SR 10-23-2018 7B
City Council
Report
City Council Meeting: October 23, 2018
Agenda Item: 7.B
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To: Mayor and City Council
From: David Martin, Director, Transportation Planning
Subject: Modification to Taxicab Franchise for consistency with AB 1069 and AB 939,
and extension of Taxicab Franchise Agreement with TMAT Corp (dba Taxi!
Taxi!)
Recommended Action
1) Introduce for first reading of an ordinance amending Chapter 6.49 of the Santa
Monica Municipal Code modifying provisions of the taxicab franchise regulations;
2) Adopt a Resolution establishing maximum taximeter rates.
Executive Summary
As a result of recent changes in State law designed to simplify the permitting process
for taxicabs, the City must update its local taxicab franchise ordinance. Major
components of the new law include: 1) limiting broad based local regulations to only
those taxicab companies “substantially located” in the City, 2) allowing any taxicab
company permitted by another local governmental agency to provide prearranged trips
within the City, 3) allowing taxicab companies to establish rates, but authorizing a city to
set maximum rates, and 4) continuing to grant local authority to adopt limited taxicab
operating requirements unrelated to permitting or business licensing. Staff has
proposed updates to Santa Monica Municipal Code Chapter 6.49 (Taxicabs). Staff also
proposes eliminating the taxi driver permit test and establishing maximum taximeter
rates. Staff will return with a recommendation to amend and extend the current
franchise of TMAT Corp. (dba Taxi! Taxi!), the only taxicab company that currently
meets the criteria of being “substantially located” in Santa Monica. Two of the other
three taxicab companies are asking to be allowed to operate under Government Code
53075.5(d)(2). Staff is not recommending this option. The remaining company wants to
meet the criteria of being substantially located.
Background
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On July 28, 2009, the City Council established a taxicab franchise to regulate taxicab
transportation services operated within the City. The franchise created practices for
licensing the taxicab companies, permission to operate a specified number of vehicles,
maximum customer charges, driver testing and permitting, inspections, mandatory
controlled substance and alcohol testing, monthly reporting, and many other system
oversight and management practices.
In November 2010, the Council granted franchises to five taxicab companies: Bell Cab
Company, Metro Cab Company, Independent Taxi Owners’ Association, TMAT Corp.
(dba Taxi! Taxi!), and Yellow Cab Company. Council modified and extended the
franchise agreements for all five operators on November 24, 2015, and again on
November 14, 2017. The agreements and driver permits were given an expiration of
December 31, 2018, to coincide with Assembly Bill 1069 changes.
Demand for taxicab services has been steadily dropping in recent years, and in late
2016 all five companies submitted requests to remove vehicles from their fleet and to
stop paying associated per-vehicle fees. Section 5(f) of the taxicab franchise agreement
allows a franchisee to request a reduction in the size of their fleet if the “public
convenience and necessity no longer requires [the franchisee] to furnish taxicab
services with the number of vehicles authorized under this franchise.” On December 6,
2016, the Council approved the taxicab companies’ request and reduced the number of
authorized vehicles from 300 to 199. A year later, in 2017, Council also reduced the
annual franchise fee per vehicle from $1,100 to $452.
In January 2018, Metro Cab informed the City that it would not renew its franchise for
2018 due to the reduced demand for taxicab services and the loss of the majority of its
business to Transportation Network Companies (TNCs). In accordance with Santa
Monica City Charter Section 1602, the City considered Metro Cab’s non -renewal a
forfeiture of its taxicab franchise, which became effective immediately. Presently, four
taxicab companies, Bell Cab, Independent Taxi Owners’ Association, Taxi! Taxi!, and
Yellow Cab, continue to provide taxicab services through the franchise agreements set
to expire on December 31, 2018.
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Discussion
Santa Monica’s current franchise system of four taxicab companies provide
approximately 150,000 trips annually in Santa Monica. The annual trips are down from a
peak of 750,555 in 2013, but the continued large number of annual trips demonstrates
the on-going usefulness of taxicab services for certain users and types of trips
originating in Santa Monica. Recognizing that taxicabs serve an on-going customer
base, Council has acted in recent years to provide greater flexibility and fee relief.
The current franchise system allows the four companies exclusive access to service
prearranged taxi trips, street hails and utilize City taxi stands. The franchise requires
taxicab companies to pay fees, maintain their allocated fleet ve hicles and pass an
annual inspection, demonstrate compliance with metering and maximum charges,
submit to driver testing, provide an annual business plan describing their organizational,
management and administrative structure and procedures, submit monthl y trip data and
participate in other oversight practices.
As a result of national trends, the taxicab industry in Santa Monica continues to decline
as other vehicle for hire modes such as Uber and Lyft grow. The current franchise
monthly data reporting shows that trips and gross revenue of the taxicab operators
continue to drop. From 2013 through 2017, taxicab trips have fallen 80 percent and
gross revenue has declined 64 percent (Table 1). For January to July of this year, trips
are down 24 percent year-over-year, and revenues have dropped 25 percent (Table 2).
Table 1. Annual Trips & Gross Revenue
Year Trips Change Gross
Revenue Change
2013 750,555 n/a $14,875,472 n/a
2017 154,204 -80% $5,004,585 -64%
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Table 2. Recent Trips & Gross Revenue (Januar y-July)
Year (Jan–July) Trips Change Gross
Revenue Change
2017¹ 92,900 n/a $3,103,692 n/a
2018² 71,333 -24% $2,350,845 -25%
¹ - Five Taxicab Companies ² - Four Taxicab Companies
In response to the downturn in demand for taxicab services, taxicab op erators have
reduced the number of service vehicles. Council authorized a total of 199 vehicles in
2017, but the taxicab operators submitted renewal applications for only 137 taxicab
vehicles in 2018 as shown in Table 3. (Metro Cab’s franchise forfeiture included 43
authorized vehicles, which reduced the total authorized vehicles to 156 citywide.)
July is a busy month for taxicab operations, and companies would be expected to be
operating at or near their peak for the year. In July 2018, the companies were operating
only 94 of the 137 permitted vehicles. Taxi!Taxi! was operating the largest proportion of
the vehicles, with 39 of the 94, which is 98 percent of its authorized vehicles.
Table 3. Vehicles in Service
Company
Permitted/
Authorized
Vehicles
Vehicles in
Operation
(July)
Permitted
Vehicles in
Operation
(July)
Authorized
Vehicles in
Operation
(July)
Bell Cab 30/43 22 73% 51%
Independent 25/30 16 64% 53%
Taxi! Taxi! 39/40 39 98% 98%
Yellow 43/43 17 40% 40%
TOTAL 137/156(88%) 94 69% 60%
Of those vehicles that have been permitted/authorized, only 72 are dedicated to the
Santa Monica market. The remaining taxicabs have permits in one or more additional
jurisdictions, most commonly Beverly Hills, Los Angeles, and/or West Hollywood. For
example, 20 of the Yellow Cab vehicles are contracted to provide Access Services in
South Los Angeles and therefore spend most of their time in that area.
California State Assembly Bills 1069 and 939 – Changes to Taxi Regulations
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In light of the challenges facing the taxicab industry, and the relatively more numerous
and strict local rules applied to the taxicab industry relative to Uber and Lyft (TNCs) in
California, the state intervened to redefine local regulation of taxicab transportation
service. The new rules are intended to enable taxicabs to better compete with all for -
hire modes of transportation, and to relieve taxicab companies from the patchwork of
local requirements and instead focus on the requirements of the jurisdiction to which
they have the closest connection. TNCs in California are currently regulated by the
California Public Utilities Commission, with accountability only to a Statewide agency.
The new rules reduce local regulation to position taxicabs more on par with TNCs.
State Assembly Bill 1069 was approved by the Governor in October 2017, and
Assembly Bill 939 amended AB 1069 with administrative and clarifying changes in
September 2018. The major substantive changes to local regulation are:
1. Limiting broad based local regulations to only those taxicab companies
“substantially located” in the city.
2. Allowing a taxicab company that is permitted by another local governmental
agency to provide prearranged trips within the city.
3. Limiting local regulation of taximeter rates to a maximum rate, and allowing
taxicab companies greater rate flexibility.
4. Continuing to provide local jurisdictions with limited authority to adopt operating
requirements for all taxicab companies and drivers that are not related to
permitting or business licensing (for example, limiting street hails or use of
taxicab stands, and imposing public safety, health, and welfare regulations).
AB1069 further reiterates some of the core components of what local jurisdictions
already require, such as a mandatory controlled substance and alcohol testing
programs, DMV pull notices to check driver records, and ability to levy service charges,
fees or assessments to carry out an ordinance for taxicab services (see Attachment A
for an overview of the bill).
Updates to Santa Monica Regulations based on California State Law
AB1069 necessitates that the City update its taxi laws (Santa Monica Municipal Code
6.49 Taxicabs) and amend its franchise ordinances. Below is a discussion of each of
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the major changes in State law and proposed adjustments to Santa Monica’s franchise
rules and procedures.
1. Pursuant to AB1069, broad based local regulations are limited to taxicab
companies “substantially located” in the city. A taxicab company is substantially
located in a city if it meets either of the following: has its primary business
address within that city or, the total number of prearranged and non-prearranged
trips that originate within that city account for the largest share of the taxicab
company’s total trips.
TMAT Corp., dba Taxi! Taxi! has been providing taxicab services in Santa Monica for
over 30 years and is currently the only company that is currently “substantially located”
in Santa Monica. Staff proposes extending its franchise for an additional five years, and
it will remain subject to local regulations. Bell Cab and Yellow Cab are asking to be
allowed to operate under Government Code 53075.5(d)(2).
Going forward, the new state definition of “substantially located” will allow a
taxicab company to establish a primary business address in Santa Monica and
become “substantially located.” Independent Taxi Owners Association wishes to
continue its franchise with the City and is considering its options to become
substantially located.
2. Any taxicab company permitted within LA County may pick up prearranged trips
in Santa Monica.
