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19 - Vehicles for Hire - provides a penalty for failure to obtain licenseItem No. 19 Memorandum TO: Mayor & City Council Grayson Path, City Manager FROM: Stephanie H. Harris, City Attorney SUBJECT: VEHICLES FOR HIRE ORDINANCE BACKGROUND: Council has been granting licenses to taxicab and shuttle services for years via individual ordinance in conformance with Charter Section 124; however, the Council has never adopted an ordinance which provides for a penalty for failure to obtain such a license. STATUS OF ISSUE: This ordinance provides a definition for vehicles for hire and provides for a penalty for operating a vehicle for hire service without a license. In addition it sets for the application requirements. This will not affect our practice of granting these licenses, the provisions in such licenses, or the requirements for obtaining a license. It will make it easier for businesses to find the requirements, and it is similar to our ordinance for granting solid waste permits, which permits are also authorized by Charter Section 124 and are granted by ordinance. IL� �WA RECOMMENDATION: Approve the Ordinance Adopting Chapter 33, "Vehicles for Hire." ORDINANCE NO. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS, ADOPTING CHAPTER 33, "VEHICLES FOR HIRE," PROVIDING A REPEALER CLAUSE; PROVIDING A SEVERABILITY CLAUSE; PROVIDING A SAVINGS CLAUSE; PROVIDING A PENALTY CLAUSE; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, pursuant to the Charter of the City of Paris, Texas, Sec. 124, the use of public streets, highways, alleys, and thoroughfares of this city which does not require digging up or similar interference with said streets, alleys, or highways for the installation of equipment, appliances, or appurtenances shall be treated and considered as a privilege, subject to the control and disposition of the City Council; and WHEREAS, furthermore, such privilege over and upon the said public streets, alleys, highways, and thoroughfares of the city shall not be granted to any person or corporation excepting when the public necessity and convenience may require such use and when given by ordinance passed by a two-thirds (2/3) vote of the City Council; and WHEREAS, the operation of vehicles for hire such as taxicabs, limousines, and shuttle services on the city streets, highways, alleys, and thoroughfares constitute such a privilege; and WHEREAS, the City Council has passed ordinances granting permits to operators of vehicles for hire in the past but desires to set out the requirements for the application for and granting of permits by ordinance for the operation of vehicles for hire and to provide a penalty for the operation of vehicles for hire within the city without having applied for and received said permit; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS: Section 1. That the findings set out in the preamble to this ordinance are hereby in all things approved. Section 2. That the City Council hereby Adopts Chapter 33, "Vehicles for Hire," as set forth in its entirety as follows: 1 "Chapter 33: Vehicles for Hire "Sec. 33-1. Purpose of chapter. "It is the purpose of this chapter to effectuate the Section 124 of the Charter of the City of Paris, Texas insofar as it pertains to the regulation by ordinance the operation of vehicles for hire on the city's streets, alleys, highways, and thoroughfares, such operation having been deemed a privilege subject to the control and disposition of the city council. "Sec. 33-2. Definitions "The following terms, when used in this Chapter, shall have the meanings ascribed to them by this section: "City means the City of Paris, Texas. "City Council shall mean the governing body of the City of Paris, Texas. "License shall mean a license granted by the City Council by ordinance granting an owner or operator of a Vehicle for Hire to operate within the City. "Person means an individual, corporation, agency, trust, partnership, business entity, or two or more persons having joint or common economic interest. "Vehicle means a device that can be used to transport persons or property on a public street within the corporate limits of the City. "Vehicle for Hire means every vehicle that is chauffeured that transports passengers over City Streets for a fare or compensation. The term Vehicle for Hire shall not include: (1) Vehicles operated by a transportation authority or a transit authority in accordance with state or federal law; (2) Vehicles being used as ambulances; (3) Vehicles rented or leased for self -operation by the person who drives the Vehicle, unless such a Vehicle is transporting persons for compensation; or (4) Any bus or shuttle service operated or subsidized by a governmental body, or non- profit corporation for the purpose of providing public transportation or providing rides to elderly or disabled clients. "Sec. 33-3. Violations. "The violation of any of the provisions of this chapter constitutes a misdemeanor and 2 shall be punished by a fine not to exceed five hundred dollars ($500.00) in accordance with section IT1-6 of this Code of Ordinances. Offenses committed under this article are strict liabilityoffenses, and the City need not either plead or prove any mental state at the trial of any violation brought under this chapter. Each and every violation shall constitute a separate offense. "Sec. 33-4. License required. "(a) No person, firm, corporation, or other entity, excluding the City, shall be granted the privilege to use the public streets, alleys, or thoroughfares within the corporate limits of the City for the purpose of engaging in the business of operating a Vehicle for Hire without first having obtained a license from the City. Failure to obtain a license prior to operating a Vehicle for Hire within the corporate limits of the City shall be a violation of this chapter punishable as set