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HomeMy WebLinkAbout23- City Clerk CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION Date: May 7, 2009 Subject: Appeal of the Bureau of Franchises' denial of a Petition for Franchise Permit for Express Transportation, dba AA Inland Empire Cab, to operate 2 taxicabs in the City of San Bernardino MICC Meeting Date: 5/18/09 From: Rachel Clark, City Clerk Dept: City Clerk Synopsis of Previous Council Action: None Recommended Motion: Motion #1: That the hearing be closed, and that the Mayor and Common Council uphold the Bureau of Franchises' denial of a Petition for Franchise Permit for Express Transportation, dba AA Inland Empire Cab, to operate 2 taxicabs in the City of San Bernardino. Or Motion #2: That the hearing be closed, and that the Mayor and Common Council grant the appeal for a Petition for Franchise Permit for Express Transportation, dba AA Inland Empire Cab to operate 2 taxicabs in the City of San Bernardino. G\~ b.~ Signature Contact person: Cindy Rllechh~r, RII~ Reg Mgr phOne. 3700 Supporting data attached: Yes Ward: All FUNDING REQUIREMENTS: Amount: NIA Source: (Acct. No.) (Acct Descri ption ) Council Notes: g~VIIfl{S L'( fb5"() 200 q -- 137 Finance: /I jq . 5-/'8^-oq ) Agenda Item No. _ :23 ~- /-- d1 CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION Staff Report Subiect: Appeal of the Bureau of Franchises' denial of a Petition for Franchise permit for Express Transportation, dba AA Inland Empire Cab, to operate 2 taxicabs in the City of San Bernardino. Background: SBMC 5.76.050 states in part, "No permit shall be granted to any carrier.. . except after a hearing thereon.. . and until the Bureau shall have determined that the public convenience and necessity require the operation proposed by the applicant for such permit. This Section further states "However, the burden of establishing the existence of public convenience and necessity shall always be borne by the applicant, and no permit shall be issued unless there has been an affirmative showing of the existence of such public convenience and necessity by such applicant. The foregoing provisions and requirements shall also apply where an increase in service is requested." Currently, San Bernardino Yellow & Bell Cab Co. is the sole provider of taxi service in the City of San Bernardino. Yellow Cab has operated in the City since 1952 and changed ownership in 1998 when a franchise permit was awarded to Yellow & Bell Cab Co. San Bernardino Yellow & Bell Cab Co. is currently authorized to operate 80 taxicabs in the City of San Bernardino. Since their initial permit was granted, the following actions have taken place: October 2,2002 - The Mayor and Common Council upheld the decision of the Bureau of Franchises' to grant a permit to San Bernardino Yellow & Bell Cab to operate an additional 25 taxicabs. June 6, 2005 - The Mayor and Common Council approved the Bureau of Franchises' determination that the public's convenience and necessity is served by increasing the number of taxi cabs authorized to San Bernardino Yellow & Bell Cab from 70 vehicles to 80 vehicles. SBMC 5.76.060B(1) limits the number of taxicabs permitted in the City to "not more than one taxicab.. .permitted for each two thousand five hundred residents of the City..." The population estimate from the California Department of Finance dated January 2008, showed the city's population at 205,493. The most recent estimate dated January 1, 2009 shows a slight decrease to 203,683. Therefore, the number of taxicabs operating in the City is limited to 82. July 22,2008 - The City Clerk's Office received a Petition for a Franchise Permit for Express Transportation Systems, dba AA Inland Empire Cab, to operate 25 additional taxicabs in the City. September 9,2008 - The Bureau of Franchises heard a presentation by Express Transportation Systems and discussed the matter at length. Also present at the meeting was Chris Christman, President of San Bernardino Yellow & Bell Cab. During the discussion, Sf. Deputy City Attorney Henry Empeno advised the applicant that based on SBMC 5.76.060B(1), only two additional taxicabs could be allowed to operate in the City should the Bureau of Franchises approve their permit. Based on this information, Express Transportation Systems agreed to modify their application to request a permit allowing two taxicabs to operate in the City. A motion was first made to deny the applicant a permit, however this motion did not receive a second. After further discussion, a motion was made to grant Express Transportation Systems a permit to operate two taxicabs in the City. The motion failed on a 3-2 vote. Members in favor: Bronica Martindale and John Matley. Members opposed: David Mlynarski, Robert Hampton, and Louella Deetz. Minutes of the Bureau of Franchises' meeting of September 9, 2008 are attached for your reVI ew. It was later determined by the City Attorney's Office that per SBMC 5.76.050, input was required from the City's engineer in the form of an oral or written report which includes the engineer's opinion as to the existence of public convenience and necessity for the operation proposed by the applicant. Therefore, the matter was brought back to the Bureau to hear from City Engineer Robert Eisenbeisz; the applicant, Express Transportation Systems, as well as the current franchise holder, San Bernardino Yellow & Bell Cab. April 14, 2009 - The Bureau of Franchises reconsidered the petition of Express Transportation Systems after hearing from City Engineer Robert Eisenbeisz and another presentation by Express Transportation Systems. In addition, Chris Christman, President of San Bernardino Yellow & Bell Cab gave a presentation. After a lengthy discussion, Bureau Member Matley made a motion, seconded by Bureau Member Hampton, that the petition submitted by Express Transportation to operate 2 taxicabs in the City of San Bernardino be denied. The motion carried with Bureau Member Martindale-Chess voting "no". Draft minutes of the Bureau of Franchises' meeting of April 14,2009 are attached for your reVIew. Financial Impact: None 2 Recommendation: Motion #1: That the hearing be closed, and that the Mayor and Common Council uphold the Bureau of Franchises' denial of a Petition for Franchise Permit for Express Transportation, dba AA Inland Empire Cab, to operate 2 taxicabs in the City of San Bernardino. Or Motion #2: That the hearing be closed, and that the Mayor and Common Council grant the appeal for a Petition for Franchise Permit for Express Transportation, dba AA Inland Empire Cab, to operate 2 taxicabs in the City of San Bernardino. 3 CITY OF SAN BERNARDINO APPEAL FORM ~ffCtIVE6-G1TY GLtRF Z609~fJ~~we ~A7z; 27 Office Use Onlv Copies Distributed To: o City Attorney 0 City Manager Date: IMPORTANT INFORMATION: All appeals to the Mayor and Common Council, Board of Building Commissioners (BBC) and Animal Control Commission must be filed in the City Clerk's Office. Appellant Name: CCJ r3..o - C" "-A '" A '- _ J C;;' J<. r- b.-s. ;> I K AvV .) D R,'T7"h l () ''V S ~~n-G'7'7 ) . Address: ~Vl.1) D~b <:7; . I~l Uee~L~e CA 9~ ~(:I'I ' Contact Person Name: ---r~,R~ i 6 b~ G-e:.-:Y:Z . Address: "'2 00 u(.) -"""---. ~ <'~ (} _'" IT-'....!::: ~.r f I ()e~~~ i O"P) fA ,q~ \0/ . Fax: rq.;)) 369- _~() if '/ r -- E-mail: .T.r3L-..1!frb7.L~;JM-c:.A1.5cMJi...!.1Ie..C0;1..-1 Day Phone: (E'fdc'f) ~;). ~- C{ 2- 1.- L- Evening Phone: r:-7 /1..{) 1f gg- i I YS~ Affected Property Address: Assessor's Parcel Number (APN #): Whose Decision Are You Appealing: rb uv ~ of ~/tYv(.I-f; j @ ~ j/t.-f/ O?OOl Date of that Decision: ~oard of Building Commissioners - $75.00 ayor and Common Council - $75.00* Planning Commission - Fee Adjusted Annually DAnimal Control Commission - $75.00 DPolice Commission - No Charge DOther: - No Charge *Note: Appeals to the Mayor and Common Council can only be from the Planning Commission and Police Commission. City of San Bernardino - City Clerk's Office - 300 N. un" Street - San Bernardino, CA 92418 - (909) 384-5002 . "',,, 'N'" .' .'. ...,..-....'...... ...........'.' AV ALID Ai' ....AL'M{J~rINCLIID '. .'INFQl(MATION(S, .::....;....;-..>::(,...:-.'....-,.:.':." .'~>::": . ;::. . ./;;.;--", 1. The action appealed: /).,' /J" , ,- 5' l~ 4 pe 1r1~~ 2. The grounds for appeal: p~ Sle Jh~~ 3. The a,ction(s) sought: fl.~e ~.. /h.-nl-e4A-v~ 4. Any additional information: ~ ~ r.A-7~H'/"Y AA ~\.-~N~MP/~ J~-...._~ ~._.~ J; .--" %;;.:' . . "". .i. .~... ....~)V~ .iiiiilI, F: ... 3000 Date Street, Riverside CA 92507 Tel: (951)-222-2291 Fax: (951) 369-3049 April 28, 2009 Appeal to San Bernardino City Council concerning the need and necessity of another taxi company in the City of San Bernardino. The reasons I would like to appeal the decision of the Franchise Board are as follows: 1. I have citizens of San Bernardino that can come to the Council meeting to prove that they have been denied service and have had very poor service from the current company. 2. I have many signatures from the residents of San Bernardino stating that they are in desperate need for a choice in companies. 3. I have studies done nationally concerning the effects of monopolies in taxi companies for the city and its residents... 4. I have Senior Centers asking us to please come in and start programs with their seniors like the programs we participate in the City of Riverside. 5. The Franchise Board felt its hands were tied with the Old Ordinance concerning the permits and how they could take some away from the current company as they weren't using them and transfer them to a new company. The council has the authority to handle that. 6. I have companies that have asked us to provide services to their employees, these companies had prior contracts with the current taxi company (BelVY ellow Cab), but they had such horrible service that they need a choice. 7. Having competition makes companies provide better service and they have to be accountable for their actions: Case in point: BelIN ellow Cab Co. had only 8 taxi drivers permitted in the City of San Bernardino when we ftrst applied in the City, After we went to the Franchise Board the first time, they began to license more drivers, they were in direct violation of the franchise and didn't care. Now they know that they need to follow you municipal code as we are making them be accountable. That's why COMPETITION WORKS NOT MONOPOLIES. 8. The citizens, businessmen, seniors all need a chance to be heard. Their needs are not being met by the current taxi company and we only want to come in and compete. 9. They talked about losing business or their not being enough business, although in every other city in the Inland Empire they have to compete. If a company is treating their customers the right way, they will not lose them to another. San Bernardino is the only city that allows a monopoly taxi company to continue. It is truly detrimental to you city and your citizens. Thank you, T em Berger General Manager AA Inland Empire Cab Co MINUTES [IDOODl~u BUREAU OF FRANCHISES FOR THE CITY OF SAN BERNARDINO REGULAR MEETING APRIL 14, 2009 The regular meeting of the Bureau of Franchises was called to order by Chairman Mlynarski at 2:25 p.m., Tuesday, April 14, 2009, in the Management Information Conference Room, 6th Floor, City Hall, San Bernardino, California. Roll Call Roll call was taken by Deputy City Clerk Sutherland with the following being present: Chairman Mlynarski; Bureau Members Matley, Deetz, Hampton, Martindale-Chess; Business Registration Supervisor/Bureau Secretary Buechter, Senior Deputy City Attorney Empefio. Absent: None. Public Comments There were no public comments. 1. Approval of Minutes February 13, 2007 Senior Deputy City Attorney Empefio stated that of the board members who were present at the meeting on February 13, 2007, only two are still on the board. He stated that when minutes are being considered, there is routinely an abstention listed for the member who was not present at the previous meeting. However, if that was to be done in this particular case, there would only be two members voting and the question would be whether this board could ever approve these minutes. Mr. Empeiio suggested that if Bureau Members Mlynarski and Martindale-Chess had no corrections that needed to be made, then he would recommend that the chair entertain a motion to approve the minutes and have all the board members vote on it. Bureau Members Mlynarski and Martindale-Chess indicated that they had no corrections. Bureau Member Hampton made a motion, seconded by Bureau Member Martindale- Chess, and unanimously carried, that the minutes of the February 13, 2007 meeting of the Bureau of Franchises be approved as submitted in typewritten form. 04/14/09 June 10, 2008 Senior Deputy City Attorney Empefio stated that only two members of the board were present at this meeting; therefore, because the bureau lacked a quorum, those two members met as a subcommittee and heard comments made by members of the public. He stated that since this was not an official meeting of the Bureau, he recommended that the minutes be received and filed. Bureau Member Matley made a motion, seconded by Bureau Member Deetz, and unanimously carried, that the minutes of the June 10, 2008 meeting of the Bureau of Franchises be received and filed. September 9,2008 Bureau Member Matley made a motion, seconded by Bureau Member Hampton, and unanimously carried, that the minutes of the September 9, 2008 meeting of the Bureau of Franchises be approved as submitted in typewritten form. 2. Petition for Non-Emergency Medical Transportation - petition received from Amena Medical Transportation to operate three non-emergency medical transportation vehicles in the City of San Bernardino. Abdulrazeq R. Kakar, Amena Medical Transportation, provided additional information to the board members that included a brochure, photos of his vehicles, and a letter dated February 10, 2009, from the Department of Health Care Services requesting that he provide business tax permits/licenses for each city listed on his application. He stated that he currently serves the cities of Fontana, Redlands, Lorna Linda, Colton, and Rialto. Bureau Member Madey asked Mr. Kakar how the process works and who he contracts with. Mr. Kakar stated that the Health Department provides him with a provider number that is then used to bill the patient. He stated that his company provides transportation to and from doctor's appointments for persons who are wheelchair bound, but mostly they transport dialysis patients to the hospital. Bureau Member Matley asked if this transportation was intended for people with private insurance or was it strictly for those with government insurance. Mr. Kakar stated that it was intended for people with Medi-Cal, Medi-Care, or private insurance; however, some private insurance does not pay for medical transportation. Bureau Member Martindale-Chess asked Mr. Kakar how much he charges for private pay. 2 04/14/09 Mr. Kakar stated that it was dependent upon the contract with each city. Bureau Member Mlynarski stated that the board does not really have a lot of discretionary decisions or opinions to make relative to this type of request, it was more of an objective compliance with the State's statutes and rules dealing with insurance and liability compensation and the ability to show proof of a good business and fmancial stability. Senior Deputy City Attorney Empeiio stated that the City's Municipal Code contains provisions regarding non-emergency medical transport; however, there is no State law permitting cities to regulate non-emergency medical transportation. The City cannot restrict or limit the number of providers for non-emergency medical transport, they can only require them to meet certain objective criteria such as require them to have licenses or permits required by the State such as Medi-Cal, require a minimum amount of insurance for wheelchair . passenger transportation and dialysis transportation vehicles, and require $2 million in combined single incident public liability and property damage insurance. Mr. Empeiio stated that in terms of a Medi-Cal permit, a document from the Department of Health Care Services was submitted that shows that the applicant had been approved as a provisional provider for a period of 12 months, effective May 31, 2007, which is why he asked the City Clerk's office to contact Mr. Kakar to see if he had been granted an extension. Mr. Empeiio stated that a new document was provided today that shows that as of February 10, 2009, the State Department of Health had been receiving Mr. Kakar's billing statements and was reimbursing him under the Medi-Cal program. Senior Deputy City Attorney Empeiio asked the City Clerk's office to identify the current non-emergency medical transport franchise holders in the City. Cindy Buechter, Business Registration Supervisor, stated that the City currently has six providers that were approved by this board and licensed in the City: Goodfaith Medical Transportation, Primary Care Medical Transportation, Good Word Medical Transport, Sunrise Medical Transportation, Providence Medical Transportation, and Premier Medical Transportation. Bureau Member Matley made a motion, seconded by Bureau Member Deetz, and unanimously carried, that the petition submitted by Amena Medical Transportation to operate three non-emergency medical transportation vehicles in the City of San Bernardino be approved. 3 04/14/09 3 . Petition for Additional Taxicab Service - additional information to be reviewed regarding petition by Express Transportation Systems, AA Inland Empire Cab to operate 25 taxicabs in the City of San Bernardino previously discussed at the Bureau of Franchise meeting of September 9,2008. Senior Deputy City Attorney Empefio stated that a motion had been made on September 9, 2008, to grant the petition which failed on a 2 to 3 vote. The matter was planned to be considered by the Mayor and Common Council at the October 20, 2008 Council meeting when it was brought to their attention that there was an issue involving a Municipal Code requirement that had not been completed by this Bureau. Senior Deputy City Attorney Empefio distributed copies of the pertinent sections of Chapter 5.76 regarding "Taxicabs, Ambulances and Chartered Vehicles," and directed the members of the Bureau to read the bottom of page 5-124, Section 5.76.050, "Permit - Issuance - Hearings. Mr. Empefio stated that the entire Section was pertinent, but in particular, in the middle of that paragraph it states, "Before granting any such permit, the Bureau shall require its engineer or other authorized officer to present an oral or written report which shall include his opinion as to the existence of public convenience and necessity for the operation proposed by the applicant." Mr. Empefio stated that in this particular case there was no report given to this Bureau before it acted. Because of this issue, he felt it was best to come back before the Bureau to reconsider its decision and to hear from the applicant as well as the current franchise holder, and then have City Engineer Robert Eisenbeisz speak to the board regarding any opinion that he may have relative to this requirement in the Municipal Code. Neil Evans, Attorney for the applicant, stated that he has represented many cab companies in Southern California and it's the same kind of test or challenge that is at issue here and that is whether to allow one company to have a monopoly or to encourage or allow for competition. He stated that when you have one company with no motivation to improve, monitor, or deal with service issues, there will be a decline in demand. He stated that the real issue is that while the ordinance requires a certain standard to be met, that standard could be met by encouraging competition because without competition the public is not going to be properly served. Each company that comes in causes more demand by seeking out customers, and it causes the pre-existing company to challenge itself to work harder in terms of its ability to perform its services and in meeting the needs of the customers. Mr. Evans stated that he felt that this requirement of establishing public convenience and necessary is met by the standard of competition and that is what makes the public demand and the public need increase. Mr. Evans stated that probably the biggest problem with the way that things are currently being done in the City of San Bernardino is the fact that it has authorized one company to have 80 permits, and as of the last hearing that company only had 8 to 10 4 04/14/09 permits operating. He stated that there are no other cities he is aware of that allows a permit holder to take permits and not use them. Mr. Evans stated that the standard is no more than one cab per 2,500 residents, but what the City has now is substantially less than that. He stated that in the prior minutes there was discussion as to whether two additional cabs could be issued based on the standard of one cab for every 2,500 residents, and he couldn't fathom the reason why the City wouldn't approve at least two cabs in order to start generating some competition. Terri Berger, General Manager of AA Inland Empire Cab Company, stated that she believes competition makes companies better because it makes people accountable for how they treat their customers, how they take care of their vehicles, and how their drivers interact with the public. Ms. Berger stated that they plan to open a satellite office in the City of San Bernardino, will hire staff within the City of San Bernardino, and will try to hire drivers that live in the City of San Bernardino. She stated that she did not see any reason why they were not allowed to operate within the City of San Bernardino because they could be bringing in tax revenue. Ms. Berger stated that Yellow & Bell Cab Company fell far short on the number of driver permits that they had. She stated that a permit is important because it regulates the drivers by making sure that they are safe drivers and that the Police Department has done a background check. Mr. Evans stated that he understood that the City is jurisdictional and does not regulate the rates. Mr. Empefio stated that the City's ordinance requires that the maximum rates for taxicab service be established by the Mayor and Council, but it is a maximum rate and they could charge any rate up to that amount. He noted that the Council took action last year on a rate increase. Mr. Evans stated that competition will not only affect the quality of service, but may also affect the rates, and that will increase demand-as prices go down, demand goes up. If there is no competition, the demand either goes down or is not affected by price; therefore, they believe that allowing competition of both rates and services is also a basis for determining public convenience and necessity. Bureau Member Mlynarski stated that the original request by the applicant was for 25 cabs and the members of the Bureau were given the material and the criteria per the Municipal Code of how they needed to take action as a body. He didn't want anyone to think that they were not going to allow competition in the City of San Bernardino, or 5 04/14/09 that they were trying to withhold privileges from any particular business, because that is not their role. Mr. Mlynarski clarified that their role is to evaluate the applications that come before them, decide whether or not they meet certain criteria, and then pass those recommendations on to the Mayor and Common Council. Bill Lemann, attorney for Yellow & Bell Cab Company, stated that Yellow Cab has been the premier provider of cab service since the 1950s, and they have had a number of different hearings before this commission as well as the City Council over the years regarding this issue as different people have tried to come into the community. He stated that there are non-licensed people that do operate within the City and that is very tough to regulate, but they can't do too much about that. He stated that about ten years ago they agreed with the City Council that Yellow & Bell would computerize the entire operation so that they could establish zones within the City to determine where the phone calls are coming from, how people are being served, and whether or not there really is a need or a necessity for more cabs. Mr. Lemann stated that Yellow & Bell Cab Company has developed a statistical database and that Mr. Christman would be reviewing that information with the board and could show some trends of what has happened in the City. Mr. Lemann stated that the applicant has not shown that there is a need or a necessity. Chris Christman, President of Yellow & Bell Cab Company, distributed documents to the Bureau members and reviewed statistical data for San Bernardino Yellow Cab for the years of 2006 through March 2009, titled Network Paratransit Systems, Inc., dba; Yellow & Bell Cab Company, 1510 West Fifth Street, San Bernardino, CA 92411. Mr. Christman stated that they increased their permits after receiving requests from some of their clients to expand into the high desert. They are now currently licensed all the way to Barstow and they increased their cab permits from 70 to 80, but this took place two years ago before the economy began to dive. He stated that the reason that it showed they had only 8 to 10 permits is because they couldn't get their permits back from the City. They got all their drivers permitted by the County of San Bernardino, which they were allowed to do, and every single driver who is driving as a contractor for their company has a San Bernardino County permit, which means that they have passed all the tests. Ms. Buechter stated that due to some personnel issues in the Police Department and the section that processes the permits for the taxi drivers, which is basically the background checks, those permits were not getting processed in a timely manner. She stated that at the end of last summer the Police Department made some personnel changes and now the process is running very smoothly. She stated that she ran a list prior to today' s meeting which showed that Yellow & Bell has 61 licensed drivers. Ms. Buechter clarified that Yellow & Bell has one permit that was issued by this board for "x" number of vehicles and that each driver is licensed separately. 