sr-110910-9aCity Council Meeting: November 9, 2010
Agenda Item: ~'- ~-
To: Mayor and City Council
From: Carol Swindell, Director of Finance
Subject: Award of Taxicab Franchises
Recommended Action
Staff recommends that City Council-
1) Hold a Public Hearing and Introduce for first reading ordinances granting
franchises to Bell Cab Company, Independent Taxi Owners Association, Metro
Cab Company, Taxi Taxi, and Yellow Cab Company;
2) Adopt the attached resolution setting annual taxicab franchise fees and taximeter
rates; and
3) Adopt the attached resolution setting the penalty structure and schedule of fines.
Executive Summary
A 2008 studv by Nelson\Nygaard Consulting Associates of taxicab operations in Santa
Monica found that the City's open-entry taxicab permitting system allowed the operation
of too many cabs for the market, and prevented the City from reducing vehicle
emissions created by taxicabs, setting uniform fares, enforcing requirements that
taxicab companies meet specific operating standards, and providing discounts for
seniors and persons with mobility impairments. Based on the study's recommendations,
on July 28, 2009, Council adopted an ordinance establishing a franchise-based system
for the regulation of taxicabs, which limits the number of taxicab companies to no more
than eight companies, limits the total number of vehicles in the taxicab fleet to 250,
requires franchisees to meet standards for their vehicles. and drivers, 'and be self-
supporting through franchise, vehicle permit and driver permit fees. In compliance with
the ordinance requirements, a Request for Proposals (RFP) for citywide taxicab
franchises was issued on January 14, 2010, with a response deadline of 3:00 pm on
March 19, 2010. Thirteen qualified proposals were- received and evaluated based on
the criteria specified in the ordinance and the RFP. Based on the evaluation, staff
recommends the award of franchises by ordinance authorizing the operation of 50
vehicles each to Bell Cab Company, Independent Taxi Owners Association, Metro Cab
Company, Taxi Taxi, and Yellow. Cab Company, for a citywide total of 250 taxicabs. The
attached resolution sets the annual taxicab franchise fees and rates and reflects
amounts published in the Request for Proposals (RFP) document. The second attached
resolution sets the penalty structure and penalties for violation of the taxicab rules and
regulations.
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Background
In October 2006, the Task Force on the Environment recommended to City Council that
it direct staff to develop an ordinance initiating a franchise system and awarding
franchises only to taxicab companies whose fleets met specific emission and mileage
standards. At their February 10, 2009, meeting City Council commented on the
excessive number of taxicabs, especially in the downtown area, and the need to reduce
their impact on the City and on the environment. The City also received complaints
regarding taxicabs: cruising for business., poor customer service from drivers, confusing
and high fees, lack of discounted services for senior and disabled residents, and
taxicabs with Santa Monica permits operating illegally as "bandit" taxis in Los Angeles
and other cities. Traffic is an increasing concern and in the 2009 resident survey, traffic
continued to be at the top of the list of issues of most concern to Santa Monica
residents. Limiting the number of taxicabs and establishing enforceable standards
would promote the City's sustainability and traffic management goals.
In 2008, the City retained the services of Nelson\Nygaard to assess options for
regulating taxicab operations. The study concluded:
Santa Monica has too many taxicabs and too many taxicab companies for the
population;
• The City's present open-entry form of regulation, which relies on market forces,
does not ensure either quality taxicab service or a healthy taxicab industry;
The City should establish a taxicab franchise system which uses a competitive
Request For Proposals (RFP) process to award franchises to at least four but no
more than eight cab companies, each with a minimum fleet size of at (east 25
vehicles, and which limits the total number of authorized cabs to between 200
and 300; and
Franchised taxicab companies should be required to meet financial, technical
and service standards for themselves, their vehicles and their drivers as a
franchise condition in order to ensure quality services.
On July 28, 2009, Council adopted an ordinance establishing a franchise-based
system for the regulation of taxicabs, which limits the number of taxicab companies to
at least one but no more than eight companies, limits the total number of vehicles in the
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citywide taxicab fleet to 250, requires franchisees to meet standards for their vehicles
and drivers, provides for rules/regulations for enforcement of franchise requirements
and be self-supporting through franchise, vehicle permit and driver permit fees.
Discussion
On January 14, 2010, staff released a Request for Proposals (RFP) (Attachment A) for
taxicab franchises and held apre-proposal conference on January 21, 2010, which was
attended by representatives of 33 taxicab firms/operators. Two subsequent rounds of
written questions and answers (Attachment B) clarifying the RFP requirements were
conducted and the initial response deadline of February 22, 2010 was extended to 3:00
pm on March 19, 2010, to provide all potential responders adequate time to meet the
RFP requirements. Thirteen proposals were received by the RFP response deadline.
Evaluation
An interagency committee evaluated the 13 proposals. The evaluation team included
five members who scored and rated all aspects of the proposal and included two
representatives from the Finance Department, one representative from the Office of
Sustainability and the Environment, one representative from the Police Department, and
one representative from the City of Los Angeles Department of Transportation Taxicab
Regulation Division. The evaluation team also- included other experts who- were
consulted regarding specific aspects of the proposal and included a representative from
the Pier Restoration Corporation, Bayside District, additional Police Department staff,
and the Human Services Division. The five raters evaluated the proposal based on the
following criteria, contained in SMMC 6.49.040(b) and detailed in the RFP:
Proof of financial viability, demonstrating ability to provide taxicab services in
compliance with City ordinances and regulations and the bidder's proposal.
(20%)
® Experience in providing taxicab services during the last 10 years, including
demonstrated quality of service and safety. (20%)
Proposed business and management-plan. (20%)
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• Fleet composition, including age and condition of taxicabs, annual minimum
number of vehicles meeting Ultra Low Emission Vehicle and Super Ultra Low
Emission Vehicle (ULEV/SULEV) and other low-emission standards. (15%)
Local preference. (8%)
• Character of operator's .owners/members/principals/partners, verifying
criminal/civil record, taxicab regulatory, franchising, licensing, insurance and
litigation history. (5%)
• Proposed discount fares for senior and mobility impaired customers. (3%)
Dispatch and communication system. (3%)
Driver training, testing, supervision and life/health/disability benefit plans. (3%)
• Operator/driver financial relationships including leasing, fees, memberships and
all other relationships. (3%)
The evaluators independently reviewed each proposal prior to convening over two days
to discuss and review the proposals in detail. During the discussion period, technical
expertise and input was provided by subject matter experts, in areas including
environmental and accessibility. Each evaluator calculated a composite score for each
company using the score sheet (sample in Attachment C). The final weighted composite
score was entered into an Excel spreadsheet to calculate the total composite score
(Attachment D). In a manner consistent with other City RFP processes, notes and
individual scores from each evaluator were not retained. Also consistent with other City
processes, only one original file copy of each proposal received was retained. Staff
surveyed other cities regarding taxicab RFP processes and found a wide range of
methods to communicate the resulting recommendation. Despite the wide variety of
methods, one constant was the communication of composite scores and not individual..
rater comments or evaluations. The attachments to this report represent the material
retained.
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In summary, the 13 proposals received were:
TABLE 1
Taxicab Franchise Proposal Summary ',
PROPOSER # Current SM
Taxicabs # Proposed
SM Taxicabs Now operating
in SM? Based in
SM?
All Yellow Taxi Inc 6 30 Yes No
Bell Cab 43 60 Yes No
Beverly Hills Cab Co 29 80 Yes No
Euro Taxi 28 60 Yes Yes
Independent Taxi
Owners Assoc. 12 50 Yes No
LA Checker Cab
Co/VIP Yellow 0/40 40/40 No/Yes, under
new joint
venture No
Lady's Yellow Cab
dba Yellow United 27 40 Yes Yes
Metro Cab Co. 20 100 Yes Yes
SM Yellow Cab 9 30 Yes No
San Gabriel Transit
Inc/City Cab 0 36 No No
SMCC Yellow Cab 0 100 No No
Taxi Taxi* 59 100 Yes Yes
Yellow Cab 40 60 Yes No
'TMAT Corporation also includes Lotus Taxi with 6 licensed taxis.
As of March 2010, the 13 proposers operated 316 taxicabs in Santa Monica.
Collectively, they proposed to operate a total of 826 taxicabs, more than three times the
statutory maximum of 250 taxicabs permitted to operate by all franchise holders. Two
proposers do not currently operate any cabs in Santa Monica. One additional proposer
does not currently operate any taxicabs in the City but put forth the formation of a new
joint venture with a current operator, dependent on award of a franchise. Four
proposals were received from operators with business operations currently based in
Santa Monica.
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Proof of Financial Viability
Proposals were evaluated on submitted documentation of equity funding, debt funding,
balance sheets, cash flow statements, income statements, financial plan for operation of
the proposed level and scope of services. Firm structure was reflective of the taxicab
industry in general with proposals from cooperatives/associations, in which vehicles are
owned by members and either operated by the member owner or leased to an
independent contractor driver, and firms in which one or more partners own the vehicles
and lease them to independent contractor drivers. Members of cooperatives/
associations are assessed annual fees to cover the organization's operating costs and
share in the organization's profits. Taxicab drivers are rarely, if ever, bona fide
employees. Almost without exception, taxicabs are either driven by the vehicle owner
or leased to an independent contractor taxicab driver. The recommended firms most
clearly demonstrated financial capacity within their organizational structure to meet the
franchise requirements, with financing commitments where necessary to meet
expansion of their present fleet or acquisition of new technology.
Experience Providing Taxicab Services
Proposals were evaluated on submitted documentation of current ownership/
management's experience in providing taxicab service during the last ten years in any
jurisdiction where franchises/permits were held, scope of current taxicab operations and
references from permitting jurisdictions. All but two proposers were experienced in
providing taxicab services in Santa Monica. The two proposers which have not
operated previously in Santa Monica have significant experience in other jurisdictions in
Los Angeles and Orange Counties. The recommended firms demonstrated a history of
quality operation both in Santa Monica and in otherjurisdictions.
Proposed Business and Management Plan
Proposals were evaluated on submitted documentation of organizational structure and
internal relationships of owners/members to leasing drivers, experience of management
personnel, procedures for discipline of members and lease drivers, operating facilities
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and their location, staffing plan, experience of management personnel, vehicle
maintenance and storage, plan for maintaining required taxicab service levels and
procedures for addressing service deficiencies, vehicle maintenance personnel/
facilities, disciplinary program for drivers/members/employees, complaint resolution
procedures, accident tracking/investigation, record keeping programs, and programs or
agreements which might limit Santa Monica service availability.
Not all proposers provided business plans which clearly demonstrate compliance with
the City regulations or the ability to provide the required increase in levels and quality of
service. Several proposals specified management personnel with minimal relevant
experience in the taxicab industry. The recommended firms demonstrated their ability
to provide appropriate and experienced staffing, meet technological requirements,
monitor and enforce a uniform standard of service from all drivers, maintain detailed
records and provide meaningful reports to the City, and to fund their proposed level of
operation.
Fleet Composition
Proposers were required to specify a fleet of at least 25 vehicles, with a specific number
of proposed vehicles in each of the SULEV/ULEV/other categories of fuel
efficiency/emission rating.. In addition, each proposal was required to specify a number
of wheelchair accessible vehicles equal to at least 10% of the proposed fleet size.
Wheelchair accessible vehicles were not subject to the fuel efficiency/emission ratings
requirements because the required side-loading vans are not currently available in
economically viable high fuel efficiency/low emissions models. Proposed fleets ranged
from 30 to 100 vehicles, with all proposals based on expansion of their existing fleet, no
matter its present size in Santa Monica. Proposers were required to provide a specific
deployment schedule with the full fleet in operation at the end of five months. The
evaluation committee gave the most weight to those proposals which both proposed
fleets with greater composition of the most fuel efficient/least polluting vehicles and with
the most aggressive deployment schedule. In order to ensure that all franchise holders
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have an equal opportunity to access the available market and that no franchise holder
has an advantage based on the number of vehicles available for service over other
franchise holders, staff recommends that the number of vehicles authorized for each of
the five recommended franchises be set at an individual fleet size of 50 vehicles, of
which 5 are to be wheelchair-accessible vehicles. The minimum vehicle classification
mix for each franchise fleet, as shown in Table 3 below, is recommended on the basis
of the original fleet mix stated in the proposals submitted in response to the RFP, as
summarized in Table 2.
TABLE 2 -ORIGINALLY PROPOSED FLEET
TOTAL SULEV ULEV Wheelchair
FLEET Accessible
Bell Cab 60 16 38 6
Independent Taxi Owners Assoc 50 45 0 5
Metro Cab Co. 100 56 29 15
Taxi Taxi 100 50 40 10
Yellow Cab 60 25 25 10
TOTAL PROPOSED VEHICLES 370 192 132 46
TABLE 3 -RECOMMEN DED FLEET
TOTAL
FLEET SULEV ULEV Wheelchair
Accessible
BeII Cab 50 16 29 5
Independent Taxi Owners Assoc 50 45 0 5
Metro Cab Co. 50 45 0 5
Taxi Taxi 50 45 0 5
Yellow Cab 50 25 20 5
TOTAL RECOMMENDEDVEHICLES 250 176 49 25
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The raters scored each company based on the proposed fleet distribution between
SULEV, ULEV and accessible vehicles (Table 2). In support of the Task Force on the
Environment and Council's priorities, the recommended total fleet (Table 3) would
consist of 70% SULEV or higher standard vehicles, 20% ULEV vehicles, and 10%
wheelchair accessible vehicles. Franchisees will be strongly encouraged to increase
the number of SULEV or greater class vehicles in their individual fleets. The franchise
ordinance provides for the City and recommended taxicab companies to negotiate the
final fleet composition and provides for the final ratio between SULEV and ULEV to not
go below the original proposed fleet composition.
By recommending an equal fleet size for each of the five recommended franchise firms,
no one firm is given an advantage in size over another and all franchised firms are
offered an equal opportunity to serve the Santa Monica taxicab customer. The
recommended fleet size also represents an increase for all but one firm and eases the
financial burden which might be encountered by those firms which proposed the.
greatest expansion of their existing fleet.
Local Preference
Each proposer was required to declare the address of their principal business location
as a means of determining whether the firm's principal location was in Santa Monica or
another location. Firms which declared a Santa Monica location as the principal place
of business as were provided the full local preference point advantage in the final
scoring over firms declared principal business locations outside of Santa Monica.
Character of Operator's Owners/Members/Principals/Partners
Proposals were evaluated on submitted and other documentation accessed by the City
of criminal convictions, anti-competitive practices, violations of state/federal laws
regarding false or misleading advertising, revocation/suspension of business license,
violation of operator licenses/franchises, litigation against franchising authorities, and
citations of operators/drivers for operating in jurisdictions without required
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permits/licenses (bandit cab operations). Through criminal background checks
conducted by the California Department of Justice fingerprinting review, all proposers
demonstrated that their ownership and principal investors of record were of good
character and background, appropriate to the operation of a taxicab franchise. Of the
recommended firms, most demonstrated compliance with regulatory requirements
jurisdictions in which they were authorized to operate.
Proposed Discount Fares
All proposers specified some form of fare discount for senior citizens (persons age 65 or
older who present proof of age, such as a DMV ID card) and persons with disabilities
(persons with a Los Angeles County Transit Operators Association (LACTOA] Metro
disabled ID card). While proposed discounts ranged from 10% to 25%, some proposed
discount schemes were determined to be problematic. Several required advance
purchase of a pre-paid "debit" card with no information as to how the card was to be
read or validated. One committed to accepting discount media for which the City would
be required to fund reimbursement. Others placed the full burden of the mandated
discount on the driver with no support or reimbursement from the franchise holder.
These approaches fail to guarantee a transparent fare discount that is easily understood
by the target customer groups and is easily monitored by the franchise holder and the
City.
The evaluation committee recommends that a discount of 10% off of the metered fare
for eligible passengers, with a reimbursement to the driver by the franchise holder,
should be required of all franchise recipients. The committee determined that higher
discounts are not financially viable without funding by some entity other than the
franchise holders and their independent contractor drivers.
Dispatch/Communication Svstem
Proposals were evaluated on submitted documentation of the taxicab companies'
staffing/deployment plan, dispatch and communication systems, procedures for
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dispatching vehicles and capturing records of services operations, dispatch facilities and
locations, technology for serving speech/hearing impaired customers and non-English
speaking customers, and procedures and formats for reporting service data to the City.
Digital dispatching systems are a required feature of the RFP and all proposers
committed to acquiring this technology if it was not already in place in the company's
operations. Additionally, digital systems utilize GPS to provide the most efficient
dispatching of available taxicabs and also improve the safety of passengers and drivers
by providing the vehicle's location to the central dispatch. The recommended firms more
clearly demonstrated their understanding and use of this technology and its ability to
both communicate with drivers from a centralized computerized dispatch location and to
provide a backup communication system in case of emergencies or failure of the digital
system.
Driver Training Testing Supervision and Benefit Plans
Proposals were evaluated on submitted documentation of driver selection and training
process, proposers' English language testing procedures, driver training and re-training
programs, and driver and employee benefit plans and costs. Taxicabs are either driven
by the vehicle owner or leased to an independent contractor taxi driver. Taxicab drivers
are rarely, if ever, bona fide employees. None of the proposals stated that they provide
health insurance benefits to drivers.. All but one of the recommended proposers provide
a level of accidental death/disability benefit with some medical benefit at either the
proposer's cost or, in the case of those with the highest benefit, a nominal cost (e.g. $20
per month) to the driver. The recommended firms all -had specific procedures for
soliciting, selecting, hiring and training drivers and complying with City and state
requirements for drug screening.
Operator/Driver Financial Relationships
Proposals were evaluated on submitted. documentation of leasing costs and other fees
charged by the operating entity to vehicle owners and taxi drivers, as well as any
contribution required of drivers towards the cost of discounted fares. Membership
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entities assess their member's annual fees to support the operation of the entity and
share back any annual profit. Ownership entities, such as LLC's and partnerships, own
the firm's assets and derive income from the lease payments for use of the vehicle and
its equipment. Leasing fees charged by the Santa Monica-based firms were
consistently higher than those charged by firms based elsewhere, but were within the
range of fees generally charged in the industry.
Race, Ethnicity or Nationality of Taxicab Companies' Ownership or Personnel
The race, ethnicity, or nationality of owners, officers, members, or other personnel of the
taxicab companies was not a factor in the evaluation process and played no role
whatsoever in the evaluation committee's recommendations for taxicab franchises. The
evaluation committee was unaware of the specific race, ethnicity or nationality of
individuals linked to specific taxicab companies until such race, ethnicity or nationality
was pointed out by outside individuals and organizations subsequent to the evaluation
process, and well after the publication of the taxicab companies recommended for an
award of a franchise in the City.
Taxicab Rules
Section 6.49.020 of the Santa Monica Municipal Code authorizes the Santa Monica
Police Department to adopt, rules and regulations consistent with and necessary to
implement Chapter 6.49 of the Code. In developing its taxicab franchise system, the
City looked to the established taxicab rules in nearby franchised cities, including Los
Angeles and West Hollywood, as the basis for developing the City's rules. The rules
were also reviewed against the adopted ordinance and the Santa Monica Municipal
Code and to ensure that the rules furthered the stated goals for establishing the
franchise system, including the goals of providing consistent, safe, high quality taxicab
service; decreasing the environmental impact of taxicabs; and providing the opportunity
for all franchised taxicab companies to have fair and equitable business practices.
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Penalties for Violations of Taxicab Rules
Consistent with Section 6.49.150 of the Santa Monica Municipal Code, a progressive
penalty structure is established which:
• Sets a specific penalty for violation of each of the Taxicab Rules. Depending on
the seriousness of the rule violation, penalties range from monetary fines to
revocation or cancellation of the vehicle permit, driver permit, or franchise
operations.
• Imposes progressively increased penalties for repeat violations of the same rule
within a set time period.
• Imposes penalties on both taxicab drivers and the franchisee for driver violations
as a means of ensuring that franchisees exert control over and take responsibility
for their drivers' actions.
A taxicab driver or franchisee that has been cited for a violation of a taxicab rule or
regulation may request an administrative hearing before a hearing officer, as set forth in
Santa Monica Municipal Code Section 6.49.150.
Other Remedies
Franchisees are also subject to suspension of their taxicab operations or revocation of
their franchise, and taxicab drivers are also subject to suspension or revocation of their
driver's. permit, for violations of the terms and conditions of the franchise ordinance, and
Santa Monica Municipal Code Chapter 6.49, as set forth in Sections 6.49.050 and
6.49.070(h). Notice and a hearing in accordance with the hearing procedures set forth
in Chapters 6.16 and 6.49 will precede any action of suspension or revocation.
Violations of Chapter 6.49 may also be prosecuted as infractions or misdemeanors in
Los Angeles Superior Court, as set forth in Section 6.49.140.
Taxicab Franchise Fees
On June 30, 2009, staff recommended that the franchise fee and vehicle and driver
permit fees be established at rates both comparable to surrounding cities as well as at a
level that fully recover the costs of administering the franchise operations.
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At that time, staff presented the following fees:
Annual franchise fee per taxicab firm: $10,000
Annual vehicle permit fee per taxicab: $ 875
Annual driver permit fee per driver: $ 150
After receiving input from Council and in order to better encourage the use of
environmentally superior vehicles, staff developed a new proposed annual franchise fee
schedule that was published in the RFP documents, as follows:
Annual franchise fee per taxicab firm: $5,000
Annual SULEV/ULEV/Wheelchairuehicle permit fee: $1,200
Annual non-SULEV/ULEV/Wheelchairuehicle permit fee $1,800
Annual driver permit fee $ 150
The revised fee structure was developed to incentivize the use of low emission vehicles
and is expected to generate approximately, the same revenue as that previously
recommended and encourages the use of SULEV, ULEV and accessible vehicles.
Taximeter Rates
The Nelson\Nygaard Taxicab study generally set forth two recommendations for setting
taxicab rates: (1) set a maximum rate; or (2) set a rate that is equal to LADOT which is
widely used in the sub region. Staff recommends that the most effective taxicab meter
rate would be option 2, which would minimize confusion for the public that often travels
between jurisdictions and for enforcement to ensure a consistent rate. Therefore staff
recommends the following taximeter rates, which are consistent with the current LADOT
rates:
$2.85 flag drop (first 1/9th mile).
$0.30 for each additional 1/9th mile ($2.70 per mile)
$0.30 for each 37 seconds waiting/delay ($29.19 per hour)
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The study further recommended that passengers be given the option of electing at the
beginning of a trip to either the Bob Hope Airport or Los Angeles International Airport
(LAX) to pay the metered rate or a flat rate, and with different flat rates for travel to LAX
originating north or south of the I-10 Freeway. Staff recommends the following airport
flat rates:
North of I-10 to Los Angeles International: $45
South of I-10 to Los Angeles International: $35
Santa Monica to Bob Hope Airport: $75
Response to Communications
Staff received a number of letters with questions pertaining to the RFP process as well
as the recommended allocation of taxicabs. These letters and all communications
received are attached.
Alternatives
Council has several alternatives available for the award of taxicab franchises:
1) Adopt staff's recommendation as presented in this report. No additional action
would be required by Council beyond adoption of the attached 5 franchise
ordinances on second reading at the next Council meeting. Upon each taxicab
company's consequent written acceptance of the awarded franchise, the five
franchises could be operational beginning January 3, 2011.
2) Modify the distribution of the 250 taxicabs among the five recommended taxicab
companies. If Council modifies the distribution, Council would need to modify the
attached 5 franchise ordinances to reflect the desired distribution of the 250
taxicabs for each taxicab company. Staff would confirm with'the affected taxicab
companies their interest in securing a franchise under the revised number of
taxicabs they would be authorized to operate in the City. No additional action
would be required beyond adoption of the attached five franchise ordinances on
second reading at the next Council meeting. Upon each taxicab company's
consequent written acceptance of the awarded franchise, the five franchises
could be operational beginning January 3, 2011.
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3) Direct staff to return with a recommendation to award up to three additional
franchises to additional taxicab companies who submitted proposals in response
to the RFP, for a total of up to eight taxicab franchises, and redistribute the 250
taxicabs among the eight recommended taxicab companies. This option would
require Council to adopt another resolution declaring its intent to grant
franchises, naming up to .eight proposed grantees, and notice a new public
hearing to introduce for first reading and then adopt on second reading up to
eight franchise ordinances awarding franchises to eight taxicab companies.
4) Increase or decrease the maximum number of taxicabs in the City, which number
is currently 250 taxicabs, by amending the law. This option would require
Council to notice and hold a public hearing to introduce for first reading and then
adopt on second reading an ordinance modifying Ordinance No. 2292 (CCS),
which created the taxicab franchise system, and Santa Monica Municipal Code
Section 6.49.040(d), which states that the "maximum number of taxicabs
permitted to operate under the terms of all franchises granted by the City shall
not exceed two hundred and fifty taxicabs, which number may be adjusted by
City Council from time to time." Council then has two options:
(i) Modify the distribution of the new total number of taxicabs among the five
recommended taxicab companies. This option would require Council to
adopt another resolution declaring its intent to grant franchises to the five
taxicab companies, and notice and hold a public hearing to introduce for
first reading and then adopt on second reading the five attached frahchise
ordinances with the modified distribution of the new total number of
taxicabs for each taxicab company.
(ii) Direct staff to return with a recommendation to award up to three
additional franchises to additional taxicab companies who submitted
proposals in response to the RFP, for a total of up to eight taxicab
franchises. This option would require Council to adopt another resolution
declaring its intent to grant additional franchises and notice and hold a
new public hearing to introduce for first reading and then adopt on second
reading up to eight franchise ordinances awarding franchises to eight
taxicab companies.
5) Increase or decrease the maximum number of taxicabs in the City in accordance
with Santa Monica Municipal Code Section 6.49.040(f) or 6.49.040(e),
respectively. This option would require Council to notice and hold a public
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hearing to make certain findings that more or less taxicabs are required in the
City. Council then has the two options as set forth in number four above.
6) Decline staffs recommendation; provide further direction to staff in relation to
additional evaluation criteria and direct staff to complete a new RFP process for
taxicab franchises, which would allow for submission of proposals by taxicab
companies that did not submit a proposal in the first RFP process.
7) Decline staffs recommendation and maintain the current open-entry taxicab
system. This option would require Council to notice and hold a public hearing to
introduce for first reading and adopt on second reading an ordinance repealing
Ordinance No. 2292 (CCS), which created the taxicab franchise system..
Next Steps
If the attached ordinances are adopted on second reading, the recommended
franchisees have 10 days following adoption to file with the City Clerk a written
acceptance of the terms of the franchise. (See Article XVI, Section 1603, of the
Charter.) If one or more companies decline to accept the franchise, staff will return to
Council with a reallocation of remaining taxicabs to those awarded firms which have
accepted the franchise to bring the number of authorized taxicabs to 250.
On January 3, 2011, only franchised companies will be allowed to operate within Santa
Monica. Staff is currently developing the details of the six month implementation period
and will engage the awarded firms, if any, in finalizing the transition plan. Staff will
provide quarterly updates on the implementation of the taxicab franchise program
during the first year. After one year, staff will return to Council with an assessment and
review of the first year of the taxicab franchise system and will be prepared to propose
changes to the regulations, administration or number of cabs, if warranted.
Financial Impacts & Budget Actions
Administration of the proposed franchise system will consist of annual review of the
franchise-holder's performance, on-going processing of vehicle and driver permits, and
supervision of the vehicle inspection/certification process by aCity-designated facility.
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The full cost of these functions will be supported by the franchise fees and vehicle and
driver permit fees paid by the franchise holders.
Prepared by: Pamela McGarvey, Revenue Collection Administrator
Approved:
r
Carol Swindell
Director of Finance
Forwarded to Council:
-~ ~~~
Rod Gould
City Manager
Attachments:
A. Request for Proposals for Taxicab Franchises
B. Request for Proposals Questions and Answers
C. Sample Score Sheet
D. Composite Score
E. Previous Council Items
a. February 10, 2009 -Study Session on Regulation of Taxicab Operations
b. March 3, 2009 -Proposed moratorium. on new taxicab permits (not
approved)
c. June 30, 2009 -Ordinance to Establish Franchise System for Regulation
of Taxicab Operations and Modifying Existing Provisions Applicable to
Taxis and Vehicles for Hire
d. July 28. 2009 -Second Reading on Ordinance to Establish Franchise
System for Regulation of Taxicab Operations and Modifying Existing
Provisions Applicable to Taxis and Vehicles for Hire
e. November 10. 2009 -Taxicab Franchising RFP Evaluation Factors
f. October 12. 2010 -Resolution of Intention to Grant Taxicab Franchises
g. July 5, 2010 -Information Item -Additional Information on Taxi Franchise
Selection Process
h. October 21, 2010 -Information Item -Additional Information on Taxi
Franchises -Taxicab Rules
F. Letters Received
G. Ordinances Granting Taxicab Franchises
H. Resolution setting the annual taxicab franchise fees and rates
I. Resolution setting the penalty structure and penalties for violation of the taxicab
rules and regulations
18
ATTACHMENT C
SAMPLE SCORE SHEET
17
ATTACHMENT C-SAMPLE SCOPE SHEET
Weight POINii 11FP COMPONENT COMPONENT ELEMENT AB Yellow Taxi Inc BeB Cab Beverly Bilb Cab Co Euro Tasi IDdepwdevt Cab L.A. Checker Cab Ca. LadyS YeEOw Cab Mefro Cab Ca. S.M. Yelow Cab Sav Gebrid Tramit SMCC Yellow Cab Tad Tad Yellow Cab ''.
