Application Decision (Taxi - Amendment) Urgent Public Need Request Application # Trade Name (s) Principals Address Applicant’s Representative Current Licence Application Summary Board Decision 308-14UPN Applicant Newton Whalley Hi Way Taxi Ltd. Newton Whalley Hi Way Taxi ALI, Aamir BHULLAR, Jatinder Singh BOLA, Kuldip Singh GREWAL, Avtar Singh KHARBAR, Tarsem Singh PARMAR, Sukhdip PARMAR, Narinder Singh 107 – 13119 84th Avenue, Surrey BC V3W 1B3 William McLachlan, McLachlan Brown Anderson 70974 (copy attached) • Add service limitation for Canada Post contract clause A. The panel is satisfied that there is an urgent public need for the service proposed in this application. The licence amendment is approved in whole. Decision Date Panel Chair November 25, 2014 Spencer Mikituk I. Introduction & “Urgent Public Need” Request This is an application from Newton Whalley Hi Way Taxi Ltd. dba Newton Whalley Hi Way Taxi (Newton Whalley), located in Surrey, British Columbia, who provides, in addition to taxi services, crew transport services under contract to Canada Post Corporation (Canada Post). Newton Whalley holds a Special Authorization (Taxi) licence 70974. Under its Special Authorization (SA), Newton Whalley may operate at any time 63 vehicles of which a maximum of 52 may be conventional taxis with a seating capacity of a driver and Page 1 not less than 2 and not more than 7 passengers. All other vehicles are accessible taxis. There is also a Vancouver International Airport (YVR) contract provision that allows Newton Whalley to operate up to an additional 7 vehicles provided an arrangement is in place with YVR Authority for operation of 16 taxis or more at the Airport. Newton Whalley is operating the additional 7 vehicles pursuant to that YVR contract provision. Newton Whalley proposes the following licence amendment: • • To provide transportation under contract for Canada Post and add the following “Service 1 (b) Limitation: Service may only be provided to persons employed or engaged by Canada Post and only when the licensee has a written transportation service agreement with Canada Post or its broker or agent to provide ongoing crew transportation.” To add a new contract service area originating from any point in the City of Surrey, District of Delta and City of White Rock and destination in the City of Surrey, District of Delta and City of White Rock. William A. McLachlan is acting counsel for Newton Whalley for this application. Counsel is asking the Board to process this application on the basis of “urgent public need”. Counsel states that Newton Whalley and a number of other lower mainland taxi companies were of the impression that sending copies of their Canada Post contracts to the PT Branch was all that was required to service the contract. Canada Post traditionally has negotiated rates at a discount from the metered taxi rate. Hence, Newton Whalley and several other taxi companies are now in non-compliance. Contracts that differ from current taxi tariffs require a licence amendment application approved by the PT Board. Taxi companies who negotiate service contracts cannot offer or collect discounts on rates unless they have a service limitation for “crew transportation” on their terms and conditions of licence. II. Relevant Legislation & Board Policy 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). Page 2 Application Decision Passenger Transportation Board The Act also requires the Board to publish notice of applications and consider submissions. If the Board is satisfied that there is an “urgent public need for the service proposed in the application” it does not need to publish the application or consider submissions. 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. III. Reasons I will first examine the matter of “urgent public need”. If I find that there is an urgent public need for the service, I will then consider the applicant’s fitness and whether approval of the application will promote sound economic conditions in the transportation business. If I do not find that there is an “urgent public need” for the service, the application will be published and proceed through the regular process. 1. Is there an urgent public need for the service proposed in the application? Board Policy “Urgent” is relative to the public’s need, not the applicants. It is an exception to the public process for considering applications. Applicants are expected to demonstrate to the board that there is an urgent public need for the application to be processed without notice or consideration of submissions. In considering “urgent public need” the board may consider such things as: Page 3 Application Decision Passenger Transportation Board • • • • Whether other licensees are available to provide the service to the public Whether there is a real public demand for the service How the “urgency” came to exist Whether any of the “urgency” was due to the applicants’ delay If the Board processes an application on the basis of “urgent public need”, it may impose a time limit on the licence that is less than one year and may require an applicant to submit a full application through regular Board processes. Counsel for Newton Whalley has provided the following information and evidence to support a UPN