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HomeMy WebLinkAbout2021-10-04; Traffic and Mobility Commission; ; Amend Carlsbad Municipal Code, Title 10.60 Shared Mobility Devices and provide feedback on the future of shared mobility devices in the cityMeeting Date: Oct. 4, 2021 To: Traffic and Mobility Commission Staff Contact: Edd Alberto, Associate Engineer Edd.Alberto@Carlsbadca.gov or 760-268-4794 Nathan Schmidt, Transportation Planning and Mobility Manager nathan.schmidt@Carlsbadca.gov or 760-602-2734 Subject: Amend Carlsbad Municipal Code, Title 10.60 Shared Mobility Devices and provide feedback on the future of shared mobility devices in the city. Recommended Action Support staff’s recommendation to City Council to amend Carlsbad Municipal Code, Title 10.60 Shared Mobility Devices, and provide feedback on the future of shared mobility devices in the city. Background In May 2019, the City Council adopted Ordinance No. CS-354, adding Chapter 10.60 to the Carlsbad Municipal Code, or CMC, (Exhibit 1) regarding shared mobility devices. The purpose of this ordinance was to prohibit shared mobility devices from being abandoned or placed for rent in the public right-of-way or other public areas, allow for adequate pedestrian traffic flow, ensure public safety and maintain public areas free of public nuisances. On September 18, 2020, Governor Newsom signed Assembly Bill (AB) 1286, enacting Civil Code Section 2505 effective Jan 1, 2021 (Exhibit 2). This code section requires shared mobility device providers, in operation before or after January 1, 2021, to obtain a permit or agreement with the city in which it seeks to operate and to comply with all location operation, parking, maintenance, and safety rules. This code section also requires that the shared mobility service provider maintain commercial general liability insurance coverage with a carrier doing business in California, with limits not less than one million dollars ($1,000,000) for each occurrence for bodily injury or property damage, including contractual liability, personal injury, and product liability and completed operations, and not less than five million dollars ($5,000,000) aggregate for all occurrences during the policy period. The insurance shall not exclude coverage for injuries or damages caused by the shared mobility service provider to the shared mobility device user. Item 4 Oct. 4, 2021 Item #4 1 Discussion Shared Mobility Device Background Micromobility is a relatively recent term that refers to short (micro) trips (mobility), sometimes associated with mass transit modes of travel. These trips are often referred to as "first mile/last mile" portions of a longer transit trip, with the idea that once you arrive at a central station, your trip is not complete until you arrive at your actual destination. Previously, these trips were commonly provided via taxis, then by providers such as Uber or Lyft. As shared mobility options became more prevalent through smartphone apps, less expensive options such as bike-share and even scooter-share became popular. Micromobility trips can often be substitutes for walking or short vehicle trips. In addition to being less expensive, bike-share and scooter-share can also be appealing to cities because they minimize vehicular congestion and parking. For every bike-share or scooter-share trip, there is generally one less car trip, which is helpful in attaining the city's Climate Action Plan (CAP) goals and to reduce congestion on city streets. However, the convenience and popularity of these new transportation modes bring issues that are new to most cities, such as where bikes and scooters can legally operate and park. Various communities are experiencing negative impacts from the use and misuse of such devices. These issues include: parking in the public right-of-way and obstructing vehicle and pedestrian access; reduced sidewalk area or parking spaces; urban clutter; aggressive competition/oversupply; use of public land for private purposes; potential public liabilities; scooter/pedestrian conflicts; scooter/vehicle conflicts; and increased demand for enforcement resources. One of the reasons for these negative impacts is because these devices have been launched in cities throughout the United States without contracts, permits or business licenses. In other words, these devices are operating without any oversight and/or regulations. State Laws Applicable to Shared Mobility Devices The California Vehicle Code (CVC) regulates the rules of the road applicable to bicycle1 and scooter2 riders, such as license requirements, speed limits, and other traffic safety rules. The state has preempted local action related to any provision of the CVC, except when the CVC specifically authorizes local regulation. This means cities may only regulate rider use and operation of shared mobility devices when expressly authorized by the CVC. 1 The Vehicle Code defines "bicycle" as a device with one or more wheels "upon which [a] person may ride, propelled exclusively by human power through a belt, chain, or gears." CVC sec. 231. An electric bicycle is "a bicycle equipped with fully operable pedals and an electric motor of less than 750 watts." CVC sec. 312.5(a). 2 A scooter is "any two-wheeled device that has handlebars, has a floorboard that is designed to be stood upon when riding, and is powered by an electric motor" or by a source other than electrical power. CVC sec. 407.5(a) and (b). It may also have a driver seat that does not interfere with the ability of the rider to stand and ride, and may also be designed to be powered by human propulsion. CVC sec. 407.5(a). Item 4 Oct. 4, 2021 Item #4 2 Sections 21206 and 21225 of the CVC authorize cities to regulate registration, parking, and operation of bicycles and scooters on pedestrian and bicycle facilities, streets, and highways, if not in conflict with the CVC. . As described in the summaries below, the CVC already regulates certain bicycle and scooter rider activities, which prevents the city from also regulating those same areas for traffic purposes. CVC sec. 21 and 21100(o)(1). Applicable CVC sections for bicycle riders include the following: •CVC sections 312.5(b) and 21200- Every person operating a bicycle or e-bicycle on a street or highway has the same rights and is subject to the same rules as a car driver. •CVC section 21212(a) - Riders under 18 years of age must wear a helmet. •CVC section 21204(b) - A bicycle rider may not carry a passenger unless there is a separate attached seat for the passenger. •CVC section 21205 - A rider may not carry any object that prevents the rider from holding the handlebar with at least one hand. •CVC section 21210 - A bicycle may not be left lying on its side on a sidewalk and may not be parked in a manner that impedes pedestrian traffic. Applicable CVC sections for scooter riders include the following: •CVC section 21221 - Every person operating a scooter on a street or highway has the same rights and is subject to the same rules as a driver of a motor vehicle. •CVC section 22411 - Scooters are subject to a maximum speed limit of 15 miles per hour. •CVC section 21235(b) - Scooters may only be used on streets with a speed limit of less than 25 miles per hour, unless operated in a bike lane or separated bikeway. •CVC section 21235(g) - Scooters may not be operated on the sidewalk, except to enter or leave adjacent property. •CVC sections 21235(c) and (d) - Riders must have a valid driver's license or instruction permit and riders under 18 years of age must wear a helmet. •CVC section 21235(e) and (f) - Scooters may not be used to carry more than one person and the rider may not carry any object that prevents the rider from holding the handlebar with at least one hand. •CVC section 21235(i) - Scooters may not be left lying on their sides on a sidewalk or parked in a manner that impedes pedestrian traffic. The Police Department currently has authority to enforce the above CVC provisions in the city, and may impound devices under certain circumstances when located on city streets and sidewalks (such as for obstructing pedestrian traffic on streets or for presenting a hazard). See CVC sec. 22650-22651 and 22669; CMC sec.10.12.010(A). Existing Shared Mobility Ordinance The current ordinance, codified in Chapter 10.60 of the CMC, prohibits shared mobility devices from being abandoned (as defined in the existing ordinance), placed for rent in the public right- of-way or other public areas, or from being placed in those areas in a manner that constitutes a Item 4 Oct. 4, 2021 Item #4 3 public nuisance. These prohibitions are intended to allow for adequate pedestrian traffic flow, ensure public safety and maintain