Application Decision. Application: PO Box 2687, Port Hardy BC V0N 2P0. Special Authorization:

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1 Application Decision Application: Applicant Trade Names: Address: Principals: Special Authorization: Summary: BC Ltd Town Taxi PO Box 2687, Port Hardy BC V0N 2P0 WIGARD, Gunnar John Passenger Transportation Licence authorizes the applicant to operate passenger directed vehicles. The special authorization can be viewed in the Weekly Bulletin of July 23, 2008 at Amendment of Licence (PDV) (Section 31 of the Passenger Transportation Act) Proposed amendment of the destination area for Service 1 to any point on Vancouver Island. Proposed amendment to add return trip authorization. Addition of Motor Vehicles (PDV) (Section 32 of the Passenger Transportation Act) Proposed addition of 3 motor vehicles to increase the maximum fleet size for passenger directed vehicles from 4 to 7 vehicles. Publication: The application was published in the PT Board Bulletin on March 30, 2011 Submissions: None Board Determinations: The Board approves the amendments to the terms and conditions of licence. The Board approves 2 additional vehicles. Page 1

2 Board Considerations: The Board may approve an application forwarded to it by the Registrar of Passenger Transportation if the Board considers, as set out in section 28(1) of the Passenger Transportation Act, 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. The Board may approve a special authorization if all three provisions are answered in the affirmative. The Board may refuse a licence if any one provision is answered in the negative. Application Matters: The Board views taxicabs as complementary to the public transportation system used by many people in their daily life. For these types of applications, the Board is looking for supporting documentation from potential users as well as business plans and financial statements when considering public need, applicant fitness and economic conditions. The length and complexity of the business plan and financial information as well as the volume of letters or statements from potential users should reflect the following factors: the type, size, and complexity of the proposed transportation business; and the degree of comparable competition in the operating area. Regardless of how much supporting material is provided, it is up to the applicant to guide the Board as to what conclusion it should reach based on the supporting data and information that it submits with its application. The Application Handbook, a companion to the application package and forms, contains information on application requirements and Board considerations. Background: BC LTD, dba Town Taxi, operates 4 vehicles under PT licence The originating and destination areas for the service are from any point in the District of Port Hardy and within 75 road kilometers of the District boundaries. Gunnar Wigard is the sole director of the company and is seeking amendments to the licence to expand the destination area, add return trip authorization and add 3 vehicles to the current fleet. This application was originally put forward as an UPN. It was declined under this category and is proceeding under the regular Board application process. The applicant submitted additional documentation to support the application. Page 2 Application Decision Passenger Transportation Board

3 In the application material, Mr. Wigard states he has now determined that the other taxi company in the area, North Island Taxi Ltd. (NITL), will operate in some capacity. As a result the applicant is requesting 2 additional vehicles, not 3 as set out in the application. Reasons: I. Is there a public need for the service that the applicant proposes to provide under special authorization? Applicants wanting to extend existing services to a new area should provide to the Board evidence of unmet need in the area. (a) Amendment to the destination area and the addition of return trip authorization. The applicant reported that when Town Taxi was purchased in 2006, 4 special authorization taxi licenses were transferred with terms and conditions, rates and rules already in place. Throughout the 5 years of operation the applicant has considered amending certain conditions. It is noted that a change of rate application (T84 11) from the company for point to point rates was recently approved. The destination area is the same as the originating area for Service 1 and the applicant is seeking to have this amended to read that transportation of passengers must terminate at any point on Vancouver Island. Town Taxi cited 3 requests in March alone to transport passengers to Campbell River; however it is not authorized to provide such service. This amendment would increase the scope of service and satisfy any destination request on Vancouver Island. Both North Island Taxi and North Island Transportation are approved to take passengers to any point on Vancouver Island. The return trip authorization allows a passenger to come back from a termination point in the destination area and return to the originating area when the return trip is arranged by the time the originating trip terminates. This term and condition is common within the taxi industry and appears on many licenses. It too improves the scope of service to the passenger. I approve both these amendments to PT licence The proposed amendments would enhance the taxi service to the public. The applicant has shown that a need exists to offer and provide these services. The proposal puts the applicant on a more level footing with other operators. In this case, approving the application would promote sound economic conditions in the local transportation industry. (b) Additional vehicles Existing taxicab operators who apply for additional vehicles (to be operated within the same operating area) should supply evidence of a growing public need that exceeds taxicab capacity in the area. In these instances, past ridership data and recent trend information may be helpful in establishing need. Page 3 Application Decision Passenger Transportation Board

