REPORT TO COUNCIL
SUBJECT
Title
Action on the Introduction of an Ordinance Amending Chapter 5.35 (“Taxicabs”) of the Code of the City of Santa Clara to revise taxicab permitting and operational requirements establish new permit and operational requirements for pedi-cabs
Report
BACKGROUND
Chapter 5.35, titled Taxicabs, of the City of Santa Clara’s Municipal Code (Municipal Code) governs transportation services by taxicabs within the City. This Ordinance contains requirements for licensing, the application and renewal process, grounds for denial or suspension, vehicle inspections, fares, insurance, equipment and conditions, safety inspections, etc.
In 2011, rideshare companies (e.g. Uber, Lyft, Curb, Hailo, Sidecar, etc.) introduced into the transportation market the hiring of an on-demand private driver, which disrupted the taxi industry. As a result of the greater regulations facing the taxi industry as compared with its rideshare competitors, the California Legislature passed several bills. On October 13, 2017, Assembly Bill 1069 was chaptered, and was amended on September 5, 2018, by Assembly Bill 939 (AB 939). AB 939 will be chaptered in early October, after introduction but prior to adoption of this proposed ordinance. These two bills taken together amended Sections 53075.5, 53075.51, and 53075.52 of the Government Code, relating to local government regulations of taxicab businesses. Through these two bills, and the amendments thereto, the California Legislature has provided further clarification regarding the new permitting and regulating requirements.
Under the new law, which will be effective January 1, 2019, cities or counties are required to regulate a taxicab company or driver, if the company or driver is substantially located in one jurisdiction. In addition, taxi companies are only required to obtain a permit from one jurisdiction within the county in which they operate and all jurisdictions within that county are required to accept that single permit. This is contrasted with prior practice of requiring a taxicab business to obtain an operating permit from each and every city in which it conducted business. Additional changes to licensing requirements are included in the new state law, as well.
Concurrently with the changes to the taxicab industry that were generated by the rise of the ridesharing business model, pedi-cab businesses operate within City limits. The operation of pedi-cabs was a direct result of the opening of Levi’s Stadium in August, 2014. Pedi-cabs are defined as bicycle or tricycles that are used to transport passengers for hire. The City has approved applications for pedi-cab companies to operate in the City.
DISCUSSION
In anticipation of a pending Ordinance change to address AB 939, the Santa Clara Police Department hosted a meeting on July 19, 2018, among every taxi company with an existing permit in the City of Santa Clara. During the meeting, attendees were invited to bring up additional suggested amendments to the Ordinance. As a result of this cooperative effort, and to improve operational efficiencies and modernize the Code, several changes to the existing code are recommended by staff. The only recommendation not incorporated into the proposed Ordinance was a suggestion to reduce the insurance requirements. Taxi operators are required to maintain minimum liability limits for each vehicle of not less than $1 million, combined single limit for bodily injury to or death of any persons and for damages to or destruction of property in any one accident. This minimum is consistent with the requirements in many neighboring agencies. As a result, this best practice was maintained in the proposed Ordinance.
Furthermore, staff recommends including in the revised Code a more detailed and robust set of regulations specific to pedi-cabs. The proposed changes include new laws, modernization to the Code and best practices among local municipalities. Staff recommends to include the pedi-cab regulation in this ordinance. Pedi-cab regulations have become necessary as a result of the growth in that sector. Allowing pedi-cabs to operate in the City without more robust regulations poses a potential public safety risk. Therefore, the proposed Ordinance contains language for pedi-cabs that mirrors the roles and responsibilities of taxi cab companies and drivers (e.g. permitting process, equipment regulations, regulatory procedures, fleet size, price controls, etc.).
The table below summarizes the major recommended changes to the ordinance.
|
Current Ordinance |
Recommended Changes |
Taxi |
Pedi-Cab |
|
Charge a per vehicle fee for use of the City’s taxicab stands |
Delete taxicab stand fee |
ü |
|
|
Taxicab company or driver obtain permit in every jurisdiction where they conduct “pick-ups” |
One permit required, per County, where taxicab company or driver is substantially located |
ü |
|
|
Requirement to have a taxicab fleet of ten (10) |
Reduce minimum fleet size to seven (7) at request of taxi companies |
ü |
|
|
N/A |
Include Federal drug testing standard |
ü |
ü |
|
N/A |
Inclusion of specific regulations for permitting and operations including application, inspection of equipment, and safety features |
|
ü |
|
Permit renewal every five (5) years |
Permit renewal required annually |
ü |
ü |
ENVIRONMENTAL REVIEW
On July 19, 2018, the Santa Clara Police Department hosted a meeting among every taxi company with an existing permit in the City of Santa Clara. During the meeting, attendees were invited to bring up suggested amendments to the Ordinance.
The action being considered does not constitute a “project” within the meaning of a California Environmental Quality Act (“CEQA”) pursuant to the CEQA Guidelines section 15378(a) as it has no potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment.
FISCAL IMPACT
The City of Santa Clara currently collects approximately $18,643 in revenue associated with taxicab company business licenses ($1,965), taxi driver business licenses ($6,076), driver permit fees ($2,914) and vehicle inspections ($7,688). The taxicab stand fees are included in the taxi driver business license fees. If the Council introduces this ordinance for amendment, with the second reading of the ordinance, staff will bring forward a resolution to amend the Municipal Fee Schedule to remove the stand fee and establish the appropriate pedi-cab fees.
As a result of AB 939, staff does not expect many taxicab companies to be substantially located within the City of Santa Clara. In addition, Government Code §53075.5(e) does not allow the City to require taxicab companies or drivers that are not substantially located within the City to apply for a business license. It is expected that these legislative changes will result in a minimal decrease in revenue to the City.
COORDINATION
This report has been coordinated with the Finance Department and City Attorney’s Office.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email clerk@santaclaraca.gov <mailto:clerk@santaclaraca.gov> or at the public information desk at any City of Santa Clara public library.
ALTERNATIVES
1. Introduce an Ordinance Amending Chapter 5.35 (“Taxicabs”) of the Code of the City of Santa Clara to revise taxicab permitting and operational requirements, and to include new permit and operational requirements for pedi-cabs;
2. Do not introduce an Ordinance Amending Chapter 5.35 (“Taxicabs”) of the Code of the City of Santa Clara to revise taxicab permitting and operational requirements, and to include new permit and operational requirements for pedi-cabs; and,
3. Any other Council direction.
RECOMMENDATION
Recommendation
Alternative 1:
1. Introduce an Ordinance Amending Chapter 5.35 (“Taxicabs”) of the Code of the City of Santa Clara to revise taxicab permitting and operational requirements, and to include new permit and operational requirements for pedi-cabs
Staff
Reviewed by: Michael J. Sellers, Chief of Police
Approved by: Deanna J. Santana, City Manager
ATTACHMENTS
1. Assembly Bill 1069
2. Assembly Bill 939
3. Taxi and Pedi-Cab Ordinance - Redline Version
4. Taxi and Pedi-Cab Ordinance - Clean Version