Licence Application Decision

Transcription

1 Licence Application Decision (Taxi - New) Application # Applicant Pacific Coast Co-Op Taxi (Co-operative Association) Trade Name (s) Pacific Coast Co-Op Taxi Principals GREWAL, Surinder Singh KLAIR, Purshottam MAHMOOD, Mahmood S. MORROW, Ajitpal S RASOOL, Malik Akhtar THIARA, Satnam S. Address Current Licence Application Summary MALHAN, Satnam Singh PO Box Fraser RPO, Vancouver BC V5W 4B5 None Special Authorization: Passenger Directed Vehicles New taxi service in Vancouver with 99 vehicles. All will be conventional taxis. Vehicles may only operate in Vancouver on Friday and Saturday from 3 p.m. to 6 a.m. or special occasion days as approved in advance by the Board. Rates Related Applications: (for cross reference only) Metered rates as set by the Board Rule Respecting Lower Mainland Taxicab Rates 83 individuals - E-Weekend Cabs- 3 p.m. - 5 a.m. Friday, Saturday and other special days. Each applicant, a member of the Pacific Coast Drivers Association, applied for 1 vehicle. ANSARI, Abu Taher TAJ Weekend Taxi 3 pm 5 am Friday and Saturday, and Sunday when the following Monday is a statutory holiday. Application is for 1 vehicle. AULAKH, Fatehbir S - Blue Tech Weekend Cab - 3 p.m.- 5 a.m. Friday, Saturday and special days as approved by the Board. Application is for 1 vehicle. Page 1 Passenger Transportation Board Decision

2 CHAUDHRY, Irfan Ahmed - Taxi Driver - 3 p.m.- 5 a.m. Friday, Saturday and special days as approved by the Board. Application is for 1 vehicle. Publication Date August 29, 2012 CHERE, Amit - Downtown Taxi - 3 p.m. - 6 a.m. Friday, Saturday and specified holidays. Application is for 1 vehicle. Submissions Received Pacific Coast Drivers Association BC Taxi Association TYAGI, Anupam GHAFOOR, Abdul Black Top Cabs Ltd. MacLure s Cabs (1984) Ltd. Vancouver Taxi Ltd. Yellow Cab Company Ltd. Aldergrove-Langley Taxi Ltd. Queen City Taxi Ltd. Burnaby Select Metrotown Taxi Ltd. Delta Sunshine Taxi (1972) Ltd. Kimber Cabs Ltd. Guildford Cab (1993) Ltd. Bonny s Taxi Ltd. Surdell Kennedy Taxi Ltd. Port Coquitlam Taxi Ltd. Bel-Air Taxi (1972) Ltd. Royal City Taxi Ltd. Tsawwassen Taxi Ltd. White Rock South Surrey Taxi Ltd. Coquitlam Taxi (1977) Ltd Newton Whalley Hi Way Taxi Ltd. Sunshine Cabs Ltd. North Shore Taxi (1966) Ltd. City of Vancouver Board Decision The special authorization is refused. Decision Date March 21, 2013 Panel Chair Don Zurowski Panel Member (s) Brenda Brown Page 2 Taxi Decision Passenger Transportation Board

3 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. II. Background Pacific Coast Co-Op Taxi, a co-operative association, is applying for a special authorization to operate a new peak period taxi service in the City of Vancouver. It seeks to operate 99 conventional taxis on Friday and Saturday evenings from 3 p.m. to 6 a.m., and other special occasion days as determined by the Board. The Board received application on August 23, It was published in the Board s Weekly Bulletin on August 29, This application included a detailed business plan with a financial plan and forecasts, market analysis and marketing strategy, service description, condensed operating plan, disclosure of passenger transportation ownership and disclosure of unlawful activity and bankruptcy. Page 3 Taxi Decision Passenger Transportation Board