public areas free of public nuisances. Device users could continue to ride or temporarily park a shared bicycle or scooter within the city's limits in accordance with applicable CVC laws. The ordinance also allows the city to impound devices that violate Chapter 10.60’s provisions. Under the existing ordinance no person may: 1)display, offer or make available for rent any shared mobility device3 in the city; 2)abandon4 a shared mobility device in the public right-of-way or a public area5; or 3)park, leave standing, leave lying, or otherwise place a shared mobility device in the public right-of-way or a public area in a manner that constitutes a public nuisance6. The above prohibitions are consistent with numerous other shared mobility device ordinances, including those of other north coast cities, such as Solana Beach, Encinitas, and Del Mar. Shared Mobility Services vs. Bike Rentals Shared mobility services including bike share and scooter share differ in several notable ways from traditional bicycle rental programs. Bike share bikes are typically available from a larger network of docking stations within the public right-of-way throughout a city and designed so that riders can rent a bike at one station and drop it off at another. While bike share can be used for recreational riding, stations are often planned and located to connect popular destinations, employment and population centers and transit hubs. Bike share is also designed for shorter trips with most systems incentivizing riders to complete their rides within 30-45 minutes. Bike share trips typically become significantly more expensive after the first hour which is intended to make bikes available to new riders. Bike rentals are typically picked-up and returned to a single storefront location and are more appropriate for tourists taking longer more leisurely rides that range from 2 hours to an entire day or week. Proposed Ordinance Revisions The revisions proposed by staff to CMC Chapter 10.60 Shared Mobility Devices are provided in Exhibit 3 and intended to address state legislation, AB 1286, approved by the Governor on September 18, 2020, codified as California Civil Code Section 2505 (Exhibit 2). It requires shared mobility device providers, in operation before or after January 1, 2021, to enter into an 3 The existing ordinance’s definition of "Shared Mobility Device" means any wheeled transportation device, other than an automobile or motorcycle, by which a person can be propelled, moved, or drawn; is accessed via an on- demand portal, whether a smartphone application, membership card, or similar method; is displayed, placed or offered for rent in any public area or public right-of-way by an operator for shared use by members of the public; and is available to members of the public in unstaffed, self-service locations. 4 "Abandon" means leaving a shared mobility device unattended in the public right-of-way or a public area upon termination of a shared mobility device rental use. 5 "Public area" means any outdoor area that is open to the members of the public for public use, whether owned or operated by the city or a private party. 6 The existing ordinance’s definition of "Public nuisance" means any condition caused, maintained or permitted to exist which constitutes a threat to the public's health, safety and welfare which includes, but is not limited to, obstructing travel upon or blocking access to the public right-of-way and posing an imminent life safety hazard. Item 4 Oct. 4, 2021 Item #4 4 agreement with the city or obtain a permit from the city before distributing shared mobility devices over the area of use, sets minimum insurance requirements, and does not allow exclusion of coverage for injuries or damages caused by the provider to the user. If the city allows a provider to operate within the city, it must adopt rules for the operation, parking and maintenance of devices by ordinance, agreement or permit terms before the provider may offer the device for rent or use within the city. With these revisions, the Shared Mobility Ordinance will continue to prohibit the rental of shared mobility devices such as scooters, e-bikes, and other similar personal transportation devices from public property via dockless or docked device storage methods. However, an additional definition has been added that will allow the rental of shared mobility devices from business locations outside of the public right-of-way such as e-bike rental shops with physical locations in the city and e-bike rental delivery vendors who deliver e-bikes for rental directly to the consumers on private property through use of an online app or web portal. In addition, as amended in Section 10.60.040 of the ordinance, a draft agreement between the city and the Shared Mobility Service Provider is provided in Exhibit 4. Feedback on the Future of Shared Mobility in Carlsbad The amended ordinance being presented, maintains the current ordinance’s prohibition of abandoning or placing shared mobility devices for rent in the public right-of-way or other public areas. As part of this item, staff is also seeking feedback from the public and Traffic & Mobility Commission on the future of shared mobility in the city of Carlsbad. Regarding shared mobility implementation in nearby local agencies, the City of Encinitas is currently finalizing a plan to launch the first electronic bike share pilot program in North San Diego County. The program is on track to open in mid-October 2021 and will include a fully docked system, minimizing the concerns for bike clutter, obstructions to pedestrians or potential safety issues related to poorly parked bikes within the public right-of-way. The initial launch of the program will include 100 e-bikes, approximately 200 individual bike parking docks and ten stations, with a provision in the agreement to deploy up to 250 e-bikes and 500 parking docks during the pilot term with City of Encinitas approval. Shared mobility continues to expand into other cities throughout San Diego County. The City of San Diego has the most expansive program with several bicycle and scooter sharing companies authorized to provide nearly 10,000 shared mobility devices in the city. Other cities that currently allow bike share and scooter share in San Diego County include Chula Vista, La Mesa, and El Cajon. Next Steps Staff will take the proposed revisions to Chapter 10.60 Shared Mobility Devices Ordinance and the Shared Mobility Device Rental Agreement to City Council for review and adoption. The proposed revisions will then become effective 30 days after City Council adoption. Item 4 Oct. 4, 2021 Item #4 5 Exhibits 1)Carlsbad Municipal Code, Chapter 10.60 Shared Mobility Devices 2)Assembly Bill (AB) 1286 3) Proposed draft revisions to Carlsbad Municipal Code Chapter 10.60 Shared Mobility Devices 4)Ordinance Amending Carlsbad Municipal Code Chapter 10.60 Shared Mobility Devices 5)Draft Shared Mobility Device Rental Agreement Item 4 Oct. 4, 2021 Item #4 6 ORDINANCE NO. CS-354 AN ORDINANCE . OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, AMENDING CARLSBAD MUNICIPAL CODE TITLE 10, BY ADDING CHAPTER 10.60 REGARDING SHARED MOBILITY DEVICES Exhibit 1 WHEREAS, shared mobility devices provide alternative modes of transportation that can reduce vehicular traffic and parking demands, reduce greenhouse gases consistent with the City of Carlsbad's Climate Action Plan, and that can facilitate implementation of the city's Mobility Element, Coastal Mobility Readiness Plan, and the Village & Barrio Master Plan and Parking Plan; and WHEREAS, the San Diego County region has experienced aggressive deployment by multiple vendors of shared mobility devices, which include bicycles and scooters which run on electricity or are propelled by the user; and WHEREAS, absent a sufficient regulatory framework, the proliferation of shared mobility devices presents serious safety concerns for pedestrians, bicyclists and drivers by creating hazards in the public right-of-way and other public areas that impede circulation and paths of travel; and WHEREAS, such devices have been involved in a number of traffic accidents in the San Diego County region, some of which have resulted in serious injuries or death; and WHEREAS, although the California Vehicle Code allows the City of Carlsbad to cite shared mobility device users and to impound devices in certain circumstances, supplemental local legislation is desirable to provide more comprehensive regulations; and WHEREAS, the proposed ordinance would regulate shared mobility devices occupying the public right-of-way and other public areas to ensure adequate pedestrian traffic flow and public safety, and to maintain public areas free of public nuisances. NOW, THEREFORE, the City Council of the City of Carlsbad, California, does ordain as follows that: SECTION I: The above recitations are true and correct. SECTION II: Carlsbad Municipal Code Chapter 10.60 is amended to read as follows: Item 4 Oct. 4, 2021 Item #4 7 Sections: 10.60.010 10.60.020 10.60.030 10.60.040 10.60.050 10.60.060 10.60.070 10.60.080 10.60.010 Purpose. Definitions. Chapter 10.60 SHARED MOBILITY DEVICES Prohibited conduct. lmpoundment of devices. Administrative regulations. Post summary abatement hearing procedures. Enforcement. Severability. Purpose. The purpose of this chapter is to declare that, unless specifically permitted by this Code, shared mobility devices are prohibited from constituting a public nuisance and from being abandoned or placed for rent in the public right-of-way or other public areas, so as to allow for adequate pedestrian traffic flow, ensure public safety, and to maintain public areas free of public nuisances. 