Licence Application Decision

Transcription

1 Licence Application Decision Limousine Amendment to Licence Application # Applicant Luxury Life Limousine Inc. Principals Address JHOOTY, Vikrambir 2391 McLennan Avenue, Richmond BC V6X 2N6 Current Authorization (s) Application Summary Special Authorization: Passenger Directed Vehicle Passenger. PT Licence #71969 Amendment of Licence Add seating capacity for Perimeter Seating Bus (PSB). Additional Vehicles Limousines 1 vehicle (1 12+ passengers). The new maximum fleet size would be 5 vehicles (1 12+ passengers, passengers and 3 sedans). New Rates for amended service (Section 24 of the Passenger Transportation Act) Limousine rates are set by the Board rule, Rates and Rules for Limos in Victoria, Vancouver and Surrounding Area. The Board is setting the minimum and maximum hourly rates and rules governing PSBs. Related Applications: (for cross reference only) Date Published in Weekly Bulletin Submitters (and representatives) Board Decision AV Luxury Life Limousine Inc. Additional Vehicles Limousine July 8, 2015 None The Board approves 1 additional PSB vehicle. Decision Date August 7, 2015 Panel Chair William Bell Page 1 Passenger Transportation Board Limo Decision

2 I. Introduction The applicant, Luxury Life Limousine Inc. (LLL), under PT licence #71969, has Special Authorization (SA) to operate 4 limousine vehicles. One is a stretch 6-11 passenger limousine and the others are 2 Bentley Flying Spurs and 1 Vintage Bentley. In this application LLL seeks to add 1 perimeter seating bus (PSB) using a 22 passenger Limousine Bus vehicle. Under its SA, its originating and destination areas are the Greater Vancouver Regional District (GVRD) and the Fraser Valley Regional District (FVRD). II. Background The applicant, Luxury Life Limousine Inc. (LLL), was granted its Special Authorization in August, The company reports it officially began its operation in April, 2014 with a focus on providing high-end luxury exotic vehicles for hire. The principal and sole shareholder of LLL, Vikrambir Jhooty, has also operated AAA Movies for 6 years which is a sister company that specializes in wedding and other special events videography and photography. Mr. Jhooty reports that the 2 companies annually participate in over 100 weddings and of the wedding clientele, 90% use some sort of limousine or chauffeur service. LLL recently applied to the Board and was approved to add two more limousines to its fleet a stretch SUV and a 1951 vintage Bentley sedan. See PT Board decision AV167-15, dated June 24, 2015 and published July 8, In response to a Board query, the applicant advised Board staff that it had planned on receiving a General Authorization licence for the PSB this application represents, but this was delayed due to the new regulations introduced as of May 1, 2015 concerning PSBs. As a result, it was not possible to incorporate this application with that of AV Supporting documentation included: PDV Vehicle Proposal PDV Proposed Terms and Conditions Proposed Rates Disclosures of Unlawful Activity and Bankruptcy and Passenger Transportation Ownership Page 2 Limo Decision Passenger Transportation Board

3 Condensed Operating Plan Business Plan Update Financial Statements Public Need Indicators 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. I will consider each of these points in making my decision. IV. Rationale The addition of the PSB Limo would handle the transportation needs of wedding party members outside of the bride and groom that ride in a Bentley. In the past year LLL has had countless requests for PSBs which it has had to farm out and, in many instances its affiliate companies have PSBs that are fully booked. With this vehicle it will continue to meet its clients expectations and needs. Page 3 Limo Decision Passenger Transportation Board

4 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? Limousine companies who want more vehicles are expected to prove that there is a public need for more limousines. 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 limousines in the area are not meeting the public need. LLL recently leased a 22 passenger 2006 Ford F550 Limo Bus built by Krystal Koach. This lease is in response to the high number of requests from past, present and potential clients to provide a vehicle for wedding parties of 13 or more. The advantage of adding the PSB is that it would allow passengers the ability to book transportation for their wedding with one provider versus booking a luxury or vintage vehicle with one and a PSB with another. LLL claims there are no companies currently offering both Bentleys and PSBs. LLL provided information concerning 11 PSB bookings between July 2015 and April It also included 5 inquiries for the PSB that involved various transportation needs concerning weddings and other special events and 4 support letters from affiliate limousine companies, 3 of which indicate the referral of PSB bookings to them from LLL but noting peak periods and other instances where they cannot absorb the added booking. One of the letters reports that it refers its clients to LLL for the Bentley services and will do the same for the PSB. Also included were several letters from Banquet Halls noting the requests for, need and use of a PSB. In light of the above information and recent changes to PSB licensing, I am satisfied that LLL has demonstrated a public need for the added PSB vehicle. (b) Is the applicant a fit and proper person to provide that service and is the applicant capable of providing that service? Page 4 Limo Decision Passenger Transportation Board

