Orange County Taxi Administration Program (OCTAP) Safety Committee and Steering Committee Meeting Minutes July 7, 2011
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1 ITEM 5 The July 7, 2011 regular meeting of the Orange County Taxi Administration Program (OCTAP) Joint meeting of the Safety Committee and Steering Committee was called to order at approximately 12:00 noon at the OCTA Administration Building, Conference Rooms 103/104, 600 South Main Street, Orange, CA Safety and Steering Committees Representatives Present: City of Garden Grove Steering Committee, Pam Gillis City of Irvine Safety Committee, Scott Crones City of Irvine Steering Committee, Dennis Maisano City of Laguna Hills Safety and Steering Committee, Diana Rouwenhurst City of Laguna Woods Safety and Steering Committee, Douglas Reilly City of Mission Viejo Steering Committee, Brett Canedy City of Newport Beach Steering Committee, Monique Navarrete City of Orange Safety and Steering Committee, Ken Adams City of Placentia Safety and Steering Committee, Andrew Dean City of Stanton Safety Committee, Kurt Bourne City of Tustin Safety Committee, Larry Seja City of Tustin Steering Committee, Clark Galliher Large Taxi Cab Company Representative Steering Committee, Tim Conlon Small Taxi Cab Company Representative Steering Committee, Mehdi Sarreshtedari Orange County Tourism Industry Steering Committee, Larry Slagle Others Present: P. Sue Zuhlke, OCTAP Patrick Sampson, OCTAP Brigham Tiafau, OCTAP Richard Girard, OCTAP Esbeidy Wongmoung, OCTAP James Donich, Esquire, OCTA Legal Counsel Mark Johnson, County of Orange Robert Holden, John Wayne Airport Anthony Lee, Orange County Weights and Measures William R. Kennan, Citizen Konstantinos Roditis, 24/7 Yellow Cab 24/7 Taxi Cab Jay Shukr, County Cab Denise Patino, County Cab Hyung Kyu Chon, County Cab Jose Jimenez, County Cab Humberto Ramirez, Coastal Taxi - 1 -
2 Call to Order and Introductions Scott Crones, Irvine, Acting Steering Committee Chairman, presided and called the meeting to order and introductions were made. Item 1. Approval of Minutes April 7, 2011 Combined Safety Committee & Steering Committee Meeting A motion was made by Larry Slagle, Anaheim/OC Visitors & Convention Bureau, to approve the minutes from the April 7, 2011 Combined Safety Committee & Steering Committee Meeting. The motion was seconded by Tim Conlon, Large Taxicab Company Steering Committee Representative. A vote was called by the Acting Steering Committee Chairman. The OCTAP Steering Committee unanimously approved the minutes. Item 2. Safety Committee Chair Report and Steering Committee Chair Report Scott Crones, Acting Steering Committee Chairman, spoke concerning drivers not displaying their driver permits inside the vehicle. Officer Crones asked the taxicab industry representatives to pass along this enforcement concern to operators who work under their company permit. Item 3. Committee Representatives Report Nothing to report. Item 4. OCTAP Reports a. Quarterly Operations and Financial Report Patrick Sampson, OCTAP Administrator, spoke to the committees concerning the OCTAP Quarterly Operations and Financial Report distributed to all committee members. Doug Reilly, Laguna Woods, spoke concerning financial and budget data contained in the report. Mr. Sampson and P. Sue Zuhlke, Director, Motorist Services, answered the concerns of Mr. Reilly. Mehdi Sarreshtedari, Small Taxi Cab Company Representative, spoke to the committees concerning OCTAP s monetary reserves. Ms. Zuhlke and Mr
3 Sampson answered the concern of Mr. Sarreshtedari regarding OCTAP s monetary reserves and further explained all aspects of the reports. Larry Slagle, Anaheim/OC Visitors & Convention Bureau, also spoke concerning his impressions to these reports. Konstantinos Roditis, 24/7 Yellow Cab 24/7 Taxi Cab, spoke concerning the budget allocation between OCTA Departments, primarily Motorist Services. Specifically, Mr. Roditis questioned the cost reimbursement to the Motorist Services fund from the OCTAP Budget. Ms. Zuhlke and Mr. Sampson answered the concerns of Mr. Roditis; explaining that time spent on OCTAP business by Ms. Zuhlke and Mr. Sampson must be reimbursed to the Motorist Services fund due to Orange County Transportation Authority (OCTA) budgetary requirements and restrictions for time allocation. b. FY 2012 Budget Presentation Patrick Sampson, OCTAP Administrator, presented a PowerPoint slide presentation for the OCTAP Budget to