10.60.020 Definitions. For the purposes of this chapter, the following definitions apply: "Abandon" means leaving a shared mobility device unattended in the public right-of-way upon termination of a shared mobility device rental use. "City Manager" means the city manager or authorized designee. "Enforcement official" means any city employee or agent of the city with the authority to enforce any provision of the municipal code. "Imminent life safety hazard" means any condition which creates a present, extreme and immediate danger to life, property, health or public safety. "Operator" means a person who manages, owns, or operates a shared mobility device business. "Person" means any natural person, firm, association, business, trust, organization, corporation, partnership, company, or any other entity, which is recognized by law as the subject of rights or duties. "Public area" means any outdoor area that is open to the members of the public for public use, whether owned or operated by the city or a private party. "Public nuisance" means any condition caused, maintained or permitted to exist that constitutes a threat to the public's health, safety and welfare, which includes, but is not limited to, Exhibit 1Item 4 Oct. 4, 2021 Item #4 8 obstructing travel upon or blocking access to the public right-of-way and posing an imminent life safety hazard. "Public right-of-way" means any public alley, parkway, public transportation path, roadway, sidewalk or street that is owned, granted by easement, operated or controlled by the city. "Shared mobility device" means any wheeled transportation device, other than an automobile or motorcycle, by which a person can be propelled, moved, or drawn; is accessed via an on- demand portal, whether a smartphone application, membership card, or similar method; is displayed, placed or offered for rent in any public area or public right-of-way by an operator for shared use by members of the public; and is available to members of the public in unstaffed, self-service locations. 10.60.030 Prohibited conduct. Notwithstanding any other provision of this code, no person may: A. Display, offer or make available for rent any shared mobility device in the city; B. Abandon a shared mobility device in the public right-of-way or a public area; or C. Park, leave standing, leave lying, or otherwise place a shared mobility device in the public right-of-way or a public area in a manner that constitutes a public nuisance. 10.60.040 lmpoundment of devices. A. In accordance with Government Code section 38771 et seq., any shared mobility device that is in violation of this chapter shall constitute a public nuisance and shall be subject to immediate impoundment by the city manager without prior notice. B. As soon as practicable, the city manager shall provide written notice of the impoundment to the operator. An operator shall retrieve its impounded shared mobility device within 72 hours of written notice from the city manager. D. No operator may retrieve any impounded shared mobility device from the city except upon demonstrating proper proof of ownership of the device and payment of any applicable impound fees. E. The city council may adopt impound fees by resolution, which shall reflect the city's enforcement, investigation, administration, storage and impound costs. Operators shall bear the city's costs through a fee charged on any impounded shared mobility device. F. Any shared mobility device not retrieved from the city within 30 calendar days of being impounded shall be deemed unclaimed property and may, in the city manager's discretion, be destroyed or auctioned in accordance with applicable state and local law. A pending post summary abatement hearing under Section 10.60.050 tolls the operation of this section. Exhibit 1Item 4 Oct. 4, 2021 Item #4 9 G. The foregoing provisions do not limit the city's authority to otherwise impound shared mobility devices in accordance with the State Vehicle Code. 10.60.050 Post summary abatement hearing procedures. A. The operator of a shared mobility device that has been impounded in accordance with Section 10.60.040 may request a post summary abatement hearing. The request must be submitted in writing to the city manager within 10 calendar days of the date of the city manager's written notice of impoundment. B. The city manager shall schedule a post summary abatement hearing not less than 15 days and not more than 60 days from the date of the operator's written request. C. A notice of the post summary abatement hearing shall be served on the operator at least ten calendar days prior to the date of the hearing. The notice of hearing shall be served by any of the methods of service listed in Section 1.10.040. D. The post summary abatement hearing shall be conducted by an administrative hearing officer in accordance with the following provisions: 1. The failure of any recipient of an impoundment notice to appear at the hearing shall constitute a failure to exhaust their administrative remedies. 2. An operator's failure to file an appeal shall constitute a waiver of any rights to an administrative determination of the merits of the impoundment notice and the amount of the impoundment fees. 3. At the hearing, the operator shall be given the opportunity to testify and to present evidence concerning the impoundment notice. 4. The impoundment notice and any additional report submitted by the enforcement officer shall constitute prim a facie evidence of the respective facts contained in those documents. 5. The administrative hearing officer may continue the hearing and request additional information from the enforcement officer or the operator prior to issuing a written decision. 6. After considering all of the testimony and evidence submitted at the hearing, the administrative hearing officer shall issue a written decision that lists their reasons for upholding or canceling the impoundment notice. A written copy of the administrative hearing officer's decision shall be provided to the operator. 7. The administrative hearing officer may assess the city's reasonable administrative costs, including any impound fees and all costs incurred by the city from first discovery of the violations through the appeal process and until compliance is achieved, such as staff time for Exhibit 1 Item 4 Oct. 4, 2021 Item #4 10 inspection of the violations, sending notices, and for preparing and attending any appeal hearing. G. The administrative hearing officer's decision is the final administrative remedy without further administrative appeals. 10.60.060 Administrative regulations. The city manager may adopt administrative regulations that are consistent with and that further the terms and requirements set forth within this chapter. All such administrative regulations must be in writing. 