Presentation Title Transportation Network Companies (TNCs) Subtitle - PowerPoint PPT Presentation

Taxi Code Review and Policy Discussion of Presentation Title Transportation Network Companies (TNCs) Subtitle (optional) Date October 6, 2014 Vancouver City Council Workshop Vancouver City Council Workshop/Public Hearing Staff, Title Staff, Title Lloyd Tyler, Chief Financial Officer Carrie Lewellen, Treasurer Brent Boger, Assistant City Attorney Taxi Code and Policy Discussion of TNCs - 1

Presentation Overview 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 Taxi Code and Policy Discussion of TNCs - 2

Transportation Types 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) Taxi Code and Policy Discussion of TNCs - 3

Taxi Regulation in Metro Area Taxi Code and Policy Discussion of TNCs - 4

History of City Taxi Code • 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 Taxi Code and Policy Discussion of TNCs - 5

History of City Taxi Code Vehicle-for-Hire Ordinance (2006) – • Policy Discussion prior to enactment: – Open Entry Model (recommended by staff, based on 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 Taxi Code and Policy Discussion of TNCs - 6

History of City Taxi Code 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 Taxi Code and Policy Discussion of TNCs - 7

History of City Taxi Code 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 Taxi Code and Policy Discussion of TNCs - 8

Arrival of TNCs (Uber) 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 Taxi Code and Policy Discussion of TNCs - 9

What is Uber? A $17 billion global ridesharing network that uses a digital platform to connect passengers to ridesharing operators 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. Taxi Code and Policy Discussion of TNCs - 10

Uber Operations • 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. Taxi Code and Policy Discussion of TNCs - 11

Pros/Cons of City Taxi Code 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. Taxi Code and Policy Discussion of TNCs - 12

Policy Issues 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? Taxi Code and Policy Discussion of TNCs - 13

Council Discussion & Direction 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 options and monitors the market. Taxi Code and Policy Discussion of TNCs - 14

Questions and Discussion 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 To request other formats, please contact: City Manager’s Office (360) 487-8600 | WA Relay: 711 Amanda.Delapena@cityofvancouver.us Taxi Code and Policy Discussion of TNCs - 15

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