Residents of San Marcos may have new transportation options in the coming months. San Marcos City Council directed staff to move forward with crafting regulations for transportation networking companies, or TNCs, such as Uber and Lyft, which connect passengers with drivers using websites, apps or social media. San Marcos Police Chief Chase Stapp said he believes Uber and Lyft are both operating within the city of San Marcos, although he is unsure of what level of service they are providing. Both companies have inquired with city officials about how they can operate legally within the city, Stapp said. "If you took a very strict reading of an ordinance you could make a case that they are taking people from point A to point B for money, and they haven't applied for a franchise permit or an operating permit, so yes, you could [say they have been operating illegally]," Stapp said. "The difficulty is with their business model, the way the ordinance is worded, it doesn't really apply to their business model." Potential regulations include restrictions on the age of vehicles used by Uber and Lyft drivers as well as background checks and insurance coverage required for drivers. Councilman John Thomaides said he believes existing regulations enforced by TNCs, which often require drivers to have commercial autoinsurance and require background checks before hiring, are strict enough. Council members agreed TNCs could provide a valuable service to the city. "When have people been using this service? It's usually late at night, people have been using alcohol, and I want them using this service," Thomaides said. Councilman Jude Prather said he hoped that if the city chose to regulate TNCs,  they would be similar to regulations for taxicab companies to ensure an even playing field for both business models. According to city officials, Aloha Taxi is the only taxicab company currently in operation in the city of San Marcos. Currently taxis must pay a $200 annual franchise fee in addition to $20 per car in operation. Stapp said after reviewing the city's regulations regarding taxi rates, he believes San Marcos' rules are not equitable compared to other cities' rules. "I want to make sure that for the taxicab company that has been here and has served our community, that were fair to them," Councilwoman Jane Hughson said. "I think we need to make sure that they're still able to work." City Council directed staff to move forward with regulations that would be equitable for taxi services and TNCs. Proposed regulationswill be brought back to council at a future meeting, Stapp said.