6 04/14/09 Mr. Christman stated that they took a company in 2003 and went from 56 cabs to over 100 cabs. They use state-of-the-art technology, some of which is available to no one else because they designed it themselves. He stated that their on-time performance parameters are better than what is demanded of any Los Angeles franchise taxi company. Mr. Christman stated that they are in the process of investing a great deal of money in looking to procure CNG vehicles. He stated that they are concessioned as a cab operator at the Ontario Airport, and within the demands of that concession, they are going to take their airport fleet and they are going to go CNG. They have the financial ways and the financial means to do that should they get the vehicles. A number of those CNGs are going to be allocated for this City, and a number will end up in Riverside, but their goal is to go 100 percent green, and the cost of that is enormous, but they are willing to commit $1.5 million to the project. Mr. Christman stated that they are keeping 90 cabs on the road, and in the worst of times they had 18 vehicles that were parked because several drivers just walked away due to the high cost of gas. He stated that their service levels are more than adequate, and until somebody tells them that they are not doing the job and they are not serving the public, he didn't think anybody could say they are not doing it right or they wouldn't still be operating in the City. He asked if the City Clerk's office had received any complaints. Ms. Buechter stated that the City's Clerk's office had not received any complaints over the last few years. Larry Quiel, business owner and Vice-President of the Chamber of Commerce, stated that he travels all over the country and uses cab services a lot and he is impressed with some cities. He stated that local cabs need to be repaired and that he has waited for 30 to 45 minutes for a cab in this City. He stated that he could not see any reason why they couldn't allow another cab company to come in and compete with the existing company as it would only make business better. Mr. Evans stated that they want those two cabs, but they are stuck with the City's current ordinance, which he felt should contain a "use it or lose it" policy and should build in competition in a way that's in the best interest of the public. He suggested that they be allowed to operate two dedicated cabs with a condition that they operate those cabs in the City of San Bernardino only, because he believes dedicated cabs are different than multi-jurisdictional cabs. Mr. Evans stated that one thing that troubled him was the fact that Yellow & Bell got down to eight or nine driver permits, and he did not believe that obtaining a license from the County gave them the right to pick up within the City of San Bernardino. He stated that no company should be allowed to operate more than the number of cabs that they have licensed drivers to operate, and 7 04/14/09 the reason his client came back to this board is because they want to have licensed drivers in the City of San Bernardino. Mr. Evans stated that multi-jurisdictional cabs are all over the place and bandit cabs can be dedicated in the City of San Bernardino and can get all the business that the other cabs are not willing to hang around for. He stated that if you have dedicated cabs that only work in the City of San Bernardino, those cabs are going to generate business just because they're here. He stated that if cabs are waiting for calls when they are in another jurisdiction, that's going to affect the demand and the quality of service. Mr. Evans stated that in the old days, cab companies had an investment in the amount of orders the cab driver got because they received a percentage of whatever was collected, whereas now they charge a flat, weekly lease rate. He stated that it was his understanding that Yellow & Bell is fairly high compared to other companies and charges cab drivers $500 to $550 per week. He stated that as the economy tanks, the demand for cab drivers goes up. Drivers come in every day and are being turned away because they have no cabs due to the fact that when the economy tanks, the demand for entry level jobs skyrockets. So even though the cab drivers are suffering on the street, the cab companies aren't suffering because they are getting close to the same lease rate they've always gotten. Senior Deputy City Attorney Empefio stated that when you look at Section 5.76.050 of the Municipal Code, it talks about public convenience and necessity and the factors that need to be considered. It states, "The Bureau, in determining whether or not such facts exist, shall take into consideration the public demand for such service, the adequacy or inadequacy of service being rendered by other carriers, the effect of such service upon traffic, the financial responsibility of the applicant, the amount of wages to be paid to employees, the character of equipment proposed to be furnished, and any and all other facts which the Bureau may deem relevant." Robert Eisenbeisz, City Engineer, stated that he was surprised to hear that it was up to the engineer to make a finding of public convenience and necessity, which is typically an effort that the Planning Department does for a lot of other types of applications. He stated that his first reaction was to look at the criteria that Mr. Empefio had just mentioned, and the one that stood out the most for him were the impacts of traffic, and he was of the opinion that 82 cabs City-wide was not going to pose an immediate traffic engineering issue. He stated that perhaps there may be some issues at the dispatch location, but he didn't feel that they were going to have an impact on public convenience and necessity. Mr. Eisenbeisz stated that he looked at the ordinance as more of a way to control the total number of cabs so they don't have a situation of there being too many cabs in the City. He stated that the ordinance may not really address the question of whether the City has enough cabs to serve the population. As a resident of the City, and more as a 8 04/14/09 consumer, Mr. Eisenbeisz stated that competition is a good thing, but obviously there are concerns about what is the appropriate number of cabs, and whether the City is getting good service. Mr. Eisenbeisz stated that he thought the applicant had put together some good information that helps answer some of those questions, although some of it is subjective. He stated that the whole question is subjective and that it would fall back on this board to make some of those decisions and perhaps even the City Council. He stated that he tried to look at what he could that was objective, short of actually going out and riding in some cabs, and he actually thought about doing that, and probably should have done some of that, although he didn't know how scientific that would be. He stated that he thought what they really would prefer is an objective analysis and maybe even some testing as was mentioned. He stated that in both cases that would provide subjective information that would be difficult to verify. He stated that the only argument he had against the application and the biggest compelling argument is if it were to become a public safety issue where they would have dangerous cabs or drivers who had been driving too long, but he thought they already had regulations in place that would address those types of safety issues. He stated that going out of business was also raised, and they have to be sensitive to that; however, he didn't know whether that could be shown. He stated that a decline in revenues was certainly is a problem, but he would think that the business model would shrink to fit that situation. He stated that he didn't think competition necessarily in and of itself would drive someone out of business unless they are not performing. In that regard, Mr. Eisenbeisz stated that it might be helpful if they could look at some of the raw data that went into this as he felt that would certainly allow for more objective and verifiable information. Mr. Eisenbeisz stated that the competition provided a business plan and a statement, so they've met some of the objective criteria. He stated that he didn't think that adding two cabs was going to necessarily increase or improve the convenience or necessity, but it certainly wouldn't hurt it. He stated that without more objective information that they could verify, he really didn't know that he could give an opinion one way or another on the public convenience or necessity. Senior Deputy City Attorney Empefio stated that in looking at the focal points in the City of San Bernardino where most taxis are going to be found such as the train station, the airport, bus terminals, hotels, and hospitals, etc., he asked the City Engineer to comment on the existing traffic conditions as they relate to the existence of cabs there, and questioned whether an increase of taxicabs in the City of San Bernardino from the 80 currently permitted to 82 would have any change on those traffic conditions. Mr. Eisenbeisz stated that with the way the ordinance is currently limited in the number of cabs he did not foresee any major issues at those transportation hubs. He stated that 9 04/14/09 they are working on an airport that's going to be opening up sometime this summer, and this board is going to have to re-evaluate the way that cabs are used around those airports. He stated that not operating the full number of cabs could become a convenience and necessity issue down the road, but certainly they are going to have a growing market for this type of a service because with the Metrolink station and some of the transit projects that are underway, and with the airport itself, he suspects they will need more service in that area. But again, whether 82 cabs are enough, he stated that he didn't have all the data available right now to say if that was a good number. He actually tried to look at comparisons to other cities, but it is hard to do that because other cities have different issues. Some cities have far less cabs per capita, but they're much bigger cities, so then the total number is much more. He stated that there is a national trade organization for taxi and limousine service and they have established certain guidelines, but their guidelines are more on how to operate the business, not necessarily what the appropriate number of cabs should be for a population. Additional cabs in those areas have already been accounted for at the airport because they have done a master plan there and part of the traffic generation of that airport includes some public transportation whether it's cabs, buses, vans, shuttle services, etc., and the same is true for the depot and some of the other major hubs. They really expect to see that type of component in the traffic, so they don't really envision any major traffic congestion problems as a result of the cab services. Bureau Member Martindale-Chess asked why Yellow & Bell did not lower their rates when gas prices fell. Mr. Christman stated that they were not asked to, and they did not propose it. He stated that the $2.60 per mile they are now charging is in relation to and was proposed because every single major city and county around them had already gone to $2.55 or $2.60 per mile, and they were still at $2.40. Mr. Christman stated the he had issues with allowing two dedicated cabs to operate in the City. First, he asked if need and necessity had been met because the burden of proof was on the applicant. Secondly, he stated that a dedicated cab cannot be controlled, and if they approve two permits, they'll let the entire fleet into the City and no one is going to stop them. Bureau Member Mlynarski stated that this is a very interesting situation that is obviously driven by population and cannot be controlled. He stated that at the last meeting he did not vote in favor of granting the two cabs because he didn't think they would be addressing the bigger issue of how the City of San Bernardino is going to serve its constituents and the people who come into the City via its airports and the Metrolink station. 10 04/14/09 Senior Deputy City Attorney Empefio stated that additional information had been provided by the applicant as well as the City Engineer, and he advised that the board had the authority to entertain a motion to either grant or deny the applicant. He stated that the ordinance separates the question into two parts. The first question is whether public needs and necessity support an increase in service from 80 to 82 cabs based on the increase in population; and, if the answer to that question is "yes," then the second question is whether the two cabs should be given to the existing holder of the franchise, Yellow & Bell Cab, or should the two cabs be given to the applicant. Mr. Empefio stated that there are provisions in the Municipal Code (Section 5.76.110) regarding revocation, suspension or cancellation of permits, but it requires a notice of public hearing, it requires cause, and then an opportunity for an appeal of the Bureau's decision to the Council about whether any permits should be revoked or suspended, basically taking away from Yellow & Bell Cab. Bureau Member Mlynarski stated that if the Board were to take action today, would that action proceed to the Mayor and Council. Mr. Empefio stated that according to the City's ordinances, the board's decision is basically a recommendation. He stated that no appeal is necessary and the Council has to confirm, reverse or modify the board's decision. Bureau Member Mlynarski stated that he would like to hear from the Mayor and Council on their desire to look at the Municipal Code because some of the challenges they have are inherent in the way the Code is written including enforcement and the allocation of permits, and then when those permits or licenses are not used, it doesn't say that in the Code, but obviously from the way that the business operates, there are intricacies within this operation that have to relate to the Code section and this Code was written a long time ago. He stated that with a growing City, in the not to distant future with airports and things of that nature, there is going to be a real demand for cab service-more than just two additional cabs. He stated that he would like to pose that question to the Mayor and Council and felt the issue should go to the Legislative Review Committee or to the Ways and Means Committee, so they could start some dialog on what it would take to make this section of the Code a little more effective on serving the City. Mr. Empefio stated that in 2002, the Council upheld the decision of the Bureau of Franchises to grant a permit to increase Yellow & Bell Cab's operation by an additional 25 cabs in the face of an application by AAA Inland Empire Cab Company to seek a franchise in the City of San Bernardino. In 2005, the Mayor and Council approved the Bureau's determination that public convenience and necessity is served by increasing the number of taxicabs of Yellow & Bell from 70 to 80 vehicles. Mr. Empefio stated that in 2002 they had the same dialog about giving the 25 new vehicles to AAA Inland Empire Cab, and they also questioned whether Yellow & Bell Cab's 45 vehicles should 11 04/14/09 be kept or modified. He stated that there is also this issue of an existing property right that Yellow & Bell has that cannot be modified without a noticed public hearing. Mr. Empefio advised the Bureau that they had an existing application they needed to deal with and they needed to make a decision whether to grant or deny the applicant. The application could then take its course to the Mayor and Council and then they could make a decision, and at the same time the Mayor and Council could consider the issue of whether the existing franchise holder is doing a good job or a bad job and whether their franchise should be considered for a suspension or revocation. They could discuss that-they couldn't make a decision on that-but they could discuss that and then send it back to the Bureau of Franchises to hear a proposal to suspend or revoke the franchise. Bureau Member Madey made a motion, seconded by Bureau Member Hampton, that the petition submitted by AA Inland Empire Cab be denied. The motion carried with Bureau Member Martindale-Chess voting "no". 4. Adjournment At 4:25 p.m., Bureau Member Matley made a motion, seconded by Bureau Member Hampton, and unanimously carried, that the meeting be adjourned. The next regular meeting of the Bureau of Franchises is scheduled at 2:00 p.m., Tuesday, May 12, 2009, in the Management Information Conference Room located on the 6th Floor of City Hall, 300 North "D" Street, San Bernardino, California. CINDY BUECHTER Secretary BY~~~A.~d Linda Sutherland Deputy City Clerk 12 04/14/09 MINUTES BUREAU OF FRANCHISES FOR THE CITY OF SAN BERNARDINO REGULAR MEETING SEPTEMBER 9, 2008 The regular meeting of the Bureau of Franchises was called to order by Chairman Mlynarski at 2:12 p.m., Tuesday, September 9,2008, in the Management Information Conference Room, 6th Floor, City Hall, San Bernardino, California. Roll Call Roll call was taken by Deputy City Clerk Sutherland with the following being present: Chairman Mlynarski; Bureau Members Matley, Deetz, Hampton, Martindale-Chess; Business Registration Supervisor/Bureau Secretary Buechter, Senior Deputy City Attorney Empefio. Absent: None. Public Comments There were no public comments. 1. Request for Taxicab Rate Increase - request submitted by San Bernardino Yellow & Bell Cab for a modification of the flag drop and per mile rates. Chris Christman, President, San Bernardino and Riverside Yellow & Bell Cab, stated that their rates have been set at $2.20 per mile for three years and it has had a devastating effect on their ability to operate. He stated that he has 60 owner/operators in his fleet, which is just under 100 cabs, and all of his cab drivers have experienced significant damage to their quality of life. Mr. Christman stated that the requested increase would bring them in line with other organizations and territories in the surrounding area, and is necessary in order for them to survive as a viable cab company. Senior Deputy City Attorney Empefio passed out copies of San Bernardino Municipal Code Section 5.76.230 regarding establishment of rates, and Section 5.76.240 regarding change in rates. Chairman Mlynarski stated that he understood that Mr. Christman had a similar request for a rate increase to $2.50 back in June. Mr. Empefio explained that because there were only four appointed members on the board at that time they could not officially meet as a board. Therefore, they met as a subcommittee of the board to consider Mr. Christman's request and agreed to forward a recommendation for approval to the Mayor and Council. However, under the City's ordinances, the Bureau of Franchises has to meet and take formal action before going to the Council so they pressed the Council members and the Mayor to consider making 09/09/08 ordinances, the Bureau of Franchises has to meet and take formal action before going to the Council so they pressed the Council members and the Mayor to consider making appointments to the board, or to amend the City's ordinances. Mr. Empeiio stated that at the Legislative Review Committee a couple of Council members chose to make appointments so the board now has five members, which is the minimum number that can formally act, and that is why the matter is before the board today. Mr. Christman stated that their current rate is $2.20 per mile and the breakdown is $.22 for the first 1/10 of a mile and $2.20 each mile thereafter with a waiting time of $24.00 per hour. He stated that their initial request for a rate increase was for $2.50 per mile, and their current request of $2.60 per mile is based, in part, upon the City of Ontario's recent approval of $2.50 with a $2 surcharge. Bureau Member Hampton made a motion, seconded by Bureau Member Martindale- Chess, to approve the taxicab rate increase and that it be forwarded to the Mayor and Common Council for approval. 