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    Medford City Council Agenda Item 120.1

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    © All Rights Reserved
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    Download as pdf
    387 views15 pages

    Medford City Council Agenda Item 120.1

    Uploaded by

    KTVL
    Medford City Council Agenda Item 120.1

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    © All Rights Reserved
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    eS CITY OF MEDFORD Item No: 120.4 ¥ AGENDA ITEM COMMENTARY SES _www.ci.medtord.or.us DEPARTMENT: Legal AGENDA SECTION: Public Hearings PHONE: (641) 774-2020 MEETING DATE: August 17, 2017 STAFF CONTACT: Loti Cooper, Cy Attorney COUNCIL BILL 2017-96 ‘An ordinance repealing sections 8.400 through 8.495, amending sections 8.004, 8.497 and adding sections 8.320 through 8.395 regarding taxicabs and transportation network companies ‘SUMMARY AND BACKGROUND The current Medford code regulating taxicabs does not expressly address Transportalion Network Companies (TNCs). The Counal will be considering whether to repeal Madtord's existing code chapter Fegulating taxicabs, and whether to replace it with somewhat more detailed provisions clalying operating ‘and insurance requirements and specticaly authorizing TNCs to operate within the City ‘The Council held a study session on amending the Municipal Code regarding "vehicles for hire” on June 28, 2017. Council directed staf to schedule a public hearing on the proposed code amendment. PREVIOUS COUNCIL ACTIONS: None. ANALYSIS ‘TNCs - Uber and Lyf are the most prominent examples — have become a central pat of the new sharing ‘economy. TNCs are now operating alongside tracitional taxis in hundreds of cles around the world, including cities atleast somewhat similar to Medford such as Bend, Belingham, WA, Salt Lake City, UT, Flagstaff, AZ, Missoula, MT, and Boise I. Government and the insurance industry have struggled to adress the TNC business madel, and to identiy and minimize the risks presented, as well @s gaps in insurance caverage. There may also be conoems about respecting the traditional tax industry, and how to create an environment that fosters the fairest possible competition between taxis and TNCs. Staff nas attempted to create new code sections that wil create consistency and a level regulatory playing field forthe different models of vehicle for hire services. The intention of the proposed code Is to create standards sufficient to address the primary concerns about background checks, insurance, aecessibilty, and operating standards, while not dehing more deeply than necessary in to Subjects such as vehicle Fequirements, driver education, etc. Another key feature of the proposed new code is a general shit of ‘some responsibilties from the City to the companies themselves, in conjunction with cerfication and ‘auditing elements that wil alow the City to monitor compliance, The key features of the new code sections include adoption of the “three period model” for determining TNC automobile lability coverage imis. Period 1 is when the TNC driver has logged into the TNC's digital ispatch system ors otherwise connected tothe TNC's digital network, but has not yet accepted a request ‘ora ride from a passenger (for example, the software application is open and the crver is waiting for 8 match); Period 2 is when a passenger match has been accepted, but the passenger is not yet picked up (for example, the driver is on the way to pick up the passenger): and Period 3 Is when the passenger is in the vehicle. Notably, the three TNC service periods do not determine whether TNCs are required to carry primary automobile lability coverage (they are), but instead reflect how much coverage is avaiable, depending on the period during which an accident or loss occurs. This coverage is ow readily avaiable for TNC, which, CITY OF MEDFORD Item No: 120.1 AGENDA ITEM COMMENTARY www.clmedford.or.us ‘along with many local and state regulators, have generally adopted it as the standard framework for ‘automobile abilty insurance to adaress the coverage gaps or “very exclusions” that caused concems during the advent of TNC operations. ‘The insurance requirements of the new cade for TNCs and Taxi Companies aim similar in that $4 milion in primary automobile liabilly coverage is required and wil be in place whenever a passenger isin the vahicle land actually engaged in @ ride. For taxis, this represents an increase in the requirement for $500,000 of Insurance coverage