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Home My WebLink About07/21/2009, PH 2 - TRANSFER OF EXISTING BEACH CITIES CAB COMPANY CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY AND T council " uly21,2009 j agcnba Rpm 1�N..b� PN � CITY O F 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 EXISTING BEACH CITIES CAB COMPANY CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY AND TAXI PERMITS TO NEW OWNER RECOMMENDATIONS Adopt a resolution accomplishing the following actions: 1. Authorize the City Manager or his designee to transfer the existing Certificate of Public Convenience and Necessity and all Taxi Permits assigned to Beach Cities Cab Company (BCCC) to a new owner on a one-year trial basis. 2. Authorize the City Manager or his designee to transfer eight (8) Taxi Permits assigned to Beach Cities Cab Company to Green-Go Taxi on a one-year trial basis 3. Review and approve the current taxi rate structure for BCCC and Green-Go Taxi. 4. Give staff direction to in the future consolidate public hearings for taxi items called for under Chapter 5.20 and bring back amendments to said chapter as staff deems necessary. DISCUSSION Background The City of San Luis Obispo has had mixed experiences with multiple taxi operations in recent years, as there have been some problems with services provided by some operators. However, currently, taxi services are well coordinated with little conflict between the three operators. A Certificate of Public Convenience and Necessity and Taxi Permits were approved for Beach Cities Cab Company by Resolution No. 9198 (2001 Series) for operation of four vehicles on a one-year trial basis. The permits became permanent in June 2002. The City had two licensed taxi operators until Central Coast Cab ceased operations in October 2005. Beach Cities Cab Company was the sole taxi operator licensed to operate in the City of San Luis Obispo from October 2005 through April 2008. City Council approved Beach Cities Cab Company fleet expansions have resulted in bringing the total taxi permits for this operation to twenty (20) vehicles. Overall, this company has provided adequate service, although some recent issues of charging flat rate fares, unauthorized vehicles and non-permitted drivers have required review by City staff. A Certificate of Public Convenience and Necessity and Taxi Permits to operate six (6) vehicles in the City were approved for 234-Taxi LLC on April 1,2008 by the Council 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. On March 17, 2009, the City Council approved an application from Deven and Frank Wek of Green-GoTaxi LLC and authorized the City Manager to issue a Certificate of Public Convenience and Necessity, and a Taxi Permit to operate one (1) vehicle in the City on a one- year trial basis. OL(a Certificate of Public Convenience and Necessity Transfer Page 2 On June 25, 2009, the City received a faxed letter (Attachment #1) from Jeff Goldenberg the owner of Beach Cities Cab Company advising that he was under contract to sell the business and the proposed new owner would be contacting the City to update the existing Certificates of Public Convenience and Necessity. In a follow-up telephone conversation with staff, Mr. Goldenberg stated that he had cancelled his fleet insurance on June 25, 2009 and that the fleet coverage was now being paid for by Deven Wek, the current owner of Green-Go Taxi LLC. City staff requested and received a temporary insurance binder from Mr. Wek that covers fifteen of the twenty current Beach Cities Cab Company fleet vehicles authorized by Council under Mr. Goldenberg's Certificate of Convenience and Necessity. Mr. Wek has stated that the vehicles not covered by insurance are either out-of-service or under repair due to accidents and will not be used in taxi service unless they are added to the policy. City staff has met with Mr. Wek and his attorney Harold Mesick to discuss the purchase of Beach Cities Cab Company and the proposed transfer of Mr. Goldenberg's Certificates of Convenience and Necessity. On July 7, 2009, the City received a letter (Attachment#2) from Attorney Mesick that provided additional information regarding the sale, financial responsibility, applicant experience and proposed administration and operation of Beach Cities Cab Company. Mr. Wek proposes to operate Beach Cities Cab Company as a separate entity from Green-Go Taxi, LLC and requests the following: 1. To immediately transfer two certificates from the Beach Cities Cab Company operation to Green-Go Taxi, LLC. 2. To transfer six certificates from Beach Cities Cab Company to Green-Go Taxi, LLC operation by the end of 2009. 