§ 5-6-2. Operating certificates.  


Latest version.
  • (A)

    Operating certificate required. It shall be unlawful for any person to knowingly operate a taxicab, limousine, or motorbus service, or permit such operation within the City without having first obtained an operating certificate required by this chapter.

    (B)

    Grant of operating certificate. No operating certificate shall be granted except when the same shall be authorized by resolution passed by the Council after compliance by the applicant with the provisions of this chapter; provided, that no operating certificate shall ever be granted unless the Council finds a public necessity exists for the service and that the applicant is, in the opinion of the Council, capable of rendering such service. No application shall be considered by the City Council until it has been on file with the City Secretary at least 15 days prior to the City Council meeting at which it is to be considered.

    (C)

    Application for operating certificate. Any person who is desiring to obtain an operating certificate to operate a taxicab business, limousine, or motorbus service in the City shall file a written, verified application directed to the Council with the city secretary, with a copy to the Chief of Police, 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, the name and location of its principal place of business, the name and address of all the officers, directors and all stockholders in the corporation;

    2.

    The current occupation of all persons having an interest in the taxicab business;

    3.

    A financial statement of applicant. The same shall be furnished on each partner and if a corporation, the same shall reflect the financial status of the corporation;

    4.

    A complete statement of the assets going into the taxicab business, limousine service, or motorbus service, 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, limousine service, or motorbus service, and the location and description of other taxicab stands to be put into operation;

    6.

    The trade name of the taxicab operation, limousine service, or motorbus service;

    7.

    Corporate applicants must supply a copy of their corporate charter or a copy of the corporation's certificate from the Texas Secretary of State indicating the corporations authority to conduct business in the state;

    8.

    An experience record of applicant related to operation of a taxicab or other commercial transportation;

    9.

    Whether applicant operates or has an interest in any taxicab business, limousine service, or motorbus service anywhere other than Midland and complete information concerning the same;

    10.

    Previous arrests and/or convictions for misdemeanor or felony offenses, including the nature of the offense, the date of arrest, and the jurisdiction in which the arrest occurred;

    11.

    All information which is required of an applicant for a city chauffeur's license pursuant to Subsection 5-6-5(D), whether or not the applicant for the operating certificate intends to drive a taxicab, limousine, or motorbus;

    12.

    The applicant shall submit a plan outlining the applicant's program for the random testing of its employees to determine if any of the employees are using illegal drugs. The plan must include, at a minimum, that 50 percent of the employees of the applicant and that 50 percent of the contract drivers be tested at least once each year. The cost of this program shall be the total responsibility of the applicant. Proof of compliance of this section shall be submitted to the City on an annual basis;

    13.

    Such additional factual information as may be required under authority of the City Manager to afford complete information to the Council when presented to them in considering the application;

    14.

    Limousine services, or motorbus services describe in particular the type of service, service area, and any other pertinent information on the proposed business, such information being complete enough for the Council to make a determination on whether to issue an operating certificate or deny the issuance of the operating certificate.

    (D)

    Grant or rejection of operating certificate application: Such application shall be acted on by the Council at a regular meeting thereof. If rejected by the Council, such determination by the Council shall be final.

    (E)

    Revocation of operating certificate: The Council shall have the right to revoke any operating certificate for:

    1.

    Misrepresentation of facts given in the application;

    2.

    For violation of provisions of this Code or state or federal laws by the holder of the operating certificate;

    3.

    For violation of any provisions of this chapter or state or federal law by any person holding a city chauffeur's license and operating a vehicle under the operating certificate of another;

    4.

    For knowingly or recklessly allowing vehicles operating under the person's operating certificate to be used in the transportation of people before, during or after the commission of a violation of a local, state, or federal law, ordinance, or regulation; or

    5.

    For knowingly or recklessly allowing vehicles operating under the person's operating certificate to be used in the transportation of goods, supplies, equipment, or other personal property for which the person does not have a required local, state, or federal license to transport or which is otherwise unlawful to transport.

    Written notice to the holder of an operating certificate which is subject to revocation shall be given of a hearing before the Council on the question of revocation of his operating certificate not later than ten days prior to the hearing by the City Council.

    (F)

    Insurance requirements: At the time of application and at all times during the term of the operating certificate, the holder of the operating certificate shall carry and maintain in force automobile liability insurance which meets the following minimum requirements:

    1.

