sr-112310-7cCity Council Meeting: November 23, 2010
Agenda Item: ~'"-'~
To: Mayor and City Council
From: Carol Swindell, Director of Finance
Subject: Ordinance Increasing the Maximum Number of Taxicabs
Recommended Action
Staff recommends that City Council introduce for first reading an ordinance amending
Santa Monica Municipal Code Section 6.49.040 (d) to increase the maximum number of
taxicabs permitted under the terms of the proposed franchise system to 300.
Executive Summary
At its November 9. 2010 meeting, Council introduced for first reading ordinances
granting taxicab franchises to Bell Cab Company, Independent Taxi Owners
Association, Metro Cab Company, Taxi Taxi, and Yellow Cab Company. Council also
directed staff to return to Council with necessary actions to increase the maximum
number of permitted taxicabs to 300. The recommended ordinance change would
increase projected revenue by approximately $25,000 annually.
Discussion
The 2008 Nelson\Nvgaard Santa Monica Taxi Studv concluded, among other findings,
that Santa Monica has too many taxicabs. The study included an extensive discussion
of methodologies to determine the right number of taxicabs for Santa Monica. The study
looked at numerous factors, including an economic analysis, on-street data collection,
and comparisons to comparable cities. The study concluded that the optimal number of
taxicabs in Santa Monica was between 200 and 300. At its July 28, 2009 meeting,
Council approved an ordinance that set the maximum number of taxicabs at 250, the
midpoint of the recommended range.
At its November 9, 2010 meeting, Council introduced for first reading ordinances
granting taxicab franchises to BeII Cab Company, Independent Taxi .Owners
Association, Metro Cab Company, Taxi Taxi, and Yellow Cab Company. During
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discussions related to the proposed franchise system, Council expressed concern about
the total number of taxicabs, including:
• The number of taxicabs .permitted in Santa Monica that could also be permitted
to serve Los Angeles and other surrounding cities;
• Ensuring that 250 taxicabs are available for passengers in Santa Monica at all
times, given that some taxicabs would. be transporting passengers to
destinations outside the city, such as Los Angeles International Airport; and
• That 250 taxicabs may not be sufficient, given the range in the Nelson\Nygaard
recommendation and the number of large events that take place in the city, such
as GLOW, L. A. Marathon and American Film Market.
Council then directed staff to prepare necessary ordinances to increase the maximum
number of permitted taxicabs to 300, which is the maximum number recommended in
the Nelson\Nygaard study. The attached ordinance modifies Santa Monica Municipal
Code Section 6.49.040 (d), increasing the total number of permitted taxicabs to 300.
Financial Impacts & Budget Actions
The proposed ordinance would increase revenue by approximately $25,000 annually
due to the additional number of taxicabs.
Prepared by: Donald P. Patterson, Business & Revenue Operations Manager
Approved:
~G~~'r 7 i'~~~iU/ ,
Carol Swindell v
Director of Finance
Forwarded to Council:
~-
Rod Gould
City Manager
Attachments:
Ordinance modifying Municipal Code Section 6.49.040(d)
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City Council Meeting 11-23-2010
Santa Monica, California
ORDINANCE NUMBER (CCS)
(City Council Series)
AN ORDINANCE OF THE CITY COUNCIL
OF THE CITY OF SANTA MONICA AMENDING
SECTION 6.49.040 OF ARTICLE VI OF THE SANTA MONICA
MUNICIPAL CODE REGARDING TAXICABS
WHEREAS, on July 28, 2009, the City Council 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, Section 6.49.040 of the Santa Monica Municipal Code sets'the
maximum number of taxicabs permitted to operate under the terms of all franchises
granted by the City at 250 taxicabs; and
WHEREAS, Nelson/Nygaard Consulting Associates' 2008 Santa Monica Taxi
Study Technical Memorandum and Executive Summary recommended that Santa
Monica establish a total cap of between 200 and 300 taxicabs authorized to operate in
the City; and
WHEREAS, given the large number of special events occurring within the City,
the fact that some of the taxicabs permitted to operate in the City could also be
permitted to operate in other cities, and the likelihood that at any given time, some
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taxicabs permitted to operate in the City will be transporting passengers to or from Los
Angeles International Airport, 250 taxicabs may not be sufficient to serve the City's
taxicab transportation needs; and
WHEREAS, the City finds that increasing the maximum number of taxicabs in
the City to 300 will better serve the taxicab transportation needs of residents, visitors,
businesses, and other members of the community in the City;
THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES HEREBY
ORDAIN AS FOLLOWS:
SECTION 1. Section 6.49:040 of Chapter 6.49 of Article VI of the Santa Monica
Municipal Code is hereby amended as follows:
(a) The City may in its discretion award one or more, but no more than eight,
nonexclusive franchises for the operation of taxicab services within the City. Upon issuance
of one or more franchises, the City shall not accept new or renewal applications for an
existing business license, decal. or police permit to operate a taxicab service and it shall be
unlawful for any person other than a taxicab franchisee and its employees or authorized
agents to operate, engage in the business of operating, or cause to be operated any
taxicab service within the City.
