HomeMy WebLinkAbout11/06/2001, PH 5 - DETERMINIATION OF NEED ANALYSIS FOR CONSIDERATION OF APPLICATION OF FIVE CITIES CAB TO OPERATE TAXI council
j acenda Repoat '�N P
CITY O F SAN LUIS 0 B I S P O
FROM: Mike McCluskey, Director of Public Works `-
Prepared By: Austin O'Dell,Transit Manager
SUWECT: DETERMINIATION OF NEED ANALYSIS FOR CONSIDERATION
OF APPLICATION OF FIVE CITIES CAB TO OPERATE TAXI
SERVICE IN SAN LUIS OBISPO
CAO RECOMMENDATION
Adopt a resolution accepting the application of Five Cities Cab Company to operate taxi service in
the City of San Luis Obispo on a one=year trial basis.
DISCUSSION
Background
On May 27, 2001, City Council determined the need for an additional taxi operator in the City of San
Luis Obispo. The City Council determined that the City was ready for taxi service to compete in a
free market system and that there was a genuine need for additional taxi service in the City. As
requested, staff returned to Council with a resolution on June 19,2001 for the issuance of a Certificate
of Public Convenience & Necessity and a Taxi Permit to Beach Cities Cab Company. Two taxi
companies now operate in the City.
On June 15, 2001, staff received an application for a Certificate of Public Convenience & Necessity
and a Taxi Permit from a third company,Five Cities Cab Company of Santa Maria, California.
Prior to granting a Certificate of Public Convenience & Necessity and a Taxi Permit, the City must
determine if there is a need for additional taxi service. In accordance with Municipal Code Sections
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 new taxi permit.
The request from Five Cities Cab Company is unique. Currently, Five Cities Cab is able to legally
transport patrons from outside the City to various areas inside the city limits. The Municipal Code,
however; prohibits taxi operators without a Certificate of Public Convenience & Necessity and a
Taxi Permit from providing the return trip; i.e pick-up inside the City and deliver to areas outside
the City. Five Cities Cab has stated that it is not interested in providing service within the City;
but rather,just seeks approvals for the ability to provide their original patrons a return trip to their
home or hotel.
Municipal Code Requirements
In determining whether or not the City should grant a Certificate, a number of issues must be
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Council Agenda Report—Five Cities Cab Permit Request
Page 2
examined. According the Municipal Code 5.20.030, applicants must satisfy minimum requirements
that include: experience, financial responsibility, and proposed fleet and color schemes. The
following information discusses these requirements in greater detail.
Experience and Financial Responsibility of the Applicant. The Municipal Code requires that the .
applicant demonstrate the ability to operate successfully within the city.Five Cities Cab Company has
been operating in the Cities of Arroyo Grande, Pismo Beach, Paso Robles, and the County of San
Luis Obispo. Although the business has only been operating for five (5) years, the applicant has
demonstrated solid business skills, good customer service, and financial responsibility, as evidenced
by the fact the applicant has remained profitable and is expanding his business. The applicant has also
demonstrated to the Transit Manager that they have the financial resources to expand operations into
the city without endangering business operations in other areas of the county. In reviewing this
application,neighboring cities were contacted regarding Five Cities Cab to determine current and past
performance levels. Five Cities Cab has valid permits in all locations and no complaints have been
received by the jurisdictions within which they operate.
Vehicle Fleet M&and the Color Scheme that Will Be Used. Confusion regarding taxi vendors due to
similar color schemes is an important issue. As shown in Attachment 2, the applicant is proposing to
utilize one Ford Minivan with a primary color scheme that is white and teal. Overall the vehicle is
new, attractive and clean. This proposed color scheme and vehicle does not conflict with either of the
two existing taxicab operators so vehicle/vendor identification will not be an issue if Five Cities Cabs
is allowed to operate in the city.
Review of Current Service. Central Coast Taxicab has been operating taxicab service in the City
for a number of years. Earlier this year, Council considered a request for a taxi permit from Beach
Cities Taxicab and determined that opening up the taxi market would allow the public to have
greater choices in choosing a taxi provider. Both companies have complied with all requirements
of the Municipal Code and service appears generally to be successful and publicly used. While taxi
service levels in general appear to be sufficient, there are specialty service areas (such as the Five
Cities request) that may be served by an additional company.
Need for Additional Taxi Service
As stated above, the City Council determined there is a need for more than one taxi operator in the
City. So far,the City has limited experience with the two taxi operators. There have been no reported
problems since Beach Cities Cab started operating in the City earlier this year. The Five Cities Cab
permit request is a unique one. Their request is to perforin "return" trips for residents that use their
service from Five Cities' existing service areas. Some, but not all, of these trips may be currently
provided by the two existing taxi vendors. However, there is a solid argument that allowing people to
return to their origin using the same taxi vendor will reduce confusion and improve service for non-
local riders such as tourists that may not know each of the taxi vendors and where they are allowed to
operate. This, coupled with the fact that the Council has already expressed a desire to "free up" the
taxi market would indicate that the Five Cities Cab request is valid.
