The Chief of Police is proposing that the City Council approve an operating contract with transportation network companies (TNCs) like Uber and Lyft. The contract would require TNC drivers to pass background checks and maintain insurance, and the TNCs to pay an annual fee to the city. It is modeled after a similar contract in San Antonio. Approving the contract would allow TNCs to legally operate in Alamo Heights while promoting passenger safety.

1. Transportation Network
Company Operating Contract
Proposal
by Rick Pruitt, Chief of Police
Item # 9
City Council Meeting
January 11, 2016

2. 2
● The City of Alamo Heights joined other
municipalities by passing Resolution 2015R-
072 on April 13, 2015 approving an interim
operating agreement with Rasier LLC (Uber), a
Transportation Network Company (TNC)
• Since then The City of San Antonio has
entered into operating contracts with Rasier
LLC and Lyft, Inc.
Background

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● The operating contract developed by the City
of San Antonio is a combination of ride-share
industry standards and other regulations
comparative to those applied to the taxi
industry
Background

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● Numerous bills were introduced during the 84th
regular session of the Texas Legislature
relating to TNCs with only House Bill 1733
passing to amend the Texas Insurance Code
establishing insurance requirements for TNCs
and their drivers.
Background

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● The City Attorney has prepared a proposed
operating contract for the City of Alamo
Heights specifically addressing
* TNC operations, driver background
qualifications and other requirements; and
* promote the health, safety and welfare of
passengers; specific terms include…
Background

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● TNC driver requirements for minimum age,
valid driver’s license and personal automobile
liability insurance;
● Immediate disqualifiers of TNC operators for
a driving record having multiple violations or a
“major violation”;
Background

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● National criminal background check by a
provider accredited by the National
Association of Professional Screeners;
● A search of the national sex offender database;
● Zero tolerance policy by TNCs prohibiting
discrimination, harassment or sexual
harassment by a TNC driver;
Background

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● Prohibits TNC drivers from refusing to provide
service to passengers with service animals;
● Zero tolerance policy on the use of drugs or
alcohol by a TNC driver while on a TNC
platform;
● TNCs must meet the liability insurance
requirements in House Bill 1733;
Background

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● Requires all TNC vehicles shall have a safety
inspection conducted prior to their operation on
the TNC platform
Other terms of the proposed operating contact
include:
● TNCs shall pay an annual operating fee
determined by the City of Alamo Heights;
Background

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● A termination clause stipulating the contract
may be terminated by expiration of the contract
or anytime upon thirty (30) days written notice
by the City of Alamo Heights or the TNC;
● The operating contract does not give exclusive
right of any TNC to provide ride-sharing
services to the City of Alamo Heights
Background

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● TNCs are concerned for over-regulation by
municipalities and have moved their operations
out of some cities
● Smaller start-up ride-share companies have
shown interest in smaller municipalities and
unincorporated Bexar County
Background

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● Absent an operating contract with those
companies they are only regulated by the
insurance requirement in House Bill 1733
Background

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An Ordinance is also proposed to support the
requirement of an operating contract with the City
of Alamo Heights before a TNC commences
transportation network services in the City and
provides a penalty for violation of the Ordinance.
Ordinance

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City Council may enter into an operating contract
with a Transportation Network Company offering
services to the citizens of Alamo Heights to
provide for the health, safety and welfare of its
citizens using those services
Policy Analysis

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The City of Alamo Heights Police Department will bear
the responsibility for maintaining records pursuant to
the operating contract with a Transportation Network
Company. The City of Alamo Heights may determine an
appropriate operating fee to off-set the costs of record
maintenance, inspections, investigations, and
communications with the Transportation Network
Company concerning network operations, and/or
conduct contrary to the terms of the operating contract.
Fiscal Impact

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Discussion / Recommendations