HomeMy WebLinkAbout6/24/2009 - STAFF REPORTS - 00 Coachella Valley Taxi Study 14
medallion permits away and consider alternatives. Clearly, the time to act on taxi
issues is when there are still companies involved and a community has options.
Interviews with Larger Taxi Firm Owners
Interviews were conducted with all major Coachella Valley taxi firms which had
physical places of business outside their homes during the months of January and
February, 2007. All other owners of taxi firms wers invited by letter to meet at the SR
offices to provide input into this study. Following is a brief description of the major
taxicab fimi facilities and their owner's concerns.
City Cab Co
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Coachella Valley Taxi Study 15
City Cab Co.
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City Cab Company, owned and operated by Dennis Rosenberg, has a fleet of 22
cars and would be classified as a Category 2, full service taxicab company. As sho,'Nn by
these photographs, the fury operates out of a dedicated facility which bouses their'24 "
hour dispatch system, company offices, and a large maintenance facility. In addition,
there is adequate room to park all vehicles in a protected, fenced area.
City Cab generates the most trips of any of the Coachella Valley taxi firms. The
fine generated and serviced 6702 cab trips for the month of November 2006. or
approximately 10-15 trips per day per allocated taxi permit. This represents slightly more
than 16% of the market demand served by all taxicabs in Coachella Valley for the month
of November, 2006.
City Cab dispatching is performed over a radio network, and the firm has just
installed a new GPS based taxi management system. Management is looking forward to
additional reports and data which help manage the growth and financial affairs of the
firm.
TTLF CONSULTING—RAY A. MUNDY,Ph.D.
H. Current Regulatory Environment
The current regulatory environment is aimed at providing the minimum of safety standards for
vehicles and operators. The regulatory agency provides that drivers undergo background checks,
drug tests, and that vehicles are certified mechanically safe with properly operating meters. The
current regulatory environment does not address vehicle service issues, and one reason is the
agency receives few complaints from riders about the service. In an interview with SunLine
Service Groups it was agreed that taxicab service is a service of convenience and most persons do
not complain about a bad taxi ride (dirty car, scary driver, overcharging)and simply find an
alternative for the next trip, other than using taxicabs.
This leaves at risk the frail, elderly, or unsuspecting riders who have no other means of
transportation and feel they must ride with the taxicab that shows up. There is an absence of a true
competitive market in that most persons are subject to the vehicle and driver that arrives after
placing a call for service or standing in line at the Airport or a resort. This lack of market choice
makes it difficult for the rider to know the true quality of service until the trip is underway, by
then limiting the passenger's free market choices.
The regulatory agency has little ability to monitor each ride, and lacks a system to be made aware
of passenger experiences. The regulatory agency's current scope is limited to providing minimum
safety standards for car and driver.
In a well-run company, such as City Cab of Palm Springs,the rider experience is monitored by the
owner and call takers such that poor service quality is corrected by discipline of the driver or
repair of the vehicles. The attention by management to the customer results in a type of self-
regulation.The service quality is important to the company in hopes of repeat business, and the
company is sustained on a certain minimum volume of business. Economically undesirable trips
are provided (generally short trips or passengers that take excessive time to transfet);..twEuty four
hour dispatch is available even though unprofitable at certain times,vehicles are kept in service at
unprofitable hours and wait times are monitored. Complaints are resolved by management in
agreement with the rider. This type of service monitoring is indicative of City Cab's management
concern to sustain or increase the number of rides flowing to the company.
A company's desire to sustain business is at times counter to the individual taxicab operator. A
taxicab operating independently has no accountability and economic factors sometimes
outweigh customer service. When an independent operator sees a ride as unprofitable, the trip is
avoided or sometimes made profitable through unscrupulous means. While most operators are
honest and like to give good service,the ability to select trips can leave a passenger stranded or
taken advantage of,particularly when the operator knows there are no consequences or
accountability. A driver managed by a company is more likely to behave because there is
accountability.
A well-run company like City Cab currently has little economic incentive to invest in service
improvements or increase the number of vehicles in their fleet since the addition of independent
operators continues to dilute business. The increase in vehicles by City Cab has been through the
addition of independents at virtually no investment cost by the company. Providing regulation that
encourages investment by City Cab and guarantees a certain amount of business,increases trips
5
Coachella Valley Taxi Study �g
1 3 $750 for 2 miles seems high but Ihue so is gas, $10.00 with tip was a new
experience for me
They should be more polite when taking calls for pick up; They should be willing to
1 4 come in my restaurant for their pickups;my guests should not have to wail in hot/cold
lemperalures outside
1 5 A Valley Cab is wonderful
1 5 Overall they have very good service
1 7 Rude on phone
At peak limes/season hard to gel a taxi in less than 112 hour,sometimes even longer;
1 10 Dress codes of taxi drivers could be much better Some very sloppy dressed and cars
dirty and had smell(smoke and sweat)
1 11 They are prompt in picking up customers
1 12 Overall very good
1 13 Many cabs (all companies) reek of.smoke from drivers smoking when cab not
occupied;don't smoke when driving customers
1 14 We have been very pleased with the taxi service with all these companies
1 16 Would like to thank City Cab for their kindness to my patrons.They mull put up with
alai Thank you for asking
1 1g [illegible)good services
�1 21 So far we thank them;good services
1 23 They are usually very good in responding to our customers'needs.