State law allows any taxicab company permitted by a local governmental agency
to service trips within the County that have been pre-arranged through a
dispatch, phone application, or other booking. The proposed Ordinance
addresses this change in state law. Presently, Bell Cab, Independent Taxi and
Yellow Cab account for approximately 40 percent of all trips in Santa Monica and
it is expected they will continue to provide some prearranged service here. The
six companies operating in Los Angeles are likely to continue providing
prearranged trips, along with any others that are permitted in the County under
this provision of the bill.
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When the franchise was created, there was a concern regarding the over -supply
of taxicab companies and the impacts on traffic, congestion and curb space use.
Given the significant reduction in taxicab demand, this is not anticipated to
become a concern with changes in state law, unless demand or operating
conditions were to substantially change.
3. Taxicab companies may set fares or charge flat rates. However, the city may set
a maximum rate.
Currently the fees and rates that a taxicab franchisee may charge are set by
Council resolution. This bill allows companies to set their fees and rates, and
adjust prices with demand, much like TNCs. Cities may still set a maximum rate
to protect customers from excessive or disproportionate fees.
In discussions with Taxi! Taxi! regarding this provision, staff was informed that
Taxi! Taxi! would like to maintain the current rates as a maximum with the option
of adjusting them at a later date. The proposed resolution reflects the
maintenance of current rates. Additionally, staff has been in discussions with
regional taxicab administrators regarding setting a maximum rate that is the
same throughout the county. As additional data is available, and regional
discussions progress, staff would return to Council with potential adjustments to
the maximum rate.
4. City may limit the number of taxis that may use stands or pickup street hails.
The four taxicab companies currently permitted in Santa Monica have exclusive
access to the existing City taxi stands for walkups and street hails. Companies
permitted within LA County but not permitted in Santa Monica may end trips and
conduct prearranged trips, but not hail or use the stands. Taxi! Taxi! would be
able to continue providing services to customers using existing City stands.
Staff discussed reciprocity regarding this provision with the Los Angeles Taxicab
Administrator. Staff was informed that Los Angeles is not considering sharing
their stands or allowing street hails by taxicab companies not permitted in their
jurisdiction. As such, staff is recommending that taxi stands be utilized
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exclusively by taxicab companies substantially located in and permitted by Santa
Monica.
Bell Cab and Yellow Cab wish to continue servicing Santa Monica residents and
visitors through Section 53075.5 (d)(2) of the Government Code, which reads “A
city or county may accept a taxicab company or driver permit issued by another
city or county as valid, and may issue to that taxicab company an inspection
sticker or photo permit that authorizes that taxicab company or driver to operate
within the county. All companies can serve prearranged trips in Santa Monica,
which is 52% of all trips. This sticker would only affect access to the taxistands
and hailing. The law requires issuance of a sticker or photo permit to each allow
driver and company. Due to the limited benefit from the sticker and the
potentially burdensome administrative requirements, staff is recommending not
to pursue this option.
Eliminating Written Driver Tests
Currently, drivers who submit an application for a new taxi driver permit are required to
take a written exam to test his or her ability to operate a taxicab; ability to communicate
in English; knowledge of and ability to locate addresses and intersections in Santa
Monica and surrounding Los Angeles County; and knowledge of the laws of the road.
The City of Los Angeles no longer requires new taxicab driver applicants to pass a
written examination. The number of new Santa Monica taxicab driver permit
applications has been declining since June of last year. This year, the driver
examination has been administered for only six applicants, all of whom passed.
Additionally, taxicab drivers have phones and/or monitors with map applications that
provide directions to a location. Staff recommends removing the written exam
requirement for new taxi driver permit applicants.
The terms and conditions of the franchise mandate that taxicab companies provide
programs and activities for driver training. Taxi! Taxi! provides classes that assist
drivers with their overall knowledge of the taxi profession and road skills, including
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regulations and laws, driver professionalism and customer service, effective use of
navigational devices, and local area appreciation and geography.
Changes to the Santa Monica Municipal Code
Santa Monica’s current taxicab franchise system is currently implemented through
components of Municipal Code Section 6.49, the Ordinances approving each taxicab
franchisee, and the Administrative Regulations for the program. Proposed updates to
Santa Monica Municipal Code Section 6.49 are included as Attachment B. For
example, the existing Section 6.49.040(b) requires franchises to be awarded through a
competitive bidding process initiated through a request for proposals issued by the City.
Under the recommended new taxi regulations, Santa Monica will no longer have a
competitive bidding process and will only grant a franchise to a taxicab company that is
substantially located in the city and meets requirements consistent with State law.
As discussed above, Taxi! Taxi! is the only taxicab company currently locate d in Santa
Monica, and eligible for a franchise which is granted by ordinance. Staff will be
returning with updates to the terms and conditions of the franchise ordinance language
to be consistent with State law changes.
Changes to Taxicab Rules and Regulations
The rules and procedures for how the taxi franchise program is implemented have
historically been summarized in the Taxicab Rules and Regulations. This document is
being updated to reflect changes in State law and will be updated with Council direction.
The revised document will be reposted online and provided electronically to taxicab
companies for distribution to their drivers.
Taxicab Franchise Fees
The franchise requires each company to pay a franchise fee, a vehicle fee, and renewal
fees for vehicles and drivers. Council reduced fees in 2017 in response to operator
concerns. Table 4 summarizes the current fees that would be paid by Taxi! Taxi! based
on the current number of vehicles and drivers. As the only franchise holder, it is
projected that Taxi! Taxi! may need additional vehicles to meet demand. Table 4
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includes a projection of potential fees with the capacity of drivers and vehicles
anticipated to be needed to provide efficient taxicab service.
Table 4. Taxicab Franchise Fees
Fee Quantity
(current)
Total
(current)
Quantity
(projected)
Total
(projected)
Franchise Fee $5,000 1 $5,000 1 $5,000
Vehicle Fee $452 39 $17,628 50 $22,600
Renew Vehicle Fee $61.62 39 $2,403 50 $3,081
Driver Permit
Renewal Fee
$48 50 $2,400 70 $3,360
TOTAL REVENUE $27,431 $34,041
The current and projected revenue would not recover the full cost of administering the
taxi program. Just one taxicab company will be subject to the fees, resulting in
substantially reduced revenue. While program administration will be reduced, reductions
are not strictly proportional to the number of companies or vehicles. The incremental
resources to regulate additional companies is reduced, but not baseline program
administration. However, increasing fees is not recommended a t this time. Taxicab
services continue to meet the needs of specific users, taxicab revenue has been on the
decline for the past six years and the future of the taxicab industry is still uncertain even
with new state regulations.
Next Steps for Taxicab Program
1. Return to Council by November 13, 2018 to propose extending Taxi! Taxi!’s
franchise ordinance for another 5 years with changes that complies with State
Law.
2. Return to Council by or before November 27, 2018 to propose revisions to
applicable administrative citation fines consistent with State law.
3. Implement the regulatory and administrative changes to the taxicab program.
4. Issue administrative rules no later than December 31, 2018.
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Financial Impacts and Budget Actions
Staff anticipates revenues to decrease by approximately $79,860 due to the reduction in
the number of permitted taxicab companies allowed to operate in Santa Monica.
Revenues will be adjusted during FY 2018-2019 Mid – Year Review.
Prepared By: Cheryl Shavers, Senior Administrative Analyst
Approved
Forwarded to Council
Attachments:
A. Major Provisions of State Taxi Legislation
B. Ordinance - PCD - Taxicab - 10232018
C. Resolution - PCD - Taxicab Fees - 10232018
D. Written Comments
E. Powerpoint Presentation
ATTACHMENT A
Major Provisions of Taxi Regulation
1. Permitting program for taxicab drivers.
2. Establishment or registration of rates.
a. Taxicab company may set fares or charge a flat rate. However, the city or
county may set a maximum rate.
b. The taxicab company may use any type of device or technology approved
by the Division of Measurement Standards to calculate fares, including the
use of Global Positioning System metering.
3. Mandatory controlled substance and alcohol testing certification program .
4. City or county may levy service charges, fees or assessments in an amount
sufficient to pay for costs of carrying out an ordinance or resolution adopted in
regard to taxicab transportation services.
5. A city or county may accept a taxicab company or driver permit issued by
another city or county as valid and may issue to that taxicab company an
inspection sticker or photo permit that authorizes that company or driver to
operate within the county.
6. A city or county shall not require a taxicab company or driver to obtain a business
license, inspection permit or driver permit unless the company or driver is
substantially located within the jurisdiction.
7. A taxicab company permitted in a city or county may provide prearranged trips
anywhere with that county
8. It is unlawful to operate a taxicab without a valid permit issued by each city or
county in which the taxicab company is substantially located. The minimum
violation has be $5,000 and may be imposed administratively by the permitting
city or county.
9. A city or county may enter into an agreement with another city or county to form
a joint powers authority for purpose of regulating or administering taxicab
companies and drivers that are substantially located within the jurisdiction
boundaries of the jpa. A city or county may also enter into an agreement with a
transit agency for the same purpose.
10. A city or county, regardless of whether a taxicab company is substantially
located, may adopt by ordinance, operating requirements for companies and
drivers that do not relate to permitting or business licensing, including:
a. Limits on the number of taxicab companies that may use stands or pick up
street hails.
b. Requirements on equal accessibility.
c. Other public health, safety, or welfare ordinances related to taxicabs .
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City Council Meeting: October 23, 2018 Santa Monica, California
ORDINANCE NUMBER ____ (CCS)
(City Council Series)
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA
AMENDING CHAPTER 6.49 OF THE SANTA MONICA MUNICIPAL CODE
RELATING TO TAXICABS
WHEREAS, the City of Santa Monica (“City” or “Santa Monica”) currently regulates
taxicab operations through a franchise system; and
WHEREAS, the State Legislature recently passed Assembly Bills 1069 and 939,
which limits the City’s ability to regulate taxicab operations to only those taxicab companies
that are substantially located within the City, and prohibits the City from imposing licensing,
permitting, and certification requirements on taxicab companies that are not substanti ally
located in the City; and
WHEREAS, only one of the four taxicab companies authorized to provide taxicab
services in the City pursuant to a franchise is substantially located within the City; and
WHEREAS, Chapter 6.49 of the Santa Monica Municipal Cod e relating to taxicab
operations must be significantly updated and restructured to conform to State law, remove
certain requirements from applying to taxicab companies that are not substantially located
in the City, and improve regulatory efficiency.
