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O2370City Council Meeting 10 -11 -2011 Santa Monica, California ORDINANCE NUMBER 2370 (CCS) (City Council Series) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA AMENDING CHAPTERS 6.48 AND 6.49 OF ARTICLE VI OF THE SANTA MONICA MUNICIPAL CODE REGARDING VEHICLES FOR HIRE WHEREAS, for years, it has been a common practice in the City for owners and operators of hotels, motels, and other business establishments to have arrangements for compensation with taxicab or other vehicle for hire companies to ensure privileged access to customers, and for employees and agents of such establishments to demand, solicit, and accept, and for taxicab or other vehicle for hire drivers to offer and pay, compensation in exchange for such privileged access; and WHEREAS, this practice fosters unfair competition and an unfair working environment for companies and drivers, and imposes financial hardships on drivers, which results in less courteous and efficient service to the public because of a negative incentive to recoup payments from the public by increasing overcharges, using circuitous routes, or other discourteous behavior, and is thereby detrimental to the public health, safety, and general welfare; and WHEREAS, the taxicab rules and regulations adopted by the Santa Monica Police Department pursuant to Santa Monica Municipal Code Section 6.49.020 prohibit taxicab franchisees from entering into any arrangements or agreements for compensation with any hotel, motel, or other business establishment, public or private agency, or organization in the City; and WHEREAS, the taxicab rules and regulations also prohibit taxicab drivers from offering or paying any bribe or gratuity to any employee or agent of a hotel, motel, or other business establishment, public or private agency, or organization in the City, for privileged access to passengers at the hotel, motel, or other business establishment, public or private agency, or organization in the City; and WHEREAS, the foregoing rules were adopted to combat discrimination by businesses against taxicab companies and drivers, to ensure equal competition and equal access to passengers, to prevent negative impacts on driver income, to facilitate more efficient taxicab services, and to improve customer service; and WHEREAS, notwithstanding the foregoing rules, the prevailing practice among owners, operators, employees, and agents of a hotel, motel, or other business establishment to solicit, demand, and accept payment from taxicab franchisees and drivers in exchange for privileged access to passengers continues unabated; and WHEREAS, taxicab franchisees and drivers who refuse to provide such compensation (commonly referred to as "kickbacks" or "cookies "), in compliance with the foregoing rules, are consistently refused access to passengers or even access to business premises that provide a taxicab stand or hack stand; and WHEREAS, based on the foregoing, it is necessary to prohibit the practice of kickbacks and discrimination against companies and drivers with respect to access to passengers and to premises that provide a hack stand, in order to promote fair 2 competition, equal opportunities, and more efficient service to the public, which will in turn promote the public health, safety, and general welfare; and WHEREAS, since the implementation of the taxicab franchise program, there has been an increase in the number of charter -party carriers registered with the Public Utilities Commission that operate within the City, requiring modification to the definition of a "vehicle for hire" under the Santa Monica Municipal Code in order to apply reasonable local regulations on charter -party carriers of passengers other than limousines operating within the City, as authorized by Public Utilities Code Section 5371.4; and WHEREAS, since the implementation of the taxicab franchise program, certain responsibilities in the administration and management of vehicles for hire have shifted to City departments different from those designated in Chapter 6.48 of Article VI of the Santa Monica Municipal Code; and WHEREAS, the City strives to establish a clear, fair, effective, and administratively efficient system for regulating vehicles for hire; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1. Section 6.48.010 of Chapter 6.48 of Article VI of the Santa Monica Municipal Code is hereby amended as follows: As used in this Chapter, the phrase "vehicle for hire" includes taxicabs, charter -party carriers of passengers other than limousines as defined in the Public Utilities Code, and every automobile or motor - propelled vehicle used for transportation of passengers within and without the boundaries of the City not over a defined route, at rates per mile, per trip, 3 per hour, per day, per week or per month. Vehicles leased or rented for a period of time to be driven by the lessee or his or her designee are not included. SECTION 2. Section 6.48.040 of Chapter 6.48 of Article VI of the Santa Monica Municipal Code is hereby amended as follows: Before any license is issued or renewed, the owner of the vehicle for hire shall be required to file proof of insurance with the Finance Department in the amount specified in the rules and regulations adopted pursuant to Chapter 6.49. This policy must insure the public against any loss or damage that may result to any person or property from the operation of such vehicle. No person shall operate any such vehicle without having a policy as described in this Section in full force and effect at all times during the operation of such vehicle. SECTION 3. Section 6.48.050 of Chapter 6.48 of Article VI of the Santa Monica Municipal Code is hereby amended as follows: Vehicles for hire shall be operated by the owner or by an employee or authorized agent of the owner. SECTION 4. Section 6.48.065 is hereby added to Chapter 6.48 of Article VI of the Santa Monica Municipal Code as follows: 6.48.065 Compensation to gain access to passengers. (a) No person shall offer, pay or agree to pay any consideration, either monetary or non - monetary, to any owner, operator, employee or agent of any hotel or any other 0 business establishment for recommending or directing any passenger, who does not have a reservation made on a prearranged basis, to ride in a specific vehicle for hire or to a specific vehicle for hire company. (b) No owner, operator, employee or agent of any hotel or any other business establishment shall solicit, demand, accept or agree to accept any consideration, either monetary or non - monetary, or enter into any vehicle for hire service arrangement or agreement for recommending or directing a passenger, who does not have a reservation made on a prearranged basis, to ride in a specific vehicle for hire orto a specific vehicle for hire company. (c) No owner, operator, employee or agent of any hotel or any other business establishment shall offer, pay or agree to pay any vehicle for hire company or driver in exchange for the company or driver recommending or directing a passenger, who does not have a reservation made on a prearranged basis, to a business establishment operated by a specific owner or operator (d) Nothing in this Section prohibits the passenger of a vehicle for hire from tipping or paying a gratuity to the driver of a vehicle for hire, or to an employee or agent of a hotel or other business establishment. SECTION 5. Section 6.49.095 is hereby added to Chapter 6.49 of Article VI of the Santa Monica Municipal Code as follows: 6.49.095 Access to passengers on business establishment premises. No owner, operator, employee or agent of any hotel or any other business establishment shall exclude any taxicab driver operating pursuant to a franchise awarded b7 by the City from standing or picking up passengers at any taxicab stand, hack stand, or other location where taxicabs or other vehicles for hire are regularly allowed to stand and pick up passengers on the premises of the hotel or other business establishment. SECTION 6. 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 7. 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. 0 SECTION 8. 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: 7 Approved and adopted this 11th day of October, 2011. Richard Bloom, Mayor State of California ) County of Los Angeles ) ss. City of Santa Monica ) I, Denise Anderson - Warren, Acting City Clerk of the City of Santa Monica, do hereby certify that the foregoing Ordinance No. 2370 (CCS) had its introduction on September 27, 2011, and was adopted at the Santa Monica City Council meeting held on October 11, 2011, by the following vote: Ayes: Council members: Holbrook, O'Connor, O'Day, McKeown, Shriver Mayor Pro Tern Davis, Mayor Bloom Noes: Council members: None Absent: Council members: None A summary of Ordinance No. 2370 (CCS) was duly published pursuant to California Government Code Section 40806. ATTEST: Denise Anderson - Warren, Acting City Clerk