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Ordinance 80-2243ORDINANCE NO. 80-2243 AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AMENDING SECTION 42-6 OF THE CODE OF THE CITY OF MIAMI BEACH, FLORIDA, REGARDING INSURANCE REQUIREMENTS FOR TAXICABS; PROVIDING FOR THE ACCEPTANCE OF CERTIFICATE OF SELF-INSURANCE FROM THE DEPARTMENT OF HIGHWAY SAFETY AND MOTOR VEHICLES IN LIEU OF PUBLIC LIABILITY INSURANCE POLICY COVERING EACH SUCH MOTOR VEHICLE; REPEALING ALL ORDINANCES IN CONFLICT HEREWITH; AND PROVIDING FOR AN EFFECTIVE DATE. BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA: SECTION 1: That Section 42-6 of the Code of the City of Miami Beach, Florida, is hereby amended to read as follows: "Sec. 42-6. Insurance Required. It shall be unlawful for any certificate -holder, his agents or employees, to drive or operate any taxicab, or allow the same to be driven, or operated in the city, unless there is in full force at all times in which such taxicab is being driven or operated, insurance in the sum of fifty thousand dollars for injury to any one person, one hundred thousand dollars for injury to more than one person in the same accident and five thousand dollars' property damage in any one accident, written by an insurance company duly licensed to engage in the sale of liability insurance in the state or in the alternative a Certificate of Self -Insurance from the Department of Highway Safety and Motor Vehicles, a copy of which policy or Certificate shall be filed with the city police department, and shall agree to provide the city with a minimum of thirty days' notice of cancellation, and which shall inure: (a) To the benefit of any passenger in such taxicab who may receive bodily injuries, and to the heirs or legal represen- tatives of any passenger who may suffer death by reason of the negligence or misconduct on the part of the certificate -holder or driver of such motor vehicle for hire. (b) To the benefit of any individual who may receive bodily injuries and to the heirs or legal representatives of any in- dividual who may suffer death by reason of the negligence or misconduct on the part of the certificate -holder or driver of such vehicle. (c) To the benefit of any individual who may sustain damage by reason of any injury to his property due to the negligence or misconduct of the certificate -holder or driver of such motor vehicle. (Ord. No. 1898, Sec. 1.) SECTION 2: All ordinances or parts of ordinances in conflict herewith be and the same are hereby repealed. OFFICE OF THE CITY ATTORNEY - 1700 CONVENTION CENTER DRIVE - MIAMI BEACH, FLORIDA 33139 SECTION 3: This ordinance shall go into effect upon its passage in accordance with law. PASSED and ADOPTED this 17th day of December, 1980. Attest: City Clerk 1st Reading - November 5, 1980 2nd Reading - December 17, 1980 Words in struek-threegh type are deletions. Words in underscore type are additions. FORM APPROVED LEGAL DEP By Date BMS/el 1/5/81 skl OFFICE OF THE CITY ATTORNEY • 1700 CONVENTION CENTER DRIVE • MIAMI BEACH, FLORIDA 33139 OFFICE OF THE CITY MANAGER HAROLD T. TOAL CITY MANAGER FLORIDACal/ Naomi Vead 3 3 1 3 9 "VACATIONLAND U. S. A." COMMISSION MEMORANDUM NO. e-6 1-,7 TO: Mayor Murray Meyerson and ers of till? C. Commission FROM: j4airold�`. oal 11JJ11 City Manager SUBJECT: TAXICAB INSURANCE CITY HALL 1700 CONVENTION CENTER DRIVE TELEPHONE: 673-7010 DATE: December 17, 1980 The Administration recently was informed that all taxicab certificate holders in Miami Beach may be in violation of sections of the Miami Beach City Code in that they do not carry the amounts of liability insurance required in our ordinances. After meeting with representatives of the industry, the Administration was told it would not be possible for taxicabs to provide the required insurance and that all taxicabs would be taken off the streets if the present ordinances are enforced. An examination of practices in other Dade County jurisdictions indicates that a certificate of self-insurance from the Florida Department of Highway Safety and Motor Vehicles is accepted as an alternative. This practice has in fact been in effect for several years with the Miami Beach taxicab firms and has worked in a satisfactory manner. In reviewing alternatives to the self-insurance certificate, it was noted that taxicab corporations could be insured by the Joint Underwriters Association which is a high risk insurance group. The following rates were quoted for a fleet of 200 taxicabs with an average claim rate. 10,000/20,000 - $2,593.00 per vehicle, per year = $518,600 25,000/50,000 - $6,171.00 per vehicle, per year = $1,234,200 (50% of City Code requirements) In light of the above costs the Administration is proposing an amendment to our ordinance permitting the City to accept a certificate of self-insurance as suffi- cient evidence of liability insurance. The Administrate on sees no alternative to this if the City of Miami Beach is to maintain taxicab service within its City limits. ADMINISTRATION