Memorandum

City of Lawrence

City Attorney’s Office

TO:	David L. Corliss, City Manager
FROM:	Maria Kaminska
DATE: CC:	October 8 , 2014 Toni Wheeler, City Attorney Diane Stoddard, Assistant City Manager Casey Toomay, Assistant City Manager Tarik Khatib, Chief of Police Diane Trybom, Acting City Clerk
RE:	Lawrence OnBoard/CarmaHop

Introduction

Staff has received a request from Jenny O’Brien on behalf of CarmaHop (formerly Lawrence OnBoard), a modified ridesharing program. Ms. O’Brien requests an amendment to Standard Traffic Ordinance (STO) 69 to allow her program to operate in Lawrence. A temporary exemption from the ordinance is provided by Ordinance 9029.

Background

In December 2013, Lawrence OnBoard director Jenny O’Brien appeared before the City Commission requesting an amendment to STO 69(a), which prohibits ridesharing services by forbidding people from standing along a roadway for the purpose of soliciting a ride (see attached minutes).

As directed by the City Commission, staff prepared, and the Commission adopted, Ordinance No. 8983 granting Lawrence OnBoard, specifically, a temporary exemption from STO 69. The exemption was for a six-month period beginning on May 6, 2014 and expiring November 6, 2014. Its purpose was to allow Lawrence OnBoard time to conduct research into testing and identifying ridesharing locations, develop guidelines, and survey participants on their comfort level in certain pick-up locations.

The CarmaHop Program

Since the Commission adopted Ordinance 8983, Lawrence OnBoard merged with Carma, an international company that has developed a Smartphone application (“app”) for carpooling. Lawrence’s local version of Carma is called CarmaHop, although the public may use either program. Accordingly, Lawrence OnBoard no longer exists, and the exemption crafted specifically for that program in April is void. Ms. O’Brien now requests a new exemption from the STO.

The following chart illustrates the differences between Lawrence OnBoard and Carma/CarmaHop, as provided in a memo from Ms. O’Brien:

Feature	Lawrence OnBoard	CarmaHop
Organizational Structure	Organized by Jenny O’Brien as a non-profit in Kansas	CarmaHop derives from Carma, which is an international ridesharing company based in Ireland. The CarmaHop name was adopted instead of Lawrence OnBoard to “make a more seamless branding and in anticipation of scaling it up to other locations.”
Goal	Roadside ridesharing	“To facilitate carpooling between users through the Carma Carpooling app system (pre-arranged rides) and to introduce a complementary roadside ridesharing option”
Method of Operation	Users write their destination on a whiteboard, and then stand along the road with the board to wait until a driver going the same direction picks them up.	Users download the CarmaHop app and create a profile that is visible to other users. They must provide their home address, to which a whiteboard is mailed with their photo ID affixed.  Users write their destination on the whiteboard and hold it up to wait for a ride. Once a driver arrives, the user presses “start trip” on the app and selects the driver from a list. If the driver is not on the list, the rider may input the driver’s information and an invitation to join the Carma community will be sent. Users can either use the Carma Hop app, or the original Carma app. Carma users use the app to communicate with others to arrange a carpool, and can request the app to match them with someone.
Payment	No payment collected; drivers were going to be entered into a prize drawing as a “gift economy”	CarmaHop drivers will be eligible for a prize, like a gas card, for example. For users electing to use Carma instead of CarmaHop, payment will be arranged via the Carma app and the driver will be paid a per-mile amount.
Ratings	A rating system was envisioned by not fully explained	Riders and drivers rate each other, and users rating another poorly will not be matched with that person again. A user accumulating too many bad reviews will be excluded from the service.
Verification	Verifies phone numbers and email	Verifies phone numbers and email
Safety	Envisioned background checks	No background checks
Indemnification	N/A	Terms of Service include an indemnification clause for participating cities

Staff Recommendation

The previous 6-month exemption for Lawrence OnBoard was not utilized, since during that time the program was undergoing changes transforming it into CarmaHop. Because the exemption was not used, staff did not have an opportunity to review the program and its operations within the city to determine whether the program is appropriate, and whether additional changes to the City Code are warranted. Accordingly, staff recommends granting Carma and CarmaHop a 6-month exemption by adopting Ordinance 9029, with the understanding that the programs will be revisited at the end of the trial period for evaluation.

As always, the Lawrence Police Department cautions that safety should be a priority in conducting any such ridesharing program.

Action Requested

Adopt on first reading Ordinance No. 9029, exempting the Carma and CarmaHop ridesharing programs for a period of 6 months from the provisions of STO 69(a), if appropriate.