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IV.5. Approval of the Shared Bike and Scooter Program License Agreement between the City of Hopkins and Neutron Holdings, Inc. dba Lime; Gallagher CITY OF HOPKINS City Council Report 2026-032 To: Honorable Mayor and Council Members Mike Mornson, City Manager From: Sam Gallagher, Associate Planner Date: March 16, 2026 Subject: Approval of Shared Bike and Scooter Program License Agreement – Lime _____________________________________________________________________ RECOMMENDED ACTION MOTION TO approve the Shared Bike and Scooter Program License Agreement between the City of Hopkins and Neutron Holdings, Inc. dba Lime . OVERVIEW Hopkins had successful shared scooter programs in 2022, 2023 and 2025 and has negotiated a license agreement for 2026. The shared bike and scooter program license agreement provides micromobility vehicle sharing to support the City’s goals around transportation mode share, equitable access, physical and environmental health, and sustainability. In the 2022 season, Bird scooters provided a Hopkins-only pilot program and in 2023, Spin scooters were provided in partnership with Hopkins, St Louis Park and Golden Valley. In 2024, Spin was acquired by Bird, which had filed for Chapter 11 bankruptcy. The uncertainty surrounding Spin’s financial stability prompted partnership between Hopkins, St Louis Park, and Golden Valley to issue a Request for Proposals, which received no proposals and thus had no scooters in the 2024 season. In November 2025, Hopkins executed a Memorandum of Understanding with the cities of Minneapolis, Saint Paul, Saint Louis Park, Hopkins, the Minneapolis Park Board and the University of Minnesota and issued a joint Request for Applications for shared scooter and bike service across jurisdictions. Individual cities retained the right to negotiate and execute contracts with operators individually. Spin and Lime were offered contracts for the 2025 season, with the option to be extended in future years at the discretion of the licensing cities. In the 2025 , season Spin executed a contract with Hopkins to provide shared bikes and scooters. Hopkins’ 2026 Lime contract agreement is very similar to the 2025 license agreement and has been reviewed by Public Works and Kennedy & Graven. In addition to safety and operational items, the key terms of the agreement are as follows: Duration • Initial term is April 1, 2026 to November 15, 2025. Starting on November 15, 2026, the licensee may reduce their fleet. Planning & Economic Development • Agreement can be renewed by the City for up to two additional years. Fees • Licensee pays the annual fee of $500 • Plus a one-time fee of $3,750 for delivery of 50 scooters Service Area • City has the ability to GEO fence with one week notice • Mainstreet is a slow zone – 10 mph maximum • City has the ability to rebalance and/or reduce distribution A new or renewed agreement with Spin is still being negotiated. If acceptable terms are reached, staff may also bring forward an agreement with Spin that would provide for two operators in the City of Hopkins in 2026. SUPPORTING INFORMATION • License Agreement for Shared Bike and Scooter Program 1 LICENSE AGREEMENT FOR SHARED BIKE AND SCOOTER PROGRAM THIS AGREEMENT (the “Agreement” or “License Agreement”), made as of the 16th day of March, 2026 by and between the City of Hopkins, a Minnesota home rule charter city (herein called “City”) and Neutron Holdings, Inc. dba Lime (herein called “Licensee”) (collectively, “Parties”). WHEREAS, the City adopted an ordinance at Hopkins Code of Ordinances, Section 38 Articles V and VI, to facilitate and regulate bicycles and motorized foot scooter micromobility sharing operations in the City’s right of way (“Ordinance”); and WHEREAS, Licensee owns a fleet of commercial, motorized foot scooters and/or bicycles intended or equipped for shared use by paying consumers from right of way locations in the City of Hopkins (“Licensee’s Fleet” or “Licensee’s Vehicles” or “Fleet Vehicles”); and WHEREAS, Licensee’s Vehicles are approved bicycles, electric-assisted bicycles, motorized foot scooters, and any other transportation device identified as a micromobility vehicles as defined by the Ordinances; and WHEREAS, Licensee’s operation requires use of City-managed right of way to facilitate the stationing and parking of Licensee’s Fleet within the City of Hopkins (“Program Facilities”), and it is considered a low power vehicle sharing operation or bicycle sharing operation under the Ordinances (“Licensee’s Operation”); and WHEREAS, Licensee has submitted a written proposal to the City for a license to implement Licensee’s Operation under the provisions of the Ordinances; WHEREAS, the City controls certain public rights of way and recreational trails located within its municipal boundaries (“City Right of Way”); and WHEREAS, the City Right of Way contemplated by this Agreement does not cover areas that are not controlled by the City, including but not limited to, all streets, roads, trails, or parkways owned by Three Rivers Park District, and/or private property owners; and WHEREAS, allowing bicycles, electric-assisted bicycles, motorized scooters, and any other transportation device identified as a micromobility vehicle to exist in the City Right of Way is likely to promote the public’s health, safety, and welfare by encouraging efficient and limited use of traditional motor vehicles, thereby reducing traffic volumes, noise, and air pollution; and WHEREAS, the City believes bicycles, electric-assisted bicycles, motorized scooters, and any other transportation device identified as a micromobility vehicle sharing has the potential to help achieve the City’s goals around transportation mode share, equitable access, physical and environmental health, and climate change; and 2 WHEREAS, the City must balance the benefits of bicycles, electric-assisted bicycles, motorized scooters, and any other transportation device identified as a micromobility vehicle sharing operations with its duty to keep streets and sidewalks safe, orderly, and free of unregulated obstructions and encumbrances; and WHEREAS, based on demand for shared motorized foot scooters and bicycles, the City has authorized establishment of a Shared Bike and Scooter Program (“Program”); and WHEREAS, this Agreement is intended to outline the terms and conditions under which Licensee will be allowed to utilize the City Right of Way during the Program. NOW, THEREFORE, for and in consideration of the following terms and conditions, the parties hereto agree as follows: ARTICLE I. USE OF CITY RIGHT OF WAY 1. Authorization. In accordance with Hopkins Code of Ordinances, § 38.241, the City hereby grants a revocable, non-exclusive license to Licensee to implement Licensee’s Operation with respect to bicycles, electric-assisted bicycles, motorized scooters, and any other transportation device identified as a micromobility vehicle, each within the City Right of Way during the term provided in Article II, subject to all of conditions set forth herein and under applicable federal, state, and local law, including but not limited to Hopkins Code Of Ordinances Article V §§38.240-38.247. This authorization is not a lease or an easement and shall not be construed to transfer any real property interest in the public Right of Way or other City property. 