5765ORDINANCE N0. 5%65
AN ORDINANCE OF THE CITY COUNCIL OF
THE CITY OF ANAHEIM ADDING A NEW
CHAPTER 4.73 TO TITLE 4 OF THE
ANAHEIM MUNICIPAL CODE RELATING TO
TAXICAB FRANCHISES
WHEREAS, reliable, safe and efficient taxicab service is
necessary to facilitate the transportation of visitors to Anaheim
and for transportation of those residents who do not drive
personal vehicles for travel within the City of Anaheim; and
WHEREAS, the franchising of taxicab service within the City
of Anaheim through a competitive process will promote the public
health, safety and welfare by promoting stability among taxicab
providers and by establishing higher standards of service, safety
and reliability among taxicab service providers; and
WHEREAS, Section 1400 of Article XIV of the Charter of the
City of Anaheim authorizes the City Council to grant franchises
to persons or business entities furnishing transportation
services to the inhabitants of the City; and
WHEREAS, the City Council has received, reviewed and
considered numerous studies, reports and other materials relating
to taxicab service in the City of Anaheim including, but not
limited to: Anaheim's Current and Future Taxi Service Needs dated
September 30, 1999; Anaheim Taxicab Franchise Developments -
Recommendations dated July 20, 2000; Selection Committee
Evaluation and Recommendations for Taxi Service Franchises dated
March 27, 2001; Anaheim Business Taxicab Survey Results conducted
by OCTAP and dated March 18, 1999; and A Study of the Ability of
South Coast Cab Company to Adequately Service the Non -Resort
Areas of Anaheim as of November, 1997 prepared by Jack Armstrong
& Associates; and
WHEREAS, the City Council finds and determines that:
(A) There currently exists a need within the City for up to
three franchised taxicab providers to operate 230 taxicabs, which
need will increase to 260 taxicabs and four taxicab providers in
2002, and that such need has been determined based upon:
(1) The adequacy of existing service within the City;
(2) The increased demand for service based upon growth
in the City, particularly in the Anaheim Resort Area; and
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(3) The need to assure prompt, safe and reliable taxi
service to the City's residents and visitors while avoiding the
adverse effects upon the taxi businesses and the public which can
result from an oversupply of taxicabs competing for the same
customers; and
(B) The City Council has heretofore issued taxicab permits
to three providers authorizing a total of 282 taxicabs within the
City; and
(C) The City Council has heretofore determined that it is
in the public interest and general welfare of the City and its
residents to establish new minimum standards for the operation of
taxicab services in the City, to raise the quality of taxicab
service within the City, to replace the City's current permit
procedures with new procedures for the award of franchises on a
competitive basis, and to provide for the orderly termination of
existing taxicab permits and replacement of such permits with
franchises to be awarded by the City Council on the basis of
competitive proposals; and
(D) The City Council has heretofore established new
standards for service for proposed franchisees and has publicly
solicited requests for competitive proposals from potential taxi
providers, including each of the current permit holders in the
City, for the award of up to three initial franchises for 230
taxicabs; and
(E) Not every existing taxicab permit holder in the City
has submitted a proposal for one of the initial franchises and,
therefore, at least one of the existing permit holders will not
be awarded an initial franchise; and
(F) Based upon the geographical area of the City
(approximately 50 square miles) and the distance from the
westerly to the easterly city limits (approximately 20 miles), a
minimum of thirty taxicabs are necessary for any taxi provider to
adequately serve the needs of the entire City; and
(G) It is in the public interest and general welfare of the
residents of the City to provide for the orderly transition and
termination of the taxicab permits heretofore approved by the
City, and to provide procedures establishing a competitive
process for the award of taxicab franchises in the future; and
(H) Any taxi operator currently operating under a permit
from the City who is not awarded or does not accept an initial
franchise should be allowed to continue to operate for a
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reasonable period of time, even though such operation may result
in an oversupply of taxicabs at lower standards of operation
during such period, in order to achieve an orderly and reasonable
transition from the current permit system to franchises, provided
such operations should be limited, as to both number of taxicabs
and duration of operation, to minimize the oversupply of
authorized taxicabs and the adverse effects from such oversupply.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ANAHEIM DOES
ORDAIN AS FOLLOWS:
Section 1. That new Chapter 4.73 is hereby added to Title
4 of the Anaheim Municipal Code to read as follows:
"Chapter 4.73
TAXICAB FRANCHISES
114.73.010 DEFINITIONS.
For the purposes of this chapter, certain terms used
herein are defined as follows:
.010 "City" means the City of Anaheim.
.020 "City Council" means the City Council of the City.
.030 "Director" means the Director of Planning of the City
or his or her authorized representative.
.040 "Driver" means a person who operates a taxicab.
.050 "Franchisee" means any person, firm, association,
corporation, partnership or other entity granted a franchise by
the City pursuant to this chapter.
.060 "OCTAD" means the Orange County Taxi Administration
Program administered by the Orange County Transportation
Authority.
.070 "Operate" or "Operate a taxicab" means to drive a
taxicab and either solicit or pick up passengers within the City.
.080 "Owner" means the registered owner or lessor of a
taxicab.
.090 "Taxicab" means a motor vehicle operated for hire to
transport passengers to specific destinations of the passengers'
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choice, capable of carrying not more than eight persons,
excluding the driver. The term shall exclude any vehicle
operating as a charter party carrier licensed as such by any
state agency or any other vehicle as to which a valid certificate
of public convenience and necessity has been issued by any state
agency.
4.73.020 TAXICAB FRANCHISES - PURPOSE AND DECLARATIONS.
.010 It is declared and determined that the operation of
taxicabs affects the health, safety and general welfare of the
residents of the City. The operation of taxicabs requires that a
high level of trust and confidence by the traveling public be
established and maintained in the equipment, personnel and
procedures used for providing taxicab service. Such services are
determined to be necessary for the use of residents who do not
drive personal vehicles for obtaining the necessities of life and
for the efficient movement of guests and visitors about the City.
Maintaining the vital role of taxicabs in the overall
transportation assets of the City requires that only those
taxicab owners and drivers who have demonstrated that they
possess the facilities, control systems and knowledgeable
personnel to protect the interests of the City and the traveling
public be authorized to provide taxicab service within the City.
Therefore, it is a purpose of this chapter to adopt procedures to
regulate this service to the community as authorized pursuant to
Section 1400 of the Charter of the City of Anaheim.
.020 It is also recognized that the City is required to
adopt and implement a mechanism to promote the safe and efficient
transportation of residents and visitors and that the City may
impose fees to fund the cost of this effort and to augment the
funds available for assuring the quality of taxicab service and
enforcing the standards promulgated by the City.
.030 The electors of the City, by the adoption of Article
XIV of the City Charter, elected to implement the home rule
provisions of Article XI of the Constitution of the State of
California as to municipal affairs and, because the granting of
nonexclusive franchises of the nature referred to herein are
within the class of actions designated as municipal affairs, the
City Council hereby declares that the provisions of this chapter,
together with the provisions of the Charter of the City, shall
constitute the exclusive procedure for the granting of franchises
for the operation of taxicabs and shall supersede any otherwise
applicable provisions of this Code.
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4.73.030 ACTIVITIES WHICH ARE UNLAWFUL UNLESS AUTHORIZED -
ACTIVITIES NOT COVERED.
Except as may otherwise be permitted in this chapter,
it is unlawful for any person to operate a taxicab or solicit
passengers for transportation in a taxicab within the City unless
the following conditions have been met:
.010 A franchise therefor has first been granted pursuant to
the provisions of this chapter and such franchise is in full
force and effect; and
.020 A written acceptance of the franchise has been timely
executed by the grantee as provided in Section 1403 of the City
Charter.
.030 This chapter shall not apply to limousine or livery
vehicles displaying the identification specified in Vehicle Code
Section 5011.5 available to members of the public by any person
or vehicles designed to transport more than eight passengers,
excluding the driver.
4.73.040 NONEXCLUSIVE FRANCHISE - TERMS AND CONDITIONS.
.010 Subject to the limitations of this chapter, the City
Council may, and is empowered to, grant by ordinance, to any
qualified person, firm, association, corporation, partnership or
other entity, a nonexclusive franchise to operate taxicabs within
the City in such number as expressly provided in said franchise.
.020 All franchises granted pursuant to this chapter shall
be nonexclusive. No provisions of this chapter shall be deemed
to require restricting the number of franchises to one or any
particular number. However, in the sole exercise of its
discretion, and in accordance with the procedures set forth in
this chapter, the City Council may limit the number of franchises
which may be extant.
.030 All nonexclusive franchises granted hereunder shall be
subject to the terms and conditions specified in the City
Charter, and in this chapter, and in the ordinance granting the
franchise, and in the terms and conditions set forth in the
Request for Proposals for Providing Taxicab Service and the
responses provided by the franchisee thereto.
.040 In granting any franchise, the City Council may
prescribe such terms and conditions, not in conflict with the
City Charter or this chapter, as in the judgment of the City
Council are in the public interest.
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4.73.045 NUMBER OF TAXICABS FRANCHISED.
.010 Initial Taxicab Franchises. Following the adoption of
this chapter, the City Council, by ordinance, shall award not
more than three franchises for the operation of 230 taxicabs
within the City (the "Initial Taxicab Franchises"). Said
franchises may also provide for the occasional and temporary
operation of additional taxicabs by such franchisees in such
numbers and on such days and periods of peak need as may be
expressly authorized in said franchise ordinances.
.020 Additional Franchises. Following the adoption of
ordinances approving the Initial Taxicab Franchises as provided
in subsection .010 above, the application period for taxicab
franchises shall be deemed closed and no further applications
shall be accepted or processed, and no further franchises shall
be awarded, by the City except as hereinafter provided.
.030 Franchise Application Period. The application period
for taxicab franchise applications shall be deemed open as of
either (i) the date of adoption of a resolution of public
convenience and necessity pursuant to subsection .040 below, (ii)
the sixtieth day prior to the date of expiration of any existing
franchise or Existing Permit, or (iii) the date any City Council
decision terminating any existing franchise or Existing Permit
becomes final. The term "Existing Permit" as used in this
section shall have the meaning set forth in subsection .070 of
Section 4.73.210 of this Chapter. The City Council may establish
a deadline for the receipt of applications (the "application
deadline") during any period that the application process is
deemed open. Upon the receipt of one or more franchise
applications prior to any application deadline established by the
City Council, the City shall accept and process such taxicab
franchise applications in accordance with the provisions set
forth in Section 4.73.050 of this Chapter, and shall award one or
more additional taxicab franchises until the total number of
taxicabs authorized by all taxicab franchises equals the number
of taxicabs theretofore determined by the City Council to be
required by the public convenience and necessity pursuant to
subsection .040 below. Following the application deadline, the
application period for taxicab franchises shall be deemed closed
and no further applications for taxicab franchises shall be
accepted, processed or awarded until the application period is
reopened upon the occurrence of one of the events described
above.
