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SR-11-10-2015-7E 419-000/420-000 City Council Report City Council Regular Meeting: November 10, 2015 Agenda Item: 7.E 1 of 23 To: Mayor and City Council From: David Martin, Director, Planning and Community Development , Planning and Community Development Subject: Introduction for First Reading of Ordinances Amending Chapters 6.48, 6.49, and 6.50 of the Santa Monica Municipal Code Modifying Provisions of the Vehicle for Hire Regulations, Taxicab Franchise Regulations, and Definition of Pedicab; Ordinances Extending the Taxicab Franchises of Bell Cab, Independent Taxicab Owners Association, Metro Cab, Taxi! Taxi!, and Yellow Cab; Adopt a Resolution Establishing Taxicab Franchise Fees, Permit fees, and Taximeter Rates; and, Direct Staff to Research Options that Would Consider Changes to the Taxicab Franchise Program that Would Make Companies More Accountable to Market Forces Rather than City Regulations. Recommended Action Staff recommends that the City Council: 1) Introduce for first reading the attached ordinance amending Chapters 6.48, 6.49, and 6.50 of the Santa Monica Municipal Code modifying provisions of the vehicle for hire regulations, taxicab franchise regulations, and definition of pedicab (Attachment K); 2) Introduce for first reading the attached ordinances modifying and extending the taxicab franchises of Bell Cab, Independent Taxicab Owners Association, Metro Cab, Taxi! Taxi!, and Yellow Cab (Attachments L, M, N, O, P); 3) Adopt the attached resolution modifying taxicab franchise fees, permit fees, and taximeter rates (Attachment S); and 4) Direct staff to research options for changes to the taxicab franchise program that would make companies more accountable to market forces rather than City regulations. Executive Summary On March 1, 2011, the City implemented a new taxicab franchise system in response to concerns with the open licensing system. The current franchises expire on December 31, 2015. Due to the disruptive nature of Transportations Network Companies (TNCs) on the vehicle for hire market, staff is recommending changes to regulations to assist with competing with TNCs, a reallocation of taxicab vehicles to more accurately represent the needs, impacts, and service delivery, and extension of the five existing franchise agreements for two years. Staff is also recommending clarifying the definition 2 of 23 of vehicle for hire operations that operate solely in Santa Monica and adding minimum insurance requirements on all non-taxi vehicle for hire operations; and clarification of the definition of pedicabs to include motorized pedicabs. Background Based on the recommendations of a 2008 study by Nelson \Nygaard Consulting Associates (see Attachment A) of taxicab operations in Santa Monica, on July 28, 2009, Council adopted an ordinance establishing a franchise-based system for the regulation of taxicabs (see Attachment B), which required the program to 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. On November 23, 2010, the Council awarded franchises by ordinance to Bell Cab Company, Inc. (Bell Cab); Independent Taxi Owners’ Association (ITOA); Metro Cab Company, LLC (Metro Cab); TMAT Corp., dba Taxi! Taxi! (Taxi! Taxi!); and L.A. Taxi Cooperative, Inc., dba Yellow Cab Company (Yellow Cab) (see Attachment C). The ordinances established the terms and conditions of the franchise for each company, which set the effective date for the franchise for January 1, 2011. The terms and conditions were subsequently agreed to by each company. On January 11, 2011, an d October 11, 2011, Council adopted amendments to the terms and conditions to increase the fleet size for each franchisee and to adjust the permit year from a fiscal year to a calendar year (see Attachments D and E respectively). On May 22, 2012, Council transferred the taxicab franchise of Metro Cab Company, LLC to All Yellow Taxi dba Metro Cab (Metro Cab) (see Attachment F). In preparation for the expiration of the Taxicab Franchise agreements on December 31, 2015, staff held a study session with Council at its March 17, 2015 meeting on the taxicab franchise and the impact of Transportations Network Companies (TNCs), such as Uber and Lyft, on the transportation market (see Attachment G). Council directed staff to review changes to the regulatory program to assist taxicab companies in light of the arrival of TNCs. 3 of 23 Discussion Due to the disruptive nature of TNCs on the vehicle for hire market, staff is recommending changes, as outlined in this report, to the taxicab franchise program. Staff is also recommending that the franchises for all five companies be extended for two years with some modifications. The two year agreement will allow for an incremental approach to changes to a highly volatile market and will allow more time to evaluate the impacts of the arrival of Expo in 2016. Staff is also recommending that: 1. Minimum insurance requirements be established for vehicles for hire that operate solely within Santa Monica and that are not regulated by the State of California, and 2. A minor clarification be made to the pedicab definition to include pedicabs with small motors, similar to a motorized bicycle. Taxicabs - Outreach In preparation for the March 17, 2015 study session, staff met jointly with all five taxicab franchisees on January 8, 2015. All five companies where encouraged to provide their recommendations to regulatory changes to assist with competing with TNCs. Four of the existing franchisees, Bell Cab Company, Inc., Independent Taxi Owners’ Association, Metro Cab Company, LLC, and L.A. Taxi Cooperative, Inc., dba Yellow Cab Company (“Taxicab Coalition”)1 submitted a joint letter with detailed recommendations on both regulations and vehicles for staff and Council to consider (see Attachment C of Attachment G of this report). Taxi! Taxi! submitted its own letter with its recommendations on vehicles (see Attachment D of Attachment G of this report). During the study session, Council directed staff to consider options for reducing taxicab regulations to assist companies with competing with TNCs and to consider if regulations were necessary for in-city vehicles for hire. 1 . For simplicity, these four companies will be jointly referred to as the “Taxicab Coalition” in this report. 4 of 23 On August 17, 2015 staff sent letters to each franchisee outlining a draft summary of the proposed changes to the current taxicab regulatory scheme (see Attachment H ). Franchisees were encouraged to schedule individual meetings with staff to discuss the proposals. The primary area of concern with the draft proposal expressed by each taxicab company in these meetings was the proposed reduction of taxicabs from 300 to 182, and the subsequent allocation of those vehicles between the five companies. The Taxicab Coalition argued for more taxicabs and Taxi! Taxi! recommended fewer taxicab vehicles and fewer franchisees. The taxicab companies were asked to submit written responses to the draft recommendations. As before, the Taxicab Coalition submitted a letter for its four members (see Attachment I) and Taxi! Taxi! submitted a letter on its own to staff and to Mayor Kevin McKeown with a petition from drivers (see Attachm ent J). The companies outlined their positions on the total number of vehicles that should be authorized and why. With the outline of staff’s recommendations below, alternatives are presented based on the recommendations offered by the Taxicab Coalition and Taxi! Taxi! for Council’s consideration. Taxicabs - Long Beach Taxicab Regulatory Changes The Long Beach City Council recently adopted new regulations in response to a request from Yellow Cab Long Beach (now Yellow Long Beach) to address the compe titive pressures of TNCs. Long Beach is also currently served by only one taxicab company (i.e. Yellow Cab). According to a May 13, 2015 Los Angeles Times article, Long Beach Mayor Robert Garcia said that the new regulations to help taxis stay competitive was not a knock on TNCs, but a way to protect a "community partner" that provides a service for tourists, the elderly and the disabled. The city removed price floors on rates (which allows Yellow Cab to offer lower rates and coupons) and approved the addition of 24 new taxis to the fleet, bringing the total to 199, even though there was a reported decline of approximately 15% in business with the 175 taxis already licensed. Long Beach also approved new rebranding for Yellow Cab with a new name Yellow Long Beach, a new logo, and a mobile app called Ride Yellow, which appears to be a rebranded version of their app called Curb, which was formerly called TaxiMagic. 5 of 23 The company claims that the lower rates would increase the demand, however this would not directly assist drivers, unless the company absorbed the cost of the discount. The addition of more taxicabs provides for an opportunity for the company to lease more vehicles regardless of whether or not taxicab drivers have access to more customers. Taxicabs - Proposed Amendments The staff recommendations for taxicabs are outlined later in two sections of this report: Regulations - Rules and procedures for how the program is implemented. Vehicles - The total number of vehicles authorized to operate and the allocation of those vehicles Franchise and Permit Fees Taximeter Rates The recommended changes to the regulations are based mostly on the specific recommendations made in a January 27, 2015 letter jointly signed by the “Taxicab Coalition”. In addition to minor administrative changes to the taxicab programs rules and regulations, such as minor changes to address technological changes in the marketplace, staff proposes the following material changes to the program. These changes are governed by Chapter 6.49 of the Santa Monica Municipal Code (SMMC), the Taxicab Franchise Agreement, and the Taxicab Rules. The draft ordinance amending Chapter 6.49 of the SMMC is included as Attachment K and the draft ordinances extending the franchises are attached as follows: Bell Cab Company, Inc. - Attachment L Independent Taxi Owners’ Association - Attachment M All Yellow Taxi (dba Metro Cab) - Attachment N TMAT Corp., dba Taxi! Taxi! - Attachment O 6 of 23 L.A. Taxi Cooperative, Inc (dba Yellow Cab) - Attachment P Because of the rapidly changing vehicle for hire market in California, staff is proposing an incremental approach, instead of a full revamping of the program, to assist taxicab companies in competing with TNCs while still advancing the City’s priorities. Staff is recommending that the franchises of all five taxicab companies be extended for two years to allow for consideration of further changes in the near future to the program as the market adapts, as well as to allow time for impacts to the local Santa Monica vehicle for hire market from the arrival of Expo. This recommendation is not based on the performance of the companies. Instead staff is recommending that this decision be delayed for two years. The expiration date of the two year franchise agreements would be midnight December 31, 2017. This date is also consistent with when the City of Los Angeles franchise agreements expire. Regulations Following are regulatory changes to the program proposed by staff. The taxicab companies have not expressed any significant disagreement with these proposals which are in in most cases based on the recommendations from the taxicab companies. Later in this report, under the section of vehicles, staff outlines recommendations for the total number of vehicles to be awarded and how these vehicles should be allocated among the five franchisees. 7 of 23 Proposed Regulatory Change Governed By SMMC Franchise Agreement Rules 1 Establish two types of vehicle permits: Full Time Permit and a Part Time Permit. A full time vehicle permit allows a company to dedicate the vehicle to Santa Monica. The full time vehicle may not be permitted to also operate in the City of Los Angeles; however, full time vehicles may be permitted in other jurisdictions with approval. A part time vehicle permit requires the vehicle to also be permitted by the City of Los Angeles. A Part Time vehicle counts as 50% of a vehicle when calculating Full Time Equivalency (this is discussed further in the Vehicle section below). x X 2 Vehicle Flexibility - Allow each of the franchises to remove from service vehicles based on demand. This would allow companies to suspend auto insurance on the vehicle while it is out of service. This would allow them to reduce costs by not having to pay for insurance during slower demand periods, allowing the fleet to “ebb and flow”. The Taxicab Coalition requested that they be allowed to remove 25% of their fleets from service. Staffs proposal does not include a limit. X X 3 Pricing Flexibility - Remove pricing floors. Maximum rates would still apply. The change would allow companies to establish promotional pricing including flat rates, package deals with groups, employers, etc. This proposal does not change the existing ban on companies establishing exclusive deals with hotels. The Taxicab Coalition requested this change. An additional provision has been added to make it illegal for a company to charge discounted or flat rates other than that which has been advertised or agreed to in advance with the passenger. X X X 8 of 23 Proposed Regulatory Change Governed By SMMC Franchise Agreement Rules 4 Driver Permits - Change the permit period from one year to a prorated permit that would expire at midnight on December 31, 2017. The proposed permit would be prorated so that a driver paid an amount equal to the number of months remaining in the franchise agreements. The Taxicab Coalition requested a two year driver permit. Staff has no objections to a two year permit, which is consistent with Los Angeles, however, since the proposal is for a two year franchise, all driver permits must expire at the end of the franchise period, so providing a prorated permit fee would accomplish the same goal. Permit fees are based solely on cost recovery, so the permit fees would be the same, with standard CPI increases or changes based on fee studies. Drivers pay the driver permit fees. If Council should extend the franchises beyond two years, driver permit expiration dates would be adjusted accordingly. x X 5 Transfer rule making authority from the Police Department to Planning and Community Development (PCD). All other aspects of the Taxicab program have been transferred to PCD, such as permitting and enforcement. Transfer of the rule making authority would complete this transition. x 6 LADOT Smartphone App - Allow participation in any Los Angeles Department of Transportation electronic hailing Smartphone app and reciprocity program that may be launched. x 7 Carpooling - Clarification of “full use of taxicab” to allow for carpooling or ride sharing types of services by taxicabs. x 8 Delivery of Goods – Ban taxicab companies and drivers from providing non-passenger delivery services (e.g. food, gods, marijuana). x 9 of 23 Other Requests The Taxicab Coalition requested that the City waive the business license tax fees, claiming that no other city requires a payment of franchise fees and business license tax and that the City’s franchise fees are the highest in the region. The Taxicab Coalition claims that the franchise fee is based on the value that the franchise brings to the franchisee. In their letter dated September 23, 2015, the coalition states “[W]here our business is drastically down due to the encroachment of unregulated businesses who pay no fees to the City, the value of our franchises have dropped considerably.” Because of the incremental approach to the changes that staff is proposing, staff does not recommend a waiver to the business license fee of $250 per vehicle at this time. A waiver could be considered in a future modification to the program with any franchise fee changes. All five companies have requested that the processing time for permits be reduced. Most of the processing time is for background checks and driver testing. Staff will review options for driver testing to reduce the amount of time it takes to obtain a permit however, staff is not recommending the elimination of testing at this time. Background checks are dependent on both the California Department of Justice to process fingerprints and the Police Department to complete a thorough background check. It has been requested by the taxicab industry to provide provisional permits until the background check has been completed. Staff does not recommend any changes to the background check requirements or the implementation of provisional driver permits at this time. Rules Attached is a redline version of the rules with changes that staff expects to make pending adoption of the attached amendments to Chapters 6.48, 4.49, and 6.50 of the SMMC and the Taxicab Franchise Agreements (see Attachment Q). 10 of 23 Vehicles Taxicab Trips Originating in Santa Monica Santa Monica taxicabs have experienced a 27% reduction in trips in 2014 when compared to 2013. See Chart A below. Chart A 2013 Trips 2014 Trips Percent Change Trips 2013 to 2014 Market Share 2015 Bell Cab 69,806 48,987 -30% 9% ITOA 156,279 115,127 -26% 20% Metro 179,289 129,139 -28% 23% Taxi! Taxi! 277,293 197,835 -29% 35% Yellow Cab 93,196 76,325 -18% 13% All Taxicab Companies 775,863 567,413 -27% 100% The industry continues to report declines in overall trips in 2015 with a 51% reduction in the first seven months of calendar year 2015 over the first seven months of calendar year 2013. See Chart B below. Chart B 2013 Trips Jan-Aug 2015 Trips Jan-Aug Percent Change Trips 2013 to 2015 Jan-Aug Market Share 2015 Jan-Aug Bell Cab 46,381 18,315 -61% 7% ITOA 107,030 52,910 -51% 20% Metro 118,794 54,947 -54% 21% Taxi! Taxi! 193,195 93,391 -52% 35% Yellow Cab 83,203 47,542 -43% 18% All Taxicab Companies 548,603 267,105 -51% 100% 11 of 23 Since flag downs are considered by some companies to be an unreliable reflection of the number of trips a company completes, even when excluding flag down trips, and instead only considering dispatched trips through the companies dispa tching systems reported by the companies, there has been a decrease in requests for service calls of 57% from January to August for 2013 to 2015. Chart C below shows a breakdown by company of the decrease in reported dispatched trip, which also demonstrates a clear decline in trips. Chart C 2013 Dispatched Trips Jan-Aug 2015 Dispatched Trips Jan-Aug Percent Change 2013 to 2015 Dispatched Trips Jan-Aug Market Share 2015 Jan-Aug Bell Cab 13,813 6,832 51% 6% ITOA 15,833 7,058 55% 6% Metro 53,220 28,292 47% 24% Taxi! Taxi! 135,210 65,248 52% 55% Yellow Cab 60,432 11,274 81% 9% All Taxicab Companies 278,508 118,704 57% 100% Although it is not possible to know specifically the cause of the decline, it clearly coincides with the arrival of Transportation Network Companies (TNC); Uber officially launched in Los Angeles on March 8, 2012. It is also unclear if other factors may be contributing to the decline. Determining the Number of Vehicles The current number of vehicles authorized to operate is 300. However, the allocation of vehicles did not take into account whether or not a vehicle serves Santa Monica on a full time basis or on a part time basis. The 2008 Nelson/Nygaard Taxicab study recommended 210 Full Time Equivalent vehicles, meaning that a fa ctor should be taken into consideration in establishing the authorized number of vehicles based on whether 12 of 23 or not vehicles are operating in Santa Monica on a full time basis or part time basis. Therefore taxicab companies have full discretion to determine if a vehicle is operating in Santa Monica on a full time or part time basis. The Taxicab Coalition has requested that they maintain this discretion. Staff is recommending that vehicle allocations be awarded specifically for full time or part time vehicles to ensure greater control over the total number of vehicles that impacting local streets. Staff is recommending that Council authorize no more than 182 full time equivalent taxicabs based on factors outlined in Attachment R which has taken in to account the number of full time leases, dedicated vehicles, and market share of the company. The analysis is based on 2014 trip data, the most recent full year of data available. Vehicle Allocation by Company For the purpose of this discussion, Full Time Equivalency (FTE) is the amount of time a vehicle operates in Santa Monica as compared to a full time bas is. FTE distinguishes between vehicles that are spending 100% of their time serving Santa Monica and those that are license in both Santa Monica as well as Los Angeles, thereby serving a much broader market. These vehicles are present in Santa Monica far less than vehicles that are only permitted by Santa Monica but would be authorized to operate in Santa Monica during peak periods. For example if a taxicab company is authorized to operate 100 FTE vehicles, the taxicab company could be issued 50 full time vehicle permits and 100 part time vehicle permits for a total of 100 FTE Vehicles. The formula would be: 50 F/T vehicles + (100 P/T vehicles x 50%) = 100 Full Time Equivalent Vehicles The use of 50% as the part time factor is used for convenience since it is difficult to determine how much time a vehicle that is permitted in both Santa Monica and Los Angeles actually operates in Santa Monica. Additionally, many Los Angeles permitted vehicles are also permitted in other jurisdictions, such as Beverly Hills, West Hollywood, Culver City, and Los Angeles County. Staff is recommending that companies continue to have the discretion to offer 12-hour or 24-hour leases in any mix it chooses. 13 of 23 The following chart outlines the proposed Full Time Equivalent vehicles and breakdown by Full Time and Part Time permits. Column E represents the actual number of vehicles that would be permitted to operate. Company (A) Proposed Full Time Equivalent Vehicles (B) Proposed Full Time Vehicle Permits (C) Proposed Part Time Vehicle Permits* (D) Actual Proposed Total Vehicles Permitted (E) Bell Cab 16 2 28 30 ITOA 38 32 12 44 Metro Cab 42 32 20 52 Taxi! Taxi! 62 62 0 62 Yellow Cab 24 2 44 46 Totals 182 130 104 234 *Vehicles in this category are also permitted to operate in the City of Los Angeles for Bell Cab, ITOA, and Yellow Cab. For Metro Cab these vehicles are permitted to operate as Access vehicles outside of Santa Monica. Based on this proposal, the total change in the number of vehicles would be reduced by 66 or 22%. The actual change to the current allocation is minimal considering the significant drop in vehicle trips and when compared to the original number of FTEs recommended by Nelson/Nygaard in its 2008 study. The key change is that by adjusting the permitting to include specific full time and part time vehicle permits, the allocation will provide more control than the current system over how many vehicles are dedicated to operating only in Santa Monica and is more consistent with the original recommendations by the 2008 Nelson/Nygaard study recommendations. The following chart provides a comparison of the change in vehicle allocation to the current allocation: 14 of 23 Company Current Authorized Vehicles Current Full Time Proposed Full Time Current Part Time Proposed Part Time Proposed Total Authorized Vehicles Change in Total Vehicles from Current Allocation to Proposed Allocation Percent Change in Total Vehicles Bell Cab 58 12 2 46 28 30 -28 -48% ITOA 58 47 32 11 12 44 -14 -24% Metro Cab 63 43 32 20 20 52 -11 -17% Taxi! Taxi! 63 63 62 0 0 62 -1 -2% Yellow Cab 58 43 2 15 44 46 -12 -21% Totals 300 208 130 92 104 234 -66 -22% Taxicab Coalition - Vehicle Allocation Alternative Proposal As noted earlier in this report, the taxicab companies were encouraged to provide written responses to the proposals outlined by staff in the August 17, 2015 letter sent to each company. The recommended allocation by the Taxicab Coalition was originally to maintain the current level of vehicles with no changes to allocation. In response to the August 17, 2015 letter and subsequent individual meetings with each company, the Taxicab Coalition of four companies have proposed reducing the total number of vehicles to 266 (32 more than staff’s proposal) with a total of 213 FTE vehicles (31 more than staffs proposal). The recommendation also proposes a distribution of vehicles that does not take into account market share, but instead proposes essentially a numerically an equal division of vehicles between companies. The chart on the next page shows the breakdown recommended by the Taxicab Coalition. 