Licence Application Decision

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1 Licence Application Decision Limousine New Special Authorization Application # Applicant OOSTERHOFF, Dustin Allen Trade Name (s) Top Hat & Heels Limousine Address Highway 16 West, Prince George BC V2N 6K4 Current None Authorization (s) Application Summary Date Published in Weekly Bulletin Submitters (and representatives) Board Decision New Special Authorization (Reference: Section 26 of the Passenger Transportation Act) New limousine service in the Prince George area with 1 PSB vehicle. Rates Decision Date May 30, 2017 Panel Chair William Bell I. Introduction (Section 24 of the Passenger Transportation Act) Minimum-Maximum Rates and Standard Rules for Limousines in BC effective October 20, 2016 apply April 26, 2017 Sweet Dreams Limo Ltd. Pereversoff, Todd Peter dba Royal Rose Limousine The special authorization is refused. This is an application for a new passenger transportation licence with Special Authorization: Passenger Directed Vehicle. The applicant proposes to operate 1 Perimeter Seating Bus (PSB) with a seating capacity of a driver and 14 passengers. The limousine would operate from any point in Prince George, and outlying communities or places along the following corridors: Highway 97 Bear Lake to Strathnaver only; Highway 16 from Burns Lake to Slim Creek Provincial Park only; and Highway 27 including Vanderhoof and Fort St James. Page 1 Passenger Transportation Board Limo Decision

2 II. Background The applicant, Mr. Dustin Allen Oosterhoff, dba Top Hat and Heels Limousine will operate the service as a sole proprietorship. The applicant will charge rates as set out as set out in the Board Rule concerning these for Minimum-Maximum Rates and Standard Rules for Limousines in BC. The applicant also seeks unlimited reverse trip authority. The applicant will operate a 2005 Ford Excursion maximum 14 passenger vehicle in operating the proposed service. In support of this application the applicant provided the following documents. PDV vehicle proposal Service Area Public Explanation Disclosure of Unlawful Activity and Bankruptcy Declaration Business plan Financial information 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. Page 2 Limo Decision Passenger Transportation Board

3 IV. Rationale and Submissions (a) Applicant s Rationale The applicant states he is targeting the Prince George area with a limousine service that is easily accessible to all customers. It will improve the transportation service to the community by offering limousine service to people otherwise uncomfortable in smaller limousines and people who want to feel pampered. (b) Submissions & Applicant s Response There were 2 submitters to this application: Sweet Dreams Limousines Co. Inc. ( SDL) Todd Pereversoff dba Royal Rose Limousines (RRL) The chart below provides information on their home base, areas of operation and vehicles of the submitters. Submitter Home Base Service Area SA Vehicles- Seating Capacity PEREVERSOFF, Todd Peter dba Royal Rose Limousines (RRL) Sweet Dreams Limousine Co (SDL) Prince George Prince George Originating: Prince George Highway 97 from Bear Lake to Strathnaver only. Highway 16 from Burns Lake to Slim Creek Provincial Park only. Highway 27 including Vanderhoof and Fort St. James. Destination: Anywhere in BC Originating: Prince George; Summit Lake - Stoner; Norman Lake Rd - Purdon Ski Hill Road Destination: Along the Highway 2 corridor from Dawson Creek to the BC/Alberta border Along the Highway 16 corridor from Houston east to the BC/Alberta border Along the Highway 29 corridor 3 vehicles 6-11 passengers 3 vehicles 6-11 passengers Page 3 Limo Decision Passenger Transportation Board

4 from Tumbler Ridge north to Charlie Lake Along the Highway 97 corridor from 150 Mile House east to the BC/Alberta border Along the Highway 97 corridor from 150 Mile House north to the BC/Yukon border The submissions argue that economic conditions and business has declined and an added operator would be detrimental to the existing limousine business. To support this Mr. Pereversoff enclosed comparative income statements for RRL which indicate a decline in sales revenue between 2016 and Mr. Pereversoff further notes that he currently operates a PSB under his other business Paxton Shuttle Service. SDL reports there is no demand for larger limousine services. In response, the applicant states he is providing a service that is unlike what other providers offer in the area and that statistics prove that B.C. is on the rise with jobs and business proposals. He indicates that since driving with RRL he has been asked on numerous occasions if he was still providing a limousine service and if a larger limousine was available. The current types of vehicles operated by RRL indicate a need for a larger bodied SUV type limousine that he is willing to provide as a service. 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 a reasonable connection between the number and types of vehicles requested and public need. Page 4 Limo Decision Passenger Transportation Board