.040 Determination of Public Convenience and Necessity for
Additional Taxicabs. The City Council, at its sole and absolute
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discretion, by motion duly adopted by the City Council, may
periodically schedule a public hearing to determine, by
resolution, whether the public convenience and necessity require
the operation of additional taxicabs in the City of Anaheim. If
the City Council determines that additional taxicabs are
required, the resolution shall specify the number of additional
taxicabs required. Said resolution shall constitute the
resolution referred to in subsection .030 above. Any
determination that the public convenience and necessity require
the operation of additional taxicabs in the City shall be based
upon the following findings:
.0401 That the additional taxicabs will not
substantially impair the ability of the franchisees then
currently holding taxicab franchises from the City, under
efficient management, to earn a fair and reasonable return on
their capital investments devoted to such taxicab service;
.0402 That the franchisees then currently holding
taxicab franchises from the City, under normal conditions, are
not adequately serving the reasonable taxicab needs in the City
of Anaheim; and
.0403 That the additional taxicabs, together with
the taxicabs then currently operated by franchisees holding
taxicab franchises from the City, will not unduly congest,
overburden, or interfere with any public street access or traffic
flow, or any public or private parking, or any public or private
taxi stands or taxi queuing areas, or otherwise create any danger
or hazard to the public peace, health or safety.
The term "franchisees" as used in this subsection .040
shall include any person or entity lawfully operating under an
Existing Permit as defined in subsection .070 of Section 4.73.210
of this Chapter.
4.73.050 APPLICATION FOR FRANCHISE.
Within any application period specified in subsection
.030 of Section 4.73.045 of this Chapter, any applicant seeking
to operate as a franchisee, or any then existing franchisee
seeking to increase the number of taxicabs it is authorized to
operate, may apply to the City by filing with the Code
Enforcement Division of the Planning Department, upon forms
supplied by the City and in accordance with the request for
proposals issued by the City therefor, a verified application
containing at a minimum the following information which shall be
binding upon and enforceable upon the applicant in any franchise
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awarded pursuant to such application. Any application by an
existing franchisee to increase the number of taxicabs it is
authorized to operate shall be deemed an application for a new
and separate franchise for purposes of the processing of such
application pursuant to this chapter.
.010 Name and address of applicant.
.0101 If the applicant is a corporation, the state
of incorporation and the names and addresses the each officer
thereof.
.0102 If the applicant is a partnership, the name
and address of each partner shall be set forth in the
application.
.020 A list of all vehicles, including license plate numbers
and vehicle identification numbers, to be used in connection with
the franchise for which the application is filed and the age of
said vehicles.
.030 A list of all drivers who will operate a taxicab
pursuant to such franchise, accompanied by the California
drivers' license number and license class of each such person.
.040 Proof of insurance in a form acceptable to the City.
.050 Such other and further information as the Code
Enforcement Manager may reasonably require to evaluate and
process applications for the franchises to be awarded hereunder.
The requirements of this Chapter shall supersede the
requirements of Chapter 1.03 of this Code with regard to taxicab
franchise applications.
4.73.060 PUBLIC HEARING.
.010 Upon receiving one or more applications for a franchise
within any application period established under the provisions of
this chapter and reviewing the same for completeness and
accuracy, the Code Enforcement Manager shall present the fully
and properly completed application(s) to the City Council at a
regularly scheduled meeting thereof.
.020 At such meeting, or within a reasonable time
thereafter, the City Council shall adopt a resolution giving
notice of the application(s) and setting a date and time for a
public hearing on the application(s). The resolution shall give
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notice that one or more application(s) has been filed for a
franchise under this chapter, shall refer to and incorporate by
reference the application(s) on file with the Code Enforcement
Manager, and shall contain notice of the time and place the City
Council will hear persons desiring to be heard in favor of or in
opposition to the granting of such franchise(s). The City Clerk
shall provide the contents of any such application upon request
of any member of the public as a public record except for such
information as may be exempt from public disclosure pursuant to
any applicable provision of law.
.030 The hearing on the application(s) for a franchise shall
be held not earlier than the twentieth day following the date of
adoption of the resolution giving notice of the application(s)
nor later than the sixtieth day following the resolution's
adoption. The City Clerk shall cause the resolution giving
notice of the application(s) and of the time and place of hearing
on the application(s) to be published at least once in a
newspaper of general circulation in the City within fifteen (15)
days of the date of adoption of the resolution. If more than one
application is received by the City Council, such applications
may be considered at separate public hearings or combined into a
single public hearing at the sole discretion of the City Council.
.040 At the hearing on application(s) for a franchise, the
City Council shall give all persons desiring to be heard a
reasonable opportunity to present evidence or otherwise be heard
in favor of or in opposition to the granting of a franchise to
the applicant. At such hearing, the City Council may require
from the applicant such additional information as the City
Council may deem relevant and necessary. The hearing may be
continued or adjourned to a stated time and place without the
-. giving of further notice.
4.73.070 CRITERIA FOR GRANTING NONEXCLUSIVE FRANCHISE..
.010 Upon conclusion of the hearing on the application(s)
for a franchise, or within a reasonable time not to exceed sixty
(60) days thereafter, the City Council shall render its decision
on the application(s). The nonexclusive franchise shall be
granted or denied, based upon compliance with this chapter and
the criteria established pursuant to subsection .020 of this
section. Any grant of a franchise by the City Council may be
subject to such terms, conditions, rules, regulations,
restrictions and limitations as the City Council deems necessary
or appropriate to protect the public health, safety or general
welfare.
.020 The City Council may receive the recommendations of any
current or future advisory body established by the City Council
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or the City Manager to examine and evaluate applications for a
franchise and consider such recommendations in reaching its
decisions. The City Council may accept, reject or amend any such
recommendations. The criteria for evaluating applications for a
franchise may be established by such evaluation body subject to
the approval thereof by the City Council. The decision of the
City Council upon the granting or rejection of any application
for a franchise shall be final and conclusive.
.030 Should a franchise not be granted to an applicant, the
City shall issue a notice of such to the applicant within fifteen
(15) following the rejection of its application by the City
Council.
4.73.080 REQUIREMENTS FOR FRANCHISE.
No franchise granted pursuant to this chapter shall become
effective unless and until all of the following requirements have
been satisfied:
.010 The ordinance granting the franchise is effective.
.020 The applicant has provided a timely letter of
acceptance as to all the terms and conditions established by the
City Council for the granting of the franchise as contained in
the ordinance granting the franchise.
.030 The applicant has provided an up to date and complete
list of the vehicles to be used to perform the services
authorized by the franchise by registration or license number and
the personnel assigned thereto as of the date of applicant's
acceptance of the franchise.
.040 The applicant has provided evidence of compliance with
the insurance requirements and any other terms and conditions of
this chapter and any other terms and conditions of operation as
imposed by the City Council, the Manager of Code Enforcement, the
Police Chief or OCTAP.
.050 All applicable franchise fees have been paid in full.
4.73.090 INDEMNIFICATION OF THE CITY.
.010 The franchise shall provide that the franchisee shall
indemnify, hold harmless, release and defend the City, its City
Council and each member thereof, and its officers, employees,
commission members and representatives, from and against any and
all liability, claims, suits, costs, expenses, fines, judgments,
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settlements, charges or penalties whatever, including reasonable
attorneys fees, regardless of the merit or outcome of the same
arising out of, or in any manner connected with, any or all of
the operations or services authorized, conducted or permitted
under a nonexclusive franchise agreement grant under this
chapter.
.020 Applicants shall sign an affidavit in a form acceptable
to the City Attorney which confirms their understanding of and
agreement to the obligations imposed under this section, as a
condition precedent for receiving a franchise hereunder.
4.73.100 TERMINATION OF NONEXCLUSIVE FRANCHISE BY THE CITY
COUNCIL.
.010 The City Council shall have the right to terminate or
to suspend any franchise awarded hereunder for the reasons and
pursuant to the procedures set forth in this section.
.020 A notice of intent to terminate a nonexclusive
franchise shall be personally delivered or mailed by certified
mail, at the discretion of the City, to the party named and to
the address given on the application pursuant to which such
nonexclusive franchise was issued. The notice shall state the
grounds for termination or suspension and shall give the
franchisee notice of a hearing before the City Council thereon,
which shall be convened no more than 15 days after the date of
notice unless the time for such hearing is extended by mutual
agreement. The hearing shall be conducted and closed, and
decision rendered thereon, within 60 days after the date of the
notice unless the time therefor is extended by mutual agreement.
.030 The City Council shall have the right to terminate, by
ordinance, any nonexclusive franchise granted pursuant to this
chapter if the City Council finds, based upon a preponderance of
the evidence, after a public hearing, that the franchisee has
failed to comply with any term, condition or other requirement of
the franchise or that franchisee has failed to pay the franchise
fees required under this chapter or has violated any provision of
the ordinance granting the nonexclusive franchise, or any
ordinance of the City or any law or regulation of OCTAP, of the
state or of the United States in connection with the performance
of the nonexclusive franchise or that franchisee's conduct
demonstrates that the franchisee is unable or unwilling to comply
with the terms of the nonexclusive franchise.
.040 In its discretion, the City Council may appoint a
hearing officer to conduct such revocation hearing, receive such
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evidence as is properly introduced, take testimony thereon, and
render a recommendation to the City Council on the issue before
the hearing officer. The hearing officer shall be selected by
the mutual agreement of the parties by alternately striking names
from a list provided by the California State Mediation and
Conciliation Service. The expenses of the hearing officer shall
be shared equally by the city and the franchisee. If the
franchisee fails to timely participate in the process of
selection of the hearing officer, the City Council may appoint
such a hearing officer who will be compensated by the City.
.050 At a regularly scheduled meeting held within sixty (60)
days of the issuance of the hearing officer's recommendations,
the City Council may by motion adopt, reject or modify and adopt
the findings of the hearing officer by a vote of no less than
three members. If the recommendation of the Hearing Officer is
rejected, the City Council shall determine the issue at that time
and may instruct the City Attorney to prepare a proposed written
decision incorporating the conclusions of the City Council. The
City Council shall adopt or modify such proposed decision by
motion within twenty-one (21) days of its decision. The adoption
of a dispositive motion by the City Council shall conclude the
administrative process. Notice of the decision of the City
Council shall be provided by certified mail to the franchisee.
