Elgin approves ride-share ordinance

Over the objections of the largest local cab company, Elgin implemented regulations for the ride-share industry and concluded a debate that started nearly six months ago.

City council members voted 7-2 Wednesday on a new ride-share ordinance largely based on state statute and made a few changes to its existing taxi ordinance. Councilmen John Prigge and Rich Dunne cast the dissenting votes.

Mirroring the state law that takes effect June 1, the local ordinance means ride-share drivers in Elgin will have to carry auto liability insurance of at least $50,000 for death and personal injury per person. Also, ride-share companies, such as Uber, Lyft and others, will have to carry $1 million liability insurance covering the period from when drivers log into the companies' networks until the ride or transaction is completed.

Elgin's new ordinance also tightens eligibility criteria for who can work as a taxi driver - such as excluding people with a criminal history - based on the state law's criteria for ride-share drivers.

"This creates an option for Elgin residents," Mayor David Kaptain said. "They can make the final decision."

The city should have solicited feedback from local taxi companies before crafting its new ordinance, said Naomi Hjelm of A#1 Cab Dispatch in South Elgin.

Her sister Jaime Hjelm, who owns A Taxicab Leasing Corp., had strongly advocated requiring ride-share drivers to carry commercial insurance, which city officials initially had considered.

"The city council wants to enforce new laws all the time, and it obviously doesn't care how it affects people," Naomi Hjelm said.

Ride-share companies will need an annual $500 license from the city, while taxi companies pay $50 per vehicle and $30 per driver yearly.

Several A#1 cabdrivers spoke, including Doreen Shaw, who said, "We're not against competition. We just want a level playing field."

Elgin can't push innovation away, Councilman Toby Shaw said, lest it risk changing its moniker from "The City in the Suburbs" to "The Old Village in the Woods."

Taxis get some breaks among the changes, such as approval for prearranged flat fees for trips longer than 20 miles and not being required to file their rates with the city if they post them on their websites or smartphone apps.

Council members asked that the new ride-share ordinance allow random audits of background checks conducted by ride-share companies on their drivers.

They also agreed to revisit a zoning ordinance that prohibits parking commercial vehicles, including taxis, on residential property.