Licence Application Decision

Transcription

1 Licence Application Decision Taxi Additional Vehicles Application # AV Applicant Bel-Air Taxi (1982) Limited Trade Name (s) Principals Address Current Licence Representative Application Summary Date Published in Weekly Bulletin Submitters (and representatives) Board Decision Bel-Air Taxi MEHAT, Sohan 2121 Hartley Avenue, Coquitlam BC V3K 6Z3 Special Authorization licence (copy attached) William McLachlan, McLachlan Brown Anderson Additional Vehicles - Taxi Add 14 vehicles (10 conventional and 4 accessible). This will increase the maximum fleet size to 60 vehicles (50 conventional and 10 accessible). September 18, 2013 Bonny s Taxi Ltd., represented by Ryan Patryluk, counsel, Heenan Blaikie 6 additional vehicles (4 conventional taxis and 2accessible taxis are approved). Decision Date December 4, 2013 Panel Chair Brenda Brown I. Introduction The applicant, Bel-Air Taxi (1982)Limited dba Bel-Air Taxi is approved under special authorization passenger transportation licence #70233 to operate 46 taxis. Of these, a maximum of 40 vehicles may be conventional taxis and all others are accessible taxis. Bel-Air Taxi has 5 originating areas, which include the Cities of Port Moody, Port Coquitlam and Coquitlam, an area beyond the City of Port Moody with detailed boundaries and finally, any point within 3 road kilometers of these 4 areas. This application is to increase its fleet size by adding 14 taxis, 10 of which would be conventional and 4 would be accessible vehicles. The total fleet size would be 60 taxis, an increase of close to 30% for Bel-Air Taxi. Page 1 Passenger Transportation Board Decision

2 II. Background Bel-Air Taxi (1982) Limited was incorporated on December 14, 1982 and is a well established provider of taxi service, primarily in Port Moody, Port Coquitlam and Coquitlam, often referred to as the Tri-Cities. Bel-Air Taxi is a component of what is known as the Coquitlam Taxi Group. This combined fleet is comprised of Coquitlam Taxi (1977) Ltd. with 31 taxis and Port Coquitlam Taxi Ltd. with 14 taxis. Overall the Coquitlam taxi fleet operates 91 taxis. The group has 8 accessible taxis; 2 with Port Coquitlam Taxi and 6 with Bel-Air Taxi. Coquitlam Taxi is authorized to originate 30 of its 31 taxis at YVR. These 3 taxi companies operate under one corporate umbrella, Bel-Air Taxi Ltd, incorporated on February 23, The companies operate with a common dispatch and common financials as if they were one entity. The primary operating areas of the 3 companies are similar. However, Bel-Air Taxi is able to originate passengers within 3 kilometers of Coquitlam, Port Coquitlam and Port Moody. This enables Bel-Air Taxi to pick up passengers in parts of Burnaby and New Westminster. Past application history for the applicant includes: AV , addition of 16 vehicles, 2 of which must be accessible taxis, approved in part and published in the PT Bulletin on March 12, Application for the addition of Service 2, originating at YVR, refused and published June 4, Application to allocate 15% of the company s fleet for weekend peak period service in the Downtown Vancouver Entertainment District, refused and published in the PT Bulletin on October 3, In support of its application, the applicant provided the following material. PDV Vehicle Proposal Business Plan with executive summary and various financial statements Municipal notices sent to the Cities of Coquitlam, Port Moody, Port Coquitlam and Burnaby and letter of support from the City of Coquitlam National Safety Certificate for Bel-Air Taxi Page 2 Taxi Decision Passenger Transportation Board

