O2558City Council Meeting: November 28, 2017 Santa Monica, California
ORDINANCE NUMBER 2-551 (CCS)
(City Council Series)
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
SANTA MONICA AMENDING AND EXTENDING A TAXICAB FRANCHISE
GRANTED TO BELL CAB COMPANY. INC
WHEREAS, on November 23, 2010, the City Council adopted Ordinance No.
2329 (CCS) granting a taxicab franchise to Bell Cab Company, Inc. ("Bell Cab"), which
was subsequently amended by Ordinance Numbers 2339 (CCS), 2372 (CCS), 2504
(CCS), and 2531 (CCS); and
and
WHEREAS, the term of the taxicab franchise will expire on December 31, 2017;
WHEREAS, in accordance with the above recited ordinances, the Council
desires to exercise its discretion to extend the term of the taxicab franchise for an
additional one-year period; and
WHEREAS, Assembly Bill 1069, commencing in part on January 1, 2018 and in
whole on January 1, 2019, provides for substantive changes to taxicab transportation
services by moving towards a countywide system that only requires taxicab drivers and
companies to obtain a permit in the jurisdictions that they are substantially located; and
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WHEREAS, the extension of the taxicab franchise to December 31, 2018, will
coincide with the implementation of Assembly Bill 1069.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA
DOES HEREBY ORDAIN AS FOLLOWS:
SECTION 1. DEFINITIONS. Unless it is apparent from the context that it has a
different meaning, each of the following words and phrases has the meaning stated in
this Section wherever it is used in this Franchise:
(a) CITY means the City of Santa Monica, a municipal corporation duly
organized and validly existing under the laws of the State of California with the power to
carry on its business as it is now being conducted under the statutes of the State of
California and the Charter of the City;
(b) CO-OPERATIVE, ASSOCIATION or MEMBERSHIP means an
independent taxicab enterprise or organization owned and operated by its Members for
the financial benefit of its Members. Each authorized taxicab fleet slot correlates to a
share or ownership in the Co-operative, Association or Membership;
(c) COUNCIL means the City Council of the City of Santa Monica;
(d) DRIVER/MANAGER means any Member of a co-operative, association or
membership Grantee, who drives, controls, and manages taxicabs for Grantee;
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(e) FRANCHISE YEAR means the calendar year from January to December
to which the annual franchise fee is applied. May also be referred to as "Permit Year".
(f) GRANTEE means Bell Cab Company, Inc. ("Bell Cab"), a California
corporation qualified to do business in the State of California and to which this
Franchise has been granted;
(g) INVESTOR/SHAREHOLDER means any Member of a co-operative,
association or membership Grantee, who does not drive, control or manage taxicabs for
Grantee;
(h) LEASE DRIVER means a person who is an independent contractor
possessing a valid Taxicab Driver's Permit and who drives a taxicab for Grantee;
(i) MEMBER means any individual person or Subchapter S corporation, as
defined in the United States Internal Revenue Code Section 1361, who owns one or
more taxicabs or shares, but not more than the maximum number authorized by this
Ordinance, in Grantee. Only those individuals applying for Investor/Shareholder
membership status may apply as a Subchapter S corporation;
Q) STREETS means the public streets, roads, highways, freeways, lanes,
alleys, sidewalks or parkways which now exist or which may hereafter exist within the
City;
(k) TAXICAB DRIVER means any person possessing a valid Taxicab Driver's
Permit driving and in possession of a taxicab for the purpose of providing taxicab
transportation services in the City. A taxicab driver may be an employee of, a lease
driver of, or a Member of Grantee;
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(1) TAXICAB DRIVER'S PERMIT means a non -transferable authorization for
a taxicab driver to provide taxicab transportation services in the City;
(m) TAXICAB FLEET means the total number of authorized taxicabs that is
managed and controlled completely by Grantee, and not by a Member of Grantee;
(n) TAXICAB RULES means the rules and regulations established for taxicab
operations in the City;
(o) TAXICAB VEHICLE PERMIT means a non -transferable authorization for a
specific taxicab to be driven or operated within the City for the purpose of providing
taxicab transportation services, whether as owner, lessor, lessee, or otherwise;
SECTION 2. GRANT OF FRANCHISE.
(a) Nature of Grant. The franchise hereby granted by City authorizes
Grantee, subject to all the terms and conditions contained in this Ordinance, the Santa
Monica Municipal Code, the Taxicab Rules, and all other applicable local, state, and
federal law, rules and regulations pertaining to taxicab operations, to provide taxicab
transportation services within the City, including picking up persons and property by
taxicab within City boundaries, transporting such persons and property for hire over any
streets from within or to the City, and standing taxicabs at designated taxicab stands
within the City.
(b) Term of Franchise. This Franchise shall become effective on January 1,
2011, provided that Grantee has filed with the City Clerk, within 10 days after the
adoption of this Ordinance granting this Franchise, a written instrument, addressed to
Council, accepting and agreeing to comply with all the terms and conditions of this
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Franchise. Failure to timely accept this Franchise as set forth in this Section may make
this Franchise null and void. This Franchise shall expire at 11:59 P.M., PST, on
December 31, 2018, unless revoked or terminated earlier by City, or unless extended by
City in its sole and absolute discretion.
