HomeMy WebLinkAbout09/21/2010, PH3 - TRANSFER OF ALL EXISTING BEACH CITIES CAB COMPANY CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY T council 'g-ept.21,2010
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CITY OF SAN LUIS O B I S P O
FROM: Jay D. Walter, Director of Public Works
Prepared By: John Webster, Transit Manager
SUBJECT: TRANSFER OF ALL EXISTING BEACH CITIES CAB COMPANY
CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY AND
TAXI PERMITS TO NEW OWNER,TRI COUNTIES TRANSIT INC.
RECOMMENDATIONS
Adopt a resolution to:
1. Authorize the City Manager to transfer the existing Certificate of Public Convenience and
Necessity and the twenty Taxi Permits currently assigned to Beach Cities Cab Company
to a new owner on a one-year trial basis.
2. Approve the taxi rate structure for Tri Counties Transit Inc, DBA as Yellow Cab
Company of San Luis Obispo County.
DISCUSSION
Background
A Certificate of Public Convenience and Necessity as well as Taxi Permits were approved for
Beach Cities Cab Company (BCCC)by Resolution No. 9198 (2001 Series) for operation of four
vehicles on a one-year trial basis. The permits became permanent in June 2002. Since that time
the City Council has approved fleet expansions for Beach Cities Cab Company resulting in total
taxi permits for this operation of twenty vehicles. This company has provided adequate service,
although some issues have required review and enforcement by City staff.
New Ownership
On July 15, 2010, the City received a faxed letter (Attachment 1) from Jeff Goldenberg, the
owner of BCCC, advising that he was in the process of selling his business. Per the City's
Municipal Code, BCCC requested the transfer of all current taxi permits to the new owner
Masood Babaeian of Tri Counties Transit, Inc. BCCC has cancelled the fleet insurance on
August 17, 2010 and fleet coverage is now being paid for by Tri Counties Transit, Inc. City staff
requested and received a temporary insurance binder from Tri Counties Transit, Inc that covers
all of the twenty fleet vehicles under BCCC's Certificate of Convenience and Necessity.
Staff has discussed the purchase of BCCC and the proposed transfer of Certificates of
Convenience and Necessity with Tri Counties Transit, Inc. On July 19, 2010, the City received a
letter (Attachment 2) from Tri Counties Transit, Inc. that provided additional information
regarding the sale, financial responsibility, applicant experience, proposed rate structure, vehicle
color scheme and proposed administration and operation of the new Tri Counties Transit, Inc.
Municipal Code Provisions
According to staff's review, the application complies with the requirements set forth in
Municipal Code Section 5.20.120, which states:
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Certificate of Public Convenience and Necessity Transfer Page 2
"Any person having a certificate of public convenience and necessity for the operation of
taxicabs shall be authorized by the council to transfer the certificate of public convenience,
taxicab permits and taxicab stands issued pursuant thereto, unless after a hearing held for the
purpose the council shall find that such proposed transferee is not a person of good moral
character or that the transferee does not possess sufficient financial responsibility to meet the
requirements of a holder of a certificate of public convenience and necessity under this
chapter. The hearing shall be held within thirty days after the holder of the certificate of
public convenience and necessity gives notice in writing to the city clerk of the intended
transfer."
Experience and financial responsibility of applicant
According to the information provided by Tri Counties Transit, Inc. (Attachment 3), the company
"has been involved in the ground transportation industry in and around the greater Los Angeles
area for over 30 years." According to this information, Tri Counties Transit, Inc. has experience
operating a taxi fleet of over 300 taxicab and passenger vans that has expanded to include 25
handicapped accessible buses that transport over 400 clients per day. Mr. Babaeian currently
oversees multiple transportation operations, including the Yellow Cab Company of Ventura. The
applicant has provided requested bank statements and records, and staff concurs that he meets the
criteria for experience and financial responsibility under the Municipal Code.
