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HomeMy WebLinkAbout03/17/2009, PH3 - DETERMINATION OF NEED FOR ADDITIONAL TAXI SERVICES i council 'Vftarch17,2009 agcnba RepoRt �H � CITY OF SAN LUIS OBI SSnP1`O FROM: Jay Walter, Public Works Directo doo Prepared By: John Webster, Transit Manager SUBJECT: DETERMINATION OF NEED FOR ADDITIONAL TAXI SERVICES RECOMMENDATION 1. Adopt a resolution, declaring the need for operation of three taxi operators in the City of San Luis Obispo. 2. Authorize the City Manager or his designee to process the Certificate of Public Convenience and Necessity and Taxi Permit to Green-Go.Taxi L.L.C. on a one year trial basis. DISCUSSION Background On July 24, 2008, the City of San Luis Obispo received an application from Deven and Frank Wek of Green-GoTaxi LLC requesting consideration of a Certificate of Public Convenience and Necessity, and issuance of a Taxi Permit for operations in the City. The 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. Over the last two decades there have been several taxicab operators. At times there have been two and sometimes only one. Currently there are two operators. 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 then had two licensed taxi operators until Central Coast Cab ceased operations in October 2005. Beach Cities Cab Company had been the sole taxi operator licensed to operate in the City of San Luis Obispo until April 2008 and overall this company provides adequate service. Some recent issues regarding charging flat rate fares, unauthorized vehicles and non-permitted drivers are currently under review by City staff. Determination of Need for Additional Taxi Services Page 2 As for the second operator 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 consideration of a Certificate of Public Convenience and Necessity, and issuance of a Taxi Permit for operations in the City which was ultimately approved 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 it is likely a permanent permit will be allowed for their continued operations. The City has received public requests from time to time asking for more options in vehicle access and private transportation. Due to the fact that the free ride home service operated by Ride-On Transportation ended a number of years ago and along with an increased awareness and enforcement of DUI laws, staff believes there is a sufficient client base to allow three operators to exist within the City and increased competition is not expected to be significant with one or two additional vehicles being added to the taxi fleets serving the City. Experience and Financial Responsibility of the Applicant The applicant Green-Go Taxi LLC does not have any direct experience operating a taxi service but staff has reviewed their financial status and business experience and has concluded that their limited (one vehicle to start) operation proposal appears sound. In addition, according to the application letter they have staff in place which includes drivers, and dispatchers, as well as attorney Harold V. Messick on retainer. Staff was also recently informed that Green-Go has been licensed to operate in Arroyo Grande and have an upcoming hearing for Pismo Beach operations. Vehicle Fleet Mix and Color Scheme According to Attachment 1, the applicant is proposing to utilize one (1) Toyota Prius Hybrid . vehicle and intends to increase the fleet as the business grows. In order to differentiate from Beach Cities Cab and 234-Taxi LLC the primary color scheme will be Green and vehicle ID #001. Signs will have the Green-Go logo and using an Eco Friendly theme along with the telephone number 805-544-GOGO (4646). Overall, the vehicle appears to be new, attractive 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. 3 -a i Determination_of Need for Additional Taxi Services Page 3 In the past staff has recommended that rates be consistent as possible among all operators licensed within the City of San Luis Obispo. The rate structure proposed by Green-Go (see table 1 below) is approximately 17% less than the per mile rate and 40% less than the wait time per hour of the current operators. This lower rate is due mainly to Green Go's proposed use of a hybrid vehicle, which allows it to pass the fuel savings along to its customers. The proposed rates if approved will have a positive impact on existing passenger fares using the new service. The Council may wish to consider establishing guidelines or policy on the intended use of a flat rate system such as from a Hotel to the Airport or Cal Poly to Amtrak Station as this has been the subject of recent complaints regarding existing taxi operations in San Luis Obispo Proposed Rates - Table 1 Current Current Proposed Fee Type Beach Cities Cab 234 Taxi Green Go Pick U $ 3.00 $ 3.00 None Per Mile $ 2.50 $ 3.00 $ 2:50 * Wait Time Per/Hr $ 25.00 $25.00 $ 15.00 Surcharge 2:30 am-6 am None $3.00 None Credit Card Use $ 4.00 $4.00 $.4.00 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$50 per hour rate is approximately$.