ARTICLE 1. TAXICAB FRANCHISES

PUBLIC TRANSPORTATION VEHICLE: Any motor propelled vehicle, not otherwise defined in this section, used in the business of transporting passengers over the streets of the city, irrespective of whether or not any fee, compensation, or consideration is paid for such transportation.

SIGHTSEEING VEHICLE: Any motor propelled vehicle used for the transportation of passengers over the streets of the city for the purpose of showing points of interest or showing or exhibiting lands, houses, property, or any other thing or object for consideration.

TAXICAB: Any motor propelled vehicle which is designed to carry not more than eight (8) persons, excluding the driver, and is either equipped with a taximeter or a top light or has the words "taxi", "cab" or "taxicab" displayed on the exterior of the vehicle, and is used for the transportation of passengers for hire within and without the boundaries of the city, for which a fee is charged and that does not operate over a defined route.

TAXIMETER: An instrument or device by which the charge for the hire of a taxicab is registered, calculated, or indicated by figures in accordance with the distance traveled and/or the time elapsed.

TRANSPORTATION OFFICIAL: With respect to matters governing taxicabs and the taxicab franchise system, "transportation official" shall mean the director of public works services or his or her designee. With respect to matters governing public transportation vehicles other than taxicabs, "transportation official" shall mean the director of community development. (Ord. 15-O-2671, eff. 2-6-2015)

7-4-102: FRANCHISE REQUIREMENTS:

A. No person or corporation or membership organization shall operate a taxicab service without a franchise granted by the city. Franchises convey a nonexclusive right to operate a taxicab service in the city. The city may issue additional franchises at any time for any reason at the city's sole discretion.

B. Franchises shall be awarded by the city council through a competitive process initiated through a request for proposals issued by the city. Any taxicab franchisee whose franchise has been revoked shall thereafter be prohibited from competing for award of a franchise for a period of three (3) years following the scheduled expiration of its franchise agreement.

C. Upon the award of a franchise, the franchisee shall enter into a franchise agreement with the city. The franchise agreement may impose obligations on the franchisee that are additional to but do not conflict with those imposed pursuant to this chapter.

D. Franchises shall be valid for a three (3) year term. In accordance with subsection 7-4-103E of this chapter, the city may extend the term of the franchise in writing for an additional two (2) year term, and thereafter, for five (5) additional one year terms, for a total term of up to ten (10) years. No later than ten (10) years after award of the initial franchise by the city, the city will issue another request for proposals, and existing franchisees will be permitted to present a proposal.

E. Each taxicab franchisee shall pay to the city an annual franchise fee, established by resolution of the city council, for the privilege of operating a taxicab service in the city. The franchise fee shall be a fixed amount per franchise plus amounts per vehicle. Such franchise fee shall be in addition to any other prescribed fees, including, but not limited to, business license and permit fees. The franchise fee shall be due upon execution of the franchise agreement and on each anniversary date thereafter, unless otherwise specified in the franchise agreement. Failure to pay the full franchise fee when due shall be cause for revocation of the franchise. In the event that a franchisee adds to its total number of vehicles or drivers during a franchise year, a fee, prorated on a monthly basis, per vehicle or driver shall be due upon issuance of the vehicle or driver permit.

F. Each taxicab franchisee shall maintain in operation in the city at all times a minimum number of properly permitted taxicabs as determined by the transportation official or such higher number as specified in its franchise agreement.

G. Franchisees shall provide and maintain a physical location for holding of vehicles and operation of the business, including maintenance of records and retrieval of lost property, within twenty (20) miles, by the most direct street route, of Beverly Hills City Hall.

H. Franchisees shall operate a computer dispatch service providing for the ability to obtain taxi service by telephone twenty four (24) hours a day, everyday of the year from anywhere in the city. Franchisees shall provide and maintain a telephone number for ordering taxi service which is toll free from every location in the city.

I. Franchisees shall maintain the infrastructure needed to enable its taxicabs to accept payment by major credit cards, debit cards, and the Beverly Hills senior taxi swipe card complying with detailed requirements established in the applicable rules and regulations.

J. Franchisees shall comply with all provisions of the Americans with disabilities act and its implementing regulations regarding vehicles and provision of service. Franchisees shall ensure that customers with disabilities, including those using wheelchairs, can request service and be transported in an appropriate vehicle, with the same response time as customers without disabilities.