4.73.110 TEMPORARY SUSPENSION OF FRANCHISE.
The Director may temporarily suspend any nonexclusive
franchise without a hearing, whenever the continued operation by
the franchisee would constitute a danger to public health,
safety, welfare or public morals, including, without limitation,
where there is a failure to maintain the minimum levels and
standards of liability insurance or claims reserve or failure to
keep in full force and effect any applicable licenses or permits
required by federal, state or local law. The notice of temporary
suspension shall be either (1) personally delivered to the party
named and to the address given on the application pursuant to
which such franchise was issued, or (2) mailed by certified mail
to the party named at the address given on the application
pursuant to which such franchise was issued. The temporary
suspension is effective upon the earlier of either delivery of
said notice or the expiration of five (5) days from the date of
mailing. The notice of temporary suspension shall include a
notice of the date and time for a termination hearing and all
other information required by Section 4.73.100. The temporary
suspension shall remain effective until the decision on
termination by the City Council is made pursuant to Section
4.73.100 or unless and until the suspension is earlier lifted by
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written notice of the Director. By mutual agreement, the time
limitations provided in Section 4.73.100 may be modified to avoid
unnecessary hardship.
4.73.120 NON -ALIENATION OF FRANCHISE.
Any nonexclusive franchise granted pursuant to this chapter
is a privilege to be held in trust by the original franchisee.
Such nonexclusive franchise shall not be sold, leased,
transferred, assigned, or otherwise disposed of, either in whole
or in part, whether by forced sale, merger, consolidation,
bankruptcy, reorganization under bankruptcy laws or otherwise,
without the prior written consent of the City Council. The
consent of the City Council shall be subject to such terms and
conditions as it may prescribe. Any attempted sale, lease,
transfer, assignment or other attempted disposition of this
franchise without the prior written consent of the City Council
shall render said franchise null and void.
4.73.130 FRANCHISE FEES.
.010 Each franchisee granted a franchise pursuant to this
chapter shall pay a franchise fee to the City during the term of
such franchise. The franchise fee shall be in an amount as set
forth by resolution adopted by the City Council.
.020 Franchise fees shall be due and payable in a manner and
at a time established by the City Council. The first payment of
franchise fees shall be due and payable within thirty (30) days
of the effective date of the franchise. Thereafter, quarterly
payments of the franchise fee shall be due and payable within
fifteen (15) days from and after the end of each three-month
period during which the franchise is in effect. Each payment
shall be calculated in accordance with the provisions of the
resolution adopted by the City Council pursuant to this chapter.
.030 The Director shall require franchisees to establish and
maintain a deposit to be held by the City from which payments of
required franchise fees shall be deducted. The Director of
Finance shall deduct the appropriate franchise fee from said
deposit and notify the franchisee of said deduction. The failure
to maintain such deposit account at the level prescribed shall be
deemed a failure to pay the required franchise fees. Interest
earned by such deposited funds, if any, shall be credited to the
depositor.
.040 The payment of franchise fees to the City by the
franchisee pursuant to this chapter shall be in addition to any
license fee or business license tax prescribed by the City.
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4.73.140 CITY INSPECTION AUTHORITY.
The franchisee shall at all times maintain accurate and
complete accounts of all revenues and income arising out of its
operations under the franchise granted pursuant to this chapter,
a list of vehicles in use as taxis, any complaints by patrons and
such other information as is necessary to verify compliance with
the terms of the franchise granted hereunder. Franchisee's
books, accounts and records pertaining to compliance with the
terms of the franchise shall at all reasonable times be open to
inspection, examination and audit by authorized officers,
employees and agents of the City. The refusal of the franchisee
to provide the required records for inspection by the City shall
be deemed a violation of the franchise and shall be cause for
termination of the franchise. Any proprietary data provided to
the City shall be maintained as confidential to the extent
permitted by law.
4.73.150 TAXICAB FRANCHISE DECALS REQUIRED.
Upon the granting of a franchise pursuant to this Chapter,
the owner of each taxicab franchised hereunder shall cause to be
affixed to each and every taxicab so franchised decals issued by
the City's Code Enforcement Division. Two decals shall be affixed
to each vehicle covered by a taxicab franchise - one on the left
front fender and one on the right front fender in a location
approved by the Director. The owner shall pay the cost of
providing and issuing said decals in an amount established by
resolution of the City Council. It shall be unlawful for any
person to operate a taxicab within the City of Anaheim which
taxicab does not have the franchise decals displayed thereon in
the manner required by this section.
4.73.160 POWERS RESERVED TO THE CITY.
In addition to all other rights reserved to the City under
this chapter, the following shall apply.
.010 There is reserved to the City every right and power,
and the exercise thereof, which is reserved or authorized by any
provisions of any lawful ordinance or resolution of the City,
whether enacted before or after the effective date of the
ordinance codified in this chapter.
.020 Neither the granting of any nonexclusive franchise nor
any provisions of any nonexclusive franchise shall constitute a
waiver of or a bar to the exercise of any governmental right or
power of the City.
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.030 The franchisee shall have no recourse whatsoever
against the City, its officers, employees or agents, for any
loss, cost, expense or damage arising out of any provision or
requirement of this chapter or of any nonexclusive franchise
issued under this chapter or because of the enforcement of this
chapter.
.040 There is expressly reserved to the City the power and
authority to amend any section of this chapter so as to require
additional or greater standards on the part of the franchisee and
the power and authority to increase the nonexclusive franchise
fees to be paid by the franchisee pursuant to Section 4.73.130.
4.73.170 VIOLATION - PENALTY.
Any person who operates a taxicab within the City
without a valid franchise therefor from the City, and/or any
franchisee or owner of a taxicab which permits such taxicab to be
operated within the City without such a franchise, and/or any
person who operates a taxicab in violation of any provision of
this chapter, and/or any franchisee or owner of a taxicab which
permits such taxicab to be operated in violation of any provision
of this chapter, and/or any driver, franchisee, owner or other
person, firm, partnership, corporation or other entity who or
which violates any provision of this chapter, or any owner of a
taxicab which permits the operation of a franchised taxicab,
within the City in violation of any provision of this chapter, is
guilty of a misdemeanor and upon conviction thereof shall be
punishable as provided in Section 1.01.370 of the Anaheim
Municipal Code.
4.73.180 LIABILITY INSURANCE.
The Division of Risk Management shall be authorized to
prescribe the minimum levels and standards of liability insurance
which must be maintained in order to apply for, to receive and to
operate a franchise under this chapter and the manner in which
compliance with the minimum standards is demonstrated. The
failure to maintain the minimum levels and standards of liability
insurance for any period of time is a violation of this chapter
and shall be sufficient grounds for temporary suspension or
termination of a nonexclusive franchise.
4.73.190 REQUIREMENTS FOR OPERATION OF FRANCHISED TAXICABS.
No driver shall operate, and no owner or franchisee
shall permit operation of any taxicab under its ownership or
control, except in accordance with the following requirements:
15
.010 A driver shall carry a passenger to his or her
destination by the most direct feasible route unless otherwise
directed by the fare payer.
.020 Each taxicab franchised hereunder shall display all
permits issued by OCTAP under the rules promulgated by OCTAP.
.030 Each taxicab shall have prominently displayed in the
passenger compartment a schedule of rates and charges, the
driver's name and address, the owner's name, address and
telephone number and the taxicab identification number.
.040 A driver shall provide any passenger with a receipt for
the full fare and tip paid at the request of the passenger.
.050 A driver shall not leave his or her cab to solicit
passengers.
.060 No taxicab shall be operated unless the passenger
compartment is in a clean and sanitary condition.
.070 The name or trade name of the owner must be stenciled
or painted upon the outside of each taxicab in conformance with
rules established by OCTAP.
.080 No taxicab may display advertising other than for its
own services from its roof in any manner using raised frames,
lighted panels or any other means.
.090 No driver shall operate a taxicab for more than twelve
consecutive hours nor shall any driver operate a franchised cab
without having had, immediately preceding such twelve hours of
operation, no less than eight consecutive hours time off within
the previous sixteen hours during which no taxicab was operated
by such driver.
.100 No taxicab shall be operated in a manner that violates
the terms and conditions of the ordinance granting its franchise
or the representations made and commitments undertaken in the
franchisee's application for its franchise.
4.73.200 TERM OF NONEXCLUSIVE FRANCHISE.
The term of any franchise granted under the provisions
of this chapter shall be for five (5) years unless earlier
terminated under the terms of this chapter. Any such franchise
shall extended for one (1) additional year after each of the
first five years of the term thereof by the City Council upon
Pirl
request of the franchisee provided the City Council determines
that the franchise has been exercised in a manner consistent with
this chapter and with the terms and conditions of such franchise
during such one year period. Each annual extension shall be
requested in writing by the franchisee to the Director not
earlier than thirty days prior to, nor later than thirty days
following the annual anniversary date of the adoption of the
ordinance approving said franchise. Failure to request any
annual extension within the time period specified shall be deemed
a waiver of said annual extension.
4.73.210 EFFECT OF CHAPTER 4.73 UPON CHAPTER 4.72 AND OPERATOR'S
PERMITS PREVIOUSLY ISSUED THEREUNDER.
.010 The provisions of Chapter 4.72 of Title 4 of the
Anaheim Municipal Code shall be inoperative as of the date and
time this Chapter 4.73 becomes effective and shall remain
inoperative so long as the provisions of this Chapter 4.73 are in
effect, except as otherwise expressly provided in this section.
.020 Upon the effective date of any franchise granted
pursuant to this Chapter 4.73, any operator's permit theretofore
issued to said franchisee pursuant to Chapter 4.72 of this Code
shall be null and void, and without further force and effect,
except as otherwise expressly provided in this section.
.030 Notwithstanding subsection .010 of this section, the
provisions of Chapter 4.72 shall be operative and in full force
and effect during any period the City is enjoined, restrained or
otherwise prohibited by any court of competent jurisdiction from
enforcing the provisions of this Chapter 4.73 requiring
franchises for the operation of taxicabs or during any period an
operator's permit issued pursuant to Chapter 4.72 is in effect
pursuant to any provision of this section.
.040 Any operator's permit issued pursuant to Chapter 4.72,
which permit is in effect on the date this Chapter 4.73 is
adopted, shall be in effect, subject to compliance with all
applicable requirements of Chapter 4.72 and the terms and
conditions of said permit, during any period the City is
enjoined, restrained or otherwise prohibited by any court of
competent jurisdiction from enforcing the provisions of this
Chapter 4.73 requiring franchises for the operation of taxicabs.