Value (Z00) Ca. (1TOA) dba YeOaw United IadCily Cab ~~
IO% 40 ProofofFnantlalstabll/ry and
sufQtlenry ofRnantlal rcsaun:es.
Equity funding-balance sheets, ashflaw
statement, income statements far 2007,
2008, 3009 at proposers last 3fisalyears.
Greater weight for audited financial
stafementr
Oeb[ Funding -commitment letters from
funding institutions, stating use of funds
Financial plan which evidences ability to I.
apeate the proposed fleet, meetservice - '
requirements, provide discounts, provide _
- benefiss to drNers
Collection/dis[ribufian of arganizadanal
funds
Funding/apiTal required for
dispatch/vehicle technology, .naffing,
property lease/purchase (including
vehldes, maintenance
10% 40 Experience in provldlnp tax/cpbserv/ces '
during Ne last ten years ontl
demanstratlng pbl/Irytoprovlde tad
serdces In compliance wIN Ory
ard/nances vndrcpulatlons and Ne
b/ddet'spropasal.
listing far last 30 years of all operations in
anyjunsdictian -franchises, permits
Current taxiabservice operations -
3referencesforoperationsinlast l0 yrs j
5% 10 [horozterofoperotor's
owners/members/pr/ntlpa/s/partners,
ver/fying Wminal/dull, tax/cab
re9ulvtory, frondd9np, licensing, and
-
lltl atlon hlsta ~
Org/principalaiminalconvictions -
arg/prinidpal party to anti-compe0tive
pactices, violated stafe/fed laws re
false/misleading advertising -
Org/pdncipalhusinesslicense
revoked/suspended
Org/principal violated opeator's
license/franchise ~ '
- Org/principal litigated against franchise '
authority
Cliatlons for operating without
permiss/licenses
IO% 40 propasedbus/neu ondmanagement
plan.
Ownership/COrp structure
Org ID paperwork (charter, bylaws)
BOO/f)Kcers eleRion procedure
Membership/security/lease agreements
Process for member/share
' appravalsale,tansfer --
Processfarmemberdismiszal
Process far reporting active member lists to
Ci
10/experience of mgmt personnel
operating facility & location
stiffing structure/plan & vehicle .
deployment scheduling
Vehicle storage space/laatians
Vehicle maintenance persannel(tacilities
Procedures for maintaining service
levels/addressin service deficiencies
Discipline/mediation far driver, member,
employee, ape2tor
Complaint resolution program
Accident investigatlon/tracking procedure
^st exduslve service agreements in Santa
Monies
Programs/agreements that may effect5anta
Monica service availability
Pecord keeping programs
ATiACHMEM C-$AMPlE SCORE SHEET
Wright POINI5 RFP COMPONENT COMPONENT ELEMENT All Yedaw Tad Inc ]led Cab Beverly Hens Gb Co &asv Tad Independent Gb LA. C'hecbcr Cab Ca. Lady's Ye9aw Cab Metm Cab Co. 5.01. Yellow Cab Sav Gabriel Tranrit SMCC Yellow Gb Tad Tad Yel
Gb
Yalue (200) Co. pTOA) dbn YeDew Onited InclCl Gb
h ow
3% 6 Pmposeddixeuntjoresjorsenlor and SEE ATTACHEDANALYSIS SUMMARY - _
moblllryim ~alred Customers. -
Discpuntbasls
Administrztion of discount
Funding source far discount
Discount limitatlans '
3% 6 Olspm[h and [ommun/cpdonsystem.
Dispatch fadliry loatlon
Dispatch rtaffng/deploymeni plan
Dispatch procedures & service
documentation capNre
Dispatch computers system, ndia
technologies & frequencies, phone system
Technology/service far serving
speech/hearing impaired; Spanish/other
Vansladon
Reporting procedures/formats to City
35% 30 Fleet [omposltloq lnGud/ng annual SEE ATTACHED SUMMARY ANALYSIS ,
minlmum number of vehlUes meeting '
ULEV/SUIEV/LEY andother low- -
emisslon tmndprds.
Deployment schedule .
%fleet SULEV Or Netter
%fleet ULEV
%flee[nan-SULEV/ULEV
Proposed fleetage
Pmpased fleet size
_ Existing SM 0ee[sixe
- -
3% 6 DNvertmining, testing, suPervlsion and - '- -
Ilje/heal N/tlbpblllry benefit plans.
Driver selection/training process
English language terting
Driver taining/re-training program
Oriveriife, health, disability plans and
operator's conMbuhon to plans
Employee life, health, dlsablliry Plans and '
o erator's contribution to Ions
3% 6 Opemtar/ddverflnantlal relatlonshlps
lnduding lepsing, Jeer, memberships
and all oNer relptlonshfps.
Lease/gate/membership/atherfees charged '
to vehicle owners/driven
Driver contribution to discounted fares
g% 36 0 erator's buslnaslocadon
tithe praposer's principal lacatlonin Santa
Monies?
ADDI s/ONAL ENNANCEMENiS 8Y
PROPOSER
TOTALPbipis'> P
~ ~ .,~ U: _. d .: :c:. .U° `...:-*'~`-- ...-.~.;IE d
z _:e. _ ~tl '....
R ."`3';-'
ms r
, D' _.."""
~
p. .-
~ .
0
Wei Zed. 'c'-
. Y. ': .
.::_: ?._ :..;w
c t _
''-' ~ ~
~ 7 -e ~ ~ ti
~ ~ -t. '. .a ~. ~
. _ . _ . ~ .._. ... .. ~.: s....,: .~ ._
ATTACHMENT D
TAXICAB FRANCHISE RFP -COMPOSITE SCORES
PROPOSER EVALUATER #1 EVALUATER #2 EVALUATER #3 EVALUATER #4 EVALUATER #5 COMPOSITE %
_Metro Cab Co. 163 .70 158. 50 150 .00 173. 20 145.00 158 .08 79. 04%
Yellow Cab 162 .00 149. 50 157 .00 158. 70 _
161.00 157 .64 78. 82%
Independent Cab Co. (ITOA) 148 .50 146. 00 149 .00 _
152. 80 128.00 144 .86 72. 43%
Bell Cab 138 .50 130. 50 145 .00 150. 50 157.00 144 .30 72. 15%
Taxi Taxi 128 .50 130. 50 _
126 .00 _
148. 60 143.00 135 .32 67. 66%
All Yellow Taxi Inc. _ 111 .50 147. 50 131 .00 136. 60 128.00 130 .92 65. 46%
Beverly Hills Cab Co. _ 118 .50 _ 125. 50 _
121 .00 126. 30 151.00 128 .46 64. 23%
San Gabriel Transit Inc./City Cab 105 .70 136. 00 118 .00 138. 60 123.00 124 :26 62. 13%
L.A.CheckerCab Co. 106 .50 116. 00 103 .00 _
121. 50 89.00 107 .20 53. 60%
S.M. Yellow Cab ___ 66 .00 99. 50 _
75 .00 104. 80 _
145.00 98 .06 49. 03%
Euro Taxi 80 .50 100. 50 86 .00 100. 10 85.00 90 .42 45. 21%
SMCCYe1lowCab 101 .50 115. 50 102 .00, 12. 05 71.00 80 .41 40. 21%
Lady's Yellow Cab dba Yellow United 43 .50 _
86. 50 29 .00'i 62. 80 37.00 51 .76 25. 88%
ATTACHMENT G
PROPOSED FRANCHISE ORDINANCES
19
City Council Meeting 11-09-2010 Santa Monica, California
ORDINANCE NUMBER (CCS)
(City Council Series)
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA
GRANTING A TAXICAB FRANCHISE TO BELL CAB COMPANY, INC.,
TO PROVIDE TAXICAB SERVICES IN THE. CITY OF SANTA MONICA
WHEREAS, on July 28, 2009, the City Council ("Council") of the City of Santa
Monica ("City") adopted Ordinance No. 2292 (CCS), establishing a taxicab franchise
system in order to assure reliable, safe, quality taxicab services in the City and to eliminate
undue congestion and air pollution, disorganization, and hazards associated with the City's
previous open-entry regulated taxicab environment; and
WHEREAS, City staff completed a competitive Request for Proposals process and
evaluated the submitted proposals in accordance with criteria consistent with the Santa
Monica Municipal Code, in order to provide Council with recommendations forthe award of
franchises to taxicab companies; and
WHEREAS, on October 12, 2010, Council adopted Resolution No. 10533 (CCS),
declaring its intent to grant taxicab franchises to Bell Cab Company, Inc.; Independent Taxi
Owners' Association (ITOA); Metro Cab Company, LLC; TMAT Corp., doing business as
Taxi! Taxi!; and L.A. Taxi Cooperative, Inc., doing business as Yellow Cab Company, and
setting a public hearing; and
WHEREAS, on November 9, 2010, Council held a public hearing in accordance with
City Charter Section 1601, at which all interested persons were given an opportunity to be
heard on all matters relative to the proposed granting of taxicab franchises; and
1
WHEREAS, based on the foregoing, Council finds that Bell Cab Compahy, Inc.,
possesses the background, knowledge, experience and expertise necessary to provide
efficient and effective taxicab services to the residents, visitors and other members of the
community in the City, so as to support the. granting of this Franchise to Bell Cab
Company, Inc., upon the terms and conditions set forth herein,
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA
DOES HEREBY ORDAIN AS FOLLOWS:
SECTION 1. DEFINITIONS. Unless it is apparent from the context that it has a
different meaning, each of the following words and phrases has the meaning stated in this
Section wherever it is used in this Franchise:
(a) CITY means the City of Santa Monica, a municipal corporation duly organized
and validly existing under the laws of the State of California with the power to carry on its
business as it is now being conducted under the statutes of the State of California and the
Charter of the City;
(b) CO-OPERATIVE, ASSOCIATION or MEMBERSHIP means an independent
taxicab enterprise or organization owned and operated by its Members for the financial
benefit of its Members. Each authorized taxicab fleet slot correlates to a share or
ownership in the Co-operative, Association or Membership;
(c) COUNCIL means the City Council of the City of Santa Monica;
(d) DEPARTMENT means the Police Department of the City;
(e) DRIVER/MANAGER means any Member of a co-operative, association or
membership Grantee, who drives, controls, and manages taxicabs for Grantee;
2
(f) GRANTEE means Bell Cab Company, Inc., a California corporation qualified
to do business in the State of California and to which this Franchise has. been granted;
(g) INVESTOR/SHAREHOLDER means any Member of a co-operative,
association or membership Grantee, who does not drive, control or manage taxicabs for
Grantee;
(h) LEASE DRIVER means a person who is an independent contractor
possessing a valid Taxicab Driver's Permit and who drives a taxicab for Grantee;
(i) MEMBER means any individual person or Subchapter S corporation, as
defined in the United States Internal Revenue Code Section 1361, who owns one or more
taxicabs or shares, but not more than the maximum number authorized by this Ordinance,
in Grantee. Only those individuals applying for Investor/Shareholder membership status
may apply as a Subchapter S corporation;
Q) STREETS means the public streets, roads, highways, freeways, lanes, alleys,
sidewalks or parkways which now exist or which may hereafter exist within the City;
(k) TAXICAB DRIVER means any person possessing a valid Taxicab Driver's
Permit driving and in immediate possession of a taxicab for the purpose of providing
taxicab transportation services in the City. A taxicab driver may be an employee of, a lease
driver of, or a Member of Grantee;
(I) TAXICAB DRIVER'S PERMIT means anon-transferable authorization for a
taxicab driver to provide taxicab transportation services in the City;
(m) TAXICAB FLEET means the total number of authorized taxicabs that is
managed and controlled completely by Grantee, and not by a Member of Grantee;
3
(n) TAXICAB RULES means the rules and regulations established for taxicab
operations in the City by the Department;
(o) TAXICAB VEHICLE PERMIT means anon-transferable authorization for a
specific taxicab to be driven or operated within the City for the purpose of providing taxicab
transportation services, whether as owner, lessor, lessee, or otherwise;
SECTION 2. GRANT OF FRANCHISE.
(a) Nature of Grant. The franchise hereby granted by City authorizes Grantee,
subject to all the terms and conditions contained in this Ordinance, the Santa Monica
Municipal Code, the Taxicab Rules, and all other applicable local, state, and federal law,
rules and regulations pertaining to taxicab operations, to provide taxicab transportation
services within the City, including picking up persons and property by taxicab within City
boundaries, transporting such persons and property for hire over any streets from within or
to the City, and standing taxicabs at designated taxicab stands within the City.
(b) Term of Franchise. This Franchise shall become effective on January 1,
2011, provided that Grantee has filed with the City Clerk, within 10 days after the adoption
of this Ordinance granting this Franchise, a written instrument, addressed to Council,
accepting and agreeing to comply with all the terms and conditions of this Franchise.
Failure to timely accept this Franchise as set forth in this Section may make this Franchise
null and void. This Franchise shall expire at 11:59 P.M., PST, on December 31, 2015,
unless revoked or terminated earlier by City, or unless extended by City in its sole and
absolute discretion.
4
(c) Suspension of Franchise. City may, afterdue notice and an opportunityto be
heard, suspend Grantee's operations under this Franchise for one or more days pursuant
to Santa Monica Municipal Code Section 6.49.050, under any of the following grounds:
(1) Material noncompliance with any term or condition of this Franchise,
the Santa Monica Municipal Code, Taxicab Rules, or other City orders or directives, when
such noncompliance has not been cured after reasonable written notice thereof and
opportunity to cure;
(2) Grantee accumulates penalty points in a specified period oftime in an
amount greater than the allowed threshold level as provided by resolution of Council
pursuant to Santa Monica Municipal Code Section 6.49.150;
(3) Grantee fails to pay any monetary penalties in accordance with the
procedures set forth in Santa Monica Municipal Code Section 6.49.150 and any resolutions
or schedules adopted thereto; or
(4) Any of the grounds set forth in Santa Monica Municipal Code Section
6.49.050.
Any suspension of Grantee's taxicab operations may affect any extension of the
term of this Franchise and may lead to assessment of monetary penalties in addition to or
as an alternative to suspension, or recommendation for revocation of this Franchise.
(d) Revocation and Termination of Franchise. City may, after due notice and an
opportunity to be heard, revoke and terminate Grantee's Franchise pursuant to Santa
Monica Municipal Code Section 6.49.050, under any of the following grounds:
(1) Grantee has illegally conducted any type of public transportation
operation within the City;
5
(2) Any term or condition of this Franchise becomes invalid or
unenforceable and Council expressly finds that such term or condition was a consideration
material to the grant of this Franchise;
(3) The public interest would be served by revocation and termination of
this Franchise; or
(4) Any of the grounds set forth in Santa Monica Municipal Code Section
6.49.050, subdivision (b).
(e) Cumulative Remedies. City's right to suspend, revoke or terminate this
Franchise pursuant to this Section are in addition to all other rights and remedies which
may otherwise accrue to City by reason of any failure or refusal of Grantee to perform any
obligation imposed by the terms and conditions of this Franchise.
SECTION 3. CONSTRUCTION OF FRANCHISE.
(a) Interpretation. Unless otherwise specified, the following terms govern the
interpretation and construction of this Franchise:
(1) The singular number includes the plural, and the plural number
includes the singular;
(2) Time is of the essence of this Franchise. Grantee will not be relieved
of its obligation to promptly comply with any provision of this Franchise by any failure of
City to enforce prompt compliance with the same or any other provisions;
(3) Any right or power conferred, or duly imposed upon, any officer,
employee, or department of City is subject to transfer by operation of law to any other
officer, employee, or department of City;
6
(4) Grantee will have no recourse whatsoever against City for any loss,
cost, expense, or damage arising out of any provision or requirement of this Franchise dr
the enforcement thereof;
(5) This Franchise does not relieve Grantee of any requirement ofthe City
Charter, the Santa Monica Municipal Code, or any local ordinance, rule, or regulation, other
than exceptions expressly set forth in this Franchise; and
(6) This Franchise does not constitute an exclusive grant of any right to
carry persons or property for hire within the City.
(b) Limitations upon Grantee.
(1) This Franchise does not grant or confer any privilege or exemption
upon Grantee except as otherwise specifically provided herein.
(2) This Franchise is a privilege to be held in personal trust by Grantee.
Grantee shall not sell, lease, assign, hypothecate, or otherwise transfer or dispose of this
Franchise or any interest herein directly or indirectly, by operation of law or otherwise,
without the prior written consent of City, expressed by ordinance, and then only under such
terms and conditions as may be prescribed therein. Any attempt to do so without City's
consent shall be null and void, and any purchaser, lessee, assignee, hypothecatee or
transferee shall acquire no right or interest by reason of such attempted sale, lease,
assignment, hypothecation or transfer. Any such sale, lease, assignment, or other
disposition of this Franchise shall be evidenced by a duly and jointly executed instrument in
writing addressed to Council and filed with the City Clerk. The sale, assignment, transfer
or other disposition of any of the issued and outstanding capital stock of Grantee or of any
general partner orjoint venturer or Member of Grantee, if a partnership orjoint venture or
7
membership exists, which shall result in changing the control of Grantee, shall be
construed as an assignment of this Franchise. Control means fifty percent (50%) or more
of the voting. power of the organization.
(c) Rights Reserved to City.
(1) There is reserved to City every right and power that is allowed or
provided by any provision of the City Charter and the Santa Monica Municipal Code, as
may be amended from time to time. Grantee, by its acceptance of this Franchise, agrees
to be bound by and to comply with any action or requirement of City in its exercise of any
such right or power
(2) Neither the granting of this Franchise nor any of its provisions shall
constitute a waiver or bar to the exercise of any governmental right or power of City.
SECTION 4. COMPENSATION.
(a) By its acceptance of this Franchise, Grantee agrees to pay to City all
applicable fees and payments, including the annual franchise fee, Taxicab Vehicle Permit
fee, and Taxicab Driver's Permit fee for each authorized taxicab in Grantee's taxicab fleet.
(b) Grantee, at its sole expense, shall obtain and maintain during the term of this
Franchise all required business and professional permits, licenses and certificates.
SECTION 5. TAXICAB FLEET.
(a) Fleet Size. Grantee is authorized by this Franchise to provide taxicab
services in the City through a taxicab fleet consisting of a maximum of 50 vehicles. The
8
number of vehicles authorized in Grantee's taxicab fleet shall be set until modified by
Council.
(b) Fleet Makeup -Wheelchair Accessible Vehicles. At least 5 of the authorized
taxicab fleet vehicles must be side-loading wheelchair accessible vehicles in compliance
with the Americans with Disabilities Act ("ADA") and Taxicab Rules. The City Manager or
his or her designee may require that Grantee increase the minimum number of wheelchair
accessible vehicles within its authorized taxicab fleet and may specify vehicle service
availability for general wheelchair accessible trips notwithstanding any existing contractual
arrangements.
(c) Operational Schedule.
(1) Except as otherwise provided in this Ordinance, within the first 5
months of the effective date of this Franchise, Grantee must place its taxicab fleet into
service as follows:
(i) Within the first month, at least 8 vehicles certified as Super
Ultra-Low Emission Vehicles ("SULEV") by the California Air Resources Board ("GARB"),
28 vehicles certified as Ultra-Low Emission Vehicles ("ULEV"), and 4side-loading
wheelchair accessible taxicabs;
(ii) Within the second month, at least 10 SULEV taxicabs, 28 ULEV
taxicabs, and 5side-loading wheelchair accessible taxicabs;
(iii) Within the third month, at least 13 SULEV taxicabs, 30 ULEV
taxicabs, and 5side-loading wheelchair accessible taxicabs;
(iv) Within the fourth month, at least 14 SULEV taxicabs, 31 ULEV
taxicabs, and 5side-loading wheelchair accessible taxicabs; and
9
(v) Within the fifth month, 16 SULEV taxicabs, 29 ULEV taxicabs,
and 5side-loading wheelchair accessible taxicabs.
(2) Grantee's taxicab fleet must be fully operational in accordance with
this Ordinance within 5 months of the effective date of this Franchise, unless otherwise
authorized in writing by the City Manager or his or her designee, in his or her sole and
absolute discretion. Thereafter, Grantee may, upon written application to and authorization
by the City Manager or his or her designee, adjust Grantee's taxicab fleet make-up. Any
adjusted fleet make-up must be consistent with Grantee's proposed fleet submitted in
Grantee's March 2010 response to the Request for Proposals issued in January 2010.
(d) Continuous Operation. After Grantee shall have established taxicab services
pursuant to this Franchise, Grantee must ensure that, except for necessary repairs, all its
taxicabs are available for service at all times, and such service may not be suspended or
abandoned unless such suspension or abandonment is authorized or ordered, in writing,
by the City.
(e) Request for Reduction in Taxicab Fleet. Whenever Grantee may file a written
application with the City Clerk alleging that the public convenience and necessity no longer
requires Grantee to furnish taxicab services with the number of vehicles authorized under
this Franchise, Council will take evidence at a public hearing upon that question and make
a finding with respect thereto. Notice of such hearing will be given for a period of at least
15 days prior thereto by posting such notice in each of Grantee's taxicabs; such notices, in
a form satisfactory to City, are to be posted by Grantee. If Council finds after the public
hearing that the public convenience and necessity no longer requires Grantee to furnish
taxicab services with the number of vehicles authorized underthis Franchise, Council may
10
authorize suspension or abandonment of such service upon such reasonable terms and
conditions as may be prescribed therein.
SECTION 6. OPERATIONS AND SERVICE -GENERAL.
(a) Compliance with Laws.
(1) All vehicles, equipment and appurtenances used underthis Franchise
shall be operated and maintained in accordance with applicable local, state and federal
laws, rules and regulations. Grantee is responsible forthe compliance of its Members and
drivers, whether employees, lease drivers, or otherwise, with all such laws, ordinances,
rules and regulations.
(2) The number of taxicabs, the manner and time of taxicab operations,
the transportation service provided, and the rates or fares charged, shall at all times
conform to such rules and regulations as may from time to time be fixed or prescribed by
the Department or City.
(b) Supervision. Grantee shall .provide 24-hour road and office supervision.
(c) Discount Reimbursement. Grantee shall reimburse its drivers the amount of
the discount on taxicab fares required to be provided to seniors and passengers with
disabilities, as set 6y resolution of Council.
(d) Complaint Resolution Procedure. Grantee shall establish a procedure,
subject to City approval, for the review and resolution of complaints from the public and
violations of company rules and Taxicab Rules by Grantee's officers, Members,
employees, and drivers. Grantee shall provide to City a monthly summary of the numberof
public complaints received.
11
(e) Management Personnel Information. Grantee shall provide to City, and keep
current, a list of the following:
(1) The Board of Directors and officers;
(2) All Members, by class of membership and the number of shares held
by each Member,
(3) All management and administrative personnel and theirjob titles; and
(4) All lease and employee drivers.
(f) Management Personnel. Grantee shall have full-time management, subject
to City approval, which approval shall not be unreasonably withheld, to direct activities of
the organization. City may review management credentials and background experience of
management personnel, including a criminal history and fingerprint check. Responsibilities
include, but are not limited to, establishing, maintaining and reporting the taxicab
operations and records; collecting and paying applicable fees; conducting day to day
activities, including but not limited to managing and operating the taxicab fleet;
representing Grantee in disputes and discussions between regulatory agencies and
Grantee, its drivers and Members; and adhering to Grantee's Management/Business Plan.
Management is not precluded from membership or ownership in Grantee.
(g) Management/Business Plan ("Plan"1. Grantee shall submit annually to City
for City approval a Plan as set forth herein and in the Taxicab Rules. The Plan shall
establish Grantee's approach and methods to be used in meeting the requirements of this
Franchise, the Santa Monica Municipal Code, the Taxicab Rules, and City, state and
federal law, rules and regulations. The Plan will be used as the basis for evaluating
Grantee's capability to provide taxicab services in accordance with the service demands of
12
the public and City standards. Any specific sub-items and components under each Plan
category will be supplied by City, as may be amended from time to time. Minimum
categories to be addressed in the Plan include:
(1) Grantee Organizational Structure and Procedures;
(2) Mahagement/Administrative Structure and Procedures;
(3) Financial Status and Related Information;
(4) Dispatch and Communications -Description of Facilities, Personnel
and Technology;
(5) Operating Location(s), Storage/Parking of Vehicles, Maintenance and
Inspection -Description of Facilities and Personnel;
(6) Programs and Activities for Driver Training, Testing, Supervision and
Social Benefits;
(7) Vehicle Maintenance and Inspection;
(8) Procedures for Maintaining Service Levels, Programs forAddressing
Service Deficiencies;
(g) Service/Operation Procedures for Discipline, Driver Evaluation,
Complaint Processing and Accident/Safety Control;
(10) Special Programs, Agreements and Services;.
(11) Record Keeping; and
(12) Grantee's Plan Evaluation & Response to Changes or Additions.
Grantee shall comply with its Plan at all times. City may review Grantee's adherence to the
Plan at any time as deemed necessary by City.
13
SECTION 7. OPERATIONS AND SERVICE -TAXICABS.
(a) Taxicab Vehicle Permits. Grantee is responsible for paying the annual
taxicab vehicle permit fee for all taxicabs in its fleet, in accordance with the fee specified by
resolution of Council, as of the effective date of this Franchise. Taxicab vehicle permits
expire each June 30th thereafter, and Grantee is responsible for paying the annual taxicab
vehicle permit fees and obtaining annual taxicab vehicle permits for all taxicabs in its fleet
in accordance with Santa Monica Municipal Code Section 6.49.040(1)(2).
(b) Taxicab Operations. All taxicabs used by Grantee within the City must be
operated in accordance with, and Grantee shall not permit anytaxicab to be driven which is
in violation of, this Franchise, the Santa Monica Municipal Code, and Taxicab Rules.
(c) Registration and Acquisition of Vehicles. All taxicabs operated under this
Franchise must be registered to either Grantee or a Member of Grantee. Taxicabs must
either be owned by Grantee, a Member, a commercial lending agency, or leased from a
licensed leasing agency whose primary business is the sale or leasing of vehicles. Any
taxicab utilized by Grantee which is owned by it or one of its Members shall have been
acquired by way of bona fide purchase, lease, or other transaction approved by the City.
Grantee or Member shall submit to City, upon request, the method utilized for vehicle
acquisition. Members may sell ortransfer a share ortaxicab underthese same provisions.
(d) General Vehicle Maintenance and Repairs. Grantee shall, at its sole
expense, monitor and be responsible for all maintenance, repair, and replacement of
Grantee's and any driver/manager Member's managed taxicabs. Preventive maintenance
must be performed at least in accordance with manufacture recommendations for each
14
taxicab. A copy of maintenance inspection reports, including any repair documentation,
shall be filed with City.
(e) Age of Vehicles. No taxicab fleet vehicle authorized by this Franchise shall
be in excess of the years of age set forth in the Taxicab Rules unless otherwise authorized
in writing by City in its sole and absolute discretion.
(f) Off-Street Parking Facilities. Grantee shall provide garaging or other off-street
parking facilities within one-half mile of its main. operating location(s), or as specified by the
City, where Grantee's taxicabs are to be parked when not in service or when not being
repaired or when not in the possession of a taxicab driver. Grantee shall have sufficient
vehicle parking capacity within the main operating location(s) or the garaging oroff-street
parking facilities to meet the requirements for Grantee's operations, including but not
limited to vehicle inspection and maintenance, administrative functions, and training.
SECTION 8. OPERATIONS AND SERVICE -DRIVERS.
(a) Authorized Drivers. Grantee shall not issue or dispatch any taxicab operated
on behalf of this Franchise to any driver who is in violation of any terms of this Franchise,
the Santa Monica Municipal Code, Taxicab Rules, or any other applicable law, rule or
regulation.
(b) Taxicab Driver's Permits. Grantee is responsible for paying the annual
taxicab driver's permit fee for all its taxicab drivers, in accordance with the fee specified by
resolution of Council, as of the effective date of this Franchise. Taxicab driver's permits
expire each June 30th thereafter and Grantee is responsible for paying the annual taxicab
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driver's permit fees and obtaining annual taxicab driver's permits for all its taxicab drivers in
accordance with Santa Monica Municipal Code Section 6.49.070(e).
