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HomeMy WebLinkAbout08/16/1994, 2 - RESCIND CERTIFICATE OF CONVENIENCE TO CCT TRUST FOR TAXI SERVICE iIUryAI�IIIn,IIIIIn�n.I�IN "J MEETING DATE: c� II W II Iln��� o san tins OBISPO Aust 16, 1994 COUNCIL AGENDA REPORT ITEM NUMBER: 02 FROM: Michael D. McCluskey, Director of Public Works 0 Prepared by: Harry Watson, Transit Manager SUBJECT: Rescind Certificate of Convenience to CCT Trust for Taxi Service CAO RECOMMENDATION: By resolution, rescind Resolution No. 8257 dated January 4, 1994, "Conditional Approval of Certificate of Convenience for Central Coast Taxi Trust (CCT Trust) DISCUSSION: Background CCT Trust, (dba Yellow Cab of Five Cities) purchased the Yellow Cab of Five Cities taxicab company in January 1993, from the former owner Mark Gieseke, who held the Certificate of Convenience in San Luis Obispo. As the Certificate is not transferable except by Council action, the trustor of CCT Trust, Mr. LaBossiere, made application for a new certificate and the Council granted conditional approval on January 4, 1994 (attachment 2). The Certificate was conditioned upon CCT Trust meeting all the provisions of San Luis Obispo Municipal Code (SLOMC) Chapter 5.20, including adequate insurance documents. A copy of the Certificate that was prepared but never issued is attached (attachment 3). Efforts to Attain Compliance Numerous efforts were made by staff to gain compliance with the insurance requirements contained in San Luis Obispo Municipal Code (SLOMC) 520270 by the applicant. Those efforts were met with deferrals, non-returned calls and generally ignored. Because CCT Trust had assumed the existing Yellow Cab of Five Cities business, they were allowed to continue operation while they obtained new insurance documents for CCT Trust as the new owners. Attachment 4 is staff correspondence documenting the effort to secure the necessary insurance documents. After several unsuccessful attempts, on April 15 the matter was turned over to the City Attorney's office. On May 11, 1994 telephone contact was made to Mr. Art Pelino, the operator of Five Cities, to force resolution on the missing insurance and an endorsement protecting the City as an additional insured. The City Attorney's Office was told it would take five to six weeks to secure the endorsement, but that a Certificate would be provided in the interim. The City received the Certificate on May 18, 1994. The Certificate simply stated that CCT Trust had applied for insurance meeting the City's requirements. On the basis of the Certification, staff trusted that CCT Trust was on its way to complying with the Municipal Code requirements. _� °1Np I�II���Ip ��Ill city of San WI S OBISPO UNCIL AGENDA REPORT age wo Approximately seven weeks later, on July 6, 1994, the City Attorney's Office attempted to follow up on the insurance endorsement, but Mr. Pelino did not return their calls. Direct contact was made with the insurance company that had issued the Certificate of Insurance. They informed staff that at least three separate insurance policies had been issued and subsequently cancelled for non-payment during the past six months. The most recent policy was cancelled on June 1, 1994 for non-payment. Thus it had become abundantly clear that CCT Trust could not, or would not, comply with the City's requirements. On July 7, 1994, a letter was sent demanding Five Cities Taxi to cease operation within the City limits because of their lack of adequate insurance (Attachment 5). This was.done to protect both the City and its residents. RECOMMENDATION: Upon enforcement, taxi service to the City of San Luis Obispo ceased. CCT Trust has failed to meet the necessary requirements of the SLOW and has therefore not met the conditions required by Resolution No. 8257. Staff therefore recommends rescinding that Resolution.. Assuming this action occurs, staff will immediately solicit other interested parties in providing this service to the City. Attachments: 1. Resolution 2. Resolution No. 8257 3. Copies of unissued Certificate 4. Correspondence 5. Letter re: Stop Operation 5etyresn RESOLUTION NO. (1994 Series) A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO RESCINDING THE CONDITIONAL APPROVAL OF CERTIFICATES OF CONVENIENCE FOR CCT TRUST (RESOLUTION NO. 8257 DATED JANUARY 4, 1994) WHEREAS, Central Coast Taxi Trust (CGT Trust) previously had