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March 2, 1999
SUBJECT: AWARD OF TAXICAB FRANCHISE TO GREEN CAB COMPANY SUNNYVALE
REPORT IN BRIEF
A taxicab franchise application and required fees have been received from Green Cab Company, of Sunnyvale, CA. Staff has conducted an investigation into the applicants’ background as required by Municipal Code Section 5.36.050. After a careful review, staff has determined that the applicant meets the mandatory code requirements as established. Staff recommends that Green Cab Company Sunnyvale be awarded a non-exclusive taxicab franchise.
BACKGROUND
There are currently five valid taxicab companies franchised to operate within the City of Sunnyvale. They are: Yellow Cab Co. Peninsula whose franchise expires April, 2000; Deluxe Taxi Service Company whose franchise expires June, 2000; Express Cab Company whose franchise expires July 2000; Milpitas Cab Company whose franchise expires November 2000; and Santa Clara Cab Company whose franchise expires July 1999.
Green Cab Company Sunnyvale acknowledges and accepts the requirements of the taxicab franchise agreement. Green Cab Company Sunnyvale is also aware of the right of the City of Sunnyvale to revoke or suspend the taxicab franchise if it is determined that there is a violation or non-compliance of the terms contained in Municipal Code Chapter 5.36.
EXISTING POLICY
The term "non-exclusive franchise" as used in the Sunnyvale Municipal Code means that the City does not limit the number of like franchises in operation at one time. If an applicant meets the provisions as outlined in the Municipal Code, then the franchise to operate a taxicab service should be issued.
The City's non-exclusive franchise requirements are derived from Municipal Code Chapter 5.36. It is unlawful to operate any taxicab in the City unless the owner applies for and obtains a franchise to do so. The City Council may deny a franchise to any applicant if it appears to its satisfaction that the applicant has been convicted of certain criminal offenses, the proposed color scheme or other insignia may tend to confuse the identification with other franchises already operating within the City, or that any other reasonable cause exists which, within the City Council's sound discretion, would render the proposed operation undesirable to the City of Sunnyvale.
A franchise shall be issued for a term of two years. At the expiration of the term the franchise shall be deemed to have expired and shall no longer be valid unless a new franchise is issued under the provisions of Municipal Code Chapter 5.36. The City Council for good cause may extend the term of the original franchise.
DISCUSSION
The owner of Green Cab Company Sunnyvale has submitted information and documentation to demonstrate compliance with each of the criteria identified in Municipal Code Chapter 5.36, as outlined below.
1. Sunnyvale Business Address - The local business address required by the code is 1053 E. El Camino Real, Suite 5, Sunnyvale. This office will be open to the public from 8 AM to 5 PM, Monday through Friday. The telephone number for this office is (408) 945-1200. Available at this office will be public taxi trip complaint forms and applications for taxicab drivers. Dispatching is done from the main office in Milpitas.
2. Vehicles – Green Cab Company Sunnyvale is the registered owner of 5 company owned vehicles which have been identified for operations under this franchise. The taxicabs are identical in color schemes and markings which is dark green and yellow with "Green Cab Company" and the phone number printed in green lettering on the sides of the vehicles. Each vehicle is also identified with a specific number that is printed on the front fender on both sides.
3. Taximeter - Each taxicab which has been identified for operation under this franchise is equipped with a taximeter which must be inspected annually by the Santa Clara County Sealer of Weights and Measures. Staff has reviewed the necessary certificates and maintains copies in the applicant file.
4. Insurance – A letter of intent to insure has been provided from Reliance Insurance Company through D.W.Carr’s Insurance Agency, in the amount of $1,000,000 for bodily injury and $1,000,000 for property damage. This insurance will take effect upon receipt of the franchise, and the company understands that it may not operate without proper insurance. The City of Sunnyvale will also be named as additional insured with a 30-day prior notice of cancellation clause as required.
The City's Risk and Insurance Manager, James Harrington, has found that the letter meets the requirements of the code.
5. Criminal History - A criminal history check of the applicant was conducted as required by code. The applicant has not been convicted of any felonies, narcotics violations, or crimes of moral turpitude as referenced in the Municipal Code.
6. Experience of Owner - The investigation has revealed that the applicant, Rajinder Singh Randhawa is the owner of Green Cab Company Sunnyvale established in January 1999. The applicant has been managing Green Cab, Milpitas for two years. His partner, Gurbachen Singh, also has extensive history in the taxicab business.
7. Personnel - Individual drivers were not identified in the application, but each will be required to obtain a taxicab driver's permit issued by the Department of Public Safety. There is nothing to indicate that the applicants for taxicab driver permits will not meet the permit requirements. The applicant is also adhering to the random drug testing requirements as establish by State Law.
Although there are no Municipal Code requirements concerning standards for timeliness of taxicab company service, the applicant said that upon receipt of a call, their normal response time is fifteen minutes or less. The applicant also said that the Department of Public Safety would receive the highest priority when the company receives a call for taxicab service when the officer is standing by as a result of a call for service.
8. Fees - The applicant has paid the required franchise application fee of $287.00. He is aware of the quarterly vehicle fees that are due during the month following the quarter.
9. Fare Schedule - Green Cab Company Sunnyvale will adopt the City's maximum fare schedule of:
$1.80 Flag drop of taxi meter $1.80
Each additional mile (prorated at $0.20 each 1/9 of a mile thereafter) $18.00 Per hour waiting time when caused by traffic delay or the passenger requests (prorated at $0.30 per minute)
FISCAL IMPACT
Granting a taxicab franchise should have only minor fiscal impact on the cost of monitoring the franchise for compliance. The revenue generated from this franchise due to application fees, driver permit fees, quarterly vehicle fees, and the business license fee would approximate $3,722.00 during the first year. The revenue generated in the subsequent year will decrease to approximately $3,005.00. The decrease is due as a result of the initial application fee of $287.00 being eliminated and the renewal charge for the drivers’ permits being substantially less.
PUBLIC CONTACT
Posting of the Council agenda and publication in the San Jose Mercury News. Copies of the R.T.C. were provided to Green Cab Company Sunnyvale.
ALTERNATIVES
1. Introduce and adopt an ordinance awarding a non-exclusive franchise for taxicab service to Green Cab Company Sunnyvale for the period of March 24, 1999 through March 23, 2001, per applicant request, and authorize the City Manager to execute necessary documents of agreement.
2. Do not introduce or adopt an ordinance awarding a non-exclusive franchise to Green Cab Company Sunnyvale.
RECOMMENDATION
Staff recommends Council approve Alternative #1.
Prepared by:
Heather L. Tannehill
Operations Manager
Reviewed by:
Gil Candelaria
Commander
Reviewed by:
Regan G. Williams, Director
Department of Public Safety
Approved by:
Robert S. LaSala
City Manager
Attachments
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