HomeMy WebLinkAbout04/01/2008, PH2 - DETERMINATION OF NEED FOR ADDITIONAL TAXI SERVICES council MnN D� April 1,2008
j acEnba nEpont I�Nor
CITY OF SAN LUI S OBIS PO
FROM: Jay Walter, Director Public Works
Prepared By: John Webster, Transit Manager
SUBJECT: DETERMINATION OF NEED FOR ADDITIONAL TAXI SERVICES
CAO RECOMMENDATION
1. Adopt resolution, declaring the need for operation of two taxi operators in the City
of San Luis Obispo on a one year trial basis.
2. Authorize the CAO or his designee to process the Certificate of Public Convenience
and Necessity and Taxi Permit to 234-Taxi L.L.C.
DISCUSSION
Background
On September 27, 2007, the City of San Luis Obispo received an application from Amy
Simpson, President, and Leland Simpson, Vice President of 234-Taxi L.L.C. (formerly Grover
Beach Taxi) requesting consideration of a Certificate of Public Convenience and Necessity, and
issuance of a Taxi Permit for operations in the City. The Simpson's application complies with
the requirements set forth in Municipal Code Section 5.20.030. Prior to granting a Certificate of
Public Convenience and Necessity and Taxi Permit the Council must determine that there is the
need for additional taxi service. In accordance with Municipal Code Section 5.20.040 and
5.20.050, the City must investigate whether the need exists for an additional taxi operator and
conduct a formal "determination of need" hearing prior to issuance of any certificate. Staff has
reviewed the request and existing taxi service levels in the City and has concluded that additional
taxi service should be allowed at this time.
The City of San Luis Obispo has a mixed experience with multiple taxi operations and service
related issues. Laidlaw operated a profitable taxi service until 1993, when Yellow Cab of Five
Cities, owned by Mark Giekseke, was granted a taxi permit. Both taxi companies then began to
compete for a limited market within the City. Laidlaw subsequently decided to withdraw from
taxi operations due to the lack of profitability. Eventually, Yellow Cab of Five Cities' Certificate
of Public Convenience and Necessity and Taxi Permit were revoked due to the company's failure
to comply with various Municipal Code requirements.
At the City Council meeting on September 6, 1994, the City of San Luis Obispo approved two
resolutions that regulated taxi service in the City. Resolution 8337 declared that a single taxi
operator is sufficient until there was sufficient demand to support more than one taxi operator.
At the same meeting, the City Council approved a resolution issuing a Certificate of Public
Convenience and Necessity and Taxi Permit to Yellow Cab Company, owned by Anthony
Romero. During Mr. Romero's ownership, taxi service in the City of San Luis Obispo
a � �
Determination of Need for Additional Taxi Services Page 2
experienced numerous service interruptions due to the company's: (1) failure to maintain
insurance; (2) failure to maintain safe vehicles; and (3) failure to pass the County's Weights and
Measures inspection. Mr. Romero's Certificate of Public Convenience and Necessity and Taxi
Permit was finally revoked in 1998.
On May 7, 1996 (prior to Yellow Cab's permit revocation) the City Council granted a Certificate
of Public Convenience and Necessity and Taxi Permit to Central Coast Taxicab Services, owned
by Joseph Brady. The issuance of his permit was primarily due to the quality of service and
safety problems stemming from Yellow Cab. Central Coast Cab provided good service while
Yellow Cab service was rapidly deteriorating as cab drivers initiated physical fights and operated
recklessly,jeopardizing public safety in order to compete for passengers.
On January 22, 2001, the City of San Luis Obispo received an application from Jeff Goldenberg
of Beach Cities Cab Company requesting consideration of a Certificate of Public Convenience
and Necessity and Taxi Permit which was ultimately approved by the Council. This taxicab
permit was authorized by Resolution No. 9198 (2001 Series) for a one year trial basis adopted
by the City Council on June 19, 2001 and became permanent on the annual renewal date in June
2002. The City had two licensed taxi operators until Central Coast Cab ceased operations in
October 2005. Beach Cities Cab Company has been the sole taxi operator licensed to operate in
the City of San Luis Obispo since that date and has overall provided adequate service with few
formal complaints.
However, the City has received public requests from time to time asking for more options in
vehicle access and private transportation. Although additional taxi service will likely promote
competition, staff believes sufficient client base exists to allow two operators to exist within the
City.
Experience and Financial Responsibility of the Applicant
The applicant 234-Taxi, L.L.0 (formerly Grover Beach Taxi) has been operating in the Five Cities
area since April of 2000. Staff has reviewed their financial status and business experience and has
concluded that their operations appear sound. Business records indicate that the applicant has
remained profitable and is expanding its business in the county. In addition, according to the
application letter they have hired a bookkeeper, accountant and attorney to assist them in the
process from changing from a Sole Proprietor Business (Grover Beach Taxi) to a Limited Liability
Corporation (LLC) known as 234-Taxi. San Luis Obispo staff has contacted Police Department
staff in the City of Arroyo Grande and Grover Beach who performed inspections on 234-Taxi
vehicles and determined that there were not any issues or incidents in connection with their existing
fleet or service operations in either City.
