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1985-08-07 Council Packet
— fr COUNCIL PACKETS lq65 AUGUST rt My t. Yf I t ' I Kenai City Council Meeting Packet August 7, 1985 A smiM at OW KWO Cly C=W j ;� OdMVtohmdgwwmtOftfhdueiMmtrdonSWw kwkdoBkS. L*b 16-17.,19-24; Bk4. Lob OOA. at. 33,36.. .42; R14W TOkM S"., Mb. 4. 11 Pd* hwkV. an ownwof Vo pvp" coos i-14"m h" ft rw to -prom* to m"t rag by shown arom W bo*MMW ift'ftr"4SW*d of" sukawo tot The tootdh* or V&ft of SM nW may nd Im OMM&W OY a Pwom who dM-not No wo Z-ft C* LeerGwWn oh to #0 mommo ral twom I 41ant Jlr PURdift M9,26, $1. $111, Ign Sf", .1 lo e 10 Maw KENAI CITY COUNT AUGUST 7 PLEDGE Of ALLEGIANCE A. ROLL CALL 1. Agenda Approval 2. Consent Agenda *All items llstad with an asterisk (•) are considered to be routine and non -controversial by the Council and will be approved by one motion. There will be no separate discussion of these items unless a Council member so requests, in which case the item will be removed from the Consent Agenda and considered in its normal sequence on the agenda as part of the General Orders. B. PERSONS PRESENT SCHEDULED TO BE HEARD (Time Limit - 10 minutes per person) v A +-1. Roger Meeks - Green Strip in Old Town 1. Jan Hansen, Hansen Painting - Airport Runway Painting Project r S/3. Joe Langston, City Cab - Public Vehicle Commission C. PUBLIC HEARINGS S u bS "^-1. Ord. 964-84 - Inereas. Rev/Appns - Aliak, McCollum, Cinderella, Fox, Princess, Linwood Ext (M.A.P.) - (� 0 $650,000 a 2. Ord. 1063-85 - Amending KHC - Written Notice of Appeal with Expense Fee Deposit 3. Ord. 1069-85 - Amending KMC - Establish Pay Ranges for City Manager, City Attorney, City Clerk 4. Ord. 1070-85 - Incress. Rev/Appns - Senior Citizens, Part Time Positions - $12,166 5. Ord. 1071-85 - Amending KMC - Delete Reference to Merit System for Pay Raises h .-.-.6. Ord. 1072-85 - Incress. Rev/Appns - Cemetery Survey and Plat - $10,000 7. Ord. 1073-85 - Incress. Rev/Appns - Municipal Insurance Increase - $200,000 S. Ord. 1074-85 - Incress. Rev/Appns - Senior Citizens - $96,444 9. Ord. 1075-85 - Incress. Rev/Appns - Senior Citizens - $3,357 10. Res. 85-79 - Confirming Assessment Roll - Stellar Dr. 11. Res. S5-60 - Transfer of Funds - Lake, Marine, Granite Pt. - $9,866 a. Change Order /2 - Main St. Loop, Lake, Marine, Granite Pt., FBO - $13,628.40 12. Res. 85-82 - Awarding of N.A.P. Project s. Approval of Award - Inspection, Testing b Survoying - N.A.P. Project Yf.PJI _13. Res. 85-81 - Award of Airport Master Plan Update 0. MINUTES 1. *Regular Meeting, July 17, 1985 E. CORRESPONDENCE 1. •Sen. Stevens - Cruise Ships 1. •R. Knapp, Commiasioner-Alaska DOT - LSR&T Grant 3. •E. Andrews, Commiasioner-Alasks Dept. of Administration - Municipal Grant Application 4. •Women's Resource h Crisis Center - Grant Conditions Adjustments F. OLD BUSINESS G. NEW BUSINESS i_ 1. Bills to be Paid, Bills to be Ratified ,(`-•`Ji 2. Requisitions Exceeding $1,000 ! �rAO 3. *Ord. 1076-85 - Amending KMC - Taxicabs 4. *Ord. 1077-85 - Amending KMC - Landscape Review Board 5. *Ord. 1078-85 - Repealing KMC - Mobile Home Placements 6. *Ord. 1079-85 - Incress. Rev/Appne - Replacement of Street Lights 7. Ord. 1080-85 - Incress. Rev/Appne - Road, Fire Hydrant Repairs - $220,000 a. Public Hearing, Ord. 1080-85 8. *Ord. 1081-85 - Amending Zoning Map - Kenai Original Townsite 9. Approval of Lease - Hertz Corp. 10. Lease Application - D. Anse, Baron Park S/D 11. S/Dignment of Lease - New Pines Corp. to Pace, Aleyeska 12. Terminal Lease - ERA Helicopters 13. Discuosion - Airport Taxiway Guidance Signs 14. Discussion - Richfield Drive Road Improvements ,,3v -"^'15. Approval - F. Meyer Lease Application Development Plan Qe �q 16. Discussion - Kelifornsky Fire Service Area (Borough G A, Ord. I 8443) �7 Q,sC - s cr ,.D • H. REPORTS 1. City Manager 2. City Attorney 3. Mayor 4. City Clerk S. Finance Director 6. Planning A Zoning 7. Harbor Commission S. Recreation Commission 9. Library Commission I. PERSONS PRESENT NOT SCHEDULED 10 BE HEARD (Time Limit - 5 minutes per person) ADJOURNMENT y e U C (?✓�� 2. l S i 2 i 1 1 J 2 r. � 1 COUNCIL MEET I 01 Daemon Wilso'nuffirmalmomS ice' �►�'ID��P�� 87���0 iJAIl�;'11SC19I � �'Id►7L'����b7L7�I COUNCIL MEETING OFS"- a August 7, 1985 INFORMATION ITEMS 1 - KPB Minutes - May 14, 1985 2 - KPB Minutes - May 20, 1985 3 - KPB Minutes - May 21, 1985 4 - KPB Minutes - May 23, 1985 5 - KPB Minutes - June 4, 1985 6 - KPB Minutes - June 18, 1985 7 - KPB Minutes - July 2, 1985 8 - Library Report - June 1985 9 - Library Report - FY 1984/85 10 - Kenai River Management Newsletter - July 2, 1985 11 - Commission Application - Cliff Massie 12 - Kenai Chamber of Commerce Newsletter - July, 1985 13 - Mayor's Council on Aging Report, June 10, 1985 14 - Holy Assumption Orthodox Church - National Register of Historic Places - Boundaries 15 - Billing - Central Alaska Const. - Standard Dr., Thompson Place - $53,796.37 16 - Billing - M. Tauriainen - Airport Main Apron Ext. - $23,029 17 - Billing - OceanTech - S. Spruce St. - $4,822 18 - Billing - OceanTech - Cook Inlet View Dr., Lilac St. - $2,998.50 19 - Billing - OceanTech - Juluissen, Basin View, Ames, Barbara Dr. - $60610.50 20 - Billing - Wince, Corthell, Bryson - Inlet Woods - $489856.20 21 - Billing - Wm. Nelson - H.A.S. Project - $131,669.80 22 - Billing - Wm. Nelson - Main St. Loop, Lake, Marine, Granite Pt., FBO Rd. - $14,609.85 23 - Billing - Wince, Corthell, Bryson - Standard Dr., Thompson Place - $149338.40 24 - Kenai River Management Newsletter - Proposals 25 - Billing - C. Gintoli, Architect - Library Addtn. - $34,897.50 26 - Billing - McLane do Assoc. - Sprucewood Glen LID - $12,561.65 27 - Billing - Zubeck Inc. - Sprucewood Glen LID - $819367.20 28 - Billing - Doyle Const. - Inlet Wood S/D - $554.348.50 29 - Billing - McLane h Assoc. - M.A.P. Project - $13,666.43 30 - Billing - McLane h Assoc. - M.A.P. Project - $624.53 31 - Beautification Committee Minutes - July 23, 1985 32 - Report - Marathon Rd. Area Planning Study 33 - KPB Agenda - August 6, 1985 34 - Report - Cemetery jw s JJI- mo o. j4 aw Ar i . :07 EAST 74 TH AVENUE cz NCHORAGE. ALASKA 99502 07) 349.6436 QTRACTORS SUPPLIES SHIP TO HANSEN PAINTING WILL CALL BOX 632 Sterling, Ak 99672 SHIP VIA F01 TERMS 7126185 Anchorage. qtO.D. PURCHASEPURCHASEWIDER NUMBER ORDER DATE L _S 11'.S0 OUR owewiu Beft per our phone conversation 7 777/9/85: CPO Gals Ak. ,itate maintenance paint 7.50- Per our phone conversation today, 7/26/85, additional quantity re- quired: 950 Gals. Ak. State maintenance paint 7.50 Kenei Airport totals fl Loss cash recieved on order: Balance due on delivery: PLEASE PAY FROM THIS INVOICE — TERMS NET 30 DAYS FROM DATE OF INVOICE. UNPAID BALANCE PAST TERMS WILL BE CHARGED AT MAXIMUM LEGAL RATE ORIGINAL a $4125.00 7125.00 $11,250.OU 6,000.00 $ 5,250.00 5 Ancttorioi osny NtwY'�f1'iii�d�r!� Vv ! 5 • � .v �F j • .71r1p 1 I.: i, d.! „k7� d j�{•t'yE7i+fo-j�l;��If fYs�arl�fJ�i!u �inr i:/��rr,__. t tMil�'Y.•hsRllfi!•�.,� • � r ., .. .. 'i�Il',l""i �: rt x t1N tyaltai teb � a palm job W/dsaday mortgns.i•... wer.,e•asYaww N i cab.petiflon'_,hdaS tup 4 months op. ford to call a Cab because they Wben there was twO are just p1ala lop eapeaslVf r' IoeLbriElei • cats atth Comps ";- Yellow Sadowsk! aid. too CamR 'mots Chtcktr — driven tallin Eapt Gb " th!9 veil! Alaska Cob, which formed �+t setter the cenlas weal into off" ect, lnitAlly grabbed a Iton's j cab owns tharjsd tbf ttd •n* by ' The assembly actimr, an effort share of tlu market — 70 paved Cab opmpr 22400 week will be tots t�o� spur Corn�ppetltion bttatfa !ht taarketpante, all different CheeYes and Yellow Cob Con smates D of all riders, accordIn to stb — boldLrg p ce ]Ion y Sadowski, a already oya• � � p � with a ri+teen of •raised njulatloa while Check,, and Yellow thesis's to the cellfad Cats that ate five cabs In a River ad ea3 ftllow Gb Wasilla, hopes re riders b� ' y sot the OM tint; hb OWj:" undern'uttiag th t of hfi. tots could dorp the Rates since have see sawed.. • �: min ��� m lan to SD CobjF08W t what mar• ki of Saps three am i !n AaCbosa�e kit taouid bar below a Callla ' of Alaska aoe the ttoond Inall, 15 cabs to in Aa — $2 for a minimum fan, $H �blD d� what ttroaditieabl.l. W to to e. a lot 0! per 1.50 a mile, natrictlous have ldtona iy have been the slowest moatba 1 Pavia out who Cast et! bean • boos to stdas. • •, . • S» Pape G4. QAB ' r• Cab competition heats up:,. •. � .. ... it .. . c m x" om PW D•t u;1 rp from $. tbatpd the toad to wooer! Sadowski aid W soLr to was to fatty 1os► and sharp i1 R6 p,, nL i17 as :ldasil hour, sad t;l for a mloimum "lbat became fVldeat wban fan• •:u4 J ,s .+ Ytlkrw lowatd their tataa." Doylt aid "We ease .wo be wv'w ava taa�uac�hae00 kss thaDtmoaltiy takta+chtn{ fte, we fM. be . •; .• bdw,,are lo= pwpkt dispatchref ' ' ' "W-Z Lam PeWpk+ Yovas (tAs pips to at the drly ' oat bua was sy 1".! , t out than and nmdnj, so By doloj bushuss 1i 4 tbsy'n not aitttnj at the air• umt cab permit owmn On pent or at a Cab stand," be low their can for ]ass to the aid It tbWm sIttlas aouad operators and drives, ahe somewbatt tW= not a" . # .• ;.,a 1 • • • •.r.-4o4 mosey' Otban no d�oi�s "Uwe don`t make some Ot buatow "the Old tashtonaa these rhanjet necessary in the way," be said ' : • 3 : , :... , , . bdur" to VI More m00 Jolm J theeases! ' tht ar."• Yellm said he w=19 Out; w*T o' put V= ho v P,f 6 Cib ottot busiest ` the lo r• Alf WPM atfaet yal Inds Chaclrtr. Yetbwiad Alaska !Cob ail eharp s160 per milt„& . ' • "We the masaanaa allocable milt• don't eapeet than to • f • age rate. Per hour ghala have am major impact at the • . v+Q ..hM $19 to t , and moment anyway," be said., CITY OF KENAI lod G'dpdoel a 4"„ 210 FIDALOO KENAI, ALAaKA 00611 TILEPHONH063.7M MEMORANDUM TOs Mayor Wagoner and City Council FROMs Kenai Advisory Planning & Zoning Commission SUBJECTS Review of Site Plans Lease Application for Tract6s B-1 do B-2, CHAP S/D - Retail Mall - Fred Meyer Real Estate At the Special Meeting of the Commission held August 7, 1965, the Commission heard a presentation and reviewed the site plans submitted for the referenced property. Below is the recommendation from that meetings MOTIONS Commissioner Bryson moved approval of the lease application for Fred ! Meyer, Tract 8-1 do B-2, CHAP S/0, retail mall, seconded by Commissioner j Osborne. VOTES Motion passed unanimously. ;r t c� 1 jal 7 A ' 1 •t 1 r .r .....0 . .. V... r • . a ,� 1 i Win e-� Suggested by: Administration CITY OF KENAI ORDINANCE NO. 964-84 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, INCREASING ESTIMATED REVENUES AND APPROPRIATIONS IN THE ALIAK, MC COLLUM, CINDERELLA, FOX, PRINCESS, AND LINWOOD EXTENDED CAPITAL PROJECT FUND BY $650,000 AS A RESULT OF A GRANT FROM THE STATE OF ALASKA. WHEREAS, the State of Alaska has awarded the City of Kenai a grant in the amount of $650,000 for water and sewer improvements; and WHEREAS, the City Council desires to use this money for water and sewer improvments of the above -mentioned project. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, that estimated revenues and appropriations be increased as follows: Alisk/McCollum Cinderella Fox Princess and Linwood Extended Increase Estimated Revenues: State Water & Sewer Grant - 1984 $ 650,000 Increase Appropriations: « Construction $ 650,000 _'•= PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this seventh day of August, 1985. TOM WAGONER, MA OR 'd ATTEST: I • Janet Whelan, City Clerk First Readings August 15, 1984 Second Readings August 7, 1985 �j Effective Dates August 7, 1985 i Approved by Finances j S , r 't g' I i , 7 A 4 ♦ll'e.t. I. 1� — SUBSTITUTE Suggested by: Administration i CITY OF KENAI ORDINANCE NO. 964-84 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, INCREASING ESTIMATED REVENUES AND APPROPRIATIONS IN THE ALIAK, MC COLLUM, CINDERELLA, FOX, PRINCESS, AND LINWOOD EXTENDED SPECIAL ASSESSMENT FUND BY $1,458,674. WHEREAS, the City has received cost estimates for completion of -- the Aliak/McCollum project that exceed the current appropriation by $1,458,674; and WHEREAS, the State of Alaska has awarded the City of Kenai a grant in the amount of $650,000 for water and sewer improvements that may be used toward this project; and, WHEREAS, the City has available $468,674 in road grant monies frii& projects that were completed for leas than their budgets; and WHCREAS, the City intends to finance a portion of the project with bond monies, to be sold at a later date, that will ultimately result in special assessment levies of approximately $3400000. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, that estimated revenues and appropriations be increased as follows on a project basis: Aliak/McCollum, etc. Special Assessment Fund -I Increase Estimated Revenues: 1984 Water and Sewer Grant $ 6509000 1982 Municipal Road Grant 261,571 '1 1983 Municipal Road Grant 41 207,103 Total Estimated Revenues $1,118,674 !: r Proceeds from Bond Sale 340,000 ' Total Sources 11,458,674 • Y� 1A Increase Appropriations: Inspection $ 123,350 Construction 1,227,895 Contingency 107,429 Total Appropriations 11.458.674 PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this seventh day of August, 1985. TOM WAGONER, MAYOR ATTEST: Janet WRelan, City Clerk First Reading: August 15, 1984 Second Readings August 7, 1985 Effective Dates August 7, 1985 fr Suggested by: Administration CITY OF KENAI ORDINANCE NO. 1063-85 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AMENDING KENAI MUNICIPAL CODE 14.20.290 CONCERNING APPEALS TO THE BOARD OF ADJUSTMENT BY INSTITUTING THE FILING OF A WRITTEN NOTICE OF APPEAL WITH AN EXPENSE FEE DEPOSIT. WHEREAS, appeals from the decisions of the Kenai Advisory Planning and Zoning Commission or Administrative Official are taken to the Kenai City Council acting as the Board of Adjustment pursuant to KMC 14.20.290; and WHEREAS, the appeal process currently requires no fees to be paid by the appellant to help defray the expenses incurred in an appeal; and WHEREAS, the appeal process currently provides no time frame in which an aggrieved party must file an appeal of a decision of the Kenai Advisory Plenning and Zoning Commission or Administrative Official. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF + ~ KENAI, ALASKA, that Kenai Municipal Code 14.20.290 be and hereby , is amended to read as follows: ' 14.20.290 Appeals - Board of Adjustment: (a) Appeals from decisions of the a ministrativa official or the Commission s shall be heard by the Kenai City Council acting as the Board of Adjustment. (b) The Board of Adjustment shall set a date for and hold a hearing on all appeals within 30 days of the filing of the appeal. Notice of the time and place of such hearing shall be mailed to all parties interested and to all property owners within 300 feet of the property involved at least ten days prior to the hearing. (2) Within 30 days after the hearing, the Board of Adjustment shall render a decision on the appeal. In exercising the above -mentioned powers, the Board of Adjustment may reverse or affirm, wholly or partly, or may modify the order, requirement, decision or requirement, decision or determination as ought to be made, and to that end shall have all the powers of the r body from whom the appeal is taken. 1 l �- 1, (3) All meetings of the Board shall be open to the public and the Board shall keep minutes of its proceedings showing its decision, the reasons for its decision, and the vote of each member upon each question. Said minutes shall be made a public record. (4) All appeals shall be commenced by filing a written notice of appeal of the decision or order being appealed. The Notice shall contain the a ollant's name and a ress he decision or order being appealed end the date of the decision. The notice of appeal shall be accompanied by a 00 expense fee deposit and s all be filed within ten regular business days of the date the decision or order being appealed was asued. The ex enses of the speeal shall be paid by the sopellant prior to the hearing before the Board of d ustment. If the expenses of the appeal are more Then the $100 deposit the appellant shall be no if ed of he amount of expenses above 00 which are still ue and owing rior to hearing the appeal. Expenses of e appeal nc u e postage, notice, and preparation o the record. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this seventh ' day of August, 1985. OM W GO ER, MAYOR ATTESTS Janet Whelan, City Clerk First Readings July 17, 1985 Second Readings August 7, 1985 Effective Oates September 79 1985 `q • ' I i CITY OF KENAI %Od Capdai a j 4"„ 210 FIDAL00 KENAI, ALASKA 99011 TBLBPNON9293.70M6 MEMORANDUM TOs Mayor Wagoner and Kenai City Council FROM: eeff Labohn, Land Manager SUBJECTSrdinance 1063-85: Amending Kenai Zoning Code - Appeals Fee & Notice DATES July 11, 1985 At the regular meeting of the Planning Commission on 7/10/65, the Commission reviewed and approved the proposed amendment to the Zoning Code referenced above. Details of the motion and discussion are item H-6 in your packet, page 1. t . 3 Suggested bys City Council CITY OF KENAI ORDINANCE NO. 1069-85 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AMENDING KMC 23.55.010 TO ESTABLISH RANGES OF COMPENSATION OF THE CITY MANAGER, CITY ATTORNEY, AND CITY CLERK. WHEREAS, the City Council desires to formally establish acceptable levels of compensation for the above -mentioned offices. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, that KMC 23.55.010 is hereby amended as follows: 23.55.010 Exempt Salaries: Salaries of City Manager, City Attorney, and City Clerk shall be negotiated by the Council (or by a committee and approved by the Council) and may be set by motion of Council. The salaries of these individuals shall be within the following rangess City Manager $55 000 to $75 000 City Attorney 50 000 to $70,000 City Clerk $35,000 to 5,000 These salaries shall be in addition to the customary benefits provided for the positions. These salaries shall be applicable for fiscal years for which employment contracts are not in effect at the effective date of this ordinance. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this seventh day of August, 1985. OM WAGONER, MAYOR ATTESTS Janet Whelan, City Clerk First Readings July 17, 1985 Second Readings August 7, 1985 Effective Dates September 7, 1985 Approved by finance: Ca 7/17/85 C .. Suggested bys Administration CITY OF KENAI ORDINANCE NO. 1070-85 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, l INCREASING ESTIMATED REVENUES AND APPROPRIATIONS IN THE 1985-86 "SE OR EMPLOYMENT PROGRAM" BY $12,166. WHEREAS, the State of Alaska has offered the City of Kenai a grant award of $12,166 for funding of three part-time positions. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, that the following increases in estimated revenues -T and appropriations be mades Senior Employment Increase Estimated Revenuess State Grant E1 Increase Appropriations: Salaries $119791 Worker's Compensation 3�75 PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this seventh day of August, 1985. OM W GON R, MAYOR ATTESTs Usnet Whelant City Cler First Readings July 17, 1985 Second Readings August 7, 1985 Effective Dates August 7, 1985 Approved by Finances a 9Q 7/17/05 •--+—._-�T.�Tii. _^ion'._. A_" - _v�i.��. _ ^1�_-:�`._ /'" / ._a __-_ _ _-__ _ —__ _-- .- 1 J e i k G 1 i0 0 0 ;I ' Suggested by: City Council CITY OF KENAI ORDINANCE NO. 1071-85 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AMENDING KMC 23.30.040 BY DELETING THE INFERENCE THAT INCREM PAY RAISES WITHIN A PAY RANGE ARE DUE TO MERIT. WHEREAS, KMC 23.45.050 specifies that an employee who receiv unsatisfactory performance evaluation shall not be eligible receive an in -grade salary increment; and WHEREAS, the City Council believes that such a system cannot called a merit system, and any reference to a merit system s be deleted from the personnel ordinances. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, that KMC 23.30.040 is hereby amended as follo 23.30.040 [MERIT/GROWTH/]Evaluations (a) Evaluations shall be required annually of all classified employees. Supervisors shall indicate thereon his recommendation as to whether or not the employee [HAS MERITED A GROWTH] be awarded a pay raise in accordance with the City Pay 1'� an, KM 2 .5� (b) Approval of increment [MERIT] pay raises are vested in the City Manager. (Ords 336,537) PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this seventh day of August, 1985. ATTEST: Janet elan, City Clerk Approved by Finance:—eqg 7/17/85 TOM WAGONER, MAYOR First Reading: July 17, 1985 Second Reading: August 7, 1985 Effective Date: September 7, 1985 c -� Suggested bys Administration CITY OF KENAI ORDINANCE NO. 1072-85 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, INCREASING ESTIMATED REVENUES AND APROPRIATIONS IN THE 1905-86 GENERAL FUND BUDGET BY $10,000 TO SURVEY AND PLAT THE KENAI CEMETERY. WHEREAS, the City Administration desirco to Organize and expend the Kenai Cemetery; and WHEREAS, $10,000 was appropriated in the 1904-85 budget for survey and platting of the cemetery, but the funds lapoed at June 30, 1985; and WHEREAS, the Public Works Department has asked that the monlea be reappropriated. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, that estimated revenues and appropriations be = increased as followss General Fund increase Estimated Revenues: Appropriation of Fund Balance $10f000 Increase Appropriationas Non -Departmental -Professional Services $10fOOD PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this seventh day of August, 1985. TOP WAGUNER9 HAVOR ATTESTs '3 Janet Whelan, City Cler J " 1 First Readings 3uly 17, 1985 Second Readings August 7f 1905 -� Effective Oates August 7, 1985 ol i f ,v J Suggested bys Administration CITY OF KENAI ORDINANCE NO, 1073-85 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, INCREASING ESTIMATED REVENUES AND APPROPRIATIONS IN THE 1985-86 GENERAL FUND BUDGET BY $2000000 FOR THE COST OF MUNICIPAL INSURANCE, WHEREAS, the City bee experienced significant increases in the cost of its various insurance policies for FY 85-86$ and WHEREAS, theoe costs are expected to exceed the amount projected in the 1909-06 budget by approximately $2000000. NOW, THEREFORE, RE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, that estimated revenues and appropriations be increased as follomos General Fund Inert -see Eotimated Revenuess Apropriations of Fund Balance $200,000 Increase Appropriations$ Non -Departmental -- Insurance $200,000 PASSED By THE COUNCIL OF THE CITY OF KENAI, ALASKA, this seventh daq of August, 1909, Tif"A-GONC89 MAYOR ATTESTS ane a an, q er First Readings July 17, 1985 Second Reading: August 7, 1985 Effective Oates August 7, 1985 Approved by F inaa$ce s Q �f i � i Suggested by: Administration CITY OF KENAI ORDINANCE NO. 1074-85 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, INCREASING ESTIMATED REVENUES AND APPROPRIATIONS IN THE 1985-86 "KENAI SENIOR CITIZENS PROJECT" BY $96,444. WHEREAS, the State of Alaska offered the City of Kenai a grant award of $125,300 to cover the project period January 1, 1985 through December 31, 1985; and WHEREAS, the unencumbered portion of the calendar year 1985 appropriation lapsed at June 30, 1985 an.d needs to be reappropriated. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, as follows: Kenai Senior Citizens Proiect Increase Estimated Revenues: •/ State Grant $75,183 USDA 4,825 Program Income: Meals 5,000 Rides 381 Rental Senior Center (In -Kind) 11 O55 96 444 Increase Appropriations: Access Services: Salaries $17,740 Leave 2,066 PERS 2,172 ESC 1,255 W/C 1,751 Health 3,266 Supplemental Retirement 515 Communications 475 Utilities 1,351 Rent (In -Kind) 5,528 Janitorial 162 Repair & Maintenance 1,198 Miscellaneous 10 37,489 i I y.. I Congregate Meals Salaries $13,964 Leave 1,338 PERS 1,610 ESC 941 W/C 1,210 Health 3,408 Supplemental Retirement 287 Operating Supplies 17,622 Repair & Maintenance Supplies 860 Communications 475 Utilities 1,350 Rent (In -Kind) 5,528 Janitorial 163 Miscellaneous 10 Home Delivery Salaries $ 2,676 Leave 258 PERS 304 ESC 175 W/C 217 Health 732 Supplemental Retirement 56 Operating Supplies 4,428 R & M Supplies 10338 Miscellaneous 5 110,189 $96,444 PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this seventh day of August, 1985. ATTEST: Janet Whelan, City Clerk Approved by Finance:—CIViq 7/12/85 OM WACONER, MAYOR First Readings July 17, 1985 Second Reading: August 7, 1985 Effective Dates August 7, 1985 �-q Suggested bys Administration CITY OF KENAI ORDINANCE NO. 1075-85 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, INCREASING ESTIMATED REVENUES AND APPROPRIATIONS IN THE 1985-86 "COMMUNITY SERVICE PROGRAM" FUND BY $3,357. WHEREAS, the State of Alaska offered the City of Kenai a grant award of $69881 to cover the project period January 1, 1985 through December 31, 1985; and WHEREAS, the appropriations in the Special Revenue Fund "Community Service Program" lapsed at June 30, 1985 and the grant period continues through December 31, 1985; and WHEREAS, the unencumbered monies at June 309 1985 of $3,357 need to be reappropriated. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, as follows: Community Service Program ncrease Estimated Revenues: State Grant $2,978 Accounting In -Kind 379 Increase Appropriationss Salaries $2,978 Professional Services (In -Kind) 3�79 f r� O i I � , PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this seventh �1 day of August, 1985. TOM WAGONER, MAYOR ATTESTS 3 Janet Whelan, City Clerk First Readings July 17, 1985 Second Readings August 7, 1985 Effective Dates August 7, 1985 Approved by Finances egtj 7/12/85 i fit t I 1 I I C-10 Suggested by: Administration CITY OF KENAI RESOLUTION NO. 85-79 A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, CONFIRMING THE ASSESSMENT ROLL ON STELLAR DRIVE AND FIXING PAYMENT. WHEREAS, a public hearing has been held on the assessment roll for Stellar Drive Special Assessment District; and, WHEREAS, Council finds.that the assessment roll is proper. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA that s Section 1s The assessment roll attached to this Resolution is confirmed by the Council. Section 2s Assessments as identified on the assessment roll shall be levied against the properties in the Stellar Drive J Assessment District, and are to be used to pay principal and interest on bonds sold to finance the project. Section 3s Payments shall be fixed over a ten-year period, with annual payments due beginning September 1, 1986. Payments shall be delinquent if not received by October 1, of each year. Annual payments shall be in equal installments, including 10.75% annual interest. Delinquent installments will be charged a penalty of ten (10%) percent on the entire installment, along with additional interest accruing at the rate of 10.75% per year on the principal portion of the installment. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA this seventh day of August, 1985. Tom Wagoner, Mayor ATTEST-. Janet Whelan, City Clerk Approved by Finance: C4� 7/31/85 s- I s s j i_ i r o� 06- 26- 85 .I y ' STELLAR OR PAVING, CURBS, & GUTTERS ----fTNAL`-A88E88MENT-ROLt - --- -- --- ------ ASg993EO - - - LOT - BLOCK -"PARCEL "N--- - -- - - OWNER _. _.__ _..__.. ____ '�DORE88" SQ: FT: _.__.. AMOUNT LOT 15 BLK 5 047--140-30 AL HENRIKSON, LINDA MUNBTERMANN BOX 517, KENAI, AK 12,620 6,107.40 --�L0T-I6-BLK 5--047-140=31-AI- HENRIKSON, LINDA MUNBTERMANN LOT 17 LOT 19 BLK 5 BLK 5 047-140-32 AL HENRIKSON, LINDA MUNBTERMANN BOX 517 KENAI AK 047-140-34 RENSCH, LEE_ & PATRICE 134 W. 12TN AVE., ANCHORAGE, 15,480 AK 9,420 7,491.48 4,559.71 _LOT 20--BLK 5'--047-140-35 MCIRVINi DANIEL-t, HEATHER --"'152W-STELLAR "OR; KENAIV AX-" ---10,040- - "' 4,858.82' _...._ -. LOT 21 BLK 5 047-140-36 RENSCH, LEE_ & PATRICE 134 W. 12TH AVE., ANCHORAGE, AK 9,800 4,742.61 LOT 22 BLK S O47-140-37 RENSCH, LEE & PATRICE 134 W. 12TH AVE., ANCHORAGE, AK 8,920 4,316.80 047-130-?Lv,At--HENRIKSON;--LINDA MUNBTERMANN-BOX-517, KENAI A 8,180 3,95A.1,9 LOT 24 BLK 5 047-130-71 AL HENRIKSON, LINDA MUNBTERMANN BOX 517, KENAI, AK 9,560 4,626.52 LOT 30A BLK 4 047-140-39 AL HENRIKSON, LINDA MUNSTERMANN BOX 517, KENAI, AK 13,190 6,383.25 `LOT 31 -"•BLK 4-'047-140-39 VERDINi' JOSE'tt ROCID-'- ---O@N:-lOEL;- KENAI; AK--- ---10i300--- -49984.64 LOT 33 8LK 4 047-140-41 AL HENRIKSON, LINDA MUNBTERMANN BOX 517, KENAI, AK 8,648 4,185.16 LOT 34 BLK 4 047-140-42 AL HENRIKSON, LINDA MUNBTERMANN BOX 517, KENAI, AK 8,524 4,125.16 -LOT-8S- Ott" --047-140-43-AL HENRIKSUNi,-t1NDA't1UNSTERM4NN-80"17i- KENA" ;490 4i103.015 LOT 39 LOT 40 BLK 4 BLK 4 047-140-47 NEVAREI, ANDRES & JONI BOX 904 KENAI AK 047-140-48 WILLARD, BRUCE & MARLA BOX 460;, KENAI, AK 8,050 8,050 3,095.76 3,093.76 �,• tO"I --BLK•-4-047-140-49-HOR120N-SUN,' INC. "ENINGULA-DR-; %9NATO AK----9i050 3,895.76 - - LOT 42 BLK 4 047-140 50 AL HENRIKSON, LINDA MUNBTERMANN BOX 517, KENAI, AK 8,050 3,695.76 tea,-43�—Be;�n:15•------ i � -I. . i I 4 Tf l - Suggested bys Administration CITY OF KENAI RESOLUTION N0. 85-80 BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA THAT THE FOLLOWING TRANSFER OF MONIES BE MADE IN THE LAKE, MARINE, GRANITE POINT CAPITAL PROJECT FUNOs Froms Contingency $9,868 Tos Construction $9,868 This transfer provides sufficient money for approval of Change Order No. 2 to Comanche Corporation. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA this seventh day of Auguet, 1985. Tom Wagoner, Mayor ATTESTS Janet Whelan, City Clerk Approved by Finances -eltj 8/1/85 4 1 I. � l 7 C.O.71 'sent to _City of Kenai M1 7/31/85 _ ll C.O. approved by __.�_... _�._. __..__.. on AN GE 0 R P EEC N0 :2 Project Main 111 i t i :t r i mi D:I t Point, FRO Contractor _C; cy_i�, ry._,_„ r;i ry �!' F;c�►t:►i You are hereby recluo.--ted to comply with the fol loldinl, rhrinpe!i from the contract plans and q)cc 1 f i ca t: i on,, ; m Jm Item No. Doscript Ion (if' chan),esl - (iflant. i t in;; , tali t:;, unit price:;, change in comple'.lon :;cl edtile, etc, Water and Sewer services under force account according to Inc;rvas e. 01• fDecre,LrC) 1. attached backup datas *13,628.40 . cs compact, place 2" leveling course and 2" afa to pa raection of low per attached sketch a�nduo 7R►i WiM �vAiia Ir �vi�. •Y FOR COUNCIL MUTlNO J Attofttfp mm ubfis Wotitf CNy Glfk O►t kw r0x2i w mftwd W—CIN Ctungi ON 01`1e QYt! ---�- Ck--• Net change in contract price clue to thi,; C.O. /9 GZB o CHANGE IN CONTRACT TIME C;11AN61's IN CONTP.Arl' UOTINT III (AttlCAtd) (Above) is (ui! Juatlffentlon of each from on th+s :in, ln-7:111dtnY, tta o!leet on qpnra+.Inn an4 rinlnt-nam.•: roils. 1( r this C.O. It not valid until of/,nod by both the Owner ntul tugtnroar. Y�nai City +;Waned has to nppprvc all i contrSetor'a Signature ►ndicatca bla ar,roomont beraw►th, lnr.lw:Jny any .r {lustc.rnt to t;.•r rnn+ra t tuo or r:'r+Ltr.l:+ IJ: •:. By - •nR Weer %CO11t,)•rtrl nl ;l - tie v�f'�f9�B�' Ute %����r9. U;lt+: • I • I✓ R .� 1 r fr A j i 'owl•:VW rr f P.O. Box less KENAI. ALASKA 88B11 1 ,1111 v 11. 19RFj Associafes Itr!11p �'fTl.l'�N.u.t'rrvf .ra. r 1 •1 CONSULTING ENGINEERS STRUCTURAL / CIVIL / PLANNING 215 FIDALGO, SUITE 204 (807J e83-3583 Keith Kornelis Public Works Director City of Kenai 210 Fidalgo Street Kenai, AK 99611 Re: MAIN 8T. LOOP, LAKE, MARINE, GRANITE POINT, FBO ' Dear Mr. K; rnel i s: Attached is a copy of Change Order Number 2 for the above pro- ject. The change order covers installation of water and sewer services installed under force account at the City's request. It ' also includes the pavement patches on Willow and Marine to be _ ' reimbursed by Homer Electric Association. I have attached a copy of a memo from the Contractor .requesting �+)';;���'; an extension of project time to August 23, 1985. i believe that a time extension on this contract is justifiable based on the following: 1. Change Order No. i required an extra 2 days. 2. Change Order No. 2 required an extra 5 days. 3. Dewatering on Granite Point took the Contractor approxi- !;;;�'' matel y 3 days. I The Contractor's schedule to date is as follows: t Begin worn per Notice to Proceeds September 1, 1984 Winter shutdown per memos October 23, 1984 Resume works May 21, 1985 End of 120 calendar days per Contracts July 27, 1985 , •""•,{'•I•'1'{'!\'1rrl^,'`1',•i ,1.�1"�.}5•'1"„1i"'�i1'\ia,ll l! r.'..i:, r I i i .. I Main St. Loop, Lake, Marine, Granite Point, FBO July 31, 1985 - Page 2 My recommendation is that the Contract be extended by 14 calendar days. This would extend the Contract completion date to August .{.��:Iris;,• lU, 1985. The Contractor should be substantially complete by August 10, 1985. Sincerely, WM. J. NELSON & ASSOCIATES Wm. J. Nelson, P.E. Principal , WJN/bsg Attachments !I • ,I li ._ I I I f ! I i' I 1 i I r i.%l'.:%f �'��'•i%� ��/)iij li ! , 7 P:. ..:�'. t:!?�, i' r I . 4 • I J I � I A r r I i T� ' r fo u c s i s a n �cx'i'cH off, 4� th �� 1 ��.Q.. v �► v a � 1 f 86". '7'1, �. r �gbov►S '�'o,r �' ; s er.��s�' I I ok awfcadlr-._Et, C }'. wt�lrs. � a r-2J'aCc.w o,/ 1c ONwc-a i PLEASEt.REPLY TOJs'} MMMIR 4 ,t I I I DATE SIGNED �- - • 4S 474 SEND PARTS 1 AND 3 WITH CARBONS INTACT • POLY PAK SO SETS) 4P/7A PART 3 WILL Di ROURNED WITH REPLY. i I _ 1 { WM. J. NELSON & ASSOCIATES l �:11 SM(n Box 9 Wof KENAI.LA9611 LETTER (907) 283.3583 To 1-477,V . 4CAIM 13 Date Subject W a 4 /s >a A4r rt/,C etWrnAc-me meez ofee0jAr wo,�,c' 7d /,vsT ic. w.�ra►2, MJo Sccc.� S82urc�CS c>IV MA-1W S,WC-4- i L�� f!S � /�coca�s : /, y •'S�ta�2 » S7`�} 7f 77 .er .?. Sezvoz .5?w 8-vrs e7- 3. / 2 "sir-Tbv2 5M 7s Z-T J. S, / i" t�.t-ram s 9t Zt zr .................. ro. �o" �vil�182 57A /,fir Yo Lj ❑ Please reply ❑ No reply necessary SIGNED Tfi�>S l�L� !s✓1S di t/6 Ciit/OGt2 A&ZGZ' 4eeOZA-,7 9291oi770Av5 /ti Ae-V lL w 7V /"Ps-Z ir" �4ccca�.�-t�s�F1a f'�ra� ?d corlisr•�r�cnai6 7,2 A-1405 G'�r1 -s -O Pirriir.F, /r t�,�ils Fezr 7-,-P`A7 rVMe 5 ~4w 51*W- o lee 60A157mc?= 110121�6pG /b /6714vim�f SD 7 �- 7 C ,eo hq a va 4,.0, M7" AS 7MeAl G,O /,✓ 7NE A%L. /r- 77AS ors -*41oo 7' /-W /�iA�i t: s, - .A& ,l vtzo� %if/S 41VV44-P A=74,47- 1A.,A-3Z77 Z_ L V,4 7DCA11 P2GtlGGT. 7Aik—� �373 fflf'1��' �EErcJ D�i�c-F1� i9c'lc� pr.� 7tU Tt ST�l tT /`'/ZOCF.r�u S I .s'Ci2,gG'z� /,tom 17& P/RGJarif SP�G/f'?CR37Ga-4 /iA-0 sus 0e,7-41 Z-D /N %?tt aKiNfD ❑ Please reply ❑ No reply necessary J - I . I MI V - / Suggested bys Administration CITY OF KENAI RESOLUTION NO. 85-82 A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AWARDING A CONTRACT FOR THE CONSTRUCTION OF MC COLLUM, ALIAK, PRINCESS, CINDERELLA, FOX, NORTH LINWOOD, MAGIC, HUTTO, JAPONSKI AND KENAI SPUR HIGHWAY (M.A.P.) GRADING, DRAINAGE, WATER AND SANITARY SEWER IMPROVEMENTS PROJECT TO ZUBECK, INC. FOR THE AMOUNT OF $1,665,095, WHICH INCLUDES THE BASIC BID PLUS ALTERNATES NO. 1, 2, 3, AND 4. WHEREAS, Attachment A lists the bids that were received on August 1, 1985 for the above -referenced project; and, WHEREAS, the following is a description of the basic bid and the alternatess Basic Bids Streets, drainage, water and sewer on major roads. Additive Alternate No. 1s Waterline tie-in Baron -Park to J Princess. Additive Alternate No. 2s Hutto and Japonski sewer -- Hutto water (Japonski water in basic). Additive Alternate No. 3s Kenai Spur Highway and West Aliak water and sewer. Additive Alternate No. 4s East Magic Avenue, street and sewer (water in basic) Additive Alternate No. 5s Princess Street (North of Magic), street, water and sewer. WHEREAS, Additive Alternate No. 5, the street, water and sewer for Princess Street (north of Magic), has been deleted because many people in the assessment district opposed it being in the L.I.D., it is not a high priority, and it is not a critical part of the project as a whole; and, WHEREAS, the administration is to investigate the possibility of deleting the sanitary sewer portion of additive Alternate No. 3 for West Aliak which if deleted would reduce construction, inspection, testing, surveying costs; and WHEREAS, the recommendation from McLane and Associates, the project design engineer and the Public Works Department is to award the contract to Zubeck, Inc. for the basic bid plus additive alternates No. 1, 2, 3, and 4 for the total cost of $1,665;095; and, T� 4 � ! .. r 9 �St 3- 1 WHEREAS, Zubeck, Inc.'s bid for the basic bid and desired j alternates is the lowest responsible bid and award to this bidder °..., f would be in the best interest of the City; and, WHEREAS, sufficient monies are appropriated. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA that the contract for the construction of McCollum, Aliak, Princess, Cinderella, Fox, North Linwood, Magic, Hutto, Japonski and Kenai Spur Highway (M.A.P.) Grading, Drainage, Water and Sanitary Sewer Improvements be awarded to Zubeck, Inc. in the amount of $1,665,095, which includes the basic bid plus Additive Alternates 1, 2, 3, and 4. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA this seventh day of August, 1985. r. y Tom Wagoner, Mayor !f + if "ATTACHMENT All M.A.P. PROJECT BID PROPOSAL SUMMARY Basic + Contractor Basic Bid Add. #1 Add. #2 Add. #3 Add. #4 Add. 05 Add.#1-4 Zubeck, Inc. $1,253,684 $83,147 $61,642 $153,370 $113,252 $66,745 $1,665,095 Frontier Construction, Inc. 10322,855 74,377 59,586 139,695 127,979 75,080 1,724,492 Construction Unlimited, Inc. 10391,473 81,684.50 62,558 146,440 124,163 74,144 1,806,318.50 Dana's General Contracting, Inc. 1,427,111 79,827 58,124 132,365 164,881 91,462 1,862,308 Doyle Construction Company 1,617,497 85,416 66,856 172,290 150,198.50 80,973.50 2,092,257.50 Engineer's Estimate 1,301,271.75 66,290 55,844.50 145,317.50 113,925.25 68,396.25 $1,682,649 r ix 0 MoLA E a AA60CIATE6, INC. PROISIONAL ENt3WEEA`S, SURVEYORS S PLANNERS August 2, 1985 Mr. Keith Kornelis Public Works Director City of Kenai 210 Fidalgo Kenai, AK 99611 RE: M.A.P. PROJECT 1985 Dear Mr. Kornelis: A review of the five proposals for construction of the i subject project has been completed. The attached is a summary of bids received and is in numerical order of low to high bidder. The lowest responsible bidder in any combination of basic bid plus addenda is Zubeck, Inc., of Kenai, Alaska. • ,. After considering the bids received, funds available, and priority of work, the following recommendations for award are made: Award to Zubeck, Inc., the basic bid plus additive alternates 1,2,3, and 4; delete the sanitary sewer portion of additive alternate 3 for West Aliak; -. — Or, award Zubeck, Inc., the basic bid plus additive ,- -alternates 1,2, and 4 only. The reasoning for the recommendations are: u — The north end of Princess Street is not presently �� ' i:'- •,, _ •., a high priority improvement and is not critical to accomplishing the general project. Therefore, ' additive alternate 5 should not be awarded; — The cost and improvements required for installation of the sanitary sewer portion of West Aliak (Additive '. Alternate Number 3, Schedule B) are expensive for servicing one structure at this time. Furthermore, ja very limited quantity of sewage would be received by the proposed lift station, creating a potential septic hazardous condition as well as high maintenance costs due to low flows and volumes. Therefore, either P.O. BOX 466 SOLOOTNA. AK 99669 907-263-421 e 4 t`h'l"i'�y�9�rHa4i4+xAci+aftlsnt;.:,, i•Af»: w... ...R..� •..:.�,. ,., , . ! M.A.P. Project 1985 August 2, 1985 Page 2 the sewer portion of the project should be deleted (if concurred by the contractor) or additive alter- nate 3 should not be awarded at all. Sincerely, +w_zbw Bruce Robson, P.E. Vice President • i F•� C r.i{ir�; BR/lc Attachment: 1 �N . .. ;1lJrr.i- i a�f�yivt.,f - •� _ I� ,�"t I-!!?I:it`::ei. s•r�-;' .'!:; .•4t-: :i��,;:" � _- � j' � � � d' ' ''I L; v�l a ;.i:. ;. v' :{.it i•�. _ -`_- r, I! E r. ;1 r Y� •��MVP iaR ;i�� .`�":g'u ��t:��lklrj!317"'w9aR"t's'e��!I,q�. M06ANB & A®90CIAT86, INC. PROR938IONAL e0hIM, SURVEYORS 6 PLANNERS August 2, 1985 'jNt` r-"'F 0SJ� AUG1988 Mr. Keith Kornelis�tyEp o Public Works Directo , ORKV City of Kenai c Q� 210 Fidalgo Requested motion: move to applbve McLane & Assoc., Inc. construction inspection, surveying, & testing, proposal on the M.A.P. project for the Basic Bid plus Additive Alternates No. 1 to 4 for a total not to exceed cost of $183,350. � Kenai, AK 99611 % I RE: M.A.P. PROJECT CONSTRUCTION INSPECTION, SURVEYING, AND TESTING PROPOSAL Dear Mr. Kornelis: The followingis our proposal to provide professional services for the subject project. These services will basically F; include, but not be limited to: - Construction Management {.. - Construction Inspection Construction Surveying - Materials Testing/Quality Control , - Computations/Pay Estimates +;Q3' The foregoing services shall be provided for the following ;... estimated fees: ' Schedule Inspection/Testing Field Surveys Basic Bid $89,750 �M0,7. O $56,000 Add. Alt. ail 5,000 2,600 7 000 Add. Alt. #2 4,000 3,900 7 900 Add. Alt. #3 6,000 3,000 9� 000 i Add. Alt. U4 6,000 7,100 jfir _i Add. Alt. 05 3.000 3,500 �I The scope of work will coincide with the portions of the project so awarded (fees accumulate per addition of additive ' alternates). All billings shall be in accordance with our attached fee schedule dated August 1, 1985. Therefore, dependent upon the final project awarded, our fee shall be a not to exceed figure which correlates with such basic costs plus additives as so desired. Sincerely, FOR COUNCIL MUtINf. OF -w•..7 g� —Q City Mp. ""'� Attm" W*U ---p Chyy Owk _ Bruce Robson, P.E. Fare Ot?ONpI Ta+e� 5ubsrttte�d Rr-G� Vice President Came" BR/lc Att bm�e ts• ppeg� Schedules �OSC 469 .0. 50LOOTNA. AK 988M 907-263-4216 McLane and Associates, Inc. Technical Personnel, Survey Crew and Specialized Equipment Fee Schedules Effective August 1, 198L�, Straight Regular Time/hr.. Overtime/hr. Technical Personnel Professional Engineer (PE) 65.00 N/A Registered Land Surveyor US) 60.00 N/A Civil Engineer 2 (E2, E20) 55.00 $ 66.00 Civil Engineer 1 (E19 E10) 50.00 60.00 Soil Technician (ST, STO) 45.00 52.50 Computer Technician (CT, CTO) 40.00 47.50 Engineering Technician (ET, ETu) 40.00 47.50 Draftsperson (D, DO) 32.00 39.00 Clerical (S, SO) 27.00 34.00 Survey Field Crews (Standard) Includes Standard Equipment Crew /Man /Crew /Man Chief of Parties (F1, F10) 45.00 54.00 2-per3on (F2, F20) 78.00 39.00 100.00 50.00 3-per3on (F3, F30) 111.00 37.00 138.00 46.00 4-per3on (F4, F40) 142.00 35.50 175.00 43.75 Survey Field Crews Title 36** (when applicable) r Includes Standard Equipment 1-person field/office (CF1,CF10) 50.00 68.00 2-per3on (CF2, CF20) 121.00 60.50 152.00 76.00 3-person (CF3, CF30) 177.00 59.00 222.00 74.00 4-person (CF4, CF40) 232.00 58.00 292.00 73.00 Supplementary Information The hourly rates above are portal to portal from McLane and Associates, Inc., located at Mile 3.5 Kenai Spur Highway. Standard equipment shall be defined as all necessary field crew i items including theodolites, auto levels and mobile FM radios. Other available equipment not included in these hourly rates are listed on the Specialized Equipment Fee Schedule. Transportation and subsistence while away from Kenai when not provided by the client are billed at the actual cost plus ten percent (10%) overhead. **The above rates are in accordance with the Department of Labor requirements as per AS 36.05.010 and AS 36.05.030. Fee Schedule, Continued Specialized Equipment Electronic Distance Measuring Daily._ Rate, Hewlett Packard 3810A (HP10) $75.00 Total Station Hewlett Packard 3808A (HP08) 50.00 Hewlett Packard 3805A (HP05) 25.00 TOPCON Geodetic Total Station (TC2) 50.00 Laser Beacon 5000 (LB50) 75.00 Reproduction Photocopy - per copy 0.15 Blue line - per square foot 0.35 Computer Systems Hourly Rate Hewlett Packard Model 85 (HP85) $20.00 with 7580 A Plotter and printer (COGO, plotting and earthwork software included) Hewlett Packard Model 125 (H125) 15.00 with letter -quality printer (word processing and engineering software included) Miscellaneous Equipment Daily Rate Raytheon Recording Fathometer 30.00 341 Uniflite Cabin Cruiser and - Other Work Boats upon request I All terrain vehicle (track) 150.00 Track vehicle - Bombardier Muskeg 300.00 " (8000 lb.) '..y" Snow Machine (double track) 30.00 + A.T.C. 200 w/trailer 50.00 Bombardier Muskeg w/Acker Drill Unit* 95.00/hr. Mobilization for miscellaneous equipment will be quoted on a per - job basis. *Does not include expendables which are cost plus 10%. I' w V 0 0 LABORATORY FEE SCHEDULE Effective August 1, 1985 Price Applicable Laboratory & Field Test Methods, Unit Code Standards Soil Test Description Price U1 ASTM D422, Combined Coarse and Fine Sieve $65.00 D1140 Analysis, Washed each U2 ASTM D422 Coarse Sieve Analysis, Unwashed 45.00 each U3 ASTM T-4 Fracture Count, Plus #4 Sieve Material 20.00 each U4 ASTM T-4 Fracture Count, Plus #10 Sieve Material 30.00 each U5 ASTM D422 Hydrometer (30 minute Frost Class.) 50.00 each U6 ASTM D422 Hydrometer (Full 24 hour readings) 65.00 each U7 ASTM D2487, visual Soil Classification, Sample 12.50 D2488, Grouping, Moisture Content, and Dry each D2216 Strength U8 ASTM D2216 Moisture Content Only 7 ea.7' U9 ASTM C127 Specific Gravity and Absorption (Coarse 45.00 Aggregate) each U11 ASTM C128 Specific Gravity and Absorption (Fine 75.00 D854 Aggregate) each U12 ASTM D4318 Liquid Limit, Plastic Limit, and 65.00 Plasticity Index each U13 ASTM D2974 Organic Content of Soil by Loss on 50.00 Ignition each U14 ATM T-13 Degradation of Aggregates 175.00 each U35 ASTM D1557 Compaction Standard (Moisture -Density 270.00 Relationship of Soils and Soil -Aggregate each Mixtures) U38 ASTM D2922, Field Compaction Test (By Nuclear 45.00 D21679 Densometer, Rubber Balloon, or Sand each D1556 Cone Methods) MDR ASTM D2922 Nuclear Densometer Rental (in addition 12.50 to technician time) /hour *Laboratory hours are 8:00 a.m.-5:00 p.m. Monday -Friday. Overtime testing, field or laboratory tests performed outside regular hours or on weekends will be billed at 1.25 times the regular rate. *Additional test methods not listed in this fee schedule will, be billed on a time and materials basis. i LABORATORY FEE SCHEDULE ( Page 2) Price Applicable Asphalt Quality Control Unit Code Standard Test Description Price UA1 ASTM D1559 Bituminous Mix Design by Marshall $1250.00 Method each UA2 ASTM D2172 Bitumen Content Centrifuge Extraction 150.00 Method A with Gradation and Ash Correction each UA3 ASTM D2172 Bitumen Content Reflux Extraction with 130.00 Method B Gradation and Ash Correction each UA4 ASTM D1559 Marshall Maximum Density, Stability, Flow 150.00 & Voids (3 lab. compacted specimens) each UA5 ATM T-14 Coating & Stripping of Bitumen -Aggregate 100.00 Mixtures each UA6 ASTM D3549 Thickness & Density of Compacted 50.00 D2726 Bituminous Pavement by the Coring Method each UA7 ASTM D2950 Density of Bituminous Pavement in Place 45.00 by the Nuclear Method J Price Applicable Concrete Quality Control Unit Code Standard Test Description Price UC1 ASTM C31 Field Cast 3 Cylinders, Test 1 Slump, $60.00 C143 and 1 Air Content each C173 UC2 ASTM C31 Field Cast 3 Cylinders Only 45.00 each UC3 ASTM C143 Additional Slump Test Only 16.00 UC4 ASTM C173 Additional Air Content Test Only each 18.50 each UC5 ASTM C31 Extra Control Cylinders 15.00 each UC6 ASTM C138 Field Yield or Unit Weight 20.00 each UC7 ASTM C39 Cure & Test Compressive Strength of 18.50 Cylinders, Cubes, Prisms, or Cores each UC8 ASTM C42 Concrete Coring per inch (in addition to 12.50 technician time) /inch UC9 �°•J ASTM various Concrete Mix Design. Billed on a Time & T/M Materials Basis & Unit Price combined. 9 I ' r II '{J I p � �1 I I f V I i I C.-!.03 Suggested by: Administration CITY OF KENAI RESOLUTION NO. 85-81 A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AWARDING A CONTRACT FOR PROFESSIONAL SERVICES TO ALASKA TRANSPORTATION CONSULTANTS, INC. FOR THE PROJECT ENTITLED, "KENAI MUNICIPAL AIRPORT MASTER PLAN UPDATE AND FLOAT PLANE FACILITY ENVIRONMENTAL ASSESSMENT" FOR A NOT -TO -EXCEED AMOUNT OF $70t445.00 WHEREAS, the City of Kenai received proposals from the following firms: Alaska Transportation Consultants, Inc. Century Ellerbe TRA/Farr Tippetts-Abbett-McCarthy-Stratton Coffman Associates USKH WHEREAS, the Public Works Department and Airport Manager feel that it is in the best interest of the City of Kenai to award this project to Alaska Transportation Consultants, Inc.; and, .p. WHEREAS, award of this project is contingent upon FAA approval and receipt of a grant for this work. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA that a contract be awarded for professional services to Alaska Transportation Consultants, Inc. for the project entitled, "Kenai Municipal Airport Master Plan Update and Float Plane Facility Environmental Assessment" for a not -to -exceed amount of $70t445.00. ✓ PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA this seventh day of August, 1985. Tom Wagoner, Mayor ATTEST: Janet Whelan, City Clerk Approved by Finance: Written By PW: j -- i f, , • .j I .n I r . j i Suggested by: Administration CITY OF KENAI RESOLUTION NO. 85-81 A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AWARDING A CONTRACT FOR PROFESSIONAL SERVICES TO ALASKA TRANSPORTATION CONSULTANTS, INC. FOR THE PROJECT ENTITLED, "KENAI MUNICIPAL AIRPORT MASTER PLAN UPDATE AND FLOAT PLANE FACILITY ENVIRONMENTAL ASSESSMENT" FOR A NOT -TO -EXCEED AMOUNT OF $709445.00 WHEREAS, the City of Kenai received proposals from the following firms: Alaska Transportation Consultants, Inc. Century Ellerbe TRA/Farr Tippetts-Abbett-McCarthy-Stratton Coffman Associates USKH WHEREAS, the Public Works Department and Airport Manager feel that it is in the best interest of the City of Kenai to award this project to Alaska Transportation Consultante, Inc.; and, WHEREAS, award of this project is contingent upon FAA approval and receipt of a grant for this work. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA that, contingent upon FAA approval and receipt of a grant for this work, a contract be awarded for professional services to Alaska Transportation Consultants, Inc. for the project entitled, "Kenai Municipal Airport Master Plan Update and Float Plane Facility Environmental Assessment" for a not -to -exceed amount of $70,445.00. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA this seventh day of August, 1985. ATTEST s Janet Whelang City Clerk Approved by Financ Written By PWs Tom Wagoner, Mayor �r Cl3 CITY OF KENAI " Od Oap4&1 of 41a44" 210 FIDALGO KENAI, ALASKA M11 TELEPHONE 283. 7635 MEMORANDUM FROMs Jack LaShot, Engineer City of Kenai TO: Keith Kornelis, Public Works Director City of Kenai DATEs August 2, 1985 REs Kenai Municipal Airport Master Plan Update and Float Plane Facility Environmental Assessment The following firms submitted proposals for the referenced project on June 31, 1985s Firm Budget Alaska Transportation Consultants, Inc. $ 70,445 Century/Ellerbe 1520830 Coffman Associates 95,760 USKH 84,830 TAMS 93,635 TRA/Farr 1259000 Due to the specialized nature of this project, all firms submitting proposals appear to be highly qualified. With exception of Coffman Associates, all have a great deal of Alaskan experience and all have offices in Anchorage. FAA has allocated $75,000 for this project. Since the project is funded by FAA and must be approved by them, we must either award the contract to a firm for less than this amount or ask FAA to Increase the allocation, which may be possible. In this case, the only firm submitting a proposal for less (Alaska Transportation Consultants, Inc. - $70,445) appears to be highly competent and has a good deal of recent experience on the Peninsula. i 4 a 1 Alaska Transportation Consultants, Inc.is taking part in the update of the Kenai, Soldotna, and Seward Comprehensive Plans, and participated in the Cook Inlet Regional Transportation Study. They apparently have worked extensively with FAA personnel and are quite familiar with their requirements. William H. Griffiths, President of the firm, came to Kenai to talk with Randy Ernst and me concerning the project. He appeared quite knowledgeable and receptive to our needs. Randy and I agree that selection of Alaska Transportation Consultants, Inc. would be a good choice. Of course, FAA must approve of the consultant and their approach to the project. I will ask Mr. Griffiths to attend the August 7, 1965 City Council Meeting. t I I �J t CITY OF KENAI "'Od C;apdW 4 4ia"a'" i 210 FIDALGO KHNAI, AUSKA ON11 _ TSLIWMON9283.7336 MEMORANDUM FROMs Jack LaShot, Engineer City of Kenai TOs Keith Kornelis, Public Works Director City of Kenai DATES August 2, 1985 REs Kenai Municipal Airport Master Plan Update and Float Plane Facility Environmental Assessment The following firms submitted proposals for the referenced project on June 31, 1985s Firm Budget Alaska Transportation Consultants, Inc. $ 70,445 Century/Ellerbs 152,830 Coffman Associates 95,760 USKH 84,830 TAMS 93,635 TRA/Farr 1259000 Due to the specialized nature of this project, all firms submitting proposals appear to be highly qualified. With exception of Coffman Associates, all have a great deal of Alaskan experience and all have offices in Anchorage. FAA has allocated $75,000 for this project. Since the project is funded by FAA and must be approved by them, we must either award the contract to a firm for less than this amount or ask FAA to increase the allocation, which may be possible. In this case, the only firm submitting a proposal for less (Alaska Transportation Consultants, Inc. - $70,445) appears to be highly competent and has a good deal of recent experience on the Peninsula. r, If •71 1' J 2 A' All Alaska Transportation Consultants, Inc.is taking part in the update of the Kenai, Soldatna, and Seward Comprehensive Plans, and participated in the Cook Inlet Regional Transportation Study. They apparently have worked extensively with FAA personnel and are quite familiar with their requirements. William H. Griffiths, President of the firm, come to Kenai to talk with Randy Ernst and me concerning the project. He appeared quite knowledgeable and receptive to our needs. Randy and I agree that selection of Alaska Transportation Consultants, Inc. would be a good choice. Of course, FAA must approve of the consultant and their approach to the project. I will ask Mr. Griffiths to attend the August 7, 1985 City Council Meeting. JL/cl f - - . �--,-J rA 3 D-/ AGENDA KENAI CITY COUNCIL - REGULAR MEETING JULY 17, 1985 - 7s00 PM PLEDGE OF ALLEGIANCE A. ROLL CALL 1. Agenda Approval 2. Consent Agenda *All items listed with an asterisk(•) are considered to be routine and non -controversial by the Council and will be approved by one motion. There will be no separate discuselon of those items unless a Council member so requests, in which case the item will be removed from the Consent Agenda and considered in its normal sequence on the agenda as part of the General Orders. B. PERSONS PRESENT SCHEDULED TO BE HEARD (Time Limit - Ten Minutes Per Peroon) 1, Tom Moyer, Luxury Theatres - Kambe Theatre Expansion 2. John Williams - Health and Safety in City 3. Representative - Women's Resource 6 Crisis Canter C. PUBLIC HEARINGS 1. Ordinance 1065 - Increasing Estimated Rev/Approp in S. Highbush, E. Allsk, Swires 8 Highbush Road Capital Project - $50,000. 2. Ordinance 1067 - Finding Certain City -Owned Lands Are Required for Public Use. 3. Ordinance 1068 - Increasing Estimated Rev/Approp. for Addition and Renovation to Animal Control Shelter - $15,000. 4. Resolution 85-76 - Transfer of Monies to Hire Manager for Fort Kensy - $595. 5. Resolution 85-77 - Award of Airport Runway h Taxiway Repainting Bid - Hansen Painting - $13,895.00. 6. Ordinance 1066 - Increasing Estimated Rev/Approp. in Borough Senior Citizen's Grant - $38,518. O. MINUTES 1. *Regular Meeting, July 3, 1985 E. CORRESPONDENCE 1. •Patricia Osborne, Ex. Dir., Peninsula Home Health Care 2. *Mrs. T. G. Sipperly - AARP F. OLD BUSINESS G. NEW BUSINESS 1. Bills to be Paid, Bills to be Ratified 2. Requisitions Exceeding $1,000 3. "Ordinance 1063 - Amend KMC 14.20.290 Concerning Appeals to 8d. of Adjustment - PAI 4. *Ordinance 1069 - Amend KMC 23.55.010 - Establish Ranges of Compensation for City Manager, Attorney and Clerk 5. 'Ordinance 1070 - Increasing Eat. Rev./Approp. - "Senior Employment Program" - $12,166 .. ' I r' �I . I 6. *Ordinance 1071 - Amending KMC 23.30.040 - Deletion of Inference that Pay Raises Within Pay Range are Due to Merit. 7. *Ordinance 1072 - Increasing Est. Rev./Approp. in Gen. Fund Budget to Survey and Plot Kenai Cemetery -$10,000 8. *Ordinance 1073 - Increasing Est. Rev./Approp. - Municipal Insurance - $200,000 9. *Ordinance 1074 - Increasing Est. Rev./Approp. in "Kenai Senior Citizen's Project" - $96,444. 10. *Ordinance 1075 - Increasing Est. Rev./Approp. for "Community Service Program" fund by $3,357. 11. Discussion - Consent to Assignment of Lease - Fisherman's Packing - Kenai Spit Subd. 12. Discussion - Lease Applications Lot 4, Blk 5s R/W CIIAP - Equipment Storage - Snelson Companies 13. Discussion - Lease Applications Lot 3, Blk 1, GAA Subd - Aviation Facility - Southcentral Air 14. Discussion - Vacation Public Access Easements Lot 1, Baron Park Subd. 15. Discussion - Marathon Road Power Relocation 16. *Games of Chance and Skill - AARP H. REPORTS 1. City Manager 2. City Attorney ' 3. Mayor 4. City Clerk 5. Finance Director 6. Planning h Zoning 7. Harbor Commission 8. Recreation Commission 9. Library Commission I. PERSONS PRESENT NOT SCHEDULED TO BE HEARD (Ties Linit - Five Minutes Per Person) ADJOURNMENT r_r r C7' ' 3 t i . i { KENAI CITY COUNCIL, REGULAR MEETING, MINUTES JULY 17, 1985, 7s00 P.M. KENAI CITY ADMINISTRATION BUILDING MAYOR TOM WAGONER PRESIDING PLEDGE OF ALLEGIANCE A. ROIL CALL Prosents Jess Hall, Raymond Measles, John Wise, Tom Wagoner, Tom Ackerly, Chris Monfort and Sally Bailie Absents None A-1 Agenda Approval Mayor Wagoner requested that the following changes be made to the Agendas a. Item 0-1 be removed from the Consent Agenda. b. Item C-4 be replaced with a substitute resolution. Agenda was APPROVED as amended. - A-2 Consent Agenda Sally Bailie MOVED for approval of the Consent Agenda and Raymond Measles SECONDED the (notion. Motion PASSED by Unanimous Consent. S. PERSONS PRESENT SCHEDULED TO BE HEARD 0-1 Tom Moyer, Luxury Theatres - Kambe Theatre Expansion Mr. Moyer and Mr. Skip Fletcher, present owner of the Kambe Theatre, spoke to the Council regarding the negotiations now In progress for the sale of the Kambe Theatre to Mr. Moyer. The plan Mr. Moyer would like to realize, after purchasing the Kambe Theatre from Mr. Fletcher, is to purchase the grounds from the City and enlarge the present building to house a total of four theatres with a total seating capacity of 700-800. They would also request a parking variance for additional parking space required. They have made numerous attempts to contact the owners of the present Poet Office building to discuss parking but have not been able to reach them. A copy of their plot plan was distributed to the Council members. They assured the Council that they would adhere to the code. Mayor Wagoner stated that he had no problem with the concept and advised Messrs. Moyer and Fletcher that their next step was to present their plan to the Planning h Zoning Commission for their approval. 8-2 John Williams - Health and Safety in City Mr. Williams spoke to the Council on two subjects: The coloration of the City water and the amount of dust from traffic using Candlelight Drive (the street on which he lives). He requested that the City inquire with manufacturers of water filtration systems to see if there is a filtration system which might help the City water situation. Upon questioning by Councilwoman Monfort Keith Kornelis, Public Works Director, answered that over the years he had made a number of inquiries and had had the water analyzed. He found that it would not be cost effective to install a filtration system at the wellhouoe -- y� J I � I r /I L ;i KENAI CITY COUNCIL July 17, 1985 Page 2 cost being approximately $1,000,000 to $1,250.000. The cleaning of the water lines could be a solution. The coot would not be quite so bad, however, the training would be fairly expensive. He will look further into this. In regard to the dust on Candlelight Drive, Mr. Williams told the Councilmembero that with the road being unpaved and the amount of new homes, etc. being built along that road, the dust problem has become overwhelminq. Also, with the work being done on the golf course, an even larger amount of traffic uses the road. He requests that a short term solution be administering calcium to the road surface -- a long-term solution would be strip paving. Councilman Aekerly asked if the citizens on that street would be interested In an LID? Mr.Willlams sugqested that it could possibly be an answer, but not at 50% of the cost. He feels that that the citizens would not feel it fair that they would have to pay such a high cost for their road to be paved when the golf course placement at the end of the street will generate much of the traffic. 8-3 Representative -- Women's Resource h Crisis CentAr Mr. Bob Molloy, a board member of the WRhCC spoke to the Council requesting reconsideration of Resolution 85-68. The resolution allowed the City of Kenai to act so a pass -through agency accepting grant monies to pass through to the WRhCC. Due to liabilities that might be placed on the City, the Council chose to negate Article I, Grant Condition No. 5 (relating to operating and maintaining the structure) and No. 11 (relating to the Little Davis -Bacon Act), which was found to be unacceptable by the State, the grantor. Discussion followed in which councilmembers aired their concerns which dealt with the possibility of the City having to maintain the building if the WRhCC had to close its doors and liabilities to the City if the grant were to be audited and auditors were not accepting of how the money was handled by the WRhCC but would reflect back to the City. MOTION (Reconsideration of Res. 85-68)s Councilman Wise MOVED for reconsideration of Resolution 65-68 and Councilwoman Monfor SECONDED the motion. Discussion followed in which Mr. Brighton informed the Council that the Director of Administrative Services for the State of Alaska, Gary Bater, would not accept the grant as they have amended it, but will send a new application for completion if Council wishes to do so. Mayor Wagoner added that due to the unclear verbage of No. 5, he would not vote in favor of the resolution until ouch time that the condition was made clear. VOTE, Reconsideration (PASSED) Yeas Ackerly, Bailie, Hall, Measles, Monfor and Wise Nos Wagoner MOTION, Amendments Councilman Wise MOVED for amendment of the resolution by deletion of the paragraph beginning with "BE IT FURTHER RESOLVED..." and Councilwoman Bailie SECONDED the motion. there was no discussion. I _ a Y' r 13 /may' 11 KENAI CITY COUNCIL July 17, 1985 Page 3 VOTE, Amendment (PASSED)s Yost Ackerly, Bailie, Hall, Mnanlnn, Monfor and Wine. No$ Wagoner VOTE, Motion as Amended (PASSED)s Yost Ackerly, Rollie, Hail, Hessian, Monfor and Wine. Not Wagoner Public Comments Mr. David Jockman, owner and board Member of the WRhCC gave an impeaaloned plan for protection of battered women noekinq a staffs place from all over the Peninoula, to got on with it. Carmen Gintali, offered to administer the grant of no cost to the City. VOTE, Main Notion an Amended (PASOEO)t Peet Ackerly, Bollle, Hail, Mosaloo, Nonfat and Wine. Not Wagoner. TEN MINUTE RECESS CALLED. C. PUBLIC HEARINGS C-1. Ordinance 1065 - Increasing Estimated Revenues and Appropriations in South Highbush E. Alisk. $wires 6 Highbush Road Capital Project - 60,000. MOTION$ Councilman Mannino MOVED for adoption of Ordinance 1065-85 Councilman Hall SECONDED the motion. There was no public comment. VOTES Notion PASSED UNANIMOUSLY by roll call vote. C-2. Ordinance 1067 - Finding Certain City -Owned Lands Are Required for Public Use. NOTIONS Councilman Heaales MOVED for the adoption of Ordinance and Councilwoman Sallie SECONDED the motion. There was no public comment. Councilman Wise stated that he had no problem with the Intent of the Ordinance, but would like to have it tabled until the area platted. He is concerned that it may be misunderstood that C-2 is open for development by implication with the passing of the ordinance. No feels that C-1 should be made Into a special sons. Councilman Ackerly stated that the platting can be done after -the -fact so it has been done before which would allow for the surveying to begin immediately. Mr. Brighton stated that If there is interest in development of the property, Council approval Is still required prior to any development. VOTEt Notion PASSED UNANIMOUSLY by rail call vote. C-3. Ordinance 1068 - Increasing Intimated Revenues and Appropriations for Addition and Renovation to Animal Control Shelter - S15,000. 