10.60.070 Enforcement. Violation of any provision of this chapter is punishable pursuant to chapter 1.08 of this code, or by the administrative code enforcement remedies of chapter 1.10 of this code. 10.60.080 Severability. If any provision of this chapter or the application thereof to any person or circumstances is held invalid, the remainder of the chapter and the application of the provision to other persons not similarly situated or to other circumstances shall not be affected thereby. Exhibit 1 Item 4 Oct. 4, 2021 Item #4 11 EFFECTIVE DATE: This ordinance shall be effective thirty days after its adoption; and the City Clerk shall certify the adoption of this ordinance and cause the full text of the ordinance or a summary of the ordinance prepared by the City Attorney to be published at least once in a newspaper of general circulation in the City of Carlsbad within fifteen days after its adoption. INTRODUCED AND FIRST READ at a Regular Meeting of the Carlsbad City Council on the 14th day of May 2019, and thereafter PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad on the 21st day of May 2019, by the following vote, to wit: AYES: NAYS: Hall, Blackburn, Bhat-Patel, Schumacher. None. ABSENT: Hamilton. APPROVED AS TO FORM AND LEGALITY: fU & w~ ,,-w, .. ,:;., ""'9r t11~ "1-f'--, CELIA A. BREWER, City Attorney (SEAL) Exhibit 1 Item 4 Oct. 4, 2021 Item #4 12 Assembly Bill No. 1286 CHAPTER 91 An act to add Title 10.1 (commencing with Section 2505) to Part 4 of Division 3 of the Civil Code, relating to mobility devices. [Approved by Governor September 18, 2020. Filed with Secretary of State September 18, 2020.] legislative counsel’s digest AB 1286, Muratsuchi. Shared mobility devices: agreements. Existing law regulates contracts for particular transactions, including those in which one person agrees to give to another person the temporary possession and use of personal property, other than money for reward, and the latter agrees to return the property to the former at a future time. This bill would require a shared mobility service provider, as defined, to enter into an agreement with, or obtain a permit from, the city or county with jurisdiction over the area of use. The bill would require that the provider maintain a specified amount of commercial general liability insurance in a user agreement before distributing a shared mobility device within that jurisdiction. The bill would define shared mobility device to mean an electrically motorized board, motorized scooter, electric bicycle, bicycle, or other similar personal transportation device, except as provided. This bill would require a city or county that authorizes a shared mobility device provider to operate within its jurisdiction on or after January 1, 2021, to adopt operation, parking, and maintenance rules, as provided, regarding the use of the shared mobility devices in its jurisdiction before the provider may offer shared mobility devices for rent or use. The bill would require a city or county that authorized a provider to operate within its jurisdiction before January 1, 2021, and continues to provide that authorization to adopt operation, parking, and maintenance rules, as provided, by January 1, 2022. The people of the State of California do enact as follows: SECTION 1. Title 10.1 (commencing with Section 2505) is added to Part 4 of Division 3 of the Civil Code, to read: TITLE 10.1. SHARED MOBILITY DEVICES 2505. (a) For purposes of this title: (1) “Shared mobility device” means an electrically motorized board as defined in Section 313.5 of the Vehicle Code, motorized scooter as defined in Section 407.5 of the Vehicle Code, electric bicycle as defined in Section 92 Item 4 Oct. 4, 2021 Item #4 13 Exhibit 2 Ch. 91 — 2 — 312.5 of the Vehicle Code, bicycle as defined in Section 231 of the Vehicle Code, or other similar personal transportation device, except as provided in subdivision (b) of Section 415 of the Vehicle Code, that is made available to the public by a shared mobility service provider for shared use and transportation in exchange for financial compensation via a digital application or other electronic or digital platform. (2) “Shared mobility service provider” or “provider” means a person or entity that offers, makes available, or provides a shared mobility device in exchange for financial compensation or membership via a digital application or other electronic or digital platform. (b) Before distribution of a shared mobility device, a shared mobility service provider shall enter into an agreement with, or obtain a permit from, the city or county with jurisdiction over the area of use. The agreement or permit shall, at a minimum, require that the shared mobility service provider maintain commercial general liability insurance coverage with a carrier doing business in California, with limits not less than one million dollars ($1,000,000) for each occurrence for bodily injury or property damage, including contractual liability, personal injury, and product liability and completed operations, and not less than five million dollars ($5,000,000) aggregate for all occurrences during the policy period. The insurance shall not exclude coverage for injuries or damages caused by the shared mobility service provider to the shared mobility device user. (c) (1) A city or county that authorizes a provider to operate within its jurisdiction on or after January 1, 2021, shall adopt rules for the operation, parking, and maintenance of shared mobility devices before a provider may offer any shared mobility device for rent or use in the city or county by any of the following: (A) Ordinance. (B) Agreement. (C) Permit terms. (2) A city or county that authorized a provider to operate within its jurisdiction before January 1, 2021, and continues to provide that authorization shall adopt rules for the operation, parking, and maintenance of shared mobility devices by January 1, 2022, by any of the following: (A) Ordinance. (B) Agreement. (C) Permit terms. (3) A provider shall comply with all applicable rules, agreements, and permit terms established pursuant to this subdivision. (d) Nothing in this section shall prohibit a city or county from adopting any ordinance or regulation that is not inconsistent with this title. SEC. 2. The provisions of this act are severable. If any provision of this act or its application is held invalid, that invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application. O 92 Item 4 Oct. 4, 2021 Item #4 14 Chapter 10.60 SHARED MOBILITY DEVICES Sections: 10.60.010 Purpose. 10.60.020 Definitions. 10.60.030 Prohibited conduct. 10.60.040 Shared Mobility Service Provider Agreement; Indemnity and Insurance Requirements. 10.60.050 Impoundment of devices. 10.60.060 Administrative regulations. 10.60.070 Post summary abatement hearing procedures. 10.60.080 Enforcement. 10.60.090 Severability. 10.60.010 Purpose. The purpose of this chapter is to declare that, unless specifically permitted by this code, shared mobility devices are prohibited from constituting a public nuisance and from being abandoned or placed for rent in the public right-of-way or other public areas, so as to allow for adequate pedestrian traffic flow, ensure public safety, and to maintain public areas free of public nuisances. The City of Carlsbad is host to many visitors and residents who have a need for transportation to various destinations in the city. One of the means to accommodate this demand for transportation is through shared mobility devices. The ability of visitors and residents to access the various areas of the city is important to the enjoyment of the community and to the local economy. The purpose of this chapter is to balance these transportation demands and needs of the public with consumer protection and public safety concerns. The purpose of this chapter is to (1) impose basic safety and insurance requirements on properly-licensed shared mobility device providers to meet statewide standards and (2) regulate the operation of shared mobility device providers by requiring that rental of shared mobility devices occur on private property. 10.60.020 Definitions. For the purposes of this chapter, the following definitions apply: “Abandon” means leaving a shared mobility device unattended in the public right-of-way upon termination of a shared mobility device rental use. “City manager” means the city manager or authorized designee. Item 4 Oct. 4, 2021 Item #4 15 Exhibit 3 “Enforcement official” means any city employee or agent of the city with the authority to enforce any provision of the municipal code. “Imminent life safety hazard” means any condition which creates a present, extreme and immediate danger to life, property, health or public safety. “Operator” means a person who manages, owns, or operates a shared mobility device business. “Person” means any natural person, firm, association, business, trust, organization, corporation, partnership, company, or any other entity, which is recognized by law as the subject of rights or duties. “Public area” means any outdoor area that is open to the members of the public for public use, whether owned or operated by the city or a private party. “Public nuisance” has the same meaning as in Section 6.16.010 which includes, but is not limited to, obstructing travel upon or blocking access to the public right-of-way and posing an imminent life safety hazard. “Public right-of-way” means any public alley, parkway, public transportation path, roadway, sidewalk or street that is owned, granted by easement, operated or controlled by the city. “Shared mobility device” has the same meaning as in California Civil Code Section 2505, as it may be amended from time to time. “Shared mobility service provider” has the same meaning as in California Civil Code Section 2505, as it may be amended from time to time. 10.60.030 Prohibited conduct. Notwithstanding any other provision of this code, no person may: A. Display, offer or make available for rent any shared mobility device in any public area or public right-of-way; B.Display, offer or make available for rent any shared mobility device in any public area or public right-of-way via a digital application or other electronic or digital platform. C.Abandon a shared mobility device in the public right-of-way or a public area; or D.Park, leave standing, leave lying, or otherwise place a shared mobility device in the public right-of-way or a public area in a manner that constitutes a public nuisance. Excepted from this subsection are shared mobility device providers who display, offer or make available for rent any shared mobility device on private property via a digital application or Item 4 Oct. 4, 2021 Item #4 16 other electronic or digital platform if shared mobility device users pickup and return shared mobility devices on private property. 