15 of 23 Taxicab Coalition Recommendation Company Proposed Full Time Equivalent Vehicles Proposed Full Time Vehicle Permits* Proposed Part Time Vehicle Permits* Actual Proposed Total Vehicles Permitted Bell Cab 33 15 35 50 ITOA 41 32.5 17.5 50 Metro Cab 48 38 20 58 Taxi! Taxi! 58 58 0 58 Yellow Cab 33 15 35 50 Totals 213 158.5 107.5 266 *Fraction resulted due to the proposal containing percentages instead of actual numbers. The final numbers would need to be rounded to reflect a whole number. Taxi! Taxi! - Vehicle Allocation Alternative Proposal Taxi! Taxi! made several recommendations in its response to the August 17, 2015 letter and subsequent individual meeting with the company. Taxi! Taxi!’s original request was to reduce the number of franchisees to two and to reduce the total number of vehicles t o 125 with no distinction between full time and part time vehicles, which is 57 fewer taxicabs than recommended by staff. The two charts below provide a breakdown of Taxi! Taxi!’s proposals. The first is based on market share and proposes a total of 125 vehicles; the second is based on performance and proposes a total of 121 vehicles. Both of Taxi! Taxi!’s proposals assume that the companies would determine how many vehicles would be full time or part time; however, only Bell would have the ability to make a vehicle part time. If Council were to choose to adopt Taxi! Taxi!’s proposal to reduce the number of vehicles to 121 and only grant franchises to Bell Cab and Taxi! Taxi, since the total number of vehicles would be very low, staff would have no objections to allowing Bell Cab the flexibility to determine how many vehicles in its fleet were full time vs. part time. For example, even if Bell Cab opted to make all of its vehicles full time, the total number of full time vehicles would still be less then staffs current proposal of 182 full time equivalent vehicles. 16 of 23 Taxi! Taxi! Proposal – Based on Market Share Company Proposed Full Time Equivalent Vehicles Proposed Full Time Vehicle Permits Proposed Part Time Vehicle Permits Actual Proposed Total Vehicles Permitted Bell Cab n/a n/a n/a 8 ITOA n/a n/a n/a 8 Metro Cab n/a n/a n/a 26 Taxi! Taxi! n/a n/a n/a 63 Yellow Cab n/a n/a n/a 20 Totals n/a n/a n/a 125 Taxi! Taxi! Proposal – Based on Performance Company Proposed Full Time Equivalent Vehicles Proposed Full Time Vehicle Permits Proposed Part Time Vehicle Permits Actual Proposed Total Vehicles Permitted Bell Cab n/a n/a n/a 58 ITOA n/a n/a n/a 0 Metro Cab n/a n/a n/a 0 Taxi! Taxi! n/a n/a n/a 63 Yellow Cab n/a n/a n/a 0 Totals n/a n/a n/a 121 Franchise and Permit Fees Staff is recommending that there be no changes to fees at this time except for vehicle franchise fees for part time vehicles. Staff recommends that full time vehicle franchise fees be consistent with the current franchise vehicle fee and that part time vehicles be reduced to 50% of current vehicle franchise fees. Driver and vehicle permits are based on cost recovery so these fees are not impacted by the two-year driver permit or part 17 of 23 time vehicle permit. Any increase in permitting fees would be adjusted in accordance with standard CPI increases. The fee structure is outlined below and the proposed Resolution is provided as Attachment S. Franchise Fees: Annual base franchise fee per taxicab company $5,000 Annual franchise fee per Full Time vehicle in taxicab fleet $1,100 Annual franchise fee per Part Time vehicle in taxicab fleet $ 550 (new) Vehicle Permit Fees: New vehicle permit fee $119.86 Transfer vehicle permit fee $119.86 Renewal vehicle permit fee $ 54.58 Replacement vehicle permit fee $ 38.53 Vehicle re-inspection fee $ 29.97 Taxicab Driver’s Permit Fees: New and renewal taxicab driver’s permit application fee $208.69 Taxicab driver’s permit re-examination fee $ 66.35 Taxicab driver’s permit transfer fee $ 66.35 Taxicab driver’s permit replacement fee $ 29.97 Santa Monica Police Department Live Scan fee* $ 67.00 *Live Scan fee established by the Police Department. Additional fees may be required by the Police Department if FBI search is required. Rates Staff is recommending that no significant changes be made to the existing rate structure. If Council approves removal of the rate floors by allowing companies to provide discounts beyond just airport flat rates, no changes are needed at this time since the companies will have the flexibility to lower rates as needed. By maintaining the existing maximum rates taxicab companies would not be able to implement price surging, as TNCs such as Uber has. This provides more predictability for passengers. A passenger may pay less than the existing rates, however, it would be illegal to charge more than the base rates. Additionally, the proposed rate schedule would allow the taxi companies to negotiate different rate s (higher or lower than the set rates) with another 18 of 23 entity to provide specialty prearranged transportation services for events, such as weddings, employee shuttles or carpooling services. The current rates are outlined in the chart below and the proposed Resolution is provided as Attachment S. Mileage 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) Airport Flat Rates North of I-10 to Los Angeles International Airport $35 maximum South of I-10 to Los Angeles International Airport $30 maximum Santa Monica to Bob Hope Airport $75 maximum Senior and Disabled Discount Senior citizens (persons age 65 and older) and persons with disabilities (including persons with a Los Angeles County Transit Operators Association Metro Disabled Identity Card) receive a ten percent (10%) discount. Custom Rates A taxicab company would be able to establish flat rates to any destination; however, the flat rate may not exceed the maximum that would otherwise be paid at the mileage rate established by this resolution. A taxicab company would also be able to set mileage rates, flat rates or other negotiated rates pursuant to an exclusive arrangement with any business establishment that is for the specific purpose of providing prearranged transportation services for events with multiple participants, employee shuttle services, carpooling services, or other arrangements. These rates must be filed with the City five business days prior to their implementation. Driver Working Conditions and Income The current business model used by the taxicab industry in Los Angeles is based on a franchise system with the local jurisdiction where companies lease vehicles to individual drivers. The taxicab company’s revenues are from vehicle leases and other services provided to the drivers, and in some cases advertising on the vehicles. The taxicab companies classify the relationship of the driver with the taxicab company as independent contractor. Lease agreements include language that the driver agrees they are self-employed and that the companies only provide vehicles and other services to 19 of 23 them. Taxicab companies also claim that they are not able to exercise “control” over drivers because of the independent contractor status, such as directing drivers where and when to work. Under the existing system drivers do not have access to statutory benefits including, unemployment insurance, short-term disability insurance, workers compensation, or legal protections against discrimination and a minimum wage. Staff proposes to evaluate potential changes to the taxicab program that would create a more direct connection between the taxicab companies and fare paying customers, as well as evaluate structures that could potentially allow companies to be more directly responsible to market forces instead of City regulations. By being more directly responsible to the market, it is possible that the City could eliminate the need to set vehicle limits, since companies would be incentivized by market forces to deploy only the number of vehicles that the market would support. This approach has the potential to make taxicab companies more directly responsible for customer service, safety, and working conditions. Staff recommends that Council direct staff to research options that would consider changes to the taxicab franchise program that would make companies more accountable to market forces rather than City regulations. In-City Vehicle for Hire Regulations Staff recommends only minor amendments to address in -city vehicles for hire, including clarifying the definition of in-city vehicles for hire, prohibiting in-city vehicles for hire from providing non-passenger delivery services (e.g. food, goods, etc…), and establishing application approval/denial conditions for in-city vehicles for hire. In-City vehicles for hire operate only within the City of Santa Monica city limits and are not regulated by the CPUC. The draft ordinance amending Chapter 6.48 of the SMMC is included as Attachment K. 20 of 23 Pedicabs California Vehicle Code (CVC) 312.5 defines "electric bicycle" as a bicycle equipped with fully operable pedals and an electric motor of less than 750 watts . It establishes the following three classes of electric bicycles: 1. “Class 1 electric bicycle,” or “low-speed pedal-assisted electric bicycle,” is a bicycle equipped with a motor that provides assistance only when the rider is pedaling, and that ceases to provide assistance when the bicycle reaches the speed of 20 miles per hour. 2. “Class 2 electric bicycle,” or “low-speed throttle-assisted electric bicycle,” is a bicycle equipped with a motor that may be used exclusively to propel the bicycle, and that is not capable of providing assistance when the bicycle reaches the speed of 20 miles per hour. 3. A “class 3 electric bicycle,” or “speed pedal-assisted electric bicycle,” is a bicycle equipped with a motor that provides assistance only when the rider is pedaling, and that ceases to provide assistance when the bicycle reaches the speed of 28 miles per hour, and equipped with a speedometer. Class 3 electric bicycles are prohibited by the CVC from operating on bicycles paths or trails. The City has the authority to prohibit, by ordinance, the operation of a class 1 or class 2 electric bicycle on a bicycle path or trail, equestrian trail, or hiking or recreational trail within its jurisdiction. Staff recommends including CVC 312.5 defined electric bicycles as pedicabs to ensure that any pedicab operator that utilizes a motor to assist the pedicab driver is subject to all pedicab regulations. Pedicabs are currently prohibited on the beach bike path when operating for hire due to due to the safety issues related to the size of the pedicab in relation to the beach bike path. The draft ordinance amending Chapter 6.50 of the SMMC is included as Attachment K . Next Steps for Taxicab Program 1. Implement the administrative changes to the taxicab program. 2. Issue administrative rules no later than December 31, 2015. 21 of 23 3. Monitor changes to the vehicle for hire market, particularly TNCs. 4. Prepare an analysis of driver working conditions and income as it relates to the current taxicab business model, which relies on lease revenue, as opposed to fares. 5. Return to Council by March 2017 with a status of the program and recommended changes to the taxicab franchise program that would make companies more accountable to market forces rather than City regulations, including the potential of barring Taxicab companies from using independent contractors as drivers. Alternatives 1. Extend the franchises, maintaining the existing franchise system as it exists with no changes to the regulatory scheme or the number of vehicles authorized. This option would not address concerns related to competition with TNCs or the total number of vehicles authorized. 2. Extend the franchises, maintaining the existing franchise system with minor changes to the regulatory scheme, including allowing companies to remove vehicles from operation at their discretion to allow for flexibility and to remove price floors, with no changes to the number of vehicles. This option would be closer to the approach that Long Beach took addressing in a small way concerns related to competition with TNCs, but would not address the total number of vehicles authorized. 3. Extend the franchises of only two companies, maintaining the existing franchise system with minor changes to the regulatory scheme, including allowing companies to remove vehicles from operation at their discretion to allow for flexibility and to remove price floors, with no changes to the number of vehicles. This option addresses in a small way concerns related to competition with TNCS and would reduce the total number of vehicles authorized. 22 of 23 Financial Impacts and Budget Actions There is no immediate financial impact or budget action as a result of the recommended action. Staff will return to Council if specific actions are required in the future. Staff anticipates an ongoing revenue reduction in the amount of $144,389 beginning in FY 2015-16 due to the reduction in the number of authorized vehicles and the reduced vehicle franchise fees for part time vehicles, and an additional reduction in the amount of $68,659 in revenue in FY 2016-17 due to the implementation of a two year driver permit. Revenue changes are included in the FY 2015-16 Adopted Budget and the FY 2016-17 Budget Plan. Prepared By: Salvador Valles, Assistant Director of PCD Approved Forwarded to Council Attachments: A. 2008 Taxicab Study (weblink) B. Taxicab Franchise Adopted (weblink) C. Public Hearing & Award of Taxicab Franchises (weblink) D. Increase of Vehicles to 300 (weblink) E. Amendments and Clarifications (weblink) F. Assignment of Taxicab Franchise to All Yello Taxi, Inc., dba Metro Cab (weblink) G. March 2015 Study Session (weblink) H. August 2015 Letter to Taxicab Franchises I. September 2015 Letter from Taxicab Coalition J. September 2015 Letters from Taxi Taxi with Addendum and Petition K. Chapters 6 48 6 49 6 50 AMENDMENTS L. Taxicab Franchise Terms and Conditions BELL CAB AMENDMENTS 23 of 23 M. Taxicab Franchise Terms and Conditions ITOA AMENDMENTS N. Taxicab Franchise Terms and Conditions METRO CAB AMENDMENTS O. Taxicab Franchise Terms and Conditions TAXI TAXI AMENDMENTS P. Taxicab Franchise Terms and Conditions YELLOW CAB AMENDMENTS Q. Taxicab Rules Eff 1-1-2016 DRAFT AMENDMENTS R. Vehicle Allocation Criteria S. Taxicabs Fee Resolution final T. Taxi Presentation - Council November 10, 2015 Planning and Community Development Department 1685 Main Street PO Box 2200 Santa Monica CA 90407-2200 Fax: (310) 458-3380 August 17, 2015 Simon Momennasab (via email: tmmtm@aol.com) Director of Operations Bell Cab 13030 Cerise Avenue Hawthorne, CA 90250 Re: Franchise Renewal Council Meeting Dear Mr. Momennasab: In preparation for the expiration of the current taxicab franchise agreements, the Planning and Community Development department held a study session with the Santa Monica City Council on March 17, 2015. At that time all franchisees were provided an opportunity to provide recommendations and feedback to Council on changes to the system, particularly to account for the arrival of Transportation Network Companies. We will be presenting our recommendations to Council at its October 27, 2015 meeting. The recommendations that will be presented to Council take into account the feedback of all five taxicab franchisees. These recommendations are intended to achieve a clear balance between the requests of all five companies with the goals of the City and the need to be incremental in making adjustments to a system that is part of a rapidly changing market. The City Council meeting is a public meeting and, as always, any member of the public may provide Council with their comments on the proposed recommendations. Letters may also be submitted to Council in lieu of, or in addition to, speaking at the meeting. The draft recommendations from staff are outlined below, however, the final recommendations will be posted on the City’s web site at the following URL as a staff report to Council: http://www.smgov.net/departments/clerk/agendas.aspx Staff reports are generally available online about one week prior to the meeting. Staff is recommending: • Renewal of all franchisees for a period of two years. • Price flexibility. Price floors would be removed and companies would be authorized to establish promotional and flat rates, as well as to enter into pricing agreements with businesses. However, companies would be required to cover the difference of these promotions from standard rates, unless a majority of the permitted drivers agree to share in the cost of the promotions. • Authorization to “park vehicles”. Taxicab companies would be authorized to “park vehicles” with no limits; however the City must be notified when vehicles are “parked”. • A prorated two-year driver permit fee. • A reduction of vehicles from 300 to 182 based on considerations outlined in prior staff reports and information items, including full time vs. part time leases, total number of dedicated taxicab vehicles, and the number of Santa Monica generated trips. The 182 vehicles are recommended to be allocated as follows based on actual trips in 2014 as reported by each company. Planning and Community Development Department 1685 Main Street PO Box 2200 Santa Monica CA 90407-2200 Fax: (310) 458-3380 Company Current Authorized Vehicles Average Trips per Day per Vehicle* Proposed Authorized Vehicles Average Trips per Day per Vehicle* Bell Cab 58 2 16 8 ITOA 58 5 38 9 Metro Cab 63 6 42 8 Taxi! Taxi! 63 8 62 8 Yellow Cab 58 3 24 8 *Based on total trips in 2014 • Reassign rule-making authority from the Police Department to Planning and Community Development and incorporate minor changes recommended by four of the taxicab companies (e.g. changes from calendar to business days for deadlines) as well as other changes proposed by staff. A full list of these changes will be included with the staff report to Council. Staff will not be recommending any waivers to the Business License fees, driver permitting requirements, or vehicle permitting requirements at this time. The request from four of the taxicab companies to accommodate leaves have already been implemented by staff so that a driver is not required to reapply if he/she does not renew within 30 days while traveling for an extended period of time. Unfortunately companies and drivers have failed to take advantage of the process. This option will continue and we encourage companies to utilize it. Staff will also recommend that Council give direction to staff to gather data during the 2016 calendar year on driver incomes and hours worked from taxicab companies and drivers (and to attempt to capture income from trips that are not reported through the dispatching system), and make further recommendations to Council for amendments to the program to ensure that drivers are able to have greater income stability, access to benefits, and are able to earn a living wage. This would be coupled with researching additional opportunities to change the franchise fee structure, reduce regulations on taxicab companies, including pricing and vehicle regulations, to allow companies to be more responsive to market forces, and to ensure greater accountability to passengers. A more detailed evaluation of the performance of franchisees may also be considered. Staff is proposing to return to Council in March 2017 with its recommendations for additional changes to the franchise program that would be effective January 2018. If there are questions, or if companies would like to schedule individual meetings with me, please feel free to contact Carmen Gutierrez in the Planning and Community Development department at 310-458-2275 to schedule an appointment. Sincerely, Salvador M. Valles, Assistant Director Planning and Community Development cc: David Martin, Director, Planning & Community Development Cheryl Shavers, Senior Administrative Analyst – Taxicab Franchise Program Planning and Community Development Department 1685 Main Street PO Box 2200 Santa Monica CA 90407-2200 Fax: (310) 458-3380 August 17, 2015 Andrey Minosyan (via email: andrey@lataxi.com) President and General Manager Independent Taxi Operators Association 700 N. Virgil Avenue Los Angeles, CA 90029 Re: Franchise Renewal Council Meeting Dear Mr. Minosyan: In preparation for the expiration of the current taxicab franchise agreements, the Planning and Community Development department held a study session with the Santa Monica City Council on March 17, 2015. At that time all franchisees were provided an opportunity to provide recommendations and feedback to Council on changes to the system, particularly to account for the arrival of Transportation Network Companies. We will be presenting our recommendations to Council at its October 27, 2015 meeting. The recommendations that will be presented to Council take into account the feedback of all five taxicab franchisees. These recommendations are intended to achieve a clear balance between the requests of all five companies with the goals of the City and the need to be incremental in making adjustments to a system that is part of a rapidly changing market. The City Council meeting is a public meeting and, as always, any member of the public may provide Council with their comments on the proposed recommendations. Letters may also be submitted to Council in lieu of, or in addition to, speaking at the meeting. The draft recommendations from staff are outlined below, however, the final recommendations will be posted on the City’s web site at the following URL as a staff report to Council: http://www.smgov.net/departments/clerk/agendas.aspx Staff reports are generally available online about one week prior to the meeting. Staff is recommending: • Renewal of all franchisees for a period of two years. • Price flexibility. Price floors would be removed and companies would be authorized to establish promotional and flat rates, as well as to enter into pricing agreements with businesses. However, companies would be required to cover the difference of these promotions from standard rates, unless a majority of the permitted drivers agree to share in the cost of the promotions. • Authorization to “park vehicles”. Taxicab companies would be authorized to “park vehicles” with no limits; however the City must be notified when vehicles are “parked”. • A prorated two-year driver permit fee. • A reduction of vehicles from 300 to 182 based on considerations outlined in prior staff reports and information items, including full time vs. part time leases, total number of dedicated taxicab vehicles, and the number of Santa Monica generated trips. The 182 vehicles are recommended to be allocated as follows based on actual trips in 2014 as reported by each company. Planning and Community Development Department 1685 Main Street PO Box 2200 Santa Monica CA 90407-2200 Fax: (310) 458-3380 Company Current Authorized Vehicles Average Trips per Day per Vehicle* Proposed Authorized Vehicles Average Trips per Day per Vehicle* Bell Cab 58 2 16 8 ITOA 58 5 38 9 Metro Cab 63 6 42 8 Taxi! Taxi! 63 8 62 8 Yellow Cab 58 3 24 8 *Based on total trips in 2014 • Reassign rule-making authority