2. Additional Uses. Licensee expressly understands and agrees that this license does not grant Licensee or its contactors the ability to exclude, or prohibit others from using, the City Right of Way. Licensee further understands and agrees that the City holds its interest in the City Right of Way in trust for the public, and that the City’s uses, needs, and obligations shall at all times supersede Licensee’s privileges under this Agreement. ARTICLE II. TERM The term of this license agreement shall be through March 1, 2027, unless terminated earlier as provided herein. Following the initial term, the City shall have the option to renew this Agreement for two (2) additional 12-month terms, with each option to be exercised at the sole discretion of the City. The license set forth in this agreement may be terminated at any time, for any reason, in the sole discretion of the City upon twenty-four (24) hours written notice by the City to Licensee. Licensee may terminate this agreement at any time, for any reason, upon sixty (60) days written notice by Licensee to the City. In the event of early termination, Licensee will be granted a reasonable period of time in which to collect and remove Licensee’s Vehicles, and an y other facilities owned by Licensee, and to restore the City Right of Way in accordance with Article V, Section 4. The provisions of Article V, Section 9 herein shall survive termination of this license. 3 ARTICLE III. TERMS AND CONDITIONS FOR USE OF CITY RIGHT OF WAY Licensee agrees that it will implement Licensee’s Operation in accordance with the following terms and conditions: 1. Vehicle Fleet Size a. Notwithstanding the terms of this license, the City shall retain the authority to unilaterally limit or reduce the number of Fleet Vehicles under this Agreement. b. A minimum of 50 bicycle and scooter devices, with no more than 75 maximum, must be made available for public use no later than thirty (30) days after initial deployment, and deployment of bicycle and scooter devices must begin within seven (7) days of April 1, 2026, unless otherwise notified by the City. Licensee must have full allotment of bicycle and scooter devices in the market no later than thirty (30) days after initial deployment, and available to deploy to meet demand. Starting on November 15th, 2026, unless otherwise notified by the City, Licensee may reduce their fleet below 50 bicycle and scooter devices without penalty in preparation for the end of the season. c. After the first month, vendors may expand the fleet size to meet demand. Vendors will keep in contact with designated Contract Administrator for the City which will monitor vendor’s performance in meeting the requirements of this Agreement as well as demonstrated need for more devices. d. Deployment of scooters must begin within seven (7) days of April 1, 2026, unless otherwise notified by the City. Licensee must provide a minimum of 50 bicycles and scooters available for public use no later than 30 days after initial deployment. e. If any Licensee declines to use their full initial deployment of electric assisted bicycles or motorized foot scooters, the City reserves the right to redistribute the remaining vehicles to another Licensee. f. Availability to the public will be defined by the number of scooters available to rent in the public right of way including a +/- 5% variance for unaccounted vehicles in use. g. If at any point during the license period the Licensee's fleet drops below their approved minimum initial deployment level as set forth in Section 1(b) of this Article III, including a +/- 2 0% variance for unaccounted vehicles in use, a penalty will be assessed as outlined in the Parking and Mobility Services Fee and Rate Schedule. Starting on November 15th, 2026, unless otherwise notified by the City, Licensee may reduce their fleet below the initial deployment level of motorized foot scooters without penalty in preparation for the end of the season. h. The City will hold compliance meetings as defined by Section 3(a) with Licensee to review compliance and utilization data. o The City will review fleet size and utilization monthly. i. Licensee shall notify the City when reducing the number of fleet vehicles available for public use due to weather or emergency situations. 2. Program Facilities 4 a. Program Facilities are defined as parking locations that are docking or lock- to compliant for fleet vehicles and may include charging facilities, lightweight non- anchored sidewalk facilities, meter hitches, and permanent sidewalk rack facilities. b. Licensee will obtain necessary leases, licenses, permits, or other authorizations for the real property upon which Licensee will install, equip, own, maintain, and operate the Facilities, including but not limited to: o Application shall be made and shall contain such information as may be required by the City's Director of Public Works. The applicant shall agree in making application for a permit to remove the Program Facility upon request at no cost to the City. The applicant shall attach to the application a fully detailed sketch or plan showing the dimensions of the Program Facility, the adjoining street and sidewalk, all posts and fixtures in the adjoining sidewalk, and all structures, fixtures, or buildings on abutting land. The Planning and Economic Development Department and Department of Public Works shall review the application and plan, and issue approval or denial. o Receipt of legal authority in the form of a permit to install Program Facilities in public right of way or private property. o All City-permitted Program Facilities must be clearly identified and show if they are branded or unbranded facilities. All Program Facilities must follow the City’s design specifications. o Licensee must provide advance notice of installation and removal of Program Facilities. Additionally, Licensee must provide monthly updates on the location of their Program Facilities on the 1st day of every month. o Landscaping and site restoration requirements have been completed in accordance with Program Facility plans. o The City has received or shall simultaneously receive a lien waiver from each contractor, subcontractor, or materials supplier for all work finished and for all materials furnished by it for the Program and Facilities, or such liens have been bonded to the satisfaction of the City. o Seasonal removal and reinstallation of Facilities, other than Store in Place stations as pre-approved by the City. 3. Compliance, Programming, and Pricing a. The City will hold an initial compliance meeting a month and a half after initial deployment. Thereafter during peak season (May- October), Licensee shall provide the City with reports provided via e-mail. The City will evaluate each Licensee’s compliance with City policies and Program terms and conditions, including, but not limited to the following: o Determination of Licensee’s average rides per scooter per day o Compliance with commitments made in partnering Memorandum of Understanding City Licensee’s Proposal such as, but not limited to: o Low-income program participation and signup rates o Completion of engagement, communication, and events o User compliance programs 5 o Participation in other City pilots o Sustainability metrics b. Notwithstanding Sections 1(a), (b), (c), and (d) herein, the City may limit or reduce the maximum number of vehicles in Licensee’s Fleet allowed under the Ordinance and this license. If such reduction is related to noncompliance issues governed by this license, then an equivalent reduction may not be