HomeMy WebLinkAbout05/07/1996, 3 - CONSIDER THE NEED FOR A SECOND TAXI SERVICE �III�� i�IIiIIIIIII��yIU f M G A
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COUNCIL AGENDA REPORT ' u
FLOM: Michael D. McCluskey, Public Works Director
Harry Watson, Transit Manager t
SUBJECT: Consider the need for a second taxi service
CAO RECONEMENDATION:
1. Hold a public hearing to determine the need for an additional Certificate of Public
Convenience.
2. By Resolution, declare that the public convenience and necessity requires the issuance
of a Certificate of Convenience for taxi service to Mr. Joe Brady of Central Coast Taxi-
Cab Service.
DISCUSSION:
Background
The City has been contacted by five potential taxi operators requesting permission to operate in
San Luis Obispo. Prior to granting any or all of the requests, the Council must first determine,
via a public hearing, that a need exists for additional taxi service. Municipal Code Section
5.20.050 states that, "In determining whether the public convenience and necessity require the
operation of a taxicab, or taxicabs, for which application is made, the Council shall hold such
public hearing as may be necessary in its discretion to determine that fact." Additional sections
describe demand for service, existing service, financial responsibility and experience, type of
equipment to be used, effect on traffic congestion, any public hazard and other relevant facts to
help the Council make it's determination. Each of those who have inquired as to providing
service have been given an application packet that includes a copy of the relevant sections of the
Municipal Code.
In order to be fair to any other interested parties, the City advertised in the Telegraph Tribune
for providing service in San Luis Obispo. After sufficient notice, official packets were sent to:
Joe Brady - Central Coast Taxi-Cab Services, Operating in Atascadero, Templeton and
Paso Robles (they are also scheduled to be in Los Osos/Baywood Arroyo
Grande, Grover Beach and have applied to Pismo Beach).
Maqbool Choadhry - Operating taxi service in Santa Barbara.
Mohammed Ali - Operating taxi service in Santa Barbara.
Robert Alfirevic - Bay Services Limousine of Los Osos (a former applicant).
Chris Landis - (formerly) Landis Automotive of San Luis Obispo.
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Although all listed were given the application packets, only Mr. Brady returned the application
and supplied the City with the required information by the application deadline of April 12, 1996.
A incomplete application was received in time from Mr. Chaudhry.
Is there a need for additional service?
Municipal Code Section 5.20.040 states, "No certificate of public convenience and necessity for
the operation of any taxicab shall be granted until the council shall, after hearing, declare by
resolution that the public convenience and necessity require the issuance of such certificate". To
prevent interruptions in service and to guarantee adequate numbers of cabs at any given time are
valid reasons to issue another certificate. The Council retains the right to issue additional
Certificates of Convenience in the future should the need arise.
On September 9, 1994, the Council issued a "single" Certificate of Public Convenience to
Anthony R. Romero, dba Yellow Cab of San Luis Obispo (Yellow Cab) for the operation of
taxicabs in the City of San Luis Obispo. The Council followed staffs recommendation that a
single taxi operator would best meet the needs of the City. At the time of the September 1994
hearing, a major reason given to support the "single" Certificate was the lack of a large enough
ridership base to financially support two Certificates.
Unfortunately, there have been five interruptions in service to the public by Yellow Cab. Three
interruptions in service occurred when Yellow Cab was unable to maintain continuous coverage
of it's liability insurance (February 95, August 95 and December 95). The City performed a
safety inspection on their cabs in July 1995 wherein each cab failed, causing an interruption in
service. The County Weights and Measures Department, in November 1995, inspected the
meters in the cabs and all but one failed, causing an interruption in.service.
During these interruptions, there is no "on demand" transportation for the airport, for Amtrak
passengers, for medical and shopping trips, for in town package delivery, for after hour trip
requirements and for the general business and social uses that a taxi service provides. In short,
each interruption in service leaves the citizens of San Luis Obispo without any form of on-
demand transportation. Additionally, the City has received requests for greater taxi service
(during times of full service by Yellow Cab) from the airport and motels.
Staff believes that the "single" Certificate granted in September 1994 no longer fully serves the
public convenience and necessity finding required by the San Luis Obispo Municipal Code and
that a "second" provider of service should be allowed to operate. With a second taxicab service
in operation, the voids in service caused when a single operator is unable to provide service
would not occur and requests for greater service would be met. Therefore staff believe that the
conditions of Municipal Code Section 5.20.040, finding a need for public convenience and
necessity can be met.
Should a second Certificate be awarded to Mr. Brady?
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COUNCIL AGENDA REPORT
performed ac groun checks and have received high recommendations on Mr. Brady.
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('These recommendations included the City of Paso Robles, as well as from a representative of
the County Department of Weights and Measures). Mt. Brady's company was the firm originally
recommended by staff on September 9, 1994 as the best qualified to meet the needs of the City.
Mr Brady's application states that he has been providing locally owned and operated taxi service
in the County for over three years. For nearly two years, his firm has contracted with the
County to provide specialized taxi service in the Templeton area. He has worked closely with
Twin Cities Community Hospital as well as all law enforcement agencies in the north county as
both a driver and operator. In his application, he pledges to provide timely service, at
competitive rates with regularly maintained vehicles. His drivers will have had background
checks and will carry proof of valid insurance. His operation lists a record of 500,000 miles of
accident free operation.
For the above reasons, staff feels confident in recommending Mr. Brady to receive a certificate
of Convenience to operate Taxi Service in San Luis Obispo.
FISCAL IMPACT:
There will be no impact to the General Fund by taking the recommended action.
ALTERNATIVES:
1. Repeal Municipal Code Chapter 5.20, ."Taxicabs" including sections 5.20.010 through
5.20.310 except those sections dealing with Taxi Drivers Permits.
Should the City even regulate "Taxicabs"?
Since there are few benefits to the City with the current system, Council may wish to remove
itself from this regulatory avenue and let free market forces decide the number and quality of
service providers. The City does not oversee the operations of Van Service,Limousines, Courier
Services or Charter Service, all of which operate in the City. Historically in other cities,
taxicabs received oversight because of the sizeable income to the City from individual taxi
permits issued by the City. There are no individual taxi permits in San Luis Obispo., There is
only a single business license required of the Certificate holder.
2. Decide that one Certificate continues to be preferable in San Luis Obispo. A single operator
has a sufficient customer base to enhance the odds of a profitable operation. Historically, the
operators in San Luis Obispo also gained approval from the three cities in the South County to
operate there as well.
Attachment: Resolution for Certificate of Convenience
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RESOLUTION No. (1996 Series)
A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO
DECLARING A NEED FOR A CERTIFICATE
OF PUBLIC CONVENIENCE FOR TAXICAB SERVICE
FOR JOE BRADY, dba CENTRAL
COAST TAXI-CAB SERVICE
WHEREAS, a public hearing was held to determine the need for
a Certificate of Public Convenience; and
WHEREAS, the Municipal Code of San Luis Obispo section
5.20.040 authorizes the City Council to issue said Certificate of
Public Convenience; and
RHEREAS, the City Council finds that there is a need to
provide for continuous service and provide sufficient numbers of
taxis at all times.
NOW THEREFORE, BE IT RESOLVED that the City Council of the
City of San Luis Obispo hereby authorizes the issuance of a
Certificate of Public Convenience for taxicab service in the
name of Joe Brady, dba Central Coast Taxi-Cab Service.
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
1996.
ALLEN SETTLE, MAYOR
ATTEST:
Acting City Clerk
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