TO:
Honorable Mayor and Members of the City Council
THROUGH:
Mark Danaj, City Manager
FROM:
Bruce Moe, Finance Director
Steve Charelian, Revenue Services Manager
SUBJECT:Title
Authorization to Negotiate New Five Year Taxicab Franchise Agreements (Finance Director Moe).
APPROVE
Line
_________________________________________________________
Recommended Action
RECOMMENDATION:
Staff recommends that City Council authorize staff to negotiation new five year taxicab franchise agreements with the existing franchisees: South Bay Yellow, Bell Cab, United Independent, and All Yellow.
FISCAL IMPLICATIONS:
The City's current taxicab franchisees operate 165 taxicabs generating revenues of $148,170 for the current year ($898.00 per taxicab). Franchise fees are adjusted annually by the U.S. Department of Labor Consumer Price Index (CPI).
BACKGROUND:
In 1998, the City instituted a franchise system in an effort to limit the number of taxicabs operating in Manhattan Beach. This was in response to concerns for public safety and welfare due to an excessive number of taxi cabs trolling the streets in search of fares, often operating in an unsafe manner.
In addition to placing limits on the number of cabs, the franchise system enabled the City to better control the manner and condition under which taxi service is provided. For example, the City has established certain standards for vehicles (age, fuel economy) and drivers (appearance) previously unattainable without the contractual franchise agreements. The franchise agreements allow authorized companies (and a limited number of vehicles) to pick-up fares within City limits. Non franchised cabs may only drop off fares initiated outside of the City; they cannot pick-up fares in Manhattan Beach.
In 1998, in order to select the initial franchise taxi cab companies, the City solicited proposals through a Request for Proposal (RFP) process. In February 1999, the City Council awarded franchises to tw...
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