applied for Certificate of Convenience with which to provide taxicab service in the City of San Luis Obispo; and WHEREAS, the Certificate of Convenience was Conditionally approved by Resolution No. 8257; and WHEREAS, CCT Trust failed to provide proper proof of insurance as mandated by Municipal Code number 5.20.270, and WHEREAS, adequate insurance is necessary to protect the citizens of San Luis Obispo, and WHEREAS, the Certificate of Convenience was not issued, NOW THEREFORE, BE IT RESOLVED that the City Council of the City of San Luis Obispo hereby Rescinds Resolution No.8257 dated January 4, 1994 thereby rescinding the conditionally approved Certificates of Convenience for CCT Trust (dba Yellow Cab of Five Cities. On motion of seconded by and on the following roll call vote: AYES: NOES: ABSENT: the foregoing resolution was-passed and adopted this, day of'. 1994. MAYOR PEG PINARD ATTEST- CTI'Y CLERIC DIANE R GLADWELL APPROVED: a RESOLUTION NO. 8257 (1994 Series) A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO GRANTING CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY TO CENTRAL COAST TAXI TRUST FOR THE PURPOSE OF PERMITTING TAXICAB SERVICE IN THE CITY OF SAN LUIS OBISPO WHEREAS, Central Coast Taxi Trust (CCTT) desires to provide taxicab service in the City of San Luis Obispo; and WHEREAS, CCTT . has filed an application for Certificate of Public Convenience and Necessity with the City Clerk's Office pursuant to Municipal Code Section 5.20. 030 (Exhibit "A" attached) ; and WHEREAS, the public convenience and necessity require . the granting of a Certificate of Public Convenience and Necessity, NOW THEREFORE, BE IT RESOLVED that the City Council of the City of San Luis Obispo hereby grants a Certificate of Public Convenience and Necessity to CCTT (dba Yellow Cab of Five Cities) for the purpose of permitting taxicab service in the City of San Luis Obispo pursuant to and I contingent upon compliance with < E>" Municipal Code Chapter 5.20, and authorizes the City Clerk to issue a taxicab permit for each taxicab now complying with Municipal Code Chapter 5.20 within the City. On motion of Settle , seconded by . Romero and on the following roll call vote: AYES: Council Members Settle, Romero, Rappa, and Mayor Pinard NOES: None ABS-=NT:` Council Member Roalman F. the foregoing resolution was passed and adopted this 4th day of January , 1994. R-8257 h /1- Resolution No. 8257 (1 Series) Page 2 MAYOR •G PINARD ATTEST: CjVt,k,RK DWE R.49LUWELL APPROVED: /Iy/ w1Qis� ATT, RN pI gcabav4m by F G%ty �• Attachment No. 3 * * TAXI PERMIT CA W • U ° city of san lues ompo IS O @� CERTIFICATE OF CONVENIENCE d NECESSITY 1. Dated: January 5, 1994 2. Name of Applicant: Central Coast Taxi Trust 3. Type of vehicle to be operated for taxi service: 1980 Ford 4. vehicle identification s: . 3FOO856 5. Taxicab permit authorized by Resolution No. 8257 (1994 Series) adopted by the City Council .on: 1/4/94 CITY OF SAN LUIS OBISPO Diane D. Gladwell, City Clerk Attachment No. 4 ( A" �� .� ►►�►�►III�Iiillllllll ►iii►►I I�Illlf IIII cityo sell l��s oBispo 955 Morro Street a San Luis Obispo, CA 93401 February 1, 1994 Mr. Art Pelino Mr. Larry Hill c/o CCT Trust 2255 S. Broadway #1 Santa Maria, CA 93454 Dear Mr. Pelino and Mr. Hill, I have been informed by our Clerk that your Certificates of Convenience are being held up due to our having expired insurance certificates on file. It is your responsibility to insure that the City always be in receipt of current insurance certificates, listing the City as Additional Insured. Your immediate attention is requested in this matter. Please call me at 781-7121 and inform me of when this situation will be corrected. ti Sincerely, yj, i Harry Watson 1 Transit Manager : SENDER: 31 • Complete items 1 and/or 2 for additional services.. I also wish to receive the 1 e • Complete items 3,and a&b. - following services (for an extra i • Prim Your name and address on the reverse of this form so that we can fee)' . o you. e. City Attorney ) > return Attr,this rf„tm to the horn of me mai1pbece.or on ne back if spats 1. ❑ Addressee's Address m City Clerk ) E does rwt permit..:.Write"Reaun . y j • The Retum Receipt wir ll Www to whom she ere was delivered and the duts2.w�❑ Restricted Delivery 0 e da�a+ad Constm postmaster for fee. m . 