claim: • • • • • • The current Canada Post contract with Newton Whalley is in place until December 31, 2014, and has been operational since July 1, 1999. Since 1994, Newton Whalley has had ongoing contracts with Canada Post. The current agreement is coming up for tender. There are 64 Canada Post trips per day for Newton Whalley. A minimum of 4 to 5 taxis are required to service these trips. Current month/annual revenues represent a significant amount. Newton Whalley will be in breach of contract with Canada Post if there is any service interruption. This service is not offered to the public at large. When operating under the Canada Post contract here is no competition with other transportation companies. The Board recognizes that contracts for the transport of railway, ship or airplane crews as well as postal employees or other specified groups are significant to the taxi industry. The Board has also noted that these contracts are negotiated between the parties and the rates reflect these negotiations. When it introduced the policy change for contract clauses, it noted that: The Board has reviewed this policy and concluded that the filing and approval of such contracted rates imposes an unnecessary regulatory requirement on industry and is not an efficient use of resources. The policy applies only to transportation services for crews, employees and company contractors (generally referred to as “crew transport”) when the services and rates are provided and charged under contract between the parties. (Industry Advisory, September 2007, amended October 24, 2007). Page 4 Application Decision Passenger Transportation Board Rule 45 of the Board’s Rules of Practice and Procedure codifies this policy change and says that approval of contract rates for crew transportation is not required by the PT Board if: (a) There is a valid, current written contract for crew transportation between a licensee and a company or its agent; and (b) The licensee’s conditions of licence have a service limitation specifying that crew transportation service may only be provided if there is a current, valid contract between the licensee and, or on behalf of, a specified organization. Newton Whalley has supplied sufficient information and evidence to show that a revision of their licence Terms and Conditions is required to be competitive in the Canada Post contract tendering process. This is a business to business arrangement. Canada Post has workers that require daily transport and require a service that can accomplish this task. The end result is that a public need exists for this service. Newton Whalley has satisfied me that there is a public need for its proposed service. Therefore, I will consider this application on the basis urgent public need. (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 are expected to 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 5 Application Decision Passenger Transportation Board Newton Whalley has been operating in Surrey and the adjoining Service Areas since 1941. Since Newton Whalley’s inception its taxi fleet has grown to 70 vehicles. The applicant’s National Safety Code certificate is in good standing. The disclosure forms of Unlawful Activity and Bankruptcy and Passenger Transportation Ownership were completed to the satisfaction of the Board. There has not been any information brought to my attention to prove the directors are not fit and proper. If this application were approved, there will be no change as to who is in care and control of the operation or vehicles. I note that the file from the Passenger Transportation Branch contained information regarding one complaint. This matter was closed by the Branch and no administrative penalties were imposed. I have determined that the applicant’s oversight in not obtaining the necessary service limitation for contract rates is not, in and of itself, a barrier to this application approval. However, the Board expects an applicant to monitor its operations closely to ensure that its compliance systems are in order. The Board may at any time initiate a fitness review if a licensee’s fitness may be in question. Newton Whalley has previously been deemed fit, proper and capable in order to obtain and maintain its licence. Newton Whalley has its infrastructure in place and is an established taxi operator with a history of running a viable taxi service. From the evidence provided, I find that the applicant is fit, proper and capable of providing the proposed new contract service. (c) Would the application, if granted, promote sound economic conditions in the passenger transportation business in British Columbia? There are many markets for transportation services. A healthy, competitive industry provides the public with service options while enabling successful operators to run a successful business. Page 6 Application Decision Passenger Transportation Board Application materials have demonstrated that a need exists for the additional service that is being applied for. Given the nature of this business, it would appear that Newton Whalley is not encroaching to any significant extent, if at all, on business from other service providers in the area. This is essentially a business to business arrangement. Approving this application would promote sound economic conditions in the passenger transportation in British Columbia. IV. 