City of Culver City, California
Agenda Item Report
RECOMMENDATION:
Staff recommends that the City Council consider (1) the applications of All Yellow
Taxi, Inc. and TMAT Corp. (dba Taxi! Taxi!) to obtain taxi business operating permits
in Culver City, and (2) a request from Culver City Yellow to increase their number of
authorized permits.
PROCEDURE:
1. Mayor calls on staff for a brief staff report and City Council poses questions to
staff as desired.
2. Mayor seeks a motion to open the public hearing, providing the applicants the
first opportunity to speak, followed by the general public.
3. Mayor seeks a motion to close the public hearing after all testimony has been
presented.
4. City Council discusses the matter and arrives at its decision.
BACKGROUND:
Meeting Date: 07/25/2011 Item Number: PH-2
CITY COUNCIL AGENDA ITEM: PUBLIC HEARING – Consideration of (1)
Applications from All Yellow Taxi, Inc. and TMAT Corp. dba Taxi! Taxi! to Obtain
Taxi Business Operating Permits in Culver City and (2) a Request from Culver
City Yellow to Increase Their Number of City Decals from 20 to 30.
Contact Person/Dept.: Jeff Muir, Finance
Department
Phone Number: (310) 253-5865
Fiscal Impact: Yes [X] No [] General Fund: Yes [x] No []
Public Hearing: [X] Action Item: [] Attachments: []
Commission Action Required: Yes [] No [X] Date: _______________
Public Notification: Notice was published in the Culver City News on July 14, 2011; (E-
mail) All Yellow Taxi, Inc., TMAT Corp. dba Taxi! Taxi!, United Independent Taxi,
Beverly Hills Cab Co., Independent Cab Co., Culver City Yellow Cab, A Taxi Cab,
Culver City Chamber of Commerce (07/21/11); Meetings and Agendas – City Council
(07/20/11).
Department Approval:
Jeff Muir (07/18/11)
City Attorney Approval:
Carol Schwab (by H. Baker) ()
Chief Financial Officer Approval:
Jeff Muir (07/18/11)
City Manager Approval:
John M. Nachbar () City of Culver City, California
Agenda Item Report
The Culver City Municipal Code (CCMC) Chapter 11.10 provides the regulations and
requirements for taxi businesses providing services within the City. In order to pick-
up passengers within Culver City, a taxicab company must obtain a taxi business
operating permit (Taxi Business Permit). Once the Taxi Business Permit is
obtained, all drivers for that company that will operate within the City must obtain a
taxi driver permit (Driver Permit) annually. In addition to the Taxi Business Permit
and Driver Permit, each taxi vehicle operated within the City is required to obtain and
display a valid City Decal. Currently, the Finance and Police Departments
coordinate the annual renewal and issuance of the Taxi Business Permits, Driver
Permits, and City Decals.
Once issued, a Taxi Business Permit is automatically renewed each year as long as
the company pays its annual fees. In order to be granted an initial Taxi Business
Permit, the CCMC requires that a completed application be submitted, an
investigation and report be compiled about the application, and a hearing before the
City Council be held, at which time the City Council may approve, approve with
conditions, or deny the application. Approval of the application requires the City
Council to make findings as to whether the public convenience and necessity
require additional taxicab service.
At the time of consideration of the Taxi Business Permit application, the City Council
may also decide how many taxicabs the company may operate in the City. This is
done by issuing each company a specific number of City Decals.
The City currently has 5 taxicab companies with a valid Taxi Business Permit. These
companies along with their start dates and the number of City Decals they hold are
as follows:
Company with Taxi Business
Permit
Number of
City Decals
Held
Start date in
Culver City
United Independent Taxi Drivers Inc. 120 April 1, 1996
Beverly Hills Cab Company 60 January 1, 1993
Independent Taxi Owners Association 50 June 23, 1997
Culver City Yellow 20 January 1, 2005*
A White and Yellow Taxicab Inc. 15 January 1, 2000
*Reflects new start date after a change in ownership.
These 5 companies currently have a total of 265 City Decals amongst them, of
which 112 are currently being utilized.
City of Culver City, California
Agenda Item Report
Two additional taxicab companies have submitted completed Taxi Business Permit
applications and paid the associated fees. All Yellow Taxi, Inc. has requested to
receive thirty City Decals to operate taxicabs within the City and TMAT Corp. (dba
Taxi! Taxi!) has requested to receive seventy-five City Decals. Additionally, Culver
City Yellow has requested to increase their number of City Decals from twenty to
thirty.
DISCUSSION:
In 2010, staff from the departments of Finance, Police, Public Works, Community
Development, Parks and Recreation and the City Attorney’s Office met to discuss
the taxicab application process, which also included a discussion of the adequacy of
existing service within the City.
