1160 Halston Avenue, Kamloops BC V2B 7L3 SANDHU, Jagwinder Singh
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1 Application Decision Application: Applicant: Trade Names: Address: Principals: Special Authorization: Summary: AV75 11 Kami Cabs Ltd. Kami Cabs 1160 Halston Avenue, Kamloops BC V2B 7L3 KANG, Harman Singh SANDHU, Jagwinder Singh KHUNKHUN, Makhan Singh SOHI, Sukwinder Singh MATTU, Ranjiv Singh Passenger Transportation Licence authorizes the applicant to operate passenger directed vehicles. The special authorization can be viewed in the Weekly Bulletin of March 9, 2005 at Addition of Motor Vehicles (PDV) (Section 32 of the Passenger Transportation Act) Proposed addition of 5 motor vehicles to increase the maximum fleet size for passenger directed vehicles from 25 to 30 vehicles. (Of these 5 additional vehicles, the applicant is proposing that 2 will be accessible taxis.) Publication: The application was published in the Weekly Bulletin on May 11, 2011 Submissions: Yellow Cabs (Kamloops) Ltd. dba Yellow Cabs Board The Board approves 1 additional accessible vehicle Determinations: Note: The following adjustments have been made to the terms and conditions: Vehicle capacity (further to the Board Industry Advisory of July 4, 2007, respecting Vehicle Capacity Bands ) Page 1
2 Board Considerations: The Board may approve an application forwarded to it by the Registrar of Passenger Transportation if the Board considers, as set out in section 28(1) of the Passenger Transportation Act, 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. The Board may approve a special authorization if all three provisions are answered in the affirmative. The Board may refuse a licence if any one provision is answered in the negative. Application Matters: The Board views taxicabs as complementary to the public transportation system used by many people in their daily life. For these types of applications, the Board is looking for supporting documentation from potential users as well as business plans and financial statements when considering public need, applicant fitness and economic conditions. The length and complexity of the business plan and financial information as well as the volume of letters or statements from potential users should reflect the following factors: the type, size, and complexity of the proposed transportation business; and the degree of comparable competition in the operating area. Regardless of how much supporting material is provided, it is up to the applicant to guide the Board as to what conclusion it should reach based on the supporting data and information that it submits with its application. The Application Handbook, a companion to the application package and forms, contains information on application requirements and Board considerations. Background: Kami Cabs Ltd. dba Kami Cabs has been in operation since 1973 and under the current management/ownership since July of The applicant currently holds a Passenger Directed Vehicles (PDV) special authorization PT Licence to operated 25 identifiers that can accommodate a driver and not more than 5 passengers. The licence authorizes the transportation of passengers that may only originate from any point in the City of Kamloops and within 16 road kilometers of the City of Kamloops. The transportation of passengers may terminate at any point in British Columbia. The applicant has return trip authorization. Page 2 Application Decision Passenger Transportation Board
3 Currently the applicant is applying for 5 additional vehicles to increase the maximum fleet size for passenger directed vehicles from 25 to 30 vehicles. Of these 5 additional vehicles, the applicant is proposing that 2 will be accessible taxis. Submission and Applicant s Response: Yellow Cabs (Kamloops) Ltd. submission dated May 25, 2011 Kami Cabs response dated June 4, 2011 Yellow Cabs submits that according to the statistics previously provided by Kami Cabs, they did not need all their licenses then (December 2009) nor will they be able to utilize them all until year According to surveys, over 70% of respondents prefer service from Yellow Cabs. Over the last few months 7 drivers have rejoined Yellow Cabs from Kami Cabs, citing inadequate earnings at Kami Cabs. According to their T4 s and other statements, they were making 30 to 40% less in shift and yearly earnings while at Kami Cabs. Some of them were not making even the minimum wage. Kami Cabs responds that when it changed ownership in July 2010, the new management immediately created a sales and marketing strategy, started working on building the business and this has resulted in Kami Cabs taking a good part of local taxi market share. Businesses, especially the hoteliers, were personally approached to use Kami exclusively. Over 23% increase in sales definitely proves the point for the need of new licenses. Kami Cabs further responds that many of its drivers have been with the company for 5 to 15 years and without complaint due to wage loss or decrease in business. Within the last year, few drivers have gone to work for Yellow Cabs and many from Yellow Cabs have also joined Kami Cabs. Reasons: I. Is there a public need for the service that the applicant proposes to provide under special authorization? Existing taxicab operators who apply for additional vehicles (to be operated within the same operating area) should supply evidence of a growing public need that exceeds taxicab capacity in the area. In these instances, past ridership data and recent trend information may be helpful in establishing need. This application included a business plan (including business opportunity and accessible cab priority dispatch plan), financial statements and a 24 months cash flow projection. It also included two letters supporting the increasing accessible taxi service in the area proposed in this application. The applicant submits that public need is verified due to its smaller fleet size than its primary competitor Yellow Cabs that has a fleet of 45 vehicles. Kami Cabs further submits that Thompson Rivers University and Canada Post ask for 15 to 20 cabs at a time. Kami Cabs states that so far they have been very efficient in providing the service on time but with increase in ridership due to its extensive marketing campaign some delays are being noticed for time sensitive contracts like Canada Post. Page 3 Application Decision Passenger Transportation Board
