La Puente Municipal Code Art. III Taxicab Operator's Franchise

No person shall engage in, conduct or carry on the business of operating a taxicab service, where such service originates in the city, without first having obtained a franchise and taxicab vehicle permit(s) issued under the provisions of Chapter 5.08 of this title. The city council shall issue one exclusive franchise for taxicab services within the city, to assure reliable, safe and quality taxicab service to city residents, and to eliminate undue congestion, disorganization and hazards associated with a deregulated taxicab environment. Upon issuance of one franchise, which franchise shall be exclusive and shall be applied for, granted, and in effect, all in compliance with the provisions of this chapter, the city shall not accept new or renewal applications for permits to operate a taxicab service. It shall be unlawful for any person other than the franchisee to engage in the business of operating or causing to be operated any taxicab service within the city, except that existing permits to operate a taxicab service will remain valid until their expiration.

(Ord. 823 § 1 (part), 2004)

The city council shall, by resolution, establish application fees, which shall be nonrefundable, for such franchise, and shall further establish franchise fees and terms for payment of such franchise fees, by resolution.

(Ord. 823 1 (part), 2004)

An applicant for a taxicab operator's franchise shall furnish the following:

(a) The legal name and actual street address of the applicant and all persons to be directly or indirectly interested in the franchise, if granted. If the applicant is a corporation, the name shall be exactly as set forth in its articles of incorporation. Additionally, the names and addresses of all directors, any stockholder holding ten percent or more of the shares of the corporation, and the name and address of an officer who is duly authorized to accept service of legal process shall be included. A corporate applicant shall also provide a certificate of domestic stock ownership. If the applicant is a partnership, the names and addresses of each general partner shall be stated. If one or more of the partners is a corporation, the provisions of this subsection pertaining to a corporate applicant shall apply. If the applicant is a cooperative, member stock-type operation, service organization, or association, the application shall include the names, addresses and business phone numbers of each of the officers, directors and each stockholder owning any portion of any stock of the organization or association, as well as the address to which notice, when required, is to be sent or mailed, and the names of every individual authorized to accept service or process on behalf of the applicant.

(b) The actual street address of the taxicab business. A person may not use a post office box, mailbox, message service or other similar device as the actual street address of the business for purposes of this section. A post office box, mailbox, message service or other similar device can be used as the mailing address of the business for business purposes only.

(c) A description of the facility proposed to house the intended business activity and its location.

(d) A full description of the intended business activity for which the franchise is requested and, if a new business, the starting date of such business activity.

(e) If the business is advertised to the public and operates under a name other than the name of the applicant, that name shall be included. The applicant shall give all fictitious business names used in Los Angeles County in the last five years.

(f) The location of any requested parking zones for taxicabs awaiting employment.

(g) A public convenience and necessity proposal which must contain the following information:

(1) The history of the organization, and the manner in which it is organized, including, without limitation, the date of formation, the business commencement date(s), and all business locations in California during the last five years;

(2) Proof of insurance meeting the requirements of Section 5.48.550 of this chapter;

(3) The type of radio dispatch proposed;

(4) The location of the garaging and/or dispatch facility;

(5) The color scheme, logo and insignia of the service's taxicabs;

(6) A description of the proposed uniform to be worn by the drivers of applicant's taxicabs.

(7) The make and type of taximeter intended to be installed in each taxicab.

(8) Evidence of the applicant's financial responsibility. Evidence shall include a certified financial statement and, if securing financing for more vehicles, then the agreements entered into for car sales or leases;

(9) The date, description and outcome of all enforcement actions (whether administrative or judicial) which any governmental or law enforcement entity in California has initiated or taken against the applicant in the last five years; and

(10) The names and addresses of all taxicab businesses of any form in which the applicant owns, or has owned, any beneficial interest in the last five years.

