REPORT TO COUNCIL
SUBJECT
Title
Introduce an Ordinance to Award a Taxicab Franchise to Ekadea Inc. dba Yellow Cab Company Peninsula
Report
BACKGROUND
An application to renew an existing taxicab franchise; all required fees have been received from Ekadea Inc. dba Yellow Cab Company Peninsula. The effective dates of the requested franchise are March 15, 2015 through March 14, 2017.
There are currently six valid taxicab companies franchised to operate within the City of Sunnyvale: A Orange Cab, California Cab Company, Checker Cab of Silicon Valley, Green Cab, Silicon Valley Cab Company, and Yellow Cab Company Peninsula, Inc.
Ekadea Inc. dba Yellow Cab Company Peninsula acknowledges and accepts the requirements of a taxicab franchise as set forth in Sunnyvale Municipal Code (SMC), as well as the taxicab franchise agreement. Ekadea Inc. dba Yellow Cab Company Peninsula is aware of the right of the City of Sunnyvale to revoke or suspend the taxicab franchise if it is determined there is a violation of, or non-compliance with, the terms contained in SMC Section 5.36.
EXISTING POLICY
The term "non-exclusive franchise" as used in the SMC means the City does not limit the number of like franchises in operation at one time. If an applicant meets the provisions as outlined in the municipal code, then the franchise to operate a taxicab service should be issued.
The City's non-exclusive franchise requirements are derived from SMC 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. Pursuant to SMC 5.36.110, 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 submits an incomplete application.
4. The applicant has been in violation of any law or municipal code regulation relating to the conduct of a taxicab business.
5. 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.
6. The applicant was denied a franchise within the prior two years.
7. Any other reasonable cause exists which, within the City Council's sound discretion would render the proposed operation undesirable or inadequate to the City of Sunnyvale.
A franchise is issued for a term of two years. At the expiration of the term, the franchise is deemed expired and is no longer valid unless a new franchise is issued under the provisions of SMC Chapter 5.36.
ENVIRONMENTAL REVIEW
This activity does not require environmental review because it can be seen with certainty that there is no possibility that it may have a significant effect on the environment. CEQA Guidelines Section 15061(b)(3).
DISCUSSION
On January 29, 2013, City Council awarded a non-exclusive taxicab franchise to Jasraj Bhatia, fka Bikram Singh, dba Yellow Cab Company Peninsula, Inc. (RTC 13-026). This action allowed Yellow Cab Company Peninsula, Inc. to begin operating with its franchise in the City at midnight on March 15, 2013 through March 14, 2015. Recently, Jasraj Bhatia notified DPS that he had established a new corporation name Ekadea Inc. which will own Yellow Cab Company Peninsula and California Cab Company. Now as Ekadea Inc. dba Yellow Cab Company Peninsula, he is currently requesting a taxicab franchise with effective dates of March 15, 2015 through March 14, 2017. Yellow Cab Company Peninsula, Inc. has previously operated with a valid franchise agreement, which expired on March 14, 2015. Pursuant to SMC Section 5.36.120, the franchise has been granted an administrative extension to continue operations until Council takes action on the renewal.
Ekadea Inc. dba Yellow Cab Company Peninsula has submitted information and documentation to demonstrate compliance with the criteria identified in SMC Section 5.36, as outlined below:
SMC Section |
Description |
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 single limit and $1.0 million general liability. |
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 |
FISCAL IMPACT
The revenue generated from this franchise was included in the FY 2014/15 Adopted Budget. This franchise generates General Fund revenues of approximately $6,428 during the two years of the agreement due to application fees ($1,563), quarterly vehicle fees ($116 per vehicle per quarter), and the business license fee ($116). This amount does not include revenue generated by the driver permits issued ($178 per driver for year 1; $117 per driver for each subsequent year). Driver permit fees are not included because it fluctuates due to driver turn over during the term of the agreement.
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 renewing a non-exclusive franchise for taxicab service to Ekadea Inc. dba Yellow Cab Company Peninsula for the period of March 15, 2015 through March 14, 2017, per applicant's request and authorize the City Manager to execute necessary documents of agreement, including additional provisions as set forth above.
2. Do not introduce an ordinance renewing a non-exclusive franchise for taxicab service to Ekadea Inc. dba Yellow Cab Company Peninsula for the period of March 15, 2015 through March 14, 2017, per applicant's request.
RECOMMENDATION
Recommendation
Alternative 1: Introduce an ordinance renewing a non-exclusive franchise for taxicab service Ekadea Inc. dba Yellow Cab Company Peninsula for the period of March 15, 2015 through March 14, 2017, per applicant's request and authorize the City Manager to execute necessary documents of agreement, including additional provisions as set forth above.
Staff
Prepared by: Nancy Thome, Senior Management Analyst
Reviewed by: Frank Grgurina, Chief, Department of Public Safety
Reviewed by: Robert A. Walker, Assistant City Manager
Approved by: Deanna J. Santana, City Manager
ATTACHMENTS
1. Non-exclusive Franchise Ordinance
2. Taxicab Franchise Agreement