5 The Board looks at fitness in two parts: (i) (ii) is the applicant a fit and proper person to provide the proposed service; and is the applicant capable of providing that service? Mr. Jhooty has operated LLL since April of 2014 and its current NSC safety rating is Satisfactory-Unaudited. The disclosure forms indicate no discrepancies. The Business and Operating Plans indicate LLL has strong business partnerships and alliances and several of the support letters attest to their excellent customer service and vehicles. LLL markets its services through multiple channels including word of mouth through its sister company, magazines, web-sites and social media. Drivers undergo vigorous hands on training and are provided with a training manual. They also must have a complete criminal background check, driver abstract checks and monthly management reviews based on customer feedback. The Liquor Compliance Declarations included indicate an understanding and commitment of its accountability regarding the safe passage and handling of liquor regarding underage passengers. Financial information included Income Statements for April to December 2014 and January to June 2015 and a Balance Sheet as at June 6, The 3 year cash flow projections for provided were conservative, but realistic. I find the applicant fit, proper and capable of providing the service proposed with an added PSB vehicle. (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. Page 5 Limo Decision Passenger Transportation Board

6 There were no submitters to this application. While the proposed operating area is well populated with limousine providers, the addition of the larger PSB complements the applicant s service and provides its clients with more diversity and options. It will help establish the future growth of the company s focused niche limousine service and contribute to client satisfaction. The market should be able to absorb the additional PSB vehicle. Overall, I find that the granting of this application will promote sound economic conditions in the passenger transportation business in British Columbia. VI. Rates The Board is setting the minimum and maximum hourly rates and rules governing perimeter seating buses and are approved as set out in this decision. VII. 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. I establish the rates that are attached to this decision as Appendix II. These form an integral part of the decision. Page 6 Limo Decision Passenger Transportation Board

7 Appendix I Luxury Life Limousine Inc. Approval of application may expire 1. The applicant must activate the 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 vehicle, 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 Special Authorization 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 the 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.) Passenger Directed Vehicle (PDV) Terms & Conditions of Licence Vehicles Maximum Fleet Size: 5 vehicles, of which: 3 must be sedan limousines 1 may only be a PSB Specialty Vehicles: Vehicle Limitations: Vehicle Capacity (SV): Vehicle Capacity (LV): (a) Sedan vehicles may only be operated if the vehicles are sedan limousines, including eco-friendly sedan limousines, as defined by Board policies or rules in effect at the time a special authorization vehicle identifier is issued by the Registrar of Passenger Transportation for the vehicle. (b) Classic (antique) sedan: must be more than 30 years old 2 vehicles must be Bentley (make) Flying Spur (model); 1 must be an antique Bentley sedan. Sedan limousines must accommodate a driver and not less than 4 and not more than 5 passengers. A driver and not less than 6 and not more than 11 passengers. Page 7 Limo Decision Passenger Transportation Board

8 Vehicle Capacity (PSB): Service 1: Originating Area: Destination Area: Transfer of a licence: Liquor Control & Licensing Act: A driver and 12 passengers or more. Transportation of passengers may only originate from any point in Greater Vancouver Regional District or Fraser Valley Regional District. Transportation of passengers may terminate at any point in Greater Vancouver Regional District or Fraser Valley Regional District. 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. The licensee must at all times operate its passenger directed vehicles in compliance with the Liquor Control & Licensing Act. Page 8 Limo Decision Passenger Transportation Board

9 Appendix II Luxury Life Limousine Inc. Rates: The following rates set by the PT Board apply: PSBs that can carry up to 16 passengers, plus driver: Minimum: $150 per hour Maximum: $240 per hour PSBs that can carry 17 or more passengers, plus driver: Minimum: $175 per hour Maximum: unlimited Discounts of up to 15% may be offered on the rates set out above. Page 9 Limo Decision Passenger Transportation Board