AGENDA REQUEST AGENDA ITEM NO: XII.A.3. Legislative Public Hearings. July 6, 2015 BY Parking Management Mark Lyons Parking Manager Lyons SUBJECT:

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1 AGENDA HEADING: Legislative Public Hearings AGENDA REQUEST COMMISSION MEETING DATE: July 6, 2015 BY Parking Management Mark Lyons Parking Manager Lyons AGENDA ITEM NO: XII.A.3. Originating Department SUBJECT: Department Head Presenter Public Hearing Re: Proposed Ordinance No , Transportation Network Companies (TNC) COMMISSION PRIORITIES: Business Requirement EXPLANATION: (see next page for additional explanation) At the June 1, 2015, Regular City Commission Meeting, staff was directed to return no later than July 6 with an ordinance for Transportation Network Companies. ADMINISTRATION'S RECOMMENDATION: Pass on first reading proposed Ordinance No APPROVAL SUMMARY: Approval Department Head Approval Deputy City Manager Approval City Manager Approval City Auditor and Clerk Approval Required Date Completed Y 06/25/2015 Y 06/29/2015 Y 06/29/2015 Y 06/29/2015 Completed By Mark Lyons Marlon Brown Marlon Brown Pamela Nadalini Status APPROVED APPROVED APPROVED APPROVED

2 ADDITIONAL EXPLANATION: AGENDA REQUEST Cities and counties in the State of Florida, and others across the country are working to accommodate Transportation Network Companies (TNC), like Uber, by creating ordinances that recognize the operational differences. Still, there are many challenges in reconciling current practices with desired changes that would require compliance with TNC permitting laws. While some nuances of their individual operations are addressed in this ordinance, there remain questions over the TNCs ability to self manage and validate critical information about drivers that has been historically performed by city staff, providing citizenry and city management levels of assurance that may not be afforded if these functions were only performed by a third party, or the controlling self interest of the operator. Across the State and in many other jurisdictions, agencies are retaining their right to perform background checks, ensure standards are met as they pertain to insurance, vehicle safety, and other driver rules, without restricting the TNC to operate. Some states are challenging the TNC's operating model that requires each driver enter agreement to work as an independent operator. Worldwide, there is still significant question about TNCs acceptance and willingness to work with and adapt to the City's unique regional requirements. One example of their unwillingness to work with local authorities is Uber cyber-blocks smartphone access preventing use of their app for the purpose of monitoring driver activity, or requesting their service for auditing purposes. Based on the recommendations provided by commissioners at the June 1 City Commission meeting, staff has developed a separate ordinance that addresses questions about the validation processes for licensing/permiting, and still provide TNCs a level of flexibility not provided other transportation firms. ADDITIONAL ADMIN RECOMMENDATION: FUNDING SOURCE: AMOUNT: HOUSING IMPACT (Per House): NEW CONSTRUCTION: REHABILITATION: $ 0 $ 0 SUPPORT DEPARTMENTS: - 2

3 AGENDA REQUEST COMMISSION ACTION: Final Action Motion: Motion By: AGENDA DISPOSITION Second By: Vote: 3

4 Transportation Network Companies (TNC) Summary of Ordinance Issue: TNC Typically identified as a company using digital network or software application service to connect passengers to transportation service. A TNC is not defined as to own, control, operate or manage the vehicles used by TNC Drivers, and is not a taxicab or vehicle for hire. Definition Transportation Network Companies City The City will define Transportation Network Companies as an organization regardless of what type or form, that provides on-demand transportation services for compensation using an online-enabled application or platform to connect passengers with drivers. Issue: Driver Criminal History and Background Checks TNC City TNCs and specifically Uber, has indicated they will Submit request for Level 2 National Criminal perform driver background checks and maintain History background and fingerprint analysis records privately. Uber will perform background annually. Process completed in approximately 2-5 checks, or have a third party perform checks for days. City requires annual review of backgrounds initial driver screening. TNC s claim to perform for licensing. national driver screening. Screening is estimated to take 3 weeks. Issue: Transportation Rates TNC City Uber sets its own rates, often at half the price of The City will place no restriction on rate setting by taxis. Base fare $1.25, $1.20 per mile, $.13 for 1 the TNCs, except that rate quoted through app minute stopped, $5 cancellation, surge pricing is must be same rate at completion of ride, including utilized during heavy traffic, holidays, special surge pricing. events, causing price increase over 200%-400% (depending on market events) of normal fare; Surge pricing is considered fundamental to Uber s business model. Initial pricing is set with customer at time of app connect, but is sometimes recalculated after the ride is completed. Issue: Vehicle Standards/Inspections TNC City Requires the vehicle not more than 10 years of Required inspection by A.S.E. Certified Mechanic age; no certified mechanical inspection required, using City s form, and City staff visually inspects. company does not perform a visual inspection. No vehicles older than 10 years permitted, without A.S.E. Mechanic certification and City s visual inspection and authorization. Page 1 of 23

