Licence Application Decision

Transcription

1 Licence Application Decision (Taxi - New) Application # Applicant BC Brand Builders Inc. Trade Name (s) Principals Address Current Licence Peachland Taxi TISSING, Mark TISSING, Shokou 1593 Ellis Street, Kelowna, BC V1Y 2A7 None Application Summary Date Published in Weekly Bulletin Submitters (and representatives) Special Authorization: PDV New taxi service in the District of Peachland with 2 vehicles. All vehicles will be conventional taxis Rates Metered rates and Point to Point rates July 27, 2016 Kelowna Cabs Ltd. BC Taxi Association Board Decision The special authorization is approved. Terms and conditions of licence are approved as set out in this decision. Rates sought by the applicant are approved as set out in the application summary. Decision Date September 21, 2016 Panel Chair William Bell I. Introduction Authorization: Passenger Directed Vehicles. The applicant primarily proposes to provide a taxi service in Peachland, B.C. that would charge metered rates. The applicant also proposes to operate at point-to-point rates for a number of transfer services including airports, hospitals, the Orchard Park Mall and Mission Hill Winery. The fleet size would consist of 2 vehicles: a 7 passenger minivan and a Hybrid 4x4 Ford Escape or other hybrid type of vehicle, with a seating capacity that accommodates a driver and between 2 and 7 passengers. The applicant is also requesting return and reverse trip authority. If approved, Page 1 Passenger Transportation Board Decision

2 the applicant would charge metered rates at a higher flag and distance rate than that which is pursuant to the Board Rule Respecting Kelowna Taxicab. II. Background The applicant, BC Brand Builders Inc. (BBBI) was incorporated on July 20, 2012 and its owners Mr. Mark Tissing and Ms. Shokou Tissing (also known as Shokou Najaf Nejad) will operate the proposed taxi service doing business as Peachland Taxi. Peachland Taxi will operate from a home office in Peachland using a toll free number that will route the calls through cell phones used by its drivers. The applicant indicates that BBBI will operate Peachland Taxi as a taxi service 6 days per week: Sunday-Thursday from 10:00 a.m. 10:00 p.m. and Friday and Saturday 10:00 a.m.- 2:00 a.m. It also plans to serve secondary and other markets involving wineries and delivery services. In support of this application, the applicant provided the following documents. PDV vehicle proposal Public Need Indicators Service Area Municipal Notices Proposed Rates & Rules Disclosure of Unlawful Activity and Bankruptcy form Public Explanation Declaration Condensed Operating Plan Business Plan Financial Information Declarations Form 17 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: Page 2 Taxi Decision Passenger Transportation Board

3 (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 The applicant reports there is currently no dedicated or local cab company in Peachland with a population of 5,200 people. There are no dedicated taxis stationed to serve Peachland residents and tourists. The taxi companies that do serve the area are from West Kelowna and Kelowna and there is reluctance to service the area because of its relative distance from the core market. As a result, Peachland area residents experience long wait times. In addition, Peachland has a higher percentage of its population aged 65 and over when compared with the national and B.C. averages and this aging demographic is in need of transportation options. Further, BC Transit operates a very limited route and schedule in Peachland. (b) Submissions & Applicant s Response There were 2 submissions on this application from the following: The Kelowna Cabs Group (KCG) including Kelowna Cabs (1981) Ltd., Classy cab Corporation; Trendtham Group Enterprises Inc., Lake Country Taxi Ltd., and Westside Taxi 1998 Inc. BC Taxi Association (BCTA) Page 3 Taxi Decision Passenger Transportation Board

4 The KCG submitted the following: In recent years, the company has been providing service to the residents of the Peachland area and it has stationed vehicles in West Kelowna for the majority of the day and always sends them to Peachland in the rare instance that someone calls for a taxi. The wait times for trips to Peachland are about 15 minutes and are only 5 minutes off of the general wait time in the West Kelowna area. Statistical report for 4 days (Friday July 29, 2016 to Monday August 1, 2016) from Zone 340 (Peachland and a small part of West Kelowna) included total service times, trip volumes that ranged from 0.55% to 1.84% of total trip volumes and average service times of between approximately 14.5 and 23 minutes. The submission states we believe that the values in this report are indicative that there is not quite enough demand for full service of Peachland. In response, the applicant submitted the following: The indication that there is only 5 minutes difference between wait times in West Kelowna and Peachland is of a surprise as the minimum travel time between the southern end of West Kelowna and Peachland is 11 minutes. The submission clearly notes that there is no full taxi service in Peachland. A review of the submitter s website and other material (e.g. Yellow Pages, Google), the absence of cards at bars and B&Bs in Peachland and other advertisements of taxi service indicates it is not the intention of KCG to attract business in Peachland. It does not service the Peachland market in a serious way. The applicant s market research and support letters show a situation that supports a public need. Similar communities like Peachland have a healthy taxi business such as Summerland (pop. 11,280) with 4 taxis and Naramata (pop. 2,000) with 1 taxi. Peachland s population is big enough to sustain a new local business. Page 4 Taxi Decision Passenger Transportation Board