forth in Section 33-3 herein. "(b) Each license issue by the City will contain the following provisions: "(1) That the right, privilege, and grant therein contained shall not be transferred or assigned by Licensee without first obtaining the formal action and written consent of the City Council of the City of Paris, and any attempted assignment or transfer of said rights and privileges by the Licensee without first obtaining such consent and permission from the City Council of the City of Paris shall operate, ipso facto, as a termination of the rights, privileges, and grant herein contained. "(2) That the Vehicle for Hire business operated or maintained under the license shall be used for the purpose of the transportation of passengers and the personal luggage of such passengers. "(3) That all automobiles or vehicles used in connection with the Vehicle for Hire business shall be maintained and operated in safe condition in accordance with the laws of the State of Texas and ordinances of the City of Paris. "(4) That the City of Paris, in granting this license, fully retains and reserves all the rights, privileges, and immunities that it now has under the law to fully use, patrol and police the public streets, alleys, and rights-of-way within the City, and the granting of this license shall in no way interfere with the rights of the City of Paris to fully use said streets, alleys, and rights-of-way for any other public utility or public purpose, nor shall this license in any way interfere with the City's right to improve or maintain any streets, alleys, or rights-of-way in the City of Paris, and the rights of the Licensee herein to use said streets shall, at all times, be subservient to the right of the City Council of the City of Paris to fully exercise its rights or control over said streets, alleys, and public ways. "(5) That the Licensee shall, prior to the effective date of this license 3 agreement, pay to the City of Paris, at the office of the City Clerk of the City of Paris, 150 1st Street S.E., Paris, Texas, in lawful money of the United States, a sum equal to $50.00 per vehicle used in the operation of said Vehicle for Hire business. This payment shall represent the license payment due the City of Paris and failure to pay said license fee when due may result in forfeiture of this license. No reimbursements will be made to Licensee if Licensee reduces the number of Vehicles for Hire during the license year. "(6) That the City of Paris expressly reserves the right to modify, amend, alter, change, or eliminate any of the provisions of this license, during the life of the same, for the following purposes, to -wit: (A) To eliminate or delete from the same such conditions as then prove obsolete or impractical; and, (B) To impose such additional conditions or requirements upon the Licensee as may be deemed necessary and reasonable, such conditions or requirements to be those as may be deemed necessary for the purpose of insuring adequate service to the public or protecting the health, safety and general welfare of the citizens of Paris. "(7) That, notwithstanding what may be said in any other portion of this ordinance with reference to the termination hereof, this right is granted subject to the provisions of Article I, Sections 17 and 26 of the Constitution of the State of Texas, all applicable state laws, City Charter provisions, and any other laws that may be enacted in the future by the Texas Legislature, or amendments to the Constitution and the Charter of the City of Paris. Furthermore, the City Council of the City of Paris reserves the absolute right, upon notice and hearing, which said notice shall be given to the Licensee not less than ten (10) days before such hearing, to absolutely terminate this grant and license for any violation of the terms and provisions of this ordinance. "(8) That it shall be unlawful for Licensee, its agents or employees, while operating any Vehicle for Hire within the City of Paris, to cruise. Cruising shall consist of seeking, searching, or soliciting employment while operating an automobile for hire by repeatedly and persistently driving such automobile for hire up and down on the public streets of the City of Paris and offering accommodations thereof to prospective passengers, whether by signal, word of mouth, or by carrying a sign with the word "For Hire" thereon, or some other word of similar import, or otherwise, or in any manner whatsoever operating said vehicle upon the public streets of the city of Paris for the purpose of soliciting passengers, or driving an automobile for hire upon the public streets while unoccupied by a passenger without having a fixed destination thereof. "(9) That Licensee shall, at all times during the effective period of this license, 4 keep and maintain, in full force and effect, a policy or policies, of automobile liability insurance coverage which fully meets or exceeds coverage in the following amounts: for each accident, personal injury coverage in the amount of $50,000.00 per person and $100,000.00 aggregate, and property damage coverage in the amount of $50,000.00. The insurance policy shall also provide coverage for bodily injury to passengers and/or property damage and shall indemnify the City of Paris, its elected officials, officers and employees from and against any and all claims for damages, personal injuries, or property damages sustained as a result of the negligent operation of any motor vehicle by the Licensee, their agents or employees, and shall pay all premiums due thereon when due. Said policy shall also list the City of Paris, its elected officials, officers and employees as additional insured under the required coverage. It is expressly provided that such insurance policy, or policies, shall, and must, be written and issued by a reputable insurance underwriter, or underwriters, authorized to do business in