5 Issue: Insurance Endorsement TNC City The following is provided by Uber website. Uber has not responded to our request for evidentiary payouts in cases where the policies were utilized. $1 million of liability coverage per incident. Uber holds a commercial insurance policy with $1 million of coverage per incident. Drivers liability to third parties is covered from the moment a driver accepts a trip to its conclusion. This policy is expressly primary to any personal auto coverage (However, it will not take precedence over any commercial auto insurance for the vehicle). We have provided a $1 million liability policy since commencing ridesharing in early $1 million of uninsured/underinsured motorist bodily injury coverage per incident. In December 2013, we also added uninsured/underinsured motorist coverage. In the event that another motorist causes an accident with an uberx vehicle and doesn t carry adequate insurance, this policy covers bodily injury to all occupants of the rideshare vehicle. This is important to ensure protection in a hit and run. Contingent comprehensive and collision insurance. If a ridesharing driver holds personal comprehensive and collision insurance this policy covers physical damage to that vehicle that occurs during a trip up to the actual cash value of the vehicle, for any reason, with a $1,000 deductible. No fault coverage (e.g., Personal Injury Protection) is provided in certain states at similar levels as limos or taxis in those cities. TNC required to possess liability insurance for each vehicle authorized for $500k combined S/L, $125K each person, $300K each accident. Minimum liability coverage shall not be less than required coverage for hire passenger transportation vehicles in F.S Policy shall make the city an insurance certificate holder, and shall insure to the benefit of any person injured/damaged to property caused by negligence of a certificate holder, or transportation network driver contracted with the certificate holder. Page 2 of 23

6 $50,000/$100,000/$25,000 of contingent coverage between trips.** During the time that a ridesharing partner is available but between trips, most personal auto insurance will provide coverage. However, the driver is also backed by an additional policy that covers driver liability for bodily injury up to $50,000/individual/accident with a total of $100,000/accident and up to $25,000 for property damage. This policy is contingent to a driver s personal insurance policy, meaning it will only pay if the personal auto insurance completely declines or pays zero. This policy meets or exceeds the requirements for 3rd party liability insurance in every state in the U.S. As always, all UberBLACK, UberSUV, or ubertaxi rides are provided by commercially licensed and insured partners and drivers. Those transportation providers are covered by commercial insurance policies, in accordance with local and state requirements. * This replaces our prior collision-only reimbursement program as of March 14, ** Effective as of March 14, 2014 in all U.S. states Last updated March 19, 2015 This post provides an informational summary of insurance policies for quick reference and does not affirmatively or negatively amend, extend, or alter the coverage afforded by those policies. Page 3 of 23

7 ORDINANCE NO AN ORDINANCE OF THE CITY OF SARASOTA, FLORIDA AMENDING THE CODE OF THE CITY OF SARASOTA; CHAPTER 36, VEHICLES FOR HIRE; CREATING AN ARTICLE III, TRANSPORTATION NETWORK COMPANIES; CREATING THE DEFINITION OF A TRANSPORTATION NETWORK COMPANY ( TNC ); PROVIDING FOR THE APPLICATION PROCESS FOR TNC COMPANIES AND DRIVERS TO RECEIVE APPLICABLE CITY CERTIFICATES, PERMITS AND LICENSES; PROVIDING FOR CITY BACKGROUND CHECKS BEING REQUIRED FOR TNC DRIVERS; PROVIDING FOR INSURANCE REQUIREMENTS FOR A TNC; PROVIDING FOR ENFORCEMENT PROCEDURES REGARDING VIOLATIONS OF ARTICLE III; CREATING A FINE SCHEDULE FOR CERTAIN VIOLATIONS OF ARTICLE III; REPEALING ORDINANCES IN CONFLICT; PROVIDING FOR THE SEVERABILITY OF THE PARTS HEREOF; PROVIDING FOR READING BY TITLE ONLY; AND FOR PROVIDING AN EFFECTIVE DATE. WHEREAS, the Sarasota City Code, Chapter 36, Vehicles for Hire, contains the process by which the City of Sarasota processes applications, registers and monitors taxicabs, pedicabs and other vehicles for hire; and WHEREAS, new and changing technology has led to the development of a new, vehicle for hire business model, commonly referred to as transportation network companies ( TNCs ) ; and WHEREAS, the City Commission finds that the creation of a new article/section under Chapter 36 is necessary to properly address the TNC business model, thereby enabling TNC companies to properly register with the City and also allowing the City to properly regulate TNCs. NOW, THEREFORE, BE IT ENACTED BY THE PEOPLE OF THE CITY OF SARASOTA, FLORIDA: Section 1. The Code of the City of Sarasota, Chapter 36, Vehicles for Hire, is hereby amended as follows:(additions to text are indicated by underline; deletions by strikeout.) Page 4 of 23

