Licence Application Decision

Transcription

1 Licence Application Decision Taxi Additional Vehicles Application # AV Applicant Bonny s Taxi Ltd. Trade Name (s) Principals Address Applicant s Representative Current Licence Application Summary Date Published in Weekly Bulletin Submitters (and representatives) Board Decision Bonny s Taxi BAINS, Harjit DHUDWAL, Bhajan KHAKH, Makhan Singh SINGH, Amarjit 5759 Sidley Street, Burnaby, BC V5J 5E6 BAINS, Harjinder GILL, Harinder SAHOTA, Balwinder McLachlan Brown Anderson William McLachlan Barrister & Solicitor Special Authorization: Passenger Directed Vehicle Passenger. PT Licence #70242 Additional Vehicles Taxi Add 22 vehicles (17 conventional and 5 accessible). This will increase the maximum fleet size to 163 vehicles (138 conventional and 25 accessible). November 8, 2017 none 22 additional vehicles (17 conventional taxis and 5 accessible taxis) are approved. Decision Date December 21, 2017 Panel Chair Roger Leclerc I. Introduction This is an application from Bonny s Taxi Ltd. dba as Bonny s Taxi, which holds PT licence #70242 with a Special Authorization: Passenger Directed Vehicles. Bonny s Taxi home base is the City of Burnaby. It also has authority to originate passengers at the Vancouver International Airport. It operates 141 taxis, of which 121 are conventical and 20 are wheelchair accessible taxis (WATs). Bonny Taxi seeks 22 additional taxis, including Page 1 Passenger Transportation Board Decision

2 5 WATs, for a total maximum fleet size of 163 taxis. This represents an increase of approximately 15% to its taxi fleet. II. Background Bonny s Taxi Ltd. was incorporated in November 1977 and presently has 5 directors and operates as a non-profit. A summary of Bonny s Taxi applications and PT Board decisions over the past few years; 56-11, peak period taxis, refused. Published October 3, 2012 AV88-13, add 15 vehicles (3 WATT s), Approved in part. Published August 28, 2013 T227-13, YVR rates, Approved in part. Published March 26, 2014 AV377-15, add 17 vehicles (5 WATT s), Approved in whole. Published January 13, 2016 The Passenger Transportation Board sent the applicant a letter dated December 14, 2017 requesting further information and received a response on December 15, In support of this application, Bonny s Taxi Ltd. provided the following documents. PDV vehicle proposal Public Explanation Disclosure of Unlawful Activity and Bankruptcy Declaration Business plan Financial information Public need indicators Municipal notice Accessible service plan Taxi Data Other Documents III. 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 Passenger Transportation Board (Board). Page 2 Taxi Decision Passenger Transportation Board

3 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. IV. Rationale and Submissions (a) Applicant s Rationale Bonny s Taxi has seen a marked increase in trip volume and wait times in the last 24 months. Bonny s Taxi needs to increase its fleet by 15.6% to achieve its target response of 10 minutes from time of call to pick up time. More availability of taxis will reduce customer wait times and provide more efficient service to the community. (b) Submissions & Applicant s Response There were no submissions to the application. V. Reasons (a) Is there a public need for the service that the applicant proposes to provide under special authorization? Taxi companies who want more vehicles are expected to show that there is a public need for more taxis. Companies are expected to show why their current fleet is not large enough to handle more trips and why they need a specific number and type of vehicles for which they have applied. The Board wants to be satisfied that there is a reasonable connection Page 3 Taxi Decision Passenger Transportation Board

4 between the number and type of vehicles requested and public need. Applicants should explain why other taxis in the area are not meeting the public need. The demand for taxi service in the city of Burnaby has been steadily increasing when compared on a month to month basis with previous years. The applicant submits that year over year volume has increased and this has resulted in Bonny s Taxi not meeting its business model of servicing all passengers within 10 minutes or less. The applicant provided the following evidence and material to demonstrate a public need for the additional vehicles requested: a) Operational Data (i) Trip Volumes o Sedan taxis have shown an overall trip volume increase of 13.9% for the past 24 months (September 2015 August 2017). o The phone dispatch trip volume has shown a decrease by -6.1%. This is attributed to increase use of the mobile app option of ordering taxis as shown by 67.5% increase in use of the app. (ii) Flag Trips o Flag trips and YVR have increased by 23.4% and 62.5% respectively. (iii) Cancelled Trips o The percentage of cancelled trips has increased by 20.6% due to slow response times as show by year over year increase of response time of 5.9% and 90 th percentile of 6.9% for the same time period. (iv) Wheelchair Accessible o Wheelchair accessible taxis have shown an overall trip volume increase of 25.3% for the past 24 months. (v) Dispatch Trips o The dispatch trips serviced by vans has grown by 21.4% (13.5% for regular dispatch + 7.9% for specialty trips such as wheelchair trips, freight and 5+ passengers) Page 4 Taxi Decision Passenger Transportation Board