the State of Texas, subject to approval by the City Attorney of the City of Paris; and the Licensee, or their insurance carrier or carriers, shall deliver a copy of any such policies to the City Clerk of the City of Paris, 150 1st Street S.E., Paris, Texas 75460, or furnish to said City Clerk a current letter or certificate from such company, or companies, evidencing the fact that such insurance is in full force and effect at all times during the effective period of this license. All such policies shall be written so that the City of Paris will be notified of cancellation or of any material change to the policies at least ten (10) days prior to the effective date of such cancellation or amendment. Notice shall be by certified mail, return receipt requested, addressed to the City of Paris c/o City Clerk, City of Paris, P. 0. Box 9037, Paris, Texas 75461-9037. "(10) The Licensee shall promptly respond to all claims filed against them for injury or damage to property arising from the operation of their taxicabs and/or shuttle vehicles; and well and truly pay directly to every judgment creditor who has been injured through the negligent operation of any motor vehicle by the Licensee, their agents or employees, or whose property has been damaged, any amount, or amounts, of money that shall have been awarded by final judgment of any court of competent jurisdiction against such Licensee on account of any such injury or damage. "(11) That in the event Licensee fails to provide the City with a current Certificate of Insurance with appropriate insurance coverage for all vehicles operated under this License and/or Licensee fails to fully discharge any claim for damages or injuries established by final judgment of a court of competent jurisdiction within sixty (60) days after the same has been so established, such failure shall constitute grounds for termination of this license. "(12) That every Vehicle for Hire operated by Licensee under this license shall, at all times, have painted, or otherwise impressed upon the front doors thereof, easily visible signs bearing proper identification of the company operating under this 5 license. All such vehicles shall be owned by and registered in the names of the Licensee, and no other vehicle may be used or operated by Licensee on the streets of the City of Paris under this License. Each of such vehicles shall be registered with the City Clerk of the City of Paris by motor vehicle in numerical order, beginning with the number 1, which number shall, at all times, be displayed at some convenient location on both sides of said vehicles. "(13) That in accepting this License, Licensee agrees that they shall not discriminate against or refuse business to any person on the basis of race, color, creed, sex, or national origin. Any proven violation of this section of the license may result in an immediate suspension or forfeiture of this taxicab license. "(14) That it shall be the duty of the City Council of the City of Paris, by and through its City Manager, to enforce the provisions of this ordinance and all applicable regulations, which, when approved by the City Council, shall become binding upon the Licensee herein. Among other things, the City Council shall, from time to time during the term of this license, have the power and authority to promulgate effective regulations concerning the following, to -wit: (A) To make reasonable orders respecting character, extent, quality, safety and standard of service Licensee is to provide under this license; (B) To fix such rates for service to the public as are not in conflict with the express provisions hereof and as will provide for Licensee a reasonable and fair rate of return upon the fair value of the property used and useable in connection with the rendering of service to the public under this license; and, (C) To make such other rules and regulations as may be reasonably necessary to facilitate clean and professional Vehicle for Hire business to be rendered to the public under this license, any such rules and regulations, when adopted, to be binding upon the Licensee herein. "(15) That motor vehicles operated by Licensee under this license shall be known as "Vehicles for Hire" and, when not in use in the exercise of the privileges granted herein, shall be stationed or parked at the principal offices of the Licensee, which principal offices shall be located on private property. "(16) That the Licensee shall promptly pay all lawful ad valorem taxes and such other levies and assessments, if any, that may be lawfully imposed upon it. Failure to pay any of such charges, or either of them, shall be deemed a breach of the N license granted herein, and the City, upon the happening of such event, may declare the rights of the Licensee hereunder forfeited for such breach. "(17) That this grant is made upon the express condition that the non- exercise of the power to regulate rates and charges which the Licensee may charge to the public in the operation of their business shall never be construed as an acquiescence or recognition of the justness or correctness of said Licensee's established rate, and that, so long as the City Council of the City of Paris does not exercise its legislative and governmental power to fix and regulate the rates that the Licensee shall charge to the public, the question of property values used and useful in the rendering of the service prior to rate regulation shall never stop the City from determining the real or actual value of property used or useful in rendering such service. If, and when, the City Council or other governing body shall exercise the power to fix the rates to be charged for such service in the City of Paris, no allowance in the way of said rate shall be made as compensation for any property used or consumed in rendering the service by the Licensee's for such service. If, and when, the City