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HomeMy WebLinkAboutItem 26 Proposed Changes to Springfield Municipal Code 7.330 and 7.332 AGENDA ITEM SUMMARY Meeting Date: 7/18/2016 Meeting Type: Regular Meeting Staff Contact/Dept.: Kristina Kraaz/Mary Bridget Smith City Attorney’s Office Staff Phone No: 541.746.9621 Estimated Time: 05 Minutes S P R I N G F I E L D C I T Y C O U N C I L Council Goals: Promote and Enhance our Hometown Feel while Focusing on Livability and Environmental Quality ITEM TITLE: PROPOSED CHANGES TO SPRINGFIELD MUNICIPAL CODE 7.330 AND 7.332. ACTION REQUESTED: Conduct a second reading and adopt/not adopt the following ordinance: AN ORDINANCE AMENDING THE SPRINGFIELD MUNICIPAL CODE SECTIONS 7.330 AND 7.332 REGARDING PUBLIC PASSENGER VEHICLE SERVICES ISSUE STATEMENT: Amend SMC 7.330 and SMC 7.332 to reflect changes made in the identical Eugene Code provisions, EC 3.005 and EC 3.345, to allow transportation network providers like Lyft and Uber to operate within the City and subject these services to the public passenger vehicle company license requirements. ATTACHMENTS: 1. Council Briefing Memo 2. Proposed Ordinance amending SMC 7.330 and SMC 7.332 DISCUSSION/ FINANCIAL IMPACT The City of Eugene administers and enforces the business license requirements for public passenger vehicles for both Eugene and Springfield. Eugene recently updated their code and administrative regulations to allow for transportation network companies (TNCs) to operate in the area. For those operators to be able to conduct business in Springfield with the license issued by Eugene, the City Council needs to co-adopt the code amendments. There is no cost to Springfield for Eugene to provide this service, nor does Springfield receive any license revenue. Adopting the proposed code amendment will have no financial impact to the City. From the operator perspective, it is more cost effective to obtain one license and follow one set of standards in order to operate in both cities. A first reading was conducted on May 2. In response to Council’s requests for further information and clarification of the inspection requirements for traditional taxis and TNC vehicles under Eugene’s adopted administrative rules, a Council Briefing Memo is attached. M E M O R A N D U M City of Springfield Date: July 18, 2016 COUNCIL BRIEFING MEMORANDUM To: Gino Grimaldi From: Kristina Schmunk Kraaz, Assistant City Attorney Anette Spickard, Director DPW Subject: Second Reading on Proposed PPV Ordinance ISSUE AND BACKGROUND: On May 2, 2016, the Council held a first reading on the proposed ordinance adopting new public passenger vehicle (PPV) license code provisions in order to make Springfield’s PPV code consistent with the City of Eugene’s PPV code, as Eugene currently administers and enforces the PPV license program for both jurisdictions. The Council requested additional clarification regarding the vehicle inspection requirements contained in the City of Eugene’s newly adopted PPV administrative rules. This memo addresses the previous inspection requirements under Eugene’s former PPV administrative rules and the new inspection requirements for traditional taxis and for transportation network companies (TNC) vehicles (i.e. Uber drivers) under Eugene’s newly adopted PPV rules. The mechanical and safety inspection requirements for PPV’s are contained in Eugene’s administrative rules, and not in the Eugene Code. Accordingly, these specific requirements do not appear in the proposed ordinance to amend Springfield’s PPV code, but rather the proposed ordinance delegates rulemaking authority for PPVs to the City of Eugene (no change in that regard from the current Springfield PPV code). If the Council would like changes to the inspection requirements in Eugene’s administrative rules, Springfield could make that request to Eugene in a separate process and still continue with a second reading of the proposed ordinance. Former PPV Inspection Requirements Before adopting new regulations that set separate standards for TNC’s, the City of Eugene required all PPV drivers to obtain regular mechanical inspections from a garage every six months and to submit a compliance form that is filled out by the garage. The City Manager also had the ability to order “special inspections,” but the rules don’t elaborate what circumstances warrant a special inspection. The City Manager’s Office (CMO) still has this authority under the new regulations, but when contacted for more information, Eugene’s PPV coordinator was not aware of a time that a special inspection had ever been ordered. Under the former rules, all PPV drivers were required to bring their vehicles to the City of Eugene for a brief safety inspection, where the City verified that the vehicle met safety requirements that a mechanic would