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. Should a Third Certificate be awarded to Green-Go-Taxi LLC? 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 taxi providers 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 Green-Go Taxi LLC 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 driving. Given the previous experience with multiple taxi operators, there is a potential risk that current operators would be unable to remain profitable. Accordingly, staff is recommending a one year trial basis for this permit issuance to review impact of the additional service. As previously done with Beach Cities Cab, and 234-Taxi LLC a permanent certificate, eligible to be renewed 3 -3 Determination of Need for Additional Taxi Services Page 4 annually, can be issued at the end of that period if there are no serious complaints or violations of the Municipal Code. CONCURRENCE On September 10, 2008 the Mass Transportation Committee (MTC) unanimously recommended that this application proceed to a public hearing for a certificate of convenience and necessity (Attachment 3). The Police Department has reviewed this report and agrees with the staff recommendation. FISCAL IMPACT There are no direct fiscal impacts related to this action.. ALTERNATIVES. Alternative#1. The Council may decide to limit the number of total taxi vehicles/permits or that there is no need for a third 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. Staff is not recommending this alternative due to the expected low impact of one additional taxi vehicle on existing service. Alternative #2. 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. 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 requesting certification of convenience from Green-Go Taxi L.L.C. 2. Resolution 3. MTC Minutes 4. Taxi Color Scheme Sketch Green Go Brochure as a Council reading file document. G:\Stafr-Reports-Agendas-Minutes\_CAR\2009\Transit\GREEN GO TAXI-WEK\CAR Green-GO-Taxi Certificate of convenience and necessity-02-05-09 draft.doc ATTACHMENT#I 07-03-08 Dear Mayor and Council, We are putting in this application for a taxi cab service in San Luis Obispo for a couple of reasons. We do realize that there is already a taxi cab service operating right now,but the reason we believe our service will be different and very much a help to the environment is we will only provide Hybrid vehicles.This type of taxi cab service offers many great things for example these vehicles are extremely fuel efficient and when they are operating in the urban areas at low speeds they are powered by batteries, so that results in a reduction in noise pollution and also most importantly carbon pollution.At first we will offer one vehicle that will be available 24/7. We will be based in San Luis Obispo,so we can offer speedy pickups and drop offs. The rate will be; Initial pick up- $0.00 that will be eliminated Per mile charge -$2.25 Waiting Charge-$15.00 per hour So we do believe that there is a reason for a hybrid taxi cab service because there is none located the central coast, it is great for the environment and the costumer because we can offer lower rates because are fuel costs are lower so we give that saving to the consumer. If this business starts to grow we have funds set aside to purchase more hybrid vehicle to provide more taxis in the area. We include a staff ready to go including drivers and a dispatcher and also for the business side we have an attorney on retainer(Harold V. Messick), that has studied all the bylaws that are associated in a taxi cab company and also we studied them as well. Currently we run a real estate development corporation and we have had up to 40 employees,through that experience I have learned a lot about how to work with many different people and work with the city officials. I will start with the one taxi but I have set aside a strong amount of cash to ensure the service will run strong.no matter what happens. I am very familiar with the San Luis Obispo area and all the local businesses and am very excited to hopefully become part of the local commerce. The name of the Taxi cab service will be known as"Green Go Taxi"because we are using hybrid vehicles and the way of the future is going green so we thought that name will fit the idea we are going for. Thank you for your time and consideration, I look forward to doing business with the City of San Luis Obispo. Sincerley, Frank Wek and Deven Wek T:\Council Agenda Reports\Public Works