.050 In the event any court of competent jurisdiction enters
any order temporarily restraining, enjoining or prohibiting the
operation of taxicabs by a franchisee pending final adjudication
in any court action challenging the validity of said franchise or
17
any provision of this chapter, any operator's permit theretofore
issued to said franchisee pursuant to Chapter 4.72 of this Code,
which permit was in effect on the date the ordinance approving
said franchise was adopted, shall remain in effect during the
period said court order is in effect provided that said permit
and all taxicab operations thereunder shall comply with all
applicable requirements of Chapter 4.72 and all terms and
conditions of said permit.
.060 In the event any court of competent jurisdiction enters
a final judgment declaring any franchise issued pursuant to this
chapter to be invalid or unenforceable, or permanently enjoining
the operation of taxicabs pursuant to said franchise, any
operator's permit theretofore issued to said franchisee pursuant
to Chapter 4.72 of this Code, which permit was in effect on the
date the ordinance approving said franchise was adopted, shall
remain in effect provided that said permit and all taxicab
operations thereunder shall comply with all applicable
requirements of Chapter 4.72 and all terms and conditions of said
permit.
.070 Notwithstanding any other provision of this Chapter
4.73 to the contrary, any person or entity holding a valid
operator's permit issued pursuant to Chapter 4.72 of this Code
which permit is in effect on the date of adoption of this Chapter
4.73 (referred to herein as an "Existing Permit") which person or
entity either (i) is not awarded an Initial Taxicab Franchise
pursuant to subsection .010 of Section 4.73.045 of this Chapter,
or (ii) is awarded an Initial Taxicab Franchise but fails or
refuses to timely comply with the provisions of Section 4.73.080
of this Chapter, may continue to operate under the provisions of
said Existing Permit, and the applicable provisions of Chapter
4.72 shall continue to apply with regard to said Existing Permit,
subject to the following:
.0701 Said Existing Permit shall be exercised and
maintained in compliance with all applicable provisions of
Chapter 4.72 of this Code and all terms and conditions of said
Existing Permit; and
.0702 The maximum number of taxicabs authorized
pursuant to said Existing Permit shall be reduced to thirty (30)
vehicles effective as of midnight on May 31, 2002; and
.0703 Said Existing Permit shall expire and
terminate in its entirety as of midnight on May 31, 2006.
.0704 Nothing contained herein shall prohibit the
person or entity exercising any rights under said Existing Permit
from applying for a taxicab franchise at any time a franchise
application period is open pursuant to subsection .030 of Section
4.73.045 of this Chapter. Failure to apply for or obtain a
franchise during the period said Existing Permit is in effect
shall not affect said Existing Permit or the duration thereof."
Section 2.. SEVERABILITY
The City Council of the City of Anaheim hereby declares that
should any section, subsection, paragraph, sentence or word of
this ordinance be declared for any reason to be invalid, it is
the intent of the City Council that it would have passed all
other portions of this ordinance independent of the elimination
herefrom of any such portion as may be declared invalid.
Section 3. SAVINGS CLAUSE
Neither the adoption of this ordinance nor the repeal
or suspension of any other ordinance of this City shall in any
manner affect the prosecution for violations of ordinances which
violations were committed orior to the effective date hereof, nor
be construed as a waiver of any license or penalty or the penal
provisions applicable to any violation thereof. The provisions
of this ordinance, insofar as they are substantially the same as
ordinance provisions previously adopted by the City relating to
the same subject matter, shall be construed as restatements and
continuations and not as new enactments.
THE FOREGOING ORDINANCE is approved and adopted by the
City Council of the City of Anaheim this 24th day of April ,
2001.
9 L ZA,000"
MAY OF THE ITY OF A HEIM
ATTEST:
TY CLKRK THE CITY OF ANAHEIM
36930.8
19
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss.
CITY OF ANAHEIM )
I, SHERYLL SCHROEDER, City Clerk of the City of Anaheim, do hereby certify that the foregoing
Ordinance No. 5765 was introduced at a regular meeting of the City Council of the City of
Anaheim, held on the 17th day of April, 2001, and that the same was duly passed and adopted at
a regular meeting of said City Council held on the 24th day of April, 2001, by the following vote of
the members thereof:
AYES:
MAYOR/COUNCIL MEMBERS:
Feldhaus, Kring, McCracken, Daly
NOES:
MAYOR/COUNCIL MEMBERS:
Tait
ABSENT:
MAYOR/COUNCIL MEMBERS:
None
/ 41 i
(SEAL)
AFFIDAVIT OF PUBLICATION
STATE OF CALIFORNIA, )
) ss.
County of Orange )
I am a citizen of the United States and a resident
of the County aforesaid; I am over the age of
eighteen years, and not a party to or interested
in the above entitled matter. I am the principal
clerk of the Anaheim Bulletin , a newspaper
that has been adjudged to be a newspaper of
general circulation by the Superior Court of the
County of Orange, State of California, on
December 28, 1951, Case No. A-21021 in and
for the City of Anaheim, County of Orange,
State of California; that the notice, of which the
annexed is a true printed copy, has been
published in each regular and entire issue of said
newspaper and not in any supplement thereof on
the following dates, to wit:
May 3, 2001
"I certify (or declare) under the penalty of
perjury under the laws of the State of California
that the foregoing is true and correct":
Executed at Santa Ana, Orange County,
California, on
Date: May 3, 2001
Signature
Anaheim Bulletin
625 N. Grand Ave.
Santa Ana, CA 92701
(714) 796-7000 ext. 3002
PROOF OF PUBLICATION
This space is for the County Clerk's Filing Stamp
Proof of Publication of
Paste Clipping of
Notice
SECURELY
In This Space
Op'"004muf NO
M Vit.
VVHFRFAS, relao,e, sate and efficient taxicab service is
necessary i.o facilitate the transportation of visitors to Ana-
heim and for transportation of those residents who do not
drive personal vehides for travel within the City of Anaheim
and
WHEREAS, the franchising of taxicab service within the
City of Anaheim through a competitive process will promote
the public health, safety and welfare by promoting stability
among taxicab providers and by establishing higher stand-
ards of service, safety and reliability among taxicab service
providers, and
WHEREAS, Section 1400 of Article XIV of the Charter of
the City of Anaheim authorizes the City Council to grant
franchises to persons or business entities furnishing trans-
portation services to the inhabitants of the City; and
WHEREAS. the City Council has received, reviewed and
considered numerous studies, reports and other materials
relating tc +rtxicab service in the City of Anaheim including,
but not li,:. '.ed to Anaheim's Current and Future Taxi Serv-
ice Needs dated September 30,1999; Anaheim Taxicab
Franchise Developments - Recommendations dated July
20, 2000: Selection Committee Evaluation and Recommen-
dations for Taxi Serv!ce Franchises dated March 27, 2001;
Anaheim Business Taxicab Survey Results conducted by
OCTAP and dated March 16, 1999; and A Study of the Abili-
ty of South Coast Cab Company to Adequately Service the
Non -Resod Areas of Anaheim as of November, 1997 pre-
pared by lac, Armstrong & Associates; and
WHEREAS, he City Council finds and determines that:
(A) The:t: ct)rrertly exists a need within the City for up to
three franchised taxicab providers to operate 230 taxicabs,
which neer; will increase to 260 taxicabs and four taxicab
providers in 2002. and that such need has been determined
based upon:
(1) `he adequscy of existing service within the City;
(2) The Increased demand for service based upon
growth in the City, particularly in the Anaheim Resort Area;
and
(3) The need to assure prompt, sate and reliable taxi
service to the City's residents and visitors while avoiding the
adverse effects upon the taxi businesses and the public
which can result from an oversupply of taxicabs competing
for the same, customers; and
(B) The City Council has heretofore issued taxicab per-
mits to three providers authorizingra total of 2B2 taxicabs
within the City; and
(C; The City Council has heretofore determined that it is
In the public interest and general welfare of the City and its
residents to establish new minimum standards for the opera -
lion of taxicab services in the City, to raise the quality of taxi-
cab service within the City, to replace the City's current per-
mit procedures with new procedures for the award of trench
ises on a competitive basis, and to provide for the orderly
termination of existing taxicab permits and replacement of
such permits with franchises to be awarded by the City
Council on the basis of competitive proposals; and
(D) -the City Council has heretofore established new
standards for service for proposed franchisees and has pub-
licly solicited requests for competitive proposals from poten-
tial taxi providers, including each of the currentpermit hold-
ers in the City, for the award of up to three initial franchises
for 230 taxicabs; and
(E; Not every existing taxicab permit holder in the City
has submitted a proposal for one of the initial franchises
and, therefore, at least one of the existing permit holders
will not be awarded an initial franchise; and
(F) Based upon the geographical area of the City
(approximately 50 square miles) and the distance from the
westerly to the easterly city limits (approximately 20 miles),
a minimum of thirty taxicabs are necessary for any taxi pro-
vider to adequately serve the needs of the entire City; and
(G) It is in the public interest and general welfare of the
residents of the City to provide for the orderly transition and
termination of the taxicab permits heretofore approved by
the City, and to provide procedures establishing a competi-
tive process for the award of taxicab franchises in the future;
and
(H) An taxi operator currently operating under a permit
from the City who is not awarded or does not accept an ini-
tial franchise should be allowed to continue to operate for a
reasonable period of time, even though such operation may
result in an oversupply of taxicabs at lower standards of op-
eration during such period, in order to achieve an orderly
and reasonable transition from the current permit system to
franchises, provided such operations should be limited, as
to both number of taxicabs and duration of operation, to
minimize the oversupply of authorized taxicabs and the ad-
verse effects from such oversupply
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY
OF ANAHEIM DOES ORDAIN AS FOLLOWS:
Section 1. That new Chapter 4.73 is hereby added to Ti-
tle 4 of the Anaheim Municipal Code to read as follows:
"Chapter 4.73
TAXICAB FRANCHISES
"4.73.010 DEFINITIONS.
For the purposes of this chapter, certain terms used
herein are defined as follows:
.010 "City" means the City of Anaheim.
.020 "City Council" means the City Council of the City.
.030"Director" means the Director of Planning of the City
or his or her authorized representative.
.040 "Driver" means a person who operates a taxicab.
.050"Franchisee" means any person, firm, association,
corporation, partnership or other entitygranted a franchise
by the City pursuant to this chapter.