1 .n- 1'huaar� i • I ' I r •�. h: I u•.t .T r41 KENAI CITY COUNCIL July 17, 1985 Page 4 MOTION$ Councilman Aekerly MOVED for adoption of Ordinance 1068 and Councilman Hall SECONDED the motion. There was no public comment. VOTE$ Motion PASSED UNANIMOUSLY by roil call vote. C-4. Resolution 85-76 - Transfer of Monloo to Hire Manaqer for Fort Konay - $595. Substitute Revolution 85-76. MOTION$ Councilman Mansion MOVED for adoption of Resolution 85-76 and Councilwoman Monfor SECONDED the motion. There was no public comment. Councilman Ackarly asked who wan to hove to the contract. Answers Pat Porter, Administrator of the Senior Center. VOTE$ Motion PASSED UNANIMOUSLY by roll call vote. C-5. Resolution 85-77 - Award of Airport Runway 6 Taxiway Repainting Bid - Nanoon Painting - $13,895.00. NOT IOW I Councilman Ackeriy MOVED for adoption of Resolution 85-77 and Councilwoman Monfor SECONDED the motion. There was no public comment. VOTE$ Notion PASSED by unanimous consent. !' C-6. Ordinance 1066 - Increasing Estimated Revenues and Appropriations in Borough Senior Citizen's Grant - $38#518. NOTION$ Councilman Aekerly MOVED for approval of Ordinance 1066-85 and Councilwoman Monfor SECONDED the motion. There was no public comment. S Councilman Aokerly Inquired if the City of Soldotns had eppropristed funds to the Senior Citizen Center. Answers Yes, but lose than what was requested. Mr. Aekerly added that he did not feel that the City of Soldotns was pulling their weight. VOTE$ Notion PASSED UNANIMOUSLY by roil call vote. f� 1 i v I i • i u 1' I i � 1 0 a 3 KENAI CITY COUNCIL July 17, 1985 Page 5 D. MINUTES 1. Regular Meeting, July 3, 1985. Clerk requested the Minutes be taken from the Consent Agenda due to a portion of a motion which was inaudible on the tape and unheard during the meeting. She requested that the word "(inaudible)" be stricken from the Minutes on page 12, Item G-B, Motion, Amendment,and amended to read "to add the same terms and conditions as the City Manager's as amended." MOTIONt Councilman Wise MOVED for approval of amendment to the Minutes of the Council Meeting of the City of Kenai of July 3, 1985 and Councilman Ackerly SECONDED the motion. Councilman Hall requested Unanimous Consent. VOTES Motion PASSED by unanimous consent. E. CORRESPONDENCE E-1 Patricia Oeborne, Ex. Dir., Peninsula Home Health Care E-2 Mrs. T.G. Sipperiy - AARP APPROVED by Consent Agenda. F. OLD BUSINESS There was no old business. G. NEW BUSINESS G-1 Bills To Be Paid, Bills To Be Ratified NOTIONS Councilman Measles MOVED for approval of the bills as submitted and Councilman Ackerly SECONDED the motion. Mayor Wagoner asked if the $17,000 donated to the Chamber of Commerce would be used for the some purposes as last year. Mr. Brighton answered not necessarily, however, according to the agreement, the Chamber is to submit a list of what the money was used for last year. The cost of the brochures was not included in the expenditures of the City's donation last year. VOTES Motion PASSED by unanimous consent. G-2 Requisitions Exceeding $1,000 MOTIONS Councilman Measles MOVED for approval of the requisitions as submitted and Councilman Ackerly SECONDED the motion. Councilman Ackerly caked if the Family Medical Center, which has submitted a bill for water testing, is certified. Answers Yes. Motion PASSED by unanimous consent. G-3 Ordinance 1063 - Amend KMC 14.20.290 Concerning Appeals to Board of Adjustment - Planning 6 Zoning G-4 Ordinance 1069 - Amend KMC 23.55.010 - Establish Ranges of compensation for City Manager, Attorney and Clerk. i f r, i� 'r 11 , I i KENAI CITY COUNCIL July 17, 1985 Page 6 G-5 Ordinance 1070 - Increasing Est. Revenues and Appropriations "Senior Employment Program" - $12,166 G-6 Ordinance 1071 - Amending KMC 23.30.040 - Deletion of Inference that Pay Raises Within Pay Range Are Due to Merit. G-7 Ordinance 1072 - Increasing Estimated Revenues and Appropriations in General Fund Budget to Survey and Plat Kenai Cemetery - $10,000. G-8 Ordinance 1073 - Increasing Estimated Revenues and Appropriation - Municipal Insurance - $200,000. G-9 Ordinance 1074 - Increasing Estimated Revenues and Appropriations in "Kenai Senior Citizen's Project" - $96,444. G-10 Ordinance 1075 - Increasing Estimated Revenues and Appropriations for "Community Service Program" fund by $3,357. APPROVED by Consent Agenda. G-11 Discussion - Consent to Assignment of Lease - Fisherman's Packing - Kenai Spit Subdivision. MOTION: Councilman Wise MOVED for approval of the aesignment of lease and Councilman Measles SECONDED the motion. Question was raised by Mayor Wagoner if a year before the Council had approved the lease for a development plan and if the lessee was not close to the termination date for not -• having the required development (by the lease) completed. Land Manager Labahn answered that the completion date for the development is in 1986. VOTE: Motion PASSED by Unanimous Consent. G-12 Discussion - Lease Applications Lot 4, Blk 5s R/W CIIAP Equipment Storage - Snelson Companies. MOTION: Councilman Ackerly MOVED for approval of the lease application by Snelson Companies and Councilman Wise SECONDED the motion. The original lease of this property by Snelson Companies was for 20 years. The lease term is now coming to an end and the Snelson Companies would like to renew the lease. Councilman Ackerly stated that he felt that the fence around the property should be repaired -- it should be made a condition of the lease. Land Manager Labahn stated that the Planning Commission has determined that the reparation of the fence would be required in the new lease. Mayor Wagoner stated that with the development of the surrounding prnperty (HEA building and Fred Meyer store) and the capability of what Snelson lease property can be used for, that perhaps the City should not allow the renewal of the lease. Councilman Ackerly suggested a shorter term lease. MOTIONt Councilman Wise MOVED to limit the lease to a ten-year term. Motion FAILED for lack of second. r �J M ,'LY.Ift 1%•11r.-.y�:tl:in:.!•r{ .•.i; - - _ _ -_ __ •,e KENAI CITY COUNCIL ' July 17, 1985 Page 7 MOTION: �?•�,.'� Councilman Ackerly MOVED to limit the lease to a five-year '. term and Councilman Wise SECONDED the motion. Because of the Airport Master Plana existence in five - years, Mayor Wagoner suggested a note be attached in the lease file to explain why the lease is for a shorter term, r etc. so that future councils will have an understanding of their action. City Manager Brighton asked Mr. Labahn if the i language of the lease will be brought up-to-date as in the current losses. Answers It would be required. VOTE (FAILED): i Yess Ackerly. Nos Wagoner, Baille, Hall, Measles, Monfor and Wise. MOTION: Councilwoman Monfor MOVED to limit the lease term to two y years and Councilwoman Bailie SECONDED the motion. VOTES - Motion PASSED UNANIMOUSLY by roll call vote. Memo to be i included with the file as noted above. G-13 Discussion - Lease Applications Lot 3, Blk 1, GAA { Subdivision - Aviation Facility - SouthCentral Air. ? MOTIONS 4 Councilman Ackerly MOVED for approval of the lease �• application by SouthCentral Air and Councilman Wise SECONDED ' the motion. 1 „ Councilman Ackerly questioned whether this property is the property proposed for placement of a hotel. Answers J. Labahn -- The lease application is for a renewal of a 20-year lease now terminating - hangar use. They are requesting a stipulation of a 55-year lease. Property is . restricted to lease only due to property being on airport • lands. Verbage of the lease again would be brought up to }I date with current leases. Mayor Wagoner stated that because the property is within the F80 area which may be re -designed so that the property area would be used more efficiently, SouthCentral Air should be notified of that possibility. He supposed that if <' 'Q� relocation of the building, etc. would need to be done in 4 the future, the federal government would allocate funds with which to do it. tt VOTES j Motion PASSED UNANIMOUSLY by roll call vote. f. I G-14 and G-15 Discussion - Vacation Public Access Easements - _ Lot 1, Baron Park Subdivision and Discussion - Marathon Road Power Relocation. - ',.• NOTIONS i 3, Councilman Wise MOVED for approval of the vacation of the public access easement, Lot 1, Baron Park Subdivision and Councilman Measles SECONDED the motion. The vacation of the public easement at Marathon Road/Airport Way/Kenai Spur Highway 1s to consolidate city -owned airport lands. A substitute access will be established adjacent to r' t it 1 k_ 1 M KENA1 CITY COUNCIL July 17, 1985 Page 8 Crayeroft Chrysler. The vneation has been approved by the Kenai PAZ Commission and also by the KPR Planninq Commission. Discussions Mayor Wagoner etated that he feels that the City will be paying for work that HEA had planned on doinq prior to the City's intornmt in having the relocation done. Councilman Hall added that due to the nqe of the system, it would be changed over In the near future. There should he a middle ground allowing for less coat between what the City would like to have done and what Hf.A will be doing in the future. Councilman Aekerly added that the work the City wants to have done will he upgrsding HEA's system and the City is bearing the coat. Mayor Wagoner suggested that a meeting be held with HEA administration in order to work this out. Councilman Ackerly asked If this relocation of poles was work needing to be completed this summer. Answer was yes. Possibility of moving just two poles so that road work can be completed and the rest of the project could be completed after working out details with HEA. VOTES Motion PASSED by unanimous consent. G-15 Discussion - Marathon Road Power Relocation In connection with the discussion on Item C-13 discussion continued on the amount of the coat to the City for the power relocation work. Councilman Hall suggested that the City negotiate with HEA the cost of the work with s cap at $30,000 and if this Is not acceptable with HEA then move only the two poles and go on with the road work. Public Works Director Kornelis added that Glacier State and FAA are also using the poles, it is a dedicated right-of-way. He would like to go ahead with bidding procedure to get HEA moving. Councilman Wise proposes that City most with Kent Wick from the HEA main office as they are the policy makers. Consensus of the Councils Most with local HEA officials, giving them a 30-day period in which to make some decision -- cost should not exceed S30,000 on the split and if this is not acceptable, move the two poles and then go elsewhere, either to HEA officials in Homer or the HEA Board of Directors. G-16 Games of Chance and Skill - ARRP PASSED by Consent Agenda. H. REPORTS H-1 City Manager 1. Community Centers Mr. Brighton stated that although newspaper articles and local radio news states otherwise, the community center proposal has not yet been rejected and from his conversations with State officials, Gillespie, Andrews and Bader and State Representatives and Senator, there has been no decision made at this time for or against the proposal. Senator Fischer and Representative Navarre have agreed to write letters of support and telephone necessary offices to push for support. "And projects" was not striken from the application by the Governor. I i J � J `I 1 _`.fit �r .,... .� "1•k=,!�`.?�;-- ;a'— • • KENAI CITY COUNCIL July 17, 1985 Page 9 2. Mr. Brighton informed the Council that he had attended the Borough Assembly Meeting on July 16, 1985 and there were some items he feels the Council should be aware. a. The Borough In asking for non-aroawide road powers. Could have a substantial bearing on the cities of Kenai, Seward, Soldotna and Homer. He is planning on meeting with city managers of those cities to discuss how this will relate to their communities. There in a public hearing on August 6, 1985 -- he is hoping to meet with the city managers prior to that public hearing. The Assembly unanimously voted for the introduction of this request. b. There has been a request for a new fire service area combining Ridgeway and Sterling. This will be on the ballot in the fall. Also one for the Kalifornski Reach Road aroa. He does not feel that the Kolifornaki Beach Road area will be successful an there hoe been some interest again stated by people in the Chinulns Point area to petition for annexation. He feels that the people of that area should have the opportunity to vote for whether or not they want to be annexed, in a fire service area, etc. As It Is now, the - - Borough is making the choice for them. He feels that the City of Kenai has a responsibility to these people to insure they have a chance to vote on these subjects. Mincilman Aekerly suggested that the City file an injunction, law suit or write their objections to the Borough in relation to what the Alaska Constitution allows. Mayor Wagoner suggested that they wait to see if the Borough Assembly passes the resolution. the City Attorney will be back in the office by that time and can form a legal opinion and present it to the Council. Mayor Wagoner requested that this subject be placed on the next agenda for discussion. Consensus of the Council is to have annexation of the Chinulna Point area , initiated by the citizens of that area. r, 3. An ordinance on the Borough level for the issuance of industrial revenue bonds worth $230,000,000 which do not commit any single citizen on the Kenai Peninsula Borough to , the retirement of the bond indebtedness -- only the company which it is being floated for is committed to the retirement of the bonds and that is Diamond Shamrock Company. Mr. Brighton feels it is the development of that area will be economically advantageous to the City to support these bonds. 4. Fred Meyer had their architects in town going over plane with the Planning 6 Zoning Department and the Building Inspector making sure things were understood and working smoothly. 5. Jeff Labshn has handed in his resignation to take a position as the Planning Director for the City of Dillingham. Mr. Brighton expressed his appreciation of the superior work that Jeff has done for the City of Kenai. H-2 City Attorney City Attorney is out of town. No report given. H-3 Mayor 1. Some time ago he drafted a letter to Mr. Cunningham of the FAA expressing his distaste for the low priority the FAA placed on the moving of FAA towers and the high priority the City has placed on this project. He informed Mr. Cunningham that the City will pursue the removal of the towers. He added that his letter to Mr. Cunningham was rather caustic. He has since received a telephone call from Mr. Cunningham In which they agreed that they did not agree on much. He wanted the Council to be aware of what han transpired. I- - KENAI CITY COUNCIL July 17, 1985 Page) 10 8-4 City Clerk Reported that the nominating potltions and Information for City Council positlono is available in the office. Also information on the Municipal League meeting woo passed out to each Councilmombor for their Information prior to the meeting. 8-5 Finance Director There woo no financial report. H-6 Planning h Zoning Land Manager J. Labohn stated that a preliminary draft of the Old Towne Study to ovsilnble for Councilmembers. fie would like comments and suggestions returned by July 29. H-7 Harbor Commission There was no report. H-8 Recreation Commission There was no report. H-9 library Commission Commission Cheirperoon Linda Swernor reported that there hoo been a change in the excavation contractor and to the reason why the trees have not been removed from the property as yet. T. PERSONS PRESENT NOT SCHEDULED TO BE HEARD 1. Jeff Labahn spoke to the Council regarding his acceptance of the Planning Director position for the City of Dillingham. He is excited about the job and the prospects for the future. Mayor Wagoner wished him well in his endeavors. 2. Councilman Ackerly. Questioned if a building permit has been issued for Lowry's restaurant due to the ground moving, etc. going on. There was to be a site obscurement between the bowling alley development and the apartments and there Is none at this; time. 3. Councilman Ackerly. Paving of Main Street to begin soon. Answers Probably next week. 4. Councilman Ackerly. Anything new on SouthCentral Hotel and Hutchings? Mr. Brighton replied that his secretary has been calling and leaving messages numerous times but has had no reply from Hutchings. Had a meeting with Lofstedte and the FAA with site plans. The FAA has tentatively okayed the site plans. As he understands, everything moving along. S. Councilman Ackerly. Seems to be an amount of variances requested. Why have the ordinance if a variance always given. Councilman Wise replied that the P&Z Commission to making a conscious effort. They have turned variance requests down which the Council has approved. 6. Councilman Wise. State of Alaska Department of Resources has billed Union Oil for royalties on sales that accrues to the State and other people. If Union, in their appeal, is not succeauful, ell the people In the State will I 7 1 KENAI CITY COUNCIL July 17. 1985 Pago 11 be affected, through Enstar/KUSCO because of the contract between Union/Marathon and the City of Kenali and, through our electric bills. Chugach has joined the suit. Feels that the City has an obligation because of being a direct contractse to review the suit and perhaps Join the suit along with Easter and Chugach. It should be reviewed by the City Attorney. 7. Councilwoman Sallie. In regard to G-3Ordinance 1063, i Amending KMC 14.20.290 which allows for o 100 expense foe deposit for the filing of the notice of appeal. Councilwoman Rallis feels that the fog should be returned to the appellee if successful. S. Councilwoman Snilie. Street lights in VIP Subdivision. There are no street lights there and fools there should be something done as soon as possible. Mayor Wagoner added that no the HEA proposal to motor all street lights is so out of line, other avenues should be looked at, such so long -life bulbs allowing cheaper maintenance. Suggests meeting with the REA manager regarding metered street lights. Also suggests a list of where lights are necessary be put together now so that when a decision is made on what lights to be used, etc., the project can be moved on immediately. Councilman Wise added that he would like to have the lighting system changed in Woodland, Redoubt and Inlet View Subdivisions project go ahead as soon as possible. Mr. Kornelie stated that the ballast and fixture will need replacing as these fixtures are out-of-date and cannot be replaced after burn -out. He used City Electric's recommendation for Inlet Woods lighting plan. MOTION$ Councilman Wies MOVED to have the lighting system project move ahead for Woodland Subdivision and Councilman Aekerly SECONDED the motion. Discussions The project is out to bid. VOTES Motion PASSED UNANIMOUSLY by roll call vote. 9. Councilman Aekerly. Question regarding the increase in Insurance. There is a resolution which has been introduced under Consent Agenda. Discussion followed regarding self-insurance -- pros and cons. Mayor Wagoner stated that he felt the State should take some responsibility. ADJOURNMENTs Meeting adjourned at approximately 10s15 p.m. Caro�Frees �w.�/art/ Deputy City Clerk i i r i i { / I I t III MAW. 4. Mtream UMUK fNIIIIWAN A RMN Iitmov, STAFF oMtcm FP1AP" a SUMAN, Ir101=1V STAFF otllto M C'"°"'" united �5mtts Ornate PIMA oA6oTA COMMITTEE ON APPROPRIATIONS WAsmiucTON, DC 20510 xlatr July 12, 1985 E -I '^1`31 The Honorable Tom Wagoner s � Mayor F . rfNai City of Kenai �i,�Gz$ZtiZy 210 Fidalgo Kenai, AK 99611 Dear Toms I am writing to let you know that the new Customs Service rule concerning cruise ships is now in effect, having been published in final form in the Federal Register on Monday, July 1, 1985. As you know, the new rule will allow foreign -flag cruise ships to call on more Alaska ports and stay longer in port. Our travel and tourism industry has already benefitted from this change. SITMAR Cruise Line has announced that next year it will move the home port of one vessel from Califor- nia to Seattle so that more Alaska ports -of -call can be added to its itinerary. I am optimistic that other cruise ship operators will follow suit. - -�� The large number of positive comments from Alaskans was an important factor in getting the rule adopted. I'd like to thank you for your help in this successful effort. With best wishes, :7 Cordially, Ci; �. E ST ENS I I I i �I I , i 0 s l� itUU DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES OFFICE OF THE COMMISSIONER POUCH z P%ONV IS'Oh 486-A�I f J� July 8, 1985 . I f'� File No. 2519 t RE: Local Service Roads and Trails Poogram, New Appropriation Chapter 96 SLA 1985 The Honorable Tom Wagoner Mayor, City of Kenai 210 Fidalgo Kenai, Alaska 99611 Dear Mayor Wagoner: The $1.15 million appropriation for local Service Roads and Trails (LSR&T) Program was signed into law by Governor Sheffield and became effective July 1, 1985. Your allocated amount is $5,650. For additional information please contact: Robert Haneline, LSR&T Manager Department of Transportation and Public Facilities 5600 "B" Street, Suite 101 Anchorage, Alaska 99502 Phones (907) 561-1148 Thank you for your support of the program. cc: George Janssen, Deputy Commissioner, Central Region 1 ' i 1 DEPARTMENT OF ADMINISTRATION OFFICE OF THE COMMISSIONER POUCH C iMS 0200) P ONEUi 07) 468 �?00 July 1, 1985 g21303p 1 City of Kenai �ti`2 V"' 210 Fidalgo �. „ �� e� Kenai, AK 99611 N "' ;, ; • ` -.- Dear Mayor: The Legislature has appropriated grant(s) to be awarded to your municipality. Ihis(These) has(have) been appropriated by the 1985 Legislature and is(are) governed by AS 37.05.315. Two copies of an agreement form for each grant are enclosed. To receive a grant, simply read the agreement, provide further details of grant purpose and description of the project, complete the certification on both copies to indicate acceptance of the grant and its conditions, attach a copy of the ordinance or resolution approving the grant and mail both copies to: ` Department of Administration Division of Administrative Services Municipal Grants Program _J Pouch C (MS 0208) Juneau, AK 99811 Upon receipt, the Department of Administration will approve the agreement and mail a check for 20� of the grant amount and one copy of the agreement form within ten days of approval by the Department of Administration. The remainder of the funds will be disbursed based on expenditures certified by you, the Mayor, or your desig- nated city official, in a monthly financial report. THE ENCLOSED STANDARD AGREEMENT FORM SPECIFIES THE GRANT PURPOSE, AND APPRO- PRIATED FUNDS MAY ONLY BE USED FOR THAT PURPOSE. If the grant is for $100,000 or less, the entire grant amount will be advanced to the municipality. If the grant is for more than $100,000 and is for a one-time equipment purchase, the municipality can request that the remainder of the funds be paid in a lump sum. A purchase order or other proof of funds committed must be submitted with the request. If you have any questions regarding the agreement or administration of grants, please phone Kevin Brooks in the Division of Administrative Services at 465-2290. I Yours sincerely, Andrews' iTeanor Commissioner EA/jbh 1/1F5/1019-01c/60 Enclosures 04.COLH PS 1 t .I' li' • f. 1 y33djj i I .. 1 r. + I{ � t I� � I M. t,i Shore Ole I� July 29, 1985 Ms. Ski Olsonowski Deputy Commissioner Department of Administration Pouch C Juneau, AK 99811 REs Grant conditions to pass through grant to the City of Kenai for WRCC's construction of Shelter for Battered Women Dear Ms. Olsonowskis I am a member of the Board of Directors of the Women's Resource and Crisis Center, Kenai, Alaska. This is in regard to grant conditions No. 5 and No. 11 of the State of Alaska's pass through grant in the amount of $50,000,00 made to the City of Kenai for passing through to WRCC for construction of $ts Shelter for Battered Women. When the legislature appropriated the funds for this grant, and it was approved by Governor Sheffield, the Board Of Directors of WRCC was not aware that the State of Alaska's Department of Administration would attach grant condition No. 5 and grant condition Noll which refers to the "Little Davis -Bacon Act" of Chapter 5, Title 36, Alaska Statutes. Prior to the appropriation, WRCC had planned the remaining steps- needed to complete construction of the Shelter, and had negotiated contracts looking to completion, the work under which would later be done and payment for which would be made out of the grant appropriation. As you know, after Governor Sheffield signed the legislation, and the Department of Administration informed the City of Kenai of grant conditions, the City of Kenai objected to conditions No. 5 and No. 11. The Department refused the City's acceptance without those condition's, and so wRCC representatives again appeared before the City Council and the Council voted to accept the grant with these conditions. Since construction proceeded and time was of the essence $29 Man Street Business Une ... 283.9479 XeaW, Alaska 99611 1 Crisis Une ... 283.7257 I in obtaining the pass through grant, WRCC did not have sufficient time to apply for a waiver of grant conditions No. 5 and No. 11 before the grant award. WRCC would like to apply for a waiver of grant conditions No. 5 and No. 11 at this time upon the following grounds: 1. The Little Davis -Bacon Act applies to contracts between a contractor and the State of Alaska or a political subdivision of the State for public construction, AS 36.05.010. The contracts to which conditions No. 5 and No. 11 apply are contracts between WRCC, a private, non-profit corporation, and individual or private corporate contractors. The contracts are for the purpose of completing the construction of the Shelter for Battered Women. WRCC owns and will operate the Shelter, and the Shelter is not a public facility* only a small portion of this private facility is even open to the general public, i.e., WRCC's administrative offices. The majority of the facility, i.e., the Shelter, is closed to the public, but is only open to WRCC staff and WRCC clients and their children. 2. There are only about three (3) contracts in excess of Two Thousand Dollars ($2,000.00) to which we feel that condition No. 11 would be applicable. These contracts were negotiated before WRCC was aware of condition No. 11e in the absence of a waiver, WRCC will have to renegotiate them, and the resulting increased expenses may result in a failure to complete the -Shelter as planned due to budget overruns. 3. This has been and is primarily a WRCC and community sponsored, volunteer project. The Shelter when completed is estimated to be worth approximately $500,000.00. Therefore, approximately $450,000.00 has been invested by the community in the form of cash, labor and materials that have been donated. Many of our local contractors have submitted generously Y:ow ,bids, have donated much in labor and materials as parf of their voids or aside from their bids, being paid from funds raised by fund-raisers. Many of these contractors might have approached things differently if they had been aware that the Little Davis -Bacon Act might apply. 4. This community and WRCC sponsored, private, and primarily volunteer construction project is not the type of public construction project to which Chapter 5, Title 36, and the regulations thereunder were meant' to apply. The regulations, and grant conditions No. 5 and No. 11, are overbroad and unreasonable with respect to this project. 2 tij The Hoard of Directors and staff of WRCC certainly does appreciate very much the appropriation by the legislature, and the award of the grant by the Department of Administration following Governor Sheffield's approval. We do hope, however, that the Department of Administration will grant a waiver of grant conditions No, S and No. 11 due to the uniqueness of this private project which benefits the public. I will appreciate it very much if this request or forward it to the appropriateYou will consider consideration. Thank you for assistancparty for matter* your assistance with this Very truly yours, cc: Board of Directors, WRCC Joanne Lopez, Executive Director for WRCC Hon, Thomas Wagoner, Mayor, City of Kenai Members of City Council, City of Kenai William Brighton, City Manager •r. 0 A i 3 M 11 1 f 1 ! i I f y; f :.... _�_f_ ._.n . fit; e. f rf :: r� - - , +}... ..r. __ .»..n..r....--«q.•r.rw.�-.....wr-. t.-r I PAYNP.NTA nVRk 0I,000.00 WItIC.tt NRRp COUNCIL APPI � . OR AATIPICATIUN 8/7/85 KN SCRIPTIO DEPA THE T ACCOUNTAMOUNT POP MIL t Wince, Corthell Bryson Inspection Inlet Woods Aeneas. Inspection 48,856.20 -.-. Inspection CP-Standard, Rich. Inspection 14,338.40 McLane 6 Assoc. Inspection Sprucewood Clan Assase.Inspection 12,561.65 Engineering Alisk, McCollum Engineering 14,290.96 xubock, Eno. Pay Est. No.l Sprucawood Clan Asocsa.Construction 81,367.20 Central Alaska Construction Pay Est. NO.3 CP-Standard, Rich. Construction 53,796.37 IA,yla's Excavating Pay Hot. No.l Inlet Woods Aeneas. Construction 554,348.50 William Nalson 6 Assoc. Inspection CP-Lako Inspection 14,809.85 Inspection CP-Nighbush Inspection 13,669.80 Ocoan?ech Engineering CP-CIV Dr. Engineering 2,998.50 Engineering CP-8. Spruce Engineering 4,822.00 Engineering CP-Juliussas Engineering 6,610.50 Landmark Commercial Const. Pay got. No.l CP-Library Addn. Construction 34,897.50 Nike Taurtainan Inspection CP-Airport Apron . Inspection 23,029.00 Timothy Rogers Travel Expenses to Portland, ORI Attorney Transportation 1,078.67 Prod Mayor Lease FOR RATIFICATIONt Kenai Peninsula Borough 2nd Quarter Bales Tax Various Sales Tax 9,957.98 Glacier State Telephone July Phone Service Various Communications 4,097.68 Wossn's Resource Center June Child Care Woman's Resource Accounts Receivable 10,506.79 Walters 6 Olson Misc. City Insurance Non -Departmental Insurance 73,111.50 Alaskan Federal C.U. July Credit Union WE Various Liability 14,089.00 �r - _ f PAYNRNTR OVRR 81,0n0.00 8/7/85 PA02 2 VENDOR i � DESCRIPTION PEPAMENT ACCOUNT AMOUNT POO I Marathon 011 Juno Natural One Central Treasury In Trust 5,397.30 National Bank of Alaska July Federal W/H Various Liability 53,918.05 PERS July Rotirement W/H Various Liability 39,613.18 Union Oil Co. of Calif. Juno Natural Oaa Central Treasury In Trust 5,368.57 Alaska Dept. of Labor 2nd Quarter F.SC Various ESC 3,745.62 ICMA Retirement Corp. July Employoo Cont. Various Liability 6,387.00 July Employer Cont. Various Supplemental Retirement 3,962.43 National Bank of Alaska TCD 7/22/65 Central Treasury Central Treasury 700,000.00 6.85% Int. TCD 7/26/85 Central Treasury Central Treasury 750,000.00 7.0 2 Int. j TCD 8/2/85 Central Treasury Central Treasury 800,000.00 7.1 2 Int. Blue Cross July Medical Ins. Various Health Insurance 16,678.07 I ewi REQUISITIONS OVER $1,000.00 WHICH NBED COUNCIL APPROVAL 8/7/85 VENDOR DESCRIPTION DEPARTMENT ACCOUNT AMOUNT ASrTek VHF Radio for Now Pickup Airport Admin. Machinery 1,717.00 Echo Lake Lockers Neat Products for August COA-Cong. Meals Operating supplies 1,200.00 Neat Products for August COA-Home Delivery Operating Supplies 300.00 Greenscapos Plants i Naint. for Terminal Terminal Rentals 3,600.00 Fy 85-86 Hughey i Phillips, Inc. Taxi Guide Signs CP-Airport Apron Ext. Construction 2,432.00 Peninsula Pence Co. Relocate 6 Repair Cemetery Beautification Repair 3 Maintenance 6,122.50 Fence Shearer Construction Furnish 6 Install Metal Doors PR -Animal Control Buildings 2,818.50 Warfle Real Estate Appraisal Appraisals of Lot 2B, Baron Pk.; Airport Land Professional Services 1,800.00 Lots SA, 6A, 6B CIIAP t., i i > S v , .i -i il r� Suggested by: City Attorney CITY OF KENAI ORDINANCE NO. 1076-85 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AMENDING KENAI MUNICIPAL CODE CHAPTER 20.05, ENTITLED TAXICABS. WHEREAS, Kenai Municipal Code Chapter 20.05, entitled Taxicabs does not provide for the disposition of property abandoned or lost in taxicabs; and, WHEREAS, it is in the interest of the citizens of the City of Kenai to provide for uniform disposition of property lost or abandoned in taxicabs. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, that Kenai Municipal Code 20.05.100 entitled Miscellaneous, is hereby amended as follows: 20.05.100 Miscellaneous: (a) All drivers regulated by this chapter shall be clean and courteous at all times. (b) No driver of any licensed taxicab shall carry any other than the passenger first employing a taxicab without the consent of such passenger, except for bona fide emergencies. (c) The driver shall take his passenger to his destination by the most direct available route from the place where the passenger enters the cab. d) Propertr of passengers left in taxicabs shall be retained by the taxi company for a minimum of sixty 60 days. e propert may a sold at an time after sixty60 days b f at printing n a notice of sale in a news a er of local circulation and postinq the notice in two cone cuous public locations not less than two weeks prior to the sale. The sale J may be public or private. lr 1- I 1. A 1 I 1 t .. --- t r� 71 PASSED BY THE COUNCIL OF THE CITY OF KENAI ALASKA, this 21st day of August, 1985. TOM GOER,MAYOR ATTEST: 3anet Whelan, City Clerk First Readings August 7# 1985 Second Reading: August 21, 1985 Effective Dates September 219 1985 Approved by Finance: N G,-4 Suggested by: Building Inspector CITY OF KENAI ORDINANCE NO. 1077-85 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AMENDING KMC 14.25.050(b) ENTITLED LANDSCAPING REVIEW BOARD. WHEREAS, KMC 14.25.050(b) contains language which could be construed to require issuance of a building permit in conflict with the requirements of Kenai Municipal Code Titles 4 and S. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, that KMC 14.25.050(b) entitled Landscaping Review Board is hereby amended as follows: 14.25.050 Landscapinc Review Boards (b) Meetings and Proceedings: The Board shall most to review and take action on a landscaping plan within fourteen (14) days of satisfactory submittal to the Building Official. The Building Official shall issue a building permit upon approval of the associated landscaping plan by the Board or the expiration of 14 days without official Board actionproviding all of the re uirements for the issuance of a building erm t have been met. Any appeal of the action of the Board shall be submitted In —writing to the Kenai City Council. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 21st day of August, 1985. ATTES1s Janet Whelan, City Clerk u OM WAGONER, MAYOR First Readings August 7, 1985 Second Readings August 21, 1985 Effective Dates September 21, 1985 J J i'. I ^y. 1 Suggested by: Building Inspector CITY OF KENAI ORDINANCE NO. 1078-85 " AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, , REPEALING KMC 4.35 ENTITLED TRAILER PLACEMENT. WHEREAS, the City of Kenai has established KMC 14.20.240 regulating the use and placement of mobile homes within the City ------ i of Kenai; and WHEREAS, KMC 4.35 pertaining to trailer placement conflicts with - Section 14.20.240 of the Kenai Municipal Code and no longer has j any application. , �I NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, that KMC 4.35 entitled Trailer Placement is hereby repealed. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 21st Y day of August, 1985. i OM WAGONER,' 14AYOR I ri ATTESTs Janet Whelan, City Clerk First Readings August 7, 1985 { Second Readings August 21, 1985 Effective Dates September 21, 1985 a "• I r i I - - _..f" .'!!:,:_�:...,; sii.N.. : a: new.,:'. �., ..•..r.. ..'y . ..-�-- �.ir.. _i.. 6Pjj6rrP`` v I Suggested by: Council CITY OF KENAI ORDINANCE NO. 1079-85 ; AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, INCREASING ESTIMATED REVENUES AND APROPRIATIONS IN THE 1985-86 GENERAL FUND BUDGET BY $30,000 FOR REPLACEMENT OF STREET LIGHTS. WHEREAS, certain City street lights are in need of repair and should be replaced by a modern style of light; and, y WHEREAS, monies are available in the General Fund Unappropriated 1 Fund Balance for such purposes. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF ; KENAI, ALASKA, that the following increase in estimated revenues ; and appropriations be made: � 1 General Fund Increase Estimated Revenues: :1 Appropriations fund balance $30,000 of Increase Appropriations: •� Street Lights - Repair & Maintenance $30,000 r , � I PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 21st day of August, 1985. TOM WAGONER, MAYOR � ATTEST: £'� Whelan, City Clerk IJanet First Readings August 7, 1985 ' Second Reading: August 21, 1985 EffectiveDate: August 21, 1985 -- Approved by Finance: 8/1/85 1 J t 1 J I 1 rl 7 Cr - 7 Suggested by: Councilman Wise CITY OF KENAI ORDINANCE NO. 1080-85 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, INCREASING ESTIMATED REVENUES AND APPROPRIATIONS IN THE 1985-86 - ; GENERAL FUND AND WATER AND SEWER FUND BUDGETS BY A TOTAL OF $220,000 FOR ROAD AND FIRE HYDRANT REPAIRS. WHEREAS, asphalt road repairs are needed in certain areas of town, including Mommsen, Old Town, Woodland, Wildwood Drive, as well as others; and, WHEREAS, Council desires to appropriate $200#000 toward the repairs of as many of these roads as can be accomplished at this fun ing level; and, ' WHEREAS, the fire hydrant at the corner of Willow and Frontage Road needs repairing at an estimated cost of $20,000. - NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, that the following increase in estimated revenues and appropriations be made: General Fund Increase Estimated Revenues: Appropriations of Fund Balance $200,000 Increase Appropriations: Streets - Repair and Maintenance $200,000 Water and Sewer Fund Increase EstTmated Revenues: Appropriations of Fund Balance $ 20,000 Increase Appropriations: ,A- Water - Repair and Maintenance $ 200000 1 PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this seventh day of August, 1985. TOM WAGONER, MAYOR e. ATTESTS Janet Whelan, City Clerk First Readings August 7, 1985 Second Readings August 7, 1985 Effective Dates August 7, 1985 Approved by Finances 8/1/85 C'J'�' eP"p, V—'114 I it e) 3 Suggested by: Planning & Zoning CITY OF KENAI ORDINANCE NO. 1081-85 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AMENDING THE OFFICIAL KENAI ZONING MAP BY RE -ZONING LOT 6, BLOCK 15, KENAI ORIGINAL TOWNSITE TO CENTRAL COMMERCIAL (CC) DISTRICT. WHEREAS, KMC 14.20.270 establishes a procedure to amend the Official Zoning Map of the City of Kenai; and, WHEREAS, the re -zoning petition has been received from Will Jahrig to re -zone Lot 6, Block 15, Kenai Original Townsite from Urban Residential (RU) District to Central Commercial (CC) District; and, WHEREAS, said property has been historically utilized for commercial purposes; and, WHEREAS, the proposed zoning amendment does not conflict with the Land Use Options presented in the Kenai Original Townsite Redevelopment Study; and, WHEREAS, the Kenai Advisory Planning and Zoning Commission has conducted public hearings on June 12 and July 24, 1985; and, WHEREAS, the Commission recommended approval of the re -zoning petition in accordance with Resolution No. PZ85-38; and, WHEREAS, the Commission also recommended to amend the Kenai Land Use Map from High -Density Residential to General Commercial classification. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, that the Official Zoning Map of the City of Kenai shall be amended as followas Section 1s Subject property consisting of Lot 6, Block 15, Kenai Original Townsite, is hereby re -zoned Urban Residential (RU) to Central Commercial (CC) District. 1 - ORD 1081 J z� r 7 1 1, f so — I PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 21st day of August, 1985. M WAGONER, MAYOR i ATTEST: Janet Whelan, City Clerk First Readings August 7, 1985 Second Readings August 21, 1985 Effective Oates September 219 1985 8/2/85 2-OR01081 i j i Y i I I III � IJI CITY OF KENAI Vd Cap" aj 4"-*-' 210 FIDAL00 KENAI, ALASKA 90811 TEUPHONE 283. MO MEMORANDUM TOs Mayor Wagoner and City Council iROMs off Labahn, Land Manager SUBJECT Resolution PZ85-38s Rezone Lot 6, Block 15, Kenai Original Townsite to Central Commercial (CC) DATEs July 19, 1985 I At the regular meeting of the Kenai Advisory Planning & Zoning Commission reviewed and approved the requested rezoning, however, it should be noted i that the applicant is no longer the owner of the property, it has been purchased by Mr. 6 Mrs. Thomas Tomrdle. Details of the discussion and motion are available in your packet item H-6, page 3, 4-c. r' 1 z, I I s I. its ♦ a q ` . i • y , 1 +; NG•JJ.—..- - i i � d -• J�p• its, Jli _ __ - _ _ .. - - _-.._. _ _ _ �. _ .-�__.__.-.�7INM JO•I JJp 70 � S �? iris '=��• I -? 13 • R -b. -�Ii Dai �►� N A`-�a+Ais ITr om—•----•--__• °yam, - 4 - } I 1 - f } �; 7• 1, a w If �u b/IIIJ'b - j W : 0 r � ►tip c d o� — PENINSULA r ilN•u•n•. -to, tort a Al i7WaNn ; s..aswnL 19 i oS4 ...........Mfft d/dN/1 i �d : • s rx�K 111 , „ ,, ' • ' , U S. 41Nsf) ��/���py1 fir•.; . wr �— -----�fp —�i sf s ; r n A 9 S160cu is f4^ IL I oo m ' t 1 i I J 1. PETITIONER: AND 2. ADDRESSs PHONEs 3. WRITTEN . SIGNATURES: `7 CITY OF KENAI REZONING APPLICATION _ DATE: lY �y 4. LEGAL DESCRIPTIONS S. PRESENT ZONESy 6. PROPOSED ZONES C C 1. INTENDED USE AND/OR REASON FOR REZONING: R S. REZONING CHECKLIST: a. map b. signatures co deposit/advertising fee ($200) d. application form or letter w i i CITY OF KENAI %0d edp%l c j 44zd�" 210 FIOALQO KENAI. ALASKA 90E11 TELEPHONE 263.783E July 30, 1985 MEMORANDUM TO: Kenai City Council �� FROM: Dana Gerstlauer, Administrative Assistants REs Approval of Lease to Hertz Corporation The Hertz Corporation currently has lease space at the Kenai Airport for a car rental agency. As per previous Council action, they are required to sign their lease in both a corporate and individual capacity. The Hertz Corporation has refused to sign in an individual capacity and has requested that the City Council review their annual report to the Securities and Exchange Commission and waive the requirement of an individual signature. Attached to this memorandum is a copy of the proposed lease agreement with all references to individual signatures deleted. Also attached is a copy of the annual report to the Securities and Exchange Commission (Form 10-K) for Hertz. /d Attachment 3 1 - r LEASE OF AIRPORT FACILITIES THIS AGREEMENT, entered into this day of , 1985, by and between the CITY OF KENAI, CTy Hall, 210 Fidalgo Street, Kenai, Alaska 99611, a home -ruled municipal corporation of Alaska, hereinafter called "City", l00000000000= and HERTZ CORPORATION, 4555 International Airport Road, Anchorage, Alaska 99502, hereinafter called "Lessee". That the City, in consideration of the payments of the rents and performance of all the covenants herein contained by the Lessee, does hereby demise and lease to the Losses the following described property In the Kenai Recording District, State of Alaskal to wits Counter space, first floor, terminal building, Kenai Municipal Airport, as currently occupied A. PURPOSES The purpose for which the Leese is issued !st Counter apace for rental of vehicles and sales of personal accident insurance, and for parking of rental cars B. TERMS The term of this Lease is for 3 years, commencing on the lot day of July, 1985, to the 30th day of June, 1988. C. RENTAL PAYMENTS The rental specified herein shall be payable as followas 1. Right of entry and occupancy is authorized as of the tat day of July, 1985. Rental for the period July 1, 1985 trough June 30, 1986 shall be computed at $1.65 per square foot per month for 100 square feet of terminal space, for an annual fee of $2,079.00, : includir-i tax. If the annual rent exceeds $2,400, then the Lessee say opt at the time of the execution hereof or at the beginning oP each new Lease year to pay rent in equal monthly installments, Uyable In advance on or before the first day of July and on or fore•the first of each month thereafter. it The amounts of rents or fees specified herein shall be subject to increase based on the per square foot rate set by City Council effective July 1 of each year. 3. In addition to the rents specified above, the Lessee agrees to pay to the appropriate parties all levies, ` assessments, and charges as hereinafter provideds i : (a) Sales tax now enforced or levied in the future computed upon rent payable in monthly installments whether rent is paid on a monthly or yearly basis. (b) Interest at the rate of eight percent (8S) per annum and ten percent (10%) penalties of ar.y amount of money owed under this Lease which is not paid on or before the date it becomes due. .y (c) Additional charges, if any as set forth ✓ �' 1W Room in Schedule A, attached. urrusasae+ -- 6 CITY OF KEN N I �+ • o ias _ _ ltsflir LCA-1 LESSOR: LESSEEt —, t S ' 1 t , j • V f' L N s � D. GENERAL COVENANTS: 1. USES: Except as provided herein, any regular use of lands or-- s ilitiea without the written consent of the City is prohibited. This prohibition shall not apply to use of areas designated by the City for specified public uses, such as passenger terminals, automobile parking areas, and streets. 2. USES NOT CONTEMPLATED PROHIBITED: Solicitation of donations or - a promotion or operation a any part or kind of business or commercial enterprise, other than as specifically set forth herein, upon, in or above airport lands, without the written consent of the City is prohibited. 3. ASSIGNMENT OR SUBLETTING: Lessee with City's prior written consent, w c w no a unreasonably denied, may assign, in whole or in part, its rights as Lessee hereunder. Any assignee of part or all of the leased premises shall assume the duties and obligations of tho Lessee as to such part or all of the leased promises. No such assignment, however, will discharge Lessee from its duties and obligations hereunder. 4. COSTS AND EXPENSES: Costs and expenses incident to this lease, including bu no limited to, recording costs shall be paid by Lessee. 5. TREATMENT OF DEMISE: The Lessee agrees to keep the premises clean and in goo or er at its own expense, allowing no damage, waste, nor destruction thereof, nor removing any material therefrom, without written permission of the City. At the expiration of the term fixed, or any sooner determination of the Lease, the Lessee will peaceably and quietly quit and surrender the premisesto the City. 6. PAYMENT OF RENTt Checks, bank drafts, or postal money orders shall be made payable to the City of Kenai and delivered to the City Administration Building, Kenai, Alaska, 7. CONSTRUCTION APPROVAL AND STANDARDS: Building construction shall be neat and presen a e an compatible with its uses and surroundings. The cost of any additional improvements to the terminal space shall be at the lessee's expense. 8. DEFAULT RIGHT OF ENTRY: Should default be made in the payment of any portion of the rent or fees when due, or in any of the covenants or conditions contained in the Lease or in any regulations now or hereinafter in force, then in such event the City shall by written notice give Lessee thirty (30) days to cure such default or defaults, after which if the default is not cured, the City may terminate the Lease, reenter and take possession of the premises, and remove all persons therefrom. 9. LEASE UTILIZATION: Leased space shall be utilized for purposes w n he scope of the application (made a part of this Lease and attached hereto) the terms of the Lease, and in conformity with the ordinances of the City and Borough, and in substantial conformity with the comprehensive plan. Utilization or development for other than the allowed uses shall constitute a violation of the Lease and subject the Lease to cancellation at any time. 10. CONDITION OF PREMISES, The premises demised herein are unimproved and are ease on an "as is, where is" basis. tw soap:: CRY An01/4t .oWSW ww. ^AW ww: 16 msYYo1 LCA-2 LESSOR: �3 LESSEES' i •iJ iF i I I I ' 11. OFFER TO LEASE ACCEPTANCE: The offer to lease is made subject o app 11 cat on awa An requlotions of Cityy, and may be withdrawn without notice at any time after thirty (30) days from submission thereof, unless within such thirty (30) days the Lessee executes and returns the lease to the City. 11. UNDERLYING TITLE: The interests transferred, or conveyed by this Lease are subject to any and all of the covenants, terms, or conditions contained in the instruments Conveying title or other interests to the City. 13. RIGHT OF INSPECTION: City shall have the right at all reasonable times to en er he premises, or any part thereof, for the purposes of inspection. 14. INDEMNIFICATION AND INSURANCES Lessee covenants to save the City arm esa from all actions, suites, liabilities, or damages resulting from or arising out of any acts of Comm iaaion or omission by the lessee, his agents, employees, customers, invitees, or arising from or out of the Lessee's occupation, or use of the premises demised, or privileges granted, and to pay all costa connected therewith. Lessee, at the expense of Lessee, shall keep in force, during the term of this agreement, insurance issued by responsible insurance companies authorized to do business in _ Alaska in forms, kinds and amounts as determined and directed by the City for the protection of City and/or Lessee. Insurance , requirement hereunder shall be subject to the sole determination of the City. Said insurance may include, but need not be limited to insurance coverages commonly known sag or similar in kind to, public liability, products liability, property damage, cargo, _. aircraft, fire, workmen's compensation, comprehensive, builders risk, and such other insurance coverage as deemed required in the =' sole determination of the City. All policies or endorsements x' thereto shall in all cases where possible name City as Additional Named Insured thereunder and shall contain a waiver of �- subrogation against the City. Upon approval by City of all insurance required, in the forms, kinds and amounts directed to be procured, Lessee ;hall i deliver all policy originals or duplicate originals and endorsements thereto to the City for incorporation within this agreement as attachment thereto. In any event, Lessee is not to commence to exercise any of the rights and privileges granted under this agreement until such time as all insurance directed and required to be furnished by Lessee is in full force and effect. Lessee expressly understands and agrees that any insurance protection furnished by Lessee hereunder shall in no way limit its responsibility to indemnify and save harmless Lessor under the provisions of this agreement. No policy of insurance shall be cancelled or amended with respect to the City without thirty (30) days written notice by registered or certified snail to City by the insurance company. Until otherwise directed in writing by the City ManagesLessee shall provide certificates of insurance within thirty 130) days of the date hereof as followss Comprehensive General Liability Combined Single Limit (Bodily Injury and Property Damage) f 1,000,000 Workmen's Compensation - Statutory limits LCA 3 LESSOR: LESSEE: r Automobile Liability Combined Sinqlo Limit (Bodily Injury and Property Domago) S 1,000,000 ))pp��ddtltl�� b0B0tIDb9�tA)Is6�oCx1DO oiAA1DOQR Notwithstanding anything to the contrary, if Lessee fails or neglects to secure required insurance or if said policy or policies are terminated, altered, or changed in any manner not acceptable to the City, then and in that event this lease may be cancelled and terminated, without penalty, on five (5) days written prior notice to Lessee, 15. COLLECTION ON UNPAID MONIESs Any or all rents, charges, fees, or other consideration MET are due and unpaid at the expiration of voluntary or involuntary termination or cancellation of this Lease, shall be a charge against the Lessee and Lessee's property, real or personal, and the City shall have such lien rights as are allowed by law, and enforcement by distraint may be made by the City or its authorized agent. 16. LEASE SUBORDINATE TO FINANCING REQUIREMENTS: Lessee agrees at City may modify Vile Lease o see revised requirements for Federal or State grants, or to conform to the requirements of any revenue bond covenant. However, the modification shall not act to reduce the rights or privileges granted the Lessee by this Lease, not act to cause the Lessee financial loss. 17. SURRENDER ON TERMINATION: Lessee shall, on the last day of the term or thre Lease or upon any earlier ter- mination of this Lease, surrender and deliver upon the premises into the possession and use of City without fraud or delay in good order, condition, and repair, except for reasonable wear and tear since the last necessary repair, replacement, restoration or renewal tree and clear of all lettings and occupancies unless expresa1y permitted by the City in writing, and free and clear of all liens and encumbrances other than those created by and for loans to City. Upon the end of the term of this Lease or any earlier termination thereof, title to the buildings, improvements and building equipment shall automatically vest in Cityy without requirement of any deed, conveyance, or bill of sale thereon. However, if City should require any such document in confirmation hereof; Lessee shall execute, acknowledge, and deliver the some and shall pay any charge, tax, and fee asserted or imposed by any and all governmental units in connection herewith. 10. RULESs Lessee shall observe, obey, and comply with all applicable rules, etc., of the State or federal Governments. 19. AIRCRAFT OPERATIONS PROTECTEDs (a) There is hereby reserved to the City, its successors and assigns, for the use and benefit of the public, a right of flight for the passage of aircraft in the airspace above the surface and all improvements approved by the City of the premises herein conveyed, together with the right to cause in said airspace such noise as may be inherent in the operation of aircraft, now or hereafter used for navigation of or flight in the sit, using said airspace for landing at, taking off from, or operating on the Kenai Airport. 20. RIGHT TO ENJOYMENT AND PEACEABLE POSSESSION: ur.Artoear City hereby agrees and covenants that the Lessee, upon paying pocoy aiw$= KENN sent and performing other covenants, terms, and conditions of 9".ALMA,,,,, this Lease, shall have the right to quietly and peacefully hold, MhW LCA-4 J LESSOR: LESSEES i I i I v i i To Rooms CRY OF KENN •O Moto ww. Ausu win >r IM 1 I 4 1 F,M. , I,,,:,:..., . use, occupy, and enjoy the said lensed promises, except th inconvenience enured by public works projects in or about leasehold promises shall not be construed an a denial of t right of quiet or peaceable possession. 21. LESSEE TO PAY TAXES: Lessee shall pay all lawful taxes and assessments which, during the term hereof become a lien upon or which may levied by the State, 8oroui City, or any other tax levying body, upon any taxable poss, right which Lessee may have in or to the property by resaoi Its use or occupancy or the terms of this lease, provided however, that nothing herein contained shall prevent Losses contesting any increase in such tax or assessment through procedures outlined in State statutes. 22. SPECIAL SERVICES: Lessee agrees to pay Cit reasonable charge for any apes al services or facilities ri by Lessee in writing, which services or facilities are not provided for herein. 23, NO PARTNERSHIP OR JOINT VENTURE CREATEOs It is expressly understood a the City shall no a construed or held to be a partner or joint venturer of Lessee in the conduct of business on the demised premises{ and it is expressly understood and agreed that the relationship between the parties hereto is, and shall at all times remain landlord and tenant. 24. DEFAULT BANKRUPTCY ETC.: If the Lessee shall make any assignmentfor a ens o creditors or shall be adjudged a bankrupt, or if a receiver is appointed for the Lessee or Lessee's assets, or any interest under this Lease and if the appointment of the receiver is not vacated within thirty (30) days, or if a voluntary petition is filed under Section 18(s) of the Bankruptcy Act by the Lessee, then and in any event, the City may, upon giving the Lessee thirty (30) days' notice, terminate this lease. 25. NONDISCRIMINATIONs The Lessee, for himself, his heirs, personal representatives, successors in interest, and assigns, as a pert of the consideration hereof, does hereby covenant and agree as a covenant running with the land, thats (a) No person on the grounds of race, color, or national origin shall be excluded from participation in, denied the benefits of, or be otherwise subjected to discrimination in the use of said facilities= (b) In the construction of any improvements on, over, or under ouch land and the furnishing of services thereon no person on the grounds of race, color, or national origin shall be excluded from participation, denied the benefits of, or otherwise be subjected to discrimination= (e) The Lessee shall use the premises in compliance with all other requirements imposed by or pursuant to Title 49, Code of Federal Regulations, Department of Transportation, Subtitle A. Office of the Secretary, Part 21, Nondiscrimination in Federally -assisted Programs of the Department of Transportation - Effectuation of Title VI of the Civil Rights Act of 1964, and as said Regulations may be amended; (d) In the event facilities are constructed, maintained, or otherwise operated on the said property described in this Lease, for a purpose involving the provision of similar services or benefits, the Lessee shall maintain nd operate such facilities and services In compliance with all other requirements imposed purausant to Title 49, Code of Federal Regulations,. Department of Transportation, Subtitle A, Office of the LCA-5 LESSORS LESSEES n J , l' S y Secretary, Part 21, Nondiar.riminatton in federal ly.nnsiated Progrmmn of the Department of ' Transportation - Fffeetuation of Title VI of thn Civil Rights Act of 1964, and as said Regulations may be ' amended. 26. PARTIAL INVALIDITY, If any term, provision, condition, or par of thie f.ease in declared by a court of competent jurisdiction to be invalid or unconstitutional, the remaining terms, provisions, conditions, or parts shall continue in full force and effect as though such declaration was not made. 27. MODIFICATIONS: No loans may be modified orally or in any manner other than by an agreement in writing, signed by all parties in interest or their successors in interest. Any such modification shall require Council approval. 28. WARRANTY: The City does not warrant that the property which is the subject of this Lease is suited for the use authorized herein, and no guarantee is given or implied that it shall be profitable or suitable to employ the property to such use. 29. COMPLIANCE WITH LAWS: Leoece shall comply with all applicable laws, ordinances, and regulations of public authorities now or hereafter in any manner affecting the leased premises or the sidewalks, alleys, streets, and ways adjacent thereto or any buildings, structures, fixtures and improvements or the use thereof, whether or not any such laws, ordinances, and t regulations which may be hereafter enacted involve a change of policy on the part of the governmental body enacting the same. Losses agrees to hold City financially Is rmisees (a) From the consequences of any violation of such laws, ordinances, and/or regulations; and (b) From all claims for damages on account of injuries, death, or property damage resulting from such violation. (e) Lessee further agrees it will not permit any unlawful occupation, business, or trade to be conducted on said premises or any use to be made thereof contrary to any low, ordinance, or regulation as aforesaid with respect thereto, including zoning ordinances, rules, and regulations. f 30. CARE OF PREMISES: Lessee, at its own cost and expense, shall keep the ease premises, all improvements which at any time during the term of this Lease may be situated I� thereon, and any and all appurtenances thereunto belonging, in 11 good condition and repair during the entire term of this Lease. 31. LESSEE'S OBLIGATION TO REMOVE LIENSs Lessee will not permit any lions Including, but not limitedo, mechanics', laborers', or materialmen's liens obtainable or available under j the then existing laws, to stand against the leased premises or improvements for any labor or material furnished to Lessee or claimed to have been furnished to Losses or to the Lessee's ! ft agents, contractors, or sublessees, in connection with work of any character performed or claimed to have been performed on said r`- premises or improvements by or at the direction or sufferance of Lessee, provided, however, Lessee shall have the right to I provide a bond so contemplated by Alaska law and contest the validity or amount of any such lien or claimed lien. On final determination of such lien or such claim for lien, Lease* will TW Rooms immediately pay any judgement rendered with all proper costs and C" Affe nr 1 charges and shall have such lien released or judgement satisfied ,.,d: aryOFsew at Lessee's own expense. MAf�nww� 1 rtM;.miss LCA-6 LESSORS LESSEE: QsA --` f . twI { 1 - i I i 1 I i i� a 1W swans plrAffoodw WV Or KENN realm .WM. MAW 9011 MnX 31. CONDEMNATION: In the event the lensed promises or any part therea ale o condemned and taken for a public or a quasi -public use, than upon payment of any award or compensation arising from such condemnation, there shall be ouch division of the proceeds, ouch abatement in rent payable during the term or any extension of the term horeof, and such other adjustments as the portion may agree upon as being just and equitable under all the circumatancee. If the City and Lessen are unable to agree within thirty (30) days after ouch an award has been paid into Court, upon what division, annual abatement in rent and other adjustments are just and equitable, the dispute shelf be determined by arbitration provided in Item 33 hereof. 33. SURRENDER: At the expiration of the term fixed or any sooner tern na on of the Lease, the Lessee will peaceably and quietly quit and surrender the promises to the City. 34. PROTECTION Of SUBTENANTS: To protect the position of any subtenant(s)-h—ereafter properly obtaining any interests in the lessehold estate granted Lessee hereunder, City agrees that in the event of the cancellation, termination, expiration, or surrender of this Lease (the ground lease), the City will accept the Subtenant, it successors and assigns, na its lessee for a period equal to the full unelapeed portion of the term of the sublease, including any extensions or renewals thereof, not exceeding the term of this Lease, upon the same covenants and conditions therein contained, to the extent that said covenants and conditions are not inconsistent with any of the terms and conditions of this Lease, provided such subtenent shall make full and complete attornment to the City for the balance of the term of such sublease so as to establish direct privity of estate and contract between the City and the subtenant with t e same force and effect as though such sublease was originally made directly between the City and such subtenant; and furher provided such aubtenent agrees to comply with all the provisions of the ground lease and all the terms of any mortgage, deed of trust, or security assignment to which such leasehold estate is subject, except the payment of rent under the ground lose* and the payment of any debt service under any such mortgage, deed of trust, or security assignment. 35. SUCCESSORS IN INTEREST: This Lease shall be binding upon and shall nure to the benefit of the respective successors and assigns of the parties hereto, subject to such Specific limitations on assignment as are provided for herein. 36. GOVERNING LANs This indenture of Lease shall be governed in all respects by the laws of the State of Alaska. 37. NOTICESt (a) Any notices required by this Lease shall be in writing and shall be deemed to be duly given only if delivered personally or mailed by certified or registered mail in a prepaid envelope addressed to the parties at the address set forth in the opening paragraph of this lease unless such address has been changed pursuant to sub -paragraph (b) hereafter, and in that case shall to the most recent address so changed. Any notice so sailed shall be deemed delivered on the date it is deposited in a U.S. general or branch post office. The City shall also mail a copy of any notice given to the Lessee by registered or certified mail, to any lessehold fender (mortgagee, beneficiary of a deed of trust, security assignee) who shall have given the City notice of such mortgage, deed of trust, or security assignment. e LCA-7 LESSORt LESSEEs 0 (b) Any ouch addroason may be changed by an appropriate notice in writing to all other parties --� affected provided such change of address is given to the other portion by the means outlined in paragraph (a) above of loaat fifteen (15) days prior to the giving of the particular notice in issue. 