Vehicle Fleet Mix and Color Scheme
According to Attachment 1, the applicant is proposing to utilize three vehicles. This proposal was
expanded to six (6) during subsequent discussions at the MTC meeting when the taxi permit
request was discussed. In order to differentiate from Beach Cities Cab the primary color scheme
will be white with yellow, red, and black highlighting. Signs will have the 234-Taxi L.L.0 logo
along with the telephone number 805-234-8294. Overall, the vehicles appear to be new, attractive
a , a
1 J
Determination of Need for Additional Taxi Services Page 3
and clean. Pictures will be included as part of the staff presentation during the public hearing.
RATES
Under section Municipal Code section 5.20.030 (F) (Proposed Rates to be charged) and section
5.20.160 the Council, "...upon its own motion, or upon application of a certificate holder, may
set, establish, change, modify or amend the schedule of rates to be charged by all vehicles
operated by each holder of a certificate of public convenience and necessity under the provisions
of this chapter". No rates shall be set, established, changed, modified or amended without a
hearing before the Council. Notice of such hearing shall be given to each certificate holder, in
writing, by the City Clerk, at least five days before the hearing, and the Council may give such
other notice as it shall deem necessary.
234-Taxi Proposed Rates - Table 1
Current Proposed
Fee Type Beach Cities Cab 234 Taxi
Pick U $ 3.00 $ 3.00
Per Mile $ 2.50 $ 3.00
* Wait Time Per/Hr $ 25.00 $50.00
Surcharge (2;30 am-6 am) none $3.00
Credit Card Use $ 4.00 $ 4.00
Minimum Charge none None
* Wait time is the rate that is programmed into the taxi meter and is charged when the taxi is not in motion and
automatically changes from the per mile rate to a time mode rate on the meter.Examples of this would be the time a taxi
is stopped in heavy traffic or at a traffic light. A$25 per hour wait fee is approximately$.42 per minute while a$50 per
hour rate is approximately$.83 per minute.There is no minimum time increment of for this calculation to be applied and
is charged and calculated from the first second when the taxi meter goes to a time mode charge.
Staff is recommending that rates be consistent as possible among all operators licensed within the
City of San Luis Obispo. Although the rate structure proposed by 234-Taxi is slightly different than
Beach Cities Cab,the rates are consistent and will not significantly affect passenger fares.
Should a Second Certificate be awarded to 234- Taxi L.L.C.?
It should be recognized that, in addition to existing taxi services, Ride-On Service, a non-profit
transportation service provider, operates other services such as medical transportation and
vanpools. Discussions with Ride On staff have determined that the proposed taxi service will not
be in conflict with their current operations and they are supportive of new taxi service in the City
of San Luis Obispo. Mass Transportation Committee members were in agreement that
competition would be a positive aspect of this application and that there should be more than one
taxi provider available for residents and visitors to choose from. Staff has determined that there
is sufficient demand for additional service and that the proposed 24-hour availability of 234-Taxi
L.L.C. will fill some service gaps in the present transportation systems. It should have a positive
effect on reducing congestion and parking and should not result in a greater hazard to the public
as it has the ability to reduce DUI incidents by offering late evening service as an alternate to
� -3
Ir
Determination of Need for Additional Taxi Services Page 4
driving. Given the previous experience with multiple taxi operators there is a potential risk that
both operators would be unable to remain profitable and staff is recommending a one year trial
basis for the taxi permit issuance to review impact of the additional service. As previously done
with Beach Cities Cab, a permanent certificate, eligible to be renewed annually, can be issued at
the end of that period if there are no serious complaints or violations of the Municipal Code.
CONCURRENCE
On November 7, 2007 the Mass Transportation Committee (MTC) unanimously recommended
that this application proceed to a public hearing for a certificate of convenience and necessity
(Attachment 3).
FISCAL IMPACT
There will be no fiscal impact to the General Fund by approving the CAO Recommendation.
ALTERNATIVES
Alternative #1. The Council can approve the Certificate of Public Convenience and Necessity
without any stipulation regarding a one year trial basis.
Alternative#2. The Council may determine that there is no need for a second taxi operator in the
City of San Luis Obispo and deny request for the Certificate of Public Convenience and
Necessity and provide staff with further direction as needed.
Alternative #3. The Council may decide to deregulate taxi operations. The City currently does
not regulate other transportation services, such as van services, limousines, courier services, or
charter bus services. The advantage of this alternative is that the City of San Luis Obispo would
not have to regulate and administer taxi operations. The disadvantage to this alternative is that it
may result in multiple taxi operators, which would aggressively compete in a limited market with
little City supervision. Should the Council choose this alternative, it should direct staff to return
with an ordinance modifying the Municipal Code.