3 Flash drive for the Coquitlam Taxi Group dispatch trips with some monthly summaries One page summary of credit card revenue for the Coquitlam Taxi Group Support letter from School District 43, with purchase orders for taxi requirements Canada Post letter with 3 agreements to provide transportation for letter carriers Support letter from Boulevard Casino Coquitlam Statistics Canada data for population growth in Coquitlam, Port Coquitlam and Port Moody Building permit records for Port Moody and Port Coquitlam Accessible taxi service plan and Dispatch action plan Completed disclosure statements of Unlawful Activity and Bankruptcy and Passenger Transportation Ownership The Passenger Transportation Branch advised the Board that the Registrar had received, investigated and resolved 2 complaints concerning Bel-Air Taxi. On November 5, 2013 the Board requested clarification from the applicant on specific details on parts of the evidence submitted. The applicant responded on November 15, On November 25 th, the Board again requested further clarification and confirmation on data issues, with a response from the applicant on November, 29, The results of these inquiries will be detailed in the analysis under public need. 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). 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. Page 3 Taxi Decision Passenger Transportation Board

4 I will consider each of these points in making my decision. IV. Rationale and Submissions (a) Applicant s Rationale The applicant states it has determined that there is a growing and unmet public need for additional taxis in the Coquitlam, Port Coquitlam and Port Moody areas. Bel-Air Taxi recognizes that 14 further identifiers is a significant addition to its fleet of 46 taxis; however the14 further identifiers should be related to the overall fleet size of 91 vehicles given there is a common operation of the 3 licensees. (b) Submissions & Applicant s Response Through counsel, Bonny s Taxi Ltd. made a submission. Its arguments are outlined as follows: Approval of the application will have a direct and immediate impact on the business of Bonny s Taxi. Bel-Air Taxi is permitted to pick up passengers in the City of Burnaby within 3 kilometers of the Burnaby/Coquitlam border. Adding 14 vehicles will significantly impede Bonny s Taxi business. There is no public need for additional vehicles in Coquitlam. The applicant must supply dispatch data that is credible. Application indicated that 98% of dispatched trips were picked up within 15 minutes from dispatch to pick up. Public transit in Coquitlam and the surrounding area is becoming more accessible and popular. The applicant, through counsel, responded to the submission. The area in Burnaby that can be operated by Bel-Air Taxi is limited to a sliver that runs 3 kilometers west of the Coquitlam border. Bel- Air Taxi has reviewed their dispatch records and trips originating within Burnaby would constitute less than 2% of overall Bel-Air Taxi business. Bel-Air Taxi only answers dispatch calls for business within Burnaby and the greatest number of these calls are to serve regular customers. The submitter is not privy to the data submitted. Page 4 Taxi Decision Passenger Transportation Board

5 Suggesting that taxi use in the Tri-Cities could diminish due to public transit is speculation. The Board gives more weight to submissions that back up general claims with facts or details. I have considered the submissions and the responses in my review of this 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 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. In its business plan, the applicant stated that its computerized dispatch system coupled with the GPS units in the taxis, ensures response times are as fast as possible. The following was submitted in support of a growing and unmet public need for more taxis in the Coquitlam, Port Coquitlam and Port Moody areas. Statistics Canada census profiles for 2006 and 2011 indicate population growth in Coquitlam of 10.4%, Port Moody at 19.9% and Coquitlam growth of 6.9%. The applicant states there are an increasing number of elderly residents, many of whom require wheelchair accessible taxis. Business and commercial growth within the Tri-Cities o 46 pages of building permits for Port Moody and Port Coquitlam were submitted. o Coquitlam s area plan for future development was included. The Coquitlam city plan details extensive subdivision growth. A letter of support from the City of Coquitlam was included in response to the municipal notice. From the City s perspective increasing the Page 5 Taxi Decision Passenger Transportation Board

