Application Decision Application: 2045-06 Applicant: Address: Principals: Summary: Related Applications: (for cross reference only) Sun City Coachlines Ltd. 1229 Cranbrook Street, Cranbrook, BC V1C 3S6 DARULA, John DARULA, Kathleen New Special Authorization (ICB) (Section 26 of the Passenger Transportation Act) Proposed new special authorization to operate inter-city buses between Cranbrook and Golden at least once daily in each direction (Dicken Mechanical Ltd. has this authority to provide this service at a minimum of once-daily). If applications 2045-06 and 2044-06 are approved, Dicken Mechanical Ltd. will surrender to the Registrar of Passenger Transportation its Passenger Transportation Licence 70481 and related vehicle identification certificates and plates. 2044-06: Silver City Stagelines Ltd. New Special Authorization (ICB) Publication: The application was published in the PT Board Bulletin on September 20, 2006 Submissions: Board Considerations: Board Decisions: None 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. The special authorization sought by the applicant is approved. The terms and conditions sought by the applicant are approved. Page 1
Background Dicken Mechanical Ltd. is authorized under Passenger Transportation Licence 70481 to operate inter-city buses between Cranbrook and Golden a minimum of once daily and between Trail and Castlegar a minimum of three times daily. Dicken Mechanical Ltd. (Dicken Bus Lines Ltd.) sold the business to John Darula and Kathleen P. Darula. At the time of purchase, the new owners decided to divide the assets and the business that was being purchased from Dicken Mechanical Ltd., into two separate limited companies. As a result, Silver City Stagelines Ltd. and Sun City Coachlines Ltd. were incorporated on May 12, 2006. Applications 2044-06 and 2045-06 are proposed new special authorizations to operate inter-city buses under the names of Silver City Stagelines Ltd. and Sun City Coachlines Ltd. If the applications are approved, Dicken Mechanical Ltd. will surrender to the Registrar of Passenger Transportation its licence and related vehicle identification certificates and plates. The operational plan for both companies is to maintain the schedules and tariffs that are in place under the terms of the current licence with one exception. The applicant has requested to make the Village of Canal Flats a flag stop rather than a scheduled route point as per the current licence. The applicant is also proposing to offer a once daily minimum for each direction. In this regard, the Board requested that the Branch make further inquiries of the applicant. A detailed written response was received promptly and has been reviewed in the course of this application review. Reasons: I. Is there a public need for the service that the applicant proposes to provide under special authorization? Sun City Coachlines Ltd. is proposing to operate the Cranbrook/Golden intercity schedule as per PT Licence 70481. Route points are the City of Cranbrook, City of Kimberley, Skookumchuck, Fairmont Hot Springs, District of Invermere, Village of Radium Hot Springs and Town of Golden. The applicant has requested to make the Village of Canal Flats a flag stop rather than a scheduled route point as per the current licence. The applicant is also proposing to offer a once daily minimum for each direction. Sun City Coachlines Ltd. will provide a feeder service for passengers living in the communities of the Columbia Valley, Kimberley, Skookumchuck, Canal Flats, Fairmont, Invermere, Radium and the small communities between Radium and Golden to connect to Greyhound Canada s nation-wide passenger bus service. According to the information provided in this application, this service is vital to Greyhound as it is the connector service for all Greyhound customers in the Columbia Valley wishing to connect to Greyhound s routes to the interior of British Columbia and the Lower Mainland. With respect to the proposed change in service for the Village of Canal Flats, according to the written information provided by the applicant subsequent to further investigation by the Branch, although Dicken Bus Lines had listed Page 2 Application Decision Passenger Transportation Board