not be expected to verify. For instance, the City of Eugene staff verifies that the vehicle’s seat belts work and that there is a fire extinguisher present in the vehicle. The total inspection time has historically taken less than five minutes. New PPV Inspection Requirements The newly-adopted PPV administrative rules retain almost all of the former inspection requirements for PPVs. There are two changes that have been made: (1) the safety inspection requirements have been updated to specifying additional minimum safety standards that all vehicles-for-hire must meet (i.e. all taxis and TNCs like Uber), which include no visible glass or body damage, functioning heat and AC, cleanliness, functioning exhaust, and no excessive leaks; and (2) the frequency that inspections are required has been decreased: previously, inspections were required every six months; now, inspections are completed annually for all vehicles-for-hire. 7/14/2016 Page 2 Attachment 1, Page 2 of 2 The safety inspection requirements and mechanical inspection requirements apply to TNC drivers in addition to traditional taxicabs. TNC drivers in Springfield would have to submit to the safety inspection by City of Eugene staff, similarly to the way in which Springfield taxi drivers and pedicab drivers have previously done, if the Council adopts the proposed ordinance. (But note that, if the proposed ordinance is not adopted, Springfield TNC drivers are in a legal limbo in which they may be unable to legally operate in Springfield at all, or if they can operate, they may have to meet the more stringent requirements imposed by Eugene for traditional taxis). With respect to Uber specifically, the City of Eugene has offered to work with Uber to streamline the safety inspections for its drivers. Uber apparently arranges for all of their drivers to bring their cars for mechanical inspections at the same time, and Eugene has offered to make City of Eugene staff available while the mechanical inspections are being conducted at the particular garage, so that drivers can submit their mechanical inspection certifications and conduct safety inspections at the same time. Uber has not yet contacted the City of Eugene to take them up on that offer or to propose a different arrangement. COUNCIL GOALS/MANDATE: Promote and Enhance our Hometown Feel while Focusing on Livability and Environmental Quality; Strengthen Public Safety by Leveraging Partnerships and Resources RECOMMENDED ACTION: Conduct second reading on the proposed public passenger vehicle ordinance. Attachment 2, Page 1 of 5 ORDINANCE No. __________ (General) AN ORDINANCE AMENDING THE SPRINGFIELD MUNICIPAL CODE SECTIONS 7.330 AND 7.332 REGARDING PUBLIC PASSENGER VEHICLE SERVICES The City Council of the City of Springfield finds that: WHEREAS, the City of Eugene administers public passenger vehicle company licenses and public passenger vehicle permits on behalf of the City of Springfield; WHEREAS, transportation network companies, such as Uber and Lyft, are a new industry and the city seeks to develop reasonable regulations that protect public safety; WHEREAS, transportation network companies have been operating in the city’s jurisdiction; and WHEREAS, the City of Eugene has amended the Eugene Code to allow transportation network companies in Eugene to use smart-phone applications to calculate and charge fares under a public passenger vehicle company license and the City of Springfield has determined that it is in the best interest of the citizens of this city to make similar amendments to the Springfield Municipal Code; NOW, THEREFORE, based on the foregoing recitals, the Common Council of the City of Springfield ordains as follows: Section 1. Subsection 7.330 of the Springfield Municipal Code is hereby amended to read as follows: “7.330 Definitions. Accessible Vehicle. Any public passenger vehicle for hire that is constructed and equipped to meet ADA standards for the nonemergency transportation of persons in wheelchairs, persons using other mobility aids, or with other mobility impairments. ADA. Americans with Disabilities Act. Business. Any business, institution, association, occupation, and calling of every kind. Charter Vehicle. A motorized vehicle originating from the Eugene/Springfield metropolitan area, marked with the company’s business name, operated for hire to transport a group of seven or more persons with the fare based on a group rate rather than an individual basis. Club Car Service. Vehicular passenger transportation service provided by a business to club members or by a residence home to its residents. Courtesy Car Service. Vehicular passenger transportation service provided by a business to its clients or customers at no cost. Employee. Any person employed for remuneration or under any contract of hire, written or