Burlington councilors approve new taxi, Uber rules

Burlington city councilors on Tuesday evening approved new rules for vehicles for hire in the city.

“The passage of this ordinance will create a regulatory framework under which transportation network companies can legally operate in Burlington,” Mayor Miro Weinberger said before the council vote.

The mayor said the new rules address a lack of late-night transport options, take drunk drivers off the road, ensure safety for riders and create a level playing field for all transportation companies.

Councilors adopted the proposed ordinance on a 9-3 vote. Selene Colburn, P-East District; Max Tracy, P-Ward 2 and Council President Jane Knodell, P-North District voted 'no.'

Since last year, the council's Ordinance Committee has worked to rewrite the city taxi ordinance to accommodate ride-hailing services such as Uber and Lyft. The ordinance now on the books fails to address how smartphone-based transportation companies should be regulated.

The new rules will:

- Require all transportation companies to conduct background checks on drivers through the city or an accredited third party, subject to random city audits.

- Increase competition by permitting traditional taxi companies and ride-hailing services to operate legally.

- Create a vehicle-for-hire enforcement officer, and moves the enforcement office from Burlington International Airport to City Hall

- Permit all vehicle-for-hire companies to set their own prices, to be agreed upon at the beginning of each ride. Street hails are an exception and remain subject to metered fares.

- Allow transportation companies to implement surge pricing in times of high demand.

Under the new ordinance, traditional taxi companies and ride-hailing services will be treated equally with the exception of liability insurance rules. Traditional taxi firms would be required to maintain $500,000 of commercial liability insurance, while companies such as Uber would be required to insure drivers with $1 million in coverage.

Councilors decided to revisit the city's taxi's rules after a ride-hailing company's entry into the Burlington market drew confusion and calls of unfair practices.

Uber, which is based in San Francisco, began operating in Burlington in October 2014. Within weeks, Burlington City Attorney Eileen Blackwood declared Uber was operating illegally, because the company's drivers had not secured licenses from the city as the taxi ordinance requires.

Uber argued that requirement was cumbersome, as many of the company's drivers are part-time and likely would balk at paying a licensing fee.

Traditional cab companies argued Uber undercut their business, as the ride-hailing service was not subject to metered fares and failed to pay licensing fees to Burlington.

Before the vote, Councilor Max Tracy, P-Ward 2, introduced an amendment to require the city to conduct all background checks. In previous interviews with the Burlington Free Press, Uber representatives said a city background check was unnecessary since the company conducts its own screenings. Taxi drivers, who had been required to pass city-conducted screenings, asked Uber to be held to the same standard.

“To say we should deregulate the background check piece strikes me as unfortunate and poorly conceived,” Tracy said.

Tracy was unable to sway his colleagues, who voted 7-5 against the amendment.

Tuesday’s vote concluded an eight-month process that included public hearings and several drafts of the proposed ordinance.

During the public comment portion of the council meeting, about 10 Uber drivers and riders urged councilors to adopt the ordinance.

Driver Jill St. Thomas Benoit said she enjoys showing riders around Burlington and the University of Vermont.

“I’m able to become a city guide,” Benoit said. “I know every microbrewery intown. I’ve become a city concierge.”

Debbie Black, a retired school nurse, said she enjoys earning extra income. She added she has yet to hear a complaint from a rider about the service.

Driver Matt Fidler said he is saving his earnings from Uber to enroll at UVM.

“Uber is a great way to supplement my income,” Fidler said. “I really enjoy it and think other people do as well.

Other drivers said they feel a sense of pride when they provide late-night rides home for intoxicated college students and other young people, who may otherwise have few transportation options.

Just one person spoke out against the new rules – Green Cab VT owner Charlie Herrick. Herrick, who has been critical of the ordinance rewrite process since its inception, pulled no punches Tuesday.

“Ever since the process began, the administration has turned its back on local transportation companies,” Herrick said.

Herrick said taxi companies had asked for additional oversight to improve safety, but by allowing firms to conduct their own background checks, he said the industry is less safe.

“The administration has deregulated the industry,” Herrick said. “You’re not going to get a complete list of drivers from which to do an audit. You don’t know how many drivers are out there.”

Councilors and Uber representatives last July negotiated an interim agreement that permitted the company to operate while councilors crafted a new taxi ordinance. The ordinance committee last amended the draft proposal Feb. 2 and sent the new rules to the full council for approval.

Before the vote, Mayor Miro Weinberger urged councilors to pass the ordinance. He said the new rules will help bolster Burlington's reputation as a tech-friendly city.

"Tonight's vote ... sets an important precedent about whether Burlington is committed to fostering innovation," Weinberger said.

Uber, which sent representatives to Burlington to give input as councilors drafted the ordinance, also urged approval of the new rules.

"After the City of Burlington approved a temporary operating agreement last year supporting economic opportunities and improved transportation options for their city, we are hopeful the Burlington City Council will approve a permanent ordinance,” spokeswoman Carlie Waibel said.

After the meeting, Uber in a statement thanked councilors for supporting the ordinance.

Burlington councilors to weigh new Uber rules

Uber, cabbies disagree over taxi rules

BPD recommends oversight of taxi-, Uber-like services

This story was originally published Feb. 16, 2016. The story was updated on Feb. 18, 2016 to add Uber's reaction to the council vote.

Contact Zach Despart at 651-4826 or zdespart@burlingtonfreepress.com. Follow him on Twitter at www.twitter.com/ZachDespart.