1 24 They need to talk more positive about nightclubs;not one-time negative issues.
1 25 Goodsennce
10 5 2 _
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59% 29%
Analysis
Open ended questions arc impossible to quantify other than being positive or
negative- As shown by these results, although there were some very nice comments
about specific taxi companies, their dispatchers, or their drivers, the overwhelming tone
of the comments were negative especially when it comes to price and appearance. One
may argue that this is nothing new when evaluating taxicab companies, but in a tourist
oriented community, taxicab service is the first and last impression visitors will have, and
therefore a visitors' feeling about their visit could very well be colored (positive or
{ negatively) by their taxicab trip to and from the airport.
f
Coachella Valley Taxi Companies: Conclusions
Given the above surveys, interviews, and data analysis, it can be determined that
f the worsening taxi problems within Coachella Valley are due primarily to the
1
TTLF CONSULTING—RAY A.MUNDY, Ph.D.
Coachella Valley Taxi Study 37
HOTELS:
+ nla # Comments
1 2 The bus system needs improvement! Taxpayers' funding is wasted on ineffective
services.
1 3 We used to use Rainbow until they went out of business. Just picked VIP, and they
have been very good to our guests;no complaints for all the years we've used them.
T� 1 4 Roles seem very high for[his area. Most of our guests don't use much because too
costly.
1 5 Taxicab drivers need to he professional and well groomed; they are our city's first
impression when our guests arrive at the airport.
1 8 Have tried Ace,Airport(never agam);American(ok), USA(ok)
1 10 We use VIP exclusively and are very pleased with service.
1 14 We could use a little more service in Desert Mat Spring,perhaps a dedicated cab?
1 15 Mike at A Valley Cab is great; he always takes care of me and makes my hotel a
priority;Bill is wonderful as well.I never call any other company.
1 19 Palm Springs taxi service Is very rude and should not be in business-
20 City Cab fantastic!Have had problems with Airport Taxi and VIP Express with drivers'
very poor attitude
1 21 Answering their phones in a more timely manner and not going directly to voice mail
when calling.Big problem with La Quetta Cab on[his matter
1 26 City Cab serves us well.
1 32 At times we have heard comments from guests stating that cab drivers will either
refuso or reluctantly accept passengers for short[rips to or from[he airport.
1 33 Bring back Line 31 on weekends.
1 36 Twenty Nine Palms Top's taxi is now the only taxicab c0 in this [own It mea6s.not
good service.You should have questions about prices(comparing),etc.
1 38 Some companies have over charged guests, e.g., $35.00 from airport which is less
than mile and a half.
Only City Cab you can count on to not be anti-gay;many cab drivers have no change
39 thus lake advantage of guests;do not want to fake guests to WMM Sands and some
are very anti-gay. There have been this year so far 4 complaints of taxi drivers being
rude;no change and not taking guests to WMM Sands,
1 44 Peak hmes•long wait or no arrival.This happens frequently on holidays. Generally,
_ service Is good except for that.
4 7 7
22% 39% 39%
RESTAURANTS:
+ nla # Comments
fThe one bad experience was when one of our regular customers who is legally blind
1 1 was taken for a ride instead of straight home He refused to pay the driver, he was
very upset.I don't remember the company.
TTLF CONSULTING—RAY A. MUNDY, Ph.D.