from the Police Department to Planning and Community Development and incorporate minor changes recommended by four of the taxicab companies (e.g. changes from calendar to business days for deadlines) as well as other changes proposed by staff. A full list of these changes will be included with the staff report to Council. Staff will not be recommending any waivers to the Business License fees, driver permitting requirements, or vehicle permitting requirements at this time. The request from four of the taxicab companies to accommodate leaves have already been implemented by staff so that a driver is not required to reapply if he/she does not renew within 30 days while traveling for an extended period of time. Unfortunately companies and drivers have failed to take advantage of the process. This option will continue and we encourage companies to utilize it. Staff will also recommend that Council give direction to staff to gather data during the 2016 calendar year on driver incomes and hours worked from taxicab companies and drivers (and to attempt to capture income from trips that are not reported through the dispatching system), and make further recommendations to Council for amendments to the program to ensure that drivers are able to have greater income stability, access to benefits, and are able to earn a living wage. This would be coupled with researching additional opportunities to change the franchise fee structure, reduce regulations on taxicab companies, including pricing and vehicle regulations, to allow companies to be more responsive to market forces, and to ensure greater accountability to passengers. A more detailed evaluation of the performance of franchisees may also be considered. Staff is proposing to return to Council in March 2017 with its recommendations for additional changes to the franchise program that would be effective January 2018. If there are questions, or if companies would like to schedule individual meetings with me, please feel free to contact Carmen Gutierrez in the Planning and Community Development department at 310-458-2275 to schedule an appointment. Sincerely, Salvador M. Valles, Assistant Director Planning and Community Development cc: David Martin, Director, Planning & Community Development Cheryl Shavers, Senior Administrative Analyst – Taxicab Franchise Program Planning and Community Development Department 1685 Main Street PO Box 2200 Santa Monica CA 90407-2200 Fax: (310) 458-3380 August 17, 2015 Shirley Pe (via email: shirley@metrocabsm.com) General Manager All Yellow Taxi, Inc. dba Metro Cab 2121 Cloverfield Blvd., Suite 113 Santa Monica, CA 90404 Re: Franchise Renewal Council Meeting Dear Mr. Pe: In preparation for the expiration of the current taxicab franchise agreements, the Planning and Community Development department held a study session with the Santa Monica City Council on March 17, 2015. At that time all franchisees were provided an opportunity to provide recommendations and feedback to Council on changes to the system, particularly to account for the arrival of Transportation Network Companies. We will be presenting our recommendations to Council at its October 27, 2015 meeting. The recommendations that will be presented to Council take into account the feedback of all five taxicab franchisees. These recommendations are intended to achieve a clear balance between the requests of all five companies with the goals of the City and the need to be incremental in making adjustments to a system that is part of a rapidly changing market. The City Council meeting is a public meeting and, as always, any member of the public may provide Council with their comments on the proposed recommendations. Letters may also be submitted to Council in lieu of, or in addition to, speaking at the meeting. The draft recommendations from staff are outlined below, however, the final recommendations will be posted on the City’s web site at the following URL as a staff report to Council: http://www.smgov.net/departments/clerk/agendas.aspx Staff reports are generally available online about one week prior to the meeting. Staff is recommending: • Renewal of all franchisees for a period of two years. • Price flexibility. Price floors would be removed and companies would be authorized to establish promotional and flat rates, as well as to enter into pricing agreements with businesses. However, companies would be required to cover the difference of these promotions from standard rates, unless a majority of the permitted drivers agree to share in the cost of the promotions. • Authorization to “park vehicles”. Taxicab companies would be authorized to “park vehicles” with no limits; however the City must be notified when vehicles are “parked”. • A prorated two-year driver permit fee. • A reduction of vehicles from 300 to 182 based on considerations outlined in prior staff reports and information items, including full time vs. part time leases, total number of dedicated taxicab vehicles, and the number of Santa Monica generated trips. The 182 vehicles are recommended to be allocated as follows based on actual trips in 2014 as reported by each company. Planning and Community Development Department 1685 Main Street PO Box 2200 Santa Monica CA 90407-2200 Fax: (310) 458-3380 Company Current Authorized Vehicles Average Trips per Day per Vehicle* Proposed Authorized Vehicles Average Trips per Day per Vehicle* Bell Cab 58 2 16 8 ITOA 58 5 38 9 Metro Cab 63 6 42 8 Taxi! Taxi! 63 8 62 8 Yellow Cab 58 3 24 8 *Based on total trips in 2014 • Reassign rule-making authority from the Police Department to Planning and Community Development and incorporate minor changes recommended by four of the taxicab companies (e.g. changes from calendar to business days for deadlines) as well as other changes proposed by staff. A full list of these changes will be included with the staff report to Council. Staff will not be recommending any waivers to the Business License fees, driver permitting requirements, or vehicle permitting requirements at this time. The request from four of the taxicab companies to accommodate leaves have already been implemented by staff so that a driver is not required to reapply if he/she does not renew within 30 days while traveling for an extended period of time. Unfortunately companies and drivers have failed to take advantage of the process. This option will continue and we encourage companies to utilize it. Staff will also recommend that Council give direction to staff to gather data during the 2016 calendar year on driver incomes and hours worked from taxicab companies and drivers (and to attempt to capture income from trips that are not reported through the dispatching system), and make further recommendations to Council for amendments to the program to ensure that drivers are able to have greater income stability, access to benefits, and are able to earn a living wage. This would be coupled with researching additional opportunities to change the franchise fee structure, reduce regulations on taxicab companies, including pricing and vehicle regulations, to allow companies to be more responsive to market forces, and to ensure greater accountability to passengers. A more detailed evaluation of the performance of franchisees may also be considered. Staff is proposing to return to Council in March 2017 with its recommendations for additional changes to the franchise program that would be effective January 2018. If there are questions, or if companies would like to schedule individual meetings with me, please feel free to contact Carmen Gutierrez in the Planning and Community Development department at 310-458-2275 to schedule an appointment. Sincerely, Salvador M. Valles, Assistant Director Planning and Community Development cc: David Martin, Director, Planning & Community Development Cheryl Shavers, Senior Administrative Analyst – Taxicab Franchise Program Planning and Community Development Department 1685 Main Street PO Box 2200 Santa Monica CA 90407-2200 Fax: (310) 458-3380 August 17, 2015 Ayman Radwan (via email: aymanradwan@gmail.com) CEO TMAT, dba Taxi! Taxi! 2230 Michigan Avenue Santa Monica, CA 90403 Re: Franchise Renewal Council Meeting Dear Mr. Radwan: In preparation for the expiration of the current taxicab franchise agreements, the Planning and Community Development department held a study session with the Santa Monica City Council on March 17, 2015. At that time all franchisees were provided an opportunity to provide recommendations and feedback to Council on changes to the system, particularly to account for the arrival of Transportation Network Companies. We will be presenting our recommendations to Council at its October 27, 2015 meeting. The recommendations that will be presented to Council take into account the feedback of all five taxicab franchisees. These recommendations are intended to achieve a clear balance between the requests of all five companies with the goals of the City and the need to be incremental in making adjustments to a system that is part of a rapidly changing market. The City Council meeting is a public meeting and, as always, any member of the public may provide Council with their comments on the proposed recommendations. Letters may also be submitted to Council in lieu of, or in addition to, speaking at the meeting. The draft recommendations from staff are outlined below, however, the final recommendations will be posted on the City’s web site at the following URL as a staff report to Council: http://www.smgov.net/departments/clerk/agendas.aspx Staff reports are generally available online about one week prior to the meeting. Staff is recommending: • Renewal of all franchisees for a period of two years. • Price flexibility. Price floors would be removed and companies would be authorized to establish promotional and flat rates, as well as to enter into pricing agreements with businesses. However, companies would be required to cover the difference of these promotions from standard rates, unless a majority of the permitted drivers agree to share in the cost of the promotions. • Authorization to “park vehicles”. Taxicab companies would be authorized to “park vehicles” with no limits; however the City must be notified when vehicles are “parked”. • A prorated two-year driver permit fee. • A reduction of vehicles from 300 to 182 based on considerations outlined in prior staff reports and information items, including full time vs. part time leases, total number of dedicated taxicab vehicles, and the number of Santa Monica generated trips. The 182 vehicles are recommended to be allocated as follows based on actual trips in 2014 as reported by each company. Planning and Community Development Department 1685 Main Street PO Box 2200 Santa Monica CA 90407-2200 Fax: (310) 458-3380 Company Current Authorized Vehicles Average Trips per Day per Vehicle* Proposed Authorized Vehicles Average Trips per Day per Vehicle* Bell Cab 58 2 16 8 ITOA 58 5 38 9 Metro Cab 63 6 42 8 Taxi! Taxi! 63 8 62 8 Yellow Cab 58 3 24 8 *Based on total trips in 2014 • Reassign rule-making authority from the Police Department to Planning and Community Development and incorporate minor changes recommended by four of the taxicab companies (e.g. changes from calendar to business days for deadlines) as well as other changes proposed by staff. A full list of these changes will be included with the staff report to Council. Staff will not be recommending any waivers to the Business License fees, driver permitting requirements, or vehicle permitting requirements at this time. The request from four of the taxicab companies to accommodate leaves have already been implemented by staff so that a driver is not required to reapply if he/she does not renew within 30 days while traveling for an extended period of time. Unfortunately companies and drivers have failed to take advantage of the process. This option will continue and we encourage companies to utilize it. Staff will also recommend that Council give direction to staff to gather data during the 2016 calendar year on driver incomes and hours worked from taxicab companies and drivers (and to attempt to capture income from trips that are not reported through the dispatching system), and make further recommendations to Council for amendments to the program to ensure that drivers are able to have greater income stability, access to benefits, and are able to earn a living wage. This would be coupled with researching additional opportunities to change the franchise fee structure, reduce regulations on taxicab companies, including pricing and vehicle regulations, to allow companies to be more responsive to market forces, and to ensure greater accountabilit y to passengers. A more detailed evaluation of the performance of franchisees may also be considered. Staff is proposing to return to Council in March 2017 with its recommendations for additional changes to the franchise program that would be effective January 2018. If there are questions, or if companies would like to schedule individual meetings with me, please feel free to contact Carmen Gutierrez in the Planning and Community Development department at 310-458-2275 to schedule an appointment. Sincerely, Salvador M. Valles, Assistant Director Planning and Community Development cc: David Martin, Director, Planning & Community Development Cheryl Shavers, Senior Administrative Analyst – Taxicab Franchise Program Planning and Community Development Department 1685 Main Street PO Box 2200 Santa Monica CA 90407-2200 Fax: (310) 458-3380 August 17, 2015 William Rouse (via email: wjrouse@layellowcab.com) General Manager LA Taxi Cooperative 2129 W. Rosecrans Avenue Gardena, CA 90249 Re: Franchise Renewal Council Meeting Dear Mr. Rouse: In preparation for the expiration of the current taxicab franchise agreements, the Planning and Community Development department held a study session with the Santa Monica City Council on March 17, 2015. At that time all franchisees were provided an opportunity to provide recommendations and feedback to Council on changes to the system, particularly to account for the arrival of Transportation Network Companies. We will be presenting our recommendations to Council at its October 27, 2015 meeting. The recommendations that will be presented to Council take into account the feedback of all five taxicab franchisees. These recommendations are intended to achieve a clear balance between the requests of all five companies with the goals of the City and the need to be incremental in making adjustments to a system that is part of a rapidly changing market. The City Council meeting is a public meeting and, as always, any member of the public may provide Council with their comments on the proposed recommendations. Letters may also be submitted to Council in lieu of, or in addition to, speaking at the meeting. The draft recommendations from staff are outlined below, however, the final recommendations will be posted on the City’s web site at the following URL as a staff report to Council: http://www.smgov.net/departments/clerk/agendas.aspx Staff reports are generally available online about one week prior to the meeting. Staff is recommending:  Renewal of all franchisees for a period of two years.  Price flexibility. Price floors would be removed and companies would be authorized to establish promotional and flat rates, as well as to enter into pricing agreements with businesses. However, companies would be required to cover the difference of these promotions from standard rates, unless a majority of the permitted drivers agree to share in the cost of the promotions.  Authorization to “park vehicles”. Taxicab companies would be authorized to “park vehicles” with no limits; however the City must be notified when vehicles are “parked”.  A prorated two-year driver permit fee.  A reduction of vehicles from 300 to 182 based on considerations outlined in prior staff reports and information items, including full time vs. part time leases, total number of dedicated taxicab vehicles, and the number of Santa Monica generated trips. The 182 vehicles are recommended to be allocated as follows based on actual trips in 2014 as reported by each company. Planning and Community Development Department 1685 Main Street PO Box 2200 Santa Monica CA 90407-2200 Fax: (310) 458-3380 Company Current Authorized Vehicles Average Trips per Day per Vehicle* Proposed Authorized Vehicles Average Trips per Day per Vehicle* Bell Cab 58 2 16 8 ITOA 58 5 38 9 Metro Cab 63 6 42 8 Taxi! Taxi! 63 8 62 8 Yellow Cab 58 3 24 8 *Based on total trips in 2014  Reassign rule-making authority from the Police Department to Planning and Community Development and incorporate minor changes recommended by four of the taxicab companies (e.g. changes from calendar to business days for deadlines) as well as other changes proposed by staff. A full list of these changes will be included with the staff report to Council. Staff will not be recommending any waivers to the Business License fees, driver permitting requirements, or vehicle permitting requirements at this time. The request from four of the taxicab companies to accommodate leaves have already been implemented by staff so that a driver is not required to reapply if he/she does not renew within 30 days while traveling for an extended period of time. Unfortunately companies and drivers have failed to take advantage of the process. This option will continue and we encourage companies to utilize it. Staff will also recommend that Council give direction to staff to gather data during the 2016 calendar year on driver incomes and hours worked from taxicab companies and drivers (and to attempt to capture income from trips that are not reported through the dispatching system), and make further recommendations to Council for amendments to the program to ensure that drivers are able to have greater income stability, access to benefits, and are able to earn a living wage. This would be coupled with researching additional opportunities to change the franchise fee structure, reduce regulations on taxicab companies, including pricing and vehicle regulations, to allow companies to be more responsive to market forces, and to ensure greater accountability to passengers. A more detailed evaluation of the performance of franchisees may also be considered. Staff is proposing to return to Council in March 2017 with its recommendations for additional changes to the franchise program that would be effective January 2018. If there are questions, or if companies would like to schedule individual meetings with me, please feel free to contact Carmen Gutierrez in the Planning and Community Development department at 310-458-2275 to schedule an appointment. Sincerely, Salvador M. Valles, Assistant Director Planning and Community Development cc: David Martin, Director, Planning & Community Development Cheryl Shavers, Senior Administrative Analyst – Taxicab Franchise Program September 23, 2015 Mr. Salvador M. Valles Assistant Director Planning & Community Development 1685 Main Street P. O. Box 2200 Santa Monica, CA 90407-2200 Re: Franchise Renewal Council Meeting Dear Mr. Valles: All of the signatories below would like to thank you for the opportunity to meet in person and discuss the taxicab franchise system and renewal of the franchises. As we have discussed with you in the past, and as we discuss below, although we are pleased with the favorable recommendations concerning several of the proposals we made earlier in the year, we remain deeply concerned that the proposed fleet cuts are precisely the wrong approach to address the taxi industry’s challenges with the TNCs. If enacted as described, such cuts will seriously undermine our ability to recover from the business downturn and they give a decided mathematical advantage to one franchisee while dooming Bell Cab and Yellow Cab, who has been serving the City for 20 years, to a downward spiral in service. At a time when our TNC competitors are killing us with their scale, the solution is not to further shrink our fleets. We think the correct approach would be to relax the regulations that keep us from competing, and to give us an opportunity to turn our businesses around. Our point-by-point response to the recommendations listed in your August 17, 2015 letter is as follows: • We believe the franchises should be renewed for 3 years, not 2. Like any business we should have the opportunity to recoup our capital investment. As you know, most of our taxis are owned by individual investors, and they have invested tens of thousands of dollars each in their businesses in Santa Monica. The additional one year gives them more opportunity to regain this investment. • Price Flexibility. We agree, provided that paid exclusive arrangements with hotels may not take the form of such authorized discounts. • Authorization to Park Vehicles. We agree. Mr. Salvador M. Valles September 23, 2015 Page 2 • Prorated Two-Year Driver Permit Fee. We agree, provided that we understand that the two- year permit will cost the same as a one-year permit. • Reduction of Vehicles. For the policy reasons discussed above, we disagree with the approach of cutting vehicle authorities. However, we want to make it clear that we also do not accept the mathematical support for how the cuts are allocated. Some dispatch systems used by franchisees do not even keep track of street-hailed or walk-up trips, and they do not keep track of whether such trips take place within or outside the City’s boundaries. We brought the unreliability of these numbers to your attention years ago. Yet, we understand that the cuts are allocated based in part on estimates of these unreliable figures. Instead, we believe that, if there are to be cuts, Sec. 6.49.040(e) of the Municipal Code requires that they be equitably distributed, which is not achieved under the proposed formula. The one franchisee that is proposed for the least cuts is also the one that has had more than a dozen taxis parked – uninsured – and it appears that the formula counts these cabs in service. Also, if one recomputes the formula based on trips per driver rather than vehicle, the entire logic of the distribution falls apart because that company has the most vehicles with two drivers. This company also continues to engage in paid exclusive arrangements, which we understand are banned under City law, and those ill-gotten trips are used to justify keeping more of their taxis. Finally, this company is also the one that continues to charge exorbitant lease prices to its drivers, and if our taxis are reduced, these drivers will be forced to leave us and go pay their high leases, which helps to fund their paid exclusive arrangements. In spite of our firm disagreement, Bell Cab, Independent Taxi and Yellow Cab are willing to agree to a reduction of 8 operating authorities each, down to 50 taxicabs each. Bell Cab and Yellow Cab are further willing to agree that no more than 30% of their fleets will be so-called “dedicated” cabs, meaning that their only legal operation is in Santa Monica. Independent Taxi is willing to agree that 65% of its fleet will be dedicated. In the event that business improves over the three years of the franchise extension, we would like the opportunity to revisit these cuts and allocations. As a local company, Metro Taxi disagrees with a reduction in its fleet and must, by definition, operate all of its fleet as “dedicated.” However, and importantly, approximately 20 of Metro’s taxicabs are used to provide needed transportation to Santa Monica residents who are users of the Access Services program. Since these are not taxicab trips, per se, the City experiences a “reduction” of its taxicab fleet when Metro uses these cabs for Access trips. Metro proposes to lose 5 operating authorities, if Taxi Taxi, the other local company, also loses 5 operating authorities. Mr. Salvador M. Valles