2. Petition for Additional Taxicab Service - petition by Express Transportation Systems, AA Inland Empire Cab to operate 25 taxicabs in the City of San Bernardino Terri Berger, General Manager of AA Inland Empire Cab Company, stated that she has about six to seven years of experience in the taxicab industry and she wanted to prove the public need and necessity for another taxicab company in the City of San Bernardino. At the present time there is only one taxicab company that is licensed in the City of San Bernardino and that would be Yellow & Bell Cab Company. She stated that they have done extensive research within the City and have found that there is a need for better transportation. Included in their proposal are studies that were done in Denver and Minneapolis concerning cab company monopolies and the reasons they have not worked. She stated that usually monopolies in a city will constitute higher rates for the consumers, longer wait times, and sometimes poor customer service or even no service at all, which they feel is the case in the City of San Bernardino. Ms. Berger stated that they found that the current company has areas in the City of San Bernardino that they have designated as "no service" areas. The taxicab drivers will not pick up in these areas and sometimes callers are even told that they do not service those particular areas of San Bernardino. The areas they are finding that are designated as "no service" areas are Waterman Gardens, Little Africa, and anywhere near Base Line and Waterman. She stated that these are low economic, minority areas which are the people in the community that need transportation the most. They are single mothers, seniors, and disabled persons who need a taxi because they can't afford a car, and when they are told that a company will not pick them up, they are left with few resources as to how they are going to get to their doctor's appointments or to the grocery store, or anywhere else they might need to go that day. 2 09/09/08 Ms. Berger stated that they circulated a petition at the Stater Bros. market on Waterman and Base Line, which was included in their proposal. She stated that this is a very small sample of the number of citizens within the City of San Bernardino who are asking for more choices in the City's taxi service. She stated that Yellow & Bell Cab Company has been issued 82 permits for the City of San Bernardino and when she went onto the City's website she found that only 8 of their drivers are actually permitted in the City of San Bernardino. She stated that permitting a driver is important because it is the basis of customer safety. When a driver is sent to the Police Department they undergo a background check, a drug test, and they are finger printed so the citizens of San Bernardino can be assured they are going to be picked up by someone who has had their background checked. Ms. Berger stated that Yellow & Bell Cab Company has close to 100 cabs on the road, but they have promised a lot of cabs to a lot of cities, and she thinks they are spread very thin at this point. They have been given 82 permits within the City of San Bernardino, and if they have under 100 cabs, she wondered how they can service the City of San Bernardino when they've already promised the Ontario Airport 35 of those cabs and they've promised the City of Riverside 40 of those cabs. She stated that they have a multi-million dollar contract with the County of Riverside for the Riverside Transit Authority and are making between 75 to 100 trips per day with that contract. That uses about 20 more of their taxicabs that are out of the San Bernardino area for the day. Also, trips to the Veterans Administration Hospital probably take another 10 cabs out for the rest of the day, so there isn't a lot left for the City of San Bernardino. Ms. Berger stated that the citizens of San Bernardino are being underserved. She stated that the entire City may only have 8 legal drivers within the City limits every day when the population of San Bernardino constitutes having 82 taxicabs per the Municipal Code. She stated that all the drivers who are driving within the City limits need to be permitted with the City. She urged the members of the Bureau to vote to allow them to help give the citizens of San Bernardino a choice for better taxi services. Senior Deputy City Attorney Empefio passed out copies of the San Bernardino Municipal Code regarding the pending franchise permit application. Bureau Member Hampton asked if AA Inland Empire Cab intended to also serve Redlands, Colton, and Riverside. Ms. Berger stated that they would only be serving the City of San Bernardino. Victor Caballero of Express Transportation Systems stated that the rates they are proposing to bring to the City of San Bernardino are a $2 flag drop and $2.20 per mile, which will be a substantial savings to the residents of San Bernardino. He stated that Yellow & Bell Cab Company has been successful and their drivers are able to pick and choose which business they are going to target. Unfortunately, what happens under those circumstances is that it is difficult to get taxicab drivers to frequent the lower income, tougher neighborhoods of a particular community. Mr. Caballero stated that 3 09/09/08 because there are only 8 drivers that are permitted in the City of San Bernardino, one can only conclude that its citizens are being served by illegal taxicabs. Mr. Empefio stated that back in 2002 the board received an application by AAA Inland Empire Cab Company in Riverside requesting a franchise for taxicab services in the City of San Bernardino. That matter went before the Bureau of Franchises and to the City Council, and the City Council denied the application. He asked the members of the bureau to turn their attention to Section 5.76.060 of the San Bernardino Municipal Code. Mr. Empefio stated that the franchise that was granted to Yellow & Bell Cab Company in 2002, allows them to have 80 vehicles within its permit. He stated that Subsection B(I) of the City's ordinances prescribes a limitation in the number of taxicabs that can be permitted in the City of San Bernardino based on the City's population, and that is one taxicab per 2,500 residents of the City. Mr. Empefio stated that as of January 1, 2008, the California Department of Finance estimated the City of San Bernardino's population to be 205,493, and that figure was confirmed by the City's Information Technology Department. He stated that if you divide 205,493 by 2,500 you get 82 taxicabs that are permitted in the City that can operate under the City's current ordinance. With Yellow & Bell Cab Company having 80 of those vehicles, that means only two vehicles could be added by this board and the City Council. Mr. Empefio stated that the board needs to decide, first of all, whether public convenience and necessity requires that the level of service be increased by adding two additional licensed vehicles in the City of San Bernardino, and whether the existing holder of the franchise permit, YeHow & Bell Cab Company, should be given that increase, or any part of that increase up to two additional vehicles; or secondly, whether the applicant should be granted those two additional vehicles. He stated that taxicabs are permitted to enter the City of San Bernardino and deliver or drop off customers without a franchise permit, but they must have a franchise permit if they pick up any passengers in the City. Mr. Empefio stated that the Council would have to agree with the recommendation of this board as to whether those two additional vehicles should be permitted and whether the two vehicles should go to YeHow & Bell Cab Company or to AA Inland Empire Cab Company. He stated that AA Inland Empire Cab Company was told this when they submitted their application even though the request was for 25 vehicles. Bureau Member Martindale-Chess asked how many vehicles are currently being used in the City of San Bernardino. Cindy Buechter, Business Registration Supervisor, stated that the franchise is approved to operate up to 80 vehicles in the City of San Bernardino and each driver must be licensed and permitted. She stated that 23 drivers are currently licensed and operating and 12 have been approved by the Department of Justice, for a total of 35. 4 09/09/08 Bureau Member Matley asked if they have ever gotten close to having 80 vehicles. Ms. Buechter stated that she ran a report of the number of licensed drivers from 2003 forward and there is a total of 147 individuals on the list. She stated that to try to determine how many there are at any given time would take some time because they don't all come due on January 1 or July 1. They are due each month whenever they get their permit, and it would be good for 12 months from that time. Bureau Member Mlynarski stated that they are bound by certain limitations, not only by the Municipal Code, but also by today's agenda. Mr. Caballero stated that they would like to amend their request to two taxicabs. Mr. Christman stated that it was becoming impossible to obtain business certificates in a timely manner and it was taking up to six months to get a permit. He stated that because he was unaware that the City superseded the County, he directed his cab drivers to get permitted through the Sheriff s Department in the County of San Bernardino. Unfortunately, that made it appear as though they didn't have any licensed cabs in the City. Ms. Buechter stated that Mr. Christman had provided some information that indicated which drivers were licensed with the County and operating in the City. She stated that there has been a holdup with the Police Department for quite some time in getting the drivers through the permitting process and issuing them a business registration. She stated that it was taking up to six months for the Police Department to communicate with her as to who had been approved by the Department of Justice and she had to wait for that information to come before she could contact the drivers to let them know that once they were permitted they could come in and get licensed. She stated that there is a different individual over there now and the system is working beautifully, which is the reason for the sudden increase. Bureau Member Martindale-Chess asked what would have to be done in order for another company to come in and get 25 vehicles. Mr. Empeiio stated that a request would have to come before this board to revoke Yellow & Bell Cab's permit to have up to 80 vehicles and to have that number reduced. He stated that Municipal Code Section 5.76.110 allows for a revocation or suspension of a permit, but the reasons and a noticed public hearing would have to be provided for that revocation and given to Yellow & Bell Cab in order to give them an opportunity for rebuttal. Ms. Berger stated that when she contacted the Police Department at the end of June or the beginning of July, they printed out a list showing that there were only 7 permits. She thought the bureau members should know that the Ontario Airport requires their drivers to have a County of San Bernardino permit to operate there, so some of those County permits are probably for their airport drivers who do not generally drive in the 5 09/09/08 City of San Bernardino. She stated that she would like to go over the list of the actual drivers who drive for Yellow & Bell Cab Company because she has extensive knowledge of which drivers are still with the company, which drivers are no longer with the company, and which drivers are driving for her company. Chairman Mlynarski asked why the City did not grant a franchise to the company back in 2002/2003. Mr. Caballero stated that this company has new ownership and is not the applicant that appeared before the body in 2002. Bill Lemann, attorney for Yellow & Bell Cab Company, stated that in 2002 they had a hearing before the Council to determine what was in the best interest of the City and they voted in favor of one applicant and one license. He stated that the discussion was that too many cab companies would be hard to regulate and it would be hard for cab companies to compete because of the market they are serving, and eventually San Bernardino would end up with no cab companies. Bureau Member Hampton made a motion that the petition submitted by AA Inland Empire Cab to operate 2 taxicabs in the City of San Bernardino be denied, and that the matter be referred to the City Council. The motion failed for lack of a second. Mr. Empeiio advised that the board had to make a determination. Bureau Member Martindale-Chess made a motion, seconded by Bureau Member Matley, that the petition submitted by AA Inland Empire Cab Company to operate two (2) additional taxicabs in the City of San Bernardino be approved. Mr. Empeiio advised that the board had to determine that public convenience and necessity requires the additional 2 vehicles to be permitted in the City of San Bernardino and whether Yellow & Bell Cab should be allowed those additional 2 vehicles or whether AA Inland Empire Cab should be granted the permit for the 2 vehicles. Mr. Lemann asked Mr. Empeiio if the board needed to make its own findings with regard to public convenience and necessity. Mr. Empeiio stated that he considered Bureau Member Martindale's motion to be essentially a combination of those issues that AA Inland Empire Cab Company be granted a franchise to operate the 2 additional vehicles in the City of San Bernardino. He stated that Mr. Lemann was right in that findings to support that had to be drafted and adopted by this board. Mr. Empeiio stated that if the board could not articulate the findings today, they could assign the City Attorney's office, in conjunction with the City Clerk, to come back at the next meeting with a draft of those findings for the board's formal review and adoption. 6 09/09/08 Chairman Mlynarski stated that through the testimony and the dialogue there was a perceived necessity, but whether or not that necessity could be quantified to support the increase or the granting of a franchise was being debated on the floor. Mr. Lemann stated that the current license holder has not been given an opportunity to comment on the public convenience and necessity. He stated that he felt it would be important for purposes of determining what is needed and what is convenient for him to make some comments. He stated that what they've heard so far essentially is self- serving hearsay on the part of a lady that used to work for the company and they have an application that attaches an unscientific set of signatures that include people without addresses, family members of Ms. Berger, incorrect dates, no last names, etc., so for this board to find a public convenience and necessity they need to establish the facts to do so. Chairman Mlynarski stated that they have an application for a new franchise and 25 taxicabs. The applicant has indicated that he would take the 2 additional taxicabs the Municipal Code allows. There is also a consideration that Yellow & Bell Cab could take those 2 additional vehicles as well. He stated that they need to come to some conclusions. He stated that he agreed with Mr. Lemann that they cannot be arbitrary in how they make a decision in this particular case knowing that this is going to go to the Mayor and Common Council and that this dialogue is going to continue. Mr. Empeiio stated that the ordinances of this City permit up to 82 taxicabs to operate in the City. He stated that this board still had to make a finding of public convenience and necessity that 2 additional vehicles should be permitted in the City of San Bernardino. He advised the board that they didn't have to make that finding even though the maximum could be 82. They could state that the current franchise held by Yellow & Bell Cab Company with 80 licensed vehicles is adequate and there is no public convenience and necessity determination the board wants to make to increase that. On the other hand, they could find that the public convenience and necessity requires adding the 2 additional vehicles and that either Yellow & Bell Cab be given those 2 additional vehicles or that the applicant be given the 2 vehicles. Bureau Member Matley stated that in their proposal the applicant had mentioned a combination of sedans and vans designed for handicapped access. He asked what the applicant intended to operate in the City. Mr. Caballero stated that they would operate one sedan and one van in the City of San Bernardino. Mr. Empeiio asked if AA Inland Empire Cab is a corporation. Mesfln Shawel, President of Express Transportation Systems, stated that they are a California corporation doing business as AA Inland Empire Cab Company. 7 09/09/08 Chairman Mlynarski stated that a motion was on the floor for approval of the additional 2 taxicabs, but they were still in a quandary regarding the findings to support that. Mr. Christman stated that the ordinance allows them to operate up to 80 vehicles, but it is physically impossible to have all the cabs in the City at one time, but the commitment to put those vehicles in service at any time is always there. He stated that cab companies must respond to demand, and the number of calls has decreased drastically. He stated that they do not refuse calls by territory because that is against the law, and added that he has drivers that will go anywhere in the City, day or night. Bureau Member Martindale-Chess stated that she was trying to look at whether the residents of San Bernardino are being provided adequate taxi service. Mr. Lemann stated that when this issue came up four years ago Yellow & Bell Cab invested $100,000 in a software system that would track every phone call. He recommended that if the board was going to make a finding of convenience and necessity they should get a printout of those phone calls because it would provide a record of who called, what time they called, and where the cab goes, and that would speak for itself. Chairman Mlynarski asked Ms. Martindale if she made her motion based upon necessity after reviewing the petition and hearing the testimony. Bureau Member Martindale-Chess stated that she made her motion based on not having one taxi service monopolize the market. She stated that her major concern is whether the residents of San Bernardino are being served. The motion made by Bureau Member Martindale-Chess, seconded by Bureau Member Mattey, failed. Ayes: Bureau Members Mattey, Martindale-Chess. Nays: Bureau Members Deetz, Hampton, Mlynarski. Chairman Mlynarski stated that he did not feel he had enough information and statistics to determine a necessity, whether it was to add another franchisee or to revoke a portion of an existing franchisee. He stated that he felt the dialogue needed to continue, and asked where this matter would go from here if a motion to formally deny the application was not made. Mr. Empefio stated that if there is no other action by the bureau, they could continue the matter to the next meeting date if there were additional facts or information they wanted to get from the applicant, from the current franchise holder, or from staff. Alternatively, if the bureau did not wish to continue the matter for further information, then it would go forward to the Council with a record of the board's deliberations and the fact that the motion to approve the franchise failed on a 2 to 3 vote. 8 09/09/08 Chairman Mlynarski stated that he would like to receive a little more history as to why the number of taxis was increased from 45 to 80 and how that relates to the current state of affairs in the City of San Bernardino. He stated that he did not feel adding 2 cabs would really accomplish anything for the City and felt it diluted their whole purpose, which is to make wise business decisions. He stated that he did not want to set a precedent just for the sake of convenience. 3. Adjournment At 3:50 p.m., Bureau Member Hampton made a motion, seconded by Bureau Member Deetz, and unanimously carried, that the meeting be adjourned. The next regular meeting of the Bureau of Franchises is scheduled at 2:00 p.m., Tuesday, October 14, 2008, in the Management Information Conference Room located on the 6th Floor of City Hall, 300 North "D" Street, San Bernardino, California. CINDY BUECHTER Secretary By .~kJiV1~~ Linda Sutherland Deputy City Clerk 9 09/09/08 PROPOSAL FOR TAXICAB SERVICE FOR THE CITY OF SAN BERNARDINO Ji;;~' " , ~.,.", -;.(.." . .'" . " :: ~ SUBMITTED BY I~Jft }~~ . ,_. ,fr-"'i&'\ ~~. .J:.- .:tUJ. .._, ,'. '--.- - )"- .,t,..-.~, }E'!." "'0<\ i~ i'il.. If.H~ - ".::~.> ~--'":""~~ <.'.~~ --I~:i ~ -~~;.],-~ ,~ Jl!l..: " :}l . ),'i I ,............ . ;t;:1. -.4' .. . . '._ .-+~ . . '.,',.,.):UJ~x~t~..~ "-,.5 .__....u.:-~. "'s;~J~ 'l._.. .'........, A"._ , --,:/1>: ....~.",J' , .... 3000 Date Street, Riverside CA 92507 Tel: (951)-222-2291 Fax: (951) 369-3049 July 17, 2008 Ms.Cindy Buechter City Business Manager 300N D St San Bernardino, Ca, 92418 Dear Ms. Buechter, The city of San Bernardino is an exciting and desirable place to live, work, raise a family and play. The wonderful diversity of its citizenry, the continuing improvement of the city's schools, and the variety of cultural experiences one can encounter on a daily basis, make San Bernardino an enjoyable, unique city. It is for these reasons that AA Inland Empire Cab seek to operate and thrive in San Bernardino and intends to continue growing here. In accordance with San Bernardino Municipal Code Article 1 Sec.31-3 Certificate of Public convenience and necessity is required: "No person shall operate, cause, permit or allow to be operated any Automobile for hire or a taxicab upon the streets of the city without having first obtained a certificate of public convenience and necessity from the city council. (Municipal Code, Article 1 General Provisions 5.76.060). AA Inland Empire Cab is pleased to submit to the Board of Franchise and staff our findings for public convenience and necessity for taxicab service in the City of San Bernardino. We are confident that the Board of Franchise and the City Council will agree that emergency circumstances and conditions exist that necessitate granting additional permits for the health, welfare, and benefit of the residents of the City. Weare respectfully requesting, for the reasons stated within, based on 20 years experience of public service by AA Inland Empire Management team to taxi riders, the additional taxi permits be awarded to AA Inland Empire Cab. We also invite comments and suggestions from the City of San Bernardino to comply in maximizing these findings. If you have any questions or need clarification please do not hesitate to call me at (626)- 893-3235. We appreciate the opportunity to work with you and to serve the San Bernardino community. Respectfully Mesfm Shawel President ~ t- ~ z 8 . 2 ~ c LD t:<. ..,.- l'- r- ....::t i r-- 0 ... o z b: m fd ~ 0% ~~ 00 et:U) <C:) ~O WUJ alZ ~:3 C/)..J LLW 00 ~!! (3:& 1Tt ~ 8: ~.a . .!! ~~ ""'-.l! ".). ""-' '!.o' - ..:_ , ~ 1'=.0: ~i:?J 1. ., S~L ~ ~.LL~ ~~~~~J~':;J;2:,1 . T :l;: tl "~t a;}a~;'jC\:j~~;~~~)'f~ ~~X~H _-~:l :,,';'.l.. ~2~hL~~'2.1; ;;~.i.D ~' .;]~.L';.. -.: ~...L, ~ ( CITY OF SRN BERNARDINO CASH: *** CUSTOMER RECEIPT fi Opel": JCHAV Type: DC I Dat2~ 8/04/080B Receipt nc: Desc~ipticn Quantitv ir MISe ~iORT FDRN 1.0ki CITY CLERK#747715, Tender' detai 1 eM CHECI< - ~1 4729 Total i;endel"ed Total paYllent Trans date: 8/01/08 Tim~: 1 *** THANK YOU FOR YOUR PAVMENT * "TRUSTED. QUALITY SERVICE SIN ,."........: PETITION FOR FRANCHISE PERMIT CITY O~ SAN BERNARDINO mI'l'ION ]~OR FRARCfIISE PERloIIT I. 'ryPE OF Fl:l,l'tNCffISB l'lEQffflSTBO TAXICAB .PRINCIPAL IS YW-D: Express Transportation Systems AA INlAND EMPIRE CAB ADDRESS OF. BUSINESS 3000 DATE STREET BUSINESS PHONE 909-829-4222 NAME OF ROSINESS RIVERSIDE 92507 STBEET CI'l'Y RIVERSIDE 92507 ~IP CODE 951-222-2291 GlmER f S R~SInm-[CE 3000 DATE STREET S'I'RltE'!' CITY ZIP COm: H~E l'HONE II. IF FIL1NG AS PAR.l'l!l.I3~HIP~ ASSOCIAT!ON OR mUNCORPOMTE.c COMPANY, COMI~LETE Ttm FOLLOWING IllFORMA'1'!.OM PY Lr.S'rING TiiE NMoIES OF 'L"W!: PARTNERS OR FE!lSDNS COMPRHIING THE PAa't'NERSHIP, ASgOCIAi'XO~ OR. COl.fPANY TOG~ImR W:T.m THEIR RESPEC'rI~~ AGES HI ADDITIOtf TO PART I. NAME - 1\.GE 1. 2. 3. 4. III. CORPOAATION (IP FILING. AS COnP.cr'lll.T!ON, OOMP.LE'l'E FOr.r,OWlliG l~I!'ORMA'l'ION IN AODI'l'ION 'l'O PARr I.) N1lME OF CORF.O~TIO~ Express Transportation Systems M'l'iJ o!" !NCOHroRAT!O~ April 2005 PlACE OF INCOro,'OMTION CALIFORNIA hUDRESS O~I PRINC~PAL PL&~ OF BUS!NESS 3000 DATE STREET S T REF.',[' RIVERSIDE c: I~'Y 92507 "--'}!;ii'"CC1)T~-- - ----.- - --. -..-.-- l~S C~ OF?ICEaS ~ RES!DENCE AJ?DJ!.ESS ~.':~_~ CITY ZIP ceDE L Mesfin Shawel 3404 Peggy Ct. West Covina 91792 2. J. 4. (:F AnD IT:r.ONAt , SPACE Nr::En..~D. USE Sf.:'l''&R1\1'E SIIEE'T') IV. VEHICLES TYPE, . MODEL, CAPACITY AND CONDITION OF VEHICLES PROPOSED TO BEOPERA'rED UNDER 'rHIS FRANCHISE. AA INlAND EMPIRE CAB WILL OPERATE 4 DOOR FORD CROWN V1CIDRIA SEDANS AND CHEVY AND DODGE WHEElCHAIR ACCESSIBLE VANS FOR PHYSICALLY CHAUNGED AU VEHICLES WILL BE 0 - 4 YEARS OlD. COMPANY WILL PUT 2% OF THE FLEET SIZE ENVIRDMENTALLY mlENDLY CLEAN NATURAL GAS VEHICLES. (IF ADDITIONAL SPACE NEEDED, USE SEPERATE SHEET) V. INSURANCE SCo~INSURANCECoMPANY NAME OF INSURANCE COMPANY MY. VERNON INSURANCE COMPANY DESCRIP'rIClN OF COVERAGE BEllRAL AND AUTOMOBILE UABlLTY COVERAGE Stooo,oDo.oo - S2,000,ooo.00 RESPEClFULLY AUID 1212312007 -12I23I2ooB GENERAl 0411212008 - 0411212009 POLICY DATE (INCLUDE COPY OF INSU~CE COVERAGE WITH THIS PETITION) VI. STATEMENT OF ASSETS AND LIABILITIES THE PETITIONER IS REQUIRED TO ATTACH A FULL STATEMENT OF HIS ~SETS AND LIABILITIES. VII. DESCRIPTI~ OF OPERATION IN THE SPACE PROVIDED BE'LC1N DESCRIBE THE OPERATION YOU ARE REQUESTING TO FRANCHISE AS WELL AS ANY OTHER INFORMATION YOU FEEL WILL HELP THE FRANCHISE BOARD MAlCE A DETERMINATION WITH RESPECT TO APPROVING YOUR PETITION FOR A FRANCHISE PERMIT. PLEASE SEE DESCRfTloN OF OPERATION ATTAeIID HEREm. VIII. FILING PROCEDURE AND FEE PETITION IS TO BE FILED WITH THE CITY CLERK, BUSINESS LICENSE DIVISION, ATTENTION BUSINESS LICENSE SUPERVISOR, 300 NORTH "0" STREET, S~ BERNARDINO, CALIFORNJ:A 9241.8. AT OR BEFORE THE TIME THIS PETITION IS FILED WITH THE FRANCHISE BUREAU, THE PETITIONER SHAL~ PAY TO THE CITY OF SAN BEBNARDINO A FILING FEE OF $500.00, PLUS $10.00 FOR EACH VEHICLE PROPOSED TO BE COVERED BY THE PERMIT. (THIS IS NOT A BUSINESS LICENSE FEE) PLEASE READ AND SIGN: I CERTIFY THAT ALL STATEMENTS IN THIS PETITION ARE TRUE, ACCURATE AND COMPLE'I'E. FALSIFICATION OF ANY STATEMENT MAY RESULT IN THE CANCELLATION OF THIS PETITION. SIGNATURE DATE Express Transportation Systems Balance Sheet As of August 31, 2008 ASSETS Current Assets Checking/Savings 12599 . City National Bank Total Checking/Savings Total Current Assets Fixed Assets 14000. Computer Software 14999. TAXI-CAB Purchase(Jafar Nividi 15000. Machinery and Equipment 15001 . Furniture 16300' Transportation Cab & Sedans 17000 . Accumulated Depreciation Total Fixed Assets TOTAL ASSETS LIABILITIES & EQUITY Liabilities Current Liabilities Credit Cards 18304. Office Depot 18302' CAPITAL ONE 18000 . American Express Platinum 18200 . CITIBUSINESS CREDIT CARD 18300. WELLS FARGO BANK LINE OF CREDIT Total Credit Cards Other Current Liabilities 18401 . Dell Business Credt-Computers 18301. CITY NATIONAL BANK-CREDIT LINE 18303 . Capital One Business Loan 23001 . Loan-Digital Dispatch Systems 18400. Dell Financial Services 20001 . LOANS FROM ANDARGACHEW SHAWEL 20002. LOAN FROM MESFIN SHAWEL 20004 . LOAN FROM MARVIN APPLEBAUM 23000 . Loan-Wells Fargo Equipment Line 23002 . US Bank Total Other Current Liabilities Total Current Liabilities Total Liabilities Equity 30000 . Opening Bal Equity 32000 . Retained Earnings Aug 31, 08 61,810.33 61,810.33 61,810.33 1,292.96 440,000.00 143,076.91 727.31 256,471.68 -128,743.93 712,824.93 774,635.26 1,777.50 2,133.58 11 ,453.35 7,303.58 99,558.28 122,226.29 3,147.31 43,013.96 95,807.69 73,752.50 1,697.15 445,039.87 121,448.15 1,500.00 17,475.99 31,946.82 834,829.44 957,055.73 957,055.73 -59,208.32 -135,827.21 Page 1 of 2 Prepared By: Monica's Tax and Bookkeeping Net Income Total Equity TOTAL LIABILITIES & EQUITY Express Transportation Systems Balance Sheet As of August 31, 2008 Aug 31, 08 12,615.06 -182,420.47 774,635.26 Page 2 of 2 Prepared By: Monica's Tax and Bookkeeping CERTIFICATE OF INSURANCE ACORD. CERTIFICATE OF LIABILITY INSURANCE OP 10 R~ DATE (MMlDDIYVYV) EXPRES9 06/23/08 PRODUCER THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION R.S.:I. :Insurance Brokers, :Inc. ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE CA L:ICENSE '0782244 HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR 2801 Bristol street '200 ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. Costa Mesa CA 92626 Phone: 714-546-6616 l'ax:714-546-4457 INSURERS AFFORDING COVERAGE NAIC# INSURED INSURER A scottsdale :Ins.Co.'41297 41297 INSURER B Mt. Vernon Ins. Co. AA :Inland Empire Taxi systems INSURER C Exgress Transportation 30 0 Date Street INSURER 0 Riverside CA 92507 INSURER E COVERAGES THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO AlL THE TERMS. EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. AGGREGATE LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. I',.."r< ~SRii POLICY NUMBER 1P8k~T(MM1DDIYY) LIMITS LTR TYPE OF INSURANCE DATE (MMlDDIYY) GENERAL LIABILITY EACH OCCURRENCE $1,000,000 f-- B ~ COMMERCiAl GENERAl LIABILITY CL2328951A 04/12/08 04/12/09 U"IW"'~ $100,000 I CLAIMS MADE [!] OCCUR PREMISES (Ea occurence) MED EX? (Anyone person) $ 5,000 PERSONAl & ADV INJURY $1,000,000 GENERAL AGGREGATE $2,000,000 - GEN'L AGGREGATE LIMIT APPLIES PER. PRODUCTS - COMP/OP AGG $ :INCLUDED I n PRO- nLOC POLICY JECT AUTOMOBILE LIABILITY COMBINED SINGLE LIMIT - $ 1,000,000 A ~ ANY AUTO CAS0087083 12/23/07 12/23/08 (Ea accident) AlL OWNED AUTOS BODIL Y INJURY - $ SCHEDULED AUTOS (Per person) - HIRED AUTOS BODILY INJURY - $ NON-OWNED AUTOS (Per aCCident) - - PROPERTY DAMAGE $ (Per accident) GARAGE LIABILITY AUTO ONL Y - EA ACCIDENT $ R ANY AUTO OTHER THAN EA ACC $ AUTO ONL Y: AGG $ . EXCESSIUMBRELLA LIABILITY EACH OCCURRENCE $ tJ OCCUR D CLAIMS MADE AGGREGATE $ $ R DEDUCTIBLE $ RETENTION $ $ WORKERS COMPENSATION AND !n)R'vtIMIT'"S I jOIH- ER EMPLOYERS' LIABILITY EL EACH ACCIDENT $ ANY PROPRIETORlPARTNERlEXECUTIVE OFFICERlMEMBER EXCLUDED? EL DISEASE - EA EMPLOYEE $ If yes, describe under EL DISEASE - POLICY LIMIT $ SPECIAL PROVISIONS below Oll-fER DESCRIPTION OF OPERATIONS I LOCATIONS I VEHICLES I EXCLUSIONS ADDED BY ENDORSEMENT I SPECIAL PROVISIONS CERTIFICATE HOLDER CANCELLATION -01 SHOULD Am OF ll-fE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPlRA110N DATE ll-fEREOF, ll-fE ISSUING INSURER WILL ENDEAVOR TO MAIL 10 DAYS WRITTEN - I NOTICE TO ll-fE CERllFlCATE HOLDER NAMED TO ll-fE LEFT, BUT FAILURE TO DO SO SHALL IMPOSE NO OBLIGA110N OR LIABILITY OF ANY KIND UPON ll-fE INSURER, ITS AGENTS OR REPRESENTATIVES. A~~ .? DESCRIPTION OF OPERATION !lY ""R''1 ,.,...,., A.. ,'" ~I <'~'- r. "(;~"~. .J.! .':1 ~~~. .~'. 1"'\' (::.-'=':~,.. ~y . "' :.i lLfJ'. A ......u DESCRIPTION OF OPERATION Taxicab Operations AA Inland Empire Cab providing taxicab service in the Inland Empire area since 2000. AA Inland Empire Cab has been granted licenses to provide taxicab service in the cities of Yucaipa, Perris, Lake Ellsinore, Corona, Hemet, Moreno Valley, Norco, Temecula, Redland, Banning, Beaumont Grand Terrace, Calimesa, San Jacinto, Canyon Lake, Loma Linda and City of Riverside AA Inland Empire Cab operates from centrally located premises in the City Of Riverside at 3000 Date Street These 4,000 square foot premises include office space, a well equipped shop for servicing of the vehicles, a driver training center, a dispatch and management office and a parking area for the staging of AA Inland Empire Cab's taxicab fleet. As set forth below, AA Inland Empire Cab is already fully staffed with both management and trained employees who have a combined total of almost 100 years of experience in the taxicab industry. AA Inland Empire Cab will provide door to door service in late model vehicles being driven by courteous, well trained uniformed drivers. AA Inland Empire Cab will operate its vehicles 24 hours a day, 365 days per week. AA Inland Empire Cab will start with 25 taxicabs which will be dedicated to serving the City of San Bernardino, as well as the neighboring Inland Empire cities in which AA Inland Empire Cab is already licensed. AA Inland Empire Cab, based on its market study, believes that 20 taxicabs operating during the day and 5 operating at night should adequately service the demand and allow for quick response times. AA Inland Empire Cab owns 25 vehicles which are equipped as taxicabs. These vehicles are clean, well maintained late model Ford Crown Victoria and Chevrolet Venture wheelchair Accessible taxicabs. AA Inland Empire Cab is willing and able to adjust the number taxicabs being operated to insure that it has an adequate fleet at all times to quickly respond to requests for service, and is prepared to add additional vehicles as its business increases. To insure that all of its vehicles are safe, clean and well maintained, all vehicles will be given a full inspection on the premises twice daily at the start of each shift by the drivers. Each driver will be required to complete a Pre-Shift Inspection Report prior to placing the vehicle on the road. In addition drivers will be required to immediately report any problems with the vehicles while they are on the road to management. AA Inland Empire Cab maintains computerized maintenance records of all service to its vehicles. AA Inland Empire Cab maintains a toll free telephone line, as well as numerous other local telephone lines, for customers to call in on. All calls for service are computerized and fully integrated with GPS systems. Calls for taxicab service will be received by a well staffed dispatch office which, which will inquire as the location of the passenger and any special needs the passenger may have, then immediately assign the call to the closest open vehicle or one of the wheel chair access 3000 Date Street Riverside, CA 92507 Tel: (909)829-4222 Fax: (951)369-3049 ~ ""),, D' Ii "R'-J . .~T ;.,~ ~,,~ ~ ~ ilf\ 1 "\~. ...., ....~ ..1.-. .1.~,l. 'i vehicles if needed. AA Inland Empire Cab has a minimum of two dispatchers and two order takers working at all times. AA Inland Empire Cab's dispatch center is located on at AA Inland Empire Cab's businesses premises at 3000 Date Street in Downtown Riverside. As the dispatch center is on premises, management is constantly and immediately accessible to handle any problems which may arise. The dispatch room is frilly equipped with all necessary telecommunications and computerized dispatching and mapping equipment. AA Inland Empire Cab currently employs several experienced dispatchers and order takers. All dispatchers must have no less than one year experience as a taxi cab driver. AA Inland Empire Cab specifically focuses on hiring dispatches with good communications and people skills. AA Inland Empire Cab uses Taxi Track module allows for pick-ups and e drop offs. This system takes a DATA database (which we use in the CSC to keep all passenger info) and converts it into a DDS-friendly format. Call takers enter trips on an exclusive company ride screen that is easily accessed from Call Takers screen. The company Ride screen allows call takers to enter zone numbers to dispatch forced addresses and automatically displays GPS based distance estimation. AA Inland Empire Cab also uses DDS Microsoft Windows based GPS mapping software uses digital, color road map to display the location of all vehicles in the fleet as well as addresses and landmarks. Dispatchers find information quickly using a mouse or hot keys. All cars are color coded in reference to their current status and location, speed and detailed vehicle information is displayed by clicking on the unit. Dispatchers easily zoom in and out to achieve different magnification levels. All dispatchers receive appropriate training on dispatch computer systems and software. Additionally, dispatching experience and knowledge of dispatching and systems is a condition of employment. Over a period of approximately a week, dispatchers are trained on equipment, software and on the basics of dispatching procedures and techniques. AA Inland Empire Cab drivers communicate with the dispatch system using the MDTs installed in each vehicle. The MDTs display incoming messages, and drivers read and transmit messages using a convenient set of function keys. The drivers Log On at the beginning of a shift and car and driver attributes are merged for the remainder of the shift to satisfy customer requests. AA Inland Empire Cab goes to great lengths to insure that its drivers are courteous, professional and well trained. Prospective taxicab drivers are given a personal interview with the General Manager, and required to provide proof of a clean driving record. They are also given a general aptitude test. If they pass, they are then put in a training class. Training consists of instruction in the rules and regulations for drivers, taxicab operation and safety, accident prevention, procedure to be followed in the event of an accident, taxicab operation dispatch and procedure, and map book use. In addition drivers are put through a special sensitivity program to prepare them for working with the elderly and disabled. After taking all of these classes, but prior to going out on the street, each new driver is paired with another experienced driver for 6-8 hours of behind the wheel training, where the driver is given personal guidance in using the taxicab, the radio, the meter, interact with 3000 Date Street Riverside, CA 92507 Tel: (909)829-4222 Fax: (951)369-3049 /l 11';:::< .~. ~1'!"" ft, 1'\'-r ,.",,:v.T ,-'i' ,~ H J.,y. . ,\. 1."".1 ~ ......--=.,..~.~....~I. .~~ "'.J customers, fill out paperwork and other taxicab activities. The experienced driver must find the trainee understands the procedures for a proper and complete vehicle check out inspection; has good general knowledge of radio procedures and codes; has the ability to use and understand meter during the ride and post shift readings; has adequate knowledge of the service area to enable timely service of orders and correct transport of fares; knows how to use a Thomas Brothers map guide; demonstrates courtesy and a professional attitude; has good physical appearance, grooming and hygiene; understands how to complete a trip sheet; and appears ready to operate the cab without further supervision. All complaints against drivers are given immediate and careful investigation. Drivers are interviewed, and if found to have been in violation of any taxicab rules and regulations, company rule, or guilty of insensitivity or discourtesy towards customers, talked to at length regarding the inappropriate nature of their conduct and what AA Inland Empire Cab expects from them instead. Drivers may also be required to retake driver training. In addition as noted above, AA Inland Empire Cab has developed its own special sensitivity training program which is given to all drivers and which offending drivers may be required to take again. AA Inland Empire contracted with an outside consultant and authorized laboratory to provide regular drug testing of all employees and drivers. AA Inland Empire Cab schedule pre employment/lease/permitting driver drug and alcohol testing and enroll all current drivers in a mandatory controlled substance and alcohol testing certification program as mandated by California Government Code Section 53075.5. AA Inland Empire Cab will ensure both annual and random testing of the drivers. AA Inland Empire currently employed road supervisors, who are in the field on a constant basis monitoring the performance of its taxicab drivers, and assisting in the event of breakdowns or accidents. AA Inland Empire Cab already has in place a marketing team to actively bring the message to the citizens of San Bernardino that they now have a new choice in taxicab service. In addition to advertising in local yellow page directories, this team will distribute business cards and pens with AA Inland Empire Cab's name and toll-free number on them throughout the community. AA Inland Empire Cab will also distribute fliers and napkins in bars, taverns and clubs reminding people not to drive and drink and to call for a taxicab instead. AA Inland Empire Cab may also distribute promotional and discount coupons in promotional mailers and I or supermarket check out receipts. AA Inland Empire Cab makes a special effort to serve the handicapped and elderly. AA Inland Empire Cab is aware that the City of San Bernardino has many medical facilities and that many of those who utilize taxicab transportation in the city are senior citizens or disabled. In order to properly serve these patrons, AA Inland Empire Cab will operate three wheelchair accessible vans which are specially outfitted with ramps and other equipment to accommodate wheel chair and other disabled passengers. 3000 Date Street Riverside, CA 92507 Tel: (909)829-4222 Fax: (951)369-3049 T/\XICAB j~,.. ~.l..~~l ft.,\ ~J ~ ",-,",.fJ~JL...."~.i. 'U In addition, all drivers are given special sensitivity training. These classes provide specific instruction on serving passengers who use mobility aids, passengers who are wheelchair users, passengers who are blind and low versioned, passengers who are deaf and hard of hearing, passengers who are speech impaired, passengers with mental disabilities, or have AIDS, and passengers with Epilepsy. In addition the sensitivity class instructs drivers on what is required to comply with the Americans with Disabilities Act and on how to use language which will not offend disabled or disadvantaged customers. AA Inland Empire Cab's on-going commitment to excellence in service is evidenced by our strong customer orientation with special emphasis placed on the needs of people with disabilities. We are acutely aware if the Americans with Disabilities Act (ADA) and the laws surrounding this act. We operate within the Act and train our employees, subcontractors, and independent contractors to do so as well. As a part of their initial training program and orientation, all employees and operating personnel receive specific training in the areas of human and passenger relations with particular emphasis placed on knowledge of and compliance with the Americans with Disabilities Act. AA Inland Empire Cab constantly monitors and reviews driver's waybills and dispatch records to insure that it has adequate staff and vehicles available and that it maintains quick response rates. The company also has a complaint system in place to insure that all customers are satisfied with the service they receive (discussed infra). Complaints are promptly and thoroughly investigated and resolved to the satisfaction of the customer. AA Inland Empire Cab offers discounts and special fares where allowed by the applicable licensing jurisdiction. AA Inland Empire Cab often distributes discount coupons to encourage customers to try its service. AA Inland Empire Cab also offer discounts to senior citizens and physically challenged individuals who must rely heavily on public transportation. Manae:ement .:. Management Resource: AA Inland Empire Cab has an unmatchable management resource from within our family of companies. Mesfin Shawel is the Chief Executive Officer of Express Transportation Systems and is active in the overall management of the company. He has been a major player in the southern California taxi industry for most of his adult life and in a significant leadership role since 1989 when he became the President of I.T.O.A. in city of Los Angeles. Mr. Shawel has been involved in a successful operation of Paratransit projects in City of Los Angeles and participates in Immediate Taxi program and the Los Angeles City Ride Program. He is the graduate of Pepperdine University Paratransit Management Program and also work as a Project Manager for ASC's contract to Western/Central Region of ASI Inc. He has been working in the transportation' industry for twenty-four years and has been in management positions since 1989. 3000 Date Street Riverside, CA 92507 Tel: (909)829-4222 Fax: (951)369-3049 TAXJIC~\B & SJEDAN .:. General Manager: Theresa Berger (tberger@aacabonline.com) was hired in 2008 as General Manager of AA Inland Empire Cab. Theresa grew up in the Taxi business. Her grandfather owned a taxi cab company. Her father was a taxi cab driver and her mother a dispatcher. Little did she know at the time that the taxi business would be her career? Theresa grew up in a small town in North Dakota. She graduated from Minot High School in 1976. She then attended North Dakota State School of Science majoring in Computer Operations. Theresa owned her own business in North Dakota for 15 years before moving to California in 1999. Theresa became the Operations Manager for A-I Direct Satellite Company in West Covina. She worked for them for about 3 years. She was instrumental in building their business to being the #1 satellite company in the U.S. She started with AA Inland Empire Taxicab in 2000 as a driver. She drove for about 6 months. At that time the company hired her to come into the office and take over as Operations Manager. She worked side by side with the General Manager, Frank McFadden, for 3 ~ years learning the ins and outs of the taxi business. She left AA Cab in 2004. She then began work at Bell and Yellow Cab Co. of San Bernardino as the Marketing Director. She brought in many business accounts which she made sure the customers were picked up on time and well taken care of. She was successful in starting and operating their expansion into the High Desert area. She also was a key person in maintaining the Riverside Transit Program for about 1 ~ years. She knows and understands the taxi business inside and out. She is a resident of San Bernardino and understands the demographics of the city, and the needs of its residents. She has extensive management experience and also excellent customer service skills. She is a wonderful addition to our company, and would bring not only experience but professionalism to your city. .:. Our Operations Manager is Charley J. Brady (cbrady@aacabonline.com) Charley has been an Operations Manager with AA Inland Empire Cab for the last two years. He is an experienced professional with thorough understanding of the policies and procedures of Vehicles inspections and PMI and also overlooking driver operation overall. .:. Our Training Manager is Anthony Thomson (athomson@aacabonline.com), Anthony is our driver and employee's trainer and has been associated with Paratransit operations in southern California for over twelve years. He has been with our organization for over two years. Anthony has developed and implemented the AA Inland Empire Cab training program for all Paratransit drivers and employees, including all classroom instruction, behind the wheel training and mobile data terminal training. He has the responsibility of tracking all training records for DMV, CHP and for the implementation ofthe Federal Drug and Alcohol Testing program and all related paperwork. .:. Also available to the Express Transportation Systems management team will be, AA Inland Empire Cab's Chief Dispatcher and Router Mr. Greg Widgeon(gwidgeon@aacabonline.com) a seasoned Taxi and Paratransit industry veteran who currently serves as Chief Dispatcher and Router for AA Inland Empire Cab. Mr. Widgeon is responsible for all aspects of day-to-day operation for the 3000 Date Street Riverside, CA 92507 Tel: (909)829-4222 Fax: (951)369-3049 lJ\XICl\B & SEDAf'J dispatch department. He is experienced Paratransit professional with extensive experience in dispatch and scheduling operations. His experience will give us the ability to quickly improve the effectiveness and efficiency of the service to Taxicab Riders. .:. Field Services Supervisors will round out our management team for day to day operation. The Field Services Supervisors will coordinate and handle any emergencies, such as accidents or breakdowns to maintain continuous high quality service to our clients. Supervise drivers for proper attire and coordinating on time performance with dispatch. This will be accomplished by combining our GPS capabilities of the DDS dispatch system. Road Supervisors will have full coverage monitoring the quality of service in the field. Our Lead Field Services Supervisor is Delano Wilson. 3000 Date Street Riverside, CA 92507 Tel: (909)829-4222 Fax: (951)369-3049 INCENTIVES PROPOSAL TO THE CITY OF SAN BERNARDINO p- ;g;-Y'lf7'"n1 It" N. J ~ 2)) Jil~IiJ:4 A J' INCENTIVES PROPOSAL TO THE CITY OF SAN BERNARDINO From AA Inland Empire Cab Competition between taxi companies is a positive condition for the citizens of San Bernardino and Inland Empire. Competition produces a higher overall level of service to the community. AA Inland Empire Cab respectfully requests that the City allow us to compete on a level playing field. In addition to having the opportunity to satisfy current business demands, we would like to have the ability to compete for future businesses One of the many benefits of allowing the taxicab permits to AA Inland Empire Cab is the four proposed social service programs we will be willing to implement to City Of San Bernardino. The first program addresses the issue of driving under the influence (DUI). With the advice of the police Department, we will target problem areas, distributing complimentary taxi coupons to area restaurants, lounges, clubs, Bars etc. This will help the night life business and the patrons who frequent these establishments who become intoxicated and unable to drive. The second program relates to senior citizens. AA Inland Empire Cab would be willing to develop a discounted fare system within the boundaries of San Bernardino. This program will help stretch seniors' transportation dollars, allowing them increased flexibility and a higher quality of life. The third program that is worth consideration is a plan that would institute a flat-rate zone that would encompass the high-density area of Downtown San Bernardino. This could be implemented using the same guidelines as the downtown Los Angeles flat-rate zone that has been in existence for the past several years. The fourth program AA Inland Empire Cab will introduce to the City Of San Bernardino is to offer free rides to and from the Poll during Local Primary Election with full coordination of City Of San Bernardino. By way of giving this great service not only the city will benefit but also AA Inland Empire Cab will be closer to the citizens of San Bernardino. Other Special services we extend to City Of San Bernardino Patrons include 10% discounts to all Senior Citizens, Wheelchair Accessible vehicles, Gold card program custom designed for establishments serving alcohol, frequent rider program and Flat rate within the business corridor. Since AA Inland Empire Cab will be multi-jurisdictional company, we will have the flexibility to transport citizens' round-trip from outlying areas. This eliminates the need to use a second cab company to return San Bernardino residents back to the city. 3000 Date Street Riverside, CA 92507 Tel: (909)829-4222 Fax: (951)369-3049 . Q {-r e;~,~'4"" .1\11'.'''. &. ,~. ~J ~ k..>!!....J liJv,. fu.J \J In conclusion, AA Inland Empire Cab looks forward to operate in the City Of San Bernardino. We are confident we will prevail as the cab company of choice for the majority of residents and businesses in City Of San Bernardino. We also look forward to having the opportunity to bring some positive community- based programs to the citizenry, showing our appreciation to the City of San Bernardino. 3000 Date Street Riverside, CA 92507 Tel: (909)829-4222 Fax: (951)369-3049 BELL AND YELLOW CAB DRIVERS PERMITTED BY CITY OF SAN BERNARDINO A. VERIFIED BY CITY OF SAN BERNARDINO POLICE DEPARTMENT - MARK WYMAN B.NO PENDING PERMITS VERIFIED BY DEBBIE GREENLY OF SAN BERNARDINO POLICE DEPARTMENT. The Importance of Permits 1. When a new driver comes in to apply for a driving position the company is required to send them for a Drug Test and then to the Police Department to obtain a drivers permit in the city they will be driving in. 2. The police will then fingerprint the driver and run a Department of Justice Background check. This is to assure that the driver is of good character to be picking up the cities citizens safely. 3. Just recently a driver from Bell Cab Co. was arrested at the Greyhound Bus Depot for an alleged rape of a customer. This driver has been employed with Bell Cab for over a year. He does not have a San Bernardino permit although that's mainly where he drives and picks up. This is against their Franchise agreement with the city. 4. AA Inland Empire Cab will assure you that each and every driver will be drug tested and will be required to obtain a permit from the police department. As you can see only 7 drivers have had permits in your city. How can Bell and Yellow Cab Co. have 82 permits and only 7 drivers permitted? This seems to be a danger to your citizens. cnme ana J:'UOlIC :sarety /-HS-LUUlS - :san tlemaramo county :Sun Page I of5 FONTANA Deputy shoots man as pit bulls attack A sheriffs deputy accidentally shot and wounded a man who was near two pit bulls that were running at deputies Thursday, authorities said. The 3:30 p.m. shooting occurred in the 17500 block of Pine Avenue, where San Bernardino County sheriffs deputies were serving a search warrant for drug sales. As deputies approached a home where two people were standing out front, two pit bulls charged the deputies. In firing at one of the dogs, a deputy hit the man near one of the dogs, according to sheriffs spokeswoman Arden Wiltshire. The unidentified man, who is expected to live, was taken to Arrowhead Regional Medical Center in Colton. Fontana pOlice will lead the investigation of the officer-involved shooting. A sheriffs homicide team will conduct its own investigation. - stacia.glenn@ inlandnewspapers.com Advertisement THE SUN SlIlllkrHi.II1ii'Ui ('OtIJ,~\,; YeH."papCI" Subscribe today! www.sbsun.com/subscribe -_.