38. ENTRY AND RE-ENTRY: In the avant that the Lease should be terminated as harain a ore provided, or by sum my or proceedings or otherwise, or in the event that the demised lands or any part thereof should be abandoned by the Lessee during said term, the Lessor or its agents, servants, or representatives may, immediately or any time thereafter, re-enter, and resume possession of sold lands or such part thereof, and remove all persons and property therefrom, either by summary proceedings or by a suitable action or proceeding at law without being liable for any damages therefor. No re-entry by the Lessor sh&il be deemed an acceptance of a surrender of the Lease. 39. RETENTION OF RENTALS In the event that the Lease should be terminated b5-caune of any breach by the Lessee as heroin provided, the rental payment last made by the Lessee shall be retained by the Lessor so partial or total liquidated damages for said breach. 40. WRITTEN NAIVERs The receipt of rent by the Lessor with knowledge or any breach -of the Lease by the Lessee, or any default on the part of the Lessee in observance or performance of any of the conditions or covenants of the Lease, shall not be deemed to be a waiver of any provisions of the Lease. No failure on the part of the Lessor to enforce any eonvenent or provision therein contained, nor any waiver of any right thereunder by the Lessor, unless in writing, shall discharge or invalidate such covenants or provisions, or affect the right of the Lessor to enforce the some in the event of any subsequent breach or default. The receipt, by the Lessor, of any rent or any other sue of money after the termination, in any manner, of the term therein desired, or after the giving by the Lessor of any notice thereunder to effect such termination, shall not reinstate, continue, or extend the resultant term therein damisod, or destroy, or in any manner impair the efficacy of any such notice of termination as may have been given thereunder by the Lessor to the Lessee prior to the receipt of any such sum of money or other consideration, unless so agreed to in writing and signed by the Lessor. 41. EXPIRATION OF LEASES Unless the Lease is renewed or sooner erm na a as provided herein the Lessee shall peaeeabl and quietly leave, surrender, and yield up unto the Lessor all of the leased land on or before the last day of the term of the lease. 41. FIRE PROTECTIONS The Lessee will take all reasonable precautions to prevent, and take all necessary action to supress destructive or uncontrolled fires and comply with all laws, regulations, and rules promulgated and enforced by the City for fire protection within the area wherein the leased premises are located. 43. MUTUAL CANCELLATIONS Losses in good standing may be cancelled n woe or n part at any time upon mutual written agreement by Lessee and the City Council. 44. UNLAWFUL USE PROHIBITED: Lessee shall not allow the lossehold promises to bad for an unlawful purpose. TiY ROOtAs 45. APPROVAL OF OTHER AUTHORITIES: The issuance by "ttO` the City of losses does not re eve the Lerase of responsibility COY OF KENAI of obtaining licenses or permits as may be required by duly authorised Borough, State, or Federal agencies. «w+, NASA awn 9 9 sn»>r LCA-8 LESSOR: LESSEE s c�iti ' i. I f i I a IN WITNESS WHEREOF, the parties hereto have hereunto not their hands, the day and year stated in the individual acknowledgments below. 0 LESSOR: CITY OF KENAI Bys William J. Brighton City Manager LESSEES HERT ORPORATION By: vice Prss' desst, Conceaaion e STATE OF k-Alaw yoke ) CMofY or Nfrw ynk4. ) sa THIS IS TO CERTIFY that on the /tAt' day of �11ui�vC.. , 1985, r iOOd0000IXXlOFs0OO8@�� his represen a ve eapae y, a ng personally known to me or having produced satisfactory evidence of identification, appeared before se and acknowledged the voluntary and authorized execution of the foregoing instrument on behalf of said carperatio Notary Public for A ask My Commission Expiresi,Le—w 30 l9$1 BRENDA A RANTE STATE OF ALASKA ) #MARV PUSUC. Soto a XwYwa ) as c nf"Is Fft W Now Yak Caqb�yy THIRD JUDICIAL DISTRICT ) caAmucanErp edAwcsSol l4" THIS IS TO CERTIFY that on this day of , 1985, WILLIAM J. BRIGHTON, City Managed the City o nor, Alaska, being personally known to me or having produced satisfactory evidence of identification, appeared before me and acknowledged the voluntary and authorized execution of the foregoing instrument on behalf of said City. - I Notary Public for Alaska My Commission Expiress #� Approved as to lease form by City Attorney `,li as -1 Approved by Finance Director n a s �;t I Approved by City ManagerLAN } f Tar RootR� -- <r env AnpM/y Cnv OF KENN -- -- nAwr.AtAfRA�Nn ' LCA-9 LESSOR: LESSEE: - f jI � ter 1 f 1 f o a 7 9 � � f i. e J r !, I 9 +ir (/fr_ I— M1. s i I i S ;j THA ROOM - MY AT:ew4Y - ..,�s ccv OF UNAJ YoIaro - ■ow. Al-019Mn i 1 it A. It . SCHEDULE A Lease dated the day of , 1985, between the CITY OF KENAI, a home -rule municipTorporation D'r7laska, hereinafter called "CITY" and HERTZ CORPORATION, LESSEE. 1. In addition to the rents specified on the per square foot basis LESSEE agrees to pay to the CITY an additional charge of ten percent (10%1 of LESSEE'S gross receipts on a monthly basis for the privilege of conducting businesses authorized herein. 2. Each vehicle for hire transaction shall be by a separate agreement and any extension of use of the period of time originally contracted for shall be considered a separate transaction. The Contractor shall furnish to the Airport Manager, for auditing purposes, the block of contract nmbere that will be used for agreements covering business originating at the Kenai Municipal Airport, and shall further advise the Airport Manager when additional contract numbers are assigned for the Airport operations. 3. Gross receipts of the vehicle for hire business shall include, but are not limited to, the total amount of the time and mileage charges and sales of insurance on vehicle for hire transactions, but shall exclude reimbursement for vehicular damage and fuel. 4. All payments shall be made monthly within ten (10) days after the end of each month; and shall be accompanied by a separate certified statement showing gross receipts from each of the businesses herein authorized for the month for which payments are made. If any such certified statements are found to be incorrect statements of gross receipts for the month involved, any additional amount determined to be due the CITY shall be immediately paid to the CITY by the Contractor and any amount of overpayment by the Contractor shall be credited against the next monthly payment due the CITY under this agreement. 6. The purposes for this lease are as followas (a) The right to conduct a business on and from the Airport for vehicle* for hire and sale of personal accident insurance. (b) The right to conduct the business of making arrangements for hunting and fishing trips, for air taxi services, for charter flights, for rent -a -plane services, for motel and hotel reservations, and for long distance telephone and telegraph services. (e) To occupy counter space in an area and in a size designated by the Airport Manager. Such counter to be constructed by the Contractor with size and design to be approved by the Airport Manager. Such space shall not be used for any other purpose except pursuant to a separate agreement for authorization from the CITY. (d) The right to use parking space for ten (10) vehicles at spaces in parking areas as designated by the Airport Manager. (a) If LESSEE requests additional parking spaces and if the Airport Manager is able to provide additional spaces, such spaces will be billed at $20.00 per space per month. 1 LESSOR: LESSEE: i I I I i I I I 1 I • J i 1= O t 1 SECURITIES AND EXCHANGE COMMISSION Washington, D. C. 20549 r r FORM 10-K =JAL WMT PURSUANT 7D SECTION 13 OF, 15 (d) OF THE SECURITim EX( mm ACT OF 1934 For the fiscal year ended December 31, 1984 Commission file number 1-7541 THE HERTZ CORPORATION kAXact name 01 registrant as spec r Delaware 13-1938568 (state or other jurisdictiono ... ' . oyer incorporation or organization) Identification dio.) 660 Madison Avenue New York New York 10021 ress of prIncipal executive o es T I i 212 960-2121 g trant s telephone number, including areaZRi) Securities registered pursuant to Section 12(b) of the Act: !• Name of each exchange Title of each class on which registered 8-7/8% Sinking Fund Debentures New York Stock mange Due April 1, 20M Securities registered pursuant to Sectionl2(g) of the Act: Nacre indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of t1w Securities Ewlmnge Act of 1934 during t1w preceding 12 months (or for such snorter period that the registrant was required to file such reports) , and (2) has been subject to suc43 filing requirements for the past 90 days. Yes X No . i State the aggregate market value of the voting stock held by non -affiliates of tine registrant: Now (all of the voting stock of the registrant is owned by RCA Corporation) . Indicate the number of shares outstanding of each of t1w registrant's classes of common stock as of December 31, 1984: Commm Stock, $1 par value - 1,000 shares. Documents Inc_orated By Reference Reference List hereunder the following documents if incorporated by reference and the Part of the Forail0-K (e.g., Part I, Pert FI, etc.) into which the document is incorporated: {1) Any annual report to security holders; (2) Any proxy or information statement; and 3 Any prospectus filed pursuant to Rule 424(b) or (c) under the Securities Act of 1933: None i J PART I ITER 1. MINESS. The Hertz Corporation and its subsidiaries ("Hertz"), independent licensees and affiliates are engaged principally in the business of renting and leasing automobiles and trucks, without drivers, to customers in the United States and in many foreign countries. Collectively they operate what the registrant believes is the largest rent a car business in the world, and one of the largest truck leasing and rental businesses in the United States. Other activities of Hertz Include the sale of its used vehicles; the rental, lease and sale of construction and materials handling equipment; and the operation of an airport terminal and hotel. Car rental operations are conducted at most major airports and downtown locations in major cities in the United States, and in more than 120 other countries. Car rentals are made on a daily, weekly or monthly basis, the rental charge being computed on an unlimited mileage rate or, in some cases, on a time rate plus a mileage charge. Truck leasing operations, conducted by Hertz Penske Truck Leasing, Inc. (see Note 7 to Notes to Consolidated Financial Statements), principally involve the full service maintenance leasing of various sizes and types of tractors, trailers, trucks and vans for various periods, typically three to five years, to customers engaged in numerous lines of business throughout the United States. In its car leasing operations, Hertz leases cars utilizing closed -end leases, where the disposition of vehicles upon termination of the lease is for Hertz' account. Car leasing operations are principally conducted in the United States and are also conducted in Canada and several European countries. Through its subsidiary, Hertz Equipment Rental Corporation, the registrant rents, leases, and sells a wide range of construction equipment to construction, industrial and govertu metal users. Hertz has no investment interest in any of its independent licensees, who conduct vehicle renting and leasing operations in accordance with standards and procedures established by Hertz and pay fees for the right to use the "Hertz" name and for other services. Hertz' domestic fleet consists primarily of makes and models of the major vehicle manufacturers in the United States. In its foreign operations, Hertz principally utilizes vehicles manufactured abroad. Hertz' operations are subject to seasonal factors, with the greatest activity occurring in the second and third calendar quarters. Throughout the world, Hertz is subject to numerous types of governmental controls, including those relating to price regulations, currency controls, labor mutters, charge card operations, environmental protection, used vehicle sales and franchising. -1- m ITEM 1. BUSINESS (continued). Hertz has substantial competitors with large resources in rent a car, car leasing and truck leasing and rental activities who compete with Hertz in all principal aspects of these activities, including price and service. Hertz is also {aced with substantial competition from smaller operators. At substantially all of its airport locations, it is faced with competition from competitors on and off the airport. there has been a trend in recent years toward more of�etitors ha rental locations within airport terminals. Competition in all iertz' areas of business is now, and is expected to continue to be, active and Intense. Hertz' ojerations, as well as those of its competitors, could be affected by any limitation in the fuel supply or by any imposition of mandatory allocation or rationing replations. In the event of a severe disruption of fuel supplies, the op of all vehicle renting and leasing companies could be adversely The registrant was incorporated in Delaware in 1967 and is a wholly -owned subsidiary of RCA Corporation (WA'7. It is a successor to corporations which �- were engaged in the automobile and truck leasing and rental business since 1924. rM 2. ntmmtT n. Hertz$ operations are carried on at rental and sales offices and service facilities located at airports and in downtown and suburban areas. Most of such premises are leased. Substa arn gtially all airport locations are leased from governmental authorities charged with the operation of such airports under arrangements generally providing for payment of a percentage of revenues with a guaranteed mural minimum. -2- J i t i ITEM 3. LM& PROCEEDINGS. the registrant and its subsidiaries are defendants in various legal proccedings arising in the normal course of their business. In the opinion of the General Counsel of the registrant, it is not reasonably probable that the outcome in any of such pending legal proceedings would, if decided unfavorably to Hertz, be material. TM 4. SUBMLSSICN OF MATHS 70 A VOTE OF SWEMITY HOIaERS. Omitted. PAR_ T ZI ITEM S. MARiOrT PM RDGISPRW'S OCt M FAITITY AND PM AW S'IOCIOiWM MATTERS. There is no market for the registrant's common stock. The registrant is a wholly -owned subsidiary of RCA. iZF!•f b. SELEL'lED YmANCIAL DATA. Omitted. -3- J �r� rP iY�ipJ Lwi. �..•1.�. �. Y7 r1.Ga� ITEM! 7. MANAGEh4='S DISCUSSION AMID ANALYSIS OF FLNANCIAL CONDITION AND RESULTS OF Omitted. In lieu of the information required by Items 6 and 7, there is included the following management's narrative analysis of the Consolidated Statement of Income. 1984 vs. 1983 Revenues Revenues from continuing businesses in 1984 increased to a record $1,440 million from $1,344 million in 1983, primarily due to higher revenues in car rental and construction equipment rental and sales operations. Revenues in 1983 from certain vehicle and equipment leasing operations sold in 1983 were $28 million (see Note 6 to Notes to Consolidated Financial Statements). Zymes Total expenses increased $86 million to $1,390 million in 1984 from $1,304 million in 1983. Direct operating expense increased principally due to the higher volume of business. Depreciation of revenue earning equipment increased primarily due to an increase in the size of the car rental fleet, higher prices for automobiles, lower net proceeds received on disposal of revenue earning equipment in excess of book value and the change in account for investment tax credits (see Note 1 to Notes to Consolidated Financial Statements) partially offset by a reduction in the size of the car leasing fleet. So Ing, general and administrative expense was higher in 1983 as coaQared to 1984, pprimarily due to the high cost of promotional programs in the car rental operations in 1983- 21e decrease in interest expense in 1984 was primarily due to lower debt levels, partially offset by higher effective interest rates. Income Before Income Taxes Income before income taxes was $50.1 million in 1984 as compared to $67.6 million in 1983. 2w decrease resulted from the revenue and expense factors noted above. If the change in accounting policy for investment tax credits had not been made, income before income taxes for 1984 would have been $68.0 million. Provision for Taxes on Income the provision for taxes on income in 1984 was $26 million lower than 1983, primarily due to the change in accounting for investment tax credits. For further information, see Note 8 to Notes to Consolidated Financial Statements. -4- r r ITEM S. FINANCIAL STATPIOM AND SUPPLFMPWARV DATA . The Consolidated Balance Sheet of the registrant at December 31, 1984 And 1983, and the related statements of Consolidated Income and Reinvested Earnings and Consolidated Chan es in Financial Pbsition for each of the three years in the period ended December 31, 1984, and other financial statement schedules are set forth under Item 14 hereof. Selected quarterly data for each quarter of the years 1984 and 1983 is set forth on page 26. i ITEM 9. MSAGREEKWS ON ACCOJMPING AND FMCIAL DISCIDSURE. None. PART III rM4 10. DIREMMS AMID EGMTlZVE OFFICERS OF ME REfGMt W. Omitted. ITEM 11. EMCUIIVE CCieEIQSATICN. OALtted. { ` r 12. SECURITY Oft. V OF M CERTAIN MMCIAL OWNM AMID MOUMERf. Omitted. �f Im 13. COMM REZATIQOIPS_ AMID REZATED TRn Aeaon. II •�I r. i Omitted. -5- 1 � I i � I I I 1 1 i PART IV ITEM 14. EKUBTTS, FINANCIAL STATE W SLMX=, AND REPCWS ON I+tM-1 8-K. (a) 1. Financial Statements: me Report of Independent Public Accountants 9 Consolidated Balance Sheet at December 31, 1984 and 1983 10-11 Consolidated Statement of Income and Reinvested Earnings for the years ended DWAwber 31, 1984, 1983 and 1982 12 Consolidated Statement of Changes in Financial Pbsition for the years ended December 31, 1984, 1983 and 1982 13 Notes to Consolidated Financial Statements 14-28 2. Financial Statement Scbedules: Schedule V - Revenue earning equendecl t, property and equipment for the , 1984, 1983 and 1982 years December 31 29-30 Schedule VI - Accumulated depreciation of revenue earning equipment, Property and equipment for years ended December 31, 1984, 1983 and 1t $ 31-32 Schedule VIII - Valuation and qualifying accounts yearsended ��er 31, 1984, for the1983 and 33 3. Uhlbits: (3) Articles of Incorporation and By -Laws. W The Hertz Corporation's Articles of Incorporation -- incorporated herein by reference to Exhibit (3) (1) to the registrant's report on Form 10-K for the year ended December 31, 1980 (File No. 1-7541) . (ii) The Hertz Corporation's By -Laws -- incorporated herein by reference to Exhibit (3) (U) to the registrant's report on Form 10-K for the year ended December 31, 1983 (File No. 1-7541). -6- _ � J r ITEM 14. EOUBITS, FIIVAN -L& STATII En SCI=LgM. , AND REpatTS ON FC7ItM 8.K -con_ t_=• - (4) instruomts defining the rights of holders of long-term debt. (ii) !evolving Credit Agreement dated as of August 1, 1984, among the registrant, the several banks parties thereto, and Manufacturers Hanover Trust company, as agent -- incorporated herein by reference to Eftbit (2to the registrant's report on Form 10-Q for the quarter ended September 30, 1984 (File No. 1-7541) . (iii) At December 31, 1984, hertz had various obligations which could be considered as long-term debt, none of which e=eeded 1010 of the total assets of Hertz on a consolidated basis. hertz agrees to h=ish to the Commission upon request a copy of any such instruamt defining the rights of the holders of such long-term debt. (24) Consents of experts and counsel. Consent to the incorporation by reference of report of indepeandent public accountants in previmlfiled registration statements under the Securities Act of 193yy 3. (b) Reports on Form 8-R the registrant did not file any reports on Form 8-K during the quarter ended December 31, 1984. Schedules and exhibits not included above have been amitted because the Information required has been included in the financial statements or notes thereto or is not applicable or not required. -7- I �• r n, ' 0 -- SIQUTURFS Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 19340 the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. TIM 10M CORPORATION OWSistrant) By: �I William Sider Senior Vice President, Finance February 28, 1985 Pursuant to the requirements of the Securities E=hange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in t1w capacities and an tho dates indicated: s I Frank A. Olson C A* Olson Chairman of the Board and Director F iyipal Executive1985 Officer) /s/ William Sider Senior Vice President, Finance and Director Ffebrua incy 28,E financial Officer) /s/ Leo A. Massad. Jr. Leo A. Hassaa, Jr. Staff Vice President and Assistant Controller CPrincipal Officer) /s/ Edward L. Scanlon Uwara L. Scanlon Director February 28, 1985 /s / Robert R. Frederick art X. ftederlgk Feector bruary 28, 1985 LsCraig/ Craig R. Koch it. KocS Executive Vice President and Director February 280 1985 s �Yedy_ M. Dellis Fredy M. Dellis Executive Vice President and Director February 280 1985 /s / Richard W. Miller rachard Director W. February 28, 1985 r . J Touche Ross & Co. February 14, 1985 To the Board of Directors Zhe Hertz Corporation Wo have exw1ned the consolidated balance sheet of the Hertz Corporation (a 0wIly-owned subsidiary of RCA Corporation) and its subsidiaries as of Docembor 31, 1984 and 1983, and the related consolidated statements of income end reinvested earnings and changes in financial position for each of the three years in the period ended December 31, 1984, and the financial statement schedules listed under Item 14(a)2. Our examinations were made in accordance with generally accepted auditing standards and, accordingly, included such tests of the accounting records and such other Auditing procedures as we considered necessary in ft circumstances. In our 0 Inion, the financial statements referred to above present fairly the financial position of lie Hertz Corporation and its subsidiaries as of Decembor 31, 1984 and 1983, and the results of their operations and changes in their financial position for each of the three years in the period ended December 31, 1984, in conformity with generally accepted accounting, principles consistently applied during the period, except for the change, with which we concur, in the method of accounting for investment tax credits as described in Note 1 to the financial statements, and the financial statement schedules listed under Item 14(a)2 present fairly the information set forth therein. -r&U4Aq„ AV44 V- 4 Certified Rblic Accountants -9- 1633 BROADWAY- NEW YORK,NEW YORK 10019-TELEPHONE:(212)489.1800- TELEX-238417 TRCO UR THE HERTZ CMPCRA71CN AMID SUBSIDLARIES CCMOL IDATED BALANCE SH= ASSETS CASH AND EQUIVALENTS RECELVAMM, less allowance for doubtful accounts of $3.8 million (1983 - $4.1 million) (Schedule VIII) DES, at lower of cost or market PREPAID EXPENSES AND MM ASSETS (Mote 6) REVENUE EARNING EQUIRYWT, at cost (Note 5) (Schedules V & VI): Vehicles Less accumulated depreciation Other equipment Less acc=dated depreciation Total revenue earning equipment PROPERTY AND EQITnik=, at cost (Schedules V & VI) : Land, buildings and leasehold inprovements 3 Service equipment Less accumulated depreciation Total property and equipment INiIESrWU IN MM PENSIX TRUCK LEASn G, INC. (Note 7) FRAWHESES, CONCESSIONS, G ML4Cr COSTS AND tFAMMS, net of amortization COST IN EXCESS OF NET ASSETS OF ACQUIRED SMSIMARIES, net of amortization December 31 1984 1983 In usands o o ars) $ 63,385 $ 12,357 1769004 166,570 80911 89363 629285 75,431 19534,889 1,522,648 (271,795) (255,831) 165,527 1539096 5 219 (52,757 1,373,402 1,367,156 183,507 169,415 149 770 137 859 33.3 27 1�18�'64 203,414 188,636 119,130 133,155 12,051 12,581 2,186 2,870 $2.0� $1,967,119 ! The accompanying notes are an integral part of this statement. OF- i r THE HM7Z CQtP .P=CN AMID SUBSIDIARIES CMMLIDATED BALANCE SHEET LIALILITIES AIM SIZZIOWER% EWITY December 31 1984 1983 iousands of dollars ACOOMM PAYABLE $ 1469623 $ 174,768 ACCRUED SALARIES AND OIM MPOSATIM 20,2ll 17,547 MM ACMWED LIABnZ= 122,676 1309616 ACMUED TAXES 79253 14,010 DEBT (Note 3) 1,0291,224 1,010,174 RMLIC LIABILITY AND PRCPMW DAMAGE (Schedule VIII) 58,242 59,444 DF3•MED WO ON Ila7DrlE, principally related to depreciation (Note 8) 197,800 163,800 CQIIiZTt'OM AND (Note 9) r SHAREHOI��hit'S FQIILIY: Cocoon stock, $1 par value, authorized and issued 1,000 shares j Additional capital paid -in (no changes after 1981) Rdwasted earnings (Note 3) Translation adjustment (Note 2) '{ Total shareholder's equity 1 1 67, 700 67,700 401,155 3529128 (30,117) (23,069) 438,739 396,760 $2 0- - 2�0.768 $1.9�67.10 The accompanying notes are an integral part of this statement. -11- I I I I I TIE HM7Z CORPORATION AND SUBSIDIARIES CONSOLIDATED STAZEMEW OF nVCOME AMID REINVESTED EARNIIGS REVENUS: Car rental Car leasing Construction equipment rental and sales Other EXFENSES: r' Direct operating (Note 7) Depreciation of revenue earning equipment (Note 5) Selling, general and administrative - i Interesf Year Ended December 31 —'(7-thousaRn s o "dollars $lt205tOn $1,089,724 $ 997*772 133,565 192,523 2429710 81,833 63,961 60,358 19,976 25.810 32.979 1,440,445 1,372,018 1,333,819 7251,581 664,729 626,392 356,294 316,099 306,606 191,298 201,903 182,672 117,164 12�1,676 150,696 1,390,337 1,304,407 1,2i 66,366 IlM Er BEFME EWE TMES (1984 excludes investment tax credits - Note 1) 500108 679611 679453 PRO=ON EM TAXFB ON nwM (Note 8) 81 26,515 27,110 INCCME BEFORE CUMATM FF= OF CIWM IN AMEX 1M PRIIQCIPLE 50,027 419096 409343 CUtU1A M FF = ON PRIOR YEARS OF CUMCE IN MOM OF ACCOUNrM FOR Mb1 M TAX CREDM (Notes 1 and 7) 24,000 - - w INCC E: 74, 027 410096 40,343 REI4MEM FAMUNM AT BM11MX, OF YitiR 352,128 350,032 3099689 CASH DMDEMS, PAID 70 RCA CORPORATION (25,000 (39,000) - REWEVED FAR=CS AT END OF YEAR (Note 3) $ 40� $ 3522,125' $ 03' The accompanying notes are an integral part of this statement. r-7,- ---- / j. • THE MRTZ \AMAr.4i ION AND SUBSIDitY Ir l COISOLTMTED STAMMT OF CEiaM IN MANCIAL POSITIM4 Year Ended December 31 1982 (Y-thous dollars SOURCE OF0 CASH: Yet Income $ 74,027 $ 41,096 $ 40,343 Expenses not requiring outlay of cash - Depreciation of revenue earning equipment 3560,294 3160099 306,606 Depreciation of property and equipment 27,735 26,710 24,609 Deferred taxes on income 34,000 (34,540) 15,040 Total from operations 4920056 349,365 386,598 Decrease in contracts receivable for equipment and vehicles leased, net - 172,342 16,609 Decrease (increase) in prepaid expenses and other assets 13,146 (43,002 (2,4G4) Increase (decrease) in debt, net 19,050 (285,411) (103,793) Decrease in investment in Hertz Penske Truck leasing , Inc. 14,025 99,924 17,115 Translation adjustment 21,953 24,629 37,093 Proceeds from was of tax attributes, net of gain from sale - - 6,802 Total 560,230 317,847 357,940 APPLICAT= OF OM: i vestment in revenue earning equipment - parchases 1,280, 081 1,205, 433 1, 042, 068 Less: Net book value of equipment sold (891.922 (905,185 723 113 Net increase 3682,159 300,248 318,955 Decrease increase in accounts payable 28,145 (50,122) 363 Decrease increase; in public liability and �I s urge 10202 (510) (8, 085) iope Adproperty property, Nip t and Intangibles, net 44,681 21,473 44,470 Decrease in accrued taxes 6,757 4,400 20,481 Decrease (increase) in accrued liabilities, excluding amounts relating to sale of tax attributes in 1982 50276 11,346 540) increase (decrease in inventories 548 (255) �2,793 Increase (decrease) in receivables 9,434 3,314 (17,502� Cash dividends paid to RCA Corporation 25,000 39,000 Total 509,202 328,594 347,349 Net increase (decrease) in cash _ and equivalents $...510.0.28 $ 11 04 $ 0 5 1 The accomparling notes are an integral part of this statement. - 13 - THE M= CCRPCMnCN AMID SUBSIDIARIES NOTES M COMSOUDAM FINANCIAI. STATUMUS , Note 1 - Summary of Accounting Policies Principles of Consolidation -- the consolidated financial statements include the accounts of 7he Hertz Corporation (a wholly -owned subsidiary of RCA Corporation) and _ its domestic and foreign subsidiaries with the exception that the registrant's partly - owned subsidiary, Hertz Penske Truck Leasing, Inc. ("Hertz Penske") has been deconsolidated and is being accounted for on the equity method (see'Note 7). Effective January 1, 1984, Hertz charged its accounting for investment tax credits from the deferral method to the flow -through method in order to achieve greater comparability with the accounting policies of most other companies. Under the flow -through method, investment tax credits are reflected in net income as a reduction to the provision for taxes on income in the year the qualified investment is placed in service. Under the deferral method, investment tax credits are amortized as a reduction to depreciation expense over the estimated lives of the qualified investment. As a result, 1984 pretax income and net income decreased $17.9 million and $.5 million, respectively. The cumulative effect of this change through December 31, 1983, increased net income in the first quarter of 1984 by $24 million. the pro forma effect of this change on net income would have been a decrease in 1983 of $.5 million and an increase in 1982 of $6.2 million. Foreign Currency Translation -- assets and liabilities of companies outside the United States, except those located in countries with highly inflationary economies, are translated into U.S. dollars at year-end exchange rates, and their income statements are translated at average rates. Gains and losses from this translation are accumulated in a separate component of Shareholder's Equity until the company is liquidated. Zhe accounts of countries with highly partially sold or nonmonetary historical inflationary economies are translated at rates, with translation gains or losses included in net income. No income taxes are provided on translation gains or losses since Hertz does not expect that they will be realized. Depreciable Assets -- the provisions for depreciation and amortization are computed on a straight-line basis over the estimated useful lives of the respective assets, as follows: Revenue Earning Equipment: vehicles 4 to 6 years Other equipment 2 to 11 years �r Buildings 20 to 50 years Leasehold improvements Term of lease Service vehicles and service equipment 3 to 12 years Franchises, concessions, contract costs and leaseholds 6 to 40 years Cost in excess of net assets of acquired subsidiaries 40 years l_ Hertz follows the practice of charging maintenance and repairs, including the cost of minor replacements, to maintenance expense accounts. Costs of major replacements of units of property are charged to property and equipment accounts and depreciated on the basis indicated above. Gains and losses on dispositions of property and _ equipment are included in incase as realized. Upon disposal of revenue earning equipment, depreciation expense is adjusted for the difference between the net proceeds from sale and the remaining book value. -14- �r. I THE HERTZ COP.PCEATIM AMID SUBSIDIARIES DATES TO CONSOLIDATED FINANCIAL STATDENTS (continued) Note _1_- Summary of Accounting Pblicies (continued j Public Liability and Property Damage -- provisions are made for public liability and property damage risks which have occurred for the domestic car rental operations and general public liability to a maximum of $1,000,000 per accident. Supplemental coverage is purchased for amounts beyond $1,000,000 per accident. Provision for incurred but not reported losses is charged to income currently. Federal and Foreign Taxes -- the registrant and its domestic subsidiaries are included in the consolidated federal income tax return of RCA Corporation, the registrant's parent. Pltrsuant to an arrangement with RCA, the registrant provides for current and deferred taxes as if it filed a separate consolidated tax return with its domestic subsidiaries except that if any items are subject to limitations j in the registrant's consolidated return calculations, such as foreign tax credits, Investment credits, capital losses and net operating losses, such limitations are determined on the basis of the entire RCA consolidated group. To the extent that items which would be subject to limitation at the registrant's consolidated return level are not limited in the RCA consolidated return, the registrant and its domestic subsidiaries receive credit for such items. U.S. income taxes have not been provided on $29 million in undistributed earnings of subsidiaries that have been or are intended to be permanently reinvested outside the United States or are expected to be remitted free of taxes. Pension Plans -- substantially all domestic employees after specified periods of service are eligible to'participate in the Retirement Flan of RCA Corporation (see Note 4). Payments are made to pension plans of others pursuant to various collective bargaining agreements. Under the RCA Retirement Plan, employees contribute a part of the cost of current -service benefits while Hertz contributes the remainder and all other costs under the level premium cost method. Note 2 - Foreign Ourrencv Foreign currency exchange gains and losses included in net income were $2.2 million gain in 1984, $.9 million gain in 1983 and $7.2 million loss in 1982. The cumulative translation charge through December 31, 1981 was $10.7 million. The net translation charge adjustment for the years ended December 31, 1984, 1983 and 1982 was $7.0 million, $6.2 million and $6.2 million, respectively. -15- I a 1 F ........... TM HM7Z OORPORATICN AND SUBSIDIARIES NOTES TO CONSOLIDATED FIlZANCIAL STATETTS (continued) Note 3 - Debt Debt of the registrant and its subsidiaries is as follows: December 31, 1984 1983 Notes payable (including commercial pa er 10 ooIiars) in millions: 1984, $43.8; 1983 $61.45, average interest rate: 1984' H.17.; 1983, 10.27 $ 45,828 $ 71,187 Promissory notes - 8 7/87., due 1985 to 1998 91/Z, due 1985 to 1999 93/4%, due 1985 to 1991 10 1/27., due 1985 to 1990 11 1/4%, due 1985 to 1990 11 1/27, due 1986 to 2000 11 7/87, due 1994 14 1/47., due 1986 to 2000 157., due 1986 Other, average interest rate 8.27. Property and equipment lease obligations, averaagge Interest rate: 1984, 8.2%; 1983, 8.5%; due 1985 to 1998 Sids&v fund debentures, 8 7/8%, due 1986 to 2001 Medium -term and ccaappital notes, average interest rate: 1984, 12.67.; 1983, 12.7%; due 1985 to 1987 Subordinatedpromissory notes - Senior 8 3/47, due 1985 to 1997 Senior 13%, due 1986 to 2000 Subsidiaries' short-term and revolving loans (in millions: 1984, $78.8; 1983, $87.2), commercial paper (in millions: 1983, $5.0) and other debt, average interest rate: 1984, 15.2% 1983, 12.8% due 1985 to 2003 56,000 211,668 12,727 5,740 11,000 85,000 50,000 100,000 10,000 22,434 39,057 111,210 43,400 55,000 60,000 115,295 14,545 8,120 14,625 85,000 100,000 10,000 16,700 13,324 41,365 157,727 46,700 55,000 170,160 200,586 $ 0�:� 224 . $ O Q,174 The aggregate amounts of maturities of debt, in millions, are as follows: 1985, $301.7 (including 122.7 of c- -- ial paper, short-term and revolving loans of subsidiaries); 1986, $119.9; 1987, $77.7; 1988, $52.2; 1989, $101.7; after 1989, $376.0. The aggregate of notes payable (including commercial paper, short -terns and revolving loans of subsidiaries), exclusive of borrowings under the Revolving Credit Agreement referred to below, on a monthly basis, averaged $266.5 million, $316.6 million and $556.6 million during 1984, 1983 and 1982, respectively, with a weighted average interest rate of 11.19., 10.37. and 13.97, respectively. The maximum amounts of such borrowings during 1984, 1983 and 1982 were $361.3 million, $478.4 million and $670.8 million, respectively. i Nq THE HER7Z CCRFC FUnCN AMID SLSSIDIARIES NVIES 70 CONSOLIDATED FIMCIAL SWE2g WS (continued) Note 3 - Debt continued) Undera Revolving Credit Agreement dated as of August 1, 1984 .(the "Credit Agreementt ), the registrant has a credit line from a group of banks to borrow Domestic dollars, Eurodollars and other Eurocuzrencies in a total amount of up to $250 million outstanding at any time. The credit line is subject to cancellation in whole or in part by the registrant on 30 days' notice at any time. Under the Credit Agreement, Domestic dollar loans are to bear interest at a rate equal to the prime rate of Manufacturers Hanover Trust Company in New York City plus 07. or 1/47, Certificate of Deposit loans are to bear interest at a rate equal to the certificate of deposit rate of specified banks plus 5/8% or 3/4%, and Eurocurrency loans are to bear interest at a rate equal to the London Interbank Rate plus 3/8% or 1/27.. The registrant has the right to convert acre type of loan into any other type of loan available Lander the Credit Agreement. The registrant pays a commitment fee on the unused portion of the credit line of 3/8% on the first $175 million and 1/47. on the remaining $75 million. The Credit Agreement terminates cn Julyy 31, 1989, at which time any loans then outstanding t#nere Oder are repayable. Alttwugh no borrowings were outstanding at December 31, 1984 under the Credit Agreement, the credit lime is utilized to support cc®ercial paper borrowings. Hertz had consolidated unused lines of credit, which includes unused amounts under the Credit Agreement, aggregating approximately $500 million at December 31, 1984. The terms of the registrant's loan agreements limit the payment of cash dividends. At December 31, 19840 approximately $130 million of consolidated reinvested earnings were free of such limitations. Debt of subsidiares includes approximately $7 million which is secured by mortgaged properties. ! Note 4 - Pension Plans and Post Retirement Insurance Plan E � I In 1983, the pension plans of the registrant and its domestic subsidiaries were M merged into the Retirement Plan for the Employees of RCA Corporation and Subsidiary Companies The provisions charged to income for all pension plans, including those related �! to foreign operations, were approximately $11.6 million in 1984, $9.7 million in 2 ' 1983 and $9.1 million in 198. Pension costs increased primarily due to an increase -) in the number of participants. Hertz provides life insurance benefits to qualified retired employees. The estimated cost of such benefits is accrued over the period when employees reach age J 55 until their retirement. These costs are currently funded with an insurance -_- company for the payment of future claims. The expense for each of the three years ended December 31, 1984 was not material. -17 - THE HERTZ CQtPCRATIal AN) SMIDURM NDTES TO COI .IDATID FINANCIAL STAMOCS (continued) Note 5 - Revenue Earning Equipment Revenue earning equipment is used in the rental of vehicles and construction equipment and the leasing of vehicles under closed -end leases where the disposition of the vehicles upon termination of the lease is for the account of Hertz. Revenue is recorded when it becomes receivable and expenses are recorded as in=wred- Under operating leases, aggregate minimum future rentals for vehicles and equipment leased at December 31, 1984 are receivable approximately as follows (in millions): $73 in 1985, $28 in 1986, $5 in 1987, and minor amounts in 1988 and in 1989 and subsequent years. Vehicles and other equipment under lease at December 31, 1984 which are owned by hertz amounted to $214 million, net of accumulated depreciation of $95 million (see Note 9 for misniMUm obligations for vehicles leased under operating leases by Hertz). Depreciation of revenue earning equipment includes the following: Year Ended December 31 min thous=M—of dollar _ Depreciation of revenue earning :V� "� equipr+�nt, less amortization of invr�tment tax credits in 1983 and 1982 $3249673 $311,794 $314,100 Less adjustment of depreciation upon disposal of the equipment (2,600) (7,�) (�,3908) y Rents paid for vehicles leased ,34,221 12, s Total $35,.1"2 4 �1 $ Depreciation expense for 1982 was reduced by $14.1 million, attributable to the Me of tax attributes arising from changes in the tax laws provided by the Economic Recovery Tax Act of 1981. -18- TEE MRTZ catFCRATICN AND SUBSIDIARIES N= m comso DATED FINANCIAL smmmNPS (continued) Note 6 - Sale of Operations Duffing 1983, the registrant sold certain of its vehicle and equipment leasing operations for cash and notes. Advances that had been made to the vehicle leasing operations by the registrant were repaid at the time of sale by the purchaser. 'hue total roceeds including the repayment of the advances, were approximately 1153 million. As of December 31, 1984, $119 million had been received and the balance of W million is to be received over a three-year period. Zhese transactions and the results of operations through the dates of sale were not material to consolidated net income. Note 7 - Investment in Hertz Penske Truck Teasing, Inc. In April 1982, the registrant consummated a joint venture agreement with Penske Corporation, Penske Leasing, Inc. and Roger S. Penske (collectively "Penske"), operators of a truck leasing and rental business, which provided for the combination of their respective truck leasing and rental businesses Into a new corporation, Hertz Penske. The combined businesses have been operated by Hertz' and Penske's management since January 1982. Initially, the registrant contributed to Hertz Penske net assets of approximately $250 million relating to its truck leasing and rental business and Penske contributed net assets of approximately $61 million. the equity of Hertz Penske was valued at approximately $56 million. In exchange for the contribution of their respective net assets, the registrant received a 65% equity interest in Hertz Penske and a 10I. note of approxdmately $200 million ppaayyable by Hertz Penske over approximately five years; and Penske received a 35'!. equity interest, an option to purchase in a series of steps 100% of the stock of Hertz Penske and relief from indebtedness of $55 million through the assumption by Hertz Penske of Penske's obligations in the same amount, primarily to third party lenders. During 1983, Penske exercised its option to acquire an additional 15'l. equity interest in Hertz Penske. The purchases resulted in Penske and the registrant each having a 507. equity interest in Hertz Penske. -19- Y- vrR ' Rio•, THE HERTZ CCR MATICN AMID SUBSIDIARIES N= M CONSOLIDATED FUIAICM STATEMEWS (continued) Note 7 - Investment in Bartz Penske Truck Leasing, c. (continued) Summarized financial information for Hertz Penske operations in 1984, 1983 and 1982 is as follows (in thousands of dollars): Operatinn Results Year Ended December 31 Revenues 1274,9497 income (loss) before cumulative effect of change in accounting principle 59542 (1,235) 10130 Hertz oquity in income (loss) before cumulative effect of change in accounting principle, included under direct operating expenses in the consolidated statement of income 2,772 (719) 735 Cumulative effect on prior years net income of change in methodof accounting for Investment tax credits (Note 1) 3,000 - - Hertz equity in emulative effect on prior years of change in method of accounting for Investment tax credits included In under the similar caption the consolidated statement of income 19500 - - Balance Sheet December 31 Assets"'—'— lt�enue earning vehicles, net $429,616 $296,849 Receivables: f "Due Due frclm The Hertz Corporation 31,637 25,452 I; Other 45,753 42,022 Other assets 61,795 55,867 Total assets $5� Vagago Liabilities and Shareholders' Equity t. Due to 7he hertz Corporation $105,985 $117,761 - Other 245,254 134,486 Deferred taxes on Inc= 76,982 72,234 Other liabilities 75,943 39,614 Shareholders' equity 64,637 561095J ._i Total liabilities and shareholders' equity 68 6M 0 0 At December 31, 19841, the registrant's investment in Hertz Penske exceeded its interest in Hertz Plenske's net assets by approximately $12.5 million. ' -20- 1 a�L f: THE MM Z CQtPC WION AND SUBSIDIARIES NOTES M CONSOLIDATED FINANCIAL STATEMIrS (continued) Note 8 - Taxes on Income 'hie provision for taxes on income consists of the following: Year Ended December 31 thous sa�Cn �o dollars Current: Federal $(46,145) $47,076 $ 369 Foreign 10,708 6 687 7,494 State and local 1,518 7,292 4,207 J ' Total (33,919 61,055 12,070 ' z Deferred: Federal 36,332 (31,247) 15,839 Foreign (3,332) 807 (1,399) State and local 1,000 (4,100 600 r :�! Total 34,000 (34,540) 15,040 ' Total $...Pli ULM $ Deferred tastes result from the differences in timing of income andpeases for financial reporting and tax purposes. Deferred federal income taxes have fluctuated prisarily due to fluctuations between tax and book depreciation (which includes differences between book and taxable income on leased assets) resulting from (i) the timing of vehicle purchases, (ii) the recognition of the differences between the remaining book values and the net proceeds from sales of vehicles in different periods for book purposes than for tax purposes, and (M) in 1982 the sale of tax attributes relating to certain revenue earning equipment arising from changes in the tax laws provided by the Economic Recovery Tax Act of 1981. THE MTZ CCRPCRATICN AND SUBSIDIARIES WMS M COMOLIMTED YDMCLAL STATMWS (continued) Note 8 - Taxes on Income (continued) The principal items in the deferred tax provision are as follows: Year Ended December 31, 1984 1963 198Z ---(Tn thousan& of dollarT Differences between tax and book depreciation $23,440 $ 15,305 $25,318 Investment tax credit 11,987 (23,127) (7,590) Accrued and prepaid expense deducted for tax purposes when paid or realized (1,427 26 718 2,68S Total $2LO.00 $nL540) $1; ;a=040 The principal items accounting for the difference in taxes an Income computed at the U.S. statutory rate of 46% and as recorded are as follows: Computed tax at statutory rate $23,050 $ 31,101 $31,028 State and local income taxes, net of federal income tax benefit 1,360 1,724 2,595 Effect of investment tax credit amortized as a credit to depreciation expense which does not require a tax provision (deferral method) (7,201) (4,997) Investment tax credit (flow -through method) (17,375) Adjustments made to tax accruals based on tax benefits relating to operations sold, ongoing tax audit evaluations and 1982 tax law revision (6,757) 1,048 (4,950) Effect of including the after tax results under "income before income tax" of Hertz, equity In the net income and loss of Hertz Penske (1,275) 331 (338) Income taxes on foreign earnings at effective rates different from the U.S. statutory rate, Including the realization of certain foreign tax benefits, tax provided on foreign q�erations sold and the effect of subsidiaries losses and exdwge adjustments with no tax effect 56 126 3,774 All other items, none of which exceeded 5% of computed tax 1,022 _014 (2 Total $.2 &&5 $2.7 2=110 Q Prior to 1984, the Gonsolidated Statement of Income reflects the amortization of the investment tax credit over the productive lives of the related assets; accordingly, net income was increased by (in millions) $15.7 in 1983 and $10.9 in 1982, which amounts were credited to depreciation expense (see Note 1). The increased amortization in 1983 primarily relates to the 1982 revision in the tax law. -22 - n f . THE HERTZ CCi2PCft n N AND SUBSIDIARIES NOTES M CONSOLIDATED FINANCIAL STAIFI=S (continued) Note 9 - Lease and Concession Agreements Hertz has various real estate leases and concession agreements under which the following amounts have been expensed: Year Ended December 31 — (1n tiwusands `BF dollars—" Rents $ 22,018 $ 21,372 $20,420 Concession fees: Minim= fixed obligations 43,078 39,262 34,118 Contingent, based on revenues 60,102 53.100 50,037 Total $125.1 88 $ 11� $ As of December 31, 1984, minim n obligations under existing agreements referred to above are approximately: Rents i n zousands Concessions of dollars) Yeas�s5ded December 31, $19,819 $39,374 1985 1987 16,694 13,438 31,208 20,811 1988 1989 11,036 14,728 8,803 70363 Years after 1989 35,557 25,660 In addition to the above, Hertz has various leases on vehicles and office and computer equipment under which the following amounts have been expensed: Year Ended December 31 thous�"0 dollars Vehicles $34,221 $12,205 $2,398 Office and computer equipment 8,182 72489 7,313 Total 2 403 I 694 �I1 As of December 31, I984, m nimm obligations under existing agreements referred to J above that have a maturity of more than one year, which primarily relate to vehicles and are substantially offset by sublease rental income under erating leases (see Note 5), are approximately as follows (in millions): 1985,19.6; 1986, $5.3; 1987, $2.4; after 1987, $.9. - 23 - AM THE W-TZ CORPMATIQl Ala) SUBSIDIARIES NOTES 7U CONSOLIDATED FIN94CIAL STATFZ•�iiNi S (continued) Note 10 - Operations by Geographic Area Hertz operates in the United States and in foreign countries. Tie operations within major geographic areas are sum wrized as follows: Revenues United States Foreign operations (substantially Europe) Total Income Before Income Taxes United States (1984 excludes investment tax credits - Note 1) Foreign operations (substantially Europe) Total Total Assets at December 31 United States Foreign operations (substantially Europe) Total 1984 1983 1982 (in ew=—a—u-ff' ollar' s) $1,175,929 $1,108,744 $1,070,834 264,516 263,274 262,985 $� $1.372�.018 $ 3� $ 35,950 $ 52,779 $ 63,450 14,158 14,832 4,003 $8 $ 7 1 $ 1 67, 453 $1,785,529 $1,695,999 $1,956,840 235,239 271�120 299,413 $2 0 $L967�.119 $2 6 253 -24- r THE MRTZ CORpaLmQJ AMID SUBSIDIARIES NOM M COMMIDATED FINANCIAL. STATEMMS (continued) Note 11 - Litigation See Item 3, '7.egal proceedings". Note 12 - Supplementary Income Statement Information Year Ended December 31 (in thoua;ZRW-oF dollar General Taxes: Vehicle licenses $23,093 $17,764 $15,586 Property and other 9,765 11,684 10,862 $32�58 $2,� $261.450 Maintenance and repairs $ 0 $8� $ 3 4 Advertising and related expenses: Total expenditures Less amounts paid by: Ford Motor Company Licensees and Hertz Penske Charged to income IN .25 - $BLS, 716 $97, 902 $77, 339 (30,606) (23,600) (20,000) (8,925 18,172 (7,022 $49 185 $661130 $ 17: .. _., .. - TIC MTL CCRPORATION AMID SUBSIDIARIES NOTES TO CONSOM ATID FIlVANCIAL SUTDOWS (continued) Note 13 - Quarterly Financial Information abaudited) A summary of the quarterly operating results during 1984 (before the cumulative effect on prior years of change in method of accounting for investment tax credits) and 1983 were as follows: Income (Lass) Before Net Income Revenues Income Taxes(Loss) -ZIn thousands o ollars) l984 Tas't $ 327,482 $14,784 $11,443 Second 370,793 15,219 12,727 third 403,227 25,362 28,006 Fourth 338,943 (5,257 (2,149) Total Year $ 4k0 +5 $50� $ 1.0202Z 1983 first $ 332090 $19,640 $ 9,218 Second 351:212 14,276 8,518 Third 371,876 33,165 19,427 Fourth 316.840 530 3,933 Total Year $1.37� 2� 018$6z. $.4; if the change in accounting policy for investment tax credits had not been made in 1984 (see Note 1), income before income taxes would have been reported as follows (in millions): income in the first quarter $20.0, second quarter $19.1, third quarter $29.4, and a loss in the fourth quarter $.5. Before the ci�gge� in accounting for investment tax credits, pretax income in the third quarter of 1984 fell below the same period in 1983 primarily due ro the lower than anticipated utilization of rental cars, particularly at the Summer Olympic G3mes, and costs incnsred in connection with consolidating certain operations. The net income for the third quarter of 1554 improved primarily due to changes made to the estimated annual effective tax rate resulting from a decrease in the pretax earnings anticipated for the full year. As compared to the prior quarters in 1984, the decrease in pretax income in the fourth quarter was primarily due to lower revenues and higher operating expenses. As compared to the prior quarters in 1983, the decrease in pretax income in the fourth quarter was primarily attributable to lower revenues, foreign exchange losses, and higher operating expenses relating to changes in the mix of business partly resulting from the sales of certain vehicle and equipment leasing operations. She 199s, after tax results for the fourth quarter were improved primarily due to changes made to the estimated annual effective tax rate resulting from the amortization of investment tax credits. 1 THE M7Z CORPORATION AMID SUBSIDIARIES '1 DATES TO CODSO=7ED F1WCL4L STATEMEMS (continued) Note 14 - Supplementary Information on C'hannina Prices (Unaudited) Financial Accounting Standard No. 33, "Financial Reporting and Changing Prices" ("FAS No. 33'J, as amended, requires the disclosure of supplementary information on the effect of changes in specific prices (also referred to as "current costs") on the resources used in a company's operations. Current cost calculations involve a substantial number of assumptions and estimating techniques. They are not precise measurements of the assets and t expenses involved, but attempt to reasonably approximate price change` that have occurred. Hertz does not represent that such current cost information is a fair representation of the impact of inflation upon Hertz. Ciarent cost was calculated as follows: Revenue earning equipment -- current quoted market pricer were used for vehicles; current quoted market prices were used for other revenue earning equipment, except where impractical, because of the different variety or wpecialized nature of equipment required to meet a particular customer's needs, in hich case a published cost index was used. Property and et -- a published cost index was used and was applied to the related histor�cost. Inventories -- no adjustments were made because inventories primarily include materials and supplies which are continuously replenished and are not materially affected by current cost factors. Depreciation expense -- caeputed based on the estimated average current cost during the year; historical exchange rates were used relating to foreign operations. �1 .._. •- FAS Nb; 33 specifically prohibits the restatement of income taxes since present tax laws do not permit companies to recognize any general inflation adjustments. The gain from the decline in the general purchasing power of net amounts owed demonstrates that total liabilities requiring future fixed cash settlement exceeded .� like assets. This results in a hypothetical gain, which is excluded from income in the supplemental statement of the current year's earnings. -21- i c ZZE I= CCtiPCaMMI XIM S MIDIAP.IFg HAZ - 'M MMLIMM FINANCIAL. VATEIMS (continued) r� Note 14 - SuWlementary Information on Changing, Prican (Unaudited) (continued 1984 Income and Other Selected Data Adjuatod for avenges in Syocitic Prices (in millions of avora�e 1984 dollars) Income before income taxaa, as reported $50.1 Adjustments to restate costs for the affect of changes in specific prices (current cost): Daprociation a panso 14.3 Income before income texas, adjusted for changes in specific prices 35.8 Provision for texas on income .1 Net income, adjusted for changes in specific prices $&Z Effect of increase in general price 10VOI $42.1 Incroaso in specific prices (current cost) of ravanuo earning aguipment sM prayorty and equipment told during the year tat December 31 w 1984, current cost of rovernw r earning equipment, not of accumulated depreciation, was $1,395 million; and current cost of property and equipment, stet of accumulated depreciation, was $297 million) 49_8 amass of increase in specific prices over ineraaso in general inflation $,a Supplementary Financial Data adjusted for Effects of Changinng Prices (in millions of averm 1984 dollars): 1984 1993 1982 1981 1980 Total revemmes $1,440.4 $1,430.4 $1,435.3 $1,396.1 $1,372.4 Net iaacme (loss) 35.7 4.7 (12.2) (38.5) 23.6 Net assets at year-end 552.9 560.0 586.4 686.8 660.9 amass of increase (decrease) in general inflation over changes in specific prices (7.7) 75.8 54.8 26.0 93.0 Gain from decline in purchasing power of net amounts owed 50.7 54.3 60.9 134.5 167.4 Average consumer price indwe (1967 - 100) 311.1 293.4 2E9.1 272.4 246.L' ZIE II12i1Z CORP aUTICV AMID SI UDIAIUM SCIIII=!" V REVENUE EW= EWMMNr, PROMTY AMID EQUMEIT PaBo 1 of 2 YFAiiS E NDO) DFCF SIR 31, 1984, 1983 AIM 1982 (In thousands of dollars) 1984 Rovecwe Earning Equipment: Vehicles Other equipment 1_ Rovewe Earning Equipm *: Vehicles Outer equipment 1982 Revenue Earning Equip m.- Vehicles Other equipment Balanco at Deductions Balanco Be inning t emmnts Translation at and ol Year Acid_ i� 5,� rs Ad ust rots of Year $1,522,648 $1,235,842 $191930141 $30,460 $1,534,889 153,096 44,239 31,808 - 165,527 91.6� i2.89 081 il .224.9A2 93� 81.7.E $1,622,041 $1,1949835 $1,263,676 $309552 01,522,648 158,340 10,598 15,842- 153,096 $1.7� il.2� 91.2� il.6675,744, $4562,431 $1,021,265 $916,997 $44,658 41,622,041 193.176 20.803 S�S,_639 1_ $1.7. 1 SlW 91,780,381 - 29 - n ,.,..,.,. wry. , . .. �.�....,> • - - _• �_�_`�` MIE HERTZ CMPatATICN AMID SUBSIDLUU11 SCI1 UM., v Page►2 of42 REVENUE EARrT M EQUI MC9 PROPERTY AND EQUMOC YEARS ENDED DECOSER 31, 1984, 1983 AMID 1982 (In thousands of dollars) Balance at Deductions Balance Beginn fttirec=tS ans at n at end of Year Additions & Transfers Adjustments of Year 1984 Property and Equipment: $ $ $ $ $ Build' 51,925 29606 1,423 687 52;421 Loaadho d improvements 91,80G 14,737 1,370 2,543 102,630 Service equipment 137,859 216,627 12,453 2,263 149.770 $30148. 756 31_ 15,663 133277 1983 Property and Equipment: Und Buildings Le ct*ld Improve=*s Service equipment 1982 Property and Equipment: Land Buildings Leandhold Service a 3aProveme= quipmeat $ 26,010 $ 530 $ 50,928 2,864 10095 869571 8,935 1,520 1341592 , 16,335 10,771 9298.1-01 A28.664 $ 26,568 $ 373 $ 807 46,381 6,216 927 769635 14,031 19870 115,828 30,178 8,976 $265�_ 412, 119jis. s -30- $ 83 $ 25,684 772 51,925 29180 91,806 2_297. 137.859 32 IL�,4 $ 124 r' $ 26,010 742 50,928 2,225 £6,571 2`438_ 134.592 s2 ,J THE umTZ cV6 pao al AM) S SIDI YAM SCi'Y:rAJ.W VI ACCiJt'1UTATED DEPRECIATION OF Page 1 of 2 REVENUE EARMC EQUMIM, PRUP&RTY AMID EQFIItk= YEARS ENDED DECEMBE4t 31, 1984, 1983 AMID 1982 (In thousands of dollars) Balance at Deductions Balance Beginning Retirements Tramla—MF at end of Year Additions & Transfers Adjustments off r 1984 Revenue Earning Equipment (a): Vehicles $255,631 $337,891 $317,CG6 $4,841 $271,795 Other equipment 52,757 18,403 15,941 55,219 308 88 35G 294 33 02 [ 6327. 4 1983 Revenue Earning Equipment (a): • Vehicles $3290016 $297,996 $367,732 $3,449 $255,831 Other equipment 41,255 18,103 6,601 - 52,757 3 0 2 316 1374. 33 93,449 308 ` 1982 Revenue Fanning F4uipment (a) Vehicles $282,769 $290,559 $239,226 $5,086 $329,016 Other equipment 35,505 16,047 10,297 41,255 3 8 74 A306,606 24 i5.ffifi 9370,271 (a) Depreciation expense inas been reduced for the difference bOtwsen the remaining hoot; va ues and the net proceeds from sale of revenue earnin eyu4 ment by approximately (in millions) $2.6 in 1984, $7.9 in 1983 and $9.9 in 1992. Depreciation expense in 1982 has also been reduced by an additional $14.1 million resulting from sale of tax attributes under the provisions of the Economic Recovery Tax Act of 1981. Rents paid for vehicles leased included in d%aeciation enawe in tine araou nts of ' (in millions) $34.2 in 1984, $12.2 in 1983 and $2.4 in 1982 Dave also been included above in retirements and transfers. j - 31 - 1 'I I s•c_ MIE I!T'.TZ =IPMATIM AZ 5UMILi&UZ :;GiuyLZ ►vl ACCUMULATED DEPRECIAMN OF Paba 2 of 2 REVENUE EAR1MC EWMOC, PIDPrICLY ALd) itZ M44T YEARS ENDED DECEIB R 319 1984, 1983 AND 1982 (In thousands of dollars) � 1984 Property and Equipment: Buildings Leasehold improvements Service equipment 1983 Property and Equipment: Buildings Leasehold iWrovements Service equipment 1982 Property and Equipment: Leasehold Inprovements Service equipment Balance at Deductions Balance Be inning t ements ans at at end of Year Additions & Transfers ,Adjustments of Year $ 8,348 $ 1,776 $ 289 $ 137 $ 91698 34,038 7,890 1,084 983 39,861 76,252 18,069 12,856 1,161 80,304 $11� 81 t27,735 t14.9,Z2 j2 •ZEl t129,8Q $ 7,215 28,309 $ 1,669 66,414 JULz�f 7,402 17,639 $ 970 $ 70 $ 38o035 6,963 838 1 '.52 L r $ 6,480 $ 19555 $ 343 $ 77 $ 7,215 23,769 6,857 1,584 733 289309 55,382 16,197 4,174 991 66,414 6 0 il.891 - - ILLM -32- ind ME MCI. CQiYCitATION AND SUBSIDIARIFS SCHIMULL Vill VALUATION AND gJAU Y= A=VrS YEARS ENDED DECEI,BEEt 31, 1984, 1983 AND 1982 Additions Balance at uiarged Balance Beginning to at End of Year Income Other Deductions of Year 1984 ' n th sa s of o ars Allowance for doubtful accounts 1 4,W 9 5,lL2 Zb) L.3.L33 Public liability and property damage tS� JA7,560 S 6 (c) 3 2 1983 Allowance for doubtful accounts LIA.0.81 6,290 Cu) Allowance for contract losses 8 880 1 66 (a) 10 (e) L� Public liability and property damage 158.934 8 02 "L.L48.(d) 76 (c) 652,444 1982 Allowance for doubtful accounts 3,899 2=158 S10,972(b) 85 Allowance for contract losses 7,834 $4,229(a) 3 8 (b) 8 880 Public liability and property damage 1500&2 $46.666 A8(d) Sr 58 (c) $59,234 '(a) Represents the transfer from deferred income for leases entered into during the current year. The amortization of deferred income has been reduced by approximately $1.7 million in 1983 and $4.1 million in 1982 as a result of amounts transferred from deferred income to the allowance for contract losses is the current and prior years. (b) Amounts written off, net of recoveries. (c) Payments of claims and expenses. (d) Represents funds which were released from deposit which collateralized the liability for public liability and property damage (the collateral deposits are offset against the liability for public liability and property damage). (e) Operations were sold in 1983. -33- " J 1 o i I 1 �t SECUr.ITIFS AMID EXCHANGE W- ISSIal WASi ING=, D.C. 20549 E MBTT filed with PM 10-K for the fiscal year ended December 31, 1984 under THE SECITX= EXCR= ACT CF 1934 THE HM= OOUCRATZON Commission file ncber 1-7541 1 A description of the Exhibit filed hereunder, listed by the number assigned to it by Item 601 of SEC Regulation S-K, is contained in Item 14(a)3 (24) on page 7 of this Form 10-K. J t a f' I -1 I ,i i i i EGMIT 24 k We consent to the incorporation byy reference in the Registration Statements No. 2-79780 (Form S-3), No. 2-79781 (Form S-3), and No. 2-83600 (Form S-3) and the related Prospectuses of The Hertz Corporation of our report dated February 141, 1985, with respect: to the consolidated financial statements and schedules Of 21e Hertz Corporation, included in dda Annual Report on Form 10-K for the year ended Dececber 31, 1984. We also consent to the incorporation by reference in the Registration Statements No. 2-32530 (Form S-16)1, No. 2-68806 (Form S-8), and the related Prospectuses of RCA Corporation of our report dated February 14, 1985, with respect to the consolidated financial statements and s4wdules of The Her frporation, included in this Annual Report on Form 10-K for the year ended D.Med ex 31, 1984. Touche Ross & Co. Febnwy 28, 1985 New York, N.Y. J CITY OF KENAI ot "Oil Capdal 4 4�"� 210 PIOALOO KENAI, ALASKA 89811 TELEPHON9288.7635 MEMORANDUM TOs Mayor Wagoner and Kenai City Council FROMs Jeff Labahn, Land Manager SUBJECTS Lease Applications Lot 1A, Baron Park S/D - Multi -Retail Use - Donald M. Asse DATES July 29, 1985 At the regular meeting of the Kenai Advisory Planning & Zoning Commission on July 24th, the Commission reviewed and approved the lease application with the recommendation that the development follow a Phase I completion date of 9/66 and Phase II in 1988. Details of the discussion and motion are available in your packet item H-6, page 4, 7-a. jal "u v. , _ ..- ... .. _. -- - �'--•. � Nam... «..._...,..._.....-e,a..re._ r-- _ �... ..«•,.. •.w. _..d..r .., .,.�w� 6 _ ,DI CITY' :' 01' K I: NA I P.O. BOX 580 • KENAI, ALASKA • PNOUE 293.7535 Date Recoived :gnatury arxi tttrle�-. LEASE APPLICATION Name of Applicant DDwt-b A4- 4,45g Address 'C::ZkVj2 - '1&w Deag Business Name and Address OPMAW, _ QTFUL_ Kenai Peninsula Borough Sales Tax No. (if applicable) State Business Liconse No. a?-79�-� S/G %/O (if applicable') Q� Telephone --�+ -- 0 ' Lot Description _.LM _QO�,(_ Desired Length of Lease _•60 flw'A,I�r Property to be used for CQN57'>zVerlp O�__,Qj�,r,„_� 7 wd-r-A, M.At er _ i+eu [ & I ja mA .Am-% A -ram : t Mw&- is Description of Developments (type, construction, size, etc.) Attach development plan to scale (11, : 501), showing all huildirr,i planned. Time Schedula for Proposed Devolupment: Beginning Date ���'Gig Proposed Completion Date Estimated Value of Construction $ Date: Date: gnr!d:"lrt.Qi?!tx� E iN C Description of Property -4a*l-k wean f'QrK.4'Z CONDITIONS OF ACCEPTANCE (To be completed by the City) Annual rent rate or cost6r6 wa6pr ls"CeP Va/cte, Zoned for e"�,<,v�n,� (-. _ ,r. ; ( C CG 1 Permits required s Assessments h(A Insurance required 4�,S; Construction must begin by Completion date for major construction q 9 THIS APPLICATION WILL BE MADE A PART OF THE LEASE Planning Commission Approvals Bys r%'1 , Date of Approval "�'� a rman If City Council Approvals By: , Date of Approval City Clerk 4 —. 