AGENDA CAPTION:
Title
Consider approval of Ordinance 2015-14, on the second of two readings, amending Chapter 90, Article 3 of the San Marcos City Code Governing Taxicabs by modifying inspection and application requirements, requiring criminal background checks for drivers, and increasing rates of fare; further amending said Chapter 90 by adding a new Article 6 that establishes regulations for Transportation Network Companies; providing a savings clause; providing for the repeal of any conflicting provisions; and providing an effective date.
Body
Meeting date: May 5, 2015
Department: Police
Funds Required: N/A
Account Number: N/A
Funds Available: N/A
Account Name: N/A
CITY COUNCIL GOAL:
Quality of Life and Place
BACKGROUND:
The attached ordinance includes amendments made by the city council on April 7, 2015 when it was approved on first reading.
Chapter 90 of the City Code governs vehicles for hire and currently addresses limousine services, taxicabs and pedicabs, wreckers, and river shuttles. Recently, a new business model has emerged around the country which uses digital networking and software applications to connect would-be passengers to transportation networking company services provided by TNC drivers. This model, also called "ride sharing" in some jurisdictions, operates differently in many instances than that of the traditional taxicab model. As a result, most jurisdictions have found that existing ordinances in place to regulate taxis do not work well when applied to TNCs. During a presentation to council on January 20 related to the existing taxicab ordinance, council provided direction to the Chief of Police to draft an ordinance which would allow TNCs to operate in San Marcos legally and would also serve to allow appropriate oversight by the city. The proposed addition of Article 6 to Chapter 90 of the city code will apply directly to TNCs. This draft ordinance language is the product of meeting with representative from the two main TNCs operating in our area, Uber and Lyft, and considering model ordinance language provided by those companies. The draft ordinance language also incorporates segments of ordinances from other peer cities such as Austin and Tulsa, OK which were not contained in the model ordinances provided by Uber and Lyft but will serve to satisfy the duty of the City to ensure the safety of its citizens. The proposed ordinance includes provisions for the issuance of operating permits, the revocation of the same, establishes an annual fee for permitting, and sets forth insurance requirements for operating a TNC in the city.
This ordinance also includes amendments to Chapter 90, Article 3 governing taxicabs. Article 3 requires the Chief of Police to conduct a review of the taxi cab rates of fare each year. That study was completed in January of 2015 and presented to council on January 20, 2015. Council's direction at that time was for the Chief of Police to prepare updates to the City Code which would bring the current rates of fare in line with other cities in our area. These revisions are incorporated into this proposed updated ordinance. Also included in the proposed revisions are procedural provisions which require drivers to certify facts related to their criminal history. These provisions are aimed at enhancing public safety by adding a level of oversight to the driver permitting process which is also present in the proposed article related to Transportation Network Companies. Finally, the proposed revised ordinance also incorporates the removal of the requirement that all taxi cabs be inspected by the Chief of Police or his designee. Rather than creating this added layer of inspection at the local level, the reliance will be on the state vehicle safety inspection process.