-'--._----'~.,---....,; HIGHLAND Cabbie, 38, accused of raping passenger A cab driver accused of raping a woman in the back seat of his taxi posted bail Thursday. Keith "Mark" Olando Carnes, 38, of Highland was arrested early Wednesday on suspicion of forcible rape. He posted a $100,000 bail and was released from Central Detention Center in San Bernardino. A 32-year-old woman told San Bernardino County sheriffs deputies she had just left a bar on Base Line when Carnes approached and offered her a ride, which she accepted. Carnes then drove her to a parking lot at Base Line and Sterling Avenue, where the alleged assault took place. He drove the woman to her destination atter the rape, deputies said. Anyone with information on the case is asked to call sheriffs detectives at (909) 425-9793. - stacia.glenn@ inlandnewspapers.com SAN BERNARDINO Man faces charge of attempted murder A 28-year-old man has been arrested in connection with the assault of another man who remained in critical condition late Thursday. (800) 922-0922 .....,..,....... ~ .........."'..", ~.", __~..rW sbsun.com/search/ci_9916953 ?IADID=Search-www.sbsun.com-www.sbsun.c... 7/18/2008 hrtp://w'" .. . NeT ~'\I Business License Web Search Page 1 of 1 Printer Friendly Results Business Name Business Owner Name Business Expiration STATUS Address Phone Date KEN GRABLE 1510 W 5TH ST KEN GRABLE (909)913-1180 01/31/2009 Active BILL OUSLEY 1510 W 5TH ST BILL OUSLEY (909)984-6127 08/31/2008 Active ROBERTO SIERRA 1510 W 5TH ST ROBERTO SIERRA (909)881-8777 02/28/2009 Active JUAN CARLOS MARQUEZ 1510 W 5TH ST JUAN CARLOS MARQUEZ (951)315-7732 01/31/2009 Active ~ JAMES MORENO 1510 W 5TH ST JAMES MORENO (909)884-8777 01/31/2009 Active BELL CAB COMPANY/YELLOW CAB ~ CO 1510 W 5TH ST SAN GABRIEL TRANSIT (909)884-6100 09/30/2008 Active EDWARD & JUDY PARLAS 1510 W 5TH ST EDWARD & JUDY 09/30/2008 Active PARLAS GERALD THOMAS 1510 W 5TH ST GERALD THOMAS (909)884-1111 02/28/2009 Active GALDINO CHAVEZ 1510 W 5TH ST GALDINO CHAVEZ (909)357-2937 01/31/2009 Active Your search returned 9 results. Powered bv Proaressive Solutions. Inc. CODvriaht 2008 https://secure.sbcity.org/websearchlDefault.aspx 6/12/2008 D U:>lUC:>:> Ll~Cll:>C VV CU ~Can;ll Page 1 of 1 Printer Friendly Results Business Name Business Owner Name Business Expiration STATUS Address Phone Date KEN GRABLE 1510 W 5TH ST KEN GRABLE (909)913-1180 01/31/2009 Active KENNETH RAY 1510 W 5TH ST KENNETH RAY (909)639-6315 01/31/2009 Active KENNETH FORD 1510 W 5TH ST KENNETH FORD (909)884-6100 04/30/2009 Active BILL OUSLEY 1510 W 5TH ST BILL OUSLEY (909)984-6127 08/31/2008 Active ROBERTO SIERRA 1510 W 5TH ST ROBERTO SIERRA (909)881-8777 02/28/2009 Active JUAN CARLOS MARQUEZ 1510 W 5TH ST JUAN CARLOS MARQUEZ (951)315-7732 01/3112009 Active JAMES MORENO 1510 W 5TH ST JAMES MORENO (909)884-8777 01/31/2009 Active BELL CAB COMPANY/yELLOW CAB 1510 W 5TH ST SAN GABRIEL TRANSIT (909)884-6100 09/30/2008 Active CO EDWARD &. JUDY PARLAS 1510 W 5TH ST EDWARD &. JUDY 09/30/2008 Active PARLAS SERGIO PEREDIA 1510 W 5TH ST SERGIO PEREDIA (909)884-8777 03/31/2009 Active GERALD THOMAS 1510 W 5TH ST GERALD THOMAS (909)884-1111 02/28/2009 Active GALDINO CHAVEZ 1510 W 5TH ST GALDINO CHAVEZ (909)357-2937 01/31/2009 Active Your search returned 12 results. Powered by Progressive Solutions, Inc. Copyright 2008 https://secure.sbcity.org/websearch/Default.aspx 7/10/2008 DEMOGRAPHICS Demographics SECTION II Demographics A look at the demographic information available on San Bernardino reveals a city that is a county seat, the second largest community in the Inland Empire, ethnically diverse, and one that is expanding at a modest rate by inland stan- dards. The community is the central city of an East San Bernardino Valley area that is growing in population and economic power, a fact that explains why its Hospitality Lane, Inland Center and the East Highland Avenue retail areas have done very well. San Bernardino's households have modest incomes, a fact that reflects the City's lower housing costs, and the young age of its population. Exh,b.1: 2-1 -PopulatJon GmV\Ah San E3enkln:hno 2000-2006 2000 2001 2U02 2003 2004 2005 2006 2~2006 Source; CA..~-=nt otFinanct:, &5 'Repc:ats, J990.-.2006; SoUJ~ Chlitt::.nia A.ssociutK::Jn. at-C~~ 2004 Population. From 2000-2006, San Bernardino grew from 185,382 people to 201,823, a gain of 16,441 people or 8.9% in six years (Exhibit 2-1). In this same period, San Bernardino County added 107,416 people, a gain of 14.4%. From 2000-2006, the 16,441 people added in the City was the eleventh largest increase among the 48 Inland Empire cities. In 2006, San Bernardino ranked second in size among the inland region's communities, behind Riverside (287,820). Also in 2006, San Bernardino was California's 18th largest City behind Glendale (206,308) and above Huntington Beach (201,1 00). San Bernardino's market area, which is composed of San Bernardino, Colton, Fontana, Grand Terrace, Highland, Lorna Linda, Redlands, Rialto and Yucaipa, had 851,492 people in 2006. It is forecasted to reach 885,555 people by 2010 and move on to 989,261 in 2020 and 1,085,415 in 2030 (Exhibit 2-2). Exl-..l::>l1: 2- 2 -Populab<:>t1 For-ecast: San Be-nk:l."Ci.,-..o M..3r1<:et A."C.::l. 2000-2030 2000 = 2010 2015 2020 = 2mO East SB Vall~: Colton. Fonhmu.. GnUlu TerT".1C4;:, Highland, Lon'1u Linda, Rt:dlands. Riultu, San Bemwdino. Yucuipu Source: Southern CalifOrnia Association otGovenunents. 2004 San Bernardino Page 7 Demographics Income. In 2005, the City's total personal income was estimated at $3.21 billion, fifth highest among the 48 Inland Empire cities, behind Moreno Valley ($3.26 billion) (Exhibit 2-3). Ontario was the next highest ($3.02 billion). At the per capita income level applicable to the East San Bernardino Valley area in 2005 ($20,526), the City's merchants are competing in a market place with 851,492 people and $17.5 billion in total income. That regional market was the reason for San Bernardino's relatively strong retail sales performance in 2005 (see section V). In 2005, the City's median income was $38,470. Ethnicity. Ethnically, San Bernardino's largest group was the 55.9% of residents who classify themselves as Hispanic (Exhibit 2-4). This was up from 47.5% in 1990 and above the 44.0% in San Bernardino County. The next largest group were the 18.3% who were White in 2005. This was down from 28.9% in 1990 and about half the share in San Bernardino County (39.3%). African-American residents made up 17.2% ofthe City in 2005, up from 16.0% in 1990. That was double the 8.6% share in the county. Some 5.6% of San Bernardino's resi- dents were estimated to be Asian or Pacific Islanders in 2005. This was up from 4.4% in 1990. The rate was 5.4% for San Bernardino County. In 2005, San Bernardino was home to 1,250 Native Ameri- cans (0.6%). They represented 16.3% of San Bernardino County's 7,682 Native Americans. Asian & Pacific 11,187 5.6% Black 34,304 _____ 17.2% White 36,470 18.3% Exhibit 2 3 ToLll Spl! Ilelabl.. Illcomp (mIIIIOIlS) IIlLlIlel Empl'" Top 10 of 4[':; Cltll'S 2005 Riverside R Cucamonga Corona Moreno Vly San Bdno Ontario Fontana Mwrieta Temecula Upland &uce: US G:n5us!beau. Eccncn-ics &Politics, Inc. Exhibit 2-4.-Ethrllc Distribution San Benurdino & San Benurdillo Colalty. 2005 San Bemardino Other 4,941 2.5% Native American 1,250 0.6% San Bemardino County Other [ 43,673 2.3% Native American r 7,682 0.4% D Hispanic .' ~ 823,682 .... . . 44.0% Asian & Pacific 101,980 5.4% Black 160,292 8.6% r \ Hispanic '- 111,652 55.9% White 736,126 J 39.3% ~: Cimsus, Public Uiw94-17IEl:hnici1y Files; a.JiIania o"partrr.ent afFinance, I::B~ CCnsuItDw. us G,n;us Bureau San Bernardino Page 8 Demographics Education. San Bernardino education levels largely reflect those of the Inland Empire. In 2000, 11.6% of the City's adults had either a bachelor's or advanced degree. That level was somewhat be- low the share of the adult population in either San Bernardino (15.9%) or Riverside (16.6%) counties. The rates were higher in the coastal counties: Los Angeles (24.9%), San Diego (29.6%) or Orange (30.8%) counties (Exhibit 2-5). Some 60.6% of the City's adults stopped their educations at high school or less schooling. That was above San Bernardino (50.8%) or Riverside (49.7%) counties. Employers thus find a large workforce seeking blue-collar jobs. Exhbit 2-5.-College Graduate or High School/Less San Benlardlllo & Southenl Cahfonlla. 2000 60.6% II , I I I . College Graduales 0 High School or Less 50.8% Ii I I 49.7% 48.9% 37.3% SanBermrdim SB ilirty Riv Carty La;~lesCo. Orange Co. SanDiegoCo. Source: 2000 Census Age. San Bernardino is a very young city with an estimated 60.2% of its residents under 35 in 2005. This composition likely reflects the City's status in having the most affordable housing in urbanized Southern California. In 2005, its largest population group was made up of older children and young adults aged 10.19 (18.6%). This group was followed by their younger siblings 0-9 (17.3%). The third largest group were their parents aged 24-34 (15.4%). In 2005, only 15.3% of San Bernardino's popu- lation was over 55 versus 18.5% for the Inland Empire (Exhibit 2-6). Exhibit 2-6.-Age Distnbution San Benlardlllo & Inland Errpire, 2005 . San Bernardino 0 Inland Empire ~9 1~19 20-24 25-34 3544 4$-54 55-{)4 65-74 75&Up Source: City rom DB Demographic Consulting; Counties rom Census Bureau's American Commlll1ity Survey San Bernardino Page 9 Demographics Lookup Page 1 of 3 1\ 1; j I',', \ 0 A - r .' \ Products Downloads lcx>kups Support Contac;t Sign In I Search I Get the pI'1Qqe.. numbe you're looking for rl"<#;'4'.4~""(,,,., I Easily add missing customer phone numbers to your list. ,/1, f t< ' ,;':':i~r"I'" "'~t mskj.ol'li4al phv.l: :'i:n;",r~ .... "~"'l '"'1''''''''''':''' .', ," "',i':'.'",:, JIII"'".......,;,~~ ~,'_""~,.,..a:..",.<::r .. .-e .,._._. Demographics Lookup I Help I Index Enter a place, city, county or metro area name I Submit I Year 2000 Demographics of the city San Bernardino, California SEX AND AGE Value Percent Total Population 185,401 100.0% Male 91,150 49.2% Female 94,251 50.8% Under 5 18,177 9.8% 5 to 9 19,896 10.7% 10 to 14 17,608 9.5% 15 to 19 15,637 8.4% 20 to 24 14,295 7.7% 25 to 34 27,300 14.7% 35 to 44 27,615 14.9% 45 to 54 18,687 10.1% 55 to 59 6,076 3.3% 60 to 64 4,844 2.6% 65 to 74 7,993 4.3% 75 to 84 5,503 3.0% 85 and up 1,770 1.0% Over 18 120,221 64.8% Over 18 Male 57,687 31.1% Over 18 Female 62,534 33.7% Over 21 111,138 59.9% Over 62 18,102 9.8% Over 65 15,266 8.2% Over 65 Male 6,124 3.3% Over 65 Female 9,142 4.9% Median Age 27.6 n/a RACE I I http://www.melissadata.comllookups/demo2000 .asp ?ident=89251 6/16/2008 Demographics Lookup One Race 175,603 94.7% White 83,849 45.2% Black 30,425 16.4% Indian 2,591 1.4% Asian 7,772 4.2% Asian Indian 459 0.2% Asian Chinese 585 0.3% Asian Filipino 1,898 1.0% Asian Japanese 347 0.2% Asian Korean 496 0.3% Asian Vietnamese 1,753 0.9% Other Asian 2,234 1.2% Native Hawaiian & Other Pacific Islander 680 0.4% Native Hawaiian 77 0.0% Guamanian or Chamorro 89 0.0% Samoan 294 0.2% Other Pacific Islander 220 0.1% Some Other Race 50,286 27.1% Two or more races 9,798 5.3% HISPANIC OR LATINO AND RACE Hispanic or Latino (of any race) 88,022 47.5% Mexican 71,891 38.8% Puerto Rican 1,077 0.6% Cuban 251 0.1% Other Hispanic or Latino 14,803 8.0% RELATIONSHIP In Households 179,552 96.8% Householder 56,330 30.4% Spouse 25,315 13.7% Child 68,450 36.9% Own Child under 18 years 54,645 29.5% Other relatives 18,159 9.8% Other relatives under 18 years 8,188 4.4% Nonrelatives 11,298 6.1% Unmarried partner 4,524 2.4% In Group Quarters 5,849 3.2% HOUSEHOLD BY TYPE Total Households 56,330 100.0% Family households (families) 41,099 73.0% Family households with children under 18 years 24,850 44.1% Family Married Couple 25,315 44.9% Family Married Couple with children under 18 years 14,784 26.2% Female householder, no husband present 11,890 21.1% Female householder with own children under 18 years 7,853 13.9% Nonfamily households 15,231 27.0% Nonfamily householder living alone 11,869 21.1% Nonfamily householder living alone 65 and over 4,251 7.5% http://www.melissadata.comllookups/dem02000.asp?ident=89251 Page 2 of3 6/1612008 Demographics Lookup Page 3 of 3 Households with individuals under 18 years 28,198 50.1% Households with individuals 65 years and over 11,300 20.1% Average Household size 3.19 nja Average family size 3.72 nja HOUSING OCCUPANCY Total Housing Units 63,535 100.0% Occupied Housing Units 56,330 88.7% Vacant Housing Units 7,205 11.3% Seasonal, recreational, or occasional use 128 0.2% Homeowner vacancy rate 6.1 nja Rental vacancy rate 9.7 nja HOUSING TENURE Occupied housing units 56,330 100.0% Owner-Occupied housing units 29,536 52.4% Renter-Occupied housing units 26,794 47.6% Average household size of owner-occupied units 3.25 nja Average household size of renter-occupied units 3.12 nja Newsletters I Articles I Bookmark I How Can We Improve? I Batch Processina I Email to Friend I Free Catalog I Forums ::6:U http://www.melissadata.com/lookups/demo2000 .asp?ident=89251 6/16/2008 TAXICAB PETITION SIGNED BY SAN BERNARINO RESIDENTS " 'f{ fl"'O .. s- o: n~ rP 0 ~a: I ::J "0 ag z CD CUI "' IJ ;:;: ::Je r\ :I 0 0.3 fa ::J 3 "'. CD ,ll a. OJ .. a' -< ::. .., OJ rt ::J s: a. )- U) :5":E g Qj :J: G ~ g~CD 0 fir ~ -t IJ CD"' g"O CD e- n =r CD -. '< DI ii _.CD ..,~o >< .!Ct c: lit c: c: o a ~~CD -. - . < n Vl~ @:J:CD DI 01 !!!. C'" OJ .., :J 1.0 n ii =r cr to:J 0 01 Rl~ 3'< a. ." ..,~ "Oog ::J 01 c: ~~ ::JCD~ tD ". a.CD '< < 01 ,... 5' n 'V ~ ;:;: -. ,.).3 ("\ 9g 001 ,... ~ @ n ..,- -. ........ CD 0.0 0 '^ ~)t \N ~ .., CD :J ::J nJ 1.0 ~ ~\ ~ ivJ (), Q. ~ a.tt ~.J , ii n 01 3 -. f\ C'" ~ ;:;: n CD ::::s ~ C7 ~ at N' 01-'" ~ -. - , r- CD C'" Q --. ~ g 01 ,... l t::><;) \f\ !'\ ~ Q1n ::r ~ "'01 tD ...... ~ =r :::::IC'" \.4 ~ VI 0 CD 'V + ~ ~ c: ii:J: n ld -. 01 -. 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"0 -.:::J QI :::J..... :::J o 3 ~ C '< :::J CD ~ ..... CD :::J , IU 0 CD..... \ S- o 0.0. ~ ~ "0 C CD CD Ql ff fir 01 t Q. i fit fit n o 3 3 CD :J ,.,. ~ -.l C \ I ,\ II C. Ii " 0 ~ TAXI DRIVERS CHOICE San Bernardino Taxi Drivers Have No Choice Do you feel your lease amount is fair? r I~ Yes ~ Would you want to switch to another taxi company if they were licensed in the city of San Bernardino and offered you a lower lease? rB No Do you feel that San Bernardino residents have adequate service with only one cab company? r rs."C\ Yes (~ Do you feel the management at your current company (Bell and Yellow Cab Co.) listens to th~ds of the community and its drivers? r I( r No ) Yes V ~ Are there areas of the city that Bell and Yellow Cab Co. wont service? r Yesr 8 Do you drive and pick up passengers in the City of San Bernardino? rYes r@ Printed Name 'i510JJ 171~[}o.>../~ {J - Address J '-I bJ ~ E ~ i c.rL-J e.Jf { A G A Phone # 009 2-' '2, 62,."0 Signatur~ )'11~~/ Date /~ &<. O~ San Bernardino Taxi Drivers Have No Choice Do r.ou feel your lease amount is fair? V r Yes No Would you want to switch to another taxi company if they were licensed in the city of San Bernardino and offered you a lower lease? r/y r N es 0 Do you feel that San Bernardino residents have adequate service with only one cab company? , r Y rv/N es 0 Do you feel the management at your current company (Bell and Yellow Cab Co.) listens to the needs of the community and its drivers? r fV" Yes No Are there areas of the city that Bell and Yellow Cab Co. wont service? f"V". Y r N es 0 D 0 you drive and pick up passengers in t. he City of San Bernardino? ~;:- r-~ r - - () . / ./ A-N.~' S ..').-- c~1 I v Y . N ~ ~1c-e"'.&(ftvrs . ~v<~v<?~- ~--ve4~ r-e] . / es ~ -;;; I / $Q-vv1GL- ...)J-<,.- ~-kPj 1<'.:# Printed Name ~.JtN( 1IJ&r'1fi?\.1 Address If?5? 6'tl~ 51- ~~ i-rJ..,1 LI:r1:2~3,5t) Phone # Lf''J- f3 !;.~ --If?1 Signature ,AI4J________ . Jl~ Date o-{ .--if ---of , MONOPOPLIES challengmg Uenver's Taxicab Monopoly - Institute for Justice Page 1 of 16 Challenging Denver's Taxicab Monopoly Basic Facts About the Case Jones et aI., v. Temmer et aI., District Court case no. 93-B-235, US Court of Appeals case no. 93-1331 The Institute represented four minority entrepreneurs who sought to start their own taxicab business in Denver. Like every applicant before them for the previous fifty years, their application was denied by the Colorado Public Utilities Commission. A three cab taxi oligopoly was kept firmly entrenched by laws and regulations that effectively denied entry to all who sought to serve Denver with better taxicab service. The Institute represented these entrepreneurs along with Reverend Oscar Tillman, Legal Redress Chairman of the Denver NAACP, in a lawsuit challenging the application of these laws and regulations. On August 11, 1993, the Judge ruled in favor of the defendant's motion for summary judgment, and against the Institute for Justice. The Institute appealed to the US Tenth Circuit Court of Appeals. While the case was pending before the Tenth Circuit, the Institute and its clients testified before the Colorado state legislature in favor of opening up the Denver taxicab monopoly. As a result of these efforts and media coverage of the lawsuit, the Colorado state legislature enacted a law on June 2, 1994, for the first time allowed new entrants into the Denver taxicab market. On August 1, 1995, our clients launched Freedom Cabs, which currently employs nearly 100 individuals, and provides improved taxicab service in the Denver market. This case is part of the Institute's campaign to restore full constitutional protection to economic liberty, the right of individuals to earn an honest living without arbitrary government interference. LITIGA TION BACKGROUNDER Introduction On January 28, 1993, the Institute for Justice filed a lawsuit on behalf of four entrepreneurs challenging the constitutionality of the Denver taxicab oligopoly. The three-company oligopoly is maintained by the Colorado Public Utilities Commission (PUC) and the state legislature. Their regulatory regime creates an insurmountable barrier to entry into the Denver taxicab market. Since 1947, every application to operate a new taxicab business has been denied. As a result, countless qualified individuals have been denied the right to earn a living in a business ideally suited to entry-level entrepreneurs. And the general public, especially in low-income, minority communities, suffers from inadequate, unreliable, and costly taxicab service. The ramifications of this lawsuit extend far beyond Denver and the parties involved. Taxicabs are heavily regulated in cities such as Los Angeles, Chicago, Boston, New York, Miami, Buffalo, Houston, and San Francisco, and market entry is tightly restricted. Taxicab regulations often far exceed legitimate safety concerns, and instead are designed to protect existing companies from competition. The barriers to entry are entrenched and long standing. A 1974 study by the United States Department of Transportation found that regulations restricting entry of new cabs and preventing discounting of fares cost consumers nearly http://www.taxi-Iibrary.org/denverOl.htm 7/15/2008 L-lli111Cllglllg UCllVCI ~ 1 i::1Xll::i10 IVIUIlUPUlY - lIlSLHure lor Jusnce page l. ot 16 $800 million annually. Moreover, removal of these restrictions would create 38,000 new jobs in the taxi industry. (1) The situation remains just as bad today. These new jobs and business opportunities would offer vital hope for those at the bottom of the economic ladder. As The New York Times recently noted, taxidriving has for generations been recognized as a "poor man's gateway to mainstream America." (2) The current regulatory scheme in Denver benefits only the three existing companies, their lobbyists, and their lawyers. This lawsuit is part of a comprehensive effort to restore judicial protection for "economic liberty" -- the basic civil right of every American to pursue a business or profession free from arbitrary or excessive government regulation. Economic liberty is an essential part of our nation's promise of opportunity. The Quest For Economic Liberty Following the Civil War, southern governments acted quickly to suppress economic opportunities for newly emancipated slaves by heavily regulating entry into trades and businesses. The national government, acting first through the Civil Rights Act of 1866 and then through the Fourteenth Amendment, sought to protect economic liberty among the "privileges or immunities of citizenship." (3) But in the 1872 Slaughter-House Cases (4), the U.S. Supreme Court by a 5-4 vote essentially read the privileges or immunities clause out of the Constitution. Since that time, states have regulated with impunity entry into trades and professions, often for reasons unrelated to public health or safety, such as social discrimination and protection of professional cartels. Recently, courts have acted to restore some judicial protection for economic liberty under the due process and equal protection clauses of the Fourteenth Amendment. In Brown v. Barry (5), for instance, a federal court in 1989 struck down Washington, D.C.'s Jim Crow-era ban on streetcorner shoeshine stands. The Institute for Justice challenges arbitrary regulatory barriers on behalf of people who are currently outside the economic mainstream. Earlier this month, the District of Columbia City Council deregulated entry into the cosmetology profession in response to an Institute for Justice lawsuit on behalf of African- American hairbraiders. The Institute's efforts are designed to restore protection for economic liberty as a fundamental civil right. History And Scope Of Taxicab Regulation Horse-drawn cabs served American cities without significant regulation through the 19th century. The first motorized taxi-cabs appeared in America in 1897, when the Electric Carriage and Wagon Company placed 12 electric taxicabs in service in New York City. In 1907, New York witnessed the introduction of 65 gasoline-powered automobiles equipped with taximeters. Within a year, internal combustion-driven taxis eclipsed all other forms of taxicabs. The birth ofthe modern taxicab in the United States occurred without restrictions on the free market; still, those restrictions were not long in coming. Some believe today's heavy regulation of the industry in the United States was a response to "ruinous competition" that harmed the public during the Great Depression. To the contrary, close historical analysis indicates that, not only was there no "ruinous competition," but the majority of taxicab regulations were already in place in the late 1920s. (6) During the 1930s car prices and wages fell, bringing large numbers of drivers into the industry. The Federal Trade Commission found that: http://www.taxi-library.org/denverOl.htm 7/15/2008 cnallengmg Uenver'S 1 aXlcab Monopoly - lnstltute tor Justlce page j ot 16 . Many unemployed workers entered the taxi industry using rented cars, and as a result taxi fares, occupancy rates, and revenues per cab declined. Pressures for restrictions on the taxi industry came from the American Transit Association, public transit firms, the National Association of Taxicab Owners (which passed a resolution favoring entry and minimum fare controls) and the established taxi fleet. (7) Entry restrictions did not even pretend to protect the "public interest," and were often couched in explicitly anti.competitive terms. Improved safety or reduced congestion and pollution were occasionally given as reasons, but only as after.the- fact rationalizations. In reality, regulators wanted to '" drive many cut-throat cabs, operating without authority, from the streets' and. . . enable the organized cab fleets and transit companies to increase their profits." (8) There has been little change in the way taxicabs are regulated since the wave of restrictions of the 1930s. For example, with the 1937 Haas Act, New York issued 13,566 taxicab medallions (licenses required to operate a taxicab). Today, there are only 11,800 medallions in the city. (9) Existing medallions can be sold to new operators, but at a price of $140,000 apiece; most aspiring entrepreneurs lack resources to enter the profession. Similar artificially high costs of entry exist in the majority of U.S. cities. Over the years, the taxicab industry in heavily-regulated cities (like Los Angeles, Chicago, Boston, Miami, Houston, San Antonio, Buffalo, Albany, Salt Lake City, and San Francisco) has stagnated. Poor quality, high fares, and long waiting times are now the standard in many cities where taxicab giants have taken control of the market with the aid of regulation. Chicago and Los Angeles, where regulations forbid new taxicab services, illustrate this clearly; in both cities, powerful monopolies have bought out the competition and raised taxicab fares, while new competition cannot enter the market. (10) While some cities prohibit outright new entrants to the taxicab market, others achieve the same results while preserving the facade of open entry. Many cities like Denver and Philadelphia condition entry on a showing of "public convenience and necessity," a standard in practice almost impossible to satisfY. A 1983 survey of 103 cities with populations of 50,000 or more found that 87 percent restricted entry in some manner: . 