(c) Suspension of Franchise. City may, after due notice and an opportunity to.
be heard, suspend Grantee's operations under this Franchise for one or more days
pursuant to Santa Monica Municipal Code Section 6.49.050, under any of the following
grounds:
(1) Material noncompliance with any term or condition of this
Franchise, the Santa Monica Municipal Code, Taxicab Rules, or other City orders or
directives, when such noncompliance has not been cured after reasonable written
notice thereof and opportunity to cure;
(2) Grantee accumulates penalty points in a specified period of time in
an amount greater than the allowed threshold level as provided by resolution of Council
pursuant to Santa Monica Municipal Code Section 6.49.150;
(3) Grantee fails to pay any monetary penalties in accordance with the
procedures set forth in Santa Monica Municipal Code Section 6.49.150 and any
resolutions or schedules adopted thereto; or
(4) Any of the grounds set forth in Santa Monica Municipal Code
Section 6.49.050.
Any suspension of Grantee's taxicab operations may affect any extension of the
term of this Franchise and may lead to assessment of monetary penalties in addition to
or as an alternative to suspension, or recommendation for revocation of this Franchise.
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(d) Revocation and Termination of Franchise. City may, after due notice and
an opportunity to be heard, revoke and terminate Grantee's Franchise pursuant to
Santa Monica Municipal Code Section 6.49.050, under any of the following grounds:
(1) Grantee has illegally conducted any type of public transportation
operation within the City;
(2) Any term or condition of this Franchise becomes invalid or
unenforceable and Council expressly finds that such term or condition was a
consideration material to the grant of this Franchise;
(3) The public interest would be served by revocation and termination
of this Franchise; or
(4) Any of the grounds set forth in Santa Monica Municipal Code
Chapter 6.49.
(e) Cumulative Remedies, City's right to suspend, revoke or terminate this
Franchise pursuant to this Section are in addition to all other rights and remedies which
may otherwise accrue to City by reason of any failure or refusal of Grantee to perform
any obligation imposed by the terms and conditions of this Franchise.
SECTION 3. CONSTRUCTION OF FRANCHISE.
(a) Interpretation. Unless otherwise specified, the following terms govern the
interpretation and construction of this Franchise:
(1) The singular number includes the plural, and the plural number
includes the singular;
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(2) Time is of the essence of this Franchise. Grantee will not be
relieved of its obligation to promptly comply with any provision of this Franchise by any
failure of City to enforce prompt compliance with the same or any other provisions;
(3) Any right or power conferred, or duly imposed upon, any officer,
employee, or department of City is subject to transfer by operation of law to any other
officer, employee, or department of City;
(4) Grantee will have no recourse whatsoever against City for any loss,
cost, expense, or damage arising out of any provision or requirement of this Franchise
or the enforcement thereof;
(5) This Franchise does not relieve Grantee of any requirement of the
City Charter, the Santa Monica Municipal Code, or any local ordinance, rule, or
regulation, other than exceptions expressly set forth in this Franchise; and
(6) This Franchise does not constitute an exclusive grant of any right to
carry persons or property for hire within the City.
(b) Limitations upon Grantee.
(1) This Franchise does not grant or confer any privilege or exemption
upon Grantee except as otherwise specifically provided herein.
(2) This Franchise is a privilege to be held in personal trust by Grantee.
Grantee shall not sell, lease, assign, hypothecate, or otherwise transfer or dispose of
this Franchise or any interest herein directly or indirectly, by operation of law or
otherwise, without the prior written consent of City, expressed by ordinance, and then
only under such terms and conditions as may be prescribed therein. Any debt secured
with more than 50% of the Grantee's assets constitutes a hypothecation for the purpose
of this Franchise. Any attempt to do so without City's consent shall be null and void,
and any purchaser, lessee, assignee, hypothecatee or transferee shall acquire no right
or interest by reason of such attempted sale, lease, assignment, hypothecation or
transfer. Any such sale, lease, assignment, or other disposition of this Franchise shall
be evidenced by a duly and jointly executed instrument in writing addressed to Council
and filed with the City Clerk. The sale, assignment, transfer or other disposition of any
of the issued and outstanding capital stock of Grantee or of any general partner or joint
venturer or Member of Grantee, if a partnership or joint venture or membership exists,
which shall result in changing the control of Grantee, shall be construed as an
assignment of this Franchise. Control means 50% or more of the voting power of the
organization.
(c) Rights Reserved to City.
(1) There is reserved to City every right and power that is allowed or
provided by any provision of the City Charter and the Santa Monica Municipal Code, as
may be amended from time to time. Grantee, by its acceptance of this Franchise,
agrees to be bound by and to comply with any action or requirement of City in its
exercise of any such right or power.
(2) Neither the granting of this Franchise nor any of its provisions shall
constitute a waiver or bar to the exercise of any governmental right or power of City.
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SECTION 4. COMPENSATION.
(a) By its acceptance of this Franchise, Grantee agrees to pay to City all
applicable fees and payments, including the annual franchise fee, Taxicab Vehicle
Permit fee, and Taxicab Driver's Permit fee for each authorized taxicab in Grantee's
taxicab fleet.
(b) Grantee, at its sole expense, shall obtain and maintain during the term of
this Franchise all required business and professional permits, licenses and certificates.
SECTION 5. TAXICAB FLEET.
(a) Fleet Size. Grantee is authorized by this Franchise to provide taxicab
services in the City through a taxicab fleet consisting of a maximum of 43. The number
of vehicles authorized in Grantee's taxicab fleet shall be set until modified by Council.