Na;.'ale I�P� ! -. "iean5
tax car a -r r:- the ,+b_.i )',-e •,- ,m , sengers .. f,C
city
.080 "Owner" means the registered owner or lessor of a
taxicab.
.090"Taxicab'• means a motor vehicle operated tar hire to
transport passengers to specific destinations of the
passengers' choice, capable of carrying not more than
eight persons, excluding the driver. The term shall exclude
any vehicle operating as a charter party carrier licensed as
such by any state agency or any other vehicle as to which a
valid certificate of public convenience and necessity has
been issued by any state agency.
4.73.020 TAXICAB FRANCHISES - PURPOSE AND
DECLARATIONS.
.010 It is declared and determined that the operation of
taxicabs affects the health, safety and general welfare of the
residents of the City. The operation of taxicabs requires
that a high level of trust and confidence by the traveling
public be established and maintained in the equipment, per-
sonnel and procedures used for providing taxicab service.
Such services are determined to be necessary for the use
of residents who do not drive personal vehicles for obtain-
ing the necessities of fife and for the efficient movement of
guests and visitors about the City. Maintaining the vital role
of taxicabs in the overall transportation assets of the City re-
quires that only those taxicab owners and drivers who have
demonstrated that they possess the facilities, control sys-
tems and knowledgeable personnel to protect the interests
of the City and the traveling public be authorized to provide
taxicab service within the City. Therefore, it is a purpose of
this chapter to adopt procedures to regulate this service to
the community as authorized pursuant to Section 1400 of
the Charter of the City of Anaheim.
ex stir .a fra i, a t': ..
-
- -. ...
,ours,, deci u r t ,y a
... - .'
- ie Permit oe c , es r a ,-.e
-
as ;- sp ne• .
used in this section shalt have tie i c t
�;;f I t ee ays c ate ..
section .070 of Section 4.73.210 f hapte
t or a ne at,r. rca rad .
'':or
Council may establish a deadiir e : receipt7pj a
c ; in catio-; r -ay be a ,- -
rons (the "application deadline due : any re ioc th, ,he
1 pub[ , hear,,-ps , onto -:eci into a ; • g -
application process is deemed open upon the recent if
ire ., r t: )f the : t "au*-
one or more franchise applications p -= to any applicator
deadline established by the City CoareI the City sha! c
LA tie ria r q or nppncatior c -
cept and process such taxicab franchise applications r ac-
( City Cw c r a .. ve an persons r =rte t
cordance with the provisions set forth to Section 4 73 Oso of
sonaole opportu.,,ry to present evice c t ery _
this Chapter, and shall award one or more additional taxi-
heard in favor of i-, in opposition tc the c an i,g r, -
cab franchises until the total number of taxicabs authorized
chise to the app ant. At such hea ig the Tv c
by all taxicab franchises equals the number of taxicabs
may require `eon 'he applicant suer itdc nor in au:x
theretofore determined by the City Council to be required
as the City Couro, may deem rete, a -t a d aces -
by the public convenience and necessity pursuant to sub-
'nearing may be )ntinuec or adlou_ ter+ o a state .-
section .040 below. Following the application deadline. the
:. and place >vil u, : "re giving of far'! ,r uve-
application period for taxicab franchises shall be deemed
closed and no further applications for taxicab franchises
:' 4.73.070 CRITERIA FOR GRANTING NONEXCLU
shall be accepted, processed or awarded until the applica-
! SIVE FRANCHISE..
tion period is reopened upon the occurrence of one of the
events described above.
.OtO Upon car t-;;sion a, the heat j o :he app
for a franchise c- within a reasonat7le i -e not to - aed s-
.040 Determination of Public Convw,ance and Necessity
ty (60) days -hereafter, the City Courc t -tall reneE des
for Additional Taxicabs- The City Council, at its sole and ab-
sion on the appuc ation(s). The nor eK ;ive'ran ve sha
solute discretion, by motion duly adopted by the City Coun-
be granted or der led. based upon ramp arse w •it,.
cil, may periodically schedule a public hearing to deter
chapter and the `teria establishes r• r ant 'o s �ct,r:r
mine, by resolution, whether the public convenience and net
020 of this sectic-•: Any grant of a franc-,,se_;,v tt , �itv
cessity require the operation of additional taxicabs in the
Anaheim. If the City Council determines that addition
Council may be G.abject to such tam's c ,rditan . es
regulations. restr J ons and limitations a he City : .nc'.
City of
at taxicabs are required, the resolution shall specify the num
I deems necessat, or appropriate tc ;:� of . •e ow
I
bar of additional taxicabs required. Said resolution shall
health. safety or-,eneral welfare.
constitute the resolution referred to in subsection 03C
above. Any determination that the public convenience and
.020 The City )uncii may recen:� f e r,; -
necessity require the operation of addi'ionat taxicabs in the
of any current of 'aura advisory bccv e o
City shad be based upon the followin^ I':ndings.
City Council o t �:_: City Manager tc exar e r
applications for a franchise and conside ,i� - el:
.0401 That the additional taxica� will not subs:actially
j tions in reaching is decisions. The' v wocrl ` -.
impair the ability of the franchisees they. currently holding
!i. sept, reject or an- any such rec.� * Caticr
taxicab franchises from the City, under efficient manage
: tena for evaluat e:y applications for -; ar :hise m , ...
ment, to earn a fair and reasonable return on their cal uta.
ii shed by such evaluation body suhloct - the app a
vestments devoted to such taxicab r,w ace
thereof by the C f, Council. The dec,sic, of the
..,pon the grant t^c, or rejection of at p act a. ,o ,a
.0402 That the franchisees ten _rrently holding ax
chise shall he f c, and conclusive
cab franchises from the City, under -,!mal conditions are
not adequately serving the reasonabl taxicab needs �, the
.030Shoulo a arichise not be g
City of Anaheim; and
I the City shall iss a notice of sucr :- t j ica
teen (15) follow✓ r the rejection or '� rn ! --
.0403 That the additional taxicab, together vwim.:he
; Council
taxicabs then currently operated by franchisees hoicir.g taxi-
I
1
cab franchises from the City, will not :.mduly congest over-
4.73.080 REQUIREMENTS FOR FRANCHISE
burden, or interfere with any public street access or traffic
flow, or any public or private parking. or any public or ori-
No franchise 4 ,rated p�usrant ir '- s a, -
vat. taxi stands or taxi queuing areas. or otherwise aeate
come effective , ess ane until at -r ri
any danger or hazard to the public peace.. health or safety
i rents have bee, satisfied
.02011 is also recognized that the City is required to adopt
and implement a mechanism to promote the safe and a F
cient transportation of residents and visitors and that the
City may impose fees to fund the cost of thiseffort and to
augment the funds available for assuring the quality of taxi-
cab service and enforcing the standards promulgated by
the City.
.03OThe electors of the City, by the adoption of Article XIV
of the City Charter, elected to implement the home rule pro-
visions of Article XI of the Constitution of the State of Califor-
nia as to municipal affairs and, because the granting of non-
exclusive franchises of the nature referred to herein are with-
in
ith
in the class of actions designated as municipal affairs, the
City Council hereby declares that the provisions of this chap
ter, together with the provisions of the Charter of the City,
shall constitute the exclusive procedure for the granting of
franchises for the operation of taxicabs and shall supersede
any otherwise applicable provisions of this Code.
4.73.030 ACTIVITIES WHICH ARE UNLAWFUL UN-
LESS AUTHORIZED - ACTIVITIES NOT COVERED.
Except as may otherwise be permitted in this chapter, it
is unlawful for any person to operate a taxicab or solicit pas -
senggars for transportation in a taxicab within the City unless
the following conditions have been met:
010 A franchise therefor has first been granted pursuant
to the provisions of this chapter and such franchise is in full
force and effect; and
.020A written acceptance of the franchise has been timely
executed by the grantee a, provided in Section 1403 of the
City Charter.
.030This chapter shall not apply to limousine or livery vehi
cies displaying the identification specified in Vehicle Code
Section 5011.5 available to members of the public by a,y
person or vehicles designed to transport more than eight
passengers, excluding the driver.
4.73.040 NONEXCLUSIVE FRANCHISE - TERMS
AND CONDITIONS.
.010 Subject to the limitations of this chapter, the Cray
Council may, and is empowered to, grant by ordinance, to
any qualified person, firm, association, corporation, patner-
ship or other entity, a nonexclusive franchise to operate taxi-
cabs within the City in such number as expressly provided
in said franchise.
.020AII franchises granted pursuant to this chapter ::hall
be nonexclusive. No provisions of this chapter shall be
deemed to require restricting the number of franchises to
one or any particular number. However, in the sole exer-
cise of its discretion, and in accordance with the prose
dures set forth in this chapter, the City Council may limit the
number of franchises which may be extant.
.030AII nonexclusive franchises granted hereunder shall
be subject to the terms and conditions specified in the City
Charter, and in this chapter, and in the ordinance granting
the franchise, and in the terms and conditions set forth in
the Request for Proposals for Providing Taxicab Service
and the responses provided by the franchisee thereto.
.0401n granting any franchise, the City Council may pre-
scribe such terms and conditions, not in conflict with the
City Charter or this chapter, as in the judgment of the City
Council are in the public interest.
4.73.045 NUMBER OF TAXICABS FRANCHISED.
.010 Initial Taxicab Franchises. Following the adoption of
this chapter, the City Council, by ordinance, shall award not
more than three franchises for the operation of 230 taxicabs
within the City (the 'Initial Taxicab Franchises"). Said french
ises may also provide for the occasional and temporary op-
eration of additional taxicabs by such franchisees in such
numbers and on such days and periods of peak need as
mayy be exxppressly authorized In said franchise ordinances.
02OAdditional Franchises. Following the adoption of ordi
trances approving the Initial Taxicab Franchises as provided
in subsection .010 above, the application period for taxicab
franchises shall be deemed closed and no further applica-
tions shall be accepted or processed, and no further french
ises shall be awarded, by the City except as hereinafter pro-
vided.