Alternative #4. The Council may decide to modify the current Municipal Code to allow taxi
operators to provide return service to their customers whose destination is outside of the City and
who may be staying outside city limits. The primary benefit is the convenience to visitors to be
able to use and rely on the same taxi operator from their pick-up outside the city limits. Visitors
have already established a business relationship and do not need to worry about which taxi they
need to call to return to their hotel outside the city limits. Should the Council choose this
alternative, it should direct staff to return with an ordinance changing the Municipal Code
ATTACHMENTS
1. Letter requesting certification of convenience from 234-Taxi LLC
2. Resolution
3. MTC Minutes
a -�
Contemporary Letter Page I of.2
ATTACHMENT 1
Webster, John
From: Amy&Leland Simpson [bajacap@charter.net]
Sent: Thursday, September 27, 2007 2:17 PM
To: Webster, John
Subject: San Luis Obisp Taxi Application
P.O. Box 749
Grover Beach, CA 93483
ba1'acap ,charter.net
(805)7 9-9451
(805)481-5573 fax
September 27, 2007
San Luis Obispo Mayor, City Council, and Staff
990 Palm St,
San Luis Obispo, CA
93401
Dear San Luis Obispo Mayor, City Council and Staff,
This is a formal application from 234-TAXI L.L.C. (formerly DBA Grover Beach Taxi) for a
Certificate of Convenience and Necessity for the City of San Luis Obispo.
Leland m �$impson,Ip�esidehr►t�f 2 4-T�I L.L C_rdeside is 425�5d' St. in Pc)e o. T)o er I ar
im sonp, my us an an ice rest ent, m e up a pnnc.ip e o kers o is
corporation.
We propose to have six taxicabs in the City of San Luis Obispo and Five Cities. Our current
agenda is to continue to operate the original red taxicabs in the Five Cities area and purchase
three new white taxicabs for the City of San Luis Obispo. We are currently phasing out our
original 3 red taxicabs and replacing them with white taxicabs in the Five Cities.
The designated taxicab numbers on these new vehicles will be#48,#7, and#55 (NASCAR#'s i
curious).
Our proposed color scheme will be base white taxicabs with yellow, red, and black highlighting
Municipal Code 5.20.180. The signs will read 234-TAXI L.L.C. with our phone#(805)234-82S
written below the name.
Our proposed rates will be as follows:
$3.00 pick up fee
$3.00 per mile fee
$3.00 surcharge fee for calls between the hours of 2:30am and 6:00am
$50 per hour wait time fee
These are the rates we currently charge, approved by the City Councils of the Five Cities.
3/12/2008 ` "`
Contemporary Letter Page 2 of 2
TTACHMENT 1 111)
We have been operating as Grover Beach Taxi in the Five Cities for 7 years this April. Recent
we have noticed an increase in call volume from people in the City of San Luis Obispo reRuestir
our taxi service. We also hold a permit with the County of San Luis Obispo Airport. The mcrea
in daily flights and rental car business has encouraged us to add two taxicabs to operate day and
night solely for airport passengers. I believe our presence at the airport and the steady growth of
your city, are the reasons for the increase in the need for our services in the City of San Luis
Obispo.
Currently there is only one other taxicab service in the City of San Luis Obispo and the surrounc
County. Until recently, there had been two taxicab companies to service the City. Since Centra
Coast Cab closed their business there has been an increase in need for a second cab company in
City of San Luis Obispo. The pubic deserve a choice in which taxicab company they use.
I have hired a bookkeeper, an accountant, and an attorney to help us in our process of changin&
Grover Beach Taxi, a Sole Proprietor Business, into 234-TAXI, a Limited Liability Corporatio
In the process of incorporating, we have learned the potential value of our taxicab service. I hav
become very familiar with the Taxi bylaws and the running of a large taxicab company. 1 am nc
confident that the city council will see the need for two professional"taxicab services in the City
San Luis Obispo. I am ready financially to expand and offer our services to your city. We have
years experience and knowledge of our local area attractions and customs already under our belt
We are slowly gathering qualified drivers to join our taxicab family so that upon your approval i
will be ready to operate on a 24 hour a day basis in your city.
Thank you for your time and consideration, I look forward to doing business with the City of Sa
Luis Obispo.
