Memorandum

City of Lawrence

City Manager’s Office

 

TO:

David Corliss, City Manager

FROM:

Brandon McGuire, Assistant to the City Manager

CC:

Diane Stoddard, Casey Toomay, Toni Wheeler, Randy Larkin, Maria Kaminska, Diane Trybom, Sherri Riedemann

Date:

April, 1, 2015

Re:

City Code, Chapter 6, Article 6, Taxicab Business Licensing

 

Background

Under Chapter 6, Article 6 of the City Code (the Taxi Code), the City Clerk’s Office currently administers a limited taxi business licensing program in which taxicab vehicles are licensed. Taxi companies and taxi drivers are not licensed under the current City Code, only taxi vehicles. The Clerk’s Office currently administers 32 active taxi vehicle licenses which are held by 8 different taxi companies in the Lawrence market. The number of active taxi vehicle licenses issued to each company is reported in the table below.

 

Taxi Company

Taxi Vehicle Licenses

Ground Transportation

12

Lawrence First Class Transportation

6

Affordable Limousine Services

4

Jayhawk Taxi

4

Redy Cab

3

Lawrence Go Green Taxi

1

Party on Wheels

1

Yo Taxi

1

Total Active Licenses

32

 

Taxi Code Revision Process

At its February 17, 2015 meeting, the City Commission considered a new application for a taxi license. Members of the public and members of the City Commission expressed a number of concerns related to the current Taxi Code at that meeting. The Commission’s concerns were related to customer safety, taxi vehicle insurance requirements, and the presence of old procedural language that was no longer enforced by the City. The Commission directed staff to draft a new Taxi Code that addresses their concerns, and it decided to defer all applications for taxi vehicle licenses until a new Taxi Code was adopted. The Clerk’s Office received one new application for a new taxi vehicle license since that time, and it is being held until the Commission adopts a new Taxi Code.

                                                                                        

The Commission directed staff to revise the Taxi Code to address the following concerns:

·         The safety of customers riding in taxicabs

·         Liability insurance requirements for taxi vehicles

·         Old language and procedures related to the criteria for evaluating and approving/denying taxi business licenses

 

City staff researched those issues and developed revisions to the Taxi Code. Taxi company operators were invited to meet with staff and provide feedback on the proposed Taxi code. The stakeholder group supported staff’s proposed code changes. Some stakeholders desired for the proposed code to include additional requirements for taxi company fleet sizes, service levels, facilities and locations. Staff noted that feedback but focused the code revisions on the City Commission’s direction to address insurance, customer safety and modernization of procedural language. City staff presented the revised Taxi Code to the City Commission at its March 10, 2015 meeting. The March 10, 2015 staff memo reports on the details of the first round of code revisions, as well as the feedback and concerns expressed by stakeholders.

 

At the March 10th Commission meeting, additional concerns were raised by the public and the City Commission and no action was taken on the revised Taxi Code. The Commission directed staff to further revise the Taxi Code to accomplish the following objectives.

 

·         Ensure equal access to taxi cab vehicles for individuals with disabilities.

·         Ensure that all taxi drivers undergo background checks.

·         Display the City Clerk’s Office contact information on taxi vehicle license placards to inform taxi customers where they can file a complaint.

 

The Commission also considered establishing requirements for the capacity and location of taxi businesses. If those requirements were included in the Taxi Code, the City would issue taxi business licenses to those companies that: 

 

·         Own and operate a minimum number of taxi vehicles (e.g. 2 or 3);

·         Provide a minimum level of service (e.g. 24/7 dispatch);

·         Occupy a facility on a commercially zoned premise; and,

·         Occupy a facility located within the city limits.

 

The Commission did not direct staff to include the capacity and location requirements; rather it requested additional information on these issues. This report addresses the additional code requirements for taxi accessibility, taxi driver background checks and taxi licenses placards. Additional information on the issues of fleet size, service levels, and facility requirements in the following sections of this report.