The term "franchiseesas csec pts subsetct!o ^40 j
shall include any person or entity lawf:.;ily operating : ,der
an Existing Permit as defined n, subsection .070 of Sr :or -
4.73,210 of this Chapter
4.73.050 APPLICATION FOR FRANCHISE.
Within any application per od s r .stied t sunset "
.030 of Section 4.73.045 of this Chapter, any app car eek
ing to operate as a franchisee or any '.hen existing f -a chi -
see seeking to increase the number �t taxicabs it is a fort
ized to operate, may apply to the CIT, r,y filing with tit
Code Enforcement Division of the Planing Departirer;
upon forms supplied by the City anc i,- accordance :h, ", the I
request for proposals issued by the City therefor, a verified
application containing at a minimum the following irf! m -•.a -
tion which shall be binding upon a!,,,. enforceable ipon the
applicant in any franchise awarded pursuant to such ool
cation. Any application by an existing franchisee to .r
crease the number of taxicabs it Is at to or r ani-
shall
te
shall be deemed an application for a new and searate'ran
-
chise for purpposes of the processing :'' such applicator-
pursuant
pplicator
pursuant to'his chapter
.010 Name and address of aopUcer
.0101 If the applicant n a or pr r -,lion, the state :_ ` ,car
potation and the names and addres the each office,
thereof.
,0102 If the applicant is a partnership. the name add ad
dress of each partner shall be set forth in the application.
.020A list of all vehicles, including ocense plate numbers
and vehicle identification numbers, to be used in cor,: �ec-
tion with the franchise for which the application is filed and
the age of said vehicles.
.030A list of all drivers who will operate a taxicab pin -
suant to such franchise, accompanied by the California
drivers' license number and license class of each such
person.
04OProof of insurance in a form acceptable to the C,ty
.050Such other and further information as the Coco En-
forcement Manager may reasonably require to evaluate and
Process applications for the franchises to be awarded
hereunder.
The requirements of this Chapter shall supersede the re-
quirements of Chapter 1.03 of this Code with regard to taxi-
cab franchise applications.
4.73.080 PUBLIC NEARING.
.010 Upon receiving one or more applications for a fran-
chise within any application per oil established under the
provisions of this chapter and reviewing the same for com-
pleteness and accuracy, the Code Enforcement Manager
shall present the fully and properly completed application(s)
to the City Council at a regularly scheduled meeting thereof[.
.020At such meeting, or within a reasonable time there-
after, the City Council shall adopt a resolution giving notice
of the application(s) and setting a date and time for a public
hearing on the application(s). The resolution shall give no-
tice that one or more appiication(s) has been filed for a fran-
chise under this chapter, shall refer to and Incorporate by
reference the application(s) on file with the Code Enforce-
ment Manager, and shall contain notice of the time and
pplace the City Council will hear persons desiring to be
heatd in favor of or in opposition to the granting of such
franchiae(s). The City Clerk shell rovide the contents of
syph applkxUon upon requ of any member of the
fIQ s bili t such-IrWottinsillon as
re ptyA 0tiofany:applir
0'O The %wall- ice gran ing the
JaOThe app tri has piovicec i v
--,ince as to all the erms and condo i, . tat J'. --
City Co - d,' for grantintq of the ern c sF l'- -
'.he d.r.a,,,e �;no The ranchic.
.030The apps ,t has provided i, -
Piete list of the ' icles to be uses t,)
authorized c'y thr, franchise by To st at -et
ber and the pars -,rel ascigrad [lief sic - �<
appilcin! s acre. _ince of the fram a se
0407the ap^ int has provided i -. -.
with the hsurarr = requirements at an, -t -.
conditions of tr' chapter and any -1 her e -
dors of operatior as imposed byy ttte t -
ager of Code _ ,cement. the Po ise C of . .
Ob-. II in:)!, :, fran,.f ise fees ,,
4.73.080 INDEMNIFICATION OF THE CITY
Otu The franc, se shall provide -hit tr e F. ncr
indemnify, hold h armless, release ar•o oeferthl *re --
City Council ane. each member thereof 3,c its of
pioyees, comms;ion members and rep, .se^xatro ..
and against any and all liability, claims, witsco x -•,.
as, fines, judgments, settlements, charges or pe K, :
ever, including reasonable attorneys fees. regard
merit or outcome of the same arising nuc nf. or ;r
ner connected wth, any or all of the operations or ;car` -:ice
authorized, conducted or permitted finder a rcne:, - i-......
franchise agreement grant under this chapter
.020 Applicant- shall sign an affidavit .e: a to.n rag!•,
ble to the City Attorney which conf:ams their unde r d,
of and agreemer' to the obligations imposes urn s ,v
tion, as a condition precedent for resew ng a. fear
hereunder
4.73.100 TERMINATION OF NONEXCLUSIVE li
CHISE BY THE CITY COUNCIL.
.010 The City Council shall have he r
to suspend any franchise awarded here c - r ror e -.
sons and pursuant to the procedures set forth
section.
.020 A notice cf intent to terminate a nonexclusv=t rrai
chise shall be personally delivered or mailed by certified
mail, at the discretion of the City, to the party named anu :
the address given on the application pursuant to -.white
such nonexclusive franchise was issued The notice snai.
state the grounds for termination or suspension and seal''
give the franchisee notice of a hearing before the City Co,.
al thereon, which shall be convened no more than 15 day.-.
after the date of notice unless the time for such hearing s
extended by mutual agreement. The hearing shall'' oe cot.
ducted and closed, and decision rendered theeee- withir
60 days after the date of the notice unless the time tnerefc
is extended by mutual agreement.
030The City Council shall have the right to tennirarc, r.
ordinance, any nonexclusive franchise granted pursuant tc
this chapter ff the City Council finds based upon a prepare
derance of the evidence, after a public hearing, that the 'ra-
chisee has failed to comply with any term, condition or otr
er requirement of the franchise or that franchisee has failed
to pay the franchise fees required under this chalets, or -
violated any provision of the ordinance granting the none,
clusive franchise. or any ordinance of the City or any law
regulation of OCTAP, of the state or of the United States
connection with the performance of the nonexclus ve fear
chise or that franchisee's conduct demonstrates the; the
franchisee is unable or unwilling to comply with the terms,
tole nenexoluaMs fr&VOtiea :: a
A ri cii r catir , heanrgreceive uc�l
a -I s pr > >e take te,hmony therevr
.e „ recr. , en.:a it I, ro the Ct Council or th. i� ,
we c: ore the heal r ig officer The hearr, g officer shall oe i
;elecled by the mutual agreement of the parties by alter-
nately striking names from a list provided by the California
State Mediation and Conciliation Service. The expenses of
the hearing officer shall be shared equally by the city and
the franchisee. If the franchisee fails to timely participate in
the process of selection of the hearing officer, the City Coun
cil may appoint such a hearing officer who will be compen-
sated by the City.
050 At a regularly scheduled meeting held within sixty
(60) days of the issuance of the hearing officer's recommen-
dations, the City Council may by motion adopt, reject or
modify and adopt the findings of the hearing officer by a
vote of no less than three members. If the recommendation
of the Hearing Officer is rejected, the City Council shall de-
termine the issue at that time and may instruct the City Attor-
ney to prepare a proposed written decision incorporating
the conclusions of the City Council. The City Council shall
adopt or modify such proposed decision by motion within
twenty-one (21) days of its decision. The adoptior. of a
diapositive motion by the City Council shall conclude the ad-
ministrative process. Notice of the decision of the City
Council shall be provided by certified mail to the franchisee.
4.73.110 TEMPORARY SUSPENSION OF
FRANCHISE.
The Director may temporarily suspend any nonexclu-
sive franchise without a hearing, whenever the continued op
oration by the franchisee would constitute a danger to pub-
lic health, safety, welfare or public morals, including, with-
out limitation, where there is a failure to maintain the mini-
mum levels and standards of liability insurance or claims re-
serve or failure to keep in full force and effect any applica-
ble licenses or permits required by federal, state or local
law. The notice of temporary suspension shall be either (1)
personally delivered to the party named and to the address
given on theap lication pursuant to which such franchise
was issued, or �2) mailed by certified mail to the party
named at the address given on the application pursuant to
which such franchise was issued. The temporary suspen-
sion is effective upon the earlier of either delivery of said no-
tice or the expiration of five (5) days from the date of mail-
ing. The notice of temporary suspension shall include a no-
tice of the date and time for a termination hearing and all
other information required by Section 4.73.100. The tempo-
rary suspension shall remain effective until the decision on
termination by the City Council is made pursuant to Section
4.73 100 or unless and until the suspension is earlier lifted
by written notice of the Director. By mutual agreement, the
time limitations provided in Section 4.73.100 may be modi-
fied to avoid unnecessary hardship.
4.73.120 NON -ALIENATION OF FRANCHISE.
Any nonexclusive franchise granted pursuant to this chap-
ter is a privilege to be held in trust by the original franchi-
see. Such nonexclusive franchise shall not be sold, leased,
transferred, assigned, or otherwise disposed of, either in
whole or in part, whether by forced sale, merger, consolida-
tion, bankruptcy, reorganization under bankruptcy laws or
otherwise, without the prior written consent of the City Coun-
cil. The consent of the City Council shall be subject to such
terms and conditions as it may prescribe. Any attempted
sale, lease, transfer, assignment or other attempted disposi-
tion of this franchise without the prior written consent A the
City Council shall render said franchise null and void.
4.73.130 FRANCHISE FEES.
.010 Each franchisee granted a franchise pursuant to this
chapter shall pay a franchise fee to the City during the term
of such franchise. The franchise fee shall be in an amount
as set forth by resolution adopted by the City Council.
.020Frmchise fees shall be due and payable in a manner
and at a time established by the City Council. The first pay-
ment of franchise fees shall be due and payable within thirty
(30) days of the effective date of the franchise. Thereafter,
quarterly payments of the franchise fee shall be due and
payable within fifteen (15) days from and after the end of
each three-month period during which the franchise is in ef-
fect. Each payment shall be calculated in accordance with
the provisions of the resolution adopted by the City Council
pursuant to this chapter.
.030 The Director shall require franchisees to establish
and maintain a deposit to be held by the City from which
payments of required franchise fees shall be deducted. The
Director of Finance shall deduct the appropriate franchise
fee from said deposit and notify the franchisee of said de-
duction. The failure to maintain such deposit account at the
level prescribed shall be deemed a failure to pay the re-
quired franchise fees. Interest earned by such deposited
funds, if any, shall be credited to the depositor.
.040The payment of franchise fees to the City by the fran-
chiseepursuant to this chapter shall be in addition to any li-
censefee or business license tax prescribed by the City.
4.73.140 CITY INSPECTION AUTHORITY.
The franchisee shelf at all times maintain accurate and
complete accounts of all revenues and income arising out
of its operations under the franchise granted pursuant to
this chapter, a list of vehicles in use as taxis, any complaints
by patrons and such other information as is necessary to
verify compliance with the terms of the franchise granted
hereunder. Franchisee's books, accounts and records per-
taining to compliance with the terms of the franchise shall at
all reasonable times be open to Inspection, examination
and audit by authorized officers, employees and agents of
the City. The refusal of the franchisee to provide the re-
quired records for inspection by the City shall be deemed a
violation of the franchise and shall be cause for termination
of the franchise. Any proprietary dataprovided to the City
shall be maintained as confidential to the extent permitted
by law.
