City outlines revisions to vehicle-for-hire rules, proposes two-tier franchise system

City staff presented a multi-month review of the city’s vehicle-for-hire and franchise rules at the April 9, 2025 meeting and proposed a set of recommendations to be drafted into ordinance changes for first reading in July.

Assistant City Manager Ruben Franklin told the commission the review included an existing-conditions analysis, stakeholder interviews with current operators, and input from the police and mobility consultants. "The historic district is experiencing a surge in popularity among visitors and new residents, resulting in significant congestion issues," Franklin said, summarizing staff findings.

Major recommendations staff outlined include establishing a two-tier franchise system: a capped Tier 1 for large sightseeing franchises (Old Town Trolley, Red Train) limited to two franchises, and a Tier 2 for small-vehicle franchises (golf-cart-style vehicles and low-speed vehicles) limited to 15 franchise operators with up to two vehicles operating per franchise. Staff also recommended that any operator whose business model includes tours or sightseeing be required to hold a franchise, reserving larger passenger buses for public transit. The draft also calls for designated shared curbspace for franchise loading/unloading, improved curbside enforcement, better signage and wayfinding, updated permit processes and a communications plan for operators.

Commissioners asked about rideshare pick-up and drop-off management; Franklin said staff had a call with Uber to establish geofencing that would keep Uber vehicles off the historic district periphery and direct pick-ups to designated hubs. Franklin said a pilot geofence with Uber might be launched in June and that staff had not yet reached an agreement with Lyft but planned to pursue it.

Questions from commissioners covered pedicabs, insurance thresholds and enforcement options. Franklin said the review found the current state-minimum insurance requirement for many vehicle-for-hire operators is inadequate and that franchise insurance levels are higher; staff suggested revising insurance requirements to better match risk. The consultant suggested improved signage and designated loading zones and the city plans to coordinate those changes with stakeholders before drafting ordinance language.

Staff will return with redlined ordinance changes and implementation details; commissioners asked for continued stakeholder engagement and indicated support for a measured roll-out, with enforcement tools and clear communication to operators in advance of effective dates.