Similar to what the City has done on other taxi permits, the transfer of these permits will be done
on a one-year trial basis to verify the operators ability to satisfy the permit requirements.
Vehicle fleet mix and color scheme
The applicant is proposing to continue to use a yellow paint scheme with BCCC logos on the front
doors and Yellow Cab Company of San Luis Obispo County logos on the rear doors. The roof-top
mounted surfboards will remain on vehicles so equipped.
Rates
The proposed rates are consistent with those approved for other operators and are reflected in
Table 1.
Existing Rates -Table 1
Proposed
Fee Type Beach Cities Cab 234 Taxi Surf Cab Yellow Cab
Company Company
Pick UJ $ 3.00 $ 3.00 $ 4.00 $ 3.00
Per Mile $ 3.00 $ 3.50 $ 3.00 $ 3.00
* Wait Time Per/Hr $25.00 $25.00 $35.00 $25.00
Surcharge(2:30 am-6 am) None None None None
Credit Card Use None None None None
Minimum Charge None 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.
Certificate of Public Convenience and Necessity Transfer Page 3
Effect of Permit Transfer
Staff does not perceive any negative effect to overall service in connection with the transfer of
these certificates. Table 2 shows the taxi permits currently approved by Council. A permanent
certificate, eligible to be renewed annually, will be issued at the staff level at the end of that one-
year trial period (provided there are no serious complaints or violations of the Municipal Code).
Table 2—Taxi Permits
Number of permitted Taxis Number of Taxis
Operator Certificate-Permits Date In Operation
BCCC 20 06-0.1-2001 20
234 Taxi 6 04-01-2008 6
234 Taxi expansion 10 *3 07-21-2009 0
Surf Cab 5 01-09-2010 5
Totals: 41 *34 31
* On September 21, 2010 the Council will consider: Reducing ten unused taxi permits by 234-Taxi, LLC to three.
(This approval will reduce the overall taxi pertnits within the city to thirty-four(*34).
CONCURRENCE
The Police Department has reviewed and concurs with this action to transfer the Certificate of
Public Convenience and Necessity and taxi permits to Tri Counties Transit, Inc. DBA Yellow
Cab Company of San Luis Obispo County.
FISCAL IMPACT
There are no direct fiscal impacts to the General Fund with the approval of this recommendation.
ALTERNATIVE
Deny Request The City Council may choose to deny request for the transfer of BCCC
Certificate of Public Convenience and Necessity and reduce the number of approved taxi permits
within the City of San Luis Obispo. Staff does not recommend this alternative due to the
potential impact that may occur with the loss of twenty taxi vehicles on the members of the
public who depend on taxi service.
ATTACHMENTS
1. BCCC Letter July 15, 2010, regarding sale of business
2. Tri Counties Transit, Inc. Letter July 19, 2010, requesting transfer of taxi permits
3. Applicant experience
4. Resolution
T:\Council Agenda ReportsTublic Works CAR\2010\Transit\CAR-BCCC Transfer of Certificates of Convenience to Tri Counties Transit Inc
09-21-2010\CAR BCCC-Transfer of Certificates of Convenience to Tri Counties Transit Inc-09-21-2010v2.doc
ATTACHMENT#1
Beach Cities Cab,Co., Inc_.
YOUR DESIGNATED DRIVER—
P.O.Box 886
Pismo Beeek CA 83448 Toll Free 1-866-GO-CAS-00
(805)543-1234 d FAx(806)787-0132
July 15,2010
Attn:City of San Luis Obispo
C/O John Webster
From :Jeff Goldenberg
RE: Beach Cities Cab Companies,Inc.
My Business is in the process of being sold.Per your municipal code,I am
requesting your earliest City Council date for the transfer of my permits in
your city.
Massod&Bobby Babaeiaa of Tri Counties Transit,Inc.have already purchased
Santa Barbara and Santa Maria from me.They are financially sound and have more
than 30 years of experience.
You will be receiving a letter from them requesting a Council date to get an approval
of my permits being transferred.
