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HomeMy WebLinkAboutAdmin Order 53-18-09-FADMINISTRATIVE ORDER NO. 53-18-09-F of the City Manager of the City of Eugene AMENDMENT OF THE PUBLIC PASSENGER VEHICLE FEE SCHEDULE AND REPEAL OF ADMINISTRATIVE ORDER NO. 53-13- 07-F. The City Manager of the City of Eugene finds as follows: A. Section 2.020 of the Eugene Code, 1971, authorizes the City Manager of the City of Eugene to determine and set fees and charges to be imposed by the City for services, goods, use of municipal property, and licenses and permits. B. In accordance with the procedures of Section 2.020 of the Eugene Code, 1971, on June 20, 2013, Administrative Order No. 53-13-07-F was issued adopting an amended Public Passenger Vehicle Fee Schedule ("the Fee Schedule"), as set forth in Exhibit A attached to that Administrative Order. C. On June 26, 2018, 1 issued Administrative Order No. 53-1.8-09 ordering that notice be given advising the public of the opportunity to submit comments on my proposal to amend the Fee Schedule. D. Notice of the proposed amendments was posted at two locations at City Hall on June 26, 2018, was provided to the Mayor and City Councilors and to persons who requested such notice, and was made available for review at the Planning & Development Department, Building & Permit Services Division, 99 West 10th Avenue, Eugene, Oregon. Notice of the fee proposed to be over $250 was published in the Register Guard. Newspaper on June 29, 2018. The Notices specified that comments would be received for 15 days from the date of posting and publication. E. After investigating the revenue needs of the City in providing permitting services for transportation network companies using criteria in Section 2.020(2) of the Eugene Code, 1971, and after considering the comments submitted as documented in Exhibit A attached to this Order, I find that the proposed Public Passenger Vehicle Fee Schedule should be adopted with changes made in response to the public comments submitted. BASED UPON the above findings and the findings in Administrative Order No. 53- 18-09, I order that: L The Public Passenger Vehicle Fee Schedule attached as Exhibit B to this Order is the schedule of fees to be charged for the described services as of the effective date of this Order. Administrative Order - Page 1 of 2 Order. 2. Administrative Order No. 53-13-07-F is repealed as of the effective date of this Dated and effective this ISTday of July, 2018. Jon R. Ruiz City Manager � Administrative Order - Page 2 off 2 City Manager Findings in Consideration of Written Submissions During the fifteen -day comment period, the City received 5 written comments regarding the proposed amendments to the Public Passenger Vehicle Fee Schedule ("proposed Fee amendments"). A summary of the continents received, and findings addressing the comments, are set out below: 1. Four comments voicing concern about the proposed $10,000 TNC license fee, stating that the fee is too high. These commenters want the proposed $10,000 TNC license fee lowered. One comment states that the fee is too high and, therefore, favors the large/established TNCs and that it will discourage entrepreneurship and will create monopolies. Two comments state that a $10,000 TNC license fee will serve as a roadblock and believe that $1,000 is more reasonable. The fourth comment states that the proposed TNC license fee is significantly higher than the rate of similar sized cities in Oregon. Findings. As a result of these comments, the adopted TNC license fee is $8,000 per year and, to mitigate potential inequities, the current $100 per vehicle permit fee is capped at $8,000 per year per company. The addition of the TNC license fee addresses the administrative rule change to the vehicle permitting requirements. Prior to the Public Passenger Vehicle Rule amendments adopted today by Adnan Order No. 53-18-08-F, all vehicles -for -hire (both hailable and non -bailable) were required to have a City -issued public passenger vehicle permit. The fee schedule was based upon the prior rules, i.e., both hailable and non-hailable vehicles -for -hire were required to have a vehicle permit that cost $100 per permit. That meant, for example, a public passenger vehicle company with a fleet of 85 hailable vehicles paid $8,500 in annual vehicle permitting fees. Similarly, under the fee schedule proposed to be amended, a public passenger vehicle company (such as a TNC) with 200 non-hailable vehicles would have paid $20,000 in annual vehicle permitting fees. Pursuant to the amended Public Passenger Vehicle Rules adopted today, only hailable vehicles -for -hire are required to have a City -issued public passenger vehicle permit. Thus, unless the fee schedule is amended, a public passenger vehicle company with 85 hailable vehicles will continue to pay $8,500 in annual vehicle permitting fees, but a public passenger vehicle company (such as a TNC) with 200 non-hailable vehicles would pay $0. The addition of a TNC licensing fee mitigates the fee inequity between traditional taxi companies (that must obtain vehicle permits at $100/vehicle) and TNCs (that are not required to obtain vehicle permits). 