Austin Ride Services Fact Sheet

[Ann Kitchen]

AUSTIN RIDE SERVICES FACT SHEET

Austin currently has multiple transportation options for our community: taxicabs, TNC (Transportation Network Companies), limos, charters, pedicabs, shuttles, and even horse-drawn carriages. All of these ground transportation companies have regulatory requirements and the city is directed by Ordinance to implement and apply these fairly and equitably between all of the companies.

It’s important to understand the history of TNC’s in Austin as our new Council works to complete the process started by previous Councils:

On October 16, 2014 the Transportation Network Companies Ordinance (Ordinance # 20141016-038) was adopted by the previous Council and directed the City Manager to enter into agreements with TNC’s. Below are several provisions of the 2014 Ordinance:

• Part 1(I) of the Ordinance states “TNC’s like any for-hire transportation alternative, must be regulated to protect the safety of their drivers, riders, and the general public.”

• The current Council’s responsibility is addressed in Part 7 which says “The effects of this ordinance will be reviewed no later than six months after the date of passage, at which time the City Council may, in its sole discretion, repeal or amend the ordinance.” Based on that requirement from the existing Ordinance, the City Manager and current Council should have reviewed the effects of the ordinance by April 16, 2016. That is exactly what the Council is doing now and the review process has been initiated in the Mobility Council Committee.

• Part 13 of the 2014 TNC Ordinance states “The City Manager is directed to seek equity in the treatment of taxis, TNC’s and other vehicles for hire with regard to fares charged, dynamic pricing, fleet size, accessibility, insurance, vehicle safety, and driver background among other relevant factors.” This says to me very clearly that there was never any intention for the TNC’s to be treated in any other way than in a manner that was equal to the treatment of other vehicles for hire in the City of Austin.

• Part 3, Section 23 requires the new Council to set a fee by separate ordinance: “A fee will be imposed on all approved TNCs to facilitate the City’s administration and enforcement of agreements made under this ordinance. This fee will be set by separate ordinance.”

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MOTIONS RECOMMENDED BY MOBILITY COMMITTEE TO CITY COUNCIL:

PERMIT FEES: Taxicabs ($450), Limos ($350-$400), Charters ($350-$400), Pedicabs ($250), Shuttles($350-$400), Horse-drawn carriages ($250) must all pay permit fees. Currently TNC’s do not pay any permit fees.

The Mobility Committee first recommendation forwarded to Council is:

Amend City Code to address fee equity and cost of service:

The City Manager is directed to initiate an amendment to City code Chapter 13-2 to establish a fee for Transportation Network Companies (TNC’s) with the following provisions and to bring back to the Mobility Committee for recommendation to Council no later than November 16, 2015:

Each TNC operating in the City of Austin shall pay an annual fee that is either of the following at the option of the TNC:

1) The total of the permit fee paid by taxicab companies times the number of persons driving for the TNC; OR

2) 1 percent of the TNCs annual local gross revenues

In the alternative, TNCs with a total number of drivers that is less than the number of taxicab permits for the smallest taxicab company may elect to pay a fee according to a graduated per driver fee schedule determined by the Transportation Department that is less than the permit fee paid by taxicab companies.

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DRIVER BACKGROUND CHECKS:

Drivers of Taxicabs, Limos, Charters, and other ground transportation must all submit to background checks including fingerprinting overseen by the City of Austin Transportation Department. Currently TNC’s do not.

The Mobility Committee second recommendation forwarded to Council is:

Amend City Code to address public safety:

The City Manager is directed to initiate an amendment to City code Chapter 13-2 to establish a fee for Transportation Network Companies (TNC’s) with the following provisions and to bring back to the Mobility Committee for recommendation to Council no later than November 16, 2015:

• Align the background check process for TNC drivers with the process for taxis so that the check is conducted nationwide for both types of drivers. Amend the taxi ordinance if necessary to allow for a nationwide process.

• Align the driver eligibility standards for TNCs with that for taxis so that a history of certain offenses is treated the same with regard to eligibility to drive.

• Add a fingerprinting requirement for TNC drivers that collect the same fingerprint information for TNCs as is collected for taxis and other ground transportation drivers.

• Authorize the Austin Transportation Department to contract with a third party to manage the fingerprinting and background check process for ground transportation processes so that the process is completed quickly and does not create barriers for onboarding drivers.