(b) Fleet Makeup — Wheelchair Accessible Vehicles. At least 10% of the
authorized taxicab fleet vehicles, proportional to its full time and part time vehicles, must
be side -loading wheelchair accessible vehicles in compliance with the Americans with
Disabilities Act ("ADA"), in accordance with 49 Code of Federal Regulations (CFR) Part
38, Society of Automobile Engineers (SAE) J2249 standard, applicable Federal Motor
Vehicle Safety Standards (FMVSS), and Taxicab Rules. The City Manager or his or her
designee may require that Grantee increase the minimum number of wheelchair
accessible vehicles within its authorized taxicab fleet and may specify vehicle service
availability for general wheelchair accessible trips notwithstanding any existing
contractual arrangements.
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(c) Fleet Makeup — Emissions. Grantee shall provide vehicles that are at the
top of their class in terms of greenhouse gas and smog ratings as demonstrated by a
SmartWay or SmartWay Elite designation by the EPA. Vehicles approved by the City
prior to January 1, 2016, are subject to the rules in effect at the time of the approval.
(d) Grantee's taxicab fleet must be fully operational in accordance with this
Ordinance as of the effective date of this Franchise, unless otherwise authorized in
writing by the City Manager or his or her designee, in his or her sole and absolute
discretion.
(e) Continuous Operation. After Grantee shall have established taxicab
services pursuant to this Franchise, Grantee must ensure that, except for necessary
repairs, all its taxicabs are available for service at all times. Grantee may, with advance
notice to the City, suspend the services of a taxicab, including the removal of that
vehicle from its insurance policy, only during the period of time that the vehicle will be
suspended from service. Grantee must provide written notice to the City no less than 5
business days prior to the requested date that suspension of service would begin for
each vehicle that will be suspended from service, and include the end date for each
such suspension. An updated copy of the proof of insurance must be submitted to the
City within 5 business days following the suspension, and within 2 business days
following the reinstatement of any vehicle under this provision. The City must be
notified of any changes to the dates a vehicle will be suspended from service 5
business days prior to any such changes. Grantee's failure to comply with these
provisions shall constitute a material breach of contract under which the City may
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immediately suspend or revoke and terminate this Franchise. Monetary penalties may
also be assessed.
(f) Request for Reduction in Taxicab Fleet. Whenever Grantee may file a
written application with the City Clerk alleging that the public convenience and necessity
no longer requires Grantee to furnish taxicab services with the number of vehicles
authorized under this Franchise, Council will take evidence at a public hearing upon that
question and make a finding with respect thereto. Notice of such hearing will be given
for a period of at least 15 days prior thereto by posting such notice in each of Grantee's
taxicabs; such notices, in a form satisfactory to City, are to be posted by Grantee. If
Council finds after the public hearing that the public convenience and necessity no
longer requires Grantee to furnish taxicab services with the number of vehicles
authorized under this Franchise, Council may authorize suspension or abandonment of
such service upon such reasonable terms and conditions as may be prescribed therein.
SECTION 6. OPERATIONS AND SERVICE - GENERAL.
(a) Compliance with Laws. All vehicles, equipment and appurtenances used
under this Franchise shall be operated and maintained in accordance with applicable
local, state and federal laws, rules and regulations. Grantee is responsible for the
compliance of its Members and drivers, whether employees, lease drivers, or otherwise,
with all such laws, ordinances, rules and regulations.
(1) The number of taxicabs, the manner and time of taxicab operations,
the transportation service provided, and the rates or fares charged, shall at all times
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conform to such rules and regulations as may from time to time be fixed or prescribed
by the City.
(b) Supervision. Grantee shall provide 24-hour road and office supervision.
(c) Discount Reimbursement. Grantee shall reimburse its drivers the amount
of the discount on taxicab fares required to be provided to seniors and passengers with
disabilities, as set by resolution of Council.
(d) Complaint Resolution Procedure. Grantee shall establish a procedure,
subject to City approval, for the review and resolution of complaints from the public and
violations of company rules and Taxicab Rules by Grantee's officers, Members,
employees, and drivers. Grantee shall maintain a monthly summary of the number of
public complaints received.
(e) Management Personnel Information. Grantee shall provide to City, and
keep current, a list of the following:
(1) The Board of Directors and officers;
(2) All Members, by class of membership and the number of shares
held by each Member;
(3) All management and administrative personnel and their job titles;
(4) All lease and employee drivers.
(f) Management Personnel. Grantee shall have full-time management,
subject to City approval, which approval shall not be unreasonably withheld, to direct
activities of the organization. City may review management credentials and background
experience of management personnel, including a criminal history and fingerprint check.
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Responsibilities include, but are not limited to, establishing, maintaining and reporting
the taxicab operations and records; collecting and paying applicable fees; conducting
day to day activities, including but not limited to managing and operating the taxicab
fleet; representing Grantee in disputes and discussions between regulatory agencies
and Grantee, its drivers and Members; and adhering to Grantee's
Management/Business Plan. Management is not precluded from membership or
ownership in Grantee.
(g) Grantee shall conduct itself in a professional manner at all times and
resolve all disputes with other franchisees, the business community, and the general
public, with a goal of maintaining a favorable public image for the taxicab industry and
the City.