8 ARTICLE III. TRANSPORTATION NETWORK COMPANIES. Sec Definitions. For the purposes of this article, the following words and phrases shall have the meanings respectively ascribed to them by this section: Applicant means every person who makes application to the parking operations division for a transportation network certificate, vehicle permit or a public transport license. In service as a transportation network vehicle in the city shall mean any transportation network vehicle operating with the intent to locate customers for pickup and subsequent transport through the city limits where pickup is: 1) within the City or 2) in any location, within five-hundred (500) feet of the municipal limits, or 3) where any portion of a property or address of pickup is located within the municipal limits. Manifest means a record kept, in any format acceptable to the City, by the driver of a transportation network vehicle of all trips made by such driver showing time and place of origin, destination, number of passengers, and the amount of fare for each trip. Operation of a transportation network vehicle or operating a transportation network vehicle means offering, making available, or using a transportation network vehicle to provide a transportation network service, including any time when a driver is logged onto the transportation network company s internet-enabled application or digital platform showing that the driver is available to pick up passengers; when a passenger is in the vehicle; when the company s dispatch records show that the vehicle is dispatched; or when the driver has accepted a dispatch and is enroute. Person means all persons, partnerships, firms, companies, corporations and any others whatsoever owning, controlling or having charge of a transportation network company or transportation network vehicle. Physically disabled passenger means any person suffering from a physical disability, leaving that person mobility-impaired requiring the use of prosthetic equipment, including, but not limited to, crutches, walkers, canes or wheelchairs. Public transport license means a license issued to a transportation network driver by the parking operations division authorizing the holder thereof to drive a transportation network vehicle. Transportation network company (or TNC ) is defined as a person, an organization, a corporation, partnership, sole proprietor, or other form of business entity that offers on demand transportation services for compensation using an online-enabled application or platform to connect passengers with drivers. 2 Page 5 of 23

9 Transportation network company certificate means a certificate issued to a transportation network company by the parking operations division authorizing the holder thereof to engage in the business of operating a transportation network company and providing transportation network service in the city. Transportation network certificate holder (or certificate-holder ) means the holder of, or a person that is required to hold, a current valid transportation network company certificate issued pursuant to this chapter. Transportation network driver (or driver ) means an individual affiliated with a transportation network company transporting passengers for compensation using a transportation network vehicle. Transportation network service means a prearranged transportation service offered or provided for compensation using an internet-enabled application or digital platform to send or transmit an electronic, radio or telephonic communication through the use of a portable or handheld device, monitor, smartphone, or other electronic device or unit that indicates the location of the passenger which information is then relayed by electronic, radio, or data communication of any type to a transportation network driver operating a transportation network vehicle. Transportation network vehicle means any private passenger motor vehicle used to provide transportation network services. Specifically excluded from this definition are: (1) For-hire vehicles as defined under Article II, Chapter 36, Code of the City of Sarasota; and (2) Vehicles used in connection with any phase of a funeral or funeral service; and (3) Pedicabs, sightseeing vehicles, buses, school vehicles, and low speed vehicles, permitted and licensed by the city; and (4) Vehicles operating under a contract with the city or other governmental entity. Sec Transportation network company certificate required. (1) No person shall operate a transportation network company in the city without a certificate issued pursuant to this article. (2) It shall be unlawful for any TNC permitted, licensed, or authorized by another jurisdiction to initiate transportation network service as defined herein without a permit issued pursuant to this article; provided however, a transportation network vehicle operated by a driver affiliated with a TNC permitted, licensed, or authorized by 3 Page 6 of 23

10 or in another jurisdiction may come into the city to discharge a passenger whose trip originated outside of the city. Sec Application; Transportation network company certificate to engage in business. Before any transportation network vehicles shall be operated under the authority of a certificate to engage in the business of transportation network services in the City, application shall be made by a transportation network company to the parking operations division for such certificate. Certificates are renewable annually as of the beginning of the city's fiscal year. Every application for a certificate, or renewals thereof, shall be in writing, and shall contain: (1) The name, residence address, address of the local place of business of the applicant, the name of the business and the trade name, if applicable, under which the business will operate, and the website address, and phone number and for the customer service department of the applicant. If the applicant is a co-partnership, the application shall give the names and residence addresses of the co-partners. If the applicant is a corporation, the application shall set forth the name of the corporation, the name and address of its Florida registered agent, and the residence addresses of its officers and board of directors. (2) Whether the applicant (if an individual, sole proprietorship, or single member owned corporation or company), has ever been convicted of or had adjudication withheld within the past five (5) years, any felony, driving under the influence of drugs or alcohol, reckless driving, any violation of F.S. ch. 800, pertaining to lewdness and indecent exposure, any violation of F.S. ch. 796, pertaining to prostitution, or whether the applicant is a registered sexual predator or offender, and also whether the applicant has even been convicted of or had adjudication withheld within the past ten (10) years, any violent offense, whether felony or misdemeanor. The parking operations division may conduct any additional investigations into an applicant's criminal history as deemed necessary. Pursuant to , Florida Statutes, a copy of the applicant's State of Florida and National criminal history report and Level 2 finger printing results shall be attached to the application. (3) The experience of the applicant in the transportation of passengers. (4) Any facts which the applicant believes tend to prove that the applicant is qualified to engage in the business of public transport in the city. 4 Page 7 of 23

11 (5) The sign or logo to be used to designate the vehicles driven by agents or contractors of the applicant as required by Section , such sign or logo must be of sufficient size and color contrast as to be readable during daylight hours at a distance of at least fifty (50) feet, and such sign or logo must be located on at least two (2) sides of the vehicle. (6) Proof of insurance, as required in Section (7) Documentation showing how the applicant will maintain accurate and up to date records of all drivers providing transportation network services on its behalf. (8) Such further information as the city manager, or the parking operations division may from time to time require. (9) Documentation establishing that the organization has adopted a drug-free workplace policy. Sec Review of certificate application; issuance or denial. Certificates to engage in business as a transportation network company shall be issued or denied within thirty (30) days after receipt of an application and evidence of payment of the certificate and permit fees. In making a determination as to whether the certificate to engage in business will be issued to the applicant, the parking operations division shall consider, on balance, the following criteria: (1) Completeness of the application as required by this article; (2) Completion of the application support documentation as required by this article; (3) Whether the logo and trade name are sufficiently unique from any other certificate holder as to prevent confusion for the riding public and infringement of an existing certificate holder's logo or trade name and exterior design and otherwise meet the requirements of Section 36-41; (4) If an individual, sole proprietorship, or single member owned corporation or company, the applicant's driver license history; (5) If an individual, sole proprietorship, or single member owned corporation or company, the applicant's criminal history; the parking operations division shall deny the application if the applicant has a conviction or adjudication withheld within the past five (5) years, of any felony, driving under the influence of drugs or alcohol, reckless driving, any violation of 5 Page 8 of 23

