SunnyvaleRTC

SUBJECt: AWARD OF TAXICAB FRANCHISE TO AMERICAN CAB COMPANY

REPORT IN BRIEF

A taxicab franchise application and required fees has been received from American Cab Company. Staff has conducted an investigation into the applicant’s background as required by Municipal Code Section 5.36.050. After careful review, staff has determined that the applicant meets the mandatory code requirements as established. Staff recommends that American Cab Company 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, Santa Clara Cab, USA Express Cab, Orange Cab, Net Cab and Silicon Valley Checker Cab.

American Cab Company acknowledges and accepts the requirements of the Municipal Code as well as the taxicab franchise agreement. American 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:

1. The applicant has been convicted of certain criminal

offenses.

2. The proposed color scheme or other insignia may tend to confuse the identification with other franchises already operating within the city.

3. 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 expired and shall no longer be valid unless a new franchise is issued under the provisions of Municipal Code Chapter 5.36.

DISCUSSION

The owner of American 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. Local Contact Requirements – American Cab Company has provided a toll-free telephone number to its dispatchers, together with sufficient phone lines to provide for prompt response to callers.

2. Vehicles - American Cab Company is the registered owner of 1 company owned vehicle that has been identified for operation under this franchise. The taxicab is blue and white, there are white stars on the hood and red stripes on the remaining area of the vehicle. The company name is clearly displayed in blue lettering. The telephone numbers are printed in white lettering on the back of the vehicle.

3. Taximeter – Each taxicab, which has been 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 compliance reports for the vehicles identified for this franchise agreement.

4. Insurance – A letter of valid insurance has been provided from Farmers Insurance Group in the amount of $1,000,000.00 combined single limit. This insurance will be in effect, with the City of Sunnyvale listed as Additional Insured, with a 30-day prior notice of cancellation clause as required. The company understands that it may not operate without proper insurance. Katy Warren, a City Risk and Insurance staff member, has reviewed the application and letter and believes meets all the requirements of the municipal code.

5. Criminal History – A criminal history check of the applicants 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 applicants, Jasvir Singh and Sher Jagraj Singh have been involved with the transportation business since 1999. Both have previously been employed as drivers for various cab companies operating in Sunnyvale.

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 applicants are 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 applicants have paid the required franchise application fee of $375.00. The applicants agree to pay the quarterly vehicle fees that are due during the month following the quarter the agreement is signed. The applicants have agreed to complete a Taxicab Franchise Questionnaire listing driver and vehicle information each quarter.

9. Fare Schedule – American Cab Company has agreed to adopt the City’s maximum fee schedule.

FISCAL IMPACT

Granting a taxicab franchise should have only minor fiscal impact relating to costs 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 $1,800 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 American Cab Company.

ALTERNATIVES

1. Introduce and adopt an ordinance awarding a non-exclusive franchise for taxicab service to American Cab Company for the period of April 27, 2005 through April 26, 2007 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 American Cab Company.

RECOMMENDATION

Staff recommends Council approves alternate #1.

Reviewed by:

______________________________________

Don Johnson, Director of Public Safety

Prepared by: Rachel Vasquez, Senior Office Assistant

Approved by:

______________________________________
Amy Chan, City Manager

Attachments