(h) Management/Business Plan ("Plan"). Grantee shall provide to the City an
updated management plan annually on April 20th of each year, with a summary of all
changes. The Plan shall establish Grantee's approach and methods to be used in
meeting the requirements of this Franchise, the Santa Monica Municipal Code, the
Taxicab Rules, and City, state and federal law, rules and regulations. The Plan will be
used as the basis for evaluating Grantee's capability to provide taxicab services in
accordance with the service demands of the public and City standards. Any specific
sub -items and components under each Plan category will be supplied by City, as may
be amended from time to time. Minimum categories to be addressed in the Plan include:
(1) Grantee Organizational Structure and Procedures;
(2) Management/Administrative Structure and Procedures;
(3) Financial Status and Related Information;
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(4) Dispatch, Hailing, and Communications - Description of Facilities,
Personnel and Technology;
(5) Taxicab rate programs, including flat, promotional or seasonal
programs, and event and corporate programs. Grantee must provide the City
with advance notice of any changes to taxicab rate programs;
(6) Operating Location(s), Storage/Parking of Vehicles, Maintenance
and Inspection - Description of Facilities and. Personnel;
(7) Programs and Activities for Driver Training, Testing, Supervision
and Social Benefits;
(8) Vehicle Maintenance and Inspection;
(9) Procedures for Maintaining Service Levels, Programs for
Addressing Service Deficiencies;
(10) Service/Operation Procedures for Discipline, Driver Evaluation,
Complaint Processing and Accident/Safety Control;
(11) Special Programs, Agreements and Services;
(12) Record Keeping; and
(13) Grantee's Plan Evaluation & Response to Changes or Additions.
(i) Grantee shall comply with its Plan at all times. City may review Grantee's
adherence to the Plan at any time as deemed necessary by City. Grantee shall
reimburse overcharges to its customers.
Q) Passenger Property. Grantee, and its officers, Members, employees, and
drivers, may not charge a customer to return his or her property and must at a minimum
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make the property available for the customer to retrieve his or her property from the
Grantee's main office location.
(k) Trip Data. Grantee shall maintain trip data in accordance with the Taxicab
Rules and this Franchise.
SECTION 7. OPERATIONS AND SERVICE - TAXICABS.
(a) Taxicab Vehicle Permits. Grantee is responsible for paying the annual
taxicab vehicle permit fee for all taxicabs in its fleet, in accordance with the fee specified
by resolution of Council, as of the effective date of this Franchise. Taxicab vehicle
permits expire each December 31st thereafter, and Grantee is responsible for paying
the annual taxicab vehicle permit fees and obtaining annual taxicab vehicle permits for
all taxicabs in its fleet in accordance with Santa Monica. Municipal Code Section
6.49.040(1)(2).
(b) Taxicab Operations. All taxicabs used by Grantee within the City must be
operated in accordance with, and Grantee shall not permit any taxicab to be driven
which is in violation of, this Franchise, the.Santa Monica Municipal Code, the California
Vehicle Code, Taxicab Rules, and any other applicable law or regulation.
(c) Registration and Acquisition of Vehicles. All taxicabs operated under this
Franchise must be registered to either Grantee or a Member of Grantee. Taxicabs must
either be owned by Grantee, 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 Grantee 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.
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Grantee or Member shall submit to City, upon request, the method utilized for vehicle
acquisition. Members may sell or transfer a share or taxicab under these same
provisions.
(d) General Vehicle Maintenance and Repairs. Grantee shall, at its sole
expense, monitor and be responsible for all maintenance, repair, and replacement of
Grantee's and any driver/manager Member's managed taxicabs. Preventive
maintenance must be performed at least in accordance with manufacture
recommendations for each taxicab or by an Automotive Repair Dealer (ARD) licensed
by the California Bureau of Automotive Repair. Grantee 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. A copy
of maintenance inspection reports, including any repair documentation, shall be
maintained by Grantee. Vehicles must be kept clean and in good repair as defined in
the Taxicab Rules.
(e) Age of Vehicles. No taxicab fleet vehicle authorized by this Franchise
shall be in excess of the years of age set forth in the Taxicab Rules unless otherwise
authorized in writing by City in its sole and absolute discretion.
(f) Advertising. Grantee may display commercial advertising in or on its
taxicabs, provided that any such advertisement is in compliance with all applicable local,
state, and federal law related to advertising.
(g) Off -Street Parking Facilities. Grantee shall provide garaging or other off-
street parking facilities within one-half mile of its main operating location(s), or as
specified by the City, where Grantee's taxicabs are to be parked when not in service or
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when not being repaired or when not in the possession of a taxicab driver. Grantee shall
have sufficient vehicle parking capacity within the main operating location(s) or the
garaging or off-street parking facilities to meet the requirements for Grantee's
operations, including but not limited to vehicle inspection and maintenance,
administrative functions, and training.
SECTION 8. OPERATIONS AND SERVICE - DRIVERS.
(a) Authorized Drivers. Grantee shall not issue or dispatch any taxicab
operated on behalf of this Franchise to any driver who is in violation of any terms of this
Franchise, the Santa Monica Municipal Code, Taxicab Rules, or any other applicable
law, rule or regulation. Grantee shall not allow any person to operate a taxicab without
a valid and current Taxicab Driver's Permit.
(b) Taxicab Driver's Permits. Grantee is responsible for paying the taxicab
driver's permit fee for all its taxicab drivers, in accordance with the fee specified by
resolution of Council, as of the effective date of this Franchise. Grantee is responsible
for paying the taxicab driver's permit fees and obtaining taxicab driver's permits for all
its taxicab drivers in accordance with Santa Monica Municipal Code Section
6.49.070(e).
