The Vancouver City Council was divided Monday about how far the city should go in deregulating the taxicab industry.
Mayor Tim Leavitt and Councilors Jack Burkman and Larry Smith appeared to favor getting the city out of the taxi regulation business. Councilors Alishia Topper, Anne McEnerny-Ogle, Bart Hansen and Bill Turlay expressed reservations about going that far. They said they’d like to partially deregulate the industry to level the playing field for transportation network companies and traditional taxi companies, but keep some rules in place for safety.
Rules could include requiring driver background and vehicle safety checks, and adequate insurance; businesses and drivers would sign affidavits saying they are in compliance. Fines could be as high as $1,000 a driver or $10,000 a company.
Burkman said having a code the city doesn’t regularly enforce gives a false sense of safety.
No action was taken Monday, the second time the council has discussed the taxi code since Uber started operating illegally in the summer. City Manager Eric Holmes said Monday that based on feedback the staff would draft a new proposal for council consideration.
The current code regulates metered vehicles for hire that have a uniform look and operate out of a central business location. Uber’s smartphone-based ride service uses a network of drivers who use their personal vehicles and flat fees. Assistant Vancouver Attorney Brent Boger said no matter what Uber calls itself, it’s a taxi service and should be subject to any city taxi code.
The city leaves it to the state to license flat-rate driving services such as limousines. Three taxicab companies operate in the city, which regulates the market and sets rates. Companies pay a fee every other year, and each driver must be licensed by the city.
A staff position for the program was eliminated in 2010 due to budget cuts. The program was turned over to the city’s finance department. Vancouver Chief Financial Officer Lloyd Tyler said it costs about $30,000 annually to administer, and ideally the city would recover 25 percent of that through fees, but that goal hasn’t been met.
No enforcement action has been taken against Uber, which has been told it is operating illegally. Tyler said enforcing the city’s taxi ordinance isn’t a priority for the police department.
Cities have taken different approaches to transportation network companies, which include Lyft and Sidecar. Seattle, Tacoma and Spokane allow Uber; Portland doesn’t.