5 The BCTA submits: Taxis in the region are providing taxi services in a timely fashion. The population of Peachland as advised by an official there is projected to decline. Flooding the market with additional taxis will have a negative impact and not promote sound economic conditions. In response, the applicant submitted the following: Discussions with officials indicate that although new census data will not be available until 2017, they assured the applicant that a recent study (references included) by the Ministry of Transportation and Infrastructure (MOTI) suggests a future population of between 7,700 and 13,000 people and at least a 1,000 people within the next 4-5 years based on local projects. Taxis focused on West Kelowna have a hard time taking fares within Peachland that take them minutes/15-25 KM until the meter is activated for a $12 fare within Peachland. The new service out of Peachland could lead to extra demand and more taxi business for those serving West Kelowna and Kelowna. 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 for the Board s Decision (a) Is there a public need for the service that the applicant proposes to provide under special authorization? Applicants should supply information that is factual and objective to demonstrate public need. They should demonstrate that there are people who would use the service. Applicants should explain why they are applying for a specific number of vehicles. The Page 5 Taxi Decision Passenger Transportation Board

6 Board wants to be satisfied that there is a reasonable connection between the number and types of vehicles requested and public need. The applicant outlined the local market of The District of Peachland with over 5,200 residents and increases in the summer period. The area s flourishing tourism industry is served by restaurants, bars and bed and breakfasts. Current commercial/residential development projects will add 1,000-2,000 homes to Peachland. The applicant reports there is no dedicated or local cab company in Peachland and contends the people there do not consider it to have one and that the average wait time for taxi services from West Kelowna or Kelowna is too long to satisfy customers. The applicant submitted a variety of evidence and information to support its claim of public need. These included the following: Population/Demographic Data The applicant provided 2011 Census data from StatsCan that verified population and age distribution in Peachland that shows people 65 yrs old and above is greater at 28.3% than compared with the B.C. average at 14.9% and a StatsCan graph that shows if current population trends continue seniors will outnumber children in Canada by a factor of 3 to 2 in 20 years time. Other Data Data from a 2013 Okanagan Travel Survey shows the distinct need for travel by car in Peachland, the hills do not allow for walking as a viable option. We can also see that the use of BC Transit=50% lower in Peachland vs Kelowna. During the course of reviewing this application staff, at my request, verified the booking requirements needed for handydart type services out of Peachland that require transfers in the Westside for trips to Kelowna. Support Letters There were 72 support letters received. Four (4) of these were individually written and came from the Mayor of Peachland, the Peachland Chamber of Commerce, the Peachland Page 6 Taxi Decision Passenger Transportation Board

7 District Retirement Society and a local business outlet. These letters strongly endorsed a new taxi service and highlighted the local service would support a growing community including seniors, who are unable or unwilling to drive, but also those requiring safe drives from bars and restaurants and service for local businesses and tourists. One business noted wait times of up to 3 hours for its customers. Another 60 letters were written on a blank one page letter formulated by the applicant. These letters came from residents, businesses and other organizations in the Peachland area, who were asked to provide a letter of support in their own words. Before doing so they were asked to ensure and were provided space to record their name, address and phone number. They were also asked to indicate how often they would use the service. The thematic highlights of these letters included the challenges of seniors getting around, limited transit options in the area, long wait times for taxi service that is sporadic and the need for a safe driving alternative for residents and visitors. A majority of the respondents indicated a frequent use of a local taxi service. Questionnaire (Printed Offline and Online) 30 questionnaires (1 page in length) were completed offline and online representing different local residents (1 of these had also provided a support letter as well). They provided their name, address and phone number. The questionnaire outlined the need for support regarding a new local taxi company in Peachland. It provided a disclaimer advising the respondents the information would be disclosed to the Board and may be treated as a public document. The questions included those regarding why, when and how often a new local taxi service would be used; the current use of other taxi services and wait times; expectations from a new local taxi service; preference of vehicle type and why, and experience with local bus service. Most indicated they needed the service for safe driving purposes when at bars, restaurants or visiting friends and airport services; others indicated use related to seniors, underage school children and airport transfers. A majority commented on the poor service from West Kelowna and Kelowna taxi companies who they claim have no interest serving Peachland and that the wait times are generally very long. Some indicated wait times of up to 1 hour especially on weekends as well as refusals. The respondents indicated a regular use of a new local taxi service; one that would be more reliable and prompt and that would use and accommodate multiple passengers and luggage. Several mentioned the challenges Page 7 Taxi Decision Passenger Transportation Board