4 In support of the request for 2 additional taxis, as amended by the applicant, he offered the following information: We utilize our fleet to capacity every week of the year. Town Taxi identified several standard days each month when all 4 cars are in operation. During the tourist season, Prince Rupert ferry and the Mid Coast ferry arrive on opposite days with as many as 125 walk on passengers requiring transportation service. Visitors must wait for service for the 20 minute trip and local customers cannot be served while the taxis are transporting the ferry passengers. We are finding it increasingly difficult to keep up with the growing demand for taxis. (i) Distances between communities The applicant pointed out that Port Hardy s neighbouring communities are spread out in distance and the resulting travel time. Coal Harbour and back is 45 minutes; Port McNeill is 1 hour; Port Alice is 2 hours and Telegraph Cove is 2 ½ hours. Apparently it is not uncommon to have all vehicles out of town on some days. Last summer, Town Taxi provided service from the Port Hardy airport to a fishing resort in Telegraph Harbour. It reported that on July 22, August 12 and August 15, 54 local fares were missed as the taxis were busy providing the transfers for this resort. (ii) Fleet utilization Town Taxi provided scheduling data for the 4 taxis. They appear to be operating at capacity from noon to 7 pm on Fridays, income assistance and child tax days. This demand has continued in the summer months and special event days. From January 20, 2011 to March 11, 2011, 89 requests could not be fulfilled. The applicant states this trend is continuing through March and April and projected to increase dramatically into the summer. Comparable monthly taxi trip totals were supplied from April, 2009 to March, 2011 indicating a 9% increase in demand. The past two months had an increase of 1310 trips over the same period last year. Some of this demand is probably a result of the reorganization that the other company, North Island Taxi, was undergoing. Financial statements for 2010 and 2011 reflect that the increase in ridership has increased the revenue from fares and the net income. The applicant also pointed out the challenge to supply service with unexpected repairs to the vehicles. A list was supplied that showed repairs to a vehicle were required on 10 full fleet capacity days. (iii) The economy The economic conditions have been improving in the area. We have several companies that deal with us exclusively and rely on our 24/7 service to get them to their jobs. There is a growing demand to transport marine guides. Three large projects; Seabreeze Windfarm, the purchase of Neucel Specialty Cellulose and Orca Sand & Gravel Project are Page 4 Application Decision Passenger Transportation Board

5 stimulating the economy in the Port Hardy area and consequently the demand for taxi service is increasing. The applicant reports that it has experienced a large increase in pre arranged bookings. Local hotels are pre booking to ensure availability. Industrial companies such as Seaspan, Kamtech Services, Orca Sand and Gravel and the Pacific Pilotage Authority now pre book and this demand has increased over the past year. One company s account has doubled. (iv) Support material In the original application, letters of support were received from Glen Lyon Inn & Suites, Quarterdeck Inn & Marina Resort and MADD. The first 2 stated that their companies use Town Taxi extensively but have had occasions when service is unavailable. MADD specifically identified the stricter drinking and driving laws as the reason for having more taxis available. With the additional material supplied, the applicant presented 10 survey/user support statements. All were signed by individuals and identified with a company. The premise of the survey was to show that the demand for taxi service is greater than the service that is currently provided when operating at capacity. The majority of the respondents remarked that wait times were unsatisfactory and that they had experienced situations when service was unavailable. All remarked that Town Taxi was their company of choice. (v) The competitor As mentioned earlier, the other taxi company in Port Hardy, North Island Taxi Ltd. (NITL) has recently undergone re organization due to the death of its principal shareholder. The company is licensed for 5 vehicles, however for the past while and currently has only 3 active identifiers. According to the applicant, NITL has indicated its operating hours will be 1 shift Monday to Friday, 8 am to 10 pm and Saturday/ Sunday 8 am to 8 pm. NITL is not a submitter to this application. The Board wished to verify the level of operational service NITL is providing, so as a procedural matter it requested that the Registr ar, Passenger Transportation Branch, investigate and confirm certain information. Part 2 (5) (g,h) of the Passenger Transportation Act authorizes the Registrar to investigate any matter related to an application for a passenger directed vehicle. After its investigation, the Registrar s office responded with the following comments: Several attempts were made to contact NITL by telephone; receiving the recording the mobile customer you are dialing is away from the phone or out of the service area. Another phone number listed is no longer in service. Rebecca Comis, Manager for NITL, responded to the request for current operating hours and supplied drivers trip sheet data for February 1, 2011 to April 28, NITL indicated that weekday service is from 9 am to 9 pm, while the taxis operate on weekends 8 am to 8 pm. NITL does not have a night driver due to its economic conditions. These hours of operation are very much the same as the applicant had indicated. The applicant also pointed out that a large percentage of the airport and Page 5 Application Decision Passenger Transportation Board