12 F.S. ch. 800, pertaining to lewdness and indecent exposure, any violation of F.S. ch. 796, pertaining to prostitution, or if the applicant is a registered sexual predator or offender, and also if the applicant has even been convicted of or had adjudication withheld within the past ten (10) years pertaining to any violent offense, whether felony or misdemeanor. (6) Any other relevant or pertinent information, including, at the sole discretion of the Parking Division, evidence and documentation regarding any analogous certificates or permits acquired in other jurisdictions. If the parking operations division finds that the applicant is qualified to engage in the business of operating a transportation network company in the city, then the applicant shall be issued a certificate upon payment of the certificate fee as set by resolution of the city commission. If the parking operations division finds that the applicant is not qualified to engage in the business of operating a transportation network company in the city, then no certificate shall be issued and notice of the action will be given to the applicant setting forth the reason for the refusal of such certificate and informing the applicant of his or her appellate rights pursuant to this article. Alternatively, the parking operations division may notify the applicant that the certificate will be automatically denied on the 31st calendar day after the date of said notice unless the applicant provides specifically identified further information or takes specifically identified other actions which would result in approval of the application by the parking operations division. Sec Driver registration, vehicle permitting and licensing. (a) Before any transportation network driver shall be permitted to operate a transportation network vehicle he or she must be registered with and licensed by the parking operations division, by submitting an application to the parking operations division for a transportation network vehicle permit and a public transport license within the city. (b) Every application for a vehicle permit and a public transport license shall be in writing, and shall contain: (1) The name, residence address, and a copy of the valid Florida driver's license of the applicant, along with proof that the license currently contains under the maximum amount of violation points allowed under Florida law. (2) The place or places of residence of the applicant for the past five (5) years. (3) Whether the applicant has ever been convicted of or had adjudication withheld within the past five (5) years, any felony, 6 Page 9 of 23

13 driving under the influence of drugs or alcohol, reckless driving, any violation of F.S. ch. 800, pertaining to lewdness and indecent exposure, any violation of F.S. ch. 796, pertaining to prostitution, or whether the applicant is a registered sexual predator or offender, and also whether the applicant has even been convicted of or had adjudication withheld within the past ten (10) years, any violent offense, whether felony or misdemeanor. The parking operations division may conduct any additional investigations into an applicant's criminal history as deemed necessary. Pursuant to , Florida Statutes, a copy of the applicant's State of Florida and National criminal history report and Level 2 finger printing results shall be attached to the application. (4) Whether the applicant has ever held a taxicab driver or a chauffeur's license, and if so, when and where and if such license has ever been revoked, and for what cause. (5) Whether the applicant's state driver s license has ever been revoked. A copy of the applicant's Florida Department of Highway Safety and Motor Vehicles driver license history shall be attached to the application. (6) The experience of the applicant in the transportation of passengers. (7) Any facts which the applicant believes tend to prove that the applicant is qualified to engage in the business of public transport in the city. (8) The type, model, age, body style and license plate number of all vehicles proposed to be operated by the applicant as a transportation network driver. (9) Proof of safety certificate, as required in Section , for each vehicle proposed to be operated by the applicant as a transportation network driver. (10) Proof of a current, valid contractual arrangement with a valid and properly registered transportation network company in the city, thus establishing that the driver is covered under such transportation network company s commercial automobile insurance policy regarding transportation network services in the city. (11) Such further information as the parking operations division may from time to time require. 7 Page 10 of 23

14 Sec Review of vehicle permit and public transport license applications. Vehicle Permits and licenses for public transport shall be issued or denied within thirty (30) days after receipt of an application and evidence of payment of the permit and license fee. In making a determination as to whether a vehicle permit and/or a license for public transport will be issued to the applicant, the parking operations division shall consider, on balance, the following criteria: (1) Completeness of the application as required by this article. (2) Completion of the application support documentation as required by this article. (3) The applicant's driver license history. (4) Any other relevant or pertinent information, including, at the sole discretion of the Parking Division, evidence and documentation regarding any analogous license(s) acquired in other jurisdictions. The parking operations division shall deny the application if it is revealed that: (1) The applicant does not have a valid driver's license. (2) If the applicant has a conviction or adjudication withheld within the past five (5) years, of any felony, driving under the influence of drugs or alcohol, reckless driving, any violation of F.S. ch. 800, pertaining to lewdness and indecent exposure, any violation of F.S. ch. 796, pertaining to prostitution, or if the applicant is a registered sexual predator or offender, and also if the applicant has even been convicted of or had adjudication withheld within the past ten (10) years pertaining to any violent offense, whether felony or misdemeanor. (3) If the applicant has diplomatic immunity, has less than six (6) months driving experience, does not possess a current driver license from the state, or who is less than the age of majority. (4) If the applicant operated a for-hire vehicle or a transportation network vehicle within the city without a valid vehicle permit or public transport license within one (1) year of the date of the application. If the parking operations division finds that the applicant is qualified to drive a transportation network vehicle in the city and/or that the applicant s vehicles the requirements of this section, then the applicant shall be issued a public transport license 8 Page 11 of 23