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NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA
DOES HEREBY ORDAIN AS FOLLOWS:
SECTION 1. Chapter 6.49 of Article VI of the Santa Monica Municipal Code is
hereby amended as follows:
Chapter 6.49
TAXICABS
Sections:
6.49.010 Definitions.
6.49.020 Rules and regulations.
6.49.030 Authority of designated employees of the Police Department to
have access to summary criminal history information.
6.49.040 Taxicabs--Franchise required.
6.49.050 Taxicabs--Suspension or revocation of franchise.
6.49.060 Unauthorized taxicab services prohibited.
6.49.070 Taxicab driver’s permits.
6.49.080 Taxicab--Identification and vehicle operating requirements.
6.49.090 Parking of vehicles--Stands.
6.49.095 Access to passengers on business establishment premises.
6.49.100 Taxicab signs.
6.49.110 Taximeters and rates.
6.49.120 Full use of taxicab.
6.49.130 Taxicab identification decal required.
6.49.140 Penalty for violation.
6.49.150 Penalties for violations of rules and regulations.
6.49.010 Definitions.
For the purposes of this Chapter certain words and phrases are defined and certain
provisions shall be construed as herein set forth, unless it is apparent from the context that
a different meaning is intended.
(a) Stand. “Stand” means a place designated by the Parking and Traffic Engineer
of the City for use by any vehicle licensed hereunder while awaiting employment.
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(b) Taxicab. “Taxicab” includes every automobile and motor -propelled vehicle
which is not otherwise licensed by the California Public Utilities Commission, is designed to
carry not more than eight persons, excluding the driver, is not otherwise required by State
Law to have all trips prearranged, and is used for the transportation of passengers for hire
within and without the boundaries of the City, at rates for distance traveled, or for waiting,
standby or traffic delay time, or for any combination of such rates, and not operating over a
defined route.
(c) Taxicab Franchisee or Franchisee. “Taxicab franchisee” or “franchisee”
includes a person, firm, association, sole proprietorship, stock corporation, co-operative
organization or other entity, however organized, including the management and officers
thereunder, that is awarded a taxicab franchise by the City and operates a taxicab service.
(d) Taximeter. “Taximeter” includes a device that automatically calculates a
predetermined rate or rates for taxicab services and indicates the charge for the hire of a
taxicab, including Internet, Web, or other network-based applications. Taximeters may also
facilitate flat rates or promotional rates.
6.49.020 Rules and regulations.
The Director of Planning and Community Development or designee is authorized
to adopt rules and regulations consistent with this Code and necessary to implement this
Chapter and the franchise agreements. Such rules and regulations may include, but are
not limited to, provisions: governing taxicab service and safety; prescribing limitations,
conditions and qualifications of applicants for vehicle permits and driver permits; and
pertaining to the responsibilities of taxicab franchisees and drivers. Such rules and
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regulations shall be filed in the office of the City Clerk where they shall be made available
for inspection by the public. Violations of rules and regulations issued pursuant to this
Section shall constitute violations of this Chapter, and shall subject the violator to the
penalties set forth in this Chapter.
6.49.030 Authority of designated employees of the Police Department to have access
to summary criminal history information.
Police Department employees assigned to or having responsibility for permitting and
licensing pursuant to this Chapter shall have the authority to obtain State and local
summary criminal history information pursuant to Sections 11105(b)(11) and 13300(b)(11)
of the California Penal Code.
6.49.040 Taxicabs—Franchise required.
(a) The City may in its discretion award one or more, but no more than five,
nonexclusive franchises for the operation of taxicab services within the City. Upon issuance
of one or more franchises, the City shall not accept new or renewal applications for an
existing business license, decal or permit to operate a taxicab service and it shall be
unlawful for any person other than a taxicab franchisee and its employees or authorized
agents to operate, engage in the business of operating, or cause to be operated any
taxicab service within the City.
(b) Franchises shall be awarded through a competitive process initiated through a
request for proposals issued by the City. Franchise proposals will be evaluated based upon
criteria including, but not limited to, the following: the emissions standards and fuel
economy of taxicabs; the age and condition of taxicabs; provision of a centralized dispatch
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system; past experience, including demon strated quality of service and safety; driver
training and qualifications; financial stability; insurance; record of violations by the bidder or
bidder’s drivers of Federal, State or local law, and rules and regulations relating to taxicab
operations, particularly safety operations; extra services available to the public, including
discounts for seniors and those with disabilities; and benefits available to drivers and
employees. Additionally, there shall be a local preference. Taxicab franchise proposals
shall be examined and evaluated by a committee established by the City Manager, which
shall make recommendations to the City Council. Upon the award of a franchise, the
franchisee shall enter into a franchise agreement with the City. The franchise agreement
may impose obligations on the franchisee that are additional to but not inconsistent with
those imposed pursuant to this Chapter. Each franchisee, including its members, drivers,
and authorized agents, shall comply with the franchise agreement.
(c) The City may at any time initiate a competitive bidding process for the issuance
of new franchises. Nothing shall prohibit a taxicab franchisee from competing for a new
franchise; however, any taxicab franchisee whose franchise has been revoked shall
thereafter be prohibited from competing for award of a franchise for a period of three years
following the scheduled expiration of its franchise agreement.
(d) The maximum number of taxicabs permitted to operate under the terms of all
franchises granted by the City shall not exceed three hundred taxicabs, which number may
be adjusted by City Council from time to time.
(e) After notice and a hearing, the City Council may at any time reduce the total
maximum number of taxicabs operating within the City, upon findi ng that the number of
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taxicabs is detrimental to the public health, safety, or welfare. If the City Council reduces
the number of permitted taxicabs, the reduction shall be reasonably allocated amongst
existing franchisees.
(f) The City Council may schedule a public hearing to determine, by resolution,
whether the public convenience and necessity require the operation of additional taxicabs
in the City. Any such resolution shall specify the number of additional taxicabs permitted.
Any determination that the public convenience and necessity require the operation of
additional taxicabs in the City shall include, but are not limited to, findings that:
(1) The additional taxicabs will not substantially impair the ability of existing
franchisees, under efficient management, to earn a fair and reasonable return on their
capital investments in their franchises;
(2) Existing franchisees, under normal conditions, are not fulfilling the need for
taxicab services in the City; and
(3) The additional taxicabs, together with the taxicabs then currently operating in
the City, will not unduly congest, overburden, or interfere with any traffic circulation, public
street access, public or private parking, or stands, or otherwise create any danger or
hazard to the public health, safety, or welfare.
(g) No franchisee shall operate a taxicab within the City unless the City has issued
and the franchisee possesses a current taxicab vehicle permit for that specific vehicle.
(h) No taxicab franchisee shall permit any driver in its employ to operate, and no
driver shall operate, a taxicab in the City into which passengers are accepted for
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transportation without having first obtained a valid driver’s permit from the City and paid to
the City the required taxicab driver’s permit fee.
(i) As defined in the rules and regulations, and with the approval of the City
Manager or designee, a taxicab franchisee may utilize and participate in any Los Angeles
Department of Transportation (LADOT) taxicab app or subsequent program to se rve as a
dispatching system and to pick up in jurisdictions in accordance with the terms and
conditions of its territorial reciprocity program. Such approval shall not be unreasonably
withheld upon the City’s verification that the app or program complies w ith the
requirements of this Code.
(j) Fees.
(1) Annual Franchise Fee. Each taxicab franchisee shall pay to the City an annual
fee, established by resolution of the City Council, for the privilege of operating a taxicab
service in the City. Such payment shall be in addition to any other prescribed fees,
including but not limited to, business license and permit fees. The franchise fee shall be
due, without set off or deduction, upon execution of the franchise agreement and payable
on each anniversary date thereafter, unless otherwise as specified in the franchise
agreement. Failure to pay the full franchise fee when due shall be cause for revocation of
the franchise.
(2) Annual Taxicab Vehicle Permit Fee. Each taxicab franchisee shall be
required annually to obtain a taxicab vehicle permit and to pay to the City an annual taxicab
vehicle permit fee, established by resolution of the City Council, for each taxicab operating
under its franchise. Taxicab vehicle permits issued after December 31, 2011, shall expire
8
at midnight on the December 31st next succeeding its issuance, unless revoked or
suspended prior to that date pursuant to this Chapter.
(k) Each taxicab 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 for the purpose
of obtaining exclusive access to the business’ patrons seeking on -demand taxicab
services. 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. Nothing in this Section prohibits exclusive arrangements with any
business establishment for the purpose of providing pre -arranged transportation services
for events with multiple participants, employee shuttle services, carpooling services, or
other arrangement approved in advance by the City to the extent consistent with the
requirements of this Chapter.
6.49.050 Taxicabs—Suspension or revocation of franchise.
(a) Suspension. The City may, after due notice and an opportunity to be heard,
suspend a taxicab franchisee’s operations for one or more days if, in the judgment of the
City, a lapse in required insurance or any other violation of the terms and conditions of the
franchise agreement or the provisions of this Chapter; or a violation of any rules and
regulations established by the City, orders or directives established by the City, or the
California Vehicle Code, creates an immediate safety hazard. Cause for suspension also
exists where the holder of a majority interest in the taxicab franchise or the t axicab
9
franchisee illegally conducts any type of vehicle for hire or public transportation operation
licensed by the City or any other governmental agency, or the franchisee fails to pay any
monetary penalties in accordance with this Chapter, the terms and conditions of the
franchise, or any resolutions or schedules adopted thereto.