6 ferry traffic move after 10 pm and before 9 am, so there is a demand for service when NITL is not operating. The Branch records also confirmed that: 5 identifiers were renewed for 2009/ identifiers were renewed for 2010/ identifiers were renewed for 2011/2012 I note that the 2011/12 year has not concluded. The applicant was informed of the Branch investigation and the responses provided by NITL. Mr. Wigard pointed out that NITL s data records show the company did not operate on 10 days within the period of March 7 to April 26 and operated shorter hours on some of the busier and more profitable days during this period. I find that the applicant has supplied the evidence to show public need. The Port Hardy area is currently authorized for 9 taxis, however only 7 are in operation. There is indication that on several days in a month the demand exceeds capacity and service is unavailable to some users. The improving economy, increasing tourism and large distances between communities warrants the addition of 2 vehicles to bring the current operating level to 9 taxis. II. Is the applicant a fit and proper person to provide that service and is the applicant capable of providing that service? The Board considers applicant fitness from two perspectives, or in two steps: (a) is the applicant a fit and proper person to provide the proposed service; and (b) is the applicant capable of providing that service? Gunnar Wigard was involved in the purchase of Town Taxi in In 2008, he transferred ownership to BC Ltd, of which he is the sole director. The application included a condensed operating plan, financial statements, along with the disclosure of unlawful activity and bankruptcy and the disclosure of passenger transportation ownership forms. Town Taxi employs 13 full and part time drivers and over the past 5 years has focused on building a solid reputation. Taking into account the applicant s past experience, it is determined that it satisfies the requirement to keep care and control over the operations conducted under the licence. Support material attested to the high standard and reliable service offered by Town Taxi. The applicant has the background, experience and skills to manage the additional vehicles. Town Taxi has an operational procedure in place. I conclude that the applicant is fit, proper and capable to manage the proposed additional vehicles and amendments to licence. Page 6 Application Decision Passenger Transportation Board

7 III. Would the application, if granted, promote sound economic conditions in the passenger transportation business in British Columbia? The Board approaches the economic conditions issue from a broad perspective. The economic conditions of the transportation business in British Columbia are considered ahead of the economic and financial interests of an individual applicant or operator. The Board supports healthy competition within passenger transportation markets. As well, the Board discourages destructive forms of competition that could unduly harm existing service providers. The Board considers the impact of decisions on presently licensed operators. Licensees are expected to provide the service for which they are approved. It is recognized that due to unforeseen circumstances, the competitor NITL, is not operating to its full licensed capacity. The applicant is attempting to fill this shortfall in taxi service for the Port Hardy area The addition of 2 vehicles to meet the demands of the large time distance points in the area served by the applicant should help alleviate the wait times and decrease the incidents of unavailability of taxi service. As previously mentioned, Port Hardy is authorized for 9 taxis, 7 of which have current active licenses. With the addition of 2 vehicles, the combined fleets of the 2 taxi companies would again be 9 operational taxis. The only taxi competitor has not objected to this application. The additional taxis will allow the applicant to provide a better service to the local population as well as visitors. I find that in granting of this application will promote sound economic conditions in the passenger transportation industry. Activation of Identifiers Notice to Registrar re: Activation Unless otherwise approved by the Board, the additional identifiers approved in this decision must be activated within 6 months of the date of this decision. Any additional identifiers that have not been activated within the 6 month time period are no longer approved and the maximum fleet size is reduced accordingly. The Registrar must not, without direction from the Board, issue any identifiers for additional vehicles approved in this decision that have not been activated within the 6 months of the date of the decision. (Note: activation means completed paperwork for each vehicle has been submitted by the licensee to the Registrar.) Page 7 Application Decision Passenger Transportation Board

8 Special Authorization : Terms & Conditions: Vehicles: Maximum Fleet Size: Vehicle Capacity (T): Services: Passenger Directed Vehicle (PDV) The terms and conditions proposed below are in addition to the terms and conditions that were previously approved by the Board. 6 passenger directed vehicles Vehicles can accommodate a driver and not less than 2 and not more than 7 passengers. Originating Area: Transportation of passengers may only originate from any point in the District of Port Hardy and within 75 road kilometers of the boundaries of the District of Port Hardy. Destination Area: Transportation of passengers must terminate at any point on Vancouver Island. Return Trips: The same passengers may be returned from where their return trip terminates in the destination area to any point within the originating area when the return trip is arranged by the time the originating trip terminates. Express Authorizations: (i) Vehicles may 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 area only, pick up passengers who hail or flag the motor vehicle from the street. Taxi Cameras: Taxi camera equipment may only be installed and operated in vehicles when the licensee is in compliance with applicable taxi camera rules, standards and orders of the Passenger Transportation Board. Transfer of a licence: 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. Board Panel Chair: Brenda Brown Determination Date: June 9, 2011 Page 8 Application Decision Passenger Transportation Board