(c) Work Shifts. Drivers must check in with Grantee at the beginning and end of
each shift, and such activity shall be recorded by Grantee. Grantee must maintain daily
logs to indicate the vehicle and driver assignments for each shift at all times. Grantee or a
driver/manager Member shall make all such assignments. Grantee shall issue and collect
waybills in the manner and within the time limits established by the Taxicab Rules.
Grantee shall review waybills upon collection to ascertain that the required information is
fully and accurately provided.
(d) Independent Contractor Drivers. Grantee and its driver/manager Members
are authorized to provide taxicab services through a contracting or leasing type of
operation with an independent contractor driver. No independent contractor driver may
subcontract or sublease the vehicle, or the right to operate the vehicle, to another person.
All contracting or leasing arrangements shall be evidenced in writing and subject to City
approval. Such lease contract shall provide for the collection and documentation of lease
fees by Grantee and driver/manager Members. The lease contract shall not be instituted or
changed without City approval. The independent contractor driver shall not use a taxicab
as the driver's personal vehicle within the City except when driving to orfrom the beginning
or ending of a work shift. Grantee shall maintain current files of all lease contracts in a
central location, filed by driver, to verify compliance with these requirements.
(e) Training-Program. Grantee shall provide a comprehensive screening, testing
and training program for all its drivers, including independent contractor drivers. The
training program, including curriculum and delivery, must be approved by City and must
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include City and state. rules and regulations; geography, including map reading, major
points of interest in the City, and familiarity with the City and surrouhding areas; driver
safety and defensive driving; vehicle safety and maintenance/inspection checks; customer
service and relations; sensitivity guidelines for disabled, frail and elderly passengers;
behind the wheel driver training; and accessible vehicle operation training and CPR
certification or equivalent for accessible vehicle drivers. City may authorize or require
additional training program components, a change in delivery of program components, or a
training facilitator or program outside of Grantee's program at Grantee's or driver's cost if
City deems such change will best serve the public interest.
(f) Drug and Alcohol Testing. Grantee is responsible for scheduling pre-
employment and pre-permitting driver drug and alcohol testing and for enrolling all current
drivers in a mandatory controlled substance and alcohol testing certification program as
mandated by California Government Code Section 53075.5, and which follows program
components and testing requirements of the Federal Code of Regulations, Title 49, Part 40
and. Part 382, as amended. Testing shall be conducted as a condition for initial driver
permit authorization. Annual testing shall be conducted as a condition for permit renewal.
Random testing may be conducted and additional tests may be required, including post
accident testing, rehabilitation and return-to-service testing, and reasonable suspicion
testing. Drivers must show a valid California driver's license at the time and place of
testing.
Grantee shall contract with a consultant (program administrator) and authorized lab
approved under the Federal Register to facilitate the program and shall provide a copy of
the contracts to City. Test results shall be provided to Grantee as the employing entity.
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Information shall be supplied to City pertaining to any positive test results and shall include
driver name, identifying information, and driver permit status, including any entry into a
rehabilitation program. Specific driver test results shall remain confidential, on file by driver
with Grantee, but testing information, including date of annual test and random test, and
positive or negative results, shall be available for City's review. Cost of testing shall be the
driver's responsibility, if the driver is an independent contractor of Grantee, or Grantee's
responsibility, if the driver is an employee.
In accordance with the Federal Code of Regulations, Grantee's certification program
must include information regarding the controlled substance .and alcohol use policy and
procedures as well as educational materials made available to all drivers and other
pertinent staff. Grantee or its authorized agency must advise drivers of the resources
available to them to resolve problems associated with misuse of alcohol and controlled
substances. Materials for education and company policies must be made available to all
current and potential drivers and a signed statement of their receipt shall be in every
permitted driver's file and retained by Grantee.
Grantee shall train supervisory personnel in accordance with federal guidelines in
order to determine. whether reasonable suspicion exists to require a driver to undergo
additional testing. Grantee shall use custody and control forms similar to that used under
the federal testing guidelines. Any changes in the federal program guidelines or other state
mandates will be considered by City for modification to Grantee's program.
(g) Social Benefits Programs. Grantee shall comply with all applicable local,
state and federal rules, regulations and statutes concerning mandated social benefits
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programs for employees. It shall be the sole responsibility of Grantee to determine whether
legislation concerning these social benefits applies to Grantee's operations.
SECTION 9. OPERATIONSAND SERVICE- DISPATCH, COMMUNICATION AND
SERVICE REPORTING.
(a) Radio Frequencies. Grantee shall have authorized usage of an FCC-
assigned radio frequency(s) and shall maintain the capability of two-way voice radio
communication in working order in each taxicab operating within the City under the
authorized frequency(s). Grantees operating within the same areas of the City must use
separate frequencies within the same areas. Grantee shall notify the City in writing of such
frequency(s) to be used in all areas of the City.
(b) Computer Dispatch System and Order Data. Grantee shall implement and
maintain a computer dispatch system capable of digital data communication and
geographically identifying each service call. The computer dispatch record keeping system
must also be capable of determining who is driving a particular taxicab at any time.
Grantee shall record and store service data using computer dispatch time stamping for
each telephonic or other equivalent call received and include time call was received, time
of order reservation, time of order acceptance by driver, time of arrival at service location,
time of taximeter activation, time of taximeter deactivation, and length of trip in miles.
Grantee shall provide total telephonic or other equivalent service order data to the
City monthly, within the first week of the following month in which data was collected, in a
transfer and data format as prescribed by the City. This requirement does not preclude City
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personnel from reviewing Grantee's dispatch records via a modem or equivalent
connection and browsing or retrieving information.
Grantee shall also supply summary monthly data reports from telephonic or other
equivalent service calls as prescribed by the City, and as may be changed from time to
time by the City, with minimum reporting requirements required at the beginning of this
Franchise to include service response data summaries by the following categories: service
area; vehicle; wheelchair accessible vehicle; and wheelchair accessible vehicle, for
wheelchair accessible requested trips, aggregated for all vehicles in service. Each of the
foregoing categories will include the total number of trips separated into response
categories, including response time up to 15 minutes, between 16 and 30 minutes,
between 31 and 60 minutes, greater than 60 minutes, and no show or no load.
City may require that trips completed through requests from outside contracts or
agreements be reported separately.
Response time is defined as the period of time from dispatch of the fare (when the
trip is first offered or designated by dispatcher) to activation of the taximeter as denoted in
the dispatch record. Arrival time may be used in lieu of taximeter activation if the taxicab is
equipped with an automatic vehicle location system that can identify and verify in the
dispatch record that the vehicle was within one-quarter (1/4) mile of the arrival target, or as
otherwise defined, established and authorized by the City.
Grantee shall have 6 months from the effective date of this Franchise to establish
computer dispatch including communication with each vehicle's digital mobile data system
and reporting to the City, unless the City Manager or his or her designee authorizes an
extension of time in writing.
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(c) Telephonic Service Order Response Data. Grantee shall provide a
computeri2ed method or telephone company switching program to obtain information
pertaining to telephonic or other equivalent order response. The system must be capable
of identifying and storing information pertaining to each call received, including the length
of time required to answerthe call and the length of time each call was placed on hold, if at
all.
Grantee shall provide total telephonic or other equivalent service order response
data to the City monthly, within the first week of the following month in which data was
collected, in a transfer and data format as prescribed by the City.
Grantee shall also supply summary monthly data reports aggregated from total
telephonic or other equivalent service order response data, as prescribed by the City, with
minimum reporting requirements required at the beginning of the Franchise to include:
(1) Total number of telephonic or other equivalent service calls received;
(2) Total number of telephonic or other equivalent service calls answered
in more than 45 seconds; and
(3) Total number of telephonic or other equivalent service calls placed on
hold longer than two minutes during any period of the reservation process.
(d) Statistical Operating Data. Grantee shall provide summary statistical
operating data to the City monthly in written form pertaining to all taxicabs and types of
service requests provided within the City. Summary data shall include at minimum the total
number of all trips provided, total miles driven, total paid miles driven, total gross revenue
received, total shifts assigned, and total number of telephonic or other equivalent service
orders received. City may in its discretion direct Grantee to supply additional information.
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SECTION 10. INSPECTION OF PROPERTY AND RECORDS.
(a) At all reasonable times at the City's request, Grantee shall permit any
authorized officer, employee or agent of the City to inspect all property of Grantee, and to
examine and transcribe any and all books, accounts, papers, maps, and other records kept
or maintained by Grantee with respect to Grantee's operations, affairs, transactions,
property or financial condition. If any of the books, accounts, papers, maps, or other
records referenced in this Section are kept outside the City and the City determines that an
examination of such materials is necessary or appropriate, then all travel and maintenance
expenses necessarily incurred in making such examination shall be paid by Grantee.
(b) Grantee shall prepare and furnish to the City, at all times and in the form
prescribed by the City, such data with respect to Grantee's operations, affairs, transactions,
property orfinancial condition as may be reasonably necessary or appropriate. Requested
data may include but is not limited to: membership, lease driver, and employee records;
waybills; maintenance records; financial statements; insurance policies; taxicab fleet
schedules; dispatch records; vehicle records; affirmative action records; and contracts.
(c) Failure to comply with any City request for any information may in the City's
sole and absolute discretion result in temporary suspension of Grantee's operations.
(d) All records shall be maintained in accordance with generally accepted
accounting principles and clearly identified and readily accessible. Representatives of City
or its designees shall be allowed free access to Grantee's books and records, and have the
rights to examine, audit and make transcripts therefrom as necessary, and inspect all work,
data, documents, proceedings and activities related to this Franchise.
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SECTION 11. INSURANCE REQUIREMENTS.
(a) In accordance with the requirements of the Santa Monica Municipal Code
and Taxicab Rules, Grantee shall procure and at all times maintain an insurance policy
covering all vehicles operating under this Franchise. Insurance premiums must be paid in
advance for a minimum six-month period. Any vehicle operating without the required
coverage shall be considered under suspension, regardless ofwhetherthe City is aware of
the lack of coverage.
(b) Grantee shall obtain comprehensive general liability insurance, to include
contractual liability, in such amounts as the City Risk Manager may from time to time
require, insuring against any claims arising out of the activities of Grantee and its
Members, employees and drivers.
(c) Grantee shall file evidence of insurance with the City, along with proof of
payment of the minimum six-month premium, in such form as required by and subject to
the approval of the City Risk Manager, prior to the commencement of operations underthis
Franchise. Grantee shall maintain such evidence on file with the City throughout the term
of this Franchise.
(d) Grantee's failure to procure and maintain the required insurance shall
constitute a material breach of contract under which the City may immediately suspend or
revoke and terminate this Franchise. Monetary penalties may also be assessed.
(e) Grantee shall submit to the City a quarterly summary of all taxicab accidents
including date of accident, driver name and identifying information, and vehicle number.
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The City may direct Grantee to supply additional information or specify a form for such
reporting.
SECTION 12. INDEMNIFICATION, DEFENSE, HOLD HARMLESS. Exceptforthe
sole and active negligence or willful misconduct of the City, Grantee agrees to defend,
indemnify and hold harmless City (including but not limited to the City's departments,
members of its Council, boards and commissions, officials, officers, agents, employees,
volunteers, assigns, and successors in interest) from and against all suits and causes of
action, claims, losses, demands and expenses, including but not limited to: attorney's fees
and cost of litigation; damage or liability of any nature whatsoever; death or injury to any
person, including Grantee and any of Grantee's Members, employees and agents; or
damage or destruction of any property of either party hereto or of third parties, arising in
any manner by reason of, or incident to, the performance of this Franchise on the part of
Grantee or subcontractor of any tier.
Grantee shall give the City prompt and timely written notice of any claim made or
suit instituted coming to Grantee's knowledge which may in any way directly or indirectly,
contingently or otherwise, affect either party, and both shall have the right to participate in
the defense of same to the extent of its own interest. Approval of insurance policies by the
City shall in noway affect or change the terms and conditions of this indemnity agreement.
SECTION 13. NONDISCRIMINATION. Grantee shall not discriminate in its
membership or employment practices against any Member or employee or applicant for
membership or employment, and shall not discriminate in providing taxicab services under
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this Franchise, because of race, color, religion, national origin, ancestry, sex, age, sexual
orientation, marital status, medical cohdition, HIV/AIDS or disability, and shall comply with
the requirements of City, state and federal law, rules and regulations.
SECTION 14. WAIVER. A waiver by City of any breach of any term, covenant, or
condition contained in this Franchise shall not be deemed to be a waiver of any
subsequent breach of the same or any other term,. covenant, or condition contained in
Franchise.
SECTION 15. MONETARY PENALTIES FOR VIOLATIONS OF FRANCHISE
ORDINANCE TERMS AND CONDITIONS. The City may levy a monetary penalty on
Grantee forfailure to abide by the terms and conditions of this Franchise, as an alternative
to, or in addition to, suspension of this Franchise. Any of the following activities constitute
a violation of the terms and conditions of this Franchise and may subject Grantee to a
monetary penalty. The City's monetary assessment for a second, third and subsequent
offense, as noted in the schedule herein, shall only be applied to the same offense.
(a) Failure to submit to the City any requested or required information as
specified in this Ordinance.
(b) Fraudulent reporting to the City of any requested or required information,
including any tampering of files, data, or reports necessary to provide the required
information.
(c) Operation of unlicensed or unauthorized vehicles as taxicabs in the City,
including but not limited to the operation of previously approved taxicabs with suspended,
25
canceled or revoked vehicle permits and the use of vehicles licensed as taxicabs only in
other jurisdictions.
(d) Conducting any illegal or unauthorized type of publictransportation operation.
(e) Unauthorized sale, lease, assignment, or other disposition of this Franchise.
(f) Falsification of or failure to inform membership/share ownership changes.
(g) Operation of a taxicab without approved insurance on file with the City.
(h) Failure to timely submit required taxicab insurance documents to the City.
(i) Failure to provide taxicab preventive maintenance service.
(j) Failure to provide drivers, Members or personnel with training as specified in
this Ordinance or as detailed in Grantee's Plan.
(k) Failure to adhere to the policies and procedures in Grantee's Plan.
(I) Failure to provide City personnel access to Grantee's property and records.
The City may levy the following schedule of monetary penalties for these violations
against Grantee:
(a) Up to $10,000 for the first offense.
(b) Up to $25,000 for the second offense within a 12-month period.
(c) Up to a maximum of $50,000 for third and subsequent offenses within
subsequent 12-month periods.
Monetary penalties imposed pursuant to the foregoing schedule are subject to the
hearing procedure specified in Santa Monica Municipal Code Section 6.49.150, as may be
amended from time to time.
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SECTION 16. REQUIREMENTS OF A CO-OPERATIVE, ASSOCIATION OR
MEMBERSHIP ORGANIZATION. If Grantee is a membership organization, the following
restrictions apply:
(a) The number of Members and shares shall each be limited to the total number
of taxicabs authorized for Grantee underthis Franchise. Joint Memberships are prohibited.
(b) Members shall be limited to owning a maximum of five percent (5%) of the
total taxicabs and shares authorized for Grantee with the maximum figure determined by
rounding the number of vehicles and shares equivalent to five percent (5%) of the fleet to
the nearest whole number
(c) An InvestorlShareholder Member shall not drive, control or manage any
taxicab in Grantee. All taxicabs owned by an Investor/Shareholder shall be controlled and
managed completely by Grantee, on the Investor/Shareholder's behalf, pursuantto a City-
approved contract, between the Investor/Shareholder and .Grantee. The
Investor/Shareholder shall have no control over or perform any function for a taxicab under
the control of Grantee other than being the registered owner of the taxicab.
(d) A Driver/Manager Member may not control or manage more than 3 taxicabs
in Grantee. All taxicabs owned by a Driver/Manager in excess of 3 and any others that the
Member does not control or manage shall be classified as Investor/Shareholder
memberships and shall be controlled and managed completely by Grantee, on the
Member's behalf, pursuant to aCity-approved contract, between the Member and Grantee.
Grantee shall ensure that all Driver/Manager Members comply with all City laws, rules and
regulations and this Ordinance relating to the number of vehicles managed.
27
(e) Members must qualify for a Taxicab Vehicle Permit under the current
standards established by the City.
(f) If any Taxicab Vehicle Permit is revoked, any Driver/Manager Member who
was the cause of such revocation or cancellation will be subject to revocation or
cancellation of his or her Taxicab Driver's Permit and will be precluded from operating a
taxicab or exercising any other rights granted by such Taxicab Driver's Permit. Any
Driver/Manager Member whose Taxicab Driver's Permit is revoked or canceled must
convert all Driver/Manager memberships into Investor/Shareholder memberships or
transfer membership and any other taxicabs owned by the Member shall be operated,
controlled and managed by Grantee on the Member's behalf, pursuant to aCity-approved
contract, between the Member and Grantee.
(g) Grantee shall ensure that each Driver/Manager Member is aware of and
complies with any requirement of the City regarding the filing of an annual profit and loss
statement. Grantee shall submit the required statistical information quarterly or as directed
by the City.
(h) Grantee shall require all Members to enter into a security agreement, subject
to City approval, as a condition of membership in Grantee. By such agreement, the
Member grants to Grantee a security interest in the Member's taxicabs to ensure the
Member's compliance with his or her obligations as a Member.
(i) Grantee shall establish a procedure for the approval, transfer, and sale of
memberships and a procedure for dismissal of Members. Grantee shall provide information
to each Member pertaining to the Member's role in the organization, the City and the
28
taxicab industry, basic record keeping and reporting requirements, the City's rules and
regulations, and any other information required by the City.
Q) All agreements, including any security or membership agreements, and all
contracts, including those under which the co-operative operates vehicles on behalf of its
Members, that affect the method by which taxicabs are operated or service is provided,
shall be subject to review and approval by the City.
(k) Grantee shall obtain vehicle liability insurance for all vehicles in the taxicab
fleet; contract with lease drivers for all vehicles in the taxicab fleet; provide maintenance for
all vehicles in the taxicab fleet; provide a computer dispatch service; collect and maintain
all records, including waybills, pertinent to its taxicab operations; collect vehicle lease fees
for vehicles in the taxicab fleet; notify Driver/Manager Members and drivers of violations
and hearings; and make all vehicle and driver assignments forvehicles it controls on behalf
of Members.
SECTION 17. 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
29
declared invalid or unconstitutional without regard to whether any portion of the ordinance
would be subsequently declared invalid or unconstitutional.
SECTION 18. 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
newspaper within 15 days after its adoption. This Ordinance shall become effective 30
days from its adoption.
APPROVED AS TO FORM:
~~ ~u
MA SHA O ES MOU ~2IE
City ttor ey
30
City Council Meeting 11-09-2010 Santa Monica, California
ORDINANCE NUMBER (CCS)
(City Council Series)
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA
GRANTING A TAXICAB FRANCHISE TO INDEPENDENT TAXI OWNERS'
ASSOCIATION, TO PROVIDE TAXICAB SERVICES IN
THE CITY OF SANTA MONICA
WHEREAS, on July 28, 2009, the City Council ("Council") of the City of Santa
Monica ("City") adopted Ordinance No. 2292 (CCS), establishing a taxicab franchise
system in order to assure reliable, safe, quality taxicab services in the City and to eliminate
undue congestion and air pollution, disorganization, and hazards associated with the City's
previous open-entry regulated taxicab environment; and
WHEREAS, City staff completed a competitive Request for Proposals process and
evaluated the submitted proposals in accordance with criteria consistent with the Santa
Monica Municipal Code, in orderto provide Council with recommendations forthe award of
franchises to taxicab companies; and
WHEREAS, on October 12, 2010, Council adopted Resolution No. 10533 (CCS),
declaring its intent to grant taxicab franchises to Bell Cab Company, Inc.; Independent Taxi
Owners' Association ("ITOA"); Metro Cab Company, LLC; TMAT Corp., doing business as
Taxi! Taxi!; and L.A. Taxi Cooperative, Inc., doing business as Yellow Cab Company, and
setting a public hearing; and
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WHEREAS, on November 9, 2010, Council held a public hearing in accordance with
City Charter Section 1601, atwhich all interested persons were given an opportunity to be
heard on all matters relative to the proposed granting of taxicab franchises; and
WHEREAS, based on the foregoing, Council finds that Independent Taxi Owners'
Association, possesses the background, knowledge, experience and expertise necessary
to provide efficient and effective taxicab services to the residents, visitors and other
.members of the community in the City, so as to support the granting of this Franchise to
Independent Taxi Owners' Association, upon the terms and conditions set forth herein,
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA
DOES HEREBY ORDAIN AS FOLLOWS:
SECTION 1. DEFINITIONS. Unless it is apparent from the context that it has a
different meaning, each of the following words and phrases has the meaning stated in this
Section wherever it is used in this Franchise:
(a) CITY means the City of Santa Monica, a municipal corporation duly organized
and validly existing under the laws of the State of California with the power to carry on its
business as it is now being conducted under the statutes of the State of California and the
Charter of the City;
(b) CO-OPERATIVE, ASSOCIATION or MEMBERSHIP means an independent
taxicab enterprise or organization owned and operated by its Members for the financial
benefit of its Members. Each authorized taxicab fleet slot correlates to a share or
ownership in the Co-operative, Association or Membership;
(c) COUNCIL means the City Council of the City of Santa Monica;
(d) DEPARTMENT means the Police Department of the City;
2
(e) DRIVER/MANAGER means any Member of a co-operative, association or
membership Grantee, who drives, controls, and manages taxicabs for Grantee;
(f) GRANTEE means Independent Taxi Owners' Association, an association
qualified to do business in the State of California and to which this Franchise has been
granted;
(g) INVESTOR/SHAREHOLDER means any Member of a co-operative,
association or membership Grantee, who does not drive, control or manage taxicabs for
Grantee;
(h) LEASE DRIVER means a person who is an independent contractor
possessing a valid Taxicab Driver's Permit and who drives a taxicab for Grantee;
(i) MEMBER means any individual person or Subchapter S corporation, as
defined in the United States Internal Revenue Code Section 1361, who owns one or more
taxicabs or shares, but not more than the maximum number authorized by this Ordinance,
in Grantee. Only those individuals applying for Investor/Shareholder membership status
may apply as a Subchapter S corporation;
(j) STREETS means the public streets, roads, highways, freeways, lanes, alleys,.
sidewalks or parkways which now exist or which may hereafter exist within the City;
(k) TAXICAB DRIVER means any person possessing a valid Taxicab Driver's
Permit driving and in immediate possession of a taxicab for the purpose of providing
taxicab transportation services in the City. A taxicab driver may be an employee of, a lease
driver of, or a Member of Grantee;
(I) TAXICAB DRIVER'S PERMIT means anon-transferable authorization for a
taxicab driver to provide taxicab transportation services in the City;
3
(m) TAXICAB FLEET means the total number of authorized taxicabs that is
managed and controlled completely by Grantee, and not by a Member of Grantee;
(n) TAXICAB RULES means the rules and regulations established for taxicab
operations in the City by the Department;
(o) TAXICAB VEHICLE PERMIT means anon-transferable authorization for a
specific taxicab to be driven or operated within the City for the purpose of providing taxicab
transportation services, whether as owner, lessor, lessee, or otherwise;
SECTION 2. GRANT OF FRANCHISE.
(a) Nature of Grant. The franchise hereby granted by City authorizes Grantee,
subject to all the terms and conditions contained in this Ordinance, the Santa Monica
Municipal Code, the Taxicab Rules, and all other applicable local, state, and federal law,
rules and regulations pertaining to taxicab operations, to provide taxicab transportation
services within the City, including picking up persons and property by taxicab within City
boundaries, transporting such persons and property for hire over any streets from within or
to the City, and standing taxicabs at designated taxicab stands within the City.
(b) Term of Franchise. This Franchise shall become effective on January 1,
2011, provided that Grantee has filed with the City Clerk, within 10 days after the adoption
of this Ordinance granting this Franchise, a written instrument, addressed to Council,
accepting and agreeing to comply with all the terms and conditions of this Franchise.
Failure to timely accept this Franchise as set forth in this Section may make this Franchise
null and void. This Franchise shall expire at 11:59 P.M., PST, on December 31, 2015,
4
unless revoked or terminated earlier by City, or unless extended by City in its sole and
absolute discretion.
(c) Suspension of Franchise. City may, after due notice and an opportunity to be
heard, suspend Grantee's operations under this Franchise for one or more days pursuant
to Santa Monica Municipal Code Section 6.49.050, under any of the following grounds:
(1) Material noncompliance with any term or condition of this Franchise,
the Santa Monica Municipal Code, Taxicab Rules, or other City orders or directives, when
such noncompliance has not been cured after reasonable written notice thereof and
opportunity to cure;
(2) Grantee accumulates penalty points in a specified period of time in an
amount greater than the allowed threshold level as provided by resolution of Council
pursuant to Santa Monica Municipal Code Section 6.49.150;
(3) Grantee fails to pay any monetary penalties in accordance with the
procedures set forth in Santa Monica Municipal Code Section 6.49.150 and any resolutions
or schedules adopted thereto; or
(4) Any of the grounds set forth in Santa Monica Municipal Code Section
6.49.050.
Any suspension of Grantee's taxicab operations may affect any extension of the
term of this Franchise and may lead to assessment of monetary penalties in addition to or
as an alternative to suspension, or recommendation for revocation of this Franchise.
(d) Revocation and Termination of Franchise. City may, after due notice and an
opportunity to be heard, revoke and terminate Grantee's Franchise pursuant to Santa
Monica Municipal Code Section. 6.49.050, under any of the following grounds:
5
(1) Grantee has illegally conducted any type of public transportation
operation within the City;
(2) Any term or condition of this Franchise becomes invalid or
unenforceable and Council expressly finds that such term or condition was a consideration
material to the grant of this Franchise;
(3) The public interest would be served by revocation and termination of
this Franchise; or
(4) Any of the grounds set forth in Santa Monica Municipal Code Section
6.49.050, subdivision (b).
(e) Cumulative Remedies. City's right to suspend, revoke or terminate this
Franchise pursuant to this Section are in addition to all other rights and remedies which
may otherwise accrue to City by reason of any failure or refusal of Grantee to perform any
obligation imposed by the terms and conditions of this Franchise.
SECTION 3. CONSTRUCTION OF FRANCHISE.
(a) Interpretation. Unless otherwise specified, the following terms goverh the
interpretation and construction of this Franchise:
(1) The singular number includes the plural, and the plural number
includes the singular;
(2) Time is of the essence of this Franchise. Grantee will not be relieved
of its obligation to promptly comply with any provision of this Franchise by any failure of
City to enforce prompt compliance with the same or any other' provisions;
6
(3) Any right or power conferred, or duly imposed upon, any officer,
employee, or department of City is subject to transfer by operation of law to any other
officer, employee, or department of City;
(4) Grantee will have no recourse whatsoever against City for any loss,
cost, expense, or damage arising out of any provision or requirement of this Franchise or
the enforcement thereof;
(5) This Franchise does not relieve Grantee of any requirement of the City
Charter, the Santa Monica Municipal Code, or any local ordinance, rule, or regulation, other
than exceptions expressly set forth in this Franchise; and
(6) This Franchise does not constitute an exclusive grant of any right to
carry persons or property for hire within the City.
(b) Limitations upon Grantee.
(1) This Franchise does not grant or confer any privilege or exemption
upon Grantee except as otherwise specifically provided herein.
(2) This Franchise is a privilege to be held in personal trust by Grantee.
Grantee shall not sell, lease, assign, hypothecate, or otherwise transfer or dispose of this
Franchise or any interest herein directly or indirectly, by operation of law or otherwise,
without the priorwritten consent of City, expressed by ordinance, and then only undersuch
terms and conditions as may be prescribed therein. Any attempt to do so without City's
consent- shall be null and void, and any purchaser, lessee, assignee, hypothecatee or
transferee shall acquire no right or interest by reason of such attempted sale, lease,
assignment, hypothecation or transfer. Any such sale, lease, assignment, or other
disposition of this Franchise shall be evidenced by a duly and jointly executed instrument in
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writing addressed to Council and filed with the City Clerk. The sale, assignment, transfer
or other disposition of any of the issued and outstanding capital stock of Grantee or of any
general partner or joint venturer or Member of Grantee, if a partnership or joint venture or
membership exists, which shall result in changing the control of Grantee, shall be
construed as an assignment of this Franchise. Control means fifty percent (50%) or more
of the voting power of the organization.
(c) Rights Reserved to City.
(1} There is reserved to City every right and power that is allowed or
provided by any provision of the City Charter and the Santa Monica Municipal Code, as
may be amended from time to time. Grantee, by its acceptance of this Franchise, agrees
to be bound by and to comply with any action or requirement of City in its exercise of any
such right or power.
(2) Neither the granting of this Franchise nor any of its provisions shall
constitute a waiver or bar to the exercise of any governmental right or power of City.
SECTION 4. COMPENSATION.
(a) By its acceptance of this Franchise, Grantee agrees to pay to City all
applicable fees and payments, including the annual franchise fee, Taxicab Vehicle Permit
fee, and Taxicab Driver's Permit fee for each authorized taxicab in Grantee's taxicab fleet.
