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June 4, 2002
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SUBJECT: |
AWARD OF TAXICAB FRANCHISE TO YELLOW CAB CO. PENINSULA, INC. |
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REPORT IN BRIEF |
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A taxicab franchise application and required fees has been received from Yellow Cab Co. Peninsula, Inc., of Redwood City, 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 Yellow Cab Co. Peninsula, Inc. be awarded a non-exclusive taxicab franchise. |
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BACKGROUND |
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There are currently six valid taxicab companies franchised to operate within the City of Sunnyvale. They are Computer Cab, Yellow Cab Co. Peninsula, Inc., Green Cab, Apple Cab, Net Cab.com and West Valley Cab. Yellow Cab Co. Peninsula has previously operated with a valid franchise agreement, which will expire on July 5, 2002. Yellow Cab Co. Peninsula, Inc. acknowledges and accepts the requirements of the taxicab franchise agreement. Yellow Cab Co. Peninsula, Inc. 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. |
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EXISTING POLICY |
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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:
A franchise shall be issued for a term of two years. At the expiration of the term the franchise shall be deemed 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. |
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DISCUSSION |
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The owner of Yellow Cab Co. Peninsula, Inc. has submitted information and documentation to demonstrate compliance with each of the criteria identified in Municipal Code Chapter 5.36, as outlined below.
The City’s Risk and Insurance Manager, Barbara Coats, has reviewed and found that the letter meets the requirements of the municipal code. |
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FISCAL IMPACT |
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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, quarterly vehicle fees, and the business license fee would be approximately $35,000 during the term of the agreement. This does not include the amount of revenue generated by the driver permits issued. |
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PUBLIC CONTACT |
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Posting of the Council agenda, posting on the City web site and publication in the San Jose Mercury News. Copies of the R.T.C. were provided to Yellow Cab Co. Peninsula, Inc. |
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ALTERNATIVES |
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1. Introduce and adopt an ordinance awarding a non-exclusive franchise for taxicab service to Yellow Cab Co. Peninsula, Inc. for the period of July 11, 2002 through July 10, 2004, per applicant request, and authorize the City Manager to execute necessary documents of agreement. |
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2. Do not introduce or adopt an ordinance awarding a non-exclusive franchise to Yellow Cab Co. Peninsula, Inc. |
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RECOMMENDATION |
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Staff Recommends Council approves Alternate #1. |
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Prepared by: |
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Reviewed by: |
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Approved by: Robert S. LaSala City Manager |
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Attachments |
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