Licence Application Decision

Transcription

1 Licence Application Amendment to Licence Application # Applicant Whistler Resort Cabs Ltd. Trade Name (s) Resort Cabs Principals PARHAR, Salindar Singh PARMAR, Navdeep Singh Address Lake Placid Road, Whistler BC V0N AB2 Current Licence Special Authorization licence (copy attached) Application Summary Date Published in Weekly Bulletin Submitters (and representatives) Remove requirement that Only four wheel drive or all-wheel drive passenger vans may be operated. November 6, 2013 Eric LARSEN and Teresa WHEELER Alison KEMP Whistler Group (Whistler Ltd.; Blackcomb Ltd.; Sea to Sky Ltd. (Harley Harris, Owen Bird Counsel) Board Amendments to the terms and conditions of licence are refused. Date January 3, 2014 Panel Chair Spence Mikituk I. Introduction This is an application from Whistler Resort Cabs Ltd. dba Resort Cabs (RC) located in Whistler, British Columbia, which operates under passenger transportation licence (PT 70957) and holds a Special Authorization. From October 1 to April 30 of any year, RC is licenced to operate 25 motor vehicles of which a maximum of 19 may be conventional taxis. All other vehicles are accessible taxis. From May 1 to September 30 of any year, RC is licenced to operate 15 motor vehicles of which 12 may be conventional taxis. All other vehicles are accessible taxis. RC is requesting a licence amendment to remove the requirement that Only four wheel drive (4WD) or all-wheel drive (AWD) passenger vans may be operated. Page 1

2 II. Background RC is a taxi company which is currently licensed to provide four wheel drive or all-wheel drive conventional and wheelchair accessible passenger van service in Whistler, British Columbia. RC states that they were able to obtain their licence to provide a taxi service due to severe service issues in Whistler at the time. These issues included the fact that the existing taxi company would not service many areas in Whistler when snow/ice was on the road and the fact that there were not enough taxis in town to service the existing need. Complaints to the Resort Municipality of Whistler and various town hall meetings confirmed these issues and as a result RC licence application was successful. RC states that when planning its application to establish a new taxi company in Whistler, the company made a corporate decision that the best route to take would be to operate 4WD/AWD vehicles as these types of vehicles would address both major service issues. To support its application RC has provided: PDV vehicle proposal Business plan Financial information Public need indicators Municipal Notice (Resort municipality of Whistler) Disclosure of unlawful activity and bankruptcy and passenger transportation ownership The Board did not conduct any investigations. 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 (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. Page 2

3 (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 RC would like to amend the terms and conditions of their passenger transportation licence to allow the use of non 4WD/AWD vehicles which are more fuel efficient and more economical to maintain and acquire. RC further states that there have been improvements in the technology of non-awd vehicles to handle snow and the introduction of competition has led to much improved service year round to all areas in Whistler. The applicant would still offer 4WD/AWD passenger vans in their fleet but would like to have the option to utilize smaller sedan type vehicles as well as front wheel drive vans and SUV s. (b) Submissions & Applicant s Response Whistler Ltd., Blackcomb & Limousine Ltd., Sea to Sky Ltd. (Harley Harris, Counsel), Eric LARSEN and Teresa WHEELER, and Alison KEMP: The submissions raised the following points. The only public need found by the Motor Carrier Commission (MCC) for the new taxi service was for four wheel drive or all-wheel drive vans. There was no public need for additional taxis, such as sedans or conventional vans, in Whistler. This has not changed. Suitable, efficient and reliable taxi services that consist of conventional sedan vehicles and passenger vans (not four wheel drive or all-wheel drive passenger vans) already exist in Whistler and surrounding areas. The proposed removal of the condition that Whistler Resort Cabs only operate four wheel drive or all-wheel drive passenger vans would result in a substantial excess of conventional sedan and passenger van taxis in these service areas. Questions have arisen relating to Whistler Resort Cabs concerning whether they are fit, proper and capable of operating a safe and reliable taxi service in Whistler and whether Application is being sought in accordance with the purposes and intent of the Act or for purely financial reasons. Page 3