3. To continue to abide by the previously Council approved Beach Cities Cab Company and Green-Go Taxi, LLC rates Municipal Code Provisions The application complies with the requirements set forth in Municipal Code Section 5.20.120, which provides: "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." PHOq- Certificate of Public Convenience and Necessity Transfer Page 3 Experience and financial responsibility of applicant Until April 2009 the applicant did not have any direct experience operating a taxi service. There have been several significant obstacles since the Green-Go Taxi, LLC startup in May 2009, some of which involved citations issued by the San Luis Obispo Police Department. The financial status, business experience and operation proposal of Green-Go Taxi, LLC appears sound, but questions remain regarding the ability and intent of the applicant to abide by Chapter 5.20 regulations and the availability of City staff to properly investigate complaints from the public regarding taxi operations. Vehicle fleet mix and color scheme The applicant is proposing to continue to use the existing Beach Cities Cab Company color scheme and surfboard. Beach Cities Cab Company fleet replacements will use more fuel efficient vehicles such as the Nissan Cube. During the meeting on June 30, 2009,the applicant indicated that the Green-Go Taxi, LLC operations will continue to use hybrid-vehicle technology such as the Toyota Prius and wants to initially keep vehicle color schemes separate for business and marketing purposes. Staff concurs with this request as long as business differentiations do not mar or impede City investigations or enforcement efforts. Rates There are no proposed changes to Beach Cities Cab Company or Green-Go Taxi, LLC as this time. However, staff is recommending that clarifying language be added to the schedule for both operators to address the issue of cash fare vs. credit card fare. Council will recall this issue when the Green Go Taxi rates were initially set and it was pointed out that State law prohibits different pricing for credit as opposed to cash payments for this type of service. Existing Rates -Table 1 Current Current Fee Type Beach Cities Cab Green Go Pick U $ 3.00 $4.00 Per Mile $ 3.00 $2.50 * Wait Time Per/Hr $25.00 $ 15.00 Surcharge 2:30 am-6 am None None Credit Card Use None None 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 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$15 per hour rate is approximately$15 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. PHa �3 Certificate of Public Convenience and Necessity Transfer Page 4 Effect of Permit Transfer As a start up company, Green-Go Taxi got off to a rough start. Given the previous limited experience of the applicant, and the violations that have occurred during its initial start of operations, staff is recommending a one-year trial basis for this permit issuance and a subsequent review the applicant's ability to fulfill its obligations under the regulations after 12 months of combined operation or earlier if necessary. As previously done with Beach Cities Cab Company and 234-Taxi LLC, a permanent certificate, eligible to be renewed annually, can be issued at the staff level at the end of that trial period, provided there are no serious complaints or violations of the Municipal Code. Policy Issue As a policy issue, City staff is seeking Council direction regarding consolidation of all taxi related issues to bring before Council at public hearings on a semi-annual basis. Historically,taxi operations within the City receive increased interest from existing and potential operators after a hearing is held regarding one operator's permit. The City would benefit from additional opportunities to provide a more focused approached in evaluating all taxi operations within the City. Streamlining this process will allow City staff, with already limited resources, to more efficiently utilize staff time and comprehensively research issues. This approach may necessitate amendment of Chapter 5.20 of the municipal code. If staff determines such an amendment is necessary it will bring back a recommended ordinance change for Council consideration. CONCURRENCE The Police Department has reviewed and concurs with this report to transfer the Certificate of Public Convenience and Necessity to Green-Go Taxi, LLC. FISCAL IMPACT There are no direct fiscal impacts to the General Fund with the approval of this recommendation. ALTERNATIVES Limit permits issued. The City Council may choose to limit the number of total taxi vehicles/permits in the City of San Luis Obispo and deny request for the transfer of Beach Cities Cab Company Certificate of Public Convenience and Necessity. If this option is chosen Council may wish to provide staff with further direction regarding Taxi operating Policies within the City. 