3. Article Addressed to: Article Number m Art Pelino r? 241 240 305 - E E Yellow Cab of Five Cities 4b. Service Type 1381 — 4th St. ❑ Begistered ❑ Insured o w Los Osos s CA93402 ertitied ❑ Coo Sw t++ ❑ Expr s Mail ❑ Return Receipt for cattinsur ! a _ M rchandise 10 7. Date o el' cry G 8 1 3 O �. Signature u►d.messes) 8. Addres se's Address(Only if requested Y M and fee is paid) m h W /© The City of San Luis Obispo 6 1 6. SignstGre (Agent) V Telecommunications Device fe PS Form 3811', December 1991 4 u. .0.:1N2-307-5M DOMESTIC RETURN RECEIPT city of sAn tuis oaspo 955 Morro Street • San Luis Obispo, CA 93.401 March 1, 1994 CERTIFIED MAIL Gerald LaBossiere Trust Administrator Yellow Cab of Five Cities 2255 South Broadway, #1 Santa Maria, CA 93454 Dear Mr. LaBossiere: our City Clerk's office has relayed to this office that the required insurance certificate for operation in the city of San Luis Obispo has expired. By ENDORSEMENT, immediately reinstate your insurance coverage. FAX the endorsement to this office at 805/781-7198. It is your responsibility to insure that you have current insurance coverage at all times. Failure to have adequate insurance is grounds for the cancellations of your certificates of convenience in the city of San Luis Obispo. Your immediate attention to this matter is required. Is your RETURN ADDRESS completed on the reverse side? Sincerely, o b N N Q7 ri m acvnnZ �.r, d a m 3= 3 m e . . m a g -m e m m m Harry Watson _b c� �' C n h D Transit Manager a o ( a . b :P toto to O Cn Che m n� i c: Jeff Jorgensen, City Attorney m a b +� a Diane Gladwell, City Clerk z � m' _9 - � • 3 m 3 Sr 04 A $a e F Cr m 52 m. E as m a mm O bD mg m 9 leeoselelhwt !: m m �, m m` m n C F n 9 y m_ .� C m m rpt A aCL `m — I 'm, %02 ❑ ❑ m o r 9 m ` ❑ ❑ ❑ °w m a m f The City of San Luis Obispo is committed to include the disabled —ml " 3m p m N - w m s Telecommunications Device for the Deaf(805) 781-7410. s 0 �r e m "' m a m 4-1 Z •� m n o' o 1 nm m bjis oaspoCid 0 S�►l'1 y 955 Morro Street • San Luis Obispo, CA 93401 March 4, 1994 CCT Trust c/o Art Pelino 2255 S. Broadway 01 Santa Maria, CA 93454 Mr. Pelino, This is follow up to our phone conversation of this date (11:50am) requiring you to immediately remove your taxil's from San Luis Obispo. As spelled out in chapter 5.20.270 of the Municipal Code, (copy attached) you are to have in full force, the required insurance. As your insurance has lapsed, youmust discontinue operations with in the City limits as of 11:50am .this date. You may not reinstate service until the City is in position of an ADDENDUM listing the City as additional insured. An Addendum is required, a certificate of insurance will not suffice. The addendum is to be sent to this office, attention Harry Watson. Sincerely, arry Watson Transit Manager c. J. Jorgensen, City Attorney D. Gladwell, City Clerk /© The City of San Luis Obispo is committed to include the disabled in all of its services. programs and activities. V Telecommunications Device for the Deal(805)781.7410. yy\ M j;K City Of SAn luis .OBISPO 955 Morro Street • San Luis Obispo, CA 93401 March 24, 1994 Art Pelino c/o 5 Citys Yellow Cab 1381 4th Street Los Osos, CA 93402 Dear Art, The City is still not in receipt of the required ENDORSEMENT on your insurance. You may not operate in the City until we have received the endorsement. It has been reported to this office, that your cabs have been seen in the City, this past week. I spoke to your insurance carrier last week on this and re explained our needs. They indicated they would produce the endorsement. sincerely, Harry Watson Transit Manager c. J. Jorgensen, City Attorney Sctysitr4 © The City of San Luis Obispo is committed to include the disabled in all of its services, programs and activities. Telecommunications Device for the Deaf(805) 781-7410. '!G !il Ili I , 'i!