5 (vi) Response Time (September 2015 to August 2017) o Within 10 minutes 71.9% o Within 15 minutes 18.1% o Within 20 minutes 5.6% o Within 25 minutes 3.0% o Within 30 minutes 1.4% (vii) Fleet Utilization o Fleet utilization is 97% for sedans and 94.7% for accessible taxis. The year over year volume has increased by 13.9% for sedans and 25.3% for accessible vans. (viii) YVR o The company has a 10-year contract with the Vancouver International Airport (YVR) to provide service to the airport. The company has 72 vehicles licensed at YVR which vehicles must complete at lease 45 trips per month. (b) Accounts Bonny s Taxi is the major provider of taxi service in the City of Burnaby, it services major corporate clients who either have business premises, offices or plants in the City of Burnaby along with the general population and the professional and business community. The company has a number of pre-authorized corporate clients including an attached list of 24 clients. (c) Support Letters The applicant has provided 2 letters of support and 11 letters thanking the applicant for their donations. The City of Burnaby wrote in support of the application. (d) Demographics The applicant has provided some statistical information from the 2016 census which identify that the population has increased by 4.3% from 2011 to The applicant states that the city is projected to have an annual increase of 2.1% until (e) Market Analysis The applicant identifies that the City of Burnaby has experienced tremendous growth in both residential and commercial development like the Brentwood Urban shopping destination that would have 250 shops and 11 residential towers with 6,000 homes. Page 5 Taxi Decision Passenger Transportation Board

6 Some of the other projects that are in development are the Gilmore Place which is anticipated to feature 500,000 square feet of newly constructed transit oriented retail space. Station Square is a mixed-use development currently under construction and will have 5 condominium towers with 1,800 units and 400,000 square foot office and retail space. Kings Crossing development will have 3 towers backed by an office building. The City of Burnaby has issued 100.9% more building permits than in previous years in The Skytrain Millennium Line contains 7 Skytrain stations and the Expo line contains 4 Skytrain stations in the city of Burnaby. The City of Burnaby is home to a number of seniors residences and housing projects. The City of Burnaby has a senior population of 15% of Burnaby s overall population and represents an annual growth of 2% for the past two years ( The current growth is further evidence by the fact that the applicant needs 22 additional vehicles to meet the needs of people using taxis. Bonny s ability to provide high standard of service to the public has been compromised by growing demand for its services. Board Analysis and Findings I give some weight to the statistical information on population growth and project development information as these will place additional demand in taxi capacity. I give some weight to the fact that the applicant is the major provider of taxi service in the City of Burnaby. They have an established number of corporate clients and some letters of support. I find that the applicant has presented sufficient evidence to demonstrate public need for 22 additional taxis (17 conventional and 5 WAT) to operate a taxi service in Burnaby. Page 6 Taxi Decision Passenger Transportation Board

7 (f) 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? Bonny s Taxi is an established taxi company with over 54 years in Burnaby. The applicant has provided financial information which includes projected balance sheets for the period This financial information indicates a viable business. The applicant has provided an Accessible Service Plan addressing priority dispatching for persons with mobility devices. On the record there were 8 complaints concerning customer service, rates and driver behavior issues during All the complaints were resolved to the satisfaction of the Passenger Transportation Branch. There was one administrative penalty imposed for operating outside service area. The Board had raised this matter with Bonny s in two previous applications and Bonny s provided a detailed reply. Bonny s confirmed to the Board during its investigation of the current application, that it continues to make improvements in NSC matter. The required disclosure forms were completed and indicated no discrepancies. Based on the information provided, I find that the applicant is fit, proper and capable of providing a taxi service in Burnaby. (g) 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 Page 7 Taxi Decision Passenger Transportation Board

8 Board supports healthy competition. The Board discourages competition that could unduly harm existing service providers. The Board considers all applications based on information provided. With the potential approval of rideshare services in the near future the taxi industry must remain competitive and be able to service their clients in a timely manner and wait times are seen as a detriment to continuing a viable taxi service business. If Bonny s Taxi does not keep up with public expectations, then the public will find or demand other options. I am satisfied that Bonny s Taxi has shown public need for 22 additional taxis and that the market has the ability to absorb this additional capacity. There were no submitters to this application. I find that approving this application will promote sound economic conditions in the taxi service in the lower mainland. VI. Conclusion For the reasons above, this application is approved in whole. 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 8 Taxi Decision Passenger Transportation Board