applied to all Program licensees. c. The City will notify Licensee of any increases or decreases applicable to Licensee’s Fleet under this section by sending written or emailed notice. Such increases and/or decreases shall not require an amendment to this license agreement. d. Licensee must provide a pricing program for lower income and human service recipients. Eligibility must use the Metro Transit Assistance Program (TAP) for verification, and Licensee must show proof of compliance as requested. e. Licensee must participate in a lower income program eligibility pilot program as determined by the partnering Memorandum of Understanding City requirements. f. Licensee must provide a user compliance penalty and fine structure annually to the City prior to season launch. g. Licensee must provide 45 days advanced notice to the City of any new systemwide base pricing changes and 30 days for other pricing changes or tests. h. Licensee must give advance notice of any public facing event, community event or other engagement efforts so that the City may publicize and participate in such events. Licensee must obtain any permissions or permits necessary for any in- person engagement events. The Licensee agrees to assist and cooperate with such publicity and participation. The Licensee further agrees that the City shall also have the right to issue press releases concerning the program. 4. Fleet Equipment, Maintenance, and Safety Requirements a. Licensee must obtain and receive written approval from the City at least two weeks prior to the introduction of any new model of a licensed vehicle to be included in Licensee’s Fleet. Licensee must also obtain and receive written approval for any modifications to any vehicle that substantially alters the vehicle’s operating characteristics. b. All vehicle models in Licensee’s Fleet must receive approval through a demonstration test with the City prior to public release. c. Licensee’s Fleet shall be equipped with equipment meeting all specifications, including but not limited to brakes, reflectors, and lighting as set forth in Minnesota State Statutes 169.222, 169.223, 169.224 and 169.225. d. Licensee’s Fleet must be certified as safe to operate under any applicable standard by Underwriters Laboratories, or an equivalent safety rating. e. All vehicles in Licensee’s Fleet shall be equipped with both: a) a locking mechanism to prevent theft and ensure compliance with parking requirements as stated herein; and b) with the exception of non-electric assisted bikes, an operable, on-board mechanism to provide real-time location when a vehicle is parked or in a trip. 6 f. Licensee must notify the City of any manufacturer or equipment recalls within 72 hours. If the recall issue is a safety risk, equipment must be removed from the City Right of Way within 24 hours. g. Licensee will remain responsible for the maintenance of each vehicle in Licensee’s Fleet, including ensuring any installed or refurbished IoT units, technology mechanisms, or locking systems are updated and functioning properly such as identifying the correct vehicle type. h. Each vehicle in the Licensee’s fleet shall have a unique identifier clearly displayed on each side of the vehicle. The identifier shall be in the form of numbers and/or letters that are at least 2.5” tall in order to be read from a distance. The identifier will be used for the purposes of conveying or documenting parking or safety complaints, and for auditing the quantity and type of vehicles in Licensee’s Fleet. Licensee’s logo or business name should be adjacent to the unique identifier, and be at least the same 2.5” tall size as the identifier on each side of the vehicle. i. Unless the licensee receives prior approval for modifications from the City, each vehicle in Licensee’s Fleet must visibly display the following instructions, or a substantively similar version thereof, located on every vehicle: i.“No Sidewalk Riding” ii.“Wear A Helmet” iii.“Yield to Pedestrians” iv.“Don’t Ride with a Passenger” / “No Group Rides” v.The Licensee’s customer service phone number j. Licensee shall proactively remove any and all inoperable or unsafe vehicles from Licensee’s Fleet within 12 hours of the initial onset of such condition. k. Licensee shall complete all vehicle charging in a warehouse/building/facility approved by a licensed electrician. Proof of inspection must be provided to the City upon request. Vehicles must not be charged or serviced in the public Right of Way. A direct exchange of battery packs or minor adjustments does not constitute service. This does not apply to vehicles charging at City approved Program Facilities in the Public Right of Way. l. Licensee agrees that it will have a customer service phone number staffed from at least 7am-10pm Hopkins Time on days Licensee’s Fleet is in service on City Right of Way. Licensee’s customer service line shall accept voicemail at all other times to report parking or operational complaints, and safety or maintenance concerns. Licensee will also maintain a multilingual website and mobile application which shall be available to the general public 24 hours per day, 7 days per week, including certain languages as specified by the City. m. Licensee warrants that it complies with applicable provisions of Minnesota and federal disabilities laws and regulations, including, but not limited to the Americans with Disabilities Act of 1990, 42 U.S.C. 12101, et seq., as amended. Licensee also warrants that the products or services it will provide under this license comply with applicable provisions of the accessibility requirements of Section 508 of the United States Workforce Rehabilitation Act of 1973, as amended (29 U.S.C. 794d), and its implementing regulations set forth at Title 36, Code of Federal Regulations, Part 1194. 7 n. Licensee agrees that it will proactively provide all customers of Licensee’s Fleet with a summary of instructions and laws regarding proper riding, parking, and operations of fleet vehicles including those set forth in City of Hopkins Ordinance Section 38 Articles V and VI, Minnesota State Statutes §§ 169.222, 169.223, 169.224 and 169.225, and any other law or regulatory provision applicable to the operation and/or parking of fleet vehicles. o. Licensee agrees that it will either require or recommend the use of helmets to all customers of Licensee’s Fleet. p. Licensee will keep and maintain a comprehensive and complete record of all official and unofficial Fleet Vehicle collision reports received by Licensee or its contractor(s) during the term of this license. The record shall include those items as enumerated in the operations plan and a copy of the record shall be provided to the City within three business days (3) of when the Licensee is notified of an incident. q. If one of the Licensee’s vehicles is involved in an incident related to law enforcement activities and is impounded by law enforcement, the Licensee will be notified by the appropriate authorities when the vehicle is available for retrieval. r. If the City determines, in its sole discretion, that any of Licensee’s consumers or customers have failed to comply with applicable laws governing the safe operation and/or parking of Licensee’s Vehicles, including but not limited to, breach of any current or future laws governing driver’s license requirements, the use of helmets, operation on sidewalks, and/or parking requirements, or have otherwise demonstrated a threat to public health, safety, or welfare, then the City may require Licensee to implement additional measures to promote compliance, or this license may be subject to revocation. s. Throughout the license period, the City will be monitoring bodies of water for abandoned vehicles. If notified of an abandoned vehicle in any body of water, Licensee shall retrieve it within 72 hours. If inclement weather conditions hinder retrieval Licensee may request an extension from the City. After 72 hours, if the City retrieves any abandoned vehicles, the Licensee will be invoiced for any expenses incurred. 