Permit Cost Structure

A REVENUE AND REGULATORY TOOL:

The cost structure (if any) a city or municipality decides to implement is a double edged sword. On the one hand, most cities and municipalities like the prospect of making additional revenue through non-traditional sources, so they can allocate it for different purposes and not rely on state or federal government.  On the other hand, cities can use the cost structure to de-facto regulate the number of scooters and companies in their cities. The types of cost structures cities have adopted with respect to E-scooters are extremely diverse and have included a variety of options.

Cost Structure Options: 

1. No Cost Structure/Permit Scheme

One option that some cities have chosen is to simply not address the permit/regulatory scheme in their respective areas, but still allow companies to operate in their cities.

     2. Permit Fees

Almost all municipal regulations, ordinances, and pilot programs impose some sort of fee for a permit or simply access in order to operate in the city. The fees have ranged from a few hundred dollars to as much as $15,000. Keep in mind that that is just the cost to apply for the permit. That does not include the bond (which many cities require deposited prior to a company’s launch), not any additional fees the city may impose. Cities have also used these types of fees for mere pilot programs–allowing them to impose a second additional fee when the actual ordinance is passed.

Potential Legal Language: *[brackets] indicate a place where a city should insert their own figures. 

An provider must submit a permit application fee of [$500] with the application.

      3. Fees Per Unit

In conjunction with a general permit fee, many cities have opted to charge companies per E-scooter. This strategy helps keep the overall number of scooters in a city down, and de-facto regulates the fleet size of any one company in the city. These can range from fees per unit per year (the higher figures) or fees per unit per day (the lower figures).

Potential Legal Language: *[brackets] indicate a place where a city should insert their own figures. 

A provider must pay an [additional] operation fee of [[$1]/day/unit OR [$100]/year/unit].

4.  Progressive Integration Model 

Some cities have chosen to progressively integrate scooters into their city by increasing cost as the size of the fleet increases. This middle-of-the-ground approach allows companies flexibility when deciding how many scooters they are going to drop into a city while simultaneously providing an incentive to keep the numbers of scooters in any given city down.

Potential Legal Language: *[brackets] indicate a place where a city should insert their own figures. 

An operator must pay [$2,000] for the first [1-100] units, [$4,000] for [101-200] units, and [$6,000] for [201-300] units and [$100] for each unit thereafter.

Examples of Cost Structures: *(non-exhaustive)*