Daly City Municipal Code Div. II Certificate of Public Convenience and Necessity

No person shall engage in the business of operating any taxicab or handicapped serving van within the city without first having obtained a certificate of public convenience and necessity from the city council of the city and a taxicab or handicapped serving van permit for the operation of each vehicle authorized under such certificate of public convenience and necessity from the chief of police.

A. No permit shall be required for any operations for which a certificate or permit has been issued by the Public Utilities Commission of the state or by the Interstate Commerce Commission of the United States of America.

B. Any taxicab may, however, transport a passenger or passengers from a point outside the city to a destination within the city or may proceed through the city while en route to a destination outside of the city without issuance of a permit, and such operations shall not of themselves constitute engaging in business in the city within the meaning of this chapter.

C. Transporting a passenger or passengers, by a taxicab or other vehicle for hire, from a point inside of the city to a destination either inside or outside the city, except by those individuals or entities that have a current and valid city certificate of public convenience and necessity as provided for by Division II of this chapter, is a violation of this chapter. Such violation may be enforced by civil remedies, as a criminal violation under Section 5.72.090, or by vehicle impound as provided for in Section 5.72.080 of this chapter.

1. This section shall not apply to the operation of motor vehicles engaged in the business of, or used for, transporting passengers for hire when such motor vehicles are operated under and by authority of certificates of public convenience and necessity issued by the Public Utilities Commission of the state of California or by the Interstate Commerce Commission; provided, however, that this clause shall be construed to create an exception only to the extent, character and type of operation expressly prescribed and authorized by the certificate issued by such Commission and shall be limited by and entirely within the scope of such certificate as issued by such Commission.

2. This section shall not apply to private ambulances, public buses, funeral vehicles, San Francisco Bay Area Rapid Transit District vehicles or established vanpool vehicles.

3. Other than as provided in subsections 1 and 2 of this section, nonpermitted taxicabs may not respond to calls within the city without issuance of a certificate of public convenience and necessity by the city.

D. Permits granted pursuant to this chapter constitute a privilege and do not constitute property of the permittee. No permit issued under this chapter shall be transferable or assignable, either expressly or by operation of law.

(Ord. 1278 § 3 (part), 2000)

All persons or business entities applying to the city for a certificate of public convenience and necessity to operate one or more taxicab or handicapped serving vans, upon payment of an application fee, shall file with the city council of the city a sworn application in a form stating as follows:

A. The name, residence and business address of the applicant, if a natural person. If a firm, association or partnership, the name and address thereof and the names and residences of any/all members, associates, partners. If a corporation, the name and address thereof and the names and addresses of any persons owning more than twenty percent of the voting stock of the corporation as well as the names and addresses of any/all corporate officers;

B. Two completed fingerprint cards and two passport-size photographs of each person named in the application;

C. Social Security number of the applicant, if a natural person; if a corporation, then the Social Security numbers of all officers;

D. Nature of business and the fictitious name, if any, under which the business is proposed to be operated;

E. Whether any license, permit or certificate issued to the applicant has been denied, revoked or suspended by any public authority. The circumstances of such denial, revocation or suspension shall be fully explained;

F. The number of vehicles proposed to be operated and their make, model, vehicle identification number, license number, company assigned taxi number and year of manufacture;

G. The name, type, year of manufacture, motor number, serial number and passenger seating capacity of each vehicle proposed to be operated for which a permit will be requested and the designated number of each taxicab or handicapped serving van to be operated;

H. The color scheme, name, monogram or insignia to appear on the vehicles;

I. A complete schedule of fares or rates to be charged and services to be offered;

J. A copy of the taxicab meter inspection certificate provided by the San Mateo County department of weights and measures for each taxicab the company proposes to put into service within the city;

K. The location and description of the place or places from which it is intended to operate the business for which a permit is requested; to and including dispatch facilities, location storage or parking of vehicles, main business office, repair or maintenance facilities;

L. Satisfactory proof that the proposed business location(s) is/are properly zoned and is/are in compliance with any required land use permit, for the conduct of the proposed business;

M. A duplicate copy of the insurance policies and additional insured certification required by Section 5.72.020; or where not yet issued, the written statement from an insurer that such insurance policies will be issued if the application is granted;

N. A statement as to whether or not the applicant(s) or any officers of the applicant have been convicted of any crime, misdemeanor or violation of any municipal ordinance or state law (other than minor traffic and parking offenses), the nature of the offense and the punishment or penalty assessed for the offense;

O. Any facts which the applicant believes tend to prove that public convenience and necessity require the granting of a permit;

P. Such other information as the chief of police, city manager or their designees may deem necessary in support of the public health, safety and welfare.