77i 0 1 �JQ 3 e NA C f*% t T `r MALE - I U iU SUBuI`JIGEG r. , 6oT • S&OLWA f veCIMItr MAPsito 6 • • 'UNSUBDIVIDED 1 CERTIFICATE DE .►ar•s •zQa . a ,ou WE HEREBY CERT Y TH ppOpERTY SHOWN SCf ADOPT THIS PLAN yr SUS WAYS & PUBLIC AREAS TO „r TO THE USE SHOWN. Wiltlom J. Sriphton, City For The City of K1noi 803 560 Xonal, Alosko In NOTARY'S AI • I � �� � Z A i SUBSCRIBED AND SWORN �•r 1985 FOR " J, F 1.o't S i p'4► _ �� a y s�cR v NOTA rixa MY ' I �' ("\T `, s.y+' .� aa•*,•taa „ rasa`. THIS PLAT WAS APPROVE I PLANNING COMMISSION r r _ . _ - • •__ -- KENAI P KENAI SPUR HIGHWAY g AUTHOR r j ,y M p ROY 1. WHIM)", R L•E ., ah:raforrNN IIO 6it 1 I I 11 E 1 This copy 130mewhat distorted due to reduction of very large cony — Original blue -line will be available at the meeting. 11wa1a unu •Iqi Irr 1 SNo� FRONT 11 r © !tr'.; _ -y 4I ° �,,�•�, SroR ELEVATION M01f11616.1 ,1r � 1••Irr SNOW STORAGE • • I w .1r or W ® MCIYIW CIt14 w rr nm it wr MI NU /:! /IICIIr 11UC ! ra1M I • J�'�S Rangy mlt � cr1 M 8:M1 Y SITE...,,PLAN 10' CONCEPTUAL MASTER PLAN I +I� Of 1 0 Mae or SM61.MUM 1 ••111 es W11111 17.WS V= 1111 a now$ 0.110186 r111 y11 f"M 91a faMOlw r.rr1V Ur1. 7 N1N.�N. NNr. 101 W _— I -ta KENAI CITY COUNCIL MEETING Presentation Of David L. Baumeister President ERA Helicopters, Inc. August 7, 1985 Good evening Ladies and Gentlemen. I am Dave Baumeister, President of ERA Helicopters. We are here tonight because we would like to lease additional ticket counter space at your Airport terminal, to better serve your community with our scheduled ERA/Alaska Airlines service. We are also here tonight because we have been told that we cannot lease any space unless and until we sign a certain form of Lease Agreement. This document contains provisions regarding insurance and indemnity that we believe are not quite fair. I should add that our concerns are shared by two other carriers that serve Kenai, Southcentral Air and AAI . Paragraph 14, which we have submitted as Exhibit A, asks us to pay for harm that might be caused through no fault of our own. Indeed, it asks us to pay for the wrongful acts of the Airport's employees and the City's employees. We had thought, perhaps mistakenly, that these provisions were rejected by this Council three months ago when the Terminal Space Competitive Bid Proposal was rejected. Now, you should understand that we at ERA are ready, willing and able to assume full responsibility for our own mistakes. We can and do take measures to see that our own operations are as safe as possible. But we are very reluctant to insure against and pay for the mistakes of others, over whom we have no control. Our insurance carriers, as well, are becoming increasingly reluctant to enter these kinds of arrangements. This is not just a hypothetical problem. Because of a lease we signed with the State of Alaska for ticket counter space at Anchorage International, the State's Attorney General's office is presently asking ERA to defend and assume liability for a two million dollar lawsuit filed against the State by a lady who was raped in an airport parking lot. The details are spelled out in the letters submitted as Exhibit B. If, after reading these letters, you are shocked -- just think how we felt when we received them. Similarly, when an airport grader operator ran into one of Alaska Airlines' 727's, the State took the position that Alaska Airlines should bear the full cost of the damage. The point is, language such as we are asked to sign with the Kenai Lease imposes a very substantial -- and unfair -- risk on the lessee. We are currently renegotiating the language of the leases at Anchorage International -- to provide that each party bear his own fair share of losses according to percentage of fault. Our position on this matter is shared by every major airline serving Anchorage. We suggest that a similar "proportionate fault" approach is appropriate for the Kenai Leases. To this end, we have attached as Exhibit C our proposal for an addition to the leases. Lest you hear the argument, "Oh, it is just a matter of who pays the insurance premium", we would like to point out that this is not the case at all. After some 37 years of doing business here in Alaska, we can tell you that, whatever claims our insurance carriers pay, we eventually pay in premiums, plus some. Should we have a substantial loss this year -- even if caused by someone else's negligence -- our loss history would be impacted, and our insurance premiums would increase for years to came. To accept paragraph 14, then, would be playing a form of economic Russian Roulette: we would lose control over our loss history, and consequently, our insurance costs. We believe it fairer -- and better business -- to provide in the lease that each party bear responsibility to proportion to its own percentage of fault. This would be the most cost effective to all concerned in the long run, since each party could, to some extent, control its own losses. It also has the very important benefit of actually promoting safer operations overall; it provides an additional economic incentive for each party to continuously monitor, manage and improve its own safety programs and performance. Consequently, among businesses with relatively equal bargaining power, this proportionate fault approach has gained widespread acceptance. All ERA is asking for is fair treatment on the insurance and indemnity issues in the lease. Thank you for your time and consideration. David L. Baumeister KENAI CITY COUNCIL MEETING August 7, 1985 EXHIBITS Accompanying the Presentation of ERA Helicopters, Inc. Concerning Kenai Airport Ticket Counter Space Leases r TIM ROGERS COY AnORKY CITY Of KENAI '114 oSUM ALAUA 9%1 my$" 14. INDEMNIFICATION AND INSURANCES L''Q88.Q8 oovin8n,t$ tQ�pay.e�*�the,;R'ity;; ark, ee,,F,4�:.,p , ao p�,q,;�puite, liabiiitis�, o>L.�dam,e. es,r��, u�tiLnp,^, % or artainq out of any acts of commission or omission by the leases, his ngentn, employfl customers, invitees, ok a>riei, ng from or;,out_,of „the Lessee'sa 000,ypati.cr, or,,:u8e'.a6f,.)the7'premise's demised,-,or-priVA.10ggp 9fiJSdtti�l.�.,.+;�bE1d,.,,to.�peX A�a�,�,;;,,pABta:'nonneoted,wtherewit�. Lessee, at the expense of Lessee, shall keep in force, during the term of this agreement, insurance issued by responsible insurance companies authorized to do business in Alaska, in forms, kinds and amounts as determined and directed by the City for the protection of City and/or Lessee. Insurance 4 requirement hereunder shall be subject to the W1�*determination of the City. Said insurance may include, but need not be limited to insurance coverages commonly known as, or similar in kind to, public liability, products liability, property damage, cargo, aircraft, fire, workmen's compensation, comprehensive, builders risk, and such other insurance coverage as deemed required in the sole determination of the City. All policies or endorsements thereto shall in all cases where possible ne 6Z'0it -.ae-, ddit Nemed"Insur91 thereunder and shall contain w�� y s �`""" e tbrogat,A.gp.IisttiheYC.it�. A�" Upon approval by City of all insurance required, in the forms, kinds and amounts directed to be procured, Lessee shall deliver all policy originals or duplicate originals and endorsements thereto to the City for incorporation within this agreement as attachment thereto. In any event, Lessee is not to commence to exercise any of the rights and privileges granted under this agreement until such time as all insurance directed and required to be furnished by Lessee is in full force and effect. Lessee insurance protection rfurnished essly ebytands n Lesseehereunderd agrees tshallhat nin no way limit its responsibility to indemnify and save harmless Lessor under the provisions of this agreement. No policy of insurance shall be cancelled or amended with respect to the City without thirty (30) days written notice by registered or certified mail to City by the insurance company. Until otherwise directed in writing by the City Manager, Lessee shall provide certificates of insurance within thirty (30) days of the date hereof as follows: Comprehensive General Liability Combined Single Limit (Bodily Injury and Property Damage) $ 1,000,000 Workmen's Compensation - Statutory limits LCA-3 LESSOR: LESSEES Automobile Liability Combined Single Limit (Bodily Injury end Property Damage) $ 1,0009000 Aircraft Liability Public liability and property damage (combined with single limit) with no sub -limit for passenger liability $10,000,000 Notwithstanding anything to the contrary, if Lessee fails or neglects to secure required insurance or if said policy or policies are terminated, altered, or changed in any manner not acceptable to the City, than and in that event this lease may be cancelled and terminated, without penalty, on five (5) days written prior notice to Lessee. r� M 03.csLN BILL SHEFFIELD, GOVERNOR —••• REPLY TO. QEPART.NiENT OF LAW ❑ 1031 W 4th AVENUE SUITE 200 ANCHORAGE, ALASKA 99501 OFFICE OF THE ATTORNEYGENERA L PHONE. I9071 276.3650 1}7JJ1tt NATIONAL CENTER 100 CUSHMAN Sr. September 19, 1984 _ ; - i SUITE 400 CERTIFIED MAIL RETURN RECEIPT REQUESTED ERA Helicopters, Inc. P. O. Box 762 Anchorage, Alaska 99510 Gentlemen: r •FAIRBANKS, ALASKA 99701 PHONE: I907i 452.1568 O POUCH K • STATE CAPITOL JUNEAU, ALASKA 99811 PHONE: 1907) 466.2600 Res Crane v. State of Alaska ERA employee raped in airport parking lot) A former employee of yours, Sandra Crane, recently sued my client, the State of Alaska, for being raped while on the way to work in the airport parking lot. Enclosed is a copy, of Mrs. Crane's complaint which more fully sets out the allegations. I should also add that Mrs. Crane's family are also plaintiffs. Please regard this letter as a formal tender of the state's defense to ERA Helicopters, Inc. This tender is made pursuant to Paragraph 16 of the June 15, 1976, State/ERA Helicop- ter airport lease, Lease No. ADA-02842 and Paragraph 18 of the March 17, 1983 State/ERA Helicopter airport lease, Lease No. ADA-05209. Although I am sure you have copies of your.own, just on the odd chance that you do not I am enclosing copies for your convenience. In an effort to keep matters moving, I am putting a 20 day time limit after receipt on the tender and will consider it rejected if not accepted by then. Twenty days is the amount of time you would have if a formal third -party action was filed against you. However, if you need more time to consult with your insurer or attorney, you will find me very accommodating, so long as you ask within the allotted time. Please be advised that if this tender is wrongfully rejected, my client and I are free to settle or litigate the case with the plaintiffs and then recover the amount of the settlement or judgment, plus actual fees and costs, from the errant indemni- tor. Manson-Osberg v. State of Alaska, 552 P.2d 654 (Alaska 1976) . EXNW page ...I..... d" i EPA Helicopters, Inc. September 19, 1984 Crane v. State of Alaska Page 2 I trust that I will be hearing shortly from you on this tender. Sincerely, NORMAN C. GORSUCH ATTORNEY GENERAL By: G y Wter Assistant Attorney General GFsja enclosure I 4 F1 I 771F A A h HILL Siff FIE, GOVERNOR ILA 0 0 SU ! REPLY TO: DEPAQiTMENT OF LAW 01031 w4tn AVENUE SUITE 200 ANCHORAGE, ALASKA 99.501 OFFICE OF THE ATTORNEY GENERAL PHONE: I9071 276.3550 November 29 1984 f111tt NAT/oNAL CENTER n _ 100 CUSHMAN ST. SUITE 400 ,�b PHONE • (99107 9071 492 1668 OEC19gA POUCH K • STATE CAPITOL, Robort L. Richmond UNEAU, ALASKA 99811 HONE: I9071 465.3600 Richmond & Associates 135 Christensen Drive Anchorage, Alaska 99501 �~�J Res Crane v. Wilkie & State�� llQZ6�', Dear Bobs I received your November 6th Letter rejecting the state's defense tender. I would like to respond with a few comments and a few queries. First, you argue that ERA had no "control" over parkin lot lighting and security. You are confusing and incorrectly interchanging negligence law with contractual hold harmless and indemnity law. The question of control is important when determining common law negligence duty, as was the case in Moloso. 1, however, know of no case law and you cite me norF w i'f ere "control" is a factor in the hold harmless/indemni.t.v context. That is unless the contract .language is drafted in terms of control, which in our case it is not. Furthermore, that Alaskan case law with which I am familiar clearly provides that hold harmless/indemnity contracts are not overshadowed by who was negligent, but rather are read literally and. broadly. Manoon-Osberg v. State, 552 P.2d 654 (Alaska 1976)f Amoco Production Com an v. C urc:h Welding and Const. Inc., 580 P.2d A as a t and Burgess Const. Co. v. State, 614 P.2d 13PO (Alaska 1980), Secondly, you seem to ignore, either inadvertently or intentionally, the first clause of paragraph 16 of the June 15, 1976 leases The Lessee (ERA] shall assume liability for damage to property of, or personal injury to, his directors, officers, agents, employees, invitees and guests arising out of, or in connection with, the Lessee's use of the Premises. 03.csL1+ Page ..i .... of ..4.. , W L, � Robert L. Richmond Novrmber 29, 1.9U4 Crane v. Wilkie and State Pago 2. Thirdly, although your traffic light analogy certainly goes beyond the line, "arising out of," "in connection with," "resulting from," and the like are given very broad application. See Stephen & Sons Inc. v. MunicipalitX of Anchorage., 629 F.2d , n. 6 (Alaska 1981). I am equally qu to con dent" that a court would find Mrs. Crane's use of the airport employee parking lot "arising out of" or "in connection with" ERA's occupation and/or use of its leasehold. Fourthly and quite bluntly, what are you talking about when you write that the applicable agreement here is not the state/EPA lease, but rather an ERA/AAI sublease? Please provide me a copy of that agreement. Fifthly, your letter has prompted me to tender the state's defense to Wilkie's employer, Servair. Like you did can the subject of. control, I am afraid in analyzing SPrvair's liability here I incorrectly mixed concepts of negligence with those governing contractual hold harmless/indemnity. I have had the mind set that an employer cannot he vicariously liable for an intentional tort such as rape and the employer could not be directly liable unless he had knowledge of the employeele dangerous propensities. The lease's hold harmless/indemnity provision, however, is not so restricted. The lease places nearly strict liability on the part of the lessee for acts of its employees. Thus, as I said, I have contemporaneous with this letter tendered the state's defense to Servair. However, an there is no misunderstanding between us, please do not mistake the tender to Servair as an abandonment of the tender to ERA. The state's hold harmless/indemnity rights will be pursued against both with equal vigor. Lastly, would you kindly provide me a copy of ERA's airport premises insurance on which the state is ar. additional insured. A copy of the certificate of insurance sketchally describing that policy is enclosed. i Sincerely, NORMAN C. CORSUCH ATTORNEY GENERAL i By: c.. Gary ter Assistant Attorney General GF:ja enclosure Paso ...4_... of . SUGGESTED ADDITION OF A NEW SECTION 14A TO THE KENAI AIRPORT LEASE "14A. ALLOCATION OF RISK AND RESPONSIBILITY: Notwith- tanding any inconsistent or contrary provision contained in Section D.14 above or elsewhere in this Lease, the provisions contained in this Section D.14A shall control: "As between Lessee and the City, any liability for loss or harm of any kind or nature whatsoever, whether such loss or harm is suffered by either party or any third party, shall be allocated on the basis of proportionate responsibility, as in doctrines of pure comparative negligence and pure comparative contribution. "Nothing in this Lease shall preclude Lessee or its insurance carriers from recovering against the City or any third party to at least the proportionate extent loss or harm may be caused or contributed to by fault or other legal responsibility on the part of the party against which such recovery is sought." r: , I i EXHIBIT C P� ... �..... of .. �.,,... i i J r I � I .,. 0 ERA HELICOPTERS, INC. W51 WESTHEIMER - SUITE 1900 P 0 BOX 60149 6160 SOUTH AIRPARK DRIVE HOUSTON, TEXAS 77056 FAIRBANKS, ALASKA 99701 ANCHORAGE, ALASKA 99502 TELEPHONE 113621.7800 TELEPHONE 907 462 1838 TELEPHONE 907 2464422 J� L PLEASE REPLY TO �G 7 Anchoragb 1IZ7j �� July 22, 1985 to Mr. Randy Ernst Airport Manager Kenai Municipal Airport Kenai, Alaska Dear Mr. Ernst, Please accept this letter as our request to lease the space previously occupied by Valdez Airlines, which is adjacent to our own. Due to an increase in passenger loads, this additional space would allow ERA to provide its customers with more efficient passenger check -in and improved baggage handling. Your expeditious decision in this matter will be appreciated. Sincerely, /.._ 46V�ande Voorde Vice President of Operations i 1 y S I Slit SHEFFlEtD, GOVERNOR Lim Ui E DEPARTMENT OF TRANSPORTATION AND PUBLIC FACiLITILS 4111 fFOUC ANCf 13 ANC • CENTRAL REGION / irELI �%3 67�91p July 31, 1985 AUK Q w Re: Kenai Apron/Taxiway Transfer of Responsibility Agreement C41 Project No. 02047 WOO � � ATB 7- 3Ir P s E Mr. Keith KorneliS `We Department of Public Works City of Kenai 210 Fidalgo Kenai, Alaska 99511 cc Dear Mr. Kornelis: On July 26, 1985 I received a letter from Mr. Randy Ernest, Airport Manager, requesting clarfication on the appropriateness of using project funds for the Kenai Apron/Taxiway Transfer of Responsibility Agreement (TORA) to purchase taxiway signs. The purchase of taxiway signs can be included as a valid project expense as long as they are consistent with Federal Aviation Administration Advisory Circular 160/5340-188, Standards for Airport Sign Systems and Advisory Cir- cular 150/5346-44D, Specifications for Taxiway and Runway Signs. I trust this infottmatlon will be useful to you. Should you have other ques- tions, please feel free to contact me. Sincerely, Margaret E. Holland .Grants Program Coordinator Project Control ' /bec i 1 ; I .I i i i, i, i l- } CITY OF KENAI 110d ea#W of 44u" 01 210 F1DAL00 KENAI. ALASKA 99611 TELEPHONE 2N - 7635 July 269 1985 Ms. Margaret E. Holland Coordinator, Grants Program State of Alaska Dept. of Transportation & Public Facilities Pouch 6900 Anchorage, Alaska 99502 Dear No. Holland: We are in the procoos of ordering the three taxi guidance signs for the Kenai Municipal Airport Apron - Project No. D2047. We believe up to nine (9) additional guidance signs are needed on the existing taxiways for safe control of aircraft on the ground and that their cost is an eligible cost toward this grant. To stay consistent with replacement parts and maintenance of these new guidance signs on the apron project, the additional signs should be of the same type. Coats would include the purchase of the additional signs and installation. Enclosed please find a diagram of proposed now signs and their location on the taxiways. Numbers 5, 9 and 10 are the required signs for the now apron/taxiway. Please inform the City as to your concurrence that these guidance signs are grant eligible. Thank you for your cooperation. Sincerely, Randy Ernst Airport Manager RE/dg Enclosure i .1, n . rt _ - __ y.�.�_.� _ _ __ _ ___ _ • e. a:, QUOTATION PROM 1 �r • • • HVGiHEY & PHILLIPS, Inc. • • • 1► 3000 Naft h Calif orals 8treat, 8urb111k, Call Iorn1& 01604 W�u P.C. Box 0720, Burbank, California 01610-0720 OATS; 3 JULY 1985 CITY OF KENAI 210 FIDALGO CUP NO. Q04075A KENAI, ALASKA 99611 ATTNs MR. RANDY ERVST O RNO, LETTER AIRPORT MANAGER OATRO JUNE 17, 1985 WE AMC PLEASED TO QUOTE YOU THE FOLLOWING PRICE AND DELIVERY INFORMATIONS ITEM NO QUANTITY PART NUMSER AND DESCRIPTION UNIT AMOUNT SIGN Nc TAXI GUIDANCE SIGNS TO FAA SPEC L858Y AS PER LIST SUBMITTE WITH YOUR LETTERS #1 1 EA. 8858CLT—I-DF $654.00 12 1 EA. S85SCLT-I-DP 654.00 #3 1 EA. S858CLT-I-DY 654.00 #4 1 EA. 8858CLT-2-DP 1149.00 #5 1 EA. 8858CLT-2-DY 1149,00 #6 1 EA, 8858CLT-3-DY 1386.00 #7 1 EA. 6858CLT-2-SF 1002.00 #8 1 EA. 8858CLT-I-SF 579.00 p9 1 EA. 8858CLT-I-SP 579.00 #10 1 EA, 8858CLT-I-OF 579.00 #11 1 EA. 8858CLT-I-SP 579.00 #12 1 EA, 8858CLT-3-1)F 1753.00 ALL SIGNS COMPLETE. WITH PROPER TRANSFORMER, PRIMARY CONNECT R KIT, BASE PLATE AND FRANGIBLE COUPLING. (LESS LAMPS) FOBS FREIGHT ALLOWED TO SEATTLE. DELYs 5/6 WKS. PROX. ENCLs LUMACURVE (3) CCs LAROUCHE !_ IMPORTANT 11 1, LNOt OCi;tLIy1 Ag1M CULL ON THH1 Ii A fALtT10N 11 1UYJLCT TO CHANGE WITHOUT NOTIC[ •• f 2. TIOW: %IT 34 DAYS, N, /RICUs CO. 1,FACTORY, 1urlimM,CallfwWa, C.L. PHILLIS, SALES J y 4, TINw Plan wal m"s fors for • pria4 ed—orbys from tfis, how dnq, 1911 QUOTATION IS 1911191 TO OUR STANDARD TERMS INO CONDITIONS 1MOIIIN ON Tot RIVIR11 Not. TILE, flit) $41.1104 Ten,r NO,N4 Lighting - A#fpwt Runner Lighting, TWX i10.490-2252 t+t .-1 rOWMS Awteis h•er�Le. t)roim Mass oallo C e. t t rote st 1>) to q N»1 tw4.vus anyaleps - For Isiga► popooals vae Mvin apscipW,api from 964•3 KODIAK CONTRACTORS 220 N WILLOW KENAIv AK 99611 Phone 291-2 "3 T ` 40 F%oAL,,1&t0 SztzCr -_1-sNm, A 1.- __ q7 It Page No. _-_ _ of pages JrVVjjS;a j N1070 C II we he1reby propose to furnish, in accordance w4h $pecHlospons beiow or on attached pages, all material and labor necsssrry to oomplste the following a _ __ 1-� ID R�'rG.`TWNA6.. AmPv4.7 _ S t 4NS. � IC.NS ANO-�iArit3 C�►(1/s_ -- $NPP4.LGD gY.. DWNLR.. C40NG?"6T 6 PAWS 1--43,41L AN ?ALAr r ZD !. I MA'TGR�A►r.- W t L,A.., 8E BY GOty�C�Ac zo ft . C % j ND for the sum of�j.#x�L`7 JG'VtSIV /'iUA p"o AVP w rarusa» to Da a rouowr. f All met•nat b puuant••d to b• ss sp•aUfsd, All work b fo b• eomof•fee m s work• i j it mankk• nynn•r aecortl�np to standard practices. Any alttrabon or deviation from the Autho►fsed . ^ i aNOW a nM11attached come a dons inydvmg extra costs will be executed only upon written Signature -- -- �; orders, and win OICOnie sn exits charge over and above the estimate An agreements ' ii Contingent UP011 strikes, aCCid•nfs Of delays beyond our control Owner to Carry tore. kat0: This prapOsaf may be ts:�-9�do and other necessary insurance. Out works• are fully covered by Workmen'* withdrawn by us if not aocopted withln .-_ ____ _days . jeenption Insurance, _ _ _ _ _ Artr#ctar Df frnvosui — The above or attached prices, fpeeiffeattons and Oondltlons are satisfactory and are hereby SoCepted. You are Signature Skoili "d 10 do ton work es specified, Payment will be made as outlined above. -- Date dr Aocaptance; 8lgnatun II t ' i ' t r � r ' t 1 J `i TAXIWAY & RUNWAY SIGNS KENAI MUNICIPAL AIRPORT TWO-SIDED ONE-SIDED 1 A-� �-A * 7, B—C� 2 6-� :♦ s RA-3 * iv c C c , r 4 10 A-1 01 C * 11 � c —1-� .-C —1 A s <—RAMP 19 T j r 12+A_3oA_14;4A_IoA_3,� NEW SIGNS �- I I C,` mil.,_ •rf},t�,�K•:\ -"•' .'r. C,";'' i.i � 1, �*\��., ��`. M,y r,�,� :1).a ;, ti: _ t.,\ �! t,* ai. -•` '- ti', - -•=:rA :x rff'F,' i'' '(•T�w:,i,' � ,�• ��s.-4-.�: c: t• 'N; •f I T{.���Y "j! -'-(', J,•:..T l�,�+ � f•'. it p. r:':•:`tir•1,-i_., .. .i,..__-,�.. 1 '�• ;t 1 .!,L. 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SJ�"}`' 7. �..l�j_�•�... . .. ��� A X)c.. y� ' �:"J•�;.rr��'�`�;r!�'���'Ji',))��ti,lti,,�� ��' �`a1., t �l,,i� �,17, ��r��� t; � r _ `r•,,••��-:,•,�• fir'_"`�^,`_ •� iT.✓� •�T' �[,J jt,i:'J 'jgVjr, .i �. `�''`-'fir 7��% t -T�•( i:;', j.Z, ���, , r• `:�.J?: _�:.(� r J +� �+ ,� • 'Y' � 14' �. f ti �' � i'J%i �,- sl C/ yr;f`1y ,' '', 'i � ',\j+Ufi tt , '. f >S' ' •i,�\' ''t�''` � �"t� •,1��.f � / +„4t 'F a�Y;i^:.� C � T:v ,,'�i' �]Ve'r 'f," . i✓iY _ .�55% r i"�.;""�' 4 v t,.•r':,��t:'. •!,r!,\,-ice.' . �,,�,(S�t�\�4�"'3` �q ',:I;�' ��%'' �;,��•;{ 'J}'"'� r �„ Jr 1r.•,;t, L �!' �f�.���.:r,}:,i�-�v.,r�. �i.r's4�.- v�',�- ' �j; • �':• �.; •T„yrt -41,��,/, 'jl� f ;!'+{,�y) �•)y<.,;, ' , 7•`-;r: `•LJr•t `1,^.'• : �'�: " �" . ���y�!,r�i� ;.ir,,j.l.:+?- •,•�l�'�,t,.:v'�rf Sr'`,T'7.{l�'�.' �'Si' [/> . ,•I���,'w1• r.,r. ;,��r'l: —Ae't� l !f ' i,." l':•'eA",'li.Lr �,�atJir'•I�. ` ,iA {'��• CITY OF KENAI Ig 0J 210 FIDALOO KENAI, ALA8KA 00811 TELEPHONE 283. M5 August 2, 1985 TO: William J. Brighton, Y 9 City Manager FROMs Keith Kornelis, Public Works Director ) SUBJECT: Richfield Drive As you know, Richfield Drive was deleted from the contract on the Standard Drive, Richfield Drive, and Thompson Place project. The contractor , expressed his desire to complete the whole project at the some unit prices i he bid but deleting some items and reducing the depth of excavation and , '- backfill. When I was asked if the City would consider adding Richfield back into the project, I requested a cost breakdown. Attached is Wince, Corthell, Bryson's cost estimate. This proposal woulds • Reduce the typical section of excavation and backfill +� Delete 18" Flayed End Sec. • Delete topsoil Delete seeding b watering f With these reductions and deletions of quantitiess *• Original bid L 115,184.50 �I 'a 1 ` ;• Revised bid 68 340.00 :. Lower S 46,644.50 Even though I did not solicit this proposal I think it is worth consideration since the road is badly in need of repair, there are additional homes on the street since we last considered it, and it would complete this Valhalla Heights Subdivision improvements. KKsjal III f� , Y, I I e . - .K ., . nl. Nye• x,' ' WINCE • CORTHELL • BRYSON CONSULTING ENGINEERS ► O ton 1041 907.283.4672 K1NA1, ALAfKA 99611 i 1 July 29, 1985 i 1 i I City of Kenai 210 Fidalgo ( ' Kenai, Alaska 99611 I iAttentions Keith Kornelis As requested we have investigated the possibility of reducing the typical __- - section on Richfield Drive in an attempt to lowor the total price of construction for your consideration. The structural section was reduced to a total depth of 2.0 feet with 2.0 , foot ditches. There was also some minor grade changes made. The proposed 1 modifications resulted in a substantial reduction in unuseable excavation and i 1 borrow, however the useable excavation item increased. As requested topsoil and seeding was deleted also. Central Alaska Construction has submitted a revised bid proposal to construct 'P Richfield Drive in the amount of $68,340.00. a ry If you have any further questions, please contact our office at your earliest convenience. i 1 Very truly yours, WINCE-CORTHELL-SRSYON i Casey . Madden MORN corthell ►1 frank W Wine* ► 1 �r . , i . . . '^'1�V' T.'.'+ 1�111!IMF!bL'bUVIOtYinFrsN'.•.rw.,r„4..q.. , . .. _ • , DID PROPOSAL . RICHFIELD DRIVE - -- SCHEDULE _-Fi- ---- ------------ -- - eITEM2ESTIMATE :DESCRIPTION lWrita Unit 51d :UNIT-bID tTOTAL-bIDs s NO.sQUANTITY t Price in Words) s PRICE s PRICE s s----s----------s ------------------------------ 2 sU�s•ablu� Ixcavation type IV s s241 s ' : s C*.YY. _ < t a ` ��� ;•1+� �I j� ciiif. . t 2 l q i t s t s------__ _per Cubic Yard : s S� .S4o g� ------.------------------------s-_--------_--_------_ s s t202 + — sUnusable Excavation t 7 t i s t ------------- per Cubic Yard s'--»�--------sTYpQ_I_Classified �Fill f.4' - -; __ "-_---._»_ : -�'S� sbekfill s tC.Y. �—� : 7�NcT ? j s __ `-__»_-----par_Cubi c Yard---- ard- a s ---------- DSO �• �,ll I ,1 ! �s _ _s s ! a s s s sType III rClassified-Fill_&- F a 2204 r' :Fsackfill t s t C. Y. _ s s , 2 21 a _� ___—__-- ! ��j' : --_—_-------Per Cubic Yard s s s :Furnish 9A_ Install -1t�" Via.CMtz, s 3502� sCulydrt 14 Us. Galy. Steel t ,t = -- s _ ----------- s -per Linear Foot: s :Furnish & Install y1Fd" s Via. CMPS----------�'�"_"-'_ s s ten•., t Cul vortr 14 Oa. Cal •1. Steel,- s s s s s L. F. Linear Foot: ,mow s PLO b t 00 L thi UUMPAPJ'f C-9 I 11 I 1 l 1 1 1 1 1 BID PROPOSAL RICHFIELD DRIVE SCHEDULE B fITEM:ESTIMATE aDESCRIPTION lWrite Unit Bid tUNIT BID (TOTAL BIDE t NO.tQUANTITY : Price in Words) f PRICE t PRICE s : ----f---------:------------------------------:----------a---------t t s Furnt sh to Install Flared End s f t 1506 A200" f8t3 le" Dia. 16 Ora. Oaly. tEach t ..------------ per Each s : _ ----s---------s--------------------------------- --•--------t t�'�� : Trapsoi 1 :701 : 00, i+c-�%� ialJ% i _per 1000 S.F. : f ; ----f---------=------q-------------------------_-------_--__ : 702 s . : s 1000 S. s t ---per 1000 S.F. :Maintenance�Watarinyt-------- s s :703 s15.2 : s : : f : M. Ga 1. s : : = • �� _ , ___per M. pal . s _ a — /f- : -----f -•-- ---s-------------- ------------ ---s—__------s s s :Approaches : s : s 901 : S : a t s f •sEach Ife 4 ---/......per Each s s s s tExistinq-Utilities in-Constr.~:----------- s-_-------: s 902 f : Zon s SLUMP Sum s J, aO p Sum --- -- -: F$1DDINO COMPAr-ly ..�..ys.tl__.S-S�IMe-L C-10 J4 i BID PROPOSAL i RICHFIELD DRIVE - - -- SCHEDULE B- ----- - --- - - aITEMsESTIMATE sDESCRIPTION�(Write Unit Bid sUNIT BID :TOTAL-BIDi a NOMUANTITY s Price in Words) s PRICE i PRICE s i----t---------2------------------------------:----------i---------: t t :1=urnish & Install Post Yt Sign ,t s :Each _--- ---- --• ---- ------------pFr-E��ch__-_ _--------- s -s s Rr�move & Dispose of -,Pipe. ^s i i -- s 9D4 s 7b s : L. F. Foot ----� -�---- -- '.._____-_Per_Linear-----__•__»_._____ --------- s s s t- :Ra ocatCA isting ost� s905 11 :OFficq.SCluster Box s : ` t sEach . �ji i s s Each _.....--,-------ss --------------- -------------------- • _- _____..._• t _s s 2 s s _s s s s s: :—.--___---------------__- --_.— r-----------------per------------------------------- s ' TOTAL SCHEDULE B __ _ � .,:_�/._...`,_ � •• _- -- TOTAL ALL 8,3"4 . t I urn t r s G t�uMF ._. _ � _ �� C �•� . _ _ l / C-11 i 1 1 I, .., .•�.. .. I-. .., . r= �.. WINCE CORTHELL BRYS O N CONSULTING icNi"INEErTIS . BOX 1041 KENA1, ALASKA 99B'!i'� BOX 3 a 394 ANCHORAGE. ALASKA 8856. ' SUBJECT IJC13 NO ENOR. OAT13 CHECK OATH o ; tx illlllli !lil '� ; 1; ,� it li!illt ji I �!� ;Iri , ; ';il 1 I . i i;. 1 Irl; •�� , 111 i I!I!i i ! Sy. =v *y►e �t i r r JAat�� i ! !17 ;rill `�, .t• 1 • !i (i►,Ir!;I�liii I I!III ! I •AIM Irf O F 671CAVN I ! I�I,II llI`: r�i' lfijlj{ �( ;ill I;I raaa+iusEAQIt�E.rC. I(t I " '� ; I�Iif �Ii !!i!,Irj;► 11�;'ii I( i'il' li I( ! I �!i '!`�1'�'�� �►� I ��, ,� !i�1I� I .��li', I �i{� f �I�Ifi�I I II I Illr' I I r � +II 1 II I I I� l it � i 'It � 'Ir!!rj�:�Illi�l! il{lIi' I r{I�►j i it 1 i V/J4, AAA •P I11• 11 I, . r• r y r .SE G/O�t/ �ir I r 1 , I I 1(( 1 1 , �! jl; ;•� TYPE• t �;:; „ ;11 ! f;�l!II�; ,; t'l4ra4ffr 4C#.4,VCrE6 ! 7u, 71 t . yoo •/• . wwl: •1111R N1x NO CARBON PAPER RiOWRED. YVae at write on Ortatm — imPrearmt wrw eulams" el4 ePPltt On copies O8Meln { UNCE-CORTHELL•BRYSON OATS: m�e 2r— Ys PatoalTr Cl URGENTI C M P. 0. BOX 1041 ' KENAI, ALASKA 99611 Ru xo. El SON "POSSIBLE ❑ NO REPLY NEEDED ' �� ATTiNt10N: `j � (907) 283-4672 c III'�F�T��C• ,6t.L�cIS,�A �G��✓lTjL�llTi�ii/ G2IE��E M 2.cXe•CA-0 />21f'C '4~4.7 �Fs�ia�niT 2Gc9t�l7 /J2c�OS.� 770E Ces y t� /l�.v.a� TD .t�GciC�. 77VOCE c•r/.o.�<.�.s . . - - - s �� �cT �scsrl� ,z-,.,uo,� c4�-��c c�w�GE.r ,�r •�.o ,a ,c.u..ou¢E mw %tee sEc'T/0.✓ Z3, .00 Z � '3/TGN i4w.o va dF �. E ..................... Si7Ll�.lTit�laC s fc i`�d�/. • SIGNED: R..... ................ E........................... . P L.................................. Y SIGNED: SENDER: MAIL. RECIPIENT WHITE AND PINK SHEETS. ;:• - /� l;. ' r- ti ; �: RECIPIENT: WRITE REPLY. RETURN WHITE TO SENDER. KEEP THIS PINK .. .. . .-rl:.r ,vv.. ..,:•�;�r.,xr.{y,is•4r�.�.%hl:f4i'�►"�"�2t:i'FJ''"-�It'9/�'3FE4'/�.r%��t t' t 'I 1 o� I . . 4 • I� i. r v 1. f� _ - Action: Enacted KENAI PENINSULA BOROUGH 2y262728293o�j b ORDINANCE 84-43 N � � �G!!A ., ff �� 01 SUBSTITUTE N� �oF�^' �b kSTABLISHING THE KALIFORNSKY FIRE SERVICE AREA gjPRpU-1D�FIRE PROTECTION SERVICES, AND PROVIDING FOR AN ELECTED WHEREAS, a public hearing was held by the assembly on May 30, 1984, in the Borough Assembly Room to determine the necessity for this service area; and WHEREAS, the assembly finds that fire protection services are needed and desired by the residents of the proposed service area; and WHEREAS, the assembly finds that the residents of the proposed Kalifornsky fire service area do not desire to incorpo- rate themselves at this time; and WHEREAS, the assembly finds that annexation of the proposed Kalifornsky service area to the city of Kenai is not feasible because an attempted annexation has recently failed; and WHEREAS, the assembly finds that provision of fire pro- tection services by the proposed Kalifornsky fire service area by the existing Ridgeway Fire Service Area may be impractical because of inaccessibility of the proposed area to the existing area; and WHEREAS, the assembly finds that provision of fire pro-tect-inn services to the proposed Kalifornsky fire service area by t the existing Central Kenai Peninsula Emergency Medical Services Area is impractical; and WHEREAS, such fire protection services therefore cannot be provided by an existing service area, by annexation to a city or �.. by incorporation as a city; and WHEREAS, such fire protection services can best be provided by the establishment of a service area of the borough; " NOW THEREFORE, BE IT ORDAINED BY THE ASSEMBLY OF THE KENAI i PENINSULA BOROUGH s Section 1. That Title 16 of the Kenai Peninsula Borough Code of Ord1nances is amended by addition of this chapter: Chapter 16.64 J`..� KALIFORNSKY FIRE SERVICE AREA Kenai Peninsula Borough Ordinance 84-43 Sub. Page 1 of 6 Pages i f . i E I a , Sections: 100) 16.64.010 Established --Boundaries 16.64.020 Board of directors--Established--Meetings 16.64.030 Board --Terms and qualifications 16.64.040 Board --Powers and duties 16.64.050 Board --Election of officers and quorum 16.64.060 Board --Vacancies 16.64.070 Board --Bylaws 16.64.080 Fiscal procedure 16.64.010 Established --Boundaries. There is hereby estab- lished a fire service area w t n t e borough des; nated the "Kalifornsky Fire Service Area" in that portion of the borough described as: All following referenced to Seward Meridian, Alaska; Beginning at the corner common to Tps. 3 and 4 N, Rgs. 10 and 11 W; Thence west along the line common to Tps. 3 and 4 N, R11W, to the corner common to Sections 3, 4, 33 and 34; Thence, in T3N, R11W, southerlyy along the line .common to Sections 3 and 4 to the N 1/16 corner common to said Sections 3 and 4; Thence westerly along the north 1/16 line of said Section 4 to the north 1/16 corner on the line common to Sections 4 and 5; Thence northerly along said common line to the corner common to Sections 4 and 5, T3N, and Sections 32 and 33, T4N, R11W; Thence, west along the line common to Tps. 3 and 4 N, R11W to a point on the east line of U. S. Survey Number 83; Thence, southerly along said line of said U.S. Survey to the mean highwater mark on the right bank of the Kasilof River; Thence westerly and northerly along the said mean highwater line of the right bank, Kasilof River, to the point of intersection with the mean highwater line of the easterly shore of Cook Inlet; Thence continuing into Cook Inlet, N 450 W to a point that is 1,320 feet westerly of the said mean highwater line of Cook Inlet, as measured normal to the said highwater line; Kenai Peninsula Borough Ordinance 84-43 Sub. Page 2 of 6 Pages ._! K I - n Thence northerly along a line that is 1,320 feet westerly of the said highwater line of Cook Inlet, as measured normal to the said highwater line; to a point on the westerly extension of the line common to ;ec- tions 7 and 18, TSN, R11W, said point also being on the southerly corporate boundary line of the City of Kenai= Thence following said corporate boundary line in TSN, R11W, east along said line common to Sections 7 and 18 to the corner common to Sections 7, 8, 17 and 18; Thence southerly along the line common to Sections 17 and 18 to the corner common to Sections 17, 18, 19 and 20; Thence east along the line common to Sections 17 and _._ 20, 16 and 21 to the corner common to Sections 15, 16, - 21 and 22; Thence northerly along the line common to Sections 15 and 16 to the 1/4 corner common to said sections; Thence east along the east -west center 1/4 line of said Section 15 to the 1/4 corner common to Sections 14 and ' 15; r Thence southerly along the line common to said Sections 14 and 15 to a point on the mean highwater line on the left bank, being the southerly side, of the Kenai River; Thence easterly, northeasterly and southeasterly along the said mean highwater line of the left bank, Kenai River, to a point on the line common to Sections 7 and 18; Thence, leaving the corporate boundary line of the City of Kenai, continue along said left bank mean highwater line southerly, westerly and southeasterly to a point on the N 1/16 line of section 30; I� Thence east along said N 1/16 line of section 30 to the {y thread of the Kenai River, bein a oint the corpor- ate boundary line of the City of Soldotnaon ate Thence following said corporate boundary line, south- westerly along the thread of the Kenai River to a point on the line common to Sections 25 and 30; Thence west along the said line common to Sections 25 "---- and 30 to the corner common to Sections 25, 26, 35 and 36 ; Kenai Penin uI Borough Ordinance 8 -1�3 Sub. Page 3 of 6 Pages I i I 'r f I r � I I J t Thence southerly along the line common to Sections 35 and 36 to the standard corner common to Sections 35 and 36, on the south boundary of TSN, R11W, being common with the north boundary of T4N, R11W; Thence east along the line common to Tps. 4 and 5 N, R11W to the northeast corner of said T4N, R11W; Thence leaving the corporate boundary line of the City of Soldotna, south along the line common to T4N, Rgs. 10 and 11 W, to the corner common to Tps . 3 and 4 N, Rgs. 10 and 11 W, being the point of beginning. 16.64.020 Board of directors - -Es tab lished--Meetin s. A. There is hereby established a board of directors for the Kalifornsky fire service area composed of five (5) members who shall be nominated and elected by the qualified voters of the service area in the manner provided for candidates for assemblymen in the Borough Code of Ordinances, except that members of the board shall be residents of the borough within the service area. B. The board shall meet periodically at regular and special meetings called by the board. All meetings shall be open to the public as provided by law. 16.64.030 Board --Terms and qualifications. A member of the board of directors s a e Mected for a term of three (3) years and shall serve until his successor has been elected and sworn to assume the duties of the office, except that the first board shall contain at least two (2) staggered terms as designated in the resolution providing for the election. 16.64.040 Board --Powers and duties. The board of directors of the service area, subject to assembry approval and appropria- tion of funds, shall supervise the furnishing of fire services within the service area and shall advise the mayor and the assembly concerning the administration and operation of the service area. 16.64.050 Board --Election of officers and 5uorum. A. Three members of the board shall constitute a quorum; however, any action shall require the affirmative vote of three (3) board members. B. At the first regular meeting following certification of the election by the assembly, and annually thereafter, the board shall elect by majority vote of the board members, and from the board members, a chair and such other officers as the board deems to be desirable. These officers shall hold office until their successors are elected. 16.64.060 Board --Vacancies. A. Vacancies on the board are created upon a ec arat ono vacancy by the board if a member: Kenai Peninsula Borough Ordinance 84-43 Sub. Page 4 of 6 Pages 0 1. Fails to qualify or to take office within thirty (30) days after appointment; 2. Is physically Absent from the service area for a 90-day period unless excused by the board; 3. Resigns; 4. Is physically or mentally unable to perform the duties of his office, as determined by a majority vote of the board; 5. Is removed from office: 6. Misses three (3) consecutive regular meetings unless excused by the board; 7. Is convicted of a felony or an offense involving a violation of his oath of office. B. Vacancies on the board shall be filled by a majority vote of the remaining board members until the next general election of the borough, at which time a new member shall be elected to fill the unexpired term or for a three (3) year term if no unexpired term remains. 16.64.070 Board --Bylaws. A. The service area board may adopt bylaws or regulations governing the conduct of its affairs so long as these bylaws are procedural in nature and do not 1 conflict with the rules, ordinances, statutes and regulations governing the service area board. B. The board may establish various committees and appoint members to them. 16.64.080 Fiscal procedures. A. All contracts for capital improvements and maintenance performed in connection with the service area shall be bid and administered by the Borough depart- ment of public works in accordance with the department's normal procedure for the letting of contracts. B. The purchasing agent for the service area is the Borough director of finance. All purchases of supplies, materials and equipment shall be made in accordance with the rules and regu- lations adopted by the borough assembly. C. The service area board shall arrange for the preparation of a budget and capital program which shall be submitted to the mayor and assembly for approval. The budget and capital expendi- tures proposal shall be subject to the procedures for adopting the borough budget and capital expenditures program and for consideration of such items by the borough assembly. A. The service area shall abide b the fiscal y policies and procedures applicable to the borough general government budget. Kenai Peninsula Borough Ordinance 84-43 Sub. Page 5 of 6 Pages '.1 I 0 E. All accounting functions of the service area shall be performed under the supervision of the Borough director of finance, who shall provide rules and regulations and procedures governing the issuance of vouchers, the payment of vouchers, the issuance of checks, the payment of checks, the use of the central treasury of the borough, and the manner in which all bonds, contracts, leases or other obligations requiring payment of funds for the appropriations of the service area budget shall be processed and administered. F. The service area shall not hire any personnel without the approval of the borough assembly. Unless otherwise provided, the borough personnel system and Title 3 of the Borough Code of Ordinances shall be applied to any person employed in connection with the service area, excluding independent contractors. G. No tax levy for operation of the service araa shall exceed 2 mills unless the question of abolishing this 2 mill limit is approved by a majority vote of the people residing within this service area at a regular or special election. Section 2. That this ordinance takes effect on July 1, 1986, only after approval by the voters of the service area at the regular borough election to be held on October 1, 1985; except that KPB 16.64.080 (G) setting a 2 mill limit, takes effect on July 1, 1986 only after., approval by the voters of the service area voting on the question of the mill limit at the regular borough election to be held on October 1, 1985. ENACTED BY THE ASSEMBLY OF THE KENAI PENINSULA BOROUGH ON THIS 16th DAY OF July , 1985. r yn c seem y res ent Kenai Peninsula Borough Ordinance 84-43 Sub. Page 6 of 6 Pages G-G CITY OF KENAI G--17 4 4"00 210 RIOALaO KENA1, ALASKA WWII TBLVXONB 283. MO August 6, 1985 J 1 TO: Wm. J. Brighton, City Manager FROM: Keith Kornelis, Director of Public Works REs HEA Meeting with Council and City Administration r August 6, 1985 As a result of the subject meetings 1. City Administration recommends Council approve accepting HEA offer of a not -to -exceed figure of $25,000 cost to the City for HEA relocating power line along Marathon Road. i - City Administration recommends Council introduce and pass Ordinance 1079-85 appropriating funds to replace existing obsolete street lights. Public Works is opening bids on August 20, 1985 and recommends awarding the bid at the Council meeting of August 21, 1985. .. ; 6,17 3. HEA is going to look into providing a standard for all ' Peninsula for fixtures, cities now street lights - poles, 1� ballasts, light bulbs. They are going to look into establishing a street light cost or charge for two different options. I a. HEA paying all capital costs (all inclusive) and billing ;tt cities along with monthly power costs. c b. Cities providing capital costs (following standards) and HEA providing energy coats only. j KK/jet J- ccs Ron Rainey, HEA r � ti s • i T / M CITY OF KENAI %Od Oapd4l 4 4"'t 210 RIOALGO KENAI, ALASKA 40611 TELEPHONE 283.7536 August 69 1985 TO: Wm. J. Brighton, City Manager FROMs Keith Kornelia, Director of Public Works RE: HEA Meeting with Council and City Administration August 6, 1985 1. Relocation of-HEA Power Line Along Marathon Road Attached is a copy of the new estimated not -to -exceed cost to the City to relocate this line. The new cost is $259000 - substantially lees than the $60,000 old estimate. The reason for the lower cost is a 70 percent credit to the City since HEA is improving their system. 2. Street Lights Attached is a copy of my letter of June 27, 1985 and March 15, 1985 and City Electric's letter of March 7, 1985 concerning street lights. The questions that I have for HEA ares A. HEA use to install a street light for $25 and bill the City monthly. Why will HEA no longer do this? B. We have been told that each new light will require metering. The City is presently thinking about adding 47 new lights that are spread out throughout town. Because most of the lights are not located near another light, it would almost take a meter for each pole. Annual cost is estimated ats $ 15/pole - R do M $499/pole - KWH $348/pole - Meter Charge $862/pale $862/pole x 47 poles = $40,514 It This seems rather high. Is there anyway to go to a flat rate without metering and the $348/year/pale. Possibly averaging out the power consumption on our existing metered lights and charging that cost to each light that is not metered. C. There are many lights (estimated 59) in Woodland, Redoubt Terrace, and Inlet View that the City has been paying a monthly charge which is to include not only the power but repair and maintenance. HEA recently informed us that the fixtures and ballasts are no longer available and that the City would have to replace them. The City is receiving bids on August 20, 1985 to replace these lights. A copy of the specs will be given to HEA for their review. The question iss Will HEA continue to bill the City monthly and repair and maintain these lights, including replacment when needed? Should the City order extra ballasts, fixtures, light bulbs for HEA and would HEA repay the City for the extras? How many extras? D. The Public Works Department appreciates the cooperation we receive from HEA on our construction projects. We have three projects we are doing this year that are going to require extra cooperation because of the many utility conflicts. They are s Project Contractor Engineer 1. Marathon Road ? Bids Shortly DceanTech 2. H.A.S. Construction Unlim. Nelson & Assoc. 3. M.A.P. Zubeck, Inc. McLane & Assoc. The H.A.S. project has started; the M.A.P. project should start within two weeks; and the Marathon Road project should start within one and a half months. KK/jet i i' i i J. j i e Y,. J' r Letter of Agreement } ,Y for f City of Kenai - Marathon Road Relocation HEA W.O. No. 1200/900104 `Dip, ,J The City of Kenai (the City) has requested that Homer Electric Association, Inc. (HEA) relocate one 33 kV transmission line pole and approximately one thousand ft. (1000 ft.) of existing distribution line and related distribution equipment. The City desires to have HEA power lines moved so that the City can relocate Marathon Road and make City property more desirable for future lessees or purchasers. Work to be performed by HEA under this agreement is described below and on Drawing No. 1 which is attaced. Description of work to be performed by HEA includess 1. Retire distribution tap equipment at location number 0473. 33 kV transmission line and underbuilt distribution line will remain at this location. 2. Retire distribution line and equipment at location numbers 0572. 0571, 0569, 0668, 0666. 0664, 0662, and 0760. 3. Install new underground three-phase distribution line and equipment from location number 0768 to 0760. New line will provide service to FAA loads presently being served by facilities to be retired in items 1 and 2 above. 4. Relocate 33 kV transmission pole and distribution line underbuild at location number 0673 to location number 0773. Estimated cost of work to be performed by HEA is $42,688.00. Estimated credit for system betterment allowed at 70% of cost to relocate distribution line, items 1, 2, and 3 above, is $21,238.00. Net estimated cost to City for relocation described in items 1, 2, 3, and 4 above is $21,450.00. The city shall be billed actual project cost including credit not to exceed $25,000.00. The City shall be allowed a credit for system betterment calculated as 702 of actual cost to relocate distribution line described in - items 1, 2, and 3 above. Estimated cost DOES NOT include removal of existing earth berms between location numbers 0768 and 0760 or relocation of existing FAA facilities underbuilt on HEA poles. It is agreed that the City will remove the earth berm between location numbers 0768 and 0760 to finished grade so that HEA can install their power cables. If HEA is required to remove the earth berm between location numbers 0768 and 0760, the City will be billed for additional work involved. Acceptence of terms of this Letter of Agreement by signature below shall serve as authorization for HEA to proceed with project construction and bill the City as discribed above. Accepted by City of Kenai By Title Accepted by Homer Electric Assoc.Inc. By Title Date Date r Q&L EbLimate City of Kenai - Marathon Road Relocation I;L•�i���ip HEA W.O. No. 1200/900104 July 6, 1985 Description of Work Retire existing distribution line and equipment at location numbers 0473,0572, 0571, 0569, 0668, 0666, 0664, 0662, and 0760. (Items 1 and 2 in Letter of Agreement) Install new 30 distribution line and equipment between location numbers 0768 and 0760. (Item 3 in Letter of Agreement) Total for new construction and retirement for distribution line Engineering @ 15% of labor and material HEA overhead and administration @ 25% of total labor cost Total L&M, Engineering, overhead & administration for distribution line relocation Relocate transmission pole and distribution underbuild from location number 0673 to location number 0773. (Item 4 in Letter of Agreement) New Construction Retirement Total for transmission pole relocation Engineering @ 159. of labor and material HEA overhead and administration @ 25% of total labor cost Total LAM, Engineering, overhead & administration for transmission pole relocation Summary of cost charged to City Relocation of distribution line Relocation of transmission pole Plus 107 contingency Estimated total project cost Less 70% of distribution line relocation as system betterment Estimated project cost to City Total Labor Material L & M $ 5,021.00 $ -0- $ 5,021.00 91080.00 8,480.00 17` 560.00 14,101.00 8,480.00 22,581.00 3,387.00 0- 3.387.00 17,488.00 8,480.00 25,9 .00 4,372.00 — -0- .. 4,372.00 $21��60.00 $ 84480.00 $ 30�3`40000 $ 4,093.00 1,364.00 5, $ 524.00 -0- 524.00 $ 4,617.00 1,364.00 5,981.00 897.00 6,354.00 -0- 52 M. 897.00 19,878.00 11589.00 -0-- 1,589.00 $ 7,943.00 $ 524.00 $ 8,467.00 $ 30,340.00 8 467.00 ,883 .00 3 881.00 42:688.00 (21.238.2OZ $ 21 1 s' I f HOMER ELECTRIC ASSOCIATION S INC. ALASKA S KENAI i 7 .9 k. / If0 N I2 eo SHEEP AL_ y 1 JOB N 4001Dk OFF 7 OBSION KV, ! g TWP.6'b(, j RANGE I i W SLCTIOs-3- -,• • LEGEND ♦�♦♦ O EXISTING POLE ' t� pq=3% ♦ O NEW POLE ?� O EXISTING OVERHEAD TRANSFORMER - ` S. ♦ NEW OVERHEAD TRANSFORMER NEW ` PAAMOUNT TRANSFORMER O�� ♦ -- EXI!)TINi OVERHEAD LINE GS�1 ♦ ♦ — —(A — — NEW UNDERGROUND LINE oS61 EXISTING ANCHOR % % E•-- NEW ANCHOR �% pncQ wwre ai�>•t�aurii ♦ � � 061 "-R-. b1 W ROAD _ - M A q TH ON OIL. RpA1) ' N, INOi6'f Ou ` CiLO h C RAYCROFI i CHRYsLE A OEAl.EiiiNIP ^•^ 0/4-rR/ Aar/04) taJM .4-40 AWPAI&Wr 70 aid 40ri4eo AwA WA&jro rOl dire .�.�'NLwI .► KNO�'CdRIkND 4/NC 1 0A 11lH![/I avr ewrm"dro A/1'O A/"*0 To G/ry h;, I I IL 1•RANa01166/00 1/4r-'lO ?6 ISttOGA7L0 IINO 8/46Q0 ?if Y. '°�° ..._—t1 to ����~ DRAWING NO 1 's AUGUST _ 2, (985 CITY OF KENAI eapddl 4 44UU If 210 FIDAL00 KENAI, ALASKA 09611 TELEPHONE 283.7535 June 27, 1985 TOs Wm. J. Brighton, City Manager FROMs Keith Kornelis, Director of Public Works REs Street Lights for Council Meeting of July 3, 1985 1. A year or two ago a Councilperson requested street lights in various areas around town including some areas on Forest Drive, Main Street Loop, etc. Council looked at the individual spots and made a decision on some of them. We subsequently contacted HEA and had them installed. 2. An individual in VIP approached the City Council for installation of street lights especially along bus routes in the City of Kenai. Council directed the Administration to approach the Burton Carver Bus Company and ask for ideal locations for lights along the bus routes. I contacted Burton Carver and received a list of 40 locations for street lights which I mailed out to City Electric, Air Tek, and HEA. A copy of this list is attached as Attachment A. 3. I received a cost to install the 40 street lights and submitted a letter dated March 15, 1985 for the Council Meeting of March 20, 1985. This letter is listed as Attachment A. The letter showed a capital cost estimate for the 40 poles at $56,000 with an annual cost of $34,480 per year. That letter also pointed out that e e a .L additional 27 440 to -replace the fixtures and ba sta an e eet11—gRth—in-Woodlandy Redoubt Terrace and Inlet At this Council Mee ng, thee Council directed us to reevaluate the annual cost estimates to determine if the estimate I received from City Electric is correct. 4. At the next Council Meeting of April 3, 1985, Charles A. Brown submitted a letter dated March 27, 1985 which is Attachment B. Basically, this letter states that the figures that I showed on the March 15, 1985 letter are correct. ;v 1 5. Recently, I have taken the list that I received from Burton Carver and have found that the following street lights can be eliminated from the list. a. Walker Lane and Airport Way - (1) There are lights already on the Spur Highway near this intersection. b. Walker Lane and Airport Way - (2) There are lights already on the Spur Highway near this intersection. c. Fourth and McKinley - This could possibly be deleted since there is a yard light on a pole near the intersection that appears to have been installed by the residents near that corner. d. Gill and Fathom - There already is a small street light near this intersection. e. Toyon and Forest - There already is a street light at this intersection. With the deletion of these items, the Burton Carver list is now as followss 1) Fourth and Evergreen 2) Second and Evergreen 3) Third and Evergreen 4) Fourth and Forest 5) South Stellar and Forest 6) Forest Drive and Elm 7) Robin Drive and Spur 8) Cook Inlet View and Lilac 9) California and Second 10) Redoubt Avenue (1) 11) Redoubt Avenue (2) 12) Redoubt Avenue (3) 13) Redoubt Avenue (4) 14) Spruce Street - Ballpark (1) 15) Spruce Street - Ballpark (2) 16) Fourth and Spruce 17) Kaknu and Candlelight 18) Linwood and Kaknu 19) Kiana and Candlelight 20) Lawton and Wooded Glen Court 21) Beaver Loop and Juliussen 22) Beaver Loop and Dolchok 23) Bridge Access and Sprucewood 24) VIP Drive and Baleen 25) VIP Drive and Set Net 26) VIP Drive and Sanddollar 27) VIP Drive and Muir 28) VIP Drive and Lora 29) Sunrise and Lora 30) Sunrise and Muir 31) Sunrise and Set Net 32) Sunrise and Pirate 33) Sunrise and Ketch 34) Pirate and K-Beach 35) Bridge Access and Child's Street across from Port Kenay r! r r• r • �.cs� } 6. We have also received requests for street lights in various areas of the City and have also noticed intersections that would need them just as much as the ones listed above. Therefore, the following street lights could also be added to the list. 1) Spur and Evergreen 2) Fourth and Haller 3) Fathom and Toyon - Relocation and Repair 4) Midway on Stellar Loop near cul-de-sac 5) North Stellar and Forest 6) Forest Drive and Fifth 7) Spur and Lilac 8) Wildwood and California 9) Spur and Redoubt 10) Spur and Linwood 11) Linwood and Aliak 12) Candlelight and Aliak As you can see, there are quite a few intersections around town that could use illumination. Unfortunately, at a cost of 11,400_ Oer oole clus the annual cost of $862 per pole, it becomes very expensive. Using the above locations: CAPCAPPI�TALs 47 poles x $1,400/pole �65,800 ANNUAL: 47 poles x $ 862/pole = E4D,514 99/jet J 1 ' C /4771AC0 0CNT CITY OF KtNAI „od ea,cdai aj 4" 310FICALOO KBNAI, ALA8KA OU11 TOMMONB 283. 7636 March 15, 1985 TOs William J. Brighton FROM: Keith Kornelis SUBJECTs Street Lights along bus routes. FORS Council Meeting of March 20, 1985 Attached is City Electric's letter dated March 7, 1985 which outlines the costs for installing street lights along the bus routes within the City of Kenai. The second and third pages list the location of the 40 street lights and the costs for installation (capital), repair and maintenance, and annual operating costs. Some things to notes (1) City Electric recommends using 250 watt high pressure sodium street lights and I have based the below rough cost estimate on that. ;.'..'. (2) City Electric's cost did not include HEA connect costs ! (I estimated $118/pole) nor actual staking. (3) City Electrics cost are for using wood poles not steel in concrete bases. (4) All cost are only rough estimates - because the cost is 'I over $6,500 we will have to go out to bid on the project. { F.i ir } s� • i } i •r., q , 1 t Rough cost- estimate for 40 poless CAPITAL COST ESTIMATE $1,282 / Pole - install 118 / Pole - HEA o e $1,400 / Pole x 40 Poles =156,ppo. ANNUAL COST ESTIMATE $ 15/Pole -R&M $499 / Pole - KWH $348 / Pole - Meter CHG / o e $862 / Pole x Poles a $34.480lYr. The street lights in Woodland, Redoubt Terrace, and Inlet View are no longer being manufactured. HEA can not get replacements and have suggested we replace the light fixtures. City Electric has given us a cost estimate of $490 for each unit. HEA has estimated that there are 56 lights in these areas. So at $490/ea we would have a cost of $27 440.00. I might point out that presently as these Ilgnts are bu—rne7 out we can not fix them. T �� X-P /01(0 I T / y --� C J j`t i C. 11 N C. ELECTRICAL CONTRACTORS 3700 RAINIQR AVENUE 50 SCATTLE, WA9NIN4TON 06144 1206) 722,0700 POST OFFICE 00X 3698 ANCNORA4E. ALASKA 99501 19071 272.4531 POST OFFICL L09 40303 "AIRCANKtr .:LA69A 09706 19071 462.716s ROUT[ I COX IIS 99NA1 4LA9KA 09611 '907/233.7969 3-7-85 R[PLY TO Xena.i Office City of Kenai R<rERCNcE 210 Fidalgo Street Kenai, Alaska 99669 ATN: Keith Kornelis BE: Additional Street Lighting. Gentlemen; I aplolgize for the delay in returning this proposal, but have worked the r ' following for your consideration. 1- I would recommend onlv 250 watt Fiieh pressure Sodium for street litzhting, simply , a 250 watt HYS has approx. 27,500 Lumens of output for 250 watts of paver consumed, the 400 watt :Sere. has 22,500 Lumens of output for 400 watts of paver consumed. 2- Iabor costs to install would be the same for both units, but the Merc. fixture and lamp costs more. Lamp replacement are $35.00 for 400 watt Wee. and $27.00 for the VS. Both are rated 24,000 hours lamp life, and our cal- culation of costs are based on an average of 150 FIRAIO 0 4.5 cents/KMI, plus a monthly fee of 1,429.00. These should last for ten years. The repair and , maint. cost of 515.00 per unit is for vandalism. The 250 watt FPS fixtures are quoted with Lem lens, which should elimenate glass breakage. Our quote Is valid for 90 days and is a firm quote, based on the attached drawings. Mr mteta- If you to pursue this project, we couldC out t poss- ibilityof plowing cable between poles, thus eliminating the $29.00/mo for each meter. The best area would involve poles 29 thru 39. We have excluded actual staking of -'the individual poles from our quote. �O I have also submitted a proposal for the replacement of the existing post lights y in Woodland and Redoubt subdivisions, with new GE C72L'1M91 150 watt BPS, 'o using existing UG wire at the present voltage. fop �� These uould cost 8490.00 for each unit, including labor, fixture and lamp. Yours y; 0 ank lovsky City Electric Inc Kenai Division ,_FA/aa CITY ELECTRIC I I J � I I q Capital = Capital : R 6 M R 6 M S/Yr Qpor $/Yr oper SIRLEI LIGHT Mercury Sodium Mercury $/Yr Sodium $/Yr Mercury Sodium 1. Walker Lana 6 Airport Rd (1) ; sm.00(MVI) 318.00 (12.1n.21C11(i),348.00 4(A.r1) (K!111,)�, (W,II7t(1(i) 0 1 316.00 PA. 1 Walker ane & AirportIJ 1 IF o 0 to 0 to o it of of IF IF rill it to of It IF ( —,-- Fourth A Lverrjrecn q IF0 0 o IF IF rr IF IFu u n IF rr IF rr u 4. atcanl 6 Everigreen u o n o o u n o n n n rr n n rr n o a 7 1 ourtIs A f Oreat n n a n rr n o 0 0 o u u of of to of to n fourtto 6 McKinley of to it of it o nr it to o of to It it to to it of 7. Gill A t at loom of It of it is of IF of of rr • o u It 0 0 to if o Stellar 6 forest , of of of to to to 0 0 to to of it IF n of of of to oyan & rareat it to of of ,o to to to of It of to of of to to it . 10. forest 6 Elm o o is of rr to of of to to OF to it it to of to to Rabin Drive 6 Spur 0 0 o u o n o n o o rr o u u o n n a . Cook Inlet. View 6 Lilac o n o e rr o rr o o e n rr u e o u u rr 3. California 6 Second o n o 0 o rr o o rr o n o o n u u e n . Redoubt Avenue (1) of o u o e n e e rr o 0 o n•• o rr o o n �--rF.- Redoubt Avenue 2 to n o 0 o rr rr o o rr n o u o to of It to 1 04 V 01140 .r o n o 0 0 to it of of It IF to o It IF of n .... . Redoubt Avonuo 4 n o 0 o n o o e u o 0 o u o n n rr rr W. 'rpruce st - 11411pork 1 u rr o 0 o rr o n n n n rr o u o rr n rr i - I� Spruce St - Ballpark (2) p r rr of It rr rr rr .r rr rr rr rr rr rr rr rr rr rr rr " r .y A ( 20. f ourtb 6 Spruce + PA. 1.282.00 PA. k9r, 18.00 la PST. ti 25,M PA. AAf1.fY1 (I4(lp 11$_(xt tirf -R CIM 409.00 (1M. 1) 348.00 (1= p ) �. • • f I , •. j 1 , r f J . i Capitol : Capital = R Al M R b M $/Yr Oper S/Yr Oper 5I111i:1 1IGHT Mercury Sodium Mercury $/Yr Sodium $/Yr Mercury Sodium 21. KaArltl b Caa/itolight 1 300.00 1?A 1 282.00 PA. WT. 15.M 1A MT. 1!t•00 IA. MCA (KIYII) 40f).00 (!!IY►i) . . 3' R fN) .fl'.I'h (1N' 3.18,(N) 61I•.'fI' (iN 22, Iiltfd b iYllfl)te Ct1 o n rr u u u rr n 11 11 11 Ir 1/ 11 11' 11 rl 11 - -- 23. L Inwood A Rakitu to 24. Klasin & Uniodleligilt Ir 11 r1 1/ /1 1/ 11 11 11 11 11 tl 11 11 11 11 11 rl 21. aM on 6 14LIS /r 11 tt 11 rl 11 11 11 II Ir tl 11 11 11 tr rt 11 rl b. Heaver Loop a jullusnen u it ml of of to of 0 27. Uouver Loop b Do chok rt to o to to to n rr v n n Ir to n It n n 1 28. bridge Acc000 A Sprocewood 11 1/ Ir 11 11 11 11 11 11 11 11 /1 11 II ,. 11 1/ 11 29. VIP Drive a 111610811-xvenua n n n ll u o n o n u o u o of to to 1). VIP Drive A Sot Not Drive 11 11 II 11 31. VIP rive 6 Sanddoll9t 11 11 // 11 It /1 /1 11 Ir 11 11 r1 11 11 U 11 11 I 32. VIP Drive b Muir It u u of of to of n It to n rr n u a u o Ir 33. VIP Drive b Lora Drive rr /1 ,. 11 /t /1 11 /1 /1 11 11 Ir 11 11 rr 11 11 1/ unr »u Z Lora brive o rr u e n n o un /. Ir n o n rr /t u o n 35. !.unr oe A11/ r )s vo l of of of n it it of Of it a of to to pollu to itn �G. Sur/ti4a Snt Not Drive I' n of it to of to to o to it n of of // it Of it, Mir o/� rate one rt o u /r o 0 0 of of It to of to t. it to a rr I .t of to to to to of /t to n to of u of Of of to It { I . Pirate b K—Beach It to o It to to of it to to of of it 0 to too n n 40. Brldyu Accanr b Cblld'r Street �'' 808.00 (no 404.00 (WI) R (Acrow, tf..m rutt Uf Kanay 1t3(N).00 PA. 1r282.00 PA. IJP . 15.00 PA. F.4T. 15.00 PA. 348.00 017M CIN; 348.M (118= OR 16, k ,1 f e - �r B r r . _ - ..._,,,.,.,,-'----- --`-- }--. L. _ _ _ �_r... _..:-,. _. _, . .;.z_ ',_ - r .: - - .. r . ,ate. • - - �` R R i v • �� �. ELECTRICAL CONTRACTORS 3700 RAINISR AV[NUL $0, SLATTL9, WAGNINOTON 08144 '2001 722.0700 POST OP/ICL 90X 3698 ANCHORA09, ALASKA 09501 49071 272.4631 POST OFFICt BOX 60303 "AIRPAN99. ALA919A 90700 19071 452.7159 ROUTt I BOX Its 92NA1 ALASKA 0901t -907,233.7969 i RLPLV TO FRnai Office RLYtRLNCt City Of I{enai Quote 3-7-88 v I - - .J,rr ' C°!n� a �/ �/ (4.►/ A4r r• G aG L.GiN4L t zice�D ccr I �v O )L � S 62 �• ar = ` °,L � irJ /d X AliYcu Cd :� r c `I Gv/ Aso A.-r•. fa :2 � sL' 3 I. 1 �fx•��/�ii/� i el C cti�u,7"'Fts hp$ A o4 J s I - 4 t 2v� f TYPICAL Mn ALL =A,.rjO..