September 23, 2015 Page 3 In sum, we recommend reductions of 8 authorities each for Bell, ITOA and Yellow, and 5 authorities each for Metro and Taxi Taxi. • Reassignment of rule-making authority. We agree. • Business License fees. We are disappointed that the City is not revisiting this issue. Santa Monica continues to be the only jurisdiction in the region that charges business license fees, plus a company fee, on top of franchise fees. Add to that the fact that the City’s franchise fees are the highest in the region. Under the circumstances, where our business is drastically down due to the encroachment of unregulated businesses who pay no fees to the City, the value of our franchises have dropped considerably. Our fees should be reduced for this reason alone. However, you acknowledged this issue at the start of our franchises as an “oversight,” one that has cost our members dearly. Based on those conversations with you, we have always understood that you agreed with us on this point. We are asking that this issue be addressed. • We object to the proposed requirement for additional data collection for the following reasons. First, one of the major competitive advantages the TNCs have over taxicabs is the nearly unfettered freedom from any regulation whatsoever, and the effect that has on their cost structure and the way they allocate their resources compared to the taxi industry. To be frank, without exception, each of us spends more staff time on Santa Monica franchise requirements than we do for any other city, including Los Angeles. We just don’t believe it’s fair to add more burden. Second, much of what you ask for would require the reliance on driver trip sheets. These documents are the most notoriously unreliable documents in our industry, and one could not rely on the data as factual. Trip sheets are also not digitized, and analysis of them would require huge expenditures of time. Furthermore, as all of us operate with independent contractor drivers, many of whom are owners of our companies, we do not require drivers to account for their fares to the company and the waybill is simply not reliable. Third, the franchisees have different automated data capture capabilities, and the requirements should be the same for all franchisees across the board. For instance, non-dedicated taxis operated by some of us would have revenue outside the City and it would be impossible to distinguish whether such revenue was generated in or out of the city. Fourth, although we look forward to further regulatory responses to the issues created by the TNCs, such data do not appear to have a connection to the policy topics you outlined, such as the franchise fee structure and reduced regulation. Mr. Salvador M. Valles September 23, 2015 Page 4 We ask that you reconsider the requirement for additional data. Finally, we are unclear regarding whether you were open to further discussion of these points or whether you planned to immediately finalize the requirements in a recommendation to the council. We would welcome the opportunity to continue our discussion with you. Please contact us if you would like to schedule a meeting. Sincerely, Ali Nasrollahy President All Yellow Taxi, Inc. dba Metro Cab Simon Momennasab Director of Operations Bell Cab Company, Inc. Andrey Minosyan President Independent Taxi Owners Association, Inc. Kia M. Tehrany Director of Operations L.A. Taxi Cooperative, Inc. dba Yellow Cab cc: Ms. Cheryl Shavers CITY OF SANTA MONICA TAXICAB RULES AND REGULATIONS Effective January 1, 20126 SCOPE AND INTENT These rules and regulations (“Rules”) established by the Planning and Community Development Director Santa Monica Police Department pursuant to Santa Monica Municipal Code Section 6.49.020 shall be followed by all companies and its employees, cooperatives, associations, vehicle permittees, and drivers providing taxicab transportation services in the City of Santa Monica. These Rules are not intended to be duplicative. Citations may be written for more than one similar rule violation. However, only one penalty will be levied as appropriate. Taxicab Rules Draft Redline Version Attachment Q TABLE OF CONTENTS Section Page 100 DEFINITIONS………………………………………………………………………………………………………………………… 1 200 RULES AND REGULATIONS FOR FRANCHISEE, DRIVER/MANAGER, VEHICLE PERMITTEE……… 4 • General Provisions………………………………………………………………………………………………………………………. 4 • Driver Monitoring – Public Safety………………………………………………………………………………………………… 5 • Customer Service…………………………………………………………………………………………………………………………. 6 • Administration / Office Operations / Record Keeping / Notifications…………………………………………… 7 • Reporting…………………………………………………………………………………………………………………………………….. 8 • Associations, Co-Operatives And Memberships…………………………………………………………………………… 9 300 TAXICAB DRIVER’S PERMIT REQUIREMENTS………………………………………………………………………… 10 • Minimum Taxicab Driver Qualifications……………………………………………………………………………………….. 10 • Driver Application Procedures……………………………………………………………………………………………………… 11 • Driver Application Testing……………………………………………………………………………………………………………. 11 • Driver Fingerprinting and Background Check …………………………………………………………………………….. 11 400 TAXICAB DRIVER CODE OF CONDUCT……………………………………………………………………………….. 14 • General Provisions………………………………………………………………………………………………………………………. 14 • Vehicle Operations……………………………………………………………………………………………………………………… 15 • Customer Service……………………………………………………………………………………………………………………….. 18 • Taximeters…………………………………………………………………………………………………………………………………. 20 • Taxicab Stands / Parking / Customer Solicitation………………………………………………………………………… 21 • Administration / Reporting / Record Keeping…………………………………………………………………………….. 22 500 VEHICLE PERMITTING REQUIREMENTS………………………………………………………………………………. 23 • General Requirements……………………………………………………………………………………………………………….. 23 • Vehicle Application - Driver/Manager………………………………………………………………………………………… 25 • Vehicle Application – Investor Shareholder……………………………………………………………………………….. 26 600 TAXICAB VEHICLES AND EQUIPMENT MAINTENANCE STANDARDS……………………………………. 27 • Equipment…………………………………………………………………………………………………………………………………. 28 • Signage………………………………………………………………………………………………………………………………………. 29 • Vehicle Maintenance…………………………………………………………………………………………………………………. 32 700 PROCEDURES FOR PROCESSING VIOLATIONS OF TAXICAB RULES AND REGULATIONS………. 34 SCHEDULE I – PENALTIES FOR VIOLATION OF TAXICAB RULES 1 SECTION 100 - DEFINITIONS 101. ASSOCIATION, CO-OPERATIVE or MEMBERSHIP means an independent taxicab enterprise or organization owned and operated by its members for the financial benefit of its members, which has been granted a taxicab franchise by the City of Santa Monica. Each authorized taxicab fleet slot correlates to a share or ownership in the association, co-operative or membership. 102. BRIBE means anything of value or advantage, present or prospective, or any promise or understanding to give anything of value or advantage, asked, given or accepted, with the intent to unlawfully influence the person to whom it is given in his or her action in any public or official capacity. 103. INACTIVATE means a permanent annulment of an existing permit by the franchisee, which cannot subsequently be renewed, replaced or reinstated without the timely submission of a new Taxicab Driver’s Permit application or Taxicab Driver’s Permit Transfer application. 104. CITY means the City of Santa Monica. 105. DEPARTMENT means the Santa Monica Police Planning and Community Development Department. 106. DMV means the California Department of Motor Vehicles. 107. DRIVER/MANAGER means a member of an association, co-operative or membership Franchisee, who drives, controls, and manages taxicabs for Franchisee. 108. FRANCHISEE means every person, company, corporation, association, co-operative, membership or any other organizational structure approved by the City Council to hold a franchise to provide taxicab transportation services in the City. A franchisee includes directors, officers, members, management, and employees. 109. IMMEDIATE OUT OF SERVICE (IOS) means the placement of a taxicab in a status such that no person may operate the taxicab after notice by an authorized Enforcement Officer or police officer that the taxicab is in an unsafe condition or is not equipped as required by these Rules, except as may be necessary to return the taxicab to the residence or place of business of the owner or driver or to a garage, until the taxicab and its equipment are in compliance with these Rules. IOS may also mean the placement of a driver in a status such that he or she may not operate any taxicab after notice by an authorized Enforcement Officer or police officer that the driver may not operate a taxicab until the driver is in compliance with these Rules. 110. INVESTOR/SHAREHOLDER means a member of an association, co-operative or membership Franchisee that does not manage or control taxicabs for Franchisee. 111. LEASE DRIVER means a person who is an independent contractor possessing a valid Taxicab Driver’s Permit and who drives a taxicab with a franchisee or vehicle permittee. 2 112. MEMBER means an individual person or Subchapter S corporation who owns one or more taxicabs or shares in an association, co-operative or membership franchisee. Only those individuals applying for investor/shareholder membership status may apply as a Subchapter S corporation. 113. ON DUTY means the time between the start and end of a work shift and documented by the franchisee dispatch for each driver. 114. OPERATE means to be in control of a taxicab that is transporting a passenger(s) or is available for receiving passengers. 115. ORDER AND DISPATCH RECORDS mean original documents prepared by hand and machine time- stamped at the time the document is completed or computer-generated documents showing the time, date, and specific information about telephone or equivalent communication orders for service, and the assignment of orders to drivers. 116. PENALTY POINTS mean a method of assigning points to the franchisee as a result of violations of these Rules or violations of any provisions of a permit, the franchise ordinance, the SMMC, or the Vehicle Code. 117. REVOCATION means a permanent removal of the privileges granted to the holder of an existing permit or franchise by the City, which cannot subsequently be renewed, replaced or reinstated without the approval of the City. 118. SMMC means the Santa Monica Municipal Code. 119. STANDBY means the time period during which a taxicab driver waits for a passenger, at the passenger’s request and with the taximeter activated, until the passenger returns or until the taxicab is dismissed. 120. SUBCHAPTER S CORPORATION means a Subchapter S Corporation as defined in the United States Internal Revenue Code Section 1361, except that greater than 50% of stock in the Subchapter S Corporation shall be held by a single individual who owns one or more taxicabs or shares in Franchisee and is known as the primary agent for the Subchapter S corporation. Additional stockholders may be allowed as part of the Subchapter S Corporation, provided that they are immediate family members (parent, child or grandchild) of the primary agent and have been “gifted” stock in the corporation by the primary agent as allowed in IRS tax law. The individual named as the primary agent of the Subchapter S Corporation must remain the same and retain a majority of the stock (greater than 50%). Spouses are considered a single shareholder. 121. SUSPENSION means a temporary removal of the privileges granted to a Franchisee or permittee. 122. TAXICAB DRIVER or 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. The individual may be an employee of a franchisee, a lease driver, or a member of Franchisee. 123. TAXICAB DRIVER’S PERMIT means a non-transferable authorization for an individual taxicab driver to operate a vehicle in a City-franchised taxicab transportation service in the City. 3 124. TAXICAB POOL means the fleet of taxicabs that is managed and controlled completely by franchisee and not by a member of franchisee. 125. TAXICAB ZONE OR HACK STAND means an area on private property (such as hotels) designated by the property owner for parking taxicabs while waiting for passengers, also commonly referred to as a hack stand. 126. TAXICAB VEHICLE PERMIT means a non-transferable authorization for a vehicle to be driven or operated in a City-franchised taxicab transportation service in order to pick up or attempt to pick up passengers within the boundaries of the City, whether as owner, lessor, lessee or otherwise. 127. TAXICAB STAND means a curb parking area on a public street designated and posted by the Parking and Traffic Engineer for the standing or parking of taxicabs while awaiting employment. 128. TERMINATION means the voluntary or involuntary separation of a taxicab driver from employment with a Franchisee. 129. TERMS AND CONDITIONS means an Ordinance of the City Council of the City of Santa Monica granting a taxicab franchise to provide taxicab services in the City of Santa Monica and the terms and conditions that the franchisee is subject to. 130. TIME MACHINE means an automatic clock device that accurately prints date and time on a document. 131. VEHICLE CODE means the California Vehicle Code in its latest revision. 132. VEHICLE PERMITTEE means an individual person or Subchapter S Corporation that has been granted a Taxicab Vehicle Permit. 133. WAYBILL means a form approved by the Department on which the taxicab driver of a taxicab is required to record all trips. The waybill record shall identify the taxicab number, the taxicab driver’s name and license number, the date of each hire, the method of hire (e.g., radio dispatch, cruising, cab stand), the exact time of day the service order is received, the exact time of departure and address/location of each trip origin (pick-up), the exact time of arrival and address/location of each trip destination (drop-off), and the exact fare paid.an original document on a form approved by the City that is printed with an identifying sequential number, the current year, and the organization’s name and design, to be completed by a driver. 4 SECTION 200 – RULES AND REGULATIONS FOR FRANCHISEE, DRIVER/MANAGER, VEHICLE PERMITTEE GENERAL RULES AND REGULATIONS 201. Each franchisee and its management, employees, and lease drivers; each vehicle permittee; each driver; and each member’s employees and lease drivers, are individually and jointly responsible for complying with all rules and regulations of the Department; all provisions of the SMMC; the Terms & Conditions of the franchise as set forth in the ordinance granting the franchise to Franchisee; any rule or regulation of the Department of Airports; and any provisions of State law, rules and regulations relating to the operation of a taxicab or vehicle for hire. a) Franchisee Violation (Schedule D) b) Driver or Vehicle Permittee Violation (Schedule C) 202. Each franchisee shall provide 24-hour taxicab transportation services in the City. (Schedule D) 203. Each franchisee shall ensure that the full number of taxicab vehicles it is authorized to operate is available for taxicab service in the City in accordance with written monthly and annual performance standards established by the City. (Schedule D) 204. A franchisee shall not give, offer or receive a bribe or any gift of any value with the intent to affect an action which could be contrary to the rules and regulations of the Department, the SMMC, the terms of a franchise or operating permit, or State law, or with the intent or purpose of having an agent or employee of the City not perform his or her duties relating to the regulation of taxicabs. Specifically, a franchisee shall not engage in such activity with any City personnel, drivers or any other person in the position to influence the operation of its taxicabs. (Schedule D-Conduct) 205. Each franchisee shall conduct itself in a professional manner at all times and resolve all disputes with other franchisees, the business community, those in charge of taxicab zones, and the general public, with a goal of maintaining a favorable public image for the taxicab industry and the City. (Schedule B-Conduct) 206. Each franchisee is prohibited from entering into any taxicab service arrangements or agreements for compensation with any hotel, motel, or other business establishments, or any public or private agency or organization in the City. Each Franchisee shall ensure that none of its members or taxicab drivers enters into any such taxicab service arrangements or agreements for compensation with any hotel, motel or other business establishments, or any public or private agency or organization in the City. (Schedule B – Conduct) 207. Rules pertaining to advertisement and solicitation of service with Penalties assessed on a daily basis: a) In no event shall any franchisee, in any format or media, advertise or list a telephone number serving said operator which purports to be or is used as a telephone number of another taxicab company, real or fictitious, or other types of vehicles for hire. 5 b) In no event shall a franchisee commingle within the same telephone directory (in any format or media, including any telephone book, Internet directory, or webpage) display advertisement which covers any portion of the City any reference to said operator with that of any taxicab company or operator of vehicles for hire not authorized to provide taxicab service in the City. c) Any telephone line used or listed by a franchisee that is in violation of any part of this Rule shall be subject to cancellation, with $1,000 assessed to the franchisee for each day after the effective notification date until the number is disconnected. (Schedule D-Conduct) 208. No taxicab may be equipped with an unauthorized device capable of receiving from or communicating with a dispatch system other than its own franchisee. (Schedule B–Conduct) 209. The driver/manager vehicle permittee or an authorized Franchisee representative shall appear in person upon request by the City for a hearing(s) when a taxicab under their control has been cited for a violation. (Schedule A-Conduct or B-Conduct) 210. Franchisee and driver/manager vehicle permittee shall make his or her taxicab(s) available to the City within 1 calendar day for removal of taxicab identification decals for the same period that the driver/manager vehicle permittee’s Taxicab Driver’s Permit is suspended, if control of the vehicle(s) is not transferred to Franchisee as part of the taxicab pool. (Schedule A-Conduct or Schedule B- Conduct) 211. Each franchisee shall reimburse overcharges to its customers. (Schedule B) 212. Each franchisee shall record the time its taxicabs begin and end operation each day, and the time its drivers begin and end each work shift. (Schedule B) 213. Each franchisee shall maintain records of the identification of the driver of each taxicab at all times (See Rule 236). (Schedule B–Public Safety) DRIVER MONITORING – PUBLIC SAFETY 214. Each franchisee shall verify that each driver possesses a valid Taxicab Driver’s Permit (See Rule 419). Franchisee and driver/manager vehicle permittee shall not allow any person to operate a taxicab upon expiration, cancellation, suspension or revocation of the Taxicab Vehicle Permit. (Schedule A-Conduct or B-Conduct) 215. Each franchisee shall enroll all permitted drivers in the DMV Pull Notice Program and shall review such records for all drivers for compliance with company and City requirements at least annually and as additional updates are received. Each franchisee shall file such records, by driver, in a central location. (Schedule B–Public Safety) 216. Each franchisee shall notify the City by the end of the next business day if a driver’s record or ability to operate a taxicab fails to meet the requirements contained in Rules 306 and 307. (Schedule D) 6 217. Each franchisee shall be responsible for verifying enrollment of its permitted drivers in a controlled substance and alcohol testing program with pre-permitting, annual, and random test requirements, and provide proof of enrollment to the City before the issuance of any Taxicab Driver’s Permit. Each franchisee shall: a) Contract with a certified program administrator; b) Provide substance abuse training to supervisory personnel; c) Withdraw sponsorship for any driver who has failed to maintain enrollment in the program; d) Provide company policy and educational materials to all drivers and employees; e) Provide to the City annual test results and statements of receipt of policy and educational materials on file, by driver; and f) Comply with all applicable requirements of California Government Code Section 53075.5(b)(3). (Schedule D) CUSTOMER SERVICE 218. Each franchisee shall require order takers and dispatchers to inform the caller of the estimated time of delay if service is not expected to be available within 15 minutes. (Schedule B) 219. Each franchisee shall require order takers and dispatchers to identify themselves and the company name to callers. Failure by an order taker or dispatcher to identify themselves and the company name to callers is a violation of this Rule. (Schedule B) 220. Each franchisee shall maintain a uniform dress code and appearance standard that requires drivers to wear clothes that are neat and clean and to be well groomed at all times while on duty. The dress code and appearance standards must be approved by the City and will apply to all taxicab drivers operating within the City. (Schedule B) 221. A franchisee or its employees, order takers, or dispatchers shall not ask a customer requesting taxicab service if payment will be by transportation coupons, vouchers, stamps, etc. (Schedule B) 222. Each franchisee shall distribute and make available to all passengers and customers any cards, flyers, pamphlets, or other information as determined by the City and made available in sufficient quantities to the franchisee by the City. Such information may include, but is not limited to, passenger surveys and complaint procedures. (Schedule B) 223. A franchisee may not charge a customer to return his or her property and shall maintain a lost and found policy that includes maintaining a “Lost and Found Box” at the franchisee’s main operation location(s). (Schedule B) ADMINISTRATION / OFFICE OPERATIONS / RECORD KEEPING / NOTIFICATIONS 224. Each franchisee shall submit to the City and maintain on file evidence of valid liability insurance for all its taxicabs in service and evidence of valid Commercial General Liability (CGL) insurance for its 7 premises and contractors in a form acceptable to the City Risk Manager and the City Attorney. Each franchisee shall ensure that such evidence is on file with the City and current at all times (See Rules 421, 424, 603, and 630). (Schedule D) 225. Each franchisee shall notify the City in writing and return the Taxicab Vehicle Permit by the next business day anytime a vehicle is removed from insurance coverage as a result of the vehicle being taken out of service due to an accidentfor any reason. The franchisee must also provide proof that insurance was reinstated prior to returning the vehicle back to service and, if the vehicle being returned to service has a new VIN number from the vehicle that was originally permitted, schedule an appointment to have a new Taxicab Vehicle Permit issued for the vehicle. (Schedule B-Public Safety) 226. A franchisee shall return any confiscated invalid Taxicab Driver’s Permit to the City within 31 calendar business days. (Schedule B) 227. Franchisee shall notify the City, in writing, of the death of a vehicle permittee within 57 calendar business days after becoming aware of the death, but in no event later than 7 calendar business days after the first day of the month following the death of the vehicle permittee. Divestment of a member’s taxicabs or shares shall be concluded within 1 year of notification