10.60.040 Shared Mobility Service Provider Agreement; Indemnity and Insurance Requirements. A.Before distribution of a shared mobility device, a shared mobility service provider shall enter into an agreement with the city. The agreement shall be in a form as prescribed by the city attorney and shall include, but not be limited to, all requirements of California Civil Code Section 2505. The city attorney may update the form of the agreement based on any amendments to California Civil Code Section 2505, or any other provision of law affecting shared mobility devices. The city manager, or designee, is authorized to sign agreements required by this section on behalf of the city. B.Shared mobility service providers shall maintain commercial general liability insurance coverage with a carrier doing business in California, with limits not less than one million dollars ($1,000,000) for each occurrence for bodily injury or property damage, including contractual liability, personal injury, and product liability and completed operations, and not less than five million dollars ($5,000,000) aggregate for all occurrences during the policy period. The insurance shall not exclude coverage for injuries or damages caused by the shared mobility service provider to the shared mobility device user. C.The cancellation of any insurance policy required by this section constitutes a violation of this subsection 10.60.040 and all shared mobility service provider operations shall cease. In order to cure a violation of this subsection, the shared mobility service provider shall provide the city manager, or designee, with a new, valid certificate and policy of insurance that satisfies the requirements of this subsection 10.60.040. 10.60.050 Impoundment of devices. A.In accordance with California Government Code Section 38771 et seq., any shared mobility device that is in violation of this chapter shall constitute a public nuisance and shall be subject to immediate impoundment by the city manager without prior notice. B.As soon as practicable, the city manager shall provide written notice of the impoundment to the operator. An operator shall retrieve its impounded shared mobility device within 72 hours of written notice from the city manager. D. No operator may retrieve any impounded shared mobility device from the city except upon demonstrating proper proof of ownership of the device and payment of any applicable impound fees. E.The city council may adopt impound fees by resolution, which shall reflect the city’s enforcement, investigation, administration, storage and impound costs. Operators shall bear the city’s costs through a fee charged on any impounded shared mobility device. Item 4 Oct. 4, 2021 Item #4 17 F. Any shared mobility device not retrieved from the city within 30 calendar days of being impounded shall be deemed unclaimed property and may, in the city manager’s discretion, be destroyed or auctioned in accordance with applicable state and local law. A pending post summary abatement hearing under Section 10.60.060 tolls the operation of this section. G.The foregoing provisions do not limit the city’s authority to otherwise impound shared mobility devices in accordance with the California Vehicle Code. 10.60.060 Post summary abatement hearing procedures. A.The operator of a shared mobility device that has been impounded in accordance with Section 10.60.040 may request a post summary abatement hearing. The request must be submitted in writing to the city manager within 10 calendar days of the date of the city manager’s written notice of impoundment. B.The city manager shall schedule a post summary abatement hearing not less than 15 days and not more than 60 days from the date of the operator’s written request. C.A notice of the post summary abatement hearing shall be served on the operator at least ten calendar days prior to the date of the hearing. The notice of hearing shall be served by any of the methods of service listed in Section 1.10.040. D.The post summary abatement hearing shall be conducted by an administrative hearing officer in accordance with the following provisions: 1. The failure of any recipient of an impoundment notice to appear at the hearing shall constitute a failure to exhaust administrative remedies. 2.An operator’s failure to file an appeal shall constitute a waiver of any rights to an administrative determination of the merits of the impoundment notice and the amount of the impoundment fees. 3.At the hearing, the operator shall be given the opportunity to testify and to present evidence concerning the impoundment notice. 4. The impoundment notice and any additional report submitted by the enforcement officer shall constitute prima facie evidence of the respective facts contained in those documents. 5. The administrative hearing officer may continue the hearing and request additional information from the enforcement officer or the operator prior to issuing a written decision. 6.After considering all of the testimony and evidence submitted at the hearing, the administrative hearing officer shall issue a written decision that lists the hearing officer’s Item 4 Oct. 4, 2021 Item #4 18 reasons for upholding or canceling the impoundment notice. A written copy of the administrative hearing officer’s decision shall be provided to the operator. 7. The administrative hearing officer may assess the city’s reasonable administrative costs, including any impound fees and all costs incurred by the city from first discovery of the violations through the appeal process and until compliance is achieved, such as staff time for inspection of the violations, sending notices, and for preparing and attending any appeal hearing. E.The administrative hearing officer’s decision is the final administrative remedy without further administrative appeals. 10.60.070 Administrative regulations. The city manager may adopt administrative regulations that are consistent with and that further the terms and requirements set forth within this chapter. All such administrative regulations must be in writing. 10.60.080 Enforcement. Violation of any provision of this chapter is punishable pursuant to chapter 1.08 of this code, or by the administrative code enforcement remedies of chapter 1.10 of this code. 10.60.090 Severability. If any portion of this chapter, or its application to particular persons or circumstances, is held to be invalid or unconstitutional by a final decision of a court of competent jurisdiction, the decision shall not affect the validity of the remaining portions of this chapter or the application of the chapter to persons or circumstances not similarly situated. Item 4 Oct. 4, 2021 Item #4 19 ORDINANCE NO. . AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, AMENDING CHAPTER 10.60 OF THE CARLSBAD MUNICIPAL CODE REGARDING SHARED MOBILITY DEVICES WHEREAS, shared mobility devices provide alternative modes of transportation that can reduce vehicular traffic and parking demands, reduce greenhouse gases consistent with the City of Carlsbad's Climate Action Plan, and that can facilitate implementation of the city's Mobility Element, Coastal Mobility Readiness Plan, and the Village & Barrio Master Plan and Parking Plan; and WHEREAS, on May 21, 2019, the City Council adopted Ordinance CS-354 which added Chapter 10.60 to the Carlsbad Municipal Code to regulate shared mobility devices occupying the public right- of-way and other public areas to ensure adequate pedestrian traffic flow and public safety, and to maintain public areas free of public nuisances; and WHEREAS, state law requires a city to adopt operation, parking, and maintenance rules regarding the use of the shared mobility devices in its jurisdiction before a shared mobility device provider may offer shared mobility devices for rent or use within its jurisdiction; and WHEREAS, the City Council wishes to amend Chapter 10.60 to impose basic safety and insurance requirements on properly-licensed shared mobility device providers to meet statewide standards and regulate the operation of shared mobility device providers by requiring that rental of shared mobility devices occur on private property; and NOW, THEREFORE, the City Council of the City of Carlsbad, California, ordains as follows that: 1. The above recitations are true and correct. 