(b) Revocation. The City may, after due notice and an opportunity to be heard,
revoke a franchise and terminate the franchise agreement in the event that the franchisee,
including its employees, officers, agents and drivers: violates any terms and conditions of
the franchise agreement; fails to cure any default within the time required as provided in
the franchise agreement; violates subdivision (d) of this Section; violates or commits
multiple violations of any provision of this Chapter or any other law, rule, regulation, order
or filings of any regulatory body having jurisdiction over the franchisee; or practices, or
attempts to practice, any fraud or deceit upon any governmen tal agency or regulatory
body.
(c) The franchisee may appeal any decision from the City to suspend or revoke to
a Hearing Examiner for consideration pursuant to this Section. The matter will be set for a
hearing and the City shall give the franchisee at least thirty days’ written notice of the time
and place of the hearing. At the hearing, the Hearing Examiner shall consider all relevant
evidence and testimony and if supported by a preponderance of the evidence, the Hearing
Examiner may, in his or her discretion, order the franchisee to take remedial actions or
impose any other remedy as authorized by law, including, but not limited to, suspension for
a designated period of time; temporary or permanent reduction of taxicab vehicle permits;
10
or revocation of the franchise and termination of the franchise agreement. The decision or
order of the Hearing Examiner shall be final and binding and subject only to judicial review.
(d) Effect of Suspension or Revocation. Upon suspension or revocation of a
franchise, all the franchisee’s taxicab operations in the City shall cease until such time as
the suspension or revocation is lifted.
(1) No fee refunds shall be issued to any franchisee upon revocation of a
franchise.
(2) Upon revocation of any taxicab franchise, no franchise to operate the same
business activity shall be granted to the franchisee within the remainder of the term or
extension term of the franchise agreement and for a period of three years thereafter.
(3) In the event of revocation of a franchi se, the franchisee’s taxicab vehicle
permits may in the City’s discretion be reallocated to other franchisees on a pro rata basis
or assigned to a new taxicab franchisee following a competitive bidding process for the
award of new franchises.
6.49.060 Unauthorized taxicab services prohibited.
(a) No person shall knowingly dispatch a vehicle or respond to a request for a
“taxi,” “cab” or “taxicab” for pick-up within the City, or pick-up passengers within the City for
taxicab services, unless the vehicle has a valid taxicab vehicle permit, the driver of such
vehicle has a valid taxicab driver’s permit, and the taxicab is operated pursuant to a
franchise awarded by the City.
(b) No person who drives or operates a taxicab in the City shall publish, adverti se
or broadcast in any manner, written or oral, a telephone number, website address, or other
11
identifier, either by itself or connected to a rotary, redirect, or call forwarding system for
taxicab service, which is the same telephone number, website addres s, or other identifier,
as that for other taxicabs or vehicles for hire.
(c) No person who drives or operates a taxicab in the City shall use a name that
imitates a name used by another person who drives or operates a taxicab in such a
manner as to be misleading or tend to confuse or defraud the public.
(d) No person shall advertise or otherwise hold itself out as providing taxicab
services within the City, unless such person is operating pursuant to a taxicab franchise
awarded by the City.
6.49.070 Taxicab driver’s permits.
(a) Application. In order to obtain a taxicab driver’s permit, each person shall file
with the City, upon forms supplied by the City, a completed verified application including
the following information and documentation:
(1) Name, address, and age of applicant;
(2) Convictions, if any, in any court of law;
(3) Name, address, and certification of the taxicab franchisee by whom the
applicant is to be employed as a taxicab driver in the City;
(4) Proof of a valid California driver’s license;
(5) A signed agreement to submit to a background investigation and fingerprinting
via live-scan capture by the Police Department;
(6) Original test results from a certified laboratory or testing agency, submitted
simultaneously with the applicant’s verified application, proving that the applicant has
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tested negative for drugs and alcohol as provided by Section 53075.5(b)(3) of the
California Government Code; and
(7) Such further information as the City may require, as established by th e rules
and regulations.
(b) Taxicab Driver’s Permit Applicant Investigation. The Police Department
shall investigate each applicant for a taxicab driver’s permit and shall approve the
application or state its reason for disapproval. The City may disappr ove any applicant who
has a record of criminal conduct or other behavior involving any of the following:
(1) Moral turpitude;
(2) Violence toward persons or property;
(3) Physical or mental disease which could make the applicant a danger to the
safety of others;
(4) Illegal sexual conduct involving another nonconsenting person;
(5) Negligent or reckless driving;
(6) Operating a motor vehicle while under the influence of alcohol or drugs;
(7) Three or more moving violations under the California Vehicle Code within the
twelve-month period preceding the date of the application;
(8) Existing suspension or revocation of a taxicab driver’s permit in any other
jurisdiction as of the date of the application;
(9) Conviction of operating a taxicab without a valid taxicab driver’s permit or
taxicab vehicle license within the three-year period preceding the date of the application; or
13
(10) Acts showing the applicant to be otherwise incompetent or not fit to drive a
taxicab.
(c) Examination. Every applicant for a taxicab driver’s permit shall take an
examination, prepared and administered by the City, which tests the applicant’s
qualifications to operate a taxicab. The examination shall test the applicant’s: ability to
communicate in English; knowledge of and ability to locate, with the aid of a street atlas or
GPS device, street addresses and intersections in Santa Monica and surrounding cities in
the County of Los Angeles; and knowledge of the laws of the road. Failure to obtain a
passing score on the examination shall be cause for disapproval of an application.
(d) Taxicab Driver’s Permit Issuance. Based on the application, investigation and
examination, the City shall approve or deny the taxicab driver’s permit. No permit shall be
issued if the applicant is under the age of eighteen years, if any false statement appears in
the application, or if the application is otherwise incomplete. Upon approval of an
application and receipt by the City of the taxicab driver’s permit fee, the City shall issue a
taxicab driver’s permit to the applicant. The taxicab driver’s permit fee shall be established
by resolution of the City Council. The permit shall bear the name and photograph of the
applicant, date of expiration of the permit, and name of the taxicab franchisee for which the
driver is authorized to drive a taxicab.
(e) Taxicab Driver’s Permit Expiration and Renewal. All City issued Taxicab
driver’s permits shall expire on December 31, 2018, unless revoked, suspended or
terminated prior to that date. A taxicab driver’s permit which has not been revoked,
suspended, or terminated may be renewed annually by paying the annual taxicab driver’s
14
permit fee and by filing with the City a verification that the driver is in compliance with the
provisions of this Section and test results from a certified laboratory or testing agency
proving that the driver has tested negative for drugs and alcohol as provided by Section
53075.5(b)(3) of the California Government Code and U.S. Department of Transportation
program guidelines Part 49 CFR 40, 653 and 654, and any other applicable regulations.
(f) Effect of Termination of Employment. The taxicab driver’s permit shall
become void upon termination of employment, at which time the taxicab
franchisee-employer shall immediately give the City written notice of the termination and
the terminated driver shall immediately return his or her taxicab driver’s permit to the
franchisee, who in turn shall immediately return the permit to the City.
(g) Prohibition on Transfers. Taxicab driver’s permits are personal in nature and
shall not be transferred to another person. Any purported transfer shall be null and void.
(h) Grounds for Suspension and Revocation. Any taxicab driver’s permit and
any taxicab vehicle permit may be suspended o r revoked, after due notice and an
opportunity to be heard, for any of the following reasons:
(1) Arrest or citation for the commission of any crime while driving a taxicab or any
crime involving moral turpitude;
(2) Violation of any applicable rule or regulation, or Federal, State or local law
relating to the operation of taxicabs by a driver, or by an employer in the case of a taxicab
vehicle permit;
(3) Use of the taxicab driver’s permit for a purpose different from that for which it
was issued;
15
(4) Suspension or revocation of the driver or franchisee’s taxicab driver’s permit or
taxicab vehicle permit in another jurisdiction; and
(5) The existence of any facts, including conviction of a crime that is substantially
related to the qualifications, functions or duties of a taxicab driver, which would have been
good cause to deny such taxicab driver’s permit application, regardless of when such facts
arose.
6.49.080 Taxicabs—Identification and vehicle operating requirements.
(a) No person shall operate any taxicab without a distinctive and uniform color
scheme or identification which designates the taxicab franchisee under which said vehicle
is operated, and which has been approved by the City.
(b) No color scheme, insignia, name, monogram, logo, or identification shall conflict
with or imitate any color scheme, insignia, name, monogram, logo, or identification used by
another taxicab franchisee in such a manner as to be misleading or to tend to confuse or
defraud the public.
(c) Each taxicab operated pursuant to a franchise shall be identified as a City of
Santa Monica authorized taxicab by a taxicab identification decal issued by the City. No
person shall identify any vehicle by means of such taxicab identification decal, or any
facsimile thereof, unless authorized to do so by the City in writing.
(d) Every taxicab franchisee and taxicab driver shall comply with the following
operating requirements at all times:
(1) Maintain and keep an accurate and legible record of all passengers carried,
including the pickup and drop off points, the date and time carried, the starting and ending
16
mileage of the taxicab for each trip, the charges authorized and made for each trip, and
any other information as may be required by the City. Such record shall be retained for at
least one year at the business office of the taxicab franchisee and shall be available for
inspection by the City at all reasonable times and in accordance with the franchise
agreement and rules and regulations. Failure to comply with any reasonable request by the
City for inspection of such record shall be cause for revocation of the franchise;
(2) Display inside the taxicab and in full view of passengers, a valid taxicab driver’s
permit bearing the name and photograph of the taxicab dri ver and identifying the name of
the taxicab franchisee under which such taxicab is operated;
(3) Maintain in each taxicab a working two-way communication system with a
dispatcher;
(4) Obtain an annual vehicle inspection of each taxicab by a certified m echanic or
automotive repair dealer authorized by the City. Inspection records must be maintained in
the business office of the franchisee and shall be available for inspection by the City at all
reasonable times; and
(5) Permit any Police Officer of the City or other authorized enforcement officer
enforcing this Chapter to inspect any taxicab upon request.
(e) No person shall drive or operate a taxicab in the City into which passengers are
accepted unless the person is an owner or member of, employed b y, or an authorized
agent of a taxicab franchisee.
