sr-030309-7aC7_
;tYO City Council Report
Santa Monica
City Council Meeting: March 3, 2009
Agenda Item: ~" `"
To: Mayor and City Council
From: Marsha Jones Moutrie, City Attorney
Subject: Emergency Ordinance Establishing a Moratorium on City Approvals for
the Operation of Taxicabs in Santa Monica
Recommended Action
Staff recommends that City Council adopt the attached emergency ordinance
establishing a moratorium on the City's approval and issuance of new taxicab licenses
and .permits in Santa Monica pending the establishment of a new system for regulating
taxicab operations within the City.
Executive Summary
Under current local law, taxicab operations are regulated based on an open-entry
system, through which there is no limit on the number of taxicabs that may be
authorized to operate within the City. This system has consequently resulted in an
overconcentration of taxicabs in the City, particularly in downtown Santa Monica. Not
only has this situation exacerbated traffic problems in combination with limited street
parking, but it also degrades air quality and the natural environment. Accordingly, City
Council has directed staff to review and recommend alternatives for a new regulatory
system, and to prepare a moratorium ordinance to ensure that the existing problems do
not worsen while the City is in the process of modifying its taxicab regulations. The
attached emergency ordinance would establish such a moratorium.
Background
Business Licensing; the Police Department, taxicab .drivers, representatives of the
business community, and other community members have all raised concerns about the
excessive number of taxicabs operating in the City as well as problems with other
aspects of taxicab operations, including traffic and parking issues, poor customer
service, confusing and high taxi fares, low driver income, and air pollution. Three years
ago, the Task Force on the Environment recommended that the City move to a
.franchise-based system and award franchises only to taxicab companies with fleets
meeting specific emission and mileage standards. A study of taxicab operations
subsequently undertaken by a consultant to the City verified that the number of taxicabs
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in Santa Monica-currently 454 taxicabs and 516 permitted taxicab drivers-is far too
high for the City's population and small size. The study also concluded that the present
open-entry system yields neither quality service nor a healthy taxicab industry
On February 10, 2009, City Council conducted a study session on changing the current
open-entry system to a franchise-based system or otherwise, in order to achieve its
goals, including protecting the environment and ensuring quality service (particularly for
seniors and the disabled). The staff report presented to Council that evening provides
additional information about the current overconcentration of taxicabs in the City and its
attendant problems. After hearing from staff and the public and deliberating, Council
provided suggestions and asked staff to return with an ordinance for consideration and
discussion.
Discussion
Staff is in the process of gathering additional information and formulating an ordinance
for Council's consideration. Meanwhile, the presence of too many taxicabs continues to
adversely impact the City, its businesses, its visitors, its residents, and even taxicab
drivers themselves.. Taxicab drivers continuously cruise the streets of downtown Santa
Monica, which exacerbates traffic and parking problems, and pollutes the -air.
Additionally, taxicab drivers, faced with unlimited competition, struggle to make a living.
Although these problems cannot immediately be solved, they can be contained through
adoption of the attached moratorium ordinance. By prohibiting the issuance of any new
taxicab licenses or permits for new drivers, the moratorium would ensure that the
present overconcentration of taxicabs does not increase while staff is formulating and
Council is considering a new and improved regulatory system.
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Financial Impacts & Budget Actions
There is no financial impact to this proposed ordinance, and no budget actions are
necessary.
Prepared by: Meishya Yang
Forwarded to Council:
roved:
Joe Moutrie (~ ~--~' P.Cl.arfiont Ewell ~
>r y City Manager `/
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City Council Meeting 03-03-2009
ORDINANCE NUMBER (CCS)
(City Council Series)
Santa Monica, California
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA
ESTABLISHING A MORATORIUM ON THE ISSUANCE OF TAXICAB
BUSINESS LICENSES AND POLICE PERMITS AS PROVIDED UNDER
CHAPTER 6.48 OF THE SANTA MONICA MUNICIPAL CODE AND
DECLARING THE PRESENCE OF AN EMERGENCY.
