HomeMy WebLinkAboutOrdinance 15625O8-05-03P01~56 RCVD
ORDINANCE NO. /~(l/ ~~
AN ORDINANCE AMENDING THE CODE OF THE CITY OF FORT
WORTH (1986), AS AMENDED, BY THE AlVII;NDMENT OF CHAPTER 34,
"VEHICLES FOR HIRE" SECTION 34-147 "INSURANCE" IS Al'VIENDED
TO PROVIDE ADDITION INSURANCE REQUIREMENTS AND LIlVHTS
OF COVERAGE; PROVH)ING THAT THIS ORDINANCE IS
CI;iMUI.ATIVE; PROVIDING A SEVERABILITY CLAUSE; PROVIDING
A FINE OF UP TO $200 FOR EACH OFFENSE IN VIOLATION OF THE
ORDINANCE; PROVIDING A SAVINGS CLAUSE; AND PROVIDING AN
EFFECTIVE DATE.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT
WORTH, TEXAS:
SECTION 1.
That the Code of the City of Fort Worth (1986), as amended, is amended by the
amendment of Chapter 34, "Vehicles for Hire," Article IV, "Taxicabs," Section 34-147, "Insurance,"
is amended to provide additional insurance requirements and limits of coverage. Such section shall
read as follows:
"Sec. 34-147. Insurance.
(a) As a condition to the issuance of a grant of privilege and the continued
operatinn hereunder, a grant holder shall maintain in force during the
authorized period of its operating authority the amount and character of
insurance coverage for taxicabs as established by the city council from
time to time. The operating authority will .not be granted, renewed or
continued unless the applicant or holder fizrnishes the city with a copy of
the policy together with all endorsements.
(b) The minimum insurance required under this section must:
(1) Be obtained from a carrier that is admitted and licensed to transact
insurance in the State of Texas,
(2) The policy shall be written on an occurrence basis.
(3) Cover any and all vehicles and drivers in the holder's fleet, and all
drivers of such vehicles;
(4) Be acceptable to the risk management division of finance;
(5) Name the City of Fort Worth as an additional insured;
(6) Provide minimum coverage in an amount no less than five hundred
thousand dollars ($500,000.00) combined single limit liability
(CSL) per occurrence;
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(7) All claims will be paid on first dollars basis by the insurance
provider;
(8) Insurance shall not be obtained from an assigned risk pool;
(9) The insurance coverage shall not contain policy exclusions that
would change or limit coverage for passengers entering or exiting
the vehicle;
(10) All vehicles pernutted to operate under the grant of privilege must
be listed as a scheduled vehicle covered by the policy.
(c) All taxicab liability insurance coverage must include a rider that provides
that at all levels of coverage, there must be notification to the city in
writing not less than thirty (30) days before canceling or making a material
change in the policy.
(d) The grant of privilege holder shall not have ,operational control in any
insurance company providing coverage to the vehicles operated under the
grant of privilege.
(e) The city council, in its discretion, may from time to time require insurance
coverage of a different kind or a greater amount, and upon such city
council action, the grant of privilege holder shall be required to modify its
insurance coverage to comply with these requirements, and shall furnish to
the ground transportation office an insurance binder as evidence that it has
acquired such type and amounts of insurance within ten (10) days of the
change. The holder shall provide a copy of the policy and with all
endorsements within forty-five (45) days of demand from the ground
transportation coordinator."
SEC'TI®N 2.
This ordinance shall be cumulative of all provisions of ordinances and of the Code of the
City of Fort Worth, .Texas (1986), as amended, except where the provisions of this ordinance are in
direct conflict with the provisions of such ordinances and such Code, in which event conflicting
provisions of such ordinances and such Code are hereby repealed.
SEC'I'I®lil 3.
It is hereby declared to be the intention of the City Council that the sections, paragraphs,
sentences, clauses and phrases of this ordinance are severable, and, if any phrase, clause, sentence,
paragraph or section of this ordinance shall be declared unconstitutional by the valid judgment or
decree of any court of competent jurisdiction, such unconstitutionality shall not affect any of the
remaining phrases, clauses, sentences, paragraphs and sections of this ordinance, since the same
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would have been enacted by the City Council without the incorporation in this ordinance of any
such unconstitutional phrase, clause, sentence, paragraph or section.
SECTION 4.
