PISMO BEACH CITY COUNCIL STAFF REPORT
Agenda Item #12.B
Meeting Date: June 17, 2025
TITLE:
Review of Taxicab Permitting Regulations and Consideration of Pedicab Regulations
RECOMMENDATION:
1. Receive an overview of the City’s current taxicab permitting regulations and practices.
2.Provide direction on desired updates to the municipal code and direct staff to prepare an updated ordinance and return for a first reading.
3. Provide direction on whether and how to regulate pedicabs, including the possibility of a standalone ordinance.
DISCUSSION:
Taxicab Regulations
The City of Pismo Beach’s taxicab regulations are currently governed by provisions in the Pismo Beach Municipal Code (PBMC) Chapter 5.40 dating back to 1964. These provisions have not undergone substantial updates since their adoption. The ordinance needs to be updated to reflect current City practices and changes to state law regulations.
California Assembly Bill 1069 (AB 1069), enacted in 2019, significantly revised California Government Code Section 53075.5, which governs the local regulation of taxicab transportation services. The legislation was designed to modernize taxicab transportation services for taxicabs to better compete with transportation network companies like Uber and Lyft. Key provisions of AB 1069 that affect municipalities include but are not limited to:
Regional Permitting Flexibility: Cities and counties must allow a taxicab company that is permitted in one jurisdiction within a county to operate in any other jurisdiction in the same county, provided that the operator notifies the jurisdiction where they intend to operate. This eliminates the need for multiple, duplicative permits across neighboring cities.
Prohibition of Caps and Moratoriums: Local agencies may no longer impose a limit or moratorium on the number of taxicab permits issued, which encourages market competition and easier access for new operators.
Fair and Transparent Permitting Process: Permitting requirements must be applied fairly and include clear, objective criteria. Background checks and vehicle inspections may be required, but the process must not be unduly burdensome.
Council Agenda 6-17-2025 12.B-1
Compliance with Statewide Insurance Standards: Taxicab operators must meet specific insurance requirements under California law, and local jurisdictions may not impose conflicting standards.
Use of Digital Dispatch and Street Hail: AB 1069 permits taxicabs to use both street hails and digital dispatch methods, including app-based systems, without separate regulatory categories.
As a result of this state legislation, several sections of the PBMC relating to taxicabs are no longer applicable. Updating the taxicab ordinance would help streamline the permitting process, remove required permitting and business license fees, encourage legal operation of taxicab services, and align the ordinance with current City practices and state law. As such, staff recommends that the Council direct staff to prepare a comprehensive revision to the regulations and return with an ordinance for first reading.
Pedicab Regulations
In addition to taxicab operators, the City has received occasional inquiries about the operation of pedicabs within City limits. Currently, the City does not have a dedicated ordinance regulating pedicabs and regulates them through the taxicab ordinance. This can present challenges.
Applying the current taxicab ordinance to pedicabs may create operational confusion, as many of the requirements—such as vehicle inspections, insurance minimums, and fare meter standards—are tailored for motor vehicles and may not be appropriate for non- motorized transport. Without a pedicab-specific ordinance, the City may overlook key safety considerations unique to pedicabs, such as helmet use, nighttime visibility, and passenger limits.
Creating a standalone pedicab ordinance allows the City to establish clear, tailored regulations specific to the unique nature of pedicab operations. This includes setting appropriate safety, insurance, and operational standards that differ from motorized transportation. A dedicated code can support tourism by encouraging low-impact, environmentally friendly transportation options while also allowing the City to define operational zones, hours of service, and staging areas to minimize conflicts with vehicles and pedestrians. It also provides a structured framework should interest in pedicab services increase in the future.
Prohibiting pedicabs may be beneficial due to safety and infrastructure concerns, particularly in the downtown area. The narrow streets, lack of designated bike lanes, and high volume of pedestrian and vehicle traffic during peak seasons may create unsafe conditions for pedicab operations. Additionally, prohibiting pedicabs avoids the need for new regulatory oversight, reduces potential liability to the City, and ensures consistency with existing transportation services that are subject to stricter permitting requirements.
Council Agenda 6-17-2025 12.B-2
Recommendation
Staff recommends that the City Council:
1. Provide direction on desired updates to the municipal code relating to taxicab regulations, and direct staff to prepare a draft ordinance and return for first reading.
2. Provide direction on whether and how to regulate pedicabs, including the possibility of a standalone ordinance.
FISCAL IMPACT:
There is no direct fiscal impact on staff’s recommendation. The fiscal impact of direction received from the Council, if any, will be analyzed at the time considered by the Council.
ATTACHMENTS:
1. Pismo Beach Taxicab Regulations, PBMC Chapter 5.40
Prepared by:
Dan Herlihy, Commander
Submitted by: Jeff Smith, Chief of Police
City Manager Approval:
Council Agenda 6-17-2025 12.B-3
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