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. These form an integral part of the decision. Page 7 Application Decision Passenger Transportation Board Newton Whalley Hi Way Taxi Ltd. Appendix I Licence Required to Operate Vehicles Special Authorization The Registrar of Passenger Transportation must issue the applicant a licence before the applicant can operate any vehicles approved in this decision. Passenger Directed Vehicle (PDV) Terms & Conditions: Vehicles: 1. At any time – 63 motor vehicles of which a maximum of 52 may be conventional taxis. All other vehicles are accessible taxis. Maximum Fleet Size: 2. YVR Contract - The licensee may operate up to an additional 7 vehicles under service 3, if the Vancouver International Airport Authority (VIAA) has approved airport licences for 16 or more vehicles in fleet of the licensee. The maximum number of additional vehicles decreases on a sliding scale as follows: Page 8 Total “airport licenses” approved by the VIAA (or its agent) Additional Vehicles 16 7 70 motor vehicles of which a maximum of 59 may be conventional taxis. All other vehicles are accessible taxis. 15 6 69 motor vehicles of which a maximum of 58 may be conventional taxis. All other vehicles are accessible taxis. 14 5 68 motor vehicles of which a maximum of 57 may be conventional taxis. All other vehicles are accessible taxis. 13 4 67 motor vehicles of which a maximum of 56 may be conventional taxis. All other vehicles are accessible taxis. 12 3 66 motor vehicles of which a maximum of 55 may be conventional taxis. All other vehicles are accessible taxis. 11 2 65 motor vehicles of which a maximum of 54 may be conventional taxis. All other vehicles are accessible taxis. Application Decision Maximum Fleet Size Passenger Transportation Board 10 1 64 motor vehicles of which 53 may be conventional taxis. All other vehicles are accessible taxis. a. When making application for renewal of its licence, Newton Whalley HiWay Taxi Ltd. must submit a letter to the Registrar of Passenger Transportation from Ground Transportation, Vancouver International Airport Authority, stating that its contract with Newton Whalley HiWay Taxi Ltd. remains in good standing. b. The letter referred to in (a) must confirm the number of airport licences approved for Newton Whalley HiWay Taxi Ltd. c. The Registrar may issue appropriate number of identifiers based on the sliding scale above. Specialty Vehicles: The accessible taxis must be operated 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. Vehicle Capacity: A driver and not less than 2 and not more than 7 passengers. Services Service 1(a): The following terms and conditions apply to Service 1: Originating Area: Transportation of passengers may only originate from any point in the City of Surrey, District of Delta and City of White Rock. Destination Area: Transportation of passengers may terminate at any point in British Columbia and beyond the British Columbia/United States border when engaged in an extra-provincial undertaking. Return Trips: The same passengers may 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. Reverse Trips: Transportation of passengers may originate in the destination area if the transportation terminates in the originating area and the cost of the trip is billed to an active account held by the licence holder that was established before the trip was arranged. Service 1 (b): The following terms and conditions apply to Service 1 (b): Originating Area: Transportation of passengers may only originate from any point in the City of Surrey, District of Delta and City of White Rock. Destination Area: Transportation of passengers may only terminate at any point in the City of Surrey, District of Delta and City of White Rock. Service Limitation: Service may only be provided to persons employed or engaged by Canada Post and only when the licensee has a written transportation service agreement with Canada Post or its broker or agent to provide ongoing crew transportation. Page 9 Application Decision Passenger Transportation Board Service 2: The following terms and conditions apply to Service 2: Originating Area: Transportation of passengers may only originate from any point in the City of New Westminster and City of Langley. Destination Area: Transportation of passengers must terminate at a hospital located in the City of New Westminster or the Township of Langley, or at any point in British Columbia. Service Limitation: Service is limited to the transportation of passengers who require the use of a wheelchair equipped vehicle. Service 3: The following terms and conditions apply to Service 3: Originating Area: Transportation of passengers may only originate at the Vancouver International Airport. Destination Area: Transportation of passengers may terminate at any point in British Columbia and beyond the British Columbia/United States border when engaged in an extra-provincial undertaking. Return Trips: The same passengers may 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. Reverse Trips: Transportation of passengers may originate in the destination area if the transportation terminates in the originating area and the cost