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Home My WebLink About09/21/2010, C5 - REVOCATION OF UNUSED TAXI PERMITS FOR 234 TAXI, LLC ADcouncil `s Sept.21,2010 agcnba REpoRt CITY OF SAN LUIS OBISPO FROM: Jay D. Walter, Director of Public Works Prepared By: John Webster, Transit Manager SUBJECT: REVOCATION OF UNUSED TAXI PERMITS FOR 234 TAXI,LLC RECOMMENDATION Adopt a resolution authorizing the City Manager to reduce the number of Taxi Permits authorized under the existing Certificate of Public Convenience and Necessity for 234-Taxi LLC within thirty (30) days of the Council action. DISCUSSION Background In July 2009, City staff was contacted by Amy Simpson, owner of 234-Taxi LLC, requesting approval for an additional ten vehicles and taxi permits for operation in the City of San Luis Obispo for a total of sixteen permits. At that time, 234-Taxi was operating six permitted taxis within the City of San Luis Obispo. The Council approved the additional ten taxi permits on July 21, 2009 on a one-year trial basis. As of this date, none of the additional permits have been utilized by 234-Taxi and the one-year trial basis is over. Information provided by Ms. Simpson indicates that the present economy is the main factor in preventing the expansion of her current fleet. She anticipates adding three vehicles within the next twelve months. Based on this information, and the fact that Ms. Simpson does not object to the reduction, staff is recommending that the taxi permits issued for 234-Taxi, LLC be reduced to nine. This amount accommodates the six vehicles currently operated by 234- Taxi, LLC and allows three additional permits to meet the needs for future expansion. 234 Taxi can reapply for additional permits at any time when the economy improves and market conditions appear favorable. CONCURRENCE The Police Department has reviewed and concurs with the recommendation provided in this report. The owner of 234 Taxi, Amy Simpson concurs with the recommendation. FISCAL IMPACT There is no fiscal impact by reducing the number of unused taxi permits for 234-Taxi; LLC. W � r Reduction of unused Taxi Permits Page 2 ALTERNATIVE Deny request for revocation of permits. The City Council may choose to maintain the current number of total taxi vehicles/permits in the City, and deny the recommendation at this time. Staff is not recommending this alternative as it would create an artificially high number of permits approved for use in the City, but not guaranteed that they are in operation. Pursuant to Section 5.20 of the municipal code permits issued to taxi companies should be in use or returned to the' city for potential use by others and if the Council determines there is a public need for additional taxicab service. ATTACHMENTS 1. Resolution 2. Staff report from July 21, 2009 T:\Council Agenda ReportsTublic Works CAR\20 I O\Transit\CAR-234 Taxi unused Certificates of Convenience reduction-09-21-2010\CAR 234-Taxi UNUSED CERTMCATES OF CONVENIENCE-REDUCTION 09-21-2010,doc Attachment#1 RTfRCHMENT 1 RESOLUTION NO. (20 10 Series) RESOLUTION REDUCING THE TEN (10)ADDITIONAL TAXI PERMITS APPROVED FOR 234-TAXI,LLC TO THREE (3) WHEREAS, the City Council of the City of San Luis Obispo desires to provide for taxi service for its citizens; WHEREAS, Beach Cities Cab, 234-Taxi,LLC and Surf Cab Company are the current taxi operators in the City of San Luis Obispo; WHEREAS, in accordance with the provisions of San Luis Obispo Municipal Code Chapter 5.20, the City had evaluated the demand for additional taxi permits in the City; and WHEREAS, the City had determined the need for an additional ten (10) taxi permits in the City assigned to 234 Taxi, LLC on a one year trial basis that was approved on July 21, 2009; and WHEREAS, 234, Taxi, LLC has not expanded their fleet vehicles operating in the City during the last twelve months due to the present economy, NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of San Luis Obispo as follows: SECTION 1. The City manager or her designee is hereby authorized to reduce the unused number of ten (10) additional Taxi Permits authorized on July 20, 2009 under the existing Certificate of Public Convenience and Necessity for 234-Taxi L.L.C. to three (3) within thirty (30) days of the Council action. The total number of permits assigned to 234 Taxi, LLC after such action would be nine(9). CS �� Resolution No. (2010 Series) Page 2 ATTACHMENT 9 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 , 2010. David F. Romero Mayor ATTEST: Elaina Cano City Clerk APPROVED AS TO FORM: istine etric c ity Attorney CS- � ATTACHMENT#2 '- ME !AJ_LL.LM_Ll2counat M.