Lime scooters return to South Lake Tahoe with contract, new fees

SOUTH LAKE TAHOE, Calif. - Lime is returning to South Lake Tahoe this summer, but with some changes both visibly and financially during a new one-year trial period for 2019.

After much discussion on Tuesday night, the City Council unanimously approved a new contract with Lime that will bring up to 550 scooters to town this season, but, as reported before, the bikes are not returning.

The Council wanted to make sure not all 550 will appear on opening day at the beginning of May and will work with Lime to start slow.

The biggest change this year is that only those 18 and older with a valid driver's license can be on the scooter, and those younger are leaving themselves open to citations since it will be illegal. Only one scooter can be unlocked by a single credit card and license at one time, a requirement officials hope will prevent those under 18 from using the scooters.

Lime said they have signage on their App and on the scooter to keep the user informed.

The following rules will be in place:

- Permits electric scooters only. (Lime elected to eliminate bicycles).
- Priority areas for geo-fencing include Heavenly Village and Lakeview Commons to promote pedestrian safety.
- Require a valid driver’s license per scooter rented, in order to help prevent the use of electric scooters by minors.
- Limit speed to 15 miles per hour for safety of users.
- Fleet size shall be no more than 550 with an option to request an increase fleet limit based on performance.
- Electric scooter parking clearly defined including where NOT to park.
- A fee of $35 charged to Lime each time City staff removes equipment from an undesignated or unsafe location.
- A fee of 5 cents per trip paid to the City of South Lake Tahoe to recover partial costs of enforcement.
- Lime shall include a survey question in its user app which asks whether the user is a resident or visitor, and will share the data gathered with the City.
- Indemnification and insurance requirements.

Helmets are no longer required in California but Lime said they will promote helmet use, safe riding practices, and encourage compliance with the Vehicle Code through rider alerts displayed on their App.

The five cents per ride charge is estimated to bring in an estimated $10,000 to $15,000 in revenue to offset enforcement costs for the City. Not all council agreed on the charge but made sure the contract said they can renegotiate in the future.

From data collected by Lime in 2018, they found one-third of the rides to end or start at transit facilities, leading to a guess that these were local residents.

City Councilman Devin Middlebrook suggested the five-cent charge is penalizing someone for getting out of their cars and unclogging roads, as well as charging locals who use the scooters. Councilwoman Tami Wallace said that a regular user of 15 trips a year would be charged at most 75 cents during that season.

Where are scooters allowed? Vehicle Code said scooters are allowed on bike paths but not on sidewalks. Per the new contract, scooters cannot be parked sidewalk in a manner that impedes or obstructs sidewalk cafes or parklets; transit zones, including bus stops, shelters, passenger waiting areas, and bus staging zones, except at existing bicycle racks; loading zones; and landscape planting beds or other landscape materials.

Incorrectly parked electric scooters shall be moved within four hours of notice
from the City to Lime. Lime shall provide the name, telephone number, and email
of a person or persons to be available to receive complaints 24 hours a day, 7 days a week.

Insurance coverage by Lime was questioned by Councilman Cody Bass, asking the rental company to increase their coverage to protect the City the same as they protect themselves. Lime will be required to maintain General Liability limits no less than one million dollars per occurrence for bodily injury, personal injury
and property damage, and with an aggregate of no more than two million dollars.

Lime has a business license, which includes a percentage of gross revenues ($1.62 per $1,000). They made $586,000 last year. Questions have always surrounded the fact that the scooters and riders use city streets with an extra fee.

Bass also wants to see Lime become more active in the community by participating in events and contributing in other ways.

Lime has not yet determined what method they will use for the "geofencing" of their scooters. Last year they sent at push message to users when the scooter entered the Heavenly Village. It told the user to slow down and use caution and be aware of pedestrians.

Lime's South Lake Tahoe Operations Manager Stefanie Sarradet said they would use the push message or an electronic map on the scooter that will outline the caution areas. She said they will also get the word out through one of these two methods to inform the user where the preferred parking areas in town are. They are currently testing which would work best.

Lime came into South Lake Tahoe with bikes in 2017, one of the first cities to have them. The company is now in over 100 cities on five continents. Lime's Director of Strategic Development Sam Dreiman was at the Council meeting Tuesday and had collaboratively worked with the City on this new contract.

Dreiman said they are working to move into San Francisco and Sacramento after those two cities finish their pilot programs. In 2017 the company was valued at $225 million after starting in January of that year after raising $12 million in venture funding, $1 billion in 2018 and today it is valued by some experts at $2 billion.