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Taxi Code and Policy Discussion of TNCs - 1

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Date Vancouver City Council Workshop/Public Hearing Staff, Title Staff, Title

Taxi Code Review and Policy Discussion of Transportation Network Companies (TNCs)

October 6, 2014 Vancouver City Council Workshop Lloyd Tyler, Chief Financial Officer Carrie Lewellen, Treasurer Brent Boger, Assistant City Attorney

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What we plan to accomplish today:

• Review history of Vancouver’s Taxi Code (VMC 5.76)
• Discuss recent events impacting taxi market

– Introduction of Transportation Network Companies (TNCs) or Rideshare Companies like Uber

• Outline policy issues
• Seek Council direction

Presentation Overview

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City Licensed:

• Taxi – a vehicle for hire with a meter

State Licensed:

• For-Hire Vehicle – does not use a meter & charges

flat rates (e.g. medical transport; shuttle buses)

• Limousine – luxury vehicle that does not use a meter

Operate outside regulatory structure:

• TNCs & Rideshare companies (e.g. Uber, Lyft,

Sidecar)

Transportation Types

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Taxi Regulation in Metro Area

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• 1939: Taxi Driver Ordinance enacted
• 1959: Taxicab Ordinance enacted
• 1971: Amendments to Taxicab Ordinance
• 1997: Amendments to Taxi Driver Ordinance
• 2006: Combined two ordinances into one “Vehicle-

for-Hire” Chapter

History of City Taxi Code

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Vehicle-for-Hire Ordinance (2006) –

• Policy Discussion prior to enactment:

– Open Entry Model (recommended by staff, based

• n PSU study)

– Public Convenience & Necessity Model (adopted by Council)

• Limited the number of taxis, regulated the market, set

rates

• Created Private For-Hire Transportation Commission

History of City Taxi Code

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Transportation Commission –

• 2007 – 2010: Oversaw Taxi Regulation,

reported annually to Council, suggested code changes

• 2010: Ordinance was updated in response to

budget reductions

– Program administrator position was eliminated – Commission was suspended until 2012 – Finance Department took over administration of the taxi program

History of City Taxi Code

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Ordinance Changes in 2012 –

• Chapter narrowed to only taxi cabs & drivers

and named changed to Taxi Code

– Commission eliminated; fees increased – City Manager/Designee performs administrative functions & approves rate changes up to Council- set maximums – Renewals changed from annually to every other year

History of City Taxi Code

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June: City was notified by licensed taxi company of Uber’s driver recruitment efforts July: Staff met with the 3 licensed taxi companies to hear their concerns Legal Memo re: Uber - prepared by City Attorney’s Office August: Staff met with Uber & Gallatin to address questions

Arrival of TNCs (Uber)

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A $17 billion global ridesharing network that uses a digital platform to connect passengers to ridesharing

• perators who use their personal vehicles for

transportation, with operations in Washington State.

• Uber drivers go through a background check, carry specified

insurance, and have safety inspections on their late-model, street-legal vehicles.

• Riders download the app, sign up, and request a ride.
• The smartphone app connects driver and rider, with payment

being made automatically to the rider’s credit card at destination.

What is Uber?

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• Per June Legal Memo, Uber and its more than 40

local drivers are not operating legally in the City of

• Vancouver. Uber operations continue today.
• Licensed taxi companies are required to meet all

safety, licensing, and fee requirements of the City Taxi Code, while Uber operates illegally outside the Code, causing frustration on the part of the licensed taxi companies.

• Uber representatives have met with City Manager

and staff and are open to further discussions.

Uber Operations

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Pros:

• Taxi drivers pass background checks, take driver safety course,

provide adequate insurance coverage.

• Taxicabs undergo safety inspections of the vehicle and its

equipment.

Cons:

• Code is burdensome for taxi companies to comply with and for

City staff to administer.

• There is no staff to enforce the ordinance. Staff time to ensure

compliance could be spent on other programs.

• Fees cover less than the 25% cost recovery target.
• Code doesn’t allow new business models like TNCs.

Pros/Cons of City Taxi Code

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Public safety is a primary objective in our community and is at the heart of the Taxi Code.

• Are there other options that will ensure public safety but

are less regulatory and more flexible for new business models than the existing Taxi Code?

• Should Vancouver continue to regulate the taxi industry,

which results in less competition and greater protection for a few companies while other companies are prohibited from operating in the City?

• Should Vancouver consider an “open entry” model?
• Should the City wait for legislative clarification from the

State?

Policy Issues

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Policy Options:

• Make no changes to the Taxi Code. TNCs like Uber would

not be allowed to operate within Vancouver.

• Partially de-regulate taxi industry except for insurance,

vehicle safety inspections, and driver background checks so taxis and TNCs like Uber are treated in a similar manner.

• Fully de-regulate the taxi industry with licensing done by

the state.

• Take an interim step by negotiating with Uber to ensure

safety of vehicles and riders while the City researches

• ptions and monitors the market.

Council Discussion & Direction

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Lloyd Tyler, Chief Financial Officer, (360) 487-8469 Lloyd.Tyler@cityofvancouver.us Carrie Lewellen, City Treasurer, (360) 487-8482 Carrie.Lewellen@cityofvancouver.us Brent Boger, Assistant City Attorney, (360) 487-8503 Brent.Boger@cityofvancouver.us

Questions and Discussion

To request other formats, please contact: City Manager’s Office (360) 487-8600 | WA Relay: 711 Amanda.Delapena@cityofvancouver.us

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