with extension of time provided for “just cause” as requested in writing to the City. (Schedule B) 228. Each franchisee shall promptly notify the City in writing of the termination of any driver by the franchisee and the cause for such action, but in no event shall written notice be delivered later than 2 calendar days after the termination date. Upon such notification, the Taxicab Driver’s Permit will be inactivated and immediately returned to the City but no later than 5 calendar days after the termination date. For purposes of these Rules, the Taxicab Driver’s Permit is considered invalid as of the date of termination. (Schedule B) 229. Franchisee shall submit the taxicab identification decals to the City from any taxicab that has an expired, canceled or revoked Taxicab Vehicle Permit. (Schedule B) 230. A franchisee and driver/manager vehicle permittee shall make his or her taxicab(s) available to the City within 5 calendar business days for removal of taxicab identification decals when his or her Taxicab Driver’s Permit is revoked, canceled or expired, and control of such taxicab(s) is not transferred to Franchisee as part of the taxicab pool and membership status changed to investor/shareholder. (Schedule A or Schedule B) 231. Each franchisee shall promptly investigate and keep on file a record of any circumstances in which Rules 430g and 433 require a driver to report an incident to the supervisor on duty, and such records shall be made available to the City upon request. (Schedule B) 232. Each franchisee shall retain all recordings of an “incident” from the security cameras installed in its taxicabs for at least 1 year, shall permit any authorized officer or employee of the City to inspect such recordings upon request, and shall provide to the City a copy of the recordings upon request. Each franchisee shall ensure that each vehicle is able to maintain at least 60 days of recordings before being overwritten or deleted, with a setting of frames per minute that is approved by the 8 City. An “incident” for purposes of this Rule includes any event involving a crime, accident, or other matter that could result in legal action or require investigation by any governmental body or police department. (Schedule B– Public Safety) 233. Each franchisee shall keep order and dispatch records readily available to the City for at least 90 calendar days. (Schedule B) 234. Each franchisee shall maintain the authorized use of a Federal Communication Commission assigned radio frequency(s) and a base station radio capable of two-way communication, on the assigned frequency(s), with its mobile units at any location in its service area or within the City. (Schedule B-Public Safety) 235. Waybills - Each franchisee shall maintain waybills and make them availabe for inspection for up to 1 year from the date of the trip.: a) Submit to the City a sample waybill for approval of form and entry requirements and shall not supply any unapproved waybills to the franchisee’s drivers; b) Supply its drivers with preprinted serialized waybills for each shift worked; c) Collect original waybills (no photocopies) from all its drivers; d) File all waybills no later than 14 calendar days after the date on the waybill. Waybill files may be maintained electronically, but must be a scanned image from the original waybill in a generally accepted format that cannot be altered; and e) Retain all waybills for at least 3 years and produce any such waybill upon request by the City for review. (Schedule B) REPORTING 236. Each franchisee shall maintain and provide the City, by the 7th day of each month, the current address, telephone numbers, and any other relevant contact information for all its taxicab drivers, driver/managers, and members. (Schedule B) 237. Each franchisee shall submit to the City an updated Management/Business Plan and a financial statement by May 31st of each year (or the next City business day if the date falls on a weekend or holiday). The Plan must include information for each plan category as specified by the City and an annual financial statement (for the previous calendar year) prepared by a certified public accountant. Each franchisee shall also submit updated information for any portion or section of the Plan as the City deems necessary. Late or non-submission of the Plan or financial statement shall be cause for a late penalty and may lead to further disciplinary action. For purposes of this Rule, each day the report is late is a new violation. (Schedule B-Conduct) 238. Each franchisee shall submit any change in its Board of Directors, officers or management personnel to the City, in writing, within 5 business days of the change. Management personnel changes shall not contravene the purposes of the franchising system, and changes are subject to City approval, which approval shall not be unreasonably withheld. (Schedule B-Conduct) 9 239. Each franchisee shall maintain records of, and provide to the City upon request, the following order and dispatch record information for each service request: a) Franchisee responding; b) Location of pickup request; c) Identification of order taker; d) Date and time order placed, printed with time machine or computer dispatch system; e) Time delay quoted, if any; f) Identification of taxicab dispatched (the operator must be able to identify the name of the taxicab driver, even if through a separate record); and g) Time of dispatch, printed with time machine or computer dispatch system. (Schedule B-Conduct) 240. A driver/manager vehicle permittee shall file an original copy of an annual profit and loss statement in a form acceptable to the City on or before May 1st of the year following the calendar year reported. For purposes of this Rule, each day the statement is late is a new violation. (Schedule A- Conduct) 241. Each franchisee shall timely submit all reports required by the City. Submitting any standard, scheduled or routine report late is a violation of this Rule. For purposes of this Rule, each day a report is late is a new violation. (Schedule B) ASSOCIATIONS, CO-OPERATIVES AND MEMBERSHIPS This section applies to taxicab associations, co-operatives, and memberships, and their respective members, drivers, and member’s drivers. 242. Each association, co-operative, and membership franchisee shall have a testing procedure for establishing new (expansion) and replacement driver/manager members. (Schedule B) 243. Franchisee shall, upon request or whenever procedures may change, submit the testing procedure required under Rule 242 to the City for review and approval regarding validity and job relatedness. (Schedule B) 244. The transfer to another individual as primary agent holding more than 50% of stock ownership of a Subchapter S Corporation that is a vehicle permittee shall be reported to the City within 10 calendar days of the transfer, and an application shall be submitted for a new Taxicab Vehicle Permit membership approval within 30 calendar days. For any change in stock distribution within a Subchapter S Corporation, the primary agent must supply to the City, within 30 calendar days, an updated IRS Form 2553 specifying the names of all stockholders, the number or percent of shares owned, and a signed affidavit, as approved by the City, regarding the family relationship to the 10 primary agent of any new stockholders in the Subchapter S Corporation. (Schedule C-Conduct or Schedule D-Conduct) 11 SECTION 300. TAXICAB DRIVER’S PERMIT REQUIREMENTS At any time a driver’s DMV record, criminal record, or ability to operate a taxicab fails to meet the requirements contained in this Section, the Taxicab Driver’s Permit shall be revoked. An applicant who previously held a Taxicab Driver’s Permit and whose permit was inactivated or revoked, or an applicant whose application has been withdrawn or denied, must apply for a new Taxicab Driver’s Permit, pay all applicable fees, and meet all of the requirements of this section for a new applicant and such other conditions as the City may impose, including fingerprinting. Exception: If a permit has been inactivated and the driver transfers to a new company within 30 days, the permit may be reactivated with payment of the applicable Permit Transfer Fee. For purposes of these Rules, a driver who fails to renew his or her Taxicab Driver’s Permit within 30 days after the permit has expired shall have his or her permit inactivated; drivers with expired permits are subject to Rule 419. 301. An applicant shall be denied a Taxicab Driver’s Permit if he or she fails to submit all documentation required to substantiate his or her qualifications for the permit within 60 calendar days. 302. An applicant shall be denied a Taxicab Driver’s Permit if he or she fails to pay any money due to the City or otherwise resolve any matter related to the application to the satisfaction of the City, either prior to the expiration of a Taxicab Driver’s Permit being renewed, transferred, or replaced, or for a new Taxicab Driver’s Permit, by the deadline established by the City. MINIMUM TAXICAB DRIVER QUALIFICATIONS 303. An applicant for a Taxicab Driver’s Permit shall meet the following minimum qualifications: a) Be a minimum of 18 years old; b) Possess a current Class C California Driver’s License; c) Verify his or her legal right to work in the United States; d) Be able to communicate in English, written and spoken, as measured by standards and procedures established by the City; e) Be familiar with the Los Angeles area streets and freeway system; knowledge of and ability to locate, with the aid of a street atlas or GPS, street addresses and intersections in Santa Monica and surrounding cities in the County of Los Angeles; and knowledge of the laws of the road, as measured by standards and procedures established by the City and these Rules; and f) Not be afflicted with either a physical or mental incapacity that would preclude him or her from safely operating a taxicab and performing the duties normal to the taxicab profession. An applicant may be required to submit a medical report and have a valid medical certificate if the application or observation by authorized City personnel indicates a physical or mental affliction as described in this Rule. In such a situation, the applicant may be granted a temporary Taxicab Driver’s Permit for 30 calendar days pending receipt of a valid medical certificate. Upon submittal of the valid medical certificate and acceptance by the City, a regular Taxicab Driver’s Permit shall be issued to the applicant. Medical certificate requirements shall be in accordance with Vehicle Code Section 12804.9(a)(2) as required of vanpool vehicle drivers and are renewable every 2 years. 12 DRIVER APPLICATION PROCEDURES 304. In order to obtain a Taxicab Driver’s Permit, each applicant shall submit an approved application form, signed by an authorized agent of the franchisee, containing all current information required by the rules and regulations of the Department, including an agreement to submit to a background investigation and fingerprinting together with: a) The required application fee; b) A copy of a current and valid California Driver’s License; c) An original copy of the applicant’s H6 printout, obtained from the DMV within the preceding 30 calendar days; d) An original approved controlled substance test result or program certificate current to within the preceding 30 calendar days; e) Acceptable proof of right to work; f) A medical report, if required and available (see Rule 303f), to remain on file with the City; and g) Such further information that the City may require. DRIVER APPLICATION TESTING 305. An applicant shall take an examination which tests his or her qualifications to operate a taxicab; 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. Tests results are valid for 6 months. An applicant shall be denied a Taxicab Driver’s Permit if he or she fails to successfully complete the application testing process within 90 calendar days. DRIVER FINGERPRINTING AND BACKGROUND CHECK 306. An applicant shall be fingerprinted and undergo a background check by the Santa Monica Police Department. An applicant shall be denied a Taxicab Driver’s Permit for any of the following: a) If he or she is required to register as a sex offender under California Penal Code Section 290 et seq. b) If he or she has been convicted, during the preceding 7 years, of (for purposes of this Rule, a subsequent change of plea or vacation of verdict and dismissal of charges pursuant to California Penal Code Section 1203.4 does not release the applicant from the penalties resulting from the offense of which he or she has been convicted): i. Any offense relating to the use, sale, possession or transportation of narcotics or addictive or dangerous drugs; ii. Any act involving force, violence, threat or intimidation against persons; iii. Any illegal sexual conduct involving another nonconsenting person; 13 iv. Any act involving moral turpitude, including fraud or intentional dishonesty for personal gain; v. Any offense involving possession of a firearm or dangerous weapon; vi. Any offense involving the solicitation or agreement to engage in or engagement in any act of prostitution; vii. Any act of resisting, delaying or obstructing a peace officer, public officer or emergency medical technician, or any act of theft in either degree; or viii. Any offense which results in a felony conviction. c) If he or she has any record of habitual or excessive use or addiction to intoxicating beverages, narcotics or dangerous drugs. For purposes of these Rules, an applicant who has a previous record of violating Rule 403 is deemed to meet the definition of this Rule and shall be denied a Taxicab Driver’s Permit. d) If he or she has ever been convicted of any of the following Vehicle Code sections: Violation Description of Violation 20001 Hit and Run resulting in injury or death 20003 Hit and Run - failure to identify oneself to police or victim, and injury or death involved 20004 Hit and Run death - failure to report to police or CHP 23104 Reckless driving - causing injury 23153 Driving while under the influence of alcohol or drugs - causing injury to others e) If his or her last 3 years DMV printout indicates any of the following: i. A conviction within the last 3 years of any of the following Vehicle Code sections: Violation Description of Violation 20002 Hit and Run - property damage, including vehicles 23103 Reckless driving - no injury 23152 Driving while under the influence of alcohol or drugs - no injury 23220 Driver drinking while operating motor vehicle on highway ii. More than 3 moving violations within the last 3 years or more than 2 violations within the last year. iii. More than 3 chargeable vehicle accidents within the last 3 years or more than 1 within the last year. 14 f) If his or her Taxicab Driver’s Permit has been revoked within the last 3 years or if his or her prior Taxicab Driver’s Permit record contains information that would disqualify the applicant from holding a permit. g) If any portion of his or her application is found to be falsified. In such case the applicant will not be allowed to reapply for a Taxicab Driver’s Permit for a 2-year period from the time the falsification is first discovered. Should a repeat offense of falsification occur, the applicant will not be allowed to reapply for a Taxicab Driver’s Permit for a 7-year period from the time the repeat offense of falsification is discovered. h) If he or she has been convicted during the last 3 years for operating a taxicab in any jurisdiction without a valid driver’s permit for that jurisdiction. i) If he or she has willfully and intentionally attempted to cheat on the Taxicab Driver’s Permit exam. In such case first time offenders shall be ineligible to retake the exam for a one-year period. Repeat offenders shall be ineligible to retake the exam for a seven-year period. Test misconduct includes but is not be limited to: using notes or other materials which have been prohibited; looking at other applicants’ test papers; talking to others during the exam (other than test proctors); failing to stop when requested to do so at the end of the exam period; or coercing others for exam information. 307. An applicant may be denied a Taxicab Driver’s Permit if he or she has ever been convicted of: a) Any offense which results in a felony conviction beyond 7 years; or b) Any offense involving violence against persons or property, including attempt and conspiracy, beyond 7 years. 15 SECTION 400. TAXICAB DRIVER CODE OF CONDUCT GENERAL PROVISIONS 401. A driver shall not commit or engage in any unlawful act while on duty. For purposes of this Rule, penalties apply only upon a citation by a police officer or Enforcement Officer as a result of the officer’s personal observation or a complaint from the public. (Schedule A–Conduct) 402. A driver shall not commit or engage in any unlawful act at any time or in any jurisdiction. For purposes of this Rule, a driver is subject to the requirements of Rules 306 or 307. No violation of this Rule involving the commission of a crime may be charged unless there is a conviction by a court of competent jurisdiction. No penalties will be assessed against the franchisee unless there is evidence that the franchisee was aware of such unlawful acts and allowed the driver to continue driving with that operator. A driver may be taken out of service immediately while the City investigates such charge(s). (Schedule C–Public Safety) 403. A driver shall maintain current enrollment in the controlled substance and alcohol testing program authorized for the franchisee. Any “positive” or failing test result shall lead to suspension or revocation of the Taxicab Driver’s Permit. Failure to comply with a test requirement shall be considered as a test failure in addition to a “positive” test result. Penalties are as follows: Failure to maintain enrollment in the drug and alcohol testing program. (Schedule C – Public Safety). Test failure for a controlled substance or alcohol. A driver may be reinstated, after completion of rehabilitation and return-to-duty testing, if the number of test failures for drug or alcohol is no more than 1 in a 24-month period. More than 2 test failure results for drug or alcohol use within any period of time shall be cause for permanent revocation of the Taxicab Driver’s Permit. (Schedule C- Public Safety) 404. A driver shall not buy, sell, or drink an alcoholic beverage or have in his or her possession an open container of any alcoholic beverage while on duty. (Schedule C–Public Safety) 405. A driver shall not buy or sell alcoholic beverages while on duty. (Schedule A-Public Safety) 406. A driver shall not enter any bar or cocktail lounge while on duty except for the purpose of announcing arrival to a prospective passenger. (Schedule A-Conduct) 407. A driver shall not be under the influence of an alcoholic beverage, intoxicating liquor or any drug which may impair driving ability, while on duty. (Schedule C–Public Safety) 408. A driver shall not knowingly use, sell, handle or transport illegal narcotics at any time. (Schedule C- Public Safety) 409. A driver shall not give any information as to where narcotics may be obtained for illegal purposes; or knowingly solicit, procure or give information in regard to or take any passenger to any person or establishment for the purpose of prostitution or any illegal activity. (Schedule C-Conduct) 16 410. A driver shall not use a taxicab as his or her personal vehicle or for personal business at any time. (Schedule A). 411. A driver shall not use a scanner or other type of receiver that is capable of monitoring another franchisee’s assigned radio frequency or dispatch system. (Schedule A-Conduct for 1st Violation, Schedule C-Conduct for 2nd Violation) 412. A driver shall not give, offer or receive a bribe with the intent to affect an action which could be contrary to the Rules, the SMMC, the Terms & Conditions of a franchise ordinance, or State law, or with the intent or purpose of having an agent or employee of the City not perform his or her duties relating to the regulation of taxicabs. Specifically, a driver shall not engage in such activity with any City personnel, other drivers or any other person in the position to influence the operation of the driver’s taxicab. (Schedule C–Conduct) 413. A driver shall not file false or misleading information or complaints with the City. (Schedule C– Conduct) 414. A driver shall not offer or pay any bribe or gratuity to any employee or agent of a hotel, motel, business establishment, or public or private agency or organization for the privilege of providing taxicab services to the customers, clients, employees or agents of any hotel, motel, business establishment, or public or private agency or organization. (Schedule A-Conduct for 1st Violation, Schedule C– Conduct for 2nd Violation) 415. Each driver who is cited for a violation under a Rule that stipulates Immediate Out Of Service (IOS) shall immediately turn over his or her Taxicab Driver’s Permit to the citing officer. (Schedule A- Conduct) 416. A driver shall immediately comply with all lawful requests, orders, and directives issued by any authorized City personnel. (Schedule C) 417. A driver shall immediately read and sign any citation that he or she is issued when cited for a Rule violation; signing is not an admission of guilt. (Schedule C) 418. A driver shall not violate Vehicle Code Section 23111 by throwing or discharging from or upon any road or highway or adjoining area, public or private, any lighted or non-lighted cigarette, cigar, match, or any flaming or glowing substance. (Schedule C) VEHICLE OPERATIONS 419. A driver shall drive only for the franchisee shown on his or her Taxicab Driver’s Permit and have in his or her possession a valid Taxicab Driver’s Permit while in charge of or driving a taxicab, and properly post (right side up with picture and permit number visible to all passengers) the Taxicab Driver’s Permit in the permit card holder at all times while on duty. Whenever a driver changes franchisees, the driver shall exchange his or her current Taxicab Driver’s Permit for a replacement Taxicab Driver’s Permit, and submit a permit transfer fee with a completed application for a Taxicab Driver’s Permit for the new franchisee, signed by the driver’s new franchisee. Penalties are as follows: 17 a) Not holding an active Taxicab Driver’s Permit while in charge of or driving a taxicab. (Schedule A–Public Safety) b) Not being in possession of a Taxicab Driver’s Permit while in charge of or driving a taxicab. (Schedule A) c) Being in charge of or driving a taxicab for a company not shown on his or her Taxicab Driver’s Permit. (Schedule A-Conduct) d) Being in charge of or driving a taxicab while his or her Taxicab Driver’s Permit is expired, suspended or inactivated. (Schedule C-Conduct) e) Improperly posting or failure to post Taxicab Driver’s Permit. (Schedule A) 420. A driver shall have in his or her immediate possession a valid California driver’s license while in charge of or driving a taxicab and shall present the license upon request by an authorized Enforcement Officer or police officer. Penalties as follows: a) Drive or in charge while license is suspended. (Schedule C–Public Safety) b) Drive or in charge while license is expired. (Schedule C) c) Drive or in charge without immediate possession. (Schedule A) 421. Each driver shall not be in charge of or drive a taxicab that does not carry proof of vehicle insurance or financial responsibility (See Rules 224, 424, 603, and 630). (Schedule A-Public Safety) 422. A driver shall not knowingly allow the unauthorized use of his or her Taxicab Driver’s Permit or assigned leased taxicab; or use another person’s Taxicab Driver’s Permit or assigned leased taxicab. The Taxicab Driver’s Permit is nontransferable