5.Fleet Vehicle Distribution Licensee shall comply with the following daily vehicle distribution requirements: a. Licensee shall distribute its Fleet Vehicles throughout the City in a manner that accounts for citizen demand, the City’s requests, and is consistent with this Agreement and all laws, regulations, and ordinances. Licensee shall not deploy Fleet Vehicles at inappropriate densities and shall monitor its Licensee Fleet density at least once every day and relocate vehicles as needed to comply with these density requirements. The City, in its sole discretion, may require Licensee to rebalance the distribution of Fleet Vehicles in specified areas of the City if deemed too dense or too sparse. b. Distribution requirements will be evaluated by the City monthly and may be increased or decreased by the City. c. Notwithstanding any other provision to the contrary in this Article III, Section 5, the City may require Licensee to rebalance the distribution of Licensee’s Fleet in specified areas of the City if deemed by the City to be too dense or too 8 sparse, or if doing so will help promote equitable access to and from traditionally underserved areas within the City. Licensee will comply with all such requests within 24 hours of receiving written notice from the City. e. During the course of this license, the City will have discussions with Licensee around the hours of operation to determine if changes would be beneficial. The City reserves the right to unilaterally change the hours of operation allowed under the Ordinance and this license. In the event the hours of operation change, then an equivalent change shall be applied to all Program Licensees. 6. Fleet Vehicle Parking and Riding Licensee and Licensee’s customers shall comply with the following parking and riding rules and restrictions in the City Right of Way: a. No person may operate a motorized foot scooter upon a sidewalk, except when necessary to enter or leave adjacent property. b. No person may operate a bicycle upon a sidewalk within a business district or upon any sidewalk where prohibited by appropriate signage, except when necessary to enter or leave adjacent property. c. No person may operate a Fleet Vehicle that is carrying any person other than the operator. d. Fleet Vehicles must be parked upright and stabilized with a kickstand when not in use. e. Fleet Vehicles must not be parked and/or ridden in any location or manner that will impede normal and reasonable pedestrian traffic and/or access to: i.Pedestrian ramps ii.Building/property entrances iii.Driveways iv.Loading zones v.Disability parking and transfer zones vi.Safety and disabled access features, including curb ramps, wheelchair ramps, ramp landings, handrails, areas of refuge, and detectable warning surfaces vii.Transit stops and facilities, including stations, shelters, passenger waiting areas, and bus layover and staging zones viii.Crosswalks ix.Parklets x.Street/sidewalk cafes xi.Traffic signal or street light poles xii.Street furnishings (benches, trees or other Right of Way plantings, etc.) xiii.Underground utility, sewer, or water facilities xiv.Sidewalk clear zones1 xv.Temporary construction signs or barriers 1 The sidewalk clear zone is the accessible, primary pedestrian thoroughfare that runs parallel to the street. The clear zone ensures that pedestrians have a safe, obstruction-free thoroughfare. 9 f. Licensee will be solely responsible for informing its customers as to parking and riding a Fleet Vehicles properly and in compliance with state and local laws. g. Licensee will undertake proactive, reasonable measures to prevent and deter improper parking or dumping of Fleet Vehicles on private property or other public property not owned or controlled by the City. h. Licensee must obtain and receive written approval from the City for any permanent or reoccurring geofence requests at least one week prior to the implementation of the desired geofence. i. Licensee will implement and maintain a “Slow Zone” in the City on Historic Mainstreet from 11th Avenue to 5th Avenue, within which users of Fleet Vehicles may not exceed 10 miles per hour. Licensee will monitor fleet vehicles to remove fleet that is parked or left abandoned in a manner that will impede normal and reasonable snow clearing operations. 7. Fleet Scooter Parking and Riding Complaints and Enforcement a. Prior to launch, Licensee must provide the City with a direct contact information for a local set of contacts for Licensee’s Operations, as well as emergency, after-hours contacts. These contacts shall be reviewed and confirmed during each compliance meeting. b. During the Program Term, Fleet Vehicle parking and riding complaints received by the City shall be referred to the Licensee. The Licensee or the Licensee’s authorized representative must address/respond by re-parking or relocating its noncompliant Fleet Vehicles within two (24) hours.2 Licensee must respond to any in-person request relating to a parking complaint made by any City employee. c. Licensee alone will be fully responsible for re-parking or relocating Fleet Vehicles where a complaint has been received by the City or Licensee, or where Fleet Vehicles are otherwise found to be in violation of parking rules stated herein. d. The City will not be responsible under this license for monitoring Fleet Vehicle parking or dumping on private property, or other public property not owned or controlled by the City, but the City may impound illegally parked Fleet Vehicles in accordance with City ordinances3 2F. e. Licensee will be solely responsible to third parties for addressing unauthorized Fleet Vehicles dumped or left unattended on private property, or on other public property not owned or controlled by the City. f. Licensee will act swiftly and exercise due diligence in responding to complaints of unauthorized Fleet Vehicles leaning against, blocking, dumped, or left unattended on private property, or on other public property not owned or controlled by the City by responding within 24 hours of report to Licensee. g. The City reserves the right to mandate and apply geofencing specifications to Licensee’s Fleet to reduce or otherwise limit speed or prohibit riding in specified areas, prohibit parking/locking vehicles in specified areas, and/or to direct 2 This provision will be exercised only in instances where, in the City’s discretion, the public’s safety and welfare will not be unduly compromised due to additional passage of time. 3 When doing so will not unduly burden the complaining third party, the City will refer such complaints to Licensee, and Licensee or Licensee’s authorized representative will be provided a limited opportunity to remedy the complaint without furth er City involvement. 