Council decides to regulate rates, then, at such time, the Council will fully exercise its rate regulatory power under the provisions of law applicable thereto, and the failure to provide under this ordinance the machinery for the administration, legislative, or executive control of such matter shall not preclude the Council from fully exercising that power and providing suitable provisions to enforce such power. "(18) That any unwarranted and intentional neglect, failure, or refusal of the Licensee to comply with any of the conditions and stipulations contained in this license shall thereupon immediately, ipso facto, effect a forfeiture hereof, and the City Council may, thereupon, declare this license forfeited and may exclude the Licensee from further use of the streets of the city under this license, and the Licensee shall thereupon and immediately surrender all rights in and to the same, and this license shall become null and void and of no effect. "(19) That the grant of this license shall be and is hereby expressly conditioned upon the right of the City Council to adopt an ordinance or ordinances regulating the activities authorized herein, and upon adoption of said ordinance or ordinances, the City Council reserves the right at its discretion to supersede this ordinance with the requirements of said regulatory ordinance or ordinances, even if the term of this ordinance has not expired. "(20) That within ten (10) days after the passage of this ordinance by the City Council, the Licensee herein shall file with the City Clerk, in writing, the acceptance of the terms and provisions of this grant. "Sec. 33-5. Application for permit; issuance or permit; expiration; permit not transferable. 7 "(a) To obtain a Vehicle for Hire license, a person must submit an application on a form provided by the city manager or the city manager's designee. The applicant must be the person who will own, control, or operate the proposed solid waste collection service. "(b) The permit application shall include the following information: "(1) The applicant's name, address, and verified signature; "(2) The form of business of the applicant, and, if the business is a corporation or association, evidence of the authority of the person signing the application to represent the business; "(3) A description of all vehicles to be used by the applicant, including the vehicle type, capacity, vehicle identification number, and license number; "(4) A certificate of insurance or other evidence establishing that the applicant has motor vehicle liability insurance or other proof of financial responsibility as required by law; "(5) A certificate of insurance or other evidence establishing that the applicant has acquired, and shall during the terms of any permit issued hereunder, insurance as required by Section 33-4 (b) (9) herein. "(7) A statement and accompanying documentation in support of the public necessity and convenience for the issuance of the permit. "(c) Each application for a license shall be accompanied by a non-refundable application fee of fifty ($50.00) for each vehicle to be used in the Vehicle for Hire business. "(d) Upon a finding of public necessity and convenience for issuance of the license, and the adoption of an ordinance passed by a two-thirds (2/3) vote of the city council approving the permit, said license shall be issued. "(e) Each Vehicle for Hire license shall expire on December 31St of each year, and may be renewed by making application as provided in this section. "(f) The permit required by this section shall not be transferable. "Sec. 33-6. Revocation of permit. "The city manager or designee may revoke a license issued under this chapter permit for failure of the holder to provide required information, for failure to maintain adequate insurance, for failure to pay fees, for making false statements on the application, or for failure to comply with this article. The revocation may be appealed to the city council if written notice of a request for hearing is given to the city manager within ten (10) days of the receipt of the revocation order. The order of the city council approving or disapproving the order of the city manager shall be final." Section 3. That all provisions of the ordinances of the City of Paris, Texas in conflict with the provisions of this ordinance are hereby repealed, and all other provisions of the ordinances of the City of Paris not in conflict with the provisions of this ordinance shall n. remain in full force and effect. Section 4. That the repeal of any ordinance or part of ordinances affected by the enactment of this ordinance shall not be construed as abandoning any action now pending under or by virtue of such ordinance or as discontinuing, abating, modifying, or altering any penalty accruing or to accrue, or as affecting any rights of the municipality under any section or provisions of any ordinance at the time of passage of this ordinance. Section S. That it is the intention of the City Council of the City of Paris that this ordinance, and every provision hereof, shall be considered severable, and the invalidity or partial invalidity of any section, clause, or provisions of this ordinance shall not affect the validity of any other portion of this ordinance. Section 6. That any person violating any provision of this ordinance shall be guilty of a Misdemeanor, and upon conviction, shall be subject to a fine in accordance with provisions of Sec. 1-6 of Chapter One of the City of Paris Code of Ordinances, and each and every day's continuance of any violation of the above -enumerated sections shall constitute and be deemed a separate offense. PASSED AND ADOPTED on by the City Council of the City of Paris, in regular session on this the 26th day of October, 2020. ATTEST: Janice Ellis, City Clerk APPROVED AS TO FORM: Stephanie H. Harris, City Attorney 9 Steven J. Clifford, M.D., Mayor