CAR\Transit\GREEN GO TAXI-WEKWTTACHMENTS\ATTACHMENT#I-GREEN GO APPLICATION LETTER 07-03-08.doc ATTACHMENT#I Applicants ; Frank Wek 1527 Brighton St Grover Beach,Ca 93433 805-234-0438 Deven Wek 1533 Brighton St Grover Beach,Ca 93433 805-801-7484 T:\Council Agenda Reports\Public Works CAR\Transit\GREEN GO TAXI-WEM\ATTACHMENTSWTTACHMENT#I-GREEN GO APPLICATION LETTER 07-03-08.doc 3 -� I ATTACHMENT#2 - RESOLUTION NO. (2009 Series) RESOLUTION AUTHORIZING FINDING PUBLIC CONVENIENCE AND NECESSITY JUSTIFY ON A ONE YEAR TRIAL BASIS A THIRD TAXICAB OPERATOR WHEREAS, the City Council of the City of San Luis Obispo desires to provide for taxi service for its citizens; WHEREAS, Beach Cities Cab 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 Green-Go Taxi 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 on a one year trial basis for three taxi operators in the City of San Luis Obispo. SECTION 2. The rates submitted by Green-Go taxi operation and reviewed by the City Council on March 17, 2009 are hereby approved. SECTION 3. The City Manager or his designee is hereby authorized to grant a Certificate of Public Convenience and Necessity and Taxi Permit to Green-Go taxi for a one year trial basis. On motion of , seconded by , and on the following vote: AYES: NOES: ABSENT: the foregoing resolution was passed and adopted this day of , 2009. r� Resolution No. (2009 Series) Page ATTACHMEM?T 2 David F. Romero Mayor ATTEST: Audrey Hooper City Clerk APPROVED AS TO FORM: Jonathan P. Lowell City Attorney i I ATTACHMENT#3 -- MTC REGULAR MEETING APPROVED MINUTES SEPTEMBER 10-2008 ,CITY OF SAN LUIS OBISPO MASS TRANSPORTATION COMMITTEE MEETING 995 PALM ST. WEDNESDAY, September 10, 2008 CALL TO ORDER: Chairperson Susan Rains called the meeting to order at 2:40 p.m. ROLL CALL Present: Susan Rains, Tracey Amundson, Margaret Crockett, Denise Martinez, Stanley Yucikas, and Kathy Howard Absent: D. Gregg Doyle Vacant: Alternate (2) Staff: John Webster ANNOUNCEMENTS There were no announcements PUBLIC COMMENTS There were no public comments. A. CONSENT ITEMS A-1 Approval of July 9,2008 Regular Meeting Minutes Ms. Crockett moved to approve the slate of minutes as presented. Ms. Amundson seconded the motion. The motion passed unanimously. T:\Council Agenda Reports\Public Works CAR\Transit\GREEN GO TAXI-WEK\ATTACHMENTSWTTACHMENT#3-MTC 1 APPROVED MINUTES 09-10-08.doc `Q ATTACHMENT#3 MTC REGULAR MEETING APPROVED MINUTES SEPTEMBER 10-2008 B. DISCUSSION ITEMS B-1. Preparation of FY 2009-11 Council advisory body recommendations Mr. Webster discussed the requirements of the Goals Memo from Ken Hampian and reported that the Council wants key input from all advisory bodies. He discussed the fiscal challenges and budget restrictions facing the City. Staff was looking for a prioritized five to seven goals for a two-year budget cycle. The MTC agreed to email recommendations for goal setting to Mr. Webster,who will return to the November regular meeting with a compilation of the MTC recommendations for discussion. C. ACTION ITEMS C-1. Short-Range Transit Plan (SRTP)—Update from Urbitran Assoc. Staff Stuart Geltman, Urbitran Assoc. representative, presented the updated information, stating there were not a lot of substantial changes and only minor modifications to the previous presentation. Highlight discussion included- • Planning Precepts: included addressing unmet needs, crowding issues, extending transit coverage, fare integration, creating Poly Canyon service, emerging corridors • System Plan: modifications to each route, additional proposed route for "cross-town"access, RTA coverage • No Trolley changes • Supported MTC action to address Ramona/Tassajara issues • New service areas and downtown transfer center He stated that once routes were finalized, Urbitran would work on the following aspects: • Implementation of schedule • Financial plan • Capital plan • Management plan • Marketing plan Mr. Yucikas discussed the possibility of the "cross-town" route to include Cal Poly/Amtrak/Airport loop. T:\Council Agenda Reports\Public Works CAR\Transit\GREEN GO TAXI-WEKWTTACHMENTS\ATTACHMENT#3-MTC 2 APPROVED MINUTES 09-10-08.doc ATTACHMENT#3 - MTC REGULAR MEETING APPROVED MINUTES SEPTEMBER 10-2008 C-2. Review_Direct staff regarding TDA performance audit recommendations Mr. Webster discussed the previous audit recommendations, the current recommendations, and the on going "report card" for upcoming meetings. Discussion highlights included: • RTA needs to improve service delivery plus a fare study • Segregation of fuel cost breakdown—diesel costs increased dramatically • Strategic Marketing Plan had not been implemented yet • Web page update Mr. Yucikas discussed the 511 Program. C-3. Review taxi application for "Green Go" Deren and Frank