6 applicant s fleet and particularly adding accessible taxi vehicles is perceived as beneficial. o There is an extensive plan to develop the old Fraser Mills area. o Plans are underway to develop a hotel adjacent to the Red Robinson Casino and Theatre complex. o This new development anticipates a population of a further 7500 residents in this area of Coquitlam. o A letter of support from the Boulevard Casino outlined the challenges associated with a shortage of taxis which becomes even more acute with its undertaking of a significant renovation. A letter of support from Coquitlam School District 43. Bel-Air Taxi has a contract to transport students to and from school within this district. Included were purchase orders with schedules of taxi requirements. The letter stated: The region is growing and so is the need to transport children to school. On occasion concerns are raised by parents or the schools that our students are being picked up late. Service for special needs and physically challenged students is increasing and with Bel-Air Taxi groups limited number of specialized vehicles we are noticing increased wait times. The applicant states that the number of vehicles required to service the School Board contract between 8 and 9 am is 70 taxis. The same number is required between 2 and 3 pm each weekday afternoon. There are 10 to 12 regular wheelchair trips during these same time frames. With the 6 accessible Bel-Air Taxis and the 2 accessible taxis from Port Coquitlam Taxi, there is a significant problem in meeting wheelchair taxi demand. Canada Post letter and 3 agreements to 2016 for Bel-Air Taxi to transport letter carriers. The applicant writes that there are times when non-contract taxi demand has to be put on hold while the contractual requirements for the School Board and Canada Post are being served. The General Manager of Bel-Air Taxi has indicated that it is a regular occurrence to delay service to other customers while the contractual requirements for the School Board and Canada Post are served. Wait times are not broken down between conventional and accessible taxis. A summary of credit card growth from 2009 through to 2012, showing the volume of credit card business increased by 68%. The applicant attributes this high Page 6 Taxi Decision Passenger Transportation Board

7 percentage of growth to new business ; however, it did not respond to the Board s request for actual comparisons with cash revenue for the same period. Data material from the flash drive. The applicant reports that the business model of the Coquitlam Taxi Group is to provide service within a 10 minute window, from the time of customer call through the dispatch process to pickup of the customer. The applicant submits that the most compelling material is found on the flash drive. The information on the flash drive consisted of daily trip sheets by month with the headings: District Ordered Dispatch Meter on Meter off Car The following days and months were included on the daily trip sheets. March 1-8, 2012 October 1-31, 2012 April 19-26, 2012 November 1-30, 2012 May 1-19, 2012 December 1-31, 2012 July 19-31, 2012 January 1-31, 2013 August 1-17, 2012 February 1-28, 2013 September 1-30, 2012 March 1-31, 2013 April 1-20, 2013 Some of the monthly data included trips from other months and other years. This data of individual trip records was over 378,000 line items. The applicant included a summary of some monthly trip statistics, with the qualifier that certain 2012 months do not have full samples as Digital Dispatch Systems was unable to provide fully completed monthly data samples. Fifteen monthly trip stats Coquitlam were submitted. Two examples are as follows: MARCH 1-8, 2012 Total Completed Trips Completed>=10 Min Percentage % MARCH, 2013 Total Completed Trips Completed>=10 Min Percentage % Board Analysis and Findings I will first address the data submitted on the flash drive. A voluminous amount of raw data does not indicate public need without some summarization and analysis by the applicant. Page 7 Taxi Decision Passenger Transportation Board

8 Data should be accurate, complete, meaningful and self-explanatory. I did not find the vast amount of line by line trip data to be compelling support material. However I did consider as meaningful, the summary that was presented of some of the monthly trip statistics as they relate to the 10 minute business model of dispatch/pickup time. Of the 15 months presented; January 15, 2012 to April 30, 2013; 6 were partial and 9 were complete months, for a total of 347 days. As part of the Board investigation, the applicant confirmed that 60% to 75 % of dispatch trips are being served within the company s 10 minute target. This would mean that 25% to 40% are not being served within the company s business model. Notionally, the Board has determined that a 15 minute wait time is a practical indicator of service levels. Upon request, the applicant supplied further data for the 15 month period that indicates 75% to 94% of dispatch trips have wait times of 15 minutes or less. I found this evidence to be relevant as it indicates there is room for improvement to decrease customers wait time. Exceeding the 10 minute business model may be an indicator of public need, but not exclusively and it is subject to many factors; such as time of day, size of the geographical operating area, weather, traffic and trip demand. The applicant did supply additional support material that influences the wait time. The population information submitted indicates the Tri-Cities has and is experiencing significant growth. The School Board notes that this population growth is affecting taxi service for students. The information on the requirements to service the School Board contract is persuasive as to the number of vehicles required Monday to Friday. The support letter from the Coquitlam School Board notes a developing problem with timely delivery of the contract taxi service. If 70 of the Coquitlam Taxi Group fleet of 91taxis serve this contract, it does not leave many vehicles available for non-contract customers at these high demand hours. Of the 91 taxis, Coquitlam Taxi has specific requirements for 30 taxis to fulfill its YVR contract. This may take away from the availability of the Coquitlam taxi fleet during portions of the day. In addition, the letter carriers often require transportation at the same times. The applicant reports a need for 10 to 12 accessible taxis to transport school children per school day. With 8 accessible taxis, there is a problem meeting wheelchair taxi demand. These times often coincide when medical appointments are booked by other wheelchair customers. There are times when non-contract accessible taxi demand must be put on hold Page 8 Taxi Decision Passenger Transportation Board

