Licence Application Decision

Transcription

1 Licence Application Amendment to Licence Application # Applicant Kalum Kabs Ltd. Trade Name (s) Principals Address Kalum Kabs Current Licence Application Summary Date Published in Weekly Bulletin Submitters (and representatives) HALBAUER, Bryan James 4449 Lakelse Avenue, Terrace BC V8G 1P1 Add reverse trip authority to Service 1 May 28, 2014 Kevin Barry dba Coastal Board Amendments to the terms and conditions of licence are approved as set out in the application summary. Date August 14, 2014 Panel Chair Brenda Brown I. Introduction The applicant seeks to add limited reverse trip authority to its Service 1 of the terms and conditions of its special authorization Passenger Transportation licence Limited reverse authority states "transportation of passengers may originate in the destination area if the transportation terminates in the originating area and the cost of the trip is billed to an active account held by the licence holder that was established before the trip was arranged". This reverse trip authority is usually limited to customers who have billing accounts with a company. The authority allows the taxi company to provide service to established clientele. Under Service 1, Kalum Kabs has an originating area of within 48 kilometers of the City of Terrace. Its destination area is anywhere in British Columbia. The Northwest Regional airport (YXT) is within Kalum Kabs originating area. Kitimat is approximately 62 Page 1

2 kilometers from Terrace. Therefore, Kalum Kabs under its current Special Authorization licence may only drop off passengers in Kitimat, not pick them up and take them to YXT or Terrace. It is applying for authority to do this to serve its corporate accounts. The applicant also ticked a box on Board Form 2, PDV Proposed Terms and Conditions of Licence, indicating that it wanted to provide transportation services under a contract to a company. This request was not included in the application summary that the applicant signed on May 20, Background The principal and sole director of Kalum Kabs Ltd, Bryan Halbauer, has owned and operated the company since August The applicant holds a passenger transportation licence with both General and Special Authorizations. Under its Special Authorization, Kalum Kabs is authorized to operate 19 taxis. Under its General Authorization, Kalum Kabs currently operates two 15 passenger vans and is not restricted where it can pickup and drop off passengers. Two taxi companies are licensed to pick up passengers in Kitimat. Coastal is authorized to provide taxi service with 13 vehicles within 33 kilometers of the District of Kitimat. Coastal has return trip authority and limited reverse trip authority which allows it to originate passengers at YXT in specific circumstances. Christopher Knight is authorized to operate 1 taxi only within the District of Kitimat. No service can be provided to or from YXT. Supporting documentation with the application included: PDV proposed terms and conditions of licence Municipal notice to the District of Kitimat Business plan, including an executive summary, employee manual, service plan Financial information Public need indicators and letters of support Disclosures of unlawful activity and bankruptcy and passenger transportation ownership. Page 2

3 The Board requested further information and clarification from both the applicant and the submitter. II. Relevant Legislation Division 3 of the Passenger Transportation Act (the Act ) applies to this application. The Act requires the Registrar of Passenger Transportation to forward applications for Special Authorization licences to the (Board). Section 28(1) of the Act says that the Board may approve the application, if the Board considers that: (a) there is a public need for the service the applicant proposed to provide under any special authorization. (b) the applicant is a fit and proper person to provide that service and is capable of providing that service, and (c) the application, if granted, would promote sound economic conditions in the passenger transportation business in British Columbia. I will consider each of these points in making my decision. III. Rationale and Submission (a) Applicant s Rationale Since purchasing the company in August 2013, northwest BC has hit an economic and industrial boom. There has been an increase in airlines and flights that arrive daily. The increase in industrialization has increased the populations in Terrace and Kitimat. The majority of the population increase is due to the multiple corporate camps in the area. These camp employees require reliable transportation to and from YXT and the camps. The applicant reports that, due to the economic and industrial growth in the area, the authorized taxi service in Kitimat, Kevin Barry dba Coastal, is unable to meet the demand of corporate clients in Kitimat. The applicant says it has the vehicles and drivers available and receives frequent requests for pickups in the Kitimat area. It is unable to use taxis to respond because of its authorized originating area. Page 3