Any person, firm or corporation who violates, disobeys, omits, neglects or refuses to comply
with or who resists the enforcement of any of the provisions of this ordinance shall be fined not
more than Two Hundred Dollars ($200.00) for each offense. Each day that a violation is permitted
to exist shall constitute a separate offense.
SECTION 5.
All rights and remedies of the City of Fort Worth, Texas, are expressly saved as to any and
all violations of the provisions of the ordinances amended in Section 1, which have accrued at the
time of the effective date of this ordinance and, as to such accrued .violations and all pending
litigation, both civil and criminal, whether pending in court or not, under such ordinances, same
shall not be affected by this ordinancebut may be prosecuted until final disposition by the courts.
SECTION 6.
The City Secretary of the City of Fort Worth, Texas, is hereby directed to publish the
caption and Section 4 of this ordinance for two (2) days in the official newspaper of the City of Fort
Worth, Texas, as authorized by Section 2, Chapter XXV of the Charter of the City of Fort Worth,
Texas and by Section 52.013, Texas Local Government Code.
SECTION 7.
This ordinance shall be in full force and effect on September 1, 2003.
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APPRO~D AS TO FORM AND LEGALITY:
AS~ISTAN~' CITY ATTORNEY
DATE: `~ Iaa-~ n3
ADAPTED: ~ ~ ~-a--~ ~.~
EFFECTIVE: v ~ ~ l
City of ' ~'o~'t Wo~'tlz, ~'exas
DATE REFERENCE NUMBER LOG NAME PAGE
7/22/03 G-14037 38TAXI 1 of 2
SUBJECT ADOPTION OF ORDINANCE AMENDING CHAPTER 34, "VEHICLES FOR HIRE",
ARTICLE IV, "TAXICABS" SECTION 34-147 "INSURANCE" OF THE CITY CODE
RECOMMENDATION:
It is recommended that the City Council adopt the attached ordinance amending Chapter 34, "Vehicles
for Hire", Article IV, "Taxicabs", Section 34-147 "Insurance" of the City Code to be effective September
1, 2003.
DISCUSSION:
There are three taxicab companies that are authorized to operate in Fort Worth. Two of the taxicab
companies have insurance coverage with the Insurance Corporation of New York. The rating for
Insurance Corporation of New York has dropped from an A (Superior) to NR-3 (Not Rated). The third
company, whose insurance coverage with Insurance Corporation of New York .expired, has obtained
coverage with a company that is not rated. Under City ordinance, an authorized taxicab company must
have coverage with an insurance carrier that is rated A or higher. Due to the insurance market, the
taxicab companies indicate they have been unable to obtain insurance coverage in compliance with the
City ordinance. Therefore, staff has researched the requirements in other cities and the insurance
market to determine available insurance coverage.
On April 22, 2003 and May 15, 2003, the Public Safety Committee received staff recommendations to
amend the insurance coverage for taxicabs required by City ordinance. Staff recommends the following
revisions:
• Reduce coverage limit from $1,000,000 to $500,000 on a combined single limit; and
• Coverage shall be obtained from an admitted and licensed carrier; and
• Delete rating requirement; and
• Prohibit policy exclusions that would change or limit coverage for passengers; and
• Insurance shall not be obtained from an assigned risk pool; and
• Prohibit taxi permit holders from having operational control in any insurance company providing
coverage; and
• All vehicles permitted to operate must be listed as a scheduled vehicle covered by policy; and
• Remove the requirement for a deductible.
Based upon information obtained regarding the market conditions in the insurance industry,-the Risk
Management Division of the Finance Department recommends the above ordinance revisions.
The attached ordinance shall take effect on September 1, 2003.
City of Fort ~Vortlz, Texas
M'Ayar and Cauncil CammunicAt~an
DATE
7/22/03 REFERENCE NUMBER
G-14037 LOG NAME
38TAXI PAGE
2 of 2
SUBJECT ADOPTION OF ORDINANCE AMENDING CHAPTER 34, "VEHICLES FOR HIRE",
ARTICLE IV, "TAXICABS" SECTION 34-147 "INSURANCE" OF THE CITY CODE
FISCAL INFORMATION/CERTIFICATION:
The Finance Director. certifies that this action will have no material effect on City funds.
LW: k
Submitted for City Manager's FUND ACCOUNT CENTER AMOUNT CITY SECRETARY
Office by: (to)
Libby Watson 6183
Originating Department Head:
Elsa Paniagua 6711 (from) APPROVED 07/22/03
ORD.# 15625
Additional Information Contact:
Elsa Paniagua 6711