2.Carlsbad Municipal Code Chapter 10.60 is amended to read as follows: Chapter 10.60 SHARED MOBILITY DEVICES Sections: 10.60.010 Purpose. 10.60.020 Definitions. 10.60.030 Prohibited conduct. 10.60.040 Shared Mobility Service Provider Agreement; Indemnity and Insurance Requirements. 10.60.050 Impoundment of devices. 10.60.060 Administrative regulations. 10.60.070 Post summary abatement hearing procedures. Item 4 Oct. 4, 2021 Item #4 20 Exhibit 4 10.60.080 Enforcement. 10.60.090 Severability. 10.60.010 Purpose. The purpose of this chapter is to declare that, unless specifically permitted by this code, shared mobility devices are prohibited from constituting a public nuisance and from being abandoned or placed for rent in the public right-of-way or other public areas, so as to allow for adequate pedestrian traffic flow, ensure public safety, and to maintain public areas free of public nuisances. The City of Carlsbad is host to many visitors and residents who have a need for transportation to various destinations in the city. One of the means to accommodate this demand for transportation is through shared mobility devices. The ability of visitors and residents to access the various areas of the city is important to the enjoyment of the community and to the local economy. The purpose of this chapter is to balance these transportation demands and needs of the public with consumer protection and public safety concerns. The purpose of this chapter is to (1) impose basic safety and insurance requirements on properly-licensed shared mobility device providers to meet statewide standards and (2) regulate the operation of shared mobility device providers by requiring that rental of shared mobility devices occur on private property. 10.60.020 Definitions. For the purposes of this chapter, the following definitions apply: “Abandon” means leaving a shared mobility device unattended in the public right-of-way upon termination of a shared mobility device rental use. “City manager” means the city manager or authorized designee. “Enforcement official” means any city employee or agent of the city with the authority to enforce any provision of the municipal code. “Imminent life safety hazard” means any condition which creates a present, extreme and immediate danger to life, property, health or public safety. “Operator” means a person who manages, owns, or operates a shared mobility device business. “Person” means any natural person, firm, association, business, trust, organization, corporation, partnership, company, or any other entity, which is recognized by law as the subject of rights or duties. “Public area” means any outdoor area that is open to the members of the public for public use, whether owned or operated by the city or a private party. Item 4 Oct. 4, 2021 Item #4 21 “Public nuisance” has the same meaning as in Section 6.16.010 which includes, but is not limited to, obstructing travel upon or blocking access to the public right-of-way and posing an imminent life safety hazard. “Public right-of-way” means any public alley, parkway, public transportation path, roadway, sidewalk or street that is owned, granted by easement, operated or controlled by the city. “Shared mobility device” has the same meaning as in California Civil Code Section 2505, as it may be amended from time to time. “Shared mobility service provider” has the same meaning as in California Civil Code Section 2505, as it may be amended from time to time. 10.60.030 Prohibited conduct. Notwithstanding any other provision of this code, no person may: A. Display, offer or make available for rent any shared mobility device in any public area or public right-of-way; B.Display, offer or make available for rent any shared mobility device in any public area or public right-of-way via a digital application or other electronic or digital platform. C.Abandon a shared mobility device in the public right-of-way or a public area; or D.Park, leave standing, leave lying, or otherwise place a shared mobility device in the public right-of-way or a public area in a manner that constitutes a public nuisance. Excepted from this subsection are shared mobility device providers who display, offer or make available for rent any shared mobility device on private property via a digital application or other electronic or digital platform if shared mobility device users pickup and return shared mobility devices on private property. 10.60.040 Shared Mobility Service Provider Agreement; Indemnity and Insurance Requirements. A.Before distribution of a shared mobility device, a shared mobility service provider shall enter into an agreement with the city. The agreement shall be in a form as prescribed by the city attorney and shall include, but not be limited to, all requirements of California Civil Code Section 2505. The city attorney may update the form of the agreement based on any amendments to California Civil Code Section 2505, or any other provision of law affecting shared mobility devices. The city manager, or designee, is authorized to sign agreements required by this section on behalf of the city. B.Shared mobility service providers shall maintain commercial general liability insurance coverage with a carrier doing business in California, with limits not less than one million dollars ($1,000,000) for each occurrence for bodily injury or property damage, including contractual liability, personal injury, and product liability and completed operations, and not less than five million dollars Item 4 Oct. 4, 2021 Item #4 22 ($5,000,000) aggregate for all occurrences during the policy period. The insurance shall not exclude coverage for injuries or damages caused by the shared mobility service provider to the shared mobility device user. C.The cancellation of any insurance policy required by this section constitutes a violation of this subsection 10.60.040 and all shared mobility service provider operations shall cease. In order to cure a violation of this subsection, the shared mobility service provider shall provide the city manager, or designee, with a new, valid certificate and policy of insurance that satisfies the requirements of this subsection 10.60.040. 10.60.050 Impoundment of devices. A.In accordance with California Government Code Section 38771 et seq., any shared mobility device that is in violation of this chapter shall constitute a public nuisance and shall be subject to immediate impoundment by the city manager without prior notice. B.As soon as practicable, the city manager shall provide written notice of the impoundment to the operator. An operator shall retrieve its impounded shared mobility device within 72 hours of written notice from the city manager. D. No operator may retrieve any impounded shared mobility device from the city except upon demonstrating proper proof of ownership of the device and payment of any applicable impound fees. E.The city council may adopt impound fees by resolution, which shall reflect the city’s enforcement, investigation, administration, storage and impound costs. Operators shall bear the city’s costs through a fee charged on any impounded shared mobility device. F. Any shared mobility device not retrieved from the city within 30 calendar days of being impounded shall be deemed unclaimed property and may, in the city manager’s discretion, be destroyed or auctioned in accordance with applicable state and local law. A pending post summary abatement hearing under Section 10.60.060 tolls the operation of this section. G.The foregoing provisions do not limit the city’s authority to otherwise impound shared mobility devices in accordance with the California Vehicle Code. 10.60.060 Post summary abatement hearing procedures. A.The operator of a shared mobility device that has been impounded in accordance with Section 10.60.040 may request a post summary abatement hearing. The request must be submitted in writing to the city manager within 10 calendar days of the date of the city manager’s written notice of impoundment. B.The city manager shall schedule a post summary abatement hearing not less than 15 days and not more than 60 days from the date of the operator’s written request. Item 4 Oct. 4, 2021 Item #4 23 C.A notice of the post summary abatement hearing shall be served on the operator at least ten calendar days prior to the date of the hearing. The notice of hearing shall be served by any of the methods of service listed in Section 1.10.040. D.The post summary abatement hearing shall be conducted by an administrative hearing officer in accordance with the following provisions: 1. The failure of any recipient of an impoundment notice to appear at the hearing shall constitute a failure to exhaust administrative remedies. 