(h) The number of taxicabs proposed to be operated in the city, their make, model, year, and passenger capacity, license plate number, together with evidence satisfactory to the director that each taxicab proposed to be utilized has been safety inspected within a period of time satisfactory to the director, and otherwise complies in all respects with any and all applicable laws, rules, and regulations, and the total number of taxicabs presently operated by the applicant in other areas.

(j) The name, address and telephone number of the applicant's insurance company, as well as the policy numbers and a description of the kind and amount of liability, including common carrier, workers compensation, automobile, or other insurance held by the applicant, as applicable.

(k) Service standards the applicant will provide, including, but not limited to, the estimate of response time between placement of a telephone order and the arrival of the dispatched vehicle.

(l) Operating procedures adopted by the applicant, including but not limited to, record keeping practices, safety standards, maintenance schedules, dispatching procedures, and disciplinary rules.

(m) Special programs instituted by the applicant, including, but not limited to, drivers' education and training and community services.

(n) Any and all applicable agreements, articles, rules, bylaws and other memoranda of the applicant organization, evidencing its taxicab drivers’ agreement to be governed and bound in the operation of their taxicabs by the applicant organization's authority, supervision and control.

(o) The names, addresses and telephone numbers of no less than two individuals who may be contacted twenty-four hours a day, seven days a week, by the city in case of an emergency.

(p) The schedule of rates proposed to be charged.

(q) Such further information pertinent to the operation of the proposed taxicab franchise, including, but not limited to, the business backgrounds of the officers and directors, the business financial statements and lease arrangement, as either the director, the city council or the Los Angeles County sheriff may require.

(Ord. 823 § 1 (part), 2004)

The director shall conduct, or cause to be conducted, an investigation of the applicant:

(a) An application which is not complete shall be returned to the applicant, along with a list of its deficiencies, within fifteen calendar days of its receipt. The application shall be deemed abandoned if, within ten calendar days of the city’s first class mailing of any notice, the application is not received by the city with all of its defects entirely corrected.

(b) Once a completed application is filed and the applicant has paid the prescribed franchise fee, the director shall initiate an investigation of facts for each franchise application. This departmental review process shall ensure that the action on each franchise application is consistent with the intent and purpose of this title. Upon conclusion of the investigation, the director shall forward his or her recommendation to the city council.

(Ord. 823 § 1 (part), 2004)

Not more than forty-five days after filing of the fully completed application required by this chapter for the owner's franchise, the city council shall hold a public hearing thereon for the purpose of determining whether to award such franchise. Any person may appear before such hearing to either advocate or to protest the granting of such franchise. The city clerk shall fix the time for the public hearing, and shall notify the applicant thereof not less than ten days prior to such hearing.

(Ord. 823 § 1 (part), 2004)

Notice of the time and place of the public hearing required by the preceding section before the city council shall be published at least once, not less than ten days before the hearing, in a newspaper of general circulation in the city.

(Ord. 823 § 1 (part), 2004)

The city council may grant the franchise, if there is no reason to deny the franchise under Section 5.48.430 of this title, and if all of the following requirements have been met:

(a) Public convenience and necessity still justify the operation of an exclusive taxicab franchise in the city. In making this determination, the city council shall take into account all facts deemed pertinent and proper, which shall include, without limitation, whether or not:

(1) The applicant has complied with all of the provisions of the La Puente Municipal Code;

(2) The applicant is financially responsible and under efficient management;

(3) The applicant is capable of providing safe and prompt taxicab service, twenty-four hours daily;

(4) The proposed insignia and color scheme for the taxicab service does not conflict with that of any existing taxicab operator so as to deceive, or tend to deceive, the public. Upon such finding, the applicant may amend such application to designate a different color scheme or insignia;

(5) The applicant has presented evidence sufficient to justify operation of a specified number of taxicabs in the city of La Puente;

(6) The applicant is fit and proper person to have a taxicab operator's franchise;

(7) The imposition of any conditions is reasonably necessary to ensure that the applicant operates the taxicab service in compliance with this chapter and the public welfare.

(b) The level of service proposed is adequate to serve the public.