(f) Taxicabs may be driven pursuant to a contract, agreement, or understanding
between the franchisee and the driver. Such contract, agreement, or understanding shall
17
not relieve the franchisee from full and complete compliance with the applicable provisions
of the Code, rules and regulations adopted pursuant to this Chapter, and the franchise
agreement.
6.49.090 Parking of vehicles—Stands.
(a) No franchisee or driver shall permit any taxicab to stand while awaiting
employment at any place other than a stand designated by the City Parking and Traffic
Engineer.
(b) No taxicab driver shall leave a vehicle unattended in a stand for a period of time
longer than three minutes.
(c) Stands may be occupied at any time, except when standing, stopping or parking
at a particular stand is otherwise prohibited by law.
(d) Taxicab drivers may not stop in bus zones for purposes of loading or unloading
passengers unless there is no other practicable location to safely and expediently load or
unload such passengers.
6.49.095 Access to passengers on business establishment premises.
No owner, operator, employee or agent of any hotel or any other business
establishment shall exclude any taxicab driver operating pursuant to a franchise awarded
by the City from standing or picking up passengers at any taxicab stand, hack stand, or
other location where taxicabs or other vehicles for hire are regularly allowed to stand and
pick up passengers on the premises of the hotel or other business establishment.
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6.49.100 Taxicab signs.
Taxicab franchisees and taxicab drivers shall ensure that taxicabs display the
following signage:
(a) Two cards not less than two by four inches nor more than two and one -half by
five inches, in both the front seat and the rear seat in full view of passengers, which state
the following in letters and numbers which are clearly legible and in the following format:
(1) On the first card: the name, address and telephone number of the taxicab
franchisee which operates the taxicab and all rates to be charged; and
(2) On the second card: “COMPLAINTS? Call the City of Santa Monica’s Hotline,”
followed by the City’s hotline telephone number.
(b) Every taxicab shall have printed upon it, in lettering and numbering not less
than two and one-fourth inches in height and five sixteenths of an inch wide, the cab
number and the name and telephone number of the taxicab franchisee which operates the
taxicab. The telephone number and the cab number shall also be p rinted in a plainly visible
manner upon the rear of such vehicle.
(c) Every taxicab may have an electrically lighted identification or vacant sign, or a
combination of both, attached to the top of such taxicab, which shall be not more than two
and one-half inches high by nine inches in length.
(d) No taxicab shall display any sign other than those authorized in this Chapter.
6.49.110 Taximeters and rates.
(a) No taxicab shall be operated within the City unless it is equipped with a
taximeter approved by the City and that has been inspected and certified by the Los
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Angeles County Agricultural Commissioner/Weights and Measures, unless otherwise
exempted by the City in writing. Every taxicab franchisee and driver using any taximeter
shall at all times keep such meter accurate and in conformity with requirements of the
California Department of Agriculture.
(b) Taximeters are subject to inspection at any time by any police officer of the City
or any other authorized inspector, including the California Dep artment of Agriculture
Commissioner/Weights and Measures. Any vehicle equipped with an inaccurate taximeter
is subject to impound until said taximeter shall have been correctly adjusted, inspected,
and certified by the Los Angeles County Agricultural Commi ssioner/Weights and
Measures.
(c) Taximeters shall be placed so that the reading dial displaying the amount to be
charged is readily discernible by passengers.
(d) All rates to be charged for transportation by taxicabs, including both flat and
mileage rates, must be approved by, and be consistent with, resolution of City Council.
(e) All charges shall be based on rates established by the City, and no person shall
charge, collect, demand, receive, or arrange for any compensation for taxicab service an
amount that exceeds the charges or rates established and authorized by the City.
(f) Except where a flat rate is applicable, it is unlawful for a taxicab driver to do any
of the following:
(1) Set the taximeter in operation when such vehicle is not ac tually hired;
(2) Fail to set the taximeter to a nonrecording position at the termination of each
and every service or call the attention of the passenger to the amount registered;
20
(3) Fail to activate the taximeter while carrying passengers or under hire; or
(4) Activate or operate the taximeter so as to denote a rate of fare different from
that authorized pursuant to this Chapter.
(g) No driver of any taxicab upon receiving payment of a fare thereon shall refuse
to give a receipt upon the request of any passenger making said payment.
(h) It shall be unlawful to charge a discounted or flat rate other than that which has
been advertised or agreed to in advance with the passenger.
6.49.120 Full use of taxicab.
When a taxicab is engaged the occupant or occupants shall have the exclusive right
to the full and free use of the passenger compartment and no owner or driver of said
taxicab shall solicit or carry additional passengers therein without soliciting and receiving
the consent of the occupant or occupants. Nothing in this provision is intended to restrict
any franchisee from offering carpooling or ride sharing services.
6.49.130 Taxicab identification decal required.
(a) Every taxicab driver and franchisee shall ensure that a taxicab identifica tion
decal is displayed in each taxicab at all times. Such decal shall be issued and affixed by
the City to a specific area on the assigned taxicab as designated by the City.
(b) No person shall operate a taxicab without a current taxicab identification decal
for that specific vehicle.
(c) No taxicab identification decal issued shall be in any manner transferred or
assigned. Any decal that is transferred, assigned, or otherwise conveyed or stolen shall be
automatically revoked.
21
(d) No applicant may be issued a taxicab identification decal until that applicant has
paid all applicable fees and all of his, her or its outstanding parking citations, including all
civil penalties and related fees.
6.49.140 Penalty for violation.
(a) Except as otherwise provided in this Chapter, any person violating any provision
of this Chapter shall be guilty of either: (1) an infraction, which shall be punishable by a fine
of one hundred dollars for the first violation, two hundred dollars for a second violation
within one year, and five hundred dollars for a third and subsequent violations within one
year; or (2) a misdemeanor, which shall be punishable by a fine not exceeding one
thousand dollars per violation, or by imprisonment in the County Jail for a period not
exceeding six months, or by both such fine and imprisonment. Where the violation is of a
continuing nature, each day that the violation continues constitutes a separate and distinct
violation.
(b) Any police officer and other persons authorized by the City t o enforce this
Chapter are authorized under Sections 53075.6 and 53075.61 of the California
Government Code, Section 5411.5 of the California Public Utilities Code, Section 21100.4
of the California Vehicle Code and any other applicable State law, to impou nd and retain
any vehicle operating within the City as a taxicab without having a valid taxicab vehicle
permit or taxicab driver’s permit issued by the City, and/or a franchise granted by the City
to operate a taxicab service, in violation of this Chapter.
(c) Every person who operates a taxicab and who knowingly and willfully issues,
publishes or affixes, or causes or permits to be issued, published or affixed, any oral or
22
written advertisement, broadcast or holding out to the public or any portion there of, in any
manner whatsoever, that the person operates a taxicab company or an individual taxicab
without having a valid taxicab vehicle permit and franchise granted by the City is guilty of a
misdemeanor.
(d) Any person who, after due notice and an opportunity to be heard in accordance
with the provisions of Chapter 6.16, is found to have been operating a taxicab service
within the City without a valid taxicab vehicle permit or taxicab driver’s permit may in the
City’s discretion be required to pay a fine of not more than five thousand dollars for each
violation, plus any assessments and interest as authorized by law.
(e) The remedies specified in this Section are cumulative and their specification
shall not preclude the use of any other remedy provided by law.
6.49.150 Penalties for violations of rules and regulations.
Any person who violates a rule or regulation adopted pursuant to Section 6.49.020
may be subject to an administrative citation pursuant to Chapter 1.09 of this Code. A
taxicab franchisee shall be responsible for the violation of a rule or regulation by a taxicab
driver operating under that franchisee, and shall be deemed a responsible party within the
meaning of Section 1.09.020 of this Code.
23
Sections:
6.49.010 Definitions.
6.49.020 Authority of designated employees of the Police Department to
have access to summary criminal history information.
6.49.030 Taxicab Franchise—Grant of franchise.
6.49.040 Taxicab Franchise—Suspension or revocation.
6.49.050 Taxicab Franchise—Driver’s permit.
6.40.060 Taxicab Franchise—Fees.
6.49.070 Taxicab Franchise—Signage.
6.49.080 Taxicab Franchise—Identification decal required.
6.49.090 Taximeters and rates.
6.49.100 Parking of vehicles—Stands.
6.49.110 Taxicab identification and vehicle operating requirements.
6.49.120 Full use of taxicab.
6.49.130 Access to passengers on business establishment premises;
exclusive arrangements limited.
6.49.140 Unauthorized taxicab services prohibited; exception.
6.49.150 Rules and regulations.
6.49.160 Penalty for violation.
6.49.170 Penalties for violations of rules and regulations.
6.49.010 Definitions.
For the purposes of this Chapter certain words and phrases are defined and certain
provisions shall be construed as herein set forth, unless it is apparent from the context that
a different meaning is intended.
(a) Stand. “Stand” means a place designated by the City Engineer for use by any
taxicab permitted hereunder by the City while awaiting employment.
(b) Taxicab. “Taxicab” means every automobile and motor-propelled vehicle
which is not otherwise licensed by the California Public Utilities Commission, is designed to
carry not more than eight persons, excluding the driver, is not otherwise required by State
Law to have all trips prearranged, and is used for the transportation of passengers for hire
within and without the boundaries of the City, at rates for distance traveled, or for waiting,
24
standby or traffic delay time, or for any combination of such rates, and not operating over a
defined route.
(c) Taxicab Franchisee or Franchisee. “Taxicab franchisee” or “franchisee”
means any person, firm, corporation, or other entity, however organized, including the
management and officers thereunder, that is substantially located in and has been granted
a franchise by the City to provide taxicab transportation services.
(d) Taxicab Driver. “Taxicab driver” means a driver who works for a taxicab
franchisee or is a self-employed, independent taxicab franchisee, unless the context
indicates otherwise.
(d) Taximeter. “Taximeter” means any device or technology that automatically
calculates a predetermined rate or rates for taxicab services and indicates the charge for
the hire of a taxicab, including Internet, Web, or other network -based applications.
Taximeters may use Global Position System metering and also facilitate flat rates or
promotional rates.
