2018 2:00:00 PM

Monday, September 24, 2018 2:00 PM
Council Chambers, Legislative Bldg, 745 4th St., Sparks, NV

General Business: 9.4

Title: Consideration, discussion and possible authorization for the City Attorney's Office to take any and all legal action in regards to the Limebike Franchise Agreement up to and including remedies under the franchise agreement and seeking injunctive relief.

Petitioner/Presenter: City Manager Stephen Driscoll/Chief Assistant City Attorney Shirle T. Eiting/Transportation Manager Amber Sosa

Recommendation: It is recommended that City Council authorize the City Attorney's Office take appropriate legal action in regards to Limebike's deployment of electric scooters and the Limebike Franchise Agreement.

Financial Impact: none

Business Impact (Per NRS 237):
A Business Impact Statement is not required because this is not a rule.

Agenda Item Brief:

On September 10, 2018, Limebike appeared before City Council and made a presentation at which time Limebike failed to inform City Council about any specific deployment date for the electric scooters. Further, Limebike representatives later informed the City that Limebike would work with staff to resolve concerns about State licensing and registration issues as well as the Limebike geofencing capabilities. Limebike launched the electric scooter program with less than 12 hours notice to the government agencies and without resolving the concerns over State law compliance and informing the City of the geofencing capabilities.

Background:

As part of a pilot program in Washoe County, on April 23, 2018, the City of Sparks entered into a franchise agreement with Limebike. The franchise agreement allowed Limebike to deploy human powered bicycles within the City of Sparks. The franchise agreement also contemplated the eventual deployment of electric scooters within the City. The franchise agreement required that Limebike comply with all State and local laws. On September 10, 2018, Limebike appeared before City Council and made a presentation at which time Limebike failed to inform Council about any specific deployment date for the electric scooters. Further, Limebike representatives informed the City that Limebike would work with staff to resolve concerns about State licensing and registration issues as well as the Limebike geofencing capabilities. Limebike was informed by City staff on September 13, 2018, that Limebike must resolve geofencing concerns and State registration and licensing requirement issues for the electric scooters prior to deployment. Limebike issued a statement at 10:00 pm on September 17, 2018, that it intended to deploy the electric scooters on September 18, 2018. Limebike launched the electric scooter program with less than 12 hours notice to the government agencies and without providing the City with any information as to whether State licensing and registration issues were resolved or if adequate geofencing was available.

Analysis:

Due to Limebike's failure to address issues that were raised by City Council and City of Sparks staff prior to deploying the electric scooters, the City Attorney's Office is requesting authorization to take any and all appropriate legal action pursuant to the terms of the franchise agreement, which may require the filing of injunctive relief.

Alternatives:

The City Council may direct the City Attorney's Office to:

1. Take no action;

2. Issue a cease and desist letter to Limebike as to the electric scooters;

3. Prepare a franchise termination letter for the City Manager's signature; or

4. Seek injunctive relief against Limebike.

Recommended Motion:

I move to authorize the City Attorney's Office to take any and all appropriate legal action, up to and including filing for injunctive relief against Limebike.

Previous Item

Next Item

Return To Meeting