O2371City Council Meeting 10 -11 -2011 Santa Monica, California
ORDINANCE NUMBER 2371 (CCS)
(City Council Series)
AN ORDINANCE OF THE CITY COUNCIL
OF THE CITY OF SANTA MONICA AMENDING
CHAPTER 6.49 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, Sections 6.49.040 and 6.49.070 of the Santa Monica Municipal Code
sets the annual taxicab vehicle permit and taxicab driver's permit expiration date at June
30th of each year; and
WHEREAS, the implementation date for the taxicab franchise program was
scheduled for January 1, 2011, but was delayed until March 1, 2011, through no fault of
the taxicab franchisees; and
WHEREAS, despite the implementation delay, all franchisees paid the full
franchise and permit fees for the fiscal year, even though they were unable to operate
pursuant to their franchises for part of the year; and
WHEREAS, the City finds that for purposes of administrative efficiency and in
fairness to the taxicab franchisees, since the taxicab franchisees did not cause the
implementation delay and paid all franchise and permit fees for a full year, the City
wishes to adjust the permit year from the fiscal year to the calendar year, and thereby
extend the expiration date of vehicle and taxicab driver's permits from June 30th to
December 31st; and
WHEREAS, the City strives to establish a clear, fair, effective, and
administratively efficient system for regulating taxicabs;
THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES HEREBY
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
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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
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. Each franchisee,
including its members, drivers, and authorized agents, shall comply with the franchise
agreement.
(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 three hundred taxicabs, which number may
be adjusted by City Council from time to time.
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(e) After notice and a hearing, the City Council may at anytime 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.
(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, together with 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 City has
issued and the franchisee possesses a current taxicab vehicle permit for that specific
vehicle.
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(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 City and paid to
the City the required taxicab driver's permit fee.
(i) Fees.
(1) Annual Franchise Fee. Each taxicab franchisee shall pay to the City an
annual fee, established by resolution of the City Council, 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, without set off or deduction, upon execution of the franchise agreement and payable
on each anniversary date thereafter, unless otherwise specified in the franchise
agreement. Failure to pay the full franchise 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, established by resolution of the City Council, for each taxicab operating
under its franchise. Any taxicab vehicle permit issued pursuant to a franchise prior to
December 31, 2011, shall expire on December 31, 2011, unless revoked or suspended
prior to that date pursuant to this Chapter. Taxicab vehicle permits issued after December
31, 2011, shall expire at midnight on the December 31st next succeeding its issuance,
unless revoked or suspended prior to that date pursuant to this Chapter.
SECTION 2. Section 6.49.050 of Chapter 6.49 of Article VI of the Santa Monica
Municipal Code is hereby amended as follows:
(a) Suspension. The City may, after due notice and an opportunity to be heard,
suspend a taxicab franchisee's operations for one or more days if, in the judgment of the
City, a lapse in required insurance or any other violation of the terms and conditions of the
franchise agreement or the provisions of this Chapter; or a violation of any rules and
regulations established by the Police Department, orders or directives established by the
City, or the California Vehicle Code, creates an immediate safety hazard. Cause for
suspension also exists where the holder of a majority interest in the taxicab franchise or the
taxicab franchisee illegally conducts any type of vehicle for hire or public transportation
operation licensed by the City or any other governmental agency.
(b) Revocation. The City may, after due notice and an opportunity to be heard,
revoke a franchise and terminate the franchise agreement in the event that the franchisee:
violates any terms and conditions of the franchise agreement; fails to cure any default
within the time required as provided in the franchise agreement; violates any provision of
this Chapter or other applicable law or violates any rules, regulations, orders or filings of
any regulatory body having jurisdiction over the franchisee relative to its operations under
the franchise agreement; or practices, or attempts to practice, any fraud or deceit upon the
City.
The franchisee may respond in writing to a notice of intent to terminate from the City
Manager. The matter will then be referred to a Hearing Examiner for consideration
pursuant to this Section. The matter will be set for a hearing and the City shall give the
franchisee at least thirty days' written notice of the time and place of the hearing. At the
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hearing, the Hearing Examiner shall consider all relevant evidence and testimony and if the
Hearing Examiner determines that the franchisee is in breach of the agreement as above
described, the Hearing Examiner may, in his or her discretion, order the franchisee to take
remedial actions to cure the breach or impose any other remedy in accordance with the
franchise agreement, including but not limited to suspension for a designated period of
time; temporary or permanent reduction of taxicab vehicle permits; or revocation of the
franchise and termination of the franchise agreement. The decision or order of the Hearing
Examiner shall be final and binding and subject only to judicial review.
(c) Effect of Suspension or Revocation. Upon suspension or revocation of a
franchise, all the franchisee's taxicab operations in the City shall cease until such time as
the suspension or revocation is lifted.