-in D� July 21,2009 j acEnaa REpoRt h=Nily CITY OF SAN LUIS OBISPO FROM: Jay D. Walter, Director of Public Works Prepared By: John Webster, Transit Manager SUBJECT: REQUEST FOR ADDITIONAL TAXI PERMITS FOR 234-TA3[I,LLC RECOMMENDATION Adopt a resolution authorizing the City Manager or his designee to process ten (10) additional Taxi Permits under the existing Certificate of Public Convenience and Necessity for 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 LLC (formerly Grover Beach Taxi) requesting a Certificate of Public Convenience and Necessity, and Taxi Permits to operate six (6) vehicles in the City which was ultimately approved on April 1, 2008 by the Council (Resolution No. 9970 (2008 series) on a one-year trial basis. To date there have not been any formal complaints filed regarding 234-Taxi LLC operations and its permit became permanent on the annual renewal date in April 2009. In July 2009, City staff received emails from Amy Simpson requesting approval for an additional ten (10) vehicles and taxi permits for operation in the City of San Luis Obispo. During follow-up telephone conversations, Ms. Simpson provided additional information as well as a commitment to leave her existing taxi rates at the level approved by Council on April 1, 2008 until she can further evaluate the impact that the ten additional fleet vehicles will have on her operations. Experience and Financial Responsibility of the Applicant The applicant 234-Taxi, LLC has been operating in the Five Cities area since April of 2000 and within the City since April 2008. Staff has concluded that its operations appear sound and found that the applicants appears to have remained profitable and seek to expand their business in the county. Since 234-Taxi LLC started service within the City there have not been any complaints, issues or incidents in connection with their existing fleet or service operations in the City of San Luis Obispo. Vehicle Fleet Mix and Color Scheme The applicant is proposing to add ten(10)additional vehicles,and when combined with the existing six (6) taxi permits, it would bring the 234-Taxi LLC fleet total to sixteen (16) vehicles. The ten proposed vehicles would be 1999-2002 Ford Crown Victoria's powered by compressed natural gas (CNG) and, according to information provided, be more economical and environmentally friendly to operate than gasoline models.In order to differentiate from Beach Cities Cab and Green—Go taxi the primary 234-Taxi LLC color scheme will continue to be white with yellow, red, and black ATTACHMENT#2 -'� A19ACHMEW2 Determination of Need for Additional Taxi Permits Page 2 highlighting. Signs will have the 234-Taxi LLC logo along with the telephone number (805) 234- 8294. 348294. Rates There are no proposed rate changes at this time. Existing Rates-Table 1 Current Current Current Fee Type Beach Cities Cab Green Go 234 Taxi Pick U $ 3.00 $4.00 $ 3.00 Per Mile $ 3.00 $2.50 $3.00 * Wait Time Per/Hr $25.00 $ 15.00 $25.00 Surcharge 2:30 am-6 am None None 1 $3.00 Credit Card Use None None None Minimum Charge None 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 he 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$15 per hour rate is approximately$.25 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. Need for additional taxi services Staff has concluded that there appears to be sufficient demand for additional service, however, given the previous experience with multiple taxi operators there is a potential risk that too much service could result in some operators not making a profit and may cause operational problems. Therefore, based upon 234-Taxi's good record and the likelihood that additional demand exists, we are recommending a one-year trial basis for the additional taxi permits to review impacts of the anticipated additional service. As previously done with other operators, a permanent certificate eligible to be renewed annually can be issued at the end of that trial period, if there are no serious complaints or violations of the Municipal Code. CONCURRENCE The Police Department has reviewed and concurs with the recommendation provided in this report for additional permits. FISCAL IMPACT There is no fiscal impact to the General Fund by approving additional taxi permits for 234-Taxi LLC. ALTERNATIVE Approve permits without trial period. The City Council may choose to approve the additional taxi permits without any stipulation regarding a one-year trial basis. �� ATTACHMENT#2 �- JOHN Determination of Need for Additional Taxi Permits Page 3 Deny request for additional permits. The City Council may choose to maintain the current number of total taxi vehicles/permits in the City, and deny the request at this time Deregulate taxi operations. The City Council may choose 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 alterative is that the City of San Luis Obispo would not have to regulate and administer taxi operations. Staff is not recommending this alternative as it might result in multiple taxi operators who may aggressively compete in a limited market with little City supervision to the detriment of City customers. Should the Council choose this alternative, it should direct staff to return with an ordinance modifying the Municipal Code. ATTACHMENTS 1. Letter dated July 8, 2009 requesting additional vehicles from 234-Taxi LLC 2. Resolution G:\Staff-Reports-Agendas-Minutes\_CAR\2009\Transit\234 TAXI ADDITIONAL TAXI REQUEST-07-21-2009\CAR 234-Taxi Increase Fleet TAXI PERMITS-07-21-09.doc �p