    The policy is written by a financially stable insurance company authorized to do business in the state and which is acceptable to the City. Such policies of insurance shall be issued by a company authorized to do business in the state that is in good standing which means that there is no order by the commission of insurance that the company is in a hazardous financial condition as described by Article 1.32, Insurance Code or an order placing the company in a state of supervision, conservation or ancillary conservation under Article 21.28-A, Insurance Code. The insurance must include a cancellation rider under which the insurance company is required to notify the city secretary in writing not fewer than 30 days before canceling the insurance policy and not fewer than 30 days before the insurance policy is due for renewal of the company's intention to renew or not renew the policy. If there is any question as to the solvency of the insurance company writing that insurance, then the Council or City Manager reserves the right to require that coverage to be written by a more financially stable company;

    2.

    The coverage shall be:

    (a)

    Not be less than $20,000.00 for bodily injury or death in any one accident;

    (b)

    Not less than $40,000.00 because of injury or death of two or more persons in any one accident;

    (c)

    Not less than $15,000.00 for property damage;

    (d)

    Not less than $2,000.00 for personal injury protection for passengers;

    (e)

    Include uninsured motorists coverage in the same amounts as required for liability coverage;

    3.

    A certificate of insurance indicating compliance with this subsection shall be filed with the city secretary at the time of application for the operating certificate;

    4.

    The operating certificate holder shall be responsible for and shall file with the city secretary written assurance from the insurance company on the policy mentioned above that notice in writing shall be given to the City of its intention to cancel the insurance coverage not later than 30 days prior to the proposed cancellation date, and shall be signed by a duly authorized agent or representative of that insurance company;

    5.

    The operating certificate holder shall be fully responsible for maintaining the insurance required by this chapter and section regardless of whether the City has been notified of cancellation of the insurance, and 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 these insurance requirements. The operating certificate holder must provide proof that the minimum insurance requirements set forth in [Subsection] 5-6-2(F)2 are being met at all times by providing the city secretary with appropriate certificates of insurance. Failure to comply with the requirements of this chapter in regard to insurance may authorize the Council, in its discretion, to revoke the operating certificate.

    (G)

    Annual fee:

    1.

    Not later than January 31 of each calendar year, every holder of an operating certificate shall pay to the City an annual fee of $200.00 for each taxicab which operates under that holder's operating certificate; provided that said annual fee shall not exceed a total amount of $1,500.00, regardless of the number of taxicabs that operate under that holder's operating certificate. However, a holder of an operating certificate for limousine service or motorbus shall pay to the City an annual fee of $100.00 for each limousine vehicle which operates under that holder's operating certificate; provided that said annual fee shall not exceed a total amount of $1,500.00, regardless of the number of limousines or motorbuses that operate under that holder's operating certificate. At the time of payment of that fee, the operating certificate holder shall identify the particular vehicle to which the fee applies by license plate number and vehicle identification number;

    2.

    If any holder of an operating certificate shall fail to pay the annual fee within 15 days after the date the same becomes due, the privilege of the holder of the operating certificate to operate, or to allow to operate, that particular vehicle in the City shall be deemed suspended until such fees are paid;

    3.

    No fees shall be refunded for taxicabs, limousines, or motorbuses removed from service during the calendar year; provided, however, the annual fee may be transferred from one vehicle to another vehicle operated under the same operating certificate during the calendar year if:

    (a)

    The vehicle for which the fee was originally paid has been removed from service as the result of mechanical failure or damage from an accident which is not repaired or for non-compliance with Subsection 5-6-3(B), and said vehicle is not placed back in service during the year for which the permit fee was paid by any person holding an operating certificate under this chapter; or

    (b)

    The vehicle for which the fee was originally paid has been sold and not placed back in service as a taxicab, limousine or motorbus, during the year for which the permit fee was paid; provided, however, a copy of documents evidencing the transfer of title and proof that all taxicab markings, equipment, and permit stickers have been removed from the vehicle sold must be presented at the time of request for transfer of the permit fee. Such permit sticker shall be returned to Midland Police Department.

    4.

    If the holder of an operating certificate desires to add an additional vehicle during the year, he may pay a prorata fee based on the number of whole and partial months that exist from the date of payment and the next subsequent January 31 that the vehicle will be in service.

    (H)

    In order to maintain an operating certificate for a taxicab service, a company must comply with the following regulations:

    1.

    Maintain an office within Midland or Ector county, staffed by company agents or employees for an eight-hour period between the hours of 7:00 a.m. and 7:00 p.m., Monday through Friday, five days per week, where records required by this chapter are kept and where vehicles may be inspected and, have a dispatch, or direct phone line, and taxicab service which provides continuous service 24 hours, seven days per week;

    2.

    Submit to the City a copy of a current lease, if applicable, for the company premises, or an affidavit as to ownership and occupancy;

    3.

    Maintain a publicly listed telephone number;

    4.

