After Watertown City Council received a letter from the Institute for Justice alleging that Watertown’s Taxi Ordinance was possibly unconstitutional, Watertown City Council approved a need-a-ride taxi license.
The action came during a special session of the city council on Wednesday.
During the regular city council meeting on December 6th, Need-a-Ride’s owner Debra Gagne was denied a taxi service license. The city found that it had violated the regulations of the taxi and transport network companies. According to the regulation, only a taxi company can accept cash payments and tips. Transportation network companies like Uber and Lyft cannot legally accept cash for payments or tips.
More: Outdated regulation, violation causes Watertown City Council to refuse a new taxi license
City officials said during the meeting that taxi regulations likely need to be revised.
Gagne holds a liquor license for liquor carriers in South Dakota, which allows her to carry passengers. There are no specific regulations in the city ordinances stating that they cannot accept cash as a transportation service with this license.
An alcohol transport license is required by people or companies who, for example, operate limousines or coaches and want to deliver or sell alcohol to passengers. The fee is $ 100 to the South Dakota Department of Treasury.
On December 20, Erica Smith, an attorney with the Institute for Justice, emailed Watertown City attorney Matt Roby. The Institute for Justice is a not-for-profit law firm based in Virginia.
“My organization, the Institute of Justice, believes that the city’s taxi licensing ordinance is an unconstitutional ‘certificate of necessity’ law and that the city has very likely violated Ms. Gagne’s rights,” the letter said City to allow Ms. Gagne to resume her Need-a-Ride service immediately. “
Now she can.
During the council’s special session, Roby informed the council that at the time of her first application, Gagne was not renewing her commercial license. However, he said it was reinstated on December 17th.
The commercial driver’s license was not mentioned as something that is required for a city taxi driver’s license during the December 6th session.
“I didn’t know the CDL was part of the problem,” Gagne told the Public Opinion. “I was still eligible to drive a utility vehicle in South Dakota, but I couldn’t drive across the border. You need to get a medical exam to be allowed to drive out of the state. “
Roby said he worked with the state to understand the statue regarding the liquor license of the bearers. He stated that the city ordinance requires that a taxi company be licensed by both the state and the city, and that the state license to carry passengers requires a commercial driver’s license.
Councilor Dan Schutte said at the meeting on Wednesday that it was his wish to pause the licensing process in order to address the shortcomings he believed linked with Gagne’s taxi license application.
“As a city, we want to create an environment that is successful and safe. During the last meeting there was some inconvenience and there was a desire to pause and just let this work out, ”said Schutte. “I didn’t want your business to close. I wanted to see if it would roll within the laws and regulations. As a city, we want an environment of integrity. “
The denial of the need-a-ride taxi license has been an issue for some in the community, although the only other taxi company in Watertown, Lake City Cab, is not renewing its license for 2022.
“We’ve been in business in Watertown for nearly 24 years. We’ve been trying to sell it for four years, ”said Kevin Siebrands, owner of Lake City Cab, of his business.
The last day in Lake City is December 31st.
The denial of the license also affected Gagne’s legal capacity. Although she previously drove for Lyft, she said she hadn’t worked for the company since the summer. After the December 6 meeting, she said she would continue to provide rides to residents of the Watertown area but would not charge them until the taxi license issue was resolved.
This burden on their business was also addressed in the letter from the Institute for Justice.
“After a hearing, the city refused to grant Ms. Gagne a license because the city council concluded that the city already had sufficient services. As a result, Ms. Gagne cannot accept cash for her services, effectively preventing her from legally running her business during her busiest time of year. Although Ms. Gagne has applied for a license again, it is likely that this license hearing will not take place until after New Years Day, ”the letter reads.
It turned out that this appointment came a little earlier.
Need-a-Ride currently has a vehicle that has been inspected and cleared for operation in Watertown. Gagne is expected to have two more vehicles inspected and completed four drivers with proper insurance and background checks as soon as possible.
Only Schütte voted against the Need-a-Ride taxi license application on Wednesday.
On December 6th they voted 4: 3 against the license. Council members Colin Paulsen, Dan Schutte and Glen Vilhauer and Mayor Ried Holien voted no. Council members Bruce Bühler, Michael Danforth and Randy Tupper voted yes.
The Institute of Justice welcomed the Council’s decision on Wednesday.
“I’m thrilled to be able to reopen Need-a-Ride,” Gagne said in a story the organization published online. “This business is a reliable means of transportation for people all over Watertown. This is fantastic news for my customers. “
To schedule a ride with Need-a-Ride call 605-303-4033.