(c) The applicant has procured, posted or maintained in effect approved comprehensive automobile liability insurance, as required by Section 5.48.550 of this chapter.

(d) The applicant does not have a poor safety record with respect to the operation of his or her taxicab service in La Puente or other operating areas outside of the city of La Puente.

(e) The applicant does not have a record of complaints filed with the city of La Puente or other agencies in connection with his or her operation of a taxicab service.

(f) The vehicles which the applicant proposes to use in connection with the taxicab service are not in poor or inadequate operating condition.

(g) The establishment of the taxicab service will not be detrimental to the public health, safety or welfare.

(h) The applicant, or any of his or her employees or agents, has not violated any rule or regulation adopted by any governmental entity with respect to the applicant's operation of a taxicab service in other operating areas or in the city of La Puente.

(Ord. 823 § 1 (part), 2004)

No franchise granted pursuant to this chapter shall be effective unless and until the operator has executed an agreement, accepting the award of the exclusive franchise, in a form satisfactory to the city attorney. Such agreement shall be executed within ten days of the award of the franchise by the city council.

(Ord. 823 § 1 (part), 2004)

The exclusive franchise issued under this chapter will be for the term specified in the franchise agreement, commencing upon the effective date of the ordinance or resolution adopted by the city council that authorizes the franchise. At the expiration of the term, unless a new franchise is issued under the provisions of this chapter, or unless the city council, for good cause, extends the term of the original franchise, the franchise shall be deemed to have expired and shall no longer be valid.

(Ord. 823 § 1 (part), 2004)

No franchise awarded under this chapter shall be assigned or transferred without the prior approval of the city council, by resolution.

(Ord. 823 § 1 (part), 2004)

The city council may deny a franchise to any applicant if it appears, to its satisfaction, that: the applicant has been convicted of a felony or violation of any narcotic law or of any penal law involving moral turpitude; the applicant has failed to provide the necessary information required in Section 5.48.430; the applicant has been in violation of any of the terms of this chapter, or of any other laws or regulations relating to the conduct of a taxicab business; or any other reasonable cause exists which, within the council's sound discretion, would render the proposed operations undesirable or inadequate to the city of La Puente.

(Ord. 823 § 1 (part), 2004)

The city council may at any time, pursuant to the revocation or suspension proceedings as hereinafter described, revoke or suspend the franchise granted under this article, if it makes any of the following determinations:

(a) The operator fails to operate taxicabs in accordance with the provisions of this chapter;

(b) The operator discontinues or suspends service for a period of ten days without first having obtained permission from the city manager;

(c) The operator refuses to accept a request for service anywhere within the corporate limits of the city, having vehicles and drivers available for service;

(d) Taxicabs are operated at a rate of fare other than that specified in the franchisee's rate schedule then in effect and on file with the director, or at a rate in excess of any maximum rate schedule as set by the city council pursuant to Section 5.48.580(b);

(e) Any materially false statements in application for the franchise, or any extensions thereof, or in any information required to be furnished under this chapter; or failure to furnish any material or information required to be furnished to city under this chapter.

The city council shall initiate revocation or suspension proceedings by directing the city clerk to give written notice to said owner that a public hearing will be held thereon by the council. Such notice shall be given at least five days prior to the date of such hearing, and shall specify the grounds upon which revocation or suspension proceedings will be conducted. At such public hearing, the council shall consider all relevant testimony before making its determinations thereon. The determination of the city council shall be final.

Any person whose franchise is thus revoked shall not be eligible to apply for another for a period of one year from the date of such revocation.

