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Treat them like vehicles and fine the owners.
I mean, I appreciate the idea of micromobility and electric alternatives to cars and such, but I also get why cities might hate them. People park like shit, the scooters are maintained poorly, the whole concept of scooters is dangerous as fuck in normal traffic. E-bikes are far superior and the mode of transportation that should be pushed. That, and people should stop ruining good things for everyone by being dicks.
I agree with the city on this one. Until the issues regarding user safety, reckless driving, maintenance, and proper storage locations are addressed and solved, e-scooters should not be rented out like this.