REPORT TO COUNCIL
SUBJECT
Title
Introduce an Ordinance to Award a Non-Exclusive Taxicab Franchise to My Ekadea, Inc DBA California Cab Company
Report
BACKGROUND
A taxicab franchise application and required fees have been received from My Ekadea, Inc. doing business as (dba) California Cab Company.
There are currently five valid taxicab companies franchised to operate within the City of Sunnyvale. They are: Checker Cab, Green Cab, Silicon Valley Cab, Orange Cab, and California Cab Company (the franchise applicant).
My Ekadea, Inc. DBA California Cab Company acknowledges and accepts the requirements of the Sunnyvale Municipal Code as well as the City’s taxicab franchise agreement. My Ekadea, Inc. DBA California Cab Company is also aware of the right of the City of Sunnyvale to revoke or suspend the taxicab franchise if it is determined that there is a violation or non-compliance of the terms contained in Sunnyvale Municipal Code 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 franchisee that is in good standing. At the expiration of the total term, a new franchise must be approved by the 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
My Ekadea, Inc. DBA California Cab Company has previously operated with a valid franchise agreement, which was awarded on by City Council on November 26, 2013. The agreement was effective on June 8, 2014 expired on June 7, 2016. The franchisee timely requested 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 a new franchise.
My Ekadea, Inc. DBA California Cab Company has submitted information and documentation to demonstrate compliance with 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 registered at least five (5) vehicles |
Met |
|
5.36.050 |
Taxicabs have unique color schemes |
Met |
|
5.36.050 |
Applicant shows sufficient experience to operate a franchise |
Met |
|
5.36.050 |
All drivers for the franchise will be permitted with DPS |
Met |
|
5.36.050 |
All drivers will be subject to random drug testing requirements |
Met |
|
5.36.220 |
Taxi company has a toll free number & 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 for any one incident |
Met |
|
5.36.320 |
All vehicles have a taximeter: all taximeters have been certified by Santa Clara County Weights and Measures |
Met |
|
5.36.360 |
Applicant has undergone a criminal history check. There are no convictions for felony, narcotics, or crimes of moral turpitude in the last five years. |
Met |
The proposed term for the franchise is July 27, 2016 through July 26, 2018, with the option for the Director of Public Safety to approve two, two-year extensions pursuant to SMC Section 5.36.120 if the franchise is in good standing, for a total possible term of July 27, 2016 through July 26, 2022.
My Edakea Inc. was also doing business in Sunnyvale as YELLOW CAB COMPANY PENINSULA, INC. Yellow Cab Peninsula Inc. operated under a separate, non-exclusive franchise with the City of Sunnyvale under an agreement dated April 23, 2015 with an expiration date of March 14, 2017. However, on December 11, 2015, Yellow Cab Peninsula requested permission from the City Manager to suspend service under the franchise agreement pursuant to Section 5.36.140(a)(1) and (2) of Sunnyvale Municipal Code. The City Manager agreed to a temporary suspension of service, provided that Yellow Cab Peninsula restart operations no later than May 1, 2016. When Yellow Cab Peninsula did not restart operations by that deadline, the Director of Public Safety took the necessary procedural action to revoke that franchise on June 6, 2016. Staff has not seen any indication that the revocation of the Yellow Cab Company Peninsula franchise impacts My Edakea, Inc.’s successful operation of California Cab Company; rather, it appears that it simply was not operationally feasible for the owner to continue operating two separate franchises.
Because California Cab Company has continuously remained in good standing, staff recommends approval of the franchise renewal. Should City Council award a franchise agreement to California Cab Company, staff will continue to monitor the owner for compliance with all requirements of a franchise holder under the franchise agreement and Sunnyvale Municipal Code Chapter 5.36, Taxicabs.
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 My Ekadea, Inc. DBA California Cab Company and authorize the City Manager to execute the franchise agreement.
2. Do not introduce an Ordinance to Award a Non-exclusive Taxicab Franchise to My Ekadea, Inc. DBA California Cab Company 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 My Ekadea, Inc. DBA California Cab Company and authorize the City Manager to execute the franchise agreement.
Staff
Prepared by: Elaine Ketell, Management Analyst
Reviewed by: Chief Frank J. Grgurina, Director of Public Safety
Reviewed by: Kent Steffens, Assistant City Manager
Approved by: Deanna J. Santana, City Manager
ATTACHMENTS
1. Taxicab Franchise Agreement
2. Ordinance for Non-Exclusive Taxicab Franchise - My Ekadea, Inc. DBA California Cab