Licence Application Decision Other PDV New

Transcription

1 Licence Application Decision Other PDV New Application # Applicant BC Ltd. Principals HANNA, Shyla Ruth WETMORE, Richard Ray Address Current Authorization (s) Application Summary Related Applications: (for cross reference only) RR2, Site 22, Comp 13, Dawson Creek BC V1G 4E8 None New Special Authorization (Reference: Section 26 of the Passenger Transportation Act) New passenger directed vehicle service in Peace River Regional District area with 2 vehicles. Rates Publication Date March 20, 2013 Submissions None Received Board Decision (Section 24 of the Passenger Transportation Act) Hourly or Point to Point Rates Three Kings Services Ltd. The special authorization is approved as set out in this decision. Terms and conditions of licence are approved as set out in this decision. Rates sought by the applicant are approved as set out in this decision. Decision Date May 1, 2013 Panel Chair Brenda Brown Page 1 Passenger Transportation Board PDV Decision

2 I. Board Considerations: The Board may approve a licence 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. All three requirements must be met before the Board will approve an application. (Reference: section 28(1) of the Passenger Transportation Act) Applicants must decide how much information to provide to the Board. Applicants should consider the type, location and scope of the service they wish to provide. The Board has written various Guides to explain Board requirements. The Board publishes applications and accepts submissions. II. Background This application is for a new special authorization for 2 passenger directed vehicles to operate within the Peace River Regional District, headquartered in Dawson Creek. The applicant is seeking 2 types of transportation services. 1. Crew transport for oil and gas production and construction companies. 2. Safe ride home transportation from restaurants, bars and private functions in Dawson Creek. These will be addressed separately under the public need requirement. No submissions were received. III. Reasons for the Board s Decision (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? Page 2 PDV Decision Passenger Transportation Board

3 The Board reviews the conduct of an applicant and the structure of its operations. Does the applicant seem to understand passenger transportation laws and policies? Is the business set up to follow these laws? Is there something in the applicant s background that shows it disregards the law? Applicants must show that they have the resources and skills to manage the service that they want to operate. The Board gets much of this information from business plans and financial statements. The applicant company was incorporated on June 6, The co-owners are Shyla Ruth Hanna as president and Richard Wetmore as secretary. Shyla Hanna has 7 years experience in safety and office management and will be responsible for administrative and safety details. Since 2006 she has been the office manager for Platoon Oilfield Construction, overseeing quality control and as safety coordinator, with an extensive background in construction safety. Platoon Oilfield Construction would like to use the applicant s service. Richard Wetmore has over 15 years in the transportation and oil and gas industry and will be the sales manager. A driver is in place with over 25 years driving experience and has been driving rig crews for the last 7 years. The business plan included an executive summary, outlining the company s objectives, marketing and sales strategy, a milestones timetable, as well as a condensed operating plan. Extensive financial information was provided. Included were the estimated start up costs, sales projections and break even analysis. A net worth statement for principal, Shyla Hanna, was submitted. Monthly cash flow projections for 2013 to 2015 were detailed. The application also included 2 manuals that the applicant intends to use in its operations: Health, Safety & Environmental Manual for a safer workplace and Preventative Maintenance Policy for equipment. The required disclosure forms were completed by each company principal. I find the applicant to be fit and proper and to have the skills and resources necessary to be capable of providing the proposed service as outlined in the decision. (b) Is there a public need for the service that the applicant proposes to provide under special authorization? Applicants must prove to the Board that there is a public need for their service. may show this public need with the following types of information: Applicants letters from booking agents, travel agents or prospective passengers Page 3 PDV Decision Passenger Transportation Board

