooters deployed.
   • $75 per scooter for the next 200 scooters deployed.
   • $100 per scooter beyond 400.
4. The requirement that scooters be locked to a public bike rack or municipal signpost originally proposed for 2020 is recommended but not required by Public Works. Vendors will be asked to pilot/demonstrate lock-to capabilities during the program.
5. COVID pandemic actions:
   • Vendors must include COVID cleaning protocols and procedures that are CDC compliant and must submit details with executed license agreement.
   • Heath Care or First Responder program: Vendor are strongly encouraged to offer and market a program for scooter services to health care and first responder workers and must submit details with executed license agreement.