Sincerely,
Amy Simpson
President
3/12/2008 Ce
ATTACHMENT
RESOLUTION NO. (2008 Series)
RESOLUTION AUTHORIZING TWO TAXI OPERATORS IN THE
CITY OF SAN LUIS OBISPO AND GRANTING A PERMIT TO 234-TAXI LLC
FOR A ONE YEAR TRIAL PERIOD
WHEREAS, the City Council of the City of San Luis Obispo desires to provide for taxi
service for its citizens;
WHEREAS, Beach Cities Cab is the current taxi operator in the City of San Luis Obispo
and has operated in the City since 2001;
WHEREAS, the City has received an application from 234-Taxi LLC to operate taxi
service in the City;
WHEREAS, in accordance with the provisions of San Luis Obispo Municipal Code
Chapter 5.20, the City has evaluated the demand for additional taxi operators in the City; and
WHEREAS, the City has determined the need for an additional taxi operator in the City
on a one year trial basis;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of San Luis
Obispo as follows:
SECTION 1. The City Council finds there is a need for two taxi operators in the City of
San Luis Obispo;
SECTION 2. The CAO or his designee is hereby authorized to giant a Certificate of
Public Convenience and Necessity and Taxi Permit to 234-Taxi LLC on a one year trial basis.
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 , 2008.
r
Resolution No. (2008 Series) -\ k ACHMENT c --
Page 2
David F. Romero
Mayor
ATTEST:
Audrey Hooper
City Clerk
APPROVED AS TO FORM:
an P. Lowell
City Attorney
a ^�
Item A-1 MTC meeting January 9-2008
CITY OF SAN LUIS OBISPO ATTACHMENT 3
MASS TRANSPORTATION COMMITTEE
WEDNESDAY, NOVEMBER 7, 2007
APPROVED JANUARY 9,2008
CALL TO ORDER:
Chair Jean Knox called the meeting to order at 2:03 p.m in the Council Hearing
Room, City Hall.
ROLL CALL
Present: Jean Knox, D. Gregg Doyle, Susan Rains, Margaret Crockett,
Tracey Amundson, and Denise Martinez
Absent: Christine Batteate and Kathy Howard
Staff: John Webster, Tim Bochum
ANNOUNCEMENTS
There were no announcements.
PUBLIC COMMENTS
There were no public comments at this time.
A. CONSENT ITEMS
A-1 Approval September 12, 2007 Meeting Minutes
Chair Knox pulled Item A71 for discussion and clarified a meeting minutes
should reflect that the subcommittee that was ed was comprised of Chair
Knox, and members Martinez and Rai . ransit Manager Webster stated this
change would be incorporated int final minute language for clarification.
Ms. Amundson mov o approval the minutes as amended. Ms. Martinez
seconded and t otion passed unanimously.
At th"me, Chair Knox advanced discussion of Information Item D-5. See
dscription of discussion of that Item below.
a -9
Item A-1 MTC meeting January 9-2008
MACHO
B. DISCUSSION ITEMS
B-1 Short Range Transit Plan (SRTP), Urbitrans sta esentation
Stuart Geltman, Urbitrans representative, mareef presentation on the
SRTP process and outlined the data collde e n phase, including updating
demographic and census information, tr' generators, new areas of service,
increased ridership, route changes, a evening services analysis.
He stated Urbitrans will do etailed service evaluation of SLO Transit systems
and would now incorpor discussion on the Ramona Drive issues discussed at
today's meeting.
Mr. Geltman timated the SRTP report process would take approximately eight
months a that the public comment sessions would be held late February/early
Marc 2008.
- taff agreed that partial report sections would be distributed to MTC as
completed.
C. ACTION ITEMS
C-1 Letter from Amy Simpson 234-TAXI LLC (formerly DBA Grover
Beach Taxi); SLO Certificate of Convenience
Amy Simpson, applicant, discussed the cab service expansion into San Luis
Obispo proper and noted there was clear demand for her operation. She
requested a total of six vehicles be permitted to operate throughout San Luis
Obispo and South County, dispatched from the airport and the university.
Mr. Doyle stated that a qualified 24/7 operator should be allowed to establish and
create better service through competition and availability.
Ms. Knox discussed her concerns about the discrepancy between 234-TAXI's
$50 wait time and Beach Cities Cab's $25 wait time.
Leland Simpson, applicant, felt that all.fares should be market-driven and would
be posted. He explained the pricing behind the "wait time" fare.
Mr. Webster noted that the Council sets rates within the City.
Karlene McFarland, 234-TAXI driver, stated she favored the price differential in
wait times.
a -- �o
Item A-1 MTC meeting January 9-2008 A�AVnlfl�ltl l
Mr. Doyle moved to uphold the staff recommendation to Council that the I I IIIVIGIV'
Certificate of Operation be granted with Council considering making the wait
times comparable with existing service rates and that all rates be posted clearly
on the interior and exterior of all cabs.
Ms. Rains seconded the motion.
The motion passed unanimously.
C-2 Review and Approve 2007-08 Program of Pro" s
Mr. Bochum discussed programming of federal rs and funding sections, e.g.
5307. He noted that this year's slate of pr sed projects is similar to last
year's, with increased dollar amount a recommended that MTC recommend
to Council that the Program of P sects be approved as presented.
Mr. Doyle movedto ep�ff recommendation that Council approve the
Program of Projects as presented.
Ms. Rains--seconded the motion.
