M&C Review


COUNCIL ACTION:  Approved on 6/28/2016 - Ordinance No. 22308-06-2016 & Resolution No. 4651-06-2016

DATE: 6/28/2016 REFERENCE NO.: G-18778 LOG NAME: 20REPEALING AND RESTATING CHAPTER 34 VEHICLES FOR HIRE
CODE: G TYPE: NON-CONSENT PUBLIC HEARING: NO
SUBJECT:   Adopt Ordinance Repealing and Restating Chapter 34, "Vehicles for Hire," Article VI, "Ground Transportation for Hire" of the Code of the City of Fort Worth, Texas (2015), and Adopt Resolution Establishing a Schedule of Fees (ALL COUNCIL DISTRICTS)

RECOMMENDATION:

It is recommended that the City Council:

1. Adopt the attached Ordinance repealing and restating Chapter 34, "Vehicles for Hire," Article VI, "Ground Transportation for Hire" of the City Code of Fort Worth, Texas (2015), as amended, in its entirety; and

2. Adopt the attached Resolution establishing a schedule of fees applicable to Chapter 34, Article VI of the City Code.

 
DISCUSSION:

The attached Ordinance repeals and restates Chapter 34, "Vehicles for Hire", Article VI, "Ground Transportation for Hire" of the City Code in its entirety.  The new Ordinance structures the program so that free-enterprise and market forces provide the checks and balances for determining quality of service levels based on competition between the various vendors and business models.  The major components of the Ordinance include the following:

Operating License fees will be $500.00 and Operating Licenses will be valid for a two year period. Operating Licenses will be administratively approved by Staff and will not require submission to the City Council.

Before being granted an Operating License, and on an annual basis, companies will be required to submit a compliance certification to the City stating that:

1. The company has performed national background and driver's license checks on drivers operating under the Operating License;
  
2. The company has verified that vehicles operating under the Operating License are covered by an insurance policy meeting the requirements of the Ordinance and comply with state law for vehicle inspection and emission testing; and
  
3.  The company will comply with all requirements of the Ordinance and federal, state and municipal laws in providing vehicle for hire services.

The Director of Transportation and Public Works shall have the authority to revoke an Operating License if a company:

1. fails to submit an annual compliance certification;
  
2. fails to perform a national background and driver's license check or fails to verify an insurance policy or vehicle inspection and emission testing compliance; or

3. knowingly allows a driver or vehicle to operate in violation of the Ordinance.

If a company has performed the necessary annual compliance checks, but is later notified by the City that a driver or vehicle is not in compliance with the Ordinance, the company will have thirty days to submit proof to the Director of Transportation and Public Works that the company has corrected the deficiency or terminated the driver or vehicle from operating under the Operating License.  The Operating License may be revoked if the company fails to submit proof to the Director within thirty days.  Revocation of an Operating License will be effective for a two year period.

Drivers will be required to have a valid driver's license and meet the background check requirements contained in the Ordinance.  Transportation Network Companies (TNCs) will be required to have the insurance required by state law.  All other companies must have a tiered insurance policy meeting the insurance requirements for TNCs, or a commercial policy with $500.000.00 combined single limit liability that meets the requirements of the Ordinance.  Vehicles that are hailed by a customer communicating in person with the driver will be required to have the company name and rate information permanently displayed on the outside of the vehicle, have a taximeter installed, and not exceed the rates and fares authorized in the Ordinance. The Director of Transportation and Public Works shall have the authority to establish rules governing the location, routes and operating hours of non-motorized vehicles for hire after conducting a public hearing.

The proposed vehicle for hire regulations are structured such that customers and companies drive the quality of service being provided. The market place along with technology has matured such that minimal local regulatory engagement is necessary.

The City Council adopted the current schedule of fees for vehicles for hire on February 20, 2007 (M&C G-15536 Corrected).  Adopting the attached Resolution will establish a new schedule of fees applicable to vehicles for hire.

Staff is requesting that the City Council approve the recommended changes to the Vehicle for Hire Ordinance.  The changes would become effective on October 1, 2016.

This M&C does not request approval of a contract with a business entity.

 
FISCAL INFORMATION/CERTIFICATION:

The Finance Director certifies that this action will have no material effect on City funds.





TO
    Fund Department
ID
Account Project
ID
Program Activity Budget
Year
Reference #
(Chartfield 2)
Amount

FROM
    Fund Department
ID
Account Project
ID
Program Activity Budget
Year
Reference #
(Chartfield 2)
Amount

Submitted for City Manager's Office by:
Jay Chapa (5804)
Originating Department Head:
Douglas Wiersig (7801)
Additional Information Contact:
David Jodray (2891)
Alonzo Linan (7861)

 
 
ATTACHMENTS
  Vehicle for Hire Fee Resolution.pdf
  Vehicle for Hire Ordinance.pdf