Sec. 20-14. - Required.

No taxicab or limousine, or for-hire vehicle as defined in this chapter shall be operated upon the streets of the town except pursuant to a franchise granted by the manager.

(Ord. No. 86-5-12/O-2, § 1)

Sec. 20-15. - Written application required.

The applicant for a franchise under this article shall file a written application with the town for a franchise to operate a taxicab or limousine business.

(Ord. No. 86-5-12/O-2, § 1)

Sec. 20-16. - Filing applications; contents of same.

No franchise shall be issued to any person until and unless such person shall have made and filed with the town manager an application, signed and sworn to before a notary public or other officer authorized to administer oaths, on application forms provided by the town. The sworn application for such franchise or renewal thereof shall contain the following information:

(a)

Whether the application is for a new franchise or an amendment to a previously issued franchise.

(b)

The name(s) and address(es) of the person or persons applying for the franchise; and, if the applicant is a corporation, a certified copy of the articles of incorporation, a list of the names and addresses of all individuals who hold or are contemplated to hold more than five (5) per cent interest, either beneficially or legally, in the corporation, and the name of the administrative head of the taxicab or limousine operation.

(c)

The number of vehicles proposed to be operated.

(d)

A description including the make, type, year of manufacture, passenger capacity, and vehicle identification number of any and all vehicles actually owned by the applicant on the date of application and proposed to be operated.

(e)

The name under which the business will operate.

(f)

The color scheme proposed to be used to identify vehicles under this franchise.

(g)

The experience of the applicant in the transportation of passengers for hire.

(h)

The location of proposed offices, taxi stands, dispatching stations, garages, or other facilities to be used in connection with the taxicab or limousine business.

(i)

A statement that the applicant(s) has (have) read and will comply with the provisions of the town's taxi and limousine ordinance.

The applicant shall furnish the manager such other information as the manager may reasonably require in considering the application.

(Ord. No. 86-5-12/O-2, § 1)

Sec. 20-17. - Liability insurance required.

It shall be unlawful for any person engaged in the business of transporting passengers for hire over the public streets of the town to operate any taxicab, limousine, or for-hire vehicles (except those operated under the jurisdiction of the utilities commission of the state), without furnishing and keeping in effect for each taxicab, limousine, or for-hire vehicle, a policy of insurance or surety bonds with sureties whose solvency shall at all times be subject to the approval of the town manager, said policy of insurance or surety bonds to be conditioned on such operator responding in damages for any legal liability incurred on account of any injury to persons or damage to property resulting from the operation of such taxicab, limousine, or for-hire vehicle, upon the streets of the town in the following amounts, viz.:

For injury to one person in case of one accident .....$25,000.00

For injury to more than one person in one accident .....50,000.00

For property damage in one accident .....10,000.00

or such greater amounts as may be required by state or federal law or regulation. Proof of insurance shall be filed with the town manager as a condition precedent to the operation of any such motor vehicle under a Town of Chapel Hill franchise.

(Ord. No. 86-5-12/O-2, § 1)

Sec. 20-18. - Procedure and criteria for approving applications for taxicab franchises.

After giving due consideration to the information set forth on the application and such other competent, relevant and material information and evidence as may be presented by interested parties, the manager may authorize the issuance of a franchise to the applicant and may make it subject to reasonable conditions relating to operational standards or conditions. The franchise application shall be denied if the manager finds that:

(a)

The applicant has not complied with all the provisions of this article;

(b)

The criminal record of the applicant (or of the officers, directors, supervisory employees, or corporate applicant, if any) is such that it would be against the public interest and welfare for such an application to be granted.

(Ord. No. 86-5-12/O-2, § 1; Ord. No. 89-4-10/O-2, § 1)

Sec. 20-19. - Securing permission for additional vehicles.

Any time that additional vehicles are proposed to be used in connection with any taxicab or limousine business over and above the number listed in the franchise, the franchisee must file an application for an amendment to the franchise with the town. The application for an amendment to the franchise shall be submitted to the manager and shall contain information as required in the section 20-16 and any other information as may reasonably be requested by the manager.

The manager shall review the information set forth on the application and shall take action on the application based on the criteria listed in section 20-18.

(Ord. No. 86-5-12/O-2, § 1)

Sec. 20-20. - Franchise certificate.

