Licence Application Decision

Transcription

1 Licence Application Decision Limousine New Special Authorization Application # Applicant Romanoff & Company Antiques Ltd. Trade Name (s) Principals Address Current Authorization (s) Application Summary Freeman s, British Motoring Company FREEMAN, Paul 839 Fort Street, Victoria, BC V81 1H6 None New Special Authorization (Reference: Section 26 of the Passenger Transportation Act) New limousine service in Victoria area with 1 sedan limousine vehicle in the style of a London taxi. Rates (Section 24 of the Passenger Transportation Act) Date Published in Weekly Bulletin Submitters (and representatives) Minimum-Maximum Rates and Standard Rules for Limousines in BC effective October 14, 2015 apply August 17, 2016 Larry FLETCHER dba Classic Cars Innotec Enterprises Inc. dba LA Limos Sandra FOUND dba Victoria s London Taxi Ascot Limousine Service Ltd. Regent Limousine Service Ltd. Board Decision The special authorization is approved Terms and conditions of licence are approved as set out in the application summary Rates sought by the applicant are approved as set out in the application summary. Decision Date October 6, 2016 Panel Chair William Bell Page 1 Passenger Transportation Board Limo Decision

2 I. Introduction This is an application for a new passenger transportation licence with Special Authorization (SA): Passenger Directed Vehicle. The applicant proposes to operate 1 sedan limousine in the style of a London taxi with a seating capacity of a driver and 2 and 7 passengers. The specific vehicle proposed is a 2003 model. The limousine would operate from any point in the City of Victoria, Saanich Peninsula, east of the Jordan River and South of Mill Bay. The applicant is also requesting return and reverse trip authority. The service will be provided on any week day between the hours of 8 a.m. and 11 p.m. II. Background Romanoff & Company Antiques Ltd., the applicant will operate the limousine service as the British Motoring Company. The applicant will charge rates as set out as set out in the Board s Minimum-Maximum Rates and Standard Rules for Limousines in BC. For the past several years, the applicant has operated the limousine service, primarily from April to September at Ogden Point, through a leasing arrangement with another licensee that is now under new management and operating fewer vehicles. As a result, the applicant recently applied for, and received, a National Safety Code Safety Certificate and is now seeking a passenger transportation licence in its own name. In support of this application, the applicant provided the following documents. PDV vehicle proposal Condensed Operating Plan Service Area Business plan Proposed Rates & Rules Financial information Public Explanation Public need indicators Disclosure of Unlawful Activity and Declaration Bankruptcy 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 Page 2 Limo Decision Passenger Transportation Board

3 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 and 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 seeks to obtain its own passenger transportation licence to continue providing a service to cruise ship passengers and to grow the business to increase its viability year round by offering of tailored tours throughout its operating area. Given the nature of the vehicle used, the service is unique and caters to the high end touring market for groups of up to 5 people who want a more intimate and exclusive British-style experience. (b) Submissions & Applicant s Response Five licensees, as noted on page 1, made submissions on this application. Four of the five objected to the application and one licensee opposed to the application if classic vehicles were to be used. As the vehicle proposed by the applicant is not a classic vehicle, that submission is irrelevant. The submitters made the following points: There is no public need for an additional limousine. The market is currently crowded, including the Ogden Point terminal. Approval of an additional licence will negatively impact other licensees. The applicant has operated under a lease arrangement and since discontinuation of the lease has operated without legal authority. Page 3 Limo Decision Passenger Transportation Board

4 A London Taxi currently operates in the Victoria area. The vehicle proposed by the applicant is not a true London Taxi. While some tourism statistics show growth, others show a shrinking market. The applicant is not the driver of the vehicle and there is an agreement for the driver to purchase the vehicle. The applicant s responded as follows: The allegations of illegal operations are unfounded. The applicant s vehicle has not been licensed for commercial purposes since late January It has been driven for personal reasons to keep it in fully operational condition. Whether or an applicant drives the vehicle has no bearing on the Special Authorization licence application. There is no arrangement between the applicant and driver regarding purchase of the vehicle. The applicant s unique services are in demand and investments made by bus companies in contrast are focused on moving larger numbers of people at lower cost for set tour routes. The single licence proposed by the application should have little or no adverse impact on Victoria s other London taxi. The vehicle proposed is the same vehicle that is currently used in operation in London and other cities in the UK. It was manufactured as one and the vehicle, for safety reasons, operates up-to-date left hand drive. Tourism and cruise ship statistics indicate that local business is growing from year to year. 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. It 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 Board looks for Page 4 Limo Decision Passenger Transportation Board

