REPORT TO COUNCIL
SUBJECT
Title
Introduce an Ordinance to Award a Non-Exclusive Taxicab Franchise to Silicon Valley Cab Co., Inc. DBA Silicon Valley Cab
Report
BACKGROUND
A taxicab franchise application and required fees have been received from Silicon Valley Cab Co., Inc. DBA Silicon Valley Cab.
There are currently six valid taxicab companies franchised to operate within the City of Sunnyvale. They are: Checker Cab, California Cab, Yellow Cab Peninsula (suspended voluntarily until 5/01/2016), Silicon Valley Cab, Green Cab, and Orange Cab.
Silicon Valley Cab Co., Inc. DBA Silicon Valley Cab acknowledges and accepts the requirements of the Sunnyvale Municipal Code as well as the City’s taxicab franchise agreement. Silicon Valley Cab Co., Inc. DBA Silicon Valley Cab is also aware of the right of the City to revoke or suspend the taxicab franchise if it is determined that there is a violation or non-compliance of the terms contained in Sunnyvale Municipal Code Section Chapter 5.36.
EXISTING POLICY
General Plan
Chapter 3: Land Use and Transportation (LT):
Goal LT-5 Effective, Safe Pleasant and Convenient Transportation
Attain a transportation system that is effective, safe, pleasant and convenient
Policy LT-5.5
Support a variety of transportation modes
The term “non-exclusive franchise” as used in the Sunnyvale Municipal Code means that the City does not limit the number of like franchises in operation at one time. If an applicant meets the provisions as outlined in the Sunnyvale Municipal Code, then the franchise to operate a taxicab service may be awarded by City Council.
The City’s non-exclusive franchise requirements are derived from Sunnyvale Municipal Code Chapter 5.36. It is unlawful to operate any taxicab in the City unless the owner applies for and obtains a franchise to do so. The City Council may deny a franchise to any applicant if:
1. The applicant has been convicted of certain criminal offenses.
2. The proposed color scheme or other insignia may tend to confuse the identification with other franchises already operating within the city.
3. The applicant has been in violation of any law or Municipal Code regulation relating to the conduct of a taxicab business.
4. The applicant has had a taxicab license revoked or suspended in the City of Sunnyvale or any other jurisdiction within five years prior to the date of application.
5. Any other reasonable cause exists which, within the City Council’s sound discretion would render the proposed operation undesirable to the City of Sunnyvale.
A franchise may be awarded for a term of two years, with an option for the Director of Public Safety to approve up to two, two-year extensions for a company that is in good standing. At the expiration of the total term, a new franchise is approved by the City Council under the provisions of Sunnyvale Municipal Code Chapter 5.36.
ENVIRONMENTAL REVIEW
The action being considered is exempt from the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15061 (b) (3) as the activity is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA.
DISCUSSION
Silicon Valley Cab has previously operated with a valid franchise agreement, which was awarded by City Council on November 23, 2103. The franchise commenced on December 18, 2013 and expired on December 17, 2015. The company timely submitted an application to continue the franchise and was allowed, pursuant to section 5.36.120 of the Sunnyvale Municipal Code, to continue operations under the terms of the old franchise until the City Council takes action on awarding a new franchise.
The owner of Silicon Valley Cab Co., Inc. DBA Silicon Valley Cab has submitted information and documentation to demonstrate compliance with each of the criteria identified in Sunnyvale Municipal Code Chapter 5.36, as outlined below:
|
SMC Section |
Description of Requirement: |
Status |
|
5.36.040 |
Applicant has paid the required franchise application fee. |
Met |
|
5.36.050 |
Applicant has at least five (5) vehicles. |
Met |
|
5.36.050 |
Taxicabs have unique color scheme. |
Met |
|
5.36.050 |
Applicant shows sufficient experience to operate franchise. |
Met |
|
5.36.050 |
All drivers for the franchise will be permitted by DPS. |
Met |
|
5.36.050 |
All drivers will be subject to random drug testing requirements. |
Met |
|
5.36.220 |
Applicant has a toll free phone number and sufficient phone lines for dispatch. |
Met |
|
5.36.280 |
Applicant has filed its fare schedule with DPS. |
Met |
|
5.36.300 |
Applicant has a valid insurance policy with $1.0 million combined single limit liability for bodily injury and property damage per any one accident |
Met |
|
5.36.320 |
All vehicles have a taximeter which was inspected by Santa Clara Co. Weights and Measures. |
Met |
|
5.36.360 |
Applicant has undergone a criminal history check. There were no convictions for felony, narcotics, or crimes of moral turpitude. |
Met |
|
5.36.365 |
Applicant has current contract for medical review officer services. |
Met |
The proposed term of the franchise is May 15, 2016 through May 14, 2018, with the option for the Director of Public Safety to approve two, two-year extensions pursuant to Sunnyvale Municipal Code section 5.36.120 if the franchisee is in good standing, for a total possible term of May 15, 2016 through May 14, 2022.
FISCAL IMPACT
Franchise fees, vehicle fees, and driver permit fees are calculated based on full cost recovery; the fiscal impact of awarding a taxicab franchise is therefore predictably nominal, and can be absorbed in the General Fund.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City's official-notice bulletin board outside City Hall, at the Sunnyvale Senior Center, Community Center and Department of Public Safety; and by making the agenda and report available at the Sunnyvale Public Library, the Office of the City Clerk and on the City's website.
ALTERNATIVES
1. Introduce an Ordinance to Award a Non-exclusive Taxicab Franchise to Silicon Valley Cab Co., Inc. DBA Silicon Valley Cab and authorize the City Manager to execute the franchise agreement.
2. Do not introduce an Ordinance to Award a Non-exclusive Taxicab Franchise to Silicon Valley Cab Co., Inc. DBA Silicon Valley Cab or authorize the City Manager to execute the franchise agreement.
STAFF RECOMMENDATION
Recommendation
Alternative 1: Introduce an Ordinance to Award a Non-exclusive Taxicab Franchise to Silicon Valley Cab Co., Inc. DBA Silicon Valley Cab and authorize the City Manager to execute the franchise agreement.
Staff
Prepared by: Elaine Ketell, Management Analyst
Reviewed by: Chief Frank J. Grgurina, Director, Public Safety
Reviewed by: Kent Steffens, Assistant City Manager
Approved by: Deanna J. Santana, City Manager
ATTACHMENTS
1. Taxicab Franchise Agreement
2. Non-Exclusive Taxicab Franchise Ordinance for Silicon Valley Cab Co., Inc.