oral, express or implied, including independent contractors. All persons who drive public passenger vehicles, including any person who has an ownership interest in the company, Attachment 2, Page 2 of 5 shall be considered employees of the public passenger vehicle company for purposes of sections 7.330 to 7.332. Hailable Vehicle. A vehicle-for-hire that can be immediately summoned by a passenger without the use of any dispatch. Manager. Any person in charge of the operation or management of the public passenger vehicle company, any person who can direct or control the activities and scheduling of the company’s employees, and any person who can hire or fire the company’s employees. Motorized Vehicle. A public passenger vehicle other than a horse-drawn carriage or a non-motorized bike cab. Operator. Any person who is a principal in a public passenger vehicle company. A principal includes all owners, shareholders, partners, directors, officers and managers. Public Passenger Vehicle. Any vehicle which is used for the transportation of passengers for hire, including, but not limited to, shuttles, horse-drawn carriages, non- motorized bike cabs, and taxicabs. However, the following shall not be considered public passenger vehicles for purposes of sections 7.330 to 7.332: (1) Vehicles, other than shuttles, operated pursuant to written authority by the city, state or federal governments, or political subdivision thereof; (2) Vehicles commonly known as rent-a-cars, that are rented to be driven by the renter or agent; (3) Courtesy car services; (4) Tour bus services; (5) First aid vehicle or medical transport vehicle; and (6) Limousines. Public Passenger Vehicle Company. Any business which operates one or more public passenger vehicles, regardless of who owns the vehicle operated. Public Passenger Vehicle Driver. An employee of a public passenger vehicle company that operates a vehicle-for-hire by transporting passengers for compensation. Shuttle. A motorized vehicle for hire that transports passengers between predetermined destinations (e.g., motels, airport, downtown passenger station), at fixed rates on a fixed schedule. Taxicab. A motorized vehicle that is operated for hire by the public passenger vehicle company, other than a shuttle, limousine, or charter. Taximeter. A mechanical or electronic device which calculates and displays a fare. Tour Bus. A motorized vehicle accepting individual passengers for a fare for sightseeing or guided tours, making occasional stops at certain points of interest and returning the passengers to their point of origin. Attachment 2, Page 3 of 5 Transportation Network Company. A person or business that provides a digital or software application scheduling platform or service that enables a prospective passenger to connect to a vehicle-for-hire. Transportation Network Driver. An employee of a transportation network company that operates a vehicle-for-hire by transporting passengers for compensation utilizing the Transportation Network Company’s digital or software application scheduling platform or service. Vehicle-for-Hire. A vehicle used for providing shared transport, which transports one or more passengers for a fee between locations of the passengers’ choice, including, but not limited to, all public passenger vehicles. Vehicle-for-Hire Company. All public passenger vehicle companies and all transportation network companies.” Section 2. Subsection 7.332 of the Springfield Municipal Code is hereby amended to read as follows: “7.332 License and/or Permit Required. (1) Licensure Requirements. (a) No person or business may operate a public passenger vehicle or vehicle-for-hire company without a public passenger vehicle company license; however, an unlicensed vehicle-for-hire operating outside the jurisdictional limits of Eugene and Springfield may deliver a fare from outside those limits to a location within the limits, and if the vehicle waits for the person, retrieve the person for the return trip back outside the jurisdictional limits. No unlicensed public passenger vehicle company may solicit or accept any passenger within the city limits except as provided in this subsection. (b) No person or business may connect, or attempt to connect, a prospective passenger to a vehicle-for-hire by providing a digital or software application scheduling platform or service without first obtaining a public passenger vehicle company license. (c) Unless driving a vehicle-for-hire for a person or business that has obtained a public passenger vehicle company license, no person may drive a vehicle-for-hire without first obtaining a public passenger vehicle company license. (d) No person or business required to obtain a public passenger vehicle company license may solicit or accept any passenger within the city limits except as provided