HomeMy WebLinkAbout- - Adopting Revised OC Taxi Administration - 1/5/2010CITY COUNCIL AGENDA REPORT
MEETING DATE: January 5, 2010
ITEM NUMBER:
SUBJECT: ADOPTING REVISED ORANGE COUNTY TAXI ADMINISTRATION PROGRAM
(OCTAP) REGULATIONS
DATE: December 4, 2009
FROM: FINANCE DEPARTMENT/FINANCIAL OPERATIONS
PRESENTATION BY: COLLEEN O'DONOGHUE, ASSISTANT FINANCE DIRECTOR
FOR FURTHER INFORMATION CONTACT: COLLEEN O'DONOGHUE, ASSISTANT FINANCE
DIRECTOR (714) 754-5219
RECOMMENDED ACTION:
Adopt Resolution Number 10 - approving the revisions to the Orange County Taxi
Administration Program regulations.
BACKGROUND:
The Orange County Taxi Administration Program (OCTAP) is a voluntary association of
Orange County Agencies created to coordinate taxicab service permitting and other
administrative functions with the Orange County Transportation Authority (OCTA) in
compliance with California Government Code Section 53075.5 as authorized by
participating Agencies. The City of Costa Mesa has been a member agency since
February 17, 1997 with the approval and adoption of Resolution 97-96, as well as
Ordinance No. 97-33 which amended Section 9-27 of the Costa Mesa Municipal Code
relating to the regulation of taxicabs.
ANALYSIS:
OCTAP has been in operation since 1998. The adopted regulations were created to
reduce the multiplicity of documentation involved in the regulation of taxicab services in
Orange County. The proposed regulation changes are primarily administrative,
however a few of the changes may be characterized as substantive. Pursuant to
Section 13.2 of the OCTAP Regulations, substantive amendments must be approved by
each member agency and shall be effective only in the area of jurisdiction of each
member agency that has approved the amendments. A complete list of the changes
and reasons for the changes are found in the attached "OCTAP Regulations Revision —
Detail of Changes". A few of the major changes and explanation for those changes are
as follows:
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• Section 5.2.3 — Revision of insurance requirements: The reason for the revision
of this section is to improve and strengthen the insurance requirements for a
Company Permit. The levels of insurance have not changed; however, an
applicant will now have to submit an endorsement executed by the agent or
broker of record in order to further prove coverage. In addition, if a Permittee
allows its insurance to lapse, its Company Permit will immediately be suspended
and all Taxicab Permits will be revoked. This is necessary to ensure that
uninsured Taxicabs are not allowed to operate.
• Section 5.3 Addition of "applicant Company" to list of individuals for which
conditions of denial of permit may apply: This change was made to clarify the
issue related to denial of a Company Permit on the basis of unsatisfied court
judgments. The previous language could be interpreted as meaning an
unsatisfied judgment against just the Permittee would not be a basis for denial.
This change tightens up this requirement.
• Section 6.1 Removal of references to "interim" permits: These changes were
made to reflect the opinion of OCTAP staff that "interim" Driver Permits no longer
be issued. As a result of consultation with the Orange County Sheriff's Dept.,
and because access to the CLETS system is no longer allowed, it was
determined that the risk of allowing an individual to operate a Taxicab prior to
obtaining the results of the background check from the Dept. of Justice is too
great to justify the issuance of "interim" permits.
• Section 6.3 (deleted) — Deletion of Interim Permit: This deletion was made to
reflect the opinion of OCTAP staff that "interim" Driver Permits no longer be
issued. As a result of consultation with the Orange County Sheriff's Dept., and
because access to the CLETS system is no longer allowed, it was determined
that the risk of allowing an individual to operate a Taxicab prior to obtaining the
results of the background check from the Dept. of Justice is too great to justify
the issuance of "interim" permits.
• Section 6.14.9 — Addition of "good cause" clause: This addition was made to
include "good cause" as a reason for suspension or revocation of a Driver Permit.
This clause allows for an administrative hearing prior to action being taken
against a permit holder.
• Section 7.3 — Modification of requirements for random inspections: These
changes were made to clarify and improve the requirements for random
inspections. Previously, as a result of a failure of a random inspection, a taxicab
could only be placed into "Not in Service" status. This resulted in the taxicab not
being allowed to operate in revenue service until such a time as it passed a re-
inspection, even for minor items. The changes made here allow for a second
status level of "Must Repair" to address a situation where minor items are
discovered as a result of a random inspection. A taxicab can be placed in this
level of status if items are found that are sufficiently minor to allow the vehicle to
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remain in service. These items are required to be repaired within 10 business
days and the taxicab is required to be re -inspected. If the taxicab fails re-
inspection or if it is not presented for re -inspection within the 10 business days,
the vehicle is immediately placed into the "Out of Service" status and cannot be
operated in revenue service until such a time as it passes re -inspection. Each
re -inspection is subject to a fee.
If a taxicab is inspected and major items are found that would preclude it from
operating in revenue service, the vehicle is placed in "Out of Service" status and
the Taxicab Permit is suspended pending passing a re -inspection.
ALTERNATIVES CONSIDERED:
The City could choose not to adopt the revised OCTAP Regulations; however the City
would no longer be included in the OCTAP program and would then be responsible for
taxicab, driver and vehicle permits, fees and regulation.
FISCAL REVIEW:
There is no direct fiscal impact related to this item.
LEGAL REVIEW:
The City Attorney has reviewed and approved the attached Resolution and the revisions
to the OCTAP Regulations.
CONCLUSION:
Staff recommends that the City Council approve the revisions to the OCTAP
Regulations
COLLEEN O'DONOGHUE
Assistant Finance Director
KIMBERLY HALL-BARLOW
City Attorney
ALLAN L. ROEDER
City Manager
ATTACHMENTS: Exhibit A - Resolution No. 10 -
Exhibit B — 2009 OCTAP Regulations - Redlined Version
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