2. Comment stating that proposed $0.20 per -trip fee should not be adopted because it unfairly burdens traditional taxi companies. A taxi company submitted a comment stating that the per -trip fee creates additional administrative costs for, and unfairly burdens, traditional taxi drivers because taxi drivers, unlike TNC drivers, accept cash. The commenter also states that TNCs entry into the City's PPV market should not increase costs to taxi companies that have been operating in the City for many years and annually paying the application, license, Exhibit A to Administrative Order 53-18-09-F Findings in Consideration of Written Submissions - Page 1 of 2 vehicle permit, and driver certification fees, which amount to thousands of dollars in annual fees. If the City adopts a per -trip fee, the commenter urges that the City apply it to TNCs, not taxis. Findings. As a result of this comment, and for other reasons, the $0.20 per -trip fee is not adopted as part of this fee amendment. The City Council has specifically identified the need to increase the availability of accessible vehicles and, in recognition of this need, authorized the City Manager to adopt a per - trip fee that, among other purposes, could be used to increase that availability. While the need for more accessible vehicles exists, the City has not yet determined how best to fill that accessible vehicle need. Until that determination is made, it is premature to begin collecting a per -trip fee to increase the availability of accessible vehicles. In addition to increasing availability to accessible vehicles, EC 3.345(9) states that the "purpose of the per -trip fee is to cover program. costs required to adequately administer this Section 3.345 and the administrative rules adopted thereunder, increase the availability of accessible vehicles, and any other purpose related to public passenger vehicle services specifically identified by the city manager in the notice of proposed fee." If TNCs choose to enter the City marketplace, there will be an increase, potentially a substantial increase, in the costs to administer the City's PPV program. How much program costs will increase beyond the costs covered by the TNC license and driver permit fees is not yet entirely known. Until the increase in program costs is more fully understood, it is premature to begin collecting a per -trip fee to cover the increased costs and, if a per -trip fee is needed to cover increased costs, there needs to be further analysis of how that should be implemented. Over the next 6 to 12 months the City intends to explore options and partnerships for increasing the availability of accessible vehicles. Also over the next 6 to 12 months the City will be evaluating the amount of City staff time and resources necessary to administer the PPV program, should TNCs choose to enter the market. Based on this analysis the City will reevaluate the need for a per -trip fee, the amount of any needed per -trip fee, and who should be required to pay the fee. 3. Comment statim that the proposed $0.20 per -trip fee should not be adopted because it is inconsistent with other Oregon cities. One comment, submitted by a TNC, stated that the City's per -trip fee was inconsistent with Salem, Bend, and Medford fee structures and would be the only revemie-raising per -trip fee in Oregon. Findings. While no changes are being made to the proposed Fee amendments as a result of this comment, see discussion above regarding removal of $0.20 per -trip fee from the fee schedule. Exhibit A to Administrative Order 53-18-09-F Findings in Consideration of Written Submissions - Page 2 of 2 PUBI wIC PASSENGER VEHICLE LICENSE, CERTIFICATION ANI) PERMIT FEES (FTfCCtjVe JUIV I"' _ 2018) 1. Public Passenger Vehicle (motorized) and Pedal Vehicles: Company_ �Busincss License(nop-TNIC): Application Fee, new or renewal (submitted with application) License Fee, new or renewal (paid upon application approval) Vehicle Permit: *Cqj-)j)edui S8,000per-year per con7j)anli, Transportation Network Coinpanv License: Application Fee, new or renewal (submitted with application) License Fee, new or renewal (paid Upon application approval) Driver Certification: Application Fee (submitted with application) Certification Fee (paid at time of issuance) Renewal Fee for Valid Certification (submitted with renewal application) Certification Reinstatement (after suspension) Duplicate Certification Card 2. Horse -Drawn Carriages: Application Fee (submitted with application) License Fee (paid Upon approval) Rl-ht-of-Way Route Permit (f6r specified times)* zn - `*Yhis is a Public Works Depannienifte and is sltibIecl to Change by Mar Dcpaj,tnient. 3. Pedicabs: Application Fee (submitted with application) License Fee (paid Upon approval) Vehicle Permit 4. Limousines: Annual Registration Fee Z*1 General Fees (applicable to all licensees License Reinstatement Following: Suspension Add Principal Public Passenger Vehicle Fee Schedule - Page I of I F xliibit.B to Administrative Order No. 53-18-09-F Fees $100.00 $300.00 $ 100.00* $100.00 $8,000.00 $45.00 $20.00 $45.00 $25.00 $25.00 `x25.00 $150.00 $ 5.00* $25.00 $150.00 $50.00 $40.00 550.00 $150.00