10 customers to or away from specified designated parking areas. Licensee shall comply with any and all geofencing requirements within 5 business days of a written or emailed request made by the City. All spatial information will be shared via ESRI map service. SBSP Operations Plan and updates will be shared via email and City shared drive. The cost of installing and maintaining geofencing equipment or facilities shall be borne by Licensee. h. If the City incurs any costs or damages arising out of actions attributable to Licensee or Licensee’s customers that are not otherwise recoverable pursuant to the terms of this license, Licensee shall reimburse the City for any such costs caused by or directly attributable to Licensee’s Operation within 30 days of receiving written or emailed notice. i. In its sole discretion the City may assess up to a $1 0 per occurrence per vehicle surcharge in order to offset investigative and administrative costs incurred by the City in response to riding or parking violations involving Licensee’s fleet. Surcharge amounts shall be included in the regular invoice provided to Licensee. A surcharge may only be assessed under this section if the complaint alleges a violation of the standards prescribed in this license. Each assessed surcharge must be supported by an investigative packet which shall be made available to Licensee upon request. The investigative packet shall include the following information: a. Picture with date/time stamp b. Clear description of violation as documented by the picture c. Vehicle ID d. Latitude/longitude coordinates of location where violation occurred e. Name of City, Metro Transit, Three Rivers Park District employee documenting violation will be made available upon request. j. Licensee must provide City staff conducting enforcement with administration accounts, associated with their City email addresses, solely to address parking violations. This account shall be free from financial obligations and shall not require input of any financial accounts. k. The City may impound any motorized foot scooter parked in the same location, not including those parked at Program Facilities, without movement for more than 72 hours. l. The City may impound any bicycle parked in the same location, not including those parked at Program Facilities, without movement for more than 168 hours, if not removed within 24 hours of notification by the City. m. A per occurrence impoundment fee will be applied to all vehicles owned or controlled by Licensee as follows4 3F: i.Initial impoundment fee of $56 per vehicle. ii.If not paid for and retrieved by Licensee within 24 hours of impoundment, an $18 storage fee per vehicle per day shall be added to the initial impoundment fee. n. Licensee expressly understands that the City may impound any and all Fleet Vehicles found by the City to be in violation of applicable laws and/or the terms of 4 This Section M is intended to include all forms of transportation vehicles owned or controlled by Licensee, including but not limited to low power vehicles as defined by the Ordinance, bicycles, electric-assisted bicycles, motorized scooters, and any other transportation device identified as a micromobility vehicle 11 this license. Seizure and impoundment of Fleet Vehicles may be exercised by the City with or without prior notice to Licensee. o. Any failure by the City to act on the provisions of this section shall not relieve Licensee of any other duty or penalty at equity or law. 8. Data Privacy and Protection a. Licensee’s Operation shall employ an electronic payment system that is compliant with the Payment Card Industry Data Security Standards (PCI DSS). b. Licensee has submitted a privacy policy to the City with and as part of Licensee’s Proposal (“Licensee’s Privacy Policy”). Licensee’s Privacy Policy shall continue to expressly limit the collection, storage, or usage of all personally identifiable information. c. Licensee shall not institute retroactive changes to customer conditions, terms of use or Privacy Policy without first providing written notice to Licensee’s Fleet customers and the City. The City reserves the right to terminate this license prior to the end of the Term if the City determines that any such retroactive changes implemented by Licensee are unreasonable or unfair to Fleet Scooter customers. d. Licensee’s Privacy Policy must operate to safeguard Licensee’s customers’ personal, financial, and travel information and usage. Licensee agrees to make all policies, procedures, and practices regarding Licensee’s data security practices available to the City upon request. e. Licensee must provide its customers with an opportunity to expressly assent to Licensee’s Privacy Policy, terms of service, and/or user agreements when renting or transacting for use of any or all of Licensee’s Fleet Vehicles. Licensee agrees to provide its customers with the ability or option to decline the sharing of any data that does not facilitate provision of the services. Customer rights with regard to these requirements and options shall be clearly stated and easily accessed by the customer during each transaction. Licensee will further indicate to its customers that it will share geolocation and route data with the City (or government) as required by law. f. Licensee agrees that it will not collect or sort personal or individual data related to race, religion, national origin, or sexual orientation, except for survey data collected on an opt-in basis, for the limited use of certain public purposes expressly set forth by the City. Licensee may not deny service to any customer on the basis of refusal to provide any such survey information. g. Licensee agrees that it will not attempt to access or collect any location - based data via customers’ mobile phone or any other electronic mobile device, without first obtaining each affected customer’s explicit permission. h. Licensee must notify the City in writing of any prospective agreement that will result, either directly or indirectly, in disclosing, sharing or transmitting data obtained by or from Licensee’s Operation to either a foreign government. If Licensee enters into such an agreement, the City expressly reserves the right to deem Licensee, or any of Licensee’s successors in interest, nonresponsive to future City of Hopkins requests for proposal or inquiry for shared mobility services. i. Licensee agrees that it will encrypt all data in transit and at rest. 12 9. Data Collection/Sharing a. The City and Licensee each understand and agree that the City is not requesting or requiring the collection or creation of any new data with this license, unless expressly provided and stated herein. Any new data collected, created or stored by Licensee shall be considered Licensee’s private data, and not government data, unless a provision of this license agreement expressly requires its collection or creation, and/or the City requests and receives such data from Licensee. b. The City and Licensee each understand and agree that the City is not requesting or requiring sharing of user data deemed to be Personally Identifiable Information as defined by the US Department of Commerce, with the exception of data as specified herein. c. Licensee agrees to disseminate two customer surveys and two lower income program participant surveys annually on behalf of the City of Minneapolis and surrounding area to include the City of Hopkins. The surveys will be used to aid the City in evaluating whether and how Licensee’s Operation supports City goals for transportation. The surveys shall not include, and Licensee shall not collect, any personally