(b) Grantee, at its sole expense, shall obtain and maintain during the term of this
Franchise all required business and professional permits, licenses and certificates.
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SECTION 5. TAXICAB FLEET.
(a) Fleet Size. Grantee is authorized by this Franchise to provide taxicab
services in the City through a taxicab fleet consisting of a maximum of 50 vehicles. The
number of vehicles authorized in Grantee's taxicab fleet shall be set until modified by
Council.
(b) Fleet Makeup -Wheelchair Accessible Vehicles. At least 5 of the authorized
taxicab fleet vehicles must be side-loading wheelchair accessible vehicles in compliance
with the Americans with Disabilities Act ("ADA") and Taxicab Rules. The City Manager or
his or her designee may require that Grantee increase the minimum number of wheelchair
accessible vehicles within its authorized taxicab fleet and may specify vehicle service
availability for general wheelchair accessible trips notwithstanding any existing contractual
arrangements.
(c) Operational Schedule.
(1) Except as otherwise provided in this Ordinance, within the first month
of the effective date of this Franchise, Grantee must place 45 vehicles certified as Super
Ultra-Low Emission Vehicles ("SULEV") by the California Air Resources Board ("GARB"),
and 5side-loading wheelchair accessible taxicabs, into service.
(2) Grantee's taxicab fleet must be fully operational in accordance with
this Ordinance within the first month of the effective date of this Franchise, unless
otherwise authorized in writing by the City Manager or his or her designee, in his or her
sole and absolute discretion. Thereafter, Grantee may, upon written application to and
authorization by the City Manager or his or her designee, adjust Grantee's taxicab fleet
make-up. Any adjusted fleet make-up must be consistent with Grantee's proposed fleet
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submitted in Grantee's March 2010 response to the Request for Proposals issued in
January 2010.
(d) Continuous Operation. After Grantee shall have established taxicab services
pursuant to this Franchise, Grantee must ensure that, except for necessary repairs, all its
taxicabs are available for service at all times, and such service may not be suspended or
abandoned unless such suspension or abandonment is authorized or ordered, in writing,
by the City.
(e) Request for Reduction in Taxicab Fleet. Whenever Grantee may file a written
application with the City Clerk alleging that the public convenience and necessity no longer
requires Grantee to furnish taxicab services with the number of vehicles authorized under
this Franchise, Council will take evidence at a public hearing upon that question and make
a finding with respect thereto. Notice of such hearing will be given for a period of at least
15 days prior thereto by posting such notice in each of Grantee's taxicabs; such notices, in
a form satisfactory to City, are to be posted by Grantee. If Council finds after the public
hearing that the public convenience and necessity no longer requires Grantee to furnish
taxicab services with the number of vehicles authorized under this Franchise, Council may
authorize suspension or abandonment of such service upon such reasonable terms and
conditions as may be prescribed therein.
SECTION 6. OPERATIONS AND SERVICE -GENERAL.
(a) Compliance with Laws.
(1) All vehicles, equipment and appurtenances used underthis Franchise
shall be operated and maintained in accordance with applicable local, state and federal
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laws, rules and regulations. Grantee is responsible for the compliance of its Members and
drivers, whether employees, lease drivers, or otherwise, with all such laws, ordinances,
rules and regulations.
(2) The number of taxicabs, the manner and time of taxicab operations,
the transportation service provided, and the rates or fares charged, shall at all times
conform to such rules and regulations as may from time to time be fixed or prescribed by
the Department or City.
(b) Supervision. Grantee shall provide 24-hour road and office supervision.
(c) Discount Reimbursement. Grantee shall reimburse its drivers the amount of
the discount on taxicab fares required to be provided to seniors and passengers with
disabilities, as set by resolution of Council.
(d) Complaint Resolution Procedure. Grantee shall establish a procedure,
subject to City approval, for the review and resolution of complaints from the public and
violations of company rules and Taxicab Rules by Grantee's officers, Members,
employees, and drivers. Grantee shall provide to City a monthly summary of the number of
public complaints received.
(e) Management Personnel Information. Grantee shall provide to City, and keep
current, a list of the following:
(1) The Board of Directors and officers;
(2) All Members, by class of membership and the number of shares held
by each Member;
(3) All management and administrative personnel and theirjob titles; and
(4) All lease and employee drivers.
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(f) Management Personnel. Grantee shall have full-time management, subject
to City approval, which approval shall not be unreasonably withheld, to direct activities of
the organization. City may review management credentials and background experience of
management personnel, including a criminal history and fingerprint check. Responsibilities
include, but are not limited to, establishing, maintaining and reporting the taxicab
operations and records; collecting and paying applicable fees; conducting day to day
activities, including but not limited to managing and operating the taxicab fleet;
representing Grantee in disputes and discussions between regulatory agencies and
Grantee, its drivers and Members; and adhering to Grantee's ManagemenUBusiness Plan.
Management is not precluded from membership or ownership in Grantee.
(g) ManagemenUBusiness Plan ("Plan"). Grantee shall submit annually to City
for City approval a Plan as set forth herein and in the Taxicab Rules. The Plan shall
establish Grantee's approach and methods to be used in meeting the requirements of this
Franchise, the Santa Monica Municipal Code, the Taxicab Rules, and City, state and
federal law, rules and regulations. The Plan will be used as the basis for evaluating
Grantee's capability to provide taxicab services in accordance with the service demands of
the public and City standards. Any specific sub-items and components under each Plan
category will be supplied by City, as may be amended from time to time. Minimum
categories to be addressed in the Plan include:
(1) Grantee Organizational Structure and Procedures;
(2) ManagemenUAdministrative Structure and Procedures;
(3) Financial Status and Related Information;
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(4) Dispatch and Communications -Description of Facilities, Personnel
and Technology;
(5) Operating Location(s), Storage/Parking of Vehicles, Maintenance and
Inspection -Description of Facilities and Personnel;
(6) Programs and Activities for Driver Training, Testing, Supervision and
Social Benefits;
(7) Vehicle Maintenance and Inspection;
(8) Procedures for Maintaining Service Levels, Programs forAddressing
Service Deficiencies;
(9) Service/Operation Procedures for Discipline, Driver Evaluation,
Complaint Processing and Accident/Safety Control;
(10) Special Programs, Agreements and Services;
(11) Record Keeping; and
(12) Grantee's Plan Evaluation & Response to Changes or Additions.
Grantee shall comply with its Plan at all times. City may review Grantee's adherence to the
Plan at any time as deemed necessary by City.
SECTION 7. OPERATIONS AND SERVICE -TAXICABS.
(a) Taxicab Vehicle Permits. Grantee is responsible for paying the annual
taxicab vehicle permit fee for all taxicabs in its fleet, in accordance with the fee specified by
resolution of Council, as of the effective date of this Franchise. Taxicab vehicle permits
expire each June 30th thereafter, and Grantee is responsible for paying the annual taxicab
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vehicle permit fees and obtaining annual taxicab vehicle permits for all taxicabs in its fleet
in accordance with Santa Monica Municipal Code Section 6.49.040(1)(2).
(b) Taxicab Operations. All taxicabs used by Grantee within the City must be
operated in accordance with, and Grantee shall not permit anytaxicab to be driven which is
in violation of, this Franchise, the Santa Monica Municipal Code, and Taxicab Rules.
(c) Registration and Acquisition of Vehicles. All taxicabs operated under this
Franchise must be registered to either Grantee or a Member of Grantee. Taxicabs must
either be owned by Grantee, a Member, a commercial lending agency, or leased from a
licensed leasing agency whose primary business is the sale or leasing of vehicles. Any
taxicab utilized by Grantee which is owned by it or one of its Members shall have been
acquired by way of bona fide purchase, lease, or other transaction approved by the City.
Grantee or Member shall submit to City, upon request, the method utilized for vehicle
acquisition. Members may sell or transfer a share ortaxicab under these same provisions.
(d) General Vehicle Maintenance and Repairs. Grantee shall, at its sole
expense, monitor and be responsible for all maintenance, repair, and replacement of
Grantee's and any driver/manager Member's managed taxicabs. Preventive maintenance
must be performed at least in accordance with manufacture recommendations for each
taxicab. A copy of maintenance inspection reports, including any repair documentation,
shall be filed with City.
(e) Age of Vehicles. No taxicab fleet vehicle authorized by this Franchise shall
be in excess of the years of age set forth in the Taxicab Rules unless otherwise authorized
in writing by City in its sole and absolute discretion.
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(f) Off-Street Parking Facilities. Grantee shall provide garaging or other off-street
parking facilities within one-half mile of its main operating location(s), or as specified by the
City, where Grantee's taxicabs are to be parked when not in service or when not being
repaired or when not in the possession of a taxicab driver. Grantee shall have sufficient
vehicle parking capacity within the main operating location(s) or the garaging or off-street
parking facilities to meet the requirements for Grantee's operations, including but not
limited to vehicle inspection and maintenance, administrative functions, and training.
SECTION 8. OPERATIONS AND SERVICE -DRIVERS.
(a) Authorized Drivers. Grantee shall not issue or dispatch any taxicab operated
on behalf of this Franchise to any driver who is in violation of any terms of this Franchise,
the Santa Monica Municipal Code, Taxicab Rules, or any other applicable law, rule or
regulation.
(b) Taxicab. Driver's Permits. Grantee is responsible for paying the annual
taxicab driver's permit fee for all its taxicab drivers, in accordance with the fee specified by
resolution of Council, as of the effective date of this Franchise. Taxicab driver's permits
expire each June 30th thereafter and Grantee is responsible for paying the annual taxicab
driver's permit fees and obtaining annual taxicab driver's permits forall its taxicab drivers in
accordance with Santa Monica Municipal Code Section 6.49.070(e).
(c) Work Shifts. Drivers must check in with Grantee at the beginning and end of
each shift, and such activity shall be recorded by Grantee. Grantee must maintain daily
logs to indicate the vehicle and driver assignments for each shift at all times. Grantee or a
driver/manager Member shall make all such assignments. Grantee shall issue and collect
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waybills in the manner and within the time limits established by the Taxicab Rules.
Grantee shall review waybills upon collection to ascertain that the required information is
fully and accurately provided.
(d) Independent Contractor Drivers. Grantee and its driver/manager Members
are authorized to provide taxicab services through. a contracting or leasing type of
operation with an independent contractor driver. No independent contractor driver may
subcontract or sublease the vehicle, or the right to operate the vehicle, to another person.
All contracting or leasing arrangements shall be evidenced in writing and subject to City
approval. Such lease contract shall provide for the collection and documentation of lease
fees by Grantee and driver/manager Members. The lease contract shall not be instituted or
changed without City approval. The independent contractor driver shall not use a taxicab
as the driver's personal vehicle within the City except when driving to orfrom the beginning
or ending of a work shift. Grantee shall maintain current files of all lease contracts in a
central location, filed by driver, to verify compliance with these requirements.
(e) Training Program. Grantee shall provide a comprehensive screening, testing
and training program for all its drivers, including independent contractor drivers. The
training program, including curriculum and delivery, must be approved by City and must
include City and state rules and regulations; geography, including map reading, major
points of interest in the City, and familiarity with the City and surrounding areas; driver
safety and defensive driving; vehicle safety and maintenance/inspection checks; customer
service and relations; sensitivity guidelines for disabled, frail and elderly passengers;
behind the wheel driver training; and accessible vehicle operation training and CPR
certification or equivalent for accessible vehicle drivers. City may authorize or require
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additional training program components, a change in delivery of program components, or a
training facilitator or program outside of Grantee's program at Grantee's or driver's cost if
City deems such change will best serve the public interest.
(f) Drug and Alcohol Testing. Grantee is responsible for scheduling pre-
employment and pre-permitting driver drug and alcohol testing and for enrolling all current
drivers in a mandatory controlled substance and alcohol testing certification program as
mandated by California Government Code Section 53075.5, and which follows program
components and testing requirements of the Federal Code of Regulations, Title 49, Part 40
and Part 382, as amended. Testing shall be conducted as a condition for initial driver
permit authorization. Annual testing shall be conducted as a condition for permit renewal.
Random testing may be conducted and additional tests may be required, including post
accident testing, rehabilitation and return-to-service testing, and reasonable suspicion
testing. Drivers must show a valid California driver's license at the time and place of
testing.
Grantee shall contractwith a consultant (program administrator) and authorized lab
approved under the Federal Register to facilitate the program and shall provide a copy of
the contracts to City. Test results shall be provided to Grantee as the employing entity.
Information shall be supplied to City pertaining to any positive test results and shall include
.driver name, identifying information, and driver permit status, including any entry into a
rehabilitation program. Specific drivertest results shall remain confidential, on file by driver
with Grantee, but testing information, including date of annual test and random test, and
positive or negative results, shall be available for City's review. Cost of testing shall be the
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driver's responsibility, if the driver is an independent contractor of Grantee, or Grantee's
responsibility, if the driver is an employee.
In accordance with the Federal Code of Regulations, Grantee's certification program
must include information regarding the controlled substance and alcohol use policy and
procedures as well as educational materials made available to all drivers and other
pertinent staff. Grantee or its authorized agency must advise drivers of the resources
available to them to resolve problems associated with misuse of alcohol and controlled
substances. Materials for education and company policies must be made available to all
current and potential drivers and a signed statement of their receipt shall be in every
permitted driver's file and retained by Grantee.
Grantee shall train supervisory personnel in accordance with federal guidelines in
order to determine whether reasonable suspicion exists to require a driver to undergo
additional testing. Grantee shall use custody and control forms similar to that used under
the federal testing guidelines. Any changes in the federal program guidelines or otherstate
mandates will be considered by City for modification to Grantee's program.
(g) Social Benefits Programs. Grantee shall comply with all applicable local,
state and federal rules, regulations and statutes concerning mandated social benefits
programs for employees. It shall be the sole responsibility of Grantee to determine whether
legislation concerning these social benefits applies to Grantee's operations.
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SECTION 9. OPERATIONS AND SERVICE -DISPATCH, COMMUNICATION AND
SERVICE REPORTING.
(a) Radio Frequencies. Grantee shall have authorized usage of an FCC-
assigned radio frequency(s) and shall maintain the capability of two-way voice radio
communication in working order in each taxicab operating within the City under the
authorized frequency(s). Grantees operating within the same areas of the City must use
separate frequencies within the same areas. Grantee shall notify the City in writing of such
frequency(s) to be used in all areas of the City.
(b) Computer Dispatch System and Order Data. Grantee shall implement and
maintain a computer dispatch system capable of digital data communication and
geographically identifying each service call. The computer dispatch record keeping system
must also be capable of determining who is driving a particular taxicab at any time.
Grantee shall record and store service data using computer dispatch time stamping for
each telephonic or other equivalent call received and include time call was received, time
of order reservation, time of order acceptance by driver, time of arrival at service location,
time of taximeter activation, time of taximeter deactivation, and length of trip in miles.
Grantee shall provide total telephonic or other equivalent service order data to the
City monthly, within the first week of the following month in which data was collected, in a
transfer and data format as prescribed by the City. This requirement does not preclude City
personnel from reviewing Grantee's dispatch records via a modem or equivalent
connection and browsing or retrieving information.
Grantee shall also supply summary monthly data reports from telephonic or other
equivalent service calls as prescribed by the City, and as-may be changed from time to
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time by the City, with minimum reporting requirements required at the beginning of this
Franchise to include service response data summaries by the following categories: service
area; vehicle; wheelchair accessible vehicle; and wheelchair accessible vehicle, for
wheelchair accessible requested trips, aggregated for all vehicles in service. Each of the
foregoing categories will include the total number of trips separated into response
categories, including response time up to 15 minutes, between 16 and 30 minutes,
between 31 and 60 minutes, greater than 60 minutes, and no show or no load.
City may require that trips completed through requests from outside contracts or
agreements be reported separately.
Response time is defined as the period of time from dispatch of the fare (when the
trip is first offered or designated by dispatcher) to activation of the taximeter as denoted in
the dispatch record. Arrival time may be used in lieu of taximeter activation if the taxicab is
equipped with an automatic vehicle location system that can identify and verify in the
dispatch record that the vehicle was within one-quarter (1/4) mile of the arrival target, or as
otherwise defined, established and authorized by the City.
Grantee shall have 6 months from the effective date of this Franchise to establish
computer dispatch including communication with each vehicle's digital mobile data system
and reporting to the City, unless the City Manager or his or her designee authorizes an
extension of time in writing.
(c) Telephonic Service Order Response Data. Grantee shall provide a
computerized method or telephone company switching program to obtain information
pertaining to telephonic or other equivalent order response. The system must be capable
of identifying and storing information pertaining to each call received, including the length
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of time required to answer the call and the length of time each call was placed on hold, if at
all.
Grantee shall provide total telephonic or other equivalent service order response
data to the City monthly, within the first week of the following month in which data was
collected, in a transfer and data format as prescribed by the City.
Grantee shall also supply summary monthly data reports aggregated from total
telephonic or other equivalent service order response data, as prescribed by the City, with
minimum reporting requirements required at the beginning of the Franchise to include:
(1) Total number of telephonic or other equivalent service calls received;
(2) Total number of telephonic or other equivalent service calls answered
in more than 45 seconds; and
(3) Total number of telephonic or other equivalent service calls placed on
hold longer than two miriutes during any period of the reservation process.
(d) Statistical Operating Data. Grantee shall provide summary statistical
operating data to the City monthly in written form pertaining to all taxicabs and types of
service requests provided within the City. Summary data shall include at minimum the total
number of all trips provided, total miles driven, total paid miles driven, total gross revenue
received, total shifts assigned, and total number of telephonic or other equivalent service
orders received. City may in its discretion direct Grantee to supply additional information.
SECTION 10. INSPECTION OF PROPERTY AND RECORDS.
(a) At all reasonable times at the City's request, Grantee shall permit any
authorized officer, employee or agent of the City to inspect all property of Grantee, and to
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examine and transcribe any and all books, accounts, papers, maps, and other records kept
or maintained by Grantee with respect to Grantee's operations, affairs, transactions,
property or financial condition. If any of the books, accounts, papers, maps, or other
records referenced in this Section are kept outside the City and the City determines that an
examination of such materials is necessary or appropriate, then all travel and maintenance
expenses necessarily incurred in making such examination shall be paid by Grantee.
(b) Grantee shall prepare and furnish to the City, at all times and in the form
prescribed by the City, such data with respect to Grantee's operations, affairs, transactions,
property orfinancial condition as may be reasonably necessary or appropriate. Requested
data may include but is not limited to: membership, lease driver, and employee records;
waybills; maintenance records; financial statements; insurance policies; taxicab fleet
schedules; dispatch records; vehicle records; affirmative action records; and contracts.
(c) Failure to comply with any City request for any information may in the City's
sole and absolute discretion result in temporary suspension of Grantee's operations.
(d) All records shall be maintained in accordance with generally accepted
accounting principles and clearly identified and readily accessible. Representatives ofCity
or its designees shall be allowed free access to Grantee's books and records, and have the
rights to examine, audit and make transcripts therefrom as necessary, and inspect all work,
data, documents, proceedings and activities related to this Franchise.
SECTION 11. INSURANCE REQUIREMENTS.
(a) In accordance with the requirements of the Santa Monica Municipal Code
and Taxicab Rules, Grantee shall procure and at all times maintain an insurance policy
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covering all vehicles operating under this Franchise. Insurance premiums must be paid in
advance for a minimum six-month period. Any vehicle operating without the required
coverage shall be considered under suspension, regardless ofwhetherthe City is aware of
the lack of coverage.
(b) Grantee shall obtain comprehensive general liability insurance., to include
contractual liability, in such amounts as the City Risk Manager may from time to time
require, insuring against any claims arising out of the activities of Grantee and its
Members, employees and drivers.
(c) Grantee shall file evidence of insurance with the City, along with proof of
payment of the minimum six-month premium, in such form as required by and subject to
the approval of the City Risk Manager, prior to the commencement of operations under this
Franchise. Grantee shall maintain such evidence on file with the City throughout the term
of this Franchise.
(d) Grantee's failure to procure and maintain the required insurance shall
constitute a material breach of contract under which the City may immediately suspend or
revoke and terminate this Franchise. Monetary penalties may also be assessed.
(e) Grantee shall submit to the City a quarterly summary of all taxicab accidents
including date of accident, driver name and identifying information, and vehicle number.
The City. may direct Grantee to supply additional information or specify a form for such
reporting.
SECTION 12. INDEMNIFICATION, DEFENSE, HOLD HARMLESS. Exceptforthe
sole and active negligence or willful misconduct of the City, Grantee agrees to defend,
23
indemnify and hold harmless City (including but not limited to the City's departments,
members of its Council, boards and commissions, officials, officers, agents, employees,
volunteers, assigns, and successors in interest) from and against all suits and causes of
action, claims, losses, demands and expenses, including but not limited to: attorney's fees
and cost of litigation; damage or liability of any nature whatsoever; death or injury to any
person, including Grantee and any of Grantee's Members, employees and agents; or
damage or destruction of any property of either party hereto or of third parties, arising in
any manner by reason of, or incident to, the performance of this Franchise on the part of
Grantee or subcontractor of any tier.
Grantee shall give the City prompt and timely written notice of any claim made or
suit instituted coming to Grantee's knowledge which may in any way directly or indirectly,
contingently or otherwise, affect either party, and both shall have the right to participate in
the defense of same to the extent of its own interest. Approval of insurance policies by the
City shall in noway affect or change the terms and conditions of this indemnity agreement.
SECTION 13. NONDISCRIMINATION. Grantee shall not discriminate in its
membership or employment practices against any Member or employee or applicant for
membership or employment, and shall not discriminate in providing taxicab services under
this Franchise, because of race, color, religion, national origin, ancestry, sex, age, sexual
orientation, marital status, medical condition, HIV/AIDS or disability, and shall comply with
the requirements of City, state and federal law, rules and regulations.
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SECTION 14. WAIVER. A waiver by City of any breach of any term, covenant, or
condition contained in this Franchise shall not be deemed to be a waiver of any
subsequent breach of the same or any other term, covenant, or condition contained in
Franchise.
SECTION 15. MONETARY PENALTIES FOR VIOLATIONS OF FRANCHISE
ORDINANCE TERMS AND CONDITIONS. The City may levy a monetary penalty on
Grantee for failure to abide by the terms and conditions of this Franchise, as an alternative
to, or in addition to, suspension of this Franchise. Any of the following activities constitute
a violation of the terms and conditions of this Franchise and may subject Grantee to a
monetary penalty. The City's monetary assessment for a second, third and subsequent
offense, as noted in the schedule herein, shall only be applied to the same offense.
(a) Failure to submit to the City any requested or required information as
specified in this Ordinance.
(b) Fraudulent reporting to the City of any requested or required information,
including any tampering of files, data, or reports necessary to provide the required
information.
(c) Operation of unlicensed or unauthorized vehicles as taxicabs in the City,
including but not limited to the operation of previously approved taxicabs with suspended,
canceled or revoked vehicle permits and the use of vehicles licensed as taxicabs only in
other jurisdictions.
(d) Conducting any illegal or unauthorized type of publictransportation operation.
(e) Unauthorized sale, lease, assignment, or other disposition of this Franchise.
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(f) Falsification of or failure to inform membership/share ownership changes.
(g) Operation of a taxicab without approved insurance on file with the City.
(h) Failure to timely submit required taxicab insurance documents to the City.
(i) Failure to provide taxicab preventive maintenance service.
(j) Failure to provide drivers, Members or personnel with training as specified in
this Ordinance or as detailed in Grantee's Plan.
(k) Failure to adhere to the policies and procedures in Grantee's Plan.
(I) Failure to provide City personnel access to Grantee's property and records.
The City may levy the following schedule of monetary penalties for these violations
against Grantee:
(a) Up to $10,000 for the first offense.
(b) Up to $25,000 for the second offense within a 12-month period.
(c) Up to a maximum of $50,000 for third and subsequent offenses within
subsequent 12-month periods.
Monetary penalties imposed pursuant to the foregoing schedule are subject to the
hearing procedure specified in Santa Monica Municipal Code Section 6.49.150, as maybe
amended from time to time.
SECTION 16. REQUIREMENTS OF A CO-OPERATIVE, ASSOCIATION OR
MEMBERSHIP ORGANIZATION. If Grantee is a membership organization, the following
restrictions apply:
(a) The number of Members and shares shall each be limited to the total number
of taxicabs authorized for Grantee underthis Franchise. Joint Memberships are prohibited.
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(b) Members shall be limited to owning a maximum of five percent (5%) of the
total taxicabs and shares authorized for Grantee with the maximum figure determined by
rounding the number of vehicles and shares equivalent to five percent (5%) of the fleet to
the nearest whole number.
(c) Ah Investor/Shareholder Member shall not drive, control or manage any
taxicab in Grantee. All taxicabs owned by an Investor/Shareholder shall be controlled and
managed completely by Grantee, on the Investor/Shareholder's behalf, pursuant to a City-
approved contract, between the Investor/Shareholder and Grantee. The
Investor/Shareholder shall have no control over or perform any function for a taxicab under
the control of Grantee other than being the registered owner of the taxicab.
(d) A Driver/Manager Member may not control or manage more than 3 taxicabs
in Grantee. All taxicabs owned by a Driver/Manager in excess of 3 and any others that the
Member does not control or manage shall be classified as Investor/Shareholder
memberships and shall be controlled and managed completely by Grantee, on the
Member's behalf, pursuant to aCity-approved contract, between the Member and Grantee.
Grantee shall ensure that all Driver/Manager Members comply with all City laws, rules and
regulations and this Ordinance relating to the number of vehicles managed.
(e) Members must qualify for a Taxicab Vehicle Permit under -the current
standards established by the City.
(f) If any Taxicab Vehicle Permit is revoked, any Driver/Manager Member who
was the cause of such revocation or cancellation will be subject to revocation or
cancellation of his or her Taxicab Driver's Permit and will be precluded from operating a
taxicab or exercising any other rights granted by such Taxicab Driver's Permit. Any
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Driver/Manager Member whose Taxicab Driver's Permit is revoked or canceled must
convert all Driver/Manager memberships into Investor/Shareholder memberships or
transfer membership and any other taxicabs owned by the Member shall be operated,
controlled and managed by Grantee on the Member's behalf, pursuant to aCity-approved
contract, between the Member and Grantee.
(g) Grantee shall ensure that each Driver/Manager Member is aware of and
complies with any requirement of the City regarding the filing of an annual profit and loss
statement. Grantee shall submit the required statistical information quarterly or as directed
by the City.
(h) Grantee shall require all Members to enter into a security agreement, subject
to City approval, as a condition of membership in Grantee. By such agreement, the
Member grants to Grantee a security interest in the Member's taxicabs to ensure the
Member's compliance with his or her obligations as a Member.
(i) Grantee shall establish a procedure for the approval, transfer, and sale of
memberships and a procedure fordismissal of Members. Grantee shall provide information
to each Member pertaining to the Member's role in the organization, the City and the
taxicab industry, basic record keeping and reporting requirements, the City's rules and
regulations, and any other information required by the City.
(j) All agreements, including any security or membership agreements, and all
contracts, including those under which the co-operative operates vehicles on behalf of its
Members, that affect the method by which taxicabs are operated or service is provided,
shall be subject to review and approval by the City.
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(k) Grantee shall obtain vehicle liability insurance for all vehicles in the taxicab
fleet; contract with lease drivers for all vehicles in the taxicab fleet; provide maintenance for
all vehicles in the taxicab fleet; provide a computer dispatch service; collect and maintain
all records, including waybills, pertinent to its taxicab operations; collect vehicle lease fees
for vehicles in the taxicab fleet; notify Driver/Manager Members and drivers of violations
and hearings; and make all vehicle and driver assignments for vehicles it controls on behalf
of Members.
SECTION 17. 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 18. 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
newspaper within 15 days after its adoption. This Ordinance shall become effective 30
days from its adoption.