(1) No fee refunds shall be issued to any franchisee upon revocation of a
franchise.
(2) Upon revocation of any taxicab franchise, no franchise to operate the same
business activity shall be granted to the franchisee within the remainder of the term or
extension term of the franchise agreement and for a period of three years thereafter.
(3) In the event of revocation of a franchise, the franchisee's taxicab vehicle
permits may in the City's discretion be reallocated to other franchisees on a pro rata basis
or assigned to a new taxicab franchisee following a competitive bidding process for the
award of new franchises.
SECTION 3. Section 6.49.060 of Chapter 6.49 of Article VI of the Santa Monica
Municipal Code is hereby amended as follows:
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(a) No person shall knowingly dispatch a vehicle or respond to a request for a
"taxi," "cab" or "taxicab" for pick -up within the City, or pick -up passengers within the City for
taxicab services, unless the vehicle has a valid taxicab vehicle permit, the driver of such
vehicle has a valid taxicab driver's permit, and the taxicab is operated pursuant to a
franchise awarded by the City.
(b) No person who drives or operates a taxicab in the City shall publish, advertise
or broadcast in any manner, written or oral, a telephone number either by itself or
connected to a rotary or call forwarding system for taxicab service, which is the same
telephone number as that for other taxicabs or vehicles for hire.
(c) No person who drives or operates a taxicab in the City shall use a name that
imitates a name used by another person who drives or operates a taxicab in such a
manner as to be misleading or tend to confuse or defraud the public.
(d) No person shall advertise or otherwise hold itself out as providing taxicab
services within the City, unless such person is operating pursuant to a taxicab franchise
awarded by the City.
SECTION 4. Section 6.49.070 of Chapter 6.49 of Article VI of the Santa Monica
Municipal Code is hereby amended as follows:
(a) Application. In order to obtain a taxicab driver's permit, each person shall file
with the City, upon forms supplied by the City, a completed verified application including
the following information and documentation:
(1) Name, address, and age of applicant;
(2) Convictions, if any, in any court of law;
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(3) Name, address and certification of the taxicab franchisee by whom the
applicant is to be employed as a taxicab driver in the City;
(4) Proof of a valid California Driver's License;
(5) A signed agreement to submit to a background investigation and
fingerprinting via live -scan capture by the Police Department;
(6) Original test results from a certified laboratory or testing agency, submitted
simultaneously with the applicant's verified application, proving that the applicant has
tested negative for drugs and alcohol as provided by Section 53075.5(b)(3) of the
California Government Code; and
(7) Such further information as the City may require.
(b) Taxicab Driver's Permit Applicant Investigation. The Police Department
shall investigate each applicant for a taxicab driver's permit and shall approve the
application or state its reason for disapproval. The Police Department may disapprove any
applicant who has a record of criminal conduct or other behavior involving any of the
following:
(1) Moral turpitude;
(2) Violence toward persons or property;
(3) Physical or mental disease which could make the applicant a danger to the
safety of others;
(4) Illegal sexual conduct involving another nonconsenting person;
(5) Negligent or reckless driving;
(6) Operating a motor vehicle while under the influence of alcohol or drugs;
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(7) Three or more moving violations under the California Vehicle Code within the
twelve month period preceding the date of the application;
(8) Existing suspension or revocation of a taxicab driver's permit in any other
jurisdiction as of the date of the application;
(9) Conviction of operating a taxicab without a valid taxicab driver's permit or
taxicab vehicle license within the three year period preceding the date of the application; or
(10) Acts showing the applicant to be otherwise incompetent or not fit to drive a
taxicab.
(c) Examination. Every applicant for a taxicab driver's permit shall take an
examination, prepared and administered by the City, which tests the applicant's
qualifications to operate a taxicab. The examination shall test the applicant's: ability to
communicate in English; knowledge of and ability to locate, with the aid of a street atlas,
street addresses and intersections in Santa Monica and surrounding cities in the County of
Los Angeles; and knowledge of the laws of the road. Failure to obtain a passing score on
the examination shall be cause for disapproval of an application.
(d) Taxicab Driver's Permit Issuance. Based on the application, investigation
and examination, the Police Department shall approve or deny the taxicab driver's permit.
No permit shall be issued if the applicant is under the age of eighteen years, if any false
statement appears in the application, or, if the application is otherwise incomplete. Upon
approval of an application and receipt by the City of the taxicab driver's permit fee, the City
shall issue a taxicab driver's permit to the applicant. The taxicab driver's permit fee shall be
established by resolution of the City Council. The permit shall bear the name and
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photograph of the applicant, date of expiration of the permit, and name of the taxicab
franchisee for which the driver is authorized to drive a taxicab.