(b) Franchises shall be awarded through a competitive process initiated through
a request for proposals issued by the City. A franchise applicant shall propose to operate
no less than twenty-five vehicles in the franchise fleet. Franchise proposals will be
evaluated based upon criteria including, but not limited to, the following: the emissions
standards and fuel economy of taxicabs; the age and condition of taxicabs; provision of a
centralized dispatch system; past experience, including demonstrated quality of service
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and safety; driver training and qualifications; financial stability; insurance; record of
violations by the bidder or bidder's drivers of Federal, State or local law, and rules and
regulations relating to taxicab operations, particularly safety operations; extra services
available to the public, including discounts for seniors and those with disabilities; and
benefits available to drivers and employees. Additionally, there shall be a local preference.
Taxicab franchise proposals shall be examined and evaluated by a committee established
by the City Manager, which shall make recommendations to the City Council. Upon the
award of a franchise, the franchisee shall enter into a franchise agreement with the City.
The franchise agreement may impose obligations on the franchisee that are additional to
but not inconsistent with those imposed pursuant to this Chapter.
(c) The City may at any time initiate a competitive bidding process for the
issuance of new franchises. Nothing shall prohibit a taxicab franchisee from competing for
a new franchise; however, any taxicab franchisee whose franchise has been revoked shall
thereafter be prohibited from competing for award of a franchise for a period of three years
following the scheduled expiration of its franchise agreement.
(d) The maximum number of taxicabs permitted to operate under the terms of all
franchises granted by the City shall not exceed tvve three hundred-aad-fi#ty taxicabs, which
number may be adjusted by City Council from time to time.
(e) After notice and a hearing, the City Council may at any time reduce the total
maximum number of taxicabs operating within the City, upon finding that the number of
taxicabs is detrimental to the public health, safety, or welfare. If the City Council reduces
the number of permitted taxicabs, the reduction shall be reasonably allocated amongst
existing franchisees.
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(f) The City Council may schedule a public hearing to determine, by resolution,
whether the public convenience and necessity require the operation of additional taxicabs
in the City. Any such resolution shall specify the number of additional taxicabs permitted.
Any determination that the public convenience and necessity require the operation of
additional taxicabs in the City shall include, but are not limited to, findings that:
(1) The additional taxicabs will not substantially impair the ability of existing
franchisees, under efficient management, to earn a fair and reasonable return on their
capital investments in their franchises;
(2) Existing franchisees, under normal conditions, are not fulfilling the need for
taxicab services in the City; and
(3) The additional taxicabs, togetherwith the taxicabs then currently operating in
the City, will not unduly congest, overburden, or interfere with any traffic circulation, public
street access, public or private parking, or stands, or otherwise create any danger or
hazard to the public health, safety, or welfare.
(g) No franchisee shall operate a taxicab within the City unless the Police
Department has issued and the franchisee possesses a current taxicab vehicle permit for
that specific vehicle.
(h) No taxicab franchisee shall permit any driver in its employ to operate, and no
driver shall operate, a taxicab in .the City into which passengers are accepted for
transportation without having first obtained. a valid driver's permit from the Police
Department and paid to the City the required taxicab driver's permit fee.
(i) Fees.
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(1) Annual Franchise Fee. Each taxicab franchisee shall pay to the City an
annual fee for the privilege of operating a taxicab service in the City. Such payment shall
be in addition to any other prescribed fees, including but not limited to, business license
and permit fees. The franchise fee shall be due upon execution ofthe franchise agreement
and payable on each anniversary date thereafter; unless otherwise specified in the
franchise agreement. Failure to pay the franchisee fee when due shall be cause for
revocation of the franchise.
(2) Annual Taxicab Vehicle Permit Fee. Each taxicab franchisee shall be
required annually to obtain a taxicab vehicle permit and to pay to the City an annual taxicab
vehicle permit fee for each taxicab operating under its franchise. Any taxicab vehicle permit
issued pursuant to a franchise prior to June 30, 2011, shall expire on June 30, 2011,
unless revoked or suspended prior to that date pursuant to this Chapter. Taxicab vehicle
permits issued after June 30, 2011, shall expire at midnight on the June 30th next
succeeding its issuance, unless revoked or suspended prior to that date pursuant to this
Chapter.
SECTION 2. Any provision of the Santa Monica Municipal Code or appendices
thereto inconsistent with the provisions of this Ordinance, to the extent of such
inconsistencies and no further, is hereby repealed or modified to that extent necessary to
effect the provisions of this Ordinance.
SECTION 3. 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
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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 4. 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:
G ~ ~~
M RSHA NES M RIE
Cit ttor e
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