(Ord. 823 § 1 (part), 2004)

The franchisee shall maintain accurate records relating to the ownership and registration of any of the franchisee's vehicles which it operates under the franchise. If the franchisee adds any vehicles to its operations under the franchise other than those which it has listed in its application, pursuant to Section 5.48.430(h), the franchisee shall, prior to placing the vehicle into service in the city, inform the director in writing of such vehicle's acquisition or transfer to its operations under the franchise, and shall give the date upon which such vehicle will be put into service under the franchise, and all other information required under Section 5.48.430(h), as well as any other information requested by the director related to such vehicle, its ownership, or use in the franchisee's business operations. The franchisee shall also keep accurate records on any vehicles listed in its application, or later acquired, which it removes from service under the franchise, including dates of such removal, disposition of the vehicle, and details of any transfer of ownership, together with copies of all documents related to such transfer. Prior to the start of the next calendar year quarter after the removal of a vehicle from service under the franchise, the franchisee shall inform the director in writing of that fact, and furnish any related information required by the director.

(Ord. 823 § 1 (part), 2004)

It shall be the responsibility of the operator to assure that every taxicab operated under its franchise is in safe working order and meets the requirements of the Vehicle Code of the state of California. When in operation, the interior and exterior of each taxicab shall be clean and well maintained at all times. The interior of each taxicab shall be cleaned daily. The exterior of each taxicab shall be washed not less than once a week and painted once each year; provided, however, that the painting thereof may be less frequent so long as the appearance thereof, including the color scheme, owner's trademark, monogram or insignia or other markings conform to the generally prevailing standard in the trade in the county of Los Angeles.

(Ord. 823 § 1 (part), 2004)

(a) The city council shall not issue a taxicab operator's franchise until the applicant has filed with the director proof of the automobile liability insurance required by this subsection for each taxicab to be operated pursuant to the operator's taxicab service.

(b) Every applicant for a taxicab operator's franchise shall obtain and maintain in full force and effect separate commercial automobile liability insurance for each vehicle proposed to be operated in connection with his or her taxicab service meeting the following requirements:

(1) The policy insurer must be either a carrier licensed by the state of California to sell commercial automobile liability in the state of California and be a member of the California Insurance Guarantee Fund, or maintain an AM Best rating of "A" or better (with proof of said licensing or rating to be provided by applicant);

(2) The policy shall be written with policy limits of: (1) not less than one million dollars combined single limit per occurrence, or (2) not less than five hundred thousand dollars per person, five hundred thousand dollars per accident, and three hundred thousand dollars for property damage;

(3) The policy shall be primary and not contributing to any other insurance maintained by the city;

(4) The policy shall name the city of La Puente, its city council, and its officers, agents and employees as additional insureds;

(5) The policy may include a property damage deductible or self-insured retention not greater than five thousand dollars per occurrence. Self-insured retention in excess of five thousand dollars may be acceptable upon satisfaction of the city's financial requirements, including proof of ability to pay claims inside the self-insured retention per vehicle;

(6) The policy shall provide the director with thirty days prior notice of any cancellation or modification of the policy; and

(7) A certificate of insurance shall be attached to every application for a taxicab vehicle permit submitted by the taxicab operator.

(c) The franchisee shall be required to sign an indemnification statement indemnifying the city of La Puente.

(d) Any franchisee who fails to have in effect or to maintain the required automobile insurance coverage, and who continues to allow taxicab operation, shall have his or her franchise suspended for a period not to exceed fifteen days, pending revocation proceedings pursuant to Section 5.48.520 of this chapter.

(Ord. 823 § 1 (part), 2004)

(a) Posting Requirements. Every taxicab operated shall display, in full view of passengers in both the front seat and the rear seat, in letters and figures which are clearly labeled and not less than one-quarter inch high: (1) a schedule of rates to be charged, and (2) a notice that a schedule of customary rates from La Puente to major points of interest is available on request. The schedule shall have printed thereon: the name of the taxicab operator under whose franchise the taxicab is permitted to operate, and the business address and telephone number where comments or complaints regarding the taxicab service may be directed.

