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sr-121311-3c10r City of City Council Report Santa Monies City Council Meeting: Date Agenda Item: 33 =C To: Mayor and City Council From: Gigi Decavalles, Acting Director of Finance Subject: Resolution to Update the Administrative Citation Schedule of Fines and Resolution to Revise the Taxicab Rules and Regulations Penalty Structure and Schedule of Fines and Penalties Recommended Action Staff recommends that the City Council: 1. Adopt a Resolution to update the Administrative Citation Schedule of Fines for violations of Santa Monica Municipal Code Chapters 6.48- Vehicles for Hire and 6.49- Taxicabs; and 2. Adopt a Resolution to revise the Santa Monica Taxicab Rules and Regulations Schedule of Fines and Penalties Executive Summary The City's Administrative Citation program provides an alternative to criminal prosecution. Staff seeks Council authorization to make the changes necessary to relevant sections of the SMMC, to add fines related to the new sections of the SMMC which created the franchise system, delete references to fines that are no longer relevant, and to increase the fine for charging rates not approved by Council. The Taxicab Rules are established by the Santa Monica Police Department and set out specific rules related to the administration of the taxicab franchise program and standards of conduct for both drivers and franchisees. The Taxicab Rules schedule of fines provides monetary penalties for violation of these rules by a driver or franchisee. Staff is recommending that the schedule of fines be revised to create consistency with the fine amount for similar violations, make it easier to determine the applicable fine, and make the amount of the fines more commensurate with the nature of the violation. Background As required by Santa Monica Municipal Code ( "SMMC" or "Code ") Section 1.09.040, the administrative citation schedule that outlines fines for specific categories of Code violations is established by City Council Resolution. The current fine schedule was adopted by Council in December 2010. Under the current schedule, fines range from $75 to $1,000, depending on the seriousness of the violation. On July 28, 2009, Council adopted an ordinance establishing the taxicab franchise system, which amended Chapter 6.48 and added Chapter 6.49 to the Code. It is necessary to revise the Administrative Citation Schedule of Fines in order to reflect the amendments and additions to the SMMC with respect to vehicles for hire and taxicabs. On November 9, 2010, Council adopted Resolution No. 10543 (CCS) setting forth the administrative citation schedule of fines and penalties for violations of the Taxicab Rules. Through additional experience with the program, staff discovered the need to simplify the penalty structure and to apply penalties based on the enforcement priorities of the City. Staff recommends revising the schedule of fines and penalties in order to enhance enforcement efforts and to better meet the City's commitments to the public. Discussion Administrative Citations The City's Administrative Citation program authorizes certain City enforcement officers to issue administrative citations with specific fines, as an alternative to criminal prosecution, for violations of the SMMC and certain State laws adopted by the Code. Staff has generally found the administrative citation process to be an effective method to obtain compliance. Staff seeks Council authorization to make the changes necessary to relevant sections of the SMMC, to add fines related to the new sections of the SMMC which created the franchise system, delete references to fines that are no longer relevant, and to increase the fine for violation of Section 6.49.110 (formerly Section 6.48.100). 2 Section 6.49.110 requires taxicab companies to utilize taximeters and apply the rates established by City Council resolution. Prior to the franchise system, taxicab companies could set their own taximeter rates. The established fine of $250 is not reflective of the requirement to charge only those rates established by City Council. For example, prior to the implementation of the taxicab franchise system, a taxicab driver was required only to post his or her established taximeter and flat rates. The driver had full discretion to charge any rate he or she set. If a driver charged a rate different than the posted rate, he or she was violating his or her own established rates, not rates established by public policy. Increasing this fine from $250 to $1,000 would make it more consistent with other violations that involve serious misconduct by taxicab companies and drivers and will help to encourage compliance with this section of the Code. Taximeter rates have been established by Resolution in order to create consistency and predictability in the rates paid by a passenger, regardless of the taxicab company hired. The revised Administrative Citation Schedule of Fines has been updated for Code violations applicable to the Taxicab Franchise Ordinance and is listed on pages eight and nine of Attachment A of this staff report. For references purposes, a