30 percent had afixed number of licenses; 9 percent had afixed ratio of licenses to population; 25 percent required a showing of public convenience and necessity to obtain a license; 6 percent had franchise requirements; and 17 percent had minimum service standards. (11) While safety and insurance requirements are valid, there is no reasonable basis for restricted entry. A 1984 study of taxicab regulations by the Federal Trade Commission concluded that "there is no persuasive economic rationale" for most regulations, stating "restrictions on entry, minimum fare controls, and restrictions on ride.sharing . . . reduce rather than increase efficiency." (12) Economists, left and right, agree virtually unanimously and state that consumers are big losers (second only to would-be cab owners); they pay higher fares, wait longer for a cab, and get worse service than they would with competition. (13) Poor, minority, and elderly consumers are hit especially hard by these regulations. (14) Members of these groups are less likely to own cars and are more likely to live in areas that are served poorly, if at all, by taxicabs and other forms of public transit. A study commissioned by the Urban Mass Transit Administration determined that by every measure, low-income individuals "rely more heavily on taxicabs than do higher income individuals."(15) As another study concluded: . In addition to causing misallocation of resources, taxi regulations adversely affect the distribution of income. Low-income people spend a larger percentage of their incomes on taxis than do high- income people, and in many taxi markets, consumption o/taxi rides per capita is higher for low- http://www.taxi-library.org/denverOl.htm 7/15/2008 L-Uallengmg uenvers 1 aXIcao Monopoly - InStItute tor JustIce Page 4 of 16 income people. As a result, [these regulations) impose a disproportionate burden on low-income people. (16) As Dr. Walter Williams remarks, "The[se] laws are not discriminatory in the sense that they are aimed specifically at blacks. But they are discriminatory in the sense that they deny full opportunity for the most disadvantaged Americans, among whom blacks are disproportionately represented." (17) Taxicab Regulation In Denver As common carriers, taxicabs were placed under the regulatory authority of the newly-created Colorado Public Utilities Commission (PUC) in 1913. By 1935, the PUC controlled entry into the taxicab market and regulated the fares that taxis could charge. Every taxicab company was required to have a certificate of public convenience and necessity issued by the PUC. Each certificate specified how many taxicabs each company could operate. To obtain a certificate, an applicant must demonstrate both that adequate service is not being provided and that the existing companies cannot provide adequate service. The applicant must meet a virtually impossible legal standard by demonstrating "substantial inadequacy" of service. There are no objective criteria by which a new applicant can determine what must be done to demonstrate inadequacy of service. Even if an applicant demonstrates substantially inadequate service, existing companies can easily refute this by declaring their ability to provide additional service and asserting that the new company would duplicate service already being provided. Existing companies hire teams of lawyers to contest applications from new entrants. With such an impossible barrier to surmount, it is not surprising that no new taxicab company has been allowed to start in Denver since 1947.( 18) Meanwhile, virtually all other forms of transportation in Colorado, including luxury limousines; off-road scenic tours; charter buses; couriers; trash haulers; transporters of sand, dirt, gravel, or road surface material; freight haulers; and household goods movers do not have such barriers to entry. The taxicab market in Denver consists of three companies: Yellow Cab, Zone Taxi, and Metro Taxi. All three of these firms have origins in the 1930s. While they may be rivals in the market, they all band together to keep new taxicab companies out of Denver. In the recent hearing on Quick Pick Cabs' application, Yellow Cab and Zone Taxi were even represented before the PUC by the same lawyer. In 1951, Yellow Cab took over Rocky Mountain Transportation and the Publix Cab Company and began operations with a fleet of75 taxicabs. (19) It remained locally owned until 1976, when a partnership of Texas businessmen purchased the company. When the Texans decided to sell the company in 1979, the union took control of the troubled firm.(20) However, the change in ownership was not enough to make Yellow Cab successful. In 1983, the company was riding high with gross revenues of $17 million, (21) but by 1986, its revenues had fallen to $6.4 million with an operating loss of$2,545 and outstanding debts totaling $800,000 (of which $500,000 were past due).(22) Revenues continued to fall in 1987, dropping to $6 million while the net loss rose to $166,000.(23) As the Denver Post reported in 1987, Yellow Cab executives blamed the economy for their woes, but a veteran Yellow Cab driver blamed the company for the troubles: company committees "spend too much time smoking cigarettes, drinking coffee, and arguing. There's too much overhead and they don't get enough work done."(24) By 1988, Yellow Cab was on the auction block again, but this time with no takers. High debts and low revenues finally forced the company into receivership in May 1991, where it remains today. Metro Taxi Inc. began as the brainchild of five executives of East Coast taxicab firms; finding Denver a prime site for their innovative marketing techniques, they purchased Ritz Cab from its local owner. Ritz was founded in 1932; by 1985 (the year of its sale) it had a tiny fleet of only 32 taxicabs. However, the new owners of Metro had much bigger plans for the small firm: within a year, they had increased their http://www.taxi-Iibrary.org/denverOl.htm 7/15/2008 cnauengmg uenvef'S 1 aXlcao Monopoly - InstItute tor JustIce Page 5 or 16 taxicab fleet five-fold. Coupled with an aggressive marketing campaign, they began to capture a large share of the Denver taxicab market. (25) A taxicab company's fleet can only be expanded with the permission of the PUC; how could a newcomer like Metro accomplish this nearly impossible task? According to Yellow Cab attorney Isaac Kaiser, the company "cut a deal" on fleet size with Yellow and Zone.(26) Each company agreed not to oppose applications for more taxicab permits by Zone and Metro; as a result, Zone increased its fleet from 75 taxicabs to 150, and Metro from 32 to 150 taxicabs. (27) Yellow Cab, meanwhile, has authorization for 600 taxicabs. Tills is not the end of the story. At the same time Metro was buying out Ritz Cab, the PUC received two applications for new taxicab companies: one from Yellow Cab drivers that wanted to form a new company, and another from the owners of taxicab companies in Houston and Austin, Texas. Colorado State Senator Joe Winkler suggests that the newly-created Metro colluded with Zone and Yellow Cab to keep the new companies from obtaining a license by agreeing to raise the number of taxicabs that each could operate, thus eliminating demand for a fourth company. Although the Texans protested the expansion of service by Zone and Metro (because it would hurt their chances of proving a need for their service), the PUC ruled that only current holders of permits could protest applications, and the expansion of the fleets was approved. Meanwhile, both applications to form new taxicab companies were rejected after the three existing companies filed protests against them.(28) As a result, the Denver taxicab market today is an oligopoly, even as the three existing firms demonstrate inefficient management and poor service to low-income neighborhoods. And a potential avenue for legitimate entrepreneurial opportunity is completely and unnecessarily extinguished. The Current Controversy The Institute for Justice is representing four experienced drivers who grew frustrated with the inefficient management and increasingly onerous leasing requirements of the taxicab company. Leroy Jones is representative of the drivers wishing to start their own business. Jones drove a Yellow Cab for two years, but left after disputes with the company over its treatment of drivers. He now earns his living as a traveling salesman, but no longer has the income or the flexibility of hours he enjoyed as a successful taxicab driver. An aspiring entrepreneur, Jones has formed a taxicab company that will provide a work environment that respects drivers, encourage driver participation and ownership, and provide taxicab service to all areas of Denver. Jones has joined forces with three other entrepreneurs and experienced taxicab drivers, Ani Ebong, Rowland Nwankwo, and Girma Molalegne, to form Quick Pick Cabs, Inc. Quick Pick Cabs applied to the PUC for a certificate of public convenience and necessity in summer 1992. Yellow Cab and Zone Taxi, along with 10 other transportation companies all protested the application. As earlier described, current PUC rules give tremendous advantage to the existing companies anytime a potential competitor applies. The applicant must meet a virtually impossible legal standard by demonstrating substantial inadequacy of service. But equally insurmountable are the procedures allowing well-heeled opponents to dramatically raise the application costs through burdensome requests for information from the applicants. In typical fashion, the protesting companies served Quick Pick Cabs with enormously complex and demanding interrogatories soliciting information about everything from Quick Pick Cabs' five-year advertising plan to the names of over 100 individuals currently driving a taxicab for one of the three companies who had agreed to work for Quick Pick Cabs. On November 24, 1992, Quick Pick Cabs' application for a certificate of public convenience and necessity was summarily denied. http://www.taxi-Iibrary.org/denverOl.htm 7/15/2008 Challengmg Uenver's TaxIcab Monopoly -Institute tor Justice Page 6 of 16 The inequities and the inefficiencies of the regulated taxicab monopoly aroused even the PUC to urge reform. In June, 1992, the PUC advocated easing entry and regulation through legislation placing taxicabs under the doctrine of regulated competition. Under this less onerous doctrine, they would still be regulated for safety and insurance, but applicants would have to show only that their entry would serve the public interest. Senate Bill 9318 was recently introduced in the Colorado legislature to achieve this reform, but similar efforts in the past have been soundly defeated by lobbyists for the taxicab companies. The PUC regulatory regime that governs entry into the Denver taxicab business prevents Mr. Jones and his colleagues from pursuing their chosen profession. This de facto ban on new companies regulation bears no relation to protection of public health, safety, or welfare. All such legitimate public interests could be served by regulations far less sweeping. In addition, no rational basis exists to regulate taxicabs in a manner that unnecessarily destroys entry-level entrepreneurial opportunities, while permitting regulated entry of newcomers in other transportation businesses. As a result, the regulatory regime deprives these aspiring entrepreneurs of the opportunity, protected by the Fourteenth Amendment to the U.S. Constitution, to pursue a trade or business. Although decisions of the PUC have been litigated in state court before, this lawsuit is the first to challenge the constitutionality of the PUC-created taxicab monopoly and the regulatory regime that perpetuates it. Conclusion The personal impact of the de facto ban on new taxicab businesses on the lives of Leroy Jones, Ani Ebong, Rowland Nwankwo, and Girma Molalegne is devastating. It impairs their ability to earn a good living for themselves and for their families. It limits the opportunity to develop their considerable skills and to work for themselves, instead of others. It destroys their dream of a brighter future. These aspiring entrepreneurs realize there is no guarantee of success in a competitive economy, but it was only upon encountering this ban that they realized that they would not even have a chance to compete. Until the state's oppressive ban is removed, they will be denied one of the most basic civil rights. . . the right to earn an honest living. The Institute for Justice advances a rule of law under which individuals control their destinies as free and responsible members of society. Through strategic litigation, training, and outreach, the Institute secures greater protection for individual liberty , challenges the scope and ideology of the Regulatory Welfare State, and illustrates and extends the benefits of freedom to those whose full enjoyment of liberty is denied by government. Prepared by John E. Kramer (1) Figures from A. Webster, E. Weiner, and J. Wells, "The Role of the Taxicab in Urban Transportation," U.S. Department of Transportation, December 1974. Dollar figure converted to 1992 dollars using the Implicit Price Deflator for the second quarter of 1992 as supplied by the U.S. Department of Commerce. (2) The New York Times, December 6, 1992, p. 49. (3) Clint Bolick, Unfinished Business, Pacific Research Institute for Public Policy, 1990, Part II. (4) Slaughter-House Cases, 83 U.S. 36 (1872). http://www.taxi-library.org/denverOl.htm 7/15/2008 Challengmg Uenver's TaxIcab Monopoly - InstItute tor Justtce Page / ot 10 (5) Brown v. Barry, 710 F. Supp. 352 (D.D.C 1989). (6) Gorman Gilbert and Robert E. Samuels, The Taxicab: An Urban Transportation Survivor, The University of North Carolina Press, 1982, p. 149. (7) Mark W. Frankena and Paul A. Pautler, An Economic Analysis of Taxicab Regulation, Federal Trade Commission Bureau of Economics Staff Report, May 1984, p. 75. (8) Id. at 79. (9) Id. at 76-77. In fact, New York first attempted to limit the number of taxicabs in 1932 "under the sponsorship of Mayor Jimmy Walker, but when Walker was forced to resign when it was discovered that he had been bribed by one of the taxi companies, the attempt failed." Gilbert and Samuels, p. 70. (10) Ross D. Eckert, "The Los Angeles Taxi Monopoly: An Economic Inquiry," 43 SouthemCalifornia Law Review, 1970, pp. 422-424; also E.W. Kitch, M. Isaacson and D. Kasper, "The Regulation of Taxicabs in Chicago," 14 Journal of Law and Economics, October 1971, pp. 285-350. (11) Frankena and Pautler, p. 16, citing study by Shaw, et aI., Taxicab Regulation in U.S. Cities, U.S. Department of Transportation, Report No. UMTA-NC-11-0011, October 1983, pp. 29-32. (12) Id. at 65, 155. (13) See Frankena and Pautler; Ross D. Eckert; A. Webster, et aI.; David J. Williams, "Information and Price Determination in Taxi Markets," Quarterly Review of Economics and Business 20(4), Winter 1980, pp. 36-43; and testimony of FTC economists William C. Macleod, Richard O. Zerbe, and John M. Peterson before Chicago and Seattle City Councils, 1984. (14) Clint Bolick, Unfinished Business, Pacific Research Institute for Public Policy, 1990, pp. 74-75, and Clint Bolick, Changing Course, Civil Rights at the Crossroads, Transaction, Inc., 1988, pp. 94-95. (15) Allred, Saltzman, and Rosenbloom, "Factors Affecting the Use of Taxicabs by Lower Income Groups," Transportation Research Record Number 688, 1978, p. 23. (16) Frankena and Pautler, p. 7. (17) Walter Williams, The State Against Blacks, McGraw Hill Book Company, 1982, p. 25. (18) Joe Winkler, Denver Post, September 13, 1985, p. 25A. (19) Denver Post, April 17, 1984, p. 1D. (20) Susan Goldfarb, UPI Business Profile, February 12, 1982. (21) Denver Post, April 17, 1984,p.1D. (22) Denver Post, January 27, 1988, p. IE. (23) Denver Post (citing data from the PUC), June 25, 1988, p. 1D. http://www.taxi-library.org/denver01.htm 7/15/2008 Lnauengmg uenvers I macaD MonopOlY - InstItute ror JustIce t'age lS 01 1 () (24) Denver Post, December 21, 1987, p. lA. (25) Denver Post, April 10, 1985, p. 4A; Denver Post, March 30, 1987, p. 1 C. (26) Denver Post, April 1, 1987, p. 2C. (27) Denver Post, September 13, 1985, p. 25A. (28) Senator Joe Winkler (R-Castle Rock), Denver Post, September 13, 1985, p. 25A. Institute for Justice Hails Taxicab Victory Economic Freedom for Freedom Cabs Achieved PRESS RELEASE: April 29, 1994 CONTACT: John Kramer (202) 457-4240 Washington, D.C. -- The Colorado legislature today gave a green light to the dreams of four aspiring entrepreneurs who want to start their own cab company. Today's passage of Senate Bill 113 breaks up Denver's taxicab monopoly and opens the door to new cab companies in the Mile High City for the first time since 1947. Leroy Jones, Ani Ebong, Rowland Nwankwo and Girma Molalegne first challenged Denver's taxicab monopoly in January 1993 when they joined with the Washington, D.C.-based Institute for Justice to file a lawsuit against the Colorado Public Utilities Commission, which regulates taxis in the state. That lawsuit, and the resulting media coverage, created a statewide call for the replacement of Colorado's regulated taxi monopoly with a system of regulated competition. Jones said he would like to be the first to apply for a permit to start his own cab company: "My partners and I are ready to launch Freedom Cabs as soon as the legislation becomes law. Unlike the monopoly we're replacing, all Freedom Cabs wants is the chance to compete by providing the best service. That's what America should be all about." "This law marks the end of business as usual in Denver's taxicab industry," said Chip Mellor, Institute for Justice president and general counsel, who represents Jones and his partners. "The dark days of monopoly are over. This law creates a brighter future for Colorado entrepreneurs and consumers, and a ray of hope for those throughout America whose economic liberty is denied." In addition to its legal challenge, the Institute for Justice spearheaded the legislation's passage overcoming fierce opposition from organized labor, the trucking industry and many of Colorado's most powerful lobbyists. Colorado State Senator Bill Owens, who sponsored the senate bill, remarked, "The General Assembly today has sent a strong message to the Colorado Public Utilities Commission that the taxi industry should be infused with entrepreneurship and accountability to consumers. " NOTE: The Institute for Justice can arrange interviews to facilitate your coverage. Call John Kramer at (202) 457-4240. http://www.taxi-library.org/denverOl.htm 7/15/2008 L-nal1engmg uenver s 1 roucao lVlOnopOlY - Instltute lOr JustIce Page') ot 16 Double Victories for Institute for Justice Taxi Markets Opened in Denver, Cincinnati PRESS RELEASE: January 26, 1995 CONTACT: John Kramer (202) 457-4240 Washington, D.C. -- The Washington, D.C.-based Institute for Justice today announced two victories for economic liberty, the right to earn an honest living free from excessive government regulation. The first victory came in Denver with the end of the city's 50-year-old taxi monopoly that granted licenses to three companies and excluded all others. As a result of litigation filed by the Institute for Justice, Freedom Cabs was today granted 50 new cab permits for this year and 50 more for next year by the Colorado Public Utilities Commission. Nearly 90 percent of cities with population of 50,000 or greater restrict entry into taxi markets. "The founders of Freedom Cabs embody the courage it takes to be a successful entrepreneur in America today," said Chip Mellor, president of the Institute for Justice. "In the face of an overwhelming bureaucracy that was stacked against them and rich vested interests, they showed character, vision and an unfailing self-belief that someday their company, Freedom Cabs, would be a reality. Because of their hard work and fortitude, Freedom Cabs will for years be a shining example for all would-be entrepreneurs that good people can fight city hall and win." The second victory came in Cincinnati where yesterday the city council removed its cap on the number of cabs it would allow in the city and said existing taxi companies couldn't block new entrants by stating the new companies would hurt their business. Based on their successful Denver campaign, Leroy Jones, a co- founder of Freedom Cabs and Institute for Justice President Chip Mellor testified before the Cincinnati city council at the invitation of Mayor Roxanne Qualls. Jones and Mellor urged the council to create inner-city job opportunities and improve taxi service by opening up the market to new entrepreneurs. "Despite today's important victories, pointless government regulations still deny countless qualified individuals nationwide the right to earn a living in occupations ideally suited to entry-level entrepreneurs," Mellor said. "That's why the Institute for Justice will continue working with those outside the economic mainstream to open up taxi markets as well as other entry level occupations." The Institute for Justice advances a rule of law under which individuals control their destinies as free and responsible members of society. Through strategic litigation, training, and outreach, the Institute secures greater protection for individual liberty, challenges the scope and ideology of the Regulatory Welfare State, and illustrates and extends the benefits of freedom to those whose full enjoyment of liberty is denied by government. The Institute was founded in September 1991 by Mellor and Clint Bolick. NOTE: The Institute for Justice can arrange interviews to facilitate your coverage. Call John Kramer at (202) 457-4240. Press Quotes Institute for Justice In the Spotlight http://www.taxi-library.org/denverOl.htm 7/15/2008 vUClW::uglllg ut:IlVt:r:s 1 aXICaO lVlOnopolY - Institute tor JustIce Page 10 of 16 Economic Liberty "The Institute for Justice has helped break down oligopolies in Denver, Cincinnati and Indianapolis; [11 President Chip] Mellor and [Communications Director John] Kramer have now drafted legislation to do the same thing in Boston. [T]heir proposal received one of the Pioneer Institute's much-coveted Better Government A wards. Except for the few who've been enriched by the system, anticompetitive taxi regulations are a disaster." -- Jeff Jacoby, The Boston Globe, December 5, 1995 "Broadening opportunities, not only for blacks but for all Americans, requires efforts to repeal laws written in the interest of incumbents that have the effect of keeping people out who can be generally described as outsiders, discriminated-against and lacking political clout. The Washington-based Institute for Justice is doing just that. After testimony by the institute's director, Chip Mellor, Cincinnati removed its cap on the number of cabs allowed to operate in the city. . . .Last year, the Institute for Justice forced the Colorado Public Utility Commission to relax taxi entry conditions in Denver, and it also assisted in bringing suit to lift Houston's ban on jitney services." -- Walter Williams, Cincinnati Enquirer,1995 "With the able assistance of the Washington, D.C.