K. If, at any time, the city determines that there is a need for additional taxicabs in the city, it may conduct a competitive procurement for one or more additional franchises; alternatively, it may increase the authorized number of taxicabs of existing franchisees, in which case preference for additional authorized permits may be given to those companies with the highest scores in the most recent annual evaluation conducted pursuant to section 7-4-103 of this chapter. In the event that the city reduces a franchisee's authorized number of taxicabs or revokes its franchise, the city may elect to conduct procurement for additional franchisees or the reduced or eliminated permits may be retired or redistributed to other franchises and preference may be given to those companies with the highest scores in the most recent annual evaluation.

L. A franchise, or any interest in a franchise, shall not be sold, leased, assigned, hypothecated, or otherwise transferred or disposed of without the prior written consent of the city, and then only under such terms and conditions as may be prescribed by the city. The sale, assignment, transfer or other disposition of any of the issued and outstanding capital stock or ownership interest of the franchisee or of any general partner or joint venture or member of the franchisee, if a partnership or joint venture or membership exists, which shall result in changing the control of franchisee, shall be construed as an assignment of the franchise. Change of control shall mean a transaction whereby a transferee acquires a beneficial ownership interest in the franchisee or any general partner or joint venturer or member of franchisee, such that after such transaction there is a change of identity of the person or entity that has the power to direct or cause the direction of the management and policies of the franchisee, whether through the ownership of voting securities, by contract, or otherwise.

M. Franchisees shall not conduct or authorize any marketing that has the intent or effect of confusing the public about the identity of the franchisee or that describes service policies that do not comply with city rules.

N. Franchisees shall, as required by the transportation official, maintain written and electronic records of its operations at the location required by subsection G of this section, and provide access to these records to the city. (Ord. 15-O-2671, eff. 2-6-2015; amd. Ord. 16-O-2705, eff. 8-5-2016)

7-4-103: EVALUATION OF FRANCHISES; GROUNDS FOR SUSPENSION, REVOCATION OR SANCTIONS:

A. Franchisees shall at least annually compile and submit periodic reports of service provided, service quality, compliance with city rules and requirements of the franchise agreement, and other matters. The transportation official shall promulgate rules defining the frequency, content, and format of the required reports.

B. Franchisees shall be evaluated annually on the basis of service quality; compliance by the franchisee, its affiliated vehicle owners, and its drivers with the city's taxicab rules and codes; compliance with terms of the franchisee agreement; and other matters as determined by the transportation official. Franchisees that fail to meet the city's standards may be placed on probation, be assessed monetary penalties, may have their franchise suspended or revoked, may have their number of authorized vehicles reduced, or may not have their franchise extended. The transportation official shall establish service quality standards and other measures and criteria to be used in the annual evaluations. On the basis of the annual evaluation, the transportation official shall recommend to the traffic and parking commission any action to be taken. Each franchisee shall be notified in writing of the outcome of its evaluation and the recommended action.

C. No sooner than fourteen (14) days after notice in writing to a franchisee of a recommended action based on an annual evaluation, the traffic and parking commission shall hold a public hearing. At least ten (10) days' notice of the hearing shall be provided to the franchisee. At the conclusion of the public hearing, the commission may accept, reject or modify the transportation official's recommendation and impose probation, assess monetary penalties, suspend or revoke the franchise, reduce the number of authorized vehicles, or elect not to extend the franchise. If a franchisee is placed on probation, it shall be notified of the terms of the probation and shall be subject to reevaluation no later than six (6) months after being placed on probation.

D. If the traffic and parking commission puts a franchisee on probation, assesses monetary penalties, suspends, revokes, reduces the number of authorized vehicles, or elects not to extend the franchise, the effect of the decision shall be stayed for fourteen (14) days during which time franchisee may appeal the decision to the city council. In the event the franchisee provides written notice of appeal within fourteen (14) days of the decision, the effect of the decision shall be further stayed until the city council has heard the appeal and rendered a decision.

E. In the case of a franchisee whose evaluation indicates that it has met the city's standards for services provided and has a good record of compliance with city rules and the requirements of the franchise agreement and any other matter that is the subject of the evaluation, the transportation official may recommend that the term of the franchise agreement be extended. The traffic and parking commission shall review the recommendation of the transportation official and shall recommend to the city council whether the franchise agreement should be extended, and if so, by how much and subject to what conditions. (Ord. 15-O-2671, eff. 2-6-2015)

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