4 III. Related Applications and Procedure The Board has a number of related applications before it. These applications are from drivers or drivers organizations who want to provide taxi service in Vancouver in the evenings on weekends and other high demand days. We will refer to these as applications for peak period taxi service in Vancouver. Pursuant to section 14 of the Passenger Transportation Act, the Board is considering these applications one immediately after the other. The 83 applications from members of the Pacific Coast Drivers Association will be combined and conducted at the same time. This is necessary because all 83 applicants provided common evidence of public need and other common documents. Therefore, the Board will be issuing 6 decisions. Details of the applications are as set out in Chart 1 below. Chart 1 Application Applicant Description Published Number in Weekly Bulletin Pacific Coast Co-Op Number of Applications: 1 29-Aug-12 Taxi - Vehicles: 99 Days & Times of Operation: 3 p.m-6 a.m. Closed for submissions 13-Sept CHERE, Amit - Downtown Taxi Friday/Saturday and Saturday/Sunday and other special days as approved by the Board Number of Applications: 1 Vehicles: 1 Days & Times of Operation: 3 p.m-6 a.m. 29-Aug Sept -12 Between and Pacific Coast Drivers Association - E- Weekend Cab Friday/Saturday and Saturday/Sunday and any Sunday/Monday where the Monday is a statutory holiday; Halloween night, New Year s Eve, St. Patrick s Day and Easter Sunday. Number of Applications: 83 Vehicles: 1 per applicant Days & Times of Operation: 3 p.m-5 a.m. 29-Aug-12 (1st set) 03-Oct-12 (2nd set) 18-Oct-12 Friday/Saturday and Saturday/Sunday black and red days at the cruise ship terminals and other special occasion days. Page 4 Taxi Decision Passenger Transportation Board

5 CHAUDHRY, Irfan Ahmed IAN Weekend Taxi Number of Applications: 1 Vehicles: 1 17-Oct-12 1-Nov-12 Days & Times of Operation: 3 p.m-5 a.m AULAKH, Fatehbir S - Blue Tech Weekend Cab Friday/Saturday and Saturday/Sunday and special days as approved by the Board. Number of Applications: 1 Vehicles: 1 24-Oct-12 8-Nov-12 Days & Times of Operation: 3 p.m-5 a.m ANSARI, Abu Taher - TAJ Weekend Cab Friday/Saturday and Saturday/Sunday and other special days as approved by the Board. Number of Applications: 1 Vehicles: 1 14-Nov Nov-12 Days & Times of Operation: 3 p.m-5 a.m. Friday/Saturday and Saturday/Sunday and any Sunday/Monday where the Monday is a statutory holiday. IV. Submissions and Applicant s Reply Twenty-six entities made submissions on this application. The Board gives more weight to submissions that back up general claims with facts or details. All submissions were sent to the applicant who replied. We have considered these submissions and the applicant s reply. The following outlines the submissions received and the applicant s response. With the exception of the submissions from the City of Vancouver, all were received prior to the Board release of its Licence Application Decisions on Peak Period Taxi Service in the City of Vancouver in October, 2012 Pacific Coast Drivers Association Most members of Pacific Coast Drivers Association (PCDA) were among the founding members of Pacific Coast Co-Op, which was established as an advocacy platform to address the rights and working conditions of taxi drivers. It was agreed that if there existed a need for more cabs in the future, applications would be made in the name of Page 5 Taxi Decision Passenger Transportation Board

6 drivers. The goal was to put an end to the selling licenses (identifiers/plates) for $600,000 to $830,000. The Pacific Coast Co-Op Taxi has operated contrary to its founding principles and adopted the pattern of existing companies. Hence, the PCDA members discontinued their association with the Co-Op and founded PCDA, whose members have filed individual applications for peak period taxi service in the City of Vancouver. The Co-Op s departure from its founding principles, as well issues in administration, mean that the Co-Op is not fit and proper to operate the taxi. GHAFOOR, Abdul Abdul Ghafoor made a submission through Jonathon T. Reilly, English Bay Law Corporation. He claims that he has submitted an application, fees and share capital to the Co-op. However, the Co-op has not admitted him to membership. Abdul Ghafoor questions the fitness of the Pacific Coast Co-op Taxi. TYAGI, Anupam The applicant is in clear violation/deviation from the concept by which this Co-Op movement was initially initiated by the drivers, who never owned any taxi and are exploited by taxi companies. Pacific Coast Co-Op Taxi is not representative of the taxi drivers community. Pacific Coast Co-Op Taxi members are ex-owners, directors of taxi companies. The directors of the Co-Op have unlimited power of forfeiture of shares and they can sell those shares to anyone, so they not different than the existing taxi companies. Page 6 Taxi Decision Passenger Transportation Board