9 while contractual requirements are served. In the accessible service plan, it states that on average the 8 accessible taxis do 320 trips per day; 160 accessible and 160 conventional trips. This indicates that each accessible taxi does 20 accessible trips per 24 hour period. I find this information relevant to indicate a need for additional accessible taxis. Upon inquiry, the applicant details that the contract requirement with Canada Post is 138 trips per day. In addition, there is an average of 70 additional extra/special Canada Post trips daily. I find that the applicant has shown the contracts with Canada Post and the Coquitlam School Board are significant indicators of public need for more taxi capacity. When questioned as to fleet utilization, the applicant responded that the entire fleet operates Monday to Friday, 24 hours per day. On Saturday and Sunday day shift, on average 90% of the fleet is in service and again 100% of the fleet would be in service Friday and Saturday nights. This indicates that the capacity for trip volume growth is limited. I find that the applicant has provided evidence that additional vehicles are required to fulfill its contract requirements in an efficient and timely manner, as well as to serve the general public. I therefore have made a determination on the factual evidence presented that the applicant has sufficiently demonstrated there is a public need for 4 conventional taxis and 2 accessible taxis for a total of 6 additional vehicles to meet the public need. (b) 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? The parent company, Bel-Air Taxi Ltd. was incorporated on February 23, The 3 related companies have been in business for over 30 years. The primary shareholder and president is Mr. Sohan Mehat who reportedly has many years of experience in the taxi industry and has run this company for the past 20 years. A complete list of directors and shareholders of the parent company were included. Sohan Mehat is the sole officer/director of the applicant company, Bel-Air Taxi (1982) Limited. As previously mentioned, the applicant company is one of the 3 taxi companies of Page 9 Taxi Decision Passenger Transportation Board

10 Bel-Air Taxi Limited, also referred to as the Coquitlam Taxi Group. Information submitted as to organizational structure and financial information is common, as if they are one entity. Because of this commonality, it is difficult to assess the requirements of each company individually. The applicant reports that the key employees, including the manager and accountant, have many years of experience in the taxi industry. Drivers undergo a training program and have completed the Taxi Host program. The in house training is based on the company s training manual. All vehicles undergo frequent inspections. The applicant included its accessible service plan with priority dispatch requirement for accessible taxis. Accessible trips are assigned a v attribute to distinguish from conventional reservations and drivers are accorded some incentives. The originating areas are divided into 8 zones, each with 1 accessible vehicle allocated. The general manager completed training at the Richmond Centre for Disability and the mechanic has been trained by Mahadev. Each driver of an accessible taxi is trained on loading, unloading, tiedown and sensitivity issues. Drivers must complete a training program to the satisfaction of the Coquitlam School District, for transportation of students requiring a wheelchair accessible taxi. The accessible service plan cites contracts with School District #43, ICBC, WCB, HandyDart and MTS. The application included a business plan with an executive summary and several financial statements. Projected consolidated statements and capital asset schedules for 2013 to 2016 were submitted. The information supplied indicates that the applicant has the ability to finance additional vehicles, to hire and train drivers and to provide suitable maintenance for the taxis. The applicant seems to have measures in place to ensure care and control over its operations. The principal completed the required disclosure statements. The information provided by the applicant with respect to its operations and financials are sufficient to determine that Bel-Air Taxi is fit, proper and capable of providing the service approved in this application. Page 10 Taxi Decision Passenger Transportation Board