6.49.020 Authority of designated employees of the Police Department to have
access to summary criminal history information.
Police Department employees assigned to or having responsibility for permitting and
licensing pursuant to this Chapter shall have the authority to obtain State and local
summary criminal history information pursuant to Sections 11105(b)(11) and 13300(b)(11)
of the California Penal Code.
25
6.49.030 Taxicab Franchise—Grant of franchise.
(a) The City may grant nonexclusive franchises in accordance with Article XVI of
the Charter of the City for the operation of taxicab services within the City. In order for a
taxicab company to be eligible for a franchise grant, t he taxicab company must provide
documentation of the following consistent with applicable State law, this Chapter, and the
City’s requirements: (1) the taxicab company is substantially located in the City; (2)
established fares, fees, or rates to be charged to the customer; (3) participation in the pull-
notice program; (4) financial responsibility; (5) a safety and disabled access education and
training program; (6) the motor vehicles to be used for taxicab transportation services are
in safe operating condition and have passed inspection by the City; (7) the address of an
office or terminal where all documents pertaining to taxicab transportation services may be
inspected by the City; and (8) provision of a taxicab driver fingerprint-based criminal history
check and a mandatory drug and alcohol testing program .
(b) Taxicabs may be driven pursuant to a contract, agreement, or understanding
between the franchisee and the driver. Such contract, agreement, or understanding shall
not relieve the franchisee from f ull and complete compliance with the applicable provisions
of the Code, rules and regulations adopted pursuant to this Chapter, and the franchise
ordinance.
6.49.040 Taxicab Franchise—Suspension or revocation.
(a) Suspension. The City may, after due notice and an opportunity to be heard,
suspend a taxicab franchisee’s operations for one or more days if, in the judgment of the
City, a lapse in required insurance or any other violation of the terms and conditions of the
26
franchise ordinance or the provisions of this Chapter; or a violation of any administrative
rules and regulations established by the City, orders or directives established by the City,
or applicable State law, creates an immediate safety hazard. Cause for suspension also
exists where the holder of a majority interest in the taxicab franchise or the taxicab
franchisee illegally conducts any type of vehicle for hire or public transportation operation
licensed by the City or any other governmental agency, or the franchisee fails to pay any
monetary penalties in accordance with this Chapter, the terms and conditions of the
franchise, or any resolutions or schedules adopted thereto.
(b) Revocation. The City may, after due notice and an opportunity to be heard,
revoke a franchise in the event that the franchisee, including its employees, officers,
agents and drivers: violates any terms and conditions of the franchise ordinance; fails to
cure any default within the time required as provided in the franchise ordinance; violates
subdivision (d) of this Section; violates or commits multiple violations of any provision of
this Chapter or any other law, rule, regulation, order or filings of any regulatory body having
jurisdiction over the franchisee; or practices, or attempts to practice, any fraud or deceit
upon any governmental agency or regulatory body.
(c) The franchisee may appeal any decision from the City to suspend or revoke
to a Hearing Examiner for consideration pursuant to this Section. The matter will be set for
a hearing and the City shall give the franchisee at least 30 days’ written notice of the time
and place of the hearing. At the hearing, the Hearing Examiner shall consider all relevant
evidence and testimony and if supported by a preponderance of the evidence, the Hearing
Examiner may, in his or her discretion, order the franchisee to take remedial actions or
27
impose any other remedy as authorized by law, including, but not limited to, suspension for
a designated period of time; or revocation of the franchise. The decision or order of the
Hearing Examiner shall be final and binding and subject only to judicial review.
(d) Effect of Suspension or Revocation. Upon suspension or revocation of a
franchise, all the franchisee’s taxicab operations in the City shall cease until such time as
the suspension or revocation is lifted. Upon revocation of any taxicab franchise, no
franchise to operate the same business activity shall be granted to the franchisee within the
remainder of the term or extension term of the franchise ordinance and for a period of
three years thereafter.
6.49.050 Taxicab Franchise—Driver’s permit.
(a) Application. In order to obtain a taxicab driver’s permit, each person shall file
with the City, upon forms supplied by the City, a completed verified application including
the following information and documentation:
(1) Name, address, and age of applicant;
(2) Convictions, if any, in any court of law;
(3) Name, address, and certification of the taxicab franchisee by whom
the applicant is to be employed as a taxicab driver in the City;
(4) Proof of a valid California driver’s license;
(5) A signed agreement to submit to a background investigation and
fingerprinting via live-scan capture by the Police Department;
(6) Original test results from a certified laboratory or testing agency,
submitted simultaneously with the applicant’s verified application, proving that the
28
applicant has tested negative for drugs and alcohol as provided by Section
53075.5(b)(3) of the California Government Code; and
(7) Such further information as the City may require, as established by the
rules and regulations.
(b) Taxicab Driver’s Permit Applicant Investigation. The Police Department
shall investigate each applicant for a taxicab driver’s permit and shall approve the
application or state its reason for disapproval. The City may disapprove any applicant who
has a record of criminal conduct or other behavior involving any of the following:
(1) Moral turpitude;
(2) Violence toward persons or property;
(3) Physical or mental disease which could make the applica nt a danger
to the safety of others;
(4) Illegal sexual conduct involving another nonconsenting person;
(5) Negligent or reckless driving;
(6) Operating a motor vehicle while under the influence of alcohol or
drugs;
(7) Three or more moving violations unde r the California Vehicle Code
within the 12-month period preceding the date of the application;
(8) Existing suspension or revocation of a taxicab driver’s permit in any
other jurisdiction as of the date of the application;
29
(9) Conviction of operating a taxicab without a valid taxicab driver’s permit
or taxicab vehicle permit within the three-year period preceding the date of the
application; or
(10) Acts showing the applicant to be otherwise incompetent or not fit to
drive a taxicab.
(c) Taxicab Driver’s Permit Issuance. Based on the application, investigation
and compliance with all requirements of Section 53075.5(b)(3) of the California
Government Code, the City shall approve or deny the taxicab driver’s permit. No permit
shall be issued if the applicant is under the age of eighteen years, if any false statement
appears in the application, or if the application is otherwise incomplete. Upon approval of
an application and receipt by the City of the taxicab driver’s permit fee, the City shall issue
a taxicab driver’s permit to the applicant. The permit shall bear the name and photograph
of the applicant, date of expiration of the permit, and name of the taxicab franchisee for
which the driver is authorized to drive a taxicab.
(d) Taxicab Driver’s Permit Renew al. A taxicab driver’s permit which has not
been revoked, suspended, or terminated may be renewed annually by paying the annual
taxicab driver’s permit fee and by filing with the City a verification that the driver is in
compliance with the provisions of this Section and test results from a certified laboratory or
testing agency proving that the driver has tested negative for drugs and alcohol as provided
by Section 53075.5(b)(3) of the California Government Code and U.S. Department of
Transportation program guidelines set forth in 49 CFR Parts 40, 653, and 654, and any
other applicable regulations.
30
(e) Effect of Termination of Employment. The taxicab driver’s permit shall
become void upon termination of employment, at which time the taxicab franchisee shall
immediately give the City written notice of the termination and the terminated driver shall
immediately return his or her taxicab driver’s permit to the City.
(f) Prohibition on Transfers. A taxicab driver’s permit is personal in nature and
shall not be transferred to another person. Any purported transfer shall be null and void.
(g) Grounds for Suspension and Revocation. Any taxicab driver’s permit and
any taxicab vehicle permit may be suspended or revoked, after due notice and an
opportunity to be heard, for any of the following reasons:
(1) Arrest or citation for the commission of any crime while driving a
taxicab or any crime involving moral turpitude;
(2) Violation of any applicable rule or regulation, or Federal, State or local
law relating to the operation of taxicabs by a driver, or by an employer in the case of
a taxicab vehicle permit;
(3) Use of the taxicab driver’s permit for a purpose different from that for
which it was issued;
(4) Suspension or revocation of the driver or franchisee’s taxicab driver’s
permit or taxicab vehicle permit in another jurisdiction; and
(5) The existence of any facts, including conviction of a crime that is
substantially related to the qualifications, functions or duties of a taxicab driver,
which would have been good cause to deny such taxicab driver’s permit application,
regardless of when such facts arose.
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6.40.060 Taxicab Franchise—Fees.
(a) Annual Franchise Fee. Each taxicab franchisee shall pay to the City an
annual fee, established by resolution of the City Coun cil, to cover the City’s costs of
administering taxicab transportation services in the City. Such payment shall be in addition
to any other prescribed fees, including but not limited to, business license and permit fees.
The franchise fee shall be due, wit hout set off or deduction, upon grant of the franchise
and payable on each anniversary date thereafter, unless otherwise as specified in the
franchise ordinance. Failure to pay the full franchise fee when due shall be cause for
revocation of the franchise.
(b) Annual Taxicab Vehicle Permit Fee. Each taxicab franchisee shall be
required annually to obtain a taxicab vehicle permit and to pay to the City an annual taxicab
vehicle permit fee, established by resolution of the City Council, for each taxicab operating
under its franchise.
(c) Annual Taxicab Driver’s Permit Fee. Each taxicab driver shall be required
annually to renew his or her taxicab driver’s permit and the franchisee or driver shall pay to
the City an annual taxicab driver’s permit fee, established by resolution of the City Council.
(d) No fee refunds shall be issued to any franchisee upon revocation of a
franchise, or to any driver upon revocation of a taxicab driver’s permit.
6.49.070 Taxicab Franchise—Signage.
Taxicab franchisees and taxicab drivers shall ensure that taxicabs display the
following signage:
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(a) Two cards not less than two by four inches nor more than two and one -half
by five inches, in both the front seat and the rear seat in full view of passengers, which
state the following in letters and numbers which are clearly legible and in the following
format:
(1) On the first card: the name, address and telephone number of the
taxicab franchisee which operates the taxicab and all rates to be charged; and
(2) On the second card: “COMPLAINTS? Call the City of Santa Monica’s
Hotline,” followed by the City’s hotline telephone number.