APP VEj~ TO FORM:
j/ ~
MA SH J NES UTRIE
City Attor y
29
City Council Meeting 11-09-2010 Santa Monica, California
ORDINANCE NUMBER (CCS)
(City Council Series)
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA
GRANTING A TAXICAB FRANCHISE TO METRO CAB COMPANY, LLC, TO
PROVIDE TAXICAB SERVICES IN THE CITY OF SANTA MONICA
WHEREAS, on July 28, 2009, the City Council ("Council") of the City of Santa
Monica ("City") adopted Ordinance No. 2292 (CCS), establishing a taxicab franchise
system in order to assure reliable, safe, quality taxicab services in the City and to eliminate
undue congestion and air pollution, disorganization, and hazards associated with the City's
previous open-entry regulated taxicab environment; and
WHEREAS, City staff completed a competitive Request for Proposals process and
evaluated the submitted proposals in accordance with criteria consistent with the Santa
Monica Municipal Code, in orderto provide Council with recommendations forthe award of
franchises to taxicab companies; and
WHEREAS, on October 12, 2010, Council adopted Resolution No. 10533 (CCS),
declaring its intent to grant taxicab franchises to Bell Cab Company, Inc.; Independent Taxi
Owners' Association (ITOA); Metro Cab Company, LLC; TMAT Corp., doing business as
Taxi! Taxi!; and L.A. Taxi Cooperative, Inc., doing business as Yellow Cab Company, and
setting a public hearing; and
WHEREAS, on November 9, 2010, Council held a public hearing in accordance with
City Charter Section 1601; at which all interested persons were given an opportunity to be
heard on all matters relative to the proposed granting of taxicab franchises; and
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WHEREAS, based on the foregoing, Council finds that Metro Cab Company, LLC,
possesses the background, knowledge, experience and expertise necessary to provide
efficient and effective taxicab services to the residents, visitors and other members of the
community in the City, so as to support the granting of this Franchise to Metro Cab
Company, LLC, upon the terms and conditions set forth herein,
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA
DOES HEREBY ORDAIN AS FOLLOWS:
SECTION 1. DEFINITIONS. Unless it is apparent from the context that it has a
different meaning, each of the following words and phrases has the meaning stated in this
Section wherever it is used in this Franchise:
(a) CITY means the City of Santa Monica, a municipal corporation duly organized
and validly existing under the laws of the State of California with the power to carry on its
business as it is now being conducted under the statutes of the State of California and the
Charter of the City;
(b) CO-OPERATIVE, ASSOCIATION or MEMBERSHIP means an independent
#axicab enterprise or organization owned and operated by its Members for the financial
benefit of its Members. Each authorized taxicab fleet slot correlates to a share or
ownership in the Co-operative, Association or Membership;
(c) COUNCIL means the City Council of the City of Santa Monica;
(d) DEPARTMENT means the Police Department of the City;
(e) DRIVER/MANAGER means any Member of a co-operative, association or
membership Grantee, who drives, controls, and manages taxicabs for Grantee;
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(f) GRANTEE means Metro Cab Company, LLC, a California limited liability
company qualified to do business in the State of California and to which this Franchise has
been granted;
(g) INVESTORlSHAREHOLDER means any Member of a co-operative,
association or membership Grantee, who does not drive, control or manage taxicabs for
Grantee;
(h) LEASE DRIVER means a person who is an independent contractor
possessing a valid Taxicab Driver's Permit and who drives a taxicab for Grantee;
(i) MEMBER means any individual person or Subchapter S corporation, as
defined in the United States Internal Revenue Code Section 1361, who owns one or more
taxicabs or shares, but not more than the maximum number authorized by this Ordinance,
in Grantee. Only those individuals applying for Investor/Shareholder membership status
may apply as a Subchapter S corporation;
(j) STREETS means the public streets, roads, highways, freeways, lanes, alleys,
sidewalks or parkways which now exist or which may hereafter exist within the City;
(k) TAXICAB DRIVER means any person possessing a valid Taxicab Driver's
Permit driving and in immediate possession of a taxicab for the purpose of providing
taxicab transportation services in the City. A taxicab driver may be an employee of, a lease
driver of, or a Member of Grantee;
(I) TAXICAB DRIVER'S PERMIT means anon-transferable authorization for a
taxicab driver to provide taxicab transportation services in the City;
(m) TAXICAB FLEET means the total number of authorized taxicabs that is
managed and controlled completely by Grantee, and not by a Member of Grantee;
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(n) TAXICAB RULES means the rules and regulations established for taxicab
operations in the City by the Department;
(o) TAXICAB VEHICLE PERMIT means anon-transferable authorization fora
specific taxicab to be driven or operated within the City forthe purpose of providing taxicab
transportation services, whether as owner, lessor, lessee, or otherwise;
SECTION 2. GRANT OF FRANCHISE.
(a) Nature of Grant. The franchise hereby granted by City authorizes Grantee,
subject to all the terms and conditions contained in this Ordinance, the Santa Monica
Municipal Code, the Taxicab Rules, and all other applicable local, state, and federal law,
rules and regulations pertaining to taxicab operations, to provide taxicab transportation
services within the City, including picking up persons and property by taxicab within City
boundaries, transporting such persons and property for hire over any streets from within or
to the City, and standing taxicabs at designated taxicab stands within the City..
(b) Term of Franchise. This Franchise shall become effective on January 1,
2011, provided that Grantee has filed with the City Clerk, within 10 days after the adoption
of this Ordinance granting this Franchise, a written instrument, addressed to Council,
accepting and agreeing to comply with all the terms and conditions of this Franchise.
Failure to timely accept this Franchise as set forth in this Section may make this Franchise
null and void. This Franchise shall expire at 11:59 P.M., PST, on December 31, 2015,
unless. revoked or terminated earlier by City, or unless extended by City in its sole and
absolute discretion.
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(c) Suspension of Franchise. City may, after due notice and an opportunity to be
heard, suspend Grantee's operations under this Franchise for one or more days pursuant
to Santa Monica Municipal Code Section 6.49.050, under any of the following grounds:
(1) Material noncompliance with any term or condition of this Franchise,
the Santa Monica Municipal Code, Taxicab Rules, or other City orders or directives, when
such noncompliance has not been cured after reasonable written notice thereof and
opportunity to cure;
(2) Grantee accumulates penalty points in a specified period of time in an
amount greater than the allowed threshold level as provided by resolution of Council
pursuant to Santa Monica Municipal Code Section 6.49.150;
(3) Grantee fails to pay any monetary penalties in accordance with the
procedures set forth in Santa Monica Municipal Code Section 6.49.150 and any resolutions
or schedules adopted thereto; or
(4) Any of the grounds set forth in Santa Monica Municipal Code Section
6.49.050.
Any suspension of Grantee's taxicab operations may affect any extension of the
term of this Franchise and may lead to assessment of monetary penalties in addition to or
as an alternative to suspension, or recommendation for revocation of this Franchise.
(d) Revocation and Termination of Franchise. City may, after due notice and an
opportunity to be heard, revoke and terminate Grantee's Franchise pursuant to Santa
Monica Municipal Code Section 6.49.050, under any of the following grounds:
(1) Grantee has illegally conducted any type of public transportation
operation within the City;
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(2) Any term or condition of this Franchise becomes invalid or
unenforceable and Council expressly finds that such term or condition was a consideration
material to the grant of this Franchise;
(3) The public interest would be served by revocation and termination of
this Franchise; or
(4) Any of the grounds set forth in Santa Monica Municipal Code Section
6.49.050, subdivision (b).
(e) Cumulative Remedies. City's right to suspend, revoke or terminate this
Franchise pursuant to this Section are in addition to all other rights and remedies which
may otherwise accrue to City by reason of any failure or refusal of Grantee to perform any
obligation imposed by the terms and conditions of this Franchise.
SECTION 3. CONSTRUCTION OF FRANCHISE.
(a) Interpretation. Unless otherwise specified, the following terms govern the
interpretation and construction of this Franchise:
(1) The singular number includes the plural, and the plural number
includes the singular;
(2) Time is of the essence of this Franchise. Grantee will not be relieved
of its obligation to promptly comply with any provision of this Franchise by any failure of
City to enforce prompt compliance with the same or any other provisions;
(3) Any right or power conferred, or duly imposed upon, any officer,
employee, or department of City is subject to transfer by operation of law to any other
officer, employee, or department of City;
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(4) Grantee will have no recourse whatsoever against City for any loss,
cost, expense, or damage arising out of any provision or requirement of this Franchise or
the enforcement thereof;
(5) This Franchise does not relieve Grantee of any requirement of the City
Charter, the Santa Monica Municipal Code, or any local ordinance, rule, or regulation, other
than exceptions expressly set forth in this Franchise; and
(6) This Franchise does not constitute an exclusive grant of any right to
carry persons or property for hire within the City.
(b) Limitations upon Grantee.
(1) This Franchise does not grant or confer any privilege or exemption
upon Grantee except as otherwise specifically provided herein.
(2) This Franchise is a privilege to be held in personal trust by Grantee.
Grantee shall not sell, lease, assign, hypothecate, or otherwise transfer or dispose of this
Franchise or any interest .herein directly or indirectly, by operation of law or otherwise,
without the prior written consent of City, expressed by ordinance, and then only under such
terms and conditions as may be prescribed therein. Any attempt to do so without City's
consent shall be null and void, and any purchaser, lessee, assignee, hypothecatee or
transferee shall acquire no right or interest by reason of such attempted sale, lease,
assignment, hypothecation or transfer. Any such sale, lease, assignment, or other
disposition of this Franchise shall be evidenced bya dulyandjointlyexecuted instrument in
writing addressed to Council and filed with the City Clerk. The sale, assignment, transfer
or other disposition of any of the issued and outstanding capital stock of Grantee or of any
general partner orjoint venturer or Member of Grantee, if a partnership orjoint venture or
7
membership exists, which shall result in changing the control of Grantee, shall be
construed as an assignment of this Franchise.. Control means fifty percent (50%) or more
of the voting power of the organization.
(c) Rights Reserved to City.
(1) There is reserved to City every right and power that is allowed or
provided by any provision of the City Charter and the Santa Monica Municipal Code, as
may be amended from time to time. Grantee, by its acceptance of this Franchise, agrees
to be bound by and to comply with any action or requirement of City in its exercise of any
such right or power.
(2) Neither the granting of this Franchise nor any of its provisions shall
constitute a waiver or bar to the exercise of any governmental right or power of City.
SECTION 4. COMPENSATION.
(a) By its acceptance of this Franchise, Grantee agrees to pay to City all
applicable fees and payments, including the annual franchise fee, Taxicab Vehicle Permit
fee, and Taxicab Driver's Permit fee for each authorized taxicab in Grantee's taxicab fleet.
(b) Grantee, at its sole expense, shall obtain and maintain during the term of this
Franchise all required business and professional permits, licenses and certificates.
SECTION 5. TAXICAB FLEET.
(a) Fleet Size. Grantee is authorized by this Franchise to provide taxicab
services in the City through a taxicab fleet consisting of a maximum of 50 vehicles. The
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number of vehicles authorized in Grantee's taxicab fleet shall be set until modified by
Council
(b) Fleet Makeup -Wheelchair Accessible Vehicles. At least 5 of the authorized
taxicab fleet vehicles must be side-loading wheelchair accessible vehicles in compliance
with the Americans with Disabilities Act ("ADA") and Taxicab Rules. The City Manager or
his or her designee may require that Grantee increase the minimum number ofwheelchair
accessible vehicles within its authorized taxicab fleet and may specify vehicle service
availability for general wheelchair accessible trips notwithstanding any existing contractual
arrangements.
(c) Operational Schedule.
(1) Except as otherwise provided in this Ordinance, within the first month
of the effective date of this Franchise, Grantee must place 45 vehicles certified as Super
Ultra-Low Emission Vehicles ("SULEV") by the California Air Resources Board ("GARB"),
and 5side-loading wheelchair accessible taxicabs, into service.
(2) Grantee's taxicab fleet must be fully operational in accordance with
this Ordinance within the firsf month of the effective date of this Franchise, unless
otherwise authorized in writing by the City Manager or his or her designee, in his or her
sole and absolute discretion. Thereafter, Grantee may, upon written application to and
authorization by the City Manager or his or her designee, adjust Grantee's taxicab fleet
make-up. Any adjusted fleet make-up must be consistent with Grantee's proposed fleet
submitted in Grantee's March 2010 response to the Request for Proposals issued in
January 2040.
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(d) Continuous Operation. After Grantee shall have established taxicab services
pursuant to this Franchise, Grantee must ensure that, except for necessary repairs, all its
taxicabs are available for service at all times, and such service may not be suspended or
abandoned unless such suspension or abandonment is authorized or ordered, in writing,
by the City.
(e) Request for Reduction in Taxicab Fleet. Whenever Grantee may file a written
application with the City Clerk alleging that the public convenience and necessity no longer
requires Grantee to furnish taxicab services with the number of vehicles authorized under
this Franchise, Council will take evidence at a public hearing upon that question and make
a finding with respect thereto. Notice of such hearing will be given for a period, of at least
15 days priorthereto by posting such notice in each of Grantee's taxicabs; such notices, in
a form satisfactory to City, are to be posted by Grantee. If Council finds after the public
hearing that the public convenience and necessity no longer requires Grantee to furnish
taxicab services with the number of vehicles authorized under this Franchise, Council may
authorize suspension or abandonment of such service upon such reasonable terms and
conditions as may be prescribed therein.
SECTION 6. OPERATIONS AND SERVICE -GENERAL.
(a) Compliance with Laws.
(1) All vehicles, equipment and appurtenances used underthis Franchise
shall be operated and maintained in accordance with applicable local; state and federal.
laws, rules and regulations. Grantee is responsible forthe compliance of its Members and
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drivers, whether employees, lease drivers, or otherwise, with all such laws, ordinances,
rules and regulations.
(2) The number of taxicabs, the manner and time of taxicab operations,
the transportation service provided, and the rates or fares charged, shall at all times
conform to such rules and regulations as may from time to time be fixed or prescribed by
the Department or City.
(b) Supervision. Grantee shall provide 24-hour road and office supervision.
(c) Discount Reimbursement. Grantee shall reimburse its drivers the amount of
the discount on taxicab fares required to be provided to seniors and passengers with
disabilities, as set by resolution of Council.
(d) Complaint Resolution Procedure. Grantee shall establish a procedure,
subject to City approval, for the review and resolution of complaints from the public and
violations of company rules and Taxicab Rules by Grantee's officers, Members,
employees, and drivers. Grantee shall provide to City a monthly summary ofthe number of
public complaints received.
(e) Management Personnel Information. Grantee shall provide to City, and keep
current, a list of the following:
(1) The Board of Directors and officers;
(2) All Members, by class of membership and the number of shares held
by each Member;.
(3) All management and administrative personnel and theirjob titles; and
(4) All lease and employee drivers.
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(f) Management Personnel. Grantee shall have full-time management, subject
to City approval, which approval shall not be unreasonably withheld, to direct activities of
the organization. City may review management credentials and background experience of
management personnel, including a criminal history and fingerprint check. Responsibilities
include, but are not limited to, establishing, maintaining and reporting the taxicab
operations and records; collecting and paying applicable fees; conducting day to day
activities, including but not limited to managing and operating the taxicab fleet;
representing Grantee in disputes and discussions between regulatory agencies and
Grantee, its drivers and Members; and adhering to Grantee's Management/Business Plan.
Management is not precluded from membership or ownership in Grantee.
(g) Management/Business Plan ("Plan"). Grantee shall submit annually to City
for City approval a Plan as set forth herein and in the Taxicab Rules. The Plan shall
establish Grantee's approach and methods to be used in meeting the requirements of this
Franchise, the Santa Monica Municipal Code, the Taxicab Rules, and City, state and
federal law, rules and regulations. The Plan will be used as the basis for evaluating
Grantee's capability to provide taxicab services in accordance with the service demands of
the public and City standards. Any specific sub-items and components under each Plan
category will be supplied by City, as may be amended from time to time. Minimum
categories to be addressed in the Plan include:
(1) Grantee Organizational Structure and Procedures;
(2) Management/Administrative Structure and Procedures;
(3) Financial Status and Related Information;
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(4) Dispatch and Communications -Description of Facilities, Personnel
and Technology;
(5) Operating Location(s), Storage/Parking of Vehicles, Maintenance and
Inspection -Description of Facilities and Personnel;
(6) Programs and Activities for Driver Training, Testing, Supervision and
Social Benefits;
(7) Vehicle Maintenance and Inspection;
(8) Procedures for Maintaining Service Levels, Programs forAddressing
Service Deficiencies;
(9) Service/Operation Procedures for Discipline, Driver Evaluation,
Complaint Processing and Accident/Safety Control;
(10) Special Programs, Agreements and Services;
(11) Record Keeping; and
(12) Grantee's Plan Evaluation & Response to Changes or Additions.
Grantee shall comply with its Plan at all times. City may review Grantee's adherence to the
Plan at any time as deemed necessary by City.
SECTION 7. OPERATIONS AND SERVICE -TAXICABS:
(a) Taxicab Vehicle Permits. Grantee is 7esponsible for paying the annual
taxicab vehicle permitfee for all taxicabs in its fleet, in accordance with the fee specified by
resolution of Council, as of the effective date of this Franchise. Taxicab vehicle permits
expire each June 30th thereafter, and Grantee is responsible for paying the annual taxicab
13
vehicle permit fees and obtaining annual taxicab vehicle permits for all taxicabs in its fleet
in accordance with Santa Monica Municipal Code Section 6.49.040(1)(2).
(b) Taxicab Operations. All taxicabs used by Grantee within the City must be
operated in accordance with, and Grantee shall not permit any taxicab to be driven which is
in violation of, this Franchise, the Santa Monica Municipal Code, and Taxicab Rules.
(c) Registration and Acquisition of Vehicles. All taxicabs operated under this
Franchise must be registered to either Grantee or a Member of Grantee. Taxicabs must
either be owned by Grantee, a Member, a commercial lending agency, or leased from a
licensed leasing agency whose primary business is the sale or leasing of vehicles.. Any
taxicab utilized by Grantee which is owned by it or one of its Members shall have been
acquired by way of bona fide purchase, lease, or other transaction approved by the City.
Grantee or Member shall submit to City, upon request, the method utilized for vehicle
acquisition. Members may sell ortransfer a share or taxicab underthese same provisions.
(d) General Vehicle Maintenance and Repairs. Grantee shall, at its sole
expense, monitor and be responsible for all maintenance, repair, and replacement of
Grantee's and any driver/manager Member's managed taxicabs. Preventive maintenance
must be performed at least in accordance with manufacture recommendations for each
taxicab. A copy of maintenance inspection reports, including any repair documentation,
shall be filed with City.
(e) Age of Vehicles. No taxicab fleet vehicle authorized by this Franchise shall
be in excess of the years of age set forth in the Taxicab Rules unless otherwise authorized
in writing by City in its sole and absolute discretion.
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(f) Off-Street Parking Facilities. Grantee shall provide garaging or other off-street
parking facilities within one-half mile of its main operating location(s), or as specified by the
City, where Grantee's taxicabs are to be parked when not in service or when not being
repaired or when not in the possession of a taxicab driver. Grantee shall have sufficient
vehicle parking capacity within the main operating location(s) or the garaging oroff-street
parking facilities to meet the requirements for Grantee's operations, including but not
limited to vehicle inspection and maintenance, administrative functions, and training.
SECTION 8. OPERATIONS AND SERVICE -DRIVERS.
(a) Authorized Drivers. Grantee shall not issue or dispatch any taxicab operated
on behalf of this Franchise to any driver who is in violation of any terms of this Franchise,
the Santa Monica Municipal Code, Taxicab Rules, or any other applicable law, rule or
regulation.
(b) Taxicab Driver's Permits. Grantee is responsible for paying the annual
taxicab driver's permit fee for all its taxicab drivers, in accordance with the fee specified by
resolution of Council, as of the effective date of this Franchise. Taxicab driver's permits
expire each June 30th thereafter and Grantee is responsible for paying the annual taxicab
driver's permit fees and obtaining annual taxicab driver's permits for all its taxicab drivers in
accordance with Santa Monica Municipal Code Section 6.49.070(e).
(c) Work Shifts. Drivers must check in with Grantee at the beginning and end of
-each shift, and such activity shall be recorded by Grantee. Grantee must maintain daily
logs to indicate the vehicle and driver assignments for each shift at all times. Grantee or a
driver/manager Member shall make all such assignments. Grantee shall issue and collect
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waybills in the manner and within the time limits established by the Taxicab Rules:
Grantee shall review waybills upon collection to ascertain that the required information is
fully and accurately provided.
(d) Independent Contractor Drivers. Grantee and its driver/manager Members
are authorized to provide taxicab services through a contracting or leasing type of
operation with an independent contractor driver. No independent contractor driver may
subcontract or sublease the vehicle, or the right to operate the vehicle, to another person.
All contracting or leasing arrangements shall be evidenced in writing and subject to City
approval. Such lease contract shall provide for the collection and documentation of lease
fees by Grantee and driver/manager Members. The lease contract shall not be instituted or
changed without City approval. The independent contractor driver shall not use a taxicab
as the driver's personal vehicle within the City except when driving to orfrom the beginning
or ending of a work shift. Grantee shall maintain current files of all lease contracts in a
central location, filed by driver, to verify compliance with these requirements.
(e) Training Program. Grantee shall provide a comprehensive screening, testing
and training program for all its drivers, including independent contractor drivers. The
training program, including curriculum and delivery, must be approved by City and must
include City and state rules and regulations; geography, including map reading, major
points of interest in the City, and familiarity with the City and surrounding areas; driver
safety and defensive driving; vehicle safety and maintenance/inspection checks; customer
service and relations; sensitivity guidelines for disabled, frail and elderly passengers;
behind the wheel driver training; and accessible vehicle operation training and CPR
certification or equivalent for accessible vehicle drivers. City may authorize or require
16
additional training program components, a change in delivery of program components, or a
training facilitator or program outside of Grantee's program at Grantee's or driver's cost if
City deems such change will best serve the public interest.
(f) Drug and Alcohol Testino. Grantee is responsible for scheduling pre-
employment and pre-permitting driver drug and alcohol testing and for enrolling all current
drivers in a mandatory controlled substance and alcohol testing certification program as
mandated by California Government Code Section 53075.5, and which follows program
components and testing requirements of the Federal Code of Regulations, Title 49, Part 40
and Part 382, as amended. Testing shall be conducted as a condition for initial driver
permit authorization. Annual testing shall be conducted as a condition for permit renewal.
Random testing may be conducted and additional tests may be required, including post
accident testing, rehabilitation and return-to-service testing, and reasonable suspicion
testing. Drivers must show a valid California driver's license at the time and place of
testing.
Grantee shall contract with a consultant (program administrator) and authorized lab
approved under the Federal Register to facilitate the program and shall provide a copy of
the contracts to City. Test results shall be provided to Grantee as the employing entity.
Information shall be supplied to City pertaining to any positive test results and shall include
driver name, identifying information, and driver permit status, including any entry into a
rehabilitation program. Specific drivertest results shall remain confidential, on file by driver
with Grantee, but testing information, including date of annual-test and random test, and
positive or negative results, shall be available for City's review. Cost of testing shall be the
17
driver's responsibility, if the driver is an independent contractor of Grantee, or Grantee's
responsibility, if the driver is an employee.
In accordance with the Federal Code of Regulations, Grantee's certification program
must include information regarding the controlled substance and alcohol use policy and
procedures as well as educational materials made available to all drivers and other
pertinent staff. Grantee or its authorized agency must advise drivers of the resources
available to them to resolve problems associated with misuse of alcohol and controlled
substances. Materials for education and company policies must be made available to all
current and potential drivers and a signed statement of their receipt shall be in every
permitted driver's file and retained by Grantee.
Grantee shall train supervisory personnel in accordance with federal guidelines in
order to determine whether reasonable suspicion exists to require a driver to undergo
additional testing. Grantee shall use custody and control forms similar to that used under
the federal testing guidelines. Any changes in the federal program guidelines or other state
mandates will be considered by City for modification to Grantee's program.
(g) Social Benefits Programs. Grantee shall comply with all applicable local,
state and federal rules, regulations and statutes concerning mandated social benefits
programs for employees. It shall be the sole responsibility of Grantee to determine whether
legislation concerning these social benefits applies to Grantee's operations.
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SECTION 9. OPERATIONSAND SERVICE- DISPATCH, COMMUNICATION AND
SERVICE REPORTING.
(a) Radio Frequencies. Grantee shall have authorized usage of an FCC-
assigned radio frequency(s) and shall maintain the capability of two-way voice radio
communication in working order in each taxicab operating within the City under the
authorized frequency(s). Grantees operating within the same areas of the City must use
separate frequencies within the same areas. Grantee shall notify the City in writing of such
frequency(s) to be used in all areas of the City.
(b) Computer Dispatch System and Order Data. Grantee shall implement and
maintain a computer dispatch system capable of digital data communication and
geographically identifying each service call. The computer dispatch record keeping system
must also be capable of determining who is driving a particular taxicab at any time.
Grantee shall record and store service data using computer dispatch time stamping for
each telephonic or other equivalent call received and include time call was received, time
of order reservation, time of order acceptance by driver, time of arrival at service location,
time of taximeter activation, time of taximeter deactivation, and length of trip in miles.
Grantee shall provide total telephonic or other equivalent service order data to the
City monthly, within the first week of the following month in which data was collected, in a
transfer and data format as prescribed by the City. This requirement does not preclude City
personnel from reviewing Grantee's dispatch records via a modem or equivalent
connection and browsing or retrieving information.
Grantee shall also supply summary monthly data reports from telephonic or other
equivalent service calls as prescribed by the City, and as may be changed from time to
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time by the City, with minimum reporting requirements required at the beginning of this
Franchise to include service response data summaries by the following categories: service
area; vehicle; wheelchair accessible vehicle; and wheelchair accessible vehicle, for
wheelchair accessible requested trips, aggregated for all vehicles in service. Each of the
foregoing categories will include the total number of trips separated into response
categories, including response time up to 15 minutes, between 16 and 30 minutes,
between 31 and 60 minutes, greater than 60 minutes, and no show or no load.
City may require that trips completed through requests from outside contracts or
agreements be reported separately.
Response time is defined as the period of time from dispatch of the fare (when the
trip is first offered or designated by dispatcher) to activation of the taximeter as denoted in
the dispatch record. Arrival time may be used in lieu of taximeter activation if the taxicab is
equipped with an automatic vehicle location system that can identify and verify in the
dispatch record that the vehicle was within one-quarter (1/4) mile of the arrival target, or as
otherwise defined, established and authorized by the City.
Grantee shall have 6 months from the effective date of this Franchise to establish
computer dispatch including communication with each vehicle's digital mobile data system
and reporting to the City, unless the City Manager or his or her designee authorizes an
extension of time in writing.
(c) Telephonic Service Order Response Data. Grantee shall provide a
computerized method or telephone company switching program to obtain information
pertaining to telephonic or other equivalent order response. The system must be capable
of identifying and storing information pertaining to each call received, including the length
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of time required to answer the call and the length of time each call was placed on hold, if at
all.
Grantee shall provide total telephonic or other equivalent service order response
data to the City monthly, within the first week of the following month in which data was
collected, in a transfer and data format as prescribed by the City.
Grantee shall also supply summary monthly data reports aggregated from total
telephonic or other equivalent service order response data, as prescribed by the City, with
minimum reporting requirements required at the beginning of the Franchise to include:
(1) Total number of telephonic or other equivalent service calls received;
(2) Total number of telephonic or other equivalent service calls answered
in more than 45 seconds; and
(3) Total number of telephonic or other equivalent service calls placed on
hold longer than two minutes during any period of the reservation process.
(d) Statistical Operating Data. Grantee shall provide summary statistical
operating data to the City monthly in written form pertaining to all taxicabs and types of
service requests provided within the City. Summary data shall include at minimum the total
number of all trips provided, total miles driven, total paid miles driven, total gross revenue
received, total shifts assigned, and total number of telephonic or other equivalent service
orders received. City may in its discretion direct Grantee to supply additional information.
SECTION 10. INSPECTION OF PROPERTY AND RECORDS.
(a) At all reasonable times at the City's request, Grantee shall permit any
authorized officer, employee or agent of the City to inspect all property of Grantee, and to
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examine and transcribe any and all books, accounts, papers, maps, and other records kept
or maintained by Grantee with respect to Grantee's operations, affairs, transactions,
property or financial condition. If any of the books, accounts, papers, maps, or other
records referenced in this Section are kept outside the City and the City determines that an
examination of such materials is necessary or appropriate, then all travel and maintenance
expenses necessarily incurred in making such examination shall be paid by Grantee.
(b) Grantee shall prepare and furnish to the City, at all times and in the form
prescribed by the City, such data with respectto Grantee's operations, affairs, transactions,
property orfinancial condition as may be reasonably necessary or appropriate. Requested
data may include but is not limited to: membership, lease driver, and employee records;
waybills; maintenance records; financial statements; insurance policies; taxicab fleet
schedules; dispatch records; vehicle records; affirmative action records; and contracts.
(c) Failure to comply with any City request for any information may in the City's
sole and absolute discretion result in temporary suspension of Grantee's operations.
(d) All records shall be maintained in accordance with generally accepted
accounting principles and clearly identified and readily accessible. Representatives of City
or its designees shall be allowed free access to Grantee's books and records, and have the
rights to examine, audit and make transcripts therefrom as necessary, and inspect all work,
data, documents, proceedings and activities related to this Franchise.
SECTION 11. INSURANCE REQUIREMENTS.
(a) In accordance with the requirements of the Santa Monica Municipal Code
and Taxicab Rules, Grantee shall procure and at all times maintain an insurance policy
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covering all vehicles operating under this Franchise. Insurance premiums must be paid in
advance fora minimum six-month period. Any vehicle operating without the required
coverage shall be considered under suspension, regardless of whetherthe City is aware of
the lack of coverage.
