DEC 16 2019 County Grand Jury Georgette Gómez Council President, Ninth District December 11, 2019 DEC 1 1 2019 Judge*

Dockless scooters are spread out in great numbers on San Diego City sidewalks without approval from the City. Response: The City Council partially disagrees with the Grand Jury's finding. With the adoption of the Shared Mobility Device (SMD) Ordinance in May 2019, the City of San Diego has implemented a new regulatory framework which includes a permitting process and additional enforcement powers over motorized scooter and other SMD companies. Although riders have deposited scooters on San Diego City sidewalks at widespread levels in the past, with the new law in place, scooter rental companies have been required to intensify their efforts at addressing how scooters are staged, and their recent collection efforts have begun to alleviate the issue. Furthermore, to facilitate appropriate scooter staging efforts, the City has installed 265 scooter/SMD corrals on streets in the downtown area, plans to install around 150 more in the downtown and Uptown areas, and has installed 245 corrals in beach communities, specifically: La Jolla – 40 Ocean Beach – 76 Pacific Beach – 106 Mission Beach - 23

Riders of the dockless scooters are routinely violating the California vehicle code and San Diego City ordinances. Response: The City Council partially disagrees with the Grand Jury's finding. With the implementation of the SMD Ordinance, scooter and other SMD companies have been required to comply with City Municipal Code § 83.0301 et seq. Since that time, scooter-related violations have begun to diminish. Two pervasive types of violations include scooters operating on sidewalks and improper staging of scooters. Some scooter riders continue to illegally utilize sidewalks for travel, and scooters have not always been staged properly (e.g. in groups of four scooters, no more than one foot apart from each other). As mentioned in the response to Finding 01, the City has installed hundreds of scooter/SMD corrals, and there have been recent collections efforts by scooter companies to deal with improper scooter staging. The City is also implementing enforcement measures as discussed in the response to recommendation 19-54. City Council Response to San Diego County Grand Jury Report Titled "Electric Scooters: Innovation or Disruption?" Most scooter companies have attempted to restrict scooters to the speed limits included in the California Vehicle Code and the City's Municipal Code, with varying degrees of success. The Municipal Code includes additional restrictions on speeds, which scooter companies are required to enforce through the use of geofencing technology. City Municipal Code § 83.0308 requires a speed of eight miles per hour or less on public walkways within Balboa Park, Liberty Station NTC Park, and Spanish Landing Park and Trail, as well as certain areas in or near Mission Beach, Mission Bay, La Jolla Shores, and Petco Park. Additionally, scooter speeds are limited to three miles per hour at the Martin Luther King Promenade, the North and South Embarcadero pedestrian walk, and the Piazza della Famiglia. Nonetheless, after implementation of the SMD Ordinance, there were repeated public complaints of scooter speeds in excess of those allowed. In response to complaints related to speed and other violations, the City sent letters to six scooter rental companies on July 12, 2019 regarding compliance responsibilities and repercussions for violations. Additionally, scooter companies were advised that continued violations will result in revocation of their operating permits or non-renewal of their permits after they expire on January 31, 2020.

Reckless and improper use of scooters has resulted in one death and many injuries. Response: The City Council agrees with the Grand Jury's finding.

Scooter accidents are exposing the City of San Diego and its citizens to expensive damage awards as a result of litigation. Response: The City Council partially disagrees with the Grand Jury's finding. While the potential for claims and litigation related to scooter accidents exists, the extent of any damages that may be borne by the City is unknown. Although there are outstanding claims and several pending lawsuits against the City, the City has taken action to limit its exposure. Since July 2019, with the implementation of the permitting process, the City has required scooter and other SMD companies to maintain commercial general liability insurance with limits of $2 million per occurrence and a $4 million aggregate. Each operator must also maintain a $4 million umbrella policy. Additionally, to be permitted for operation by the City, each company must agree to indemnify the City from claims and damages related to operation of the scooter/SMD company's business in the City.

San Diego City government has lagged behind other comparable sized cities in regulating the scooter companies' use of the public right of way. City Council Response to San Diego County Grand Jury Report Titled "Electric Scooters: Innovation or Disruption?" Response: The City Council partially disagrees with the Grand Jury's finding. The City of San Diego has been dealing with scooter-related issues for some time. In May 2018, an emergency ban of scooters on boardwalks was considered by the City Council but was not adopted. Subsequently, the City began developing comprehensive regulations related to scooters and other SMDs. These regulations were adopted in May 2019 and compliance requirements subsequently went into effect. The City will continue to monitor and enforce existing regulations, as well as consider amendments to the SMD Ordinance based on lessons learned. As the Grand Jury notes, a number of cities implemented regulations for scooter companies prior to the City of San Diego. Alternatively, some cities have implemented bans on shared scooter operations.