8 of using the local bus service that has poor scheduling and pick up times, limited routing and no late night service. Petition A petition was titled Peachland Taxi It would be good for Peachland and its inhabitants to have a local taxi company. Respondents were asked to provide a name, signature and were asked to fill in a section with the header I would use this service xx times a month. The applicant indicates it gathered signatures on Sunday June 12 in downtown Peachland. The petition totaled 460 names and 164 (36%) of these respondents indicated some monthly use. Respondents printed their names and included a signature. The petition provided no address of the respondents. Facebook The applicant created a Facebook page where he invited/requested people to send in their needs and expectations. The applicant claims he provided a clear warning to all those on the page advising them that the information is being disclosed to the Board as part of its consideration of a specific application and may be treated as public information. The applicant reports it received over 100 Likes and provided 36 that posted comments. The comments in the main appear to identify the authors as residents of Peachland. The concerns speak to Peachland with its population base requiring its own taxi service, the service needs for seniors and others that don t drive and the need for taxi service to prevent drinking and driving, etc. Board Analysis and Findings I assigned considerable weight to the letters of support in demonstrating a public need for taxis in Peachland. They present a common theme of various needs for a local taxi service and long wait times for taxis coming from current taxi providers in West Kelowna and Kelowna. The letters came from a cross-section of municipal organizations, businesses and residents that report serious service issues and the difficulty in receiving adequate taxi service in Peachland or outside of its boundaries. These demonstrate that a public need exists for a local taxi service in Peachland. The questionnaires, while not as reliable, helped to corroborate this finding. Page 8 Taxi Decision Passenger Transportation Board

9 Other evidence concerning demographics and BC Transit services at Peachland was also assigned some weight respecting the demand for a local taxi service and a quantification of need. I accorded the petition little weight. While it provides some indication of future use by people, it provided no details as to the actual domicile or experience of the respondents with current taxi service in Peachland. It does not provide verifiable evidence of public need. I accorded the Facebook (social media) evidence some weight as the material was solicited by the applicant with a disclaimer in accordance with the Board s policy on Submitting Social Media Information. While names were identified in each media post there was no contact information that would allow follow-up. The text of the posts, however, indicates they are from predominately local residents in Peachland and corroborate other evidence and also provide some quantification of public need. I also considered the submitters arguments about the lack of public need for a new taxi service in Peachland and did not find it compelling. The selected data supplied by the submitter taxi companies was very limited in scope (4 days) and lacked multi-year comparisons to demonstrate volumes or trends concerning demand and wait times for their existing taxi service provided at Peachland. The data provided did not help to validate that current taxi services at Peachland are responsive to meet the public need. I find that the applicant has sufficiently demonstrated that there is a public need for the new taxi service proposed to serve the Peachland market. There is adequate support for the need and use of the proposed service. Other taxi companies have authorization to pick up passengers in Peachland but none are actively based in Peachland (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? Page 9 Taxi Decision Passenger Transportation Board

10 The fit and proper test relates to such matters as the conduct and character of an applicant and whether the applicant s proposed operations are structured or organized in such a way that the applicant will be able to meet its obligations as set out in the Passenger Transportation Act and Regulations. It also includes the requirement to keep care and control over the operations conducted under the licence and to ensure that vehicles are operated properly by the drivers with respect to the regulations. The second part of the fitness test involves information and evidence that demonstrates the applicant has the capability to manage the proposed service. Business plans and financial statements are often a main source of this information. Indicators that may guide the Board in making its decision include whether the applicant has the experience and transferable skills to manage the proposed service, whether the applicant shows understanding of what is needed to manage the proposed service, and whether the applicant has the resources to sustain operations throughout the implementation phase and to continue after becoming fully operational. Peachland Taxi will be operated by Mr. Mark Tissing and Ms. Shokou Tissing, who are the 2 principals of BBBI. Mr. Tissing has a background in the hospitality industry and has numerous years of experience in a managerial capacity with the pharmaceutical industry as well as building new business. He and his wife have established a wine marketing and wholesale business in California. He is a graduate with a Law Degree from the University of Groningen in Holland. Mr. Tissing, as President, will manage the day to day operations and along with his wife and part-time drivers handle the taxi shifts proposed for the new taxi service. Ms. Tissing, who has a background in nursing and managing the current business, will also be in charge of marketing, sales and finances. The services of a bookkeeper and an accountant will be used as well. The Unlawful Activity & Bankruptcy form signed by the principals indicates no discrepancies. BBBI s current NSC safety rating is Satisfactory-Unaudited. The applicant signed the Liquor Control & Licensing Act declaration stating that it will operate its vehicles in accordance with that Act. The application included a comprehensive business plan with an executive summary and information on organizational structure, an operational plan, company policies, market Page 10 Taxi Decision Passenger Transportation Board