5 a reasonable connection between the number and types of vehicles requested and public need. The London taxi vehicle to be used for the applicant s service is as the applicant states is in the tradition of the time-tested, ubiquitous London taxis that work so well in London (England) and which are synonymous with high London-style. It is in many respects similarly suitable for Victoria reflecting the city s English heritage and moderate climate, and is a nice complement to the red London double decker tour buses. Apart from serving the cruise ship passengers, the applicant will offer a set of tours in the Victoria area. These tours can be tailored to the area s history and culture as well as shopping excursions (e.g. art and antiques) and Butchart Gardens and other attractions. The applicant submitted the following evidence and information to support its claim of public need. Current Competition Currently there is only 1 London taxi operating in Victoria; a 1970 right hand drive Austin FX4 model. The applicant s vehicle is a newer more updated model with more features. In the past there were four or more London Taxi operating successfully in Victoria, but as they aged or as businesses changed they were not replaced Ogden Point Port One of the Greater Victoria Harbour Authority s (GVHA) objectives for Ogden Point is to minimize the negative effects of noise, congestion, pollution, etc. of the port on the adjacent James Bay community. The Ogden Point Master Plan and Rezoning Application Engagement Plan includes supporting various modes of transportation to and from the Port to supplement the recommended walking that is encouraged. A Cruise Passenger Survey Results for 2013 indicates that 20% of cruise ship passengers use taxi or limousine services. Such transportation alternatives are needed for those with time constraints as well the elderly, very young families or those with disabilities or mobility issues. Statistics were included from Western Stevedoring who is under contract with the GVHA to manage the Ogden Point terminal. The statistics of Cruise Ships Visits and Page 5 Limo Decision Passenger Transportation Board

6 Passenger Arrivals at Ogden Point from 2011 to 2016 ( est.) indicates in excess of 500,000 visitors through the Port for 2015 and Therefore, during the cruise season the market is very large for transportation providers. Western Stevedoring states that cruise ship passenger number appear to increase at a rate of approximately 3-5% per year. The increase since 2002 has been thirteen fold. The high popularity of the Alaskan Cruise, the use and repositioning of even larger cruise ships at the Port, earlier arrivals/later departures, capital improvements to the facility, etc. will generate increased activity There is a stronger higher end market for those travelling in smaller groups of up to 5 people respecting the applicant s unique limousine service that provides an intimate, exclusive and authentic (British) experience. The 2016 Limo and Tour Operator Rules of Operation by Western Stevedoring and the GVHA s application and permit For Hire preparation checklist included with the application require limousine operators to have a SA licence in 2016 to work at Ogden Point. This has reduced the supply and the resultant competition among limousine operators many of whom were excluded by having only General Authorization (GA) licences. Tourism 2016 tourism statistics for Victoria is expected to record another excellent year. Visitation measures show significant and/or increasing activity. Tourism Victoria Exit Surveys (August 2014) show significant expenditures on paid attractions, guided tours, etc. and that most visitors are higher income earners. Such a survey illustrates the underlying demand for the applicant s type and scale of service. Letters of Endorsement and Support The applicant included a letter of endorsement from Western Stevedoring. It confirms that new for hire requirements and changes indicate a significant reduction in vehicles eligible to participate in the program. It also notes that its statistics support a consistent level of demand representing a great opportunity for commercial passenger vehicle operators to market their products and that the application is consistent with Section 28 of the Passenger Transportation Act. Several letters of support were also included from businesses, a school association and a tourist attraction site. The letters included strong testimonials, but also noted the applicant s unique visitor experience with a vehicle that is easily accessible to an Page 6 Limo Decision Passenger Transportation Board

7 aging population and mobility challenged individuals and that its upscale services was well received by clientele. The service contributes to and improves visitor experiences. One letter from a competitor limousine company notes the service has been a welcome and positive addition to the limousine service industry in Victoria and it would refer customers seeking a British-style experience. Board Analysis and Findings The applicant has provided services, primarily to the cruise ship industry in Victoria, for the past two years. It can no longer provide this service as its arrangement with another operator has terminated. The financial evidence included indicates growth in the demand of its business during the 2 year period over that time. The evidence suggests future growth in demand, particularly with the cruise ship industry. The applicant provided information on the unique and specific type of vehicle and level of services that makes up its strategy going forward serving an up-scale niche market. The applicant provided evidence of a relationship with another limousine company which will refer business to the applicant. The application also included a letter of endorsement and letters of support that convey an ongoing demand for the type of service the applicant is providing. I find sufficient evidence to demonstrate that a public need exists for the niche market service outlined by the applicant. (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 Board reviews the conduct of an applicant and the structure of its 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? Applicants must show that they have the resources and skills to manage the service that want to operate. The Board gets much of this information from business plans and financial statements. Page 7 Limo Decision Passenger Transportation Board

