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AGENDA ITEM REVIEW FORM |
6.C.
Special City Council Meeting
- Meeting Date:
- 12/22/2020
- Department Head:
- Kay Macuil
- Submitted By:
- Kay Macuil, City Attorney, Attorney's Office
Action Requested:
Motion
ITEM:
Discussion and possible action on any and all matters regarding review of Ordinances No. 393 and 394 which in December 2019 and January 2020, established a system to issue and regulate for border area taxi vehicle permits and the Border Taxi Stand. (Tadeo A. De La Hoya, City Manager)
SUMMARY:
Note: In this summary, the term "taxi" is used to mean vehicles for hire including Taxis (which have meters) and Liveries, Shuttles, and Limousines (which have flat rates).
Background
In 2019 there were 172 business licenses for taxis operating in San Luis, all in competition for the pedestrian traffic at the Land Port of Entry No. 1.
The Police and Fire Departments presented information about the traffic safety concerns for emergency vehicles to get safely to the Port of Entry to address emergencies. In addition to the traffic safety concern. There was another safety concern. Due to the mortgage financing collapse, many taxi drivers sprung up about the time of the economic downturn, and great competition among cab drivers ensued. People got into the taxi business to make ends meet. The police were responding to calls of physical violence among the taxi drivers fighting for customers or spaces. Since the number of taxi drivers was again on the rise, there was concern that the city needed to do what it could to prevent violence from breaking out again.
The Public Works and Parks Departments presented a plan to move the city's designated taxi stand to a safer position, which was done.
The Business Licensing Division proposed the changes in Ordinance No. 394 to make the administration of the permits more manageable.
The City Attorney's Office presented a regulatory plan (in Ordinance Numbers 393 and 394) that would comply with the Arizona legislative preemptions on regulating vehicles for hire. The Ordinances were passed in December of 2019 and January of 2020. In essence, the ordinances regulate the use of the city's taxi stand at the border and any future taxi stands or taxi wait stands the city may establish in the downtown border area. (Please see attached maps for the boundaries of the border area.) To address the traffic safety concerns for excessive vehicle-pedestrian congestion, it permits only 35 taxis to have permits. Those taxis must be with an entity or individual with at least 5 vehicles, have a dispatch operation, and other business requirements to be eligible for the border taxi permit.
Because cities cannot regulate taxis' licensing under Arizona statutes, the Border Taxi plan does not regulate businesses on private property. It only regulates the entities that can use taxi stands or taxi wait stands established by the city in the Border Taxi Area, which the city has only one at the border.
However, it is not legal for a taxi to set up business in a city right-of-way. Only the City can establish a taxi stand. It is also not legal to set up a taxi business on private property if the owner does not agree to it.
1 Year Review of Border Area Taxi Permit and Regulation and the Border Taxi Stand
A year ago, we did not know we would be dealing with the COVID-19 pandemic. The pandemic has caused another economic down-turn. The city has received complaints that taxi drivers are not following the rules. It has been difficult for law enforcement to keep up. Staff is open to Council's direction to work on recommendations for improving the plan.
The permit was set at $50 per year. To continue the program will not cost the same amount of administrative time that it did to create the program, so Council may consider reducing the charge The Arizona Department of Transportation charges $24 for their application fee. Staff recommends going forward to change the fee to $24.00.
Background
In 2019 there were 172 business licenses for taxis operating in San Luis, all in competition for the pedestrian traffic at the Land Port of Entry No. 1.
The Police and Fire Departments presented information about the traffic safety concerns for emergency vehicles to get safely to the Port of Entry to address emergencies. In addition to the traffic safety concern. There was another safety concern. Due to the mortgage financing collapse, many taxi drivers sprung up about the time of the economic downturn, and great competition among cab drivers ensued. People got into the taxi business to make ends meet. The police were responding to calls of physical violence among the taxi drivers fighting for customers or spaces. Since the number of taxi drivers was again on the rise, there was concern that the city needed to do what it could to prevent violence from breaking out again.
The Public Works and Parks Departments presented a plan to move the city's designated taxi stand to a safer position, which was done.
The Business Licensing Division proposed the changes in Ordinance No. 394 to make the administration of the permits more manageable.
The City Attorney's Office presented a regulatory plan (in Ordinance Numbers 393 and 394) that would comply with the Arizona legislative preemptions on regulating vehicles for hire. The Ordinances were passed in December of 2019 and January of 2020. In essence, the ordinances regulate the use of the city's taxi stand at the border and any future taxi stands or taxi wait stands the city may establish in the downtown border area. (Please see attached maps for the boundaries of the border area.) To address the traffic safety concerns for excessive vehicle-pedestrian congestion, it permits only 35 taxis to have permits. Those taxis must be with an entity or individual with at least 5 vehicles, have a dispatch operation, and other business requirements to be eligible for the border taxi permit.
Because cities cannot regulate taxis' licensing under Arizona statutes, the Border Taxi plan does not regulate businesses on private property. It only regulates the entities that can use taxi stands or taxi wait stands established by the city in the Border Taxi Area, which the city has only one at the border.
However, it is not legal for a taxi to set up business in a city right-of-way. Only the City can establish a taxi stand. It is also not legal to set up a taxi business on private property if the owner does not agree to it.
1 Year Review of Border Area Taxi Permit and Regulation and the Border Taxi Stand
A year ago, we did not know we would be dealing with the COVID-19 pandemic. The pandemic has caused another economic down-turn. The city has received complaints that taxi drivers are not following the rules. It has been difficult for law enforcement to keep up. Staff is open to Council's direction to work on recommendations for improving the plan.
The permit was set at $50 per year. To continue the program will not cost the same amount of administrative time that it did to create the program, so Council may consider reducing the charge The Arizona Department of Transportation charges $24 for their application fee. Staff recommends going forward to change the fee to $24.00.
RECOMMENDATION / SUGGESTED MOTION:
I MOVE TO SET THE ANNUAL FEE FOR EACH BORDER AREA TAXI VEHICLE PERMIT AT $24.00 PER YEAR.
Fiscal Impact
- IS THERE FISCAL IMPACT ASSOCIATED WITH THIS ITEM:
- NO
- CITY/STATE/FEDERAL FUNDS:
- N/A
- TOTAL:
- N/A
- BUDGETED AMOUNT:
- N/A
- AVAILABLE AMOUNT TO TRANSFER:
- N/A
- ACCT NAME & GL#/REMAINING BALANCE BEFORE PURCHASE:
- N/A
FISCAL IMPACT STATEMENT (IF THIS IS A BUDGET TRANSFER, YOU MUST ATTACH THE BUDGET ADJUSTMENT FORM):
Ordinance No.393 establishes a $50.00 fee for licensing to help defray the associated permitting costs. Since the program is in place, and will require less staff time, staff is recommending a fee of $24 to help defray permitting costs.