%a M SCALD -- CITY ELECTRIC ;:� ( �~ i • I , 1 ' S t I_' ()HL)Lk1 G iNr0k/%4A 11UN its Not Ctl/N•. Y•Ib Wen, fi•Ibr•' OUf. wt. lass I•tn 1 t•1w Typo TYPO tbs._ WUh ►.[. Rare ucle Gnnec$e/ $ante silt e n MIIaS$ •rt•pl where fapad. a ta►/N"ll • • • 100 WeM Republer gp lot I" Legeloe Rtacla IMP$) 50 S03 2400 Reactor IHPr) so 101 120 Regoolor M•N•111 53 107 2011 Requbta 52 1" 240 R•qulotor 53 f11 277 Re vlater 53 0"NN3 120 210•WMr Legatee Regulator 42 Ifs 206 M2 2" pl/Nla 120 200•Wen Requlolor 41 107 240 tweles 0"116401 or • Is 400•Wen Repvbla M.N•11f wrlh 40 too 120-24M Mereery Ragvbtor Clear tamp 40 m R 1n1 puloo 40 12s 240o N•33 Reactor INPr) SN•Itl wrth 37 1st WA Reactor IMPF) Phos tonrp 38 121 120 Log INNI 39 :711PIR • I — I Allerelory I None A 30 C)"N1S7 IN e f 100•WO" Regulator S0 !00 120 tweles Reactor Ito 5o IM 240 Reactor lMPF) 5o for 120 locutwor 53 fo1 200 Requlow M•tW111 53 us 240 Regulator 4 53 Vft 277 Repulolor 53 t0 480 Rclortallor 53 DIINMs 120 SWWW" t1Er 208 tut"X Requbta 102 240 42 in 2" it? 480 C71/N10/ 120 20o•Wen M 240 testes Regulow 41 8I0 480 C711111410 • • It100•Wen Regulator AA-N•111 with 40 ou t2tIS240a M•rarry Regulator gear Lo•1p 40 040 208 Regulator, 40 041 2" Regulator 40 Oq 240aAMM Regdo1w S•N• 11 wen 40 Oft 243 N•33 Reactor IN") Ph" Loop 37 at 240 aeoctor (Neff 38 Of/ 12D to ►4N. 30 ;H1WW • — A1asf None ♦ 30 P°`loot Sol 6 DIMENSION.... yet sea Wy �T t7, :�• �..:.r.., ,; .. �.. ire . i,Mf •.�;r,. �l. ,y t now, �•A'�+>'. r : ram; s .. -' : y ue •v "'�oaetT.'; "',. /a' �4.{lLy, !i�!y!eijei4+Awyn+.s.rt:: rfSOFOOTCANDLE j CURVES.`7�'� r��ihiTaojiµ000rrutr�wtLaarowctaa7auriwo�ifotr►���''�•:'v, ,' •• , 1Dvol .011ogf Witasts rated 120.240 .oft$ are factory vowed too 120•.011 operotron �; t Do 110110V tons OhalGetecrrK 90010161 where mo•.tabfer thew vnrn con •OMIt to W +• converted to 240,an cowarran on the fold it vnres w,fh phatOelKhrc control or• . c►.onged 10 244v010 OW101r011 of ballast then pholoolocnrc cc/M1ol rrl«st a110 be ch011gea to 240 von opUotton rolrng Those r3te0 240r480 volts a• factory wood a t ! r t: fa 4W volt epera.on of ballast Thew con of toLlr conrMloo to 24-011 oarot.on M n e ►,e.d f t 0 Reouor 001r06rS Shaw* Oro to9101$ *wed to 3 .•re 1" 240 volt wapty. 120 �+ 2 t volt$ r0 phOr00090119 tOnNat toad 2V .01% to Do last Where only 2•wwe 240•volt t n dw.eo oror ••t•nt.ror to (Cat Nor factor w racerocto vowed to 240 vole" L_ 3 ...:�.• parrhwS cwonre• $elen en of any art of ro.• v011a90s 120 rr8 240.277 as f •9rdtr P t coh«o. woaorerr �Otaar a.arrse eoaov sollwar•l s r OPTIONS: S�r.�tro,3av ,�iliw+sl' PER 1Ooo.LAMP LUMENS d LUX _ nOrr:1 POOTC4N8Li 10 • » V' � X4 won tucolaa a4rpubta t20E. 277 eWrOptsr I fuses Srngfe .. y • o�«law D F, .i KouNrtNG usWK coRR•crow ►ACTORS POA OTt•1R TwyyZPEtT. • • •U2 TNLE a1LoA DA ACroa.'T Wavir, o Ni 11 2 2S 30 1 3S 1 40 15 S0 fAcr°A .44 .00 0.7]10.S 0•rr I 0.38 ACCESSORIES. ! r1 (atarao' $e.ard 350624W36 *Waal route a wren $rde thNa 3Sg6?400•?GPosition . �1f1s1, _ rer.f • /. T*Vlovig f — — _ 200 2S0, �0 Wits ., t M BbIV s 't A*4: j,"P DES ofar►tlpN :TJ y • Z : t > M N at 3St7S8tb .•• ~ .•:,•• �r;9't�%s ••::' .•n':MN.a --- i :,�c171017 • '�C • 4UrrMrcwr tClear/ M 33CD•40p ' g 7• U541 3s•173f>m •.rs 401Mpratt IDelua•l "M-400 DR u •., • fa4.111 ' , 35•17ax s► .( 250 tucotoa S W • tlq Mg!cwp .: 1 :M•Wnl 25.175822 f = j 4110 tucatoa S Sl "�;: j •: f + '/At4441 , 2iS 175833 t J>t S AK11 35•175824 ./; Registered Trademark of Genera) Electric Company XNERAL ELECTRIC COMPANY N o ight$no Systems Deportment, Hendersonvtl;e, N, C. 28739 f G E II E a A L Q ELECTRIC . 1/7! efe CA, Pk F T-1 "So I General Electric There's G.A- 7284(l more to GE lighting 1rc-,00Tc,'W. LU111111AMES than meets the eye. TC--400/TC=400R LUMINAIRES General Electric TC-400 and TC-40OR ve luminaires offer energy-efflicient HID fighting' In led luminaires are Ideal orshooDina centers. malls. 1. Flexible light distribution —The TC-400=400R family offers I.E.S. area and roadway type fighting distributions, for a va- riety of fighting applications. 2. Long -Life Durability — The a S;iPfitter for 3" OD tennons is die cast aluminum for low• - maintenance and Is secured by Ne 4 Six Stai-MOSS Steel anon head screws. The housing and hinged nopy are heavy gauge 4 Ca nopy 9 ASS no z� K Plastic to maintain Shape and Color through many years of sorvics. SO Z.0 F. Fast. OSSY maintenance — Two —rc - Captive screws allow quick So. TC4W%WR GUIDIR FORM SPECIFICATI Coss through hinged canopy to all electrical and optical components. Ballast Is pro -wired to The luffiinalre shall be of tradilloAal 4 c o6nial design. General I the terminal board and TAMP socket assemblies. Electric catalog number (sRv*)-96nsIstIn9 of a die-cast alum. Inurn baSS/SlIplitter for three Inch OD pole top. ASS plastlel 4L Fast Sure Mounting and towelling — Six allen head set mews housing and canopy and acrylic Ions. The ASS plastic canopyl fasten and level the luminaire on a three-inch 00 pipe• shall be hinged to the lower housing, neld closed with two captival. II If. Automatic Dusk -to -Dawn control — An optional photoelectric scrows, The TC400R, wasawpoeilied, Shall contain an internal Control operates 1110 unit Automatically from i"de the too reflector to provide IES (III or IV) roadway type distribu housing. tions, This d;;qW!10#--Pjs ben d The luminaire shall contain an integral ballast of the (reguisto)., type capable of operating from a multiple (12d. 208, 940, 277. 480) volt 60 Hz power source. The ballast ghall be Prewsred to the lainp socket and terminal board./.-L, • C: IS in Subq:anlial C!: requirements of t,jjs proj:aCt. C3 Is considarto an e;ual" to specified rnh- terial. f e_13� is specified. F Cl TY ELECTRIC. INC. Date I • Registered Trademark of General Electric Company GENERALO ELECTRIC f ri-- —, r ORDERING INFORMATION +: 'r'::- .nit•, r, wu,u:.t r��.i� r. r t:. :� n• i:1-.•}}.,;;,,:;; .j.,w:,;:„:,::. _ ..a". ' CaL No. (less lama► I volts Waft/ I Lamp Ballast TyP& Nn d :+kDIMENSIONB •'s:�" :. .:p'. ':, � '..�'r light Wt. Wpp '`i Dlet. lbs. i ' �'+ : * F Y v.... t�.. ,.r.. TC-400 Without P. E. Receptacle ,t!f'.. 0.0.Y-).. ��Tr ni4-••I�}�„} :� .}�n�a'ii �, ��.�.y. , t• I � • •• liil C69INS11 C591NS13 069tNslk I 120 480 4 W I 06 art Lucabx I Regulator i V Crf+Y, 52 �, r 1 f f C69/HS06 f20 250 Wstt pNOT A! ,r 691NSt0 2I 4 1 Lucalox Regulator I i TA O. 38 METRICDA Nud C691NJI01 f20 240 I 150-wart lueatox i Reguuter Y�i'4U0 3B Typical Curve - .,Awl P. E. Auto -Reg. 40 400-Watt 1,1611011111011 1 Regulator I M-N-111 I S7 ► Lualox Regulator 43 a ,n Lueabs Regulator 41 A 400•Watt Mtroury Auto-Rtg. S 5-01 45 A120 x 240 volt units are factory wired for 120 volts. Units can be racOnWttd In the held to 240 volts. OPTIONS: MIN. Standard color is blm*, Avail. OTY• able in eight decorative Colors. Refer to 8EA•9352 5 A E. Rectotaale: LIMIS are avail- able with A E Receptacles up to 277 volts.. VOttagea 208- 277 In ratings shown any any 400-Watt WIN►rand& — All votiages — Lexane panels 1TC-400 only) 5 • Order A E. Control separately 5 ACCESSORY: Finial kit taaOld anodized aluminum. see of 4) CAL No.3S-961900636 MOUNTING: ER. Pro). Art& is 3.8 so. a lt, max. : Slipfitttr aedommodata 7• 00 pole top. RRCOMMENOBD POLE& %igosted fii©unting neigh} Is 18 feet. For 18' round, Modified anchor bap pOiq, inClUdin ancnor bolts and bolt circle templates• order cata- �num--�e!� Thm poWS will withstand up to at total 90 mpni. POI& Cat. NO. t Pole Material (tilt) C7 HOU Aluminum • C790M08x Steel, Prince Psinted +--- Sttl1 Osivaniz&0 PHOTOMETRIC DATA TC 400 �210L. Distribution Curve 1Le T Pe Number 400 Lucatox Pheeohol Mercury V 35 t 75829 TC-IOOR Wane distribution Curve ~� Lug ox Tye Number WWI S t 76 81 «A PMtbadr bAereury 35-178283 GENERAL35-176282 S-S-111 Lighting systems Department Hendersonville. N. C. 28739 airs nssn» Ra&rxxeo bai t10aa) r I � � X rr&, ,W,r#T (-BD CITY OF KENAI 110d edj� 4 4Zwa 210FIVALOO KENAI,ALASKA eall TELEPHONE 283.7535 MEMO TO: Kenai City Council FROM: Charles A. Brown, Finance Director C4a DATE: March 27, 1985 Subject: Street Lights At the March 20, 1985 Council Meeting, the Council asked for some further information on street light utility costs. The City is charged for approximately 144 "yard lights" (which are more accurately described as small street lights) at a total monthly cost of about $1,700. These lights are charged out on a flat rate of about $12.00 per month. In addition, the City is charged for approximately 80 street lights on meters. The cost for these averages about $2,800 per month, or about $35.00 each. These costs may vary significantly from month -to -month. As I said last Council Meeting, I believe that atreet light utility costa next year will be $60,000. You can expect each new light to cost between $35.00 to $40.00 per month for electricity. If we use the $40.00 cost (j (which many lights cost), we get $480.00 per year. This is very close to the KWX cost identified in Keith Kornelis' letter inT last vacket i 99.0 er ear . However, Keith's memo also identified a cost of $348.00 per year as a meter charge. This is a charge per meter, not per light. There may be ' virtually any number of lights on a meter. 7711s eA*Q 000 Mra• PC4 PE/s .vs�t►s'• I called REA, and was informed that they are taking an inventory of yard and street lights for the City. They also said an adjustment would be made for lights not operable, as discussed at last Council Meeting. h • i V ' k i f� 99.0 er ear . However, Keith's memo also identified a cost of $348.00 per year as a meter charge. This is a charge per meter, not per light. There may be ' virtually any number of lights on a meter. 7711s eA*Q 000 Mra• PC4 PE/s .vs�t►s'• I called REA, and was informed that they are taking an inventory of yard and street lights for the City. They also said an adjustment would be made for lights not operable, as discussed at last Council Meeting. h • i V ' k i f� ,ram �: �.�_ _c ' rypr= �•.•�.:�.. - : _,:.,.;.-:.. , ... :�.�,. , . .. :..__ Ate.. . . `I fttx YEAR HI8TORY % INCR. 81 IIEXPENSES ACTUAL ACTUAL ACTt1AL ACTUAL DUVOLt bU00ET TO 1980-81 1981-82 1982-83 t983-04 t984-85 1905-06 1985-176 - GEN. FUND NON-DEPT. 2,600 13,390 14,096 19,518 21,000 24,000 823.08% FT. KENAY 0 0 1,631 3,099 3,640 3,400 N/A POLICE (INCL. JAIL) 10,9:i2 11,383 11,757 13,654 11,010 12,4tiO 13.6UY FIRE 9,348 9,933 10,784 12,631 IS,3:0 17,100 02.173% 611D1l 6,196 13,669 16,068 17,304 20,000 20,000 c^$2.79% alilEEIS 0 0 1,389 1,703 2,000 2,000 N/A tIOHTINO::2 022,931 31,628 39,565 48,649 46,000 60,000 1bt.bm LIBRARY 4,329 5,332 J,511 6,217 6,500 15,626 260.96% RECREATION 724 8,929 12,099 21,702 22,000 22,000 2,938.67% PAR148 263 298 b89 1,315 1,800 1,800 %" 7. 02% TOTAL GEN._FUND ,.._•. 57,342 94,751 113,554 145,850 .149,300 170,376 211.07% `. • WATER 26,282 32,073 43,359 50,921 48,000 50,000 90.84% SEWER 1,523 3,202 5,071 4,929 6,000 6,000 293.96/ SEWER TREATMENT 14,564 46,360 79,075 71,611 70,000 70,000 380.64% ' TOTAL WIG 42,369. „ 81,643 127,504 127,721 ,• 124,000 126,000 197.39% I;i AIRPORT 4TERMINAL Si ML01 35,661 31,759 41,873 52,899 65,000 62,000 73.06% -- -- '•�I �- GRAND -TOTAL 135,372 208,153 202,931 326,478 338,300 366,376 170.64% 1•!�I! NOTE$ EXCLUDES SENIOR CITIZENS L , to / Y 4 r =j e 1 i f` L C n • 4. I « ..i •. a.w �... �. w.+r , .. r. r ..rr - -r..—. •� ... r. r � e r a �..s . a -. .. r r. n«r, �r,.I. G--/r CITY OF KENAI 4 40d ea a,4W of 4"„ Z10 FIDALQO KENAI, ALASKA 09611 "— TELEPHONE 283 - IS MEMORANDUM i TOs Mayor Wagoner and City Council FROMs Kenai Advisory Planning 6 Zoning Commission SUBJECTS Lease Amendments Lot 1, Blk 2, GAA S/D - for Construction of Building - SouthCentral Air At the Special Meeting of the Commission, this date, the referenced item was placed on the agenda and reviewed, as this "is an advisory issue". The following is the recommendation of the Commissions MOTIONs Commissioner Bryson moved to recommend approval of the modifications to the lease on subject tract, seconded by Commissioner Smalley. VOTES Motion passed unanimously. ` k i' jai I i r T, i i �' 1 CITY OF KENAI %Oil eap" vj 4"„ 910 FINWO KENAI, AUSKA ami TRWHONE M • 7535 August b, 1985 MEMORANDUM TOs Kenai City Council FROMs Dana Gerstlauer, Administrative Assistan REs SouthCentral Air Lease Modification Lot 1, Block 2, General Aviation Apron SouthCentral Air, Inc. has submitted a site plan to the City for improvements to the referenced leased property. The lease was amended on November 21, 1979 to be used for aircraft tie -down purposes. If the proposed construction is approved, the lease will have to be amended again to reflect the intended use of the property. /d Attachment t t i 1� ' i Ib� MdN,p �Ni0o11 „ XGo, N p b 10 O �i /ROPOND STS&L I � �tR' �Sq•.r) s I N1 Ib' OdMInC rOorA Ib' G t 70 00 t .00 ~ f OMITS POINT COURT i 00' R.O.w �• �M-K f LOT SLOOn • VICINITY MAP 1"•A00 1"•80' •ITS ►LAY — LOT 1, /LOCe t OSIMAL AVIATION APRON NO. 1 voR NOMI THIS PLOT WALLY PAOC PLAN IS PROPOSED KCAA1. AK. 9*611 MY. THIS CAASINO 00[S WT t>LPRSKNT A AS-PUILT SLRYCY. }' LALOiS SIRVEVIA0 N ecx 566 T/�7 N:AAI, AK. 9901 nn 2✓ 001/M OrCC.SO Li• A 1 I I l 1 1 13 81 �a 809' SO.,? 80P IV 849 80S I .10 . YF' . N $0 % /.o 80.'r 8,?.5 78.4 845 64,4 " CITE' OF KENAI P.O. BOX 6" • KENAI, ALAfKA • PHONE 213.7635 FROM, d DATE O a REFERENCE w And @ 2 1 c Ou ....... f�`I -�NDEID i a� SIGNED DATE IwMwr ® NAMV $"AM F&W* M" • I i 4al� - �f • s. i" rl J � , J I ' ` n I Ariwr vmw tm ffmmp po ow NMow rwn, Nod ouown oftl w. c nplrRr w�( �Jw.t...r r IINI b0/rnglr NttlNr r.iwrMAwlrw,wN�N1.1Nrlr rNN No CARBON PAPER RECWREO: Typo Of WKS 00 &Wft - WOF080" wIN AulOA M"y $"$Won 00008 OwaM III cAn - PRIORITY R SCHMIT, SMITH & RUSH, INC. M,a �' 0 URGENT! 0 1577 C Street � u NO. 07 o EooN"P=mx m ANCHORAGE, ALASKA 99501 (� p No mmy Mum III AnewraN: - (907) 338.6304 III - 1 rs� v » - 8!h ��w•,. Rcl • s� �,G:v 8 T�K / ✓. r a V � � �+�••� �c�4Y i may....., •. E e l� 6��"� w0x �Yre wr✓ 4 24" 3 — 3 70 0 , SIGNED, eR II blr 0/NflWs ftftv To. r; i , R Ac. Ito.. Per. #1&4:Y, 4�L 9 P t i L Y SIGNED; i SENDER: MAIL RECIPIENT WHITE AND PINK SHEETS. i RECIPIENT: WRITE REPLY, RETURN WHITE TO SENDER, KEEP THIS PINK COPY. i 1 r Lotter of Agreement '- for City of Kenai - Marathon Road Relocation . HEA W.O. No. 1200/900104 RAVISED CO,/7 The City of Kenai (the City) has requested that Homer Electric Association, Inc. (HEA) relocate one 33 kV transmission line pole and approximately one thousand ft. (1000 ft.) of existing distribution line and related distribution equipment. The City desires to have HEA power lines moved so that the City can relocate Marathon Road and make City property more desirable for future lessees or purchasers. Work to be performed by BEA under this agreement is described below and on Drawing No. 1 which is attacod. Description of work to be performed by HEA includess 1. Retire distribution tap equipment at location number 0473. 33 kV transmission line and underbuilt distribution line will remain at this location. 2. Retire distribution line and equipment at location numbers 0572, 0571, 0569, 0668, 0666, 0664, 0662, and 0760. 3. Install new underground three-phase distribution line and equipment from location number 0768 to 0760. New line will provide service to FAA loads presently being served by facilities to be retired in items 1 and 2 above. 4. Relocate 33 kV transmission pole and distribution line underbuild at location number 0673 to location number 0773. Estimated cost of work to be performed by HEA is $42,688.00. Estimated credit for system betterment allowed at 70K of cost to relocate distribution line, items 1, 2, and 3 above, is $21,238.00. Net estimated cost to City for relocation described in items 1, 2, 3, and 4 above is $21,450.00. The city shall be billed actual project cost including credit not to exceed $25,000,00, The City shall be allowed a credit for system betterment calculated as 702 of actual cost to relocate distribution line described in items 1, 2, and 3 above. Estimated cost DOES NOT include removal of existing earth berms between location number�68 and 0760 or relocation of existing FAA facilities underbuilt on HEA poles. It is agreed that the City will remove the earth berm between location numbers 0768 and 0760 to finished grade so that HEA can install their power cables. If HEA is required to remove the earth berm between location numbers 0768 and 0760, the City will be billed for additional work involved. Acceptence of terms of this Letter of Agreement by signature below shall serve as authorization for HEA to proceed with project construction and bill the City as discribed above. Accepted by City of Kenai By. Title Accepted by Homer Electric Assoc.Inc. By Title Date Date J %J FA Cost Estimate City of Kenai - Marathon Road Relocation afivlaX 4 HEA W.O. No. 1200/900104 July 6, 1985 Description of Work Retire existing distribution line and equipment at location numbers 0473,0572, 0571, 0569, 0668, 0666, 0664, 0662, and 0760. (Items 1 and 2 in Letter of Agreement) Install new 30 distribution line and equipment between location numbers 0768 and 0760. (Item 3 in Letter of Agreement) Total for new construction and retirement for distribution line Engineering @ 15% of labor and material HEA overhead and administration @ 25E of total labor cost Total LAM, Engineering, overhead & administration for distribution line relocation Relocate transmission pole and distribution underbuild from location number 0673 to location number 0773. (Item 4 in Letter of Agreement) New Construction Retirement Total for transmission pole relocation Engineering @ 152 of labor and material HEA overhead and administration @ 25E of total labor cost Total L&M, Engineering, overhead & administration for transmission pole relocation Summary of cost charged to City Relocation of distribution line Relocation of transmission pole Plus 107. contingency Estimated total project cost Less 7OZ of distribution line relocation as system betterment Estimated project cost to City Total Labor Material L,& M $ 5,021.00 $ -0- $ 5,021.00 9.080.00 8.480.00 17.560.00 14,101.00 8,480.00 22,581.00 3,387.00 17,17,+ 0- 8,� 3.387.00 25,968.00 4,372.00 _ 0 _ 4,372,00 $21,8_6�0.00 $ 8 $ 30.340�00 $ 4,093.00 $ 524.00 $ 4,617.00 1 364.00 457,00 -0- 1,364.00 5, 524.00 5,981.00 7.00 -0- 897.00 69.00 F2T.W 1,589,00 _-0 1,589.00 $ 7.943.00 $ 524.00 $ 8.467.00 $ 30,340.00 8,467.00 38,807.00 3.881.00 2, 88. 21 238.00 . i� 4k ia-- ion DOWLING - RICE A ASSOCIATES KfnalQffief: P.O. Box 19 U. Soldotna. Aluka 09669 (907)262-9011 August 6, 1985 10 8 9/ Janet Whelan GC City Clerk City of Kenai 210 Fidalgo Kenai, Alaska 99611 zz" Dear Ms. Whelan The City of Kenai Planning and Zoning Commission denied our request for a conditional use permit for the development of townhouses on lot 12, block 2, Central Heights S/D, lat. Addition. Please consider this a formal request to appeal the above decision before the City Council. Sincerely, Dowling -Rice and Associates Roy ?h itf+or, R. L. S. O�H "A - C) I CITY OF KENAI 6 2 4 4"0,p 210FICALOO KENAI•ALASKA M11 TELEPHONE 203. M5 CITY OF KENAI PUBLIC NOTICE The Council of the City of Kenai will be sitting as a Board of Adjustment on Wednesday, August 21, 1985 at 7s00 PM in the Council Chambers, 210 Fidalgo, to hear an appeal by Dowling -Rice & Assoc. The Planning h Zoning Commission has denied a conditional use permit request by Dowling -Rice do Assoc. for construction of two townhouse units on Lot 120 Block 1, Central Heights S/D, 1st Addition. The public is invited to attend and participate or submit testimony to the /%City Clerk before August 21, 1985. Janet Whelan City Clerk OATEDs August 6, 1985 i i 'Y CITY OF KENAI %Od Ga#W oj 4"„ 210FIVAL00 KENAI, ALASKA 09611 TZWK014920- 7686 July 26, 1985 Dowling Rice & Assoc. 155 Smith Way Soldotna, Alaska 99669 REs Application for Conditional Use Permit for Construction of Two Townhouse Units on Lot 12, Block 1, Central Heights S/D Dear Rant At the regular meeting of the Kenai Planning & Zoning Commission on July 24th, the Commission reviewed and denied the request for the permit, the groin reason being the size of the lot. A copy of the unapproved minutes which contain discussion and the motion is attached for your information. If you have any questions, please feel free to contact the Planning Dept. at 283-7933. Sincerely, t ��� Janet A. Loper Planning Secretary act Clint Hall one r; r .r CITY OF KENAI 210 FIDALOO KENAI, ALASKA M11 TELEPHONE 213. 7535 MEMORANDUM TOs Kenai Advisory Planning 6 Zoning Commission FROMs fCoonditional fLabohn, Land Manager SUBJECTS Use Permits Townhouses - Lot 12, Blk 1, Central Heights S/D, First Add. #2 - Clint Hall DATES July 19, 1985 BACKGROUND Applicants Dowling -Rice Assoc. for Clint Hall Legal Descriptions Lot 12, Blk 1, Central Heights S/D First Add lit Existing Zonings Suburban Residential (RS) Current Land Use: Duplex Proposed Land Uses Townhouses Action Requested: Conditional Use Permit for Two (2) I,I Townhouses DISCUSSION An application for a conditional use permit has been submitted to authorize construction of two townhouse units in Central Heights S/D. The subject lot is located on Portlock Street. An application has been submitted including the required site plan and fee. A floor plan has been submitted to the Building Official. ! r 1 a w R � r + , f ' OWW --- CONDITIONAL USE PERMIT Hall Page 2 A duplex has already been constructed on the subject lot with individual utility services to each unit. The units were constructed to the building code applicable to townhouses to the satisfaction of the Building Official. The owner wishes to legally create two townhouse units by utilizing the zero lot line concept and subdividing the lot. ANALYSIS Kenai Municipal Code 14.20.160 specifies the procedure for submitting and evaluating a conditional use permit request for townhouse development. Per 14.20.160(a), townhouses may be permitted if the following conditions are met$ 1) The development conforms to the adopted comprehensive plan 2) Public services and facilities are adequate to serve the townhouse development; 3) Health, safety, and welfare will not be ,jeopardized as a result of the proposed development; 4) Standards for townhouse development are satisfied as required in this section; S) Any and all specific conditions deemed necessary by the Commission to fulfill the above -mentioned conditions shall be met by the applicant. The impact of converting an existing duplex to two townhouse units is minimal from the land use perspective. Development density, traffic generation, and impact upon public facilities will not be significantly changed due to the conversion. Additionally, since the duplex was constructed in anticipation of townhouse use, no structural alterations will be required. JBLsjl �1 QO i �E 1; I � Y �1 r I � 1YNtMT (Food this ors") UNINT not this tows") - ;"� • IlgAltl/oo1 this ors") s So" MAX Oa Ott —w/ ) M VATUM Icae+ 83 �1fo 'y1• i f r LOT 1 5 LOFT !! "11,04LIOVIS!(! - DELAND SUBDIVIS"ON llo } ZON60 z•5 RMULAMMS SOT IZ•A _LOT 1 0 "w.. 1u1,1 ..Or Ysff JOOo9.{ 49,13 Si SOf� 'bc I 2) pilulwuwl SOT pl14464 J/ SS !' �+ 1 at --� ,sr pmccas cAc..r t! z� s •1 s' R4^4 ' s HEIGHTS boos 13 Z1 i CENTRAL SU801{p$101 FIRST AWITION NO. Z A RcsWO,vRiIOM OF LOT cs YLK 1 CENTR HEIGHTS LvsOlvls" rIRST ADDITION. IOCATEO WITHIN THE NW 1/4 SEC 4 TSN RIIW, SM." AND THE CITY OF xi"Al. - I It 1 KENAI PLANNING ZONING COMMISSION July 24, 1985 - 7s00 p.m. Kenai City Hall Lee Lewis, Chairman 1. ROLL CALL Presents Lewis, Bryson, Carignan, Oleson, Osborne Absents Smalley, Zubeck 2. APPROVAL OF AGENDA Chairman Lewis asked to add a lease application under item 7-h Agenda approved with the addition 3. PERSONS PRESENT SCHEDULED TO BE HEARD None 4. PUBLIC HEARINGS a. Resolution P185-61s Conditional Use Permit for Construction of Two Townhouse Units on Lot 12, Blk 1, Central Hts S/D lot Add. - Dowlino-Rice Assoc. (accompanies item 7-e) Chairman Lewis opened the meeting to the public for comment. There being none, Chairman Lewis brought discussion back to the Commission. This permit request is for an already established dwelling currently being utilized as a duplex, however, it was built to townhouse (zero) specifications. This request is for the permit and for the accompanying plat item 7-e. Commissioner Carignan asked for the size of the lots formerly granted the permit under the zero lot line concept, Jeff Labohn answered that this permit request is almost the same size as lot 14 of the same subdivision which was granted a permit a year ago. Commissioner Carignan noted that one of the items the Commission was going to address was the 45' minimum width on lots, although it was never formalized. "My concern is that this could be used as a back door to eventually get condos in an area that would be below the minimum that we are looking for." It was noted that the minimum lot footage on these lots is just under 331. Commissioner Carignan stated that, I am reitterating the concern that this body had regarding the width of the I ' 1 l l' I I ILI a #" ■ �I C PLANNING COMMISSION MINUTES July 24, 1985 Page 2 lots, a 45' minimum was one of the things we had agreed upon to strive for." MOTIONs Commissioner Carignan moved for the adoption of PZ-61, seconded by Commissioner Oleson. VOTES Motion fails nos Lewis, Carignan, Oleson, Osborne yeas Bryson 7- e. Preliminary Plat PZ85-66s Central Heights S/D, lot Add #2 (accompanies item 4-a) MOTIONS Commissioner Carignan moved for adoption of PZ85-66, seconded by Bryson VOTES Motion fails not Lewis, Carignan, Oleson, Osborne 4 yess Bryson Is. Resolution PZ85-62s Variance from Sign Code - Gov't Lot 20, Sec 6, TSN. RIN, S.M. - Alaska Wood A Ivory Chairman Lewis opened the issue to the public. Bob Cutler, petitioner, came forward and seitterated the information on the application and presented a letter addressed to him from the Alaska Department of Transportation which, in effect, states that the sign placed within the States 100, ROW will have to be removed and should it be placed back within the ROW the State would remove it. Jeff Labahn brought attention to the code which clearly spells out that no sign shall be placed in a ROW be it State or City. The City cannot issue a variance for placing the sign within the State ROW, however it could allow the sign to be placed outside that 100' corridor. Mayor Wagoner came forward and stated that Mr. Cutler had written him a letter explaining the situation with the sign. Mayor Wagoner viewed the site and agreed that there is a problem. Vehicles, trucks, and cars whether moving or parked, obscure vision from the highway. The Commission asked Mr. Cutler if he would be happy with his sign at the 100', answer, if allowed to use 2 poles, the sign wculd be ,just inside the 1001, if one pole was approved, then it would be ,just f• . a � . 1 R , i 1 _ - -o. ...... • 7 1: r ram- 5. °• I ` O S CONDITIONAL USE PERMIT - for construction of 2 Townhouses v ^n Lnt 12. clock l o W� -'j � I TERN Z I 1 w 2 3• 4 s�, AVE, 40 Jr K10 7. 0. / S O 8 1. /(+ 2 0 t 1 y a. /eA` M g d O 7 8 +I JAj 0 6.' �. • 4 .11 14 ©ac � pJ9•o�[5- 69� � � � .662 Q , / a © 4 fdWov- k1 10 9 av (o 3 Q y• cVy3 . Z / � 4 � oV4-Oro • r�lv � "� . o 10, ft 12 0 cation of Proposed &/fro /-D 00 60f.? 3 s _-- v �r ...1v • • s .3 '° / o v 9 O!i -CbQ7 =O � • oilAs � V �s ! - oV9•oiroleo \ -.-- - ,� Tact %► � ,, � I / (footages in this cacti n ate approximate due tG/�D700 --} difference instals) i I i IS , I* L I. I. s, I CITY OF KENAI " Od G'a#W of 44"" 210FIDALOO KHNAI,ALASKA a0811 TEMNON8983. 7838 MEMORANDUM ;l FROM mrgogers, Attorney ity of Kenai TO: Honorable Mayor & Members of City Council REs Administrative Appeals From Board and Commissioners An Appeals Board is under a duty to act justly, reasonably, and without abuse of discretion on applications for appeal concerning matters before it. It is a quasi-judicial body, and while strict rules of judicial procedure may not be applicable to the proceeding before it, the attitude and conduct of members of the Board should be judicial and impartial. The hearing should be a public one and is ordinarily in the nature of a de-novo proceeding and the Board should not refuse arbitrarily to receive and consider material evidence on the issues being presented. Since these hearings are not judicial hearings, they should be more or less informal and not subject to strict judicial or technical rules of procedure. Where no particular method of procedure for the conduct of the hearings is provided far, the hearings must be governed by established rules of the procedure applicable generally to administrative tribunals. The proceedings should be recorded so as to constitute a full and complete statement of the proceedings with particularities sufficient to enable a court to understand what was done should the matter be appealed for judicial review. The Board should not consider anything except the provisions of the laws and facts determinative of the question whether the situation warrants or requires the relief for which application 1 h w � • , 1 % f is made. Nor can it consider burdens or hardships arising not from zoning laws but from plat or deed restrictions, since these are not relevant to proper grounds for relief from zoning restrictions. Protests and objections should be considered. It is the duty of the Board to require the submission of evidence to establish facts and it is incumbent on a party to produce evidence if he desires to preserve his right of judicial review of an adverse administrative decision. The evidence must be sufficient to justify the administrative action for which application is made. In the case of a variance, there must be sufficient evidence of unnecessary hardship or difficulty and of conformity with the fundamental purpose of zoning plan, and consistency with substantial justice. The hearing before the Board being de -nova, the decision being appealed from is not conclusive and binding on the Board as to issues of fact. The Board is empowered to ascertain facts from any competent evidence and members of the Board are entitled to consider facts learned by them from personal observation of the location in question and surrounding conditions. The Board may, in the exercise of its discretion, take a view of the premises at any time prior to deciding on an application, and the Board may consider and rely upon what it saw on the view. Where such a procedure is followed, however, the Board must set forth in the return the facts known to, and acted on, by its members but not otherwise disclosed. Various personal observations of Board members have been deemed sufficient evidence for the taking of administrative action. The Board may consider the recommendation of City officials but may not substitute that judgment for theirs. The general rule with respect to the hearings, is that witnesses should be sworn, and their testimony taken only on oath, unless the administration of the oath to witnesses has been waived. Such waiver should be upon the consent of the Board as well as the parties. The administration of an oath is particularly appropriate where material findings of fact must be made on conflicting testimony. Insofar as presumptions and burden of proof, it is maintained that: "A party applying or appealing for relief to a zoning board of adjustment or review has the burden of proof of facts entitling him to that relief ... if an applicant seeks the allowance by the zoning board of a variance or exception, he has the burden of proving facts entitling him to it; i.e., he has the burden of setting before the zoning board the evidence necessary for exercise of its seasoned discretion. It follows that failure or insufficiency of proof as to any factor or element essential to the allowance of a variance will defeat the application therefor. Unless an applicant 2 0 is required to establish by proof all the essential elements of his right to relief, a board of review would have the power to nullify the zoning ordinance under the guise of exceptions or variances. But the burden of proof is sustained by evidence that under special conditions, a literal enforcement of the provisions of a zoning ordinance will result in unnecessary hardship and that in spirit the ordinance will be observed and substantial justice done by allowing a variance." Any action or decision of the Board must be based upon facts as established by the evidence properly introduced before it. The decision of the Board as to variances where other matters rests exclusively within its own discretion, but its decision must not constitute an abuse of discretion or power, and in this respect, is always subject to judicial review and reversal. The recommendations of City officials are not intended to prevent a Board of Zoning appeal or the like from either granting or _ refusing a permit. The action or decision of the Board is _ presumed to be valid. The Board requires a quorum consisting of four and a majority is the requisite required vote. The Board is required within thirty days after the hearing, to render a decision on the appeal and can impose appropriate conditions and safeguards in accordance with zoning ordinances !. relative to any matter subject to its jurisdiction. Any f; conditions imposed must be reasonable and not arbitrary, unnecessary or oppressive and they must be related to and incidental to the proposed use of the property. Thus, the Board is not limited to an affirmance or reversal of the actions below, but may use its judgment and discretion in making such modification and attach such conditions and restrictions to the granting of a variance as in its opinion should be made. Before arriving at its decision, the Board should make findings of fact upon the evidence so that any reviewing authorities may be advised of the reasoning behind the Board's decision especially where the relief sought is granted. The general rule would seem to be that parties in a zoning proceedings have a right to cross-examine witnesses offered by an adversary. 3 Witnesses should be administered the following as an oath or affirmation prior to their testimonys "Do you solemnly swear that the testimony that you are about to give in the case now before this Board, to be the truth, the whole truth, and nothing but the truth... So help you God? Under pain and penalty of perjury? • CITY OF KENAI •%Od eat 4 4 u" 210 FIDALOO KENAI, ALAGXA M11 TELEPMONE263.M6 CITY OF KENAI - PUBLIC NOTICE The Council of the City of Kenai will be sitting as a Board of Adjustment on Wednesday, August 21, 1985 at 7s00 PM in the Council Chambers, 210 Fidalgo, to hear an appeal by Dowling -Rice do Assoc. The Planning & Zoning Commission has denied a onditional use permit request by Dowling -Rice do Assoc. for of two townhouse units on Lot 120 Block 1, Central Heights S/D, lot Addition. The public is invited to attend and participate or submit testimony to%%the City Clerk before August 21, 1985.. Janet Whelan City Clerk DATEDs August 6, 1985 i 7 ? I �z- w 0 10 ELECTION OVERVIEW by Richard G. Smolka Editor Election Administration Reports Information on Implementing Handicapped Voter Assistance to be Made Available Local election officials who have not yet planned actions to implement newfederal legislation to increase polling lace accessibility for handicapped voters, may bone - the actions of two federal agencies. e Voting Accessibility for the Elderly and Handi- capped Act, (P.L, 08.436), requires each state, with certain limitations, to provide accessible registration facilities and polling place and to take and publicize certain other steps to make registration and voting including absentee voting) easier for the elderly and ed. The edoral Election Commission and the Depart- mentof Justice, both of which have certain responsibili- ties under the act, have contacted state agencies to find out what is being done. In his April 23 letter to chief election officers in each state, FEC Chairman John McGarry said the commis- alon "plans to coiled and disseminate materials which might be useful to the state offices in developing their own definitions, criteria, survey instruments or other implementation plans." J McGarry specifically asked state officials to share • the name, title, address and telephone number of the person who will be responsible for the day-to- day implementation of the law; • any materials developed regarding accessibility for the elderly and handicapped; • copies of any legislation or proposed legislation to Implement the federal law; • any definitions of "handicapped" or of "handi- capped categones"with corresponding definitions of "accessibility" for them; • copies or drafts of any survey forms already drafted, The materials are being solicited to enable the FEC to assist states in complying with the law by noting what others have done, McGarry said they would alo be useful "in devising the format for reports from state offices to the FEC ."The law requires the FEC to gather Information from the states and report to Congress every two years regarding polling place accessibility to the elderly and handicapped, McGarry made it clear that the FEC has no enforce - MOM role and does not develop guidelines or approve or disappve roof state implementation strategies. The FEC Chairman said he was pleased at the amount of activity already taking place in the states. He said the calls to the FEC indicate the states are taking seriously their responsibility for making polls accessible, For further information, local officials are encour- 8�gged to call the FEC's foil free Information number 8t)0.424MM. Gerald W, Jones, Chief, Voting Section, in the Civil Rights Division of the Department of Justice by letter April 18 advised state officials including governors. �-y attorney generals and chief electoral officers of their rosponsibility under the law, The department requested each state to inform it of the timetable for establishing the accessibility guide- lines required under the Act and for ensuring compli- ance with the Act In 1988, The Act applies to all federal elections, including primary elections, beginning in 1986, The Justice Department has enforcement responsi- bilities for the Act but in keeping with its traditional enforcement role, will not approve or disapprove of state plans as they are being developed, zAA.*, i M _ r' r .. ,a : a . � r. -.,r �w... n II , . r • �L.�. r . -.- .. R FvY.r NY-1 �Y ALASKA PUBLIC OFFICES COMMISSION July 22, 1986 y NU SilE RIM, GOV RWR R EPTO: 0 STREET, SUITE 211 ANCHORAO@, ALASKA 99501.3598 (907) 276.4176 O JUN@AU ORANCH OFFICE POUCH CO JUNEAV, ALASKA 00811.0222 (007) 406.4804 Dear Clerk: _Iir `=-�� The Commission is proposing new regulations in the area of Campaign Disclosure. Since the candidates, groups, and contributors in your muni- cipality are subject to the requirements of the Campaign Disclosure Law, I thought you'd appreciate receiving a copy of the notice and the draft regulations. Two copies of each are enclosed. Please note that we do not expect these changes to be in effect until after the regular elections so it is not a question of asking the campaigns which are currently active to change their procedures in mid -stream. Those who wish to comment on these proposals should write to mission or call about the possibility of testifying at the ugust 22nd hearing. Please give us a call if you'd like additional copies. Sincerely, ALASKA PUBLIC OFFICES COMMISSION THEDA S. PITTMAN Executive Director TSP/tg I I �J r 1 6.-1 -- - --- - /' NOTICE OF PROPOSED CHANGES IN THE REGULATIONS OF THE ALASKA PUBLIC OFFICES COMMISSION Notice is hereby given that the Alaska Public Offices Commission, under authority vested in AS 15.13.030(10), proposes to adopt, amend and repeal regulations in Title 50 of the Alaska Administrative Code, dealing with Campaign Disclosure, complaints, Preliminary Investigations, and Hearings to interpret AS 15.13, AS 24.45 and AS 39.50 as follows: 2 AAC 56:313. CONTRIBUTIONS is proposed to consolidate the definition of reportable contributions. It would include treatment of loans, non -monetary contributions, donation of in -kind services, media broadcasting, extensions of credit for an unreasonable time, and expenditures made in cooperation with a campaign. It would exclude from reporting volunteer services, internal business or organizational communications, non -monetary contributions of small value, and contributions for an election recount. It also provides treatment for a married person's contribution from joint funds. 2 AAC 60.326. RECOROKEEPING REQUIREMENTS FOR NON -MONETARY CONTRIBUTIONS is repealed. 2 AAC 60.330. REPORTING CAMPAIGN EXPENDITURES FOR TRANSPORTATION is repealed. r 2 AAC 50.350. CONTRIBUTION OF PROFESSIONAL SERVICES is repealed. 2 AAC 60.365, LOANS is repealed. 2 AAC 50.405(4). "contribution" is repealed. 2 AAC 50.315. CONTRIBUTION LIMITATION EXEMPTION is amended by adopting a new subsection (d) which clarifies that political parties must report all contributions and expenditures. 2 AAC 50.316. PERSONAL CONTRIBUTIONS BY A CANDIDATE is proposed to clarify and define when a candidate may make unlimited contributions of his or her personal funds and assets in the fora of money, goods, loan proceeds, and proceeds from a sale of assets. 2 AAC 60.319. DESIGNATED CAMPAIGN DEPOSITORY is proposed for candidates or groups contemplating raising or spending more than $5,000.00 in a calendar year. They shall deposit all contributions and make all expenditures from a designated campaign depository. Campaigns shall designate on a report the bank or banks in which funds are held or which credit cards for travel expenses are issued. The proposal sets forth an accounting and reporting procedure for contributions that cannot be determined to be legal. 2 AAC 50.360. MUNICIPALITIES is amended in section (a) by providing that municipalities engaged in political activity using budgeted funds shall report in -1- ' � J y1. p the same fashion as individuals. Section (d) is added to provide that municipal- ities shall report as groups when they receive contributions for political 2 AAC 50.356. GROUP is proposed to define a political group required to file periodic Campaign Disclosure Statements and to provide exceptions for those entities or organizations permitted to report their political activJty as 2 AAC 60.385. REPORTING BY ORGANIZATIONS and BUSINESS OR TRADE ASSOCIATIONS is repealed. 2 AAC 50.395. REPORTING BY A BUSINESS ENTITY OR LABOR ORGANIZATION is 2 AAC 50.357. CONTRIBUTIONS IN THE NAME OF ANOTHER is proposed to prohibit voluntary or involuntary transfers of money or other things of value between persons for the purpose of making contributions to candidates or political groups unless the persons engaged in the activity register with the Alaska Public Offices Commission and report on periodic Campaign Disclosure Statements as a group. 2 AAC 50.369. PROPER IDENTIFICATION OF COMMUNICATION is amended by adopting a new subsection (e) which proposes to define campaign materials that must bear the paid for by disclaimer and providing that envelopes need not bear the disclaimer If they contain properly identified campaign material. 2 AAC 50.370. OBJECTS TOO SMALL TO CONTAIN THE PROPER IDENTIFICATION is amended by adopting a proposal that objects not more than 3 1/211 x 50 need not bear the paid for by disclaimer. However, all media advertisements shall contain the paid for by disclaimer. 2 AAC 50.380. EARLY CANPAIGNING is amended by adopting a new subsection (b) and deleting inconsistent portions of subsection (a). It proposes to provide that a state candidate may begin making expenditures upon filing a letter of intent with the Alaska Public Offices Commission certifying the individual and his or her campaign will comply with AS 15.13. 2 AAC 50.390. CIVIL PENALTY ASSESSMENTS FOR THE LATE FILING OF A CAMPAIGN DISCLOSURE REPORT is amended by changing subsections (d)(1)(A), (d)(1)(B), (d)(1) (C). and (d)(1)(0) to raise civil penalty assessments to the amount permitted by law. Further, the proposal deletes the Commission's case -by -case review of reports over 30 days delinquent in the aforementioned sections. 2 AAC 50.401. VOST ELECTION FUNDRAISING BY CANDIDATES AND CONTROLLED GROUPS is proposed to permit limited post -election fundraising to discharge an indebted- ness from a prior campaign, including such items as reported personal contribu- tions before the election, disclosed debts to others, and the costs of winding up the campaign. x � � .- `. . ' ' - ' � z - - 13 2 AAC 50.450. COMPLAINTS would be amended to specify notifying the subject of a complaint where a complaint file is closed for failure to state a violation. 2 AAC 50.460. PRELIMINARY INVESTIGATION would be amended to clarify that a staff recommendation may include assessment of civil penalties. 2 AAC 50.470. HEARINGS would be amended to specify that a hearing officer will conduct the hearing. 2 AAC 50.905. ADVISORY OPINIONS is proposed to assist persons or groups who are or may be subject to the Conflict of Interest Law, Campaign Disclosure Law or Regulation of Lobbying Law by written advisory opinions issued by the Alaska Public Officei: Commission and providing when a requesting party may rely upon an advisory opinion. 2 AAC 50.910. AVAILABILITY OF REPORTS FILED WITH THE COMMISSION is an amendment providing that all reports filed with the Alaska Public Offices Commission may be provided at cost except for those reports filed by persons who have shown to the satisfaction of the Alaska Public Offices Commission they would be the subject of undue harassment, threats, or economic reprisals. Notice is also given that any person interested may present oral or writ- ten comments relevant to the proposed action at a hearing to be held in the Quadrant Room at the Captain Cook Hotel, 5th Avenue and K Street, Anchorage, r` Alaska, at 1:30 p.m. on August 22, 1985. Individuals wishing to testify by telephone may do so by making arrangements with the Commission staff by August 19, 1985. The Alaska Public Offices Commission telephone number is 276-4176. In addition, written comments to be considered by the Alaska Public Offices Commission, must be received no later than August 19, 1986. It is estimated this action will require an increased appropriation as follows: FY 1986, $24.747.50; FY 87, $24,747.5O; FY 88, $24.747.50; FY 89, $24,747.50 Copies of the proposed regulations may be obtained by writing to the Alaska Public Offices Commission, 610 C Street, Suite 211, Anchorage, Alaska 99501 or by calling 276-4176. The Alaska Public Offices Commission, upon its own motion or at the instance of any interested person, may at the hearing or after it adopt proposals within the scope of this notice without further notice or may decide to take no action on them. . ' Date: � � /,x, �� i?� Tnedaa 5. Pittman Executive Director -3- 1' �.1 I 1 i August 1, 1985 ` y CITY OF KENAI " 0d Gad#%l 4 4"„ 210 FIDALGO KENAI, ALASKA $9611 TELEPHONE 283.7535 �I -- - + TO: Council ,j FROMs Janet Whelan glib City Clerk RE: Mason's Manual of Legislative Procedure Atty. Rogers stated in the June 19, 1985 Council meeting that he is considering changing to Mason's Manual of Legislative Procedure for Council action. I would agree with him. Mason's conforms more to legislative procedures. In reviewing the manual, I find the major changes would be: 1. No second is required for motions. 2. Reconsideration of motion does not require the maker of the motion to be on the prevailing aide. 3. Most actions are by majority vote. t1 I have not reviewed the manual in its entirety (it is 594 pages long!), but I have a copy for your review in my office if you would care to look at "it or if you wish to contact me or Atty. Rogers for specific questions. It seems to be easier to read t than Robert's. jw i ti a At" - g, 9(enai community—Pigzaty A PUBLIC LIBRARY IN SERVICE SINCE 1949 163 MAIN STREET LOOP KENAI, ALASKA 99611 REPORT FOR THE MONTH OF JUNE, 1985 Circulation Adult Juvenile Easy Books Fiction 4269 162T 398T - Non-fiction 5595 566 970 Total Book Circulation 17014 ---- Films, Phonodiscs, Pamphlets, Periodicals 1,626 i Total Circulation.. 18,640 rU Additions Adult Juvenile Easy Books AV Total Gifts 51 36 27 2 116 o Purchases 87 42 16 - 145 Total Additions.. 261. Remedial and Re -worked Books Adult Juvenile Easy Books AV 70 3 15 4 Total.. 92 Interlibrary Loans Ordered Received Returned - I r Books 41 28 25 AV 15 35 32 r$ Interlibrary Loans by our Library.. 27 Books 1 Volunteers Number.. 66 Total Hours.. 1,447 Y Income }.. Fines and Sale Books 377.75 == Lost or Damaged Books 8.75 -� Xerox 140.75 '. Donations 357.15 Total Income for June, 1985.. $884.40 - - J - --- - - { ! r 1 I .., , . r •r'1iiY+trry M ..waww• �nsvebr wr •i .1 .�� . • .. vKtvYw.� 1� 9�enat Ifommunity-fdtaxq A PUBLIC LIBRARY IN SERVICE SINCE 1444 163 MAIN STREET LOOP J KENAI, ALASKA MI I Library Cards Issued June, 1985 j Jj — - Kenai 269 Anchorage k Homer 1 Kasilof 8 � _ Nikiski 11 Soldotne 49 3 r Sterling 10 r 352 r Library Patronage... 7,324 Persons r li 1 /vr� 9' 9(enal eommunll y Y19%a%y A PUBLIC LIBRARY IN SERVICE SINCE 1949 163 MAIN STREET LOOP KENAI, ALASKA 90611 REPORT FOR FISCAL YEAR 1984/1985 Circulation Adult Juvenile Easy Books Fiction 16,739 5,776 14,755 Non-fiction 20,999 2,038 2,997 Total Book Circulation 63,304 Fims, Phonodiscs, Pamphlets, Periodicals 6,279 Total Circulation.. 69,583 Additions Adult Juvenile Easy Books AV Total Gifts 952 3.16 128 70 1,266 Purchases 1,675 190 165 26 2,o56 Total Additions.. 3,322 ,J Remedial and Re-yorked Books Adult Juvenile Easy Books AV Total 502 69 l04 21 696 Interlibrary Loans Ordered Received Returned { Books 626 527 W4 AV 396 315 295 MicroFiche 1 1 .I Interlibrary Loans by our Library 1' Books 663 Films 493 Phonodiscs 5 AV 128 Out of State Requests.. 66 I, Volunteers Average Number 36 Total Hours 8,030 1- Income Pines and Sale Books 6,084.09 Lost or Damaged Books 857.99 Xerox 2,320.50 - - Donations 1,527.10 Miscellaneous 8.50 Total Income for Fiscal Year 1984/1985.. G; $10,798.18 i , w r t . 4 y ti I I I, 1 , f ��- �enal L'omn.unLEy ..�l�izazy A PUBLIC LIBRARY IN SERVICE SINCE 1040 163 MAIN STREET LOOP KENAI, ALASKA MI I i Library Carda Issued in Fincal Year 1984-1985 Kenai 2,048 I Anchorage 6 Anchor Point 2 i _ Clam Gulch 15 Cooper Landing 1 Romer 4 Juneau 1 T ' • 1 KaoiloP 84 King Salmon I Moose Page 1 Nikiaki 215, _ !1 4 Ninilchik 9 Soldotna 563 Sterling 53 3,003 Library Patronage... 73,183 Persona I r i i I I .. ---ter �r - - � :.- ______�.:✓_--- - ;4: I f i j= Z, h1 r-0 — 10 KENAI RIVER NEWSLE77E'F--�u - &ne ►' - Number 8 July 2, 1985 NEXT ADVISORY KR9MN Adviso r Boards July 11, 1985, 10s00 a.m. Borough BOARD MEETING: gu q, Soldotna. calls 283-9187, 265-4519. OTHER MEETINGS Perdts Cammittees July 11, 1984, ismsediately following SCHEDULED: KRBMA Advisory Board Meeting, Boraugh Building, Sol- dotna. Calls 753-2724, 265-4519. BiolMical/Upland Habitat Cmmittees July 10, 1985, 7:00 p.m., Cooper Landing c`ammsnity center. Calls r PLANNING UPDATE: 552-3307, 265-4519. River Fisheries Caaaittees July 9, 1985, 5s00 p.m., Bor- ouo BRldinq, So otna. Calls 262-9193, 265-4519, ay6789>„�� Social/Recreation Caamittees July 8, 18, 1995, 6s00 p.m., ,ti9 �►�:,tBorowil Building, Soldotnao Calls 561-5115, 265-4515. �uL P, 1, Lands Committees July 11, 1985, lls00 a.m., Borough Building, ,.I ' C►rr,. 80 otnas y 18, 1985, 3s00 p.m., Borough Building, Soldotna. Calls 262-9011, 265-4519. 'rev a t2�Z", hide Co anittee s No July meetings. Agency Committees No July meetings. Jul Cordon Davis, a nationally recognized resource planner f=m Portland, Oregon, was guest speaker at the June KRBMA Advisory Board meeting. Davis's journey to the Kenai was sponsored by the U.S. Fish and Wildlife Service. Davis talked about his eo�erienfces working on the Gray's Harbor and Coos Bay Special Management Area plans, both of Mich used citizen advisory boards similar to the Kenai River Advisory Board. He introduced the ideas of using *mitigation banks" and "agency letters of intent" as methods for resolving conflicts and matting sure the plan works. Davis distributed a two -page information flyer on "lessons learned" from same of his projects. Copies of this paper are available from the Division of parks and Outdoor Recreation upon request. Some highlights are as followss - Make sure your finding is adequate to finish. Present technical information in ways that people can understand. CaaApromis, is essential to resolving conflicts. Decide now how the plan will be used. Ttfs f tthe Vnd*M Advisory Board will be an abbreviated version The board will break -off after usual business, and work within their committees. iJ ' to .r I 0 J .j 10 .J z=NFO - /r CITY OF KENAI �l edpdal of 4"„ 210 FICALOO KENAL ALASKA 90611 TEWHONE 283 - MS I BACKGROUND AND PERSONAL DATA - CANDIDATES FOR APPOINTMENT TO COMMISSIONS AND COMMITTEES NAME aA4eJ ;r-, Resident of City of Kenai? I S How long? �/Q 1/2S Home Address �¢S-%a �+eR.,s; �z eel Tel. 2-p13 - -44 7 Bus. Address 9r1rl Zo,,4 / ..v Tel. 7s z4 Name of Spouse 4r Presently employed byZj!eVAAi ,��..�,,,.,s,./4 Job Title kCIA T' i),'sl. ,g.4-b/a/.c c7.'2ec1w Current Membership in organizationss A i /` Sys. -fir t�Aslc. /C�► it �r� c 6�s ,� rS� Past Organizational memberships tt��t en aA,- / p C 4SSA , s'FYs.TC. be N. k Cd ' .4 cy^- Committees interested ins Eve e- ra �/o,J Si, ature h •• • i 6 1 1 President /\ is$ Vice President J 2nd Vice President Treasurer Past President Executive Director/Manager Kenai Chamber d Commerce J Box 497 Kensi. Alaska 99611 Fred Braun Fred Braun Sport Shop Leroy Heinrich Union Chemical Ron Malston MALSTON'S Matt Amundson First National Bank Bob Williams Chevron USA Glenn Jackson Tesoro Alaska Jim Carter Retired FAA Harold Dale Leo Oberts Insurance BA! Brighton City of Kenai Gene Collins Homer Electric Assn. Penny Dyer Penny's Travel Agencies Dennis Swarner Kenai Vision Center Roger Holt Attorney-st-Law Don Gilman Food Town Liquor Lester Werra KPCC Bogue Morgan National Bank of Alaska Mark Winston Footwear Gallery Vern Lotstedt, Jr. SouthCentral Air, Inc./ Kenai Air Alaska Sue Carter City of Kenai 210 Fidalgo St. Kenai, AK 99611 0 293.4648 778.9121 2834906 283-359 776.8161 776.8191 2SM272 293.7591 283-7530 W2.5831 2834468 292.7575 283.3M44 M7651 202.5801 283.7581 2834515 283.7676 283.7999 BULK RATE U.B. POSTAGE PAID KENAI, AK 99611 Permit No. 12 Pf*4kd h I t � � t f . s t 1 ' ' I i I RM f --IERE COMES THE 4TH OF JULY PARADE11111 Please join with us on Thursday, July 4th, for the Annual 4th of July Parade which will begin at 11:00 a.m. and travel down the Kenai Spur to Main Street. The American Legion, Post #20, is the sponsor of the event with Jim Wilson as this year's parade chairman. All participants should line up at 10:00 a.m. on Frontage Road (behind the Uptown). If you wish to be included, please call the Kenai Chamber at 283-7989 or the American Legion at 283-9922. SEE YOU ON THE 4TH FOR AN OLD- FASHIONED ALL AMERICAN CELEBRATIONI OUR CONGRATULATIONS AND APPRECIATION to the Kenai Peninsula Vet Center Tor their efforts in bringing the replica of the Viet Nam Memorial to Kenai. All those in attendance were deeply moved with the ceremonies on opening day in honor of the Memorial. KENAI CITY COUNCIL will address a resolution at their July 3rd meeting relative to the expenditure of the 2.3 million dollar State appropriation received by the City of Kenai as a result of the last legislative session. 1985 Business Directories are available by contacting the Kenai Chamber Office. WELCOME NEW MEMBERS: Bill Moore; Muriel Lobdell; Royce Adams; and Loren Stewart of BIG EDDY JETTY. The Chamber is rapidly approaching our membership goal of 400 members for 19851 BEAUTIFICATION: The Beautification Committee, headed by Tim Wisniewski and Ron Malston, ,-_will begin judging of residences, businesses and multi -family dwellings in the Chamber's Annual Summer Beautification Award program. If you know of any residence, business or multi -family dwelling that should be included in the judging, please call the Chamber office at 283-7989. RETAIL MERCHANTS COMMITTEE of the Chamber will sponsor a City-wide promotion "Kenai Softball Sidewalk Sale" on July 12, 13 and 14th. This special sales event will coincide with the Kenai Peninsula Clarion's Annual Softball Tournament which will be held in Kenai during that weekend. Watch for many specials from participating merchants and please make wel- come all teams involved in the tournaments during their stay in our community. VISITING KENAI ON JULY 24th THROUGH JULY 26th will be approximately 300 young ladies from Alaska and Outside who will be attending the Order of Rainbow for Girls 23rd Grand Assembly. The Kenai Chamber will hold five membership meetings in July -- all at noon at the Kenai Merit Inn., July 3rd - Michelle Fleming, Alaska Support Industry Alliance/Outer Continental Shelf July loth - Borough Mayor Stan Thompson - "Mill Split" July 17th - Mike Boylan, Outdoor Recreation Planner/U.S. Fish & Wildlife Service July 24th - Kay Brown, Director, Div. of Gas b Oil/Dept. of Natural Resources July 31st - Mead Treadwell, Yukon Pacific 1, lol r MAYOR'S COUNCIL ON AGING /p ' j JUNE 10, 1985 THE MEETING WAS CALLED TO ORDER BY PRESIDENT, BETTY WARREN. ROLL CALL WAS TAKEN, ABSENT WAS FRED CHAMBERS. MINUTES FROM THE PREVIOUS MEETING WERE READ AND APPROVED. SHIRLEY HENLEY REPORTED ON THE UNITED WAY MEETING. SHIRELY HENLEY 1 'I --_- MADE A MOTION STATING THE COUNCIL SUPPORT THE UNITED WAY, THE MOTION WAS SECONDED BY SYLVIA JOHNSON. MOTION CARRIED. DIRECTOR, PAT PORTER SUGGESTED THAT THE WINDOWS AND DOORS BE REMOVED FROM BETWEEN THE SOLARIUM AND THE DINING AREA OF THE SENIOR CENTER. SHIRLEY HENLEY MAD A MOTION TO HAVE THE DOORS AND WINDOWS REMOVED, THE MOTION WAS SECONDED BY ANN BALZAN. MOTION CARRIED. NUTRITION WAS NEXT ON THE AGENDA. MEAL COSTS WERE DISCUSSED. THE ORIGINAL i GRANT PROPOSAL WAS SET FOR 54 PERSONS. THE AVERAGE NUMBER OF MEALS NOW I �� I � BEING SERVED AT THE CENTER IS 64. IT WAS SUGGESTED THAT A CHECK BE MADE WITH OTHER SENIOR CENTERS AS TO THE NUMBER OF PEOPLE NOW BEING SERVED. THE JULY NEWSLETTER WILL CARRY THE PROBLEM. r MARION DAVIS ASKED FOR TIME TO REVIEW SOME ASPECTS OF THE CENTER. THESE SUBJECTS WERE, AARP MEETINGS AT THE CENTER, FUNDS ASKED FOR IN THE PETITION, PIONEER H=Sp ETC....... _G k PAT PORTER REPORTED THAT THE BINGO PERMIT WAS NOT RENEWED BECAUSE IT TOOK TO MUCH TIME FOR HER STAFF. IF THE SENIORS WISH TO TAKE ON THE PROJECT THEM- ' f = SELVES, THERE WOULD BE NO PROBLEM. THIS ITEM WILL BE PLACED ON THE JULY ' AGENDA. 7�� - PAGE 2 �r JUNE 10, 1985 MAYOR'S COUNCIL ON AGING MEETING THE SUNDAY OPENING OF THE CENTER WAS DISCUSSED. AT PRESENT THERE ARE ONLY 4 SENIORS USING THE CENTER AT THIS TIME. IT WAS SUGGESTED THAT THE OPENING BE STRESSED IN THE JULY NEWSLETTER TO PROMOTE MORE INTEREST. CODE OF CONDUCT. THERE WILL BE A WORKSHOP, CONSISTING OF 3 MEMBERS, BEING I SYLVIA JOHNSON, BETTY WARREN AND DR. MOORE. PLACE TO BE ANNOUNCED. NEXT ON THE AGENDA WAS THE PLACING OF TICKETS ON THE TABLES WHEN THE EXPECTED PERSONS DO NOT ATTEND. IT WAS SUGGESTED THAT THE COUNCIL PREPARE A POLICY REGARDING SEATING FOR THE LUNCHEONS. THE PROBLEM WAS TABLED UNTIL THE JULY MEETING. SYLVIA JOHNSON REPORTED ON THE CONFERENCE ON AGING IN DENALI PARK. SHE ' STATED THAT GRANTS ARE AVAILABLE BY PRIVATE ENTERPRISES FOR FUNDING FOR I ►' BUILDING OF SENIOR APARTMENTS. PAT PORTER STATED THE NEED FOR SEVERAL MORE SIGNATURES IN THE PETITION FOR ADDITIONAL BOROUGH FUNDING. ' RESPECTFULLY SUBMITTED GENE SIPPERLY SECRETARY a: Ir' - • S d I t I . I r • . I N IN UFO aS/ta TO: United States Department of the Interior NATIONAL PARK SERVICE WASHINGTON. D.C. 20240 JUL 15 Jut 1£85 4 Mr. Tom Wagner, Mayor z`n2t t�bOr 210 Fidalgo net HOLY. ASSUMPTION ORTHODOX CHURL' Kenai, Alaska 99611 Kenai, Alaska Dear Mr. Wagner I We are pleased to inform you that the boundary proposed for -the above property has been formally established by the National Park Service. The property is listed on the National Register of Historic Places and is eligible for the benefits of listing described in earlier correspondence. We gave careful consideration to the comments we received and in some cases the documentation or boundary has been revised if the National Park Service concurred with the comments. The date of the Keeper of the National Register's signature on the enclosed form is the date the boundary was formally established. We appreciate your cooperation and interest in the National Historic Landmarks program. Sincerely, O,A u4. 4 , 4�� Carol D. Shull Chief of Registration National Register of Historic Places Interagency Resources Division Enclosure F. r -1 f I or— `i - PAY ESTIMATE N0: OAVRN�a3 CITY OF KENAIcv; lot. u' CF �' \7-B'f Project STANDARD DRIVE, THOMPSON PLACE - 1984 ROAD.; as Couttea. MEETINir or � �QY c�� T ; City MR. --..Q Attorney i /•�-{ ,eirc ' Contractor Central Alaska Construction �4(✓fna ce works --13 city earn I Address P. o. Box 1594 Council OX ONO QY smut---..QyC� - - Soldotna, Alaska 99669 Project No. Phone 776-5515 Period From to ANALYSIS OF ADJUSTED CONTRACT MOUNT TO DATE 01 Original contract amount $178,928.50 «- ;OZ Net change by change orders �— I3O Adjusted contract amount to date ANALYSIS OF WORK COMPLETED ® Original contract work completed _ 1,49 `f•j,,L,. � OS Additions from change orders completed —10 OMaterials stored at close of period — 4 O Total earncdO +&(D- L /� 4. JJ r ® Less retainage of _ 1075 percent _ /y„�?3,r��v= ✓ OTotal earned less retainageO7 -O = 10 Less amount of previous, payments ��Q/,`� ✓ 11 Balance due this payment oK J- 7 96. 37 Contractor KEI,A► Rod! tt; wwws DIRT. CC : Central laska Construction v/W Mr. ---{] Ant. Coot. Engineer --{] City Engr, ._..a wet „N, g Wince. Corthe11, gry�n —p R/w Sec. —(] Struts ---Q Oft Insv,-- f3 SUP —Q ----- ---{] STP 1 { 'i i T� I M Pa f;,• i or •--.,ti PAY ESTIMATE N0:_____ STANDARD DRIVE, THOMPSON PLACE 1984 ROAD IMPROVEMENTS CERTIFICATION OF CONTRACTOR Ace "lain lt to the best of my knowledge and belief. I certify that ill items and .imounts shown on the face of this periodic F.srimate for Partial P.syment ate correct. that ill work has been performed and -"or materiel supplied in full accorJrnce With the requirements tot the retc•fenceJ Contract. end or July iuthorired JeViations, substitutions, alterations, andior additions; that the foreftoing is a true and correct atitemcnt of the contract iccouot up to ,inJ incluJinst the last Jay of the period covered by this Periodic Estimate; that no part of ehv "Halanee Due Phis Payment" has been received, and chit the undersiltned and his subcontractor is have -(Cheek eppllasble this) a•�omplicd with all the labor provisions of said contract. b. C' Complied with .Ill the labor provisions of sail contract except in those instances Where on honest dispute exists with ror spaCt to seiJ Irbot rrovisluns• (if (b) is chocked, doserlho P.lefly nefuro of dispute.) l9ia Title CERTIFICATION OF ARCHITECT OR ENGINEER I certify that 1 have ehcckcJ and vctified the above ,Ind fetexciinic Pcrltxlle Estimate for Partirt Payment; shot so the best of my ! r work aJggv an.1 belief it is o true +Ind efsreet statement of work rerfofmuJ ond"or matcriol supplied by the contractor; thre all work anJ or material inclined in this 1 ctiodic Estimate has bccn inspected by me and, ur 1+y my fluty authoti2eJ represent:itive or rssistanes end th.+t it his l+cvn 1kHormed ondhr sapplicJ in full accordince Stith regtsiremants td the teferenve contract. anj '• this p•trti.tl ptyntvs elrimed inJ requested by the contractur is correctly comrated fin the basis of wrdk perfurmrd rnJ,'ar mite- tlal surplie Jrtc, r! <ilcnad Wince, Co 11'; 8��i31Yt1 VAN 9-.S►Oi3b•- PRE•FAYMENT CERTIFICATION BY FIELD ENGINEER Cheek type of puvneni eerNNedr C f have checked chi% e'.timate ag'sinsr the conrriett•f's Sch.•dnL• .,f Amurnits foot C-ontract itaymenix, ilia notes ind teparts of my i inspectios ntit tile rfttiec-c ,tttd the It•riods ie report% ubmittv-1 f.v Ill..arelciteet 'enFinyvr. It it my orini(In that the %ritvmVn work ppattormt•.1 JIM 't+r Initc•ri.sls -ill ltlicJ t% aveutrra, this chi, t onirscat of a t, uhµ•tttn� tha tayutrcmanrs of the cuntt.tet, ,tn,i tiles the conttrclot %haul) l+v riiJ nc�• rinuunt tequastc•J .ibote, -2!ol certify this ,111 *fork .fn.l tot fuatcriaN under the voliffict Ili, ! can in•ircarad by me .irid that it ha► been I•arfufmaJ inJ 'or sup• rlfcJ on lull aecot.lifq•a with the n'yulrask'nfs of Ilk• efsttra.t. Wince, Cort ell, ftyboulM.., Metal irprt+at•J rCofM.wcttrwi Wft.•rrf IDwlal ff i I I I ()Ox p,% IypXppTNA. A1.AiliA rxianU C N 8 U LT I N 0 ENGINEER Mike riainM7 .E• July 25, 1985 ,'i` 109. `i9000, tog 9 STATEMENT Keith Kornelis Director of Public works I: Or;o„ < 29 38-s, 66 City of Kenai Box 580 -q!