11 (c) 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 provided evidence of growth in its operating area over the past few years and an increase in taxi demand due to the school and postal contracts. The submitter claims that additional vehicles will have a direct effect on Bonny s Taxi, as Bel-Air Taxi is permitted to pick up within 3 kilometers of the Burnaby/Coquitlam boundary. Bel-Air Taxi, in its application material, states that dispatch records show trips originating in the City of Burnaby are less than 2% of overall business. In addition, the licensee has a service limitation restricting service in Burnaby to dispatch calls. The submitter also refers to statistics quoted in application regarding dispatched trips. These statistics related to peak period on Friday/Saturday and Saturday/Sunday only and are, therefore, of limited relevance to this application. The applicant s main service area is within the Tri-Cities, where the 2 other taxi providers are corporately affiliated. An increase in the number of vehicles should enhance the service provided by all 3 companies. The marketplace should be able to absorb the approved expanded services of the application. I find that approval of this application, in part, would promote sound economic conditions in the taxi industry in the applicant s service area. VI. Conclusion For the reasons above, this application is approved in part as set out in this decision. Page 11 Taxi Decision Passenger Transportation Board

12 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 12 Taxi Decision Passenger Transportation Board

13 Bel-Air Taxi (1982) Ltd. Appendix I Licence Required to Operate Vehicles Approval of application may expire Notice to Registrar 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.) 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) Terms & Conditions: Maximum Fleet Size: 52 motor vehicles of which a maximum of 44 may be conventional taxis. All other vehicles are accessible taxis. Specialty Vehicles: All vehicles must be operated as an accessible taxi 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: Vehicles can accommodate a driver and not less than 2 and not more than 7 passengers. Vehicle Limitation: Any additional vehicles approved for this licence on or after March 5, 2008 and for which a passenger transportation identifier is issued, may only pick up passengers who originate in area #5 of Service 1, if the passengers have requested service through the licensee s dispatch service. Under no circumstances, may these vehicles be parked in taxi stands, sky train stations or other locations in area #5 awaiting non-dispatched fares. Page 13 Taxi Decision Passenger Transportation Board

14 Minimum Operating Requirement: Services: At least 2 accessible taxis must be operated and available for hire 24 hours each day, every day of the week. Originating Area: Transportation of passengers may only originate from any point within: 1. The City of Port Moody; 2. The City of Port Coquitlam; 3. The City of Coquitlam; 4. The area beyond the City of Port Moody north of Burrard Inlet, east of Indian Arm, west of the City of Coquitlam, and south of an extension of the north boundary of the City of Coquitlam (legally described as that portion of Township 39 lying west of the City of Coquitlam), south of Township 4 and including township west of Township 39 and District Lot 256; and 5. Any point within 3 road kilometres of any of the above 1, 2, 3 or 4. Destination Area: Transportation of passengers may terminate at any point in British Columbia. Return Trips: The same passengers may be returned from where their trip terminates in the destination area to any point in the City of Port Moody, City of Port Coquitlam and the City of Coquitlam only if the return trip is arranged by the time the originating trip terminates. Reverse Trips: Transportation of passengers may originate in the destination area if the transportation terminates in the City of Port Moody, City of Port Coquitlam and the City of Coquitlam only 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. Express authorizations: Taxi Camera Equipment: (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. A digital taxi camera must be installed and operated in each of the licence holder s vehicles in accordance with applicable rules and orders of the Passenger Transportation Board. 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. 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. Eco-friendly taxis: Any additional conventional taxis approved for this licence on or after June 11, 2007 and for which a passenger transportation identifier is issued, must Page 14 Taxi Decision Passenger Transportation Board

15 Transfer of a licence: 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. 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 15 Taxi Decision Passenger Transportation Board