of the trip is billed to an active account held by the licence holder that was established before the trip was arranged. Service 4: The following terms and conditions apply to Service 4: Originating Area: Transportation of passengers may only originate from any point on the Canadian National Railway Company rail line: Destination Area: Page 10 • along Highway 99 north to Britannia Beach • in the Greater Vancouver Regional District north of the Fraser River and west of the Pitt River • in the Greater Vancouver Regional District south of the Fraser River and west of and including the City of Surrey Transportation of passengers must terminate at any point on the Canadian National Railway Company rail line: • along Highway 99 north to Britannia Beach • in the Greater Vancouver Regional District north of the Fraser River and west of the Pitt River • in the Greater Vancouver Regional District south of the Fraser River and west of and including the City of Surrey Application Decision Passenger Transportation Board Service Limitation: Service may be provided only to persons employed or engaged by the Canadian National Railway Company and only as long as a current written contract exists between the licence holder and the Canadian National Railway Company or its broker or agent. Service 5: The following terms and conditions apply to Service 5: Peak Period Weekend Taxis Originating Area: Transportation of passengers may originate from the Downtown Vancouver Entertainment District, i.e. the area that is bounded by the west property line of Main Street from Burrard Inlet to National Avenue; the projection westward of the north property line of National Avenue from Main Street to False Creek; the north shoreline of False Creek from National Avenue to the extension southward of the west property line of Burrard Street; the west property line of Burrard Street from False Creek to Robson Street, the south property line of Robson Street from Burrard Street to Denman Street, the west property line of Denman Street from Robson Street to Georgia Street; the south property line of Georgia Street from Denman Street to Chilco Street, the east property line of Chilco Street and its extension north from Georgia Street to Burrard Inlet; Burrard Inlet from Chilco Street to Main Street. (See attached map.) Destination Area: Transportation of passengers may terminate at any point in British Columbia. Vehicle Identification Any vehicle operating under this Service must have a “yellow weekend” plate securely fastened in a conspicuous place at the front of the commercial vehicle and in a horizontal position. Maximum number Vehicles A maximum of 2 vehicles may operate under this Service Maximum Operating Requirement: Vehicles may only operate in the Downtown Vancouver Entertainment District on Friday/Saturday and Saturday/Sunday from 10 p.m. to 5:00 a.m. Other Flip Seat Authorization: Passengers may be seated in moveable “flip seats” or “let down seats” that are installed behind the driver in accordance with Division 10.07(5) of the Motor Vehicle Act Regulations. Only eleven (11) accessible taxis may have a flip seat installed. Service Priority Limitation: Persons with mobility aids who require the accessible taxi for transportation purposes are priority clients for the dispatch of accessible taxis. The applicant must at all times use a dispatch and reservation system that dispatches accessible taxis on a priority basis to clients who have a need for accessible vehicles. Minimum Operating Requirement: At least 2 accessible taxis must be operated and available for hire 24 hours each day, every day of the week. Page 11 Application Decision Passenger Transportation Board Express Authorizations: (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 areas only, pick up passengers who hail or flag the motor vehicle from the street. Taxi Camera Equipment: A digital taxi camera that meets board specifications must be installed and operated in each of the licence holder’s vehicles in accordance with applicable rules and orders of the Passenger Transportation Board. Eco-friendly taxis: Any additional conventional taxis approved for this licence on or after June 11, 2007 and for which a passenger transportation identifier is issued, must be operated as ‘eco-friendly taxis’ as defined by Board Policy Guidelines in effect at the time the vehicle is issued a passenger transportation identifier. Taxi Bill of Rights: a) A Taxi Bill of Rights issued by the Ministry of Transportation (“Taxi Bill of Rights”) must be affixed to an interior rear-seat, side window of each taxicab operated under the licence. b) The Taxi Bill of Rights must at all times be displayed in an upright position with the complete text intact and visible to passengers. c) Licensees may only display a current Taxi Bill of Rights. Taxi Identification On or before June 16, 2014, each vehicle operated by the licensee must have Code: a unique taxi identification code (TIC) affixed to the inside and outside of the vehicles in a manner that complies with applicable rules, specifications and orders of the Passenger Transportation Board. Transfer of a licence: Page 12 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. Application Decision Passenger Transportation Board