(b) Grantee shall obtain comprehensive general liability insurance, to include
contractual liability, in such amounts as the City Risk Manager may from time to time
require, insuring against any claims arising out of the activities of Grantee and its
Members, employees and drivers.
(c) Grantee shall file evidence of insurance with the City, along with proof of
payment of the minimum six-month, premium, in such form as required by and subject to
the approval of the City Risk Manager, prior to the commencement of operations underthis
Franchise. Grantee shall maintain such evidence on file with the City throughout the term
of this Franchise.
(d) Grantee's failure to procure and maintain the required insurance shall
constitute a material breach of contract underwhich the City may immediately suspend or
revoke and terminate this Franchise. Monetary penalties may also be assessed.
(e) Grantee shall submit to the City a quarterly summary of all taxicab accidents
including date of accident, driver name and identifying information, and vehicle number.
The City may direct. Grantee to supply additional information or specify a form for such
reporting.
SECTION 12. INDEMNIFICATION, DEFENSE, HOLD HARMLESS. Exceptforthe
sole and active negligence or willful misconduct of the City, Grantee agrees to defend,
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indemnify and hold harmless City (including but not limited to the City's departments,
members of its Council, boards and commissions, officials, officers, agents, employees,
volunteers, assigns, and successors in interest) from and against all suits and causes of
action, claims, losses, demands and expenses, including but not limited to: attorney's fees
and cost of litigation; damage or liability of any nature whatsoever; death or injury to any
person, including Grantee and any of Grantee's Members, employees and agents; or
damage or destruction of any property of either party hereto or of third parties, arising in
any manner by reason of, or incident to, the performance of this Franchise on the part of
Grantee or subcontractor of any tier.
Grantee shall give the City prompt and timely written notice of any claim made or
suit instituted coming to Grantee's knowledge which may in any way directly or indirectly,
contingently or otherwise, affect either party, and both shall have the right to participate in
the defense of same to the extent of its own interest. Approval of insurance policies by the
City shall in noway affect or change the terms and conditions of this indemnity agreement.
SECTION 13. NONDISCRIMINATION. Grantee shall not discriminate in its
membership or employment practices against any Member or employee or applicant for
membership or employment, and shall not discriminate in providing taxicab services under
this Franchise, because of race, color, religion, national origin, ancestry, sex, age, sexual
orientation, marital status, medical condition, HIV/AIDS or disability, and shall complywith
the requirements of City, state and federal law, rules and regulations.
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SECTION 14. WAIVER. A waiver by City of any breach of any term, covenant, or
condition contained in this Franchise shall not be deemed to be a waiver of any
subsequent breach of the same or any other term, covenant, or condition contained in
Franchise.
SECTION 15. MONETARY PENALTIES FOR VIOLATIONS OF FRANCHISE
ORDINANCE TERMS AND CONDITIONS. The City may levy a monetary penalty on
Grantee for failure to abide by the terms and conditions of this Franchise, as an alternative
to, or in addition to, suspension of this Franchise. Any of the following activities constitute
a violation of the terms and conditions of this Franchise and may subject Grantee to a
monetary penalty. The City's monetary assessment for a second, third and subsequent
offense, as noted in the schedule herein, shall only be applied to the same offense.
(a) Failure to submit to the City any requested or required information as
specified in this Ordinance.
(b) Fraudulent reporting to the City of any requested or required information,
including any tampering of files, data, or reports necessary to provide the required
information.
(c) Operation of unlicensed or unauthorized vehicles as taxicabs in the City,
including but not limited to the operation of previously approved taxicabs with suspended,
canceled or revoked vehicle permits and the use of vehicles licensed as taxicabs only in
other jurisdictions.
(d) Conducting any illegal or unauthorized type of public transportation operation.
(e) Unauthorized sale, lease, assignment, or other disposition of this Franchise.
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(f) Falsification of or failure to inform membership/share ownership changes.
(g) Operation of a taxicab without approved insurance on file with the City.
(h) Failure to timely submit required taxicab insurance documents to the City.
(i) Failure to provide taxicab preventive maintenance service.
(j) Failure to provide drivers, Members or personnel with training as specified in
this Ordinance or as detailed in Grantee's Plan.
(k) Failure to adhere to the policies and procedures in Grantee's Plan.
(I) Failure to provide City personnel access to Grantee's property and records.
The City may levy the following schedule of monetary penalties for these violations
against Grantee:
(a) Up to $10,000 for the first offense.
(b) Up to $25,000 for the second offense within a 12-month period.
(c) Up to a maximum of $50,000 for third and subsequent offenses within
subsequent 12-month periods.
Monetary penalties imposed pursuant to the foregoing schedule are subject to the
hearing procedure specified in Santa Monica Municipal Code Section 6.49.150, as may be
amended from time to time.
SECTION 16. REQUIREMENTS OF A CO-OPERATIVE, ASSOCIATION OR
MEMBERSHIP ORGANIZATION. If Grantee is a co-operative, association or membership
organization, the following restrictions apply:
(a} The number of Members and shares shall each be limited to the total number
of taxicabs authorized for Grantee underthis Franchise. Joint Memberships are prohibited.
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(b) Members shall be limited to owning a maximum of five percent (5%) of the
total taxicabs and shares authorized for Grantee with the maximum figure determined by
rounding the number of vehicles and shares equivalent to five percent (5%) of the fleet to
the nearest whole number.
(c) An Investor/Shareholder Member shall not drive, control or manage any
taxicab in Grantee. All taxicabs owned by an Investor/Shareholder shall be controlled and
managed completely by Grantee, on the Investor/Shareholder's behalf, pursuant to aCity-
approved contract, between the Investor/Shareholder and Grantee. The
Investor/Shareholder shall have no control over or perform any function for a taxicab under
the control of Grantee other than being the registered owner of the taxicab.
(d) A Driver/Manager Member may not control or manage more than 3 taxicabs
in Grantee. All taxicabs owned by a Driver/Manager in excess of 3 and any others that the
Member does not control or manage shall be classified as Investor/Shareholder
memberships and shall be controlled and managed completely by Grantee, on the
Member's behalf, pursuant to aCity-approved contract, between the Member and Grantee.
Grantee shall ensure that all Driver/Manager Members comply with all City laws, rules and
regulations and this Ordinance relating to the number of vehicles managed.
(e) Members must qualify for a Taxicab Vehicle Permit under the current
standards established by the City.
(f) If any Taxicab Vehicle Permit is revoked, any Driver/Manager Member who
was the cause of such revocation or .cancellation will be subject to revocation or
cancellation of his or her Taxicab Driver's Permit and will be precluded from operating a
taxicab or exercising any other rights granted. by such Taxicab Driver's Permit. Any.
27
Driver/Manager Member whose Taxicab Driver's Permit is revoked or canceled must
convert all Driver/Manager memberships into Investor/Shareholder memberships or
transfer membership and any other taxicabs owned by the Member shall be operated,
controlled and managed by Grantee on the Member's behalf, pursuant to aCity-approved
contract, between the Member and Grantee.
(g) Grantee shall ensure that each Driver/Manager Member is aware of and
complies with any requirement of the City regarding the filing of an annual profit and loss
statement. Grantee shall submit the required statistical information quarterly or as directed
by the City.
(h) Grantee shall require all Members to enter into a security agreement, subject
to City approval, as a condition of membership in Grantee. By such agreement, the
Member grants to Grantee a security interest in the Member's taxicabs to ensure the
Member's compliance with his or her obligations as a Member.
(i) Grantee shall establish a procedure for the approval, transfer, and sale of
memberships and a procedure for dismissal of Members. Grantee shall provide information
to each Member pertaining to the Member's role in the organization, the City and the
taxicab industry, basic record keeping and reporting requirements, the City's rules and
regulations, and any other information required by the City.
Q) All agreements, including any security or membership agreements, and all
contracts, including those under which the co-operative operates vehicles on behalf of its
Members, that affect the method by which taxicabs are operated or service is provided,
shall be subject to review and approval by the City.
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(k) Grantee shall obtain vehicle liability insurance for all vehicles in the taxicab
fleet; contract with lease drivers for all vehicles in the taxicab fleet; provide maintenance for
all vehicles in the taxicab fleet; provide a computer dispatch service; collect and maintain
all records, including waybills, pertinent to its taxicab operations; collect vehicle lease fees
for vehicles in the taxicab fleet; notify Driver/Manager Members and drivers of violations
and hearings; and make all vehicle and driver assignments for vehicles it controls on behalf
of Members.
SECTION 17. 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 18. 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
newspaper within 15 days after its adoption. This Ordinance shall become effective 30
days from its adoption.
AP/P~R~AVED TO F//ORMI~~ ,,
1 ' ;~~ y ~t~Y'~1.~
MA SHA NES TRIE
Ci ttor y
29
City Council Meeting 11-09-2010 Santa Monica, California
ORDINANCE NUMBER (CCS)
(City Council Series)
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA
GRANTING A TAXICAB FRANCHISE TO TMAT CORP.,
DOING BUSINESS AS TAXI! TAXI!, TO PROVIDE
TAXICAB SERVICES IN THE CITY OF SANTA MONICA
WHEREAS, on July 28, 2009, the City Council ("Council") of the City of Santa
Monica ("City") adopted Ordinance No. 2292 (CCS), establishing a taxicab franchise
system in order to assure reliable, safe, quality taxicab services in the City and to eliminate
undue congestion and air pollution, disorganization, and hazards associated with the City's
previous open-entry regulated taxicab environment; and
WHEREAS, City staff completed a competitive Request for Proposals process and
evaluated the submitted proposals in accordance with criteria consistent with the Santa
Monica Municipal Code, in order to provide Council with recommendations fortheaward of
franchises to taxicab companies; and
WHEREAS, on October 12, 2010, Council adopted Resolution No. 10533 (CCS),
declaring its intent to grant taxicab franchises to Bell Cab Company, Inc.; Independent Taxi
Owners' Association (ITOA); Metro Cab Company, LLC; TMAT Corp., doing business as
Taxi! Taxi!; and L.A. Taxi Cooperative, Inc., doing business as Yellow Cab Company, and
setting a public hearing; and
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WHEREAS, on November 9, 2010, Council held a public hearing in accordance with
City Charter Section 1601, at which all interested persons were given an opportunity to be
heard on all matters relative to the proposed granting of taxicab franchises; and
WHEREAS, based on the foregoing, Council finds that TMAT Corp., doing business
as Taxi! Taxi! ("Taxi! Taxi!"), possesses the background, knowledge, experience and
expertise necessary to provide efficient and effective taxicab services to the residents,
visitors and other members of the community in the City, so as to support the granting of
this Franchise to Taxi! Taxi!, upon the terms and conditions set forth herein,
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA
DOES HEREBY ORDAIN AS FOLLOWS:
SECTION 1. DEFINITIONS. Unless it is apparent from the context that it has a
different meaning, each of the following words and phrases has the meaning stated in this
Section wherever it is used in this Franchise:
(a) CITY means the City of Santa Monica, a municipal corporation duly organized
and validly existing under the laws of the State of California with the power to carry on its
business as it is now being conducted under the statutes of the State of California and the
Charter of the City;
(b) CO-OPERATIVE, ASSOCIATION. or MEMBERSHIP means an independent
taxicab enterprise or organization owned and operated by its Members for the financial
benefit of its Members. Each authorized taxicab fleet slot correlates to a share or
ownership in the Co-operative, Association or Membership;
(c) COUNCIL means the City Council of the City of Santa Monica;
(d) DEPARTMENT means the Police Department of the City;
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(e) DRIVER/MANAGER means any Member of a co-operative, association or
membership Grantee, who drives, controls, and manages taxicabs for Grantee;
(f) GRANTEE means Taxi! Taxi!, a California corporation qualified to do
business in the State of California and to which this Franchise has been granted;
(g) INVESTOR/SHAREHOLDER means any Member of a co-operative,
association or membership Grantee, who does not drive, control or manage taxicabs for
Grantee;
(h) LEASE DRIVER means a person who is an independent contractor
possessing a valid Taxicab Driver's Permit and who drives a taxicab for Grantee;
(i) MEMBER means any individual person or Subchapter S corporation, as
defined in the United States Internal Revenue Code Section 1361, who owns one or more
taxicabs or shares, but not more than the maximum number authorized by this Ordinance,
in Grantee. Only those individuals applying for Investor/Shareholder membership status
may apply as a Subchapter S corporation;
(j) STREETS means the public streets, roads, highways, freeways, lanes, alleys,
sidewalks or parkways which now exist or which may hereafter exist within the City;
(k) TAXICAB DRIVER means any person possessing a valid Taxicab Driver's
Permit driving and in immediate possession of a taxicab for the purpose of providing
taxicab transportation services in the City. A taxicab driver may be an employee of, a lease
driver of, or a Member of Grantee;
(I) TAXICAB DRIVER'S PERMIT means anon-transferable authorization for a
taxicab driver to provide taxicab transportation services in the City;
3
(m) TAXICAB FLEET means the total number of authorized taxicabs that is
managed and controlled completely by Grantee, and not by a Member of Grantee;
(n) TAXICAB RULES means the rules and regulations established for taxicab
operations in the City by the Department;
(o) TAXICAB VEHICLE PERMIT means anon-transferable authorization for a
specific taxicab to be driven or operated within the City for the purpose of providing taxicab
transportation services, whether as owner, -lessor, lessee, or otherwise;
SECTION 2. GRANT OF FRANCHISE.
(a) Nature of Grant. The franchise hereby granted by City authorizes Grantee,
subject to all the terms and conditions contained in this Ordinance, the Santa- Monica
Municipal Code, the Taxicab Rules, and all other applicable local, state, and federal law,
rules and regulations pertaining to taxicab operations, to provide taxicab transportation
services within the City, including picking up persons and property by taxicab within City
boundaries, transporting such persons and property for hire over any streets from within or
to the City, and standing taxicabs at designated taxicab stands within the City.
(b) Term of Franchise. This Franchise shall become effective on January 1,
2011, provided that Grantee has filed with the City Clerk, within 10 days after the adoption
of this Ordinance granting this Franchise, a written instrument, addressed to Council,
accepting and agreeing to comply with all the terms and conditions of this Franchise.
Failure to timely accept this Franchise as set forth in this Section may make this Franchise
null and void. This Franchise shall expire at 11:59 P.M., PST, on December 31, 2015,
4
unless revoked or terminated earlier by City, or unless extended by City in its sole and
absolute discretion.
(c) Suspension of Franchise. City may, afterdue notice and an opportunity to be
heard, suspend Grantee's operations under this Franchise for one or more days pursuant
to Santa Monica Municipal Code Section 6.49.050, under any of the following grounds:
(1) Material noncompliance with any term or condition of this Franchise,
the Santa Monica Municipal Code, Taxicab Rules, or other City orders or directives, when
such noncompliance has not been cured after reasonable written notice thereof and
opportunity to cure;
(2) Grantee accumulates penalty points in a specified period of time in an
amount greater than the allowed threshold level as provided by resolution of Council
pursuant to Santa Monica Municipal Code Section 6.49.150;
(3) Grantee fails to pay any monetary penalties in accordance with the
procedures set forth in Santa Monica Municipal Code Section 6.49.150 and any resolutions
or schedules adopted thereto; or
(4) Any of the grounds set forth in Santa Monica Municipal Code Section
6.49.050.
Any suspension of Grantee's taxicab operations may affect any extension of the
term of this Franchise and may lead to assessment of monetary penalties in addition to or
as an alternative to suspension, or recommendation for revocation of this Franchise.
(d) Revocation and Termination of Franchise: City may, after due notice and an
opportunity to be heard, revoke and terminate Grantee's Franchise pursuant to Santa
Monica Municipal Code Section 6.49.050, under any of the following grounds:
5
(1) Grantee has illegally conducted any type of public transportation
operation within the City;
(2) Any term or condition of this Franchise becomes invalid or
unenforceable and Council expressly finds that such term or condition was a consideration
material to the grant of this Franchise;
(3) The public interest would be served by revocation and termination of
this Franchise; or
(4) Any of the grounds set forth in Santa Monica Municipal Code Section
6.49.050, subdivision (b).
(e) Cumulative Remedies. City's right to suspend; revoke or terminate this
Franchise pursuant to this Section are in addition to all other rights and remedies which
may otherwise accrue to City by reason of any failure or refusal of Grantee to perform any
obligation imposed by the terms and conditions of this Franchise.
SECTION 3. CONSTRUCTION OF FRANCHISE.
(a) Interpretation. Unless otherwise specified, the following terms govern the
interpretation and construction of this Franchise:
(1) .The singular number includes the plural, and the plural number
includes the singular;
(2) Time is of the essence of this Franchise. Grantee will not be relieved
of its obligation to promptly comply with any provision of this Franchise by any failure of
City to enforce prompt compliance with the same or any other provisions;
6
(3) Any right or power conferred, or duly imposed upon, any officer,
employee, or department of City is subject to transfer by operation of law to any other
officer, employee, or department of City;
(4) Grantee will have no recourse whatsoever against City for any loss,
cost, expense, or damage arising out of any provision or requirement of this Franchise or
the enforcement thereof;
(5) This Franchise does not relieve Grantee of any requirement of the City
Charter, the Santa Monica Municipal Code, or any local ordinance, rule, or regulation, other
than exceptions expressly set forth in this Franchise; and
(6) This Franchise does not constitute an exclusive grant of any right to
carry persons or property for hire within the City.
(b) Limitations upon Grantee.
(1) This Franchise does not grant or confer any privilege or exemption
upon Grantee except as otherwise specifically provided herein.
(2) This Franchise is a privilege to be held in personal trust by Grantee.
Grantee shall not sell, lease, assign, hypothecate, or otherwise transfer or dispose of this
Franchise or any interest herein directly or indirectly, by operation of law or otherwise,
without the prior written consent of City, expressed by ordinance, and then only under such
terms and conditions as may be prescribed therein. Any attempt to do so without City's
consent shall be null and void, and any purchaser, lessee, assignee, hypothecatee or
transferee shall acquire no right or interest by reason of such attempted sale, lease,
assignment, hypothecation or transfer. Any such sale, lease, assignment, or other
disposition of this Franchise shall be evidenced by a duly and jointly executed instrument in
7
writing addressed to Council and filed with the City Clerk. The sale, assignment, transfer
or other disposition of any of the issued and outstanding capital stock of Grantee or of any
general partner or joint venturer or Member of Grantee, if a partnership orjoint venture or
membership exists, which shall result in changing the control of Grantee, shall be
construed as an assignment of this Franchise. Control means fifty percent (50%) or more
of the voting power of the organization.
(c) Rights Reserved to City.
(1) There is reserved to City every right and power that is allowed or
provided by any provision of the City Charter and the Santa Monica Municipal Code, as
may be amended from time to time. Grantee, by its acceptance of this Franchise, agrees
to be bound by and to comply with any action or requirement of City in its exercise of any
such right or power.
(2) Neither the granting of this Franchise nor any of its provisions shall
constitute a waiver or bar to the exercise of any governmental right or power of City.
SECTION 4. COMPENSATION.
(a) By its acceptance of this Franchise, Grantee agrees to pay to City all
applicable fees and payments, including the annual franchise fee, Taxicab Vehicle Permit
fee, and Taxicab Driver's Permit fee for each authorized taxicab in Grantee's taxicab fleet.
(b) Grantee, at its sole expense, shall obtain and maintain during the term of this
Franchise all required business and professional permits, licenses and certificates.
8
SECTION 5. TAXICAB FLEET.
(a) Fleet Size. Grantee is authorized by this Franchise to provide taxicab
services in the City through a taxicab fleet consisting of a maximum of 50 vehicles. The
number of vehicles authorized in Grantee's taxicab fleet shall be set until modified by
Council.
(b) .Fleet Makeup -Wheelchair Accessible Vehicles. At least 5 ofthe authorized
taxicab fleet vehicles must be side-loading wheelchair accessible vehicles in compliance
with the Americans with Disabilities Act ("ADA") and Taxicab Rules. The City Manager or
his or her designee may require that Grantee increase the minimum number of wheelchair
accessible vehicles within its authorized taxicab fleet and may specify vehicle service
availability for general wheelchair accessible trips notwithstanding any existing contractual
arrangements.
(c) Operational Schedule.
(1) Except as otherwise provided in this Ordinance, Grantee must place its
taxicab fleet into service as follows:
(i) Within the first month of the effective date of this Franchise, at
least 29 vehicles certified as Super Ultra-Low Emission Vehicles ("SULEV") by the
California Air Resources Board ("GARB"), and 5side-loading wheelchair accessible
taxicabs;
(ii) Within the second month of the effective date of this Franchise,
at least 35 SULEV taxicabs, and 5side-loading wheelchair accessible taxicabs; and
(iii) Within the third month of the effective date of this Franchise, 45
SULEV taxicabs, and 5side-loading wheelchair accessible taxicabs.
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(2) Grantee's taxicab fleet must be fully operational in accordance with
this Ordinance within 3 months of the effective date of this Franchise, unless otherwise
authorized in writing by the City Manager or his or her designee, in his or her sole and
absolute discretion. Thereafter, Grantee may, upon written application to and authorization
by the City Manager or his or her designee, adjust Grantee's taxicab fleet make-up. Any
adjusted fleet make-up must be consistent with Grantee's proposed fleet submitted in
Grantee's March 2010 response to the Request for Proposals issued in January 2010.
(d) Continuous Operation. After Grantee shall have established taxicab services
pursuant to this Franchise, Grantee must ensure that, except for necessary repairs, all its
taxicabs are available for service at all times, and such service may not be suspended or
abandoned unless such suspension or abandonment is authorized or ordered, in writing,
by the City..
(e) Request for Reduction in Taxicab Fleet. Whenever Grantee may file a written
application with the City Clerk alleging that the public convenience and necessity no longer
requires Grantee to furnish taxicab services with the number of vehicles authorized under
this Franchise, Council will take evidence at a public hearing upon that question and make
a finding with respect thereto. Notice of such hearing will be given for a period of at least
15 days prior thereto by posting such notice in each of Grantee's taxicabs; such notices, in
a form satisfactory to City, are to be posted by Grantee: If Council finds after the public
hearing that the public convenience and necessity no longer requires Grantee to furnish
taxicab services with the number of vehicles authorized underthis Franchise, Council may
authorize suspension or abandonment of such service upon such reasonable terms and
conditions as may be prescribed therein.
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SECTION 6. OPERATIONS AND SERVICE -GENERAL.
(a) Compliance with Laws.
(1) All vehicles, equipment and appurtenances used underthis Franchise
shall be operated and maintained in accordance with applicable local, state and federal
laws, rules and regulations. Grantee is responsible forthe compliance of its Members and
drivers, whether employees, lease drivers, or otherwise, with all such laws, ordinances,
rules and regulations.
(2) The number of taxicabs, the manner and time of taxicab operations,
the transportation service provided, and the rates or fares charged, shall at all times
conform to such rules and regulations as may from time to time be fixed or prescribed by
the Department or City.
(b) Supervision. Grantee shall provide 24-hour road and office supervision.
(c) Discount Reimbursement. Grantee shalt reimburse its drivers the amount of
the discount on taxicab fares required to be provided to seniors and passengers with
disabilities, as set by resolution of Council.
(d) Complaint Resolution Procedure. Grantee shall establish a procedure,
subject to City approval, for the review and resolution of complaints from the public and
violations of company rules and Taxicab Rules by Grantee's officers, Members,
employees, and drivers. Grantee shall provide to City a monthly summary of the number of
public complaints received.
(e) Management Personnel Information. Grantee shall provide to City, and keep
current, a list of the following:
(1) The Board of Directors and officers;
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(2) All Members, by class of membership and the number of shares held
by each Member;
(3) All management and administrative personnel and theirjob titles; and
(4) All lease and employee drivers.
(f) Management Personnel. Grantee shall have full-time management, subject
to City approval, which approval shall not be unreasonably withheld, to direct activities of
the organization. City may review management credentials and background experience of
management personnel, including a criminal history and fingerprint check. Responsibilities
include, -but are not limited to, establishing, maintaining and reporting the taxicab
operations and records; collecting and paying applicable fees; conducting day to day
activities, including but not limited to managing and operating the taxicab fleet;
representing Grantee in disputes and discussions between regulatory agencies and
Grantee, its drivers and Members; and adhering to Grantee's Management/Business Plan.
Management is not precluded from membership or ownership in Grantee.
(g) Management/Business Plan ("Plan"). Grantee shall submit annually to City
for City approval a Plan as set forth herein and in the Taxicab Rules. The Plan shall
establish Grantee's approach and methods to be used in meeting the requirements of this
Franchise, the Santa Monica Municipal Code, the Taxicab Rules, and City, state and
federal law, rules and regulations. The Plan will be used as the basis for evaluating
Grantee's capability to provide taxicab services in accordance with the service demands of
the public and City standards. Any specific sub-items and components under each Plan
category will be supplied by City, as may be amended from time to time. Minimum
categories to be addressed in the Plan include:
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(1) Grantee Organizational Structure and Procedures;
(2) Management/Administrative Structure and Procedures;
(3) Financial Status and Related Information;
(4) Dispatch and Communications -Description of Facilities, Personnel
and Technology;
(5) Operating Location(s), Storage/Parking of Vehicles, Maintenance and
Inspection -Description of Facilities and Personnel;
(6) Programs and Activities for Driver Training, Testing, Supervision and
Social Benefits;
(7) Vehicle Maintenance and Inspection;
(8) Procedures for Maintaining Service Levels, Programs forAddressing
Service Deficiencies;
(9) Service/Operation Procedures for Discipline, Driver Evaluation,
Complaint Processing and Accident/Safety Control;
(10) Special Programs, Agreements and Services;
(11) Record Keeping; and
(12) Grantee's Plan Evaluation & Response to Changes or Additions.
Grantee shall comply with its Plan at all times. City may review Grantee's adherence to the
Plan at any time as deemed necessary by City.
SECTION 7. OPERATIONS AND SERVICE -TAXICABS.
(a) Taxicab Vehicle Permits. Grantee is responsible for paying the annual
taxicab vehicle permit fee for all taxicabs in its fleet, in accordance with the fee specified by
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resolution of Council, as of the effective date of this Franchise. Taxicab vehicle permits
expire each June 30th thereafter, and Grantee is responsible for paying the annual taxicab
vehicle permit fees and obtaining annual taxicab vehicle permits for all taxicabs in its fleet
in accordance with Santa Monica Municipal Code Section 6.49.040(1)(2).
(b) Taxicab Operations. All taxicabs used by Grantee within the City must be
operated in accordance with, and Grantee shall not permit anytaxicab to be driven which is
in violation of, this Franchise, the Santa Monica Municipal Code, and Taxicab Rules.
(c) Registration and Acquisition of Vehicles. All taxicabs operated under this
Franchise must be registered to either Grantee or a Member of Grantee. Taxicabs must
either be owned by Grantee, a Member, a commercial lending agency, or leased from a
licensed leasing agency whose primary. business is the sale or leasing of vehicles. Any
taxicab utilized by Grantee which is owned by it or one of its Members shall have been
acquired by way of bona fide purchase, lease, or other transaction approved by the City.
Grantee or Member shall submit to City, upon request, the method utilized for vehicle
acquisition. Members may sell ortransfer a share ortaxicab under these same provisions.
(d) General Vehicle Maintenance and Repairs. Grantee shall, at its sole
expense, monitor and be responsible for all maintenance, repair, and replacement of
Grantee's and any driver/manager Member's managed taxicabs. Preventive maintenance
must. be performed at least in accordance with manufacture recommendations for each
taxicab. A copy of maintenance inspection reports, including any repair documentation,
shall be filed with City.
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(e) Age of Vehicles. No taxicab fleet vehicle authorized by this Franchise shall
be in excess of the years of age set forth in the Taxicab Rules unless otherwise authorized
in writing by City in its sole and absolute discretion.
(f) Off-Street Parking Facilities. Grantee shall provide garaging or other off-street
parking facilities within one-half mile of its main operating location(s), or as specified by the
City, where Grantee's taxicabs are to be parked when not in service or when not being
repaired or when not in the possession of a taxicab driver. Grantee shall have sufficient
vehicle parking capacity within the main operating location(s) or the garaging or off-street
parking facilities to meet the requirements for Grantee's operations, including but not
limited to vehicle inspection and maintenance, administrative functions, and training.
SECTION 8. OPERATIONS AND SERVICE -DRIVERS.
(a) Authorized Drivers. Grantee shall not issue or dispatch any taxicab operated
on behalf of this Franchise to any driver who is in violation of any terms of this Franchise,
the Santa Monica Municipal Code, Taxicab Rules, or any other applicable law, rule or
regulation.
