§ 9-27. Franchises generally.

(a)

Required. It shall be unlawful for any person to operate a taxicab service within the city without having first secured a franchise therefor from the city council by resolution of the council.

(b)

Application; contents. Any person desiring to obtain a franchise to operate a taxicab business in the city shall file a written, verified application directed to the city council with the city secretary, setting forth full and complete information on the following matters:

(1)

The full name and permanent residence and mailing address of the applicant. If a partnership, then such information shall be given on all partners and persons having an interest in the business; if a corporation, then such information shall be given on all stockholders and persons having an interest in the business;

(2)

The sex, age and name of all persons having an interest in the franchise;

(3)

A financial statement of the applicant;

(4)

A complete statement of the assets going into the taxicab business for which the application is being made together with full information on liabilities existing against such assets;

(5)

The address and description of the contemplated headquarters of the taxicab company;

(6)

The trade name of the taxicab operation in this city;

(7)

The color scheme of the taxicabs;

(8)

A description and the number of all taxicabs to be put into operation. The name, make and model must be given and ownership of the units given. If units are leased, then that fact must be stated;

(9)

A description of the insurance coverage to be carried together with the name and address of the agent and company;

(10)

An experience record of the applicant;

(11)

Whether the applicant operates or has an interest in any taxicab business anywhere other than in this city;

(12)

Such additional factual information as may be required under authority of the city manager to afford complete information to the city council when presented to it in considering the application.

(c)

Hearing. The city secretary shall call to the attention of the city council that an application for a franchise under this section has been filed, whereupon the city council shall set a date for a hearing on such application for a franchise. Upon the setting of such date for a hearing, the city secretary shall give notice to existing franchise holders of licenses to operate taxicab businesses within the city, by ordinary mail, at least ten (10) days prior to such hearing, the date of such hearing and the name of the applicant. The new application for a franchise for a taxicab business shall be open to the public including existing franchise holders who may inspect the same in the office of the city secretary. All existing holders of taxicab franchises shall be permitted to appear and present any objections which they may deem relevant and proper at such hearing before the city council.

(d)

Determination of public convenience and necessity. Before any franchise is granted under this section, the applicant therefor must present proof of need for the franchise, such proof to be based on public convenience and necessity. In all instances the city council shall hear and determine such matter in view of the public need for such additional taxicab service.

(e)

Liability insurance. Insurance requirements for franchise holders shall be as follows:

(1)

As a condition to the issuance and grant of a franchise under the provisions of this article, the franchise applicant shall carry and maintain in force at all times during the term of the franchise liability insurance with a financially stable insurance company authorized to do business in the state acceptable to the city. Such liability insurance shall be for at least the minimum limit required by the state under its safety responsibility law, as the same shall be from time to time amended.

(2)

The insurance policy required by subsection (a), with riders attached, shall be filed in the office of the city secretary and the coverage afforded by such policy shall be subject to approval by the city attorney. If there is any question as to the solvency of the insurance company writing such insurance, then the city council reserves the right to require such coverage to be written by a more financially stable company.

(3)

The franchise holder shall be responsible for and shall file with the insurance policy that notice in writing shall be given the city of its intention to cancel such insurance coverage, and shall be signed by a duly authorized agent or representative of such company.

(4)

The franchise holder shall be fully responsible for maintaining the insurance required by this subsection regardless of whether the city has been notified of cancellation of its insurance. The city shall never be deemed to have assumed any liability by reason of a failure or bankruptcy of a company or by reason of the failure of the franchise holder to keep in force such insurance requirements. Failure to comply with the requirements of this subsection with regard to insurance may authorize the city council, in its discretion, to revoke the franchise.

(f)

Grant or refusal. The application for a franchise under this section shall be acted on by the city council at a regular meeting thereof. If rejected by the city council, such determination by the city council shall be final.

(g)

Regulation of streets. The city council, in granting franchises under this section to operators of taxicabs, fully retains and reserves all its rights, privileges and immunities that it now has under law to fully regulate the use of, and to patrol and police the streets, lanes, alleys and public ways of the city.

(h)

Term; renewal. The franchise required by this section shall be issued for a period of five (5) years and renewable thereafter upon request of the franchise holder and approval of the city council.

(i)

Suspension, revocation or cancellation. The city council may, upon recommendation of the city manager and after notice to the operator and a hearing by the city council, for wilful, continued or flagrant violation of this article, suspend, revoke or cancel any franchise granted under this section. The city council shall have the right to revoke any franchise granted under this section for misrepresentation of facts given in the application or for inability or refusal to provide the public with the twenty-four-hour taxicab service contemplated by the franchise. Ten (10) days' written notice to the franchise holder shall be given of a hearing before the city council on the question of revocation of the franchise.

(Code 1970, §§ 33-22—33-30)

Cross reference

Streets and sidewalks, Ch. 17.