(b) Every taxicab shall have printed upon it, in lettering and numbering not less
than two and one-fourth inches in height and five sixteenths of an inch wide, the cab
number and the name and telephone number of the taxicab franchisee which operates the
taxicab. The telephone number and the cab number shall also be printed in a plainly visible
manner upon the rear of such vehicle.
(c) Every taxicab may have an electrically lighted identification or vacant sign, or
a combination of both, attached to the top of such taxicab, which shall be not more than
two and one-half inches high by nine inches in length.
(d) No taxicab shall display any sign other than those auth orized in this Chapter.
6.49.080 Taxicab Franchise—Identification decal required.
(a) Each taxicab operated pursuant to a franchise shall be identified as a City of
Santa Monica authorized taxicab by a taxicab identification decal issued by the City. No
person shall identify any vehicle by means of such taxicab identification decal, or any
facsimile thereof, unless authorized to do so by the City in writing.
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(b) Every taxicab driver and franchisee shall ensure that a taxicab identification
decal is displayed in each taxicab at all times. Such decal shall be issued and affixed by
the City to a specific area on the assigned taxicab as designated by the City.
(c) No taxicab driver or franchisee shall operate a taxicab without a current
taxicab identification decal for that specific vehicle.
(d) No taxicab identification decal issued shall be in any manner transferred or
assigned. Any decal that is transferred, assigned, or otherwise conveyed or stolen shall be
automatically revoked.
(e) No applicant may be issued a taxicab identification decal until that applicant
has paid all applicable fees and all of his, her or its outstanding parking citations, including
all civil penalties and related fees.
6.49.090 Taximeters and rates.
(a) No taxicab shall be operated within the City unless it is equipped with a
taximeter that is approved by the California Division of Measurement Standards and
complies with Section 12500.5 of the California Business and Professions Code and with
all regulations established pursuant to Se ction 12107 of the California Business and
Professions Code.
(b) Taximeters are subject to inspection at any time by any police officer of the
City or any other authorized inspector, including the California Department of Agriculture
Commissioner/Weights and Measures. Any vehicle equipped with an inaccurate taximeter
is subject to impound until said taximeter shall have been correctly adjusted, inspected,
34
and certified by the Los Angeles County Agricultural Commissioner/Weights and
Measures.
(c) Taximeters shall be placed so that the reading dial displaying the amount to
be charged is readily discernible by passengers.
(d) All rates to be charged for transportation by taxicabs pursuant to a franchise,
including both flat and mileage rates, may not exceed the maximum rates established by
resolution of City Council. No franchisee shall charge, collect, demand, receive, or arrange
for any compensation for taxicab service in an amount that exceeds said maximum rates.
(e) Each taxicab company and taxicab driver sh all disclose all rates to the
customer before providing taxicab services.
(f) Except where a flat rate is applicable, it is unlawful for a taxicab driver to do
any of the following:
(1) Set the taximeter in operation when such vehicle is not actually hired ;
(2) Fail to set the taximeter to a nonrecording position at the termination
of each and every service or call the attention of the passenger to the amount
registered;
(3) Fail to activate the taximeter while carrying passengers or under hire;
or
(4) Activate or operate the taximeter so as to denote a rate of fare
exceeding that authorized pursuant to this Chapter or by the permitting
governmental agency.
35
(g) No driver of any taxicab upon receiving payment of a fare thereon shall
refuse to give a receipt upon the request of any passenger making said payment.
(h) It shall be unlawful to charge a discounted or flat rate other than that which
has been advertised or agreed to in advance with the passenger.
6.49.100 Parking of vehicles—Stands.
(a) No franchisee or driver shall permit any taxicab to stand while awaiting
employment at any place other than a stand designated by the City Traffic Engineer.
(b) No taxicab driver shall leave a vehicle unattended in a stand for a period of
time longer than three minutes.
(c) Stands may be occupied at any time, except when standing, stopping or
parking at a particular stand is otherwise prohibited by law.
(d) Taxicab drivers may not stop in bus zones for purposes of loading or
unloading passengers unless there is no other practicable location to safely and
expediently load or unload such passengers.
(e) No person shall occupy a stand without a valid taxicab driver’s permit and
vehicle permit issued by the City pursuant to a franchise.
6.49.110 Taxicab identification and vehicle operating requirements.
(a) No taxicab company shall operate any taxicab without a distinctive and
uniform color scheme or identification which designates the taxicab company under which
said vehicle is operated.
(b) No taxicab company shall use any color scheme, insignia, name, monogram,
logo, or identification that conflicts with or imitates any color scheme, insignia, name,
36
monogram, logo, or identification used by another taxicab company in such a manner as to
be misleading or to tend to confuse or defraud the public.
(c) Every taxicab company and taxicab driver shall comply with the following
operating requirements at all times:
(1) Maintain and keep an accurate and legible record of all passengers
carried, including the pickup and drop off point s, the date and time carried, the
starting and ending mileage of the taxicab for each trip, and the charges authorized
and made for each trip;
(2) Display inside the taxicab and in full view of passengers, a valid
taxicab driver’s permit bearing the name and photograph of the taxicab driver and
identifying the name of the taxicab company under which such taxicab is operated;
(3) Maintain in each taxicab a working two-way communication system
with a dispatcher;
(4) Obtain an annual vehicle inspection of eac h taxicab at a facility
certified by the National Institute for Automotive Service or a facility registered with
the Bureau of Automotive Repair; and
(5) Permit any Police Officer of the City or other authorized enforcement
officer enforcing this Chapter to inspect any taxicab upon request.
6.49.120 Full use of taxicab.
When a taxicab is engaged the occupant or occupants shall have the exclusive right
to the full and free use of the passenger compartment and no owner or driver of said
taxicab shall solicit or carry additional passengers therein without soliciting and receiving
37
the consent of the occupant or occupants. Nothing in this provision is intended to restrict
any taxicab company from offering carpooling or ride sharing services.
6.49.130 Access to passengers on business establishment premises; exclusive
arrangements limited.
(a) No owner, operator, employee or agent of any hotel or any other business
establishment shall exclude any taxicab driver operating pursuant to a franchise granted by
the City from standing or picking up passengers at any taxicab stand, hack stand, or other
location where taxicabs or other vehicles for hire are regularly allowed to stand and pick up
passengers on the premises of the hotel or other business establishment.
(b) Each taxicab 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 for the purpose
of obtaining exclusive access to the business’ patrons seeking on -demand taxicab
services. 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. Nothing in this Section prohibits exclusive arrangements with any
business establishment for the purpose of providing pre -arranged transportation services
for events with multiple participants, employee shuttle services, carpooling services, or
other arrangement approved in advance by the City to the extent consistent with the
requirements of this Chapter.
38
6.49.140 Unauthorized taxicab services prohibited; exception.
(a) No person shall knowingly dispatch a vehicle or respond to a request for a
“taxi,” “cab” or “taxicab” for pick-up within the City, or pick up passengers within the City for
taxicab services, unless the vehicle has a valid taxicab vehi cle permit, the driver of such
vehicle has a valid taxicab driver’s permit, and the taxicab is operated pursuant to a
franchise granted by the City.
(b) Notwithstanding subdivision (a) above, a taxicab company or taxicab driver
that is lawfully permitted by a governmental agency to operate in Los Angeles County may
provide prearranged trips anywhere within the City.
(c) No person who drives or operates a taxicab in the City shall publish, advertise
or broadcast in any manner, written or oral, a telephone nu mber, website address, or other
identifier, either by itself or connected to a rotary, redirect, or call forwarding system for
taxicab service, which is the same telephone number, website address, or other identifier,
as that for other taxicabs or vehicles for hire.
(d) No person who drives or operates a taxicab in the City shall use a name that
imitates a name used by another person who drives or operates a taxicab in such a
manner as to be misleading or tend to confuse or defraud the public.
(e) No person shall advertise or otherwise hold itself out as providing taxicab
services within the City, unless such person is operating pursuant to a taxicab franchise
granted by the City or is lawfully permitted by a governmental agency to provide
prearranged trips in the City.
39
6.49.150 Rules and regulations.
The Director of Planning and Community Development or designee is authorized to
adopt administrative rules and regulations consistent with this Code and applicable State
law necessary to implement this Chapter and the franchise ordinances. Such rules and
regulations may include, but are not limited to, provisions: governing taxicab service and
safety; prescribing limitations, conditions and qualifications of applicants for vehicle permits
and driver permits; stipulating the responsibilities of taxicab franchisees and their drivers;
and pertaining to public health, safety, and welfare. Violations of the administrative rules
and regulations adopted pursuant to this section shall constitute violations of this Chapt er,
and shall subject the violator to the penalties set forth in this Chapter.
6.49.160 Penalty for violation.
(a) Except as otherwise provided in this Chapter, any person violating any
provision of this Chapter shall be guilty of either: (1) an infracti on, which shall be
punishable by a fine of one hundred dollars for the first violation, two hundred dollars for a
second violation within one year, and five hundred dollars for a third and subsequent
violations within one year; or (2) a misdemeanor, which shall be punishable by a fine not
exceeding one thousand dollars per violation, or by imprisonment in the County Jail for a
period not exceeding six months, or by both such fine and imprisonment. Where the
violation is of a continuing nature, each day that the violation continues constitutes a
separate and distinct violation.
(b) Any police officer and other persons authorized by the City to enforce this
Chapter are authorized under Sections 53075.6 and 53075.61 of the California
40
Government Code, Section 5411.5 of the California Public Utilities Code, Section 21100.4
of the California Vehicle Code and any other applicable State law, to impound and retain
any vehicle operating within the City as a taxicab without having any valid permits, and/or a
franchise granted by the City to operate a taxicab service, in violation of this Chapter.
(c) Every person who operates a taxicab and who knowingly and willfully issues,
publishes or affixes, or causes or permits to be issued, published or affixed, any oral or
written advertisement, broadcast or holding out to the public or any portion thereof, in any
manner whatsoever, that the person operates a taxicab company or an individual taxicab
without having any valid permits is guilty of a misdemeanor.