4 (b) Submission & Applicant s Response Submission from Kevin Barry, proprietor of Coastal Coastal has charge accounts with various contractors in the area and is able to meet the demands and requirements for taxi service. In November, 2013, Coastal was granted authorization for 4 additional taxis and Mr. Barry is confident that the need for taxi service in the area is being met. There are only 2 camps up and running in Kitimat at the present time. Kitimat and the KMP and KLNG camps are beyond the 48 kilometer limit of Kalum Kabs originating area. Applicant s Response 13 of the corporate clients that the submitter listed continue to call the applicant to transport from the camps and hotels to the airport. This occurs multiple times each day. Receives numerous calls from shared clients. The staff of Coastal regularly requests Kalum Kabs to do Kitimat pickups when they are unable to meet the demand. They have indicated that they are not able to accommodate the 3:30 a.m. trips to the airport from the camps. Kalum Kabs reports it is the only company able to provide late night and early morning transportation. During peak camp production periods, the local taxi company cannot meet the demand. The availability of qualified employees is a factor as there is competition for the limited manpower. The applicant has all drivers and vehicles in place and operational. The Board gives more weight to submissions that back up general claims with facts or details. I have considered the submission and the response in my review of this application. Page 4

5 IV. Reasons (a) Is there a public need for the service that the applicant proposes to provide under special authorization? companies seeking a minor amendment are expected to provide some objective indicators of public need indicators and these must be more than the customers opinion or preference. In support of a public need to add limited reverse trip authority, the applicant supplied information regarding its corporate clients. A list of 30 corporate accounts requiring pickup in Kitimat or camps was included. A copy of a contract with a Kitimat based corporate client that was signed in March 2014 was attached. Letters of support with varying comments are as follows: HB Construction Company Ltd. states they require the services of both Kalum Kabs and Coastal to pickup and drop off employees at YXT and the Kitimat Modernization Project (KMP) camp. It has approximately 900 employees of which 200 fly in and 200 fly out each weekend. We are one of many companies working at KMP and there are a number of other projects in the area that also require ground transportation in a similar manner. HB further reports that Coastal is often unable to accommodate early morning or late evening airport pickups and drop offs. CIMS Limited Partnership currently has an account with Kalum Kabs for transportation needs from the airport to the campsite and reverse. The local taxi company deals only in cash which is not appropriate and does not meet its needs. CIMS has over 300 people on its crews leaving at all hours of the day and night. Using Coastal is not an option at these real late hours and early mornings as they don t have the manpower or vehicles to handle the task. JGC FLUOR the transportation manager wrote the following reasons for choosing Kalum Kabs: o Coastal did not return calls to establish an account. o Coastal will only take cash from passengers. o Coastal has limited resources to support KLNG much less KLNG and KMP. Page 5

6 McElhanney - The branch administrator wrote that we have found that on numerous occasions Coastal has had to cancel our taxi arrangements made with them, often on short notice, because of lack of drivers on their end. Coast Industrial Construction HSE manager writes that the company is very pleased with the applicant s service and intends to continue to use the company as it has a proven track record of delivering employees safe and sound throughout the year and in all types of weather. This is particularly true of the 3 a.m. pickups for transport to the airport. 8 s were included from individuals and company representatives requesting transportation from the various camps to the airport. Board Analysis and Findings The Board asked the applicant some questions to clarify details of their operations to service their corporate account clients. The applicant responded as follows: The majority of the contracts were negotiated prior to the applicant s purchase of the company. Newly acquired corporate clients have contacted the applicant to arrange transportation service. service is from the YXT airport to Kitimat camps. When transportation is required from a camp to the airport the 15 passenger van is used, under the General Authorization. Flat rates are charged for this van service. The two 15 passenger vans are used regularly. The applicant identified a number of pickup and drop off locations outside the originating area as well as a list of corporate clients specific to the reverse authority application. The submitter was asked 2 questions regarding vehicle usage and payment requirements. Mr. Barry responded that there are 7 to 8 taxis on the 6 a.m. to 6 p.m. day shift and almost the same on the night shift. The exception is Saturday and Sunday night shifts when there are 5 to 6 taxis working. Payment is by cash or charge accounts to corporate customers. He is looking at getting portable debit/credit machines. I have reviewed all the material presented by both the applicant and the submitter. I find that the letters of support for the applicant are relevant, reliable and provide concrete Page 6

7 evidence that a need for a reverse authority is required. It is documented that some corporate clients have service issues with Coastal. There is a demand that is not being met, particularly in the late hours or early morning. The submitter reported that Coastal is able to meet the demand but provided no verifiable evidence to support this claim and the supporting material refutes it. It appears that Coastal is only operating, at peak, with 60% of its fleet despite being approved for 4 additional taxis in November The applicant has presented sufficient evidence for a determination that a public need exists for it to have limited reverse authority to serve its corporate account customers better. (a) Is the applicant a fit and proper person to provide that service and is the applicant capable of providing that service? The Board looks at fitness in two parts: (i) is the applicant a fit and proper person to provide the proposed service; and (ii) is the applicant capable of providing that service? Kalum Kabs was incorporated in December, 1966 and has been operating for numerous years. The current owner, Bryan Halbauer, is the sole director/officer. He reports 25 years as a business owner in Terrace. Mrs. Halbauer is the general manager and is responsible for accounting and human resources. The application included a business plan with an executive summary, organizational structure and service plan. Since taking ownership in August 2013 an employee manual has been developed and enhanced business practices put into place. The applicant reports that since 2013, demand for service has increased by 45% and the number of highway trips out of Terrace has nearly quadrupled. Financial information included a balance sheet and income statement to March 2014 and cash flow projections for 2014, 2015 and The required disclosures were completed. Page 7