(c) Work Shifts. Drivers must check in with Grantee at the beginning and end
of each shift, and such activity shall be recorded by Grantee. Grantee must maintain
daily logs to indicate the vehicle and driver assignments for each shift at all times.
Grantee or a driver/manager Member shall make all such assignments. Grantee shall
issue and collect waybills in the manner and within the time limits established by the
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Taxicab Rules. Grantee shall review waybills upon collection to ascertain that the
required information is fully and accurately provided.
(d) Independent Contractor Drivers. Grantee and its driver/manager
Members are authorized to provide taxicab services through a contracting or leasing
type of operation with an independent contractor driver. No independent contractor
driver may subcontract or sublease the vehicle, or the right to operate the vehicle, to
another person. All contracting or leasing arrangements shall be evidenced in writing
and subject to City approval. Such lease contract shall provide for the collection and
documentation of lease fees by Grantee and driver/manager Members. The lease
contract shall not be instituted or changed without City approval. The independent
contractor driver shall not use a taxicab as the driver's personal vehicle within the City
except when driving to or from the beginning or ending of a work shift. Grantee shall
maintain current files of all lease contracts in a central location, filed by driver, to verify
compliance with these requirements.
(e) Training Program. Grantee shall provide a comprehensive screening,
testing and training program for all its drivers, including independent contractor drivers.
The training program, including curriculum and delivery, must be approved by City and
must include City and state rules and regulations; geography, including map reading
and/or GPS navigation, major points of interest in the City,.and familiarity with the City
and surrounding areas; driver safety and defensive driving; vehicle safety and
maintenance/inspection checks; customer service and relations; sensitivity guidelines
for disabled, frail and elderly passengers; behind the wheel driver training; and
accessible vehicle operation training and CPR certification or equivalent for accessible
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vehicle drivers. City may authorize or require additional training program components, a
change in delivery of program components, or a training facilitator or program outside of
Grantee's program at Grantee's or driver's cost if City deems such change will best
serve the public interest.
(f) Drug and Alcohol Testing. Grantee must have in place a drug and alcohol
program that meets the requirements of California Government Code Section 53075.5
and the United States Department of Transportation, Prevention of Prohibited Drug Use
in Transit Operations (49 CFR 653), Prevention of Alcohol Misuse in Transit Operations
(49 CFR 654),. and Procedures for Transportation Workplace Drug and Alcohol Testing
Programs (49 CFR 40), and maintain compliance with these provisions. A copy of this
program must be provided to the City. Modifications to the program must be provided to
the City in advance of taking effect, or if not practicable, within 5 business days. Testing
shall be conducted as a condition for initial driver permit authorization. Annual testing
shall be conducted as a condition of the permit and renewal of the permit. Random
testing may be conducted and additional tests may be required, including post -accident
testing, rehabilitation and return -to -service testing, and reasonable suspicion testing.
Drivers must show a valid California driver's license at the time and place of testing.
Grantee shall contract with a consultant (program administrator) and authorized
lab approved under the Federal Register to facilitate the program and shall provide a
copy of the contracts to City. In the case of self-employed independent drivers,
information shall be supplied directly to the City pertaining to test results. In all other
cases, test results shall be reported directly to the Grantee who shall notify the City of
positive test results, which notice shall include driver name, identifying information, and
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driver permit status, including any entry into a rehabilitation program. Specific driver test
results shall remain confidential, on file by driver with Grantee, but testing information,
including date of annual test and random test, and positive or negative results, shall be
available for City's review. Cost of testing shall be the driver's responsibility, if the driver
is an independent contractor of Grantee, or Grantee's responsibility, if the driver is an
employee.
In accordance with the Federal Code of Regulations; Grantee's certification
program must include information regarding the controlled substance and alcohol use
policy and procedures as well as educational materials made available to all drivers and
other pertinent staff. Grantee or its authorized agency must advise drivers of the
resources available to them to resolve problems associated with misuse of alcohol and
controlled substances. Materials for education and company policies must be made
available to all current and potential drivers and a signed statement of their receipt shall
be in every permitted driver's file and retained by Grantee.
Grantee shall train supervisory personnel in accordance with federal guidelines in
order to determine whether reasonable suspicion exists to require a driver to undergo
additional testing. Grantee shall use custody and control forms similar to that used
under the federal testing guidelines. Any changes in the federal program guidelines or
other state mandates will be considered by City for modification to Grantee's program.
(g) Pull Program. Grantee shall enroll all permitted drivers in the DMV'Pull
Notice Program and shall review and maintain such records for all drivers for
compliance with all requirements of the Santa Monica Municipal Code, Taxicab Rules,
this Franchise, and Grantee's policies at least annually and as additional updates are
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received. Grantee shall file such records, by driver, in a central location. Grantee shall
notify the City if a driver's record or ability to operate a taxicab fails to meet the Taxicab
Driver's Permit requirements in accordance with the reporting requirements of this
Franchise and the Taxicab Rules.
(h) Social Benefits Programs. Grantee shall comply with all applicable local,
state and federal rules, regulations and statutes concerning mandated social benefits
programs for employees. It shall be the sole responsibility of Grantee to determine
whether legislation concerning these social benefits applies to Grantee's operations.
SECTION 9. OPERATIONS AND SERVICE - DISPATCH, COMMUNICATION
AND SERVICE REPORTING.
