Item No: 5F.

Meeting Date: March 26, 2012

From: Doug Drymon, Deputy City Manager

Subject: Ordinance amending the City of Leesburg’s Code of Ordinances to address the minimum levels of liability insurance required of any person or entity holding a license to operate vehicles for

hire within the corporate limits of Leesburg

Staff Recommendation:

Staff recommends amending the current language in the City’s Code of Ordinances to require owners/operators of vehicles for hire to meet all state requirements as a condition of doing business inside the corporate limits of the City of Leesburg.

Analysis:

It has recently come to the attention of staff that the amount of auto liability insurance coverage which the City of Leesburg requires owners/operators of vehicles for hire to carry is set at lower minimum levels than the limits currently imposed under State law.

In discussions with Risk Manager Dann Herrin and City Attorney Fred Morrison, it appears the City has not previously amended its codes to reflect the auto liability insurance limits currently set forth under State law. Mr. Herrin and Mr. Morrison concur the best course of action for the City to take is to simply revise the language in Section 24-22 of the City of Leesburg Code of Ordinances to reference State law. The revised language being submitted should also serve to address any future changes in coverage or liability limits requirements the State of Florida may choose to adopt.

Options:

1. Adopt the Ordinance, as written; or

2. Such alternative action as the Commission may deem appropriate

Fiscal Impact:

Staff anticipates no significant financial impact on either the City or operators of vehicles for hire with passage of this ordinance. Background checks and issuance of Taxi Cab permits is currently coordinated by the Leesburg Police Department Records Section, which includes the process used to verify insurance coverage mandated by State Statute.  Police Department personnel will ensure that both new and renewing cab drivers provide proof of current insurance coverage and the insurance company issuing the policy.

Submission Date and Time: 3/21/2012 4:13 PM____

Department: ______________________ Prepared by: ______________________ Attachments: Yes____ No ______ Advertised: ____Not Required ______ Dates: __________________________ Attorney Review : Yes___ No ____ _________________________________ Revised 6/10/04

Reviewed by: Dept. Head ________ Finance Dept. __________________ Deputy C.M. ___________________ Submitted by: City Manager ___________________

Account No. _________________ Project No. ___________________ WF No. ______________________ Budget ______________________ Available _____________________

ORDINANCE NO._______________

AN ORDINANCE OF THE CITY OF LEESBURG, FLORIDA, AMENDING §24 – 22 OF THE CODE OF ORDINANCES PERTAINING TO LIABILITY INSURANCE REQUIRED OF ANY PERSON OR ENTITY HOLDING A LICENSE TO OPERATE VEHICLES FOR HIRE WITHIN THE CITY OF LEESBURG, REQUIRING PROOF OF INSURANCE PROVIDING COVERAGE OF NO LESS THAN THE MINIMUM AMOUNT REQUIRED BY §324.031, FLA. STAT. (2011) OR ANY AMENDMENT TO OR SUCCESSOR OF THAT STATUTE IMPOSING MINIMUM LIABILITY INSURANCE REQUIREMENTS FOR OPERATORS OF A FOR – HIRE TRANSPORTATION VEHICLE; PROVIDING A SAVINGS CLAUSE; REPEALING CONFLICTING ORDINANCES; AND PROVIDING AN EFFECTIVE DATE.

BE IT RESOLVED BY THE PEOPLE OF THE CITY OF LEESBURG, FLORIDA:

SECTION I.

§24 – 22 of the Code of Ordinances of the City of Leesburg, Florida, is hereby amended to read as follows (language underlined is being added to the existing code section, language stricken through is being deleted from the existing section):

Sec. 24 – 22. Liability Insurance.

No person or entity who holds, or is required to hold, a license as a company under this chapter to operate vehicles for hire, shall permit a vehicle for hire to be driven or operated on the streets of the City of Leesburg, unless the company under whose license the vehicle for hire is being operated has first procured a liability insurance policy or policies, and filed proof thereof with the city clerk. Such policy or policies shall provide coverage for all persons suffering injury, loss or damage to person or property by reason of the operation of any vehicle for hire under the license of that company or by a driver employed by, or acting as an independent contractor for, that company. Each policy shall be subject to approval by the city clerk as to form and content, and shall be issued by an insurer of recognized responsibility authorized by law to issue such policies in the State of Florida. The minimum permissible coverage shall be twenty-five thousand dollars ($25,000.00) for the death of or injury to one (1) person, fifty thousand dollars ($50,000.00) for injury or death to all persons arising out of any one (1) accident, and twenty-five thousand dollars ($25,000.00) [for] damage to property arising out of any one (1) accident insurance coverage must conform to the requirements imposed by §324.031, Fla. Stat. (2011) as subsequently amended, or any successor or replacement statute enacted by the State of Florida, and such coverage shall remain in force without reduction during the effective period of the policy. Each policy must contain a provision that no coverage thereunder may be cancelled or modified until written notice has been given to the city clerk at least thirty (30) days prior to the cancellation or modification date. A holder of a company license must submit proof of such insurance coverage at least annually, and if existing coverage is cancelled or modified, the licensee shall submit proof of the required coverage prior to the effective date of the cancellation or modification. No permit shall be issued to any company for the operation of any vehicle for hire unless and until such policy of insurance has been filed with the city clerk. Failure to procure and keep in force such insurance coverage or provide proof thereof when required, shall be grounds for revocation or suspension of the company permit, or referral to the code enforcement board.

SECTION II.

All ordinances or part of ordinances which are in conflict with this Ordinance are hereby repealed, to the extent necessary to alleviate the conflict, but shall continue in effect insofar as they are not in conflict herewith, unless repeal of the conflicting portion destroys the overall intent and effect of any of the conflicting ordinance, in which case those ordinances so affected shall be hereby repealed in their entirety.

SECTION III.

If any portion of this Ordinance is declared invalid or unenforceable, and to the extent that it is possible to do so without destroying the overall intent and effect of this Ordinance, the portion deemed invalid or unenforceable shall be severed herefrom and the remainder of the ordinance shall continue in full force and effect as if it were enacted without including the portion found to be invalid or unenforceable.

SE2CTION IV.

This Ordinance shall become effective upon its passage and adoption according to law.

PASSED AND ADOPTED at the regular meeting of the City Commission of the City of Leesburg, Florida, held on the day of , 2012.

THE CITY OF LEESBURG, FLORIDA

BY:

MAYOR

Attest:

CITY CLERK