the committees. Mr. Sampson identified and explained all elements of the OCTAP Budget. Mehdi Sarreshtedari, Small Taxi Cab Company Representative, spoke concerning the investments line-item contained in the OCTAP Budget. P. Sue Zuhlke, Director, Motorist Services, stated that OCTAP has a managed portfolio and that OCTAP utilizes a safe, conservative investment approach; and does not engage in high risk investment ventures. Doug Reilly, Laguna Woods, spoke concerning the budget presentation and investments; asking if OCTAP could make adjustments to its revenue stream and also inquired into the money allocated for OCTAP s database enhancement project. Mr. Reilly also made a statement concerning the amount budgeted for supplies and administrative services. Ms. Zuhlke answered the concerns of Mr. Reilly, including strategies designed to reduce administrative overhead charges by the OCTA as part of the current cost allocation plan. Ms. Zulhke also spoke concerning OCTAP s conservative approach to budget revenues through fines and penalties. c. OCTAP Company Permit Application Process Patrick Sampson, OCTAP Administrator, spoke to the committees concerning the new application processes for initial (first time) company permit applicants and renewal applicants; as well as the new process that will allow OCTAP to issue multi-year company permits. This item was for information only
4 d. OCTAP Permit Fee Schedule Patrick Sampson, OCTAP Administrator, spoke to the committees concerning the upcoming OCTAP fee increase that would take effect on August 1, Doug Reilly, Laguna Woods, spoke concerning the OCTA Board of Directors authorized annual fees increases. Mr. Reilly s intent was to ascertain what action, if any, was required by the Steering Committee. P. Sue Zuhlke, Director, Motorist Services, addressed the concerns of Mr. Reilly and that OCTAP fees had not been increased for two consecutive years; necessitating the need to again raise fees so that OCTAP can balance its budget and to remain solvent. James Donich, OCTA Legal Counsel, spoke concerning the OCTA Board of Director s initiative and directive for OCTAP fees increases. Tim Conlon, Large Taxicab Company Steering Committee Representative, spoke concerning the fees that are to be charged for a multi-year company permit; which, as stated by Mr. Conlon, didn t add up if you were to multiply the annual company permit fee, times three. The explanation was that subsequent OCTAP fees increases have been formulated into the amount charged for a three year permit. Patrick Sampson, OCTAP Administrator, spoke concerning OCTAP s plans to eventually offer electronic, online services. e. Interim Fare Study Patrick Sampson, OCTAP Administrator, spoke concerning the Interim Fare Study that was to be presented at this meeting, as recommended at the April 7, 2011 Safety and Steering Committee Meeting. Mr. Sampson referred to the Interim Taxicab Fare Study handout distributed to all committee members. Staff recommendations at the conclusion of the interim fare study were as follows: (1) Monitor economic conditions, and consider adjustments to taxicab metered rates bi-annually, in January and July of each year (instead of annually). (2) Continue to use current CPI data criteria as the principle factor for evaluating economic condition, consumer cost, and pricing trends. a. As monthly CPI data is generally scheduled to be released mid-month, December CPI data would not be available in time for the January meeting, and June CPI data would not be available for the July meeting. Staff would use CPI data that is available at the time that the report is prepared
5 (3) Monitor average fuel price data as a contributing factor when developing recommendations for taxicab fare adjustments. Consider average fuel price trends when developing recommendations for taxicab fare adjustments. (4) To the extent possible and practical, fare adjustments should be handled through adjustments to the metered rate, and not through the implementation of surcharges that are paid outside of the metered rate. (5) Consider a fare increase equaling an average 4.87% as follows: a. $3.00 for the flag drop and first 1/6 mile b. $0.45 for each 1/6 mile, after the first 1/6 mile c. $31.00 per hour wait time (6) Explore the Los Angeles Taxicab Commission Taxi Cost Index, and consider utilizing a similar model when considering future adjustments. Mr. Sampson stated that the recommendations, with the exception