8 I find that the applicant is fit, proper and capable to provide the enhanced service. (b) Would the application, if granted, promote sound economic conditions in the passenger transportation business in British Columbia? The Board looks at the economic conditions issue from a wide-ranging view. The economic conditions of the transportation business in British Columbia are considered ahead of the economic and financial interests of an individual applicant or operator. The Board supports healthy competition. The Board discourages competition that could unduly harm existing service providers. The applicant has numerous corporate clients who require taxi services currently not authorized. The applicant is using 15 passenger vans and its General Authorization to provide pickups outside its originating area. Some corporate clients stated that the local Kitimat taxi provider was unable to provide the taxi service they require. The approval of the reverse authority will allow the applicant to serve a corporate client base that it is already working with and to utilize its existing taxi fleet. Growth in the area has been established. It is reported that the construction of the aluminum smelter has restored confidence in the regional economy and camp employees require dependable transportation. While there is an existing operator in Kitimat, support letters indicate that it is not meeting the demands of major industry in the area, who require adequate and reliable taxi service. I find that the inclusion of a limited reverse clause in the applicant s licence would promote sound economic conditions. Note: Although the applicant noted on Board Form 2 that it wanted to provide transportation services under a contract to a company, this was not included in the application summary. Moreover, this clause is generally limited to specified contracts, such as crew transportation, where rates are negotiated between the two parties. Based on the application materials provided, this type of clause is not appropriate in these circumstances where there are multiple accounts and rates are metered. Also, both the applicant and the submitter will now have limited reverse trip authority on their licence and this promotes consistency in the area. Page 8

9 V. Conclusion For the reasons above, this application is approved. I establish the activation requirements and the terms and conditions of licence that are attached to this decision as Appendix I. These form an integral part of the decision. Page 9

10 Kalum Kabs Ltd. Appendix I Licence Required to Operate The Registrar of Passenger Transportation must issue the applicant a licence before the applicant may implement amendments approved in this decision. Special Authorization Passenger Directed Vehicle (PDV) Maximum Fleet Size: 19 vehicles Terms & Conditions of Licence Vehicles Vehicle Capacity: A driver and not more than 11 passengers. Service 1: The following terms and conditions apply to Service 1 only Originating Area: Transportation of passengers may only originate from any point within 48 road kilometers of the City of Terrace. Destination Area: Transportation of passengers may terminate at any point in British Columbia. Reverse Trips: Transportation of passengers may only originate in the destination area if the transportation terminates in the originating area and the cost of the trip is billed to an active account held by the licence holder that was established before the trip was arranged. Service 2: The following terms and conditions apply to Service 2 only Originating Area: Transportation of passengers may only originate from any point bounded on the south by 48 road kilometers from the boundaries of the Municipality of Terrace, on the west by Kuinitsa (Highway 16), on the east by Kitwanga Junction (Highway 16 and 37), on the north by Cranberry Junction (Highway 37) and Nass Logging Road, including Aiyansh, Canyon City and Greenville. Destination Area: Transportation of passengers may only terminate at any point bounded on the south by 48 road kilometers from the boundaries of the Municipality of Terrace, on the west by Kuinitsa (Highway 16), on the east by Kitwanga Junction (Highway 16 and 37), on the north by Cranberry Junction (Highway 37) and Nass Logging Road, including Aiyansh, Canyon City and Greenville. Page 10

11 Other Express authorizations: (i) Vehicles must be equipped with a meter that calculates fares on a time and distance basis. (ii) Vehicles may be equipped with a top light. (iii) The operator of the vehicle may, from within the originating area only, pick up passengers who hail or flag the motor vehicle from the street. Cameras: camera equipment may only be installed and operated in vehicles when the licensee is in compliance with applicable taxi camera rules, standards and orders of the. Transfer of a licence: This special authorization may not be assigned or transferred except with the approval of the Board pursuant to section 30 of the Passenger Transportation Act. Page 11