� I I �Ilil� �I�IV�„��ii�l���ili�����ill�'�I►��Ui„��,��j�',I �� L��I�+I H city ® � luis onspo 955 Morro Street a San Luis Obispo, CA 93401 April 22, 1994 Art Pelino Ye11oW: Cab of'_Five' Clties ':A 1381 4th Street '- Los Osos, CA 93402 Dear Mr. Pelino, It has been reported that the meters in your cabs used in San Luis Obispo are malfunctioning and or inoperable. Municipal Code 5.20.280 and 5.20.290 speak to the requirement of having an operating, accurate meter. A copy of the referenced codes are attached. In addition to providing the City with the required Endorsement of Insurance, which we still do not have, it will be necessary for you to have the meters repaired, then inspected by myself prior to resuming business in the City. P 241 240 305 Receipt for Sincerely, Certified Mail No Insurance Coverage Provided yep Do not use for International Mail (See Reverse) Harry Watson sF=. Transit Manager Seeet aro%a P O..State arc ZIP Ccce c. J. Jorgensen, City Attorney Gerald LaBossiere, Trust Administrator =Stage $ Certitiec Fee Sctymeter Special Des..ery Fee Feauctea De:'.'er, Fee Retum Fece-ot 5ro` 'rg 10 Wrofr 6 3a16 ie-ve•Fa mRefum Aece:o:S+c,,g:c C Date.aro tea.esE�. i Access � TOTAL POsage C 8 Fees mPoSM-ark or pate ! The City of San Luis Obispo is committed to include the disabled in all 01± E / q V� Telecommunications Device for the Deaf (805)781.7410. i y �� 5.20.250-5.20.310 liability insurance shall be a continuing liability. 5.20.290 Taximeter rates. up to the ",,11 rnomne.t .1-emcf, `.:eters •"'iil 'De set to si,ow la":s adc;:-J Cr any recovery thereon,and the certificates thereof amended by the council by resolution. which shall so certify.All motor vehicle liability policies shall include a minimum and mileage rate. and all certificates thereof shall be subject to the standby charges and types ofreceipts,ifany,to be approval of the city attorney in any and all mat delivered to passengers.If required by the resolu- ters and if at any time, in the judgment of the tion, rte cards setting forth the authorized rates council, the motor vehicle liability policies are shall be displayed in each taxi in such a place as to not sufficient for any cause, the council may bd in view of all passengers. (Prior code § require the owner of such public motor vehicle 6240.29) who filed the same to replace the motor vehicle policies within ten days with other policies in 5.20300 Refusal to pay fare. accordance with the provisions of this section. If Except where credit is intended, no person the owner fails to replace the motor vehicle pol- shall fail or refuse to pay at the end ofthe trip or ides within the ten-day period with good and the termination or discharge of service,the regu- sufficient policies, as set out in this section,then lar fare for the public passenger vehicle forhire he at the termination of the period the owner's per- has hired, and upon conviction for violation mit issued under this chapter shall be by such thereof, in addition to any other penalty pro- . failure automatically suspended until such time vided for in this code, he shall be,compelled to as the requirement is complied with, and the pay to the driver of the vehicle an amount equal chief of police shall enforce such suspension. to the legal fare and in case any bail required is (Prior code § 6240.25) forfeited, the amount of the legal fare shall be. paid to the driver from such amount forfeited, 5.20.380 Taximeter—Required. and the court or judge before whom the case is All taxicabs operated under the authority of heard shall order the same to be 1_d this chapter shall,within thirty days after written treasury of the city. (Prior code J 6:40.27) notice by the city, be equipped with meters fas- tened in front ofthe passengers,visible to them at 5 20310 Violation of pro%isions—Permit all times of the day or night; and aper sundown revocation. the face of the meter shall be illuminated. the Any person convicted of violating any of the accuracy of meters to be installed shall be tested, provisions ofthis chapter shall.in addition to any approved and sealed by the county department other penalty provided by this code, have the ofweights and measures at all points and connec- permit to him revoked. (Prior code § 6240.26) tions which, if manipulated, would affect their correct reading and recording. Each meter shall have a flag or approved device to denote when the vehicle is employed and when it is not . employed and it shall be the duty of the driver to Q throw the flag or device into a recording position when employed and into a nonrecording posi- tion at the termination of each trip. The meter shall be subject to inspection from time to time and upon discovery of any inaccuracies therein, the tau shall be kept off the highway until the meter is repaired or replaced. (Prior code $ 624018) 115 yJ ty of San US OBrspo ox 8100•San is Obispo,CA 93403-8100• (805)781-7114 3 :[7p II. �J ' fj Cl -r ►�-s - o1 � - K � I � oL^ Ge -T- Ceg�7vlo � r � '` k . THPFROM w, `l 0 OF 075-! exc-eq-r aN