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RPVCCA_CC_SR_2015_03_03_06_Imposition_of_Regulations_on_TaxicabsCITYOF MEMORANDUM RANCHO PALOS VERDES TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS FROM: CAROL W. LYNCH, CITY ATTORNEY DATE: MARCH 3, 2015 SUBJECT: IMPOSITION OF REGULATIONS ON TAXICABS REVIEWED: CAROLYNN PETRU, DEPUTY CITY MANAGER® RECOMMENDATION 1) Introduce the attached ordinance, which imposes parking restrictions on taxicabs and prohibits false advertising, and 2) Direct staff to return with a resolution establishing citation penalty amounts for violations. BACKGROUND Residents have raised concerns about taxicabs being parked in residential areas waiting for calls for service. The area of the City that seems to be most affected is the residential area immediately to the east of the Terranea Resort. In addition, taxicabs displaying the City's logo have been observed in the City. Residents and Staff are concerned that the public could be misled by this signage and will believe that the taxicabs are affiliated with the City. In response to concerns that have been raised, Mayor Knight has proposed that an ordinance be adopted that will address these issues. DISCUSSION Cities that are large (such as Los Angeles) or have many attractions or points of interest that attract tourists (such as Beverly Hills and Santa Monica) have adopted ordinances that require taxicab operators to obtain a franchise from the cities in order to operate within their respective jurisdictions. The franchise ordinances typically impose a broad array of regulations that are primarily designed to protect consumers. These regulations also impose a corresponding burden on the city because staff must administer the ordinance, and each taxicab operator that wishes to obtain a franchise must submit a detailed application for review and a determination whether the applicant qualifies for 6-1 Imposition of Regulations on Taxicabs Page 2 March 3, 2015 the issuance of a franchise agreement. In addition, franchise agreements can be revoked, if taxicab operators fail to comply with the franchise agreement. At this point, the complaints that have been received by the City have focused on two areas, which are the parking of taxicabs in residential areas while waiting to be called to pick up a passenger and the use of the City logo on some taxicabs, which could mislead the public. Based upon these concerns, Mayor Knight has proposed that the City adopt an ordinance that focuses on those two issues. If other issues regarding taxicabs arise in the future so that more comprehensive regulation of taxicabs is needed, the City then could adopt an ordinance that requires taxicab operators to obtain a franchise agreement from the City. The proposed ordinance amends the Municipal Code by prohibiting taxicabs from parking on streets or alleys in the City, except when they are actively loading and unloading passengers and their possessions or waiting for the payment of their fare, and on properties owned by the City. The ordinance also prohibits the use of the City logo or any other signage that could cause a reasonable person to believe that the taxicab is affiliated with or endorsed by the City. If the City Council introduces the ordinance, Staff will prepare a resolution for adoption at a future meeting that imposes penalties for violations of the ordinance. FISCAL IMPACT The fiscal impact to the City of adopting the attached ordinance appears to be minimal. In addition, if citations are issued to taxicabs that violate the ordinance, the City will receive the majority of the revenue from the citations. CONCLUSION Staff recommends that the City Council introduce the attached ordinance. ALTERNATIVES 1. The City Council could direct the City Attorney's Office to prepare an ordinance that requires taxicab operators to obtain a franchise in order to operate in the City 2. The City Council could determine not to adopt the attached ordinance. 3. The City Council could direct that amendments be made to the ordinance. Attachment: Draft ordinance 6-2 ORDINANCE NO. AN ORDINANCE OF THE CITY OF RANCHO PALOS VERDES ESTABLISHING TAXICAB PARKING RESTRICTIONS AND PROHIBITING FALSE ADVERTISING ON TAXICABS THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES ORDAINS AS FOLLOWS: Section 1. Chapter 10.04 of Title 10 of the Rancho Palos Verdes Municipal Code is hereby amended by adding new Section 10.04.100 thereto to read as follows: 10,04.100 Taxicabs (a) Taxicab means any motor -propelled vehicle which is designed to carry not more than eight persons, excluding the driver, and is either equipped with a taximeter or a top light or has the words "taxi," "cab" or "taxicab" displayed on the exterior of the vehicle, and is used for the transportation of passengers for hire within and without the boundaries of the City, for which a fee is charged and that does not operate over a defined route. (b) Taxicab Zone or Hack Stand means an area on private property (such as a hotel) designated by the property owner for parking taxicabs while waiting for passengers. (c) Taxicab Parking: Taxicabs may only park in a taxicab zone or hack stand on private property while waiting for passengers. A taxicab may only be parked on City streets or alleys when actively loading or unloading passengers and their possessions and when the taxi driver is waiting to receive his/her fare. A taxi driver shall not park, stop, or stage a taxicab, or take breaks, on any street or alley in the City or on any property that is owned by the City. (d) False advertising prohibited. No taxicab shall display the City's logo or any other signage that could lead a reasonable person to believe that the taxicab is affiliated with or endorsed by the City. PASSED, APPROVED and ADOPTED, this day of 2015. Mayor ATTEST: City Clerk 6-3 STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) ss CITY OF RANCHO PALOS VERDES ) I, Carla Morreale, City Clerk of the City of Rancho Palos Verdes, do hereby certify that the whole number of members of the City Council of said City is five; that the foregoing Ordinance No. passed first reading on , 2015, was duly and regularly adopted by the City Council of said City at a regular meeting thereof held on , 2015, and that the same was passed and adopted by the following roll call vote: AYES: NOES: ABSENT: ABSTAIN: City Clerk -2- 6-4