7 Anupam Tyagi further submits that there is public need for more taxi but not for full time in weekdays there is not enough business from present taxis, but on weekend nights and after big events even 150 more taxi cannot solve the problem of shortage of taxis. Black Top Cabs Ltd.; MacLure s Cabs (1984) Ltd.; Vancouver Taxi Ltd.; Yellow Cab Company Ltd. (Vancouver taxi companies) The 4 Vancouver taxi companies submitted a common submission on September 11, 2012 through their counsel, Tobin Robbins of Heenan Blaikie LLP. This submission applied to the following applications: CHERE, Amit for 1 vehicle, the Pacific Coast Drivers Association applications for a total of 83 vehicles and the Pacific Coast Co-Op Taxi application for 99 vehicles. The submissions outlined the history and timing of the 4 Vancouver taxi companies Temporary Operating Permits; provided an extensive background of the Vancouver taxi and suburban taxi applications; as well as detailed findings from Dr. Chow s report. Professor Chow has identified an additional need. The 4 Vancouver companies should be able to make their plan permanent. The submitters question whether the applicant has the financial and managerial experience. They conclude that sound economic conditions would not be met by fostering part-time taxi businesses in Vancouver. Aldergrove-Langley Taxi Ltd.; Queen City Taxi Ltd.; Burnaby Select Metrotown Taxi Ltd.; Delta Sunshine Taxi (1972) Ltd.; Kimber Cabs Ltd.; Guildford Cab (1993) Ltd.; Bonny s Taxi Ltd.; Surdell Kennedy Taxi Ltd.; Port Coquitlam Taxi Ltd.; Bel-Air Taxi (1982) Ltd.; Royal City Taxi Ltd.; Tsawwassen Taxi Ltd.; White Rock South Surrey Taxi Ltd.; Coquitlam Taxi (1977) Ltd.; Newton Whalley Hi Way Taxi Ltd.; Sunshine Cabs Ltd.; North Shore Taxi (suburban taxi companies) This common submission, dated September 13, 2012, is taken as separate submissions from each of the 17 companies. At the time of these submissions, the Vancouver taxi companies were operating 65 peak period taxis under Temporary Operating Permits in the City of Vancouver. Page 7 Taxi Decision Passenger Transportation Board

8 The applications of the 17 suburban taxi companies and 4 Vancouver taxi companies need to be decided before multiple other applications are considered. The approach must be to decide long pending applications. If new applications for similar authority can continually be received and a decision continually deferred, an impossible administrative situation develops. If applications for similar authority are made within some reasonable narrow timeline, there is precedent for applications being considered together. This is not the situation. If there is a decision to grant permanent part time authority, there will be no further public need for additional applicants. If a capacity increase is too large, the revenue for existing taxi operators will become uneconomical and thus not contribute to sound economic conditions. The directors/members have no experience being the operator of a substantial business. BC Taxi Association The 4 Vancouver taxi companies have applied for 99 permanent part time taxis and the 17 suburban taxi companies have applied collectively for 123 taxis to expand their originating area. The applications from the suburban members must be decided before the Board can consider any later requests. Any applicant would be trying to establish a future unmet public need. Applicant s response The applicant submitted its response through its counsel, David W. Hay, Richards Buell Sutton, LLP. Counsel provided a letter to the Board dated October 1, 2012 and received on October 2, The letter responds to all the submissions except the City of Vancouver late submission (discussed below). The PT Board must make its decision on all current applications pertaining to the distribution of any licenses together based on merit and not time the application was submitted. Thus, this application must be reviewed prior to the distribution of additional licenses. Page 8 Taxi Decision Passenger Transportation Board