E ZE ME5N o aCaLl 4 vT��M0 Attachment No. 5 ►n����iTHllllil�l! I �����i�i► � �I�II 111 � city opan tuis oBispo 955 Morro Street • San Luis Obispo, CA 93401 July 7, 1994 CERTIFIED MAIL' Gerald LaBossiere Trust Administrator CCT Trust 2255 South Broadway, #1 Santa Maria, CA 93454 Art Pelino 1381 4th Street Los Osos, CA 93402 Dear Mr. LaBossiere and Mr. Pelino, Due to the currently unresolved issue of expired insurance for Yellow Cab of Five Cities, a review of your file was made. Although on January 4, 1994, the City Council conditionally approved the issuance of Certificates of Convenience to CCT Trust, the applicant on behalf of Yellow Cab of Five Cities, the Certificates were never issued. This is because the City never received the required insurance ENDORSEMENT with the City of San Luis Obispo listed as an additional assured. Telephone communication between our City Attorney, and your insurance company on July 6, 1994 revealed that your insurance has lapsed due to lack of payment. Because you do not have Certificates of Convenience from the City --- - — of San- Luis Obispo;- because- you do not have. the- required insurance, - - because the City does not have the required ENDORSEMENT of insurance covering CCT Trust, and because you were noticed about operating a Cab without an operating meter in violation of our Municipal Code, YOU WILL IMEDIATELY REMOVE YOUR TAXI CABS FROM SAN LUIS OBISPO. If your Taxi Cabs are seen operating anywhere with in the City limits, the San Luis Obispo City Police Department has been instructed to issue a citation. r If Mr. Pelino, as you have indicated by phone to both myself and Cindy Clemens of the City Attorney's Department, your intention is to take ownership control of Yellow Cab of Five Cities, you will need to submit a new application- in your name. Staff would review any such new application and make recommendation to the City /rtO� The Gty or San Luis Obispo is committed to include the disabled in all of its services, programs and activities. v` Telecommu nications Device for the Deaf (805)781-7410. Council. If you wish to pursue this option, I can provide you with further information about the application process. Sincerely, 30 Transit Manager c. C. Clemens, City Attorney B. Topham, SLO PD Scisatop K SENDER: Complete items t and/or 2 for additional services. 1 also wish t0 receive the I • Complete hems 3.and 4a 3 b. following services (for an extra m .,2,_• Print your name and address on the reverse of this form so that we can j fee): �m roWm this card to you. > m • Attach this form to the from of the mailpiece,or on the back if space 1. ❑ Addressee's Address( m does not permit N I Y • Write-Return Receipt Requested"on the mailpiece below the article number. 2. ❑ Restricted Delivery a' • The Return Receipt will Show to whom the article was delivered and the date m o delivefOd Consult postmaster for fee. y 9 3. Article Addressed to: 4a. Article Number m ART PELINO P 004':669 062 i 1381 4TH STREET E 4b. Service Type 6 jo LOS OSOS CA 93402 ❑ Registered ❑ Insured x 'Certified ❑ COD ❑ Express Mail ❑ Return Receipt for Mer , andise 5. Si e (Addressee)r -' % 8. Addressee's dress(Only if requested x i i✓ 0V� and fee is paid) W 1 6. Sitnature 0 PS Form 3811, December 1991 eu.s.GPataa3-z- 4 DOMESTIC RETURN RECEIPT SENDER: I also wish to receive the Complete items 1 and/or 2 for additional services. • •.Complete hems 3,and 4a 6 b. following services (for an extra • Prim your name and address on the reverse of this form so that we can • return this nerd to you. fee): ` m..• Attach this form to the from of the manpiece,or on the beck if space 1. ❑ Addressee's Address y m does not parmiti A �. • Wdta"Return Riesipt Requeiited"on the manplece below the article number. 2. ❑ Restricted Delivery S • The Ratum Receipt Wilt,•Tow to whom the article was delivered and the date m a derrymed Consult ostmaster for fee. m 'o- 3. Article Addressed to: 4a. Ankle Number m GEX:..`/3'J a4JtyJJititii c+ :`: P 004 669 063 CL CCT TRUST 4b. Service Type E. YELLOW CAB OF FIVE CITIES ❑ Registered ❑ Insured 2255 SOUTH BROADWAY #1 3 Certified ❑COD El Express Mail ❑ Return Receipt for 2 SANTA. MARIA CA 93454 r Merchan Ise o _ 7. Data of D (very f Q � S. Signature (Addressee) I. Addres ee's Address(Only if requested,c i- and fee is paid) n uj ' 3 m PS Form 3811, EVecember 1991 eu.s.GPO:,aa3-sszat4 DOMESTIC RETURN RECEIPT