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. 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 alternative 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. Pua_` Certificate of Public Convenience and Necessity Transfer Page 5 Should the Council choose this alternative, it should direct staff to return with an ordinance modifying the Municipal Code. ATTACHMENTS 1. Letter dated June 22, 2009 from Beach Cities Cab Company regarding sale of business 2. Letter requesting transfer of Beach Cities Cab Company Certification of Public Convenience and Necessity dated July 7, 2009 3. Resolution G:\Staff-Reports-Agendas-Minutes\_CAR\2009\Transit\BEACH CITIES CAB COMPANY TRANSFER-RATE CHANGES-07-21-2009\CAR BCCC-transfer ofBCCC-Taxi Certificates of convenience and necessity to Deven Wek-07-21-09.doc JUN-25-2009 04:25 PM CAL- FORNIA CAB COMPANY 805 7�7 0132 P.01' 1 ATTACHMENT#1 Beach CitiCobpCOns Inca ATTACHMENT i Ujq ER P.O.Bax m Ta11 Frit91 CRMO Pismo BeaM C`98W a FAX(8�76T-d1� June�2,z009 City Of San Luis Obispo Attn:John Webster 9191palmst? San Luis Obispo,CA 93401 Attn John Webster: I would h1m to take this opportunity to thank you,and the City of San Luis Obispo for your business and support over the past nine plus years. Effective as of today,my company has been sold.I am sure you are already aware that my certificates ate not transferable. The new owner will be contacting you for a city council date to update their existing certificates. It has been a pleasure serving San Luis Obispo as well as a great learning expericnca Re , ff Goldenberg CFA/Founder Beach Cities Cab Companies,Inc cc: Jere Suilivan AUor any at Law Awry Hams Attorney at Law Wayne Beandoin Attorney at Law PNa-� ATTACHMENT#2 ATTACHMENT ^ HAROLD V. MESICK - Attorney and Counselor at Law 1329 CHORRO STREET SAN LUIS OBISPO,CALIF 93401 805.550.5540 VOICE 805.547.1092 FAX hmesick@mvexcel.com July 7,2009 John Webster Transit Manager, City of San Luis Obispo 919 Palm Street San Luis Obispo, California 93401 BY Email and USPS RE: Application for Transfer of Certificate-of Public Convenience and Necessity Pursuant to SLO City Municipal Code § 5.20.120 Dear Mr. Webster: Thank you for meeting with me and my client, Deven Wek, owner of Green Go Taxi, LLC on June 30, 2009. As you know, also present at that meeting were Chief Linden, City Attorney Lowell,Assistant City Attorney Dietrich, Mr. Staley and yourself. Several issues were raised regarding our request to transfer the Certificate of Public Convenience and Necessity now held by Jeff Goldernberg, dba Beach Cities Cab, Inc. Questions were raised regarding details of the purchase,financial responsibility and experience of my client, and the continued administration and operations of the company. This letter is in response to those issues. 1. Details regarding our Agreement to Purchase Beach Cities' assets On June 26, 2009 my client entered into a conditional agreement to purchase the business assets of Beach Cities Cab, Inc. (hereafter BCCI). Said agreement is conditioned on (a)the approval of the City Council of our request to transfer the existing Certificate and associated permits to my client; (b)verification that stated revenues are within 20% of the amount represented in negotiations; (c) indemnification as to existing litigation and any outstanding fees/fines owed various government agencies; and (d) other miscellaneous procedural requirements (i.e., opening of an escrow, UCC sale compliance, etc.). At no time have we intended to sidestep any rules, regulations or requirements. It is my clients' intent to operate BCCI as a separate entity from Green-Go Taxi, LLC. (He hopes however to ultimately gain approval to transform several of the BCCI taxicabs to Green-Go hybrids, particularly as the PHa--7- ATTACHMENT#2 _. ATTACHMENT o older, higher maintenance and less fuel-efficient fleet of BCCI cabs come to the end of their useful lives. ) 2. Financial Responsibility of Deven Wek,Applicant Mr. Wek has an active$1,000,000 line of credit through Santa Lucia Bank. Vice President Lea West can verify this as needed. Mr. Goldenberg is taking back a small note for the purchase of BCCI and over approximately 80%of the credit line will remain available to Mr.Wek after the close of escrow. It is our conclusion that this amount should be more than sufficient to guarantee the continued operation of BCCI and even provide for much-needed improvements in vehicles and associated business equipment. 