-based Institute for Justice, which litigates and lobbies on behalf of economic liberty nationwide, Freedom Cabs had fought a generations-old law that essentially kept new cab operators, notably minorities, off the streets." -- Colorado Springs Gazette Telegraph, August 2, 1995 "To win their battle, Jones, Ebong and Molalegne fIrst enlisted attorneys from the Washington-based Institute for Justice who fIled a lawsuit challenging Denver's taxicab monopoly. The institute took the case as part of its effort to restore 'economic liberty,' the right of all Americans 'to pursue a business or profession free from arbitrary or excessive government regulation. '" -- Rocky Mountain News, August 2, 1995 "Leroy Jones may be Colorado's strongest advocate of deregulation, entrepreneurial ambition and a wide- open free market." -- Ann Imse, Rocky Mountain News, 1995 "Broadening opportunities, not only for blacks but for all Americans, requires efforts to repeal laws written in the interest of incumbents that have the effect of keeping people out who can be generally described as outsiders, discriminated-against and lacking political clout. The Washington-based Institute http://www.taxi-library.org/denverOl.htm 7/15/2008 Lnauengmg uenver's I aXIcab Monopoly - InstItute tor JustIce Page 11 of 16 for Justice is doing just that. After testimony by the institute's director, Chip Mellor, Cincinnati removed its cap on the number of cabs allowed to operate in the city. . . .Last year, the Institute for Justice forced the Colorado Public Utility Commission to relax taxi entry conditions in Denver, and it also assisted in bringing suit to lift Houston's ban on jitney services." -- Walter Williams, Cincinnati Enquirer, 1995 "The Institute for Justice [is comprised of] libertarian lawyers seeking judicial rulings to re-establish economic liberty as a fundamental civil right." -- George F. Will, Washington Post, February 5, 1995 "[Institute President Chip] Mellor argues, 'all Americans have a basic civil right to pursue a business or profession free of arbitrary and oppressive government regulation.' He's right." -- Linda Cagnetti, Cincinnati Enquirer, January 18, 1995 "On November 9, 1993, five small minority-owned contracting firms and three tenant management groups, with the help of the Washington-based Institute for Justice, filed a lawsuit in the U.S. District Court for the District of Columbia with the goal of eliminating one of the last remnants of institutional racism: the Davis-Bacon Act." -- Portland Observer, October 5, 1994 "In recent times, many seeking to advance the cause of civil rights have attempted to do so by passing legislation. The Institute for Justice, a Washington, D.C.-based public interest group, is pioneering a new civil rights strategy, using the opposite track. It is seeking to get laws that infringe upon civil rights off the books. The particular focus is novel--they are challenging legislation that interferes with the right of individuals to earn a living free from arbitrary and excessive regulation. So far, they have enjoyed surprising success. Perhaps that is why they now take on their toughest opponent to date--the Davis- Bacon Act." -- Destiny Magazine, August 1994 "The Institute's lawyers have already made progress, with several victories under their belts, including successful challenges to regulation of the Denver taxi cab industry and District of Columbia cosmetology profession. With nearly 1,000 occupations regulated by the states, however, the Institute has a long way to go." -- Destiny Magazine, August 1994 http://www.taxi-Iibrary.org/denverOl.htm 7/15/2008 ~U~U~uoU'6 L-'~U' '" ~ .1 U"'l~alJ IV.lVUVPUIY - lU::SLllULt:: lur J USllce Page 12 of 16 "[The Institute's lawsuit brought on behalf of four Denver would-be entrepreneurs] got so much press that Inc. magazine did a piece on it under the heading of 'Regulated Monopolies or why four Denver cabbies can't go into business for themselves. '" -- Black Car News, June 1994 "The barriers to entry into the taxicab industry are in the process of being challenged and broken down all over the country. Just recently, the Institute for Justice, a Washington, D.C.-based advocacy group, challenged the restrictive taxicab market in Denver, Colorado. As a result of the challenge the Institute engaged in on behalf of their clients in Denver, Colorado Governor Roy Romer recently signed legislation that broke up the taxicab monopoly in that city." -- Black Car News, June 1994 "[The four would-be entrepreneurs] first challenged Denver's taxicab monopoly in January 1993 when they joined with the Washington, D.C.-based Institute for Justice to file a lawsuit against the Colorado Public Utilities Commission, which regulates taxis in the state. That lawsuit, and the resulting media coverage, created a statewide call for the replacement of Colorado's regulated taxi monopoly with a system of regulated competition. . . . This particular case got so much press that Inc. magazine did a piece on it under the heading of "Regulated Monopolies or why four Denver cabbies can't go into business for themselves. " -- Black Car News, June 1994 "It is implicitly accepted--especially among readers of this magazine--that among the most guaranteed of rights in America is the individual's right to attempt to earn a living in his or her chosen field of endeavor. In fact, claims Clint Bolick, director of litigation for the Institute for Justice, a public-interest law firm based in Washington, D.C., that litigates cases relating to economic liberty, "of all the rights Americans think we have, there's no question that economic liberty is the least protected." -- Inc., May 1994 "Last year, however, a suit was filed on behalf of aspiring taxicab entrepreneurs by the Washington-based Institute for Justice against the Colorado Public Utilities Commission, the licensing agent in the state. The lawsuit led to legislation that could create what the institute calls 'regulated competition.'" -- Detroit News, May 10, 1994 "Economists have long produced learned papers on why. . .regulations aimed not at safety or health but at http://www.taxi-library.org/denverOl.htm 7/15/2008 Lhallengmg uenver's 1 aXlCao MonopOlY - Instltute ror Justlce rage u or 1 () preserving someone's economic privilege, can lead to higher prices and worse service. Last year the Washington-based Institute for Justice, an advocate for economic liberty, decided to go beyond theorizing and filed suit against the Colorado Public Utilities Commission. The Institute and its clients lost in court, which ruled that the state had the power to create and enforce a monopoly. But they won in the court of public opinion. On Friday, the Colorado legislature fmally passed a law opening the door to taxi competition for the first time since 1947." -- San Francisco Chronicle, May 2, 1994 "Meet the new civil rights activists. Their belief is that the right to earn a living free from excessive regulation is guaranteed by the Constitution. Their lawyer is [the Institute for Justice's Vice President] Clint Bolick." -- Wall Street Journal, April 20, 1994 "The Institute for Justice is wedded to the idea that one of the most vital civil rights is economic liberty." -- San Francisco Examiner, January 31, 1994 "The institute went to bat for Uqdah [its client] not just in court, but, with unabashed verve, in the media. Uqdah's business was featured in the Washington Post, the Wall Street Journal and ABC's '20/20.' The board [which opposed Uqdah's efforts] wisely chose to back down." -- San Francisco Examiner, January 31, 1994 "New ideas [in civil rights] are desperately called for. President Clinton might find some by looking just six blocks from his house, at a small, nonprofit law center founded in 1991 called the Institute for Justice. The Institute for Justice is wedded to the idea that one of the most vital civil rights is economic liberty." -- San Francisco Daily Recorder, January 24, 1994 "The Institute for Justice is at it again, using the tactics of the left to pursue conservative goals. . . Until the IF J came along, civil rights litigation was largely the province of the left. Conservatives had been hesitant to pursue social policy through the court. But the IF J not only was willing to use legal action to further its political goals, Mr. Mellor and Mr. Bolick stole the Left's playbook." -- Washington Times, November 22, 1993 "If successful, the Institute for Justice's lawsuit would effectively toss out the 62-year-old law that has http://www.taxi-library.org/denverOl.htm 7/15/2008 vuau,",uoJ..llo .L/l;;U Vl;;J. ~ J. aAl\,;i1U IVIUUUl1U1Y - lH:SllLULI:: lur J U~Lll:t:: t'age 14 or lb forced contractors working on federal projects worth more than $2,000 to pay 'prevailing' wages, which usually are very close--or often the same--as union wages." -- Kevin Harden, Daily Journal of Commerce, November 16, 1993 "The Institute for Justice has made a specialty of attacking other closed "good old boy" arrangements that have kept minorities jobless." -- John Hall, Media General News Service, November 14, 1993 "Mrs. Brazier and Mr. Cruz have joined a suit, filed in conjunction with the Institute for Justice, that would declare Davis-Bacon unconstitutional. Their case gives civil rights leaders a fmal chance to stop nuzzling the union bosses and show a little guts." -- Tony Snow, Gannett News Service, December 13, 1993 "[Filing a lawsuit to break up Denver's taxicab monopoly and the resulting CBS Evening News coverage] was a legal-political coup beyond the dreams of most litigants, and it was a measure of the clout ofa tiny group of lawyers who in late 1991 set up the non-profit Institute for Justice in the Nation's Capitol. Wags have taken to calling the increasingly visible institute 'bleeding-heart conservatives'." -- Gail Diane Cox, The National Law Journal, July 26, 1993 "So give a cheer and a wink for Clint Bolick and Chip Mellor, legal gunslingers with a taste for entrepreneurs. We also hope that Bolick and Mellor have founded a growth industry as economic advocates. " -- Thomas G. Donlan, Barron's National Business & Financial Weekly, July 12, 1993 "The implications [of the Institute for Justice's lawsuit to break up Denver's taxicab monopoly] reach far beyond this city. According to a study by the U.S. Department of Transportation, regulations on taxicab operations across the country cost passengers about $800 million every year and, says the study, if those regulations were lifted, there would be nearly 40,000 new jobs for cabbies." -- Bob Faw, "CBS Evening News", July 2, 1993 "Wednesday night devotions at Denver's Mount Zion Baptist Church shows the issue [of taxicab deregulation] isn't just property rights, it's about people. The ladies of the mission service know that when prayers end, it won't do much good to call a taxi." http://www.taxi-library.orgldenverOl.htm 7/15/2008 Lhallengmg Uenver's TaXIcab Monopoly. instItute tor JustIce page Dot lb .- Bob Faw, "CBS Evening News", July 2, 1993 "[The story of the Institute for Justice's clients in Denver] is still a story of the American Dream: thus far a dream deferred; an opportunity denied." -- Bob Faw, "CBS Evening News", July 2, 1993 "[T]he Washington-based Institute for Justice's goals are to crack open the doors for poor entrepreneurs whose efforts are being blocked by excessive government regulation." -- Chuck Colson, Break Point, July 1993 "Institute for Justice [is] a public interest group fighting for something our cities desperately need more of: economic opportunity at the grassroots." -- Scripps Howard News Service, April 26, 1993 "The Quick Pick Four won fame and martyrdom because their cause arises from that little-visited place where the interests of free market conservatives and civil rights activists meet. To conservative advocates of free ( or freer) markets, the Four embody the capitalist quest for truth, justice and so forth. Yet, to civil rights advocates they embody the age-old story of blacks versus the power establishment." -- David Lewis, Rocky Mountain News, February 21, 1993 "Institute for Justice, a public interest law firm with a concern for economic justice, the Institute has chosen to make Denver's cab monopoly a test case. It is an important test case, not just for economic equity but also for citizen's dignity." -- Robert Maynard (Syndicated Columnist), February 19, 1993 "Lawsuits generally should be discouraged, but consumers ought to cheer a case filed recently [by the Institute for Justice] in federal court in Denver over the imbecilic restrictions Colorado imposes on the taxicab business." -- The Denver Post, February 7, 1993 "[T]he institute seeks enlightened application of judicial rulings that regulation must be reasonably http://www.taxi-library.org/denverOl.htm 7/15/2008 ~Uam;l1g111g UI;;IlVt:r S 1 aXICaO IVlOnopolY - InStltute lOr JustIce Page 16 of 16 related to the legitimate promotion of the public welfare. The institute wants to narrow judicial deference toward government regulation that is anti-competitive both in intent and effect." -- George F. Will (Syndicated Columnist), February 4, 1993 "The institute has already won cases in which courts have agreed with it that individuals have a civil right to earn a living free from excessive regulation. Many of its clients are low-income minorities because many economic regulations were passed during the Jim Crow era, in part to block minority entry into various occupations." -- The Wall Street Journal, February 1, 1993 "The Washington-based Institute for Justice has made a crusade out of challenging discriminatory laws that prevent people from pursuing their trade or occupation." -- The Wall Street Journal, December 23, 1992 Back to the http://www.taxi-Iibrary.org/denverOl.htm 7/15/2008 pnmer InenalY verSIOn 01 an anlCle trom IJ .org Page I of9 Private companies cannot use government power to outlaw competition, yet this is precisely what the established taxi cartel in Minneapolis is trying to do. In October 2006, the city removed an artificial government-imposed cap on the number of taxis legally permitted to operate within city limits. The new ordinance increases the number of taxicabs on the street each year until 2011, when the cap will be lifted entirely, opening the door to all taxi businesses that are fit, willing and able to serve the public. Predictably, the city's taxi cartel is now suing to keep out newcomers by attempting to maintain its stranglehold on the industry. The cartel's action is the last gasp of a dinosaur that free-market reforms have made extinct. The city was right to open the taxi market because consumers, not a self-interested cartel, should decide how many taxicabs operate in Minneapolis. Allowing entrepreneurs to enter the taxi market by meeting basic requirements, such as having a well-maintained, inspected vehicle and carrying insurance, will benefit consumers and entrepreneurs alike. The cartel's baseless lawsuit threatens consumers like Blanca Prescott-a blind, single mother of three-while violating the civil rights of entrepreneurs like taxicab owner Luis Paucar. Simply put, Luis has the right to earn an honest living in the occupation of his choice free from government- enforced barriers to entry erected to protect existing companies, and consumers like Blanca should be free to choose who provides their transportation services. That is why on May 1, 2007, the Institute for Justice Minnesota Chapter (IJ-MN) filed legal papers to intervene in the suit brought by the taxi cartel in order to defend the free-market reforms on behalf of Luis Paucar and Blanca Prescott. The Institute for Justice Minnesota Chapter fights for the rights of entrepreneurs to earn an honest living free from arbitrary discrimination and consumers to choose the services that best meet their needs. Already, IJ-MN has scored victories for economic liberty on behalf of African-style hairbraiders, family wineries and sign-hangers. In 2006, the city of Minneapolis opened its taxi market to competition, freeing entrepreneurs who for decades had been shut out by the city's government-imposed taxi cartel-and giving consumers more options than ever. Immediately after the reforms became official in 2007, the established taxicab companies who benefited from the cartel filed suit in a desperate attempt to maintain their stranglehold on the city's taxi market. In the recently filed lawsuit, the cartel absurdly contends that freedom for consumers and entrepreneurs is unconstitutional. http://ij .org/include/media _ functions.asp?path=/economic _liberty/mn _ taxi/backgrounder.h... 7/15/2008 1"..L.u..I.""".1. .I...&..I.~.I..u,.".l.J Y"".I.~.I.V1.J. V.l. t.U.J. u..I....J.~.I."" .I...I.VJ..1.1. .I.J.V.l.o ri:l!:;c'(" Vi '7 For decades, the entrenched cartel benefited from a cap on the number of vehicles permitted to operate a taxi within city limits. But that doesn't mean their privileged position was unchallenged. As far back as 1984, efforts have been made to end the anticompetitive and collusive market for transportation services in Minneapolis. Those efforts included a lawsuit by the Federal Trade Commission and successive legislative pushes for reform during the 1990s. Yet as late as October 2006, the city was limited to 343 regular taxis and the established procedure for increasing that number and allowing new entrepreneurs into the market lay dormant and unenforced. Compared to cities like Boston and St. Louis that have approximately one cab for every 300 residents, the Minneapolis market was closer to an astonishingly low one cab per 1,000 residents. Finally, on October 12, 2006, the city broke the cartel's grip and acted to correct this injustice: The mayor signed into law reforms to the city's taxi ordinance removing the government-imposed cap and opening the market to entrepreneurs that are fit, willing and able to serve the public. The reforms were finalized on March 30, 2007. In response to the passage of reform, the cartel filed suit against the city. Simply put, the free-market reforms adopted by the city open a market that had been closed by anti- competitive regulation. The reforms restore freedom of choice for consumers, and they open the door of economic opportunity to entrepreneurs and taxi drivers. They certainly do not deprive anyone of the right to obtain a taxi license or to operate a taxi company. But, ironically, that's just what the cartel's lawsuit attempts to do. On May 1, 2007, the Institute for Justice Minnesota Chapter filed a motion to intervene in the lawsuit brought by the established taxi cartel. On behalf of taxicab entrepreneur Luis Paucar and consumer Blanca Prescott, IJ-MN is intervening in the lawsuit defend the city's free market reforms against the cartel's unfounded attack. Luis Paucar embodies the American Dream. He came to the United States with a vision of becoming a successful entrepreneur. Through hard work and dedication, he turned that dream into a reality. Upon his arrival from Ecuador, he secured his status as a permanent resident and put his entrepreneurial skills to work. While succeeding in business as a grocery store owner in south Minneapolis, he saw an opportunity to provide affordable transportation to individuals often ignored by the existing taxicab cartel. In particular, he sought to fill an important niche by offering dispatchers as well as drivers that are fluent in Spanish. In October 2003, Luis created A New Star Limousine and Taxi Service, Inc. He began the company from a basement office near his corner grocery. As late as the fall of 2005, no licensed taxi service company in Minneapolis offered both Spanish- speaking dispatchers and drivers. Nonetheless, Luis was prohibited by Minneapolis' antiquated taxi ordinance from legally operating his taxi service within city limits. Luis tried to find a way to operate A New Star legally in Minneapolis by obtaining taxi licenses from the cities of St. Paul and Richfield and limousine permits from the state of Minnesota. But this cluster of licenses made it absurdly difficult for Luis to operate his business in Minneapolis. For example, under the old Minneapolis Taxi Code, taxis licensed outside the city were permitted to drop off passengers inside city limits, but they could not pick up those passengers or solicit any other business in Minneapolis. Consequently, A New Star's St. Paul and Richfield taxis were forced to "deadhead" back to their staging areas after dropping off their passengers, meaning they could not pick up passengers on their return routes. Luis's drivers tried to pick up taxi passengers by offering a limousine service, but the premium fares were often too costly for passengers. http://ij .org/include/media _ functions.asp?path=/economic _liberty/mn _ taxi/backgrounder.h... 7/15/2008 pnmer Jnenmy verSIOn OJ an aITICle Horn IJ .org rage -' OJ ';I Additionally, the city restricted Luis's limousine service to advance-scheduled passenger pickups. Any attempt at coordinating A New Star's taxi and limousine services was impractical for all but the most regular customers. And if a limousine missed a scheduled passenger-pick up, it could not respond to "street hails" much less "troll" for fares along city streets. When attempting to coordinate taxi and limousine services, Luis regularly risked the significant economic losses associated with both taxis and limousines "deadheading" empty back to a staging point. Ultimately, the mix of licenses and vehicles operated by Luis, and the hope of coordinating the services he could legally offer, was a recipe for confusion and penalties under the discriminatory taxi code. For four years, Luis tried desperately to obtain taxi vehicle licenses for A New Star Taxi from the city of Minneapolis and was continually frustrated by seemingly insurmountable regulatory hurdles. Unlike the established cartel, Luis has never asked for special favors. He merely wants the opportunity to peacefully run his business while honestly competing for customers. Until the city opened the market, however, Luis was unable to legally offer his much needed services. Blanca Prescott has suffered through horrible, firsthand experiences of life in a city plagued with a taxicab cartel. Blanca, a young, single mother of three who went completely blind due to illness at age 20, relies on taxi service for transportation around Minneapolis. Her family cannot afford a car and her neighborhood is too hazardous, particularly given her condition, for her to feel safe using the city's bus service. On June 7, 2005, hours before her daughter's graduation from Head Start, she telephoned Luis Paucar's company, A New Star, and scheduled a multi-stop trip, involving travel to the local K-Mart and then on to her daughter's ceremony. A New Star's driver waited in the parking lot for his blind passenger. But while the driver was assisting Blanca back into his car for the second leg of the trip, he was cited for operating a taxi in Minneapolis without a government-approved license. The Minneapolis police officer ordered Blanca out of the car, had the vehicle towed and left her in the parking lot to fend for herself. It was 5:30 p.m. and her daughter's graduation was at 6:30 p.m. No other taxis were in the vicinity, and Blanca eventually arrived late to her daughter's graduation. Luis Paucar and his driver spent the next six months in court battling the citation. Blanca discovered A New Star in late 2003 after terrible service from the existing Minneapolis taxicab cartel, including Red & White Taxi, Blue & White Taxi, and Rainbow Taxi. Wait times varied wildly from 15 minutes to almost two hours. Sometimes taxis never came or were dispatched to the wrong address. Drivers refused to walk Blanca to her door and even dropped her off two or more houses down the street from her home with no help. Blanca encountered rude service and believes she was overcharged by drivers taking unnecessarily long routes. She believes that Rainbow's poor service was because they took her business for granted, knowing she had few options. By contrast, her service with A New Star has been outstanding. The drivers walk her from her door, help her in the car, walk her to her destination and speak in Spanish, which is her preference. The dispatcher always calls if the car will be late and her wait time is usually between five and 10 minutes. The taxi reforms enacted on October 12, 2006, and amended in minor respects on March 30, 2007, make it possible for Luis Paucar to do business in Minneapolis and for Blanca Prescott to freely use his http://ij .org/include/media _ functions.asp?path=/economic _liberty/mn _ taxilbackgrounder.h... 7/15/2008 pnnter 1flenaJY verSIOn 01 an amCle rrom IJ .org rage... or ';J services. The reforms gradually eliminate the license cap by 2011 by authorizing the issuance of 45 new licenses nearly semi-annually from 2006 through 2010 and lift the cap thereafter. They replace the old law's subjective "public-convenience-and-necessity" test-which favored existing companies- with an objective "fit, willing and able" standard for determining the issuance of new taxi vehicle licenses. Also, they allow entrepreneurs to apply for and receive taxi vehicle licenses together with an application for a service company license without being required first to join an existing taxi company, thus ending the gatekeeper power of existing companies. The passage of taxi reform was supported by an abundance of evidence. At numerous public hearings conducted between May and October 2006, the City Council entertained and considered evidence and testimony from members of the public as well as experts in the fields of transportation law, policy and economics. Professor Jeremiah E. Fruin, PhD., of the University of Minnesota, Center for Transportation Studies, submitted a written personal statement and presented live testimony based on peer-reviewed studies of the taxi industry as well as the testimony and detailed studies that underpinned the 1995 reforms. In summary, Professor Fruin testified: . The city's restriction on the number of taxi vehicle licenses through its cap