(d) Any person who, after due notice and an opportunity to be heard in
accordance with the provisions of Chapter 6.16, is found to have been operating a taxicab
service within the City without any valid permits may in the City’s discretion be required to
pay a fine of not less than five thousand dollars for each violation, plus any assessments
and interest as authorized by law, as set forth by resolution of the City Council.
(e) The remedies specified in this Section are cumulative and their specification
shall not preclude the use of any other remedy provided by law.
6.49.170 Penalties for violations of rules and regulations.
Any person who violates a rule or regulation adopted pursuant to Section 6.49.020
may be subject to an administrative citation pursuant to Chapter 1.09 of this Code. A
taxicab company shall be responsible for the violation of a rule or regulation by a taxicab
driver operating under that company, and shall be deemed a responsible party within the
meaning of Section 1.09.020 of this Code.
41
SECTION 2. Any provision of the Santa Monica Municipal Code or appendices
thereto inconsistent with the provisions of this Ordinance, to the extent of such
inconsistencies and no further, is hereby repealed or modified to that extent necessary to
effect the provisions of this Ordinance.
SECTION 3. 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 validit y 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.
SECTION 4. 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 o fficial
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
1
City Council Meeting: October 23, 2018 Santa Monica, California
RESOLUTION NUMBER _________ (CCS)
(City Council Series)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA
SETTING TAXICAB FRANCHISE FEES, VEHICLE PERMIT FEES,
AND TAXIMETER RATES
WHEREAS, the City of Santa Monica manages taxicab franchises and regulates
taxicab operations to ensure safe, effective and efficient taxicab services that meet a
common standard of care; and
WHEREAS, the City Council of the City of Santa Monica (“Council’) is authorized
to set annual taxicab franchise fees, annual taxicab vehicle permit fees, and annual
taxicab driver permit fees; and
WHEREAS, Council is authorized to set maximum taximeter rates;
WHEREAS, the annual taxicab franchise and permit fees are set at an amount
that covers the City’s costs to administer taxicab transportation services in the City; and
WHEREAS, on November 9, 2010, Council adopted Resolution No. 10542 (CCS)
establishing annual taxicab franchise fees and taximeter rates; and
WHEREAS, on June 28, 2011, Council adopted Resolution No. 10591 (CCS),
modifying the taximeter rates; and
WHEREAS, on September 27, 2011, Council adopted Resolution No. 10615
(CCS), modifying the taximeter rates; and
2
WHEREAS, on June 25, 2013; Council adopted Resolution No. 10753 (CCS),
setting forth the annual taxicab franchise fees and taximeter rates; and
WHEREAS, on November 10, 2015 ; Council adopted Resolution No. 10924
(CCS), setting forth the annual taxicab franchise fees and taximeter rates; and
WHEREAS, on June 12, 2018, Council adopted Resolution No. 11121 (CCS),
setting forth the City’s master fee resolution, including Exhibit M – Planning and
Community Development – Taxis, setting forth the annual taxicab franchise fees and
taximeter rates; and
WHEREAS, experience in administering the taxicab franchise program , including
the continuing competition from Transportation Network Companies, suggests that
reductions in certain fees are appropriate to reduce cost burdens on the City’s permitted
taxicab drivers; and
WHEREAS, Government Code section 53075.5, subdivision (c), provides that
the City’s levy of any service charges, fees, or assessment are limited to an amount
sufficient to pay for the costs of carrying out an ordinance or resolution adopted in
regard to taxicab transportation services; and
WHEREAS, Government Code section 53075.5, subdivision (b)(2), authorizes
the City to set maximum taxicab rates.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA
DOES RESOLVE AS FOLLOWS:
SECTION 1. The following annual taxicab franchise fee, vehicle permit fees, and
taxicab driver permit fees are hereby adopted:
3
Franchise Fees:
Annual base franchise fee per taxicab company $ 5,000.00
Annual Franchise Fee per Vehicle in Taxicab Fleet: $ 452.00
The per vehicle fees are in addition to the base franchise fee.
Vehicle Permit Fees:
New vehicle permit fee $135.34
Transfer vehicle permit fee $135.34
Renewal vehicle permit fee $ 61.62
Replacement vehicle permit fee $ 43.50
Vehicle re-inspection fee $ 33.83
Taxicab Driver’s Permit Fees:
New and renewal taxicab driver’s permit application fee $ 48.00
Taxicab driver’s permit replacement fee $ 33.83
New taxicab driver permit fees shall be prorated monthly based on the number of
calendar months remaining until the permit expires in accordance with Santa Monica
Municipal Code Section 6.49.050(d).
Fees are due as follows:
Driver permit renewal fees are due between November 1st and December
31st of each year.
Vehicle Franchise Fees are due on January 1st of each year.
If a due date falls on a weekend day or holiday, the due date is the next City
of Santa Monica business day.
SECTION 2. The following maximum taximeter and flat rates are established:
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
4
SECTION 3. If there are any conflicts between the fees and rates adopted in this
Resolution and any adopted prior resolution or schedule, the fees an d rates adopted
through this Resolution shall take precedence.
SECTION 4. The City Clerk shall certify to the adoption of this Resolution, and
thenceforth and thereafter the same shall be in full force and effect.
APPROVED AS TO FORM:
_________________________
LANE DILG
City Attorney
Item 7-B
10/23/18
1 of 3 Item 7-B
10/23/18
Item 7-B
10/23/18
2 of 3 Item 7-B
10/23/18
Item 7-B
10/23/18
3 of 3 Item 7-B
10/23/18
Ta xicab Franchise Update
Council Item 7B.
October 23, 2018
Introduction
Ø Changes in State law require City to update taxi
ordinance by January 1, 2019.
•Assembly Bill 1069 enacted October 2017
•Assembly Bill 939 enacted September 2018
Recommendation
Ø Amending Chapter 6.49 of Santa Monica
Municipal Code modifying taxicab franchise
regulations
Ø Adopting resolution establishing taximeter rates
History of Franchise
Ø Ta xicab franchise created in 2009
Ø In 2010, Council granted franchises to five
taxicab companies
Ø In 2015, Council granted a two year extension
Ø In 2017, Council granted a reduction in the
number of vehicles and a one year extension
Current Franchise Operations
Ø Four taxicab companies (Metro Cab forfeited franchise
in January 2018)
Ø Provided ~150,000 trips in 2017, down 80% since 2013
Ø Revenue down 64% since 2013
Ø Authorized vehicles 156, permitted vehicles 137
Ø Half of permitted vehicles provide service in other
jurisdictions
Substantive State Changes to Local
Taxicab Regulation, eff. Jan 2019
1.Limits regulation to companies “substantially located”
in a jurisdiction.
2.Allows companies permitted in other jurisdictions to
provide prearranged trips.
3.Limits regulation of taximeter rates giving companies
greater flexibility.
4.Allows cities to set operating requirements not related
to permitting and or business licensing.
Changes to Taxi Regulation
Update to Ordinance
1.Limits regulation to companies “substantially located” in
a jurisdiction.
•Ordinance updated to reflect non-competitive process
to obtain a franchise.
•Ta xi! Taxi! is currently the only company that meets
substantially located definition.
•Any company may become substantially located –
companies have expressed desire to meet this
requirement.
2. Any company permitted within LA County may pick up
prearranged trips.
•Bell Cab, Independent and Ye llow Cab provide 40%
of all Santa Monica trips.
•Expected to continue providing prearranged trips here.
•Other companies currently providing trips.
surrounding communities may start providing
prearranged trips.
Changes to Taxi Regulation
Update to Ordinance
Changes to Taxi Regulation
Update to Ordinance
3.Ta xicab companies have flexibility on setting fares. City
may set maximum rate.
•Fares currently set by Council resolution.
•Bill allows companies to set rates and fees and adjust
with demand.
•Ta xi! Taxi! would like to maintain current rates with
option to adjust.
•Staff in discussion with regional taxicab administrators
to set a consistent maximum rate across jurisdictions.
Changes to Taxi Regulation
Update to Ordinance
4.City may set operating requirements, such as use of
taxi stands and street hails.
•Currently all franchisees have access to stands and
street hails.
•Going forward, LA County permitted companies
may not use stands or pick up street hails.
•LA County is not considering sharing their stands
with non permitted companies.
Taxi Regulation
Ø Government Code Section 53075.5(d)(2) –A c ity or
county may accept a taxicab company or driver permit
issued by another city, and may issue a sticker or photo
permit that authorizes company or driver to operate.
•Bell Cab and Ye llow Cab want to provide taxicab
service in Santa Monica through this option. Other
permitted companies may as well.
•Companies are able to provide any pre-arranged trip.
•Staff has concerns about curb use and administrative
burden.
Driver Test
Ø Currently, a test is required for all new taxi driver
permit applicants
•Staff recommends to discontinue driver permit test
•Few new applicants; causes driver delay
•City of LA stopped requiring tests in 2016
Taxicab Franchise Fees
Ø Recommend franchise fees to remain unchanged (except
those annually adjusted by CPI)
Ø Current and project revenue will not recover the full cost
of administering the program.
Fee Quantity
(current)
Total
(current)
Quantity
(projected)
Total
(projected)
Franchise Fee $5,000 1 $5,000 1 $5,000
Vehicle Fee $452 39 $17,628 50 $22,600
Renew Vehicle Fee $61.62 39 $2,403 50 $3,081
Driver Permit Renewal Fee $48 50 $2,400 70 $3,360
TOTAL REVENUE $27,431 $34,041
Ø Return to Council on November 13, 2018 to propose
extending Taxi! Taxi!’s franchise ordinance for
another 5 years.
Ø Return to Council on November 13, 2018 to propose
revisions to administrative citation fines consistent
with State law.
Ø Implement regulatory and administrative changes.
Ø Update Administrative Rules and issue no later than
December 31, 2018.
Next Steps
Recommendation
Ø Amend Chapter 6.49 of Santa Monica Municipal
Code modifying taxicab franchise regulations
Ø Adopt resolution establishing taximeter rates
REFERENCE:
Resolution No. 11146
(CCS)