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Published On: 4/23/15

City Council Amends Taxi Ordinance To Cover Uber

By: Joanne Shriner via Maryland Coast Dispatch

OCEAN CITY – The town is looking to recently passed state regulations to ease concerns when it comes to Uber and similar companies in Ocean City.

For several months, amendments to the town’s ordinance regarding taxicab regulations have been before the Police Commission prior to being forwarded to the Mayor and City Council for final approval. Additionally, discussions have been held on if the car service Uber comes to Ocean City and how the town can regulate it to where it won’t affect the local taxicab industry.

Ocean City’s taxicab law allows for a total of 175 taxicab medallions in the city limits — up to 85 percent issued to fleet holders and up to 15 percent issued to independent holders. Currently, all medallions are owned by holders and fleets and are sold between them. Most recently a medallion sold for over $7,000.

The ordinance requires medallion holders to have their vehicles inspected annually, operate by meter, proof of insurance, hold a business license and drivers must obtain a permit as well as are subject to background checks and drug tests.

Uber, a smart-phone enabled car service, has hit the streets in over 200 cities nationwide. A smart-phone app links a passenger to an Uber driver. The app provides many user-friendly features including fare estimations and the option to share a fare but since the company’s inception in 2009, Uber has met resistance from local, state and national governments usually backed by a frustrated taxi industry.

When discussions first began in February, City Solicitor Guy Ayres explained Uber had gone unregulated for years and was in the process of working with the Maryland Public Service Commission (PSC) in becoming regulated due to frustrations that arose among the Baltimore taxi industry.

With the talk of Uber moving to the forefront, The Dispatch reached out to the company questioning its arrival in Ocean City. At that time, Uber representative Kaitlin Durkosh reported the company currently does not have any immediate plans to expand to Ocean City.

The ordinance before the Mayor and City Council on Monday evening listed a number changes to the taxicab regulations, including a $50 replacement fee for a lost or stolen medallion, verbiage making it unlawful to charge a cleaning fee to a passenger in excess of $150, changing the annual taxicab inspection decal expiration date from March 31 of each year to April 30 and instituting a fee structure for vehicles inspected after April 30, assessing a fee of $7.50 if the owner fails to timely notify the taxi driver of a drug screening request and, if not paid, the owner’s medallion shall not be renewed.

It also adds provisions for voluntary deactivation and reactivation of taxi driver licenses if driver is unavailable for random drug testing for more than two weeks and a provision for suspension or revocation of taxi drivers permit if the Chief of Police determines a violation constitutes a hazard to public safety as well as adds suspension and revocation measures based on conviction of felony or other offenses and outlines an appeal process.

In addition, language will be added under “Transportation Network Services,” referencing the assessment of a 25-cent fee for each trip generated by a Network Service company commencing on July 1, as outlined in the Annotated Code of Maryland, Public Utilities Article.

“A transportation network service you may probably know goes by the popular name of Uber. This would appeal to those type of vehicle for hire that the Public Utilities will be regulating, and they regulate them as limousines,” Solicitor Guy Ayres said.

The General Assembly approved this year legislation giving Uber and other app-based car services permanent legal status in Maryland. The bill, which is now heading to governor for approval, creates a separate “transportation network services” category for Uber and similar services, so that they would not be classified under the state’s definition of “common carriers” like taxis and limo services.

Uber would have to register with the PSC, conduct background checks on drivers, and maintain at least $1 million in liability insurance, which is similar to what the Town of Ocean City already requires of local cabs.

“I expected the place [council chambers] to be packed with our medallion holders, and expecting to hear comments from them over what is happening. Not seeing them here and not getting their input sends a message,” Councilman Wayne Hartman said

Councilman Doug Cymek, who serves as the chair of the Police Commission, said he recently had a lengthy discussion with George Basle, owner of Taxi Taxi in Ocean City, who is familiar with the legislature regarding Uber.

“After talking through, it he has confidence in our system, and wants to move ahead with the changes,” Cymek said. “Most people don’t believe Uber is going to be a force to be reckoned with. They will find this is a market that is not as lucrative as Baltimore or Washington [D.C.].”

The council voted 6-0, with Council President Lloyd Martin absent, to approve the ordinance on first reading.

 

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