9 The reality is that the applicant is comprised of individuals who are on the front-lines of the taxi industry, who have a wealth of experience in the taxi industry and who have organized themselves in a manner that enable them to be considered a viable license holder. The applicant has a comprehensive business plan that overwhelmingly supports their credibility as a viable applicant. Specific to membership criteria the applicant responded as follows: The Client [submitter] along with other applicants had been given a copy of the letter dated April 28, 2012 which is attached to this submission and outlines the process for becoming a member of the Applicant. The directors of the Applicant review the applications and pursuant to Rule 9 of the Applicant s bylaws which states: (t)he directors, or a person authorized by the directors to approve applications for membership, may approve or refuse an application for membership at their sole discretion and may postpone consideration of an application for membership The directors review and decide on each application. Thus, it is within the discretion of the directors to approve or reject an applicant, and in this case, the Client s application was not reviewed and not approved because the Client failed to provide required application materials in the timeframe as established, or at all. City of Vancouver (submission received December 12, 2012) A letter was sent to the Passenger Transportation Board from the Office of the City Manager, Penny Ballem. It states: In order to maintain a viable taxi industry and improve service, an incremental approach to licensing that involves monitoring of supply and demand metrics prior to adding new licences is important. At this time there is insufficient data to justify an increase of taxi licences beyond our recently approved 99 part-time licences for Vancouver companies and the additional 38 part-time licences for the suburban companies. The City does not support any of the new applications for peak period weekend taxis. Page 9 Taxi Decision Passenger Transportation Board

10 Applicant s response This is a late submission and contains only general information without relevant facts. There is undue favoritism toward the 4 Vancouver taxi companies by the City of Vancouver. V. Reasons for the Board s Decision In this application, the Board is considering public need and sound economic conditions in the transportation industry before applicant fitness. (a) Is there a public need for the service that the applicant proposes to provide under special authorization? Applicants wanting to establish a new taxicab business should show the Board that there is a public need for a new taxi service. Applicants may show public need with the following types of information: letters from prospective passengers, signed contracts, population data community plans other relevant material The Board often finds comments written by potential passengers more useful than precompleted surveys or petitions. The Board also reviews business plans and financial statements. The applicant submits they have considered various market analyses along with their 30 years experience in the taxi industry. They conclude there is a need to add more than 20% more taxis in the Vancouver market. The applicant states in its business plan that it is basing its conclusion with regard to public need on various materials, including: Page 10 Taxi Decision Passenger Transportation Board

11 Survey: Key findings of the Pilot Program carried out by the 4 Vancouver taxi companies. The actual survey was not provided. An editorial posted on the Sightline website on August 9, 2011 This editorial states we have fewer cabs in Vancouver and we pay more. The article compares the number of cabs by population with US cities as well as fares. It claims that Vancouver has of the lowest number of taxis per capita of cities measured and the highest distance rates. Spreadsheet of strategic partners/customers One spreadsheet includes the names of businesses, contact persons and their contact information. The list includes 2 senior homes, 3 restaurant bars, 1 cinema hall, 1 travel agency and 1 convenience store. A further spread sheet with a listing 32 regular and frequent taxi users. The spread sheets are supported by approximately 40 support letters, 5 authored by the signatory and the balance are different versions of a form letter. All of the letters are signed with contact information and the majority is dated with the dates ranging from late February to early March The letters indicate the signatories would use the proposed taxi service because of price details, service, courteous, happy and stress free drivers. Cumulatively, the applicant s evidence of public need was not convincing. The applicant concluded that Survey: Pilot program carried out in Vancouver by the top 4 taxi companies (which is the Chow report) was a factor in its conclusion that there is a need to add more than 20% of the current carrier fleet size operational in the Vancouver market. Pacific Coast Co-op Taxi did not explain how the survey supported their conclusions. The Board did not find the applicant s standalone reference to a third party Survey useful in demonstrating need for more taxis. The Sightline article editorial does not give consideration to other influences on taxi supply such as the effectiveness of public transit systems, population density of a Page 11 Taxi Decision Passenger Transportation Board

