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largely because the City itself assumes substantial liability. The Police Department inspects the taxicabs, certifies the drivers, conducts drug testing on the drivers, and follows the drivers through the DMV Pull Program. Mr. Roush said with respect to any typical type of contract that the City enters into, one million dollars in general liability is standard. As the Police Chief indicated, Pleasanton is no different than other cities that require the same type of insurance for the taxicab companies. He noted that the insurance requirement of one million dollars is a policy issue that Council has and during his tenure with the City, Pleasanton has not been named in any law suits involving any taxicab companies, and no claims have been filed where the City had to tender to the taxicab companies. Ms. McGovern was concerned to hear that dispatchers are requiring taxicab drivers to tip them in order to provide them business. She was not certain that raising the rate would address the problem. The problem is there are too many taxicab companies or taxicabs in order to generate business. She noted that WHEELS and LAVTA have agreed to conduct a study on using taxicabs to transport paratransit customers because in the long run, it could be less costly than taking a paratransit bus to one location. If Council approves a rate increase to $2.50 before this study has been completed, she believed it would hurt the cost of the taxicab companies. She was not sure this was the right time to increase the rates or the right time to limit the number of taxicab companies operating within the City. Mr. Neal did not disagree with Ms. McGovern's concerns. He recalled discussing this same issue with a prior Council and it was Council's direction at that time to let the market regulate the taxicab industry. Staff and Council have discussed many times modifying the ordinance to come up with some form of restriction or a minimum number of taxicabs, similar to the City of Hayward's formula. Pleasanton is well served by the taxicab industry and the City finds itself in the benevolent regulator position of increasing the rates so that the drivers can make a living under the City's rules. The recommendation for the increase is to provide an average around the communities that serve BART. There is no objective from the Police Department to revisit the entire ordinance. Municipalities, including New York, regulate and create specific rates. He believed the City could regulate and negotiate flat rates for certain destinations for City services or even negotiate an independent business arrangement with taxicab operators that are serving Pleasanton as a client. Ms. McGovern believed Pleasanton had a senior population that uses taxicabs and on a fixed income, she did not know how many trips someone could take at $2.50 from the flag drop rate to the next mile. Mr. Sullivan pointed out that fuel costs have increased significantly since July 2003 and will increase in the future. He believed the taxicab industry is a marginal business and provides a needed service to the community. If the City is in a position to regulate the rates, the City should regulate the rates in such a way that the businesses could survive. On the surface, he believed the increase in fuel costs more than justify the rate increase and he would be supportive of it. Mr. Brozosky asked staff for its recommendation to regulate the number of taxicab companies operating within the City. Pleasanton City Council 25 02/21/06 Minutes