'The motion passed unanimously.
C-3 Review and Approve MTC Calend r 2008
The MTC agreed to schedule the mber 2008 meeting to be held on
November 5, 2008 as oppos o November 12, 2008.
Ms. Rains moved approve the amended MTC Calendar for 2008.
Ms. Martinez seconded the motion.
i
The motion passed unanimously.
D. INFORMATION ITEMS
D-1 Transit Manager's Rep
Mr. Webster recapped sever oints in the report for discussion. He noted that
Sabrina Haggie had acc ed another position and that her current position was
being recruited.
D-2 Operating and Performance Reports and New Schedule/maps
Mr. , ebster recapped several points in the report for discussion.
Bb4ch Cities Cab Co., Inc. I
YOUR DESIGNATED DRIVERS"
P.O.Box 886 Beaely Cities
Pismo Beach,CA 93448OQ o Toll Free 1-866-GO-CAB-GO
(805)543-1234 RED FILE FAX(805)787-0132
MEETING AGENDA
April 1, 2008 DAT N11169 ITEM #�H'a
OUNCIL CDD DIR RECEIVED
rkAO FIN DIR
Attn: John Webster CAO FIRE CHIEF
Mayor Romero TTORNEY PW DIR APR 0 12008
SLO City Council Members CLERK/ORIG POLICE CHF
❑ DEPT HEADS RECOIR SLO CITY CLERK
_-�/B
RE: 4-01-08 Council Meeting H R D R R
^FCO#J&►.&eu— 10
This letter is in regards to the Proposed Second Taxi Provider. I would have-loved to
attend, but we had pre-arranged plans months ago for this week.
Just a few questions that need to be asked or resolved:
1. How does an out of town vendor benefit the City of SLO? How do they propose
to provide 24/7 service? The reason I ask that question is because they are not
24/7 now. That is why they have an after hour charge.
2. They should stick to one color scheme.
3. They are requesting$3.50 per mile. (See attached sheet) How would an out of
town vendor with higher rates be beneficial?
4. Most important, over the past years, the former Transportation Manager and Staff
needed me to show proof of Workers Comp. Insurance before any City Council
date was granted.
5. The vehicle inspection process in SLO is much more thorough and complete.
Customer safety is extremely important. Visual inspections is how South County
inspects Taxi's. San Luis inspections pull tires and checks all moving parts under
hood.
6. Lastly, enclosed is a copy of Grover Beach Taxi's Amendment to their existing
'permit stating that in 2002,they went from a Sole Proprietorship to a Corporation.
But, in their application to the City of San Luis Obispo, it states that they have
always been a Sole Proprietorship. Applications for Public Transportation need to
be truthful for a reason. Once again;did they go through a Bankruptcy and
change Owners Titles around and their Company name to avoid losing all of their
business? They are not financially secure.
7. Their application should be postponed until they file proper applications, and get
their full truthful information.
7Regar ,
eff Goldenberg
CEO/Founder Beach Cities Cab Companies, Inc.
Page I of
,411NUTES
i
CITY 'COUNCIL MEETING
MAY 20, 2002, 6:30 P.M.
CALL TO ORDER Mayor Pro Tem Arnoldsen called the meeting to order at 6:30 p.m. in the City Hall Counci
Chambers, 154 South Eighth Street, Grover Beach, California.
FLAG SAL_I JE Mayor Pro Tem Arnoldsen introduced North Oceano Elementary School 61h grade student
and Student Councii President Ashley Shrode, who led ail those, present in the flag salute.
INVOCATION pastor Gil De La Rosa, Central Coast Baptist Church, Grover Beach.
ROLL CALL
City Coun;,il: Council Members Ekbom, Neufeld, Santos, and Mayor Pro Tem Arnoldsen were present. Mayo
Lieberman was absent.
City Staff:City Manager Anderson, City Attorney Rupp, City Cleric McMahon, Community Development
DirectorAmbo, Administrative Services Director Chapman, Police Chief Bradbury, and Fire Chief Criswell
were also present.
CEREMONIAL CIlLg_NQAR
1. Proclamation Declaring May 15-25, 2002 "National Public Works Week".
Mayor Pro Tem Arnoidsen read and presented the proclamation to Public Works Supervisor John Barclay.
who received it on behalf of the City's Public Works employees.
2. Proclamation of Appreciation to Aqua Systems. Inc.
Mayor Pro Tem Arnoldsen read and presented the proclamation to Robert Trudeau, co-owner of Aqua
Svstems, Inc. Mr. Trudeau Introduced Grover Beach Fire Captain John Hutchison to the members of the
audience, stating Mr. Hutchison was a 13-year employee with Aqua Systems as well as a member of the
National Guard.
TRAFFIC AND N llg GROUP.ITANG) REPORT
3. Report by Citywide TANG Representative. Howard Conroy, 385 South 8th Street, Grover Beach, gave
an update on issues discussed at the recent May 6 meeting.
