TITLE
Recommendation to receive and file the Biennial Report on Public Convenience and Necessity Regarding Taxicab Service; the Taxicab, Auto-for-Hire Inspection process; determine that the number of authorized taxicabs is sufficient; and direct that the time period for filing of taxicab applications remains closed. (Citywide)
DISCUSSION
In May 2000, the City Council passed Resolution C-27694, closing the time period for the filing of taxicab applications until specifically opened by the City Council. In addition, the Resolution requires that beginning in October 2002, the City Manager conduct an investigation into the public convenience and necessity regarding taxicab service not less than once every two years. Based on the findings, the City Manager will recommend that the period for filing of applications should be opened or remain closed. The time period for the filing of applications shall remain closed if it is determined by the City Council that the number of authorized taxicabs is sufficient for the needs of the City.
City staff conducted an investigation into the public convenience and necessity regarding taxicab service (Attachment A). The investigation finds that Long Beach Yellow Cab is providing satisfactory service to both resident and non-resident taxicab customers, and that the number of taxicabs authorized to operate in the City will be sufficient. The recommendation is that the period for filing of taxicab applications remains closed.
Long Beach Yellow Cab Co-Operative, Inc., submitted a report, which cites factors that helped with the evaluation of public convenience and necessity. Although Long Beach Yellow Cab Co-Operative, Inc., is authorized to operate 175 vehicles, only 155 vehicles were operating in 2011, and 157 vehicles were operating in 2012. Due to a stronger economy, the number of taxicabs operating in Long Beach will increase from 157 to 162 vehicles in 2013.
The investigation into public convenience and necessity of taxicab service in Long Beach conducted by City staff included three steps of review. First, a taxicab customer service survey was done in December 2012 to determine the quality of taxicab service provided in the City. The survey was distributed by email, and in person, to employees/businesses who are responsible for contacting taxicabs for their customers at various hubs in the City, to determine if the taxicabs had a clean and professional appearance. Second, members of the Department of Financial Management, Fleet Services Bureau, attended the annual Taxicab, Auto-for-Hire Inspection process on January 29, 30, and 31, 2013, performed on 162 Long Beach Yellow Cab vehicles at their facility in Gardena, CA. During these three days of inspections, two vehicles did not pass the first round of inspections, at which point they were required to be re-inspected by Fleet Services in order to be compliant. Both vehicles were later re-inspected; the deficiencies were remedied, and the vehicles passed the final inspection. As a result, all 162 vehicles were compliant with the requirements of the inspection process. Third, a staff report was provided by City staff to check for valid taxi driver regulatory permits and to verify the posting of a required sign with a customer service phone number for inquiries and complaints for the City of Long Beach.
In an effort to improve service delivery, Long Beach Yellow Cab completed the installation of the Taxi Magic Passenger Information Monitors (PIM) in the back seat of all 162 taxicabs to provide passengers with a convenient and secure way to pay for the taxicab ride using a credit card at the conclusion of their trip. The PIM devices also serve as an informative and entertaining tool displaying customized messages and a high definition interactive screen. Long Beach Yellow Cab is the first taxicab fleet in Southern California to have implemented this technological enhancement.
SUSTAINABILITY
Long Beach Yellow Cab is continuing to support efforts to promote environmentally sensitive business and lifestyle practices. In supporting these practices, the Yellow Cab Co-Operative, Inc., partnered with the City and adopted a "Green Taxicab" program that requires owner-drivers to replace their existing taxicabs with compressed natural gas (CNG) or hybrid-powered vehicles. Although they have not been immune to the effect of the country's economic crisis, they have maintained their commitment to greening their taxicab fleet.
Long Beach Yellow Cab's fleet of 162 vehicles includes 15 wheelchair accessible minivans and 28 gasoline-powered minivans. Prior agreements stipulate that all minivans can only make up 25 percent of the entire fleet and are not required to adopt the "Green Taxicab" program. As of 2013, all minivans make up 26.54 percent of Long Beach Yellow Cab's fleet. Long Beach Yellow Cab has committed to acquiring additional "green" taxicabs to replace the 1.54 percent overage. The replacement will take place within the next 12 months. Orange County has initiated conversion of minivans to alternative fuel vehicles. Long Beach Yellow Cab has committed to converting their entire fleet to meet the requirements of the "Green Taxicab" program when feasible.
With the 162 total number of taxicabs operating in the City, it is required that 100 percent of the taxicabs must employ "green" technology as those units come up for replacement. This results in a requirement of 122 vehicles that must be green fuel. Currently, there are 119 hybrids or CNG-powered taxicabs in service. The City is working with Long Beach Yellow Cab to increase the number to 122.
This matter was reviewed by Deputy City Attorney Amy R. Webber on March 29, 2013 and by Budget Management Officer Victoria Bell on April 1, 2013.
TIMING CONSIDERATIONS
City Council action on this item is not time critical.
FISCAL IMPACT
The annual business license tax of $75,380 allows Long Beach Yellow Cab Co-Operative, Inc., to operate up to 162 taxicabs. The business license tax was deposited in the General Fund (GP) in the Department of Financial Management (FM). Additionally, Long Beach Yellow Cab Co-Operative, Inc., paid $18,630 as a full cost recovery reimbursement to the City for City-incurred charges related to the three-day Taxicab, Auto-for-Hire Inspection process.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
JOHN GROSS
Director of Financial Management
APPROVED:
PATRICK H. WEST
CITY MANAGER