I will still be running the business until all cities approve the transfer.It was a
pleasure serving your city all these years.
Best Regard and Thank You,
Aloha
Jeff Goldenberg
CEO/Founder Beach Cities Cab Company, Inc
CC:Jere Sullivan-Atty at Law
CC:M400d&Bobby Babaeian
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ATTACHMENT#2
Tri Counties Transit, Inc.
83 N.Dawson Dr.
Camarillo, Ca 93012
(805)603-9296
(805)383-5546 Fax
July 19, 2010
City of San Luis Obispo
919 Palm St.
San Luis Obispo, Ca 93401
Mr. John Webster, Transit Manager
Re: Transfer of the Certificate of Public Convenience and Necessity of
Beach Cities Cab Co. to Tri Counties Transit, Inc.
Dear Mr. Webster:
Per our recent conversation as you are aware we are purchasing Beach Cities
Cab Co from Mr. Jeff Goldenberg and we hereby filing an application to transfer
the Certificate of Public Convenience and Necessity of the Beach Cities Cab Co
to Tri Counties Transit, Inc. Per the City of San Luis Obispo's Chapter 5.20
Taxicab ordinance following is information requested for a new Taxicab Owner's
permit and Certificate of Public Convenience and Necessity. We respectfully
request that this matter to be scheduled at the next city council meeting.
CHAPTER 5.20
TAXICABS
5.20.030
A: Name of applicant
Tri Counties Transit, Inc.
Doing business as:
Yellow Cab Co of San Luis Obispo County
Serving Beach Cities
83 N.Dawson Dr.
Camarillo, Ca 93012
ATTACHMENT#2
Masood Babaeian, CEO
83 N.Dawson Dr.
Camarillo, Ca 93012
B. Number of vehicles:
20
C: Designated number of each taxicab:
Each cab will be identified by a two digit company assigned vehicle number.
D: Color scheme & Insignia
Yellow Body
Yellow Cab Co of SLO County logo on the rear doors
Serving Beach Cities logo on both front doors
Cab#on front, back and both front fenders
Telephone numbers on both rear fender and trunk
E:
Refer to item# G
F: Proposed rates to be charged:
3.00 Per pickup
3.00 Per mile
25.00 Per hour waiting time/traffic delay
G. Public Convenience and necessity
Tri Counties Transit, Inc has entered into an agreement with Mr. Jeff Goldenberg
to purchase the Beach Cities Cab Co, an existing taxicab company, licensed by
the City of San Luis Obispo.
Beach Cities Cab Co has been serving the general public of the City of San Luis
Obispo for the past 10 years and it is the major taxicab company with a fleet of
20 taxicabs.
All the businesses and general public has been depending on the taxicab
services provided by the Beach Cities Cab Co.
Tri Counties Transit, Inc has the financial resources and capital to adequately
support the taxicab service for the City of San Luis Obispo residents. (Please see
PR3 -�
ATTACHMENT#2
attached Bank Statements for Tri Counties Transit, applicant and West coast
Paratransit the parent company).
We propose to operate 20 taxicabs; the type of vehicle shall be either Ford or
General motors products. The Color scheme shall be solid Yellow.
There will be no effect on the traffic congestion and parking since we are
purchasing the existing taxicab fleet.
The principal and management of the Tri Counties Transit, Inc have been the
Taxicab, Paratransit and Ground Transportation industry for the past 30 years.
We operate a fleet of 100 taxicabs and handicapped accessible buses in the
county of Ventura and Santa Barbara.
We transport more than 1000 passengers on a daily basis. We are contracted by
many public and private entities, such as municipalities, counties, hospitals,
school districts and airports in the tri counties area.
Our top priority is always has been to provide a safe, dependable taxicab service
to the public.
We take pride in our service and leadership in the ground transportation field.
We respectfully request that our application for the Certificate of Public
Convenience and Necessity to be approved so we may continue an excellent
and reliable taxicab service to the residents of San Luis Obispo community.
