MEETING DATE:
JUNE 26, 2018
SUBJECT:
Title
ORDINANCE NO. 2018-1466 - AMENDING SECTION 5.48.040 OF THE SAN MARCOS MUNICIPAL CODE RELATING TO TAXICAB INSURANCE
Body
Recommendation
Recommendation
APPROVE first reading of an ordinance amending Section 5.48.040 of the San Marcos Municipal Code relating to taxicab insurance.
Body
Board or Commission Action
Not applicable
Relevant Council Strategic Theme
Not applicable
Relevant Department Goal
Not applicable
Executive Summary
The City of San Marcos regulates taxicab companies operating within the city limits. Currently, only one provider, North County Transportation Services (dba "Yellow Cab") serves San Marcos. Within the last few months, several local agencies have reduced the automobile liability insurance limits for taxicab companies from $1 million to $350,000 combined single limit. The purpose of the reduction is to help taxis better compete with app-based ride-hailing companies.
Discussion
The taxicab market has undergone significant changes in the last few years and it has faced increased competition from companies like Uber and Lyft. As a result of a recent state law, drivers for those ride-hailing companies are only required to maintain the California minimum for personal insurance coverage when their app is turned off, and must only cover low-level commercial insurance ($50,000/$100,000/$30,000) when the app is turned on.
The City of San Marcos increased the automobile liability insurance limits for taxis in 2009 to $1 million in part to stay consistent with surrounding communities. Beginning this year, a large number of area communities have reduced taxis' automobile liability insurance levels to $350,000 including: San Diego County (unincorporated areas), Vista, Escondido, Oceanside, and the San Diego Metropolitan Transit System that regulates taxis for the cities of El Cajon, Imperial Beach, Lemon Grove, National City, Poway, San Diego, and Santee.
To maintain consistency with...
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