(, r y3, 3 66; 3Y Kenai, Alaska 99611 Airport Main Apron Extention CAD Project No. 85043 Progress Billing thru July 141 1985 Professional Services Engineer I - 9.0 Hours 8 067,' $ 603.00� Project Engineer - 55.5 Hours @ $57- 3,163.50- Inspector - 149.0 Hours 0 $40,- 5,960.00- - 108.5 Hours (OT) @ $50- 5,425.00� Technician II - 1.0 Hours @ $42- 42.00 Technician IV - 26.0 Hours 0 $27- 702.00 Draftsman I - 8.0 Hours 0 $35- 280.00 , - Secretary I - 7.5 Hours 0 $28- 210.00 -,� Davis Bacon Rates 2 Han Survey Crew - 15.5 Hours @ 1,627.50- 3 Han Survey Crew - 5.5 Hours @ $130- 715.00- Regular Rates 2 Han Survey Crew - 27.0 Hours 0 $87- 2,349.00- $21,077.00-- Expenses Nuclear Densometer Daily ntal 9 Days @ $100/Day o $ 900.000, Mobile Pield Office - 6 ays 0 $10-" 60.00-01 North Pacific Air - $10 x 1.1-- 11.00-"'$ 971.00 Laboratory h Sieve Analysis w/Mash - 10 0 060" $ 600.00- Moisture Content - 3 @ $12-, 36.00- Proctor - 1 @ $265 265.00- Densities 1st - 1 0 $45-' 45.00-' i 2nd - 1 0 035 35.00 ' 6 981.00 f, Total Amount Due This Billing 023,029�;r f i J CONSULTING ENGINEER OOX 9 37 fyp OOMA ALASK A OPOOU tUQ /1 : nO - 40PQ - Mike .E. M E M 0 To s Charles Brown City of Kenai ' From$ Mike Tauriainen __-._.. Subject: Airport Main Apron Extention CAD Billing Attached is a copy of our fee summary concerning the Nuclear Densometer daily rental rate. Test were made on the following dates (see attached summary) 6-21, 6-24, 6-27, 7-3, 7-4, 7-5, 7-12, 7-16, and 7-17 for a total of 49 Test 9 Test 0 045 - 0 405.00 40 Test @ 035 � 02805.00 A daily rental rate of 0900 was much more cost effective. The two densities you were charged at the unit price were called out from our office and not done by our inspector on the job. Also attached is a copy of the Alaska Kwik Ropy bill, as requested, in re -checking the date, this should be charged to the portion design of this � g p project, and has been removed from the bill. Thank you for bringing the error to our attention, and if there are any further questions, please give us a call. 0 4 t _ r j 1 ,4111 7.4 11, Y 7v o a. bra 9,S A City of Kenai 210 Fidalgo Kenai, Alaska 99611 R'.q,Fs South Spruce Street July 9, 1985 Invoice #14544 To invoice you for engineering & surveying services in accordance with our agreement with the City of Kenai on the above referenced projects Contract Amount 7000.00 Previous Billings (1"1.50)" This Billing yOr a 2. o0 Contract Amount Remaining 136.{o man areal 1 E hours 0 130.00 2080.00 ,0' 1 hour OT @ 130.00 +0 tN s& 13a.vo 2-man crew 21 hours 0 92.00-o" 1932.00-#' 1-man crew 9 hours ® 55.00 -1 495.00 2.5 hours 0 55.00 !14 i927N ! 3 7. fa i I i • Engineer I 11.5 hours a 65.00-I 747.50 f r�Z2.00 — 700.00 = y�;2.o• 44 TOTAL THIS INVOICE - 6x el p� �p� s COuvC1L :nEEtlrjG of --� GO /dd /0 . �K o"9 ��'I c;tY •!r. --F ttean.,y .0119 cork Original Y umtttlJ 3y 2M2 West Northern Ughts Blvd. lAnchorage, Alaska 99502l Tolephona 90 7 / 248-2888 / 24849 19 1 F Y,�'^7; .e..i.-'- :r.•.�. .rh. .�n. ter:. - - I .... . _f+.. "...-. s.. r....-�.. City of Kenai FT 85 Road Improvement Projects MONTHLY PROGRESS REPORT Job No. 6510-4 Date 7/9/85 Contractor Ocean Technology, Ltd. ONO Projects South Spruoe Street 4�1.`���� 4: Activities Completed: C1h1 wOtt�' All engineering and surveying gomplete�.ti�' Activities In Progreses Minor drafting revisions and plan checking. Activities Planneds Presentation to the City of Kenai on 7/18/85. >+ 'j Prepared bys Reviewed by: ! Percentage Completed: Overall Surveying Engineering Specifications 97% 100% 97% 95% ;of tw�7 1Bt'�9 I(d�s" `I City of Kenai '�!(if'(j¢'f�7►lo-` 210 Fidalgo Kenai Alaska 99611 REFS Cook Inlet View Drive & Lilac Street To invoice you for engineering services in i with the City of Kenai on the above referenc Contract Amount Previous Billings This Billing Contract Amount Remaining 7.2 d' V h'o o, Oceadech July 9, 1985 Invoice 14543 i went , 4 a . � • r CAA 2-man crew h�oure 0 92.00552.00 � EnxineerrII t 52,5 0 65.00 -o' 3412.50 - t Draftsman IZ 'G 1 hour 0 34.00 .00 -1 2� 9 q�. �o ,. !; TOTAL THIS INVOICE ML. LO 04' FOR COUNCIL MEETING OF � 7 8 S �,,,¢ .� ��.� � �Q C4� ✓.a+e .purrs----r'] r:;tr Clerk erialn�i fry " �bmtt[0 • Council OK (J7o (]Ycs Cw— 2502 Weat Northern Lights Blvd. lAnahorage, Alaska 995031 Telephone 9071248-38881248.1919 i j . I' ti J r-7' wi;, City of Kenai Fi 85 Road Improvement ProJeots MONTHLY PROGRESS REPORT Job No. 6510-3 Date 7/9/85 Contractor Ocean Technolo Ltd. Projects Cook Inletp Lilac `\ Activities Completeds All engineering and surveying has been.completed. Activities In Progress: Final drafting revisions. Activities Planned: Presentation to the City of Kenai on 7/18/85. Prepared by: Reviewed bys Percentage Completed: Overall Surveying Engineering 98% 100% 98% Specifications 95% • i, J - i i1 a. - .J i S J . _.d 1 City of Kenai 210 Fidalgo Kenai, Alaska 99611 REFS Juluissent Basin View, Ames, Bmrbarls Drive OceanTech July 9, 1985 Invoice #14546 To invoice you for engineering services in accordance with our agreement with the City of Kenai on the above referenced projects Contract Amount 35500.00 Contract Amendment 3750.00 Previous Billings (29838.00) � This Billing (6610.50) Contract Amount Remaining 2801.50 Ir 2-man grew 9 hours 0 92.00� 828.00 / -man crew 9 hours 0 130.00' 1170,00 1-man crew 8 hours ® 55.00 � "0.00 � Prof Engineer (Beauaard) 1 hour 0 70.00� 70.00 Engineer I MUTIA uF 18.5 Hours 0 65.00-' 1202.50 -' FOR COUNCIL —p cur 14W. --u Attwey Draftsman IZ(Luton) 70 Hours 0 34.00 2380.00- e-s.,Y>s` ►rows —f] City CWk rv� ^��/ —f�- OflbMit TO- %=- ��rbrMtted d1r—L- CeynW OJ< 0% {'Yes Draftsman I (Speer) 13 Hours 0 40.00 25 0.00 TOTAL THIS INVOICE /off 2502 West Northern Lights Blvd. /Anchorage, Alaska 99503/ Telephone 907/248&3M 248.1919 v r i L �J f- w •.r ii-•.... .... .....•�..,nur._.-...�. • ' as:ywwr�ru-iM-..-A�w►w..�k.•..n:.r-f . __- •_ _. ...i '..! i City of Kenai FT 85 Road Improvement Projects MONTHLY PROGRESS REPORT Job No. 6510-5 5is17�8Date 7/9/85 Contractor Ocean Technology,r� J Projeots Juliussen, Basin View .9mes, Bambara Angler, GO Ames Extension Activities Completeds �1'°LULU„ '•i All surveying and engineering ha eon completed. Activities In Progress: Minor drafting revisions and plan cheoking. , i uu Activities Planneds i Presentation to the City of Kenai on 7/18/85. Prepared bys a {' Reviewed bys ".' Percentage Completeds Overall Surveying Engineering Specifications 99% 100% 100% 98% Y J ' i 1 City of Kenai 210 Fidalgo Kenai, Alaska 99661 REFS Extend South Ames Road July 9, 1985 Invoice #14545 To invoice you for engineering services in accordance with our agreement with the City of Kenai on the above referenced projects • Contract Amount 3950.00-e �„ �w//o;sa sr-lyry$ This Billing 2100.00 Contract Amount Remaining 1650.00 2-man crew hours 0 92.00 552.00 I 1-man crew , 4 hours 0 55.00 220.00 ` Ln i�neer II 1 h6 ours ® 65.00 1040.00 { Computations 4 hours 0 42.00 168.00 Draftsman (Speer) 3 hours 0 40.00 120.00 r. TOTAL THIS INVOICE 21 .00 feR r,OUtiC)L 'tEBTfit6 0F OrtoiAel Tt:: LLrn>tM0 Btr�L:.. Council QX (,-1t10 Gres ---, Ck_._, 2502 West Northern Lights Blvd. l Anchorage, Alaska 995031 Telephone 9071248-38881248.1919 i, t . i r - i 1 1, i i� e WINCE • CORTHELL 9 BRYSON 0 3 7, Y4'o10, kb 9 7 XAIFO-00 CONSULTING ENGINEERS P O Un 1041 KINAI• ALASKA 907.213-4672 99611 171 6b'r. Oo Amended Billing July 29, 1985 85-25 City of Kenai 210 Fidalgo Kenai, Alaska ! Attention: Keith Kornelis r -- I Subjects Billing for Inlet Woods Construction inspection Please consider this invoice for Inspection Services provided for the subject project. Engineer I 15.5 hrs 0 $58.00 0899.001, Engineer III 37.5 hre 0 $49.50-,' 01,856.25 " Engineer IV 267.5 hrs 0 $40.50--� $10,833.75 v Sr. Inspector 9.0 hrs ® 041.50� $373.50 Typist Survey 2.0 hrs 0 $30.00� $60.00 Invoice t29,507.001/ +10632,457.70 Boils invoice t2160.00r +10%-" 02,376.00 Amount Charged to Project $48,r$6 pw w7 ry, Amount Due 48 856. 20 ' �_ - � �NQ I certify that the above charges are correct and no payment has been received therefore. Very truly yours, WINCE-CORT'HEM-BRYBON pulm &&Avbp-� Philip W. Bryson i - FOR NiuKiL MU11N4 Of - �r �Q _c1ty Mv. .�(� Attww ublit Mass city Cwk _ Ow w To=AL Subin kd By COMN OK C1No DWI Q-- i Philip W t,yroe ►1 Alan N Carkdl P l Frank W Wings ► t 41 f • 1 J I 4� 6- i 0 . 4", loot )�t�SS�C�QIes t & ''STRUMm. Ji Neson2/ P-0.80XISSS KBINW, ALASKA SGS11 215 FIDALGO, SUITE 204 Ju I v 10. 1 Citv of Kenai 210 Fidalqo St. Kenai, AK 9961I ON STATE 0 512 S. PROJECT Pon coulax. MEETING of 41FIQUI&I=70 MY Mgf- —r3 Attwft$ 11 ffift'le WQ1b `0 C111 9W4 Original Contract Amounts *79,006.00,0"' '9244 ir _b T Previous Billed 5/6 - 5/13/851 Payments Receiveds PROFESSIONAL SERVICES 5/14 7/26/851 Principal/Engineer 16 hrs/*75. 00 Inspector 70.5 hrs1*50.000(S.T.) 4.0 hrs/$61.50"O(G.T.) Clerical 5 hrs/*28. 00,0' SURVEY PERSONNEL 2 Man Party - 16.5 Hrs/$126.50.11#1 3 Man Party - 35.0 Mrs/*176.50" MISCELLANEOUS EXPENSES: Vehicle C"Oftu 09 13NO *2 X' 002 29 t. �o) 1,200.00- 3,525.00- 246.00-- 12.50-w 2,087.25-- 69177.50--- 9 days/$40.00 360.00-11 Photos 61.55 0' OK BALANCE DUES 0 J T, 0 CO I N .�yy-�. �. 'Jn • 1,, 1• I' �� - eison SSOCIUIeS eTRUCTUF P.O. BOX less KENAI. ALASKA 88811 816 FI0ALGO, SUITE 804 7-Z Y9000, brv9� July 30, 1985 .a City of Kenai ti ' fi r' 4, � FOR COUNWI, MRtTt�tG pE �-? Kenai , AK 99611 �;r'+, �' ' ;*41111ycer.d C(ty CW 4� tt nl C=1��`� • aaUa1 TaC� subnnu �� i'ATEMENT 09 oft Oyu M8448 - MAIN STREET LOOP, LAKE, MARINE, GRANITE POINT, FBO ROAD - INSPECTION Original Contract Amount: $112,660.00-"0' Previously Billed through 7/7/851 $81,41798 ✓ Payments Received: 481,417:98) ✓ PROFESSIONAL SERVICES 7/8 - 7/25/85: Principal/Engineer 6/Hrs/$65.00 � 390.00 -1 Inspector 80 Hrs/*40.00e(S. T.) 3,200.00 59.5 Hrs/$49.00,0(0.T.) 2,915.50 _.; SURVEY PERSONNEL 1 Mart Party - 1 Hr/$66.00" 66.00 " ' 2 Man Party - 3 Hrs/R126.50� 379.50 I. i 3 Man Party - 41.5 Hrs/$176. ' 7,524"Z1.5 j•q,o• y }r I MISCELLANEOUS EXPENSES: BgQ Vehicle 12 days/$40. 00 � 4SO.00 i Copies 279 S .15 41.S5 Prints i J 22 0 1.50 ' BALANCE DUE: i 7:fr6i�i►�i i w, , 1 J � � Y � H CohfVA&1' WINCE • CORTHELL • BRYSON CONSULTING ENGINEERS r o $9x 1041 901.280.4672 F KINA1, ALASKA 99411 A0 72, yF0vo, ko 9 7 City of Kenai 210 Fidalgo Street Kenai, Alaska Attentions Keith Kornelis Subjects Billing for Standard Drive and Thompson Place Road Improvemonts Inspection � `7 •foe, o0 �y27.7� i � 16, 0 7 Z. ;z S Please consider this invoice for Inspection Services provided for the subject project. Engineer I 37.00 hrs. © $55.50 � $2,053.50 -l' Engineer I11 63.5 hrs. 0 $47.00 � $2,984.50 -1 Engineer IV 77.00 hrs. 0 $38.50.*' $2,964.50 - Technician 130.00 hrs. 0 $40.50 -0 $5,265.00 Surveying Invoice 84-106 (1) $4990.00 +lOR / 05,489.00-00 Invoice 84-106 (2) $2210.00"+109' $2,431.00 ,o Soil Testing Invoice $1165.0e+ 10Y0* $1,281.50 - Mileage 849 Mi 0 $.35/Mir 297.15 Amount Charged to Contract $22,766.15 4' Previous Payments 68,427.75 Amount Due $14,336.40 0kQ I certify that the above charges are correct and no payment has been received therefore. Very truly yours, WINCE-CORTHELL-BRYSON vil .'ip wl Bryson ` ►Ailir W s'ysen ► I FOR COUNCIL MMING OF �- %- rr City Mgt. Monty Rojbikk�W, wks city ,Clerk fin C 0041101 Toga Submtttr�0, Colmoil OK 13ND Oyes C1a .... P.4;1,4 Most" DEPT. »--[J City Engr. -..- J3 Wtr 4 Sw►. ----[] P/w Sto. —.-0 Streets --., tfi119. le;A --Q Shop —13 -Q SIP Abe N Coitholl I/ monk W Wing• r E II �1 i 1 tjP- ay "Working together for the river n 0 W06 Q I MUD PROPOSALS WANTED The Lands Committee of the Kenai River Special Management Area Advisory Board is requesting proposals and ideas from the public. Lands Committee goals and objectives are: GOAL: TO PRESERVE AND PROTECT FISH AND WILDLIFE HABITAT VALUES OF THE. KENAI RIVER CORRIDOR BY ENSURING RESPONSIBLE AND ENVIRONMENTALLY SOUND LAND -USE ACTIVITIES. Objectives: Maintain the functional integrity of land areas supporting crucial l.ifecycle stages of important fish and wildlife species. To accommodate private property interests and rights while protecting upland and riparian habitat values. GOAL: TO PROTECT AND ENHANCE PUBLIC USE AND ENJOYMENT OF THE. KENAI RIVER BY PROMOTING ATTRACTIVE AND ENVIRONMENTALLY SOUND LAND -USE ACTIVITIES THROUGH, BUT NOT LIMITED TO, ESTABLISHING A COMPREHENSIVE SET OF LAND -USE POLICIES AND GUIDELINES IN COOPERATION WITH THE KENAI PENINSULA BOROUGH AND THE CITIES OF KENAI AND SOLDOTNA. Objectives: Maintain the natural appearance and scenic qualities of certain river/lake segments. Ensure that there are adequate public lands adjacent to the special management area for river access, fishing, camping and other public purposes. Protect archaeological, cultural. and historical resources in the Kenai River corridor. The Kenai River watershed is being studied without regard to land ownership at this time. The committee will be holding public meetings later this summer and needs input from interested members of the public now. Proposals should be in writing and should satisfy some aspect of the above goals and objectives. Deadline for August 1 1981, For further ft information call: Sharon Jean, 2 -9011; Les Palmer, 2 2- 517; Dave Stephens, 561-2020. Mail proposals to: Kenai River Planning Alaska State Parks Box 1247 Soldotna, Alaska 99669 Kenai River Ptanninc, Pouch 7001, Anchorage AK M10, AnchorsII 27 .26W Kenai Area Offitce, Box 1241 Soldotna, AR 9N69 SOWOtne 252-Mi Kenai Penineuta Borough, Box W, Sotttotna, AK Mgt Sot"Ine 2824"1 AWicenivlatpiNPaneaneow- Reaestton,oepmmmiorNaturalResources,tocaopematlemrinlme"WPV*"&saouph. I 2 APPLIL aT 7N AND CERTIFICATE FOR PAYMEN k "` A t)OC1JMFNT 0702 :AGE ONE OF PAGES 1 TO (Owner): CITY OF KENAI PROJECT: EMW yZgRARY ADDITION APPLICATION NO: 1 Distribution to: KENAI, ALASKA KENAI, ALASKA,., qN41Y1 �,PERIOD FROM:05/31/85 0 OWNER ARCHITECT �O , Y % v O O, J-p TO:07/29/85 CONTRACTOR CARMEN ATTENTION. ' CAN VINCENT GINTOLI CONTRACT FOR: AUG 1985 to ARCHITECT'S 13 G •, do y, ePl•,ti PROJECT NO: c' ofCONTRACT DATE: May 31, 1985 � CONTRACTOR'S APPLICATION FOR PAYMENT • ' y Canjr4�1&11j'QAIA Do umcnas t G703Wis attachein d, connection with the Contract. CHANGE ORDER SUMMARY Change Orden approved in previous months bi Owner TOTAL. ADDITIONS -0- DEDUCTIONS Approved this Month Number Dat@Appfoved TOTALS Net change by Chan a Orden —0- The undersigned Contractor certifies that to the best of his knowledge, information and belief the Work covaed by this Application for Payment has been completed in accordance with the Contract Docu- ments, that all amounts have been paid by him for Work for which previous Certificates for Payment were issued and payments received from the Owner, an that current payment shows) herein Is now due. CONTRACT Cqqy0 s•+w, Ove;q / Jo-y3 By. Date: ?12StL8s The present status of the account for this Contract is as follows: 11 �. ✓ ORIGINAL CONTRACT SUM ....................... i ear - rt�n _ ran Net change by Change Orders ..................... f -0- a -t t 2 CONTRACT SUM TO DATE , , , , , , , , , , , s ............. 497, 670.00 Q� ss ' TOTAL COMPLETED A STORED TO DATE ........... i 38,775.00 (Column G on G703) 3,877.50 / ✓ QI RETAINAGE 10 % ......................... i LLLO777CCCCJJJJ{ I or total in Column 1 on C703 34, 897.50 P" w TOTAL EARNED LESS RETAINAGE .................. S :- 0 `V LESS PREVIOUS CERTIFICATES FOR PAYMENT ....... s (" 34,897.50 . CURRENTPAYMENT DUE ......................... f cti f , i ` 7` v. i State of: AWKA County of: o before e� this M !? day of J J q ,19 t•5 Notary Public.K3L'Ils~ Subscribed and%expl �hC , s' My Commission: (1 /c3q IS$ ARCH&Ecrs CERTIFICATE FOR PAYMENT AMOUNT CERTIFIED In accordance with the Contract Documents, based on on -site obser• (Attach explanation it amount card ied diflers from the amount applied lot.) vations and the data comprising the above application, the Architect ARCHITECT: artifbs to the Owner that the Work has progressed to the point indicated; that to the best of his knowledge, information and belief, By: grza Date: the quality of the Work is In accordance with the Contract Dow- mints; and that the Contractor is entitled to payment of the AMOUNT This Certificate is not negod le. The AMOUNT CERTIFIED Is payable only to the Co CtRTIFlEO. named herein. Issuance, payment and acceptance of payment are without prejudice rights of the Owner or Contractor under this Contract AEA DOCUMENT GM • APPLICATION AND CERTIPICATE FOR PAYMENT • APRIL 1978 EDITION • AIAe • 0 1978THE AMERICAN INSTITUTE OF ARCHITECTS, inks NEW YORK AVENUE, N.W., WASHINGTON, D.C. 20= i CONTINUATION SHEET AIA DOCUMENT C703 vAGt 2 OF 2 PACES i AIA Document G702, APPLICATION AND CERTIFICATE FOR PAYMENT, containing APPLICATION NUMBER: 1 - I Contractor's signed Certification is attached, APPLICAi ION DATE: 05/31/85 In tabulations below, amounts are stated to the nearest dollar. PERIOD FROM: 07/29/85 Use Column I on Contracts where variable retainage for line items may apply. TO: ARCHITECT'S PROJECT NO: 1' AIA OOCUME • CONTINUATION SHEET • A/RIL 1978 EDITION • AIM • O In THE AMERICAN TUTS Of ARCHITECTS,1735 NEW YORK AVL, N.W., WASHINGTON, D.C. 2=6 A S C 0 E i G '• H I ITEM No. DESCRIPTION OF WORK SCHEDULED VALUE COMPUTEDWORK TOTAL COMPLETE AND STORED % BALANCE RETAINAGE This Application Previous Applications TO DATE (D+E+F{ (G*C) TO -0 IC-0 , Work in Place Stored Macsrlals (not in 0 or 0 1. Mobilize 17,500 -0- 9,425.00 -0- 9,425.00 �i5 8,075.00 942.50 2. Sitework 33,000 -0- 28,050.00 -0- 28,050:00 85 4,950.00 2,805.00 3. Landscaping 11,000 -0- -0- -o- -0- -o- 11,000.00 -0- 4. Paving 3,000 -0- -o- -o- -o- -o- 3,000.00 -0- S. Demolition 5,000 -0- -o- -o- -0- -0- 51000.00 -0- 6. Curbs i Walks 8,000 -o- -0- -0- -o- -0- 81000.00 -0- 7. Concrete slabs 20,000 -0- -o- ;-0- -0- -o- 20,000.00 -o- 8. Masonry E; Footings 39,000 -0= -0- -0-, -0- -o- 39,000.00 -0- 9.. Metals 6,000-0- -0-. -0- ' -o- -o- 6,000.00 -0- 10. Carpentry 63,000 -0-t -o- --0- -0-' -0- 63,000.00 -o- il. Millwork 5,000 -0-'1 r -o-.. -o- -o- -o- 51000.00 -0- 12. Insulation a V.B. 51000 -o- -o- -0- -0- -0- 51000.00 -0- 13. Roofing 86,000 -0- .• -0- -0- .. - 4-1S. -o- .86,000.00 -0- 14. Hollow Metal 4,000 .-0- -0- -0. -o- -0- 4,000.00 -o- Wood Doors 4,000 .-o- -0- -0- ` -0- -0- 4,000.•00 -o- 16. Wood Windows 70000 -o- -o- -0-1 -0- -o- 7,000400 -0- 17. Finish Hardware 7,000 ' -0- -0- -o- .-o- -0- 7,000'.00 l8. Glass A Glazing 4,500. -o-• -0-1 -o- •-�0- -0- 4,500.00 ,-0- -0- 19. Gypsumwallboard- 9,000 -o- -0- -0. -o- -0- 91000.00 -0- 20. Acoustical 4,000 -o- -o- -o- •-o- -o- 4,000.00 -o- 21. Flooring 11,000 •-o- -0- •-o- -0- -o- 11,000.00 -o- 22. painting 14,000 -0•• 1 -0- -o- -0- o- -o- 23. Misc, Spec. "A' Soo, -0- =0- , -0-•, 1 -0- 0- .14,000.00 11500.00 -0- 24. Equipement 2,670 -0- -0- -0-'-o- 0-• 2,670.00 -o- 25. Cabinets t': 13,000 -0-. -0- -0- -0- 0- 13,000.00 -0- 26. Mechanical 47,000 -0- -0-' -0- -0- o- 47,000.00 -0- 27. Electrical 65,000 -0- 1,300.00 -0- 1,300.00 • 2 63,700.00 130.00 28. project closeout 2,500 -o- -o- -0- -o- o- 2,500.00 • -0- 497,670. -0- 38,775.00 -0- 38,775.00 58,895.00 ,877.50 If A.. wc4 1 SNP-a.6 INVOICE McLANE & ASSOCIATES, Inc. RE418tERE0 LAND eURVEVORY P.O. Box as • PHONE ae� .sle BOLD TN yeey' LAB�t •�ajpQeOr p�9�g9 INCLUDE INVOICE Ju yi, 19if NUMBER ON CHECK N° 3284 City of Kenai Mr. Keith Kornelis Department of Public Works 210 Fidalgo Kenai, Alaska 99611 JOB NO. 84-4047 ,.LEAeE •AV PROM INVOICE Note: Any amount Unpaid after 10 daye w111 be subjeot to an Interest Charge of 1.5% per month. Sprucewood Glen L.I.D., charges through July 20, 1985 - per attached documentation. / Fee jkGovo - - Tax (K) Due $ i j FOR COUNCIL A110114 City UV, —p Attorney Fir �u�1 W OW utr c�err p b�c ov��` �9 n a Orkbw T iN Submmtted of =w N 0 9 J ! Cour" OK []No OvaCIt..�— r'i 0�'F4 ��v -b YTv/o. to 9 7 � a , -1 ..E I y Ji 1 !1 1 T _1- `r Mo ANe ASICCIATBA, INC.r PROFESSIONAL ENGINEERS. SURVEYORS & PLANNERS July 30, 1985 Mr. Keith Kornelis City of Kenai Department of Public works 210 Fidalgo Kenai, Alaska 99611 Reference: Sprucewood Glen L.I.D. Our Job Number: 84-4047 Our Invoice Number: 3284 Charges through July 20, 1985 ,2, odr'o, So a44! Surveying & Engineering Charges (per attached schedule) $ Alaska Kwik Kopy's Invoice 3499 25.15--" Alaska Kwik Kopy's Invoice 3870 10.50 Laboratory Services (per attached schedule) 445.50 Total Contract $ 24,500.00 � Billed to Date (above) Remaining Contract Amount , P.O. BOX 48B 80L00TNA, AK 888A9 807-283-421 B • I . Sprucewood Glen L.I.D. -� Our Job No. 84-4047 Invoice 3284 Date LS E1 D DO CF2 CF20 CF3 CF30 S1 CT 1-29-85 6.0 1.0 1-30-85 6.5 4.0 1-31-85 2.5 3.5 3-01-85 1.0 3-07-85 1.0 3-11-85 1.0 3-12-85 1.0 3-21-85 2.0 4.0 3-22-85 2.0 5.0 6-27-85 8.0 6-28-85 4.0 4.0 6-30-85 4.0 7-01-85 5.5 7-02-85 5.0 7-07-85 1.0 5.0 7-08-85 7.0 7-09-85 6.5 7-10-85 7.5 7-11-85 6.5 8.0 .5 .5 7-12-85 8.0 .5 ; 7-14-85 8.0 7-15-85 9.5 7-16-85 8.5 7-17-85 8.0 3.5 1.0 1.0 I r 7-18-85 8.0 2.0 Totals 5.0 106.0 19.0� 1.0 5.5/ 1.0� 28.0 1.0� 4.0 1.0 i RLS Registered Land Surveyor 5.0 Hours @ $-66.ft $ 3e8=e E1 Civil Engineer 106.O/Hours @ $ 52.50*� 5,565.0( D1 Drafting 19OHours @ $ 32.00-1 608.0(. DO Drafting, Overtime 1:0/Aours @ $ 49-r89390o.49.0 CF2 Certified Field Crew, 2-Man 8 ///. o 0 5.5 Hours @ W 6/o.to .S CF2O Certified Field Crew, 2-Man, Overtirery/001.0"Hours @ /K/.00&5B CF3 Certified Field Crew, 3-Man rQ /6Y.00 28.0 Hours @ 9'4,V9;%79&6--8<. r CF3O Certified Field Crew, 3-Man, Overtim/ood.0/Hours @ $�i2:-C8 �ro.eo 222.0( yo •-G6 .,,.e..s,.; ��$�6,Y-�C.?Z- : rA�Fe^$-�� 8A , ,.e ns oti CT Computer Technician 1.0�Hours @ $ 40.00--- 40.0( salvd„/w Total $5r.-5� rz� 06^0, So 9 1 r� y. ,4/G W — O 1 k- 40-19i 0. to 9' -7 • PAY ESTIMATE CITY OF KENAI Page 1 'r/V P-0-0?, N 0 : onin Project SPRUCEWOOD GLEN SUBDIVISION L.I.D. 1985 Contractor Zubeck, Inc. f Address 7983 Kenai Spur Highway Kenai- Alaaka 99611 Project No. 84-4047 Phone 2A3-3991 Period From 6/25/85 to 7/30/85 ANALYSIS OF ADJUSTED CONTRACT AMOUNT TO DATE -01 Original contract amount _ $168,073.00 pNet change by change orders -0- 0 Adjusted contract amount to date $168.073,00 wrizracLor _ Zubeck, Inc. City Mqr. --�] nnorn r Muok worts --(] city Clerk Engineer McLane 6 Associates AaLiv ---13 — ! -- Orkl" fi WSub itwo BY—:: CONX11 09 L3NO (7 Ck— F { I y � i I r' 1 I r 1 , Page 2 of 8 PAY ESTIMATE N0: nnp SPRUCEWOOD GLEN SUBDIVISION L.I.D. 1985 i CERTIFICATION OF CONTRACTOR According to the best of my knowledge and belief. I certify that all items and amounts shown on the face of this Periodic Estimate for Partial Payment are correct; that all work has been performed and/or material supplied in full accordance with the requirements of the referenced Contract, and/or duly authorized deviations, substitutions. alterations, and/or additions; that the foregoing is a true and correct statement of the contract account up to and including the last day of the period covered by this Periodic Estimate; that no part of the "Balance Due This Payment" has been received, and that the undersigned and his subcontractors have -(Chock spptleeblo this) s. Complied with all the labor provisions of said contract. b. [] Complied with all the labor provisions of said centtaet except in those instances where an boats: dispute exists with te- spect to iald labor provisions. (It (b) Is chocked, describe briefly nature of dispute.) ' J Zubeekr Inc. (Convector) (atpiatur uthaisod Reproveatstivo) 31 —m`� 19TItle 14�214g- wr CERTIFICATION OF ARCHITECT OR ENGINEER f I certify that I have checked and verified the above and foregoing Periodic Estimate for Partial Payment; that to the best of my knowledge and belief it Is a true and correct statement of work performed and/or material supplied by the contractor; that all •, work and/or material included In this Periodic Estimate has been inspected by me and/or by my duty authorized representative or assistants and that it has been performed and/or supplied in full accordance with requirements of the reference contract; and that partial payment claimed and requested by the contractor isFotrectly computed on the basis of work performed and/or mate- tlal supplitd t date. � Stoned lam- A �- • McLane atmtiemap•n Date PRE -PAYMENT CERTIFICATION 8Y FIELD ENGINEER Cheek type of payment cerNthsdt {; + 1 have checked this estimate against the contractor's Schedule of Amounts for Contract Payments, the notes and rep orts of my inspections of the protect, and the periodic reports submitted by the architect/engineer. It is my opinion that the statement of work performed and/or materials supplied is accurate. that Cho contractor is observing the requirements of the contract. and F that the contractor should be paid the amount requested above. 1XI certify that all work and/ter materials under the contract has been inspected by me and that it hat, been performed and/or sup- j{ plied in full accordance with Chu requirements of the contract. + _ - i z. McLane b AssociateCyietd :engineer) (Date) Approved { (Contracting Writer) (DetN r J R • Page INr a S • PAY ESTIMATE N0: CITY OF KENAI 14/1-- -1-' oil, Oo Project INLET WOODS SUBDIVISION Contractor Doyle Construction Company Address Route 1, Box 1225 Kenai, Alaska 99611 Project No. Phone 776-8552 Period From i. •Joto _7 :77'-pr ANALYSIS OF ADJUSTED CONTRACT AMOUNT TO DATE 0 Original contract amount $1,743,750.56 " � 'O Net change by change orders- O3 Adjusted contract amount to date �r��13' 76'p• S� ANALYSIS OF WORK COMPLETED ® Original contract work completed �SS� 1,t9. 39 OS Additions from change orders completed —o - © Materials stored at close of period heo, aIS 39 ✓ O7 Total earned04 +05 + 60- (0 15% 9u2.78 i' ® Less retainage of percent to1,Sg4.28 O9 Total earned less retainage 70-08 - 5 541f348 •50 0 Less amount of previous payments -0. 11 Balance due this payment �S 5�•,'34f3.5�� H N LOUNCiL MEETING oF---�-Jrjl ��-• 1+VALTSGLOr wyic a.VilerGiucclVu wmpnny ;<LJ r.y mv►. .-..., -tb��aj 60"I iic woes --- L., ..' ♦.•.w Engineer Design: McLane & Associates �Q finM �y- Ottof W ro� subinict 0 6yt Inspection: Wince, Corthell, Bryson Oftw Ox(ENO pws Ck-- R 'I T� i n R PAY ESTIMATE NO: INLET WOODS SUBDIVISION CERTIFICATION OF CONTRACTOR According to the best of my knowledge and belief. I certify that all items and amounts shown on the face of this Periodic Estimate for Partial Payment are cerrectl that all work has been performed and/or material supplied in full accordance with the requirements of the referenced Contract, and/or duly authorised deviations, substitutions. alterations, and/or additions; that the foregoing is a true and correct statement of the contract account up to and including the last day of the period covered by this Periodic Estimatel that no part of the "Balance Due This Payment" has been received, and that the undersigned and his subcontractors have -(Check applicable tine) a.] Complied with all the labor provisions of said contract. Is. [] Complied with all the labor provisions of said conttact except in those instances where an honest dispute exists with re- spect to said labor provisions. (it (b) is checked, describe hrfelllf Refute of dispute.) J�.� ✓.�L L:tl..�s 9Tn�-� T7u� By Doy a CutieeructiS1110ftany (bl{nat. ► .sf Authorised Rspreasngt;w) July 29, 1985 19 Title Superintendent CERTIFICATION OF ARCHITECT OR ENGINEER I certify that I have checked and verified the above and foregoing Periodic Estimate for Partial Payment; that to the best of my knowledge and belief it is a true and correct statement of work performed and/or material supplied by the contractor; that all work and/or material included In this Periodic Estimate has been inspected by me and/or by my duty authorized representative or assistants and that it has been performed and/or supplied in full accordance with requirements of the reference contract; and that partial a nt claimed and requested by the contractor is correctly computed on the basis of work performed and/or mate. rial supplie o at". Signed100k,&, (AfGhtfeat or en44teer) Date '/� 31 —Ki PRE-PAYMBNT CERTIFICATION BY FIELD ENGINEER Cheek 0110 of PSYmenf eetrltledt [] 1 have checked this estimate against the contractor's Schedule of Amounts for Contract Payments, the notes and reports of my In, of the project, rnd this periodic reports submitted by the architect/engineer. It is my opinion that the statement of work 00erformed and/or materials supplied is accurate, that the contractor so observing the requirements as the contract, and that fhe contractor should be paid the amount requested above. [f I certify that all work and/or materials under the contract has been inspected by me ant that it has been performed slid/ur sup- plied in full accordance with the requirements of the contract. eX. .e.� - -7— (pteld gnslnser) (Date) Approved (Costfee tna Officer) (Date) U i r INVOICQ McLANE & ASSOCIATES, Inc. 0901919n9b LAND OuRVEVO110 P.O. Bolt /ea a PNO/lE so$ dale SOLOOTNA. ALASKA 00e110 PLEA6E INCLUDE INVOICE July 31, 1985 NUuoeaONCNECu N° 3292 e City of Kenai Mr. Keith Korneli$ Department of Public Works 210 Fidalgo Kenai, Alaska 99611 J08 NO. 85-4001 KEA9E •AV IAON /NVOICe NOW, Any amount unpaid after 10 day! w111 be subject to an Intenlat charge of t.6% Oar month. Engineering 6 Surveying Services Rendered through July 27, 1985, MAP Projects, billed under Addenda No. 2, per attached schedule. Fee $ 1383V.43 Tax (K) Gov Due $ ,8 1.43FX0d6'y3 e44 tote, V.p Ss, FOR COUNCIL U2911W Of - �s a10 3 q, Y 13 city Ulf, —p More" L naCaryC 4L4 isni —6 O/;q" T��'4Mjttelisly�� COtlW OK []NO QYet CtI— i t f7• f � ' �J ��_- r, • IT o t G A80001ATESs INC. — PAOFESMCNAL ENMNM, SLMVEYORB S PIANNM July 31, 1985 Mr. Keith Kornelis City of Kenai Department of Public Works 210 Fidalgo Kenai, Alaska 99611 References Aliak, McCollum, Cinderella Fox, Princess & Linwood Extension BILLED UNDER ADDENDA N0. 2 Statement of Charges rendered through July 27, 1985 References MAP Projects Our Job Numbers 85-4001 invoice Numbers 3292 Engineering & Surveying Services I2,6J/,00 444? (Per Attached Schedule) $ iZ749*8--89- Copies of 30 Sets per Contract 1,035.43 Total Contract with Addenda $ 99,3,5 .00 Billed to Date (Including Above) 99 6.605 i Balance 553`35 7 Gv..fr�.o� �99Jto,00 Pd �< kY,ft,-I> L P.O. BOX 4H6 SOLOOTNA, AK 88W9 907-283-4218 I d' r G, MkIII r.l... NPO—:3O tNVOtCQ McLANE & ASSOCIATES, Inc. 11E1110*tatD / ANQ BI/NVEVONY P.O ODt A•• • PNDNE &as 4218 SOLOOTNA. ALASKA soot• •LEASE INCLUDE INVOICE July 31, 1985 NUMnEN ON CNECX N° 3291 4city of Kenai Mr. Keith Kornelis Department of Public Works - 210 Fidalgo Kenai, Alaska 99611 -- - JOB NO. 85-4001 KaAaa •Ar /110M 1NVOICa Note. Any amount unpald after 10 day$ Will be aub)act to an fntaraat ahar0e of 1.6% par month. MAP Projects, Billed under Addenda No. 2, overage from contract concerning charges to copy 20 extra sets of Specifications, Plans and Bid Schedu3e'� "'fie rence Alaska Kwik Kopy's Invoice No. 4253 ; 1 4 Fee $ 624.53 OK - Tax tK) Gov't. r' i . Due 624.53 L°�Q �f i i FOR COUNCIL UU(ING Of (. --O city up. Auo " ktua Wallis Cul GMt AIC, Y�o/o, To suauuu�a sr— • C"w OK Duo Dyet:....�.. j i 4 j � A I l 1 � ' .l _1 • ;r t 1 ZAoFO—a> KENAI BEAUTIFICATION COMMITTEE July 23. 1985 Kenai City Hall Tim Wisniewski, Chairman 1. ROLL CALL Presents Wisniewski, Routh, Saling, Shelden, Absents Nelson, Them (excused) - Also Presents Pat Porter, Councilwoman Sallie Bailie, Jim Simeroth 2. AGENDA APPROVAL Adds Pat Porter item 5-a and Councilwoman Bailie item 5-b 3. PERSONS PRESENT SCHEDULED TO BE HEARD Report from Kasprisin not available 4. APPROVAL OF MINUTES of July 9, 1985 Minutes were approved as submitted 5. OLD BUSINESS a. Pat Porter Pat has observed that a sign has been removed from the Spur Hwy ROW beside the First National Bank in the Kenai Mall, leaving a large hole which could be potentially hazardous. Jim Simeroth will look into obtaining fill for the hole. The Committee noted that the ROW along Main Street Loop is very low and also could use fill. Jim Simeroth �I noted that traditionally, the bank had taken care of that. If some it fill can be obtained from some of the road projects, that area will need enough to prevent too much water backup during heavy rain or breakup. b. Councilwoman Bailie • Report on Meeting with Public Works Public Works Director Kornelis indicated that the plans for a cement form for raising the circle plantings could be implemented with a minimum of expense. Councilwoman Bailie and Pat Porter, having had Jt some experience with berming noted that berminq to not the most ---_( desirable approach as it takes constant maintenance, i.e. more so than level planting or the idea of the concrete forms. I I A � � I r eo, BEAUTIFICATION COMMITTEE July 23. 1985 Page 2 Committee Member Routh asked about the dead trees near the Blue Star Memorial that Mayor Wagoner had mentioned, Jim Simeroth stated that the crews had discussed pulling them up, however, Pat Porter suggested cutting them at the base as this method had worked for her. The Committee discussed replanting trees for the old ones and agreed that trees from the nursery would have a better chance of survival than those transplanted. Committee Member Shelden naked if the Committee would be wise to move ahead before reviewing the Master Plan, the Committee agreed that what small projects are being planned will not hinder the long term Plan. MOTIONs Committee Member Saling moved to request a purchase order not to exceed $500 for the purchase of trees, the size, type, and location (at the Blue Star Memorial) to be left to the discretion of Jim Simeroth, seconded by Committee Member Shelden VOTES Motion passed unanimously. Councilwoman Bailie asked if there were any problems concerning mowing along the ROW's particularly in front of the Katmai, Jim Simeroth answered no, that he had instructed the crews to mow what appeared to be the ROW. There are no markings to indicate private property and ROW, therefore, the crews can only estimate. The secretary reported on the outcome of the request for information from Juneau, Sitka, Ketchiken, Valdez, and Anchorage. There is still information forthcoming, however, generally, no municipality contacted deals with private property or ROW's. Valdez has a grid system whereby the utilities are run at the rear of parcels rather than the front. The Committee discussed letters or awards to go out to the businesses that have attempted to beautify their buildings or property. The Committee agreed to hold off on any decision as to specific businesses until the next meeting. In the interim the Committee will view the businesses and formulate a list. AQpIEs MAR Secretary will do gow Me` Suva* of HW ,swwting. Chair=n N'lsnloov*1 laic asked tAat the Ca■rlttew nest inforAWlly for tlae Sole pvlprow of caRbining tlai lists in order to get t1w auerds out Gefore A vwt Mth. 6. NEW BUSINESS a. Review of Landscaping Master Plan - Preliminary Draft (Draft will be available at the next meeting. Ron will be visiting Kenai the week of August 12th • i J f i 1 { r� 1 7. PARKS & RECREATION COMMISSION REPORT The Commission has not met this month 8. COMMITTEE QUESTIONS & COMMENTS None 9. ADJOURNMENT There being no further business the meeting was adjourned at ls14 PM. The next informal meeting will be Tuesday, August 6th. The next regular meeting will be Tuesday, August 13th. Janet toper Secretary 4 1 . I J i 1 rraj5. t August 2, 1985 zNr-O-3a CITY OF KENAI „opt eapdai 4 440246 Of 210 FIDALQO KENAI, ALASKA M11 TBLMHONS 283. 7M MEMORANDUM TOs Mayor Wagoner and Kenai City Council FRONs eff Labahn, land Manager SUBJECTS Marathon Road Area Planning Study The City Council previously directed the Planning Commission to assess the potential for future growth and development in the Marathon Road corridor. The Planning Commission discussed this issue at their June 26th and July 24th regularly scheduled meetings. The Commission considered various land use alternatives, additional road tie—ins, and the issue of extending water c. & sewer utilities. The Commission concluded that there are several major variables which make a development recommendation inappropriate at this time. It was noted that the Kenai Municipal Airport Master Plan Update and Kenai Comprehensive Plan Update will be the critical studies affecting this area. The Commission agreed that they will be involved in these studies and have the opportunity j' to provide input to both consultants. -' JBLs jl --. is t t- 7 — f: i. J . . ..'.i✓wrtr 4 M r Cl\1 lI�I��'• ,OJ 31.1 jl? ri�+P t tall 'V At,/� 8 KENAI AllgqPI-NINSULA LnNnl(CH A J �'•~vy' BOROUGH ADA NISust T�AT101i SU1LOth /}� II • d� Cl)YCLER'rl SOI,p01t1A, AIASKA . tr,NG)yCfKENAI � • A G 9 M D A CALL NR Rtvfi Wtitt ;t1'�jt 't psi OF ALLP.GIANCE Millieu 00) mw eorvl OD C. INV(N1ITIONt Rev. Richard Plppen, United Nochudlut rnrt•ip ,. :; � Kerlino ' 0. RULL CALL Sewall �1 C4 x N. VACANCY, DESIGNATION OR SEATING OF ASSEKSLYMEMBER GIlek tiI O Uinatick to a1 P. APPROVAL Of 111M)Tflbt July 16. 1985 Mvt4oh.in t;i w Un k• ..,� 6. C(M 111119 : RLPORTS Johnson �., • (.-o � ta) Kducatton tUnSt epbrnsl1l, Johnson, Mullen, Skogntad) SYo used h-t . ty th1 Pinit co (Crawford, Carey, Pandel, Nash) Pandel V po (c) Land Arquis/Die osal (Keene, Johnson, Moore) ' (d) Legislative (Dale, Keene, Skogstad) it) Local Affairs (Carey. Moore. Stephens) if) Public Works (Swan, Date, 1404han) (g) Hatutal Resources IMccehan, Dale, Hutton. Stephens, Glick) I (h) Data Procussinb Steering (Glick, Nash) It. AGENDA APPROVAL AND CONSUT "ENDA t (a) Ord. 85y-57� "Ketone of Late 29•15 and the South 20 ee nTZot 36. Block S. Original Townsite of t Sward Section 10, 716, RIW, S.N. Prom R-3 to General Comnetatal (CC) Otstrict" (itsFryor Y Ruq. P.C.) (b) Ord. 85-58 "Resent of the South Portion of Tract C. Li ewi' a—y 3ubdtvistan, Also Will be Known oa rhr _ Proposed Gateway Subdivision, Addition No. 1, Lots t ; 30.4S, block 2s All of block 3t lots 1.16. Sock 41 and Tract C-3 Section 33. 710. RIV. S.N., City of (. 1 Sward (Mayor Q Req. P.C. ) ,Y Q 1. ORDINANCE: NEARINGS (a) Ord. B -34 "footslog a Now Chapter 2.60 to tM ..� m roug a to Establish a Youth Called aton and to Provide for the tmrotvement of Young v Peuple in Local Governstent" (Caresor y/Ottcio j; (b) Ord, 8 46 "Approving and Increase in the Kenai vn4 nsnsu"ti Borouggh School Dlatrict•s 8ud)(et in Z the Ameashnt of S142.3)I for PIncAI Year 1984-8Y• `� (Mryur) (Finance/Sdtrcetlon> Z (a) Ord. MS-49 t'Attthorlsing the kt•rripr tot .r co.onr tr.sn W tFu*Siaiu of Alot.ka Tutrltingg SSO.AAS Nndr by Ch.rptrr n 96, Session lave of Alaska 19115, and Appr"prt.trtng Those funds to the L.S.R.T. Cunt ingrncy Aca•unt" (Mayor) (Finance/Public Works) Z (d) Ord. BS-S Amend d "Esreblfshirig the Kevsttar Eoldivs • Tr l3it3g v s ern for [< Rtq. P.(:.1 Elands ) (e) Ord..8S•S Amended "Authorlrine. indebtedness by rite sau.lnce o neva Obltgarion Nand, to an Ama,nt tl..r r,. Exceed $95,075,000, for the Purpust of Derirnugr, MnnaglnY.. Inspecting, tmpruving. G,nstrsering and Equfpppta,I tht Central Peninsula Nigh, Nittiskf itfgh. Kenal Elrmunt.try, Nfkiski 8leawntsry, Help# Sehoed And Addition to Soldefria Elementary School, and Pledging Pull Patch and Credit of �1 the borough with ►systent of the Indebtedness to be O Derived frost Tate* Levied Within the Surough, ar object to tow Apptowl"hy the Vutura rr, tloo fkttular Eta .n .no } tp•r.d.vt , t9bS (Mayor> (Flnunrr/P.doa•rr ion) u if) fird. XS-52 "Providing for the Acquisition of Municipal L. rwtii(: i.Y.t'.iStATi0N V.w.•r lIt'reggafy to Ployide for Improvements to land to he M.lintenanre WI) Roads Maintained or Qualified !a1 Prd. 85.53 "Authorizingp, IndebtednpaA By the laan•nl.e tit M.+Int.rtned by the Kenai PoIninnttlrt Nornugh" (Loc.11 Affairs/ f.i•iirial MoI Ignt loin Pilots In .in Am.rtutt Nor to t:x—e-d fliod.f.kl S7,1100,1100, Inr the 141r1111010 of I1e•.IXnl nr., Y.on..r nu rttq•, and tgotppiny. the North Peninsula Recrr'ntiratol 1.11 111ty, t, IN1Xuput'flnN OF gRDINANttF!t and I'Iedp,inr(�. Full Faith and CroAtt Fi rile North 1'enrn.:nl.t RprrentIona Service Area with Paymenr of the IF.Iebre.luea•: 1.1) ffn un1. XS-S6 "Authorizing Receipt of A Grant trtim the Stntp . NS-5 a G to he Derived from Taxen settled Within the North P.nin•o11a T"Auth n S/y0110 Made fi to SReetSt i.r R by P Recreational Service Are•, and Subject to Approval by cite I.awq, 19RS and Appropriating the Yunds to the Project Voters At the Rtautar Election of October 1. 1405" Il+averl Account•' (Mayor) (HEARING 8/20/8S1 • (b) and Authorizing the Expenditure Ord, 85-59 ;or (b) Ord. 85-54 "Authorizing the Receippt of Various Grnrttrt from iT'SL>,-= for Further Development of • oastai Management �—of Alaska Totalling $860,000 Made by Chaptet 116. Plan" (Mayor) Se•sfon Laws of Alaska, 19RS, and Apppropriating rltt• )'rinds to Protect Accounts" (Mayor) (11YAR1NO A/20/AS) (c) Ord. RS•60 "Approving the Land Acquisition of L. 6;vTdiliiai'n Property for the Central Peninsula General (c) Ord. 8545 "Authorizing the issuance of Nvvenue Nonds Ito flo,pital and Appropriating Funds for That Purpose" (Mayor) an Wunt Not to Exceed $250 Million for the Prlrpure 1.f ( ti) Ord. 85-61 "Amending KPB 2.04.070 Endingthe Mayor' Y Constructing a Public Port Facility at Granite Point" (Mayor) (HEARING 8/20186) cati tr;iTYtmvnt Tto Paid Holidays, Sick leave, and Vacations and Amending KFB 7.12.060 to Codify the Assembly's (A) Res. 8S•22 "Supporting the Applications of the City of Rae 1pt of Insurance Benefits" (Dismick) Fier an Kacheask City for Transfer of Lands from the State for Public Use" (Dimmick) (POSTPONED 2/S/85) Ord. 11-61(Allt nate) "Providing for Health Insurance ens a or dies y Members and Amending KPR 2.04.060 M. FORMAL PRESENTATIONS WITH PRIOR NOTICE. UPON SUBJECTS NOT ON and 2.04.070 Pertaining to Salary and Benefits for the THE MEETING AGENDA Mayor" (Glick) N. MAYOR'S REPORT K. raN IOERATION OF RESnIJITIONS O, t1Ti1Y.R N11CitNP.SS !a1 Her.. 85-123 "Allocating a Budget of S1S0.000,00 for Holley- pR �Ti .,t"�' feet From L.S.R.T. Funds" (Mayor) (a) Ord. 85-42 (Sups(.) "Authorizing a Land Exchange (h) Res. 85-135 'Approving the Award of a Contract to Rei6eZ eniT 9eninsula Borough and or t e .instruction of Robinson Loop Road Phase 1(Mayor) Lawrence T. Lancashire in Order to Acquire Right -of -Way for the Realignment of Sports 85-116 "Approving the Design Development Documents -M i.nke Road in Ridgeway" (Mayor) NOTION TO RECONSIDER/Mpr.re Tor 11 dotna Elementary School Prepared by Architect McGlothlin 8allvet" )Mayor) (b) Res. 65-126 "Awthoriting and Directing the Mayor rot rtesncnce ondemnatton Proceedings to Acquire the (.I) Res. 85-117 "Approving the Prototype Design Development 1)ncrtmentr. New Central NecessAry Right -of -May for the Sports lake Road (POSTPONED 7-2-85) or the Peninsula Nigh School and the New Hikiski High School as Prepared by Architect Realtgnment" (Mayor) Maynard and Partch (Mayor) (c) Res. 85-121 "Setting Procedures for Summer Employment r ng c-Gahan) MOTION TO RECONSIDER/MeGahan te1 Rea. 85-I38 "Setting an Advisory Vote of the BoroughP.I�rinr"etc on the SAie and Use of Fireworks Within the (d) Aeseslbly Vote on McGshan Motion to Protest lssuanrc' of Kenai Peninsula Borough and Repealing Restitution 8S•27" Restaurant/Eating Place Liquor License to Sourdn"O SAi's I1 (Glick. McGshan) (1) keq. AS-139 "Pr"vidlny,, for Solicitation of Pryrpnrafl: for P. ASSYMNLY AND MAYOR'S COMMENTS ce of cted with nBorou eofCeKenai CeneraliObligation Bonds the PeninsolsBorough" " Q. PUBLIC CA MENTS AND PUBLIC PRESENTATIONS UPON I(ATTF.RS NOT (Ditrolick) CONTA114ED 10 THE ASSEMBLY'S AGENDA Q.), Res. 85-140 "Provofding for Ballot Prepositions to Acquire R. INFORMATIONAL MATERIALS AND REPORTS lion? Imsornvexent Powers with the Borough Road Matnteodnce :;crvir•e Area" (Mayor) (a) Vacation of Tice Acres Subdivision, Portion of Sertl.ln 3-4. Tbs. R14W, S.M., lies south of scrimp Dtiv. and wfit Fs (11) Ret. 85-141 "Providing for Ballot Propositions to Authorize Diamond Ridge Road torl vide Protecttiio`nQServices. andrsit Settingea Kill 1.evyArea lmit,Fire and S. NOTICE OF NEXT MEETING AND AOJOURNMLNT (August 70, 19115) Providing for the Election of a Five -Member Board" (itavnr 0 Req, of KPB Clerk) tf) Req, 85-142 "Providing for Ballot proppoositions to Authorize i i lo.,l tlrasky Fire St•rvLee Area to Provide Fire Protection Nervir'eq, And Setting a Mill levy Limit, and Providing for the Election of a Five -Member Board"(Mayor 0 Req. KPB Clerk) .i y T,NFO -%,Xf' . CITY OF KENAI „od eap 44 210 FIDAL.00 KENAI, ALASKA M11 TBLEPNONB 78a - me MEMORANDUM FROM: Keith Kornelis, Public Works Director City of Kenai I TOs Wm. J. Brighton, Manager City of Kenai j DATE: August 1, 1985 REs City Cemetery FORS Council Meeting of August 7, 1985 - INFORMATIONAL ITEM F i As you know, Jack LaShot is handling the cemetery improvements for the City of Kenai. He has informed me of the following status on the project. 1. Malone Surveying is presently doing an as -built survey and tentative layout of cemetery plots. When they have completed If I the survey, it will be presented to and discussed with the Cemetery Committee. 2. City crews have cleared the trees, brush, stumps and vegetation from the new area, making it ready for planting lawn. 3. As stated in Jack LaShot•s July 31, 1985 memorandum (a copy is attached), some relocation, repair, dismantling and placement of new fence is required. There is a purchase order before Council for $6,122.50 to have Peninsula Fence complete this work. After the fence is removed, platting completed, and the area seeded, Peninsula Fence will need to do some additional fence work. Part of the cost of this additional work will be charged to the airport budget as this portion of existing fence is already in need of repairs. KK/clf Attachment • CITY OF KENAI od eapdod 4 4 210 R OALOO KENAI, ALASKA 118811 TELEPHONE 283. M5 MEMORANDUM FROM$ Jack LaShot, Engineer City of Kenai TO: Keith Kornelis, Public Works Director i City of Kenai DATE: July 31, 1985 RE$ City of Kenai - Cemetery Fencing - J A purchase order to Peninsula Fence Company for fencing work at the cemetery will be submitted for Council approval at the August 7, 1985 meeting. The following work is includeds w Relocate - 300 LF of 4' fence 0 $5.10/ft. _ $1,530.00 New - 90 LF of 4' fence g $9.25/ft. - $ 832.50 Repair - 4' fence in front of cemetery, including new gate, posts & miscellaneous : $1,435.00 Dismantle 500' of 8' airport fence ; 4 $4.65/ft. = $2,325.00 TOTAL $6,122.50 The above work will allow further topsoil and fence work by our crews where fences are existing. Malone Surveying is preparing a sketch of the existing cemetery and a possible layout for the new areas. Once the layout is approved, we will then be able to better ascertain costs for platting and further fence work. Of further work, part of the costs should come from the airport repair and maintenance budget, as all of the eight foot fence to be relocated is in need of repair anyway. JL/clf rN•...a, : LCt.Ni,e,. OU)w'.•^(• i I : Js�rw— vrw= , _ _ _ PURCHASE ORDER TE • VENDOR CITY of KENAI DENROD • ACCOUNTING 210 FIOALGO ST. PHONE 283.7538 ARY • ACCOUNTING KENAI, ALASKA 99611 :•SHIPPING & RECEIVING :N • APPROVED COPY • REQUISITIONER V ENDOR NO. Peninsula Fence Company TO otlry PREPAY SHIPPING • CHARGEtoo .wwRf N•0.M nr cworArpN PURCHASES AUTHORIZED ONLY WHEN SIGNED ABOVE BY SEPARATE ON INVOICE THE FINANCE DIRECTOR OR HIS AUTHORIZED AGENT ITfMNO, DESCRIPTION OR ARTICLE pOMMI) UNIT UNIT PRICE AMOUNT Relocate - 300 LF of 4' fence 0 $5.10/ft. 1,530.0 New - 90 LF of 4' fence 0 $9.25/ft. 832.5 Repair - 4' fence in front of cemetery including new gate, posts & misc. 10435.0 Dismantle - 5001 of 8' airport fence at $4.65/ft. 2,325.0 TOTAL 69122.5 a,0 LI JU C• E DEPARTMENT 691220 5 001.45030.4538 g..-7— ?6'- BY Ofnurrw rkAp J f - i i I n n �o /r DEPARTIMENT OF ADMINISTRATION DIVISION OF ADMINISTRATIVE SERVICES July 26, 1985 Honorable Tom Wagoner Mayor 210 Fidalgo Kenai, AK 99611 Dear Mayor Wagoner: E 81U SHEFFIEW, POUCH C JUNEAU, ALASKA 99811 ANONEr This will acknowledge receipt of the original grant agreement forms and supporting documentation for Municipal Grant 8/86-306. On the grant agreement forms you stated that the City of Kenai plans to use the grant to design and construct a community center. I believe that the use of Grant 8/86-306 for a community center would be a violation of the appropriation's stated purpose. The purpose for Grant 8186-306 as stated in the appropriation is "roads and projects." I have interpreted that language to mean that the uses of Grant 8/86-306 are limited to roads and road -related projects. The Department of Administration is, therefore, unable to enter into the grant agreement as it now stands. I have enclosed new grant agreement forms for Grant 8/86-306 and am hopeful that the City of Kenai will be able to accept this grant for a road or road -related project. I am sorry for any inconvenience this may have caused the City of Kenai. If you have any questions regarding this matter, please contact Gary Bader at 465-2277. EA/GMB/ES/rmn 5/1D2/0724-01 Enclosures Sincerely, Qeaanor Andrews Commissioner -7_.a D 0 - � �...�.�.- � ...ten.... -- t 1 1 ,; l ,� �� a ,. +� . �. � � s� � F - � 1 . a 1.11. M.. . •: .... .. SECONDHAND DEALERS 6.60.160 - 6.60.170 size of the business of the violator, the gravity of the violation, the number of past and present violations committed and the good faith of the violator in attempting to achieve compliance after notification of the violation. All civil penalties assessed will be enforced and collected in accordance with the procedure specified under this title. (Ord. le88 Art. IV f 1, 1974). 6.60.170 Additional enforce -ant. Notwithstanding the existence or use of any other remedy, the director may seek legal or equitable relief to enjoin any acts or practices which constitute or will constitute a violation of any business license ordinance or other regulations herein adopted. (Ord. 1888 Art. IV f 2, 1974). Chapter 6.64 TAXIS - BUSINESSES AND DRIVERS Sections: 6.64.010 Definitions. 6.64.020 Taxicab and for -hire license - Applications. 6.64.030 Taxicabs, maximum number. 6.64.040 Color scheme. 6.64.050 Expiration of licenses and license fees. 6.64.060 Unlawful to operate taxicab or for -hire vehicles•without liability insurance. 6.64.070 King county taxicab or for -hire license plates. 6.64.080 Duplicate license plates. 6.64.090 Rates. 6.64.100 Display of taxicab or for -hire vehicle number. 6.64.110 Taximeter. 6.64.120 Installation of taximeters. 6.64.130 Flag to be proper position. 6.64.140 Classification and capacity. 6.64.150 Driver's license. 6.64.160 Trip sheets. 6.64.170 Display of license. 6.64.180 Inspection of taxicab or for -hire vehicles. 6.64.190 Direct route of travel. 6.64.200 Unlawful not to pay fare. 6.64.210 Leaving taxicab or for -hire vehicle unattended. 6.64.220 Baggage. 6.64.230 Two-way radio dispatch. 6.64.240 Discontinued use as taxicab or for -hire vehicle. 6.64.250 Solicitation of fares or carrying non-paying passengers or pets of driver. 6.64.260 Condition of driver. 6.64.270 Suspension - Revocation of for -hire driver's licenses. 6.64.260 Licensing fees. 6.64.290 For -hire driver's license required - Application. 6.64.300 Qualifications for a for -hire driver's license. 6.64.310 Seattle -King County Health Department. 6.64.320 Fingerprints and photographs to accompany application. 6.64.330 Investigation of applicants for a-iver's licenses. 6.64.340 Temporary permit. 6.64.350 Issuance of for -hire driver's license. 243 (King County 9-84 ) I 0 . .....�.. . I ., .... . 6.64.010 BUSINESS LICENSES AND REGULATIONS 6.64.360 Expiration and renewals of for -hire driver's licenses. 6.64.370 For -hire driver's license fee. 6.64.380 Damaged or worn-out for -hire driver's licenses to be replaced. 6.64.390 Identification of drivers. 6.64.400 Renewal of license, registration or permit - Late penalty. 6.64.410 Violations and penalties. 6.64.420 Civil penalty. 6.64.430 Additional enforcement. 6.64.440 Scope of authority. 6.64.450 Sufficiency of need of service required as license issuance criteria, for one year from effective date. 6.64.460 Review by county council before termination of effective date. 6.64.470 Moratorium. 6.64.480 Transfer of permit. 6.64.490 Driving record. 6.64.500 Passenger complaints process. CROSS - REFERENCE: Taxicab operating agreement at airport, see Chs. 15.48 and 15.80 of this code. 6.64.010 Definitions. For purposes of this chapter and unless the context plainly requires otherwise, the following definitions applys A. "Affiliated taxicab" means a taxicab associated with a group of taxicabs having multiple owners and operating under the same color or other identification scheme, all of which must operate under an identical schedule of rates and charges. 8. "Affiliation representative" means the individual or organization who has the authority to file rates for a group of affiliated taxicabs. C. "Director" means the director of the Xing County department of aaxecutive administration. D. "Enforcement officer" means the director and his/her duly authorized representatives. E. *For -hire driver" means any person in charge of or driving a taxicab or for -hire vehicle carrying passengers or baggage for hire, as hereinafter further definedl provided, however, that the provisions of this chapter shall not apply to drivers of motor vehicles operated by any municipal or privately owned, licensed transit system. F. *For -hire vehicle" means and includes every motor vehicle other than a "sightseeing• car," "charter bus" or one used by hotel or motel keepers exclusively to convey their guests to and from hotels or motels free of charge or reward, used for the transportation of passengers for -hire, and not operated exclusively over a fixed and definite route; provided, however, that this definition does not include a motor vehicle with a seating capacity, including the driver, not exceeding fifteen persons which operates to transport passengers between their places of abode or termini near such places, and their places of employment, in a single, daily round trip where the driver is also on the way to or from his/her place of employment. 6. "Licensee" means all applicants, including affiliation representative, required to license taxicabs or for -hire vehicles under the provisions of this chapter. H. "Special Rate" means discounted rates for the elderly and handicapped. I. "8pecial Services Vehicle" means a vehicle equipped to accommodate and which is used for the transportation of handicapped persons as herein defined: (King County 9-84) 244 TAXIS - BUSINESSES AND DRIVERS 6.64.010 - 6.64.020 The term handicapped means any person who is physically or mentally disabled who has an identification card issued by a governmental agency which describes the handicap and also has medical certification that the handicap limits the person's activities, functioning and ability to use public transportation facilities. J. "Taxicab" means every motor vehicle uaed for the transportation of passengers for -hire, where the route traveled or destination is controlled by a customer and the fare is based on an amount recorded and indicated on a taximeter, or on a special fare rate or contracted agreement as permitted by this chapter. K. "Taximeter" means any instrument or device by which the charge for hire of a passenger carrying vehicle is measured or calculated either for the distance traveled by such vehicle or for waiting time, or for both, and upon which such calculated charges shall be indicated by means of figures. L. "Motor vehicien means every self-propelled vehicle by or upon which any person may be transported or carried upon a public street, highway or allay; provided, that vehicles used exclusively upon stationary rail tracks,or propelled by the use of overhead electric wires shall not come under the provisions of this chapter. X. "Engage in the business of operating any taxicab or vehicle for hire" means the pickup and transportation of any fare paying pasienger from a point within the geographical confines of unincorporated King County, whether or not the vehicle is dispatched from a taxicab stand or office within any other municipal corporation, and whether or not the ultimate destination or route of travel is within the confines of unincorporated Xing County; provided, that nothing in this chapter shall be construed to apply to taxicabs or for -hire vehicles licensed by any other municipal corporation and transporting passengers from a point within the licensing municipality to a destination outside thereof, whether or not the ultimate destination or route traveled is within unincorporated King County. (Ord. 6887 j 1, 1984s Ord. 4232 § 1, 1979s Ord. 2914 § 1, 1976: Ord. 1888 Art. V 4 56, 1974; Ord. 1120 1 1, 1972). 6#64.020 Taxicab and For -give Vehicle License - Applications. it is unlawful to own or operate a motor vehicle, or engage in the business of operating as a taxicab or for -hire vehicle in the unincorporated areas of Xing County without first having obtained, for each and every vehicle so used, a license from the director, to be known as a for -hire or taxicab license. Licenses shall be obtained in the following manner and under the following condition s A. The applicant for a taxicab or for -hire vehicle license shall show in the applications I.. the true name and address of the applicant; 2. if a corporation, the names and addresses of the principal officers and shareholders thereof; 3. the classification under which the vehicle will be operated, whether as taxicab or other vehicle for hires 4. the year for which the license is sought; S. true and accurate information concerning the ownership, identification, company vehicle number, the name of the business, fictitious or otherwise under which the vehicle is to be operateds 6. the distinguishing color scheme, design or dress, including any monogram or insignia to be used on such vehicle or vehicless 7. whether he/she or any of the principal officers or share -holders have been convicted of any crimes within three years preceding the data of applications 245 (King County 9-84) W. I 6.64.020 BUSINESS LICENSES AND REGULATIONS S. such other information the director may require, which he/she deems reasonably necessary to aid in the enforcement of this chapter. a. The director shall inquire into the correctness of the information furnished, and if so satisfied that the applicant has successfully completed a written examination, tasting the applicant's knowledge of ordinance requirements dealing with ownership responsibilities, prerequisites to licensing, vehicle/equipment requirements and satisfactory geographic knowledge of Xing County, the content of which will be prescribed by the director, that the applicant is the bona fide owner of the motor vehicle, has not the various requirements of this chapter, that the name under which the applicant is to operate and the color scheme used upon the motor vehicle does not conflict with others so used, or tend to deceive the public, that the motor vehicle is equipped with proper state license and city of Seattle license, if applicable, and is properly insured for the protection of the public. as required by law, a license may thereupon be issued in accordance with the provisions of this chapter, authorizing the operation of the motor vehicle under the classification applied for. c. A license may be denied to any person if the director, after due investigation, finds that the applicant/owner hass 1. Xade any false statement on the applications 2. Had a conviction or bail forfeiture involving crimes pertaining to alcohol, controlled substances, prostitution, gambling, physical violence, or crimes directly related to the applicant's honesty and integrity (fraud, larceny, extortion) and ability to properly operate a taxicab business, within three years of the date of applications 3. Tails to pass the written examination required in K.C.C. 6.64.020 B. of this chaptert 4. Exhibited conduct within the past three years in driving, operating or engaging in the business of operating any taxicab or for -hire vehicle which would lead the director to reasonably. conclude that the applicant/owner will not comply with chapter requirements relating to vehicle safety and sanitation standards, insurance requirements, and vehicle and driver licensing requirements; 5o seen refused a taxicab or for-hire'vehicle license or had such license revoked under the provisions of this chapter; provided, however, that any applicant denied a license under the provisions of this chapter may reapply after one year from the denial if the basis for denial no longer exists; 6. Engaged in the business of operating any taxicab or vehicle for -hire for which a license is required, while unlicensed or on a license suspension. Wilful falsification or omission of any information required in the application shall constitute grounds for denial of the license- D. A taxicab or for -hire vehicle license shall be suspended if the licensees 1. Sails to maintain in full force and effect the insurance required in this chapters . 2. pails to comply with the safety and sanitation requirements of this chapter; 3. rails to maintain the taximeter in accurate and good working condition. (King County 9-84) 246 I( " A TAXIS - SUSINESS$S AND ORIV$RS 6.64.020 - 6.64.060 e. A taxicab or for -hire vehicle license may be suspended or revoked if the licensee has been found tot 1. Operate or permit the operation of the vehicle while using or in possession of alcohol or controlled substances, during its operation; 2. Violates any of the provision of this chapter. (Ord. 6887 f 2, 1984s Ord. 4598 § 1, 19791 Ord. 4232 t 2, 19791 Ord. 3926 § 1, 1978t yard. 3547 § 1, 1978: Ord. 3146 § 1, 1977t Ord. 2914 § 2, 1976s Ord. 1888 Art. V § 57, 1974; Ord. 1120 § 2, 1972). 6.64.030 Taxicabs, maximum number. The maximum number of taxicabs authorised to operate and for which licenses may be issued shall be based u n the population of unincorporated King County as determined by the last preceding United States census, at the ratio of one taxicab on each forty-four hundred inhabitants; provided, that this limitation shall not affect taxicabs in operation under reciprocal licenses, except as such vehicles are abandoned through inability of operators to most the requirements of this chapter. (Ord. 3926 § 2, 1978s Ord. 2914 § 3, 1976t Ord. 1120 § 3, 1972). I 6.64.040 Color sohsms. The director shall, in -the interest of protecting the public from being deceived or confused, have the exclusive control in the granting of permission to use any color scheme, design or monogram by any taxicab, affiliated taxicab or vehicle for hire. It is unlawful to use or change any color, design, monogram or insignia on any taxicab, affiliated taxicab or vehicle for hire without the prior permission and approval of the director. Taiiurs to comply with this provision shall be grounds for revocation of any taxicab, affiliated taxicab or for -hire vehicle license. (Ord. 4232 § 3, 1979s Ord. 1888 Art. V f 59, 1974; Ord. 1120 § 5, 1972). 6.64.050 expiration of licenses and license fees. All licenses issued under this chapter shall expire on August 31st of each year. Such licenses may be renewed by the license holder for the succeeding year by making application therefor with the director at least tan days prior to the expiration data. (Ord. 4232 § 4, 19791 Ord. 2914 § 4, 1976s Ord. 1120 § 6, 1972). 6.64.060 Unlawful to operate taxicab or for -hire vehicles without liability insurance. - A. No such license shall be issued unless the applicant therefore files with the director proof of compliance with RCW Chapter 46.72, as now or hereafter amended. B. Additionally, all applicants shall maintain a policy of underinsured motorist coverage which runs to the benefit of passengers; provided that a certificate of self-insurance issued pursuant to RCW 46.29.630 may be filed with the director in lieu of such policy. C. Such insurance as required in A. and B. above, shall be maintained in full fores and effect for the full period to be covered by the permit applied for, and failure to do so shall result in the automatic suspension of such permit. (Ord. 6887 § 3, 1984s Ord. 2914 § 5, 1976s Ord. 1120 § 7, 1972). 247 (King County 9-84) 6.64.070 - 6.64.090 BUSINESS LICENSES AND REGULATIONS 6.64.070 King County taxicab or for -hire license plateau. The director shall furnish with each taxicab or for -hire license issued one or more tags or plates or decals. All plates, tags or decals shall bear a number and the year for which the license was issued, together with the words 'King County Taxicab or For -Hire License." The form, material, and positioning on the vehicle shall be as prescribed by the director. It is unlawful for any owner, operator or driver of a taxicab or for -hire vehicle to operate such vehicle without having conspicuously displayed on such vehicle a license plate, tag or decal furnished and authorized by the director, or to operate the vehicle with expired or illegible King County taxicab or for -hire license plates, tags or decals. All plates, tag or decals shall be and remain the property of King County and upon the revocation, surrender, suspension or expiration of a vehicle license, or if found in the possession of any person other than to whom the license was issued, the plate, tag or decal shall be picked up by any enforcement officer and returned to the director. (Ord. 6887 4 4, 1984s Ord. less Art. V § 59, 19741 Ord. 1120 1 8, 1972). . 