3. Experience of Deven Wek, Applicant Mr. Wek has only operated Green Go Taxi, LLC-since March 17 of this year. Prior to that however he thoroughly researched the potential presented by operating a taxicab business. He concluded that an environmentally-friendly cab company was needed and proceeded to open one. Since he has taken the reins of BCCI (for due diligence purposes) he has gained considerably more experience. His is a "hands on" management style. He has met with each individual operator and employee of BCCI and held a company bbq where suggestions for improvement were made and grievances aired. Chief Linden had expressed concern in our meeting and questioned why she should trust us to manage both companies. Our answer is that Deven Wek is thoughtful, intelligent and motivated and is working tirelessly to understand every little detail associated with successfully operating a taxicab business. Mr.Wek wants to provide a quality service to the citizens of San Luis Obispo and promises that, if approval is granted,the Chief's and the Council's trust will be well-placed. The Chief additionally expressed concern over the quality of applicants we have sent her way. We have changed our screening process and will now do our own background checks of all potential drivers. We will additionally do our own review of all existing drivers and intend to take immediate action if we discover any undisclosed problems. We are creating the first BCCI employee handbook and will hold training sessions regarding customer service, applicable laws, rules and regulations.We are revising the Independent Contractor agreement and developing procedures to audit our own drivers and operations. 4. Administration and Operation Upon the approval of the City Council, Deven Wek will be the sole owner of both BCCI and Green Go Taxi, LLC. It is his intention to operate both companies as essentially independent entities. He will seek some economies of scale and expense reduction where sharing of certain resources is appropriate, primarily in the areas of dispatching, maintenance and training. We intend to operate a combined fleet of 21 taxicabs, currently comprising 1 Green Go cab and 20 BCCI cabs. Presently BCCI has 20 certified meters/cabs, 13 operable vehicles and 6 inoperable. We would like to be approved to transform within the next 30 days two of the out-of-service P40 - 0 ATTACHMENT#2 � ATTACHMENT a BCCI cabs to Green Go hybrids, and up to six more by the end of this year. We also plan to replace the oldest vehicles in the BCCI fleet with more fuel-efficient vehicles such as Nissan Cubes, retaining the BCCI color scheme and surfboard. We also intend to have several drivers approved to operate either BCCI cabs or Green Go cabs. We have initially sent two BCCI drivers in for permits as Green Go drivers, and plan to have several more "cross permitted." It is our request that the City Council approve the transfer of BCCI's Certificate of Public Convenience and Necessity. It is our promise that by doing so the provision of taxicab services to the citizens of San Luis Obispo will be greatly improved. We are open to suggestions regarding said improvement and will promptly provide any additional details or documents, if needed. Yours truly, Harold V. Mesick Counsel for Green Go Taxi, LLC and Deven Wek,Applicant PHS-� ATTACHMENT#3 ATTACHMENT 3 RESOLUTION NO. (2009 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, Green-Go Taxi and 234-Taxi L.L.0 are the current taxi operators in the City of San Luis Obispo; WHEREAS, the City has received an application from Deven Wek, owner of Green-Go Taxi, to transfer the existing BCCC Certificate of Convenience and Necessity and all related taxi permits to him in order that he can continue to operate Beach Cities Cab Company service 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 Deven Wek 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 Beach Cities Cab Company and Green-Go Taxi have been reviewed by the City Council on July 21, 2009 and are hereby approved. SECTION 3. The City Manager or his designee is hereby authorized to transfer the existing Certificate of Public Convenience