(b) Taxicab Equipment. Every taxicab into which passengers are accepted for transportation within the city of La Puente shall have the following equipment:

(1) A taximeter, as defined in this chapter;

(2) A radio transmitter and receiver capable of two-way communication with a dispatcher;

(3) Legible signs posted inside and outside the taxicab to notify persons that the driver carries only five dollars in change on his or her person;

(4) A trunk device which will permit the opening of the trunk lid from the inside of the trunk;

(5) A permanent fixture to display the taxicab driver's permit in prominent view of the passengers;

(6) Prominent signs giving the name and telephone number of the taxicab operator and the taxicab number on the sides of the taxicab. The taxicab number shall also be conspicuously displayed on the rear portion and inside of the taxicab;

(7) No fewer than four working doors, except that a handicapped accessible mini-van may be used;

(8) A fire extinguisher;

(9) Four flares;

(10) At least two emergency reflectors;

(11) Spare tire and jack;

(12) Windows which customers can open from inside; and

(13) Working headlights, taillights, turn-signals, back-up lights, and brake lights, including the "cyclops" or third brake light, if the car has been manufactured in 1988 or later.

(c) Taximeter. Every taximeter shall be of such type and design as has been accepted by the California Department of Agriculture, and shall be maintained at all times in accordance with standards of accuracy established by such department. Every taximeter shall be placed so that the reading dial showing the amount to be charged shall be well lighted and readily discernible at all times by passengers riding in the taxicab. The taxicab operator shall have all taximeters tested by the county department of weights and measures for accuracy in accordance with the procedure of the department, and shall report the results in writing to the director within thirty days after such testing.

(d) Prohibited Equipment. No taxicab shall be equipped with scanners or other devices which can be used to intercept radio signals and dispatches sent to specific destinations.

(e) Misleading Documents. Receipts, cards, etc. issued by the driver to a customer shall match the taxicab and not mislead a customer to think that he or she patronized a taxi company other than the one actually patronized.

(f) Prohibited Advertising. It is illegal to direct advertisements primarily at La Puente residents, visitors, and businesses which represent that an operator is permitted to do business in La Puente, if the operator is not permitted in La Puente.

(g) Equipment Waiver Conditions. Notwithstanding the provisions of this article, the city manager may waive any equipment requirement, upon a showing of good cause by any applicant or franchisee. Such waiver shall be specified on the taxicab operator's franchise and any applicable vehicle permit.

(h) Vehicle Inspection. The taxicab operator shall perform a yearly inspection of all taxicabs operating as part of his or her taxicab service. Such inspection shall be made by a certified automotive repair dealer. Within ten days of the inspection, the taxicab operator shall provide the director with written confirmation, signed by that repair dealer, that the taxicabs have been inspected and are in good working order. Taxicabs which have been inspected pursuant to the requirements of another governmental entity may submit proof of such inspections in lieu of the inspection required herein.

(i) Record Keeping. The franchisee shall maintain the following records for each order of service:

(1) Location and time of pickup;

(2) Identification of order taker;

(3) Date and time of the order;

(4) Time delay quoted;

(5) Identification of dispatcher;

(6) Identification of taxicab dispatched;

(7) Time of dispatch; and

(8) Whether a handicapped accessible vehicle is requested.

Such records shall be available for inspection by the director and the sheriff for a period of at least six months.

(j) Information to Sheriff. Upon request, the franchisee shall inform the director or the Los Angeles County sheriff's department, or any duly authorized peace officer, of the names, addresses, and the source of all taxicab drivers' permits or vehicle licenses of all taxicab drivers employed, managed or otherwise connected to such taxicab operator.

(k) Changes in Members or Documents. An association, solely-owned partnership, stock corporation, franchise-type operation or cooperative stock-type operation issued an operator's franchise shall notify the director and the Los Angeles County sheriff's department immediately of any changes in membership, stock ownership, corporate officers, operating officers, or modification in operations, agreements, articles, bylaws or other memoranda of the franchisee, or in the operation of the taxicab service.

(l) Service Time Orders and Notice of Delays. Patrons shall be informed of the availability of taxi service. Orders for immediate service shall be dispatched within a five minute period, unless the patron is informed of a probable time delay. "Time orders" shall be dispatched so that the taxicab can arrive at the time promised.