summary of the changes to the Administrative Citation Schedule of Fines, with cross references, is provided in Attachment B of this staff report. Taxicab Rule Violation Citations The Taxicab Rules are established by the Santa Monica Police Department, pursuant to SMMC 6.49.020, and set out specific rules related to the administration of the taxicab franchise program and standards of conduct for both drivers and franchisees. The Rules include a schedule of fines with monetary penalties for violation of these Rules by a driver or franchisee. Staff is recommending that the schedule of fines be revised to create consistency with the fine amount for similar violations, make it easier to 3 determine the applicable fine, and make the amount of the fines more commensurate with the nature of the violation Adoption of the resolution revising the Taxicab Rules schedule of fines and penalties, provided in Attachment C of this staff report, would create consistency with the fine amount for similar violations, make it easier to determine the applicable fine, and make the amount of the fines more commensurate with the nature of the violation. For example, the current fine for bribing an agent or employee of the City with the intent to have the agent or employee of the City to not perform his or her duties relating to the regulation of taxicabs is currently set at $1000. The new Schedule of Fines categorizes this as a "Schedule D- Conduct" violation with a penalty of $5,000 to $10,000 or Revocation. The proposed schedule of fines and penalties would also replace the formula based fine schedule, providing a straight forward dollar amount or. dollar range for a violation, giving the drivers and the franchisees an easy mechanism for understanding the consequences of violation. The revised Taxicab Rules Schedule of Fines for Violations of Taxicab Rules and Regulations is provided on pages three and four of Attachment C of this staff report. The penalty schedule assigned to a specific Rule is provided on page five of Attachment C of this staff report. Financial Impacts & Budget Actions There is no immediate budget/financial impact to the policy decision. Prepared by: Salvador M. Valles, Taxicab Franchise Program Coordinator Appro ed: Forwarded to Council: Gigi Decava es Rod Gould Acting Director of Finance City Manager 4 Attachments: A. Resolution — Administrative Citation Schedule of Fines Update B. Summary of Changes to Administrative Citation Schedule of Fines C. Resolution — Taxicab Rules and Regulations Penalty Structure and Schedule of Fines and Penalties 5 Attachment B— Summary of Changes to the Administrative Citation Fine Schedule Code Section `' Violation Description(s) Current Fine ': . Proposed Fine' Cross Reference SMMC 6.48.020 Tn"^^"g Vph'n'n^'nr Warn N n n«nr S$500 n/a n/a vehicles SMMC 6.48.030 T,- aAeabs Vehicle for Hire - Business license required $500 $500 n/a SMMC 6.48.031 TaxiGa `s Regi.tFatiAR AfTaxieab Rate. _�5gg n/a n/a Required SMMC 6.48.040 Taxcabs — osn., o,.r.. it Req iFed Vehicle for Hire— Compulsory Insurance Coverage $1,000 $1,000 6.48.060 SMMC 6.48.050 Taxicabs Rules aAd Reg latiens Vehicle for Hire — Driving of Vehicles $250 $250 6.48.070 SMMC 6.48.060 Taxicabs Cornp lsoFy insuFaAGe GaveFage Vehicle for Hire - Direct Route $500 $500 6.48.120 SMMC 6.48.065 Vehicle for Hire - Compensation for Access to Passengers n/a $500 n/a SMMC 6.48.070 Ta""'" Driving �ofVeh'n'n^ $236 n/a n/a SMMC 6.48.080 Taxi Gabs °nrl''Ag Af Vnh'dng $2w n/a 6.49.090 SMMC 6.48.090 T xieab Signs $_S00 n/a 6.49.100 SMMC 6.48.100 Taxicabs $25B n/a 6.49.110 SMMC 6.48.110 Taxisa" R-11 I °^ofTaxicab $500 n/a 6.49.120 SMMC 6.48.120 Ta✓nnhg Direct Route $500 n/a 6.48.060 SMMC 6.48.130 Tnv"nnhr rn Decals Req iFed n/a 6.49.130 SMMC 6.49.020 Taxicabs -Rules and Regulations $250 $250 6.48.050 Code Section Violation Description(s) Current Proposed Cross Fine ` Fine Reference SMMC 6.49.040 (b) Taxicabs - Taxicabs Franchise Required n/a $1,000 n/a Each franchisee including its members drivers and authorized agents shall comply with the franchise agreement. SMMC 6.49.040 (i)(1) Taxicabs - Fees - Annual Franchise Fees n/a $1,000 n/a SMMC 6.49.040 (i)(2) Taxicabs - Fees - Annual Taxicab Vehicle n/a $500 n/a Permit Fees SMMC 6.49.040(g) Taxicab - Taxicab Vehicle Permit Required n/a $500 n/a SMMC 6.49.040(h) Taxicab - Taxicab Driver's Permit n/a $500 n/a Required SMMC 6.49.050(c) Taxicab - Effect of Suspension or n/a $1,000 n/a Revocation SMMC 6.49.060 Taxicabs - Unauthorized Taxicab Services n/a $1,000 n/a Prohibited SMMC 6.49.080 Taxicabs - Taxicabs Identification and n/a $500 n/a Vehicle Operating Requirements SMMC 6.49.090 Taxicabs- Parking of Vehicles; Stands $250 $250 6.48.080 SMMC 6.49.095 Vehicle for Hire — Access to Passengers n/a $500 n/a on Business Premises SMMC 6.49.100 Taxicabs - Taxicab Signs n/a $500 6.48.090 SMMC 6.49.110 Taxicabs - Taximeters and Rates $250 $1,000 6.48.100 SMMC 6.49.120 Taxicabs -Full Use of Taxicab $500 $500 6.48.110 SMMC 6.49.130 Taxicabs - Taxicab Identification Decal $500 $500 6.48.130 Required Reference Resolution Nos. 10640 (CCS) and 10641 (CCS).