Taxi Franchises

An attempt by Los Angeles city transportation officials to revoke the operating franchise of one of two Valley taxi firms may become bogged down in a legal morass. The city Transportation Commission recommended in June that city officials revoke the franchise from the San Fernando Valley Checker Cab Co., citing the firm's failure to provide promised services, such as a computerized dispatching system and seven wheelchair-accessible cabs.

A judge Wednesday issued a temporary restraining order barring Santa Monica from instituting a new taxi franchising system that a group of Armenian American cab drivers say discriminates against them. Judge Robert H. O'Brien gave attorneys until Jan. 7 to show why the preliminary injunction shouldn't be granted in the case filed by the Taxi Drivers Assn. of Santa Monica, which sued the city Tuesday in civil court in downtown Los Angeles. The association represents five cab companies owned or operated by Armenian Americans ?

A city commission Thursday indicated a willingness to give more freedom to non-Valley cab companies to serve Valley riders while the city hunts for a new taxi company to serve local communities. Under the proposed changes, non-Valley taxis would be allowed temporarily to pick up passengers on Valley streets and from local cab stands, which they are currently prohibited from doing.

A City Council panel recommended Wednesday that Los Angeles renew for five years a controversial taxi franchise system while also mandating a greening of the city's cab fleet. Supporters lauded the plan as essential to continuing cab service and reducing pollution, but opponents labeled it a sellout to a wealthy and politically influential taxi industry. A boisterous crowd of drivers, taxi executives and others on both sides of the issue packed a third-floor hearing room at City Hall as the council's transportation committee debated the plan.

Following more than three hours of often heated testimony, the Los Angeles Board of Transportation commissioners voted Thursday to delay a decision on who would receive a second taxi franchise for the San Fernando Valley. The commissioners delayed a decision for 30 days to gain more time to study proposals by four taxi companies seeking the franchise--especially to determine whether Babaeian Transportation Co. of Burbank has enough money to provide the service the company promised.

The Los Angeles Transportation Commission on Thursday will consider whether to award a second taxi franchise for the San Fernando Valley--ending an eight-year monopoly by Valley Cab Co. The commission will discuss a recommendation Monday by the city Department of Transportation to authorize Babaeian Transportation Co. of Burbank to provide taxi services in the Valley for two years.

The City Council this week unanimously chose to adopt the Orange County Taxi Administration Program rates of fare and regulations. Under the new ordinance, taxi cab franchises are no longer required to pay the nonexclusive franchise tax; the companies need only maintain a regular business license from the city. Cypress is serviced by three franchises: A White & Yellow Cab Inc., Yellow Cab Co. of North Orange County Inc. and Rainbow Express Cab Inc., which is operated in Cypress.

A City Council committee proposed this week that taxi fares be increased an average of 12% in Los Angeles, in part because of rising gas prices. If the proposal gets final approval from the council, the fare for a typical five-mile taxi ride would increase from $9.58 to $10.70, officials said. Council members said that if gas prices go down, the city could lower fares later.

Two brothers who operate separate cab companies in Burbank are betting that the Metrolink trains that began rolling last month will put them on track to a financial windfall. By acquiring a near-monopoly on cab service at Metrolink stops in Chatsworth, Van Nuys, Burbank and Glendale, the Babaeian brothers stand to gain substantial new business if the new commuter service succeeds--especially because the county and employer groups often pay the taxi fares to encourage commuters to use them.

As a recent meeting of the Los Angeles Transportation Committee was about to begin, City Councilman Hal Bernson peered over the top of his glasses at a dozen senior citizens who had filled the small meeting chamber. They were preparing to urge the committee to add a second taxi operation in the San Fernando Valley, which has been served exclusively by one company for eight years. "They are here to speak on the taxi franchise matter," said Gilbert M.

The City Council will consider contracting with three taxi companies at its Tuesday meeting for the city's voucher-based taxi-services program, which will begin Feb. 15. The council approved the program, which offers residents subsidized evening taxi rides within city limits, at its Nov. 21 meeting. The council seeks to reduce congestion throughout the city. Laguna Beach residents will be able to buy one-way ride vouchers at City Hall for $2.

A half-dozen taxicab companies seeking to secure lucrative franchises from the city of Los Angeles have spent tens of thousands of dollars over the past few months on lobbying activities and campaign contributions to council members, according to city and state records.

Anaheim will solicit franchise proposals for its taxicab operations, a move the City Council hopes will lead to improved and more timely service. The council voted 5-0 Tuesday to adopt a franchise system, which probably will divide 230 permits among two or three companies. The expected completion of the Anaheim Convention Center expansion and new Disney theme park, California Adventure, in early 2001 will bring more visitors to Anaheim, code enforcement manager John Poole said.

The City Council delayed its decision on whether to solicit proposals from taxi companies for a proposed franchise operation in Anaheim. A Taxi Cab Co. and Yellow Cab of North Orange County currently hold the only permits for taxis in the city. A franchise system would require cab companies to apply for the right to operate in Anaheim. The city would award the franchises to companies that matched city standards.

County officials have adopted new procedures to guard against problems caused when a taxi firm at John Wayne Airport failed to provide a DMV certification of insurance and was removed from airport service, a risk manager said Tuesday. Contractors who are self-insured or have a deductible of $5,000 or more will automatically have their insurance documents reviewed by the county's risk management office.

The chairman of the Board of Supervisors, spurred in part by recent allegations of problems with the way John Wayne Airport's new taxi contract was handled, said Thursday he plans to form an oversight committee of lobbyists, architects, engineers and staff members to review how the county awards contracts. "The airport taxi contract wasn't the trigger," said Chairman Chuck Smith, "but it did give us incentive."

Anaheim will solicit franchise proposals for its taxicab operations, a move the City Council hopes will lead to improved and more timely service. The council voted 5-0 Tuesday to adopt a franchise system, which probably will divide 230 permits among two or three companies. The expected completion of the Anaheim Convention Center expansion and new Disney theme park, California Adventure, in early 2001 will bring more visitors to Anaheim, code enforcement manager John Poole said.

In a surprise move, county airport officials kicked out the taxi company serving John Wayne Airport and on Wednesday evening replaced it with another firm. About 25 taxis from A Taxi Cab pulled out of the airport about 6 p.m. after an airport official handed the drivers a letter of termination. The decision came a day after airport director Alan L. Murphy denied the firm a new contract because it failed to provide a DMV certificate of insurance. Murphy decided to make the change right away.

The owner of a taxi firm that was removed from John Wayne Airport has accused a former employee and a prominent Orange County lobbyist of illegally starting a competing company that eventually won the airport contract.