(m) Taxicab Drivers—Permit Preconditions. A taxicab operator shall not permit any person to operate a taxicab authorized under his or her taxicab operator's franchise, unless such person has in his or her possession a valid driver's license issued by the state of California Department of Motor Vehicles, and a current taxicab driver's permit and taxicab driver's identification card obtained in accordance with the provisions of this chapter.

(n) Contracts and Agreements. Any taxicab under a taxicab operator's franchise may be operated pursuant to a driver's contract, agreement or understanding between either the taxicab operator or a taxicab driver operating under such taxicab operator's franchise. Such contract, agreement or understanding shall not relieve the taxicab operator or any taxicab driver from full and complete compliance with applicable provisions of this chapter.

(o) Operator Compliance Responsibility.

(1) The taxicab operator issued a franchise under this chapter is responsible for submitting a complete list of its permitted, duly qualified drivers every calendar month to the director, and shall notify the director within forty-eight hours of the termination of any employee employed as a taxicab driver.

(2) The taxicab operator issued a franchise under this chapter shall hire and contract with a professional manager to act as the operating officer of that taxicab operation, and that qualified manager shall be responsible for the oversight and management of that taxicab operation. The professional manager selected shall have no less than three years experience in the transportation industry, or the equivalent training in management.

(3) The taxicab operator issued a franchise under this article is responsible for complying with the provisions of this article, any rules or regulations adopted by the city council, or promulgated by the director, and for obtaining the compliance of its officers, employees, taxicab drivers, association members, agents or any other person connected with such taxicab operator in providing taxicab service.

(p) Insurance Requirements. Continuing compliance with Section 5.48.550 of this chapter.

(q) Presentment of Taxicab Driver's Permit. Every taxicab shall be required to affix its vehicle permit on the rear windshield of the taxicab so that it is clearly visible from outside the vehicle. If, because of the presence of other stickers required by law, the sticker cannot be placed on the rear windshield, the sticker shall be attached to the vehicle in a conspicuous location, as close as possible to the windshield and in a manner clearly visible from outside the vehicle. The taxicab operator may substitute one vehicle in place of another, if the substituted vehicle complies with the taxicab operator's franchise.

(r) Compliance by Taxicab Drivers. The taxicab operator shall not allow or encourage its taxicab drivers to violate any of the provisions in this chapter.

(Ord. 823 § 1 (part), 2004)

While carrying passengers, it shall be unlawful for a taxicab driver to: display the flag or device attached to the taximeter in such position as to denote that the vehicle is for hire, cause the taximeter to record when the vehicle is not actually employed, or fail to cause the device on the taximeter to be placed in a non-recording position at the termination of each and every service.

(Ord. 823 § 1 (part), 2004)

(a) The exclusive franchisee shall adopt a uniform and reasonable schedule of charges for use of taxicabs operated under its franchise, based upon the distance traveled or waiting time, or both, as may be indicated by such taximeter, which schedule of fares shall be filed with the director of public safety, or his or her designated representative, prior to being employed in the franchisee's operations. In no event shall the fares under such schedule exceed any of the fares that may be set forth in the maximum rate schedule, as adopted by the city council under subsection (b) below.

(b) The city council, at annual intervals, may, by resolution, and after public hearing and notice, establish a schedule of maximum rates to be charged by the franchisee operating under this chapter. In setting such maximum rate schedules, the city council may review and consider the average rates for taxicab service charged in La Puente, as well as in jurisdictions in the vicinity of La Puente, and any other factors which it deems relevant to its determination.

No duty described in this chapter shall be considered a mandatory duty for purposes of the California Torts Claim Act, Government Code Section 815, et seq. Specifically, the failure of the city to inspect any taxicab or the negligent inspection of any taxicab by the city shall not create liability on behalf of the city under this chapter, nor shall the issuance of any franchise or permit, nor the failure to suspend or revoke any franchise or permit.

(Ord. 823 § 1 (part), 2004)