Skip to main content
Loading…
This section is included in your selections.

A. License and Fees.

1. No person may permit a shared e-scooter owned or controlled by such person to be in service for hire upon the streets of the city unless such person is authorized to do so under a business license obtained from the city.

2. No person may operate a scooter-share program in the city without first obtaining a business license as required in Chapter 5.02.

3. A license granted under this chapter is nontransferable.

4. Licensee must pay the applicable business licensing fees required in Chapters 5.02 and 5.08, as established by resolution of the city council.

5. Licensee must pay a fee for the city’s reasonable and necessary costs in licensee administering scooter-share program as set forth in the city’s fee schedule.

6. Licensee must pay a reasonable fee for the use of the city’s right-of-way as set forth in the city’s fee schedule. Such fee must be commensurate and proportional to fees charged for similar uses.

B. Denial, Revocation and Suspension. The city may deny, revoke, or suspend a license granted under this chapter in accordance with the provisions of Chapter 5.04. In addition to other provisions in Chapter 5.04, the city may deny, suspend, or revoke any license for the following reasons:

1. Failure to provide the information requested or required by the city;

2. Operating or proposing to operate in a manner that endangers public health or safety;

3. Failure to comply with any provision of this chapter (or successor provision or provisions) or any term or condition imposed on the licensee; or

4. Cancellation for any reason of any insurance policy issued to licensee.

The license is automatically suspended. To reinstate the license, the licensee shall provide a new certificate and insurance policy to the city.

C. License Application.

1. In addition to completing a business license application under Section 5.02.040, an applicant must submit to the business license division an application containing the following to obtain a license:

a. The name, phone number and email address of the applicant’s fleet manager. Any change in this information must be reported to the business license division within twenty-four hours of the change;

b. A phone number, available twenty-four hours a day seven days a week, for the public and the city to report improper abandoned, damaged or inoperable shared e-scooters and other violations;

c. The number and types of shared e-scooters to be operated in the city;

d. The applicant’s proposed operations in the city including the plan for balanced shared e-scooters for citywide coverage, the plan for shared e-scooter maintenance, plan for customer service, and levels of staff for operations and administration;

e. The applicant’s plans to educate users of shared e-scooters about applicable state and city traffic laws, this chapter and other applicable laws, regulations, and guidelines;

f. The applicant’s plans to implement safety programs, including a program by which the applicant will receive information about and notify users of inappropriate use and a deactivation program;

g. The applicant’s GPS enabled tracking system, or such other tracking system as may be acceptable to the city;

h. The applicant’s plans to regularly share accurate and reliable historical and survey data regarding ridership, maintenance, and safety issues concerning the applicant’s fleet;

i. The applicant’s plans to comply with federal, state, and local data privacy laws and otherwise to protect the privacy of personal information provided by users;

j. Proof of insurance coverage as required by this chapter; and

k. An agreement to indemnify the city as required by this chapter.

2. An applicant must notify the business license division of any change in the information contained in the application. If the information includes an increase in the number of shared e-scooters, any additional fees due must be submitted to the business license division simultaneously with the change in information.

D. Insurance.

1. A scooter-share operator must have and keep in full force and effect no less than the insurance coverage required by this section through a policy or policies written by an insurance company that:

a. Is authorized to do business in the state of Utah with a Best’s rating of no less than A-, IX;

b. Is acceptable to the city; and

c. Does not violate the ownership or operational control prohibition described in this section.

2. The insured provisions of the policy must name the city and its officials, officers, employees, and volunteers as additional insureds, and the coverage provisions must provide coverage for any loss or damage that may arise to any person or property because of, arising out of, or by reason of the operation of a scooter-share program.

3. The scooter-share operator’s insurance coverage must be a primary insurance as respects to the city, its officials, officers, employees, and volunteers. Any insurance or self-insurance maintained by the city, its officials, officers, employees or volunteers is in excess of the scooter-share operator’s insurance and does not contribute with it.

4. A scooter-share operator must maintain the following insurance coverage dedicated exclusively for the operation of shared e-scooters:

a. Commercial general liability insurance coverage with a limit of one million dollars each occurrence and five million dollars aggregate;

b. Automobile insurance coverage with a limit of one million dollars each occurrence and one million dollars aggregate;

c. Umbrella or excess liability coverage with a limit of five million dollars each occurrence and five million dollars aggregate; and

d. Workers’ compensation coverage of no less than required by Utah law.