(b) Taxicab Driver's Permits. Grantee is responsible for paying the annual
taxicab driver's permit fee for all its taxicab drivers, in accordance with the fee specified by
resolution of Council, as of the effective date of this Franchise. Taxicab driver's permits
expire each June 30th thereafter and Grantee is responsible for paying the annual taxicab
driver's permit fees and obtaining annual taxicab driver's permits for all its taxicab drivers in
accordance with Santa Monica Municipal Code Section 6.49.070(e).
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(c) Work Shifts. Drivers must check in with Grantee at the beginning and end of
each shift, and such activity shall be recorded by Grantee. Grantee must maintain daily
logs to indicate the vehicle and driver assignments for each shift at all times. Grantee or a
driver/manager Member shall make all such assignments. Grantee shall issue and collect
waybills in the manner and within the time limits established by the Taxicab Rules.
Grantee shall review waybills upon collection to ascertain that the required information is
fully and accurately provided.
(d) Independent Contractor Drivers. Grantee and its driver/manager Members
are authorized to provide taxicab services through a contracting or leasing type of
operation with an independent contractor driver. No independent contractor driver may
subcontract or sublease the vehicle, or the right to operate the vehicle, to another person.
All contracting or leasing arrangements shall be evidenced in writing and subject to City
approval. Such lease contract shall provide for the collection and documentation of lease
fees by Grantee and driver/manager Members. The lease contract shall not be instituted or
changed without City approval. The independent contractor driver shall not use a taxicab
as the driver's personal vehicle within the City except when driving to orfrom the beginning
or ending of a work shift. Grantee shall maintain current files of all lease contracts in a
central location, filed by driver, to verify compliance with these requirements.
(e) Training Program. Grantee shall provide a comprehensive screening, testing
and training program for all its drivers, including independent contractor drivers. The
training program, including curriculum and delivery, must be approved by City and must
include City and state rules and regulations; geography, including map reading, major
points of interest in the City, and familiarity with the City and surrounding areas; driver
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safety and defensive driving; vehicle safety and maintenance/inspection checks; customer
service and relations; sensitivity guidelines for disabled, frail and elderly passengers;
behind the wheel driver training; and accessible vehicle operation training and CPR
certification or equivalent for accessible vehicle drivers. City may authorize or require
additional training program components, a change in delivery of program components, or a
training facilitator or program outside of Grantee's program at Grantee's or driver's cost if
City deems such change will best serve the public interest.
(f) Drug and Alcohol Testing. Grantee is responsible for scheduling pre-
employment and pre-permitting driver drug and alcohol testing and for enrolling all current
drivers in a mandatory controlled substance and alcohol testing certification program as
mandated by California Government Code Section 53075.5, and which follows program
components and testing requirements of the Federal Code of Regulations, Title 49, Part40
and Part 382, as amended. Testing shall be conducted as a condition for initial driver
permit authorization. Annual testing shall be conducted as a condition for permit renewal.
Random testing may be conducted and additional tests may be required, including post
accident testing, rehabilitation and return-to-service testing, and reasonable suspicion
testing. Drivers must show a valid California driver's license at the time and place of
testing.
Grantee shall contract with a consultant (program administrator) and authorized lab
approved under the Federal Register to facilitate the program and shall provide a copy of
the contracts to City. Test results shall be provided to Grantee as the employing entity.
Information shall be supplied to City pertaining to any positive test results and shall include
driver name, identifying information, and driver permit status, including any entry into a
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rehabilitation program. Specific driver test results shall remain confidential, on file by driver
with Grantee, but testing information, including date of annual test and random test, and
positive or negative results, shall be available for City's review. Cost of testing shall be the
driver's responsibility, if the driver is an independent contractor of Grantee, or Grantee's
responsibility, if the driver is an employee.
In accordance with the Federal Code of Regulations, Grantee's certification program
must include information regarding the controlled substance and alcohol use policy and
procedures as well as educational materials made available to all drivers and other
pertinent staff. Grantee or its authorized agency must advise drivers of the resources
available to them to resolve problems associated with misuse of alcohol and controlled
substances. Materials for education and company policies must be made available to all
current and potential drivers and a signed statement of their receipt shall be in every
permitted driver's file and retained by Grantee.
Grantee shall train supervisory personnel in accordance with federal guidelines in
order to determine whether reasonable suspicion exists to require a driver to undergo
additional testing. Grantee shall use custody and control forms similar to that used under
the federal testing guidelines. Any changes in the federal program guidelines or otherstate
mandates will be considered by City for modification to Grantee's program.
(g) Social Benefits Programs. Grantee shall comply with all applicable local,
state and federal rules, regulations and statutes concerning mandated social benefits
programs for employees. It shall be the sole responsibility of Grantee to determine whether
legislation concerning these social benefits applies to Grantee's operations.
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SECTION 9. OPERATIONS AND SERVICE -DISPATCH, COMMUNICATION AND
SERVICE REPORTING.
(a) Radio Frequencies. Grantee shall have authorized usage of an FCC-
assigned radio frequency(s) and shall maintain the capability of two-way voice radio
communication in working order in each taxicab operating within the City under the
authorized frequency(s). Grantees operating within the same areas of the City must use
separate frequencies within the same areas. Grantee shall notify the City in writing of such
frequency(s) to be used in all areas of the City.
(b) Computer Dispatch System and Order Data. Grantee shall implement and
maintain a computer dispatch system capable of digital data communication and
geographically identifying each service call. The computer dispatch record keeping system
must also be capable of determining who is driving a particular taxicab at any time.
Grantee shall record and store service data using computer dispatch time stamping for
each telephonic or other equivalent call received and include time call was received, time
of order reservation, time of order acceptance by driver, time of arrival at service location,
time of taximeter activation, time of taximeter deactivation, and length of trip in miles.
Grantee shall provide total telephonic or other equivalent service order data to the
City monthly, within the first week of the following month in which data was collected, in a
transfer and data format as prescribed by the City. This requirement does not preclude City
personnel from reviewing Grantee's dispatch records via a modem or equivalent
connection and browsing or retrieving information.
Grantee shall also supply summary monthly data reports from telephonic or other
equivalent service calls as prescribed by the City, and as may be changed from time to
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time by the City, with minimum reporting requirements required at the beginning of this
Franchise to include service response data summaries bythe following categories: service
area; vehicle; wheelchair accessible vehicle; and wheelchair accessible vehicle, for
wheelchair accessible requested trips, aggregated for all vehicles in service. Each of the
foregoing categories will include the total number of trips separated into response
categories, including response time up to 15 minutes, between 16 and 30 minutes,
between 31 and 60 minutes, greater than 60 minutes, and no show or no load.
City may require that trips completed through requests from outside contracts or
agreements be reported separately.
Response time is defined as the period of time from dispatch of the fare (when the
trip is first offered or designated by dispatcher) to activation of the taximeter as denoted in
the dispatch record. Arrival time may be used in lieu of taximeter activation if the taxicab is
equipped with an automatic vehicle location system that can identify and verify in the
dispatch record that the vehicle was within one-quarter (1/4) mile of the arrival target, or as
otherwise defined, established and authorized by the City.
Grantee shall have 6 months from the effective date of this Franchise to establish
computer dispatch including communication with each vehicle's digital mobile data system
and reporting to the City, unless the City Manager or his or her designee authorizes an
extension of time in writing.
(c) Telephonic Service Order Response Data. Grantee shall provide a
computerized method or telephone company switching program to obtain information
pertaining to telephonic or other equivalent order response. The system must be capable
of identifying and storing information pertaining to each call received, including the length
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of time required to answer the call and the length of time each call was placed on hold, if at
all.
Grantee shall provide total telephonic or other equivalent service order response
data to the City monthly, within the first week of the following month in which data was
collected, in a transfer and data format as prescribed by the City.
Grantee shall also supply summary monthly data reports aggregated from total
telephonic or other equivalent service order response data, as prescribed by the City, with
minimum reporting requirements required at the beginning of the Franchise to include:
(1) Total number of telephonic or other equivalent service calls received;
(2) Total number of telephonic or other equivalent service calls answered
in more than 45 seconds; and
(3) Total number of telephonic or other equivalent service calls placed on
hold longer than two minutes during any period of the reservation process.
(d) Statistical Operating Data. Grantee shall provide summary statistical
operating data to the City monthly in written form pertaining to all taxicabs and types of
service requests provided within the City. Summary data shall include at minimum the total
number of all trips provided, total miles driven, total paid miles driven, total gross revenue
received, total shifts assigned, and total number of telephonic or other equivalent service
orders received. City may in its discretion direct Grantee to supply additional information.
SECTION 10. INSPECTION OF PROPERTY AND RECORDS.
(a) At all reasonable times at the City's request, Grantee shall permit any
authorized officer, employee or agent of the City to inspect all property of Grantee, and to
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examine and transcribe any and all books, accounts, papers, maps, and other records kept
or maintained by Grantee with respect to Grantee's operations, affairs, transactions,
property or financial condition. If any of the books, accounts, papers, maps, or other
records referenced in this Section are kept outside the City and the City determines that an
examination of such materials is necessary or appropriate, then all travel and maintenance
expenses necessarily-incurred in making such examination shall be paid by Grantee.
(b) Grantee shall prepare and furnish to the City, at all times and in the form
prescribed by the City, such datawith respectto Grantee's operations, affairs, transactions,
property or financial condition as may be reasonably necessary or appropriate. Requested
data may include but is not limited to: membership, lease driver, and employee records;
waybills; maintenance records; financial statements; insurance policies; taxicab fleet
schedules; dispatch records; vehicle records; affirmative action records; and contracts.
(c) Failure to comply with any City request for any information may in the City's
sole and absolute discretion result in temporary suspension of Grantee's operations.
(d) All records shall be maintained in accordance with generally accepted
accounting principles and clearly identified and readily accessible. Representatives of City
or its designees shall be allowed free access to Grantee's books and records, and have the
rights to examine, audit and make transcripts therefrom as necessary, and inspect all work,
data, documents, proceedings and activities related to this Franchise.
SECTION 11. INSURANCE REQUIREMENTS.
(a) In accordance with the requirements of the Santa Monica Municipal Code
and Taxicab Rules, Grantee shall procure and at all times maintain an insurance policy
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covering all vehicles operating under this Franchise. Insurance premiums must be paid in
advance for a minimum six-month period. Any vehicle operating without the required
coverage shall be considered under suspension, regardless of whetherthe City is aware of
the lack of coverage.
(b) Grantee shall obtain comprehensive general liability insurance, to include
contractual liability, in such amounts as the City Risk Manager may from time to time
require, insuring against any claims arising out of the activities of Grantee and its
Members, employees and drivers.
(c) Grantee shall file evidence of insurance. with the City, along with proof of
payment of the minimum six-month premium, in such form as required by and subject to
the approval of the City Risk Manager, priorto the commencement of operations underthis
Franchise. Grantee shall maintain such evidence on file with the City throughout the term
of this Franchise.
(d) Grantee's failure to procure and maintain the required insurance shall
constitute a material breach of contract under which the City may immediately suspend or
revoke and terminate this Franchise. Monetary penalties may also be assessed.
(e) Grantee shall submit to the City a quarterly summary of all taxicab accidents
including date of accident, driver name and identifying information, and vehicle number.
The City may direct Grantee to supply additional information or specify a form for such
reporting.
SECTION 12. INDEMNIFICATION, DEFENSE, HOLD HARMLESS. Exceptforthe
sole and active negligence or willful misconduct of the City, Grantee agrees to defend,
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indemnify and hold harmless City (including but not limited to the City's departments,
members of its Council, boards and commissions, officials, officers, agents, employees,
volunteers, assigns, and successors in interest) from and against all suits and causes of
action, claims, losses, demands and expenses, including but not limited to: attorney's fees
and cost of litigation; damage or liability of any nature whatsoever; death or injury to any
person, including Grantee and any of Grantee's Members, employees and agents; or
damage or destruction of any property of either party hereto or of third parties, arising in
any manner by reason of, or incident to, the performance of this Franchise on the part of
Grantee or subcontractor of any tier.
Grantee shall give the City prompt and timely written notice of any claim made or
suit instituted coming to Grantee's knowledge which may in any way directly or indirectly,
contingently or otherwise, affect either party, and both shall have the right to participate in
the defense of same to the extent of its own interest. Approval of insurance policies by the
City shall in noway affect or change the terms and conditions of this indemnity agreement.
SECTION 13. NONDISCRIMINATION: Grantee shall not discriminate in its
membership or employment practices against any Member or employee or applicant for
membership or employment, and shall not discriminate in providing taxicab services under
this Franchise, because of race, color, religion, national origin, ancestry, sex, age, sexual
orientation, marital status; medical condition, HIV/AIDS or disability, and shall comply with
the requirements of City, state and federal law, rules and regulations.
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SECTION 14. WAIVER. A waiver by City of any breach of any term, covenant, or
condition contained in this Franchise shall not be deemed to be a waiver of any
subsequent breach of the same or any other term, covenant, or condition contained in
Franchise.
SECTION 15. MONETARY PENALTIES FOR VIOLATIONS OF FRANCHISE
ORDINANCE TERMS AND CONDITIONS. The City may levy a monetary penalty on
Grantee forfailure to abide by the terms and conditions of this Franchise, as an alternative
to, or in addition to, suspension of this Franchise. Any of the following activities constitute
a violation of the terms and conditions of this Franchise and may subject Grantee to a
monetary penalty. The City's monetary assessment for a second, third and subsequent
offense, as noted in the schedule herein, shall only be applied to the same offense.
(a) Failure to submit to the City any requested or required information as
specified in this Ordinance.
(b) Fraudulent reporting to the City of any requested or required information,
including any tampering of files, data, or reports necessary to provide the required
information.
(c) Operation of unlicensed or unauthorized vehicles as taxicabs in the City,
including but not limited to the operation of previously approved taxicabs with suspended,
canceled or revoked vehicle permits and the use of vehicles licensed as taxicabs only in
other jurisdictions.
(d) Conducting any illegal or unauthorized type of public transportation operation.
(e) Unauthorized sale, lease, assignment, or other disposition of this Franchise.
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(f) Falsification of or failure to inform membership/share ownership changes.
(g) Operation of a taxicab without approved insurance on file with the City.
(h) Failure to timely submit required taxicab insurance documents to the City.
(i) Failure to provide taxicab preventive maintenance service.
(j) Failure to provide drivers, Members or personnel with training as specified in
this Ordinance or as detailed in Grantee's Plan.
(k) Failure to adhere to the policies and procedures in Grantee's Plan.
(I) Failure to provide City personnel access to Grantee's property and records.
The City may levy the following schedule of monetary penalties for these violations
against Grantee:
(a) Up to $10,000 for the first offense.
(b) Up to $25,000 for the second offense within a 12-month period.
(c) Up to a maximum of $50,000 for third and subsequent offenses within
subsequent 12-month periods.
Monetary penalties imposed pursuant to the foregoing schedule are subject to the
hearing procedure specified in Santa Monica Municipal Code Section 6.49.150, as may be
amended from time to time.
SECTION 16. REQUIREMENTS OF A CO-OPERATIVE, ASSOCIATION OR
MEMBERSHIP ORGANIZATION. If Grantee is a co-operative, association or membership
organization, the following restrictions apply:
(a) The number of Members and shares shall each be limited to the total number
of taxicabs authorized for Grantee underthis Franchise. Joint Memberships are prohibited.
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(b) .Members shall be limited to owning a maximum of five percent (5%) of the
total taxicabs and shares authorized for Grantee with the maximum figure determined by
rounding the number of vehicles and shares equivalent to five percent (5%) of the fleet to
the nearest whole number.
(c) An Investor/Shareholder Member shall not drive, control or manage any
taxicab in Grahtee. All taxicabs owned by an Investor/Shareholder shall be controlled and
managed completely by Grantee, on the Investor/Shareholder's behalf, pursuantto a City-
approved contract, between the Investor/Shareholder and Grantee. The
Investor/Shareholder shall have no control over or perform any function for a taxicab under
the control of Grantee other than being the registered owner of the taxicab.
(d) A Driver/Manager Member may not control or manage more than 3 taxicabs
in Grantee. All taxicabs owned by a DrivedManager in excess of 3 and any others that the
Member does not control or manage shall be classified as Investor/Shareholder
memberships and shall be controlled and managed completely by Grantee, on the
Member's behalf, pursuant to aCity-approved contract, between the Member and Grantee.
Grantee shall ensure that all Driver/Manager Members comply with all City laws, rules and
regulations and this Ordinance relating to the number of vehicles managed.
(e) Members must qualify for a Taxicab Vehicle Permit under the current
standards established by the City.
(f) If any Taxicab Vehicle Permit is revoked, any Driver/Manager Member who
was the cause of such revocation or cancellation will be subject to revocation or
cancellation of his or her Taxicab Driver's Permit and will be precluded from operating a
taxicab or exercising any other .rights granted by such Taxicab Driver's Permit. Any
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Driver/Manager Member whose Taxicab Driver's Permit is revoked or canceled must
convert all Driver/Manager memberships into Investor/Shareholder memberships or
transfer membership and any other taxicabs owned by the Member shall be operated,
controlled and managed by Grantee on the Member's behalf, pursuant to aCity-approved
contract, between the Member and Grantee.
(g) Grantee shall ensure that each Driver/Manager Member is aware of and
complies with any requirement of the City regarding the filing of an annual profit and loss
statement. Grantee shall submit the required statistical information quarterly or as directed
by the City.
(h) Grantee shall require all Members to enter into a security agreement, subject
to City approval, as a condition of membership in Grantee. By such agreement, the
Member grants to Grantee a security interest in the Member's taxicabs to ensure the
Member's compliance with his or her obligations as a Member.
(i) Grantee shall establish a procedure for the approval, transfer, and sale of
memberships and a procedure for dismissal of Members. Grantee shall provide information
to each Member pertaining to the Member's role in the organization, the City and the
taxicab industry, basic record keeping and reporting requirements, the City's rules and
regulations, and any other information required by the City.
(j) All agreements, including any security or membership agreements, and all
contracts, including those under which the co-operative operates vehicles on behalf of its
Members, that affect the method by which taxicabs are operated or service is provided,
shall be subject to review and approval by the City.
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(k) Grantee shall obtain vehicle liability insurance for all vehicles in the taxicab
fleet; contract with lease drivers for all vehicles in the taxicab fleet; provide maintenance for
all vehicles in the taxicab fleet; provide a computer dispatch service; collect and maintain
all records, including waybills, pertinent to its taxicab operations; collect vehicle lease fees
for vehicles in the taxicab fleet; notify Driver/Manager Members and drivers of violations
and hearings; and make all vehicle and driver assignments forvehicles it controls on behalf
of Members.
SECTION 17. 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 18. 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
newspaper within 15 days after its adoption. This Ordinance shall become effective 30
days from its adoption.
TO FORM:
HA
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City Council Meeting 11-09-2010 Santa Monica, California
ORDINANCE NUMBER (CCS)
(City Council Series)
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA
GRANTING A TAXICAB FRANCHISE TO L.A. TAXI COOPERATIVE, INC.,
DOING BUSINESS AS YELLOW CAB COMPANY, TO
PROVIDE TAXICAB SERVICES IN THE CITY OF SANTA MONICA
WHEREAS, on July 28, 2009, the City Council ("Council") of the City of Santa
Monica ("City") adopted Ordinance No. 2292 (CCS), establishing a taxicab franchise
system in orderto assure reliable, safe, quality taxicab services in the City and to eliminate
undue congestion and air pollution, disorganization, and hazards associated with the City's
previous open-entry regulated taxicab environment; and
WHEREAS, City staff completed a competitive Request for Proposals process and
evaluated the submitted proposals in accordance with criteria consistent with the Santa
Monica Municipal Code, in orderto provide Council with recommendations fortheaward of
franchises to taxicab companies; and
WHEREAS, on October 12, 2010, Council adopted Resolution No. 10533 (CCS),
declaring its intent to grant taxicab franchises to Bell Cab Company, Inc.; Independent Taxi
Owners' Association (ITOA); Metro Cab Company, LLC; TMAT Corp., doing business as
Taxi! Taxi!; and L.A. Taxi Cooperative, Inc., doing business as Yellow Cab Company, and
setting a public hearing; and
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WHEREAS, on November 9, 2010, Council held a public hearing in accordance with
City Charter Section 1601, at which all interested persons were given an opportunity to be
heard on all matters relative to the proposed granting of taxicab franchises; and
WHEREAS, based on the foregoing, Council finds that L.A. Taxi Cooperative, Inc.,
doing business as Yellow Cab Company ("Yellow Cab"), possesses the background,
knowledge, experience and expertise necessary to provide efficient and effective taxicab
services to the residents, visitors and other members of the community in the City, so as to
support the granting of this Franchise to Yellow Cab upon the terms and conditions set
forth herein,
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA
DOES HEREBY ORDAIN AS FOLLOWS:
SECTION 1. DEFINITIONS. Unless it is apparent from the context that it has a
different meaning, each of the following words and phrases has the meaning stated in this
Section wherever it is used in this Franchise:
(a) CITY means the City of Santa Monica, a municipal corporation duly organized
and validly existing under the laws of the State of California with the power to carry on its
business as it is now being conducted under the statutes of the State of California and the
Charter of the City;
(b) CO-OPERATIVE, ASSOCIATION or MEMBERSHIP means an independent
taxicab enterprise or organization owned and operated by its Members for the financial
benefit of its Members. Each authorized taxicab fleet slot correlates to a share or
ownership in the Co-operative, Association or Membership;
(c) COUNCIL means the City Council of the City of Santa Monica;
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(d) DEPARTMENT means the Police Department of the City;
(e) DRIVER/MANAGER means any Member of a co-operative, association or
membership Grantee, who drives, controls, and manages taxicabs for Grantee;
(f) GRANTEE means Yellow Cab, a California co-operative qualified to do
business in the State of California and to which this Franchise has been granted;
(g) INVESTOR/SHAREHOLDER means any Member of a co-operative,
association or membership Grantee, who does not drive, control or manage taxicabs for
Grantee;
(h) LEASE DRIVER means a person who is an independent contractor
possessing a valid Taxicab Driver's Permit and who drives a taxicab for Grantee;
(i) MEMBER means any individual person or Subchapter S corporation, as
defined in the United States Internal Revenue Code Section 1361, who owns one or more
taxicabs or shares, but not more than the maximum number authorized by this Ordinance,
in Grantee. Only those individuals applying for Investor/Shareholder membership status
may apply as a Subchapter S corporation;
(j) STREETS means the public streets, roads, highways, freeways, lanes, alleys,
sidewalks or parkways which now exist or which may hereafter exist within the City;
(k) TAXICAB DRIVER means any person possessing a valid Taxicab Driver's
Permit .driving and in immediate possession of a taxicab for the purpose of providing
taxicab transportation services in the City. A taxicab driver maybe an employee of, a lease
driver of, or a Member of Grantee;
(I) TAXICAB DRIVER'S PERMIT means anon-transferable authorization for a
taxicab driver to provide taxicab transportation services in the City;
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(m) TAXICAB FLEET means the total number of authorized taxicabs that is
managed and controlled completely by Grantee, and not by a Member of Grantee;
(n) TAXICAB RULES means the rules and regulations established for taxicab
operations in the City by the Department;
(o) TAXICAB VEHICLE PERMIT means anon-transferable authorization for a
specific taxicab to be driven or operated within the City for the purpose of providing taxicab
transportation services, whether as owner, lessor, lessee, or otherwise;
SECTION 2. GRANT OF FRANCHISE.
(a) Nature of Grant. The franchise hereby granted by City authorizes Grantee,
subject to all the terms and conditions contained in this Ordinance, the Santa Monica
Municipal Code, the Taxicab Rules, and all other applicable local, state, and federal law,
rules and regulations pertaining to taxicab operations, to provide taxicab transportation
services within the City, including picking up persons and property by taxicab within City
boundaries, transporting such persons and property for hire over any streets from within or
to the City, and standing taxicabs at designated taxicab stands within the City.
(b) Term of Franchise. This Franchise shall become effective on January 1,
2011, provided that Grantee has filed with the City Clerk, within 10 days after the adoption
of this Ordinance granting this Franchise, a written instrument, addressed to Council,
accepting and agreeing to comply with all the terms and conditions of this Franchise.
Failure to timely accept this Franchise as set forth in this Section may make this Franchise
null and void. This Franchise shall expire at 11:59 P.M., PST, on December 31, 2015,
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unless revoked or terminated earlier by City, or unless extended by City in its sole and
absolute discretion.
(c) Suspension of Franchise. City may, after due notice and an opportunityto be
heard, suspend Grantee's operations under this Franchise for one or more days pursuant
to Santa Monica Municipal Code Section 6.49.050, under any of the following grounds:
(1) Material noncompliance with any term or condition of this Franchise,
the Santa Monica Municipal Code, Taxicab Rules, or other City orders or directives; when
such noncompliance has not been cured after reasonable written notice thereof and
opportunity to cure;
(2) Grantee accumulates penalty points in a specified period oftime in an
amount greater than the allowed threshold level as provided by resolution of Council
pursuant to Santa Monica Municipal Code Section 6.49.150;
(3) Grantee fails to pay any monetary penalties in accordance with the
procedures set forth in Santa Monica Municipal Code Section 6.49.150 and any resolutions
or schedules adopted thereto; or
(4) Any of the grounds set forth in Santa Monica Municipal Code Section
6.49.050.
Any suspension of Grantee's taxicab operations may affect any extension of the
term of this Franchise and may lead to assessment of monetary penalties in addition to or
as an alternative to suspension, or recommendation for revocation of this Franchise.
(d) Revocation and Termination of Franchise. City may, after due notice and an
opportunity to be heard, revoke and terminate Grantee's Franchise pursuant to Santa
Monica Municipal Code Section 6.49.050, under any of the following grounds:
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(1) Grantee has illegally. conducted any type of public transportation
operation within the City;
(2) Any term or condition of this Franchise becomes invalid or
unenforceable and Council expressly finds that such term or condition was a consideration
material to the grant of this Franchise;
(3) The public interest would be served by revocation and termination of
this Franchise; or
(4) Any of the grounds set forth in Santa Monica Municipal Code Section
6.49.050, subdivision (b).
(e) Cumulative Remedies. City's right to suspend, revoke or terminate this
Franchise pursuant to this Section are in addition to all other rights and remedies which
may otherwise accrue to City by reason of any failure or refusal of Grantee to pertorm any
obligation imposed by the terms and conditions of this Franchise.
SECTION 3. CONSTRUCTION OF FRANCHISE.
(a) Interpretation. Unless otherwise specified, the following terms govern the
interpretation and construction of this Franchise:
(1) The singular number includes the plural, and the plural number
includes the singular;
(2) Time is of the essence of this Franchise. Grantee will not be relieved
of its obligation to promptly comply with any provision of this Franchise by any failure of
City to enforce prompt compliance with the same or any other provisions;
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(3) Any right or power conferred, or duly imposed upon, any officer,
employee, or department of City is subject to transfer by operation of law to any other
officer, employee, or department of City;
(4) Grantee will have no recourse whatsoever against City for any loss,
cost, expense, or damage arising out of any provision or requirement of this Franchise or
the enforcement thereof;
(5) This Franchise does not relieve Grantee of any requirement ofthe City
Charter, the Santa Monica Municipal Code, or any local ordinance, rule, or regulation, other
than exceptions expressly set forth in this Franchise; and
(6) -This Franchise does not constitute an exclusive grant of any right to
carry persons or property for hire within the City.
(b) Limitations upon Grantee.
(1) This Franchise does not grant or confer any privilege or exemption
upon Grantee except as otherwise specifically provided herein.
(2) This Franchise is a privilege to be held in personal trust by Grantee.
Grantee shall not sell, lease, assign, hypothecate, or otherwise transfer or dispose of this
Franchise or any interest herein directly or indirectly, by operation of law or otherwise,
without the prior written consent of City, expressed by ordinance, and then only under such
terms and conditions as may be prescribed therein. Any attempt to do so without City's
consent shall be null and void, and any purchaser, lessee, assignee, hypothecatee or
transferee shall acquire no right or interest by reason of such attempted sale, lease,
assignment, hypothecation or transfer. Any such sale, lease, assignment, or other
disposition of this Franchise shall be evidenced by a duly and jointly executed instrument in
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writing addressed to Council and filed with the City Clerk. The sale, assignment, transfer
or other disposition of any of the issued and outstanding capital stock of Grantee or of any
general partner orjoint venturer or Member of Grantee, if a partnership orjoint venture or
membership exists, which shall result in changing the control of Grantee, shall be
construed as an assignment of this Franchise. Control means fifty percent (50%) or more
of the voting power of the organization.
(c) Rights Reserved to City.
(1) There is reserved to City every right and power that is allowed or
provided by any provision of the City Charter and the Santa Monica Municipal Code, as
may be amended from time to time. Grantee, by its acceptance of this Franchise, agrees
to be bound by and to comply with any action or requirement of City in its exercise of any
such right or power.
(2) Neither the granting of this Franchise nor any of its provisions shall
constitute a waiver or bar to the exercise of any governmental right or power of City.