6.64.080 Duplicate license plates:. whenever a King County taxicab or for -hire license plate becomes' lost, destroyed or stolen, a duplicate may be issued by the director at the expense of the licensee. The request for a duplicate license plate shall be accompanie4 by the licensee's sworn statement to the effect that such licanse plate has become lost, destroyed or stolen. Should the original of the ordered duplicate be later found, the original plate shall be promptly returned to the director. Zt is unlawful to manufacture or produce any taxicab or for -hire vehicle license plate or duplicates thereof herein provided except by order of the director. (Ord. 1120 19, 1972). 6.64.090 Rates. A. The rates for taxicabs licensed to operate in King County shall be set by the King County council. B. No taxi shall have more than one rate on its meter provided that special services vehicle meters may have one rate for handicapped passengers in addition to the prescribed passenger meter rate. C. Except for special or contract rates and rates for special service vehicles, as provided for in this chapter, it shall be unlawful for anyone operating a taxicab licensed by King County to charge, demand or receive any greater or lesser rate than the following: 1. For passengers for the first 1/6th mile ............... 0........ .$1.00 2. Thereafter 'for each additional 1/6th mile or fraction thereof...$0.20 3. For every one'minute of waiting time*,, o-e 4. Extra charge per passenger over two passengers excluding minors.$O.50 D. Special rates as defined in this chapter shall be calculated as a percentage of the meter rate. E. All special rates and special service vehicle rates must be filed with the director on forms furnished by the director. P. The county council may, on its own initiative, or on the initiative of the director, enact new rates when it deems such change to be in the public interest: or when two thirds of all taxicab permit owners petition the council for a change. If the rate change does not necessitate a meter adjustment, the new rate becomes effective thirty (30) days after enactment. If a meter adjustment is required, the new raw becomes effective when the taxi meter is approved. (King County 9-84) 248 TAXIS - BUSINESSES AND DRIVERS a {1 in reviewing rates the council shall take into account, among other rate, the things, and with the objective of prescribing a just and reasonable following factors$ 1. The public need for adequate taxi service at the lowest level of charges consistent with the provision, maintenance and continuation of such j service; 2. The rates of other liewmees operating in similar areas; M3. The effect of such rates upon transportation of passengers by other modes of transportation; 4. The licensee's need for revenue of a level which under honest, efficient and economical management is sufficient to cover the cost (including all operating expenses, depreciation accruals, rents, license fees and taxes equal to of every kind) of providing adequate taxi service, plus an amount for the replacement of such percentage of the cost as is reasonably necessary deteriorated taxicabs and a reasonable profit to the licensee- The relation may be deemed the proper test of a reasonable profit. of revenues to expenses taxicab rates shall be conspicuously displayed inside and outside - G. All the taxicab so as to be readily discernible to the passenger. The manner of such posting will be prescribed by the director; be 8. 1. Tor new licenses all special rates and/or contract rates shall and when the license is issued the rate part of the application process, becomes effective and must be charged; changing special rates, changes shall be 2. ?or licensed taxicabs limited to two times during the license year. I. It is unlawful to make any discriminatory charges to any person, or to ' make any rebate or in any manner reduce the charge to any person unless such in the filed special is in conformity with the discounts/surcharges contained rates, except as herein provided. for -hire vehicle licensee shall, before commencing operation, t J. Zvery file with the director his/her proposed rate schedule. The filed rate musts 1. se filed on forms furnished by the director; 2. Be in the form prescribed by the directors 3. Se conspicuously displayed inside the for -hire vehicle so as to be readily discernible to the passenger. The manner of such posting will be prescribed by the director; 4. a. por new licenses, be part of the application process, and when i the license is issued the rate becomes effective and must be charged; b. Por licensed for -hire vehicles changing rates, be limited to two j times during the license year. The rates specified in this section for taxicabs and for -hire vehicles K. shall not apply to transportation of persons provided pursuant to a written + contract which establishes a fare at a different rate for specified transportation and which is entered into prior to the passenger's request or transportation and has been previously tiled with the director; provided, that no gontraet may include any provision(s) the effect of which is to directly e indirectly require exclusive use of the transportation services o! the contracting taxicab or for -hire vehicle. The contract shall not exceed one { year. L. Operation of any taxicab or for -hire license without the filing and — display of rates, as herein required, shall be prima facie grounds for the 6887 § 15, suspension or revocation of the taxicab or for -hire license. (Ord. T. 1984: Ord. 4232 § 5, 1979: Ord. 2914 § 6, 1976s Ord. 2192 § 1, 1974s Ord. �' 1888 Art. v § 61, 1974; Ord. 1238 § 1, 19721 Ord. 1120 § 10, 1972). 249 (King County 9-84) 6.64.100 - 6.64,140 BUSINBOS LICENSE AND REGULATIONS 6.64.100 Display of taxicab or for -hire vehicle number. It is unlawful for any taxicab or for -hire vehicle to fail to have Conspicuously displayed, where it is readily discernible by the passenger, the name, number and telephone number where the owner of the taxicab or for -hire vehicle can be reached, the size, location and form thereof to be determined by the _ director. It is unlawful during the hours of darkness to fail to illuminate sufficiently such name and numbers. (Ord. 6887 f 5, 19841 Ord. 1120 ! 11, 1972). 6#64.110 Taxisster. It is unlawful for any person to drive, operate, or engage in the business of operating a taxicab unless the vehicle is equipped with a taximeter which has been inspected by the director, or approved by the city of Seattle pursuant to reciprocal licensinq. It shall be the duty of the owner, driver, or any other person having possession or control of a taxicab to keep such taximeter accurate and in good working condition at all times. Prior to the installation of such taximeter, same shall be approved for operation by an official testing station so designated by the director and upon such approval, a written notice and lead wire seal shall be plainly posted and attached to the taximeter for the information of the public. Such taxicab meters shall be rechecked and inspected at least semiannually in the same manner as the original inspection. It is unlawful for any person to drive, operate or engage in the business of operating a taxicab whenever the lead wire seal of approval has been broken, out, removed or is missing. It is unlawful for any person to fail, resist or refuse the director or any duly authorized agent to test and reinspect the taximeter at any ties. (Ord. 3926 4 3, 19781 Ord. 1888,art. V 4 61, 19741 Ord. 1120 4 12, 1972). 6.64.120 Installation of taximeters. Every taximeter shall be installed at the right side of the driver, either adjoining the cowl or dashboard of the taxicab and at such height that the flag thereof may be 'readily seen by observers on the street. The reading face of the taximeter shall at all times be well lighted and distinctly readable to the passengers within the vehicle. It is unlawful to change the size of the wheels or tires of any taxicab or the Sears operating the taximeter or to change the taximeter from one vehicle to another unless such taximeter is reinspected and approved by the director; provided, however, that a licensee may change from regular to snow or studded tires without reinspection of the taximeter, so long as the change does not operate to increase the mileage registered by the taximeter. (Ord. 2120 f 13, 1972). 6.64,130 Flag to be proper position. It is unlawful for any driver of a taxicab while carrying passengers or under employment to display the flag attached to the taximeter at such a position as to denote that such taxicab or for -hire vehicle is not employed. The flag of such taximeter must be returned to a nonrecording position at the termination of each and every service. (Ord. 1120 4 14, 1972). 6.64#140 Classification and capacity. The director shall by inspection determine the classification and capacity of the vehicle inspected. (Ord. 1120 4 15, 1972). (King County 9-84) 250 TAXIS - BUSINESSES AND DRIVERS 6.64.150 - 6.64.170 6.64.150 Driver's license. It is unlawful for any person owning, controlling, or engaged in the business of operating taxicabs or for -hire vehicles to employ as the driver of any such vehicle, or permit any such vehicle to be operated by a driver who does not have in his possession a valid for -hire driver's license. If any driver of a taxicab or for -hire vehicle shall be convicted of driving such vehicle while under the influence of or affected by liquor or drugs, the for -hire driver's license of such driver shall be revoked and he shall not be granted a for -hire driver's license for a period of at least one year from the date of such conviction. (Ord. 1120 § 16, 1972). 6.64.160 Trip shoats. It is unlawful for any person owning or operating any taxicab or for -hire vehicle to fail to keep an accurate daily record on a trip shoot, the form and size to be determined and approved by the director. All daily trip sheets shall be kept on file for a period of two years at the address for which the vehicle for -hire license is issued. All daily trip sheets shall be open for inspection by the director either while carried in the vehicle for hire or at the address of the licensee. It is unlawful for any taxicab or for -hire driver to fail or refuse to turn in his trip sheet or moneys collected from taxi -trip fares to his employer or his duly authorized agent at the end of each shift worked. The following information shall be contained on each trip sheets A. The driver's name as licensed and for -hire driver's license number; 8. The driver's residence address and telephone number, C. The company name and vehicle number; D. The date, time and place of origin and dismissal of each trip (including trips where the passenger did not complete an actual trip); E. The fare collected or to be charged; F. The number of passengers paying or not paying and any other items for which a charge was or was not made; C. The beginning and ending speedometer mileage of the vehicle for each shift worked; H. The beginning and ending time for each shift worked; 1. The beginning and ending motor readings for each shift worked; J. If the trip is made pursuant to a contract as specified in Section 6.64.090, the trip shoot shall also show the fare as indicated by the meter and an identification of the contract under which the transportation is provided. The driver of any taxicab or for -hire vehicle shall, on request of any passenger paying him a fare for any trip, issue a receipt showing such information for said trip. Failure to keep an accurate daily trip sheet or the withholding of a trip sheet or fare moneys collected by a for -hire driver from his employer or his duly authorized agent shall be grounds for suspension or revocation of his for -hire driver's license. (Ord. 2914 § 7, 1976s Ord. 1120 § 17, 1972). 6.64.170 Display of license. Every owner or operator of any taxicab or for -hire vehicle shall at all time carry in such vehicle permits issued by the Department of Motor Vehicles of the state of Washington and the city of Seattle, if applicable, showing such vehicle to be properly insured for the protection of the public, and also the licenses and permits issued pursuant to this chapter. (Ord. 2914 § 8, 1976s Ord. 1120 § 18, 1972). 251 (Ring County 9-84) L rtl 0,". . nl.a r_ 6964.180 - 6,64.190 BUSINESS LICENSES AND RMMATIONS 6.64*100 Inspection of taxicab or for -hire vehicles. • All vehicles operated under the authority of this chapter shall be made available for inspection by the director or his/her representative at any reasonable time or place. The director shall inspect the vehicle to determine cleanliness, proper equipment, good appearance, and safe operating condition. A- A taxicab or for -hire vehicle shall be deemed to be of safe condition for the transportation of passengers when the following minimum requirements have been complied withs 1. The vehicle must be no more than six years old (including the current model year) nor have traveled more than 100,000 miles. If more than six years old or if it has traveled 100,000 miles or more, the vehicle must be replaced, unless the vehicle owner submits a certification of safety completed in a manner prescribed by the directors 2. An efficient and operable windshield wiper mechanisms 3. An adequate braking system including emergency or auxiliary; 4. A complete lighting system, exterior and interior, and including signaling devices and emergency flasheras S. Rear-view mirrors; 6. Class (windshield and rear) free of breaks, cracks or defects sufficient to mar vision; 7. Tires with minimum tread depth of 2/32 inches as determined by gauge, and free of visible defeats; S. Adequate shocks, steering, exhaust and other mechanical systems required for safe operation of the vehicle; 9. Other safety equipment as may be determined from time to time by the director to be necessary for the safe transportation of passengers. Be A taxicab or for -hire vehicle shall be deemed to be of good appearance, clean and sanitary where the following minimum conditions exists 1. The vehicle seats are unbroken, have no rips in the upholstery and no exposed springs; 2. Inside door handles are present and operate properly; 3. The vehicle has a functioning heaters 4. Windows roll up/down properly; S. Loos: dirt, grease, ashes, dust, or like substances are not present to the degree that such is visible to and would be physically transferred to a passenger sitting in the vehicles, 6. The vehicle has no torn or ripped floor mats that could pose a hazard on entering or exiting the vehicle; 7. Other reasonable conditions as may be determined by the director to be necessary for the safe and sanitary transportation of passengers for -hire, If the director determines during his/her inspection that the condition of any taxicab or vehicle for -hire needs correction, he/she shall issue to the operator or driver thereof a notice in writing specifying such defects and the same shall be remedied immediately or by a later date determined by the director. It is unlawful to fail to comply with any written notice by the director to make corrections on the taxicab or for -hire vehicle. (Ord. 6887 6, 1984s Ord. 1120 § 19, 1972). 6.64.190 Direct route of travel. Any driver of a taxicab or for -hire vehicle employed to carry passengers to a definite point shall take the most direct route possible that will carry the passenger safely and expeditiously to his destination. (Ord. 1120 4 20, 1972). (King County 9-84) 2S2 TAXIS - BUSINESSES AND DRIVERS 6,64.200 - 6.64.250 6.64.200 Qalawful not to pay tare. It is unlawful for, any for -hire driver to "fuss to accept as a passenger any person of proper deportment who requests a ride when the taxicab or for -hire vehicle is vacant or not employed, and it is unlawful for any person to refuse to pay the regular fare for a taxicab or for -hire vehicle after having hired the same. (Ord. 1120 f 21, 1972). 6#64.210 Leaving taxicab or for -hire V$hicle unattended. It is unlawful for any driver of a taxicab or for -hire vehicle to leave the same unattended, or to make repairs thereto or wash such vehicle while in a taxicab zone, except that a period of not to exceed sixty minutes is allowed such for -hire driver for purposes of taking his meals or shopping, during which time such taxicab or for -hire vehicle may be left unattended as long as the vehicle is looked and does not interfere with other taxicabs or for -hire vehicles within such son$. (Ord. 1120 4 22, 1972). 6.64.220 Baggage. persons served with a taxicab or for -hire vehicle hereunder shall be entitled to have with them their valises or small hand baggage as Can be conveniently carried within the, vehicle loaded, conveyed, and unloaded without charge. (Ord. 1120 j 23, 1972). 6.64#230 Two-way radio dispatch. If the taxicab or for -hire vehicle is equipped with a radio dispatch system, it is unlawful for any for -hire driver to fail to respond to a Cali from the dispatcher to pick up a passenger when so requested or to fail to keep the radio in the taxicab or for -hire vehicle operating at all times during the shift the taxicab or for -hire vehicle is operated. All such equipped taxicabs or for -hire vehicles shall have conspicuously placed on the vehicle by the name of the cab, the telephone number from which the taxicab or for -hire vehicle may be radio dispatched. (Ord. 6887 f 7, 1984: Ord. 1120 1'24,.1972). 6.64.240 Discontinued use as taxicab or for -hire vehicle. All taxicabs or for -hire vehicles licensed under this chapter when discontinued for use as a taxicab or for -hire vehicle shall be sufficiently repainted forthwith with a color that will not tend to confuse or lead the public to believe the vehicle may still be a taxicab or for -hire vehicle and may not be used on the strest for private transportation until the repainting has been completed. Failure to comply with the provisions of this section shall be grounds for revocation of such license. (Ord. 1120 f 25, 1972). 6.64.250 Solicitation of fares or carrying non-paying passengers or pets of driver. ` A. It is unlawful for any for -hire driver to cruise at Sea-Tac airport. -- I B. It is unlawful for any for -hire driver to drive, or operate a taxicab .� or for -hire vehicle on the lower level passenger pick-up at Sea-Tac airport without having on display a Port of Seattle authorized permit. C. It is unlawful for any for -hire or taxicab driver to solicit on the Sea -Tao airport terminal drives or inside the airport terminal building. ---`y D. It is unlawful for any for -hire driver to haul any additional passengers or any non-paying passenger(s) or pet(s), other than those belonging to the fare paying passenger(s), when the taxicab or for -hire vehicle has been engaged for -hire and/or is occupied already by a paying passenger or passengers, provided that this is not intended to preclude a licensed for -hire driver acting as a trainer, from accompanying a driver trainee while he/she is carrying paying passengers. (Ord. 6987 1 8, 19841 i Ord. 1120 ¢ 26, 1972). 253 (King County 9-84) i 6.64.260 - 6.64.300 BUSINESS LICENSES AND REGULATIONS 6.64.260 Condition of driver. It is unlawful for any for -hire driver to consume any alcoholic beverage at any time within eight hours of reporting for duty, or while on duty as a driver to operate any taxicab or for -hire vehicle while under the influence of or affected by intoxicating liquors, narcotics, barbiturates or any medicine that shall impair his ability to drive. It is unlawful for any for -hire driver to drive, operate, or be in a taxicab or for -hire vehicle in a position to drive or operate for longer than tan hours in any one twenty-four hour period. (Ord. 1120 § 27, 1972). i 6.64.270 Suspension - Revocation of for -hire driver's licenses. Any driver of a taxicab or for -hire vehicle shall have his/her for -hire driver's license suspended or revoked its A. At any time his/her State of Washington Motor vehicle Operator's License is suspended or revoked; Be It is discovered after license issuance that he/she has an infirmity of the body or mind which renders his/her unfit for the safe operation o; a motor vehicles C- Be/she uses or is found to be in possession of controlled substances or alcohol while in or while operating any taxicab or for -hire vehiciai D. Charges a passenger a rate or fare other than that provided for in the rate set by King County; E- At any time he/she fails to meat the qualifications for a for -hire j drivers f p. violates any of the provisions of this chapter. (Ord. 6887 f 9, 1984s Ord. 1120 f 28, 1972). 6.64.280 Licensing fees. It is unlawful to engage in the business of operating a taxicab or for -hire vehicle as defined in this chapter without first having obtained a valid license to do so. This license shall be known as, and the fee shall be as followss . A. Taxicab license ........000..000009.$115.00 per vehicle. D. For -hire vehicle license ....-9..9..$l20.00 per vehicles C. Transfer of equipment fee........... 15.00 for each transfer of vehicle during the license year. (Ord. 6887 4 10, 1984s Ord. 5799 f 8, 19818 Ord. 4232 4 6,1979s Ord. 3926 j 4, 1978; Ord. 2914 1 9, 1976: Ord. 1120 4 29, 1972). 6,64.290 Tor -hire driver's license required - Application. It is unlawful t for any person to drive or operate a taxicab or for -hire vehicle in the unincorporated areas of King County without first having obtained a valid license to do so, which license shall be known as a for -hire driver's license. The license shall be obtained in the following manners The applicant shall file an application on a form furnished by the director, which shall be signed and sworn to by the applicant and shall contains Name, height, weight, color of hair and eyes, residence address, place and date of birth, last place of employment, whether or not the license was ever suspended or revoked and for what cause, and such other information as may reasonably be required. The applicant shall on the application give the names and mailing addresses of four persons, not relatives, who have known - the applicant for at least two years past. (Ord. 6867 § 11, 1984s Ord. 4232 f 7, 1979s Ord. 2914 4 10, 1976s Ord. 1120 1 30, 1972). r 6#64,300 Qualifications for a for -hire driver's liceass. A. No person shall be issued a for -hire driver's license unless he/she possesses the following qualifications 1. Must be at least eighteen years of age; (King County 9-84) 254 6. TAXIS - BUSINE88ES AND DRIVERS 6.64-300 - 6.64.310 2. Must possess a valid state of Washington motor vehicle operator's license; 3. Must be tree from any infirmity of body or mind which wou14 render the applicant unfit for safe operation of a motor vehicle, and shall have submitted to a medical examination by a licensed physician and filed with the director a certificate from said physician certifying his/her fitness as a for -hire driver. The scope of .the examination and the certificate form shall be prescribed by the Seattle -icing County health department. such examination shall be required at least every four (4) years but not for renewals of such licenses provided however, the director may at any time at his/her discretion require any licensee to be so examined and to secure such a certificate or renewal thereof; 4. Must not be found to be addicted to the use of intoxicating liquor, dangerous drugs or narcotics; 5- Must successfully complete a written examination administered at the time of initial application- The examination will test the applicant's knowledge of the chapter requirements dealing with fare determination, driver -passenger relations, conduct including the applicant's ability to understand oral and Written directions in the English language, vehicle safety requirements and driver regulations, and a satisfactory geographic knowledge of Icing County. The content of the examination will be prescribed by the director- All current licensees must take and pass this examination in order to secure renewal of their licenses during the year after this chapter becomes law; provided that, after a driver once passes this examination, ha/she shall not have to pass the examination again as a requirement for license renewal unless be/she has not been an active driver for a period of more than two years- 8. No license will be issued if the applicant hass 1. Made any false statement in his/her applications 2. Made a conviction or bail forfeiture involving crimes pertaining to controlled substances, alcohol, prostitution, gambling, physical violence, or crimes directly related to the applicant's honesty and integrity (fraud, larceny, extortion) within three years of the date of applications 3. Has been found to have exhibited past conduct in driving or operating a taxicab or for -hire vehicle which would lead the director to reasonably conclude that the applicant will not comply with the provisions of the chapter related to driver/operator conduct and the safe operation of the vehicles 4. Has been found to have exhibited a past driving record which would lead the director to reasonably conclude that the applicant would not operate the taxicab or for -hire vehicle in a safe manner. (Ord. 6887 f 12, 1984s Ord. 2302 f 1,.19751 Ord. 1888 Art- V f 62, 1974; Ord. 1120 f 31, 1972). 6.64.310 Seattle -ling County Health Department. Any applicant who fails to pass a satisfactory medical examination may be re-examined after thirty days from the original examination, and if following such re-examination the certificate herein required from the Seattle -Xing County Health Department is issued, the applicant may be licensed in accordance with the provisions of this chapter. (Ord. 1120 f 32, 1972). 255 (Xing County 9-84) 6.64.320 - 6#64#360 SUSINESS LICZNSES AND MOULATIONS 6.64.320 ringerprints and photographs to accompany application. zach application for a for -hire driver's license shall be accompanied by a complete set of fingerprints of the applicants, and also by three recent duplicate photographs of the applicant of the size to be determined by the director. One photograph shall be retained in the records of the business license section and the second attached to the license in such manner that it cannot be removed and another photograph substituted therefor without detectionj the third photograph together with the name, address and license number shall be prominently displayed inside the taxicab so as to be readily discernible to any passenger. (Ord. 1888 Art. V 4 63, 19741 Ord. 1120 4 33, 1972). 6.64.330 Investigation of applicants for driver's licenses. When an application for a for -hire driver's license, duly signed and sworn to and accompanied by the required certificate of the Seattle -King County. Neaith Department has been received by the director, he shall investigate the statements contained therein, and may obtain such other information concerning the applicant's character, integrity, personal habits, past conduct and general qualifications as will show the applicant's ability and skill as a driver of a motor vshiole for hire, and his honesty, integrity and character for the purpose of determining whether the applicant is a suitable person to drive a motor vehicle for hire. All applications for for -hire driver's licenses shall become null and void after sixty days from date of filing, if the applicant for any reason fails or neglects to obtain a license. (Ord. 1888 Art. V 4 64, 19741 Ord. 1120 4 34, 1972). 6#64#340 Temporary permit. upon application for a for -hire driver's license, the director may issue a temporary for -hire driver's permit which shall entitle the applicant to operate a taxicab or other for -hire vehicle pending final action upon his application for a period not to exceed forty-five daysl provided, that any such temporary permit may be revoked for falsification of information on the application. Such temporary permit shall not be transferable or assignable and shall be valid only with the taxicab or for -hire vehicle company to which it was originally issued. Whenever the ' holder of such a temporary permit leaves the original empioyaent, the employer shall notify the director within five days. (Ord. 1120 4 35, 1972). 6.64#350 Issuance of for -hire driver's license. If the director is satisfied that the applicant for a for -hire driver's license possesses the qualifications and is a suitable person to drive a motor vehicle for hire under the provisions of this chapter, he shall issue him a for -hire driver's license which will entitle him to drive and operate a motor vehicle for hire within King County. (Ord. 1120 4 36, 1972). 6.64.360 Expiration and renewals of for -hire driver's licenses. All for -hire driver's licenses shall expire one year from the day the license was granted and must be renewed within ten days from the date of expiration, except as otherwise provided in this chapter. Applications for renewal shall - be made to the director and shall contain such information as he may deem necessary, whereupon he may renew the license for a period of one years provided, however, that in the event it appears that the licensee has become physically or mentally incapacitated to a degree so as to make the driving of an automobile or other motor vehicle by the licensee a danger to the public, that the director may require the licenses to be re-examined by a licensed physician and procure from that physician a satisfactory certificate before such for -hire driver's license may be renewed. (Ord. 2914 § 11, 1976s Ord. 1888 Art. V j 65, 1974; Ord. 1120 4 37, 1972). -(] (Kinq County 9-84) 256 r TAXZS - BUSINESSES AND DRIVERS 6.64@370 - 6.64.420 6.64.370 For -hire driver's license fee. The fee fora for -hire driver's lioense shall be as follows, For each license, thirty dollars. (Ord. 6887 j 13, 19841 Ord. 5799 J 9, 1981s Ord. 2914 § 12, 1976s Ord. 1888 Art. v 4 66, 1974; Ord. 1120 J 30, 1972). 6.64.380 Damaged or worn-out for -hire driver's licenses to be replaced. When the license is worn out, damaged or otherwise unfit for use, the director may require the license to be replaced in the same form as the original license, at the expense of the licensee. (Ord. 1120 4 39, 1972). 6.64.390 Identification of drivers. Every for -hire driver shall wear or display a badge of identification or sign, plaque, or card, the size, form, content and placement to be determined and approved by the director, and such badge, sign, plaque, or card shall be worn by such for -hire driver or placed in the taxicab or for -hire vehicle at all times while ha/she is operating such taxicab or for -hire vehicle. The for -hire driver's license shall at All times be carried on the person Of the iicenseei and shall on request be exhibited by the licenses to any passenger or to any police officer or other enforceiaent officer. (Ord. 6887 14, 1984s Ord. 1120 1 40, 1972). 6.64.400 Renewal of license, registration or permit - Late penalty. A late penalty shall be charged on all applications for renewal of a license, registration or permit received later than ten working days after the expiration data of such license, registration or permit as set forth in the respective resolution or ordinance establishing the expiration data of such license, registration or permit. The amount Of such penalty is fixed ss follows$ For a license, registration or permit requiring a fee of fifty cents or more, but less than fifty dollars, twenty percent of the required feel For a license, registration or permit requiring a fee of fifty dollars or more, but less than one thousand dollars, ten percent of the required feel For a license, registration or permit requiring a fee of one thousand dollars or more, five percent of the required fee. (Ord. 1889 Art. Zv 1 3, 1974). 6,64.420 violations and penalties. Any person violating or failing to comply with any of the provisions of this chapter is guilty of a misdemeanor and upon conviction thereof shall be punished by a fine in any sum not exceeding two hundred fifty dollars or by imprisonment in the county jail for a period not exceeding ninety days. (Ord. 1120 4 45, 1972). 6#64.420 Civil penalty. In addition to or as an alternative to any other Penalty provided herein or by law any person who violates any provision of any business license ordinance shall be subject to a civil penalty in an amount not to exceed two hundred fifty dollars per violation to be directly assessed by the director. The director, 'in a reasonable manner, may vary the amount of the penalty assessed to consider the appropriateness of the penalty to the size of the business of the violators the gravity of the violation; the number of past and present violations committed and the good faith of the violator in attempting to achieve compliance after notification of the violation. All civil penalties assessed will be enforced and collected in accordance with the procedure specified under this title. (Ord. 1888 Art. 2v § 1, 1974). 4 256-1 a (Xing County 9-84) 0 (Xing County 9-84) 0 6#64.430 - 6.64.480 BUSINESS LICENSES AND REGULATIONS 6.64.430 Additional enforcement. Notwithstanding the existence or use of any other remedy, the director may seek legal or equitable relief to enjoin any acts or practices which constitute or will constitute a violation of any business license ordinance or other regulations herein adopted. (Ord. 1888 Art. IV 1 2, 1974)• 6.64,440 Scope of authority. Unless otherwise specifically stated, binding provisions shall apply to all licensees operating in the unincorporated areas of king County and other jurisdictions or public agencies authorized to contract for services with King County under the authorities provided in the Interiocal Agreement Act, RCW 39.34, as amendedi provided, that should provisions herein conflict with those contained in any such interlocal agreement, the interlocal agreement shall supersede in all cases. (Ord. 4232 4 9, 1979). 6.64.430 Sufficiency of need for service required as license issuance criteria, for one year from effective date. For one year from the effective data of the ordinance codified in this chapter any applicant for a taxicab or for -hire license, other than those vehicles currently licensed, shall continue to be required to show that there is a bona fide need for taxicab or for -hire service in the unincorporated area of King County. The deletion of this requirement in Section 6.64.020 B. is therefor delayed one year from the effective date of the ordinance codified in this chapter, provided that current license holders shall upon renewal of said licenses pay the fee of sixty dollars per taxicab vehicle licensed and one hundred dollars per for -hire vehicle licensed, regardless of whether the prior license was • regular taxicab license or a reciprocal taxicab license. (Ord. 4232 § 10, 1979). 6.64.460 Review by county council before termination of effective date. The King County council shall review the ordinance codified is this chapter no later than one year after its effective data to consider and act upon any proposed amendments. (Ord. 4232 § 11, 1979). 6.64.470 Moratorium, The King County council finds and declares that privately operated taxicab transportation service is a vital part of the transportation system of King county and provides demand -responsive services to county residents and the traveling public. Consequently, the safety, reliability and economic viability of privately operated taxi transportation is a matter of county concern and regulation of such transportation is an essential goverwaental function. In order to protect the public health, welfare and safety of the citizens of King County and the traveling public and in order to assure a viable taxi transportation system in King County, the King County council finds that it is necessary and in the public interest to declare a moratorium on the issuance of taxicab vehicle licenses for a period of twelve months from the effective data of this chapter. (Ord. 6887 f 16, 1984). 6.64.490 Transfer of permit. Transference (sale) of a permit to any other person is authorized and nothing herein shall prevent the holder of a taxicab permit from leasing the taxicab to another person or persons for use or operation. Application for transfer of a permit to another person shall state the name of the transferee, and the trade name and color scheme under which the vehicle will be operated. The transferee shall comply with all requirements of this chapter. (King County 9-64) 256-2 r e r. I, F TAXIS - BUSINESSES AND DRIVERS 6.64.480 - 6.64.500 The owner of a taxicab vehicle license may transfer &,permit to any other rotor vehicle with the approval of the director. Any taxicab vehicle permit not in actual use for a period of ninety (90) days shall, at the discretion of the director, be considered abandoned and non-renewable or transferable. (Ord. 6887 j 17, 1984). 6.64@490 Driving record. Each applicant for a for -hire driver's license shall provide a current certified copy of his/her employment driving record, obtained from the Washington State Department of Licensing; provided that, if an applicant does not have an employment driving record which has been current for at least two years prior to application for a for -hire driver's license, the applicant shall provide a current certified copy of his/her personal driving record, obtained from the Washington State Department of Licensing. (Ord. 6887 4 18, 1984). 6.64.500 passenger complaints process. A. Upon receiving a written co mplaint involving the conduct of the � for -hire driver, the route of transportation, the rate charged for the transportation, passenger injury or property damage'not arising from a vehicle accident, the director shall cause the following to be performeds 1. Issue a Notice of Complaint to the for -hire driver and vehicle S owner, and company, if applicable, advising such person of the allegation(s) made in the complaint, 2. Require the for -hire driver, vehicle owner, and company if Applicable, to respond, in writing, to the allegations) in the Notice of Complaint within ten days of receipt of the Notice of Complaint, 3. Investigate the allegation(s) in the written complaint and the response submitted by the for -hire driver, vehicle owner, and company, if applicable$ 4* flake a finding as to *the .validity of the allegation(s) in the written complaint. If it is found to be a valid complaint the director shall issue a Notice and order pursuant to the process described in X.C.C. 6.01.130. S. Failure to respond, in writing, to a Notice of Complaint within ten days shall constitute a waiver of the for -hire driver's, vehicle owner's, and companys', it applicable, right to contest the allegations) in the written aomplaint and shall be prima facie evidence that the allegation(s) are valid. Co Failure to comply with any Notice and order issued as a result of the above process will result in the revocation of the licenses) involved. Such revocation will last one year from the date the license(s) is surrendered. (Ord. 6887 f 19, 1984)o i f j 256-3 (King County 9-84) J 9 ry February 22, 1984 Prepared by J. M. Chernow SUMMARY OF POSITION OF THE HOUSTON TAXICAB COMMITTEE (YELLOW CAB, UNITED CAB, SQUARE DEAL CAB, SKYJACK CAB) ON THE PROPOSED TRANSPORTATION ORDINANCE The Houston Taxicab Committee is vigorously opposed to the elements of the proposal that would: (1) allow an unlimited number of taxicab permits without regard to public need; (2) abdicate the responsibility of the City to ascertain the qualifications of the taxicab permit holders needed to protect and promote the comfort of taxicab passengers; and (3) permit a varying fare structure that would create chaos and confusion to taxicab riders with no real economic benefits. The Houston Taxicab Committee is in favor of those aspects of the proposal that would streamline the various ordinances and promote other modes of private sector transportation, such as van pools and shuttle buses, provided such operations are so defined to preclude them from operating as taxicabs which are demand responsive small vehicles following a variable route. The major defects of the Proposal, and their effects upon the public, the City, the 3, 000 existing taxicab drivers and their companies, have been documented by extensive testimony and written evidence provided to the Council Committee and other interested groups. However, the essence of this evidence is sum- marized below. QUALIFICATIONS OF PERMIT HOLDER Current Proposed 1. Proof of ability to show and maintain None required, not even an initial financial responsibility. financial statement. 2. Disclosure of location from which Not required. Permit holder need vehicles will be operated. not have a permanent place of business. S. Be at least 21 years old. May be IS years old. 4. Be a citizen of the U. S. Need not be a citizen. S. Be able to read and write the English Not required. language. 6. Be of good moral character. Not required. 7. Not be convicted of any offense Is required, involving moral turpitude. I i I � w _4- • .. rn ..s n•.-�r� 0- -2- S. Prove ability to meet requirements of No ability or experience is public convenience and necessity. required. 9. Disclose type of radio and other No radio required, no disclosure equipment to be used. of type of other equipment. 10. Show effect of grant of permits upon No requirements. Unlimited existing permit holders and on mass number of permits permitted. transit agencies. (Usually inter- preted as to showing where business will come from.) 11. Before receiving permit, show proof Increased minimum insurance of insurance with a 15 day required with a 30 day required notice notice before cancellation. before cancellation. In short, the proposal would permit anyone not having been convicted of a major crime in the last 5-7 years and who could show a few months of insurance installments paid to operate an unlimited number of taxicabs on the streets of Houston without any other business requirements whatsoever! He could be an 18 year old foreign exchange student buying one or 100 5-year old sedans which his co -students would operate a few hours each day. The proposal would sanction an over -supply of unqualified operators leading to an unstable business environment and a poor quality of service. By contrast, Yellow Cab limits the use of its permits to drivers who must (1) attend a formal, free 3-day training program; (2) be able to prove 7 years of U.S. driving experience; and (3) have an acceptable history of incidences of customer complaints. A taxicab permit to use the public streets of the city for profit is a RIGHT, not a privilege, and the City must not abandon its social responsibilities in order to accommodate a superficial academic notion of "free enterprise". COST TO CONSUMERS FARES The premise of the proposal is that a material increase in the number of taxi- cabs with a variable rate structure would produce a decrease in taxicab fares. Hard evidence in every city where open entry has been tried has, without exception, proven this premise false. The reverse of the expectation occurs since more providers are apportioning a static or declining market and there- fore must charge higher fares in order to survive. �1 FARE PER MILE Before Open After Open % City Entry Ent ry Increase San Diego $ . 70 $1. 33 90% Seattle . 70 1.31 87% Phoenix .85 1.20 41 % Oakland/Berkeley .90 1.20 33% Houston's rate since 1981 is $. 875 per mile, ranking in the lowest third of 75 cities surveyed. Houston's rate per mile from IAH to Downtown was found to be the lowest in the entire USA. (While the proposed increase to $. 975 per mile would raise Houston to the middle third of the 75 cities, we project that Houston would again be in the lowest third by the end of 1984 as other cities adjust their rates. Dallas just approved an increase from $. 80 per mile to $1.00. ) The proposal's attempt to allow unlimited numbers of cabs with varying fares but limiting the fares to the current rates, is not only hypocritical, with respect to the concepts of "supply and demand" and "free enterprise", but fallacious since fares must be at a level to cover costs, including earnings for the driver, or the number of providers would diminish. Where fares varied in the open entry cities, the existing fleet operators charged the lower fares while the new entrants were at the high end of the scale. ENFORCEMENT COSTS The City of Houston presently employs two (2) field inspectors to supervise 1829 taxicabs with a minimum of problems since the fleet operators provide their own supervision, training and complaint handling. The proposal, which would permit hundreds of one -cab operators, would put the City into the "fleet management" business at an enormous cost, possibly exceeding an additional I $1 million a year. Merely the task of reacting to the certainty of the flood of insurance cancellation notices, locating the permit holders and revoking their permits in order to prevent an uninsured taxicab from operating is staggering. I It is unrealistic to believe that the "user fees" contemplated by the proposal could ever cover this additional City expense as the present corporate responsi- bility for enforcement is diluted. I The allegation that the proposal would spare the City from the "burden" of lengthy and burdensome permit hearings is misleading. During the last several years, Permit Hearings have taken place once a year for two days, I attended by two staff members from Public Service, Council appeals have - ' - taken about 1/2 hour per year. SERVICE TO THE PUBLIC The author of the proposal claims that under the present ordinance "it is diffi- cult to hail a cab" and that "taxis serve only the downtown leaving the inner city and suburbs poorly serviced. " The facts refute this; (1) a recent survey -4- showed 300 cabs cruise downtown every 15 minutes, in addition to 60 taxis on downtown stands; (2) 30% of Yellow Cab's radio trips originate in the minority/ low income neighborhoods; (3) Yellow Cab records document that a taxi is dispatched for 100% of all requests, 98% of the time within 10 minutes. In contrast, in the documented US Dept. of Trans. studies of the open entry cities of Seattle and San Diego, where the number of taxis increased over 50% after entry controls were removed, (1) 25% of telephone requests for taxi service were refused in Seattle; (2) refusals increased from 5% to 18% in San Diego; (3) cruising actually decreased and the cabs flooded the downtown stands and the airport; (4) there was less service to minorities as the number of radio cabs in the fleets decreased. In a similar study in Phoenix, the large fleet operator abandoned the airport (due to 3-4 hour waits) and had to reduce the number of radio cabs servicing the neighborhoods. Moreover, none of the "innovations" promised by the proponents of open entry occurred: (1) no fare innovations; (2) no service innovations. All that did occur was a flood of new one -cab operators, without radio service, skimming the peak business at stands and the airport where adequate service already existed. It to unrealistic to believe that tnj number of additional taxis could service Houston's 500+ square miles by cruising streets. Houston's density is such that only one person per hour per mile uses a taxicab. Other elements of the proposal would do severe damage to the present high level of service to residents and visitors: CURRENT 1. Each company's vehicles must have a distinctive color scheme to facili- tate customer identification in the event of a complaint or to retrieve lost articles. PROPOSED No distinctive color scheme is required. Presumably, the customer would have to remember the Permit Number, call the City to locate the operator and hope to make contact. Z. All taxicabs must charge the same Rate would vary (below a maximum). rates, as approved by the City. Seven cabs on a stand could con- ceivably have seven different rates, creating chaos and confusion partic- ularly to visitors unfamiliar with the City and the shortest routes. 3. Solicitation of passengers by drivers to absolutely prohibited. Solicitation of passengers by drivers is intentionally permitted. This will surely lead to harrassment, argu- ments and, possibly, violence as has been demonstrated in many for- eign cities. J M -5- 4. The customer has the right to select This right of selection is, ironically, the taxicab of his or her choice. expressly denied on cab stands where selection is limited to the first vehicle in line. S. The age of the taxicab may be no more than 4 model years old (now 1981 or newer). (Houston has the newest fleet in the U.S. Yellow runs only 100 1981 models, all the rest are 1982-84 with 200 1984 now delivered and 200 more on order. ) The age is increased 500/6 to as old as 6 years. A Houston taxi averages about 80, 000 miles a year. Four years is the end of its natural life as frame metal fatigue and interior components deteriorate. This can- not be detected easily by "inspections". (In open entry cities, the studies showed the average age of vehicles increased by as much as 50% after open entry.) PRODUCTIVITY In every city that experimented with "open entry", the U.S. Dept. of Trans. sponsored studies documented a material decline in taxicab productivity. The dramatic increase in fares and decline in service actually caused a decline in taxi ridership, notwithstanding a significant increase in the number of taxicabs: Decrease In Decrease in Trips Increase In Increase in Ridership Per Taxi Taxicabs # of Companies Seattle 25% 480/6 2570 497o Phoenix 10-14°Jo 33016 4216 335076 San Diego 4% 27016 8476 19776 This obviously resulted in a major decrease in driver earnings. Houston has presently about 3, 000 taxi drivers, 70% of whom are minorities. At the Taxi Permit Hearing in 1983, evidence was produced showing that a 2076 increase in Permits, without a corresponding increase in taxi business, would cause a 40% decrease in driver earnings (from an estimated $15, 000 a year to $9, 000). In response to this and other evidence, Me. Marsha Gardner, Director of Public Service, concluded that due to the business recession that no additional taxi permits should be issued to any applicant. The Phoenix study disclosed that after open entry, taxi drivers were working a 10 to 14 hour day and earning $2-$4 an hour. PRINCIPLES OF ECONOMICS Some proponents of the proposed ordinance allege that the present ordinance promotes a "quasi monopoly dominated by one or a few large companies", that few permits have been issued and as a result Houston has a lower than average number of taxis per 1, 000 people. w..w.�..:.:. ,.. ,. .:. r.,;-....r.:.. .,,.ems .. � ., .,..,,.... .. .�. .. .,. ,., .�..».. ..�.--.. ..,� ._..-. -6- The facts clearly prove these allegations untrue. Yellow Cab of Houston, locally owned and not affiliated with any taxi operation in any other city, began under its present ownership in 1967 with 67 permits out of over 450 then exist- ing in the City. It's growth to 1350 permits resulted, for the most part, from obtaining additional permits by proving its ability to serve the public need and necessity under the present ordinance. The City's second largest cab company, United Cab, was a virtual new entrant into the market about 5 years ago. United received 100 new permits in 1982. Since 1977. the number of taxi permits in Houston doubled from about 900 to 1829 today. As a result, Houston has a ratio of taxis to 1.000 people of 1. 18 - higher than the 1. 06 average of 17 comparable cities. (Both the author of the proposal and the Houston Taxicab Committee used the same report to arrive at these ratios. However, the report had to be corrected for several arithmetic errors, be updated for permits issued in 1982 and be adjusted to exclude cities clearly not comparable such as NYC, Hawaii, etc. , which the author of the proposal failed to recognize. ) While it is true that five companies operate 9676 of Houston taxis, this resulted i from the willingness of those companies to make the investment and commit- ment necessary rather than the result of a protective ordinance. While deregulation of airlines and other industries may have provided some consumer benefits, taxicabs are different. Unlike shopping for price for an j airline ticket weeks before a flight, or even shopping for hamburgers, taxis arrive one at a time and the service to usually needed at once. The riding public has a legitimate right to expect the City to exercise its regulatory powers to assure a safe and comfortable taxi ride at a predictable and fair price. IMAGE OF THE CITY The taxi operator is the first introduction to the City that a conventioneer or business person receives, and the last impression left with visitors upon their departure. In November, 1982, Phoenix Mayor Margaret Hance said in a memorandum to the Phoenix City Council: "In my opinion, deregulation has produced incredibly negative impacts " on the hospitality industry in Phoenix and our national image as a good place for convention and tourist visitations." In August, 1982, Alexandria Mayor Charles E. Beatley, blaming the problem on the proximity to National Airport and a "City taxi board that can't say no," said; "We've become the Panama for a bunch of gypsy tramp steamboat operators." and "It's a blight on the city of Alexandria. It's an embarrassment. " j, - ... _•aL�fir. IJ � -' - The HTC has submitted as evidence to the Council Committee letters dated in September, 1983, from the head of the Convention & Visitors Association in "open entry" cities that unanimously condemned unlimited numbers of cabs and variable fares as having been devastating to the goals of attracting conventions and tourists: San Diego, Seattle, Phoenix, Indianapolis and Atlanta. I � 1 V 1 { !1 =l i Y I I I � a II / 1 lei A K 1 l 1 1 Prepared December 3r 1984 bvi J. M. Chernowr RePreeentinst THE HOUSTON TAXICAB COMMITTEE COMPRISED OF$ YELLOW CAB COMPANY UNITED CAB COMPANY SKYJACK CAB COMPANY SQUARE DEAL CAB COMPANY (96.8X OF ALL TAXIS IN HOUSTON) SUMMARY OF THE EXPERIENCE OF U.S. CITIES WITH TAXICAB OPEN ENTRY* BY PARATRANSIT SERVICESP Chatel Hillr No Co Octobers 1983 f+ � I 1 I 1 I " f� 1 > 0.i P � 1 J- - It;, i i 2 1. OPEN ENTRY ass�ssssassss y. The subJect of open entry (entrw controls are eliminated) has been verve controversial within several industriesr and the taxicab industry is no exception. I Proponents of such actions argue that government should not Interfere in an industry unless it is absolutely necessary, while opponents cite problems that will result it competition for - taxicab business is not somehow restricted. While this debate is intellectuallw interesting it is less and less necessarw. Because several cities have dramaticaliw changed their entry regulationst there is now EMPIRICAL EVIDENCE regarding the effects of open entry. ...the Report will aid local officials and operators in cities that are considering changes in their entry control. ...this analwsis focuses on data from the following cities$ MaJor Cities Changing to Open Entrw STARTED ENDED Atlanta 1965 1981 q Fresno 1979 1982 Indianapolis 1973 1974 Milwaukee 1979 Phoenix 1902 Sacramento 1982 San Diego Seattle 1979 1979 1993 is 1 a" R I. � ' JJ' 1 ,r (Of the 8 cities studiedr halt of thew reverted to entrw control) For each city reviewedr written documentation was solicited and reviewedr Phone calls were made to citw officials to update the available information and to verity facts in the printed eaterials and taxicab operators were contacted ... '�'."-_-:_K..r�.....`_N�rlb,��`."�1_''f.""b,�w tY-ryY y.'ft. t•�. ..- - . .r-. '-3k.��r /s •wr�..k-- .+wr+-.,w.y _ .1.L:rW a 2. ATLANTA saasamsaaa Atlanta opened entry to its taxicab industrw in 19659 Oniw open entry was enaetedl tares remained regulated. Both old and new taxis moved to serve the more lucrative locationsr and competition at the airport and at maJor hotels Increased* In the 1970sr Atlanta emerged as a maJor commercial and convention center. These changes alerted the business community that Atlanta's taxicab industry was a key element in creating a Progressive and attractive image for the Citwo These concerns were highlighted bw freouent visitors' complaints about taxicab service • The basic reason for Atlanta to consider re -regulation was a concern that open entry was not working. 000 it sanctioned what became an over -suppler of taxicabs. Local business and city officials viewed the over-supplw of cabs as leading to an unstable business environment within the taxicab industrw and poor ouslitw service for passengers. .. in 1900r the Mswor's Taxicab Task Force convened to trw again to develop a set of regulatorw reforms. In Februarwr 1961r the C1tw passed a revised ordinance.. The essence of this new regulatorw action was the re-establishment of antrw controls. The ordinance required a Certificate of Public Necesoltw and Convenience. The Citw also required all new operators entering the industrw to have a minimum of 25 cabs. J � i I 1� 3 3. FRESNO ssnsnsnss .o it was decided to open entry and tare setting comPleteiw and thus allow the market to regulate the industrw. ...the Citw Council passed an ordinance late in 1979 that eompiatelw opened entry and decontrolled tares. Deregulation lasted about eighteen months. After open entry it became increasingly evident to the Citw that unlimited entry and fare -setting was not working. Customer complaints tripled► according to the Deputw Citw Managert and the business communitw became involved due to the concern for Problems encountered with taxi service. Due to these problems. the City issued a moratorium on taxicab permits late in 1981. The City re -imposed regulation in Januarwr 1983 *to The Fresno experience with open entry is now seen bw everyone interviewed during this study as negative. One C1tw official put it this wawt *We do not regulate the number of stores. but IT IS DIFFERENT WITH TAXICABS. We assumed that market Pressures would control the rate and provide a level of service which could be satisfactorwr and it did not work.• I i r i I I j { . i c , - l 4 .. 6 4. INDIANAPOLIS ..for over a gear the Citw was in effect an open entrw citw. No minimum number of taxis Per applicant was impossedr nor was radio communication reaulred. One interesting result of the open entrw experience was that onlw one •new' Person entered the industrw. Bw Augustr 1983r the overall size of the industrw had shrunk to 350 Permits (from 466 in 1974): - The results of the open entrw were otherwise negative as far as Citw officials report. The large number of taxicab firms created a rainbow of different color schemes and a large increase in enforcement Problems. Insurance cancellation notices increased from a ,few Per month to 'about one hundred fiftw Per wonth.' L.ikewiser the City received manw more complaints about tarsi service# a total of 5300 were received during the 1973-76 Period. Manw taxi operators failed to maintain a Place of business and were difficult to track down for even routine enforcement matters. There were also crime Problemsr with one large drug and one Prostitution operation uncovered among taxi operators. The outcome of these Problems was that the Citw decided not to issue anw more Permits. D 7 5e MILWAUKEE sasasasassaa On June 289 1979r the Common Council passed an ordinance that dropped all limits on the number of taxicab permits* After the bankruptcw of Boonton Cab and the issuance of permits under the open entry ordinances the industry emerged as a very framaentod ones As of August# 1983# there are 351 permits or a DECREASE of 29 compared with the 1979 figure. There are no fleets in operation## be PHOENIX sasassssss Phoenix officials correctiw anticipated that open entry would seen Problems with taxicabs at the Phoenix Airport. To Prepare for open entrwr the City in Junes 1982 issued annual permits to taxicabs serving the airport. The Permit cost t300s see After the annual Permit swstes had been in effect for several months# the City realized that this attempt at taxicab regulation was not enough. The tremendous variation in taxicab rates caused such negative Publicitw about rate gouging and the questionable safetw condition of the taxicabs# The Previous operators no longer allow their cabs to wait at the airportre.e ..the Visitor and Convention Bureau, which had been consulted by the City during its recent deliberations on taxicabs regulatory revisions has Pushed for sore stringent city-wide regulations. I� . 7. SACRAMENTO The decision to open entrw in Sacramento wars not made in haste. As earlw as 1978r four wears before it adopted the open entrw regulation, the Citw Council considered the feasibilitw of relinquishing its control over taxicab operations. The Council's i priwarw motive was to rid itself of the task of setting fares. (the U. S. Supreme Court decision on the Boulder case) spurred the Sacramento Department of Law to conclude that Sacramento could not limit the number of taxicab licensees or ... regulate fares without being subJect to antitrust action. The 1992 ordinance eliminated the limit on the number of taxicab permits and discontinued fare regulation. The ordinance .• required twentw-four hour dispatching ... With open entrw the number of taxicabs tat the airport) Increased substantiallw. The airport management hired starters at four locationsr.. To paw for the startersr the airport ' charges $3.00 per trip for each taxicab leaving the airport. Stilir the airport management resorts difficultw controlling the i conduct of the taxicabs at the airport. j Citw officials claim that thew are freed from reguiatorw tasks i that forserlw occupied their timer although thew report thew now spend more time administering the remaining portions of the taxicab ordinance... T1 Q�. t 9 8• SAN DIEGO sasoasassas• San Diego is one of the most celebrated cases of open entrw .o for two reasons: Firstr it has been extensively evaluated. Secondr San Diego has also reversed its open entrw Policw. ...the increase in taxi permits was not warranted bw an Increase in demand for taxi service. In factr DEMAND DECREASED during this Period. Durins the first wear of open entrwr the number of taxi trips Per week fell bw 3.6Xr and the average taxi trips Per taxi decreased bw 26.6% The UMTA evaluation of the San Diego deregulation cites several other results. One is that vehicle ante apparentlw increased after open entrw .. Alsor there has been little service Innovation bw taxicab operators since deregulation. Finaliwr the Citw's costs of administering the taxicab regulations have Increased bw an estimated 15OX from 1979 to 1981. .. the Port raised the airport fee to $200 Per wear. It also hired seven full-time starters and limited the fares *#so However, the Problems did not disapPearr and the Citw and the Port took actions in Maw of 1983 to re -regulate taxicabs. The Citw imposed a one -wear moratorium on th e issuance of new taxicab permits. J J;t"'1�1-: �11 uu�iiiii�� -'�...M. �M, - ,T.rw..r . ., ..-. r ....•<a .. ..-rr..... ,.. ... � ... ,.w ..+� ...., .. .. . ..., �.... ,. .,..ter. �..�wGv-w� ..-.::aa+..) 10 1- 9• SEATTLE Op en antra in Seattle occurred in Matir 1979 This action bw a-,- k-� 3 the City Council followed the election of a reform -minded Council in the late 1970se The immediate result of the open entry was a sharp increase in the number of taxicabs and taxi companies. As happened in San Diegor the total demand for taxicab service declined while the industry was expanding. During the first two Mears of open entrwt the number of taxi trips per week decreased bit 24.8X while the number of taxicabs increased from 421 to 5279 As a resultr the average number of trips per taxicab decreased bw 48.4X. During this time period the percentage of the taxi trips that were airport -related increased from 7X to 16%, The average industry fare for a five -mile trip increased 72% from 1979 through April? 1982. About one out of four telephone requests for taxicabs service were refused... The average age of Seattle's taxicab vehicles increased 30Xv from four wears to six wears .... Little or no service innovations occurred? and most new taxicab operators congregated at the Airport. ...the open entry experience has also increased the regulators burden on the C1tw and the Airport. ...the Airport raised the Airport taxicab permit fee nearly 400%r from $100 per wear to $90 per quarter (f360 a year). 