15 and/or vehicle permit upon payment of the appropriate fee(s) as set by resolution of the city commission. If the parking operations division finds that the applicant is not qualified to drive a transportation network vehicle in the city and/or that the applicant s vehicles does not meet the requirements of this section, then a public transport license and/or vehicle permit shall not be issued and notice of the action will be given to the applicant setting forth the reason for the refusal of such license and/or permit and informing the applicant of his or her appellate rights pursuant to this article. Alternatively, the parking operations division may notify the applicant that the license or permit will be automatically denied on the 31st calendar day after the date of said notice unless the applicant provides specifically identified further information or takes specifically identified other actions which would result in approval of the application by the parking operations division. Before operating any transportation network vehicle in the city, the applicant shall attach the vehicle permit sticker issued by the parking operations division to the registered vehicle. Sec Maintenance standards, age of vehicle; equipment. All transportation network vehicles required to be regulated under this article shall be kept clean and sanitary throughout and shall be kept and maintained in sound operating condition. The brakes, tires, steering mechanism, windshield wipers, lights, directional signals and all other equipment shall be kept in such condition as to ensure safe operation. No transportation network vehicle regulated hereunder shall be allowed to be older than ten (10) years old. Sec Safety certificate. Prior to the parking operations division's issuing or renewing any vehicle permit pursuant to this article, the applicant shall have each prospective transportation network vehicle inspected by a Certified A.S.E. mechanic and shall present to the parking operations division a safety certificate fully executed by the qualified mechanic and including his or her A.S.E. certification number. The blank form safety certificate may be obtained from the parking operations division. No vehicle permit will be issued or renewed with regard to any transportation network vehicle unless the safety certificate indicates that the vehicle is in safe operating condition. Sec Prohibitions for drivers. In addition to all other applicable regulations in this article, no driver of a transportation network vehicle regulated under this article shall: (1) Pickup any passengers other than those located through the applicable prearranged transportation network service; 9 Page 12 of 23

16 (2) Accept any form or type of payment other than those arranged through the applicable prearranged transportation network service; (3) Permit more persons to be carried in a transportation network vehicle as passengers than the rated seating capacity of the vehicle as stated in the vehicle permit for such vehicle issued; (4) Use indecent or profane language, be guilty of loud or boisterous talking, shouting or disorderly conduct or vex or annoy any passenger or any other person; (5) Use intoxicants either immediately before or while on duty or use controlled substances at any time; (6) Refuse to operate the air conditioner at the request of a passenger; (7) Use any area designated for taxi cab stands; (8) Be in service as a transportation network vehicle without the signage required by Section , hereunder; (9) Refuse or neglect to transport to any place in the city any orderly person regardless of race, sex, religion, color, national origin, age or physical disability (including a seeing-eye dog), who is willing and able to pay the agreed upon fare. Drivers may refuse service to any person who is disorderly, or to any person who causes a driver to have a reasonable apprehension of fear for his or her safety. Sec Transportation network vehicle permits; contents; display. Each permitted transportation network vehicle shall be issued a vehicle permit, in the form of two (2) decals: one (1) of which shall be placed on the left side of the vehicle, lower inside corner of the front windshield, facing outward; and one (1) on the left side of the vehicle, lower outside corner of the rear window, facing outward. Sec New permit required when vehicle replaced. If a transportation network driver replaces any motor vehicle for which a permit required by Section has been secured, such certificate holder shall make written application to the parking operations division for a new permit as provided in this article and shall surrender to the parking operations division the permit under which the motor vehicle to be replaced has been operated. 10 Page 13 of 23

17 Sec Public transport driver license; contents; display. Every public transport license issued under the provisions of this chapter shall contain the following information: (1) The name of the public transport driver license holder. (2) The date of issuance and expiration. (3) The public transport license number. The public transport license shall be kept on the driver s person at all times during the operation of the transportation network vehicle described in the license, and must be made available for inspection by representatives of the City and any member of the public considering using the driver s services hereunder. Sec Expiration; surrender of certificate, permits and licenses upon expiration or revocation. Every certificate, permit or license issued pursuant to this article, shall expire on August 31st following the date of issuance. However, any certificate, permit or license issued between June 1st and August 31st shall expire on August 31 st of the next calendar year and shall be issued upon payment of the application fee as set by resolution of the city commission. Upon the expiration of the term for which any certificate, permit or license has been granted or upon the suspension or revocation of any certificate, permit or license, each such certificate, permit or license shall be surrendered by the holder thereof to the parking operations division. Sec Designation of transportation network vehicles by signs. Every transportation network vehicle operated under the provisions of this article, when in service, shall have a sign attached to or printed on such vehicle listing the transportation network company name or logo, and such sign or logo must be located on at least two (2) sides of the vehicle. Sec Rates and fares The city places no restrictions on amounts charged by transportation network companies or transportation network vehicles, except that the rate quoted ((i.e., cost per mile or per time unit, and including any surge pricing) by the transportation network company through the internet-enabled application or digital platform at the time the passenger accepts the ride must be the same rate charged to the passenger after completion of the ride. 11 Page 14 of 23