It is difficult to make a definitive statement as to whether the existing number of
taxicabs permitted is adequate in serving the City. One measure of the level of
service is the level of complaints received by the various City departments that have
dealings with the different stakeholder groups that utilize taxicab services. At the
2010 meeting, no staff members were aware of complaints from the public as to the
level of service or unusually long wait times. Additional outreach was done to the
main hotels within the City, the Downtown Business Association, the Chamber of
Commerce and the Senior Center. Again no feedback was received that would
indicate the current level of taxi service in the City is inadequate.
Staff also requested reports from the companies that are currently operating within
the City as to their response time from the original call by the customer. The
Dispatch Reports for the period January through June 2011 indicated that the
taxicabs arrived at the callers’ requested pick-up point as follows:
• Culver City Yellow and United Independent Taxi Drivers arrived within fifteen
minutes of the call 63% of the time.
• Beverly Hills Cab arrived within twenty minutes of the call 91% of the time.
• Independent Taxi Owners Association arrived within twenty minutes of the
call 86% of the time.
Over the years, the number of actual taxicabs permitted within the City has varied
greatly. The table below represents a thirteen year history of the City Decals issued:
City of Culver City, California
Agenda Item Report
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
United Independent 9 42 33 30 8 5 9 4 10 10 10 10 20
Bevrly Hills Cab Co. 10 10 10 10 10 0 0 11 12 15 23 32 60
Independent Taxi 37 19 33 19 8 10 5 10 15 14 11 9 9
Culver City Yellow 14 15 15 15 15 15 15 15 16 21 22 23 23
White & Yellow Taxi Cab Inc.
0 15 10 10 5 6 0 0 0 0 0 0 0
Total Taxi Cab Permits 70 101 101 84 46 36 29 40 53 60 66 74 112
Number of Taxicabs Operating
Permits Issued 260 260 260 260 260 260 260 260 260 265 265 265 265
Percentage of Issued Permits
Utilized 27% 39% 39% 32% 18% 14% 11% 15% 20% 23% 25% 28% 42%
As can be seen, historically there has been a very low percentage of the number of
City Decals issued versus the number of taxicabs that these companies actually
have placed in service. In 2011, Beverly Hills Cab Co. significantly increased their
number of City Decals to their total allotment, and 2011 actually marks the highest
number of City Decals since at least 1999. Staff believes this to be a result of the
development and improvements that have taken place throughout the City, as well
as significant changes to taxi permitting in Santa Monica (discussed in more detail
below). Given the fact that there is no definitive message from the public that the
existing taxicab services within the City do not provide adequate service, it is difficult
for staff to make an assertion that additional taxicabs are required. However,
competition may also assist in improving services even further. The free market will
ultimately determine the number of taxicabs that can be supported, as the drivers for
these companies that do not find it profitable to maintain their City Decal or Driver
Permit will not make the investment in future years.
Currently taxicabs do not present major issues on traffic and parking within the City.
There are limited locations in the City where taxicabs are able to queue, so most
service is dispatched when a phone request is made, as opposed to taxis waiting at
curbside locations. The Traffic Engineering Division of the Public Works Department
does not think that the additional taxicabs as requested by the applicants will have a
significant effect on traffic and parking within the City.
Description of All Yellow Taxi, Inc.
All Yellow Taxi, Inc. has been in business since 1997. They operate a total of 90
taxicabs in Los Angeles County. They currently have 4 Franchise Agreements (in
the cities of Hermosa Beach, Torrance, Manhattan Beach and Redondo Beach) and City of Culver City, California
Agenda Item Report
permits to operate in the County of Los Angeles and 12 other cities (El Segundo,
Lawndale, South Gate, Santa Monica, Carson, Hawthorne, Rancho Palos Verdes,
Lomita, Huntington Park, Gardena, Lynwood, and Inglewood).
All Yellow Taxi proposes to operate a fleet that includes twenty-eight (28) Super
Ultra-Low Emission Vehicles and 2 ADA Wheelchair Accessible Vans. They
currently provides Access Services in Culver City, as well as drop off passengers in
Culver City from the South Bay and surrounding.
The background and reference check did not reveal any issues that are a cause of
concern to staff in terms of this company operating within Culver City. Unaudited
financial statements were received for 2008 and 2009. The company indicated the
2010 financial statements would be completed and submitted by Thursday, July 21,
2011. These two years of statements indicate a positive net income each year. The
company indicates the 2010 statements will also reflect a positive net income. Staff
will indicate whether there are any concerns with the 2010 financial statements
during the oral staff report.
Response to Request to Establish Need for Additional Service
All Yellow Taxi states that they drop many clients off in Culver City, and a permit to
operate here would allow them to pick up cash passengers thereby extending their
specialized services to our residents. They also claim that developments within the
City and in the surrounding areas are creating a greater demand for taxicab
services. They mention the expansion of West Los Angeles College and LAX, the
development of Playa Vista, and reductions in bus services due to transportation
funding cuts as major factors in this increase in demand. They did not provide any
specific data to support the need for additional service.