8 Romanoff & Company Antiques Ltd. was provided a Certificate of Restoration regarding its incorporation effective November 30, The company owns and operates the London taxi. Paul Freeman is president and has experience running a small business. He has a background as an economist and budget analyst with government. Gregory Weston is currently the driver of the London taxi and has driven the taxi for the past 2 years. The letter of endorsement and several support letters speak to his professionalism, quality of service and attention to safety.. The Unlawful Activity & Bankruptcy form was completed to my satisfaction. The applicant s NSC safety rating is Satisfactory-Unaudited. The applicant signed the Liquor Control & Licensing Act Declaration declaring that it will operate its vehicles in accordance with that Act. From this material presented, it appears that the applicant has the financial resources to operate the proposed service. The applicant has been providing a service with one vehicle for the past 2 years. He has provided a business plan, including a financial history and projections, marketing strategies and its practices regarding the hiring, training and development of drivers. There is nothing in the application material to indicate that the applicant is not fit, proper and capable to provide the proposed service. I find that the applicant is a fit and proper person to provide the proposed service and is capable of providing that service. (c) Would the application, if granted, promote sound economic conditions in the passenger transportation business in British Columbia? There are many markets for limousines. Some limousine companies may serve the wedding or special event market. Others may serve corporations. Still others may offer a specialty service. A healthy, competitive limousine industry provides the public with a range of service options while enabling efficient operators to run a successful business. The Board discourages competition that could unduly harm existing service providers. There are many markets for limousines. Some limousine companies may serve the wedding or special event market. Others may serve corporations. Still others may offer a specialty services. A healthy, competitive limousine industry provides the public with a range of service options while enabling efficient operators to run a successful business. Page 8 Limo Decision Passenger Transportation Board

9 The applicant proposes to provide a unique limousine service with 1 London taxi specialty vehicle. Only one other vehicle of this description operates in the Victoria market that is made up of numerous limousine operators. The applicant s service, which has operated in the local market previously, provides an additional specialty transportation option. It is aimed at a niche market for higher end limousine patrons. I find that the public will benefit from greater service choice and that the service will have a healthy, positive and complementary effect on the limousine industry generally. I also note that a number of submitters made general statements about the potential negative impacts on their business; however little supporting data was provided to support these claims. I find that the granting of the application would promote sound economic conditions in the transportation business in British Columbia VI. Rates The rates are approved as set out in the application summary. 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 9 Limo Decision Passenger Transportation Board

10 Appendix I Romanoff & Company Antiques Ltd. dba Freeman s, British Motoring Company Licence Required to Operate Vehicles The Registrar of Passenger Transportation must issue the applicant a licence before the applicant may implement the amendments approved in this decision. 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 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 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.) Special Authorization Passenger Directed Vehicle (PDV) Maximum Fleet Size: Terms & Conditions 1 vehicle which must be a sedan vehicle manufactured in the style of a London (UK) taxi. Vehicle Capacity (S): Sedan limousines must accommodate a driver and not less than 4 and not more than 5 passengers. Specialty Vehicles: Service 1: A sedan limousine, including an eco-friendly sedan limousine, may only be operated when the vehicle meets the applicable criteria, rules, policies and orders of the Passenger Transportation Board. Originating Area: Transportation of passengers may only originate from any point in the City of Victoria, Saanich Peninsula, east of Jordan River and south of Mill Bay. Page 10 Limo Decision Passenger Transportation Board

11 Destination Area: Return Trips: Reverse Trips: Transportation of passengers may terminate at any point in the originating areas. 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. The following apply to all vehicles in the fleet. 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. Liquor Control & Licensing Act The licensee must at all times operate its passenger directed vehicles in compliance with the Liquor Control & Licensing Act. Page 11 Limo Decision Passenger Transportation Board

12 Appendix I Romanoff & Company Antiques Ltd. dba Freeman s, British Motoring Company Rates: Minimum-Maximum Rates and Standard Rules for Limousines in BC effective October 14, 2015 apply. Page 12 Limo Decision Passenger Transportation Board