Uber gets green light in Des Moines

Uber received a long-anticipated green light to legally operate on Des Moines streets Monday.

The City Council approved new regulations that have been a source of controversy since late last year.

Council members voiced relief and some surprise after the final reading of a simplified vehicle-for-hire ordinance that will apply to all taxi, limo and app-based ride-sharing services in the city.

The city's legal staff took a long road with numerous ordinance drafts to get there, said City Attorney Jeff Lester, who aptly described a resounding sentiment for council members and company officials Monday.

"You have something that maybe nobody's happy with, but everybody can live with," he said, citing a colleague's standard for good, fair government.

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Councilman Chris Coleman celebrated the reduction from nearly 40 pages to 17 of the new vehicle-for-hire ordinance.

The following provisions will take effect the end of this month:

The city of Des Moines will no longer issue taxi or limo driver's licenses, limit the number of vehicles operating each month or set the fare for these transportation services.

Each transportation-for-hire operation must receive a company certificate to operate.

Each company is responsible to obtain third-party background checks regarding criminal, driving and sex-offender history for each driver.

Each vehicle must receive a quarterly inspection and feature a decal located outside or in the bottom right corner of the passenger window.

The city may audit each company for driver information and proof of background checks.

Each driver must operate with a state-issued Class D chauffeur license.

Each company must provide some level of liability insurance for operations of vehicles at all times.

Failure to comply with any part of the ordinance is subject to a misdemeanor charge of $500, or more for repeat offenses.

Officials from both Uber and Trans Iowa, the city's primary taxi provider running Capitol and Yellow cabs, thanked city leaders for their commitment to adjusting the new ordinance, with plenty of preferences and bearable compromises for each party.

"While there are some things we still take issue with," said Pooneet Kant, general manager of Uber Iowa, "I think this does create a framework that will establish a permanent home for companies with this business model here in Des Moines."

Kant said primary concessions for Uber include requirements for quarterly vehicles inspections, decals and Class D chauffeur license. The new ordinance grants Uber's requests that drivers' names and contact information be withheld from city records.

Bill Lillis, legal counsel for Trans Iowa, said he maintains concerns about insurance coverage.

The new ordinance accepts Uber's policy that offers scaled-back liability insurance coverage ($50,000) while drivers wait with the app open for someone to hail a ride.

The latest draft also added some recommendations from Lillis, like a five-vehicle minimum requirement for all certified transportation companies.

"It's been a process that the cab companies have appreciated," Lillis said.

Two limousines drivers spoke Monday night and expressed continued frustration with Uber and its unlawful arrival in Des Moines.

"Something smells a little fishy here and starts to stink," said Scott Woodruff, a longtime limo driver in Des Moines.

"Uber wants to own the world yet take no responsibility for it."