and shall not be duplicated. Penalties are as follows: a) Allowing the use of his or her Taxicab Driver’s Permit or the duplication of Taxicab Driver’s Permit. (Schedule A) b) Using another person’s Taxicab Driver’s Permit. (Schedule C) c) Allowing the use of a taxicab by another City permitted taxicab driver that has not been authorized to drive for the Franchisee. (Schedule C) d) Allowing the use of a taxicab by a non-permitted individual for the purpose of providing taxicab transportation services. (Schedule A–Public Safety) 423. A driver shall at all times drive or park the taxicab: a) In a safe, careful, and prudent manner; b) In compliance with City traffic regulations, as may be amended from time to time (See SMMC Article 3); and c) In compliance with the Vehicle Code. For purposes of this Rule, penalties apply only upon a citation by a police officer as a result of the officer’s personal observation or a complaint from the public. (Schedule A-Public Safety) 424. A driver shall not drive a taxicab that is in an unsafe operating condition. Unsafe operating conditions include but are not limited to: bald tires; missing fuel tank caps; inoperable or inadequate windshield wipers; broken or inoperable head or tail lamps; inoperable horn; defective or 18 inadequate brakes; missing, defective, or inoperable seat belts; or when there are more passengers than the number of seatbelts available or the taxicab capacity will safely or legally allow. Additionally, a driver shall ensure that at all times the vehicle lights, brakes, tires, steering, seatbelts, air conditioning, and heating and defrosting systems are maintained and in good working order; that the robbery light switch is in the proper position and in working order; and that evidence of financial responsibility is carried in the vehicle at all times. Penalties are as follows: a) Unsafe Operating Condition. b) Equipment not in working order. c) Accidental or unauthorized use of robbery light. d) No evidence of vehicle insurance or financial responsibility in vehicle. e) A citation was issued for vehicle or equipment defects with due notice given to correct the deficiency but no correction was made within the time allotted and the taxicab is still in service. (See Rules 224, 421, 603, and 630) (Schedule C) 425. A driver shall have the dispatch radio tuned to the franchisee’s assigned radio frequency and be connected to the computer dispatch system at all times, and ensure that the dispatch radio is audible and the computer dispatch system is on at all times that the taxicab is available for service. (Schedule A-Public Safety) 426. A driver shall not drive any combination of vehicles for more than 10 consecutive hours or more than 10 hours spread over a total of 15 consecutive hours in any 24-hour period. Thereafter, such driver shall not drive any taxicab or other vehicle until 8 consecutive hours have elapsed. See Vehicle Code Section 21702(a). (Schedule A-Public Safety) 427. A driver shall deactivate the top light of the taxicab when transporting passengers, on standby, or no longer on duty. (Schedule A) 428. A driver shall not drive a taxicab onto the Santa Monica Pier unless the driver is responding to a service call for a pick-up at the pier or dropping off passengers on the pier. (Schedule A-Conduct) 429. A driver shall not permit anyone who is not a passenger to sit in the taxicab while the driver is on duty. Exception: A taxicab driver trainer or trainee may be seated in the front seat during normal training sessions. (Schedule A) 19 CUSTOMER SERVICE 430. A driver shall provide exceptional customer service and provide service with the goal of maintaining a favorable public image for the taxicab industry and the City, including but not limited to the following. The penalty schedule for failing to comply with the following is provided after each customer service item listed. All other violations of this Rule not specifically outlined below shall be subject to Schedule A: a) A driver shall assist a passenger by placing luggage, packages, and wheelchairs in and out of the taxicab when requested; (Schedule A) b) A driver shall assist a passenger in and out of a taxicab when requested, provided that the driver is not required to lift the passenger; (Schedule A) c) A driver shall, while on standby and at the passenger’s request, remain at an agreed upon safe and legal location with the taximeter activated until the passenger returns or otherwise dismisses the taxicab; (Schedule A) d) A driver shall not refuse to activate or turn off the heating or air conditioning system upon customer request; (Schedule A) e) A driver shall not request payment of taxicab fare in advance of delivery of passenger to the passenger’s desired location except that a deposit up to the estimated amount of the fare may be collected in advance to show the passenger’s ability to pay (See Rule 433); (Schedule A) f) A driver shall not ask for the passenger’s destination until the passenger is seated in the taxicab; (Schedule A-Conduct) g) A driver shall not dismiss or discharge any passenger at a point other than the requested destination without adequate cause and, in such case, shall discharge the passenger only at a safe, well-lighted place convenient to public transportation. A driver shall immediately notify the supervisor on duty of any incident of passenger discharge and note on the waybill the time, date, supervisor’s name, and other details of the incident (See Rules 231 and 435); (Schedule A–Conduct) h) A driver shall maintain the interior and exterior of the taxicab in a clean condition and in good repair; (Schedule A) i) A driver shall not accept any additional passengers while the taxicab is engaged, without the consent of the fare-paying passengers of the taxicab; (Schedule A-Conduct) j) A driver shall not charge an additional fare for any additional passengers accepted under Rule 430(i) unless otherwise part of a bona fide carpooling service provided by Franchisee; (Schedule A–Conduct) k) A driver shall not request, demand, arrange for, or collect any compensation in an amount greater than (i.e., overcharge) the authorized taxicab rate applicable to the service provided; (Schedule A–Conduct) l) A driver shall use the shortest, most economical and most direct available route on all trips unless otherwise specifically requested or approved by the passenger and except for approved flat rate fares; (Schedule A–Conduct) m) A driver shall not attempt to influence or unnecessarily change the destination of a passenger. (Schedule A–Conduct) n) A driver shall not accept fees or gratuities from anyone other than the passenger or the passenger’s agent; and (Schedule A) o) A driver shall inform the franchisee immediately and turn over to the proper person, as soon as reasonably practicable, all found articles of property left by passengers in the driver’s vehicle. A driver may not charge a customer to return his or her property. (Schedule A) 20 431. A driver shall comply with the franchisee’s dress code and appearance standard, as approved by the City, wear clothes that are neat and clean, and be well groomed at all times while on duty (See Rule 220). (Schedule A) 432. A driver shall provide prompt, efficient service, conduct him or herself in a professional manner, and be courteous at all times to the general public, other taxicab drivers, and to Department authorized investigators, police officers, Enforcement Officers, and City officials and employees. (See Rule 416.) Verbal abuse, unwanted or inappropriate touching or conversation, and profanity are prohibited. Physical abuse, threatened or otherwise, or throwing objects, are major violations and shall be punished in accordance with these Rules and applicable law. The citing officer shall provide a supplemental written report of any incidents, including the names, addresses, and telephone numbers of all witnesses. (Schedule A-Conduct or Schedule C–Conduct at the Discretion of the City) 433. A driver shall not refuse to transport any person except for the following reasons: a) The driver has already been dispatched on another call; b) The passenger is acting in a disorderly or threatening manner, or otherwise causes the driver to reasonably believe that his or her health or safety, or that of others, may be endangered. c) There is a reasonable expectation that the passenger may cause the taxicab to become stained or foul smelling; d) The passenger requires the use of a litter or stretcher; e) The passenger cannot, upon request, show an ability to pay the fare; or f) The driver is occupying a taxicab zone or taxicab stand pursuant to conditions under Rules 447 and 449. A driver shall immediately notify the supervisor on duty of any incident of service refusal specified in this Rule and note on the waybill the time, date, supervisor’s name, and other details of the incident (See Rule 231). (Schedule A) 434. A driver shall not refuse to transport in the taxicab: a) Any passenger’s wheelchair, which can be folded and placed in the passenger, driver or trunk compartment of a taxicab; groceries or packages when accompanied by a passenger; personal luggage, possessions, or small pets in carriers. The driver shall not be required to transport any article that would cause the taxicab to become damaged, stained or foul smelling. A driver shall assist a passenger in and out of a taxicab when requested, provided that the driver is not required to lift the passenger; or (Schedule A–Conduct) b) Any passenger’s service animal, including any guide dog, signal dog, or other animal individually trained to provide assistance to an individual with a disability, without justification, or intentionally interfere with the use of a service animal by harassing or obstructing the user or his or her service animal. (Schedule A) 435. A driver shall not prohibit a passenger from exiting the taxicab, except to comply with Rule 430g. (Schedule C) 436. A driver shall, unless otherwise directed by the City in writing, give the passenger making payment an accurate and legible receipt printed by the taximeter for each taxicab trip provided. The printed 21 receipt shall display trip information as designated by the City, including, but not limited to, company name, vehicle number, date and time the trip began, date and time the trip ended, trip number, distance traveled, fare amount, any extra charge applied, and company telephone number. (Schedule A) 437. A driver shall not smoke in the taxicab while transporting passengers. (Schedule A) 438. A driver shall accept valid major credit/debit card payment if the chargeable payment amount is $10.00 or more (including tip), unless a lesser amount is required by franchisee. Credit/debit card authorization and payment information shall be digitally relayed through the taximeter or mobile data device operating in concert with the taximeter. A driver may request identification of payee and check credit/debit card validity prior to the end of the service trip. If a passenger fails to inform the driver in advance of the planned use of a credit/debit card, the driver must still accept any valid credit/debit card payment. (Schedule A) TAXIMETERS 439. A driver shall not operate a taxicab that contains a taximeter which is not properly sealed, accurate, and in good working condition. The taximeter shall not: be removable; be installed in a way that makes it possible to tamper with the rate setting mechanisms; or be equipped with unapproved devices attached to any part of the taximeter or its wiring harness. The taximeter’s installation and operation shall be in compliance with all laws of the City and State. Note: Possession of a fraudulent or false taximeter is prima facie evidence of intent to violate the law pursuant to California Business and Professions Code Section 12510. Penalties are as follows: a) Installation or operation of defective taximeter equipment that does not adhere to the standards of this Rule, but was not deemed to provide for willful and intentional tampering, overcharging or fraudulent activity. (Schedule C) b) Installation or operation of taximeter equipment that does not adhere to the standards of this Rule, and is deemed to provide for willful and intentional tampering, overcharging or fraudulent activity. Franchisee penalty point assessment may be reduced or waived dependent upon an operator’s cooperation and assistance in detecting and notifying the City of potential tampering and fraudulent activities. (Schedule C-Conduct) c) The taximeter contains a rate other than authorized. The taximeter shall have installed only the approved rates and extra charges. All mechanisms, devices or electronic programs attached, installed or used in connection with the taximeter shall not facilitate the perpetration of fraud. No schedule of rates contained in the taximeter may be higher than those authorized by the City. (Schedule C) 440. A driver must activate the taximeter at the beginning of each trip and deactivate the taximeter upon completion of the trip. If the driver arrives early on a “time¬order”, the driver shall not activate the taximeter before the prearranged time, or before the passenger is seated, whichever comes first. 22 EXCEPTION: The taximeter shall be activated for flat fare trips unless otherwise specified by the City in writing to all franchisees. (Schedule A-Conduct) 441. A driver shall ensure that the approved taximeter rate is set at all times. The taximeter shall not contain any unauthorized rate or extra charges which can facilitate the perpetration of a fraud. Franchisee penalties may be reduced to Schedule A or waived dependent upon an operator’s cooperation and assistance in detecting and notifying the City of potential tampering and fraudulent activities. (Schedule C–Conduct) 442. A driver shall ensure that the taximeter reading is visible to passengers at all times. (Schedule A) TAXICAB STANDS / PARKING / CUSTOMER SOLICITATION 443. A driver shall not perform routine mechanical maintenance on any vehicle while in a taxicab stand. (Schedule A) 444. A driver shall not leave the taxicab unattended except to assist a passenger while in a taxicab zone or taxicab stand. (Schedule A) 445. A driver shall occupy a taxicab stand only when available for hire (not while on a telephone or equivalent communication dispatch request, a personal service call, waiting for a return trip, or while on standby). (Schedule A) 446. A driver shall not refuse a request for service because of the driver’s position in line at a taxicab zone or taxicab stand; a passenger may select any taxicab in line. (Schedule A) 447. A driver shall solicit passengers only from the driver’s seat or standing immediately adjacent to the taxicab and only when the taxicab is legally parked or stopped. (Schedule A–Public Safety) 448. More than one taxicab from each franchisee may simultaneously stand in a queue in any designated taxicab stand unless one or more taxicabs from a franchisee or franchisees which are unrepresented in the taxicab stand approach to park at the taxicab stand. In such event, the taxicab which is standing last in the queue in the taxicab stand and which is represented by the same franchisee shall relinquish its space to the taxicab which is not represented in the taxicab stand. (Schedule A) 449. Only the “first-up” driver may solicit a passenger at a taxicab zone or taxicab stand. (Schedule A) 450. A driver may not solicit a passenger away from any other taxicab in line. (Schedule A) 451. A driver shall not use any other person to solicit passengers. (Schedule A) 452. A driver shall not attempt to refer a passenger to another taxicab or means of transportation, except in the case of a driver occupying a taxicab zone or taxicab stand pursuant to conditions under Rules 447 and 449. (Schedule A) ADMINISTRATION / REPORTING / RECORD KEEPING 23 453. A driver shall immediately notify the City whenever his or her permit to drive a taxicab issued in any other city has been suspended, denied, cancelled or revoked. (Schedule A) 454. A driver may not apply for or possess more than one Taxicab Driver’s Permit at any one time. (Schedule A) 455. A driver shall return an expired, revoked, canceled or otherwise invalid Taxicab Driver’s Permit to the franchisee immediately. (Schedule A) 456. Waybills - A driver shall: a) Complete and turn in to the franchisee all waybills in an accurate and legible manner; (Schedule A) b) Complete all items on the waybill, including the amount of each fare collected, time, origin, destination, “no goes” or “no loads”, all flat fares, and the amount registered on the taximeter; (Schedule A) c) At all times have a waybill in his or her possession that is properly filled out and complete to that minute showing the driver’s name, franchisee name, date, taxicab number, the time the shift began, and all other required information; and (Schedule A) d) Not falsify waybills. For any waybill falsification involving fraudulent credit/debit card activity, the penalty shall be revocation of the Taxicab Driver’s Permit. (Schedule C) 457. A driver shall log in when he or she begins a work shift and log out at the end of each work shift. (Schedule A) 458. A driver when serving suspension time shall turn in the Taxicab Driver’s Permit to the franchisee. (Schedule A) 24 SECTION 500. VEHICLE PERMITTING REQUIREMENTS Any applicant who does not meet all of the requirements of this Section shall have the application denied and shall be informed of the denial by the City, and the application fee shall be forfeited. A Taxicab Vehicle Permit shall only be valid for the registered owner of the vehicle who was granted a permit for such vehicle. In the event of ownership change, the Taxicab Vehicle Permit shall be considered invalid at such time of ownership change. Failure by an applicant to comply with any part of this Section is cause for denial of a Taxicab Vehicle Permit or revocation of an existing Taxicab Vehicle Permit. At any time a Taxicab Vehicle Permit application is found to be falsified, the Taxicab Vehicle Permit shall be denied or revoked. A driver/manager vehicle permittee whose Taxicab Driver’s Permit is suspended, revoked, canceled, or expired shall also have his or her Taxicab Vehicle Permit(s) suspended, revoked, canceled, or expired, unless control of the vehicle(s) is transferred to the franchisee as part of the taxicab pool. If the Taxicab Driver’s Permit is revoked, canceled or expired, the driver/manager vehicle permittee shall either change membership status to investor/shareholder or transfer membership. A franchisee that fails to renew a Taxicab Vehicle Permit prior to the due date established by the City must reapply for a new Taxicab Vehicle Permit and pay the applicable new Taxicab Vehicle Permit fee if the franchisee desires to hold a Taxicab Vehicle Permit. For purposes of these Rules, vehicle age shall be calculated as if the vehicle was placed into service on December 31st of its model year. GENERAL REQUIREMENTS 501. All taxicabs operated by franchisee must be registered to either franchisee or a member of franchisee. Taxicabs must either be owned by franchisee, 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 franchisee 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. Franchisee or the member shall submit to the City, upon request, the method utilized for vehicle acquisition. (Schedule D) 502. Franchisee shall not propose an application for an individual Taxicab Vehicle Permit by more than 1 person or primary agent of a Subchapter S corporation. (Schedule B) 503. Franchisee and vehicle permittee shall not allow a taxicab to be placed in service unless the franchisee or the vehicle permittee is the registered owner of the taxicab as allowed under the franchise ordinance. Franchisee must obtain a security interest in each vehicle owned by an individual member as provided for in the franchisee’s by-laws. The franchisee, vehicle permittee, a commercial lending agency or a licensed leasing agency whose primary business is the leasing of vehicles shall be the legal owner of the taxicab. (Schedule A-Conduct or Schedule B-Conduct) 504. Each franchisee shall ensure that a vehicle permittee does not own or control more than the number of taxicabs in the City provided for in the franchise ordinance for franchisee. Only 3 driver/manager memberships maximum may be held by an individual within a single corporate entity (authorized 25 for 1 or more franchises), and a total of 5% of the membership may be owned by a vehicle permittee in any individual franchise, rounded to the nearest whole number. (Schedule B-Conduct) 505. A vehicle permittee may own a limited interest in another franchisee within the City. Each franchisee shall ensure that any such ownership interest is approved by the City and that written verification of the approval of each individual organization is provided to the City. An individual member shall not be authorized to hold the position of officer or Board of Director within 2 or more franchised organizations at the same time unless the organizations are considered as part of the same corporate entity. (Schedule B-Conduct) 506. Each franchisee shall not request inspection or the decaling of any make or model of a vehicle until the City has approved the make and model for use as a taxicab. Vehicles proposed for use as taxicabs must meet the following minimum requirements: a) A vehicle’s make, model, and California Environmental Protection Agency’s Air Quality Board (CARB) rating must be approved by the City prior to submission of a taxicab vehicle permit application; b) The vehicle must be a sedan, sport utility vehicle, minivan, wheelchair accessible van or full size van designed to carry not more than 8 persons excluding the driver; c) A vehicle must conform to the fleet composition make up established by the City and air quality standards established by CARB; If the vehicle is a wheelchair accessible van it must meet all Americans with Disabilities Act of 1990 requirements, in accordance with 49 Code of Federal Regulations (CFR) Part 38, Society of Automobile Engineers (SAE) J2249 standard, and applicable Federal Motor Vehicle Safety Standards (FMVSS). Only vehicles with side-entry loading configuration will be authorized as wheelchair accessible vans. (Schedule B) Vehicles shall not be older than 4 years of age when placed into service as a taxicab; and 507. Franchisee shall ensure that any new or replacement member, approved by the City for a Taxicab Vehicle Permit, complete the processing of the application by furnishing proof of City-approved vehicle insurance, inspection of vehicle and placement of taxicab identification decals on the vehicle within 90 calendar days of City authorization, or prior to the expiration of the franchise or operating permit if expiration is less than 90 calendar days from the date of City authorization, or the authorization shall become invalid and all fees forfeited. Upon written request submitted 3 weeks prior to the invalidation date, the City may grant an extension of time for good cause. (Schedule B) 508. No taxicab in service shall be in excess of 5 years of age except that the vehicle may be used in taxicab service for 3 additional 1-year periods provided that the vehicle is inspected at renewal of 26 the sixth, seventh and eighth years by a City-approved garage. Approval of the garage must be obtained by the franchisee prior to the vehicle inspection. A wheelchair accessible taxicab vehicle may be used in taxicab service for 2 additional years (i.e. a 10th year) provided that the vehicle, including wheelchair tie downs and occupant restraint systems, is inspected at renewal by a City-approved facility. Approval of the facility must be obtained by the franchisee prior to the vehicle inspection. In all cases where a taxicab vehicle is required to have an inspection under this Rule, the vehicle must pass the inspection, and have any recommended maintenance performed, which shall be based upon standards established by vehicle manufacturer and equipment manufacturer. Proof of inspection must be submitted with renewal application. The inspection and smog certification due date shall be the same as the DMV registration date (month and day). Inspection and smog certification information dated up to 90 calendar days prior to the due date will be accepted. (Schedule B-Conduct) 509. Vehicles that do not pass an inspection must be scheduled for a re-inspection on a new date and pay the established re-inspection fee. VEHICLE APPLICATION - DRIVER/MANAGER (aka OWNER /MANAGER) 510. A driver/manager applicant shall be denied a Taxicab Vehicle Permit if he or she does not have a valid Taxicab Driver’s Permit, has less than 2 years total taxicab driving experience in the greater Los Angeles area, or less than 1 year of driving experience as a City-permitted driver. 