HomeMy WebLinkAbout07/21/2009, PH3 - REQUEST FOR ADDITIONAL TAXI PERMITS FOR 234-TAXI, LLC counck M°�°� July 21,2009
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CITY OF SAN LUIS O B 1 S P 0
FROM: Jay D. Walter, Director of Public Works
Prepared By: John Webster, Transit Manager
SUBJECT: REQUEST FOR ADDITIONAL TAXI PERMITS FOR 234-TAXI,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
P{ 3-/
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.
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 $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 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$15 per
hour rate is approximately$.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.
P03 -a
J
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 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.
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-Repons-Agendas-Minutes\_CAR\2009\Transit\234 TAXI ADDITIONAL TAXI REQUEST-07-21-2009\CAR 234-Taxi Increase Fleet
TAXI PERMITS-07-21-09.doc
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ATTACHMENT#1 ATTACHMENT i
234-TAXh LLC _
July 8,2009
To City Council and Staff,
1 have been approved by Green Rides Dealership for the purchase of 10 Crown Victoria's ranging
from 1999 to 2002. These vehicles run on CNG(Compressed Natural Gas).This is the same gas that
fuels our homes. A number of these cabs are already located in San Luis Obispo. I am just waiting
on approval from City Council to put them on the road. I am currently working on a grant proposal
to help subsidize converting our current fleet of six cabs to run on the earth friendly CNG. These
vehicles are more economical and environmentally friendly to run. There will be no change in posted
rates and color scheme. Hopefully once we.are completely converted to CNG vehicles,we will be
able to reevaluate our price schedule and make it more reasonable for the citizens. I am proud to say
that the carbon footprint of the taxi service in the City of San Luis Obispo will be significantly
decreased as well as our dependency on foreign oil,thus achieving our goal of becoming the only
true 100%alternative fuel taxi service in San Luis Obispo County.
The reason for the large increase in certificates is that we are the ONLY cab permitted to service the
San Luis Obispo County Airport. Due to the removal of our competition from the airport when their
permits were revoked,we became responsible for all rides to and from the airport. This has
contributed to a large increase in business. We are very thankful for this golden opportunity. But to
keep up with the steadily increasing demand for our service and to keep a good response time for
customer pick up we need to act quickly and get the cabs on the road.
Sincerely,
Amy Simpson
234-TAXI,LLC
. . . . . . . . . . . . . . . . . . . . . . .
ATTACHMENT#2 -
ATTACIiMENTcZ
RESOLUTION NO. (2009 Series)
RESOLUTION AUTHORIZING TEN(10)ADDITIONAL TAXI PERMITS FOR
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, Green-Go Taxi and 234-Taxi LLC are the current taxi
operators in the City of San Luis Obispo;
WHEREAS, the City has received an application from 234-Taxi LLC to increase taxi
permits 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 permits in the City; and
WHEREAS, the City has determined the need for an additional ten (10) taxi permits 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 taxi service in the City of San
Luis Obispo and have approved the rates in connection with 234 Taxi LLC operation.
SECTION 2. The City manager or his designee is hereby authorized to process ten (10)
additional Taxi Permits under the existing Certificate of Public Convenience and Necessity for
234-Taxi L.L.0 on a one year trial basis.
�N3 -s
Resolution No. (2009 Series) ATTACHMENTS
Page 2
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.
David F. Romero
Mayor
ATTEST:
Audrey Hooper
City Clerk
APPROVED AS TO FORM:
Jonathan P. Lowell
City Attorney
*Total 234-Taxi approved Fleet after permit transfer: 16 (6+10)
*One year trial basis
APPROVED RATES JULY 7, 2009
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 $3.00
Credit Card Use None None None
Minimum Charge None None None
PH 3 -�
HAROLD V. MESICK
Attorney and Counselor at Law RED FILE
MEETING AGENDA
1329 CHORRO STREET DATE ITEM # Pff3
SAN LUIS OBISPO,CALIF 93401
805.550.5540 VOICE
805.547.1092 FAX
hmesick@mvexcel.com /*-2o Copy
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Jul 20 2009 ErFIN DIR
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C3�ATTORNEY p'PW DIR
John Webster 171CLERK/ORIG 2-POLICE CHF
Transit Manager, City of San Luis Obispo 13 DEPT HEADS a-REC DIRC-I'Pi3 Q'UTIL DIR
919 Palm Street rS - p HR DIR
San Luis Obispo, California 93401 i NC�J nMCs �CGJCtL
BY USPS and EMAIL
RE: Objection to Request for Additional Taxi Permits for 234-Taxi, LLC
(Pursuant to Municipal Code §§5.20.060; 5.20.080; 5.20.100)
Dear Mr.Webster:
As counsel for Green-Go Taxi, LLC and Deven Wek, please note our objection to the above-
referenced request. Our grounds for raising this objection are as follows:
1. The owner of 234-Taxi, LLC makes clear in her letter of July 8,2009 "...the reason for the
large increase in certificates is that we are the ONLY cab permitted to service the San Luis
Obispo County Airport. Due to the removal of our competition from the airport when their
permits were revoked,we became responsible for all rides to and from the airport. This has
contributed to a large increase in business."
This is factually incorrect. Surf Cab Company and Green Go Taxi, LLC are permitted to service
the airport. Additionally, after discussions with Phil D'Acri, SLO County General Services and Rita Neal,
Assistant County Counsel it is our firm belief that permits to service the airport will be restored to Beach
Cities Cab immediately upon the Council's approval of our request to transfer the Certificate of Public
Convenience and Necessity to my client Deven Wek. Once these permits are granted there will be more
than enough permitted cabs to service the airport effectively(our 22 plus Surf Cab and 234-Taxi). As
noted in the staff report on this item,there is "a potential risk that too much service could result in
some operators not making a profit and may cause operational problems."
It is also clear from the applicant's letter of July 8, 2009 that she is aware of the short-term
nature of her monopoly and the "golden opportunity" presented if she acts"quickly and get(s)the cabs
on the road." This monopoly will be short-lived. Long-term impacts will likely result if the City Council
makes its decision on short-term facts.
2. 234-Taxi, LLC is asking for approval of a large number of CNG (compressed natural gas)
vehicles, claiming they are more economical; however, she proposes no benefit for the
citizens of San Luis Obispo in the form of lower rates. 234-Taxi, LLC's rate schedule is
already$1.00 more per mile than Green Go Taxi, LLC's rate and$.50/mile more than Beach
Cities Cab Company's rate. (And 234-Taxi is the only company charging a surcharge from
2:30-6:00 a.m.)Also,there is only one purveyor of CNG for vehicles in the county, which
may present problems of supply, etc.
3. It has been reported that 234-Taxi, LLC is not in compliance with Municipal Code§5.20.100
in that they do not answer calls several nights per week after 2:30 a.m., regardless of their
approval to impose a surcharge. The playing field should be level.
We understand that the City Council will do what is in the best interests of its constituents.
We respectfully request that our objections be taken into in account in determining those interests.
Yours truly,
Harold V. Mesick