(Ord. 1278 § 3 (part), 2000)

Immediately upon the filing of such an application as specified in Section 5.72.120, the chief of police shall cause a notice to be published in a newspaper of general circulation within the city, which notice shall set forth the fact that application has been filed for a certificate of public convenience and necessity to operate taxicab or handicapped serving vans, the name of the applicant and the number of vehicles proposed to be operated. Such notice shall be published once and the publication shall be at least ten days prior to the hearing. On filing the application, the applicant shall pay to the chief of police the costs and expenses of advertising.

(Ord. 1278 § 3 (part), 2000)

Members of the public, and all holders of existing certificates of public convenience and necessity for the operation of motor vehicles for hire shall thereupon at any time before the hearing be entitled to file written objections or protests to the granting of such application. The city council of the city shall consider all of the objections and protests and in conducting its hearings shall have the right to review any testimony or evidence offered for consideration.

In all such hearings the burden of proof shall be upon the applicant to establish by clear and convincing evidence which shall satisfy the city council of the city that public convenience and necessity require such operation of the vehicle or vehicles for which such application has been made and that such application in all respects should be granted.

(Ord. 1278 § 3 (part), 2000)

The city council of the city, in determining whether or not public convenience and necessity exists, shall take into consideration all facts which it may deem pertinent and proper.

A. No such application shall be granted unless the city council of the city shall first make its specific findings that each of the following conditions exist:

1. That the applicant is financially responsible;

2. That the applicant is of good moral character or that the officers of the applicant are of good moral character consistent with state and federal law, and for the public services that will be provided by a taxicab service provider;

3. That the persons holding existing certificates or permits for the operation of taxicabs and handicapped serving vans are under efficient management, earning a fair and reasonable return on their capital devoted to such service, except that the applicant shall not be required to carry the burden of proof as to this subsection;

4. That persons holding existing certificates or permits for the operation of taxicabs and handicapped serving vans are, under normal conditions, inadequately serving the public;

5. That the applicant has complied with the provisions of all city ordinances and all state and federal laws applicable to the proposed operation;

6. That such additional service will not result in a greater hazard to the public and will not create traffic congestion in parking.

B. Denial of a permit shall be made if any or all of the findings set forth in this subsection are made by the city council:

1. Public convenience and necessity, as defined in this chapter, do not require the proposed service;

2. The application fails to contain any of the required information as set forth in Section 5.72.120;

3. Any information contained in the application is false;

4. The chief of police, the city manager or their designees determine that based upon the application information and consideration of professionally accepted accounting principles, it appears that the applicant lacks the financial ability to provide the proposed service in a safe and continuous manner;

5. Any vehicle proposed for operation is not safe, and the applicant has failed to remove such vehicle from service or to substitute a safe vehicle in its place within a reasonable time;

6. The applicant, within five years prior to the date of the application has been convicted of a crime, and the crime is substantially related to the qualifications, functions or duties of a public transportation business;

7. The applicant is on parole or probation for a crime, and the crime is substantially related to the qualifications, functions and duties of a public transportation business;

8. The applicant, within five years prior to the date of application, has committed an act involving violence, dishonesty or fraud with the intent to injure another person or to benefit the applicant or another;

9. The applicant has had a certificate of convenience or taxicab business permit issued under the provisions of this chapter revoked within five years of the date of the application.

C. In making the findings specified in subsection B of this section, the city council shall take into consideration the number of taxicabs already in operation, whether existing and projected transportation services are adequate to meet the public need, the probable effect of increased service on local traffic conditions, the experience of the applicant and his or her ability to provide services, and the need to maintain the viability of taxi services in all economic circumstances and conditions.

D. The decision of the city council as to need and necessity shall be final.

(Ord. 1278 § 3 (part), 2000)

If the city council of the city finds from its investigation and hearing that public convenience and necessity justify the creating and issuing of an additional certificate of public convenience and necessity and the granting of taxicab or handicapped serving van permits requested thereunder, it shall notify the applicant of its findings, and within sixty days thereafter the applicant shall furnish to the chief of police any and all additional information which may be required, and if the chief of police then finds that the vehicles proposed to be used by the applicant meet the requirements as prescribed by the provisions of this chapter and other ordinances of the city, it shall thereupon issue to the applicant a certificate of public convenience and necessity and such taxicab or handicapped serving van permits as were authorized thereunder.