5. Insurance required under this section must:

a. Include a cancellation provision in which the insurance company is required to notify the business license division in writing not fewer than thirty days before cancelling the insurance policy (for a reason other than nonpayment) or before making a reduction in coverage;

b. Include a cancellation provision in which the insurance company is required to notify the business license division in writing not fewer than ten days before cancelling for nonpayment;

c. Cover all shared e-scooters during the times that the shared e-scooters are deployed or operating in furtherance of the scooter-share program;

d. Include a provision requiring the insurance company to pay every covered claim on a first-dollar basis; and

e. Comply with all federal, state, and local laws.

6. If any insurance policy is cancelled for any reason, the license granted under this chapter is automatically suspended. To reinstate the license, the licensee shall provide a new certificate and policy of insurance to the city.

7. No person who has a twenty percent or greater ownership interest in the scooter share program may have an interest in the insurance company.

8. A scooter-share operator may not be self-insured.

9. Proof of the insurance coverage required in this section must be on file with and approved by the city prior to issuance of a license to operate and must remain in effect during the term of the license and any renewal of the license.

E. Indemnification.

1. To the fullest extent permitted by law, a scooter-share operator indemnifies, holds harmless, and defends the city and its officials, officers, employees, volunteers, and other representatives, individually and collectively, from and against any and all actions, claims, demands, liability, liens, damages, losses, expenses, fees, fines, penalties, costs, including attorneys’ fees, and suits of any kind and nature, including, but not limited to, personal or bodily injury, death and property damage made upon the city directly or indirectly arising out of, resulting from, or related to the city’s issuance of a license, the decision to approve a scooter-share license, the process used by the city in making its decision to issue a license, the negligent or reckless operation of a scooter-share program, the negligent or reckless operation of shared e-scooters, or the negligent, reckless, or intentional acts, errors or omissions of the scooter-share operator, its officers, employees, and agents.

2. If the city’s tender of defense, based on this indemnity provision, is rejected by the scooter-share operator, and the scooter-share operator is later found by a court of competent jurisdiction to have been required to indemnify the city, then in addition to any other remedies the city may have, the scooter-share operator must pay the city’s reasonable costs, expenses, and attorneys’ fees incurred in providing such indemnification, defending itself, or enforcing this provision.

3. The indemnity in this section does not apply to any liability resulting from the city’s negligence or willful misconduct. The city has the right, at its option, to participate in such defense, including retention of separate advisory legal counsel, without relieving the scooter-share operator of any of its obligations under this indemnity.

F. Limitations on City Liability.

1. The city does not assume any liability whatsoever with respect to having issued a license under this chapter or otherwise approving the operation of any scooter-share program.

2. The city is not responsible to educate users on how to ride, safely operate, where and how to park, or use safety equipment.

3. The city is not responsible for providing security at any location where licensee’s shared e-scooters are stored, located, parked or abandoned by licensee or its users.

4. The city does not waive any immunity under the Governmental Immunity Act of Utah, Sections 63G-7-101 et seq., Utah Code Annotated, 1953, as amended.

G. Licensee’s Responsibilities. The licensee must:

1. Provide a local fleet manager, or another designated representative, who must be available to respond in a timely manner to all safety concerns, complaints, questions, relocation requests or any other issues;

2. Maintain a twenty-four-hour customer service toll-free phone number and email address for city employees, riders, and the public to report safety concerns, complaints, or to ask questions;

3. Provide city with a list individually identifying all shared e-scooters in licensee’s fleet deployed in the city;

4. Make any shared e-scooter unavailable to riders for which a safety or maintenance concern is reported and remove the shared e-scooter from city’s right-of-way usually within two hours, but not later than four hours, of receiving notice;

5. Regularly inspect, clean and repair all licensee’s shared e-scooters;

6. Respond to requests for rebalancing or reports of incorrectly parked or unsafe/inoperable shared e-scooters by relocating, reparking, or removing the shared e-scooters as appropriate, usually within two hours, but not later than four hours, of receiving notice;

