California City Municipal Code Art. 5 Taxi Franchises

No person shall maintain or operate a taxi service without a franchise from the City.

(a) A person who desires to obtain a taxi franchise shall make application to the City Manager. The application shall contain the information required by the City Manager to determine whether the franchisee will comply with this Article including the following:

(1) Name, address and telephone number;

(2) Type of franchise;

(3) Proposed service area;

(4) Plan for providing service;

(5) Evidence the franchisee is capable of implementing the plan for services;

(6) Applicant's agreement to comply with the terms of this Article.

(b) The City Manager shall prepare a report and make a recommendation on the application.

(a) The Council shall consider the report and recommendation of the City Manager at a duly noticed public hearing conducted within thirty (30) days after the date of the report. The hearing shall be preceded by ten (10) days' prior mailed notice to the applicant and by notice published at least once, at least ten (10) days before the hearing. The Council shall receive the testimony of interested persons at the hearing. The hearing may be continued from time to time.

(b) The Council shall render its decision on the application at the conclusion of the hearing. The Council's decision shall be set forth in an ordinance and shall be final when the ordinance is adopted and effective.

(c) The franchise shall be accepted in writing after the first reading of the ordinance and before adoption of the ordinance.

(a) A franchise may not be transferred by operation of law. A franchise may be transferred with the approval of the Council upon showing the transferee would be eligible to obtain a franchise in the first instance.

(b) A franchisee who desires to transfer a franchise shall make application to the City Manager. The application shall include the written agreement of the transferee to be bound by the terms and conditions of the franchise. The City Manager shall prepare a report and recommendation on the application. The Council shall review the City Manager's report and recommendation.

(c) The Council shall set forth its decision on the application in a resolution. The Council's decision shall be final when the resolution is adopted and effective.

(a) A franchise is terminated when: it expires by its term; the franchisee voluntarily abandons the franchise; or the franchisee violates the terms and conditions of the franchise.

(b) The City Manager shall provide the franchisee at least ten (10) days' prior written notice of intent to terminate the franchise. The notice shall state the reasons for terminating the franchise.

(c) Except when the franchise has terminated by its terms, the franchisee may contest the City Manager's determination by filing a written appeal with the City Manager within ten (10) days of the date of the notice. When the franchise has terminated by its terms, the franchisee may request renewal of the franchise by filing an application for a franchise. The City Manager shall file a report and recommendation with the Council concerning each proposed termination for which a request for hearing has been filed. If no request for hearing is filed, the City Manager's decision is final.

(d) The Council shall consider the City Manager's report and recommendation at a duly noticed public hearing if written appeal has been filed with the City Manager. The hearing shall be preceded by at least ten (10) days' prior written notice to the franchisee and notice published once ten (10) days before the hearing. The Council shall render its decision at the conclusion of the hearing. The Council's decision shall be set forth in an ordinance and shall be final when the ordinance is adopted and effective.

(a) A taxi franchise is nonexclusive.

(b) No privilege or exemption shall be granted or conferred by any franchise except as specifically prescribed in this Article.

(c) A privilege claimed under a franchise by the franchisee in any street or public property shall be subordinate to any prior lawful occupancy of the streets or public property.

(d) Time shall be of the essence of the franchise. The franchisee shall not be relieved of the obligation to comply promptly with this Article or by any failure of the City to enforce prompt compliance.

(e) The franchisee shall have no recourse against the City for loss, cost, expense, or damage arising out of this Article or of franchise, or because of the enforcement of this Article.

(f) The franchisee shall be subject to laws, rules, regulations, and specifications.

(g) No person, firm or corporation in the existing service area of the franchisee shall be arbitrarily refused service. The franchisee shall not be required to provide service to a customer who does not pay the applicable fee or monthly service charge.

(h) The Council shall impose additional terms and conditions for the granting of a franchise necessary to implement this Article.

(a) Franchise fees shall be established from time-to-time by the Council by resolution and shall be calculated and paid as set forth herein.

(b) The franchisee shall file with the City, within thirty (30) days after the expiration of a calendar year, or portion, during which such franchise is in force, a financial statement prepared by a certified public accountant, or person otherwise satisfactory to the Council, showing in detail the gross annual receipts of the franchisee during the preceding calendar year, or portion thereof. The franchisee will pay to the City, within fifteen (15) days after the time for filing such statements, the sum set forth in this section, or unpaid balance, for the calendar year, or portion thereof, covered by such statements.