in this subsection. (2) No person or business required under subsection (1) of this section to obtain a public passenger vehicle company license may operate a motorized vehicle that lacks a public passenger vehicle permit. (3) No person may drive a motorized vehicle-for-hire, and no vehicle-for-hire company may hire a person as a driver, either as an employee or an independent contractor, unless that person possesses a valid public passenger vehicle driver certification. Notwithstanding the foregoing, a person who has applied for such a certification may drive a taxicab if the Attachment 2, Page 4 of 5 person has obtained from the city a temporary certification; such certification shall not be valid for more than 30 days, or until the city grants or denies the person’s application for a public passenger vehicle driver certification, whichever is sooner. (4) No public passenger vehicle company may locate any part of its operation in a residential zone unless expressly authorized by the city manager or designee pursuant to the Springfield Municipal Code or the Eugene Code. (5) All persons and businesses required to obtain a public passenger vehicle company license under subsection (1) of this section shall provide the city manager or designee with written notice of the maximum rate to be charged passengers. No public passenger vehicle company shall change its maximum rate without first providing the city manager or designee with a minimum of 10 days advance written notice of the new rate. No public passenger vehicle company shall charge more than the rate on file with the city. Upon request, the city manager may exempt, by administrative order, a public passenger vehicle company from the provisions of this section if the public passenger vehicle company does not operate any taxicabs. (6) The actual fare charged for each trip by a taxicab shall not exceed the higher of either: (a) The meter calculated rate, including authorized and posted surcharges; or (b) The minimum fare as posted on the interior and exterior of the vehicle. (7) The city manager or designee shall adopt rules setting standards and establishing requirements for vehicle-for-hire companies, vehicles-for-hire, public passenger vehicle drivers and transportation network drivers; and the issuance of licenses for companies, permits for vehicles, and certifications and temporary certificates for drivers. Such rules shall be consistent with this code and be designed to ensure that the public safety is protected, the public needs are met, and the public convenience is promoted. (8) In addition to requirements established by rule to obtain a license, each public passenger vehicle company must designate a registered agent who may be served with any process, notice or demand required or permitted by law to be served upon the company. The registered agent shall be an individual or business located in Eugene or Springfield, and must be available for service of legal process during all hours that the public passenger vehicle company is in operation. (9) The term for a license issued hereunder shall commence on January 1st and expire on December 31st of the year issued. The license fee for applications received after January 1st shall be prorated on the basis of that term. An application for extension or renewal of an existing license must be submitted by November 1st, accompanied by the required license fee. Failure to submit the license fee with the extension or renewal application, or to pay the same before the end of the current license term may result in the licensee being required to submit a new application and pay an application fee. A licensee who submits an extension or renewal application after November 1st may be assessed a penalty fee of $10.00 per day for each day between November 1st and the date the application is submitted.” Attachment 2, Page 5 of 5 Section 2: Except as specified herein, all other provisions of Springfield Municipal Code remain unchanged and in full force and effect. Section 3: If any section, subsection, sentence, clause, phrase, or portion of this Ordinance is held, for any reason, invalid or unconstitutional by a court of competent jurisdiction, such portion shall be deemed a separate, distinct, and individual provision and such holding shall not affect the validity of the remaining portion hereof. Section 4: This Ordinance shall take effect 30 days after its adoption by the Council and approval by the Mayor. ADOPTED by the Common Council of the City of Springfield this _____ day of _______________, 2016, by a vote of _____ for and _____ against. APPROVED by the Mayor of the City of Springfield this _____ day of _______________, 2016. ________________________________ Christine Lundberg, Mayor ATTEST: ________________________________ Amy Sowa, City Recorder