11 competition, local demographic, transportation and economic research, marketing and service delivery plans, risk management, operational and financial plans. The applicant proposes to operate the service by purchasing and using at start-up a 7 passenger Dodge Grand Caravan that can cover requests for higher volumes of passengers. The second vehicle once market conditions dictate will be a hybrid 4x4 or other hybrid type of vehicle. The Business Plan reflected a good knowledge and understanding of regulatory requirements to set up and operate the proposed business. The applicant provided details regarding its hiring and training of drivers and procedures regarding customer services, trip logs, vehicle inspection and maintenance. The applicant plans to collect data enabling it to report trip volumes, passenger wait times and vehicles on shift in the event additional vehicles are required in the future. The applicant provided financial information with start-up costs and projected cash flows for the period October 2016 to September 2018 as well as a personal net worth statement. The assumptions of the projected cash flow revenues were outlined in detail and appear realistic. I find the applicant to be a fit and proper person to provide the service applied for and to be capable of providing that service. (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. Although some taxi companies based in Kelowna are authorized to pick up in Peachland, none are actively based there. The applicant seeks to fill the service vacuum presented there. Taking into consideration the evidence and information presented of current conditions, I find the residents of the proposed taxi service in Peachland deserve the option of a locally-based taxi service. Overall, I find that the application, if granted, would promote sound economic conditions in the passenger transportation business in British Columbia. Page 11 Taxi Decision Passenger Transportation Board

12 VI. Rates The rates are approved as set out in the application summary. I note that these meter rates are higher than the uniform rates set by the Board Rule Respecting Kelowna Taxicab Rates that apply to 8 operators in nearby Kelowna. The rates are also at the upper normal range for Metered Taxi Rates Norms in BC for flags and distance and above the upper normal range for waiting time. The flag rate, distance rate and waiting time rates are respectively approximately 6.9%, 0.44% and 21% higher than the uniform rates. The applicant notes that given the geographic nature of the service location a high percentage of trips will be dead head trips unlike that of a city taxi. Under, the circumstances, the rates seem reasonable and justified. The applicant s proposed point-topoint rates in the application summary also appear reasonable and justified for the proposed transfer services. These provide customers with price certainty and predictability. VII. 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. I establish the rates that are attached to this decision as Appendix II. These form an integral part of the decision. Page 12 Taxi Decision Passenger Transportation Board

13 Appendix I BC Brand Builders Inc. dba Peachland Taxi 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 50% of the vehicles 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 50% of 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 Maximum Fleet Size: Vehicle Capacity (T): Service 1 Originating Area: Passenger Directed Vehicle (PDV) Terms & Conditions of Licence Vehicles 2 vehicles which are conventional taxis. The vehicle accommodates a driver and not less than 2 and not more than 7 passengers. Services Transportation of passengers may only originate from points in the District of Peachland. Destination Area: Transportation of passengers may terminate at any point in British Page 13 Taxi Decision Passenger Transportation Board

14 Return Trips: Reverse Trips: (limited) Taxi Cameras: Express authorizations: Columbia. 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. 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. 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) 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. 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. 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 14 Taxi Decision Passenger Transportation Board

15 Appendix II BC Brand Builders Inc. dba Peachland Taxi Rates Metered Rates ($) Initial flag 3.74 Additional distance (per kilometre) 2.26 Waiting time (per hour) These rates include GST Non-Metered Rates Point to Rates (one way; either direction when authorized) ($) Peachland - Penticton Regional Hospital Peachland - Kelowna General Hospital Peachland - Orchard Park Mall Peachland - Mission Hill Winery Peachland - Penticton Airport Peachland - Kelowna Airport These rates DO NOT include taxes. Rates apply to any return trips booked per return trip authority in the licence. Page 15 Taxi Decision Passenger Transportation Board