(a) Radio Frequencies. Grantee shall have authorized usage of an FCC -
assigned radio frequency(s) and shall maintain the capability of two-way voice radio
communication in working order in each taxicab operating within the City under the
authorized frequency(s). Grantees operating within the same areas of the City must
use separate frequencies within the same areas. Grantee shall notify the City in writing
of such frequency(s) to be used in all areas of the City.
(b) Trip Data. Grantee shall implement and maintain a computer dispatch
system capable of digital data communication and geographically identifying each
service call. The computer dispatch record keeping system must also be capable of
determining who is driving a particular taxicab at any time. Grantee shall record and
store service data using computer dispatch time stamping for each request for service
received and include time request was received, time of order reservation, time of order
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acceptance by driver, time of arrival at service location, time of taximeter activation, time
of taximeter deactivation, and length of trip in miles in accordance with the Taxicab
Rules.
Grantee shall provide total telephonic or other equivalent service order data to
the City monthly, within the first week of the following month in which data was
collected, in a transfer and data format as prescribed by the City. This requirement does
not preclude City personnel from reviewing Grantee's dispatch records via a modem or
equivalent connection and browsing or retrieving information.
Grantee shall also supply summary monthly data reports from telephonic or other
equivalent service calls as prescribed by the City, and as may be changed from time to
time by the City, with minimum reporting requirements required at the beginning of this
Franchise to include service response data summaries by the following categories:
service area; vehicle; wheelchair accessible vehicle; and wheelchair accessible vehicle,
for wheelchair accessible requested trips, aggregated for all vehicles in service. Each of
the foregoing categories will include the total number of trips separated into response
categories, including response time up to 15 minutes, between 16 and 30 minutes,
between 31 and 60 minutes, greater than 60 minutes, and no show or no load.
City'may require that trips completed through requests from outside contracts or
agreements be reported separately.
Response time is defined as the period of time from dispatch of the fare (when
the trip is first offered or designated by dispatcher) to activation of the taximeter as
denoted in the dispatch record. Arrival time may be used in lieu of taximeter activation if
the taxicab is equipped with an automatic vehicle location system that can identify and
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verify in the dispatch record that the vehicle was within one-quarter (1/4) mile of the
arrival target, or as otherwise defined, established and authorized by the City.
(c) Telephonic Service Order Response Data. Grantee shall provide a
computerized method or telephone company switching program to obtain information
pertaining to telephonic or other equivalent order response. The system must be
capable of identifying and storing information pertaining to each call received, including
the length of time required to answer the call and the length of time each call was
placed on hold, if at all.
Grantee shall provide total telephonic or other equivalent service order response
data to the City monthly, within the first week of the following month in which data was
collected, in a transfer and data format as prescribed by the City.
Grantee shall also supply summary monthly data reports aggregated from total
telephonic or other equivalent service order response data, as prescribed by the City,
with minimum reporting requirements required at the beginning of the Franchise to
include:
(1) Total number of telephonic or other equivalent service calls
received;
(2) Total number of telephonic or other equivalent service calls
answered in more than 45 seconds; and
(3) Total number of telephonic or other equivalent service calls placed
on hold longer than two minutes during any period of the reservation process.
(d) Statistical Operating Data. Grantee shall provide summary statistical
operating data to the City monthly in written form pertaining to all taxicabs and types of
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service requests provided within the City. Summary data shall include at minimum the
total number of all trips provided, total miles driven, total paid miles driven, total gross
revenue received, total shifts assigned, and total number of telephonic or other
equivalent service orders received. City may in its discretion direct Grantee to supply
additional information.
SECTION 10. INSPECTION OF PROPERTY AND RECORDS.
(a) At all reasonable times at the City's request, Grantee shall permit any
authorized officer, employee or agent of the City to inspect all property of Grantee, and
to examine and transcribe any and all books, accounts, papers, maps, and other
records kept or maintained by Grantee with respect to Grantee's operations, affairs,
transactions, property or financial condition. If any of the books, accounts, papers,
maps, or other records referenced in this Section are kept outside the City and the City
determines that an examination of such materials is necessary or appropriate, then all
travel and maintenance expenses necessarily incurred in making such examination
shall be paid by Grantee.
(b) Grantee shall prepare and furnish to the City, at all times and in the form
prescribed by the City, such data with respect to Grantee's operations, affairs,
transactions, property or financial condition as may be reasonably necessary or
appropriate. Requested data may include but is not limited to: membership, lease
driver, and employee records; waybills; maintenance records; financial records and
statements; loan agreements; insurance policies; taxicab fleet schedules; dispatch
records and passenger trip data, including GPS and data from smartphone applications;
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complaint records; advertising and promotion records; vehicle acquisition, loan,
registration, and maintenance records; affirmative action records; and contracts.
(c) Failure to comply with any City request for any information may in the
City's sole and absolute discretion result in temporary suspension of Grantee's
operations.
(d) All records shall be maintained in accordance with generally accepted
accounting principles and clearly identified and readily accessible. Representatives of
City or its designees shall be allowed free access to Grantee's books and records, and
have the rights to examine, audit and make transcripts therefrom as necessary, and
inspect all work, data, documents, proceedings and activities related to this Franchise.
SECTION 11. INSURANCE REQUIREMENTS.