We thank you for your cooperation and consideration in this regard.
Most sincerely,
Masood Ba6aeian
Masood Babaeian, CEO
Tri Counties Transit, Inc.
P � 3 -�
ATTACHMENT#2
Yellow Cab Co of Beach Cities
Fleet Schedule
Cab# Year/Make License plate# VIN# Seating Capacity
A2 2000 Ford 7E38453 2FAFP71 W1 YX152746 5
D2 1996 Ford 8G23010 2FALP71 WXVX109049 5
E2 1998 Ford 6560456 2FAFP71 WXWX122219 5
G2 2000 Merc 8J91583 2MEFM75W2YX672805 5
H2 1997 Ford 8L10255 1FMFU18L1VLA79277 5
1 2000 Ford 8F29259 2FAFP73W6YX126879 5
12 1994 Linc 8J37591 1 LNLM82W3RY639761 5
K2 2000 Linc GOTTAXI 1 LNHM821 N37Y634160 5
N 2002 Ford 7Y63481 2FAFP73WX2X146530 5
O 1999 Cadi 8893193 1 G6KD54Y6XU772583 5
T 1995 Ford 7Y63478 2FMDA5144SBC84646 5
M2 1994 Merc 8N89082 2MbLM75WX6RX646695 5
Y 1994 Linc 7Y94300 1 LNLM81 W4VY656497 5
N2 1997 Ford 8N90787 2FALP74W4VX234818 5
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ATTACHMENT #3
Mr. Masood Babaeian, CEO
Tri Counties Transit, Inc.
Mr. Babaeian has been involved in the ground transportation industry in
and around the greater Los Angeles area for over 30 years. His first
transportation business venture in the greater Los Angeles area was established
in 1979 and was first comprised of an on-call limousine service that operated
primarily out of Burbank, CA. In 1984, he received his B.S. degree in Industrial
Technology from California State University, Los Angeles.
In 1985 Mr. Babaeian acquired Checker Cab Company of the Tri-City
area, which was then established and incorporated in Glendale, California.
Checker Cab's vehicular fleet consisted of 40 standard taxicab autos, and
passenger vans. Checker Cab Company expanded its service market and rider
ship over the (5) year period that it operated.
During that time Checker Cab was at the forefront of providing assistance
for multiple local and national civic volunteer charity service organizations that
included: The American Red Cross, The American Heart Association, YMCA of
Glendale, Glendale College Foundation, Glendale Memorial Hospital, Friends of
the Glendale Public Library, City of Glendale Parks, Recreation, and Community
Services and others. All of which have honored Mr. Babaeian and Checker Cab
with special distinctions of merit during his tenure with the company.
By summer 1991 Checker Cab Company had expanded its operations
throughout the greater Los Angeles area with a fleet of 300 taxicab and
passenger van vehicles. In 1995, Mr. Babaeian consolidated the Checker Cab
Company and placed his business focus primary on providing quality
transportation for the elderly, handicapped and developmentally disabled of
greater Los Angeles.
In December 2002, Mr., .Babaeian formed West Coast Paratransit, Inc
which was based in Newbury Park, California. West Coast Patratransit
contracted with Tri Counties Regional Center to transport. mentally challenged
individual in the Ventura County with a fleet of 5 Handicapped accessible buses.
Today West Coast Paratransit operates 25 Handicapped accessible buses and
transports over 400 clients on a daily basis.
By March of 2004 Mr.Babaeian acquired the Yellow Cab Co of Ventura
County with a fleet of 35 taxicabs, due to his hard work and dedication the Yellow
Cab Co has expanded into a fleet of 50 taxicabs and serves over 800
passengers on a daily basis.
As the CEO of Tri Counties Transit he oversees the multiple transportation
operations currently offered by Tri Counties Transit. These operations include
ATTACHMENT#3 �J
community area transit programs, Guaranteed Ride Home programs, and elderly
and developmentally disabled transportation programs throughout Southern
California. Mr. Babaeian is ultimately responsible for all decisions relating to the
recruitment, screening, hiring, training, management and discipline of all
operations personnel for Tri Counties Transit.