4 The applicant further sites growth at the university/college, increased airport and tourism volumes, and an increase in ridership as evidence of public need. The Board s Application Handbook states: The onus is on the applicant to prove to the Board that there is public need for the service. The applicant must present material, substantiate the material and explain how all the material relates to proving need. Applicants should provide factual, objective and verifiable information that demonstrates that public need exists for the operation they are proposing. A mere preference for a proposed service does not indicate need. This applicant did not include actual ridership or trip data in the form of trips sheets, passenger manifests, or reservation logs that indicated unmet public need. Furthermore this application did not include evidence of passenger wait times for conventional taxis or evidence that the applicant is currently, fully or near fully utilizing its existing fleet. Growth in students, tourism and increasing activity the Kamloops Airport is not evidence unto itself that demand for conventional taxis exceeds current supply. The material presented by the applicant did not convince the panel that there is an unmet public need for additional conventional taxis in the region proposed. The evidence provided by the applicant of unmet public need for accessible (wheelchair) taxis was limited. However, the City of Kamloops Council resolution, and letter of support from handydart, a current accessible transportation service provider in the proposed area was useful; and the panel assigned weight to the letters. Support letter from the City of Kamloops verifying City Council s October 21, 2010 resolution unanimously passed, in support of Kami Cabs Ltd s application for the Board to add two wheelchair taxis to its fleet. The letter states the addition of the two wheelchair taxis is consistent with Kamloops Vehicles for Hire By law No Support letter from First Canada ULC (Farwest Coach Inc), the operator of the transit and handydart services for the City of Kamloops. The letter states, they have worked with Kami Cabs for the past years and they are in full support of its application to the PTB to add 2 wheelchair taxis to its fleet. An addition of 2 wheel chair taxis to Kami cabs will assist in making our service more efficient by reducing the waiting times and meet the needs of our clients. The panel determines there is an unmet public need for 1 accessible taxi in the area proposed by the applicant. The panel advises the applicant that the Terms and Conditions of its current licence allows the conversion or fleet adjustment of its existing vehicles/identifiers to accessible taxis. Page 4 Application Decision Passenger Transportation Board
5 II. Is the applicant a fit and proper person to provide that service and is the applicant capable of providing that service? The Board considers applicant fitness from two perspectives, or in two steps: (a) is the applicant a fit and proper person to provide the proposed service; and (b) is the applicant capable of providing that service? Kami Cabs has been an operating business since 1973 and under its current management/ownership since July of The applicants business plan included financial information and a detailed Accessible Cab Priority Dispatch Plan that represents the capacity and financial resources to operate the proposed service. The applicants fitness has been determined in previous decision of the Board and the panel has not received new information that causes concern(s) with regards to the applicant s conduct or character. The panel finds the applicant a fit and proper person and capable of providing the service as proposed. III. Would the application, if granted, promote sound economic conditions in the passenger transportation business in British Columbia? The Board approaches the economic conditions issue from a broad perspective. 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 within passenger transportation markets. As well, the Board discourages destructive forms of competition that could unduly harm existing service providers. The panel determines that the addition of 1 accessible taxi should not unduly affect other PT licence holders in the area. Therefore, it is the panel s determination that the application if granted, would promote sound economic cond itions in the passenger transportation industry of British Columbia. Activation of Identifiers Notice to Registrar re: Activation Unless otherwise approved by the Board, the additional identifiers approved in this decision must be activated within 6 months of the date of this decision. Any additional identifiers that have not been activated within the 6 month time period are no longer approved and the maximum fleet size is reduced accordingly. The Registrar must not, without direction from the Board, issue any identifiers for additional vehicles approved in this decision that have not been activated within the 6 months of the date of the decision. (Note: activation means completed paperwork for each vehicle has been submitted by the licensee to the Registrar.) Page 5 Application Decision Passenger Transportation Board
6 Special Authorization: Terms & Conditions: Vehicles: Maximum Fleet Size: Vehicle Capacity (T): 26 vehicles, of which 25 may be conventional taxis. All others must be accessible taxis Vehicles can accommodate a driver and not less than 2 and not more than 7 passengers. Specialty Vehicles: All vehicles operated as an accessible taxi must be in accordance with the Motor Vehicle Act Regulations including Division 10 (motor carriers) and Division 44 (mobility aid accessible taxi standards), as amended from time to time, and in accordance with any other applicable equipment regulations and standards. Services: Originating Area: Destination Area: Return Trips: Express Authorization: Taxi Cameras: Transfer of a licence: Transportation of passengers may only originate from any point in the City of Kamloops and within 16 road kilometres of the City of Kamloops. Transportation of passengers may terminate at any point in British Columbia. (i) Vehicles must be equipped with a meter that calculates fares on a time and distance basis. (ii) Vehicles may be equipped with a top light. (iii) The operator of the vehicle may, from within the originating area only, pick up passengers who hail or flag the motor vehicle from the street. Taxi camera equipment may only be installed and operated in vehicles when the licensee is in compliance with applicable taxi camera rules, standards and orders of the Passenger Transportation Board. 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. Board Panel Chair: Don Zurowski Determination Date: July 11, 2011 Page 6 Application Decision Passenger Transportation Board
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