WHEREAS, the City of Santa Monica ("City or "Santa Monica") is a small, extremely
dense, older coastal city consisting of just 8 square miles of land bordered on one side by
the Pacific Ocean and on three sides by the City of Los Angeles; and
WHEREAS, Santa Monica regulates business licenses and police permits for
taxicab companies and taxicab drivers to operate within the City limits underthe provisions
of Chapter 6.48 of the Santa Monica Municipal Code; and
WHEREAS, Santa Monica's regulation of taxicabs is .based on an open-entry
system, which has resulted in numerous problems, including an oversupply of taxicabs in
the local market; traffic congestion and parking problems, especially in the downtown area;
a wide and confusing range of fares; a lack of discounted fares for senior and disabled
residents; passenger complaints; poor customer service; low income for taxicab drivers;
taxicab drivers operating illegally in Los Angeles; and air pollution from older vehicles and
taxicabs cruising City streets for business; and
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WHEREAS, in October 2006, the Task Force on the Environment recommended
that the City Council direct City staff to develop and implement an ordinance that would
award franchises to taxicab companies that met certain emission and mileage standards;
and
WHEREAS, pursuant to the City Council's direction thereafter, Nelson/Nygaard
Consulting Associates was retained to research and evaluate whether Santa Monica
should adopt afranchise-based taxicab regulation system in conjunction with setting air
quality performance. standards in awarding taxicab franchise agreements; and
WHEREAS, Nelson/Nygaard Consulting Associates subsequently issued a Santa
Monica Taxi Study Technical Memorandum and Executive Summary on March 28, 2008,
corrected May 2008 ("Memorandum"), which recommended that Santa Monica establish a
taxicab franchise system using a competitive Request for Proposals process to award
franchises to a minimum of 4 and a maximum of 8 taxicab companies, with a total cap of
between 200 and 300 taxicabs authorized to operate in the City; and
WHEREAS, at the time that Nelson/Nygaard Consulting Associates conducted the
taxi study, there were 417 taxicabs and 55 taxicab companies authorized to operate ih
Santa Monica; and
WHEREAS, as of January 26,.2009, the foregoing numbers have increased to 454
taxicabs and 60 taxicab companies authorized to operate in Santa Monica, with a total of
516 permitted taxicab drivers; and
WHEREAS, the majority of the taxicabs authorized to operate in Santa Monica are
crowded in the downtown area, which consists of roughly 200 acres of land, and which has
limited street parking and greater traffic congestion than other areas of the City; and
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WHEREAS, to address and resolve the existing problems with the City's taxicab
operations, City staff, based on the findings and recommendations inthe Memorandum, is
researching and developing new and revised regulations in orderto switch from the current
regulatory scheme to a taxicab franchise system; and
WHEREAS, pending the establishment of a taxicab franchise system, and in order
to protect the public health, safety, and welfare, it is necessary to impose a moratorium on
the approval and issuance of new taxicab business licenses and police permits; and
WHEREAS, this moratorium will allow City staff and the City Council an opportunity
to implement a taxicab franchise system in Santa Monica; and
WHEREAS, based on the foregoing, the City Council finds that there exists a
current and immediate threat to the public health; safety, and welfare should a moratorium
not be established and additional taxicab licenses and police permits continue to be issued
for the operation of more taxicabs within the City; that authorizing more taxicabs to operate
in Santa Monica would only further compound the existing problems with taxicabs under
the current regulatory scheme; and that therefore, it is necessary to impose a moratorium
until the City Council approves and implements a taxicab franchise system.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA
DOES HEREBY ORDAIN AS FOLLOWS:
SECTION 1. Adoption of Moratorium. The City Council hereby enacts this
Ordinance establishing a moratorium on the approval and issuance of any new taxicab
business licenses or police permits pursuant to the current provisions of Chapter 6.48 of
the Santa Monica Municipal Code.
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SECTION 2. Applicability. This Ordinance shall apply to any pending and all
future applications for taxicab business licenses or police permits.
SECTION 3. Declaration of Urgency. This Ordinance is declared to be an urgency
measure adopted pursuant to the authority granted to the City by Article XI, Section 7, of
the California Constitution, and Section 615 of the Santa Monica City Charter. As set forth
in the findings above, this Ordinance is necessary in order to preserve the public peace,
health, and safety.
SECTION 4. The City Council finds that this Ordinance is exempt from the
provisions of the California Environmental Quality Act (CEQA) pursuant to California Code
of Regulations, Title 14, Section 15308, which exempts actions taken by regulatory
agencies intended for the protection of the environment, and Section 15061, subdivision
(b)(3), which exempts local agency activities that have no potential to result in adverse
impacts on the environment. The City Council finds that the activity under this Ordinance
will reduce impacts on air quality and traffic and will not have a significant adverse effect on
the environment.
SECTION 5. Any provision of the Santa Monica Municipal Code or appendices
thereto inconsistent with the provisions of this Ordinance, to the extent of such
inconsistencies and no further, is hereby repealed or modified to that extent necessary to
effect the provisions of this Ordinance.
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SECTION 6. If any section, subsection, sentence, clause, or phrase of this
Ordinance is for any reason held to be invalid or unconstitutional by a decision of any court
of competent jurisdiction, such decision shall not affect the validity of the remaining
portions of this Ordinance. The City Council hereby declares that it would have passed this
Ordinance and each and every section, subsection, sentence, clause, or phrase not
declared invalid or unconstitutional without regard to whether any portion of the ordinance
would be subsequently declared invalid or unconstitutional.
SECTION 7. The Mayor shall sign and the City Clerk shall attest to the passage of
this Ordinance. The City Clerk shall cause the same to be published once in the official
newspaperwithin 15 days after its adoption. As an urgency measure, this Ordinance shall
become effective immediately upon-its adoption.
APP UED AS TO FORM:
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M HA J S IOU RIE
City Attorne
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