(a) In accordance with the requirements of the Santa Monica Municipal Code
and Taxicab Rules, Grantee shall procure and at all times maintain an insurance policy
covering all vehicles operating under this Franchise. Insurance premiums must be paid
in advance for a minimum six-month period. Any vehicle operating without the required
coverage shall be considered under suspension, regardless of whether the City is
aware of the lack of coverage.
(b) Grantee shall obtain comprehensive general liability insurance, to include
contractual liability, in such amounts as the City Risk Manager may from time to time
require, insuring against any claims arising out of the activities of Grantee and its
Members, employees and drivers.
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(c) Grantee shall file evidence of insurance with the City, along with proof of
payment of the minimum six-month premium, in such form as required by and subject to
the approval of the City's Risk Manager, prior to the commencement of operations
under this Franchise. Grantee shall maintain such evidence on file with the City
throughout the term of this Franchise.
(d) Grantee's failure to procure and maintain the required insurance shall
constitute a material breach of contract under which the City may immediately suspend
or revoke and terminate this Franchise. Monetary penalties may also be assessed.
(e) Grantee shall submit to the City a quarterly summary of all taxicab
accidents including date of accident, driver name and identifying information, and
vehicle number. The City may direct Grantee to supply additional information or specify
a form for such reporting.
SECTION 12. INDEMNIFICATION, DEFENSE, HOLD HARMLESS. Except for
the sole and active negligence or willful misconduct of the City, Grantee agrees to
defend, indemnify and hold harmless City (including but not limited to the City's
departments, members of its Council, boards and commissions, officials, officers,
agents, employees, volunteers, assigns, and successors in interest) from and against all
suits and causes of action, claims, losses, demands and expenses, including but not
limited to: attorney's fees and cost of litigation; damage or liability of any nature
whatsoever; death or injury to any person, including Grantee and any of Grantee's
Members, employees and agents; or damage or destruction of any property of either
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party hereto or of third parties, arising in any manner by reason of, or incident to, the
performance of this Franchise on the part of Grantee or subcontractor of any tier.
Grantee shall give the City prompt and timely written notice of any claim made or
suit instituted coming to Grantee's knowledge which may in any way directly or
indirectly, contingently or otherwise, affect either party, and both shall have the right to
participate in the defense of same to the extent of its own interest. Approval of
insurance policies by the City shall in no way affect or change the terms and conditions
of this indemnity agreement.
SECTION 13. NONDISCRIMINATION. Grantee shall not discriminate in its
membership or employment practices against any Member or employee or applicant for
membership or employment, and shall not discriminate in providing taxicab services
under this Franchise, because of race, color, religion, national origin, ancestry, sex, age,
sexual orientation, gender, gender identity, gender expression, military or veteran
status, marital status, genetic information, medical condition, HIV/AIDS or disability, and
shall comply with the requirements of City, state and federal law, rules and regulations.
SECTION 14. WAIVER. A waiver by City of any breach of any term, covenant,
or condition contained in this Franchise shall not be deemed to be a waiver of any
subsequent breach of the same or any other term, covenant, or condition contained in
Franchise.
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SECTION 15. MONETARY PENALTIES FOR VIOLATIONS OF FRANCHISE
ORDINANCE TERMS AND CONDITIONS. The City may levy a monetary penalty on
Grantee for failure to abide by the terms and conditions of this Franchise, as an
alternative to, or in addition to, suspension or revocation of this Franchise. Any of the
following activities constitute a violation of the terms and conditions of this Franchise
and may subject Grantee to a monetary penalty. The City's monetary assessment for a
second, third and subsequent offense, as noted in the schedule herein, may be applied
to any combination of offenses.
(a) Failure to submit to the City any requested or required information as
specified in this Ordinance.
(b) Fraudulent reporting to the City of any requested or required information,
including any tampering of files, data, or reports necessary to provide the required
information.
(c) Operation of unlicensed or unauthorized vehicles as taxicabs in the City,
including but not limited to the operation of previously approved taxicabs with
suspended, canceled or revoked vehicle permits and the use of vehicles licensed as
taxicabs only in other jurisdictions.
(d) Conducting any illegal or unauthorized type of public transportation
operation.
(e) Unauthorized sale, lease, assignment, hypothecation, or other disposition
of this Franchise.
(f) Falsification of or failure to inform membership/share ownership changes.
(g) Operation of a taxicab without approved insurance on file with the City.
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(h) Failure to timely submit required taxicab insurance documents to the City.
(i) Failure to provide taxicab preventive maintenance service.
Q) Failure to provide drivers, Members or personnel with training as specified
in this Ordinance or as detailed in Grantee's Plan.
(k) Failure to adhere to the policies and procedures in Grantee's Plan.
(1) Failure to provide City personnel access to Grantee's property and
records.
The City may levy the following schedule of monetary penalties for these
violations against Grantee:
(a) Up to $10,000 for the first offense.
(b) Up to $25,000 for the second offense within a 12 -month period.
(c) Up to a maximum of $50,000 for third and subsequent offenses within
subsequent 12 -month periods.
Monetary penalties imposed pursuant to the foregoing schedule are subject to
the hearing procedure specified in Santa Monica Municipal Code Section 6.49.150, as
may be amended from time to time.
SECTION 16. REQUIREMENTS OF A CO-OPERATIVE, ASSOCIATION OR
MEMBERSHIP ORGANIZATION. If Grantee is a membership organization, the
following restrictions apply:
(a) The number of Members and shares shall each be limited to the total
number of taxicabs authorized for Grantee under this Franchise. Joint Memberships
are prohibited.