CONSENT AGENDA
It was m/s by Council Members NeufeldlSantos to approve Consent Agenda Item Nos. 4 and 5 as
recommended. The motion carried upon unanimou3 consensus of a!! those present:
AYES: Council Members Ekbom, Neufeld, Santos and Mayor Pro Tem Arnoldsen.
NOES: Council Members - None.
ABSENT: Mayor Lieberman,
hap:i/w w v�.graver.orgiminvtas'OS-20-02.htm 4/:/2001
Pace 2 of
NSSTAIN: Council Members - No.
4. Treasurer's Report for the Period May 1 - 15, 2002.
Action:Approved the Treasurer's Report as submitted.
S. Minutes of the City Council Meeting of May 6, 2002, and the Joint City CounciUlmprovement
Agency Meeting of May 6, 2002.
Action: Approved the minutes as submitted.
P BLIC OMMl1NIC..ATIOM The Mayor Pro -rem opened the floor to any member of the public for
comment on items of interest which were within the jurisdiction of the City Council but were not on the
agenda. No one responded and the Mayor Pro Tern closed the Public Communications segment for this
portion of the meeting.
PUBLIC EL RING
6. Weed Abatement Protest Hearing to Ccnsider Protests Regarding the Posting of Certain Lots Containinc
Dry Weeds, Grass, Stubble, Brush, Utter, and Other Flammable Materials Pursuant to the Resolution
Adopted May 6, 2002, Declaring Weeds to be a Nuisance and Providing for Annual Weed Abatement.
Mayor Pro Tem Amoldsen read the title to the foregoing item, declared the public hearing open, and deferred
to Staff for a report. For the information of those present, Fire Chief Criswell gave an overview of the Staff
Report,
Mayor Pro Tam Arnoldsen invited comments from those in the audience who wished to be heard on this
matter. There were no public comments received.
Action: it was m/s by Council Members Ekbom/Santos that after conducting the required Protest.Hearing
and finding no defensible protests, order the abatement of the noticed lots and properties. The motion carries
on the following roll call vote:
AYES: Council Members Ekbom, Neufeld, Santos, and Mayor Pro Tem Arnoldsen.
NOES: Council Members - None.
ABSENT: Mayor Lieberman.
ABSTAIN: Council Members- None.
7. Amendment to Certificate of Public Convenience and Necessity -Request from Leland Stanford
Simpson IV and Amy Katherine Simpson, Co-owners of Grover Beach Taxi,for the Following
Modifications to their Existing Taxicab Certificate: (1) Immediate Addition of a Second Taxicab, (2)
Change of Ownership from Sole Proprietorship to a Corporation as of January 1, 2003,and t3!
Addition of a Third Taxicab as of May 1, 2003.
f
Mayor Pro Tem Arnoldsen read the title to the foregoing item, declared the public hearing open, and deferred
to Staff for a report. For the information of those present, City Manager Anderson gave an overview of the
Staff Report.
Mayor Pro Tem Amoidsen invited comments from those in the audience who wished to be heard on this
hllp://www.glover.urg/minutes/05-20-02.htin 4/1'.2.00!
------------
Pace 2 of'.
i
ABSTAIN: Council Members - No,,,.
It
4. Treasurer's Report for the Period May 1 - 15, 2002.
Action:Approved the Treasurer's Report as submitted.
S. Minutes of the City Council Meeting of May 6, 2002, and the Joint City Councillimprovement
Agency Meeting of May 6,2002.
Action: Approved the minutes as submitted.
PUBLIC COMMUNICATIONS.The Mayor Pro Tem opened the floor to any member of the public for
comment on items of interest which were within the jurisdiction of the City Council but were not on the
agenda. No one responded and the Mayor Pro Tem closed the Public Communications segment for this
portion of the meeting.
PUBLIC H TARING
6. Weed Abatement Protest Hearing to Consider Protests Regarding the Posting of Certain Lots Containin(
Dry Weeds, Grass, Stubble, Brush, Utter, and Other Flammable Materials Pursuant to the Resolution
Adopted May 6, 2002, Declaring Weeds to be a Nuisance and Providing for Annual Weed Abatement.
Mayor Pro Tern Amoldsen read the title to the foregoing item, declared the public hearing open, and deferred
to Staff for a report. For the infom�Lion of those present, Fire Chief Criswell gave an overview of the Staff
Report.
Mayor Pro Tem Arnoldsen invited comments from those in the audience who wished to be heard on this
matter. There were no public comments received.
Action: It was m/s by Council Members Ekbom/Santos that after conducting the required Protest Hearing
and finding no defensible protests, order the abatement of the noticed lots and properties. The motion carriec
on the following roll call vote:
AYES: Council Members Ekbom, Neuteld, Santos, and Mayor Pro Tem Arnoldsen.
NOES: Council Members- None.
ABSENT: Mayor Lieberman.