2.An operator’s failure to file an appeal shall constitute a waiver of any rights to an administrative determination of the merits of the impoundment notice and the amount of the impoundment fees. 3.At the hearing, the operator shall be given the opportunity to testify and to present evidence concerning the impoundment notice. 4. The impoundment notice and any additional report submitted by the enforcement officer shall constitute prima facie evidence of the respective facts contained in those documents. 5. The administrative hearing officer may continue the hearing and request additional information from the enforcement officer or the operator prior to issuing a written decision. 6.After considering all of the testimony and evidence submitted at the hearing, the administrative hearing officer shall issue a written decision that lists the hearing officer’s reasons for upholding or canceling the impoundment notice. A written copy of the administrative hearing officer’s decision shall be provided to the operator. 7. The administrative hearing officer may assess the city’s reasonable administrative costs, including any impound fees and all costs incurred by the city from first discovery of the violations through the appeal process and until compliance is achieved, such as staff time for inspection of the violations, sending notices, and for preparing and attending any appeal hearing. E.The administrative hearing officer’s decision is the final administrative remedy without further administrative appeals. 10.60.070 Administrative regulations. The city manager may adopt administrative regulations that are consistent with and that further the terms and requirements set forth within this chapter. All such administrative regulations must be in writing. Item 4 Oct. 4, 2021 Item #4 24 10.60.080 Enforcement. Violation of any provision of this chapter is punishable pursuant to chapter 1.08 of this code, or by the administrative code enforcement remedies of chapter 1.10 of this code. 10.60.090 Severability. If any portion of this chapter, or its application to particular persons or circumstances, is held to be invalid or unconstitutional by a final decision of a court of competent jurisdiction, the decision shall not affect the validity of the remaining portions of this chapter or the application of the chapter to persons or circumstances not similarly situated. Item 4 Oct. 4, 2021 Item #4 25 EFFECTIVE DATE: This ordinance shall be effective thirty days after its adoption; and the City Clerk shall certify the adoption of this ordinance and cause the full text of the ordinance or a summary of the ordinance prepared by the City Attorney to be published at least once in a newspaper of general circulation in the City of Carlsbad within fifteen days after its adoption. INTRODUCED AND FIRST READ at a Regular Meeting of the Carlsbad City Council on the ______ day of __________, 2021, and thereafter PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad on the __ day of ________, 2021, by the following vote, to wit: AYES: NAYS: ABSENT: APPROVED AS TO FORM AND LEGALITY: _________________________________ CELIA A. BREWER, City Attorney ____________________________________ MATT HALL, Mayor _____________________________________ FAVIOLA MEDINA, City Clerk Services Manager (SEAL) Item 4 Oct. 4, 2021 Item #4 26 AGREEMENT FOR SHARED MOBILITY DEVICE RENTAL SERVICES (INSERT NAME OF CONTRACTOR) AND THE CITY OF CARLSBD THIS AGREEMENT is made and entered into as of the ______________ day of _________________________, 20___, between the CITY OF CARLSBAD, a municipal corporation, ("City"), and ______________________________, a _______________, ("Contractor"). RECITALS A.Civil Code section 2505 and Carlsbad Municipal Code chapter 10.60 require theCity to execute this Agreement with Contractor to prescribe the rules for the operation, parking, and maintenance of shared mobility devices. B.Contractor provides shared mobility device rental services within the City ofCarlsbad. C.Contractor has a valid City business license to provide such rental services to thepublic. NOW, THEREFORE, in consideration of these recitals and the mutual covenants contained herein, City and Contractor agree as follows: 1.SCOPE OF SERVICESContractor shall follow all requirements provided in Carlsbad Municipal Code Chapter 10.60 whenrenting shared mobility devices to the public (the "Services"). The Services are further described and defined in attached Exhibit "A", which is incorporated by this reference in accordance withthis Agreement’s terms and conditions. 2.STANDARD OF PERFORMANCEWhile performing the Services, Contractor will exercise the reasonable professional care and skillcustomarily exercised by reputable members of Contractor's profession practicing in theMetropolitan Southern California Area, and will use reasonable diligence and best judgment whileexercising its professional skill and expertise. 3.TERMThe term of this Agreement shall be effective for as long as Contractor provides shared mobility device rentals to the public. Consistent with Section 7 below, the City may terminate the term ofthis Agreement if Contractor’s policy of insurance expires or lapses. 4.TIME IS OF THE ESSENCETime is of the essence for each and every provision of this Agreement. 5.COMPENSATIONNeither the City nor Contractor shall pay each other compensation during the term of thisAgreement. 6.STATUS OF CONTRACTORContractor will perform the Services in Contractor's own way as an independent contractor and in pursuit of Contractor's independent calling, and not as an employee of City. Contractor will beunder control of City only as to the result to be accomplished by Civil Code section 2505, or anyother applicable provision of law, but will consult with City as necessary to satisfy these legal Item 4 Oct. 4, 2021 Item #4 27 Exhibit 5 requirements. The persons used by Contractor to provide services under this Agreement will not be considered employees of City for any purposes. No payments shall be made from the City to Contractor in connection with this Agreement. City will not make any federal or state tax withholdings on behalf of Contractor or its agents, employees or subcontractors. City will not be required to pay any workers' compensation insurance or unemployment contributions on behalf of Contractor or its employees or subcontractors. Contractor shall be solely liable for making any tax, retirement contribution, social security, overtime payment, unemployment payment or workers' compensation payment to its agents, employees, or subcontractors for Contractor’s Services provided under this Agreement. 7.INSURANCEContractor will obtain and maintain for the duration of the Agreement and any and allamendments, insurance against claims for injuries to persons or damage to property which mayarise out of or in connection with performance of the Services by Contractor or Contractor’sagents, representatives, employees or subcontractors. Contractor shall obtain commercialgeneral liability insurance coverage with a carrier doing business in California, with limits not lessthan one million dollars ($1,000,000) for each occurrence for bodily injury or property damage,including contractual liability, personal injury, and product liability and completed operations, and not less than five million dollars ($5,000,000) aggregate for all occurrences during the policyperiod. The insurance shall not exclude coverage for injuries or damages caused by the sharedmobility service provider to the shared mobility device user. 7.1 Notice. This insurance will be in force during the term of the Agreement and any extensions of it and will not be canceled without thirty (30) days prior written notice to City sent by certified mail pursuant to the Notice provisions of this Agreement. 