Ordinance No. 21-07 CITY OF TIGARD, OREGON
TIGARD CITY COUNCIL
ORDINANCE NO. 21-07
AN ORDINANCE ADOPTING TIGARD MUNICIPAL CODE CHAP 1'ER 5.24 RELATED TO
TRANSPORTATION NETWORK COMPANY(TNC) POLICY.W,M_`j 4�lg.4lied eA4Ati{f
WHEREAS,Tigard's 2020-2025 Strategic Plan identifies actions to, "Routinely collect and report relevant data"
(1.2.a), "Apply an equity lens to evaluate proposed solutions" (1.2.c), "Fully implement the City's Complete
Streets policy" (3.1.d), and to "Ensure transportation investments and improvements are providing equitable
benefits and impacts to the entire population" (3.3.d);and
WHEREAS,it is in the public interest, for the City to create a Transportation Network Company(INC) policy
to address both public safety and traffic safety concerns related to the use of public roadways by TNC drivers;
and
WHEREAS,the City of Tigard has collaborated with the City of Portland and other metro-area cities to create
a comprehensive system of TNC regulations;and
WHEREAS, representatives from the City provided Transportation Network Companies (TNC) an
opportunity to review and provide feedback on proposed Tigard Municipal Code section 5.24.
NOW,THEREFORE,THE CITY OF TIGARD ORDAINS AS FOLLOWS:
SECTION 1: Tigard Municipal Code 5.24 is adopted as shown on the attached Exhibit A.
SECTION 2: If any provision of this ordinance or the application thereof to any person or circumstance
is held invalid, such invalidity does not affect the other provisions or applications of the
ordinance which can be given effect without the invalid provision or application, and to this
end the provisions of this ordinance are severable.This City Council hereby declares that it
would have adopted this ordinance irrespective of the invalidity of any particular portion
thereof and intends that the invalid portions should be severed and the balance of the
ordinance be enforced.
SECTION 3: This ordinance shall be effective 30 days after its passage by the council, signature by the
mayor,and posting by the city recorder.
PASSED: By U1M'4-t'!?ZGLf.Q.— vote of all council members present after being read by number
and title only, this 02 Nbday of -294e24 .2021.
Carol A. Kroger,City Record&
ORDINANCE No.21-Q 7
Page 1
APPROVED: By Tigard City Council this 2°-1 day of -Mai ,2021.
Approved as to form: Jason B.Snider,Mayor
City Attorney
3/3/2021
Date
ORDINANCE No.21-O?
Page 2
Chapter 5.24
TRANSPORTATION NETWORK COMPANIES
Sections:
5.24.010 Purpose.
5.24.020 Definitions.
5.24.030 TNC Permit Required; Fees.
5.24.040 Certification Requirements.
5.24.050 TNC Certification Requirements.
5.24.060 TNC Insurance Requirements.
5.24.070 TNC Operating Requirements; Prohibitions.
5.24.080 TNC Accessible Service Requirements.
5.24.090 TNC Driver Certification Requirements.
5.24.100 TNC Driver Conduct and Operating Requirements.
5.24.110 TNC Vehicle Requirements.
5.24.120 Intergovernmental Agreement; Effect of Local Regulations.
5.24.130 Enforcement.
5.24.010 Purpose.
The City Council of the City of Tigard finds and declares that the purpose of this chapter is to promote
the safety and welfare of the general public by regulating Transportation Network Companies and their
drivers within the City, as authorized by ORS 221.485 and 221.495.Nothing contained in this chapter
is intended or may be construed to create any liability on the part of the City,its officers, or employees
for any injury or damage related to any provision of this chapter, or by reason or in consequence of any
act or omission in connection with the implementation or enforcement of this chapter on the part of the
City,its officers,or employees.
5.24.020 Definitions.
"City"means the City of Tigard, Oregon.
"Transportation Network Company(TNC)"means any entity or organization,whether a corporation,
partnership, or sole proprietor,that connects passengers with affiliated TNC drivers and TNC vehicles
through an Internet-based digital or software platform/application operated by the TNC.