ABSTAIN: Council Members- None.
7. Amendment to Certificate of Public Convenience and Necessity -Request from Leland Stanford
Simpson IV and Amy Katherine Simpson, Co-owners of Grover Beach Taxi,for the Following
Modifications to their Existing Taxicab Certificate: (1) immediate Addition of a Second Taxicab, (2)
Change of Ownership from Sole Proprietorship to a Corporation as of January 1, 2003,and 13)
Addition of a Third Taxicab as of May 1, 2003.
Mayor Pro Tem Amoldsen read the title to the foregoing item, declared the public hearing open, and deferred
to Staff for a report. For the information of those present, City Manager Anderson gave an overview of the
Staff Report.
Mayor Pro Tem Amoldsen invited comments from those in the audience who wished to be heard on this
hitp://w-ww.grover.org/minutes/05-20-02.htin 4'1!200!
- - - - - Page 3 of'.
matter.
Leland and Amy Simpson, 493 South 01 Street, Grover Beach, introduced themselves as cc-owners of
Grater Beach Taxi, and stated they were available to answer any questions.
There were no further public oomments received.
Brief discussion was hold regarding the draft resolution providing the co-owners of Grover Beach Taxi with
the authorization to make the proposed modifications, but that it did not require them to do so.
Action: It was m!s by Council Members Neufetd!Santos to adopt Resolution No. 02-35 authorizing the
requested amendments to the Certificate of Public Convenience and Necessity issued to Grover Beach Taxi.
The motion carried on the following roll call vote:
AYES: Council Members Fkbom, Neufeld, Santos, and Mayor Pro Tem Arnoldsen.
NOES: Council Members - None.
ABSENT- Mayor Lieberman.
ABSTAIN: Council Members -None.
Resolution No. t)Z-35: A Resolution of the City Council of the City of Grover Beach, California
Granting a Modification to the Certificate of Public Convenience and Necessity Issued to "Grover
Beach Taxi", Leland and.Awry Simpson, Owners.
REGULAR BUSINESS
8. Presentation on the National Pollution Discharge Elimination System (NPDES), a Storm Water
Management Program to Regulate the Discharge of Pollutants.
Mayor Pro Tem Amoldsen read the title to the foregoing item and deferred to Staff for a report. For the
information of those present, Community Development Director Ambo gave an overview of the Staff Report.
He then introduced Bob Mack of themackcompany, who used overhead transparencies to give an overview
of the federally mandated storm water management program; the steps required for compliance; estimated
program costs and staff involvement; an overview of the steps taken in the City of San Luis Obispo to initially
meet the program requirements; and various local options available to the City of Grover Beach.
Discussion was held regarding building upon the City's current practices, procedures, and facilities to meet
some of the program requirements; various options to pay program costs; various factors used to calculate
storm water utility fees such as lot size; the likelihood that cities such as Pismo Beach with a population
under 10,000 would also be required to comply with the program requirements in the near future; and that
this federally mandated program was an opporturnty to begin storm drainage studies in other areas of the
City such as West Grand avenue. Further discussion was held regarding establishing a cooperative
agreement with the other South County communities to share non-City specific costs such as permits, but
that engineering costs which were specific to Grover Beach would not be shared with the other communities_
Mayor Pro Tem Arnotdsen invited comments from those in the audience who wished to be heard on this
matter_ There were no public comments received.
http:/iwrww.grf..)ver.org/minutes/05-20-02.htm
i
COUNOt HEHORANDU�lr
Date: March 27, 2408
TO: City Council
VIA: Ken Hampian, City Administrative Officer
FROM: Jay Walter, Public Works Director
SUBJECT: 234 Taxi amended rate structure
The purpose of this memo Is to provide the Council with a status update regarding
.-Public Hearing #2 -(PH2 -on the-461 '!,-2008 agenda-Determination of Need for
additional taxi services.
On September 27. 2007, the City of San Luis Obispo received an application from Amy
Simpson, President, and Leland Simpson, Vice President of 234-Taxi L.L.C. (formerly
Grover Beach Taxi) requesting consideration of a Certificate of Public Convenience and
Necessity, and issuance of a Taxi Permit for operations in the City. The Simpson's
application complies with the requirements set forth in Municipal Code Section 5.20,030,
A rate of three dollars ($3,00) per mile was sought in their original request but on March
26, 2008 staff received an email from the applicant requesting the rate be set at $3.50
per mile.
On March 27, 2008 the applicants stated via email that the rate increase is "due to the
rising cost of fuel arid.in order to make a profit the price per mile needs to basicatly stay
equivalent to the price of fuel." They further state that `if gas prices reach the expected
$5.00 a gallon they will be asking to raise the rate again. If SLO does not like the rate at
$3.50 per mile they will reconsider their application" The applicants also indicate they
have notified the City clerks in Arroyo Grande and Pismo Bead and the new rate of
$3.50 per mile will take effect the first week of April. They are also going through the
City Counci! process in Grover Beach to request the same rate increase.