4 signed contracts population data community plans other relevant material The board often finds comments written by individuals more useful than form letters or petitions. The Board also reviews business plans and financial statements. As mentioned above, the applicant is requesting 2 types of transportation services. 1. Crew transportation for oil and gas production and construction companies. The application mainly focused on this service. A letter was included from the owner of Platoon Oilfield Construction. It is an oilfield construction and maintenance company that is a contractor for several oil and gas companies. We would use BC Ltd. to transport workers for our contract shutdown work that would commence March 2013 through August 2013.Shyla Hanna has been employed by Platoon Oilfield Construction for 7 years and has displayed strong business etiquette, organization and ambition to succeed. Shutdown crews work on gas plants that must be repaired and maintained once a year. Crews are called in to work on these sites anywhere from 2 to 5 weeks and require transportation to and from the operation. The applicant has also been contacted by a drilling company in the area to begin crew shuttle service as soon as possible. I find that the applicant has identified a public need and users for the proposed crew transportation. 2. Safe ride home transportation from restaurants, bars and private functions. The applicant did not supply any evidence of public need or user support for this service. It stated that although these clients will only contribute a small amount of revenue to the company, it is important to service this sector to produce supplemental revenue. The applicant s preference for a proposed service does not indicate need. The onus is on the applicant to provide factual information that demonstrates a public need exists. The applicant has not satisfied the requirement to indicate a public need exists for this service. Page 4 PDV Decision Passenger Transportation Board

5 (c) Would the application, if granted, promote sound economic conditions in the passenger transportation business in British Columbia? There are many markets for transportation services. A healthy, competitive industry provides the public with service options while enabling successful operators to run a successful business. The applicant identified other crew transport providers in the area and stated that they are all busy. The applicant further stated that it intends on targeting the construction side of the oil and gas industry, transporting crews to and from remote construction locations BC Ltd. has commitments from company customers to provide crew transportation. There were no submitters to this application. Crew transport is an important service to the oil and gas industry. Approval of this part of the application will assist and promote sound economic conditions to these industries in the Peace River Regional District and provide safe transport for their crews. There is taxi service available in Dawson Creek. Without evidence of any additional public need for a safe ride home, I find this part of the application would compete with the taxis and not promote sound economic conditions. IV. Rates The rates are approved as set out in this decision. The applicant had stated that Rates may vary by the number of passengers. In response to an inquiry, the applicant clarified that if it had to transport 10 passengers, it would have to rent or purchase a 10 passenger van and thus have to increase the rate to cover these charges. In this instance, it would charge $150 per hour. Licensees may only charge rates approved by the Passenger Transportation Board. The Board has approved minimum and maximum rates for limousines in the Lower Mainland and Capital Regional District. In this instance I am approving a minimum rate of $110 per hour and a maximum rate of $150 per hour. Within these parameters, the applicant may set the rates. V. Conclusion For the reasons above, this application is approved as set out in this decision. 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 5 PDV Decision Passenger Transportation Board

6 BC Ltd. Appendix I Licence Required to Operate Vehicles Approval of application may expire The Registrar of Passenger Transportation must issue the applicant a licence before the applicant can operate any vehicles approved in this decision. 1. The applicant must activate at least 1 vehicle within 6 months of the date of this decision. 2. If the applicant does not meet the requirements set out in 1 above, this Special Authorization expires. 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 a licence or any Special Authorization Vehicle Identifiers if the applicant has not activated at least 1 vehicle 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 Passenger Directed Vehicle (PDV) Maximum Fleet Size: Specialty Vehicles: Vehicle Capacity (LV): 2 vehicles Terms & Conditions of Licence Vehicles Only four-wheel drive or all-wheel drive passenger vehicles may be operated. A driver and not less than 6 and not more than 11 passengers Page 6 PDV Decision Passenger Transportation Board

7 Service 1: Originating Area: Destination Area: Transportation of passengers may only originate from any point in Peace River Regional District. Transportation of passengers may terminate at any point in Peace River Regional District and beyond the British Columbia/Alberta border when engaged in an extra-provincial undertaking. Service Limitations: Service may only be provided to oil & gas crew and service members for transportation to and from oil & gas rig or construction sites as long as BC Ltd. has written or verbal agreements with oil & gas companies or related service providers for crew transportation. Rates: The Board approves the following rates. Hourly Rates* Minimum Rate $ Maximum Rate $ Shuttle Service (oil & gas/ construction crews) Shuttle Service 8 hrs. (shutdown crews) *1 hour minimum charge for any use of a vehicle for less than 1 hour. General: Taxes are not included Other rates and rules may be set out in the rates document received from the applicant. Page 7 PDV Decision Passenger Transportation Board