identifiable data related to or in furtherance this provision. d. Licensee must provide an API to any third party who jointly requests it with the City, within 30 days, and who operates or serves users within the region, which allows for fleet vehicle location, as well as user access and payment, to facilitate the City’s Mobility as a Service program. Licensee’s obligation to provide a third party with an API is subject to the third party agreeing to the Licensee’s data use agreement. e. Licensee shall keep a record of maintenance activities, including but not limited to Fleet Vehicle identification number and maintenance performed. Licensee will provide a complete copy of the same for any specific vehicle to the City upon request, subject to Licensee’s reasonable determination of potential pending litigation. f. All requested data will be shared via the documented MDS API. Except as otherwise provided in this license, Licensee will not be asked to share any new data sharing specifications, nor personally identifiable information with the City. At a minimum, Licensee will supply the City with the following upon request: i.g. Licensee shall deliver to the City, upon request, all specified real- time and archival information for each vehicle in its Fleet.5 Information covered by this provision includes real-time location, event, and status information gathered by on-board GPS tools, data for each trip record, historic/archival data, and key system information. Daily drop-off locations or aggregation sites/zones ii.Real-time location, event, and status information iii.Trip-level details including start/end location/time, duration, and distance traveled iv.Trip-level breadcrumb trails listing all GPS readings for each vehicle v.Trip duration and trip-level breadcrumb trails are not required to be reported for non-electric assisted bicycles 5 The purpose of this requirement is to ensure the City can successfully manage the Program and execute related planning effort s in support of strategic goals and future programs. 13 This provision applies to only such data collected by Licensee pursuant to Licensee’s own initiative. The City is not requiring Licensee to generate or collect any of the above-described data as a condition of this license. To the extent that Licensee does generate and/or collect such data, the Parties each understand and agree that the City may seek, and Licensee must then provide, a copy of any such City-requested data. h. Licensee shall create a dashboard and/or reports illustrating the following: number of Fleet Vehicles distributed; total number of trips; trips per Fleet Vehicle per day; number of new customers; total number of customers; total number of low- income program customers; average miles per trip; and average minutes per trip. The foregoing summaries shall be delivered to City , which will occur, at minimum, on a bi-monthly basis. All requested data shall be provided by the vendor via a report prior to each deliver date . Report data shall be based on calendar months (i.e., July 1st – 31st) and be submitted by the 15th day of the succeeding month. i. Licensee shall deliver to the City, upon request, a reporting of total vehicle miles traveled resulting from all of Licensee’s employee or contractor operations in support of participation in the Program. j. Licensee shall provide City a comprehensive inventory of Licensee’s Fleet, including model, type, and unique identifier. Such inventory shall be proactively updated by the Licensee within five (5) business days, if or when vehicles are added or removed from the Licensee’s Fleet. Licensee shall provide this inventory to the City upon request from the City within five (5) business days. k. Licensee is directly responsible for providing API authentication mechanisms and documentation, and all other required information and data covered by this license to the City. The City will be permitted to publicly utilize Licensee’s API and display real-time data for all vehicles not currently in the process of a ride/trip. l. If any data requested by City and covered by this license is falsified, or the City suspects dishonest reporting, the City reserves the right to either sanction or perform an audit of vehicle availability and/or trip data at any time during the Program term. If a third-party audit finds that falsified or dishonest reporting exists, the City reserves the right to revoke the license and debar Licensee from future agreements with the City. m. Unless otherwise required by law, Licensee agrees that it will not retain any raw trip data related to this license for a period longer than set forth in Licensee’s adopted, City-approved records retention policy. n. In addition to responding to valid requests for public data under the Minnesota Government Data Practices Act, Licensee understands that the City may share, without notice to Licensee, any public data related to this license with separate government entities for purposes of collaborating or furthering common public purpose objectives.6 The City will not unlawfully share or disclose any data that is classified as nonpublic due to the existence of trade secrets or other qualifying reasons under Minnesota law. Licensee agrees that it will, to the extent 6 More information about the Minnesota Government Data Practices Act and data classifications can be found at https://mn.gov/admin/data-practices/data/” 14 practicably feasible, notify the City of any data in the City’s possession that Licensee believes to be a trade secret or protected proprietary information implicated by this provision. This duty to notify shall not operate to relieve the City of its responsibilities stated herein, and this Section 7.l. shall not operate so as to modify, override, or negate the legal responsibilities, duties or definitions set forth by the Minnesota Government Data Practices Act or other applicable law. o. The City shall abide by its “Mobility Data Methodology” as outlined in Exhibit C and shall inform Licensee of substantive changes to methodology in advance of implementation of changes. ARTICLE IV. PAYMENT TERMS AND CONDITIONS Licensee shall receive no compensation from the City under this license agreement. Licensee shall pay the City based on the following fees: a. Licensee shall pay the City an annual fee of $500.00 for this License Agreement. b. Licensee shall pay the City a one-time fee of $3,750 for the initial delivery and implementation of 50 scooters and bicycles in the City; Licensee shall not be required to pay fees for any additional delivery and implementation of Fleet Vehicles. c. Licensee shall pay all other costs and fees, including impound fees, as described in this Agreement. d. Licensee shall pay the City for all costs or fees described in this Agreement within 30 days of receipt of an invoice. ARTICLE V. REPRESENTATIONS AND GENERAL CONDITIONS 1. Ownership and Condition of Right of Way. This license shall not be construed so as to transfer ownership or control of the City’s Right of Way to Licensee, or to any other party. The City makes no representations or warranties concerning the condition of the City Right of Way, or its suitability for use by Licensee, its contractors or customers. 2. Delegation of Police Power. This license does not delegate or otherwise transfer the City’s police power to regulate low power vehicles, Licensee’s Operation, and/or to enforce City ordinances or other laws, to Licensee, or to any other party. Licensee understands and agrees that ultimate decisions related to City enforcement against third parties and/or public compliance issues, shall remain within the City’s sole discretion. 