on the number of licenses created a cartel that did not serve any legitimate public purpose. . There was no reason to believe the city of Minneapolis was an exception to the general rule that any legal restriction on the number of taxicabs directly causes artificially high rates, less service and lower quality taxi service than would otherwise exist under conditions of free entry regulated only by reasonable public health and safety requirements. . The consensus of economists, as well as experts in the field of transportation law and economics, showed that increasing the number of taxicab licenses results in lower taxi rates, more taxi service, more innovative taxi service, higher quality taxi service and more consumer demand for taxi service when combined with the enforcement of reasonable public health and safety regulations. . The city's restriction on the number of taxi vehicle licenses was the critical mechanism that produces low taxi driver compensation because it tipped the balance in favor of the already- licensed taxicab owner against the taxi driver, making taxi drivers "modern urban sharecroppers." When taxi reform was finalized on March 30, 2007, everything changed for Luis. A New Star was awarded 12 taxicab vehicle licenses. As a result, Luis's existing taxi and limousine service is free to expand neighborhood taxi service throughout Minneapolis. Luis made significant investments in infrastructure, vehicles and personnel in anticipation of applying for these taxicab vehicle licenses. After nearly twenty-five years of struggle, entrepreneurs like Luis Paucar of A New Star Taxi are now free to access the marketplace based solely on their fitness, willingness and ability to furnish basic transportation services to the public. Further, consumers like Blanca Prescott are finally free to choose among taxi companies who now must engage in genuine competition to earn their business. Luis has finally realized the opportunity that America promises and Blanca feels liberated by the sense of independence made possible by greater freedom of choice. The threat posed to A New Star and Blanca from the cab cartel's lawsuit is both economic and deeply personal. http://ij .org/include/media _ functions.asp?path=/economic _liberty/mn _ taxi/backgrounder.h... 7/15/2008 pnnter rnenaly verSIOn or an anlCle rrom IJ.org rage ;) or ';J The current battle is not the first over the Minneapolis taxi market-nor is the first time the taxi cartel has sued to maintain its government-granted and unconstitutional privilege. For almost 25 years, the Minneapolis Taxi Code has been a tug-of-war between those who want a legalized cartel and those who believe in the entrepreneur's right to earn an honest living and the consumer's freedom to choose. Before current reforms, the Minneapolis Taxi Code was the tattered remnant of nearly a quarter century of legislative and legal wrangling that shows the power of the entrenched taxi cartel. In 1984, the Federal Trade Commission filed suit against the city of Minneapolis for the anticompetitive and collusive nature of its taxicab-licensing ordinance, which was alleged to violate antitrust laws because of the cap it placed on the number of taxicab licenses. The lawsuit alleged that the city of Minneapolis engaged in illegal conduct that had several undesirable effects: . Eliminating and preventing competition between competitors and potential competitors in the operation of taxicabs in Minneapolis . Strengthening the market power of authorized taxicab companies operating in the Minneapolis taxicab market . Raising, fixing, stabilizing, maintaining, or otherwise interfering or tampering with the rates charged for taxicab service in and from Minneapolis . Depriving interstate and intrastate consumers of taxicab services in and from Minneapolis of the benefits of free and open competition in taxicab services The FTC withdrew its lawsuit only after the city reformed its taxi ordinance in 1985 to raise the number of taxicab licenses from 248 to 323 by February 1, 1986, and to include flexible licensing regulations, which would result in as many as "an additional 25 licenses every year thereafter." In connection with the enactment of these reforms, the FTC observed "[t]hese changes offer the prospect of preventing the anticompetitive conduct alleged in the complaint by strongly facilitating new entry into the Minneapolis taxicab market." The 1985 reform ordinance was almost immediately challenged in state court by the Minneapolis Taxicab Owners Association, the apparent forbearers of today's cartel. The city did not vigorously contest the lawsuit, and did not oppose the continuation of a temporary restraining order barring the implementation of the 1985 reform ordinance for nearly three years. Then, in March 1988, the city of Minneapolis repealed the 1985 reform ordinance, reinstated a taxicab license cap, and further imposed the limitation that no additional licenses could be issued unless "required" for the "public convenience and necessity." The minutes from the related March 23, 1988, committee meeting did not point to any genuine public purpose for its reinstatement of the license cap; instead, the ordinance was described as being "in the nature of a settlement of a lawsuit brought by the taxicab industry." On May 11, 1988, the Minneapolis Taxicab Owners Association's lawsuit was quietly dismissed with prejudice. Importantly, there was no consent judgment and the dismissal order does not mention any settlement agreement. The industry's legal threats appear to have worked-and to have carried weight years later. In 1993, when Minneapolis' city council was debating whether to amend add a provision for the issuance of temporary licenses without a public convenience and necessity hearing, reform efforts were strangled http://ij.org/include/media_ functions.asp?path=/economic _liberty Imn _ taxilbackgrounder.h... 7/15/2008 l-'lUlLl;;;l Ul\;.<UUl)' Vvl;:>IVll VI all atU\;.<I\;.< BVIB IJ.VIO .1. U5'"" V V.L ./ by another apparent legal threat from the taxi industry. A few years later, the city made another attempt at free-market reforms. During the spring and summer of 1995, the city of Minneapolis put together a Taxi Task Force. The Taxi Committee held hearings, considered several policy papers and wrote a report. City Council eventually passed amendments to the Minneapolis Taxi Code that modestly liberalized the Code by making it easier for new licenses to be issued and mandating hearings every two years to determine if more taxi licenses would be needed. Additionally, 70 new licenses were issued and a lottery was established for the issuance of 35 new licenses as well as the issuance of forfeited and temporary licenses. But even these modest reforms were too much for the taxi cartel. It filed suit in an effort to reverse them. The case was dismissed by both a trial and appellate court. Despite the pro-free-market reforms passed in 1995, and made effective in 1996, the city still capped the current number of renewable "regular" taxi vehicle licenses at 343. And while the Code required the City Council to consider increasing the number of authorized licenses following a "public convenience and necessity hearing" at least every two years, the city did not conduct such a hearing for more than 10 years. In essence, existing taxi companies continued to act as the gatekeepers to the Minneapolis taxi market-until the 2006 reforms now subject to the taxi cartel's current bogus legal challenge. Luis Paucar has the right to work for a living in the occupation of his choice free from government- imposed barriers to entry erected to protect existing companies. This right to economic liberty is one of the essential personal freedoms the 14th Amendment was enacted to secure. Against this constitutional right to economic liberty, the taxicab cartel is advancing the novel theory that its "rights" have been violated by free market reforms. But there is no constitutional right to be protected from open market competition. Neither the cartel's right to do business nor its right to use an existing taxi license have been taken. In short, the taxicab cartel isn't being deprived of Iicenses- it's trying to deprive others of such licenses through its absurd lawsuit. The cartel simply doesn't want to face new competition in what had been a comfortably non- competitive market. And the companies who already have licenses complain that they can no longer reap the rewards of a closed market by selling licenses for steep prices-as high as $24,000-propped up only by the government-imposed cap. But those special privileges-which came at the cost of freedom for consumers and entrepreneurs-amount to nothing more than corporate welfare. And there is no constitutional right to corporate welfare. The Institute for Justice Minnesota Chapter seeks to restore constitutional protection for the right to economic liberty-the right to earn an honest living in the occupation of one's choice free from excessive government regulation. Minneapolis Taxi Owners Coalition, Inc., v. City of Minneapolis, is the fifth case in the organization's campaign to restore economic liberty as a basic civil right under both the Minnesota state and U.S. constitutions. http://ij.org/include/media _ functions.asp?path=/economic _liberty/mn _ taxi/backgrounder.h... 7/15/2008 pnmer rnenmy VerSIOn or an anlCle trom IJ.org t'age / or 'J In Anderson v. Minnesota Board of Barber and Cosmetologist Examiners, IJ-MN freed hairbraiders from the state of Minnesota's onerous cosmetology licensing regime. Crockett v. Minnesota Department of Public Safety successfully stopped the government from enforcing a blanket ban on advertising, soliciting or using the Internet to conduct lawful, direct sales of wine. Dahlen v. Minneapolis freed sign hanging entrepreneurs from Minneapolis' discriminatory licensing regime. In Johnson v. Minnesota Board of Veterinary Medicine, IJ-MN is currently challenging Minnesota's crackdown on "horse teeth f1oaters"-entrepreneurs who level a horse's teeth. The Institute for Justice has scored numerous additional victories for entrepreneurs and consumers across the nation: . Clutter v. Transportation Services Authority-In 2001, IJ defeated Nevada's Transportation Services Authority and its entrenched limousine cartel that had stifled competition in the Las Vegas limousine market. . Jones v. Temmer-In 1995, IJ helped three entrepreneurs overcome Colorado's protectionist taxicab monopoly to open Denver's first new cab company in nearly 50 years. IJ used this victory to help break open government-sanctioned taxicab monopolies in Indianapolis and Cincinnati. . Ricketts v. City of New York-In 1999, IJ joined commuter van entrepreneurs in a fight against the government bus monopoly that would not allow any jitney entrepreneurs to provide service to consumers in underserved metropolitan neighborhoods in New York City. . Swedenburg v. Kelly- The Institute for Justice successfully waged the nation's leading legal battle to reestablish the American ideal of economic liberty when, on May 16, 2005, the U.S. Supreme Court struck down discriminatory laws that existed only to protect the monopoly power of large, politically connected liquor wholesalers. Vintner entrepreneurs Swedenburg and Lucas joined wine consumers and 1) in filing this federal lawsuit as a challenge to the ban on direct interstate wine shipments in New York. The case raised issues of Internet commerce, free trade among the states, and regulations that hamper small businesses and the consumers they seek to serve. . Craigmiles v. Giles-The Institute for Justice successfully led a federal court to strike down Tennessee's casket sales licensing scheme as unconstitutional, a decision that was upheld unanimously in December 2002 by the 6th U.S. Circuit Court of Appeals and not appealed. This marked the first federal appeals court victory for economic liberty since the New Deal. . Armstrong v. Lunsford-The Institute for Justice opened the hairbraiding profession in Mississippi in 2005 when the state legislature responded to this lawsuit, filed in federal court in 2004, by allowing IJ's clients to continue their entrepreneurship without obtaining a needless government license. . Christian Alf v. Arizona Structural Pest Control Commission-In 2004, the Institute for Justice Arizona Chapter (IJ-AZ) persuaded Arizona bureaucrats to change their position on requiring teenage entrepreneur Christian Alf to obtain a government Issued license for his after- school handyman business helping local residents prevent roof rats. . Cornwell v. California Board of Barbering and Cosmetology,.-In 1999,1) defeated California's arbitrary cosmetology licensing requirement for African braiders. . Diaw v. Washington State Cosmetology, Barbering, Esthetics, and Manicuring Advisory Board-In March 2005, after being sued by the Institute for Justice Washington Chapter (IJ-WA) just seven months earlier, state bureaucrats exempted braiders from discriminatory cosmetology http://ij.org/include/media _functions.asp?path=/economic _liberty Imn _ taxi/backgrounder.h... 7/15/2008 pnnter rnenOlY verSIOn 01 an artICle 1roID IJ .org ral:51:O 0 UJ. 7 licensing requirements. . Farmer v. Arizona Board of Cosmetology-In 2004, as a result of an IJ-AZ lawsuit, the Arizona Legislature exempted hairbraiders from the state's outdated cosmetology scheme. . ForSaleByOwner.com Corp. v. Zinnemann-Also in 2004, the Institute for Justice prevailed in persuading the U.S. District Court for the Eastern District of California to stop the state of California's efforts to impose real estate broker licensing requirements on an informational website. . Franzoy v. Templemen-In April 2007, IJ represented two interior designers in successfully challenging New Mexico's titling law, which prohibited anyone except government-licensed interior designers from using the terms "interior design" or "interior designer." The New Mexico Legislature amended the law doing away with the speech restriction. The Governor signed the bill into law in April 2007. . Gary Rissmiller v. Arizona Structural Pest Control Commission-In the fall of 2006, IJ-AZ challenged the state's requirement that gardeners and landscape maintenance workers obtain three separate licenses simply to kill weeds with over the counter products. As a result of this litigation, gardeners throughout the state are now free to control weeds using products available to the average consumer. . Taucher v. Born-In 2003, the Institute for Justice convinced a federal court to strike down a discriminatory regulation issued by the Commodity Futures Trading Commission that would have required entrepreneurs such as publishers of financial newsletters and Internet websites to register as commodity trading advisors. . Uqdah v. D.C. Board of Cosmetology-In 1993, Il's work in court and the court of public opinion led the District of Columbia to eliminate a 1938 Jim Crow-era licensing law against African halrbraiders. . Wexler v. City of New Orleans-In 2003, the Institute for Justice successfully persuaded a federal court to strike down an absurd ordinance that prohibited booksellers from selling books on city sidewalks without a government issued permit. The Institute for Justice Minnesota Chapter filed its Memorandum in Support of Motion to Intervene in this case, Minneapolis Taxi Owners Coalition, Inc., versus City of Minneapolis, on May 1, 2007, in the U.S. Federal District Court for the District Court of Minnesota. The lead counsel for the Institute for Justice is Nick Dranias, staff attorney with IJ-MN. He is the author of "The Land of 10,000 Lakes Drowns Entrepreneurs in Regulations," which examines numerous government-imposed barriers to honest enterprise that exist throughout Minnesota. The report was released in May 2006 and is available online: . Dranias is joined by IJ-MN Executive Director Lee McGrath. The Institute for Justice is a public interest law firm that advances a rule of law under which individuals can control their destinies as free and responSible members of society. Through litigation, communication and outreach, IJ secures protection for individual liberty and extends the benefits of freedom to those whose full enjoyment is denied by government. IJ-MN litigates under the Minnesota and federal constitutions to reinvigorate economic liberty, preserve property rights, promote educational choice and defend the free flow of information http://ij .org/include/media _ functions.asp?path=/economic _liberty/mn _ taxi/backgrounder.h... 7/15/2008 PUUICl lllCllUlY V~l;:'lVU V.L au a.LU'-'.L'-' HV.LU IJ.V10 ... -b- -' "-'..&.. J essential to politics and commerce. For more information, contact: Bob Ewing Communications Coordinator Institute for Justice 901 North Glebe Road, Suite 900 Arlington VA 22203-1854 bewing@ij.org Phone: (703) 682-9320 ext. 206 Nick Dranias Staff Attorney Institute for Justice Minnesota Chapter 527 Marquette Avenue, Suite 1600 Minneapolis MN 55402-1330 ndranias@ij.org Phone: (612)435-3451 In re City of Minneapolis, 105 F.T.C. 304 (1985). Id. In a lawsuit under case number 85-11452 in Fourth Judicial District Court (Hennepin County). Standing Committee on Licenses & Consumer Services, Regular Meeting Minutes, March 23, 1988, at pp. 1-2. Former Mpls Code ~ 341.270(a), (b) (2005). Id. 9 341.300(b)(1), (2). Minneapolis Taxi Federation v. City of Minneapolis, 1996 WL 722091 (Minn. Ct. App. 1996). Former Mpls Code ~ 341.300(b) (2005). This number does not include the 40 wheelchair accessible vehicle licenses issued in 2002 and temporary or limited "seasonal" licenses. Truax v. Raich, 239 U.S. 33 (1915) (holding the right to work for a living in the common occupations of the community is of the very essence of the freedom and opportunity secured by the 14th Amendment). var gaJsHost = (("https:" == document.location.protocol) ? "https://ssl." : ''http://www.''); document.write(unescape("%3Cscript src='" + gaJsHost + "google-analytics.com/ga.js' type='text/javascript'%3E%3C/script%3E")); var pageTracker = _gat.~etTracker("UA- 3478383-1 "); pageTracker._initDataO; pageTracker._ trackPageviewO; http://ij.org/include/media_ functions.asp?path=/economic _liberty /ron _ taxi/backgrounder.h... 7/15/2008 Office of the City Manager Finance August 15, 2008 Cindy Bechter Business Registration Manager City of San Bernardino 3400 Arrowhead Avenue San Bernardino, CA 92410 RE: Express Transportation, Inc. DBA: AAlI nland Empire Cab Dear Cindy: I am writing this letter at the request of AAllnland Empire Cab in regard to their effort to gain access to the City of San Bernardino market for expanded taxicab service. This letter does not serve as a recommendation of AA/lnland Empire Cab, but rather only as a statement regarding their level of service, should it prove helpful in your consideration of them and the expansion of service to multiple operators within your jurisdiction. The City's position regarding competition through multiple taxicab operators to meet the City's service demand has historically been that we believe the citizens of Riverside are better served by making competition available to them as they select a taxicab operator for their individual needs. AA/lnland Empire Cab has been very responsive to our periodic requests for information in regard to their franchise compliance. I have not received any complaints from customers/citizens in the 4+ years that I have been involved with the taxicab franchise management in regard to AAllnland Empire Cab. They are currently in compliance with all terms of the franchise agreement and fees required under the franchise are fully paid to date. 3900 Main Street. Riverside, CA 92522 · 951.826.5884 · fox 951.826.5683 · www.riversideca.gov If I can be of any further assistance to you, I would be happy to discuss the matter further. I can be reached at (951) 826-5750. Sincerely, f:JtAr1~ Brent Mason Assistant Finance Director City of Riverside, CA 1 RESOLUTION NO. (C(Q)[PY 2 3 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO ADOPTING FINDINGS OF FACT AND CONCLUSIONS OF LAW IN 4 SUPPORT OF THE COUNCIL'S DECISION TO GRANT THE APPEAL FOR A PETITION FOR A FRANCHISE PERMIT FOR EXPRESS TRANSPORTATION SYSTEMS dba AA 5 INLAND EMPIRE CAB COMPANY TO OPERATE TWO (2) TAXICABS IN THE CITY OF SAN BERNARDINO. 6 7 THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO 8 HEREBY FINDS AND CONCLUDES AS FOLLOWS: 9 CHRONOLOGY: 10 A. At the September 9,2008 Bureau of Franchises meeting, a motion to grant the Petition 11 of Express Transportation Systems dba AA Inland Empire Cab Company (hereinafter "AA Inland 12 Empire Cab Company") for a Franchise Permit to operate two (2) taxicabs failed on a 2-3 vote. 13 B. On April 14,2009, the Bureau of Franchises reconsidered the Petition for a Franchise 14 Permit for AA Inland Empire Cab Company and approved a motion to deny the Petition on a 4-1 vote. 15 c. AA Inland Empire Cab Company filed a timely appeal of the decision ofthe Bureau of 16 Franchises to the Mayor and Council. 17 D. On May 18, 2009, the Mayor and Council held a public hearing on the appeal filed by 18 AA Inland Empire Cab Company and received and considered the documentary evidence, testimony, 19 and arguments presented by the interested parties and the witnesses. 20 FINDINGS AND CONCLUSIONS: 21 In accordance with San Bernardino Municipal Code Sections 5.76.050 and 5.76.060, and based 22 upon the documentary evidence, testimony, and arguments presented by the interested parties and the 23 witnesses, the Council adopts the following Findings of Fact and Conclusions of Law in support of the 24 Council's decision to grant the appeal for a Petition for a Franchise Permit for AA Inland Empire Cab 25 Company to operate two (2) taxicabs in the City of San Bernardino: 26 27 28 F:\EMPENO\Resos\AA Cab Co2.wpd 1 6-I-c~ -Jf~3 1 CONCLUSION 1: 2 Further service in the nature proposed by AA Inland Empire Cab Company is required 3 by the public convenience and necessity. 4 CONCLUSION 2: 5 There exists a public demand for an additional two (2) taxicabs and the taxicab service 6 currently being rendered is inadequate. 7 FINDINGS: 8 A. Bell CabN ellow Cab has a Franchise Permit to operate 80 taxicabs in the City of San 9 Bernardino. 10 B. Bell CabN ell ow Cab had only 54 drivers with current City business licenses with 16 11 more drivers who completed the DOl background check and could be issued a City business license, 12 as of the May 18, 2009 Council hearing. 13 c. Bell CabN ellow Cab has produced slow service on numerous occasions, with several 14 witnesses waiting one hour or more for a Bell CabNellow Cab. 15 D. Citizens complain that some Bell CabN ellow Cabs provide poor customer service, that 16 their vehicles are filthy and are not maintained properly, and that some of their drivers are rude. 17 E. Councilmembers have received complaints from their constituents regarding the poor 18 service from Bell CabN ellow Cab. 19 20 F. G. Adding competition by another taxicab company will improve taxicab service in the City. San Bernardino Municipal Code Section 5.76.060(B)(l) permits not more than one 21 taxicab for each two thousand five hundred (2,500) residents in the City. 22 H. Based upon the most recent population estimate of the City, the maximum number of 23 taxicabs permitted is 82. 24 DECISION: 25 Based on the above Findings and Conclusions, the Council decides that (1) Further service in 26 the nature of that proposed by AA Inland Empire Cab Company is required by the public convenience 27 and necessity; (2) The Council hereby grants the appeal and grants the Petition for a Franchise Permit 28 for AA Inland Empire Cab Company-to operate two (2) taxicabs in the City of San Bernardino. F:\EMPENO\Resos\AA Cab Co2.wpd 2 1 The Council hereby refers this matter to the Legislative Review Committee for possible review J of the taxicab ordinance, Chapter 5.76 of the San Bernardino Municipal Code, and consider transferring 3 the duties of the Bureau of Franchises to the Police Commission. 4 /II 5 /II 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 F:\EMPENO\Resos\AA Cab Co2.wpd 3 1 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO ADOPTING FINDINGS OF FACT AND CONCLUSIONS OF LAW IN SUPPORT OF THE COUNCIL'S DECISION TO GRANT THE APPEAL FOR A PETITION FOR A FRANCHISE PERMIT FOR EXPRESS TRANSPORTATION SYSTEMS dba AA INLAND EMPIRE CAB COMPANY TO OPERATE TWO (2) TAXICABS IN THE CITY OF SAN BERNARDINO. 2 3 4 5 6 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor and Common Council of the City of San Bernardino at a meeting thereof, held on the _day of , 2009, by the following vote, to wit: 7 8 9 COUNCIL MEMBERS: 10 ESTRADA 11 BAXTER 12 BRINKER 13 SHORETT 14 KELLEY 15 JOHNSON 16 MC CAMMACK 17 18 NAYS AYES ABSTAIN ABSENT City Clerk 19 20 The foregoing Ordinance is hereby approved this _ day of ,2009. 21 22 PATRICK J. MORRIS, Mayor City of San Bernardino 23 Approved as to form: 24 JAMES F. PENMAN City Attorney 25 26 ( f~ 27 28 F:\EMPENO\Resos\AA Cab Co2.wpd 4