4.73.180 TAXICAB FRANCHISE DECALS
REQUIRED.'
Upon the gCanting of a franchise pursuant to this Chapter,
the owner of "ch taxicab fipnchised hereunder shall cause
to be affixed til each and taxicab so franchised decals
issued try Cita s CC48�eriant Division. Two decals
shall tie to each vehide covered by a taxicab fran-
chise - o]n: the teff front f_ander and one on the right front
fenderin hr. TM owneris and issuing mid deedsin an
o v,r ati of the Civ Council. it
1.73.160 POWERS RESERVEL__? THE iATY.
r aadibun to a i of❑er r yr z nese , -ec la the ,
s hapte:- the ollewirq sIllll aor) +.
010 There is reserved to the City every right and power,
Ind the exercise thereof, which is reserved or authorized by
Iny provisions of any lawful ordinance or resolution of the
ry, whether enacted before or after the effective date of
he ordinance codified in this chapter
.020Neither the granting of any nonexclusive franchise
tar any provisions of any nonexclusive franchise shall con-
stitute a waiver of or a bar to the exercise of any governmen-
alrigght or power of the City.
030The franchisee shall have no recourse whatsoever
against the City, its officers, employees or agents, for any
ass, cost, expense or damage arising out of any provision
ar requirement of this chapter or of any nonexclusive fran-
:hise issued under this chapter or because of the enforce -
vent of this chapter.
.040There is expressly reserved to the City the power and
authority to amend any section of this chapter so as to re-
quire additional or greater standards on the part of the fran-
chisee and the power and authority to increase the nonex-
clusive franchise fees to be paid by the franchisee pursuant
to Section 4.73.130.
4.73.170 VIOLATION • PENALTY.
Any person who operates a taxicab wfthin the City with-
Dut a valid franchise therefor from the City, and/or any fran-
chisee or owner of a taxicab which permits such taxicab to
be operated within the City without such a franchise, and/or
any person who operates a taxicab in violation of any provi-
sion of this chapter, and/or any franchisee or owner of a taxi
cab which permits such taxicab to be operated in violation
of any provision of this chapter, and/or any driver, franchi-
see, owner or other person, firm, partnership, corporation or
other entity who or which violates any provision of this chap-
ter, or any owner of a taxicab which permits the operation of
a franchised taxicab, within the City in violation of any provi-
sion of this chapter, is guilty of a misdemeanor and upon
conviction thereof shall be punishable asprov dad in Sec-
tion 1.01.370 of the Anaheim Municipal Code.
4.73.180 LIABILITY INSURANCE.
The Division of Risk Management shall be authorized to
prescribe the minimum levels and standards of liability insur
once which must be maintained in order to apply for, to re-
ceive and to operate a franchise under this chapter and the
manner in which compliance with the minimum standards is
demonstrated. The failure to maintain the minimum levels
and standards of liability insurance for any period of time is
a violation of this chapter and shall be sufficient grounds for
temporary suspension or termination of a nonexclusive
franchise.
4.73.190 REQUIREMENTS FOR OPERATION OF
FRANCHISED TAXICABS.
No driver shall operate, and no owner or franchisee
shall permit operation of any taxicab under its ownership or
control, except in accordance with the following
requirements:
010 A driver shall carry a passenger to his or her destina-
tion by the most direct feasible route unless otherwise direct
ad by the fare payer.
.020 Each taxicab franchised hereunder shall display all
permits issued by OCTAP under the rules promulgated by
OCTAP.
.030 Each taxicab shall have prominently displayed in the
passenger compartment a schedule of rates and charges,
the driver's name and address, the owner's name, address
and telephone number and the taxicab identification num-
ber.
.040 A driver shall provide any passenger with a receipt
for the full fare and tip paid at the request of the passenger.
.050 A driver shall not leave his or her cab to solicit
passengers.
.060 No taxicab shall be operated unless the passenger
compartment is in a clean and sanitary condition.
.070 The name or trade name of the owner must be sten-
ciled or painted upon the outside of each taxicab in con-
formance with rules established by OCTAD.
.080 No taxicab may display advertising other than for its
own services from its roof in any manner using raised
frames, lighted panels or any other means.
.090 No driver shall operate a taxicab for more than
twelve consecutive hours nor shall any driver operate a frau
chised cab without having had, immediately preceding such
twelve hours of oppeenation, no less than eight consecutive
hours time off withiri the previous sixteen hours during
which no taxicab was operated by such driver.
.100 No taxicab shall be operated in a manner that viola-
tes the terms and conditions of the ordinance granting its
franchise or the representations made and commitments un
dertaken in the franchisee's application for its franchise.
4.73.200 TERM OF NONEXCLUSIVE FRANCHISE.
The term of any franchise ranted under the provisions
of this chapter shall be for five $) years unless earlier termi-
nated under the terms of this chapter. Any such franchise
shall extended for one (1) additional year after each of the
first five years of the term thereof by the City Council upon
request of the franchisee provided the City Council deter-
mines that the franchise has been exercised In a manner
consistent with this chapter and with the terms and condi-
tions of such franchise during such one year period. Each
annual extension shall be requested in writing by the french
see to the Director not earlier than thirty days prior to, nor
later than thirty days following the annual anniversary date
of the adoption of the ordinance approving said franchise.
Failure to request any annual extension within the time pet
ad specified shall be deemed a waiver of said annual
extension.
4.73.210 EFFECT OF CHAPTER 4.73 UPON CHAP
TER 4.79 AND OPSItATOR'S PERMITS PREVIOUS
LY ISSUED THEREUNDER.
010 The provisions of Chapter 4.72 of Title 4 of the Ana-
heim Municipal Code shaft be inaperaUve as of the date and
time this Chapter 4.73 beCCries effscilve and shall remaln
iri9l milt!w4tr n i riffi g?isbritd1A10Oovidedint
wffart exrent as ptFierwise eiipressly provided in this
in the manner required by I section.
i721�L;j�0_,: -
,an' to tnw core -
Ssued to sail fran.'r Pe C 1,-.
';rade s al �e -.,ii .
030Notwithstanoinq subsea , - -
rovisions of Chapter 4 72 shail be opera[ ve a c
xce and effect during any period the City is ,nlc Pi
trained or otherwise prohibited by any court of cornpe?reg
insdiction from enforcing the provisions of this Chapter
.73 requiring franchises for the operation of taxicabs
ig any period an operator's permit issued pursuant tc
)hapter 4.72 is in effect pursuant to any provision of this
action.
040Any operator's permit issued pursuant to Chapter
1.72, which permit is in effect on the date this Chapter 4.73
s adopted, shall be in effect, subject to compliance with al
Ipplicable requirements of Chapter 4.72 and the terms and
:ondrtions of said permit, during any period the City is an-
oined, restrained or otherwise prohibited by any court of
:ompatent jurisdiction from enforcing the provisions of this
;hapter 4.73 requiring franchises for the operation of taxi -
;abs.
.0501n the event any court of competent jurisdiction on -
era any order temporarily restraining, enjoining or prohibit-
sgg the operation of taxicabs by a franchisee pendingg final
Cdjudication in any court action challenging the validity of
raid franchise or any provision of this chapter, any
iperator's permit theretofore issued to said franchisee pur-
suant to Chapter 4.72 of this Code, which permit was in at.
act on the date the ordinance approving said franchise was
adopted, shall remain in effect during the period said court
xrder is in effect provided that said permit and all taxicab op
irations thereunder shall comply with aN applicable require-
nents of Chapter 4.72 and all terms and conditions of said
xarmit.
0601n the event any court of competent jurisdiction en -
era a final judgment declaring any franchise issued pus.
:want to this chapter to be invalid or unenforceable, or Dere
nanently enjoining the operation of taxicabs pursuant to
laid franchise, any operator's permit theretofore issued to
said franchisee pursuant to Chapter 4.72 of this Code.
winch permit was in effect on the date the ordinance approv,
ng said franchise was adopted, shall remain in effect provid
ad that said permit and all taxicab operations thereunder
•hall comply with all applicable requirements of Chapter
4.72 and all terms and conditions of said permit.
.070 Notwithstanding any other provision of this Chapter
4.73 to the contrary, any person or entity holding a valid
operator's ermit issued pursuant to Chapter 4.72 of this
Code which permit is in effect on the date of adoption of
this Chapter 4.73 (referred to herein as an "Existin Permit"
which person or entity either (i) is not awarded an Initial Taxi
cab Franchise pursuant to subsection .010 of Section
4.73.045 of this Chapter, or (ii) is awarded an Initial Taxicab
Franchise but fails or refuses to timely comply with the prow.
sions of Section 4.73.080 of this Chapter, may continue to
operate under the provisions of said Existing Permit, and
the applicable provisions of Chapter 4.72 shall continue to
apply with regard to said Existing Permit. subject to the
following:
0701 Said Existing Permit shall be exercised ani: maid
twined in compliance with all applicable provisions cf Chapp-
ter 4.72 of this Code and all terms and conditions of said Ex
isting Permit; and
.0702 The maximum number of taxicabs authorized pw
suant to said Existing Permit shall be reduced to thirty !301
vehicles effective as of midnight on May 31. 2002.. area
.0703 Said Existing Permit shall expire and terminate in
its entirety as of midnight on May 31. 2006.
.0704 Nothing contained herein shall prohibit the per-
son or entity exercising any rights under said Existing Per
mit from applying for a taxicab franchise at any time a fran-
chise app applying
period is open pursuant to subsection
.030 of Section 4.73.045 of this Chapter. Failure to apply for
or obtain a franchise during the period said Existing Permit
is in effect shall not affect said Existing Permit or the dura-
tion thereof."
Section 2. SEVERABILITY
The City Council of the City of Anaheim hereby declares
that should any section, subsection, paragraph, sentence or
word of this ordinance be declared for any reason to be in-
valid, it is the intent of the City Council that it would have
passed all other portions of this ordinance independent of
the elimination herefrom of any such portion as may be de-
clared invalid.
Section 3- SAVINGS CLAUSE
Neither the adoption of this ordinance nor the repeal or
suspension of any other ordinance of this City shall in any
manner effect the prosecution for violations of ordinances
which violations were committed prior to the effective date
hereof, nor be construed as a waiver of any license or penal
ty or the penal provisions applicable to any violation thereof.