Wek, Green Go representatives, discussed the hybrid vehicle fleet for the taxi service and stated the vehicles were quieter than normal taxis and got 50 mpg on the highway. He stated the services would begin with two vehicles. He felt that while his company would be the third taxi service in the area, his company would improve the carbon footprint. Mr. Webster noted that staff supported the application. Ms. Howard discussed the need for a vehicle that could accommodate storage of a wheelchair/power chair in transit. Mr. Yucikas moved to recommend that staff draft a favorable report to accept the application for submittal to Council. Ms. Crockett seconded the motion. The motion passed unanimously. D. INFORMATION ITEMS D-1 Transit Manager's Report Mr. Webster recapped several points in the report, including: • Ridership report • Year-to-date Performance Indicators/charts • Contractor liquidated damages • State budget update from recent Operators meeting • Bus and Trolley replacement T:\Council Agenda ReportsTublic Works CAR\Transit\GREEN GO TAXI-WEK\NTTACHMENTS\ATTACHMENT#3-MTC 3 APPROVED MINUTES 09-10-08.doc ATTACHMENT#3 — MTC REGULAR MEETING APPROVED MINUTES SEPTEMBER 10-2008 • Federal Transit Administration grant • Federal 5317 New Freedom Grant application • SLORTA • Transit Operators Group meeting Mr. Yucikas asked that data on left-behind passengers/bikes be provided at MTC meetings to track capacity issues. He also discussed Rideshare Week participation and collaboration. D-2 Operating and Performance Reports Mr. Webster recapped the report. E. MEMBER COMMENTS Ms. Howard expressed a concern about how close the new benches were placed to the curb edge. Mr. Webster stated there were regulations in place and agreed to investigate. The meeting adjourned at 4:10 p.m. to the next regular meeting on Wednesday, November 12, 2008 at 2:30 p.m. in the Council Hearing Room. Respectfully submitted, Lisa Woske, Recording Secretary T:\Council Agenda Reports\Public Works CAR\Transit\GREEN GO TAXI-WEKWTTACHMENTSIATTACHMENT#3-MTC 4 APPROVED MINUTES 09-10-08.doc o r o 0 ° 1 - ° 0O 0 0 E' o cn l s � o � C) 0 ota CD , 0 I, 3 �3 Page 1 of 1 Council, SloCity From: George Newland [gnewland@qualitysuitesslo.com] Sent: Mon 3/16/2009 4:45 PM To: Council,SloCity Cc: SubjectTaxi Service Attachments: San Luis City Council, I read in the Tribune about a new Green-Go taxi company applying for a city license. I would like you to support this new company. It would help the community, business and visitors if we had an additional taxis to assist people getting around. Our current taxi service is spotty and inconsistent in San Luis Obispo. The addition of a"green"taxi is a good idea and will be a boost to the city. Please support the licensing of Green-Go taxi application. Thanks George Newland Managing Partner Quality Suites Hotel 1631 Monterey St. San Luis Obispo, CA 93401 Ph. 805-541-5001 Fax 805-546-9475 www.qualitysuitesslo.com Nktw Co JAf F.---D RLE G/COUNCIL TCDD DIR L�'CAO C�FIN DIR MEE I L{a �CC� '1:� B ACAO C�FIRE CHIEF DATA '3 t 0 ITE!-_,i " PFJ 'ATTORNEY p'PW DIR Qtl_. RK/ORIG ©'POLICE CHF ❑ DEPT HEADS EVIEO DIR Q'TII.Din P�:, A/EfJ?tM4r7;5 cat MCA CA-01 aloe i C�-2tG https://mail.slocity.org/exchange/slocitycouncil/Inbox/Taxi%2OService.EML?Cmd=open 3/17/2009 FEb.^ E MEE TiNG AGEs '.D'% n i l m E m "'-Al n a�u m cou c : . COUNCIL ID'CDD DIP Date: March 16, 2009 g'-BAOClr+ I AL ED FIN DIP 0_A+ A9A9Sr"ACeErFIRE CHIEF TO: City Council C3'ATTORNEY L_"PW DIP E!r'CLERK/ORIG D POLICE CHF O DEPT HEADS ZG REC DIP VIA: Ken Hampian, City Manager O LITIL DIR f"HR DIR FROM: Jay Walter, Public Works Director � '�� nM� /� &)el Z' SUBJECT: Green Go, LLC Public Hearing - amended rate structure request "&R4<_ Public Hearing #3 (PH3) on the March 17, 2009 agenda recommends approval of a new taxi operator(Green-Go Taxi LLC) within the City of San Luis Obispo. In reviewing the final report staff discovered that Table #1 of the agenda report had typographical errors 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. In addition the Green-Go per mile rate is $2.25 as noted in their application letter (attachment #1). The table below reflects the revised rates and should be exchanged for Table #1 in the Council Agenda Report. Revised Table 1 Current Current Proposed Fee Type Beach Cities Cab 234 Taxi Green Go Pick U $ 3.00 $ 3.00 None Per Mile $ 3.00 $ 3.00 $ 2.25 * Wait Time Per/Hr $ 25.00 $25.00 $ 15.00 Surcharge 2:30 am-6 wn None $3.00 one Credit Card Use $ 4.00 $ 4.00 $.4.00 Minimum Charge None None None "rate equals approximately .42 cents & .25 cents per minute respectively G:\Staff-Reports-Agendas-Minutes\_CAR\2009\Transit\GREEN GO TAXI-WEK\RED FILE COUNCIL MEMORANDUM -Green Go revised taxi rate 03-16-2009.doc