5 The applicant indicates his business will be generated picking up from the airport and local community concert events etc., and graduations, weddings and anniversary events. The applicant presented the following information and material as evidence of public need for his proposed PSB service. The applicant in his business plan indicates his service would be the first and only Super Stretch SUV Limousine service in Northern B.C. It further indicates: No one supplies a service to the larger bodied people who wish to use a limousine service. And that Other services are not supplying a demand for large limousine vehicles. A list of 11 potential clients was supplied. The list provided the clients name, phone number and address. All were residents of Prince George with the exception of one from Fraser Lake. Seven letters of support. The letters came from individuals in Prince George and for the most part conveyed very general support or a preference for the applicant s service. Analysis and Findings Overall, the evidence of public need is lacking. The applicant is proposing to operate the PSB limousine service in a broad geographic area and the evidence presented is largely from individuals in the Prince George area. This evidence consisting of a potential client list and 7 general support letters is insufficient to demonstrate a public need. Many of the letters represented a general preference for the client s business. Preference does not constitute public need. Two of the letters indicated use of the service, but provided no indication of when and how often they would use the service. One of these letters indicates it had no issues with another provider except a lack of availability on short notice. None of the letters referred to a need for the type of specific PSB limousine vehicle proposed by the applicant or that the type of service proposed could not be obtained. Further, the application materials beyond Prince George area are weak or non-existent. For example, there were no support letters, corroborating evidence or other indicators for a limousine service in Burns Lake, Vanderhoof or Fort St James, which are a considerable distance from Prince George. Page 5 Limo Decision Passenger Transportation Board

6 I find 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 PSB large limousine service. The applicant s materials do not persuasively show that limousine services currently available in the proposed operating area are insufficient, inadequate or unsatisfactory. The evidence is not convincing and does not lead me to conclude that the current limousine operators are not responding to the market segment the applicant proposes to serve. The applicant has not satisfied me that there is a public need for its proposed service. (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? A discrepancy regarding the disclosure form of Unlawful Activity and Bankruptcy was resolved to my satisfaction. The applicant has applied for and has received a NSC Safety Certificate. The applicant s NSC safety rating is Satisfactory-Unaudited. The applicant signed the Liquor Control & Licensing Act Declaration declaring that it will operate its vehicle in accordance with that Act. Mr. Oosterhoff has never operated a limousine service. However, he has experience driving limousines and is currently employed as pilot truck driver and holds a Class 1 licence and a chauffeur licence. A reference letter in this regard provided a testimony to his professionalism as a driver. Mr. Oosterfoff also holds certifications in first aid and in a range of safety related areas. He would operate the business as a sole proprietorship. The business plan was modest, but given the small scale of the operation proposed it provided an accurate description of the business, a market summary, advertising and promotion plans and financial information including reasonable start up and operating expenses and cash flow projections. The business plan and financial information indicates the applicant has the resource and knowledge to establish the proposed operation. I find the applicant to be fit and proper and capable of managing and providing the proposed service. Page 6 Limo Decision Passenger Transportation Board

7 (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. In reviewing this application, I have found that the applicant has not demonstrated public need to my satisfaction. As a result, I am unable to find that the application, if granted, would, promote sound economic conditions in the passenger transportation business in British Columbia. VI. Conclusion For the reasons above, this application is refused. If Mr. Oosterhoff makes an application in the future, the applicant should refer to refer to the Board s Application Guide 5: I want to start a new limousine service on its website. Page 7 Limo Decision Passenger Transportation Board

Licence Application Decision

Licence Application Decision Limousine Amendment to Licence Application # 226-15 Applicant Luxury Life Limousine Inc. Principals Address JHOOTY, Vikrambir 2391 McLennan Avenue, Richmond BC V6X 2N6 Current