,qM PRCIFIC-CEMFUTER-P.EPRIR-FSCR PHONE NO. : 75� �51 4573 Oct. 08 20177 34:47AM PZ
City Cab
668 5, Eugene Road
Palm Springs, CA 92264
Phone: 760,416.2594 & Fax: 760.416.2440
Oct 5, 2007
TO: Naomi nightingale
Sun line Transit Agency
32-505 Harry Oliver Trail
Thousand Palms, CA 92276
Phone: 750.343.3451
Fax: 760,343.3097
RE: vehicle registrations and fleet size
Dear Mrs, Nightingale
I must say I am very sorry that our first communication we are having has to
be one relating to a problem and not one of just saying hello and welcoming you as
the new taxi administrator. Yet it was not my intentions since I have left numerous
requests for a meeting on your answering machine which have gone unanswered
In reply to your letter dated seot.26, 2007 lets starts with the request by you
for kiddl23 inc, to register the vehicles used by city cab in 'the everyday operations
of doing business to be registered into kidd123inc. Name. I went ahead and
contacted departments of motor vehicles at the main office in Sacramento I was told
that since kidd 123 INC. Has filed a fictitious business name statement'kidd123ip+c77 ,.. ,
Doing business as city cab I would have to register the vehicles into the name 6f'a
city cab,
On Wednesday the 2' of October I had a conversation with Lisa Copeland, I
informed her about the conversation with the dept. of motor vehicles I had. She
told me that what I was told by the department of motor vehicles was unacceptable
unless I registered the way you stated in your letter that city cab would not be given
an operator permit for 2008. Lisa then asked me to have my attorney call her.
I did not see a reason to get my attorneys involved at this time especially at
a cost of $500,00 per hour. I decided to go around the HMV and called the
automobile club and told them of.the problem I was having_ To solve zhe problem I
was told to make kidd 123ine, The registered owner doing business as city cab. Yet
to get all 22 cabs changed over I need more time also City Cab has (2) cabs
financed and unless those vehicles are paid off the registered owner can not be
changed. Please advise me on what to do next.
Next lets deal with the problem of sunline not having my social security
number, Well, my social security number is yet as for writings it on my
application that I cannot due since as you must know Sun line already has it_ Ch, by
the way Sun line has also had my social security number on file since 1996.
'FOM PRC1FJC-COMPLJTEP.-REPP1R-PSCR PHONE NO• : 793 251 4573 prt. 012 2307 74:40RM Ps
Lastly the number of cabs city cab needs to take care of the public needs
when requesting a cab. Please understand that if you look a{ the Dr_ Mundy you wifl
notice that city cab is a ful( service cab company with a large cverhead and we
must be able to capitalize on the bussiness when its here. City cab has not or do we
plan on causing the problems of the past, (to many cabs)yet the public thaterV S2no
efFicient taxi service and city cab has alway prided it self on doing
feel it is in the best interest of the taxi riding public to add a few more cabs to our
fleet.
Sincerly
oENNIS ROSE NBERG
PRESIDENT CITY CAE
PRIORITY NOTICE
Account Fxecuirve
(ext 22)
32107 West Lindero Canyon Load#126'Westlake Village, CA 91361 Tera Bridgeford
TEL(818)889-0006 FAX(818)889-9847 Customer Service Representative
762658
Michele Madrigal(ex 12)
NOTICE OF BINDING
Policy Number _
Insurance Mercury Insurance Company C In Issue
Company
Number of
Units
Named Insured Kidd 123, Inc.dba: City Cab
W C�Binding
The terms of this binder may differ from the original application furnished.
i
Policy Term From: September 21, 2007�] To! September 20, 2008 J
Coverages Limits
Automobile Liability $350,000
_ Subject to the Terms and Conditions of the Policy
THIS IS YOUR INVOICE FOR THE DOWN PAYMENT Direct Billed,by Insurance Company
To be Paid Over 9 Installment(s)
__-TotalAnn sal � -town Payments
Total Annual Premium $71,604 $17,901
0
Inspection Fee: - •
GA/Surplus lines fee: -
State SL Fee:
State Tax, - _ _ Down Pavment Due: j
TOTAL ANNUAL DUE:I $ 71,604-00 $ 17,901A0 September 20, 2007
First Installment due in 4
30 Days.
I
We Value Your Business and want you to feel confident that insuring with us will always mean friendly superior service.
Coverge Bound When Signed By Broker:
Thank You For Your Business.
vs 2107 Print Date 9/21107
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DBA CITY CAB MU
668 S.EUGENE RD.
PALM SPRINGS CA. 92264
TELE.760-416-2594
August 1,2008
TAXI ADMINISTRATION OFFICE
c/o SUNLINE REGULATORY AGENCY
ATT:Naomi NIghtengale
32-505 Huffy Oliver frail
Thousand palms ca. 92276
DEAR MRS NIGHTENGALE
SO I COULD BETTER DETERMINE THE EFFECTS "CITY CAB 15 HAVING TO ENDURE" DO TO
THE TAXI ADMINISTATIONS ABILITY TO CONFISCATERID THE 4 VEHICLE PERMITS. I DECIDED
TO LOOK OVER THE COMPANIES END OF THE MONTHS FINANCIAL STATEMENT.