of item 5, are more in line with a business process for future studies. James Donich, OCTA Legal Counsel, stated that the only recommendation that is to be considered in a public hearing would be Item 5 (approval of a fare increase equaling an average 4.87% increase). Mr. Donich stated that the language in the recommendation of the OCTAP Administrator needs to be changed for the OCTAP Steering Committee to approve a public hearing for consideration of a taxicab fare increase. Discussions arose concerning the proposed fare increase. Doug Reilly, Laguna Woods, stated that if the methodology for fare increases is to be changed, that the public should be notified in the notice of public hearing. Tim Conlon, Large Taxicab Company Representative, motioned that the OCTAP Administrator s recommendations be pushed forward to a public hearing, with a modification to Item 5 (change the word approve to recommend a public hearing ). Monique Navarrete, Newport Beach, seconded the motion. To clarify, the Steering Committee will consider approval, to be effective immediately, of all items in the OCTAP Administrator s recommendation with the exception of item 5; which is to be considered for approval after a public hearing and will be the only topic of the public hearing. The public can make recommendations concerning all items due to the fact that they are all directly related to a fare increase. Ms. Navarrete stated that the public can ask for the criteria used for which the OCTAP Administrator bases his recommendations and for which the Steering Committee uses to approve a taxicab fare increase
6 Konstantinos Roditis, public, 24/7 Yellow Cab, recommended to the committee that the metered fare (flag drop) be set at $15.00 (when the meter is first activated) for the first five (5) miles; and that incremental increases begin after that distance has been exceeded. Mr. Roditis explained that justification for this recommendation is to give drivers more of an incentive to accept shorter trips. Mr. Roditis stated that drivers tend to lose money on short trips due to often having to drive minutes to pick up a fare. Patrick Sampson, OCTAP Administrator, stated that he would have to check to see if that can be accommodated (by the meters). Mr. Sampson also stated that our flag drop is already in the higher end of other fares charged in the area (referring to the Meter Fare Rate Comparison (10 cities)). Doug Reilly, Laguna Woods, stated that he would feel uncomfortable, as well as the residents of Laguna Woods, with that scenario. Mr. Roditis stated that he understands Mr. Reilly s concerns, but stated that drivers pay up to $4 a gallon for gasoline and that taxicab companies are not subsidized and do not receive taxpayer money. Mr. Sampson stated that the first step would be to see if the meters can accommodate (this scenario); and to put together some models along these lines, and to bring the item back on the next time a fare increase is considered. Mehdi Sarreshtedari, Small Taxi Cab Company Representative, asked the chairman if a motion can be made for all items outlined in the OCTAP Administrator s recommendation to be approved. James Donich, OCTA Legal Counsel, stated that Mr. Sarreshtedari could make an alternative motion to the original motion. Doug Reilly, Laguna Woods, stated that he supports an alternative motion because he would like to vote against certain items in the OCTAP Administrator s recommendation. Mr. Sarreshtedari made an alternative motion to bifurcate the recommendations as shown on page 3 of the Interim Taxicab Fare Study. The motion was seconded by Doug Reilly, Laguna Woods. The chairman called a vote for the alternative motion. The results were two (2) in favor, nine (9) against, and one (1) abstention. The alternative motion failed. After the vote for the alternative motion failed, James Donich, OCTA Legal Counsel, defined the original motion as: To move the recommended action in the Interim Taxicab Fare Study, with one modification to item 5 that would remove the word approve and replace with the language recommend a public hearing to consider, so that the motion reads: Recommend a public hearing to consider a taxicab fare increase equaling an average 4.87 percent
