October 4, 2004
SUBJECT: AWARD OF TAXICAB FRANCHISE TO NETCAB.COM
REPORT IN BRIEF
A taxicab franchise application and required fees has been received from Netcab.com Cab 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 Netcab.com be awarded a non-exclusive taxicab franchise.
BACKGROUND
There are currently four valid taxicab companies franchised to operate within the City of Sunnyvale. They are Santa Clara Cab, Yellow Cab Co. Peninsula, USA Express Cab, and Silicon Valley Checker Cab. Netcab.com previously operated with a valid franchise agreement, which expired on April 25, 2003. Netcab.com acknowledges and accepts the requirements of the taxicab franchise agreement. Netcab.com 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.
DISCUSSION
The owner of Netcab.com has submitted information and documentation to demonstrate compliance with each of the criteria identified in Municipal Code Chapter 5.36, as outlined below.
1. Local Contact Requirements – Net Cab has provided a toll-free telephone number to its dispatchers, together with sufficient phone lines to provide prompt response to callers. Dispatching is done from a main office in Milpitas.
2. Vehicles – Netcab.com is the registered owner of two (2) company owned vehicles, which have been identified for operation under this franchise. The taxicabs are silver with the company name and phone number in blue lettering on both sides of the vehicles.
3. Taximeter – Each taxicab identified for operation under the franchise, is equipped with a taximeter which must be inspected annually by the Santa Clara County Sealer of Weights and Measures. Staff has been provided with the reports for the vehicles identified for this franchise agreement.
4. Insurance – A letter of valid insurance has been provided from National Continental Insurance in the amount of $1,000,000 combined single limit. This insurance remains in effect and will remain so. The City of Sunnyvale is also named as additional insured with a 30-day prior notice of cancellation clause as required and the company understands that it may not operate without proper insurance.
Katy Warren of the City’s Risk and Insurance Department has reviewed and found that the letter meets the requirements of the municipal 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, narcotic violations, or crimes of moral turpitude as referenced in the Municipal Code.
6. Experience of Owner – The investigation has revealed that the applicant, Gurbinder Mangat has been in the transportation business since 1994. The applicant has been a driver for courier services and other cab companies in the past.
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 future applicants for taxicab driver permits will not meet the permit requirements. The applicant is also adhering to the random drug testing requirements as established by State Law and is utilizing Schlim, McCabe & Associates for his Medical Review Officer Services.
8. Fees – The applicant has paid the required franchise application fee of $343.00. They are aware of the quarterly vehicle fees that are due during the month following the quarter the agreement is signed.
9. Fare Schedule – Netcab.com 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, quarterly vehicle fees, and the business license fee would be approximately $3,500 during the term of the agreement. This does not include the amount of revenue generated by the driver permits issued.
PUBLIC CONTACT
Public contact was made through posting of the Council agenda on the City’s official notice bulletin board, posting of the agenda on the City web site and publication in the San Jose Mercury News. Copies of the R.T.C. were provided to NetCab.com.
ALTERNATIVES
1. Introduce and adopt an ordinance awarding a non-exclusive franchise for taxicab service to NetCab.com for the period of November 4, 2004 through November 3, 2006 per applicant’s 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 NetCab.com.
RECOMMENDATION
Staff Recommends Council approves Alternate #1.
Prepared by:
Rachel Vasquez
Sr. Staff Office Assistant
Reviewed by:
Patrick Dwyer
A/Director, Department of Public Safety
Approved by:
Amy Chan,
City Manager
Attachments
A. Nonexclusive Franchise Ordinance
B. Taxicab Franchise and Agreement