"Transportation Network Company(TNC)Driver"means any individual operating a private for-hire
transportation vehicle who connects with passengers through an Internet-based digital or software
platform/application operated by an affiliated TNC.
"Transportation Network Company(TNC) Services"means any private for-hire transportation offered
or provided to passengers for compensation by a TNC driver and TNC vehicle on behalf of or by an
affiliated TNC.
"Transportation Network Company(TNC)Vehicle"means any vehicle driven by a TNC driver to offer
and/or provide TNC services.
Exhibit A- 1
5.24.030 TNC Permit Required; Fees.
(1) A transportation network company providing services in the City of Tigard is required to obtain
a permit.The City or its designee will certify that all affiliated TNC vehicles and TNC drivers have met
all certification and operating requirements. No TNC may conduct business in the City without a valid,
current permit issued by the City or its designee.
(2) Permit Fee. A TNC must pay the City a 500 fee per trip originating within the City of Tigard.
Revenue generated by fees shall be restricted to City service areas impacted by the operation of TNCs
or involved in the regulation and administration of TNC policy including public safety,transportation
planning,transportation engineering,transportation capital improvements, and code enforcement;
wheelchair accessible vehicle and electric vehicle infrastructure programs; and for costs of
administering the program.
(3) Permit Issuance.The City or its designee will not issue permit to a TNC until all applicable
surcharges,fees, civil penalties, and fines have been paid.
5.24.040 Certification Requirements.
(1) TNC Company Certification Requirements.No person or entity may conduct business as a
TNC in the City of Tigard without certification by the City or its designee. TNCs not meeting all
required standards, conditions and operating requirements will not be certified as a TNC,may not be
issued a permit, and may not operate as a TNC.
(2) TNC Driver Certification Requirements.No person or entity may conduct business as a TNC
Driver in the City of Tigard without certification by the City or its designee prior to being activated on
the affiliated TNC platform.Drivers not meeting all required standards,conditions,conduct and
operating requirements will not be certified as a TNC Driver and may not operate as a TNC Driver.
(3) TNC Vehicle Certification Requirements.No vehicle is allowed to operate as a TNC Vehicle in
the City of Tigard without certification by the City or its designee prior to being activated on the
affiliated TNC platform. Vehicles not meeting all required standards,conditions and operating
requirements will not be certified as TNC vehicle and may not operate as a TNC Vehicle.
5.24.050 TNC Certification Requirements.
(1) Application.An applicant for a TNC permit must annually submit to the City or its designee an
application on a form approved by the City. The information requested must comply with Portland
City Code Chapter 16.40.210 as adopted and hereafter amended.
(2)Compliance with Secretary of State's Rules.No permit will be issued unless the company is
validly registered with the Secretary of State,including all assumed business names.
(3) Insurance.All TNC permit holders must comply with TNC insurance requirements pursuant to
Section 5.24.060.All TNCs must file a certificate of liability and applicable endorsements with the
City that evidences insurance coverage and terms that are in compliance with the requirements.
(4) Review Process. After receiving a completed TNC application form and upon successful
completion of all applicable requirements,the City or its designee will review the application to make a
recommendation for approval or denial.
Exhibit A- 2
(5) Application Approval.Upon approval, a TNC permit may be issued and will be valid for a
period of up to one(1)year from the date of approval.
(6) Application Denial. An application will be denied for any of the reasons set forth in Portland
City Code 16.40.210 as adopted and hereafter amended.
(7) Denial Appeal.If the application is denied,the applicant TNC may appeal the decision in
accordance with Portland City Code 16.40.210 as adopted and hereafter amended.
(8) Providing TNC Services.TNC Services may be provided only by a permitted TNC.
(9) Right to a Permit.The TNC's ability to satisfy the criteria for a TNC permit does not create a
right to a TNC permit.
(10) Transferring Permits.Transferring or sale of permits is prohibited.
(11) Removal of TNC Drivers and TNC Vehicles from Affiliated TNC Platform.Each day, a TNC
will provide to the City or its designee notification of affiliated TNC Drivers and TNC Vehicles that
have been permanently deactivated from the TNC platform or prohibited from providing TNC services
by the affiliated TNC.