3. Compliance with Laws. Licensee agrees to comply with all applicable Federal, State, and local laws as they may be adopted or amended from time to time. Licensee further acknowledges that its rights hereunder are subject to the lawful exercise of the police power of the City to adopt, amend, and enforce ordinances, resolutions, and policies designed to promote the safety and welfare of the public. 4. Removal upon Order. Licensee shall remove at once any or all Fleet Vehicles or Program Facilities or other property owned or controlled by Licensee upon being ordered to do so by the City. Licensee shall be responsible for restoring the City Right of Way to its original cond ition, and the City shall not be liable for any damages resulting to Licensee by reason of such an order. 15 Such removal and restoration of the City Right of Way will be at the sole expense of Licensee. Upon failure of Licensee to remove Fleet Vehicles or Program Facilities or other property as ordered within a reasonable time period, the City may perform the removal or work at Licensee’s cost and/or initiate a claim against Licensee. 5. Interest of Members of City. Licensee agrees that it has complied with Minnesota Statutes, Section 38 Articles V and VI the City’s Code of Ordinances. Therefore, unless authorized in Section 38 of the City’s Code of Ordinances, no member of the governing body, officer, employee or agent of the City shall have any interest, financial or otherwise, direct or indirect, in Licensee’s operation. 6. Equal Opportunity Statement. Licensee agrees to comply with the provisions of all applicable federal, state and City of Hopkins statutes, ordinances and regulations pertaining to civil rights and nondiscrimination including, without limitation, Title VI of the Civil Rights Act of 1964, Minnesota Statutes, Section 181.59. 7. Non-Discrimination. Licensee will not discriminate against any employee or applicant for employment because of race, color, creed, religion, ancestry, national origin, sex, sexual orientation, gender identity, disability, age, marital status, familial status, or status with regard to a public assistance program. Such prohibition against discrimination shall include, but not be limited to, the following: employment, upgrading, demotion or transfer, recruitment or recruitment advertising, layoff or termination, rates of pay or other forms of compensation and selection for training, including apprenticeship. If required by applicable law, Licensee shall agree to post in conspicuous places, available to employees and applicants for employment, notices setting forth this nondiscrimination clause. In addition, the Contractor shall, in all solicitations or advertisements for employees placed by or on behalf of the Contractor, state that all qualified applicants will receive consideration for employment without regard to race, creed, religion, ancestry, sex, national origin, affectional preference, disability, age, marital status or status with regard to public assistance or status as disabled veteran or veteran of the Vietnam eras, 1991 Gulf and current Afghanistan and Iraq wars, and comply in all other aspects with the requirements of the Hopkins Code of Ordinances. 8. Insurance. Licensee shall secure and maintain insurance issued by insurance companies acceptable to the City, admitted in Minnesota, and meeting an A.M. Best's minimum rating of A - and IX. The insurance specified may be in a policy or policies of insurance, primary, or excess. Such insurance shall be in force on the date of execution of the license agreement and shall remain continuously in force for the duration of the Contract. The Licensee and any sub -contractors carrying out work related to this license shall secure and maintain the following insurance: a. Workers Compensation insurance that meets the statutory obligations with Coverage B- Employers Liability limits of at least $100,000 each accident, $500,000 disease - policy limit and $100,000 disease each employee. b. Commercial General Liability insurance with limits of at least $2,000,000 general aggregate, $2,000,000 products - completed operations $2,000,000 16 personal and advertising injury, and $100,000 each occurrence fire damage. The policy shall be on an "occurrence" basis, shall include contractual liability coverage and the City shall be named an additional insured. c. Commercial Automobile Liability insurance covering all owned, non- owned and hired automobiles with full automobile coverage including damages, contents and vandalism and limits of at least $1,000,000 per accident. d. Computer Security and Privacy Liability for the duration of this license providing coverage for, but not limited to, Technology and Internet Errors & Omissions, Security and Privacy Liability, and Media Liability. Insurance will provide coverage against claims that arise from the disclosure of private information from files including but not limited to: 1) Intentional, fraudulent or criminal acts of the Contractor, its agents or employees. 2) Breach of the City’s private data, whether electronic or otherwise. The insurance policy should provide minimum coverage in the amount of $1,000,000 per occurrence and $2,000,000 annual aggregate. If written on a Claims-Made basis, the policy must remain in continuous effect for at least 3 years after the service is provided or include a 3- year extended reporting period. Acceptance of the insurance by the City shall not relieve, limit, or decrease the liability of the Licensee. Any policy deductibles or retention shall be the responsibility of the Licensee. Licensee waives its right to subrogation for the above listed coverages. Licensee shall control any special or unusual hazards and be responsible for any damages that result from those hazards. The City does not represent that the insurance requirements are sufficient to protect the Contractor's interest or provide adequate coverage. Evidence of coverage is to be provided on a current ACORD Form. A thirty (30) day written notice is required if the policy is canceled, not renewed or materially changed. Licensee shall require any of its subcontractors, if sub-contracting is allowable under this license, to comply with these provisions, or the Licensee will assume full liability of the subcontractors. 