Because a conditional taxicab permit (i.e. limiting their hours and locations of service to return trip
only) would be difficult if not impossible to enforce, staff is recommending that the permit request be
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Council Agenda Report—Five Cities Cab Permit Request
Page 3
approved as a full service permit able to operate within the city at all hours and locations. While this
permit approval may lead to greater competition with the two existing taxi vendors, staff believes that
Five Cities Cab will honor their request to only supply round trip service and will not pursue other
areas of the taxicab market that may cause problems. Staff will monitor all taxi providers to insure
that negative impacts and issues do not arise from issuance of this permit and will assess each
provider to determine the need for continued service within the city.
FISCAL IMPACTS
There will be no financial impact to the General Fund by approving the CAO Recommendation.
ALTERNATIVES
The issuance of a Taxi Permit is under the sole purview of the City Council and as such, a number
of alternatives exist that the Council may wish to consider.
Alternative 1. The Council may determine that there is a need for a third taxi operator in the City
of San Luis Obispo but that the permit should be conditional — limiting the time, place and nature
of the service allowed. This alternative is not recommended; because the service would be
difficult, if not impossible, to enforce.
Alternative 2. The Council may determine that there is not a need for additional taxi service at
this time. This alternative provides Central Coast Cab and Beach Cities Cab, the two existing taxi
providers, the opportunity to continue to conduct service and build upon their success without
additional competion that may reduce revenue. If both taxi operators are able to remain financially
viable and specialty areas of the taxi market go unserved, the City could approve a Certificate of
Public Necessity and Convenience for a third taxi operator at some future date if the demand
remains.
Alternative 3. 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. The disadvantage to this alternative is that it may result
in multiple taxi operators, who would aggressively compete in a limited market with little City
supervision. Should the Council choose this alternative, it should direct staff to return with an
ordinance modifying the Municipal Code.
ATTACHMENT
1. Resolution
2. Application from Five Cities Cab,Photos of Beach Cities Cab Company taxis.
G:\Transportation\Transit\Taxicabs\Five Cities Cab\CAR Five Cities Cab Need Determination Analysis vl.doc
5-�
ATTACHMENT 1
RESOLUTION NO. (2001 Series)
RESOLUTION DECLARING THE NEED FOR AN ADDITIONAL TAXI
OPERATOR IN THE CITY OF SAN LUIS OBISPO ON A ONE YEAR TRIAL
BASIS
WHEREAS, the City Council of the City of San Luis Obispo desires to provide
for taxi service for it's citizens; and
WHEREAS, Central Coast Taxicab and Beach Cities Cab Company are the
current taxi operators in the City of San Luis Obispo; and
WHEREAS, the City has received an application from Five Cities Cab Company
to operate taxi service in the City; and
WHEREAS, 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 that the City Council declares the
following:
1. There exists the need for multiple taxi operators in the City of San Luis
Obispo;
2. The City Administrative Officer or his designee is authorized to execute
the Certificate of Public Convenience and Necessity and Taxi Permit to
Five Cities Cab Company on a one year trial basis, in accordance to the
Municipal Code 5.20.
On motion of , seconded by , and
on the following roll call vote:
AYES:
NOES:
ABSENT`.
J ATTACHMENT 1
Resolution No. (2001 Series)
Page 2
The foregoing resolution was passed and adopted this day of , 2001.
Allen Settle, Mayor
ATTEST:
City Clerk
/jWoy
ATTACHMENT 2
M.M. J- GROM 805937-7694
DDA, S.M.V. TAXI
and 5 CRY TAXI -
P.O.DOX 92
SANfTA MARIA,CA
June 13,2001
Mayor and City consul San Luis Obispo
I like to ask you if it is possible to get a permit in the city of S.LO.
Here is my reason, I operate a ta>a company in the 5 city area and there has been several times that
We take people to your city for dinner,special on the weekend , but the problem is that we are not able
To pick them up again because I do not have a permit in you city.
I like to ask you to give me a pemrit to came to your city and be able to pick up the people that I have
taken there and return them to the hotel in the 5 city area.
I will not came to you city and take business away from the taw's already there because I don't have
the equipment to do this anyway.
I will be happy to explain in more detail at you consul meeting.
Best regards
M.M.de Groot
S- �
ATTACHMENT 2
M.M. DE G� 80593 X 92 SANTA MARIA,CA.83456
605 937 7694 r
DBA S.M.Ys TAXI
5 CITY TWO
JUiti' i F'
June 18,2001
CITY CODE S.LO.CITY
SEC. 5.20.030
B. THE NUMBER OF VEHICELS 1
C. DESIGNATED NUMBER OF EACH TAXI CAB 1.
E. JUST TO BE ABLE TO RETURN PASSENGERS BACK TO THE 5 CITY AREA
F. SEE COPY.
SEC.520.050
C. 5 CITY TAXI AND SANTA MARIA VALLY TAXI HAVE BEEN IN OPERATION FOR 5 YEARS.
E. THERE WILL BE NO EFFECT ON TRAFFIC OR PARKING WfTH THIS SERVICE
F. THE ADDITIONAL TAXI SERVICE WILL ONLY IMPROVE THE SERVICE TO THE PUBLIC
s- �
ATTACHMENT 2
0 Page 2 Juno 18.2(X)i
Welcome on board a
FIVE CITIES TAXI
Rate m $2 per mile
50 cents every quarter mile or 36 seconds.
Minimum - $5
Waiting time - $50 per hour
Operating tire psi - 36 lbs.
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