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Council OKs first‑reading change to pedicab rules, lowers umbrella threshold pending staff follow‑up
Summary
City council introduced an amendment to the pedicab ordinance to align local rules with California vehicle code and to remove an unattainable $10 million umbrella insurance requirement; staff will return with final language and options for mid‑range coverage.
Palm Springs City Council on July 21 moved forward with changes to the city’s pedicab ordinance that align local regulation with California vehicle code and remove an existing $10 million umbrella insurance requirement, while directing staff to review practical insurance options and return with final language.
The ordinance changes modify definitions to include four‑wheeled "mega‑cycle" vehicles and add state vehicle‑code references for insurance and noise limits. Staff said the existing municipal code included a $10 million umbrella requirement that operators do not hold and that at least one standard insurer said the $10 million threshold is effectively unattainable for current operators. The staff recommendation replaces the $10 million umbrella with language consistent with state minimums while staff researches practical alternatives.
Why it matters: Several operators of multi‑passenger "party bike" or "mega cycle" vehicles have operated without permits in recent years. City leaders said they want a permitting framework that protects riders, passengers and the public without imposing requirements that operators cannot meet. Council directed staff to confirm whether a $1 million umbrella combined with a $1 million general liability is a workable option, and to explore an arrangement that might allow the city to provide umbrella coverage at negotiated additional premium if that proves more practical.
Staff presentation and discussion: Veronica Goodhart, director of special program compliance, reviewed the change proposals and noted state vehicle code references that set a $1 million general‑liability minimum and a $500,000 umbrella minimum. After public comment from operators and from four‑wheel “mega cycle” owners who said insurers will not write the 10‑million policy, city risk and procurement staff reported that a 1‑plus‑1 million approach (a $1 million general policy plus a $1 million umbrella) may be more practical than the higher amount currently in the code.
Council direction and next steps: Council asked staff to bring back a revised ordinance and to continue outreach with operators and insurers. Possible follow‑up items discussed included (a) using city umbrella coverage and charging operators a premium for inclusion, (b) adopting a $1 million general liability plus $1 million umbrella requirement if that is achievable by the operators, or (c) retaining the state code minimum but adding clearer implementation steps and timelines. The council accepted staff’s direction and asked for a return to council with firm options.
Ending: The item will return for final ordinance adoption after staff completes insurer outreach and drafts final insurance language for council consideration.