Description of TMAT Corp dba Taxi! Taxi!:
TMAT Corp., dba Taxi! Taxi!, has been in business since 1997. They operate a
total of 65 taxicabs in the City of Santa Monica where they have been operating for
over 21 years. Santa Monica recently converted from an open taxi system (allowing
any company to obtain a permit) to a franchise system where only a few companies
would be allowed to operate. They went through a comprehensive study and review
process, and Taxi! Taxi! was one of the companies awarded a franchise. Staff feels
this speaks to the quality of service and reliability the company has been able to
demonstrate. They claim to be in the process of converting to a newer and more
energy efficient fleet of vehicles.
The background and reference check did not reveal any issues that are a cause of
concern to staff in terms of this company operating within Culver City. As requested, City of Culver City, California
Agenda Item Report
unaudited financial statements were submitted for the last three years. These
statements indicate a positive net income each year. The statements for the year
ended 2010 show a significant decrease in the cash position of the company, but
also show a significant investment in vehicles.
Response to Request to Establish Need for Additional Service
The company states that they receive daily requests for service from clients who
reside in the Culver City area. They state they would like to expand their territory to
include Culver City and that they are the only company in Los Angeles with multiple
awards. They did not provide any specific data to support the need for additional
service.
Description of Culver City Yellow:
Culver City Yellow operates a total of 23 taxicabs in Culver City where they have
been operating since 2005. Culver City Yellow is the only company that is
specifically dedicated to serving Culver City, as they do not have permits or
franchise agreements in any other jurisdictions. Staff recently determined that due
to our own error, we had permitted three more vehicles than they are currently
authorized for the last few years. As a result, they submitted a request to increase
their authorized permits by ten, up to thirty vehicles. This request does not require a
new application, but does require City Council approval.
Staff Comments
Staff does not feel the current level of taxicab service in the City is inadequate.
However, staff does not see a specific downside associated with issuing additional
Taxi Business Permits, Driver Permits, or City Decals, although it remains to be
seen whether the market will support this number of taxicabs. The two new
applicants both appear to be good companies with an established record of
providing quality service. The downside could be that current taxicab drivers that
have been operating within the City will be financially impacted.
The request from TMAT Corp dba Taxi! Taxi! for a permit for seventy-five (75)
taxicabs exceeds their current fleet of 65. If City Council grants a Taxi Business
Permit for this company, staff would recommend a lesser number.
Culver City Yellow has requested to increase their City Decals to thirty taxicabs. As
they are specifically dedicated to Culver City, staff would recommend their request
be strongly considered.
City of Culver City, California
Agenda Item Report
FISCAL ANALYSIS:
Both new applicants have paid a one-time $1,000 application fee for the processing
and consideration of their Taxi Business Permit applications. Annually, each taxicab
company must pay $250 to maintain their Taxi Business Permit. Additionally, for
each City Decal the following fees must be paid:
• $400 per year for annual taxicab inspection and licensing (per cab)
• $30 per year annual taxicab driver licensing fee (per driver)
• $30 per year annual business license tax (per business)
• $68 per year livescan fee (per driver)
If the All Yellow Taxi, Inc. application is approved, and all thirty vehicles were issued
City Decals, the City would receive $16,090 per year. If the TMAT Corp dba Taxi!
Taxi! application were approved, and all seventy-five vehicles requested were issued
City Decals, the City would receive $39,850 per year. Staff does not feel it is likely
all these requested vehicles would be issued City Decals. Also, if existing
companies subsequently reduce their vehicles with City Decals. it would result in
corresponding decreases in revenue.
MOTION:
That the City Council:
1A. Make findings determining the public convenience and necessity require
additional taxicab service within the City and GRANT a Taxi Business Permit to
All Yellow Taxi, Inc.; effective on August 1, 2011, conditioned on the company’s
compliance with all taxi and business regulations as set forth in the Culver City
Municipal Code;
OR
1B. Determine the required findings cannot be made and DENY a Taxi Business
Permit to All Yellow Taxi, Inc;
AND
2A. Make findings determining the public convenience and necessity require
additional taxicab service within the City and GRANT a Taxi Business Permit to
TMAT Corp dba Taxi! Taxi!; effective on August 1, 2011, conditioned on the City of Culver City, California
Agenda Item Report
company’s compliance with all taxi and business regulations as set forth in the
Culver City Municipal Code;
OR
2B. Determine the required findings cannot be made and DENY a Taxi Business
Permit to TMAT Corp. (dba Taxi! Taxi!)
AND
3A. (Staff Recommendation) Approve the request and authorize the issuance of
10 additional City Decals (from 20 to 30) to Culver City Yellow;
OR
3B. Deny the request from Culver City Yellow for an additional 10 City Decals.