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HomeMy WebLinkAbout83-28 Liability Insurance Requirements for TaxicabsORDINANCE NO. Sj-og AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF COSTA MESA, CALIFORNIA, CONCERNING LIABILITY INSURANCE REQUIREMENTS FOR TAXICABS. THE CITY COUNCIL OF THE CITY OF COSTA MESA DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1. The City Council of the City of Costa Mesa finds and declares as follows: 1. That business and financial conditions affecting taxicab operators and the insurance industry have changed since the adoption of the insurance requirement contained in Costa Mesa Municipal Code Section 9-246, so that the provision of first -dollar coverage to pay for small claims has become economically impracticable; 2. That the coverage limits set forth in Section 9-246 are not adequate to cover the liabilities to which taxicab operators are exposed at present; 3. That an amendment to Section 9-246 is needed to raise the limits of the required insurance coverage to an amount that is adequate for present day needs and to allow for insurance policies providing for a deductible amount, rather than first -dollar coverage, so that the premiums can be kept to a reasonable sum that taxicab operators can afford to pay. ACCORDINGLY, the City Council of the City of Costa Mesa hereby amends the Costa Mesa Municipal Code as follows: SECTION 2. Section 9-246 of the Municipal Code of the City of Costa Mesa is hereby amended to read as follows: "Section 9-246. Liability Insurance Required. The applicant to whom a certificate shall have been awarded by the City Council as aforesaid shall deliver to the Director of Finance a policy of insurance executed by a company duly authorized under the laws of the State of California to be an insurance business, by the provisions of which policy the said company promises and undertakes to pay in full all claims for damages to persons or property resulting from the operation of the automobiles referred to in said application; provided that the maximum amount for which liability shall be assumed shall be not less than One Million Dollars ($1,000,000) combined single limit, for injury to or death of one or more persons, and for injury to or destruction of property, in any one accident; provided further, that such insurance policy may include a deductible amount of no more than Twenty -Five Thousand Dollars ($25,000) for each accident." SECTION 3. This Ordinance shall take effect and be in full force thirty (30) days from and after the passage thereof, and prior to the expiration of fifteen (15) days from its passage shall be published once in the ORANGE COAST DAILY PILOT, a newspaper of general circulation, printed and published in the City of Costa Mesa or, in the alternative, the City Clerk may cause to be published a summary of this Ordinance and a certified copy of the text of this Ordinance shall be posted in the office of the City Clerk five (5) days prior to the date of adoption of this Ordinance, and within fifteen (15) days after adoption, the City Clerk shall cause to be published the aforementioned summary and shall post in the office of the City Clerk a certified copy of this Ordinance together with the names of the members of the City Council voting for and against the same. PASSED AND ADOPTED this 5-44 day of ATTEST: YTTy Clerk of the City of �Costaresa STATE OF CALIFORNIA ) COUNTY OF ORANGE ) SS CITY OF COSTA MESA ) of Costa Mesa APPROVED AS TO %FORM CITY ATTORNE I, EILEEN P. PHINNEY, City Clerk and ex -officio Clerk of the City Council of the City of Costa Mesa, hereby certify that the above and foregoing Ordinance No. g3-Qg was introduced and considered section by sec 'on at a regular meeting of said City Council held on the ��day of 1983, and thereafter passed and adopted as who e a a regu r meeting of said City Council held on the `�'-�L day of , 1983, by the following roll call vote: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: IN WITNESS WHEREOF, I have ereunto set m hand a affixed the Seal of the City of Costa Mesa this c.day of ► 1983. _City Clerk and ex -officio Clerk the City Council of the City of Cos Mesa -2-