and Necessity and all Taxi Permits assigned to Beach Cities Cab Company to the new owner, Deven Wek, on a one-year trial basis. SECTION 4. The City Manager or his designee is hereby authorized to transfer eight(8) Taxi Permits assigned to Beach Cities Cab Company to Green-Go Taxi on a one-year trial basis. SECTION 5. The City Manager or his designee are authorized to take further actions to effectuate the intent of the City Council's actions as set forth in this resolution. SECTION 6. Staff is authorized to endeavor to consolidate and combine hearings on taxicab related matters, as practicable. Staff may return to Council with suggested amendments to Chapter 5.20 for Council's consideration to aide in such consolidation efforts. P Resolution No. (2009 Series) ATTACHMENT3 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 , 2009. David F. Romero Mayor ATTEST: Audrey Hooper City Clerk APPROVED AS TO FORM: Jonathan P. Lowell City Attorney *Total Beach Cities Cab Company approved Fleet after permit transfer: 12 Vehicles(20-8) *Total Green-Go Taxi approved Fleet after permit transfer: 9 (1+8) *One year trial basis Approved July 21,2009 Current Current Fee Type Beach Cities Cab Green Go Pick U $ 3.00 $4.00 Per Mile $ 3.00 $ 2.50 * Wait Time Per/Hr $ 25.00 $ 15.00 Surcharge 2:30 am-6 am None None Credit Card Use None None Minimum Charge None None c o n n c,L m c m o RA n l um if k 1 MsY. ti.W k t . Date: July 21, 2009 RED FILE F.CO3O UNCIL LYCDD DIR ��'r'�R' aFIN DIR TO: City Council MEETING AGENDA 9 ftrMM4e Cy-FIRE CHIEFDATE o ITEM # Pµa RI(OM l 'POL CE CHFT HEAD8 2-pEC DIRFROM: Jay Walter, Public Works Director ht IL DIR SUBJECT: RED FILE-Item PH-2 BEACH CITIES CAB COMPANY. _06wn _, uixr Additional information regarding this item has been brought to the attention of City staff by Amy Simpson, co-owner of 234-Taxi. The Transit Manager received an email of July 17, 2009 (attachment 1) regarding allegations of violations of Municipal Code Section 5.20 by Beach Cities Cab Company (BCCC). In addition, Ms. Simpson sent an email dated July 16, 2009 to the City Council expressing other concerns about the proposed transfer of certificates to the proposed new owner of BCCC (attachment 2). The Transit Manager was able to verify first-hand potential violations relating to the name of business used, offering to carry more than eight passengers, and charging a flat rate not approved by the City Council, via a direct call to BCCC at approximately 8:54 p.m. the same day. The dispatcher answered the phone as San Luis Cab, and offered to provide a 10 passenger van using a flat $4.00 per person flat rate. The Transit Manager made an unannounced site visit on Saturday, July 18, 2009 and confirmed that a flat rate card (attachment 3) was posted in one of the BCCC Vans approved for SLO operations. With regard to allegations pertaining Green-Go Taxi, that company began operating in San Luis Obispo in late March 2009. On April 25, 2009, the Police Department issued one citation to a Green-Go driver for operating a Green-Go taxi without a valid driver permit. This driver had been warned by an officer several days prior, and when the officer saw the driver again operating the taxi in the City without a permit, he was issued a citation. Mr. Wek recently informed staff that this driver has since been terminated from employment at Green-Go, thus, staff considers this no longer to be a concern. In addition, Police Department staff had difficulty with another driver applying for a taxi driver permit regarding the payment of City fees. This latter issue was resolved without further action. Ms. Simpson's email asserts Mr. Wek may have criminal convictions that may disqualify him from obtaining a City permit. The Police Department cannot, by law, release any criminal conviction information. However, at the time of his application to operate Green-Go Taxi, Police Department staff conducted a criminal history check of Mr. Wek and determined that there was no information that would disqualify him from owning or operating a taxi company. Mr. Wek has not submitted an application to drive a taxi. NEW ALTERNATIVE Because of the continuing pattern of non-compliance and the fact that Mr. Wek has not �1\ satisfactorily completed hrs 'one year trial period running Gtt en Go Taxi, staff is proposing an Alternative action for Council consideration as follows: Limited Permit Transfer. The City Council may choose to limit the number of total taxi vehicles/permits assigned to BCCC in the City of San Luis Obispo