under the current code. Considering they are providing similar services, consistent insurance requirements for taxis and TNCs wherever possible is fai and equtable. At the June 29 study session, several Council members raised concerns thatthe insurance requirements in the proposed cade ‘may be too onerous. The insurance requirements in the proposed code are similar to Bend and Salem's requirements. The Council may hear more about the insurance requirements atthe public hearing, and can adjust the code language i so determined ‘The proposed new code contains new background check requirements which would be equally applicable to all vehicie for hire operators, whether TNCs or Taxi Companies; the new cade would apply the same standards to all operators of vehicles for hire in the City. As discussed atthe June 29 study session, any vehicle fr hire driver who has one of more convictions for misdemeanor theft ofenses would not be eligible fora business licence, Final, the proposed new code changes the appeal process. Currently, tax divers who are denied a taxi ‘river ID card must fst appeal tothe City Manager or his designee, who can only review the denial and render a decision consistant with the requirements ofthe code. However, currently, the applicant can appeal this decision of the City Manager of his designee to the Council, which can consider reliable indicia of rehabiltation from a disqualifying event listed in the code (Certain fetony crimes at anytime inthe past, and certain misdemeanors and trafic crimes within spectiag Periods of 2 ~ § years, depending on the crime) prior to applying for tax diver ID card, The proposed new code eliminates the appeal to the City Manager or his designee. If @ vehicle for hire applicant is denied a license, he or she can appeal the denial drecly tothe Cy Council. FINANCIAL AND/OR RESOURCE CONSIDERATIONS Unknown at this time. If Council adopls a business license fee andlor a surcharge per ride, these funds ‘would at least partially cover the staf costs of processing the business licenses and other compliance oversight TIMING ISSUES None, COUNCIL OPTIONS Approve, modify, or deny the ordinance. ‘STAFF RECOMMENDATION Staff recommends approval ofthe ordinance. SUGGESTED MOTION | move to approve the ordinance adopting the proposed code amendment. EXHIBITS | Ordinance ORDINANCE NO. 2017.96 AN ORDINANCE repealing sections 8.400 through 8.495, amending sections 8.004, 8.497 ‘and adding sections 8.320 tcough 8.355 regarding taxicabs and transportation network companies, THE CITY OF MEDFORD ORDAINS AS FOLLOWS: Section 1. Section 8.004 ofthe Medford Code is amended to read as follows: 8.004 Appeal of Denial, Revocation, Classification or Exemption of License. Section 3. Section 8.405 of the Medford Code is hereby repealed: G-No person hall engneeinatasinahineein the siysithout a curon, veldbunness cate: ‘i Ne-person-shall-operate-<-texioab-in-the city without a-eurrent-valid-tani driver ID card-wet ‘Ocdiuance No, 2017-96 PACissiSORDS. Council Doouments.0211 Tama Section 4. Section 8.410 of the Medford Code is hereby repesled: 8.410 Applicaton for Operon Livense: ‘comply-with Seotion 8.43010) (14} and-(23)- Section 5. Section 8.425 of the Medford Code is hereby repealed mw mw a Mw MW Ordinance No, 2017-96 PiGasie!ORNSt. Cont Dacumens\O82:1 amd Fanon ‘orthin-this seetion-fore-new- applicant: 4) Aton divers ID cardio not transferable. Section 6. Section 8.430 of the Medford Code is hereby repealed Section 7. Section 8.440 of the Medford Code is hereby repealed: 8:40-Appeal ‘Any person-aggrieved by-aruling ofthePolice Department seating to Section $425-shallhave-the Oninance No, 2017-96 PACassiCORDSIY, Count Docanens08211 Tami ‘ightto-appea-o-the Finance Director under the procedures set out in Section $,004 of this code, ‘Section 8, Section 8.450 ofthe Medford Code is hereby repealed: timeschedule-and (2-Voluntecrdeiven-vehicles operated by-adriverwhaisreimbunsad forbes mileage exponsesnd ‘who-docs-not receive wages-salary-orother compensation, ‘@)-Fheve-exempt-vehicles-areSorbidden-rom operating a taxionbs oe limousines: Section 11. Section 8.455 of the Medford Code is hereby repealed: 8455_Operators License Required, Ordinance No. 2017 96 PiCass2!ORDSI, Council Doctmests0821 Tait Section 12. Section 8.460 ofthe Medford Code is hereby repealed: Anopplisint-forelicenseto operates timousine busines shall submitiothe finance dretorona formapproveby-himan application ting forththenamootheappicantendtooation-fbusiness,

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