 

Additional Code Requirements

 

Taxi Cab Accessibility – Section 6-617

The Commission directed City staff to address the issue of equal access to taxicab vehicles for individuals with disabilities. Accessibility is addressed in section 6-617 of the proposed Taxi Code. Under the proposed Code, individuals with disabilities who are otherwise able to use a taxicab cannot be denied service or be charged higher rates than are charged to other customers. Additionally, taxicab drivers and business operators would not be permitted to refuse assistance to an individual needing to stow a mobility device, or refuse to allow service animals to ride with passengers.   

 

Taxi Vehicle License Placard – Sections 6-607 and 6-608

The Commission directed staff to display the City Clerk’s Office contact information in the taxicab vehicle. Section 6-607 dictates the information required to be displayed on the taxicab vehicle license. The Clerk’s Office contact information will be included on the taxi vehicle license placard as a necessary piece of additional information. The taxi vehicle license must be displayed so that it is in plain view of all passengers at all times (6-608). The Clerk’s Office is the appropriate office for customers to report a violation of the Taxi Code. The City Clerk’s Office will coordinate the City’s investigation and response to reported violations. Additionally, it is probable that violations of the Taxi Code may be reported by other taxi drivers and the businesses and agencies whose customers utilize local taxi services. The City Clerk’s Office will coordinate those investigations as appropriate.

 

Taxi Driver Background Checks – Section 6-615

The Commission directed staff to include requirements for taxi drivers to undergo background checks. The Commission expressed that it does not desire taxi drivers to be individually licensed through the City; rather the objective is to ensure that taxi business operators conduct background checks on each driver they employ. This issue is addressed in section 6-615 of the proposed Taxi Code. If adopted, taxi business operators licensed by the City, would be required to conduct background checks on their. Licensed taxi business operators would also not be allowed to employ taxi drivers who have been convicted of a felony, a crime of dishonesty, a crime against a person, driving under the influence, or driving with a suspended driver's license within the preceding five (5) years. The taxi business operator would be required to file the results of the driver background checks with the City Clerk’s Office. The City Clerk’s Office would maintain those records in order to investigate reported violations of the Taxi Code. 

 

Additional Information – Potential Capacity Requirements

The City Commission directed staff to provide information on potential requirements for the size of taxi fleets, the level of service provided by taxi businesses, and the location of those businesses.

 

Owners of two taxicab companies, Jayhawk Taxi and Ground Transportation Services (GTS) expressed concerns about the presence of too many taxi operators in Lawrence, particularly small, owner-operated taxi businesses. A few local taxi services are small, owner-operated businesses, with just one vehicle being driven by the owner/operator. Those companies typically do not provide 24/7 dispatch. Some of these taxi services operate out of a home rather than a commercially zoned business facility. No barriers to this arrangement currently exist in the City Code. The current Taxi Code does not establish mandates on the service levels for taxi businesses, fleet sizes, or facilities. Under the Land Development Code, one person operating one vehicle as a taxi is a permitted home occupation. 

 

Jayhawk and GTS state that their most lucrative business is the bar crowd. Jayhawk and GTS state that bar rush fares subsidize the taxi services they provide during the business week. When bar rush fares are taken by other taxi operators, their ability to meet the demand for taxi services during the business week is compromised. They stated that small owner-operated taxi businesses operate during the bar rush hours and do not provide taxi services throughout the week. They stated that owner-operated taxis do not provide the level of service that Jayhawk Taxi and GTS provide and therefore do not have the same amount of overhead expenses as Jayhawk Taxi and GTS. They stated that competition for bar rush fares will result in a future situation in which there will not be enough taxicabs to meet the demand for taxi services during the business week. 

 

Jayhawk Taxi and GTS suggested establishing minimum requirements for licensed taxi companies. Examples of the suggested minimum requirements include requiring taxi businesses to own and operate a minimum number of taxicab vehicles and provide a minimum level of dispatch service. City staff researched the taxi business licensing codes of several Kansas cities, including Overland Park, Olathe, Lenexa, Shawnee, Topeka, Emporia, Wichita, and Kansas City. Of those cities, Wichita and Topeka are the only that enforce minimum requirements for taxi businesses.