7 A vote was taken on the original motion. The result of all Steering Committee voting members was: Ten (10) in favor, 2 opposed (Small Taxicab Company Representative and Laguna Woods). The motioned passed. OCTAP will schedule a public hearing on October 6, 2011 for the Steering Committee to consider a taxicab fare increase as outlined in the motion. Item 5. Approval of the Proposed Revision to the OCTAP Regulations Patrick Sampson, OCTAP Administrator, addressed the committees concerning the proposed revision to the OCTAP Regulations. Mr. Sampson spoke concerning the request OCTAP made to all committee members after the April 7, 2011 meeting, via , asking for their concerns and recommendations to the revision to the OCTAP Regulations; and that these concerns and recommendations be ed to staff by early May 2011, for consideration and possible inclusion into the Revision to the OCTAP Regulations. Mr. Sampson stated that all changes contained in the revision to the OCTAP Regulations are administrative changes; and that recommendations and changes received by OCTAP that are substantive (requiring city council approval) have been noted and will be considered at a later time. Mehdi Sarreshtedari, Small Taxi Cab Company Representative, spoke concerning section of the revision to the OCTAP Regulations; which was concerning the use of registered Visa and MasterCard names (trademarks) in the OCTAP Regulations. James Donich, OCTA Legal Counsel, stated that using such trademarks in the OCTAP Regulations is acceptable and not a violation of law. Konstantinos Roditis, 24/7 Yellow Cab 24/7 Taxi Cab, addressed the committees concerning revisions to the pull notice requirements. James Donich, OCTA Legal Counsel, addressed this concern and stated that requiring that drivers provide OCTAP with a copy of their DMV record helps to close the loophole in the DMV codes; and that work on enacting legislative changes (AB 807), is ongoing. Mr. Roditis also spoke concerning section in reference to a company s principle place of business. After the discussion concerning proposed changes contained in the revision, and the desire for changes to be made to the proposed revision by some committee members, James Donich, OCTA Legal Counsel, stated that if any changes to the proposed revision to the OCTAP Regulations are desired, then a motion for recommended actions must be made that will address all the desired changes to the revision, or alternative recommendations, to the proposed revision to the OCTAP Regulations. Scott Crones, Acting Steering Committee Chairman, stated that these issues are not new (that there had been ample time to review the revision and to submit their concerns and recommendations before the July 7, 2011 meeting)
8 Doug Reilly, Laguna Woods, motioned to approve the revision to the OCTAP Regulations (as recommended by OCTAP staff); with the stipulation (but not as part of the motion) that he be allowed to amend his motion after the discussion. Ken Adams, Orange, seconded the motion to approve the revision to the OCTAP Regulations as recommended by OCTAP staff. A discussion then ensued which addressed if approval of the revision should be in whole (as recommended by OCTAP staff) or in part; specifically addressing the definition and interpretation of what should be considered a company s principle place of business as outlined in sections and 9.7. James Donich, OCTA Legal Counsel, stated that a change to the revision concerning a company s principle place of business (would no longer be considered an administrative change), but would rather be considered a substantive change, requiring city council approval by member agencies. A discussion followed by committee members concerning the definition of a principle place of business; including statements, by a few committee members, that their city ordinances or policies require a physical address; one purpose being the ability to issue a summons to a company. Mr. Donich stated that nothing governs (or defines) this requirement under the OCTAP Regulations. At this point, Mehdi Sarreshtedari, Small Taxi Cab Company Representative, presented an alternative motion to keep the Regulations as they were, dated and amended on October 1, 2010, and to have more discussion (to continue this item to a later date). Scott Crones, Chairman, asked for a second to the alternative motion. No committee member seconded the alternative motion. The alternative motion failed. Doug Reilly, Laguna Woods, supported his original motion to approve the revision as presented (and as recommended by OCTAP staff). However, Mr. Reilly did encourage discussion by taxicab owners concerning future changes to the Regulations