5.24.060 TNC Insurance Requirements.
(1) TNC Service Periods Defined. In order to provide protection to the public,the TNC will
provide the levels of insurance as required by this section. TNC Service is defined by three distinct
periods:
(a) Period 1: The TNC Driver has logged into the app. The app is open and the driver is waiting
for a match.
(b)Period 2: A passenger match has been accepted,the passenger is not yet picked up (i.e.,the
driver is on their way to pick up the passenger).
(c) Period 3: The passenger is in the vehicle and until the passenger exits the vehicle at the
destination.
(2) Providing TNC Services. All periods of TNC Service must be covered by a general commercial
liability and primary automobile insurance policy provided by the TNC,the TNC Driver, or a
combination of both. Evidence of TNC insurance requirements must be received and approved by the
City or designee prior to a TNC receiving a TNC permit.
(3) Additional Insured and Notification of Policy Changes.The TNC will provide certificates of
insurance naming the City of Tigard,its officers,agents,and employees as an additional insured party
and give at least thirty(30)calendar days' notice to the City or its designee before a policy is canceled,
expires, or has a reduction in coverage. Insurance coverage requirements include commercial general
liability,primary commercial vehicle insurance,worker's compensation and employer's liability
insurance(as required by state law).
(4) Ensuring Driver and Vehicle Insurance.TNC Drivers are responsible for ensuring appropriate
personal motor vehicle liability insurance required by state law.
Exhibit A-3
(5) Required Insurance.TNC permit holders will secure and maintain a commercial general
liability policy for covered claims arising out of,but not limited to,bodily injury and property damage,
in the course of the permit holder's work under a INC permit and automobile insurance. The
required automobile liability policy must specifically recognize the driver's provision of TNC services
or other for hire transportation and comply with the mandatory laws of the State of Oregon or other
applicable governing bodies.In addition, all insurance coverages,policies,conditions, and
requirements will comply with the provisions of Portland City Code Chapter 16.40.230 as adopted and
hereafter amended.
(6) Certification of Auto Insurance. TNCs must provide proof of current,valid insurance for City
certification covering all affiliated TNC Drivers and Vehicles operating for such company and
satisfying the minimum requirements of Periods 1, 2 and 3 in the event the insurance maintained by the
driver has lapsed or does not provide the required coverage.
(7) Continuous and Uninterrupted Coverage. The permit holder must maintain continuous,
uninterrupted coverage for the duration of the permit.Any lapse in insurance coverage, even if it is
later backdated by the insurance company, is subject to a civil penalty or permit cancellation.
5.24.070 TNC Operating Requirements; Prohibitions.
(1) Minimum Standards of Service.A permitted TNC must comply with the minimum standards
set forth by the City which include but are not limited to:
(a) A TNC app in operation 24 hours each day capable of providing reasonably prompt service
in response to requests. It is a rebuttable presumption that any time beyond thirty(30)minutes from
the moment the passenger requests a ride using the TNC application, is unreasonable.
(b) Acceptance of any request for TNC Service received from any location within the City
including requests made by persons with disabilities and requests for wheelchair-accessible service
pursuant to TMC 5.24.080.
(c) The TNC app used to connect drivers to riders must display an accurate picture of the TNC
Driver and a picture or description of the type of TNC Vehicle, as well as the license plate number
of the TNC Vehicle.
(2) Drug,Alcohol and Discrimination Policy.
(a) Zero Tolerance for Drug and Alcohol Use and Discrimination. All permitted companies will
employ at all times a zero-tolerance policy for intoxicants.
(b) Zero-Tolerance for Discrimination.All permitted companies will adopt a policy that, at a
minimum,prohibits drivers and employees from engaging in discrimination,to include making
derogatory comments, on the basis of a person's race,religion,national origin, disability, sexual
orientation, sex,marital status, gender identity, age, or any other characteristic protected under
applicable local, state, or federal law. This policy must comply with Portland City Code Chapter
16.40.240 as adopted and hereafter amended.