Staff would like to point out that the original CAR Table #1 had a typo with regards to
the Beach Cities Cab per mile rate and it is currently approved at $3.00 per mile not the
$2.50 reported. The Beach Cities Cab rate increase was approved by Council on July 7,
2007 and it was noted in the Council Agenda Report that BCCC would not seek
additional rate increases until 2008.
RED FILE
MEETING AGENDA RECEIVED
N r
DATEoX ITEM # a�
COUNOL HEHOPANDUH a�� o � X008
SLO CITY CLERK
Date: March 27, 2008 L
COUNCIL CDD DIR
CAO
TO: City Council ACAO W FIN DIR
Iii FIRE CHIEF
ATTORNEY Pw DIR
VIA: Ken Hampian, City Administrative Officer !w°CLERK/ORIG POLICE CHF
❑ DEPTHEADS- RTC DIR
FROM:. Jay Walter, Public Works Director � uTIL DIR
HR DIR
SUBJECT: 234 Taxi, LLC Public Hearing - amended rate structure requestCe&F^4
y` L'•i4o
Public Hearing #2 (PI-12) on the April 1, 2008 agenda recommends approval of a new
taxi operator (234 Taxi LLC) within the City of San Luis Obispo. Subsequent to the
printing of the agenda report the City has received a request from the applicant to,_
increase their mileage rate.
A rate of three dollars ($3.00) per mile was sought in their original request but on March
25, 2008 staff received an email from the applicant requesting the rate be set at $3.50
per mile. (See attached email)
In reviewing the issue staff discovered that Table #1 of the agenda report had a
typographical error in regards to the Beach Cities Cab per mile rate. It is currently
approved at $3.00 per mile not the $2.50 as reported. The Beach Cities Cab rate
increase was approved by Council on July 7, 2007 and it was noted in the council
agenda report that they would not seek additional rate increases until 2009. The table
below reflects the revised rates (including BCCC typo correction) and should be
exchanged for Table #1 in the Council Agenda Report.
Revised Table 1
Current Proposed
Fee Type Beach Cities Cab 234 Taxi
Pick U $ 3.00 each $3.00 each
Per Mile _$ 3.00 $ 3.50
" Wait Time Per/Hr $25.00 $50.00
Surcharge 2:30 am-6 am None $3.00
Credit Card Use $ 4.00
Minimum Charge None None
"rate equals approximately .42 cents & .83 cents per minute respectively
Under section Municipal Code section 5.20.030 (F) (Proposed Rates to be charged) and
section 5.20.160 the Council, "...upon its own motion, or upon application of a certificate
holder, may set, establish, change, modify or amend the schedule of rates to be
charged by all vehicles operated by each holder of a certificate of public convenience
and necessity under the provisions of this chapter". No rates shall be set, established,
changed, modified or amended without a hearing before the Council.
In order to consider this rate request staff has done a comparative cost of the two taxi
service for a typical trip. Table #2 analyzes the costs associated with a trip from the San
Luis Obispo Airport to Motel Row (Monterey and Garfield) which is about five (5.0) miles.
The analysis assumes the trip takes place at 10 am with the passenger using a credit card
as payment.
Table 2
Current Proposed
Fare Comparison trip Beach Cities Cab 234 Taxi
Pick Up Charge $3.00 each $ 3.00 each
Per Mile Charge 5 mi. $15.00 @ $3.00 per mile $ 17.50 @ $3.50 per mi
Wait Time Per/Hr 5 min. $2.10 @ .42 per min $4.15 @ .83 per min
Surcharge None N/A
2:30 am-6 am
Credit.Card Use Yes $4.00 $ 4.00
Minimum Charge None None
TOTAL FARE $24.10 $28.65
As seen in Table 2, the trip costs would result in a Beach Cities Cab fare of$24.10 and a
234 Taxi fare of $28.65 if the $3.50 per mile rate was approved. This would mean an
approximate nineteen (19%) percent difference in the two taxi cab trip costs. If the trip was
taken during the surcharge period (2:30 am-6 am) it would require an additional $3.00 fora
total 234 Taxi fare of$31.65 which would be 31.33% higher than Beach Cities Cab.
Staff is recommending that rates be consistent among all operators licensed within the City
of San Luis Obispo. The proposed 234 Taxi combined rates could have a significant
impact on San Luis Obispo taxi passengers and cause discrepancies in fare expectations.
Accordingly staff is recommending that the increased cost per mile request not be
approved and that the applicants be given the opportunity to make their case during the
public hearing directly to Council.
G:\Staff-Reports-Agendas-Minutes\_CAR\2008\Transit\234-TAXI L.L.C. (formerly DBA Grover Beach Taxi)\RED FILE COUNCIL
MEMORANDUM draft-234 revised taxi rate 03-26-08.doc