SECTION 4. COMPENSATION.
(a) By its acceptance of this Franchise, Grantee agrees to pay to City all
applicable fees and payments, including the annual franchise fee, Taxicab Vehicle Permit
fee, and Taxicab Driver's Permit fee for each authorized taxicab in Grantee's taxicab fleet.
(b) Grantee, at its sole expense, shall obtain and maintain during the term of this
Franchise all required business and professional permits, licenses and certificates.
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SECTION 5. TAXICAB FLEET.
(a) Fleet Size. Grantee is authorized by this Franchise to provide taxicab
services in the City through a taxicab fleet consisting of a maximum of 50 vehicles. The
number of vehicles authorized in Grantee's taxicab fleet shall be set until modified by
Council.
(b) Fleet Makeup -Wheelchair Accessible Vehicles. At least 5 ofthe authorized
taxicab fleet vehicles must be side-loading wheelchair accessible vehicles in compliance
with the Americans with Disabilities Act ("ADA") and Taxicab Rules. The City Manager or
his or her designee may require that Grantee increase the minimum number of wheelchair
accessible vehicles within its authorized taxicab fleet and may specify vehicle service
availability for general wheelchair accessible trips notwithstanding any existing contractual
arrangements.
(c) Operational Schedule.
(1) Except as otherwise provided in this Ordinance, within the first 6
months of the effective date of this Franchise, Grantee must place its taxicab fleet into
service as follows:
(i) Within the first month, at least 7 vehicles certified as Super
Ultra-Low Emission Vehicles ("SULEV") by the California Air Resources Board ("GARB"), 7
vehicles certified as Ultra-Low Emission Vehicles ("ULEV"), and 3side-loading wheelchair
accessible taxicabs;
(ii) Within the second month, at least 13 SULEV taxicabs, 13 ULEV
taxicabs, and 5side-loading wheelchair accessible taxicabs;
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(iii) Within the fourth month, at least 19 SULEV taxicabs, 19 ULEV
taxicabs, and 5side-loading wheelchair accessible taxicabs; and
(iv) Within the sixth month, 25 SULEV taxicabs, 20 ULEV taxicabs,
and 5side-loading wheelchair accessible taxicabs.
(2) Grantee's taxicab fleet must be fully operational in accordance with
this Ordinance within 6 months of the effective date of this Franchise, unless otherwise
authorized in writing by the City Manager or his or her designee, in his or her sole and
absolute discretion. Thereafter, Grantee may, upon written application to and authorization
by the City Manager or his or her designee, adjust Grantee's taxicab fleet make-up. Any
adjusted fleet make-up must be consistent with Grantee's proposed fleet submitted in
Grantee's March 2010 response to the Request for Proposals issued in January 2010.
(d) Continuous Operation. After Grantee shall have established taxicab services
pursuant to this Franchise, Grantee must ensure that, except for necessary repairs, all its
taxicabs are available for service at all times, and such service may not be suspended or
abandoned unless such suspension or abandonment is authorized or ordered, in writing,
by the City.
(e) Request for Reduction in Taxicab Fleet. Whenever Grantee may file a written
application with the City Clerk alleging that the public convenience and necessity no longer
requires Grantee to furnish taxicab services with the number of vehicles authorized under
this Franchise, Council will take evidence at a public hearing upon that question and make
a finding with respect thereto. Notice of such hearing will be given for a period of at least
15 days prior thereto by posting such notice in each of Grantee's taxicabs; such notices, in
a form satisfactory to City, are to be posted by Grantee. If Council finds after the public
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hearing that the public convenience and necessity no longer requires Grantee to furnish
taxicab services with the number of vehicles authorized underthis Franchise, Council may
authorize suspension or abandonment of such service upon such reasonable terms and
conditions as may be prescribed therein.
SECTION 6. OPERATIONS AND SERVICE -GENERAL.
(a) Compliance with Laws.
(1) All vehicles, equipment and appurtenances used underthis Franchise
shall be operated and maintained in accordance with applicable local, state and federal
laws, rules and regulations. Grantee is responsible for the compliance of its Members and
drivers, whether employees, lease drivers, or otherwise, with all such laws, ordinances,
rules and regulations.
(2) The number of taxicabs, the manner and time of taxicab operations,
the transportation service provided, and the rates or fares charged, shall at all times
conform to such rules and regulations as may from time to time be fixed or prescribed by
the Department or City.
(b) Supervision. Grantee shall provide 24-hour road and office supervision.
(c) Discount Reimbursement. Grantee shall reimburse its drivers the amount of
the discount on taxicab fares required to be provided to seniors and passengers with
disabilities, as set by resolution of Council.
(d) Complaint Resolution Procedure. Grantee shall establish a procedure,
subject to City approval, for the review and resolution of complaints from the public and
violations of company rules and Taxicab Rules by Grantee's officers, Members,
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employees, and drivers. Grantee shall provide to City a monthly summary of the number of
public complaints received.
(e) Management Personnel Information. Grantee shall provide to City, and keep
current, a list of the following:
(1) The Board of Directors and officers;
(2) All Members, by class of membership and the number of shares held
by each Member,
(3) All management and administrative personnel and theirjob titles; and
(4) All lease and employee drivers.
(f) Management Personnel. Grantee shall have full-time management, subject
to City approval, which approval shall not be unreasonably withheld, to direct activities of
the organization. City may review management credentials and background experience of
management personnel, including a criminal history and fingerprint check. Responsibilities
include, but are not limited to, establishing, maintaining and reporting the taxicab
operations and records; collecting and paying applicable fees; conducting day to day
activities, including but not limited to managing and operating the taxicab fleet;
representing Grantee in disputes and discussions between regulatory agencies and
Grantee, its drivers and Members; and adhering to Grantee's Management/Business Plan.
Management is not precluded from membership or ownership in Grantee.
(g) Management/Business Plan ("Plan"). Grantee shall submit annually to City
for City approval a Plan as set forth herein and in the Taxicab Rules. The Plan shall
establish Grantee's approach and methods to be used in meeting the requirements of this
Frahchise, the Santa Monica Municipal Code, the Taxicab Rules, and City, state and
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federal law, rules and regulations. The Plan will be used as the basis for evaluating
Grantee's capability to provide taxicab services in accordance with the service demands of
the public and City standards. Any specific sub-items and components under each Plan
category will be supplied by City, as may be amended from time to time. Minimum
categories to be addressed in the Plan include:
(1) Grantee Organizational Structure and Procedures;
(2) Management/Administrative Structure and Procedures;
(3) Financial Status and Related Information;
(4) Dispatch and Communications -Description of Facilities, Personnel
and Technology;
(5) Operating Location(s), Storage/Parking of Vehicles, Maintenance and
Inspection -Description of Facilities and Personnel;
(6) Programs and Activities for Driver Training, Testing, Supervision and
Social Benefits;
(7) Vehicle Maintenance and Inspection;
(8) Procedures for Maintaining Service Levels, Programs forAddressing
Service Deficiencies;
(9) Service/Operation Procedures for Discipline, Driver Evaluation,
Complaint Processing and Accident/Safety Control;
(10) Special Programs, Agreements and Services;
(11) Record Keeping; and
(12) Grantee's Plan Evaluation & Response to Changes or Additions.
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Grantee shall complywith its Plan at all times. City may review Grantee's adherence to the
Plan at any time as deemed necessary by City.
SECTION 7. OPERATIONS AND SERVICE -TAXICABS.
(a) Taxicab Vehicle Permits. Grantee is responsible for paying the annual
taxicab vehicle permit fee for all taxicabs in its fleet, in accordance with the fee specified by
resolution of Council, as of the effective date of this Franchise. Taxicab vehicle permits
expire each June 30th thereafter, and Grantee is responsible for paying the annual taxicab
vehicle permit fees and obtaining annual taxicab vehicle permits for all taxicabs in its fleet
in accordance with Santa Monica Municipal Code Section 6.49.040(1)(2).
(b) Taxicab Operations. All taxicabs used by Grantee within the City must be
operated in accordance with, and Grantee shall not permit any taxicab to be driven which is
in violation of, this Franchise, the Santa Monica Municipal Code, and Taxicab Rules.
(c) Registration and Acquisition of Vehicles. All taxicabs operated under this
Franchise must be registered to either Grantee or a Member of Grantee. Taxicabs must
either be owned by Grantee, a Member, a commercial lending agency, or leased from a
licensed leasing agency whose primary business is the sale or leasing of vehicles. Any
taxicab utilized by Grantee which is owned by it or one of its Members shall have been
acquired by way of bona fide purchase, lease, or other transaction approved by the City
Grantee or Member shall submit to City, upon request, the method utilized for vehicle
acquisition. Members may sell or transfer a share ortaxicab under these same provisions.
(d) General Vehicle Maintenance and Repairs. Grantee shall, at its sole
expense, monitor and be responsible for all maintenance, repair, and replacement of
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Grantee's and any driver/manager Member's managed taxicabs. Preventive maintenance
must be performed at least in accordance with manufacture recommendations for each
taxicab. A copy of maintenance inspection reports, including any repair documentation,
shall be filed with City.
(e) Age of Vehicles. No taxicab fleet vehicle authorized by this Franchise shall
be in excess of the years of age set forth in the Taxicab Rules unless otherwise authorized
in writing by City in its sole and absolute discretion.
(f) Off-Street Parking Facilities. Grantee shall provide garaging or other off-street
parking facilities within one-half mile of its main operating location(s), or as specified by the
City, where Grantee's taxicabs are to be parked when not in service or when not being
repaired or when not in the possession of a taxicab driver. Grantee shall have sufficient
vehicle parking capacity within the main operating location(s) or the garaging oroff-street
parking facilities to meet the requirements for Grantee's operations, including but not
limited to vehicle inspection and maintenance, administrative functions, and training.
SECTION 8. OPERATIONS AND SERVICE -DRIVERS.
(a) .Authorized Drivers. Grantee shall not issue or dispatch any taxicab operated
on behalf of this Franchise to any driver who is in violation of any terms of this Franchise,
the Santa Monica Municipal Code, Taxicab Rules, or any other applicable law, rule or
regulation.
(b) Taxicab Driver's Permits. Grantee is responsible for paying the annual
taxicab driver's permit fee for all its taxicab drivers, in accordance with the fee specified by
resolution of Council, as of the effective date of this Franchise. Taxicab driver's permits
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expire each June 30th thereafter and Grantee is responsible for paying the annual taxicab
driver's permit fees and obtaining annual taxicab driver's permits for all its taxicab drivers in
accordance with Santa Monica Municipal Code Section 6.49.070(e).
(c) Work Shifts. Drivers must check in with Grantee at the beginning and end of
each shift, and such activity shall be recorded by Grantee. Grantee must maintain daily
logs to indicate the vehicle and driver assignments for each shift at all times. Grantee or a
driver/manager Member shall make all such assignments. Grantee shall issue and collect
waybills in the manner and within the time limits established by the Taxicab Rules.
Grantee shall review waybills upon collection to ascertain that the required information is
fully and accurately provided.
(d) Independent Contractor Drivers. Grantee and its driver/manager Members
are authorized to provide taxicab services through a contracting or leasing type of
operation with an independent contractor driver. No independent contractor driver may
subcontract or sublease the vehicle; or the right to operate the vehicle, to another person.
All contracting or leasing arrangements shall be evidenced in writing and subject to City
approval. Such lease contract shall provide for the collection and documentation of lease
fees by Grantee and driver/manager Members. The lease contract shall not be instituted or
changed without City approval. The independent contractor driver shall not use a taxicab
as the driver's personal vehicle within the City except when driving to or from the beginning
or ending of a work shift. Grantee shall maintain current files of all lease contracts in a
central location, filed by driver, to verify compliance with these requirements.
(e) Training Program. Grantee shall provide a comprehensive screening, testing
and .training program for all its drivers, including independent contractor drivers. The
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training program, including curriculum and delivery, must be approved by City and must
include City and state rules and tegulations; geography, including map reading, major
points of interest in the City, and familiarity with the City and surrounding areas; driver
safety and defensive driving; vehicle safety and maintenance/inspection checks; customer
service and relations; sensitivity guidelines for disabled, frail and elderly passengers;
behind the wheel driver training; and accessible vehicle operation training and CPR
certification or equivalent for accessible vehicle drivers. City may authorize or require
additional training program components, a change in delivery of program components, or a
training facilitator or program outside of Grantee's program at Grantee's or driver's cost if
City deems such change will best serve the public interest.
(f) Drug and Alcohol Testing. Grantee is responsible for scheduling pre-
employment and pre-permitting driver drug and alcohol testing and for enrolling all current
drivers in a mandatory controlled substance and alcohol testing certification program as
mandated by California Government Code Section 53075:5, and which follows program
components and testing requirements of the Federal Code of Regulations, Title 49, Part 40
and Part 382, as amended. Testing shall be conducted as a condition for initial driver
permit authorization. Annual testing shall be conducted as a condition for permit renewal.
Random testing may be conducted and additional tests may be required, including post
accident testing, rehabilitation and return-to-service testing, and reasonable suspicion
testing. Drivers must show a valid California driver's license at the time and place of
testing.
Grantee shall contract with a consultant (program administrator) and authorized lab
approved under the Federal Register to facilitate the program and shall provide a copy of
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the contracts to City. Test results shall be provided to Grantee as the employing entity.
Information shall be supplied to City pertaining to any positive test results and shall include
driver name, identifying information, and driver permit status, including any entry into a
rehabilitation program. Specific drivertest results shall remain confidential, on file by driver
with Grantee, but testing information, including date of annual test and random test, and
positive or negative results, shall. be available for City's review. Cost of testing shall be the
driver's responsibility, if the driver is an independent contractor of Grantee, or Grantee's
responsibility, if the driver is an employee.
In accordance with the Federal Code of Regulations, Grantee's certification program
must include information regarding the controlled substance and alcohol use policy and
procedures as well as educational materials made available to all drivers and other
pertinent staff. Grantee or its authorized agency must advise drivers of the resources
available to them to resolve problems associated with misuse of alcohol and controlled
substances. Materials for education and company policies must be made available to all
current and potential drivers and a signed statement of their. receipt shall be in every
permitted driver's file and retained by Grantee.
Grantee shall train supervisory personnel in accordance with federal guidelines in
order to determine whether reasonable suspicion exists to require a driver to undergo
additional testing. Grantee shall use custody and control forms similarto that used under
the federal testing guidelines. Any changes in the federal program guidelines or other state
mandates will be considered by City for modification to Grantee's program.
(g) Social Benefits Programs. Grantee shall comply with all applicable local,
state and federal rules, regulations and statutes concerning mandated social benefits
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programs for employees. It shall be the sole responsibility of Grantee to determine whether
legislation concerning these social benefits applies to Grantee's operations.
SECTION 9. OPERATIONS AND SERVICE -DISPATCH, COMMUNICATION AND
SERVICE REPORTING.
(a) Radio Frequencies. Grantee shall have authorized usage of an FCC-
assigned radio frequency(s) and shall maintain the capability of two-way voice radio
communication in working order in each- taxicab operating within the City under the
authorized frequency(s). Grantees operating within the same areas of the City must use
separate frequencies within the same areas. Grantee shall notify the City in writing of such
frequency(s) to be used in all areas of the City.
(b) Computer Dispatch System and Order Data. Grantee shall implement and
maintain a computer dispatch system capable of digital data communication and
geographically identifying each service call. The computer dispatch record keeping system
must also be capable of determining who is driving a particular taxicab at any time.
Grantee shall record and store service data using computer dispatch time stamping for
each telephonic or other equivalent call received and include time call was received, time
of order reservation, time of order acceptance by driver, time of arrival at service location,
time of taximeter activation, time of taximeter deactivation, and length of trip in miles.
Grantee shall provide total telephonic or other equivalent service order data to the
City monthly, within the first week of the following month in which data was collected, in a
transfer and data format as prescribed by the City. This requirement does not preclude City
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personnel from reviewing Grantee's dispatch records via a modem or equivalent
connection and browsing or retrieving information.
Grantee shall also supply summary monthly data reports from telephonic or other
equivalent service calls as prescribed by the City, and as may be changed from time to
time by the City, with minimum reporting requirements required at the beginning of this
Franchise to include service response data summaries by the following categories: service
area; vehicle; wheelchair accessible vehicle; and wheelchair accessible vehicle, for
wheelchair accessible requested trips, aggregated for all vehicles in service. Each of the
foregoing categories will include the total number of trips separated into response
categories, including response ..time up to 15 minutes, between 16 and 30 minutes,
between 31 and 60 minutes, greater than 60 minutes, and no show or no load.
City may require that trips completed through requests from outside contracts or
agreements be reported separately.
Response time is defined as the period of time from dispatch of the fare (when the
trip is first offered or designated by dispatcher) to activation of the taximeter as denoted in
the dispatch record. Arrival time may be used in lieu of taximeter activation if the taxicab is
equipped with an automatic vehicle location system that can identify and verify in the
dispatch record that the vehicle was within one-quarter (1/4) mile of the arrival target, or as
otherwise defined, established and authorized by the City.
Grantee shall have 6 months from the effective date of this Franchise to establish
computer dispatch including communication with each vehicle's digital mobile data system
and reporting to the City, unless the City Manager or his or her designee authorizes an
extension of time in writing.
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(c) Telephonic Service Order Response Data. Grantee shall provide a
computerized method or telephone company switching program to obtain information
pertaining to telephonic or other equivalent order response. The system must be capable
of identifying and storing information pertaining to each call received, including the length
of time required to answer the call and the length of time each call was placed on hold, if at
all.
Grantee shall provide total telephonic or other equivalent service order response
data to the City monthly, within the first week of the following month in which data was
collected, in a transfer and data format as prescribed by the City.
Grantee shall also supply summary monthly data reports aggregated from total
telephonic or other equivalent service order response data, as prescribed by the City, with
minimum reporting requirements required at the beginning of the Franchise to include:
(1) Total number of telephonic or other equivalent service calls received;
(2) Total number of telephonic or other equivalent service calls answered
in more than 45 seconds; and
(3) Total number of telephonic or other equivalent service calls placed on
hold longer than two minutes during any period of the reservation process.
(d) Statistical Operating Data. Grantee shall provide summary statistical
operating data to the City monthly in written form pertaining to all taxicabs and types of
service requests provided within the City. Summary data shall include at minimum the total
number of all trips provided, total miles driven, total paid miles driven, total gross revenue
received, total shifts assigned, and total number of telephonic or other equivalent service
orders received. City may in its discretion direct Grantee to supply additional information.
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SECTION 10. INSPECTION OF PROPERTY AND RECORDS.
(a) At all reasonable times at the City's request, Grantee shall permit any
authorized officer, employee or agent of the City to inspect all property of Grantee, and to
examine and transcribe any and all books, accounts, papers, maps, and other records kept
or maintained by Grantee with respect to Grantee's operations, affairs, transactions,
property or financial condition. If any of the books, accounts, papers, maps, or other
records referenced in this Section are kept outside the City and the City determines that an
examination of such materials is necessary or appropriate, then all travel and maintenance
expenses necessarily incurred in making such examination shall be paid by Grantee.
(b) Grantee shall prepare and furnish to the City, at all times and in the form
prescribed by the City, such data with respect to Grantee's operations, affairs, transactions,
property or financial condition as may be reasonably necessary or appropriate. Requested
data may include but is not limited to: membership, lease driver, and employee records;
waybills; maintenance records; financial statements; insurance policies; taxicab fleet
schedules; dispatch records; vehicle records; affirmative action records; and contracts.
(c) Failure to comply with any City request for any information may in the City's
sole and absolute discretion result in temporary suspension of Grantee's operations.
(d) All records shall be maintained in accordance with generally accepted
accounting principles and clearly identified and readily accessible. Representatives of City
or its designees shall be allowed free access to Grantee's books and records, and have the
rights to examine, audit and make transcripts therefrom as necessary, and inspect all work,
data, documents, proceedings and activities related to this Franchise.
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SECTION 11. INSURANCE REQUIREMENTS.
(a) In accordance with the requirements of the Santa Monica Municipal Code
and Taxicab Rules, Grantee shall procure and at all times maintain an insurance policy
covering all vehicles operating under this Franchise. Insurance premiums must be paid in
advance for a minimum six-month period. Any vehicle. operating without the required
coverage shall be considered under suspension, regardless of whetherthe City is aware of
the lack of coverage.
(b) Grantee shall obtain comprehensive general liability insurance, to include
contractual liability, in such amounts as the City Risk Manager may from time to time
require, insuring against any claims arising out of the activities of Grantee and its
Members, employees and drivers.
(c) Grantee shall file evidence of insurance with the City, along with proof of
payment of the minimum six-month premium, in such form as required by and subject to
the approval of the City Risk Manager, prior to the commencement of operations underthis
Franchise. Grantee shall maintain such evidence on file with the City throughout the term
of this Franchise
(d) Grantee's failure to procure and maintain the required insurance shall
constitute a material breach of contract under which the City may immediately suspend or
revoke and terminate this Franchise. Monetary penalties may also be assessed.
(e) Grantee shall submit to the City a quarterly summary of all taxicab accidents
including date of accident, driver name and identifying information, and vehicle number.
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The City may direct Grantee to supply additional information or specify a form for such
reporting.
SECTION 12. INDEMNIFICATION, DEFENSE, HOLD HARMLESS. Exceptforthe
sole and active negligence or willful misconduct of the City, Grantee agrees to defend,
indemnify and hold harmless City (including but not limited to the City's departments,
members of its Council, boards and commissions, officials, officers, agents, employees,
volunteers, assigns, and successors in interest) from and against all suits and causes of
action, claims, losses, demands and expenses, including but not limited to: attorney's fees
and cost of litigation; damage or liability of any nature whatsoever; death or injury to any
person, including Grantee and any of Grantee's Members, employees and agents; or
damage or destruction of any property of either party hereto or of third parties, arising in
any manner by reason of, or incident to, the performance of this Franchise on the part of
Grantee or subcontractor of any tier.
Grantee shall give the City prompt and timely written notice of any claim made or
suit instituted coming to Grantee's knowledge which may in any way directly or indirectly,
contingently or otherwise, affect either party, and both shall have the right to participate in
the defense of same to the extent of its own interest. Approval of insurance policies by the
City shall in noway affect or change the terms and conditions of this indemnity agreement.
SECTION 13. NONDISCRIMINATION. Grantee shall not discriminate in its
membership or employment practices against any Member or employee or applicant for
membership or employment, and shall not discriminate in providing taxicab services under
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this Franchise, because of race, color, religion, national origin, ancestry, sex, age, sexual
orientation, marital status, medical condition, HIV/AIDS or disability, and shall comply with
the requirements of City, state and federal law, rules and regulations.
SECTION 14. WAIVER. A waiver by City of any breach of any term, covenant, or
condition contained in this Franchise shall not be deemed to be a waiver of any
subsequent breach of the same or any other term, covenant, or condition contained in
Franchise.
SECTION 15. MONETARY PENALTIES FOR VIOLATIONS OF FRANCHISE
ORDINANCE TERMS AND CONDITIONS. The City may levy a monetary penalty on
Grantee forfailure to abide by the terms and conditions of this Franchise, as ah alternative
to, or in addition to, suspension of this Franchise. Any of the following activities constitute
a violation of the terms and conditions of this Franchise and may subject Grantee to a
monetary penalty. The City's .monetary assessment for a second, third and subsequent
offense, as noted in the schedule herein, shall only be applied to the same offense.
(a) Failure to submit to the City any requested or required information as
specified in this Ordinance.
(b) Fraudulent reporting to the City of any requested or required information,
including any tampering of files, data, or reports necessary to provide the required
information.
(c) Operation of unlicensed or unauthorized vehicles as taxicabs in the City,
including but not limited to the operation of previously approved taxicabs with suspended,
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canceled or revoked vehicle permits and the use of vehicles licensed as taxicabs only in
other jurisdictions.
(d) Conducting any illegal or unauthorized type of public transportation operation.
(e) Unauthorized sale, lease, assignment, or other disposition of this Franchise.
(f) Falsification of or failure to inform membership/share ownership changes.
(g) Operation of a taxicab without approved insurance on file with the City.
(h) Failure to timely submit required taxicab insurance documents to the City.
(i) Failure to provide taxicab preventive maintenance service.
Q) Failure to provide drivers, Members or personnel with training as specified in
this Ordinance or as detailed in Grantee's Plan.
(k) Failure to adhere to the policies and procedures in Grantee's Plan.
(I) Failure to provide City personnel access to Grantee's property and records.
The City may levy the following schedule of monetary penalties for these violations
against Grantee:
(a) Up to $10,000 for the first offense.
(b) Up to $25,000 for the second offense within a 12-month period.
(c) Up to a maximum of $50,000 for third and subsequent offenses within
subsequent 12-month periods.
Monetary penalties imposed pursuant to the foregoing schedule are subject to the
hearing procedure specified in Santa Monica Municipal Code Section 6.49.150, as may be
amended from time to time.
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SECTION 16. REQUIREMENTS OF A CO-OPERATIVE, ASSOCIATION OR
MEMBERSHIP ORGANIZATION. If Grantee is a co-operative, association or membership
organization, the following restrictions apply:
(a) The number of Members and shares shall each be limited to-the total number
of taxicabs authorized for Grantee underthis Franchise. Joint Memberships are prohibited.
(b) Members shall be limited to owning a maximum of five percent (5%) of the
total taxicabs and shares authorized for Grantee with the maximum figure determined by
rounding the number of vehicles and shares equivalent to five percent (5%) of the fleet to
the nearest whole number.
(c) An Investor/Shareholder Member shall not drive, control or manage any
taxicab in Grantee. All taxicabs owned by an Investor/Shareholder shall be controlled and
managed completely by Grantee, on the Investor/Shareholder's behalf, pursuant to a City-
approved contract, between the Investor/Shareholder and Grantee. The
Investor/Shareholder shall have no control over or perform any function for a taxicab under
the control of Grantee other than being the registered owner of the taxicab.
(d) A Driver/Manager Member may not control or manage more than 3 taxicabs
in Grantee. All taxicabs owned by a Driver/Manager in excess of 3 and any others that the
Member does not control or manage shall be classified as Investor/Shareholder
memberships and shall be controlled and managed completely by Grantee, on the
Member's behalf, pursuant to aCity-approved contract, between the Member and Grantee.
Grantee shall ensure that all Driver/Manager Members comply with all City laws, rules and
regulations and this Ordinance relating to the number of vehicles managed.
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(e) Members must qualify for a Taxicab Vehicle Permit under the current
standards established by the City.
(f) If any Taxicab Vehicle Permit is revoked, any Driver/Manager Member who
was the cause of such revocation or cancellation will be subject to revocation or
cancellation of his or her Taxicab Driver's Permit and will be precluded from operating a
taxicab or exercising any other rights granted by such Taxicab Driver's Permit. Any
Driver/Manager Member whose Taxicab Driver's Permit is revoked or canceled must
convert all Driver/Manager memberships into Investor/Shareholder memberships or
transfer membership and any other taxicabs owned by the Member shall be operated,
controlled and managed by Grantee on the Member's behalf, pursuant to aCity-approved
contract, between the Member and Grantee.
(g) Grantee shall ensure that each Driver/Manager Member is aware of and
complies with any requirement of the City regarding the filing of an annual profit and loss
statement. Grantee shall submit the required statistical information quarterly or as directed
by the City.
(h) Grantee shall require all Members to enter into a security agreement, subject
td City approval, as a condition of membership in Grantee. By such agreement, the
Member grants to Grantee a security interest in the Member's taxicabs to ensure the
Member's compliance with his or her obligations as a Member.
(i) Grantee shall establish a procedure for the approval, transfer, and sale of
memberships and a procedure for dismissal of Members. Grantee shall provide information
to each Member pertaining to the Member's role in the organization, the City and the
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taxicab industry, basic record keeping and reporting requirements, the City's rules and
regulations, and any other information required by the City.
Q) All agreements, including any security or membership agreements, and all
contracts, including those under which the co-operative operates vehicles on behalf of its
Members, that affect the method by which taxicabs are operated or service is provided,
shall be subject to review and approval by the City.
(k) Grantee shall obtain vehicle liability insurance for all vehicles in the taxicab
fleet; contract with lease drivers for all vehicles in the taxicab fleet; provide maintenance for
all vehicles in the taxicab fleet; provide a computer dispatch service; collect and maintain
all records, including waybills, pertinent to its taxicab operations; collect vehicle lease fees
for vehicles in the taxicab fleet; notify Driver/Manager Members and drivers of violations
and hearings; and make all vehicle and driver assignments for vehicles it controls on behalf
of Members.
SECTION 17. 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
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declared invalid or unconstitutional without regard to whether any portion of the ordinance
would be subsequently declared invalid or unconstitutional
SECTION 18. 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
newspaper within 15 days after its adoption. This Ordinance shall become effective 30
days from its adoption.
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APPROVED AS TO FORM:
Reference Resolution Nos.
10542 (CCS) and 10543
(ccs).