    Maintain the name and home address of each driver affiliated with the company, along with the name of the person who owns or leases the vehicle operated by the driver;

    5.

    Maintain a log listing the year, make, and model, vehicle identification number (serial number) of each vehicle for hire operating in the company fleet;

    6.

    Maintain sufficient employees or answering devices at the office to answer its telephone after hours of company operation;

    7.

    Provide each driver with a copy of this chapter;

    8.

    Maintain at least one off-street parking lot capable of accommodating its vehicles for hire when not in use;

    9.

    Have knowledge and proof that all vehicles for hire operating for the company have the insurance coverage required herein and have knowledge and proof that such vehicles are in compliance with the standards concerning inspection;

    10.

    Provide taxicab service to the entire City and the Midland International Air and Space Port;

    11.

    Operate at least three taxicabs each month and more if required by the operating certificate. Should a company's fleet drop below the three taxicab minimum or below that required by the company's operating certificate, the company shall have 120 days to bring its fleet into compliance with this section and/or its operating certificate;

    12.

    The permit obtained from the police department is not transferable, or assignable and such benefit or privilege as the permit confers shall be conferred only to the person or corporation named on the permit. However, if a person sells his taxicab for which he has obtained a permit, he may not transfer the permit to cover his newly purchased taxicab;

    13.

    Vehicle inspection; required; times; safe conditions. Before being allowed to operate upon the streets of the City, each taxicab shall be inspected and approved pursuant to the laws of the state. No taxicab shall be driven or operated upon the streets of the City unless the same is in safe condition and free of mechanical defects, brakes in excellent condition, and the interior and exterior appearance shall be clean and maintained in a reasonable state. Each taxicab shall be further regularly inspected once per year by a person designated by the Chief of Police. In the event that a taxicab is not approved, it shall be suspended from operation until it complies with all City requirements;

    14.

    All taxicabs must also meet the following requirements:

    (a)

    The minimum weight of a taxicab shall be 2,000 pounds, as determined by the manufacturer's specifications.

    (b)

    No taxicab shall be equipped with shades, curtains, or any other vision-obstructing device.

    (c)

    No taxicab shall have less than four doors, including back doors, hatches, or gates, and each taxicab must be either a station wagon, a sedan, or a van.

    15.

    Any individual or corporation that is currently legally operating a taxicab service under a franchise or license granted by the City Council may continue to operate until August 1, 2008, provided that prior to March 1, 2008, application for a permit of nonconformance has been made and said certificate subsequently issued by the city police department as evidence that such exception is applicable to said vehicle.

    (I)

    In order to maintain an operating certificate for a limousine or motorbus service, a company must comply with the following regulations:

    1.

    Maintain a place within the county where records required by this Chapter are kept and that vehicles may be inspected and where telephone service is maintained. This telephone shall be answered for an eight-hour period between 7:00 a.m. and 7:00 p.m., Monday through Friday, five days a week, where contact may be made for records or vehicle inspections;

    2.

    Submit to the City a copy of a current lease, if applicable, for the company premises, or an affidavit as to ownership and occupancy;

    3.

    Maintain a publicly listed phone number;

    4.

    Maintain the name and home address of each driver affiliated with the company, along with the name of the person who owns or leases the vehicle operated by the driver;

    5.

    Maintain a log listing the year, make, model, and vehicle identification number (serial number) of each vehicle for hire operating in the company fleet;

    6.

    Maintain sufficient employees or answering devices at the office to answer its telephone after hours of company operation;

    7.

    Provide each driver with a copy of this chapter;

    8.

    Maintain at least one off-street parking lot capable of accommodating its vehicles for hire when not in use;

    9.

    Have knowledge and proof that all vehicles for hire operating for the company have the insurance coverage required herein and have knowledge and proof that such vehicles are in compliance with the standards concerning inspection;

    10.

    The permit from the police department is not transferable, or assignable and such benefit or privilege as the permit confers shall be conferred only to the person or corporation named on the permit. If a person sells his limousine or motorbus for which he has obtained a permit, he may not transfer the permit to cover a newly purchased vehicle;

    11.

    Vehicle inspection; required; times; safe conditions. Before being allowed to operate upon the streets of the City, each vehicle shall be inspected and approved pursuant to the laws of the state. No limousine or motorbus shall be driven or operated upon the streets of the City unless the same is in safe condition and free of mechanical defects, have brakes in excellent condition, and the interior and exterior appearance shall be clean and maintained in a reasonable state. Each limousine or motorbus shall be regularly inspected once a year by a person designated by the Chief of Police. In the event that a limousine or motorbus is not approved, it shall be suspended from operation until it complies with all City requirements.

(Ord. No. 9577 , § 2, 6-28-2016)