RECOMMENDATION: The Administration recommends that the ordinance amendment attached be adopted. HTT:RJG:rs Attachment AGENDA ITEM DATE X -3-C. JOHN A. RITTER CITU ATTORNEY OFFICE OF THE CITY AT1OHNtY F L 0 R 1 D A COMMISSION MEMORANDUM NO. TO: Mayor Murray Meyerson and Members of the City Commission City Manager Harold T. Toal FROM: John A. Ritter City Attorney TELEPHONE : 673.7470 DATE: Dec. 17,1980 SUBJECT: LIABILITY OF CITY FOR ACCEPTANCE OF CERTIFICATE OF SELF- INSURANCE AS PROOF OF FINANCIAL RESPONSIBILITY OF TAXICABS The proposed amendment to Section 42-6 of the Miami Beach City Code, regarding insurance requirements for taxicabs, provides for the acceptance of a Certificate of Self-insurance from the Department of Highway Safety and Motor Vehicle in lieu of public liability insurance policy covering each such motor vehicle. Every owner or registrant of a motor vehicle required to be registered and licensed in this state (including for -hire motor vehicles) must maintain security by an insurance policy delivered or issued for delivery in the State of Florida by an authorized or eligible motor vehicle liability insurer which provides the benefits and exemptions contained in Sections 627.730-627.741, F.S. (copy attached). The required minimum personal injury protection benefits are as follows: Every insurance policy complying with the security requirements of the state statutes shall provide personal injury protection providing for payment of all reasonable expenses to the name insured, relatives residing in the same household, persons operating the insured motor vehicle, passengers in such motor vehicle, and other persons struck by such motor and suffering bodily injury while not an occupant to a limit of ten thousand dollars for loss sustained by any such person as a result of bodily injury, sickness, disease, or death arising out of the ownership, maintenance of use of a motor vehicle. Security may also be provided with respect to any motor vehicle by any other method authorized by Sections 324.031(2),(3), or (4) and approved by the Department of Highway Safety and Motor Vehicles as affording security equivalent to that afforded by a policy of insurance. Section 324.031, F.S., commonly known as the Florida Financial Responsibility Law, provides that the operator or owner of a vehicle may prove his financial responsibility by: 1) Furnishing satisfactory evidence of holding a motor vehicle liability policy as defined in Sections 324.021(a) F.S. and 324.151 F.S., or 2) Posting with the department a satisfactory bond of a surety company authorized to do business in the state, conditioned for payment of the amount specified in Section 324.021(7) F.S., or AGENDA R ITEM , 3 —Co DATE I2."''I4"-80 3) Furnishing a certificate of the department showing a deposit of cash or securities in accordance with Section 324.161 F.S., or 4) Furnishing a Certificate of Self-insurance issued by the department in accordance with Section 324.171, F.S. The standards set forth in Chapters 627 and 324 F.S., are minimum standards and do not prohibit the City from establishing additional or more stringent regulations. However, the City may be preempted from establishing any lesser standards than that set forth by the state law. Section 42-6 of the Miami Beach City Code (copy attached), as it now exists, does establish greater standards of financial responsibility than that required by state law by requiring any certificate-holder, his agents or employees, to obtain insurance in the sum of fifty thousand dollars for injury to anyone person, one hundred thousand dollars for any injury to more than one person in the same accident and five thousand dollars property damage in anyone accident. As the Administration points out in their Commission Memorandum, all taxicab certificate holders in Miami Beach may be in violation of Section 42-6 of the Code in that they do not carry the amounts of liability insurance required by our ordinances. An examination of practices in other Dade County jurisdictions indicates that a Certificate of Self-insurance from the Florida Department of Highway Safety and Motor Vehicles is accepted as an alternative to the state requirements. This practice has in fact been in effect for several years with the Miami Beach taxicab firms and has worked in a satisfactory manner. It has been determined from information obtained by the Joint Underwriters Association that requiring taxicabs to obtain insurance in the amounts now required by the City Ordinance would cost the individual taxicab owner an amount in excess of five thousand dollars per year. The Administration obtained a quote for a fleet of two hundred taxicabs with an average claim rate in the amount of over one million dollars for fifty percent of the City Code requirements. In light of these costs, the Administration has proposed an amendment to the ordinance permitting the City to accept a Certificate of Self-insurance is sufficient evidence of liability insurance. The