4 Applicant response The demand for 4WD/AWD service is not commensurate with the number of licenses RC is operating (although the business is there for taxis in general). The need for 4WD/AWD vehicles is not year round and the time that it is an advantage spans only about 4 months a year (and typically only about 20 total days a year). In the past 5 years since the new management/ownership team was established, RC has seen significant seen vast safety improvements. 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? companies seeking a minor amendment are expected to provide some objective indicators of public need indicators and these must be more than the customers opinion or preference. RC included the following documentation in support of public need: Three form letters, of which 2 are verifiable, and 1 is not. I have assigned a low weighting to this documentation in supporting a positive finding for public need. This information does not show a specific need or requirement for the removal of the licence condition which would allow for taxi service expansion in the Whistler area to support an increase in general public ridership or that existing service levels are not being met. RC has shown in their business plan that the removal of the licence condition would help to lower fuel, maintenance, and vehicle acquisition costs to increase revenue to satisfy their need but this is not an indicator of public need. The applicant has not provided any factual, objective or verifiable evidence or information to indicate that market demand is not currently being met or that a public need exists for the proposed addition of service. The applicant has not demonstrated that there is a public need for the service that they are proposing. Page 4

5 (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 disclosure forms of Unlawful Activity and Bankruptcy and Passenger Transportation Ownership signed by the applicants indicates no discrepancies. There has not been any information brought to my attention to prove the applicants are not fit and proper. I note that the file from the Passenger Transportation Branch contained information regarding one complaint filed on February 16, 2012, with a follow up on February 20, This matter was closed by the Branch. No administrative penalties were imposed. Whistler Resort Cabs Ltd. was approved for a motor carrier licence on February 26, RC states that they are currently led by an equal partnership of 2 individuals each with unique skills that contribute to the success of their company. This current management structure has been in place for about 5 years. One of the partners is able to secure vehicles for RC through his car sales business while the other partner is able to maintain RC vehicles as a certified mechanic in his own shop. The manager of RC, who has been with RC for the past 5 years, has considerable experience in the taxi business from driving, dispatching, and operations management. RC is a fully operational taxi company that has its own 24/7 computerized dispatch service. A review of the Business Plan has shown that RC has developed sufficient policies and procedures for the hiring, training, and development of new drivers. This also includes all drivers being trained on handling people with disabilities. RC s National Safety Code (NSC) safety performance rating is satisfactory unaudited. Their profile status is satisfactory. The carrier profile is a measurement of a carrier s on road performance and is comprised of a carrier s demographic information, accident record, contraventions, and vehicle inspections. The profile status categories are satisfactory, conditional, and unsatisfactory. Page 5

6 In the past 5 years, since the new management/ownership team was established, RC states that they have seen vast safety improvements and as such their ICBC fleet discount has increased significantly from 13% to 61% over this period. RC has provided the following financial information: statement of income and deficit 2011/12, balance sheet 2012, and cash flow projections 2013/15. The balance sheet shows significant liabilities to the shareholders. The applicant states that these liabilities, which originated in 2004, are from a combination of the original startup costs and incurred losses through the years due to a sluggish economy. With the current vehicle allocations, RC has posted a small profit in 2011 and increased profits in 2012 due to a rebound in the economy. RC has also begun to lease taxi licences to qualified and capable drivers beginning in 2012 which has resulted in increased income. The balance sheet shows as of 2011 RC s total deficit has been decreasing. The current financial projections show increases in revenue which has allowed RC to increase expenditures to improve and grow the business. RC has purchased better vehicles, increased advertising expenditures and upgraded to a computerized dispatch system. RC states that with the increase in revenue fuel and motor vehicle expenses have also increased. Cash flow projections 2014/15 show a decrease in fuel and vehicle maintenance costs if the removal of the 4WD/AWD passenger van licence condition is approved. The cash flow projections also show a breakdown of future operating expenses which appear to be realistic and within an acceptable range for carriers of similar size. I find the applicants to be fit and proper persons who have the necessary skills that would indicate that they are capable of managing and providing the proposed 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. It Board discourages competition that could unduly harm existing service providers. As the applicant has not satisfied the requirement of public need for a new service, I have not made a determination on sound economic conditions. Page 6

7 Conclusion For the reasons above, this application is refused. If Whistler Resort Cabs Ltd. makes an application in the future, the applicant should refer to refer to the I want to change my taxi licence page on the Board s website and refer to the section on including public need indicators. Page 7