(Ord. 1278 § 3 (part), 2000)

A. If the city council of the city finds from such investigation and hearing that public convenience and necessity does not justify the granting of an additional certificate of public convenience and necessity, it shall forthwith notify the applicant of its finding.

B. An applicant that is denied on the basis of misstated or omitted information must wait for a period of twelve calendar months before submitting a new application.

(Ord. 1278 § 3 (part), 2000)

Every owner operating a licensed taxicab or handicapped serving van prior to the effective date of the ordinance codified in this chapter, shall be presumed, in the absence of any contrary evidence and finding of the city council of the city, to have provided prima facie evidence of public convenience and necessity for the licensing of the taxicab or handicapped serving vans actually in operation, and the city council, upon application received by the city, shall grant a certificate of public convenience and necessity to such owner for the operation of taxicab or handicapped serving vans. Every owner obtaining a certificate as set forth in this section shall be entitled to the number of taxicab or handicapped serving van permits held by such owner that were in force on the effective date of the ordinance codified in this chapter.

(Ord. 1278 § 3 (part), 2000)

A. Permission to operate additional vehicles in addition to those approved under the initial, or presumed initial permit of public convenience and necessity may be obtained by filing an application for additional taxicabs or handicapped serving vans with the Chief of Police in the same manner as prescribed by this chapter for obtaining the initial certificate.

B. In granting or denying such applications for additional vehicles, the city council shall have the same authority as vested by this chapter in the matter of the initial application.

C. Any additional taxicab or handicapped serving van must have the relevant documentation required in Section 5.72.120.

(Ord. 1278 § 3 (part), 2000)

The city manager may recommend to the city council that a conditional certificate, valid for one year, be issued to persons or business entities not previously holding a certificate with the city. Upon expiration of the one-year period, and upon the certificate holder's showing of public convenience and necessity, the city council may renew the certificate for an additional period, or issue an unrestricted certificate.

(Ord. 1278 § 3 (part), 2000)

The certificate of public convenience and necessity may be suspended or revoked by the city council of the city upon the following grounds:

A. The certificate holder knowingly and after notice from the chief of police fails to engage in the business of operating any taxicab or handicapped serving van in accordance with the provisions of this chapter and any and all state and federal laws applicable to the operation of such a business.

B. The taxicab or handicapped serving vans are operated at a rate of fare other than that approved by the city council of the city.

C. The company shall abandon its operation of all vehicles for a period of thirty days. Acts of God, labor disputes and other acts beyond the control of the certificate holder which cause an abandonment or limitation of service shall not be an abandonment within the meaning of this section.

D. The certificate holder has committed acts or carried on a course of conduct which the city council of the city finds, after hearing, establishes a lack of good moral character, or chronic violation of this chapter or of the "Taxicab Rules and Regulations."

E. The certificate holder fails to perform controlled substance and alcohol testing of employees pursuant to the requirements of Division III of this chapter.

No suspension or revocation under this section shall be made effective until a hearing has been held before the city council of the city, at which time the certificate holder may be present and represented by counsel. The certificate holder shall have not less than ten days' notice by first class mail of the hearing.

(Ord. 1278 § 3 (part), 2000)

A. Lesser violations of any provisions of this chapter by the taxicab certificate holder or any one of a taxicab business certificate holder's employee drivers, lessees or persons operating a vehicle under some other legal arrangement with the certificate holder, within any twelve-month period may result in the imposition of punitive actions as follows at the direction of the chief of police:

1. First violation: suspension of the taxicab certificate for a period of not more than three calendar days;

2. Second violation: suspension of the taxicab certificate for a period of not more than seven calendar days;

3. Third violation: suspension of the taxicab certificate for a period of not more than fourteen calendar days.

B. Any violation of this chapter subsequent to the first shall be counted as a second or third violation, even if the violation involves a different vehicle, driver or infraction of a different section of this chapter.

C. Three suspensions within any twelve-month period may result in a more serious suspension or revocation of the taxicab certificate by city council action pursuant to Section 5.72.200.

(Ord. 1278 § 3 (part), 2000)

No certificate of public convenience and necessity may be sold, assigned, mortgaged, willed, inherited or otherwise transferred without the consent of the Daly City city council, after due consideration of an application, filed by the proposed transferee.

(Ord. 1278 § 3 (part), 2000)