Canal Flats as a scheduled stop the reality is that there is no Greyhound or other bus depot in the community and therefore, no place that can be designated as a bus stop. Since the closure of Greyhound s depot, anyone who has required service over the past several years calls the next local Greyhound agency which may be Fairmont or Skookumchuck, Kimberley or Cranbrook and requested the bus to stop. All of the drivers on this route, either Greyhound or the applicant s operator, keep a careful lookout for any would-be customers on the side of the road and will stop to question anyone who flags them down. A copy of the 5-year Interline Agreement between Greyhound Canada Transportation Corp. and Sun City Coachlines Ltd. is included with the application documents. With the surrender of PT Licence 70481, as confirmed by Dicken Mechanical Ltd., there is no competition and I am satisfied that a public need exists for this service. I am also satisfied that the proposed change to service status in Canal Flats will not be detrimental to persons requiring passenger transportation service originating at that location. 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? Mr. Darula is the President of Silver City Stagelines Ltd. and Sun City Coachlines Ltd. According to the information provided by the applicant, Mr. Darula will be in control of major issues and directives of both companies. Mr. Darula has extensive experience in both passenger and freight transportation. He has owned and managed Sun City Couriers Ltd. since 1995, and managed Cranbrook Transit System since its inception in 1999. In 2003, Mr. Darula assumed management of the Cranbrook Handy Dart system. In addition, Mr. Darula states that he has more than 10 years experience as one of Greyhound Bus Lines top agents. Ms. Carol Schwab will assist in the Trail operation. Ms. Schwab was managing the Trail operation of Dicken Bus Lines (Dicken Mechanical Ltd.) prior to the sale of the business to Mr. Darula. All other employees that worked for Dicken Bus Lines are being rehired by both companies. The applicant provided extensive financial documentation, a business plan and a letter of support from Dicken Mechanical Ltd. I find that the applicant is a fit and proper person to provide the proposed service, and that the applicant is capable of providing that service. 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 Page 3 Application Decision Passenger Transportation Board
Activation: Special Authorization: Terms & Conditions: 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. Dicken Mechanical Ltd. existed to provide a feeder service for passengers to connect to connect to Greyhound Canada s nation-wide passenger bus service. Silver City Stagelines Ltd. and Sun City Coachlines Ltd. will continue to provide those services. Based on my review of the information provided in this file, and subject to the surrender of PT Licence 70481 to the Registrar, I find that approval of this application for special authorization will contribute to sound economic conditions in the passenger transportation industry in British Columbia. Service to the public must not be disrupted as a result of the Board s approval of this application. Provided that the Registrar s licence issuance requirements are met, a licence may be issued to Sun City Coachlines Ltd. when Dicken Mechanical Ltd. surrenders to the Registrar of Passenger Transportation its Passenger Transportation Licence 70481 and related vehicle identification certificates and plates. On the day following the issuance of the licence referred to above, Dicken Mechanical Ltd. must cease its inter-city bus service and Sun City Coachlines Ltd. must start providing inter-city bus service between the City of Cranbrook and the Town of Golden pursuant to the approved route and minimum route frequencies. Inter-City Bus (ICB) Service: Schedule: Transportation of passengers must be provided to and from each route point on a scheduled basis according to the frequency that is set for the authorized route. The licence holder must publish, in a manner accessible to the general public, a schedule for each route with the time and location of each stop, and must carry in each vehicle a copy of the schedule that the vehicle is following. Abbreviation: fd flag (where the vehicle will stop on signal to pick up a passenger) or drop (where the vehicle will stop on signal to drop off a passenger on board), or both. Route Number: 1 Terminating Point 1: Terminating Point 2: City of Cranbrook Town of Golden Authorized Route: Route Points Daily Minimum (each direction) City of Cranbrook 1 City of Kimberley 1 Skookumchuck 1 Village of Canal Flats Fairmont Hot Springs 1 1 fd Page 4 Application Decision Passenger Transportation Board
District of Invermere 1 Village of Radium Hot Springs 1 Town of Golden 1 Board Panel Chair: Donna Hains Determination Date: December 12, 2006 Page 5 Application Decision Passenger Transportation Board