Uber/Lyft MOUs

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    Interim Operating Agreementby and between

    Lyft, Inc. and the City of Spokane

    This Agreement is entered into this _______ day of September, 2014, between the City

    of Spokane, whose address is 808 West Spokane Falls Boulevard, Spokane,Washington 99201 (hereinafter referred to as the City), and Lyft, Inc., a Delawarecorporation, whose address is 548 Market Street, Suite 68514, San Francisco,California 94104 (hereinafter referred to as Lyft).

    WHEREAS, Lyft refers to itself as a ride-sharing network that uses a digitalplatform to connect passengers to ridesharing operators using their personal vehiclesfor the purpose of transportation. The City has referred to this form of transportationservice as a a transportation network company. Regardless of how this form oftransportation service is defined now by either of the parties, it is essentially anorganization that matches drivers and riders on a prearranged basis, for trips provided

    by drivers using their personal vehicles; and

    WHEREAS, Lyft Operatorshall mean an individual who uses the individualspersonal vehicle to provide transportation services through the Lyft platform; and

    WHEREAS, Lyft Vehicleshall mean a personal vehicle that is used by anoperator through the Lyft platform; and

    WHEREAS, Lyft and the City agree to the principles set forth below with respectto Lyfts platform. The parties agree that Lyfts acceptance of these principlesacknowledges, solely for the purposes of this Agreement, that the City has the authorityto enter into this Agreement. Lyft does not waive its right to contest the applicability of

    any laws or rules to Lyft, the Lyft platform, or Lyft Operators offering services throughthe Lyft platform. Lyft does not waive its right to propose or support different principles,terms or conditions, or to raise any defense in any other local, state or federal regulatoryor legal proceeding, including municipal-level proceedings. The City does not waive anyright or authority to initiate any action under the Spokane Municipal Code or state law;and

    WHEREAS, pursuant to SMC 12.03.0508, Lyft and Lyft Operators shall notoperate any vehicles to or from the Spokane International Airport (SIA) unless suchoperation is with the approval of the SIA Board and under such terms and conditions asthe SIA Board shall prescribe; and

    WHEREAS, there is authority for the City to establish regulations applying to for-hire vehicles as granted by Article 11, Section 11 of the Washington State Constitutionand RCW 46.72.160 -- Now, Therefore,

    LYFT AND THE CITY AGREE AS FOLLOWS:

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    The City is currently reviewing its municipal code regarding for-hire vehicles as itpertains to transportation network companies like Lyft. Pursuant to this Agreement,the City agrees to permit Lyft to operate in the City of Spokane while evaluating theseupdates, subject to the conditions and restrictions set forth herein,. This Agreementshall expire upon the effective date of any amendment to the Spokane Municipal Codes

    Chapter 10.34 respecting For-Hire Vehicles addressing transportation networkcompanies, or nine months from the date the City Council approves this Agreement,whichever is first. The City may terminate this agreement upon thirty (30) days notice inits reasonable discretion.

    LYFT AGREES AS FOLLOWS:

    1. Lyft shall maintain a website that provides a customer service telephone numberor email address.

    2. Lyft shall maintain an agent for service of process in the city of Spokane,

    Washington.

    3. Lyft shall maintain accurate and up-to date records of all operators providingservices through the Lyft platform.

    4. Upon completion of a trip, Lyft shall transmit an electronic receipt to thepassengers email address or mobile application documenting the origination anddestination of the trip and a description of the total amount paid, if any.

    5. Lyft and Lyfts operators shall accept only rides booked through a transportationnetwork companys digital platform and shall not solicit or accept street-hails.

    6. Lyft may offer service for compensation, no-charge, or suggested compensation.Lyft shall disclose its rates used to determine any compensation or suggestedcompensation on its app and/or website.

    7. The app used by Lyft to connect operators and passengers must display for thepassenger the name and photograph of the operator as well as the make,model and license plate number of the vehicle.

    8. Lyft shall establish a driver-training program designed to ensure that each driversafely operates his or her vehicle prior to the driver being able to offer service.

    9. Lyft shall implement a zero-tolerance policy on the use of drugs or alcoholapplicable to any driver on the Lyft platform, provide notice of the zero-tolerancepolicy on its website, as well as the procedures to report a complaint about adriver with whom the passenger was matched and for whom the passengerreasonably suspects was under the influence of drugs or alcohol during thecourse of the ride, and immediately suspend said driver upon receipt of a

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    passenger complaint alleging a violation of the zero-tolerance policy. Thesuspension shall last the duration of the investigation.