18 Sec Daily manifest required. Every transportation network vehicle shall maintain a daily manifest upon which are recorded all trips made each day, showing time and place of origin and destination of each trip, number of passengers and amount of fare. Such manifest must be saved for one year and must be provided to the City upon request. Sec Maximum daily hours for drivers. No driver of a transportation network vehicle shall drive or operate such vehicle for more than twelve (12) hours within any twenty-four-hour period. Sec Enforcement of article and reporting of violations. The police department and any city employee who has completed a parking enforcement specialist program and received a State of Florida certification to write and issue tickets are authorized and instructed to watch and observe the conduct of certificate holders, permit holders and licensed drivers and to enforce this article according to law and report any violations to the parking operations division that would establish grounds for the entry of a fine, the suspension or revocation of any certificate, permit or license, or the implementation of any other City enforcement procedure hereunder. Sec Liability insurance coverage required. (a) No certificate to engage in the business of transportation network services in the City shall be issued or remain valid for a transportation network company unless there is in force a liability insurance policy for the company s transportation network service (which shall include coverage for all contract transportation network drivers contracted with such transportation network company, that is a minimum of five hundred thousand dollars ($500,000.00) combined single limit each accident or bodily injury one hundred twenty-five thousand dollars ($125,000.00) each person, three hundred thousand dollars ($300,000.00) each accident. Such liability insurance policy shall make the city an additional insured and require that the same may not be canceled by the insured or the insurance carrier without thirty (30) days' written notice to the city. Such liability insurance policy shall inure to the benefit of any person who shall be injured or shall sustain damages to property proximately caused by the negligence of the holder of the certificate to engage in business, of any transportation network driver contracted with such certificate holder, or of the city. (b) The liability insurance policy shall give the names of the owners of the transportation network company and a certificate showing issuance of such policy with the city as an additional insured and containing statements as to coverage, the cancellation clause, and the payment of current premium shall be filed with the parking operations division. 12 Page 15 of 23

19 Sec Transfer. No certificate, permit or license shall be assigned or transferred after written application for same has been filed with the parking operations division. Sec Suspension or revocation of certificate to engage in business. (a) A certificate to engage in business issued under the provisions of this article may be suspended or revoked by the parking operations division, after notice and hearing, for just cause, which may include, but is not limited to, any one (1) of the following: (1) Obtaining a certificate to engage in business or permitting a transportation network driver to obtain a license by providing false information. (2) Permitting a driver to operate a transportation network vehicle who is not registered and licensed pursuant to this article. (3) Preventing, prohibiting, or otherwise interfering with the City s accessibility to utilize the transportation network company s application and/or digital platform in real-time observance and monitoring of drivers using the application. (4) Committing a violation of any of the provisions of this article. (5) The conviction or adjudication withheld by a court of competent jurisdiction of any shareholder, partner or member of any corporation, partnership, firm or association holding a fifty-one (51) percent interest or more in holder of the certificate: of any felony, driving under the influence of drugs or alcohol, reckless driving, any violation of F.S. ch. 800, pertaining to lewdness and indecent exposure, or any violation of F.S. ch. 796, pertaining to prostitution, any violent offense, whether felony or misdemeanor, or has become a registered sexual predator or offender. (6) A violation of any other provisions of this Code or ordinances of the city, or laws of the state or the United States, the violation of which, in the opinion of the parking operations division, reflects unfavorably upon the fitness of the certificate holder to offer transportation network services. (b) No certificate to engage in business which has been issued by the parking operations division shall be revoked or suspended, except upon a finding of just cause, as defined in subsection (a) of this section, and after a hearing. A notice to the certificate holder stating the place, date, time and purpose of such hearing and setting 13 Page 16 of 23

20 forth the charges upon which such hearing shall be held must be sent to the certificate holder. The hearing shall be held within fifteen (15) days of the date the notice is issued or as soon as practicable thereafter. Sec Suspension or revocation of vehicle permit or public transport license. (a) A vehicle permit or public transport license issued under the provisions of this chapter may be suspended or revoked by the parking operations division, after notice and hearing, for just cause, which may include, but is not limited to, any one (1) of the following: (1) Obtaining a vehicle permit or public transport license by providing false information. (2) Committing a violation of any of the provisions of this article. (3) The suspension or revocation of a licensee's Florida driver license. (4) Preventing, prohibiting, or otherwise interfering with the City s accessibility to utilize the transportation network company s application and/or digital platform in real-time observance and monitoring of drivers using the application. (5) The conviction or adjudication withheld by a court of competent jurisdiction of the permit holder or licensee of a felony, driving under the influence of drugs or alcohol, reckless driving, any violation of F.S. ch. 800, pertaining to lewdness and indecent exposure, or any violation of F.S. ch. 796, pertaining to prostitution, any violent offense, whether felony or misdemeanor, or has become a registered sexual predator or offender. (6) A violation of any other provisions of this Code or ordinances of the city or laws of the state or the United States, the violation of which, in the opinion of the parking operations division, reflects unfavorably upon the permit holder or licensee to offer transportation network services. (b) No vehicle permit or public transport license which has been issued by the parking operations division shall be revoked or suspended, except upon a finding of just cause, as defined in subsection (a) of this section, and after a hearing. A notice to the permit holder and/or licensee stating the place, date, time and purpose of such hearing and setting forth the charges upon which such hearing shall be held must be sent to the permit holder and/or licensee. The hearing shall be held within fifteen (15) days of the date the notice is issued or as soon as practicable thereafter. 14 Page 17 of 23