ALARMINGLYAFTER DOING SO I CAME TO THE CONCLUSION THAT BEYOUNDA
SHADOW OF A DOUBT CITY CAB IS LOSING ITS'S CUSTOMER BASE TO THE OTHER CAB
COMPANIES. "THIS I HAVE TO WRITE WILL BE VERY HARD TO CORRECT". BUT IF CITY CAB
CAN HAVE A MEETING WITH YOU AND MR- OGELSBY I FEEI,THAT DURING THAT MEETING
THE DOCUMENTS CITY CAB WILL BRING WILL BE ENOUGH TO FAVOR THE ADMINISTRATIONS
[DECISION IN FAVOR OF CITY CAB, AND THUS RESOLVE THE FINANCIAL BURDEN THE STAFF
AND I AT CITY CAB HAVE BEEN TRYING SO HARD TO AVOID.
SINCERELY YOUR
DENNIS ROSENBERG
PS. PLEASE BE ASSURED WHEN I TELL YOU MY WORD IN BUSINESS I HOLD AT A VERY HIGH
LEVEL SO WITH THAT BE ASSURED THAT WHEN WE MEET YOU WILL NOT NEED LEGAL
COUNSEL PRESENT " I COME BEARING JUST MY MORAL ARGUMENTS"
Cc Mr- Oglesby
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DRA CITY CAB
663 S EUGENE RD.
PALM SPRINGS CA, 92264
TELE 760-416-2594
September 2.2008
TAXI ADMINISTRATION OFFICE
c/o SUNLINE REGULATORY AGENCY
ATT:Naomi Nightengale
32-505 I•lorry Oliver Irail
Thousand palms Ca- 92276
Dear Mrs. Nightengale,
I'm writing this letter on behalf of KIDD 123 Inc.who has invested on enormous sum
of money into City Cab. I contend that whoever is in Charge is lying, and can lie
without a conscious. The fact is, 27 cars were listed on my application, and we both
have proof. It can be collaborated by looking at the insurance binder you received
proving auto coverage of 27 cars dated September 20, 2007,well before the final
application deadline That was so easily extended for the rest of the industry. Twenty-four
of the twenty-seven cars were listed last year as part Of our fleet, I listed those 24 cabs
PLUS the three cobs that were independents. Hopefully I don't have to make you
aware of your awn ordinance, but it states that only 25%of our fleet can be older then
seven years AND 25% of our fleet can be independents. As you'll notice, the
independents had older cars. In order for City Cab to meet the boundaries of the new
ordinance that meant that City Cab had to have 75%company owned cars"arirfi 7,,W,,•;,
of the fleet had to be less then seven years old.That's why I contend the three cars you
have in question were purchased by City Cab to upgrade the fleet by replacing
existing vehicles of City Cabs and meet new standard set forth in the ever so changing
taxi ordinances.
Mrs. Nightengale before I forget to write this ,I would like to bring to your attention to
the fact that in the application there was never a request for vehicle registrations to be
included look at #37 and I Quote "please attach fleet and drivers list" and if you look
at the lists CITY CAB turned in you will seethe information listed was total number of
vehicles along with vehicle make, model year,and Cab number.
I am having a hard time trying to understand your thinking why have you singled the
one cab company that has always looked at the taxi ordinances with the utmost
respect and shaped a cab company doing just that. "if for some reason CITY CAB has
strayed from such you can bet your life it was by accident and not intentional". 1 have
done just about all I can do to try and correct this matter without bringing it to public or
even a more drastic approach taking it thru the legal system.
I have sent you numerous letters asking to meet with you and all I have heard from
you was silence. I have sent letters asking for the direction CITY CAR should take as for
as the upgrading of its taxi fleet, and yet all that was heard was silence, this was the
case last season and thus CITY CAB had to make a bad choice which was to purchase
new vehicles when in fact latter to find out it was not necessary, and would you
pu
rr ,P MEN
Believe me when I tell you that CITY CAB had no other choice but to buy more new
vehicles thus making sure that what ever the taxi administration decides CITY CAB
would be prepared for.
The staff here at CITY CAB has always tried their best io look into the future and
correct any troubles we might face. Yet as for as having so little time to fill out the new
operators application CITY CAB is going to have to ask for more time.
Thank you
Dennis Rosenberg
KIDD123INC. dba CITY CAB
CC:
Michael I-L Wilson(Councilmember) ��
Charles--Mgd"England(Chainnan of Wallninee)
Alan Scman (Councilmember)
Don Adolph
(Mayor)
Ed Monarch(Cot ncilmember)
Robert Spiegel(Councilmember)
Eduardo Gtucia(Mayor)
Roy Wilson(Supervisor)
Mikel Oglesby(General Manager of Sunlinc)