    10. Prior to permitting a person to act as a driver on its digital network, and annuallythereafter, Lyft shall obtain and review a criminal history research report for such

    person. The criminal background check shall be a national criminal backgroundcheck including the national sex offender database. Any person who has beenconvicted, within the past seven years, of driving under the influence of drugs oralcohol, or who has been convicted at any time for fraud, sexual offenses, use ofa motor vehicle to commit a felony, a crime involving property damage, and/ortheft, acts of violence, or acts of terror shall not be permitted to be a LyftOperator. Lyft will maintain electronic records of such criminal backgroundchecks for a period of two years.

    11. Prior to permitting a person to act as a driver on its network, and quarterlythereafter, Lyft shall obtain and review a driving history research report for such

    person. Any person with: (i) more than three (3) moving violations in the three-year period prior to such check, or (ii) a major violation in the three-year periodprior to such check (including, but not limited to, attempting to evade the police,reckless driving, or driving on a suspended or revoked license) shall not bepermitted to be a Lyft Operator on the Lyft platform. Lyft will maintain electronicrecords of such driving history research reports for a period of two years.

    12. Lyft shall maintain an automobile liability insurance policy, which covers allvehicles operated by Lyft Operators, with a minimum combined single limit of onemillion dollars ($1,000,000.00) per occurrence of bodily injury and propertydamage for accidents involving a vehicle and Lyft operator in transit to or duringa trip. For the term of this Agreement, Lyft shall provide evidence that each Lyftvehicle operated by a Lyft Operator within the City has liability insurance in anamount no less than required by RCW 46.72.050 during the period when a Lyftoperator is matched with a ride request and is providing a ride on the Lyftplatform. As soon as practicable, Lyft shall provide to the City a certificate ofinsurance for such policy, naming Lyft as the insured and an endorsementincluding the City as an additional insured. The policy shall be accompanied by acommitment from the insurer that such policy shall not be canceled, modified, orcoverage reduced without at least thirty (30) days prior notice to the City.

    13. Lyft Operators shall:

    (1) Possess a valid drivers license, proof of registration, maintain currentautomobile liability insurance, and be at least twenty-one (21) years ofage; and

    (2) Provide proof of both the operators personal insurance and excessliability insurance in the case of an accident; provided, that the operatorshall have twenty-four (24) hours to provide proof of excess liabilityinsurance.

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    14. Lyft Vehicles may be street-legal coupes, sedans, or light-duty vehicles, includingwithout limitation, vans, minivans, sport utility vehicles (SUVs), hatchbacks,convertibles and pickup trucks.

    15. All vehicles shall have a safety inspection conducted annually by Lyft or a thirdparty before being used to provide a service, pursuant to a procedure approvedby the City. Such procedure shall, at a minimum, include inspection of thefollowing components:

    (1) Foot brakes;(2) Parking brakes;(3) Steering mechanism;(4) Windshield;(5) Rear window and other glass;(6) Windshield wipers;

    (7) Headlights;(8) Tail lights;(9) Turn indicator lights;(10) Stop lights;(11) Front seat adjustment mechanism;(12) Doors (open, close, lock);(13) Horn;(14) Speedometer;(15) Bumpers;(16) Muffler and exhaust system;(17) Condition of tires, including tread depth;(18) Interior and exterior rear view mirrors; and(19) Safety belts for driver and passenger(s).

    16. Lyft and Lyft Operators shall not use any marked taxicab zones.

    17. Lyft shall pay to the City .10 cents per ride to cover any administrative andregulatory costs associated with the Lyft platform. Payment shall be sent to the City ona quarterly basis with an annual cap of $10,000.00 for all funds generated through thetransportation network company per ride fee. Lyft shall provide documentationdemonstrating the number of rides per month, which may be marked proprietary andconfidential.

    THE CITY AGREES TO THE FOLLOWING:

    1. While the City is determining whether the Spokane Municipal Code regardingFor-Hire Vehicle regulations needs to be amended to reflect the operation ofTransporation Network Companies, the City will not apply Spokane MunicipalCode Chapter 10.34 to Lyft and Lyfts operators during the term of thisAgreement, unless such enforcement stems solely and directly from violation of

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    any of the provisions of this Agreement.

    2. The City shall have the authority to enforce the requirements of this Agreement,including inspection of relevant records. Failure to adhere to the requirements ofthis Agreement by Lyft or a Lyft Operator may result in sanctions imposed by the

    City, or termination of this Agreement, at the Citys discretion.

    3. If a public records request is made of the City for documents that have beendesignated by Lyft as confidential or proprietary, the City shall provide writtennotice to Lyft prior to disclosure.

    DATED: _________________________ CITY OF SPOKANE

    By:_________________________________

    Title:________________________________

    ATTEST: APPROVED AS TO FORM:

    _________________________________ ___________________________________City Clerk Assistant City Attorney

    DATED: _________________________ LYFT, INC.

    By:_________________________________

    Title:________________________________