9 Appendix I Bonny s Taxi Ltd. dba Bonny s Taxi Approval of application may expire 1. The licensee must activate the additional vehicles approved in this decision within 6 months of the date of this decision. 2. Any additional vehicles that have not been activated within 6 months of the date of this decision are no longer approved and the maximum fleet size of the licensee is reduced accordingly. 3. The Passenger Transportation Board may vary the requirements set out in 1 above, if circumstances warrant it. 4. If an applicant needs more time to activate its vehicles, then the applicant must make a request to the Board before the end of the 6 month activation period. (Note: activate means that the applicant has submitted the documents required to obtain a Special Authorization Vehicle Identifier to the Registrar of Passenger Transportation.) Notice to Registrar The Registrar must not, without direction from the Board, issue the applicant any additional special authorization vehicle identifiers if the applicant has not activated the vehicles within 6 months of the date of this decision. (Note: activated means that the applicant has submitted to the Registrar of Passenger Transportation the documents required to obtain a Special Authorization Vehicle Identifier.) Special Authorization: Vehicles: Passenger Directed Vehicle (PDV) Terms & Conditions: Maximum Fleet Size: 163 motor vehicles of which a maximum of 138 may be conventional taxis. All other vehicles are accessible taxis. Specialty Vehicles: The accessible taxis must be operated in accordance with the Motor Vehicle Act Regulations including Division 10 (motor carriers) and Division 44 (mobility aid accessible taxi standards), as amended from time to time, and in accordance with any other applicable equipment regulations and standards. Vehicle Capacity (T): Vehicles can accommodate a driver and not less than 2 and not more than 7 passengers. Service 1: The following terms and conditions apply to Service 1: Originating Area: Transportation of passengers may only originate from any point in the City Page 9 Taxi Decision Passenger Transportation Board

10 of Burnaby. Destination Area: Transportation of passengers may terminate at any point in British Columbia and beyond the British Columbia/United States border when engaged in an extra-provincial undertaking. Return Trips: The same passengers may only be returned from where their trip terminates in the destination area to any point in the originating area if the return trip is arranged by the time the originating trip terminates. 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: Originating Area: Transportation of passengers may only originate at the Vancouver International Airport. Destination Area: Transportation of passengers may terminate at any point in British Columbia and beyond the British Columbia/United States border when engaged in an extra-provincial undertaking. Express authorizations: Flip Seat Authorization: Other (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) Vehicles may, from within the originating areas only, pick up passengers who hail or flag the motor vehicle from the street. Accessible taxis may be equipped with flips seats that are installed in accordance with Division 10.07(5) of the Motor Vehicle Act Regulations. Service Priority Limitation: Persons with mobility aids who require an accessible taxi for transportation purposes are priority clients for the dispatch of accessible taxis. The licensee must at all times use a dispatch and reservation system that dispatches accessible taxis on a priority basis to clients who have a need for accessible vehicles. Minimum Operating Require ment: Licensees must ensure that accessible taxi service is available to passengers throughout a 24 hour day in a reasonable manner and that accessible taxi availability is, at a minimum, proportionate to conventional taxi availability. Eco-Friendly Taxis Any additional conventional taxis approved for this licence on or after June 20, 2007 and for which a passenger transportation identifier is issued, must be operated as `eco-friendly taxis' as defined by Board Policy Guidelines in effect at the time the vehicle is issued a passenger transportation identifier. Taxi Cameras: Taxi 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 Passenger Transportation Board. Page 10 Taxi Decision Passenger Transportation Board

11 Taxi Bill of Rights: a) A Taxi Bill of Rights issued by the Ministry of Transportation ( Taxi Bill of Rights ) must be affixed to an interior rear-seat, side window of each taxicab operated under the licence. Taxi Identification Code: b) The Taxi Bill of Rights must at all times be displayed in an upright position with the complete text intact and visible to passengers. c) Licensees may only display a current Taxi Bill of Rights. Each vehicle operated by the licensee must have a unique taxi identification code (TIC) affixed to the inside and outside of the vehicles in a manner that complies with applicable rules, specifications and orders of the Passenger Transportation Board. 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 Taxi Decision Passenger Transportation Board