511. A driver/manager vehicle permittee shall have a valid Taxicab Driver’s Permit. EXCEPTION: A franchisee officer who elects not to drive shall not be required to obtain a Taxicab Driver’s Permit. 512. Franchisee shall ensure that any new driver/manager applicant for a Taxicab Vehicle Permit submits an application to the City with all of the following: a) A valid Taxicab Driver’s Permit; b) A letter from franchisee confirming the applicant’s membership approval by the Board of Directors, date of approval, taxicab fleet number, previous member’s name, total memberships in the applicant’s name listed by fleet number, and a California driver’s license number for the applicant; c) A copy of the applicant’s association or co-operative test scores; d) The applicant’s DMV driving record for the last 7 years; e) A completed Taxicab Vehicle Permit application; f) The non-refundable fee established by resolution; and g) Certified driving history for the period required by these Rules. 27 VEHICLE APPLICATION - INVESTOR / SHARHOLDER 513. An investor/shareholder Member shall not drive, control or manage any taxicab in franchisee. All taxicabs owned by an investor/shareholder shall be controlled and managed completely by the franchisee, on the investor/shareholder’s behalf, pursuant to the City-approved contract, between the investor/shareholder and franchisee. The investor/shareholder shall have no control over or perform any function for a taxicab under the control of franchisee other than being the registered owner of the taxicab. 514. Franchisee shall ensure that any new investor/shareholder applicant for a Taxicab Vehicle Permit submits an application with all of the following: a) A letter from franchisee confirming the applicant’s membership approval by the Board of Directors, date of approval, taxicab fleet number, previous member’s name, total memberships in the applicant’s name listed by fleet number, and a California driver’s license number or employer identification number for the applicant; b) A completed Taxicab Vehicle Permit application; c) The non-refundable fee established by resolution; and d) For a Subchapter S corporation: Articles of Incorporation or Incorporating Agreement, proof of Subchapter S corporation status from the IRS, IRS Form 2553 listing all stockholders with the number or percentage of shares owned, and a City-approved affidavit of family relationship if more than 1 stockholder is listed. 28 SECTION 600. TAXICAB VEHICLES AND EQUIPMENT MAINTENANCE STANDARDS Assessment of Penalties and Vehicle Return to Service: For violations cited in this section requiring an Immediate Out of Service (IOS), the franchisee may correct the violation and have the vehicle inspected and returned to service prior to the deadline stated in the violation notice with City approval. Such correction of vehicle deficiency shall not preclude the assessment of Penalties against the franchisee nor shall it excuse the franchisee from attending the hearing as described in Section 700 and the SMMC. The City may cite either or both the vehicle permittee and the franchisee, as reflected in the Schedule identified for each Rule, when the vehicle permittee is not the franchisee. 601. Each franchisee and vehicle permittee shall, upon reasonable notice, make its taxicabs available to the City for vehicle inspections, including annual inspections or at any time the taxicab is in service. Cancellations by either party shall be upon a minimum of one business days’ notice, unless circumstances prevent otherwise. The City-approved regular maintenance or inspection intervals (either in days or by mileage) shall not be exceeded by more than 7 calendar days or 1000 miles past the due date for inspection, whichever is sooner. For purposes of this Rule, each vehicle is considered a separate violation. (Schedule A or Schedule B) 602. Each franchisee shall allow authorized City personnel to utilize the taxicab radio for communication with the franchisee’s dispatcher for purposes of emergencies or inspection. (Schedule B-Public Safety) 603. Each franchisee and vehicle permittee shall ensure that each taxicab carries, and has available at all times, proof of vehicle insurance or financial responsibility (See Rules 224, 421, 424, and 630). (Schedule A-Public Safety or B-Public Safety) 604. Each franchisee and vehicle permittee may display commercial advertising in or on the taxicab, which does not violate statutes involving unlawful or obscene matter, nor be detrimental (i.e., misleading or discriminatory) to the public welfare, as follows: a) Window Advertising - Sedans Only • On the inside only of the rear-most window. • Using material acceptable to the City. • A rearview mirror must be mounted on the left and right sides of taxicab. b) Window Advertising - Van Only • On the driver’s side, fixed side window only, provided that all other requirements of Rule 604a are met. • On the inside only of the rear-most window, provided that all other requirements of Rules 604a and 623 are met. c) Roof or Trunk - Mounted Advertising • Shall meet all requirements of Vehicle Code Section 25400. • Shall be inspected and approved by the City to ensure proper mounting. 29 d) Wheelcover Advertising • Vendor equipment shall be inspected and approved by the City to ensure proper mounting. • All wheelcovers on a single taxicab shall have the same or similar advertisement design or theme. (Schedule A or Schedule B) 605. Each franchisee and vehicle permittee shall decommission its taxicabs after their service life is over. All markings, signs, top light, taximeter, and equipment identifying the vehicle as the franchisee’s taxicab must be removed. The decommissioned taxicab must be inspected by the City prior to any sale or other disposition of the vehicle. (Schedule A-Conduct or Schedule B-Conduct) 606. Each vehicle that is cited for violation under a Rule that stipulates “IOS” (Immediate Out of Service) shall not be operated except as provided in Rule 109. The violation shall be corrected and the vehicle inspected and cleared by the City before the end of the next City business day following the correction of the violation. (Schedule A-Public Safety or Schedule B – Public Safety) EQUIPMENT 607. Each franchisee and vehicle permittee shall equip each taxicab with and maintain in good working order: a) A State-approved taximeter, currently certified for the specific vehicle in which it is installed and with unbroken State inspection seals affixed. All replacement meters shall be certified by a State sealer, registered with the Los Angeles County Department of Weights and Measures, and inspected by the City within 7 calendar days after the vehicle is placed into service with a new or replacement meter; (Schedule A or Schedule B) b) A top light which shall be not more than two and one-half inches high by nine inches in length; (Schedule A or Schedule B) c) A radio transmitter and receiver in good working order capable of two-way communication with a dispatcher anywhere in the service area over the franchisee’s assigned frequency; (Schedule A or Schedule B) d) An approved rate card plainly visible and legible to all passengers in the front and back seats of the vehicle; (Schedule A–Conduct or Schedule B-Conduct) e) An approved card displaying the credit card requirement (see Rule 613), a complaint telephone number, a lost and found telephone number, and certain sections of the Rules as determined by the Department; (Schedule A–Conduct or Schedule B-Conduct) f) An approved safety shield. EXCEPTION: This requirement shall not apply to wheelchair- accessible vans or to specific taxicabs granted exemptions by the City. An exemption from this Rule which is based on the medical condition of a driver for a specific vehicle may be authorized by the City. Any vehicle granted an exemption from the safety shield requirement must install and maintain in working order a security camera system approved by the City; and (Schedule A- Conduct or Schedule B-Conduct) g) A Global Positioning System (GPS), which must be operational at all times and connected to the franchisee’s central dispatch location. (Schedule B – Public Safety) 30 608. Each franchisee and vehicle permittee shall maintain equipment that will extinguish both front and rear lights on the right side of the taxicab to signal when a robbery is in progress or a felon suspect is in the taxicab. (Schedule A-Public Safety or Schedule B – Public Safety) 609. Each franchisee and vehicle permittee shall maintain a device installed in each taxicab to permit the opening of the trunk lid from the inside of the trunk. (Schedule A-Public Safety or Schedule B–Public Safety) 610. Each franchisee and vehicle permittee shall maintain in a conspicuous place in each taxicab a permanently affixed Taxicab Driver’s Permit card holder. (Schedule A or Schedule B) 611. Each franchisee and vehicle permittee shall maintain a wheelcover on each wheel which is in good condition and of a similar design. (Schedule A or Schedule B) 612. Each franchisee and vehicle permittee shall maintain in every taxicab a sufficient number of seat belts, properly bolted in place, at least 3 sets in the rear seat and 2 sets in the front seat, to accommodate each passenger and the driver, and which are clearly visible and easily usable. (Schedule A–Public Safety or Schedule B-Public Safety) 613. Each franchisee shall ensure that each taxicab is capable of digitally transmitting credit/debit card authorization and payment information as relayed through the taximeter or a mobile data device operating in concert with the taximeter. A sign shall be placed in each taxicab, as approved by the City, indicating minimum credit card charge requirements and requesting the passenger to notify the driver of intended credit/debit card use for pre-authorization purposes. Although signage requirements may differ between franchisees, each franchisee shall place the same sign in each of its taxicabs. (Schedule A–Conduct) 614. Each franchisee and vehicle permittee shall maintain a taximeter capable of printing a receipt for all trips provided. (Schedule A or Schedule B) SIGNAGE 615. Each franchisee shall ensure that the rate and customer service comment sign, as approved by the City, is placed in each vehicle on either the safety shield directly behind the driver, or, in the case of a vehicle exempt from the safety shield requirement, on the inside of a window readily visible to passengers. Rate and comment signs must include name, address, and telephone number of franchisee and the complaint number to the City of Santa Monica. Customer service signs shall be required unless otherwise authorized by the City. (Schedule B) 616. Each franchisee shall display in each taxicab, unless otherwise directed by the City, an interior sign clearly visible to passengers that states: “Driver is required to provide passenger with a receipt printed by the taximeter for each trip.” (Schedule B) 31 617. Each franchisee shall use signs “All passengers ride for the price of one” displayed on all taxicabs in its fleet. The interior sign shall be legible to all passengers in the front and rears seats of the vehicle and shall be included in the rate card. The exterior signs shall be on both sides of the taxicab and legible from a distance of 10 feet. (Schedule B) 618. Each franchisee shall post signs inside and outside each taxicab that state, “Only $## Change”. The interior “Only $## Change” sign shall be legible to all passengers in the front and rear seats of the vehicle and shall be included in the rate card. The exterior “Only $## Change” signs shall be placed on both sides of the taxicab and legible from a distance of at least 10 feet. The franchisee may choose $5, $10, or $20 as the amount that is posted. (Schedule B) 619. Each franchisee may post an optional “Leased to Driver” sign inside the taxicab, provided that it does not obstruct the driver’s vision and the sign is placed near the Taxicab Driver’s Permit card holder and is no larger than 3 1/2 inches by 5 1/2 inches, with lettering no larger than 3/4 inches by 4 1/2 inches. Such sign is inappropriate when the taxicab is driven by the vehicle permittee. (Schedule B) 620. Each franchisee shall display in the Taxicab Driver’s Permit card holder, when not containing the Taxicab Driver’s Permit, a statement in clear view of the passengers which states: (Schedule B) 621. Each franchisee shall maintain the franchisee’s name on both sides of a taxicab in lettering and numbering that are legible and not less than 2 and 1/4 inches in height and 5/16 of an inch wide. (Schedule B) 622. Each franchisee shall maintain the taxicab fleet vehicle number and telephone number of the taxicab franchise on both sides in lettering and numbering that are legible and not less than 2 and 1/4 inches in height and 5/16 of an inch wide. Each franchisee shall maintain the taxicab fleet vehicle number on the rear of the taxicab in positions and sizes which are legible as approved by the City. (Schedule B) 623. Each franchisee and vehicle permittee shall maintain the City’s official taxicab identification decal on the upper left section of the rear window. The decal may not be obscured by any adjacent advertising. (Schedule A or Schedule B) 624. Each franchisee and vehicle permittee shall not remove and reinstall any taxicab identification decal on the same or another vehicle. (Schedule A–Conduct or Schedule B-Conduct) NOTICE DRIVER PERMIT CARD Required to be displayed in this location at all times By Order: Santa Monica Police Department 32 625. Each franchisee and vehicle permittee shall not alter a taxicab identification decal. Decals which are worn by time or the elements shall be replaced as directed by the City. (Schedule A–Conduct or Schedule B-Conduct) 626. Each franchisee shall notify the City immediately of the removal or destruction, by other than City personnel, of any taxicab identification decal issued to the franchisee or vehicle permittee. (Schedule B) 627. Each franchisee shall post the name of company and taxicab number in raised characters and Grade 2 Braille on a permanent sign inside the rear seating area of the taxicab, with the following specifications: Text: The raised characters and Braille translation shall consist of the name of the taxicab company followed by the taxicab number. The insignia or designation emblem for a number shall be omitted in raised print, but included in the Braille translation. Finish and Contrast: Sign background and raised characters shall have a non-glare finish. Characters shall be white, light yellow, or off-white with pastel tint on a black background. Raised Characters: Raised characters shall be raised 1/32 inch minimum above their background. Characters shall be uppercase, sans serif. Characters shall not be italic, oblique, script, highly decorative, or of other unusual forms. Character width shall be 60 percent minimum and 100 percent maximum of the height of the character, with the width based on the uppercase letter “O” and the height based on the uppercase letter “I”. Character height shall be 5/8 inch minimum and 2 inches maximum. Characters shall have a stroke thickness of 10 percent minimum and 20 percent maximum of the height of the character. Characters shall be solid rather than hollow. Braille: Braille shall be Grade 2 and shall follow specifications for Braille in CBC Title 24 as follows: distance between two dots in same cell - center to center 1/10th inch (0.100); distance between dots 4, 5, 6 in one cell and dots 1, 2, 3 in following adjacent cell - center to center, 2/10th inch (0.200); and height of dot - 1/40th inch (0.025). Dots shall be rounded and solid rather than hollow. Braille shall be located flush left below raised characters, with a distance of 2 inches between base of raised characters and top of Braille cells. Installation: Sign shall be mounted on right side of armrest of rear passenger seat with raised characters and Braille facing right side of passenger, or in another location designated and approved by the City. (Schedule B) 33 VEHICLE MAINTENANCE 628. Each franchisee shall maintain every taxicab free from: a) Unsightly dirt, grime, and stains inside and out, including the trunk; b) Cracked or broken windows, headlights, taillights or interior lights; c) Missing or broken door locks, handles or window cranks; d) Torn floor covering, head liner or upholstery; e) Unusual or unsightly paint defacement and body dents; f) Projections of sheet metal or other materials inside or outside the taxicab that might cause injury or tear clothing; and g) Unauthorized signs or markings, such as bumper stickers. (Schedule B) 629. Each franchisee and vehicle permittee shall have in place and continuously keep up to date all inspection, preventative maintenance, maintenance repair, and any other vehicle service records for each taxicab, filed by taxicab, and make these records available to the City for review upon request. (Schedule A-Public Safety or Schedule B–Public Safety) 630. Each franchisee and vehicle permittee shall ensure that at all times that a taxicab is not driven when it is in an unsafe operating condition. Unsafe operating conditions include but are not limited to: bald tires; missing fuel tank caps; inoperable or inadequate windshield wipers; broken or inoperable head or tail lamps; inoperable horn; defective or inadequate brakes; missing, defective, or inoperable seat belts; or when there are more passengers than the number of seatbelts available or the taxicab capacity will safely or legally allow. Additionally, each franchisee and vehicle permittee shall ensure that at all times the lights, brakes, tires, steering, and seatbelts are working properly, that the air conditioning, heating and defrosting systems are maintained and in good working order, that the robbery light switch is in the proper position and in working order, and that evidence of financial responsibility is carried in the vehicle. Penalties are as follows: a) Unsafe Operating Condition. b) Equipment not in working order. c) Accidental or unauthorized use of robbery light. d) No evidence of financial responsibility in vehicle. e) A citation was issued for vehicle or equipment defects with due notice given to correct the deficiency but no correction was made within the time allotted and the taxicab is still in service. (See Rules 224, 421, 424, and 603) (Schedule C or Schedule D) 34 631. Each franchisee and vehicle permittee shall ensure that any problem causing the “check engine” light to be illuminated when the vehicle engine is running must be corrected within 2 business days or the vehicle may be either removed from service or taken out of service (by operator request) until repairs are made and vehicle reinstated subject to inspection. (Schedule A–Public Safety or Schedule B-Public Safety) 632. Each franchisee shall ensure that wheelchair tie downs and occupant restraint systems are maintained in accordance with manufacturer standards. (Schedule B – Public Safety) 35 SECTION 700. PROCEDURES FOR PROCESSING VIOLATIONS OF TAXICAB RULES AND REGULATIONS 701. Subject to rights of appeal as provided in this Section and the SMMC, each franchisee shall pay all monetary penalties assessed within the applicable time period. 702. Subject to Applicable Law - The hearing procedure for violations of these Rules and the applicable penalties are governed by SMMC Chapter 6.49. 703. Appeals - The procedure for appealing any suspension, revocation, or denial of a permit under these Rules is governed by SMMC Chapter 6.16. 1 SCHEDULE I PENALTIES FOR VIOLATION OF TAXICAB RULES Every franchisee, vehicle permittee, and driver who does not comply fully with any one or more of the Department’s rules and regulations, with the terms and conditions of a taxicab franchise or the Santa Monica Municipal Code shall be guilty of a violation and subject to the penalty schedule as shown in the brackets at the end of each rule. Each day that a violation continues shall constitute a separate and distinct violation. If a penalty due date falls on a weekend or holiday, penalties are due the next City business day. Any suspension of a permit shall be recorded on the driver’s Department Permit Suspension Record and will be considered when applying Taxicab Rule 306f. A permittee must serve a suspension during a period of time in which the Taxicab Driver’s Permit has been physically turned in to the City. Penalty Points for Franchisee Monetary Penalty Increments The monetary penalty for franchisee violations shall be equal to one penalty point for each $100 increment of fine indicated in this Schedule. Penalties shall accumulate without limit. Suspension of Franchisee’s Franchise Whenever the cumulative amount of the monetary penalty assessed against any franchisee for any calendar quarter period exceeds $10,000, the franchisee’s franchise is subject to immediate suspension. LEGEND: S = Suspension R = Revocation IOS = Immediate Out of Service (Driver and/or Vehicle) at the Full Discretion of the Police Schedule I was adopted by Council Resolution Number 10641 (CCS) on December 13, 2011 2 PROGRESSIVE PENALTY SCHEDULES The following progressive penalties shall be applied when the same driver, vehicle permittee, or franchisee is guilty of a second or subsequent violation of the same rule or any combination of the rules listed for the same Progressive Penalty Schedule within any 24-month period. When IOS appears in a penalty, a driver or vehicle may be placed in an Immediate Out of Service status at the absolute discretion of the Police Officer. Penalty Schedules Penalties First Violation Penalties Second Violation Penalties Third Violation Penalties Fourth or More Violation Penalties Conduct / Public Safety Violation Driver or Vehicle Permittee Franchisee Driver or Vehicle Permittee Franchisee Driver or Vehicle Permittee Franchisee Driver or Vehicle Permittee Franchisee Driver or Vehicle Permittee Franchisee Schedule A $50 $50 $100 $100 $150 $150 $250 to $500 or Suspension IOS $500 $250 to $1000 or Suspension IOS $300 to $500 Schedule B N/A $100 N/A $200 N/A $300 N/A $500 N/A $500 to $750 IOS Schedule C $250 to $500 or Suspension IOS $500 to $1,000 $500 to $1,000 or Suspension IOS $2,500 See Penalties Conduct / Public Safety N/A N/A $1,000 to $2,500 or Revocation IOS $2,500 to $5,000 Schedule D N/A $1,000 to $5,000 IOS N/A $5,000 to $10,000 or Suspension IOS See Penalties Conduct / Public Safety N/A N/A N/A $5000 to $10,000 or Revocation IOS Schedule I was adopted by Council Resolution Number 10641 (CCS) on December 13, 2011 1 2015 Taxicab Vehicle Calculations Background The 2008 Nelson/Nygaard study recommended a range of taxicab vehicles from 210 to 310 depending on full time equivalent status. The report specifically noted that the number of vehicles authorized should be considered based on whether or not vehicles operate full time in Santa Monica or serve Santa Monica on a more as-needed part time basis when demand increases. Due to the location of Santa Monica in relation to other high demand areas in Los Angeles, licensed Los Angeles drivers are not generally near Santa Monica unless they have a specific fare that brings them to the City, such as a trip from the Airport. During very busy periods, such as New Year’s Eve or when a large event is in town such as Cirque du Soleil or GLOW, drivers who are also licensed in Los Angeles may be more present during these periods if they believe there is demand. A taxicab driver who has a Los Angeles permit is in Santa Monica less frequently than a taxicab that is only licensed in Santa Monica. Drivers with Los Angeles permits prefer to operate in areas of Los Angeles and in particular at the Airport during those days they are allowed to pick up there. Taxicab drivers with only Santa Monica permits can only pick up in Santa Monica and so are naturally serving Santa Monica full time, since they have no other options to find passengers. Drivers routinely wait in front of hotels, the Pier, and Santa Monica Place for fares. Attachment R 2 In determining the allocation, it was first necessary to estimate how many vehicles Santa Monica needed to service demand. In doing so, two factors were considered: • 24-hour leases versus 12-hour leases • Dedicated versus non-dedicated taxicab vehicles, (i.e. vehicles licensed only in Santa Monica vs. vehicles license in both Santa Monica and either Los Angeles or the Access Services program) 24-hour Leases vs. 12-hour Leases A factor that contributes to how often a taxicab is available is whether a driver has contracted with the taxicab company for a 24-hour lease or a 12-hour lease. The length of leases offered has an impact on availability because the vehicle with a 24-hour lease is not in service full time. The 24-hour lease gives one driver full control of the vehicle 24-hours per day. The driver does not turn the vehicle over to another driver at the end of a 12-hour period, as drivers with 12-hour leases must. A single driver is not able to keep a vehicle in service 24-hours a day due to legal and practical reasons1. When a taxicab has a Los Angeles permit and a 24-hour lease, the impact on availability is compounded. The following breakdown of leases offered to drivers by company in 2012 provides a breakdown of 24-hour leases vs. 12-hour leases. On any given day, a total of 300 taxicabs are available for approximately 4,660 hours, 1,340 hours less than if all vehicles were on 12-hour leases. The chart below provides data collected in 2012 that demonstrates the effects of the full time vs. part time lease arrangements. 