Proposed Ordinance Changes to allow for Transportation Network Company Operation in the City of Des Moines. Council Workshop December 8, 2014

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1 Proposed Ordinance Changes to allow for Transportation Network Company Operation in the City of Des Moines Council Workshop December 8, 2014

2 Transportation Network Company or TNC A company that enables passengers to request transportation network vehicles services only through a digital platform Uses an online-enabled application to link part-time drivers with riders Includes companies such as UBER, SideCar, and Lyft

3 Background Concerns over public safety expressed by City Council Council directed staff to draft proposed changes to the City s current ordinance to allow for regulation of TNC s City staff reviewed sample ordinances from Tulsa, Oklahoma; Washington, D.C.; Minneapolis, MN; the Commonwealth of Virginia, State of California, and the State of Colorado

4 Highlights of Des Moines Proposed Code A certificate issued by City Council is required to operate in the City of Des Moines Certificate issued annually; fee based upon number of drivers providing Transportation Network Vehicle (TNV) services per month Company must obtain both criminal and DOT background checks on any driver Company must provide insurance Vehicles identified by decal on outside of vehicle Drivers identified through digital platform

5 TNV Driver s Requirements Class D Chauffer s License Required Company must background-check any driver before they are given access to the TNC s digital platform Third party accredited by the National Association of Professional Background Screeners shall be used Requirements same as other driver license requirements Full criminal and driving record check

6 New Recommended Requirements for all Drivers: TNC, Limo, Taxi, and Paratransit Sex Offender Database Check Provision for sex offender database check for match or conviction, automatic disqualification from acting as a driver Driving while Intoxicated Clarification on driving while intoxicated, 10 years or less from conviction date cannot be a driver

7 New Recommended Requirements for all Drivers: TNC, Limo, Taxi, and Paratransit Operator Licenses no longer issued by the City All Companies will be required to perform their own background checks every other year Uniform across all company types Must use a third party accredited by the National Association of Professional Background Screeners An annual audit may be performed by City to verify that checks have been completed according to city code requirements

8 Insurance Requirements Same for All General & Automobile Liability for injury, death, and property damage for not less than $750,000 per occurrence and aggregate combined single limit Insurance must cover TNV and their drivers anytime the TNC application is open whether a passenger is in the car or not, and while en route to pick up a passenger Written notification of cancellation must be provided to the City Results in automatic termination of TNC Certificate to Operate

9 Secondary Primary From time driver accepts trip through app until completion of ride, Uber has $1 Million of coverage for driver liability, with up to $50,000/ occurrence.

10 Insurance Requirements December 31, In San Francisco, Uber Driver hits pedestrian and kills her, Gap in insurance is discovered. Had app open, but not on way to pick up fare. Uber said their insurance won t cover. Driver s personal insurance said they aren t liable either driving for commercial purpose In response to this incident, the California Public Utilities Commission re-examined its insurance requirements for TNCs. Signed new law on September 17, 2014 which institutes a number of new requirements for TNCs operating in California, all of which must be met by July 1, Des Moines Requirements modeled after these new California State Laws

11 Insurance Requirements In California: TNCs are required to provide, at minimum, $1,000,000 in coverage from the time someone is picked up until the transaction is complete or the passenger has left the vehicle, which ever one happens later. From the moment a driver logs on until the driver accepts a request for a trip, the TNCs insurance shall be primary and in the amount of at least $50,000 per person and $100,000 per occurrence of death and personal injury, as well as $30,000 of coverage for property damage. This insurance can be paid for by the driver or the TNCs insurance company. This is only one state. Elsewhere in the country, TNCs are no under no obligation to offer coverage for drivers when they don't have a passenger. Many drivers remain unaware that they may not be covered by their personal auto insurance policy.

12 TNC Rates Rates and charges must be posted on Company s Digital Platform Unlawful for Company or driver to fix, charge or collect a rate more than what is specified at time the service is requested All requests for service must be placed and accepted only through the digital platform on the internet. TNV cannot accept street hails TNVs are prohibited from using taxi stands

13 Discrimination Company and TNV drivers cannot discriminate based on age, race, religion, creed, color, sex, etc. Must comply with applicable laws on service animals Cannot impose additional fees on those with physical disabilities Cannot discriminate or show favoritism for any geographic area of the city or neighborhood

14 Airport Operation Company and TNV drivers operating at the airport shall do so in accord with rules and regulations adopted by the Des Moines Airport Authority Will not be allowed in the cab stand

15 Ordinance Violations Any person who fails to perform an act required by this ordinance or commits an act prohibited by the ordinance shall be guilty of a municipal infraction OR guilty of a misdemeanor punishable by fine or imprisonment

16 Comments Received at Stakeholder s Meeting Competition welcome, but need to provide similar insurance and background checks to ensure safety Current cab service is lacking: late arrivals, no shows, dirty cars, poor customer service TNC s allow for more convenience and have shown a reduction in DUI s in other cities by providing more transportation options Des Moines Neighbors and East Village Board of Directors both spoke in favor of allowing TNC s in the city Need to embrace new technology and modern concepts to keep moving Des Moines forward Current regulations restrict competition. Don t need more management, consider de-regulation all together