proposed amendment to the ordinance is clearly within the authority of the City Commission in that it seeks to provide an alternate method of proving financial responsibility which is consistent with the minimum standards established by state law. The adoption of the proposed amendment to the ordinance is a dis- cretionary decision on the part of the Commission and in no way could be construed as negligent in light of the evidence and testimony deduced by the Administration and this Commission in consideration of such amendment. Therefore, it is my opinion that there is no liability on the part of the City and/or its Commissioners for adopting the amendment to the ordinance which is consistent with state law. Prepared by Bruce M. Singer Page 2 of 2 § 42-6 TAXICABS, ETC., FOR HIRE § 42-7 (2) It has ever been used as a police car. (3) It is more than five calendar years old. In addition, no permit shall be issued for any motor vehicle to be operated as a taxicab within the city unless such vehicle is equipped with an operational and mechanically sound auto air -conditioner. (Ord. No. 1898, § 1.) Sec. 42-6. Insurance required. It shall be unlawful for any certificate -holder, his agents or em- ployees, to drive or operate any taxicab, or allow the same to be driven or operated in the city, unless there is in full force at all times in which such taxicab is being driven or operated, insurance in the sum of fifty thousand dollars for injury to any one person, one hun- dred thousand dollars for injury to more than one person in the same accident and five thousand dollars' property damage in any one ac- cident, written by an insurance company duly licensed to engage in the sale of liability insurance in the state, a copy of which policy shall be filed with the city police department, and shall agree to provide the city with a minimum of thirty days' notice of cancellation, and which shall inure: (a) To the benefit of any passenger in such taxicab who may receive bodily injuries, and to the heirs or legal representatives of any passenger who may suffer death by reason of the negligence or misconduct on the part of the certificate -holder or driver of such motor vehicle for hire. (b) To the benefit of any individual who may receive bodily in- juries and to the heirs or legal representatives of any individual who may suffer death by reason of the negligence or misconduct on the part of the certificate -holder or driver of such vehicle. (c) To the benefit of any individual who may sustain damage by. reason of any injury to his property due to the negligence or mis- conduct of the certificate -holder or driver of such motor vehicle. (Ord. No. 1898, § I.) Sec. 42-7. Posting of rates. A schedule of rates authorized by the city council to be charged for passenger transportation services within the city shall be posted by the certificate -holder on each vehicle licensed as a taxicab. The cer- tificate -holder may also post a schedule of flat rates to be charged passengers for transportation services outside the limits of the city; provided, that such rates have been filed with the police department. 563 Supp. # 10, 12-71 3 OFFICE OF THE CITY MANAGER HAROLD T. TOAL CITY MANAGER TO: FLORIDAeetet vte4ote 6.4 3 3' 1 3 9 "VACATIONLAND U. S. A." COMMISSION MEMORANDUM NO. Mayor Murray Meyerson and bers oftt a City Commission v FROM: :roll T. oal City Manager 15T SUBJECT: TAXICAB AND AUTO RENTAL FIRMS INSURANCE CITY HALL 1700 CONVENTION CENTER DRIVE TELEPHONE: 673-7010 DATE: November 5, 1980 The Administration recently was informed that all taxicab Certificate holders and the various automobile rental busi- nesses in Miami Beach are and have been for a number of years in violation of sections of the Miami Beach City Code in that they do not carry the amounts of liability insurance required in our ordinances. After meeting with representatives of the industries, the Administration was told it would not be possible for taxicabs to provide the required insurance, and that all taxicabs would be taken off the streets if the present ordinances are enforced. An examination of practices in other Dade County jurisdictions indicates that a Certificate of Self -Insurance from the Florida Department of Highway Safety and Motor Vehicles is accepted as an alternative. This practice has in fact been in effect for several years with the Miami Beach taxicabs and auto rental firms and has worked in a satisfactory manner. The Administration is proposing an amendment to our ordinances permitting the City to accept a Certificate of Self -Insurance as sufficient evidence of liability insurance. We see no alternative to this if we are to maintain taxicab service and auto rental service within our City limits. ADMINISTRATION RECOMMENDATION: The Administration recommends that the two ordinance amendments attached be adopted. HTT:HC:em Attachments AGENDA ITEM R-3 -a 9 DATE /I_f1:;i...o v • 0 0 U 4-i M 4-4 N 0 N I P-1 o • < CO N z 1-4 0 P4 z v o w cn ORDINANC requirements