and to make recommendations (for future consideration by the Steering Committee). Scott Crones, Acting Steering Committee Chairman, asked for a vote, by a show of hands, to approve the original motion. After the vote, the motion passed with 11 yes votes, 1 no vote, and no abstentions. The revision to the OCTAP Regulations was approved as recommended by OCTAP staff. As a note, OCTAP staff determined the effective date of the new regulations as August 1, 2011, and that notification of approval to required organizations and agencies will be handled in accordance with the OCTAP Regulations Section Item 6. Reports on Other Matters Scott Crones, Acting Steering Committee Chairman, spoke to the committees concerning OCTAP s need for Appeals Hearing Officers on July 14, 2011, with a successful request for volunteers
9 Patrick Sampson, OCTAP Administrator, spoke to the committees and shared information concerning recent OCTAP public outreach activities and an update on the AB 807 progress. a) JWA Web Link Patrick Sampson, OCTAP Administrator, spoke to the committees concerning the web link to the OCTAP website from the John Wayne Airport s website so customers that come to Orange County can access needed information about taxicabs (such as permitted taxicab companies and the authorized fare). b) Braille Institute and Oasis Senior Center Patrick Sampson, OCTAP Administrator, spoke to the committees concerning recent outreach activities that OCTAP participated in; specifically at the Oasis Senior Center in the City of Newport Beach and the Braille Institute in the City of Anaheim. The reason for these outreach activities is to educate the public concerning enforcement issues and get them use to looking for valid driver permits and vehicle permits. Mr. Sampson also spoke concerning the OCTAP Website, which has been updated to be more public facing and to give the public easier access to needed information. c) AB 807 Update Patrick Sampson, OCTAP Administrator, spoke to the committees concerning AB 807, stating that it has gone to the governor for signature. Note: AB 807 is a legislative (Assembly) bill that would give regulatory agencies, such as OCTAP, the ability to request and view DMV records (pull notices) from taxicab companies on affiliated drivers. Item 7. Outstanding Items a) Coastal Taxi Humberto Ramirez concerns about SB 1411 Mr. Humberto Ramirez was not available, during this part of the meeting, to speak on this item. Patrick Sampson, OCTAP Administrator, stated that OCTAP had tried to contact Mr. Ramirez to meet with him and with the small taxicab company representative to hear their concerns, to be able to address this issue effectively. Mr. Sampson also stated that OCTAP will continue to attempt to follow up with Mr. Ramirez and the small taxicab company representative. OCTAP staff will report to the committees concerning this matter in the next quarter
10 Mehdi Sarreshtedari, Small Taxi Cab Company Representative, asked the committee if language can be added to the OCTAP Regulations Section to include criteria outlined in SB Mr. Sampson stated that this bill does not directly relate to OCTAP as a concern, since the Senate bill deals mainly with internet fraud or identity fraud over the internet, except when it is directly related to taxicabs. Item 8. Public Comments Mehdi Sarreshtedari, Small Taxi Cab Company Representative, stated that current Bylaws require that a large taxicab company representative and a small taxicab company representative be elected to the OCTAP Steering Committee. Mr. Sarreshtedari asked if it was possible for OCTAP to categorize taxicab companies into small, mid-size, and large; primarily for the purpose of taxicab company representative elections to the OCTAP Steering Committee. Mr. Sarreshtedari stated that the interests of cab companies that have, for example, taxicabs, may not be the same as smaller cab companies; and that the same would work for large taxicab companies to smaller companies. James Donich, OCTA Legal Counsel, stated that the topic would be a change to the OCTAP Steering Committee Bylaws. Item 9. Adjournment The meeting was adjourned at approximately 1:30 pm. The next regularly scheduled meeting of the OCTAP Steering and Safety Committees will be held on Thursday, October 6, 2011 at 12:00 pm at the OCTA Administration Building, 600 South Main Street (Conference Rooms 103/104), City of Orange, CA
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