The the
of this ordinance, insofar as they are substan
dally the same as ordinance provisions previously adopted
by the City relating to the same subject matter, shall be con
strued as restatements and continuations and not as new
enactments.
THE FOREGOING ORDINANCE is approved and adopt
ed by the City Council of the City of Anaheim this 24th day
of April, 2001.
TOM DALY
MAYOR OF THE CITY OF ANAHEIM
ATTEST:
SHERYLLSCHROEDER
CITY CLERK OF THE CITY OF ANAHEIM
Published: Anaheim Bulletin
May 3, 2001
25-566
AFFIDAVIT OF PUBLICATION
STATE OF CALIFORNIA, )
) SS.
County of Orange )
I am a citizen of the United States and a resident
of the County aforesaid; I am over the age of
eighteen years, and not a party to or interested
in the above entitled matter. I am the principal
clerk of the Anaheim Bulletin , a newspaper
that has been adjudged to be a newspaper of
general circulation by the Superior Court of the
County of Orange, State of California, on
December 28, 1951, Case No. A-21021 in and
for the City of Anaheim, County of Orange,
State of California; that the notice, of which the
annexed is a true printed copy, has been
published in each regular and entire issue of said
newspaper and not in any supplement thereof on
the following dates, to wit:
May 3, 2001
"I certify (or declare) under the penalty of
perjury under the laws of the State of California
that the foregoing is true and correct":
AN ORDINARM OF THE CITY COUNCIL OF THE CITY
OF ANAHEIM ADDING A NEW CHAPTER 4.73 TO TITLE
4 OF THE ANAHEIM MUNICIPAL CODE RELATING TO
TAXICAB FRANCHISES -
WHEREAS, reliable, safe and efficient taxir•3b service Is
necessary to facilitate the trans-. station of visitors to Ana-
heim and for transportation of those residents who do not-
d ve personal vehicles for travel within the City.of Anaheim
WHEREAS, the franchising of taxicab service within the
City of Anaheim through a competitive process will promote
the public health, safely end welfare by promoting stablltty
emong.taxicab providers and by establishing higher stand-
ards of service, safety and reliability among taxicab service
providers; and
WHEREAS, Section 1400 of Article XN of the Charter of
the City of Anaheim authorizes the City Council to gram
franchises to Persons or business entitles furnishing trans-
portation services to the Inhabitants of the City; and
WHEREAS, the City Council has received, reviewed and
considered numerous studies, reports and other materials
relating to taxicab service in the City of Anaheim including,
but not limited to: Anaheim's Current and Future Taxi Serv-
ice Needs dated September 30, 1999; Anaheim Taxicab _
Franchise Developments - Recommendations dated July
20, 2000; Selection Committee Evaluation and Recommen-
dations for Taxi Service Franchises dated March 27, 2001;
Anaheim Business Taxicab Survey Results conducted by
OCTAP and dated March 18, 1999; and A Study of the Abili-
Vty of South Coast Cab Company to Adequately Service the
Non-Resort Areas of Anahe m as of November,1997 pre-
pared by Jack Armstrong & Associates; and
WHEREAS, the City Council finds and determines that:
(A) There currently exists a need within the City for up to
three franchised taxicab providers to operate 230 taxicabs,..
which need will Increase to 260 taxicabs and four taxicab -
Providers in 2002, and that such need has been determined
based upon:
(1) The adequacy of existing service within the Clty;
(2) The Increased demand for service based upon
growth in the City, particularly in the Anaheim Resort Area;
and
(3) The need to assure prompt, safe and reliable taxi
service to the City's residents and visitors while avoiding the
adverse effects upon the taxi businesses and the public
which can result from an oversupply of taxicabs competing
for the same customers; and
(B) The City Council has heretofore issued taxicab per-
mits to three providers authorizing a total of 282 taxicabs
within the City; and -
(C) The City Council has heretofore determined that it is
in the public interest and general welfare of the City and its
residents to establish new minimum standards for the opera
tion of taxicab services in the City, to raise the quality of taxi-
cab service within the City, to replace the City's current per-
mft procedures with new procedures for the award of franch-
ises on a competitive basis, and to provide for the orderly
termination of existing taxicab permits and replacement of
such permits with franchises to be awarded by the City
Council on the basis of competitive proposals and
(D) The City Council has heretofore established new
standards for service for proposed franchisees and has pub-
licly solicited requests for competitive proposals from poten-
tial taxi providers, including each of the current permit hold-
ers in the City, for the award of up to three Initial franchises
for 230 taxicabs; and
(E) Not every existing taxicab permit holder in the City
has submitted a proposal for one of the initial franchises
and, therefore, at least one of the existing permit holders
will not be awarded an initial franchise; and
Executed at Santa Ana, Orange County, I(Fj Based upon the geographical area of the City
California On (approximately 50 square miles) and the distance from the
westerly to the easterly city limits (approximately 20 miles),
a minimum of thirty taxicabs are necessary for any taxi pro-
vider to adequately serve the needs of the entire City; and
Date: May 3, 2001
Signature
Anaheim Bulletin
625 N. Grand Ave.
Santa Ana, CA 92701
(714) 796-7000 ext. 3002
(id It Is in the public interest and general welfare of the
residdents of the City to provide for the orderly transition and
termination of the taxicab permits heretofore approved by
the City, and to provide procedures establishing a competi-
tive process for the award of taxicab franchises in the future;
and
(H) An text operator currently operating under a permit
from the City who is not awarded or does not accept an ini-
tial franchise should be allowed to continue to operate for a
reasonable period of time, even though such operation may
result in an oversupply of taxicabs at lower standards of op-
eration during such period, in order to achieve an orderly.
and reasonable transition from the current permit system to
franchises, provided such operations should be limited, as
to both number of taxicabs and duration of operation, to
minimize the oversupply of authorized taxicabs and the ad-
verse effects from such oversupply.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY
OF ANAHEIM DOES ORDAIN AS FOLLOWS;
Section t. That new Chapter 4.73 is hereby added to TI-
tie 4 of the Anaheim Municipal Code to read as follows:
.Chapter 4.73
TAXICAB FRANCHISES
-4.73.010 DEFINITIONS.
For the purposes of this chapter, certain terms used
herein are defined as follows:
.010 "City" means the City of Anaheim.
.020 "City Council" means the City Council of the City.
030"Director" means the Director of Planning of the City
or his or her authorized representative.
y .040 "Driver" means a person who operates a taxicab.
tatlon Authority."
070u "Operate" or "Operate a taxicab" mar
taxicab and either solicit or pick up passeng
city.
080 "Owner" means the registered owner
taxicab.
090"Taxicab" means a motor vehicle ope
transport passengers to speciffc destinations
passengers' choice, capable of carrying not
eight persons, excluding the driver. The tern
any vehicle operating as a charter party cart.
such by any state agency or any other vehic
valid certificate of public convenience and m
been issued by, any state agency.
4.73.020 TAXICAB FRANCHISES - PUI
DECLARATIONS. -
.0101t Is declared and determined that the
taxicabs affects the health; safety and geneu
residents of the City. The operation of taxice.
that a high level of trust and confidence by t
public be established and maintained in the
sonnet and procedures used for providing to
Such sefyices are determined toke necessa
of residents who do not drive Personal vehic
Ing the necessities of life and for the efficiem
guests and visitors about the City. Maintainr
of taxicabs In the overall transportation asset
quires that only those taxicab owners and dr
demonstrated that they possess the facilities
tams and knowledgeable personnel to prote:
of the City and the traveling public be author
taxicab service within the City. Therefore, it is
this. chapter to adopt Procedures to regulate
the community as authorized pursuant to Se,
the Charter of the City of Anaheim.
0201t is also recognized that the City is rec
and implement a mechanism to promote the
clent transportation of residents and visitors e
City may impose fees to fund the cost of this
augment the funds available for assuring the
cab service and enforcing the standards pro!
030The electors of the City, by the adoptic
of the City Charter, elected to implement the
visions of Article XI of the Constitution of the
rife as to municipal affairs and, because the c
exclusive franchises of the nature referred to -
In the class of actions designated as municip
City Council hereby declares that the provisi,
ter, together with the provisions of the Charte
shall constitute the exclusive procedure for t:
franchises for the operation of taxicabs and
any otherwise applicable provisions of this C
4.73.030 ACTIVITIES WHICH ARE UNi
LESS AUTHORIZED " ACTIVITIES NOT
Except as may otherwise be permitted ii
Is unlawful for any person to operate a taxic�
sengers for transportation In a taxicab within
the following conditions have been met:
- 010A franchise therefor has first been gre
to the provisions of this chapter and such Ira
force and effect; and
.020A written acceptance of the franchise
executed by the grantee as provided in Sect,
City Charter.
.030This chapter shall not apply to limoue.
ties displaying the identification specified in
Section 5011.5 available to members of the p
person or vehicles designed to transport mot
passengers, excluding the driver.
4.73.040 NONEXCLUSIVE FRANCHISE
AND CONDITIONS.
010 Subject to the limitations of this chapte
Council may, and is empowered to, grant by
any qualified person, firm, association, corps
ship or other entity,a nonexclusive franchise
cabs within the Cin such number as expre
In said franchise.
020AII franchises granted pursuant to this
be nonexclusive. No provisions of this chaps
deemed to requirb restricting the number of
one or any particular number. However, in tt
else of its discretion, and in accordance with
dures set forth in this chapter, the City Counc
number of franchises which may be extant.
030AII nonexclusive franchises granted he
be subject to the terms and conditions speci'
Charter, and in this chapter, and In the ordina
the franchise, and in the terms and conditions
the Request for Proposals for Providing Taxic:
and the responses provided by the franchisee
.0401n granting any franchise, the City Cow
scribe such terms and conditions, not in confl
City Charter or this chapter, as in the judgmer
Council are in the public Interest.
4.73.045 NUMBER OF TAXICABS FRAN
.010Initial Taxicab Franchises. Following th
this chapter, the City Council, by ordinance, s
more than three franchises for the operation o
within the City (the "Initial Taxicab Franchises'
ises may also provide for the occasional and I
eration of additional taxicabs by such franchis,
numbers and on such days and periods of pe,
may be expressly authorized In said franchise
020Addltional Franchises. Following the ac
nanees approving the I Kiel Taxicab Franchise
in subsection .010 above, the application peric
franchises shall be deemed closed and no fun
tions shall be accepted or processed, and no
ises shall be awarded, by the City except as hr