(e) Taxicab Driver's Permit Expiration and Renewal. Any taxicab driver's
permit issued pursuant to a franchise prior to December 31, 2011, shall expire on
December 31, 2011, unless revoked, suspended or terminated prior to that date. Taxicab
driver's permits issued after December 31, 2011, shall expire at midnight on the December
31 st next succeeding its issuance, unless revoked, suspended or terminated prior to that
date. Ataxicab driver's permit which has not been revoked, suspended, or terminated may
be renewed annually by paying the annual taxicab driver's permit fee and by filing with the
City a verification that the driver is in compliance with the provisions of this Section and test
results from a certified laboratory or testing agency proving that the driver has tested
negative for drugs and alcohol as provided by Section 53075.5(b)(3) of the California
Government Code.
(f) Effect of Termination of Employment. The taxicab driver's permit shall
become void upon termination of employment, at which time the taxicab franchisee-
employer shall immediately give the City written notice of the termination and the
terminated driver shall immediately return his or her taxicab driver's permit to the City.
(g) Prohibition on Transfers. Taxicab driver's permits are personal in nature
and shall not be transferred. Any purported transfer shall be null and void.
(h) Grounds for Suspension and Revocation. Any taxicab driver's permit and
any taxicab vehicle permit may be suspended or revoked, after due notice and an
opportunity to be heard, for any of the following reasons:
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(1) Arrest or citation for the commission of any crime while driving a taxicab or
any crime involving moral turpitude;
(2) Violation of any applicable rule or regulation, or Federal, State or local law
relating to the operation of taxicabs by a driver, or by an employer in the case of a taxicab
vehicle permit;
(3) Use of the taxicab driver's permit for a purpose different from that forwhich it
was issued;
(4) Suspension or revocation of the driver or franchisee's taxicab driver's permit
or taxicab vehicle permit in another jurisdiction; and
(5) The existence of any facts, including conviction of a crime that is substantially
related to the qualifications, functions or duties of a taxicab driver, which would have been
good cause to deny such taxicab driver's permit application, regardless of when such facts
arose.
SECTION 5. Section 6.49.080 of Chapter 6.49 of Article VI of the Santa Monica
Municipal Code is hereby amended as follows:
(a) No person shall operate any taxicab without a distinctive and uniform color
scheme or identification which designates the taxicab franchisee under which said vehicle
is operated, and which has been approved by the City.
(b) No color scheme, insignia, name, monogram, logo, or identification shall
conflict with or imitate any color scheme, insignia, name, monogram, logo, or identification
used by another taxicab franchisee in such a manner as to be misleading or to tend to
confuse or defraud the public.
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(c) Each taxicab operated pursuant to a franchise shall be identified as a City of
Santa Monica authorized taxicab by a taxicab identification decal issued by the City. No
person shall identify any vehicle by means of such taxicab identification decal, or any
facsimile thereof, unless authorized to do so by the City.
(d) Every taxicab franchisee and taxicab driver shall comply with the following
operating requirements at all times:
(1) Maintain and keep an accurate and legible record of all passengers carried,
including the pickup and drop off points, the date and time carried, the starting and ending
mileage of the taxicab for each trip, the charges authorized and made for each trip, and
any other information as may be required by the City. Such record shall be retained for at
least three years at the business office of the taxicab franchisee and shall be available for
inspection by the City at all reasonable times. Failure to comply with any reasonable
request by the City for inspection of such record shall be cause for revocation of the
franchise;
(2) Display inside the taxicab and in full view of passengers, a valid taxicab
driver's permit bearing the name and photograph of the taxicab driver and identifying the
name of the taxicab franchisee under which such taxicab is operated;
(3) Maintain in each taxicab a working two -way communication system with a
dispatcher;
(4) Obtain an annual vehicle inspection of each taxicab by a certified mechanic
or automotive repair dealer authorized by the City. Inspection records must be maintained
in the business office of the franchisee and shall be available for inspection by the City at
all reasonable times; and
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(5) Permit any Police Officer of the City or other authorized enforcement officer
enforcing this Chapter to inspect any taxicab upon request.
(e) No person shall drive or operate a taxicab in the City into which passengers
are accepted unless the person is an owner or member of, employed by, or is an
authorized agent of a taxicab franchisee.
(f) Taxicabs may be driven pursuant to a contract, agreement, or understanding
between the franchisee and the driver. Such contract, agreement, or understanding shall
not relieve the franchisee from full and complete compliance with the applicable provisions
of the Code, rules and regulations adopted pursuant to this Chapter, and the franchise
agreement.
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.
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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:
mli'l-v ®
MAR HA JO S MOUT IE
City Attorney
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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. 2371 (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.Tem Davis, Mayor Bloom
Noes: Council members: None
Absent: Council members: None
A summary of Ordinance No. 2371 (CCS) was duly published pursuant to
California Government Code Section 40806.
ATTEST:
ps --C6a(xi - 4(11�
Denise Anderson - Warren, Acting City Clerk