 

Takeaways from Wichita and Topeka

Wichita requires applicants for taxi business licenses to own a minimum of 10 taxicab vehicles and Topeka requires a minimum of 8 taxicab vehicles. Wichita and Topeka both require applicants to maintain a central place of business with 24/7 radio dispatch (24 hours per day, 7 days per week).

 

Wichita enacted minimum capacity requirements to address concerns about customer service in the local taxi industry. City of Wichita officials received requests from the Visitor and Convention Bureau, the local hoteliers association, Wichita Mid-continent Airport, and other interests in the tourism and hospitality sector for the city to take measures to improve: the level of customer service provided by cab drivers; the consistency and reliability of taxi services; and, the quality and condition of taxicab vehicles. Wichita’s minimum capacity requirements were already established in the Wichita taxi code but the city reevaluated and revised those requirements, and strengthened its ability to enforce those requirements and impose penalties when code violations occur. Wichita now imposes extensive standards for taxi companies, vehicles and drivers. Wichita’s taxi market consists of two large taxi companies, approximately 80 taxicab vehicles, and approximately 122 taxi drivers.     

 

The City of Topeka enacted its minimum capacity requirements in the early 1980’s and that city not recently reevaluated those requirements. Topeka’s taxi market also consists of two comparatively large taxi companies. There were no additional takeaways from researching Topeka’s code.

 

Considerations for Lawrence

The current draft of the proposed taxi ordinance does not include requirements for a minimum fleet size, the location or type of taxi business facilities, or 24/7 dispatch.

 

Facility Zoning and Location:  Staff’s understanding of the local situation is that the three largest taxi companies operate out of commercially zoned facilities. The Land Development Code allows taxi businesses to operate out of a home as long as only one taxi is operated by one driver.

 

All current taxicab vehicle licenses are held by individuals with local addresses. Taxi drivers from other cities also operate in Lawrence, although they are not permitted to serve customers if the origin and destination of the trip are located within the city limits.  In other words, taxis from other jurisdictions may pick up customers within the city limits if they drop them off outside of the city limits; and they may drop off customers within the city limits if their trip started outside of the city limits. No other type of City business license requires the licensee to operate its business out of a commercially zoned facility located within the city limits. The Land Development Code, however, establishes the permitted and prohibited uses of property based on its zoning classification.   

 

Size of Fleet:  Of the taxi operators who hold current taxicab vehicle licenses, three businesses have licensed only one vehicle with the City Clerk’s Office. A requirement that taxi operators own and operate more than one taxi vehicle would have the effect of eliminating taxi services as an allowable home occupation under the Land Development Code.

 

Service Levels:  Staff’s understanding, based on feedback at the stakeholder engagement meeting, is that only one taxi company, GTS, currently provides 24/7 dispatch services. Some City business license requirements limit the hours that a licensee can operate (e.g. liquor licenses) but no other City business license establishes requirements for minimum service levels.     

 

Staff Recommendation

This report is provided as an update on staff’s research and the current status of the proposed Taxi Code. City staff is prepared to conduct additional research or make any additional revisions to the proposed Taxi Code that the City Commission desires.

 

The City Clerk’s Office is currently holding one taxi vehicle license application, at the Commission’s direction, until the Commission adopts a new taxi ordinance. If the Commission does not adopt the proposed Taxi Code in its current form, staff requests that the Commission provide guidance on whether the Clerk’s Office should continue holding the outstanding application or place it on a future agenda so the City Commission can consider approving or denying the application. Under the current Code, the City Commission is solely authorized to approve applications for taxi licenses. 

 

Action

Adopt the proposed Taxi Code or direct staff as appropriate. Direct staff regarding the outstanding application for a taxicab license which is currently being held by the City Clerk’s Office.