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Council hears proposed three‑tier license fees for transportation network companies
Summary
City staff proposed a three‑tier licensing fee for transportation‑network companies based on driver counts to support enhanced enforcement and compliance checks; the council laid the item over for a public hearing and staff will return with enforcement details.
The council received a staff report from Dan Nigelic of the Department of Safety Inspections proposing a three‑tier license fee schedule for transportation network companies (TNCs). The tiers are based on driver counts: TNCs with 300 or fewer drivers (lowest tier), those with 301–1,000 drivers (middle tier) and those with more than 1,000 drivers (top tier). Nigelic said the proposed fees are roughly $5,000 for the lowest tier, $11,000 for the middle tier and $18,000 for the top tier and that the model is intended to recover a portion of enforcement costs while limiting driver disruption during random vehicle and background checks.
Nigelic said enforcement will include proportionate criminal background checks and vehicle inspections and that staff plans to perform random, on‑platform ride requests rather than relying solely on provider driver lists. Council members asked how the fees compare to neighboring jurisdictions; Nigelic said the top tier exceeds Minneapolis’s single tier but the middle tier aligns the city to a midrange policy.
Council laid the ordinance over to Feb. 25 for a public hearing; enforcement details will be presented in a follow‑up ordinance and staff report. Council members complimented staff and industry engagement and asked for continued outreach ahead of the hearing.
Next steps: public hearing on Feb. 25; staff to return with enforcement procedures and comparative fee analysis.