and deny the request for the transfer of all 20 Beach Cities Cab Company permits. If this alternative is chosen Council may wish discuss with staff the number of permits to be approved in relation to the total number of taxi permits within the City. (As Council is aware, 234-Taxi has an item on this same agenda requesting approval of additional taxi permits for its operations.) This alternative can include allowance of the transfer of some permits now, e.g. 10, and schedule a public hearing for approximately six months from now to consider whether or not the remaining permits then not yet transferred should be transferred. Such hearing in six months would also allow Council the option to revoke permits if circumstances warrant doing so. Staff would be in favor of this limited permit transfer alternative as it would allow additional time to monitor Mr. Wek's adherence to Municipal Code Chapter 5.20, provide for a return to Council in 6 months for a hearing on the remainder of the taxi permits, and specifically contemplates the possibility of permit revocation in the case of serious instances of non compliance with City regulations. Attachments: July 17 email July 16 email Photograph g Xsta{-mpats.agend oute%ce2p09ftranstbawi cilias cab company transfer-rete chenges-07-21-2009VW fileVed file-boo;certHWa transfer-07-20-09 final.doe -- ATTACHMENT#1 Webster, John From: Amy Simpson 234-TAXI [234-taxi@charter.net) Sent: Friday, July 17, 2009 8:12 PM To: Webster, John Subject: San Luis Cab Hi John, I just wanted you to document that I called 543-1234 which is now San Luis Cab. I asked for a mini van and they offered me a 10 passenger_ van from Pismo to San Luis for $10.00 a head. It is unbelievable that a man on 1 year probation with only 1 taxi is still breaking the rules with days to go before his council meeting. The above described behavior includes three violations. Taxis are only allowed to carry 8 passengers, they are operating under a different business name and they are flat rating! This behavior clearly shows he should not be given 20 additional certificates. Please pass this complaint on to all council members and police officers because the public will be very disappointed to find out that there was knowledge of these violations and still Mr Wek was given 20 more certificates. If you feel that staff is short handed now dealing with taxis wait until he has 21 certificates to manage. I have tried to be reasonable and not waste your time with complaints but now I see the staff report says there has been little complaint amongst companies. I learned my lesson and will now be voicing all concerns to you, city council, police and media. Please take these continued violations seriously because I believe such violations are detrimental to the public and are taking away business from my drivers. Sincerely, Amy Simspon 1 ' ATTACHMENT#2 Webster, John From: Amy Simpson 234-TAXI [234-ta)d@charter.net] Sent: Monday, July 20, 2009 10:31 AM To: Webster, John Subject: July 21,2009 council meeting To: City Council From: Amy Simpson, Owner 234-Taxi, LLC Date: July 16, 2009 Re: Request for Continuance of Hearing for Transfer of Existing Beach Cities Cab Company Certificate of Public Convenience and Necessity and Taxi Permits to New Owner; Request for Additional Certificates of Convenience My name is Amy Simpson and I am the owner of 234-Taxi, LLC. I have operated a taxi company with my husband, Leland Simpson in San Luis Obispo County for 9 years. 234-Taxi, LLC was issued a permit to operate 6 vehicles in the city of San Luis Obispo April 1, 2008 on a one year trial basis. Such permit became permanent in April of 2009. Throughout our years of operation we have worked diligently to abide by all laws and regulations for the safety of the public. Pursuant to San Luis Obispo Municipal Code Section 5.20.080, 234- Taxi, LLC currently has an application for an additional 10 permits to operate taxis in the city of San Luis Obispo. Under Section 5.20.080 such application shall be granted unless an objection is filed by other certificate holders within 10 days of notification , by the Public Works Department. It appears no such objections have been made and therefore such permits shall be granted. -,'It has come to the attention of 234-Taxi, LLC that the owner of Green-Go Taxi, Deven Wek, "purchased Beach Cities Cab Company as of June 22, 2009.. (See Attachment 1 of Council Agenda Report for July 21, 2009.) As a part of such purchase Deven Wek is seeking to transfer 20 taxi certificates from