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June 18, 2002
SUBJECT:
AWARD OF TAXICAB FRANCHISE TO USA EXPRESS CABREPORT IN BRIEF
A taxicab franchise application and required fees has been received from USA Express Cab. 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 USA Express Cab be awarded a non-exclusive taxicab franchise.
BACKGROUND
There are currently six valid taxicab companies franchised to operate within the City of Sunnyvale. They are Yellow Cab Co. Peninsula, West Valley Cab, Green Cab, Apple Cab, Net Cab.com and Computer Cab.
USA Express Cab acknowledges and accepts the requirements of the taxicab franchise agreement. USA Express Cab 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
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.
DISCUSSION
The owner of USA Express Cab has submitted information and documentation to demonstrate compliance with each of the criteria identified in Municipal Code Chapter 5.36, as outlined below.
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, quarterly vehicle fees, and the business license fee would be approximately $3,000 during the term of the agreement. This does not include the amount of revenue generated by the driver permits issued.
PUBLIC CONTACT
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 USA Express Cab.
ALTERNATIVES
1. Introduce and adopt an ordinance awarding a non-exclusive franchise for taxicab service to USA Express Cab for the period of July 25, 2002 through July 24, 2004 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 USA Express Cab.
RECOMMENDATION
Staff Recommends Council approves Alternate #1.
Prepared by:
Rachel Vasquez
Licensing/Permit Coordinator
Reviewed by:
Irwin I. Bakin
Director, Department of Public Safety
Approved by:
Robert S. LaSala
City Manager
Attachments
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Previous Council Item |
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