7.2 Submission of Insurance Policies. Before City's execution of this Agreement, Contractor shall furnish certificates of insurance and endorsements to City. Thereafter, City reserves the right to require, at any time, complete and certified copies of any or all required insurance policies and endorsements. 7.3 Failure to Maintain Coverage. If Contractor’s required insurance expires, lapses, or if Contractor otherwise fails to maintain any of these insurance coverages during the term of the Agreement, then City may declare Contractor in material breach of this Agreement and in violation of Carlsbad Municipal Code Chapter 10.60. In such instance: 7.3.1 The City may purchase replacement insurance or pay the premiums that are due on existing policies in order to maintain the required coverages. Contractor is responsible for any payments made by City to obtain or maintain insurance and City may collect these payments from Contractor or deduct the amount paid from any sums due Contractor under this Agreement. 7.3.2 The City Manager, or designee, shall notify Contractor and request a new, valid certificate and policy of insurance to the satisfaction of the City Manager, or designee, within 30 days from the date of the notice. If Contractor fails to provide the required insurance within that 30-day period, the city may terminate the Agreement pursuant to Section 14. 8.BUSINESS LICENSE Contractor will obtain and maintain a City of Carlsbad Business License for the term of theAgreement, as may be amended from time-to-time. Item 4 Oct. 4, 2021 Item #4 28 9.NOTICESThe name of the persons who are authorized to give written notice or to receive written notice on behalf of City and on behalf of Contractor under this Agreement. For City For Contractor Name Nathan Schmidt Name Title Transportation Planning and Mobility Manager Title Department Transportation Address City of Carlsbad Address 1635 Faraday Ave. Phone No. Carlsbad, CA 92008 Email Phone No. 760-602-2734 Each party will notify the other immediately of any changes of address that would require any notice or delivery to be directed to another address. 10.CONFLICT OF INTERESTContractor shall file a Conflict of Interest Statement with the City Clerk in accordance with therequirements of the City of Carlsbad Conflict of Interest Code. The Contractor shall reportinvestments or interests in all categories. Yes No 11.GENERAL COMPLIANCE WITH LAWSContractor will keep fully informed of federal, state and local laws and ordinances and regulationswhich in any manner affect those employed by Contractor, or in any way affect the performanceof the Services by Contractor. Contractor will at all times observe and comply with these laws,ordinances, and regulations and will be responsible for the compliance of Contractor's serviceswith all applicable laws, ordinances and regulations. Contractor will be aware of the requirements of the Immigration Reform and Control Act of 1986 and will comply with those requirements, including, but not limited to, verifying the eligibility for employment of all agents, employees, subcontractors and consultants whose services are required by this Agreement. 12.DISCRIMINATION AND HARASSMENT PROHIBITEDContractor will comply with all applicable local, state and federal laws and regulations prohibitingdiscrimination and harassment. 13.DISPUTE RESOLUTIONIf a dispute should arise regarding the performance of the Services the following procedure willbe used to resolve any questions of fact or interpretation not otherwise settled by agreementbetween the parties. Representatives of Contractor or City will reduce such questions, and theirrespective views, to writing. A copy of such documented dispute will be forwarded to both partiesinvolved along with recommended methods of resolution, which would be of benefit to bothparties. The representative receiving the letter will reply to the letter along with a recommended x Item 4 Oct. 4, 2021 Item #4 29 method of resolution within ten (10) business days. If the resolution thus obtained is unsatisfactory to the aggrieved party, a letter outlining the disputes will be forwarded to the City Manager. The City Manager will consider the facts and solutions recommended by each party and may then opt to direct a solution to the problem. In such cases, the action of the City Manager will be binding upon the parties involved, although nothing in this procedure will prohibit the parties from seeking remedies available to them at law. 14.TERMINATIONIn the event of the Contractor's failure to prosecute, deliver, or perform the Services, or provideinsurance that satisfies the requirements of Section 7, the City Manager, or designee, mayterminate this Agreement for nonperformance by notifying Contractor by certified mail of thetermination. Upon notification of termination, Contractor has five (5) business days to deliver anydocuments owned by City and all work in progress to City address contained in this Agreement. Either party upon tendering thirty (30) days’ written notice to the other party may terminate this Agreement. In this event, the City Manager, or designee, may terminate this Agreement on behalf of City. 15.CLAIMS AND LAWSUITS By signing this Agreement, Contractor agrees that any Agreement claim submitted to City mustbe asserted as part of the Agreement process as set forth in this Agreement and not in anticipationof litigation or in conjunction with litigation. Contractor acknowledges that if a false claim is submitted to City, it may be considered fraud and Contractor may be subject to criminalprosecution. Contractor acknowledges that California Government Code sections 12650 et seq.,the False Claims Act applies to this Agreement and, provides for civil penalties where a person knowingly submits a false claim to a public entity. These provisions include false claims madewith deliberate ignorance of the false information or in reckless disregard of the truth or falsity ofinformation. If City seeks to recover penalties pursuant to the False Claims Act, it is entitled torecover its litigation costs, including attorney's fees. Contractor acknowledges that the filing of afalse claim may subject Contractor to an administrative debarment proceeding as the result ofwhich Contractor may be prevented to act as a Contractor on any public work or improvement fora period of up to five (5) years. Contractor acknowledges debarment by another jurisdiction isgrounds for City to terminate this Agreement. 16.JURISDICTION AND VENUEAny action at law or in equity brought by either of the parties for the purpose of enforcing a right or rights provided for by this Agreement will be tried in a court of competent jurisdiction in theCounty of San Diego, State of California, and the parties waive all provisions of law providing fora change of venue in these proceedings to any other county. 17.SUCCESSORS AND ASSIGNSIt is mutually understood and agreed that this Agreement will be binding upon City and Contractor and their respective successors. Neither this Agreement nor any part of it nor any monies due orto become due under it may be assigned by Contractor without the prior consent of City, whichshall not be unreasonably withheld. 18.ENTIRE AGREEMENTThis Agreement, together with any other written document referred to or contemplated by it, embody the entire Agreement and understanding between the parties relating to the subjectmatter of it. Neither this Agreement nor any of its provisions may be amended, modified, waivedor discharged except in a writing signed by both parties. Item 4 Oct. 4, 2021 Item #4 30 19.AUTHORITYThe individuals executing this Agreement and the instruments referenced in it on behalf of Contractor each represent and warrant that they have the legal power, right and actual authorityto bind Contractor to the terms and conditions of this Agreement. CONTRACTOR CITY OF CARLSBAD, a municipal corporation of the State of California By: By: (sign here) SCOTT CHADWICK City Manager (print name/title) ATTEST: By: (sign here) FAVIOLA MEDINA City Clerk Services Manager (print name/title) If required by City, proper notarial acknowledgment of execution by contractor must be attached. If a corporation, Agreement must be signed by one corporate officer from each of the following two groups. Group A Group B Chairman, Secretary, President, or Assistant Secretary, Vice-President CFO or Assistant Treasurer Otherwise, the corporation must attach a resolution certified by the secretary or assistant secretary under corporate seal empowering the officer(s) signing to bind the corporation. APPROVED AS TO FORM: CELIA A. BREWER, City Attorney BY: _____________________________ Assistant City Attorney Item 4 Oct. 4, 2021 Item #4 31 EXHIBIT “A” SCOPE OF SERVICES [Insert description of services Contractor provides within City] Item 4 Oct. 4, 2021 Item #4 32