(c) The City may inspect the franchisee's records showing the gross receipts from which its franchise payments are computed and the right of audit and recalculation of any and all amounts paid. No acceptance of payment shall be construed as a release or as an accord and satisfaction of claims the City may have for further or additional sums.

(d) When holding over after the expiration or other termination of a franchise without the consent of the City, the franchisee shall pay to the City reasonable compensation and damages of not less than 100% of the franchisee's total gross profits during such period.

(a) No rate, fee or charge shall be levied or collected for taxi service except in compliance with this section.

(b) The franchisee shall submit proposed rates for taxi service to the Finance Director. The Finance Director shall cause a notice to be published of the proposed rates. The rates are effective ten (10) days after publication.

(c) The approved rates shall be posted within each taxicab at a location visible to passengers.

(d) The franchisee shall not charge more than the approved rates, but may charge less.

(a) Each vehicle used for taxi service by the franchisee shall be maintained at all times in a mechanically-safe and clean condition. Each vehicle shall include: an exterior display signifying that it is a franchised taxicab, and an instrument or device by which the charge for use of the vehicle is calculated and registered and upon which such charge is indicated by means of figures visible to the passengers. Each vehicle shall be insured against liability for personal injury in a minimum amount from time-to-time determined by the Police Chief. The franchisee shall cause the City to be named as an added insured on such policy.

(b) Prior to commencement of service, the franchisee shall obtain a certificate from the Chief of Police that each vehicle to be used for taxi service has complied with this section. A certificate shall also be obtained each time the franchisee proposes to substitute or add a new vehicle to provide taxi service.

(c) The Chief of Police shall prepare forms to be used by the franchisee to apply for the certificate. The application form shall provide such information as the Chief of Police deems necessary to determine the vehicle satisfies the requirements of this Article.

(d) If, after review of the application and inspection of the vehicle, the Chief finds the application and vehicle comply with the requirements of this Article, the Chief shall forward a recommendation to the Council for action.

(e) Each vehicle shall be inspected at least annually, after any accident, and may be inspected more frequently as necessary to assure compliance with this Article.

(a) The franchisee shall not engage any person to operate or drive a vehicle to be used for taxi service unless the driver is duly licensed and qualified to carry passengers. A driver who has been convicted of a crime involving moral turpitude, including, but not limited to, using, possessing, selling or transporting any controlled substance or dangerous drug, or who has been convicted of driving under the influence of alcohol or drugs within three (3) years of the application, or who has been convicted of reckless driving within two (2) years of the application, shall be presumed not qualified to operate a taxi within the City.

(b) Prior to commencement of service, each driver engaged by the franchisee to drive a vehicle to be used for taxi service shall obtain a certificate from the Chief of Police the driver has complied with this section. The certificate shall also be obtained each time the franchisee proposes to substitute or add a new driver to provide taxi service.

(c) The Chief shall prepare forms to be used to apply for a driver's certificate. The application form shall provide such information as the Chief deems necessary to determine the driver satisfies the requirements of this Article.

(d) If, after review of the application and the applicant's driver's record, the Chief determines the application and the driver comply with the requirements of this Article, the Chief shall issue a certificate to the driver.

(e) Each driver's certificate shall be reviewed at least annually, after any accident, and more frequently as necessary to assure compliance with this Article.

(a) Every vehicle used for taxi service shall display the following in a place visible from the passenger's compartment: a notice showing the name of the franchisee; the certificate issued by the Chief of Police under this Article for the vehicle and for the driver; and the rate schedule approved by the Council.

(b) The driver shall take the most direct route possible that will carry the passenger safely and expeditiously to their destination unless specifically directed otherwise by the passengers.

(c) When a vehicle is engaged, the passengers have the exclusive right to full and free use of the passenger compartment and no additional passengers shall be solicited or carried therein, without the consent of the existing passengers.

(d) Any passenger who refuses to pay the fare upon arrival at the passenger's destination, shall be guilty of an infraction.

The franchisee shall secure an encroachment permit from the Director of Public Works before establishing any fixed points of departure within the City. As used herein, a fixed point of departure for taxi service is also known as a "taxi stand." The City Manager may issue an encroachment permit as to any state highway within the City provided that this Code is first approved in writing by the California Department of Transportation.