The following story talks about how the Chico California police department and city council are affecting it’s pedicab industry. Liability insurance is one concern raised, but mostly they are seeking to regulate the industry in basic ways that are standard in Austin.


This story appears at the following link:
http://www.chicoer.com/news/ci_7132309

Liability insurance could spell death for pedicabs
By JENN KLEIN - Staff Writer
Article Launched: 10/10/2007 12:00:00 AM PDT


It’s a hard ride in Greg Degouveia’s line of business. As manager of Chico Pedicab, Degouveia said pulling the pedicabs that carry pedestrians in downtown Chico is difficult in two ways. It’s demanding physically — imagine trying to start and stop at multiple stop signs with a heavy load — and psychologically trying, because of the number of drunks the drivers have to handle.


He said the job is so demanding, most of those who rent pedicabs from him do it one night only.


Plus, there’s now a safety component to operating a bike taxi. Police Chief Bruce Hagerty said in the past 13 months there were two significant collisions involving pedicabs, although neither was the pedicab driver’s fault. Neither collision involved Chico Pedicab.


With enhancing safety in mind, the City Council directed Hagerty to look into ways the city could regulate pedicabs, including the possibility of requiring them to have liability insurance like taxis in the city do. But Hagerty said Tuesday requiring liability insurance would be so expensive, it would likely put the bike taxis out of business.


“The bottom line is pedicabs add a certain ambiance to Chico and I do think they add a service to the pedestrian. … I don’t want to regulate them out of business,” Hagerty said.


But the police chief said he does want some regulation to make sure those riding in the pedal-powered vehicles are safe. He suggests the city regulate the pedicab bikes for safety issues, such as making sure the bikes have enough lighting, and regulate the drivers to their knowledge of the road. That would likely involve a requirement that the cyclist has a driver’s license and a permit. He said it’s the belief of the City Attorney’s Office that those regulations would not mean pedicabbers have to have liability insurance.


Hagerty said if drivers have a permit, the Police Department would be able to check their record so officers can know who is operating pedicabs in Chico. That way, someone more unsavory couldn’t use the guise of a pedicab to take advantage of people who are under the influence, he said.


Degouveia already requires those who rent bikes from Chico Pedicab to have a driver’s license. He said he also shows them how to ride the bike and then requires them to sign a release form. He said if he were to include liability insurance, it would cost him around $18,000 a year to insure 14 pedicabs. His business only nets $10,000 to $12,000 a year, he said.


Chico Pedicab is the largest pedicab business in town, but there are many smaller organizations, including some riders who own their own pedicabs.


The question of how to regulate the cabs went before the City Council’s Internal Affairs subcommittee Tuesday morning, but the committee — minus one of its three councilors — didn’t reach a consensus.


Vice Mayor Ann Schwab believed the city should regulate the pedicab equipment to make sure it’s safe, rather than regulating the cyclists. But City Councilor Tom Nickell said the city should require a pedicab driver to have a driver’s license as well as a pedicab permit. Neither supported the idea of liability insurance.


The lack of consensus means a split recommendation will go before the City Council.


Staff writer Jenn Klein can be reached at 896-7767 or jklein@chicoer.com.