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March 16, 1999
SUBJECT: AWARD OF TAXICAB FRANCHISE TO SILICON VALLEY CHECKER CAB COMPANY
REPORT IN BRIEF
A taxicab franchise application and required fees has been received from Silicon Valley Checker Cab Company, of San Jose, 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 Silicon Valley Checker Cab Company 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. On March 2, 1999, Council gave preliminary approval for a sixth franchise to Green Cab Company Sunnyvale.
Silicon Valley Checker Cab Company acknowledges and accepts the requirements of the taxicab franchise agreement. Silicon Valley Checker Cab Company 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 Silicon Valley Checker Cab Company 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 333 Cobalt Way Suite #107, 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)245-9272. Available at this office will be public taxi trip complaint forms and applications for taxicab drivers. Dispatching is done from the main office in San Jose.
2. Vehicles – Silicon Valley Checker Cab Company is the registered owner of 5 company owned vehicles which have been identified for operations under this franchise. All vehicles are 1991 or 1992 Chevrolets. The taxicabs are identical in color schemes and markings; they are orange with the company name in yellow lettering on the door and checkerboards on the front fenders. The telephone numbers are on the rear fenders.
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 will be provided with the reports upon granting the franchise agreement.
4. Insurance – A letter of intent to insure has been provided from R.S.I. Insurance Brokers, Inc. 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 applicants, Larry Silva and Donald Silva have been involved with the taxi industry for over twenty years. They currently operate Yellow Checker Cab Company in the south bay area, providing service to the San Jose International Airport as well as the Valley Transportation Authority.
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 will 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 the agreement is signed.
9. Fare Schedule - Silicon Valley Checker Cab Company will adopt the City's maximum fare schedule .
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 $3,697.00 during the first year. The revenue generated in the subsequent year will decrease to approximately $3,005.00 annually. The decrease is due as a result of the initial application fee of $287.00 being eliminated and the renewal charge for the driver 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 Silicon Valley Checker Cab Company.
ALTERNATIVES
1. Introduce and adopt an ordinance awarding a non-exclusive franchise for taxicab service to Silicon Valley Checker Cab Company for the period of April 24, 1999 through April 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 Silicon Valley Checker Cab.
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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