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SunLine Regulatory Administration

SunLine Regulatory Administration. Taxi Service in Southern California’s Coachella Valley: From Independent Taxicab Operations to Franchises. The Starting Point. In April 2007 SunLine Services Group Board commissioned study of taxicab industry Status of industry at that time

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SunLine Regulatory Administration

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  1. SunLine Regulatory Administration Taxi Service in Southern California’s Coachella Valley: From Independent Taxicab Operations to Franchises

  2. The Starting Point • In April 2007 SunLine Services Group Board commissioned study of taxicab industry • Status of industry at that time • 22 Cab Companies • 247 vehicles on the road • Approximately 46,000 rides in the Valley • Approximately 300 taxicab drivers

  3. A Picture of the Cab Industry

  4. Study recommended: • Stop all additions of new taxicabs. • Enforce vehicle age limit of no more than 7 model years. • Minimum of 5 vehicles owned by the taxicab company. • Require operating business address and 24/7 dispatching from the facility.

  5. Study recommended (Cont’d) • Require all taxis to be insured through and by the taxi company policy. • Increase regulatory staff by one. • Require English and local geographic street proficiency.

  6. New Application Process - 2007 • Approval of new applications and permits as condition to operate in the Coachella Valley. • The changes: • Reduced from 22 to 17 Cab companies. • Reduced from 247 to 172 taxicab vehicles on the road.

  7. Modified application process -2008 • Changed ordinance to allow transfer of taxi assets • Other changes: • 6 cab companies transfer assets to new applicant • Resulting in 12 cab companies, 176 taxicabs • Operator Permit granted to new applicant • The “new” company starts January 2008

  8. The Franchise Process • March 2009 - RFP for franchise taxicab service • Key criteria for the proposers: • Airport Automated Vehicle Identification (AVI) fee. • Vehicle Permit Fee. • Driver background checks & permit fee. • Vehicle inspection.

  9. Franchise Process (Cont’d) • Taxicab recalibration fee. • Meter and flag drop rate adjustments. • Proposer site visit. • Proposal requirements and franchise terms. • Review and adjustment of authorized number of vehicles.

  10. Start Up Standards • Vehicles, taxicab drivers, dispatching and customer care complaint procedures. • Record keeping and reporting. • Average minimum trips per day. • Taxi franchise identification requirements.

  11. The Evaluation Process • Evaluation Criteria • Insurance and Indemnification. • Proposer experience. • Financial stability. • Quality and coverage of service.

  12. Performance Standards • To ensure responsibility and accountability established monthly performance standards: • Clean and alternative fuels. • Accessible vehicles. • Customer request for service, receipt to pick up. • Clean and orderly taxicabs and drivers.

  13. The 4 Franchises Four franchises were selected. Classic Yellow Cab – awarded 50 taxicab permits. Yellow Cab of the Desert – awarded 40 taxicab permits. American Cab – awarded 45 taxicab permits. Airport Taxi – awarded 45 taxicab permits.

  14. Benefits of Franchise • Easier oversight for regulatory compliance • Improved communication and coordination between SRA and Franchise principles

  15. Questions to Ask and Answer • As a self funded Regulatory Agency, can taxi administrative operations continue based on revenue from remaining taxi franchises? • Does reduction in number of franchises sustain market competitiveness and provide adequate customer choice? • In the event a franchise goes out of business can service area taxi operations continue with little or no impact to the passenger public? • How quickly can service be increased consistent with increased demand?

  16. Lessons Learned • Financial stability of proposed taxicab franchise is key to a solid startup • Franchise Agreement should be in concert with RFP • New ordinance & regulation in place prior to implementation of franchise startup. • A contingency plan should a franchise cease to operate within the designated time frame • Defined compliance period for start up. No award unless in compliance

  17. Lessons Learned (continued) • Non award of franchise if failure to meet start up compliance • Minimum quarterly franchise meetings with regulatory authority

  18. Contact Information • C. Mikel Oglesby, General Manager • Naomi Nightingale, Director, Taxicab Administration • Michael Jones, Manager, Taxi Administration 32505 Harry Oliver Trail Thousand Palms, CA 92276 Phone: 760-343-3456, Ext. 163

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