The franchise certificate shall contain the name and address of the owner to whom it is granted; the name of the business; the number and kind of vehicles which are authorized by the franchise; and a statement that the permit is issued subject to full compliance with the provisions of this chapter and all other ordinances and laws governing the operation of taxicabs and limousines in the town, and is subject to revocation as provided by this chapter. Each franchise certificate shall be signed by the manager or his designee.

(Ord. No. 86-5-12/O-2, § 1)

Sec. 20-21. - Expiration of franchises.

Subject to the provisions of this article, a franchise shall be perpetual in nature and shall not expire so long as the owner of said taxicab or limousine service renews a privilege license for his business by October 1st of each year. In the event the owner of said taxicab or limousine franchise fails to keep a privilege license in effect for his business, the franchise shall be automatically rendered null and void.

(Ord. No. 86-5-12/O-2, § 1)

Sec. 20-22. - Assignment or transfer.

No franchise granted and issued under this article shall be assigned or transferred.

(Ord. No. 86-5-12/O-2, § 1)

Sec. 20-23. - Revocation upon change of ownership; issuance to new owner.

Change of beneficial or legal ownership of any taxicab or limousine business shall automatically render null and void any franchise previously granted. Any transferee of any such taxicab or limousine business shall not operate taxicabs or limousines until such transferee has applied for, and has been granted, a franchise in the manner provided by in this article. For the purposes of this article, a change of ownership shall be deemed to occur whenever an actual change in control of the taxicab or limousine business takes place, whether by gift, sale, lease, or otherwise. In the case of a partnership or corporate ownership, a change in control is deemed to have taken place when cumulatively twenty-five (25) per cent or more of ownership interest is transferred. In the event of the death of a franchisee, the manager may issue temporary authorization for the operation of the franchise to be continued by the heirs or partners of the franchisee, while a new franchise application is prepared.

(Ord. No. 86-5-12/O-2, § 1)

Sec. 20-24. - Suspension and revocation—Causes, hearing.

A taxicab or limousine franchise shall be suspended or revoked by the manager if the manager determines that:

(a)

The owner has failed to operate the taxicab or limousine service in accordance with the provisions of this chapter;

(b)

The franchisee has failed to license properly with the state, in the correct and true owner's name, any taxicab or limousine covered by the franchise;

(c)

The holder of any franchise has made a false or misleading statement on his or her application.

No franchise shall be suspended or revoked unless and until at least thirty (30) days written notice of the time and place of hearing shall have been given to the holder of such permit and such hearing by and before the manager is duly held thereon.

The notice shall specify the grounds for the proposed suspension or revocation and shall state that the franchisee shall have the opportunity to appear at the hearing, present evidence and cross-examine witnesses against him or her.

(Ord. No. 86-5-12/O-2, § 1; Ord. No. 89-4-10/O-2, § 2)

Sec. 20-25. - Same—Surrender of permit; retiring vehicles from service.

Franchises which have been suspended, revoked or expired shall be surrendered to the town manager together with the corresponding vehicle permits, and the operation of any such taxicabs or limousines covered by the franchise shall cease.

(Ord. No. 86-5-12/O-2, § 1)

Sec. 20-26. - Issuance of vehicle permits.

For each vehicle covered under a franchise, a vehicle permit shall be issued in such form as the town manager may from time to time prescribe, such permit to be stored at all times in each vehicle for which issued, as provided in this article.

(Ord. No. 86-5-12/O-2, § 1)

Sec. 20-27. - Invalidation of vehicle permit upon failure to operate service.

Notwithstanding any of the above provisions, a vehicle permit shall become invalid if the franchisee fails to operate that taxicab or limousine in service in accord with the franchise within the corporate limits of Chapel Hill for a period of one-hundred twenty (120) or more days or fails to present such vehicle for inspection by the police department for two (2) consecutive inspection periods. Also, the vehicle permit will become invalid if the franchisee fails to include that vehicle in the renewal of his annual business license and pay the required fee for such vehicle.

(Ord. No. 86-5-12/O-2, § 1)

Sec. 20-28. - Transferring vehicle permits.

A franchisee may transfer a vehicle permit from one vehicle to another by returning the old permit to the town along with the necessary information for the new vehicle. The town shall issue a new vehicle permit within two (2) business days.

(Ord. No. 86-5-12/O-2, § 1)

Sec. 20-29. - Taxi and limousine franchises mutually exclusive.

Taxi franchises shall be issued separately from limousine franchises. No vehicle shall be listed and operated under a taxi franchise while listed as a vehicle under a limousine franchise.

(Ord. No. 86-5-12/O-2, § 1)

Sec. 20-30. - Reserved.