February 28, 2006
SUBJECT: AWARD OF TAXICAB FRANCHISE TO SANTA
CLARA CAB COMPANY
REPORT IN BRIEF
A taxicab franchise application and required fees has been received from Santa Clara Cab Company pursuant to change in proprietorship. 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 Santa Clara Cab Company be awarded a non-exclusive taxicab franchise.
BACKGROUND
The applicants currently hold a valid franchise in the City of Sunnyvale, doing business as Silicon Valley Checker Cab. They are applying for a franchise to operate Santa Clara Cab in addition to Silicon Valley Checker Cab. The current owners of Santa Clara Cab wish to sell their company.
There are currently seven valid taxicab companies franchised to operate within the City of Sunnyvale. They are Santa Clara Cab, Silicon Valley Checker Cab, Netcab.com, Yellow Cab Company Peninsula, USA Express Cab, Orange Cab and American Cab.
Santa Clara Cab Company acknowledges and accepts the requirements of the Municipal Code as well as the taxicab franchise agreement. Santa Clara Cab Company is also aware of the rights 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 the 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 owners of Santa Clara Cab Company have 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 – Santa Clara 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 – Santa Clara Cab Company is the registered owner of 6 company owned vehicles that have been identified for operation under this franchise. The taxicabs are identical in color schemes and markings; they are green over yellow with blue lettering. The telephone numbers are printed on the sides and rear of the vehicles.
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 vehicle identified for this franchise agreement.
4. Insurance – A letter of valid insurance has been provided from Norton Insurance Services 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.
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, Larry Silva, has been involved with the taxi industry for over 20 years. He currently operates Silicon Valley Checker Cab Company in the south bay area, providing service to the San Jose Mineta International Airport as well as the Valley Transportation Agency. Mr. Silva currently holds a valid Franchise in the City of Sunnyvale, doing business as Silicon Valley Checker Cab and has held consecutive Franchise Agreements with the city for many years.
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 testing 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 – Santa Clara 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 $8,500.00 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 website and publication in the San Jose Mercury News. Copies of the R.T.C. were provided to Santa Clara Cab Company.
ALTERNATIVES
1. Introduce and adopt an ordinance awarding a non-exclusive franchise for taxicab service to Santa Clara Cab Company for the period of April 7, 2006 through April 6, 2008.
2. Do not introduce or adopt an ordinance awarding a non-exclusive franchise to Santa Clara Cab Company.
RECOMMENDATION
Staff recommends Council approve alternate #1, introduction and adoption of an ordinance awarding a non-exclusive franchise service to Santa Clara Cab Company.
Reviewed by:
Don Johnson, Director, Public Safety
Prepared by: Rachel Vasquez, Senior Office Assistant
Approved by:
Amy Chan
City Manager
Attachments
A. Non-exclusive Franchise Ordinance
B. Taxicab Franchise and Agreement