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(b) Members shall be limited to owning a maximum of 5% of the total taxicabs
and shares authorized for Grantee with the maximum figure determined by rounding the
number of vehicles and shares equivalent to 5% of the fleet to the nearest whole
number.
(c) An Investor/Shareholder Member shall not drive, control or manage any
taxicab in Grantee. All taxicabs owned by an Investor/Shareholder shall be controlled
and managed completely by Grantee, on the Investor/Shareholder's behalf, pursuant to
a City -approved contract, between the Investor/Shareholder and Grantee. The
Investor/Shareholder shall have no control over or perform any function for a taxicab
under the control of Grantee other than being the registered owner of the taxicab.
(d) A Driver/Manager Member may not control or manage more than 3
taxicabs in Grantee. All taxicabs owned by a Driver/Manager in excess of 3 and any
others that the Member does not control or manage shall be classified as
Investor/Shareholder memberships and shall be controlled and managed completely by
Grantee, on the Member's behalf, pursuant to a City -approved contract, between the
Member and Grantee. Grantee shall ensure that all Driver/Manager Members comply
with all City laws, rules and regulations and this Ordinance relating to the number of
vehicles managed.
(e) Members must qualify for a Taxicab Vehicle Permit under the current
standards established by the City.
(f) If any Taxicab Vehicle Permit is revoked, any Driver/Manager Member
who was the cause of such revocation or cancellation will be subject to revocation or
cancellation of his or her Taxicab Driver's Permit and will be precluded from operating a
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taxicab or exercising any other rights granted by such Taxicab Driver's Permit. Any
Driver/Manager Member whose Taxicab Driver's Permit is revoked or canceled must
convert all Driver/Manager memberships into Investor/Shareholder memberships or
transfer membership and any other taxicabs owned by the Member shall be operated,
controlled and managed by Grantee on the Member's behalf, pursuant to a City -
approved contract, between the Member and Grantee.
(g) Grantee shall ensure that each Driver/Manager Member is aware of and
complies with any requirement of the City regarding the filing of an annual profit and
loss statement. Grantee shall submit the required statistical information quarterly or as
directed by the City.
(h) Grantee shall require all Members to enter into a security agreement,
subject to City approval, as a condition of membership in Grantee. By such agreement,
the Member grants to Grantee a security interest in the Member's taxicabs to ensure the
Member's compliance with his or her obligations as a Member.
(i) Grantee shall establish a procedure for the approval, transfer, and sale of
memberships and a procedure for dismissal of Members. Grantee shall provide
information to each Member pertaining to the Member's role in the organization, the City
and the taxicab industry, basic record keeping and reporting requirements, the City's
rules and regulations, and any other information required by the City.
(j) All agreements, including any security or membership agreements, and all
contracts, including those under which the co-operative operates vehicles on behalf of
its Members, that affect the method by which taxicabs are operated or service is
provided, shall be subject to review and approval by the City.
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(k) Grantee shall obtain vehicle liability insurance for all vehicles in the
taxicab fleet; contract with lease drivers for all vehicles in the taxicab fleet; provide
maintenance for all vehicles in the taxicab fleet; provide a computer dispatch service;
collect and maintain all records, including waybills, trip data, pertinent to its taxicab
operations; collect vehicle lease fees for vehicles in the taxicab fleet; notify
Driver/Manager Members and drivers of violations and hearings; and make all vehicle
and driver assignments for all vehicles it controls on behalf of Members.
SECTION 17. Any provision of the Santa Monica Municipal Code or appendices
thereto, inconsistent with the provisions of this Ordinance, to the extent of such
inconsistencies and no further, are hereby repealed or modified to that extent necessary
to effect the provisions of this Ordinance.
SECTION 18. If any section, subsection, sentence, clause, or phrase of this
Ordinance is for any reason held to be invalid or unconstitutional by a decision of any
court of competent jurisdiction, such decision shall not affect the validity of the
remaining portions of this Ordinance. The City Council hereby declares that it would
have passed this Ordinance and each and every section, subsection, sentence, clause,
or phrase not declared invalid or unconstitutional without regard to whether any portion
of the ordinance would be subsequently declared invalid or unconstitutional.
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SECTION 19. The Mayor shall sign and the City Clerk shall attest to the
passage of this Ordinance. The City Clerk shall cause the same to be published once
in the official newspaper within 15 days after its adoption. This Ordinance shall become
effective 30 days from its adoption.
APPROVED AS TO FORM:
LANE DILG
City Attorney
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Approved and adopted this 28th day of November, 2017.
� 4
Ted Winterer, Mayor
State of California )
County of Los Angeles ) ss.
City of Santa Monica )
I, Mary Dacanay, Acting Senior Administrative Analyst of the City of Santa
Monica, do hereby certify that the foregoing Ordinance No. 2558 (CCS) had its
introduction on November 14, 2017, and was adopted at the Santa Monica City
Council meeting held on November 28, 2017, by the following vote:
AYES: Councilmembers Himrimelrich, McKeown, O'Connor, O'Day, Vazquez
Mayor Pro Tem Davis, Mayor Winterer
NOES: None
ABSENT: None
ATTEST:
Maria Dacanay, Acting e Administrative
Analyst
/` lv
Date
A summary of Ordinance No. 2558 (CCS) was duly published pursuant to
California Government Code Section 40806.