Mr. Babaeian brings this specialized experience to Tri Counties Transit
and regularly reports to its Board of Directors. Mr. Babaeian serves as
communication liaison to all Tri Counties Transit clients, as well as all City and
County agencies, developing and implementing a multifaceted range of
transportation programs. His transit background includes experience in the
following areas:
0 Metro Link Shuttle Services
0 Fixed Route Management
0 Specialized Transportation Services
0 SCAQMD Regulation 15 Planning and Operations
0 Specialized Transportation Budget Planning
0 Shared Ride Services
0 Paratransit Scheduling and Planning
The cornerstone to providing for the successful foundation of his effective
management style, Mr. Babaeian maintains an 'open door' policy with all his
employees, and it has been this commitment to facilitating these direct lines of
communication that illustrates Mr. Babaeian's managerial effectiveness. This
philosophy has been an essential part of Mr. Babaeian's entrepreneurial success,
and his leadership and experience allows the Tri Counties team to provide
exceptional service to all its clients.
Mr. Babaeian' knowledge and expertise will greatly benefit the City of San
Luis Obispo. He will have daily input and be ultimately responsible for the City of
San Luis Obispo Taxicab Services. Mr. Babaeian will be directly involved with all
day-to-day operations and management.
i
ATTACHMENT#4 _ _J
RESOLUTION NO. (2010 Series)
RESOLUTION AUTHORIZING THE TRANSFER OF EXISTING BEACH CITIES CAB
COMPANY CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY AND ALL
RELATED TAXI PERMITS TO NEW OWNER
WHEREAS, the City Council of the City of San Luis Obispo desires to provide for taxi
service for its citizens;
WHEREAS, Beach Cities Cab (BCCC), 234-Taxi L.L.0 and Surf Cab Company are the
current taxi operators in the City of San Luis Obispo;
WHEREAS, the City has received an application from Masood Babaeian, owner of Tri
Counties Transit Inc, to transfer the BCCC Certificate of Convenience and Necessity and all 20
related taxi permits to him that he can operate a taxi service Doing Business As Yellow Cab
Company of San Luis Obispo County, in the City as a separate entity;
WHEREAS, in accordance with the provisions of San Luis Obispo Municipal Code
Chapter 5.20, the City has evaluated the demand for taxi service in the City; and
WHEREAS, the City has determined the need for service as provided by Beach Cities
Cab Company in the City should continue and that its transfer to Masood Babaeian should be
allowed 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 taxi.service in the City of San
Luis Obispo
SECTION 2. The rates submitted by Tri Counties Transit Inc DBA Yellow Cab
Company of San Luis Obispo County, were reviewed by the City Council on September 21,
2010 and are hereby approved.
SECTION 3. The City Manager or her designee is hereby authorized to transfer the
existing Certificate of Public Convenience and Necessity and 20 Taxi Permits assigned to Beach
Cities Cab Company to the new owner Masood Babaeian, of Tri Counties Transit,Inc, DBA
Yellow Cab Company of San Luis Obispo County, on a one-year trial basis.
SECTION 4. City Staff will monitor the performance of the new ownership during the
one year trial period and, if there are no violations of the pertinent municipal code provisions, the
transfer of the certificates will become permanent, subject to continuing good performance.
Resolution No. (2009 Series) �.
Page 2
On motion of , seconded by , and on the
following 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 O
I
Offi
stine Dietrick
City Attorney
*One year trial basis
Approved September 21,2010
Tri Counties Transit Inc
Fee Type DBA
Yellow Cab Co of SLO County
Pick U $3.00
Per Mile $ 3.00
* Wait Time Per/Hr $ 25.00
Surcharge(2:30 am-6 am) None
Credit Card Use None
Minimum Charge None
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