(3) Limitation or Prohibition on Dynamic Pricing.The City may limit or prohibit dynamic pricing
by any TNC or TNC Driver during a State of Emergency, as declared pursuant to TMC 7.74.
Exhibit A-4
(4) Agent of Service Requirements.TNCs will maintain,during all times when the TNC permit is
valid, a locally based agent of service,with regular hours of business during weekdays. TNCs will
comply with all operational requirements, including prohibitions and data reporting,as set forth in
Portland City Code 16.40.240 as adopted and hereafter amended.
(5) The TNC must notify the City of a known data security breach in the same manner as provided
in ORS 646A.600 to ORS 646A.628.
5.24.080 TNC Accessible Service Requirements.
TNCs will provide reasonable accommodations to passengers with disabilities,including to passengers
accompanied by a service animal,passengers with hearing and visual impairments, and passengers with
mobility devices as provided by Portland City Code 16.40.290 as adopted and hereafter amended.
5.24.090 TNC Driver Certification Requirements.
The TNC will provide a daily list of applicant drivers affiliated with the permitted TNC for
certification by the City or its designee.Certifications for TNC Drivers provided by a TNC shall be
valid for 1 year from the date of the initial certification. Such requirements and certification process
are set forth in Portland City Code 16.40.270 as adopted and hereafter amended.
5.24.100 TNC Driver Conduct and Operating Requirements.
(1) TNC Drivers must comply with the conduct and operating requirements of Portland City Code
16.40.280 as adopted and hereafter amended.
(2) Mandatory Compliance.TNC Drivers must submit to compliance audits and enforcement
actions upon request by the City or its designee, any authorized city personnel, or law enforcement
officers.
5.24.110 TNC Vehicle Requirements.
(1) TNC vehicles must comply with the certification requirements of Portland City Code 16.40.250
as adopted and hereafter amended.
(2) TNC vehicles must comply with the vehicle operating requirements of Portland City Code
16.40.260 as adopted and hereafter amended.
5.24.120 Intergovernmental Agreement; Effect of Local Regulations
(1) The City may enter into an intergovernmental agreement(IGA)with the City of Portland
(Portland)to perform any of the functions,tasks,and services necessary to carry out the provisions
authorized by this chapter, either in full or in part. The terms of that agreement may not be construed as
repealing any provision of this chapter.
(a) TNCs operating in the City will provide Portland all required ride data and driver
information necessary to successfully certify and recertify City TNC drivers and issue TNC
Company permits,TNC Driver and TNC Vehicle Certifications in conformance with Portland City
Code 16.40, as adopted and hereafter amended. The City will receive ride data and driver
information from Portland only as the data and information pertains to operations in Tigard
pursuant to applicable data sharine agreement.
Exhibit A-5
(b) The City will recognize all existing TNC Drivers permitted to operate in Portland as
permitted drivers, adopt the current dates for TNC driver certification and background check
compliance for each permitted Portland TNC driver, and adopt the current permit status for each
permitted TNC Company.
(c)The City will recognize all existing INC Vehicles permitted to operate in Portland as
permitted vehicles, adopt the current dates for TNC Vehicle certification, and adopt permit status
for each permitted TNC Vehicle.
(d)The City will recognize all TNC Companies permitted to operate in Portland as permitted
TNC Companies, adopt the current dates for the TNC Company certificate,and adopt permit status
for each permitted TNC Company.
(ed)TNC Companies,TNC Drivers,and TNC Vehicles certified and recertified by Portland
after the effective date of this chapter will be issued a permit authorizing the TNC Driver,TNC
Vehicle,and TNC Company to operate in the City so long as all applicable standards, conditions
and operating requirements continue to be met.
(2) A TNC Company that complies with the standards, conditions, and operating requirements set
out in Portland City Code 16.40, as adopted and hereafter amended,will be deemed to be in
compliance with the equivalent City provision set out in this article.
5.24.130 Enforcement.
Violation of this chapter is a Class 1 civil infraction.
Exhibit A-6