7. Operate all motor vehicles for pickup and deployment of shared e-scooters only on public roads, streets, alleys, and other right-of-way specifically designated for use by motor vehicles;

8. Remove all licensee’s shared e-scooters from city’s right-of-way during times that a storm warning or weather advisory is in effect for the Midvale, Utah area or when snow is on the city’s right-of-way;

9. Educate all riders by means of signage and through a mobile or web application regarding the laws applicable to riding, operating, and parking shared e-scooters, found in Chapter 10.06;

10. Include language in licensee’s end user agreement indicating that its riders are responsible to comply with the operating and parking regulations in this chapter and all applicable state and city laws;

11. Require riders to take a photo of the parked shared e-scooter with the unique identification number readily visible and submit the photo to licensee when the riders park their shared e-scooter at the end of the ride;

12. Collaborate with city to address areas where e-scooters are observed to routinely either be in violation of this chapter or where the use of e-scooters for other reasons shows the need for additional operational changes;

13. Repair, replace or otherwise restore any part of city’s real or personal property that is damaged, lost or destroyed arising out of, resulting from, caused by, or related to licensee’s or its customers’ use of city property; and

14. Remove and prevent the use of all licensee’s shared e-scooters from city’s right-of-way upon suspension, revocation, or expiration of its business license.

H. Required Equipment. In addition to the equipment required in Section 10.06.020, all shared e-scooters must:

1. Comply with the most recent applicable safety standards established by federal, state, or city law;

2. Be consistent with current industry standards for dockless e-scooters.

Licensee shall comply with an e-scooter standard or regulation enacted or adopted by the state of Utah or federal agency;

3. Be equipped with global positioning satellite (“GPS”) systems and geofencing technology to prevent their use outside the permitted operating hours and to be remotely rendered inoperable if reported as damaged, defective, or otherwise unsafe;

4. Have a unique identification number prominently displayed and readily visible to riders, city employees and any member of the public;

5. Prominently display readily visible contact information, including toll-free phone number and email address; and

6. Not display any third-party advertising.

I. Deployment and Placement Regulations.

1. All shared e-scooters must comply with the parking regulations in Section 10.06.040.

2. Licensee must conduct its daily deployment of e-scooters in locations that have been pre-approved by the city.

3. To the extent licensee desires to deploy or have its riders park shared e-scooters in areas other than the city right-of-way, licensee must first obtain the right to do so from the appropriate city department, other public agency, or property owner, and must communicate this permission to riders through signage or other notification approved by the respective department and/or through a mobile or web application.

J. Data Sharing.

1. At least monthly, licensee must provide the city with accurate and complete fleet and ride activity data, in an anonymized fashion, for completed trips starting and/or ending within city on a shared e-scooter owned by licensee or of any person or company controlled by, controlling, or under common control with licensee. Such trip data shall include, but not be limited to, origin and destination, distance traveled per use, path traveled, operating speed, and daily initial deployment locations. To ensure individual privacy:

a. The trip data shall be provided via an application programming interface, subject to licensee’s license agreement for such interface, in compliance with a national data format specification;

b. The trip data provided is treated as trade secret and proprietary business information, provided licensee makes a written request therefor as required by Utah’s Government Records Access and Management Act under Section 63G-2-305(2), Utah Code Annotated, 1953, and may not be disclosed to third parties without licensee’s consent, and may not be treated as owned by city to the extent allowed by Utah law; and

c. The trip data is be considered private information, and, pursuant to Section 41-6a-1115.1, Utah Code Annotated, 1953, may not be disclosed under Utah’s Government Records Access and Management Act pursuant to a public records request received by city without prior aggregation or obfuscation to protect individual privacy.

2. At its sole expense, licensee may take any lawful actions to prevent disclosure of the information shared with city.

3. Licensee must keep true, accurate and complete records showing all trip activity and data within city.

K. Fleet Size. Licensee shall begin operations with a fleet size of not more than one hundred fifty shared e-scooters. Licensee may increase its fleet size if it can demonstrate to city’s satisfaction an upward trend in rides per day. Licensee may not increase its fleet size without city’s prior written permission. City may require licensee to reduce its fleet size if its fleet provides on average less than one rider per shared e-scooter per day. (Ord. 2021-13 § 1 (Att. A))