21 Sec Emergency suspension. In the event of a violation of this article which results in an emergency situation in which the continued operation of a certificate holder's business or where the continued operation of a transportation network vehicle by a permit holder or licensee endangers the health, welfare or safety of the public, the parking operations division may with just cause suspend such holder's certificate, or such permit or license, as applicable. Any such suspension may be made effective immediately and shall remain in force until a hearing is held as provided in this section. Sec Fine Schedule. Certain violations set forth in this article III and the fines payable in each instance, are as set forth opposite each listed violation: (1) Operating without necessary certificate, permit, or License (and in addition to fine automatic hearing required with magistrate)... $ (2) Certified company contracting with unlicensed driver... $ (3) Exceeding vehicle design for carrying passengers... $ (4) Violation of Driver Prohibitions and operating Rules...$50.00 (5) Use of intoxicants or controlled substance at any during in service time or directly preceding in service time... $ A violator receiving notice of a fine as enumerated above shall, within a period of ten (10) days, either 1) pay such fine in full to the Parking Operations Division, or 2) respond to the fine received pursuant to Section , hereunder. If such violator does not pay or respond or appear within ten (10) days, an initial delinquency fee of fifty dollars ($50.00) shall be assessed. Two additional delinquency fees of fifty dollars ($50.00) each shall be assessed for every additional 30 day period such fine and delinquency fee(s) remains unpaid. Sec Additional remedies for violations. In addition to the remedies to suspend or revoke certificates, permits or licenses, enumerated in Sections and , hereunder, any and all violations of this article may be prosecuted or enforced by the City of Sarasota by any or all of the following measures: (1) The issuance of a code citation, requiring the violator to cure the violation or appear before the special magistrate, pursuant to 15 Page 18 of 23

22 Sec Appeals. Chapter 2, Article V, Division 5, "Code Compliance System" of the Sarasota City Code; (2) The prosecution of the violation in Sarasota County Court, pursuant to Section 1-11, Code of the City of Sarasota, and upon a conviction, punishment by a fine not to exceed five hundred dollars ($500.00) and/or imprisonment in the county jail not to exceed sixty (60) days, or any other remedy available under the law; (3) The filing of a complaint for injunctive relief in the Twelfth Judicial Circuit in the State of Florida; (4) Any other civil or criminal remedy available at law. An applicant, or any other aggrieved person, may appeal a decision rendered by the parking operations division pursuant to this article III. Such an appeal must be filed in writing with the parking operations division within ten (10) days of the date the decision to be appealed was rendered. The parking operations division shall provide the appeal to the code enforcement official so that a hearing will be scheduled in front of the code enforcement special magistrate pursuant to the procedures set forth in Chapter 2, Administration, Article V, Boards, Commissions and Committees, Division 5, Code Compliance System of the City Code. At the hearing to be scheduled before the code enforcement special magistrate, the burden of proof shall be upon the applicant or aggrieved party filing the appeal to show, by a preponderance of the evidence, that the decision of the parking operations division should be reversed. The code enforcement special magistrate shall conduct a full evidentiary hearing after due notice is provided to the parties. The code enforcement special magistrate shall issue a written order either affirming or reversing the decision of the parking operations division. Any review of the decision of the code enforcement special magistrate shall be made by petition for writ of certiorari to the circuit court as provided for by law within thirty (30) days of the date the order of the special magistrate is rendered. Section 2. It is hereby declared to be the intention of the City Commission that the sections, paragraphs, sentences, clauses and phrases of this Ordinance shall be deemed severable, and if any phrase, clause, sentence, paragraph or section of this Ordinance is declared unconstitutional or otherwise invalid by the valid judgment of a court of competent jurisdiction, such unconstitutionality or invalidity shall not affect any of the remaining phrases, clauses, sentences, paragraphs or sections hereof. 16 Page 19 of 23

23 Section 3. Ordinances in conflict herewith are hereby repealed to the extent of such conflict. Section 4. This Ordinance shall take effect immediately upon second reading. PASSED on first reading by title only, after posting on the bulletin board at City Hall for at least three (3) days prior to first reading, as authorized by Article IV, Section 2, Charter of the City of Sarasota, Florida this day of, PASSED on second reading and finally adopted this day of, CITY OF SARASOTA, FLORIDA ATTEST: Willie Charles Shaw, Mayor Pamela M. Nadalini, MBA, CMC City Auditor and Clerk Mayor Willie Charles Shaw Vice Mayor Suzanne Atwell Commissioner Liz Alpert Commissioner Susan Chapman Commissioner Shellie Freeland Eddie ord./2015/ (tnc)/jks/hb/ Page 20 of 23