Jeff Goldenberg to himself.. Mr. Wek plans to operate Green-Go Taxi and Beach Cities Cab Company as separate companies. As the owner of 234- Taxi, LLC I object to the transfer of such certificates at the current time. Mr. Wek does not have a sufficient history or record in the taxis business to justify him managing an additional 20 taxis. As stated in the Council report and by Mr. Wek's own attorney, Mr. Wek has no experience in the taxi business prior to March of 2009. (Council Agenda Report for July 21, 2009, Pg 3, Letter from Harold Mesick, Attachment 2 to Council Agenda Report for July 21, 2009. ) In March of 2009 Green-Go Taxi, LLC was granted a permit to operate one vehicle in the city on a one year trial basis. Since the issuance of this permit, Green-Go Taxi, LLC has encountered many problems with the running of just one cab. In the Council Agenda Report for July, 21, 2009, Jay Walter, Director of Public Works writes, "There have been several significant obstacles since Green-Go Taxi, LLC startup in May 20D9, some of which involved citations issued by the San Luis Obispo Police Department." (Council Agenda Report for July 21, 2009, Page 3.) It appears that additional information regarding these "significant obstacles" should be provided to the City Council before a decision is made to transfer the certificates. It has also come to the attention of 234-Taxi, LLC that Mr. Wek may have criminal convictions that may disqualify him from obtaining a city permit under municipal code section 5.20.055 and 5.08.030 and which would definitely preclude him from being a driver for the company. Further it appears that Mr. Wek plans on selling one of the taxis businesses which would require an additional request for transfer in the future. (See attachment 1, ad from Craigs List for Central Coast Cab Company posted June 26, 2009. ) An additional issue relevant to the granting and transfer of permits involves Beach Cities Cab Company's suspension from operation at the San Luis Obispo County Airport. At the current time Beach Cities Cab Company has been suspended from operation at the Airport. Since they have been suspended 234-Taxi, LLC business has increased at the Airport and additional taxi permits are needed by 234-Taxi, LLC to serve patrons at the airport who want to be dropped off in the city of San Luis Obispo. It appears that before the council can make an informed decision about whether such transfer is in the public's interest, further information should be provided to the council regarding violations of the law and regulations by Green-Go Taxi, LLC and Beach 1 - ATTACHMENT 02 Cities Cab Company. More investigation is needed to determine that Mr. Wek has good moral character and possesses sufficient financial responsibility for taking on an additional 20 taxis when he has failed to properly manage one taxi. (San Luis Obispo Municipal Code Section 5.20.120) Additional Information regarding Green-Go Taxi, LLC and Beach Cities Cab Company recent violations would properly inform the council about what the city council and public can expect from these two companies in the future. At the current time, the council is being asked to transfer 20 permits from Mr. Goldenberg to Mr. Wek and 234-Taxi, LLC has requested an additional 10 permits. Should the Council find that there is not a need for additional taxi's in the city of San Luis Obispo, 234- Taxi, LLC requests that you issue permits to 234-Taxi, LLC and reject Mr. Wek's request to transfer permits to him. It is clearly in the public's interest to grant permits to 234- Taxi, LLC rather than Mr. Wek at this time. 234 Taxi, LLC has been in business for many years and has a strong compliance and safety record. In contrast Green-Go Taxi, LLC is a new company, with little experience in the taxi industry and a growing record of legal violations. During his short time in business, Mr. Wek has not run his taxi in such a way as to inspire confidence in his ability to appropriately manage 20 additional taxis. Therefore I respectfully request that 234-Taxi's application for 10 additional taxi's be granted and Mr. Wek's request to transfer 20 certificates from Beach Cities Cab Company to Green-Go Taxi, LLC be postponed until further investigation can be done into Mr. Wek's performance as manager of Green-Go Taxi, LLC. Sincerely, Amy Simpson 234-Taxi, LLC 2 1 w , � o • y �' i , f - � -:*'C ."R '�.'�J'• � ^fir � 4 , i s ��.,- r r p r.. r ^Y�v`,�+f �.•, .fig ' t ,S . J T �t 4 , �. 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