1 By both rules taxicab drivers may not drive more than 10 hours in any given 24-hour period. 3 Company Total Taxicabs Awarded 24-hour Lease Daily Hours Available 12- hour Lease Daily Hours Available Total Daily Hours Available Bell 58 55 550 3 60 610 ITOA 58 12 120 46 920 1,040 Metro 63 37 370 26 520 890 Taxi! Taxi! 63 10 100 53 1060 1,160 Yellow 58 20 200 38 760 960 Actual Totals 300 134 1,340 166 3,320 4,660 Potential Daily Hours That Would be Available if All Vehicles had 12-hour leases: 6,000 Difference between Actual and Potential Daily Hours Available Due to 24-hour Leases: 1,340 Note: Although this factor was included in determining the number of vehicles needed to service Santa Monica, taxicab companies will continue to have full discretion in determining how they will distribute 24-hour vs. 12-hours leases among the vehicles that are authorized. Dedicated vs. Non-Dedicated Taxicab Vehicles Dedicated vs. non-dedicated taxicab vehicles takes into account the current number of vehicles that companies have that are licensed only in Santa Monica versus the number of vehicles that are licensed in both Santa Monica and Los Angeles or in the case of Metro Cab vehicles that also provide Access Services2. 2 Access Services, a local public entity, is the Los Angeles County Consolidated Transportation Services Agency and administers the Los Angeles County Coordinated Paratransit Plan (“Plan”) on behalf of the County’s 44 public fixed route operators (i.e., bus and rail). Access facilitates the provision of complementary ADA paratransit services to certain persons with disabilities as required by 42 U.S.C. §12143 under the name “Access Paratransit.” Paratransit is an alternative mode of flexible passenger transportation that does not follow fixed routes or schedules. Typically, vans or mini-buses are used to provide paratransit service, but also shared taxis and jitneys are important providers as a form of transportation. 4 The 2008 Nelson/Nygaard study recommended between 210 and 310 taxis for Santa Monica. The lower fleet size assumed all taxis operated exclusively in Santa Monica, while the higher fleet size assumed that the number of jointly-permitted cabs (with Los Angeles) would spend one third of their time in Santa Monica. However, when the terms and conditions were written, no specific requirements were included to address how much time a specific taxicab that was also licensed in Los Angeles would have to devote to the Santa Monica market, nor how many taxicabs must be jointly-permitted vs. Santa Monica- permitted only. Los Angeles’ 469 square mile area, as opposed to Santa Monica’s 8.3 square mile area, provides more opportunities for drivers to find fares, including popular areas such as Hollywood, City Walk, the Grove, downtown Los Angeles, and Los Angeles International Airport (LAX), where drivers are able to charge a $4.00 surcharge. The 2008 Nelson/\Nygaard study noted that drivers who held Santa Monica permits but did not hold Los Angeles permits believed it was unfair that Los Angeles companies and drivers were able to both pick up and drop off passengers in Santa Monica while they were within the City limits, allowing them to earn additional revenue; while drivers that were licensed in Santa Monica, but not in Los Angeles could not do the same after dropping a passenger off at a Los Angeles location, since the driver is required to drive back to Santa Monica to continue working. Comments from drivers recently anecdotally show that this sentiment is true still. Drivers have also submitted petitions in the past essentially making this point as well as arguing for fewer taxicabs. The following table provides the breakdown of Santa Monica taxicabs that were also licensed in Los Angeles from 2012 (which is used to help illustrate the effects of the dual leases). 5 2012 Company SM Taxicabs Awarded SM Dedicated Vehicles (aka Full Time) Shared Vehicles (aka Park Time) Percent Shared Bell 58 18 40 69% ITOA 58 58 0 0% Metro 63 63 0 0% Taxi! Taxi! 63 63 0 0% Yellow 58 0 58 100% Total 300 202 98 33% Reporting from 2012 shows that Yellow Cab, which at the time had 100% of its vehicles licensed in Los Angeles, responded to orders for taxicab service within 15 minutes 54.6% of the time and has a high no-load rate of 34%. By comparison, this same company responded to calls within 15 minutes for its three Los Angeles service areas between 81.35% to 94.83% of the time. Due to the response times reported in 2012, Yellow Cab began incrementally converting dual licensed taxicabs to Santa Monica dedicated taxicabs. The following table provides more recent reporting on the number of vehicles that are dedicated to Santa Monica versus the number that are not, by company. 6 2015 Company SM Taxicabs Awarded SM Dedicated Vehicles (aka Full Time) Shared Vehicles (aka Park Time) Percent Shared Bell 58 12 46 79% ITOA 58 47 11 19% Metro 63 43 20 32% Taxi! Taxi! 63 63 0 0% Yellow 58 43 15 26% Total 300 208 92 31% Calculating Vehicles Needed to Serve Santa Monica To determine the number of vehicles needed to serve Santa Monica, the following steps were taken: 1. The two factors were used first to determine the 182 number of full time equivalent taxicab vehicles needed for citywide. 2. The total number of 182 taxicabs was then calculated against the market share that each taxicab company held to determine the allocation of those vehicles between each company. 3. Based on the cumulative information available from the taxicab companies themselves and existing facts, the full time equivalency number for taxicab vehicles were assigned by full time and part time vehicles to obtain the total number of vehicles proposed to be authorized. Below are additional details regarding these calculations. 7 The following chart multiplies the current number of vehicles authorized by the 12-hour Lease Factor (which is the full time equivalency percentage of 24-hour lease and 12-hour leases) to come up with an adjusted vehicle number. This number is then multiplied by the Santa Monica dedicated vehicles operating factor (which is the percent of Santa Monica dedicated vehicles) to obtain the number of vehicles required to service Santa Monica. Calculating Vehicles Needed to Serve Santa Monica Company Current Authorized Vehicles 12-hour Lease Factor* Vehicles Adjusted Based on Leases SM Dedicated Vehicles Operating Factor** Adjusted Vehicles Required Bell Cab 58 53% 31 21% 6 ITOA 58 90% 52 81% 42 Metro Cab 63 71% 45 90% 40 Taxi! Taxi! 63 92% 58 100% 58 Yellow Cab 58 83% 48 74% 36 Totals 300 233 182 *Based on the number of 24-hour vs. 12-hour leases as reported by each company. **Based on the current number of vehicles licensed only Santa Monica vs. vehicles licensed in both Santa Monica and either Los Angeles or Access Services. Vehicle Allocation by Company Based on the previous exercise, the adjusted number of Full Time Equivalency (FTE) vehicles required to service Santa Monica citywide is calculated to be 182. For the purpose of this discussion, FTE is the amount of time a vehicle operates in Santa Monica as compared to a full time basis. FTE distinguishes between vehicles that are spending 100% of their time serving Santa Monica and those that are licensed in both Santa Monica as well as Los Angeles, thereby serving a much broader market. These vehicles are present in Santa Monica far less than vehicles that are only permitted by Santa Monica 8 but would be authorized to operate in Santa Monica during peak periods. For example if a taxicab company is authorized to operate 100 FTE vehicles, the taxicab company could be issued 50 full time vehicle permits and 100 part time vehicle permits for a total of 100 FTE Vehicles. The formula would be: 50 F/T vehicles + (100 P/T vehicles x 50%) = 100 Full Time Equivalent Vehicles The use of 50% as the part time factor is used for convenience since it is difficult to determine how much time a vehicle that is permitted in both Santa Monica and Los Angeles actually operates in Santa Monica. Additionally, many Los Angeles permitted vehicles are also permitted in other jurisdictions, such as Beverly Hills, West Hollywood, Culver City, and Los Angeles County. Staff is recommending that companies continue to have the discretion to offer 12 hour or 24 hour leases in any mix it chooses. The following chart takes the total 182 FTE vehicles determined to be needed citywide and allocates the vehicles to each company based on 2014 market share3. For example, Metro Cab had 23% of market share, so 23% of the 182 vehicles are proposed to be allocated to Metro Cab. Company 2014 Total Trips Completed 2014 Percent of All Trips Completed Total FTE Vehicles Proposed Bell Cab 47,849 9% 16 ITOA 112,878 21% 38 Metro Cab 127,419 23% 42 Taxi! Taxi! 186,729 34% 62 Yellow Cab 72,658 13% 24 Totals 547,533 100.0% 182 3 Market share is based on the total number of taxicab trips as reported by the taxicab companies. 9 A simple test of the allocation of the 182 vehicles was completed to determine if the proposed distribution was equitable, a comparison of average trips per day per vehicle, based on 2014 trips was used. In the chart below average trips per day per vehicle was uneven. With the reduction and reallocation, the average trips per day show a more equal distribution when applying the volume of trips by company in calendar year 2014. Company Current Authorized Vehicles Average Trips per Day per Vehicle* Proposed FTE Vehicles Average Trips per Day per Vehicle* Bell Cab 58 2 16 8 ITOA 58 5 38 8 Metro Cab 63 6 42 8 Taxi! Taxi! 63 8 62 8 Yellow Cab 58 3 24 8 Totals 300 4.8 182 8 *Based on 2014 trip data provided by each company Proposed Allocation The chart below outlines the proposed allocation of vehicles. Column E represents the actual number of vehicles that would be permitted to operate. Vehicle franchise fees for part time vehicles are proposed to be lowered to $550 from the current fee of $1,100. Company (A) Proposed Full Time Equivalent Vehicles (B) Proposed Full Time Vehicle Permits (C) Proposed Part Time Vehicle Permits* (D) Actual Proposed Total Vehicles Permitted (E) Bell Cab 16 2 28 30 ITOA 38 32 12 44 Metro Cab 42 32 20 52 Taxi! Taxi! 62 62 0 62 Yellow Cab 24 2 44 46 Totals 182 130 104 234 Ci t y  of  Sa n t a  Mo n i c a   Ci t y  Co u n c i l   No v e m b e r  10 ,  20 1 5 • Ta x i c a b  Co a l i t i o n  Be l l ,  IT O A ,  Me t r o ,  Ye l l o w • Co r r e c t i o n  ‐ Ta x i c a b  Co a l i t i o n  Co m p r o m i s e   Pr o p o s a l  Ye l l o w  Ca b  an d  Ta x i !  Ta x i !  In v e r t e d Ho u s e k e e p i n g • Ot h e r  No n ‐Ta x i c a b  Ch a n g e s  Pr o p o s e d   • Ta x i c a b  Pr o g r a m  Ba c k g r o u n d • Co u n c i l  Op t i o n s • Ke y  Ta x i c a b  Ch a n g e s   Pr o p o s e d • Fu l l  Ti m e  / Pa r t  Ti m e  Ve h i c l e s • Ve h i c l e   Pr o p o s a l s  Ho w  Ma n y  Sh o u l d  be  Au t h o r i z e d ?  Ho w  Sh o u l d  Th e s e  be  Al l o c a t e d ? Ag e n d a • In ‐Ci t y  Ve h i c l e s   fo r  Hi r e • Pe d i c a b s Ot h e r  Ch a n g e s  Pr o p o s e d • Ma r c h  1,  20 1 1  – C u r r e n t  Sy s t e m  Im p l e m e n t e d • Ma r c h  8,  20 1 2  ‐ Ub e r  la u n c h e s  in  LA • Se p t e m b e r  23 ,  20 1 3  – C P U C  Im p l e m e n t s  Ru l e s   Go v e r n i n g  TN C s • Se p t e m b e r  17 ,  20 1 4  –A B 2 2 9 3  is  Ad o p t e d   Im p o s i n g  In s u r a n c e  Re q u i r e m e n t s  an d   So l i d i f y i n g  th e  St a t e s  Ju r i s d i c t i o n   ov e r  TN C s • De c e m b e r  31 ,  20 1 5  –F r a n c h i s e  Ag r e e m e n t s   Ex p i r e Ba c k g r o u n d • Ad o p t  St a f f   Re c o m m e n d a t i o n • Ad o p t  An y  of  th e  Al t e r n a t i v e s • Ex t e n d  An y  or  Al l  Fr a n c h i s e s   • Fu l l  Di s c r e t i o n  Nu m b e r  an d   Di s t r i b u t i o n   of   Co m p a n i e s Co u n c i l  Op t i o n s • Re n e w a l  of  al l   Fi v e   Fr a n c h i s e e s   fo r  2  Ye a r s  Ta x i c a b  Co m p a n i e s  Re q u e s t i n g  a  Mi n i m u m  of  3  Ye a r s  Ma r k e t  Vo l a t i l i t y  Ex p o  Ar r i v a l • Pr i c e   Fl e x i b i l i t y  Pr o m o t i o n a l  Di s c o u n t s    Di s c o u n t e d  Fl a t  ra t e s  Se t  An y  Ra t e  wi t h  Pr i v a t e  Co m p a n i e s  fo r  Ev e n t s ,  Sh u t t l e • Ve h i c l e   Fl e x i b i l i t y  Ta k e  Ve h i c l e s  Ou t  of  Se r v i c e  as  Ne e d e d ,  Re m o v e  In s u r a n c e • Pr o r a t e d   24  Mo n t h  Dr i v e r  Pe r m i t Ke y  Ta x i c a b  Ch a n g e s  Pr o p o s e d • Of f i c i a l l y  Al l o w  Co m p a n i e s  to  Us e  Ap p s  In c l u d i n g  an y  LA D O T  Ap p  Pr o g r a m  Cr e a t e d  Po t e n t i a l  “R e c i p r o c i t y ” • Pr o h i b i t  No n ‐Pa s s e n g e r   De l i v e r  Se r v i c e s • Ex p a n d  De f i n i t i o n  of  “F u l l  Us e ”   to  Al l o w  fo r  Ca r  Po o l i n g   Se r v i c e s • Tr a n s f e r  Ru l e   Ma k i n g  Au t h o r i t y  to  PC D   fr o m  Po l i c e • Im p l e m e n t   Fu l l  Ti m e   an d  Pa r t  Ti m e  Ve h i c l e   Pe r m i t s Ke y  Ta x i c a b  Ch a n g e s  Pr o p o s e d • Fu l l  Ti m e  De d i c a t e d  to  Sa n t a  Mo n i c a  Op e r a t e  in  Sa n t a  Mo n i c a  Fu l l  Ti m e • Pa r t  Ti m e  Ve h i c l e  an d  Dr i v e r  al s o  Li c e n s e d  in  LA  or  wi t h  Ac c e s s   Se r v i c e s  Do e s  no t  Op e r a t e  in  Sa n t a  Mo n i c a  Ex c l u s i v e l y  Ca l c u l a t e d  at  50 % o No t  pr e c i s e o Ve h i c l e s  Us u a l l y  No t  Av a i l a b l e  Ev e n  50 %  of  th e  Ti m e o Re d u c e d  Fr a n c h i s e  Fe e  $5 5 0  (5 0 %  of  Fu l l  Ti m e ) Fu l l  Ti m e  / Pa r t  Ti m e  Ve h i c l e s • Re d u c e d  Tr i p s  ar e  No t  Du e  to  Re c e s s i o n a r y   Co n d i t i o n s • Re c o m m e n d a t i o n s  ar e  In c r e m e n t a l • Dr o p  in  nu m b e r  of  pe r m i t t e d  dr i v e r s  30 0  Ve h i c l e s  / 30 7  Dr i v e r s  Me t r o  Ca b  ha s  63  Ve h i c l e s  an d  47  Pe r m i t t e d  Dr i v e r s • Dr o p  in  th e  nu m b e r  of  dr i v e r  ap p l i c a n t s  20 1 4  (t h r o u g h  Oc t )  –2 2 4  20 1 5  (t h r o u g h  Oc t )  ‐ 11 0 Ad d i t i o n a l  Fa c t o r s • Ve h i c l e  Al l o c a t i o n  Ke y  Ar e a  of  Di s a g r e e m e n t  No  Ma g i c  Nu m b e r • Co m p a n i e s  ar e  De p e n d e n t  on  Dr i v e r  Re g u l a t i o n s • Dr i v e r  Wa g e s  an d  Wo r k i n g  Co n d i t i o n s  Ta x i c a b  Co m p a n y  Re v e n u e s  fr o m  Le a s e s  no t  Fa r e s  Pr i o r i t i e s  No t  Al w a y s  Fu l l y  Al i g n e d  Dr i v e r s  Ar e  In d e p e n d e n t  Co n t r a c t o r s  – S e p a r a t e  En t i t i e s ,  No  Statutory   Be n e f i t s • Tr a n s p o r t a t i o n  Ne t w o r k  Co m p a n i e s  (T N C s )  Di s r u p t i v e  In n o v a t i v e  We l l  Fu n d e d • Pe r c e p t i o n  LA   Li c e n s e d  Ca b s  ar e  Un f a i r  Co m p e t i t i o n Ch a l l e n g e s St a f f  Pr o p o s a l Co m p a n y Cu r r e n t Au t h o r i z e d Ve h i c l e s Pr o p o s e d T o t a l Au t h o r i z e d Ve h i c l e s Ch a n g e i n To t a l Ve h i c l e s Percent Change in Total Vehicles Be l l C a b 58 30 -2 8 -48% IT O A 5 8 4 4 - 1 4 - 2 4 % Me t r o C a b 63 52 -1 1 -17% Ta x i ! T a x i ! 6 3 6 2 - 1 - 2 % Ye l l o w C a b 58 46 -1 2 -21% 30 0 2 3 4 ‐66  ‐22%  De t e r m i n i n g  Ve h i c l e s  Ne e d e d Co m p a n y Cu r r e n t   Au t h o r i z e d   Ve h i c l e s Pe r c e n t   FT E   Le a s e s * FT E   Op e r a t i n g SM   De d i c a t e d   Op e r a t i n g Vehicles  Required Be l l  Ca b 5 8 5 3 % 3 1 2 1 % 6 IT O A 5 8 9 0 % 5 2 8 1 % 4 2 Me t r o  Ca b 6 3 7 1 % 4 5 9 0 % 4 0 Ta x i !  Ta x i ! 6 3 9 2 % 5 8 1 0 0 % 5 8 Ye l l o w  Ca b 5 8 8 3 % 4 8 7 4 % 3 6 30 0 1 8 2 De t e r m i n i n g  Ve h i c l e s  Ne e d e d *B a s e d  on  FT / P T  Le a s e s Co m p a n y Cu r r e n t   Au t h o r i z e d   Ve h i c l e s Pe r c e n t   FT E   Le a s e s * FT E   Op e r a t i n g SM   De d i c a t e d   Op e r a t i n g Vehicles  Required Be l l  Ca b 5 8 5 3 % 3 1 2 1 % 6 IT O A 5 8 9 0 % 5 2 8 1 % 4 2 Me t r o  Ca b 6 3 7 1 % 4 5 9 0 % 4 0 Ta x i !  Ta x i ! 6 3 9 2 % 5 8 1 0 0 % 5 8 Ye l l o w  Ca b 5 8 8 3 % 4 8 7 4 % 3 6 30 0 1 8 2 De t e r m i n i n g  Ve h i c l e s  Ne e d e d *B a s e d  on  FT / P T  Le a s e s Co m p a n y Cu r r e n t   Au t h o r i z e d   Ve h i c l e s Pe r c e n t   FT E   Le a s e s * FT E   Op e r a t i n g SM   De d i c a t e d   Op e r a t i n g Vehicles  Required Be l l  Ca b 5 8 5 3 % 3 1 2 1 % 6 IT O A 5 8 9 0 % 5 2 8 1 % 4 2 Me t r o  Ca b 6 3 7 1 % 4 5 9 0 % 4 0 Ta x i !  Ta x i ! 6 3 9 2 % 5 8 1 0 0 % 5 8 Ye l l o w  Ca b 5 8 8 3 % 4 8 7 4 % 3 6 30 0 1 8 2 De t e r m i n i n g  Ve h i c l e s  Ne e d e d *B a s e d  on  FT / P T  Le a s e s Co m p a n y Cu r r e n t   Au t h o r i z e d   Ve h i c l e s Pe r c e n t   FT E   Le a s e s * FT E   Op e r a t i n g SM   De d i c a t e d   Op e r a t i n g Vehicles  Required Be l l  Ca b 5 8 5 3 % 3 1 2 1 % 6 IT O A 5 8 9 0 % 5 2 8 1 % 4 2 Me t r o  Ca b 6 3 7 1 % 4 5 9 0 % 4 0 Ta x i !  Ta x i ! 6 3 9 2 % 5 8 1 0 0 % 5 8 Ye l l o w  Ca b 5 8 8 3 % 4 8 7 4 % 3 6 30 0 1 8 2 De t e r m i n i n g  Ve h i c l e s  Ne e d e d *B a s e d  on  FT / P T  Le a s e s Co m p a n y Cu r r e n t   Au t h o r i z e d   Ve h i c l e s Pe r c e n t   FT E   Le a s e s * FT E   Op e r a t i n g SM   De d i c a t e d   Op e r a t i n g Vehicles  Required Be l l  Ca b 5 8 5 3 % 3 1 2 1 % 6 IT O A 5 8 9 0 % 5 2 8 1 % 4 2 Me t r o  Ca b 6 3 7 1 % 4 5 9 0 % 4 0 Ta x i !  Ta x i ! 6 3 9 2 % 5 8 1 0 0 % 5 8 Ye l l o w  Ca b 5 8 8 3 % 4 8 7 4 % 3 6 30 0 1 8 2 St a f f  ‐ 20 1 5  Pr o p o s a l   18 2  FT E  Ve h i c l e s   Ne l s o n / N y g a a r d  ‐ 20 0 8  St u d y  Re c o m m e n d a t i o n 21 0  FT E  Ve h i c l e s Co m p a n y Ve h i c l e s Re q u i r e d 20 1 4  To t a l  Tr i p s   Co m p l e t e d 20 1 4  Pe r c e n t  of  Al l   Tr i p s  Co m p l e t e d FTE  Allocation Be l l  Ca b 18 2 47 , 8 4 9 9 % 1 6 IT O A 1 1 2 , 8 7 8 2 1 % 3 8 Me t r o  Ca b 1 2 7 , 4 1 9 2 3 % 4 2 Ta x i !  Ta x i ! 1 8 6 , 7 2 9 3 4 % 6 2 Ye l l o w  Ca b 7 2 , 6 5 8 1 3 % 2 4 182 Al l o c a t i n g  Ve h i c l e s  by  Ma r k e t  Sh a r e St a f f  Pr o p o s a l Co m p a n y   Pr o p o s e d  Fu l l   Ti m e   Eq u i v a l e n t   Ve h i c l e s     Pr o p o s e d  Fu l l   Ti m e  Ve h i c l e   Pe r m i t s   Pr o p o s e d  Pa r t   Ti m e  Ve h i c l e   Pe r m i t s   Actual   Pr o p o s e d  Total  Vehicles  Permitted   Be l l  Ca b   16     2   28   30   IT O A   38     32   12   44   Me t r o  Ca b   42     32   20   52   Ta x i !  Ta x i !   62     62   0   62   Ye l l o w  Ca b   24     2   44   46   To t a l s   18 2     13 0   10 4   234   Ta x i !  Ta x i !  Pr e f e r r e d  ‐ Pe r f o r m a n c e Co m p a n y Pr o p o s e d  Fu l l   Ti m e  Eq u i v a l e n t   Ve h i c l e s Pr o p o s e d  Fu l l   Ti m e  Ve h i c l e   Pe r m i t s Pr o p o s e d  Pa r t   Ti m e  Ve h i c l e   Pe r m i t s Actual   Pr o p o s e d  Total  Vehicles  Permitted Be l l  Ca b n / a n / a n / a 5 8 IT O A n / a n / a n / a 0 Me t r o  Ca b n / a n / a n / a 0 Ta x i !  Ta x i ! n / a n / a n / a 6 3 Ye l l o w  Ca b n / a n / a n / a 0 To t a l s n / a n / a n / a 1 2 1 Ta x i !  Ta x i !  Al t e r n a t i v e  –M a r k e t  Sh a r e Co m p a n y Pr o p o s e d F u l l Ti m e Eq u i v a l e n t Ve h i c l e s Pr o p o s e d F u l l Ti m e V e h i c l e Pe r m i t s Pr o p o s e d P a r t Ti m e V e h i c l e Pe r m i t s Actual Pr o p o s e d T o t a l Vehicles Permitted Be l l C a b n / a n / a n / a 8 IT O A n / a n / a n / a 8 Me t r o C a b n / a n / a n / a 2 6 Ta x i ! T a x i ! n / a n / a n / a 6 3 Ye l l o w C a b n / a n / a n / a 2 0 To t a l s n / a n / a n / a 125 Co a l i t i o n  Pr e f e r r e d Co m p a n y Pr o p o s e d F u l l Ti m e Eq u i v a l e n t Ve h i c l e s Pr o p o s e d F u l l Ti m e V e h i c l e Pe r m i t s Pr o p o s e d P a r t Ti m e V e h i c l e Pe r m i t s Pr o p o s e d To t a l V e h i c l e s Pe r m i t t e d Be l l C a b n / a n / a n / a 5 8 IT O A n / a n / a n / a 5 8 Me t r o C a b n / a n / a n / a 6 3 Ta x i ! T a x i ! n / a n / a n / a 6 3 Ye l l o w C a b n / a n / a n / a 5 8 To t a l s n / a n / a n / a 300 Co a l i t i o n  Co m p r o m i s e Co m p a n y Pr o p o s e d F u l l Ti m e Eq u i v a l e n t Ve h i c l e s Pr o p o s e d F u l l Ti m e V e h i c l e Pe r m i t s Pr o p o s e d P a r t Ti m e V e h i c l e Pe r m i t s Actual Pr o p o s e d T o t a l Vehicles Permitted B e l l C a b 3 3 1 5 3 5 5 0 IT O A 4 1 3 2 . 5 1 7 . 5 5 0 M e t r o C a b 4 8 3 8 2 0 5 8 Ta x i ! T a x i ! 5 8 5 8 0 5 8 Ye l l o w C a b 3 3 1 5 3 5 5 0 To t a l s 21 3 1 5 8 . 5 1 0 7 . 5 2 6 6 Ta x i !  Ta x i !   Pr e f e r r e d   12 1 St a f f  Pr o p o s a l 23 4 (1 3 0  FT  /   14 0  PT )   Coalition  Preferred  and  Current 300 Co a l i t i o n   Co m p r o m i s e   26 6 (1 5 8 . 5  FT  / 10 7 . 5  PT ) Ta x i !  Ta x i !   Al t e r n a t i v e 12 5 2   Fr a n c h i s e e s     Reference:    Resolution No. 10924   (CCS)