12 community, pedestrian friendliness, climate, etc. The Board did not find the article useful in demonstrating need for more taxis. The applicant s inclusion of spreadsheets of strategic partners and customers and form letters was of little value in establishing need for more taxis. This is in part because the spreadsheet and support letters were collected in February and March 2012, prior to the Board s approval of 72 additional taxis for the Downtown Vancouver Entertainment District. Additionally and importantly, approximately 35 of the 40 letters supporting this application are generic form letters. These letters do not give the Board specific information about when and how often people who signed the form letters would use the service. The applicant emphasizes that although 65 TOP taxis were operating when this support material was collected, there still was a demonstrated shortage of taxis on weekend evenings and special days. The Board has recognized that more than 65 additional taxis are required to serve the Vancouver Downtown Entertainment District. In the Board s Licence Application Decisions on Peak Period Taxi Service in the City of Vancouver, October 2, 2012 (the omnibus decision ) the Board found that 137 vehicles would address peak period taxi demand on weekends in the Downtown Vancouver Entertainment District. Public need for peak period taxis was addressed in the omnibus decision, which includes Board decisions on 21 applications relating to peak period taxi service in the City of Vancouver. These applications predated the current application and were from 4 Vancouver taxi companies and 17 other taxi companies ( suburban taxi companies ) in the Greater Vancouver Regional District. Sixteen of these suburban taxi applications were published in July Since April 2011, the 4 Vancouver taxi companies had been operating 65 additional vehicles under Temporary Operating Permits (TOPs) and in February 2012 they applied collectively for 99 additional vehicles. The Board conducted proceedings for these 21 applications at the same time. These applications were well underway at the time that the Pacific Coast Coop Taxi Association application was published. Page 12 Taxi Decision Passenger Transportation Board

13 The approvals for the 137 vehicles were as follows: 38 vehicles from 7 existing suburban taxi fleets may be allocated to the Downtown Vancouver Entertainment District on Friday/Saturday and Saturday/Sunday from 10 p.m. to 5 a.m. 99 additional identifiers were approved for the 4 Vancouver taxi companies. These taxis may operate in the City of Vancouver on Friday/Saturday and Saturday/Sunday from 3 p.m. to 6 a.m. The Vancouver taxi companies may also use their 99 additional vehicles on heavy traffic days at cruise ship terminals, Celebration of Light and other special occasion or event days as approved by the Board. In making its decision, the Board gave consideration to the Peak Demand and Supply of Taxis in Vancouver s Downtown Entertainment District: Final Report, Garland Chow, February 27, 2012 (the Chow Report ), commissioned by the 4 Vancouver taxi. The Chow Report provided empirical evidence of demand for taxis on weekends in Downtown Vancouver. Dr. Chow recommended that between 100 and 154 more taxis could be added to service the downtown core on weekend evenings. When the omnibus decisions are fully implemented there will 137 peak period taxis available to serve the Downtown Vancouver Entertainment District. This is 72 more taxis than are operating now under TOPS. As a result of the Board s omnibus decisions, the potential supply of peak period weekend taxis has increased by over 23%. Furthermore, 99 peak period taxis will be available to provide service on other high demand days. In light of this, as well as the limited evidence supplied by the applicant, there is no compelling evidence before the Board to justify a further increase in peak period taxi supply in the City of Vancouver. For the reasons outlined above, the Board finds that, at this time, there is no public need for the peak period taxi service the applicant is proposing. Page 13 Taxi Decision Passenger Transportation Board

14 (b) Would the application, if granted, promote sound economic conditions in the passenger transportation business in British Columbia? The Board looks at how additional taxis could affect taxi service in an area. An application will not be refused just because other taxi companies have a licence. The overall health and quality of taxi services is more important than the interests of one taxi company. Some submitters expressed concern about adding more taxi licences until 137 weekend taxis are operational and their impact assessed. The Board finds these concerns relevant. To maintain a viable taxi industry and improve service, supply and demand requires monitoring. It would not benefit drivers or companies if there were an over-supply of taxis. The market and taxi industry need time to absorb the additional capacity currently approved for the downtown Vancouver entertainment district once all vehicles are put into service. At this time, approving the application of Pacific Coast Coop Taxi to operate peak period taxis in the City of Vancouver would not promote sound economic conditions in the transportation business. (c) 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 Board reviews the conduct of an applicant and the structure of the existing or proposed 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? Page 14 Taxi Decision Passenger Transportation Board

15 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. As the requirements for public need and sound economic conditions have not been met, the Board has not made any determination on the applicant s fitness. VI. Conclusion For the reasons outlined above, this application is refused. Page 15 Taxi Decision Passenger Transportation Board