9. Hold Harmless. Licensee agrees to defend, indemnify and hold harmless the City, its officers, employees, and agents (the “indemnified Parties”) from any liabilities, including but not limited to injuries or death, claims, damages, costs, judgments, and expenses, including attorney's fees (collectively, “Liabilities”), resulting directly or indirectly from any intentional or negligent act or omission of Licensee, its employees, its agents, its subcontractors, or employees of subcontractors, in the performance of the operation, work, or services provided by or through this license agreement, or by reason of the failure of the Licensee to fully perform, in any respect, any of its obligations under this license agreement. Notwithstanding the foregoing, any Liabilities to the extent caused by any indemnified party’s gross negligence or willful misconduct shall be excluded from Licensee’s defense, indemnification and hold harmless obligations contained in this paragraph. Notwithstanding anything contained herein to the contrary, Licensee shall have no obligation to indemnify, defend or hold harmless the Indemnified Parties from and against any claims resulting from or arising out of the City’s obligations to the Right of Way, including, but not limited to, the design, construction, or maintenance failure of the roadway, roadway infrastructure, roadway projects, or other rights of way, including, but not limited to, sidewalks, medians, curbs, and bridges, controlled, maintained, or owned by the Indemnified Parties. Notwithstanding anything contained herein to the contrary, and to the maximum extent permitted 17 by applicable law, the maximum aggregate liability of Licensee or City arising out of or in connection with the license regarding contract, breach of warranty, product liability, strict liability, or breach of statutory duty shall not exceed two million U.S. dollars ($2,000,000); or if regarding tort liability shall not exceed ten million U.S. dollars ($10,000,000). 10. Assignment or Transfer of Interest. Licensee shall not transfer or assign any obligation or interest in this license without the prior written approval of the City, provided, however, that claims for money due or to income due to the Licensee may be assigned to a bank, trust company or other financial institution, or to a Trustee in Bankruptcy without such approval. Notice of any such assignment or transfer shall be furnished to the City. Except as provided herein, Licensee shall not subcontract any services under this license without prior written approval of the City department contract manager designated herein. Acquisition of the license holder by another entity will result in a review being conducted to determine if the license will be transferred to the new entity. 11. Prior Uncured Defaults. Pursuant to City ordinance, the City may not contract with persons or entities that have defaulted under a previous contract or agreement with the City and have failed to cure the default. 12. Licensee Status. Nothing contained in this license is intended to, or shall be construed in any manner, as creating or establishing the relationship of employer/employee between the parties. Licensee shall at all times remain independent with respect to the work and/or services to be performed under this license. Any and all employees of Licensee or other persons engaged in the performance of any work or services required by Licensee under this license agreement shall be considered employees or sub-contractors of the Licensee only and not of the City; and any and all claims that might arise, including Worker's Compensation claims under the Worker's Compensation Act of the State of Minnesota or any other state, on behalf of said employees or other persons while so engaged in any of the work or services to be rendered or provided herein, shall be the sole obligation and responsibility of Licensee. 13. Retention of Records. Pursuant to Minnesota Statutes, Section 138.17 and Section 15.17, the Licensee shall retain all records pertinent to expenditures incurred under this license agreement in a legible form for a period of six to eight years commencing after the end of the license agreement. This provision expressly excludes any and all identifiable customer usage or location data. 14. Data Practices. Licensee agrees to comply with the Minnesota Government Data Practices Act and all other applicable state and federal laws relating to data privacy or confidentiality. Licensee must immediately report to the City any requests from third parties for information relating to this license. The City agrees to promptly respond to inquiries from Licensee concerning data requests. Licensee agrees to hold the City, its officers, and employees harmless from any claims resulting from Licensee’s unlawful disclosure or use of data protected under state and federal laws. 15. Inspection of Records. All Licensee records with respect to Licensee’s obligations under this license shall be made available to the City or its designees, at any time during normal business 18 hours, as often as the City deems necessary, to audit, examine, and make excerpts or transcripts of all relevant data. 16. Ownership of Materials/Intellectual Property. All finished or unfinished documents, data, studies, surveys, maps, models, photographs, reports, or other materials furnished by the City in connection with this license shall be the property of the City. The City may use, extend, or enlarge any document produced by the City under this license without the consent, permission of, or further compensation to Licensee. Each party acknowledges and agrees that each party is the sole and exclusive owner of all right, title, and interest in and to its services, products, software, source and object code, specifications, designs, techniques, concepts, improvements, discoveries, and inventions including all intellectual property rights thereto, including without limitations any modifications, improvements, or derivative works thereof, created prior to, or independently, during the term of this license. This license agreement does not affect the ownership of each party’s pre-existing, intellectual property. Each party further acknowledges that it acquires no rights under this license to the other party’s pre-existing intellectual property, other than any limited right explicitly granted through the terms of this license. 17. Force Majeure. No party will be liable for any delay and/or failure to perform its obligations hereunder which is caused by a Force Majeure, provided in each case that the party claiming Force Majeure takes reasonable actions to mitigate such delay and/or failure. 18. Contacts. The following are designated as official representatives for each of the Parties, and as points of contact for purposes of delivering or receiving notice, contract management, official requests, and all other communication contemplated under this license agreement: For the City: Contract Manager: Sam Gallagher, Associate Planner sgallagher@hopkinsmn.com (952) 548-6339 1010 1st St. S. Hopkins, MN 55343 For Licensee: Contact 19. Entire Agreement. This license agreement, with attachments and documents incorporated by reference, is the entire agreement between the parties. No modification of this license agreement shall be valid or effective unless made in writing and signed by the parties hereto. 20. Interpretation of Agreement. In interpretation of this license agreement, the language of the license agreement shall prevail, followed by the language of Licensee’s Proposal. 21. Minnesota Laws Govern. The laws of the State of Minnesota shall govern all questions and interpretations concerning the validity and construction of this Agreement and the legal relations between the Parties and their performance. The appropriate venue and jurisdiction for an y litigation will be those courts located within the County of Hennepin, State of Minnesota. Litigation, however, in the federal courts involving the Parties will be in the appropriate federal court within the State of Minnesota. 19 IN TESTIMONY WHEREOF, the said parties have signed and executed this instrument the day and year first above written. For the Licensee: By:___________________________________ Its:___________________________________ For the City of Hopkins: CITY OF HOPKINS Approved: By:_________________________________ Patrick Hanlon Mayor By: ___________________________________ Michael Mornson City Manager