San Marcos City Council voted April 7 to allow transportation networking companies, or TNCs, such as Uber and Lyft, to operate legally in the city.

The city's ordinance, which will not take effect until a second reading April 21, requires companies to report driver violations to the chief of police, and companies' license to operate could be revoked if good cause is shown. Surge pricing would also be prohibited during abnormal market disruptions such as natural disasters.

The police department will also be allowed random inspections of cabs to ensure meters are calibrated and the vehicles are in working order.

The ordinance also specifies what offenses taxi companies and TNCs must look for when conducting criminal background checks of applicants.

According to the ordinance, TNCs will be required to ensure their drivers have not been convicted within the past seven years of driving under the influence of drugs or alcohol, fraud, sexual offenses, use of a motor vehicle to commit a felony, a crime involving property damage, theft, acts of violence or acts of terror. Drivers must also not be registered in the National Sex Offender Registry database.

"We felt like [specifying which offenses to look for] was important to ensure public safety of cab riders in San Marcos," Police Chief Chase Stapp said.

The updated ordinance also increases the per mile fee taxi companies are allowed to charge from $2 to $2.50. The wait fee will increase from $15 per hour to $24. The annual fee taxi companies pay to the city in exchange for their operating permit is also being raised from $200 to $400.

Mayor Daniel Guerrero said the language in the city's ordinance could become a national standard for other communities considering allowing TNCs to operate within their borders. He praised city staff for working with TNCs and Aloha Taxi, the city's lone taxi company.

"I think that speaks volumes for our cooperation and leadership with law enforcement, the various TNCs that have expressed interest in being part of our community and legal as well," Guerrero said.

Ultimately council voted 6-1 to approve the ordinance. Councilman Shane Scott said although he is in favor of allowing TNCs to operate in the city, he does not believe it is fair for the city to regulate fares charged by taxi companies while allowing Uber and Lyft's fares to be determined based on demand.

The ordinance will take effect after final approval of the second reading at council's meeting April 21.