24 NOTICE OF PUBLIC HEARING Notice is hereby given that the CITY COMMISSION of the City of Sarasota, Florida will meet on Monday, July 6, 2015, at 6:00 p.m. in the Commission Chambers, City Hall, 1565 First Street, Sarasota, Florida. Starting at 6:00 p.m. or as soon thereafter as possible, the Commission will open the scheduled Public Hearings in the order they appear on the Agenda. The following ordinance will be considered at the above scheduled meeting: ORDINANCE NO AN ORDINANCE OF THE CITY OF SARASOTA, FLORIDA AMENDING THE CODE OF THE CITY OF SARASOTA; CHAPTER 36, VEHICLES FOR HIRE; CREATING AN ARTICLE III, TRANSPORTATION NETWORK COMPANIES; CREATING THE DEFINITION OF A TRANSPORTATION NETWORK COMPANY ( TNC ); PROVIDING FOR THE APPLICATION PROCESS FOR TNC COMPANIES AND DRIVERS TO RECEIVE APPLICABLE CITY CERTIFICATES, PERMITS AND LICENSES; PROVIDING FOR CITY BACKGROUND CHECKS BEING REQUIRED FOR TNC DRIVERS; PROVIDING FOR INSURANCE REQUIREMENTS FOR A TNC; PROVIDING FOR ENFORCEMENT PROCEDURES REGARDING VIOLATIONS OF ARTICLE III; CREATING A FINE SCHEDULE FOR CERTAIN VIOLATIONS OF ARTICLE III; REPEALING ORDINANCES IN CONFLICT; PROVIDING FOR THE SEVERABILITY OF THE PARTS HEREOF; PROVIDING FOR READING BY TITLE ONLY; AND FOR PROVIDING AN EFFECTIVE DATE. Said proposed ordinance is on file in the Office of the City Auditor and Clerk at City Hall at the above address for public inspection from 8:00 a.m. to 5:00 p.m. Monday through Friday. Interested persons are welcome to attend and may register to speak in respect to the above-proposed ordinance. If a person decides to appeal any decision made by the board, agency, or commission with respect to any matter considered at such meeting or hearing, he or she will need a record of the proceedings, and, for such purpose, he or she may need to ensure that a verbatim record of the proceedings is made, which record includes the testimony and evidence upon which the appeal is to be based. Reasonable auxiliary aids and services will be made available to qualified disabled individuals to the extent that no undue financial or administrative burden results. Please advise the Office of the City Auditor and Clerk at least two (2) business days in advance as to the nature of the aid and/or service desired. 18 Page 21 of 23

25 CITY OF SARASOTA By: Pamela M. Nadalini, MBA, CMC City Auditor and Clerk Legal Date: June 26, Page 22 of 23

26 NOTICE OF PUBLIC HEARING Notice is hereby given that the CITY COMMISSION of the City of Sarasota, Florida will meet on Monday, July 6, 2015, at 6:00 p.m. in the Commission Chambers, City Hall, 1565 First Street, Sarasota, Florida. Starting at 6:00 p.m. or as soon thereafter as possible, the Commission will open the scheduled Public Hearings in the order they appear on the Agenda. The following ordinance will be considered at the above scheduled meeting: ORDINANCE NO AN ORDINANCE OF THE CITY OF SARASOTA, FLORIDA AMENDING THE CODE OF THE CITY OF SARASOTA; CHAPTER 36, VEHICLES FOR HIRE; CREATING AN ARTICLE III, TRANSPORTATION NETWORK COMPANIES; CREATING THE DEFINITION OF A TRANSPORTATION NETWORK COMPANY ( TNC ); PROVIDING FOR THE APPLICATION PROCESS FOR TNC COMPANIES AND DRIVERS TO RECEIVE APPLICABLE CITY CERTIFICATES, PERMITS AND LICENSES; PROVIDING FOR CITY BACKGROUND CHECKS BEING REQUIRED FOR TNC DRIVERS; PROVIDING FOR INSURANCE REQUIREMENTS FOR A TNC; PROVIDING FOR ENFORCEMENT PROCEDURES REGARDING VIOLATIONS OF ARTICLE III; CREATING A FINE SCHEDULE FOR CERTAIN VIOLATIONS OF ARTICLE III; REPEALING ORDINANCES IN CONFLICT; PROVIDING FOR THE SEVERABILITY OF THE PARTS HEREOF; PROVIDING FOR READING BY TITLE ONLY; AND FOR PROVIDING AN EFFECTIVE DATE. Said proposed ordinance is on file in the Office of the City Auditor and Clerk at City Hall at the above address for public inspection from 8:00 a.m. to 5:00 p.m. Monday through Friday. Interested persons are welcome to attend and may register to speak in respect to the above-proposed ordinance. If a person decides to appeal any decision made by the board, agency, or commission with respect to any matter considered at such meeting or hearing, he or she will need a record of the proceedings, and, for such purpose, he or she may need to ensure that a verbatim record of the proceedings is made, which record includes the testimony and evidence upon which the appeal is to be based. Reasonable auxiliary aids and services will be made available to qualified disabled individuals to the extent that no undue financial or administrative burden results. Please advise the Office of the City Auditor and Clerk at least two (2) business days in advance as to the nature of the aid and/or service desired. CITY OF SARASOTA By: Pamela M. Nadalini, MBA, CMC City Auditor and Clerk Legal Date: June 26, 2015 Page 23 of 23