10s SPOKANE MMMMMMUMMUM In 1980r the City passed the open entrw ordinance. It so required that the Permitee maintain an office or authorize an agent to maintain an office in the Citws During fiscal wear 1983 (ending in June)r there were 92 Permits In the Citws When the Permits were renewed for fiscal wear 1984r onlw 80 were renewed# sssthe firm that had applied for new Permits in 1979 went out of business after reaching a maximum of 12 cabs in operations Of theser 57 are affiliated with Yellow Cab sss Yeilowr which had exclusive rights at the airport before open entrwr no longer serves the airport but rather concentrates on Package deliverwr telephone businessr and Providing dispatching to owner -drivers. The remaining 23 Permits are operated bw Independent owner -operators who concentrate their service at the airport. H -- 12 11s CONCLUSIONS The nine cases described in this Report Provide valuable Insight into the results of open entry policies. 000 the impact of open entry on industry size is not Predictable with certainty. A commons although not universals open entry result has been a large increase in problems at airports. The problems are consistent from city to citwl over -charging, short -haul refusals, and driver behavior. There are three impacts that are of Particular importance and which have been documented in both San Diego and Seattle. One is DECREASING PRODUCTIVITIES resulting from lower taxicab demand combined with greater numbers of taxicabs. A second is higher costs of enforcement... fi A third is the incidence of taxicab service and tars innovations. ` Fare innovations are reported to be almost non-existentr and there have been few service innovations that have been instigated bw the taxicab Industries in these two cities since open entryo t f i t' y M 1� s 1 � t 1 �y �t 4 � GREATER HOLIS`I'ON 1406 Mays St.. Houston. Texas 77WO. (713) 224.4445 December 8, 1983 PROPOSAL FOR MAXIMUM TAXICAB FARES FOR DOWNTOWN HOUSTON As a result of a suggestion from Robert Urey, President of Central Houston, Inc., Yellow Cab Company is proposing that taxicab fares for trips originating in downtown to any single destination downtown be limited to a maximum of $3.00, which can be split among as many as 5 passengers, or 60f each. The passenger will pay the lower of the actual meter rate or $3.00. The defined area is bounded by the freeway sys- tem (see map attached). The objective of the proposal is to promote downtown mobil- ity, business, lunch and shopping trips and to remove the passenger's uncertainty of the cost of a downtown taxi trip. In a recent downtown survey, Yellow Cab counted 259 avail- able cruising taxis during an average 15 minute period plus 57 taxis at stands. r�rrlors- G B Atyr V, a % 6 T w A wa, "44,1 14• �k t ft Iaa4,61. ra I aft In— Ift I —I ISE tD9 9 fill AJOLW% bolt mom V . e =XT-a wN b_e/ /S to /s_ Lft 3 ifs i • % "tt•yi`o "_/„ /R�i_Lrt�s/ /.S�IAwr�i� •!i!�/.Z or, 617 LJ el w ` A � V H •/ M O� ll tt ' M SIP l It w a�� « .. • " of I " �I Ar MID 11, e ... TEM El011-F-K-11111 o�ooo oaDoo❑ • 1401 km ("dfeyMlufll am Tenn") • loop IIMM own "a BuMnp Lauglaus I. Allied TOwlteeCcinowatuaccouer 2.4AU MCsMa 3. Afley Tkedite 1. Affled Oarlk Slug. s. tlantlwtasl.fWkreM a c.wlw tlrltlrrlal Oldp. 7. CeMUCllylkMel wCNAM6wa1C4WMMwteAMM S I. cadol atw4k c-lbs p lo. curttdu 11.CMNCwfbflWg. 1/. C•rMlrrds TYSKr 1s. WWYnCacltsMOa%&, le. CwwM ildg is. CMstIMMs nrase So. of~ knots 17. Lodes /kip, 111, NI. saw 1 am � 20. rwmal ado. 21. fedwsl+tssen sank 20. /MMCIt7AM1mstlieMAlldp, ,1 a� i i7f 9 4 01-4mlAv ®i Nu Q,Q D E1211RHIED LEaEl C7 cps 11DO 0 0 [Ism (�� "p 23. rifts City Taller 24. flood tn{ernMwrW sawal n&AIaw 23. fakfu 2I. rYYe sesstrnsnuad 27. GosyluMMld 60 TWMIAIl 20. Gum Slog, 29. 41.n Tureet 30. Ilanls CwMtyAdn"Walisw Skip. 31. tlaeolsC&Nwgc 1wt61Ww U. nwk1•y trod 33. fkwslun Umunwk 36. Iknak-a Ctua tli ft 39. twwtYn nest sat lnp SWg. 36. tkw.pw tkwss 37. tkwsluw Lrgtdfnpalrl rwrw 340. tlw.stan tlatwal Qa 39. t,rrllod UR nMk LIWay e0. mall IegeMcy t W1s1 • /. OOt1 Jsllsrsuw Bldg. 42. Jalsslosq 43. L,wKd" nuls1 N. La-yela Title a. L7ek CsMee StdQ. N. "WoO rYw Mice e7. tMekuss endg. 44, MsrrdKM ttutsl O. M :u tam p+IltlMsi am" sl.OIdMe k S"wt 12.Ora Allen Center $3, Orle ttlwstdn Center se. One sawn Seas ss, rn1 Anwrkdn futlollal Bank Ndp. 56. rMk fa llo11s" MCsoder $7. r4an"1 Tawst so. Ra"k Iar16 s9. Ilks muteakwlse toms 606 awow"s of. brio fkruslun Calibeurrl W. sa.Yy field nuts) 63. 54" fk uldum 64. skerokm Model Wo. sewrllM Oepanrnsal 66. 16w oonnk 6Wp, 67. sumfori l "torus as" 111dp. 6I. se. JYespbs tlaspltal by. 1eMKtY I Wg. 7u. ti AAW WON, 71. lea"Colrunerce Gnk 71. Arias Cunurwrce Uwas 73. AmeAlknCenter 74. rWaltausluaCentse 75. rwa welt ride 76. u. *in. limet 77. uMted Iank ou" 70. Mr6Hekan 11010 79. MWa tlddeltdp. W. MCA it � � _ � �' •� iN•ITr I.II.r 1 �. Y .I�.. _.�.n T lwrT ..rY cT v. rq r-.. . .� yr♦ a .. ._.•___ - .. .. 1 Compiled bw J. M. Chernow S/17/83 EFFECTS OF TAXI REGULATORY REVISION IN SEATTLE• WASHINGTON FINAL REPORT MAY 1963 UMTA/T8C PPOJYCt Evaluation Series SUMMARY OF CERTAIN CONCLUSIONS 1. In Maw 1979 the Citw of Seattle enacted license code revisions affecting taxicabs. 2.Entrw is opened to both fleets and independents and there is no limit on total licenses or the number of licenses a single operator saw -obtain. 2. Variable Pricing Permits taxi operators to charge whatever rates thew chooser so long as their current rates are on file with the DCLA. t 3. Taxi rates have Probablw risen faster under variable pricing than thew would have done under continued standardization ..... .' 4. An estimated 25 Percent decrease in total Passenger trips {{. between 1979 and 1981 combined with a Si percent increase in total taxi Permits over the same Period Produced an average drop i in taxi trips Per shift. 1 1 r' 2 s. Rising costs of gasoline and insurance suggest that the average taxi driver was not making as such monew in 1981 as he did in 1979r however. 6. The regulators' hopes of achieving taxi service innovations through increased competition have onlw Partiallw been realized# however. Zone -based shared ride taxi service has wet to become a realitwr and no other taxi service innovations have been attempted to date. 7. Average fares for a five -vile taxi trip in Seattle rose some 72 percent rfroe 44#30 under the pre -revision standard to 67#40 through April 1982. In cosparlsonr taxi rates rose 15 Percent under standardization between 1974 and 1976 ... 8. Rates have tended to varw according to companw size twper with �! the older and larger companies charging the lower rates. $'Y ` 9. The Primarw innovations have have been in the fors of discounts offered to repeatr advance reservation and long -haul ! eustomersr and higher rates for nighttime service or short trips. DLCA staff describe some of these rates as abusive while most a are not implemented in a formal sense but serve to cover i operations at what the market will bear. I e p L' 109 prior to regulatorw revisionp the larger veteran companies Predicted that the new single -cab companies would •skirl the cress• opt the traditional businessp garnering a disproportionate share of long -haul trips to the exclusive of a balanced citywide service delivery. This result has been documentedr at least to date. 11. Reports of illegaiitw bw taxi drivers relate Primarl1w to abuses under open rate settinar particularise in connection with exorbitant surcharges added to fares from the airport and in conJunction with the varietw of rates Permissible for exclusive ride service. 1 12. The number of taxi shifts supplied did not increase commensurately with growth in licenses over the first two wears ! of open entree. .# there were 51 Percent more vehicles in May 1981 but each i vehicle was onlw Providing about 76 Percent as such service as in Mast 1979. , 13. ...suggest little or no increase in total geographic service coverage. Stand hail survew results indicate an oversuppiw of taxicabs at the airport and other asJor downtown and hotel locations. 14# The industrw average decline in total silos driven Per shift and Per hour also suggests that cruising maw have increased only siightlw or aetualiw decreased with open entry and therefore that total geographic service coverage even saw have contracted somewhat. 15. Response Time Survew results from 1981 suggest that a Seattle taxi patron has a one -in -four chance of frustration in attempting to obtain taxi service bw telephone. The three large service companies refused 10 Percent of their callsp while independent fleet operators turned down 37 Percent and one -to three -cab companies onlw ACCEPTED 41 Percent. 160 The 1981 stand Survew results suggest that at 1tm on an average weekdawr 18 Percent of all industrw vehicles wgrg waiting in ausues at the busiest stands. 17. Sample data from the taxi operator trip shoats suggest that total taxi trips declined 25 Percent between 1979 and 1981. 18. The new regulations have failed to stimulate much in the wow i+ - of service innovations. o� 19. The ante of taxi vehicles since open entry Provides a Proxw for estimating passenger comfort and safetwe Table 4-22 Presents the median age of all taxi vehicles bw 7J bi r] S aurarshir twro since open entrw and suggests that maw have been a gradual deterioration in average vehicle condition *too Where the industry median vehicles was 4 wears in mid-1979v It had increased to 6 wears bw the close of 1961, Rising rates of taxi vehicle inspection failure --from 25 Percent in 1976 to 19 Percent in 1977 to 20 percent in 1978P 33 Percent in 1979 and 35 Percent in 1980 -- tend to corroborate the hwpothests of a deteriorating fleet. 20. The data suggest that a number of taxi shift Productivitw measures declined with industry expansion between 1979 and 1981, The average number of trips booked Per shift dropped from 16.2 to 10.6. The estimated number of all trips Produced Per cab Per wear therefore fell dramaticallwr from 8r480 Per cab Riven the smaller industrw in 1979 to 2,830 Per cab following industry expansion through Maw 1981. The number of all trips booked Per hour declined from 1.6 to s 1.1; while the number of riders carried Per hour dropped from 1#8 !� to 1.2r although average oecupanew Per trip remained at 1.1 f.l 21. ...regulators should not anticipate that council and staff -- involvement with taxi regulation will siaPlw cease as a result of one comprehensive set of reforms. I i i• I 3 . L �_ q - +•�a, a � r..�m aw ta_. •, nY.rOWi i,- .,.... .•. ay..... -... .. .ti. ..., z.. . <. �: _._.. <.. r.,.. ..o .... uu.�, _..r..44•.+�A+.•.-. _ ... _ .. _ .r.J.6i:�:. 22. It is clear that taxi service innovations cannot emerge under ` a regulatory structure which Prohibits or discourages them. But it is not clear from the results to date of the Seattle case studw that a core flexible regulatory structure alone will Induce the kinds of service innovations sought bw regulators. Although the larger tires have engaged themselves in direct competition at the low end of the rate spectrums many newer and smaller operations appear to be targeting the visitor and long -haul taxi markets top as such as thew will bear or regulations will allow. What market segmentation has occurred is evidently the result of saturation of these stand -hail markets► or •cream skimming$ bw these newer and smaller firms. Y � . f} i t ' a � f r f' 0 ��..4y..�i lia..�. �.•{4JR�'• • . • n •. r rr,.aa• •, r. yw., .. a... .... ...-. ...�. ... �.._ �... _. _ _.. _ .._ ....wrr {...�rar.. '.t.- ... _..t.iJrrr A � 7 1 1J i i Prepared bw J. M. Chernow 8/14/83 EFFECTS OF TAXI REGULATORY REVISION IN SAN DIEGOt CALIFORNIA FINAL REPORT MAY 1983 UMTA/TSC ProJect Evaluation Series SUMMARY OF CERTAIN CONCLUSIONS 1. Open entry became effective in Januarwt 1979, 2. Effective August it 1979• the standard rate of tare was replaced bw a maximum rate up to which operators maw charge what thew chooses the maximum was removed in October 1980. 3. (The following is from the draft of the report bw Paratransit i r f Services) a On April 25t 1983 the Citw's Transportation and Land Use { !' I Committee reviewed the latest De Leuw and Cather findings and research bw the Paratransit Administration and considered recommendations and heard public testimonw. The same dawn the i Committee recommended to halt the issuance* transfer and reissuance of all taxi Permits for one wear. The wear -long .'_<_-,�'�'1'�s"_�.-fntr.ArRflrt.!•3."•_!4: /iJc :�a .. r•'r',t.. .. , j.. l r� ' 1 I i 1" � ffI 111 n 1 2 E.� moratorium was Placed on the issuance of permits to give the Citw time to assess the impact of the rurr4nt regulations. Poor aualitw of service and Price gouging. Particularlw at the airportv refusals of short trips and taking tourists on unnecessarw long routes Prompted the action. Problems at the airport continue. In May of this wears the Port Commission ordered an immediate halt to the issuance of additional Permits in an attempt to relieve congestion. In order to solve some of these Problemst a lotterw took Place on ; June 15 to chose 450 taxis allowed to Pick up passengers 4 . � at the airport... i 4. Taxicab rates have likelw risen taster under variable Pricing ' i r� i than thew would have done under continued standardization*###* y The maJoritw of taxicabs continue to be offered at the lowest I ratest moreover# owing to Price competition between the citw's largest operations# and the fact that the larger entities have continued to offer lower rates than the smaller ones. 5# A 4 Percent decrease in total Passenger trips between 1979 and 1980 combined with a 30 Percent increase in total taxi permits { over the same Period Produced an average drop in tripe per shift. " 6. The regulators' hopes of achieving taxi service innovations I have onlw Partiailw been realized# however. Althousah the 3 regulatory changes have Permitted development of fixed -route services--chieflw addressing travel to and from the area's •ilitarw installations-- zone -based shared ride taxi service has wet to become a realitw. There have been *least no other service innovations to date. 7• The average fare for exclusive ride taxi service in San Diego has risen over 60 Percent. from S4.50 for a S mile trip in Julw 1979 under the pre -revisions standard to f7.25 as of December 1961. In contrast rates rose 29 Percent over the 30 months Preceding open rate setting (from f3.30 in Februarw 1977). S. ....rates have varied considerablw among different cospanw twpes and between veteran and newer operators► with the older and larger first generallw maintaining lower rates than their newer and smaller counterparts. 9.The San Diego case studw has Produced little real Pricing Innovation despite price competition for exclusive ride service. 10. The Prisarw changes in taxi companw operating Practices relate to the influx of new and smaller operations blanketing the airport and other high -use stands..... Prior to the regulatory revision the larger veteran operations Predicted that the new single -cab companies would •skim the cream$ off the traditional taxi business, garnering a I M 4 }, disproportionate share of long -haul trips to the exclusion of a balanced citwwide service deliverw. This result has been documentedr at least as of the very near term following open entrwe Evaluation survews of cabstand activitw observed single -cab and Mini -fleet vehicles on busw stands in significantlw higher proportions than their share of all industrw Permits# it is difficult •to see how it could be otherwise► however► since a small firar even it it is radicadr cannot i Provide citwwide service indepondentlwe 11e Changes in Geographic Service Coverage ...little or no increase in total geographic service coverage and gonerallw little to outlwing residential areas. Stand hail survew results indicate an oversupPlw of taxicabs at the airport and other maJor downtown and hotel area stands. There was also no evidence to suggest that taxi service to the citw's ethnic mincritw areas changed signiticantlwo In generalt the industrw average decline in total wiles driven per shift and Per hour indicates that total cruising actualiw decreased with open entrw and therefore that geographic service coverage saw even have contracted somewhat. 12. The overall decline in taxi ridership and the increase in atfluantr visitor and intreauent taxi user groups tend to denw that the increase in taxicab supply had lured riders from e i — r , J conventional transit. M While the fleet operations generally widened their service envelopes to capture the evening and nighttime travelp the associations and single-cabt operations showed relatively little nighttime activity. Indeedr thew appeared to have abandoned this market to the lamer fleets. , 14. The trip sheet data suggest that a variety of taxicab productivity measures declined industrywide between 1979 and 19809 The average number of all vehicle trips booked per shift dropped from 12.6 to 11.ir while the average number of paid miles Per shift decreased 10 Percent. The industry average ratio of Paid to total miles hold more or loss constantr howeverr as drivers limited their cruising between trips. Thus San Diego taxi drivers drove 2.2 miles for every paid mile in 1979 and 2#4 miles for every Paid mile in 1980. 15. City documentation of regulatorw costsrstill incompletev suggests that annual regulatory costs have increased bw 158 Percent over the Pre -revisions estimate. 16. According to the new new code provisions each operator's tiled rate'becomes an individual maximump under which Passengers saw bargain for tares with the tarsi driver. 17. ..SDTC opposes the service since the cabs are using designated bus stops la legal practice) and compete directly with 0 6 SDTC buses. 18. The Citw of San Diego required two-waw radio dispatch capability of all taxi vehicles Permitted since October 31P 19766 19, Survew results indicate an earlw deterioration in taxicab response times to passenger requests for service bw telephone. - The 1979 data suggest that a San Diego taxi patron face a one -in -five chance of frustration in attempting to obtain service bw telephone. About 18 Percent of all calls Place in November 1979 were either refused bw the dispatcher or resulted in a taxicab no -shown compared with S Percent of all calls Placed to a smaller selection of operators in June 1976, 20. The age of taxi vehicles since open entrw Provides a Proxw for estiaating Passenger comfort and safetw. '.3• Comparative information Presented for the two wears in Table 4-30 suggests that there maw have been a deterioration in average vehicle condition with continuing new entrw over these 15 j months. The new owners tended to buw older used vehicles and 1 most existing companies continued to operate with the same (aging) fleet. --== 21. Part-time service directed toward large carrier and militarw -r schedules increased( there was likelw little cruising outside of these target areas) response times deteriorated somewhat, f f s a Y1 r especially to outlwing districts. 6 22. Estimated annual trips were 29316r190 in 1979 and 2.233 480 for 1980P indicated a 4 percent decline. .••.the data indicate no increase in ridership with increases In the number of taxi service suppliers. 23. It is clear that taxi service innovations cannot emerge under a regulatorw structure which prohibits or discourages them. But It is -not clear from even so positive a case as San Diego appears in its other respects that a more flexible regulatorw structure alone will induce the kinds of service innovations sought bw regulators. The San Diego P/TA devoted a considerable effort to developing a zone matrix and fare swstem for shared riding in conJuction with its new code provision. But no taxi companies to date have implemented zone -based shared ride servicep despite several expressions of interest from the local industrw. Sisrilarlwt fixed route service did not initiallw develop as the regulators intended, but was limited to relativelw 4° high-priced service to an uninformed and lardelw captive ' clientele over a few highlw profitable routes. -1. 24• Although taxi service supply increased with industrw growth under open entrw, the industrwwide total of taxicab shifts supplied did not increase commensuratelw with the 30 percent Increase in taxi medallion* between August 1979 and August 1980. ti i. ' ��+ ,yam - �� _ .. .. .. , , � .,-, e. rrry • - �x�..-..,is-e.... T... ., , .. ...�i=1 Mri:r i1. e� Industrw average dailw vehicle utilization declined from 1#08 to #92 shifts Per cab tit hr shifts)r a 14.8 percent drop. -�. That isr there were 30 Percent more vehiclasr but each vehicle was oniw Providinm 85 Percent as such services 20. A few operators exacted exorbitant fares from unsuspectinm airport and militarw customers and there was temporarw rise in short -haul refusals from the airport. Monitoring the adeauacw of taxi operator liability insurance has Posed some administrative difficulties. And early 1982 witnessed a mass arrest of drivers--mostlw of one company --on drum charges. rJ' J T a I , A _1 t r 1 ' r 1 / "'ti.i V.0 . , , . I .-..-... ..-_...._ . .. .. _ _.. Prepared bw J. M. Chernow 8/13/93 EFFECTS OF TAXI REGULATORY REVISION IN PORTLANDP OREGOW A CASE STUDY FINAL REPORT SEPTEMHERP 1982 UMTA/TSC ProJect Evaluation Series SUMMARY OF CERTAIN CONCLUSIONS i. Portland first relaxed its entrw restrictions in March 1979.... 2. Authoritw for taxi rOgulatorw functions was vested in a new official# the Taxi Supervisor. 3• In April 1980 the Citw re -asserted some restrictions on entrw# Including consideration of the need for service (the burden of 0 Proof is on the applicant) and the ratio of licenses to Population. 4. It also transferred final authoritw for issuing now aervilts .,.� from the Taxi Supervisor back to the Council. �. S. Maximum (rather then standard) rates of fare for exclusive ride service continued to be regulated bw the Citw Council as before... t s J j'. f f, i 0 i i 1 i � I 1 I a Z 1. 6 11 6• Littler if anwr Price competition or service innovation has been observed since the changes• nor have the changes apparentlw served to lessen administrative or Council involvement in taxi regulation. 7. The minimum number of taxicabs reuutred for citwwide service Is increased to fifteen• ten of which must be operational at all times. a. An estimate of current administrative costs and revenues from taxi regulatorw fees suggests that recoverw is cnlw about 62 kpercent of costs. 9. The original revisor'* obJective of inducing competition and service innovations was not realized. 10. All four companies filed the new maximum rate for exclusive ride service within weeks after it was adopted in 1979. 110 A more flexible regulatorw environment maw not in itself Induce service innovations sought bw Policw-makers. 12. As Part of its concern with maintaining ouslitw of service• the Portland Council excluded unaffiliated small owner -operators bw reauiring 24-hour dispatch capabiiitw and a minimum number of taxicabs to ouslifw for new Permits. 13. Effective October 1979r the Portland Council increased the .l 4 1 ' i r - a rA `ram s -- 1xi • a.a�timur�Pate for exclusive ride service to $1 s00 drop ..plus $1s20 per miles.afrom so.90 Wailes (All operators filed this rate within a matter of weeks ..$) 14s ...geographic coverage has not markedlw increased or changed as a result of regulatorw revision. 15s Dnlw one now companw entered the industry... The operators involved were Previous members of one of the larger companies? not newcomers to the Portland area. 16s The service innovations anticipated from regulatorw Policw-makersr such as shared -riding or taxi Poolsrhave not materialized. 17s The revised regulations do not appear to have streamlined the Pergit applications process consonant with regulator obJectivess -�i The taxi industry liaison committee is reportedly preparing r -= new legislative proposals for Council considerations These events suggest the regulatory revision has not wet reduced the Council's }j involvement in taxi matters. 18s The Portland experience suggests that other regulators would be optimistic to expect to achieve taxi regulatorw reform in a single steps Successive waves of regulatorw revision and amendment maw be reautred to achieve a practical and - r comprehensive ordinances i r I t . i i f 1 i 1 r' �� The Portland experience also suggests that the absence of an -- -- on -going. consistent industry and city Policw co ncensus may lengthen the Process and Produce some apparent changes in direction and replication of effort. 19. Maintaining the Council'* final authoritw over taxi regulatory matters maw be necessary to Preserve industry confidence. ` � I � ` 1 d.� I I I r�l Prepared bw J. Ms Chernow 8/16/83 THE INDIANAPOLIS EXPERIENCE WITH OPEN ENTRY IN THE TAXI INDUSTRY 1 FINAL REPORT SEPTEMBER 1980 UMTA/TSC Service and Methods Demonstration Program SUMMARY OF CERTAIN CONCLUSIONS 1. Indianapolis' open entrw took Place between 1973 and 19751 following redistribution of the existing Permits► entrw was once again closed. 2. It shoulti be emphasized that the open entrw Policw did not Introduce independent operators into the taxi industrwr although it certainlw increased their number. I The remaining short run impacts were largely Positive. During the first weer the open entrw appeared to be highlw successful as a rainbow of new taxi colors appeared. The long -run impactor howav*rr are reported to be for different. Accidents► winter weather► and time combined to deteriorate the appearance and condition of the independent cabs. After the first a I a r , l 1 winter the independent operators found then had no monew to maintain or repair their vehicles. Insurance cancellation notices received bw the Citw Controller's Office increased from •one or two• per month to 'about one hundred fiftw• per month. Cowpiaints to the Citw about cab service •tripled• and are estimated to have totaled 5300 during the 1973-76 period. Even ordinarw complaints• such as baggage left behind in cabsp i became major problems as passengers often were uncertain of the colors of the cab involvedr and even it the colors were - I! detorminedv the cab driver often could not be found. i! Despite the forms filled out bw the taxi license applicantsp their places of business were freauentiw chansons and their hours of operation were erratic. 1 I Service complaints were particulariw high in relation to airport taxi business. `I 1 From the Cltw's standpoints enforcement became a major problem. 3. Added to these difficulties was a reported rise in the amount of crime committed bw taxi drivers and operators. In 1977 it was discovered that one firm of 19 cabs was operating a drug ring which was the largest such drug operation ever uncovered in the Citwo i b 1 1 ,1 3 At least one prostitution ring run bw a taxi operator was also 1 uncovered. The reported rapes and robberies committed bw taxi drivers also increased. 4# Of the 34 •new• owners► eleven were still in business three wears after receiving their licenses. Four of these survived bw Joining one of the larger firms as , owner -operators. The other seven are reportad bw the Controller's Office as primarilw serving 'personals' (that isr friends) and the . IA li airport. I 3# Citw officials reflect that thew should have imposed more stringent requirements in Issuing licenses. 6. The Indianapolis experience seems to be rrimarilw a demonstration of the difficulties encountered bw the Citwr the public► and the independent operators in a situation in which the operators have little business experience or skills and the roautrements necatoarw for obtaining a license are minimal. 7. ••.new owners were introduced into a comPetitivar over -supplied taxi market. r r . -_. w-i�Y—..I .., ... Y• •MNt ,�Y. .... r_ ..r-..�e:..... r.r. Ir., .... .. . 1 _i5 • I ` l • Moreoverr manw of these new owners possessed little or no business experiences which added to their difficulties of competing in a suPPlw-rich market. The result in hindsight Is Probablw Predictable$ an attrition of licenses# market segmentation with independent focusing on the airporU and some migration of independents to the firms and associations• S. Twa lessons maw therefore be learned from the Indianapolis experience.. i One is that adding new owners into a highlw competitive suPPlw-rich market Is beneficial neither to the Public nor to the taxi operators• Secondr the results of an open entrw action are likeiw to be tar different in the long run than in the short run. Thusr while not an easilw generalized experiences the Indianapolis case is certainlw an instructive one for cities contemplating a similar action. Prepared Bw J* Ms Chernow 8/21/83 Decontrol and Recontrol$ Atlanta's Experience with Taxi Regulation Prepared for the International Taxicab Association -September 1962 AUTHORt MULTISYSTEMS The Consulting Division Multiplicationsr Inc* 1030 Massachusetts Avenue Cambridsle# Massachusetts 02138 iSUMMARY OF CERTAIN CONCLUSIONS Author's Note$ `.+ ! Preparation of this document was sponsored ba the NI International Taxi Associations Howeverr the accuracy of the data r i and conclusions expressed are the sole responsibilitw of the 1' I I author* 1 liT 1* While a number of cities are contemplating or undertaking such - action (deregulation)r it is interesting to note that Atlanta, which to one of the three maJor cities that freauentlw has been 1 + '}L 1- n y� , 2 cited as operating an a •deresulatedr basisr recently has Passed a comprehensive new taxicab ordinance and is imposing much more stringent regulatorw controls than Previously were enforced. 2. ...as all those who are involved with the convention business are acutely awarer the taxi operator is the first introduction to the citw that a conventioneer or business Person receivesr and the last impression left with visitors upon their departure. Thereforer the business eommunitw correctlw Perceived the taxi industrw to be a kew element in the marketing campaign to create an -image of Atlanta as a heaithw. Pleasantr and attractive citw on the ,move. Y The business community became Particularly aware of this as a result of frequent incidents in which visitors to the cites complained of unpleasant experiances with taxi operators. It is a measure of the extent of this concern that the Atlanta Chamber of Commercer loaned such of its staff resourcesr and even Paid for legal fees in connection with drafting a new taxicab ordinance that had more •teeth' to it. 3. The current regulations reouire three separate kinds of Permitst for diversr vehicles (CPNC's -Certificates of Public Necessitw and Convenience)r and companies. 4. Their is a ceiling an the number of CPNC's and a floor on the number of vehicles which a cospana must have to go into 0 1 � � I ti 1 1 U1 ' 1 , business. Clearlwr Atlanta is now attempting to maintain a verve car efuliw controlled taxi market. S. Atlanta's experience suggests that deregulations tin the form of open antrw) saw be substantiallw ■ore expensive than regulation. Round-the-clock enforcement isr after alir an extremelw i expensive drain on the public purses and open entrw maw { ; sionifieantiw increase thr onus on the public to adopt a responsibilitw for Policing service ouslitw. J J To the extent that limited entrw encourages stabilitw of the i I � taxicab industrw and retention of professional drivers. it In effect makes Possible some (although bw no means all) degree of 'self«Policing• within the industrw itself* j b. Atlanta has chosen to reimpose regulation of entrw control Into the taxicab market because the overwhelming local consensus was that deregulation was not working. The immediate Probles.essociated with deregulation was thatt although it was introduced in response to a legitimate (civil rights) Problemp it served as a legal sanction to creation of an oversuPPiw of taxicabs. The conseauences of this overoupplw were an unstable business environment for the industrwr and Poor service muslitw for the E Public. The effect of the oversuppiw an reducing driver earning Potential is likeiw responsible for the reported low auslitw of drivers, as reflected in twpical complaints about problems such as overcharginas discourteous behaviors etc. 7# A final observation is that entrw decontrol should not be viewed as an experiment that saw be tried and rescinded at will. Atlanta's experience seems to indicate that deregulation is not alwaws easilw reversible. Once new -operators are allowed into the market, it saw be relativelw difficult to remove them again If the 'experiment• does not work. 8. Fares in 1982 are f1.80 for the first mile and 01.00 for each additional mile#.. :1 9. .t there is one school of thought that believes that open entrw Promotes better service bw stimulating competition. This is a twpicai attitude of those who advocate •deregulation'. The counter argument to this is that some protections must be offered to taxi operators to Permit these to achieve a threshold of financial stabilitw, it thew are to be capable of providing ----- dependabler high sualitw service. This Point of view would suggest that some degree of entrw - controls is appropriate and even necessarw. � 1 • I 10. ..•the abilitw to identitw the companw with which the driver is associated. r ...elimination of the color scheme requirements did not work out satisfactorilw. ComPlaints from the business communitw led to reinstatement of the regulation in 1981, 11. Manw drivers are alleged not to speak English verw well. There are evidentlw large numbers of foreign students who drive Part-timer and complaints appear to be directed Primarilw against these drivers. A more troublesome auestion is whether some drivers use their accent to create a communication barrier when a dispute over the fare or some other issue with the Passenger arises. 12. Since the taxi industrw competes with manw other industries i for its labor Poolr it is reasonable to expect that the higher the income which a driver can expect to commandt the better the �,. aualitw of Persons that will be attracted to driving* (In a survew done in 1978 bw the Atlanta Chamber of a j Commerce).* nine of the ton (taxi drivers who attended the ,I Chamber seminar) are considered at Poverty level.... •what this means in terms of taxicab drivers is that the !I rip-off becomes a frequent occurrence......oit is important to note that this has occurred as a result of the influx of unoualifiedr casual drivers, and that manw of the more i s •i i r i r M � Q 6 experienced full-time drivers are concerned.•* 'The lack of regulation of either numbers of cabs or qualifications of drivers in Atlanta has resulted in a slut of taxicabs and a swelling of the ranks of taxicab driverr most of whom earn marginal incomes from driving a taxicab#$* *Memo prepared ba the Atlanta Chamber of Commerce October 24r 1978 13. The level of effort required for adeauste enforcement went up dramaticallw following ..deregulatonr both because of an increase In the number of vehicles (which probably doubled► from roughiw 700 vehicles to perhaps 1400 vehicles) and because of a dilution of corporate responsibilitw ( from about 5 taxicab companies to 55 or move companies). 14. The self -policing concept is also important in a place like Atlanta because the emphasis must go bewond correcting gross ordinance violations and must address the attitude of the drivers► the •incidents• not serious enough to result in complaints► and the general condition and cleanliness of vehicles► etc. t - I IJ ' Ni �. 7 Thas* issues are more offectivolw dealt with through stars taken to ensure a Professional driver backed up bw a cospanw with a vested interest in the cosmunitw than through a swstao of citations. Therefores it is iaperative to create stable companies and professional driveror which in turn necessitate some doorao of market guarantees and a decent living wage. --__ Appropriate market ontrw control measures are a useful too, to aid in achieving this and. • _ I 'm 1. THE HOUSTON TAXICAB COMMITTEE C/O J. M• CHERNOW 1406 HAYS HOUSTONP TX 77098 713-224-4445 Januarw 3. 1984 EXCEPTS FROM NEWS AND MAGAZINE ARTICLES RELEVANT TO PROPOSED 'TRANSPORTATION REFORM' ORDINANCE PLEASE NOTES The accompanwing articles were brought to our attention recently as thew all relate to the effects of taxicab regulation. or the lack thereof. Please read these excepts BEFORE opening the enclosed envelope containing the actual full articles in order to appreciate the full impact of their significance. Y I t I I 1 2 'COURTS SUSTAIN RIGHTS OF CITIES TO FIX MINIMUM TAXICAB FARES' A.E.R.A MAGAZINE by Hawley Be Simpson► Research Engineer• American Transit Association The authority of local administrative and regulative bodies to establish MAXIMUM fares for taxicabs has iong been recognized. Only recently► however► has the matter of MINIMUM fares become an issue. No one► apparent1wr has given anw thought to the possibility of LARGE SCALE CUT-RATE TAXICAB OPERATIONS WITH THEIR INEVITABLE RATE WARS AND CONSEQUENT DISRUPTION OF THE ORDERLY CONDUCT OF THE TRANSPORTATION BUSINESS. The fact that financial disaster has not overtaken all low -rate cab companies is not due to anv inherent virtue in their operation but has been the result of the business depression which has mado available an enormous supply of drivers willing to work at STARVATION wages. To correct the conditions which have resulted from cut-rate taxi invasions► leaders in the taxicab industry has long Proposed that taxicabs be Placed under the control of a ... commission .. Among the more important duties with which such a commission should be charged are: (a)► to LIMIT TAXICAB LICENSES TO A NUMBER CONSONANT WITH THE REASONABLE NEEDS OF THE PUBLICi...........(c)r to Prescriber in one of several ways► the fair range of rates which maw be charged for taxicab service. The Preference for fixed rates is clearly expressed in Connecticut Public Utilities Commission Docket No. 5534 as follows: 'It is in the Public interest that rates for taxicab service in a given city or community should be UNIFORM .... There seems to be► then• no valid grounds upon which to sustain an action to restrain a municipality from enforcing a minimum or fired fare statute. •LIMITATION ON NUMBERS OF CABS' Report of the Advisorw Committee on Taxicabs to the Board of Commissioners of Police of the City of Toronto In order to avoid the numerous evil conseauences of the licensing of an excessive number of cabs. the Committee is unanimously of the opinion that a LIMITING AUTHORITY should be exercised. The question may be asked - whw limit competition in the taxicab business any more than in any other business? The answer is simply that the evils of excessive competition in the taxicab business DIRECTLY AFFECT PUBLIC SAFETY AND THE MORAL WELFARE OF THE COMMUNITY► ... There is no agencw which may be more readily converted to purposes of misdemeanor and crime than the taxicabp unless the taxicab business as a whole is in a healthy condition. This condition is rendered impossible WHEN THE BUSINESS IS SO CROWDED that the greater number of those engaged in it can hardlyv by honest effort► secure the means of subsistence for themselves and their families. The temptation to disregard ordinary moral scruples many drivers find too great to be resisted under such circumstances► when opportunities present themselves for illicit gain. 3 i •TAXICAB CHAOS• Editorial - Washingtonr D.C. POST .t.Taxicabs are literally running wild on Washington streetsp with almost complete lack of supervision or control. Public safetwr reasonable working regulations and equitable rates are disregarded. Cut-throat competition in a business of this kind always Produces chaos. Drivers are working as long as sixteen hours Per dab• in their desperate efforts to eke out a living. Cabs are allowed to go unrepaired. Hundreds of inexperienced drivers rent cabs and offer their services to the Public. •RACKETEERING IN TAXICABS - OFFERS OF LOW -RATE OPERATION NOT ALWAYS BONA FIDE Letter to the Editor of the New York Times ...sporadic information turns up from New Yorkr Chicago and other large cities to the effect that racketeers are Preparing to •muscle in• (on the taxicab industry)...... The favorite game .•.is to buy a lot of small cars and operate them at ridiculouslw low rates. That enables the racketeer to build up his own organization and gives him the facilities for city-wide distribution of Policy ticketst liquor or ant other illegitimate big -money Producing stuff. THE PUBLIC• THEREFORE. SHOULD NOT JUMP TO THE CONCLUSION THAT ANYBODY OFFERING TO OPERATE TAXICABS AT LOW RATES IS A PUBLIC BENEFACTOR. ANY STEP TAKEN IN NEW YORK OR ANY OTHER LARGE CITY TO GET THE TAXI -CAB BUSINESS OUT OF THE PUBLIC -UTILITY CLASS OPERATED UNDER RESPONSIBLE CONTROL WOULD BE DISASTEROUS. •TAXICAB CONTROL• Editorial Page New York Times The danger is that effective control will be smothered in this controversy over Jurisdiction. The industry cries aloud for regulation. ....There are still too many cabs on the streetsr....excessive cruising increases street congestion and results in uneconomical operation. ...New York thinks it has traffic troubles nowr but thew will be rendered much worse if taxicabs are allowed to run amuckr as they haver for exampler in Washingtont where in less than two gears of cut-throat competition the number of cabs on the streets Increased from 600 to 4r000r drivers' earnings dropped to the starvation level and the whole transportation system became demoralized. 4 'CITY TRANSIT• Saturday Evening Post - Philadelphia The cut -rater or low rater taxicab always appeals to the Publics in the beginningr at least. It seems an expression of individual initiative and enterprise as against special Privileger monopoly and rates which are too high for mans persons who would like to use individual transportation. But excessive competition in the taxicab business tends to BECOME A MERE RACKET► RESULTING NOT ONLY IN LOSS TO THE OPERATORS BUT IN DANGER TO THE PUBLIC AND FURTHER COMPLICATION OF THE ALREADY APPALLING PROBLEM OF TRAFFIC CONGESTION. It is difficult to see how conditions can be anything but chaotic unless the NUMBERS OF TAXICABS ARE REGULATED AND UNLESS REASONABLE FARES► BOTH MAXIMUM AND MINIMUM► ARE PROVIDED BY PUBLIC AUTHORITY. 'PROTECTING THE PUBLIC• Editorial Page - Salt Lake Citwr Utah - TELEGRAM (Comment on a new taxicab ordinance) Other Provisions of the ordinance relate to distinctive colors to identity cabs as to ownerships too restriction of numbers operating in a blockr ...approved fare scales ..... The taxicab situation has become unusuallw important in the Past wearl indeed in the Past few months. The unemployment situation has had much to do with this. IRRESPONSIBLE INDIVIDUALS AND FIRMS LACKING A CAPACITY FOR OPERATION OF PUBLIC CARRIERS HAVE INVADED THE FIELD and have aggravated a condition that was intolerable before their coming into it. It Presents a serious Problem which the city government should look into carefully. 'STOP THAT WAR' Editorial The Ohio State Journal? Columbus► Ohio A taxicab war now threatens Columbus. Violence in the stealing and burning of a cab has already taken Place. Taxicabs are an essential Public service► but it is the duty of the city to regulate them in the interests of Public safety. The war seems to be .....between the cut rate cabs and those which are maintaining old Prices. While there is no obJection on the Part of the Public to low taxicab fares nevertheless SAFETY MUST BE MAINTAINED AND IT IS ALSO ESSENTIAL THAT THE DRIVERS REALIZE A LIVING WAGE FOR THEIR WORK AND THAT COMPETITION BE NOT PERMITTED TO REACH THE PLACE WHERE REASON AND ECONOMICS ARE SACRIFICED FOR THE SAKE OF A GENERAL MELEE. Some months ago city council Passed a regulation ordinancer which is now in the courts..., In the meantimer it is up to the city administration to Protect Columbus against the evils of a taxicab war. I � I ,t s 'A TAXI -CRAZY COUNTRY' Columbus► 0, Dispatch Editorial too the situation is simply indescribable. Chaos cannot be Pictured in definite outlines and full detail. Some cities are making hard fights to set some swstem of effective regulation into operations but there seems to be no case of clear and complete successr as Yet. It might do some goody we think► if every CITY COUNCILMAN► safety directory etc# in the countrw could read what Mr. Tompkins has said (10 page article in American Mercury magazine)p and realize more fully the Problems which are created bw 150r000 or more UNREGULATED TAXICABS► STRUGGLING DESPERATELY► AND OFTEN LAWLESSLY► FOR ENOUGH OF THE POSSIBLE PATRONAGE TO LIVE ON. 'MORE TAXICABS?' Cincinnati► 0. Enquirer - Editorial Council► in the midst of hearings on applications for additional taxicab licenses in the citwr discovers much more to consider than meets the owe at first glance. (The Director of Public Utilities refused to grant licenses.) There is the matter of public necessitw... Cab companies operating in the citw have learned two things from experience - that THE REDUCTION OF RATES SELDOM BRINGS AN INCREASED VOLUME OF BUSINESS SUFFICIENT TO JUSTIFY THE DECREASES AND THAT NO COMPANY CAN OPERATE LONG AT A LOSS. WHY CLUTTER UP THE STREETS UNNECESSARILY WITH ADDITIONAL TAXICABS TO INDULGE IN CUTTHROAT COMPETITION AND BRING RUIN TO ALL OPERATORS? TAXICABS ARE A PUBLIC UTILITY AND SHOULD BE REGULATED AS SUCH, NO UTILITY HAS EVER SERVED THE PUBLIC WELL OR PAID ITS INVESTORS AN ADEQUATE RETURN WHEN FORCED TO ENTER INTO WILE -OPEN► IRRESPONSIBLE COMPETITION. 'WHAT TAXICABS MAY CHARGE' Editorial Page Cincinnatir 0. Times -Star ...Undercharging for taxicab service maw be Quite as i detri;ental to the public interest as overcharging. .. The real danger today is that intensive competition maw forces rate temporarily below the cost of the service. (In other cities in Ohio) the public has :said the penalty for riotous competition in greater traffic congestionr lower j standards of servicer increased accidents, street violence and eventuallyr of courser bankrupt cab companies. The Ohio Supreme Court ruled unanimousiw last June that Y G.: municipalities have the right to fix minimum taxicab fares. The exercise of this Power is the only safeguard against the threat 'i of recurrent and ruinous rate wars. i I i • I I i� 6 Al THE HOUSTON TAXICAB COMMITTEE Attached hereto are copies of the actual articles quoted in the foregoing. EVERYTHING THAT YOU HAVE JUST READ WAS PUBLISHED MORE THAN FIFTY (50) YEARS AGO - IN 1932 OR 1933 11 We again ask whw the proponents of the proposed Transportation Ordinance Persist in advocating complete elimination of taxicab entrw reauirementsr now based upon Public convenience and necossitwv as well as the elimination of proscribed faresr when the lessons of history of fifty gears ago and the current experiments of other cities clearlw demonstrate the serious adverse conseauences that will result$ i } 1 t r e i I 7 T�- { The citizens of Houston will suffer from a lower standard of service. The visitors and conventioneers to Houston will be confronted with confusion and the hassle of solicitation and varying fares. The City administration will find itself with an enormous Increased cost of enforcement as an influx of one -cab operators appear and corporate responsibility is diluted. The existing several thousand full-time drivers, most of whom are minoritiesp will find their earnings seriously impaired as they compete with an influx of casual drivers and foreign exchange students. The ladle taxi fleets► which have invested millions of dollars in facilities, equipment and vehiclesp will find themselves in an unwarranted position of uncertaintu and will be forced to retrench and deprive the public of improved and expanded WHY 'FIX' SOMETHING THAT ISN'T •BROKEN'Z 1 r PERIEN?.:j,:THEEX" CES OF U.S. CITIES WITH TAXICAB OPEN FNTRV THE EXPERIENCES OF U.S. CITIES WITH TAXICAB OPEN ENTRY October, 1983 By PARATRANSIT SERVICES " 121 South Estes Drive Chapel Hill, NC 27514 r; ¢k"." 'hs-0,11'nbiz , h77, . , d = _ I v 1 " � I Copyright ® 1983 by the 11300 Rockville Pike, �aRockville,l Taxicab Maryla d Association20852 EXECUTIVE SUMMARY In the past decade a few cities have enacted taxicab regulatory changes that have eliminated limitations on the numbers of taxicabs that can operate in their Jurisdictions. These open entry cities provide an important information base from which other cities can learn of the likely results of --- - open entry. This report Provides an analysis of nine of these open, entry cities: Atlanta; Fresno; Indianapolis; Milwaukee; Phoenix; Sacramento; San Diego; Seattle; and Spokane. Para - transit Services contacted local officials and compiled in- formation from reports and internal correspondence for each of these cities. This information is presented herein in the form of nine case studies. i The case studies lead to several similarities among these -- -; cities, similarities that form conclusions about the effects of open entry. One conclusion is that extensive taxi competition already existed before open entry. Another conclusion is that a major taxi event, such as a strike or bankruptcy, often trig- gered local interest in open entry. The impacts of open entry includes (a) a large increase in numbers of taxis; (b) many in- dependent owner -operator taxis; (c) major problems at airports; `4 and (d) increased cost of taxi administration by cities. ._ _ d J 1J i s 'y. i, I' I i. ACKNOWLEDGEMENTS Paratransit Services is grateful to the local officials and taxicab operators who i� provided the information for this report. Appreciation is also expressed to the Inter- national Taxicab Association for financial support. Paratransit Services retains re- sponsibility,, however, for the accuracy of the information contained herein. �f J 1 I; ,I i I I 1 F zi i7lu Q. 1.0 INTRODUCTION 1.1 Background Public control over taxicabs and their predecessor, the hackney, first began over three hundred years ago in England. The early English hackney regulations controlled the number of vehicles that could be licensed as hackneys, the fares that they could charge, and other aspects of hackney service. Since that time, the practice of public control over paratransit ser- vice has continued. In the United States, public control over taxicab service began early in this century, and widespread public control occurred during the early 1930s as unemployment and.a surplus of unsold automobiles combined to increase the number of taxicabs on city streets. These regulations were pat- terned after the early English hackney laws in that they usually ,restricted entry into the industry, set fares that could be charged, and required minimum standards of safety and financial stability. Many of these early regulations have been only slight- ly modified during the past half century. Probably the most controversial facet of taxicab regulations has been the controls over entry in the industry. Over eighty- seven percent of the U.S. cities control the number of taxicabs licensed in their jurisdictions. The most common method of en- try control is a ceiling on the number of taxicabs. The second most common method is the requirement that an applicant show that "public convenience and necessity" support the noed for t I r- ffm I I' Page 2. additional taxicabs. The third most common method is the es- tablishment of a fixed ratio of taxicabs to population. There are several other methods that are infrequently used, such as granting franchises to a limited number of firms and setting high entry standards. An example of the latter is the require- ment that a taxicab operator have a munimum number of taxicabs. In the past decade a number of U.S. cities have enacted ma- jor changes in their taxicab entry controls. In some cases, cities have enacted entry controls that have increased city re- strictions over entry into the industry; in other cases, cities have lessened or removed entry controls. Such major changes in regulation are sometimes called "regulatory revision", and the cities in which entry controls have been eliminated are open entry cases. The subject of open entry has been very controversial with- in several industries, and the taxicab industry is no exception, Fueled by the national trend away from regulation, many cities have discussed open entry, and a few cities have actually en- acted open entry policies. Several other cities have administra- tively imposed open entry by granting taxicab permits even with- out showing that public convenience and necessity supported ad- ditional taxicabs. Proponents of such actions argue that govern- ment should not interfere in an industry unless it is absolutely necessary, while opponents cite problems that will result if com- petition for taxicab business is not somehow restricted. i S s' i I, } I i r• Page 3. While this debate is intellectually interesting, it is less and less necessary. Because several cities have dramatically changed their entry regulations, there is now empirical evi- dence regarding the effects of open entry. Figures 1 and 2 list Ithese cities. The cities in Figure 1 have all made changes to some form of entry control other than open entry. The cities in Figure 2 have changed to open entry. There is some overlap r in these lists because Atlanta, San Diego, and Fresno have made I changes of both kinds. The experiences of all these cities pro- vides an opportunity to learn how major changes in entry contols affects the taxicab industry and the quality of service that taxicabs provide the general public. 1.2 Scope of Report The purpose of this Report is not to argue that open entry is bad or good. Rather, the purpose is to examine the evidence . that is now available regarding the experience that cities have had with open entry. It is hoped that by summarizing this in- formation in a factual and objective manner, the Report will aid local officials and operators in cities that are considering changes in their entry control. There are certain obvious pitfalls in attempting to examine the impacts of any phenomenon as controversial as open entry. One pitfall is not including all the relevant cases but rather choosing only those that support a particular viewpoint. Another is to omit impacts that are deemed to be unimportant or that con- CITY DATE Portland, OR 1979 Norfolk, VA 1982 Madison,WX 1979 Charlotte, NC 1982 El Paso, TX 1981 Atlanta, GA 1981 Fresno, CA 1982 San Diego, CA 1983 Orlando, FL 1981 i ACTION of i Established minimum stan- dards for entering in- dustry. Switched from medallions to certificates of public convenience and necessity. Changed from population ratio to minimum stan- dards. Switched from public con- venience and necessity to minimum standards. Changed from franchise system to public conven- ience and necessity Changed from open entry to public convenience and necessity. Changed from open entry to minimum standards Changed from open entry to a one-year moratorium Increased ceiling on number of taxi permits from 127 to 220 and set minimum standards. FIGURE 1: Major Cities Changing Entry Controls Without Adopting Open Entry x i CITY STARTED Atlanta, GA 1965 Indianapolis 1 IN 1973 Spokane, WA 1980 Fresno, CA 1979 - - Seattle, WA 1979 i San Diego, CA 1979 Milwaukee, WI 1979 Phoenix and Tuscon 2 AZ 1982 ENDED 1981 1974 r I ,I. i iE i 'I I v I Tacoma, WA 1981 Oakland, CA 1979 Berkeley, CA 1980 Sacramento, CA 1982 FIGURE 2s Major Cities Changing to Open Entry �+ i 1. Indianapolis did not change their ordinance but did effect open entry administratively. 2. The State of Arizona deregulated all transportation, leaving Phoenix and Tuscon as open entry cities. 1- 1- )t 1 ' fl J ii f } 1982 1983 1 f .n - .1.y _ �I1-�it4...� trr .•i.irs �-t -� __ _ ,� __ .' _ � ... .... ,� ... Tve� t r� . - •. .... ..., �� .. .. Page 4. tradict a hoped -for conclusion. Both of these problems demand that the method of selection and analysis be clearly stated. This analysis focuses on a sample drawn from the cities in Figure 2. The cities in Figure 2 represent all those cities that are known to have made major changes to open entry. Among these, a few have opened entry only in the past year. These have been excluded from the sample because the long-term effects of open entry in these cities cannot yet be determined. Two other cities, Berkeley and Oakland, were discovered late in the study and, because of time constraints, were not able to be included. Thus, this analysis focuses on data from the following cities: Atlanta Fresno �, • • Indianapolis Milwaukee . Phoenix a _ Wt Sacramento San Diego { Seattle — Excluded from the sample are several cities that have enacted f ;i entry control changes that are similar to open entry. One such l city is Orlando, which increased the number of taxicab licenses -J permitted from 127 to 220. Also excluded are Charlotte and Port - oil land, where the public convenience and necessity clauses were re- placed by sets of minimum standards for new taxi firms. Neither J a - z� I Vin Page S. of these cities strictly qualifies as an open entry city. Sev- eral other cities have not officially changed their ordinances to open entry but nonetheless function as open .entry cities. These cities have also not been included in this study. The method .of data collection and analysis for each of these cities is the same. First, written documentation was solicited and reviewed for each city. In some cases, such as Seattle, In- ____ dianapolis, and San Diego, this documentation was extensive and comprehensive, while in a few cases, little documentation existed. Second, phone calls were made to city officials in each city to update the available information and to verify facts in the prin- ted materials. Finally, taxicab operators were contacted to cor- roborate the facts drawn from each case. This information was then written into case studies, and those case studies were com- piled into this Report. The remainder of this Report is organized into two major I. parts. Section 2 contains nine case studies. Section 3 presents conclusions based on these nine case studies. a � 1 0 e .. r -..� .�....1......:r 2.0 OPEN ENTRY CASE STUDIES Page 6. 2.1 Atlanta Atlanta opened entry to its taxicab industry in 1965. At the time, the city had about 700 taxicabs that were controlled by five companies. It also had a large but undocumented number of "cars for hire", which were essentially black -owned taxicabs that served minority sections of Atlanta. The civil rights movement of the 1960s led City officials to remove barriers that prevented the cars -for -hire from serving major trip generators, such as the airport. To effect this change, the city passed an ordinance that removed the distinction between taxicabs and oars -for -hire. This ordinance immediately increased the number of taxicabs to about fourteen hundred by licensing the cars -for -hire as taxicabs. In so doing, the City removed all limitations on the numbers of taxi- cab permits. Only open entry was enacted; fares remained regulated. The result of the open entry action was to change the structure of the taxicab industry in Atlanta. The five large companies were replaced by an industry composed primarily of independent owner - operators. Both old and new taxis moved to serve the more lucra- tive locations, and competition at the airport and at major hotels increased. In the 1970s, Atlanta emerged as a major commercial and con- vention center. These changes alerted the business community that Atlanta's taxicab industry was a Key element in creating a Page 7. progressive and attractive image for the City. These concerns were highlighted by frequent visitors' complaints about taxicab service. In fact, the concern among business leaders was so great that the Atlanta Chamber of Commerce donated staff re- sources to draft a new ordinance. The basic reason for Atlanta to consider re -regulation was a concern that open entry was not working. Open entry was in- tended to serve a civil rights problem, but in so doing, it sanc- tioned what became an over -supply of taxicabs. Local business and city officials viewed the over -supply of cabs as leading to an unstable business environment within the taxicab industry and poor quality service for passengers. These perceptions led the City to try several measures of control from 1975 through 1981. However, most of these regulatory attempts were unsuccessful because they were either ineffective or unenforceable. Figure 3 summarizes these attempts. Thcn, in 1980, the.Mayor's Taxicab Task Force convened to try again to develop a set of regulatory reforms. In February, 1981, the City passed a revised ordinance based on the Task Force's recommendations. The essence of this new regulatory action was the re-estab- lishment of entry controls. The ordinance required a Certificate of Public Necessity and Convenience (CPNC) for each vehicle in operation as a taxicab. The ordinance limits the number of ve- hicles to 1500 to•be reached by attrition as vehicle operators leave the industry. The certificates are allowed to be bought I I I I i; Public Safety Insurance Driver Quals 1975 1976 1 1977 1978 1979 1980 11981 15/50/5;$55,000 collateral for S.I 10/20/51 $10,000 record considered national record search Entry Control f of vehicles i of companies unenforceable ceiling IMoratorijCeiling not regulated after the s Service Quality Veh age Veh inspections Vehicle color sc Veh/company min. Dress Code Street guide Driver exam Driver transfers 3 years weakened, then dropped annual I semiannual eme required 50 1 repealed none reinstated 25 required required not required required no restrictions year maximum repealed Enforcement 1 police sergeant staff of 12 FIGURE 3: Summary of Atlanta's Regulatory Changes Source: Multisystems, (1982). 1 Big. 919-Nall N 11111N I a - aQ Page 8. and cold among operators. The City also requited all new operators entering the industry to have a minimum of 25 cabs. The result of the closing of entry is a gradual coalescing of the taxicabs into fewer firms. There are now 1538 Certifi- cates. These are held by 25 companies, whereas two years ago there were 55 companies. The 1981 ordinance also changed the manner in which the City administers its taxicab regulations. The City established a Bureau of Taxicabs and Vehicles -for -Hire along with a Vehicle - for -,Hire Appeals Board. The Bureau is a division of the Police Department and has a twelve -person staff that oversees the taxi- cab industry. The Appeals Board is an independent entity that reports to the Mayor and City Council. The current director of the Bureau reports that the new ordinance is working well and that the Bureau is working with the taxicab industry to improve taxicab services in places other than the airport. I I Page 9. 2.2 Fresno This city of 250,000 people has had a long and involved history of taxicab regulation. Originally, Fresno limited the number of cabs on the basis of a minimum requirement of 25 trips per day per vehicle and by a five -cab minimum per taxicab firm. in 1979, the taxicab industry petitioned for a fare hike and began negotiating with City Council, setting off a controversy concerning the amount of time necessary to process such requests. The discussions among City staff continued and soon became fo- cused on the question of whether entry controls were necessary. Several ideas were considered for regulating the issuance of permits, including the use of a population ratio, before it was decided to open entry and fare setting completely and thus allow the market to regulate the industry. At that time, the respon- sibility for the permitting of cabs was switched from the Police Department to the Finance Department. In making this decision, Fresno's staff conducted a survey of several neighboring cities, including the recently deregulated Seattle and San Diego. Based on this analysis, the City Council passed an ordinance late in 1979 that completely opened entry and decontrolled fares. Deregulation lasted about eighteen months. Before open entry, the City had 70 cabs. Of these, Yellow Cab had 51, Fres- no Cab had 9, American Cab had 5, and there were five permits held by independents. After open entry it became increasingly evident to the City that unlimited entry and fare -setting was not working. Customer complaints tripled, according to the De- ,f Page 10. puty City Manager, and the business community became involved due to concern for problems encountered with taxi service. These problems included price gouging and poor upkeep of the vehicles. Several cab company owners fought consistently for re -regulation. Due to these problems, the City issued a moratorium on taxicab permits late in 1981. Procedures were begun to re -write the or- dinance to provide stricter regulation of the industry. At that time there were 50 cabs spread among 25 to 30 companies. The changes in the number of permits are shown in Figure 4. The City re -imposed regulation in January, 1983, at which time the moratorium was lifted. Since that time customer com- plaints have reportedly dropped, and entry into the industry has slowed considerably. The new regulations have continued to be administered by the Finance Department. As of August, 1983, the taxicab industry and the City report satisfaction with the new ordinance and are generally cooperating to increase enforcement. The current ordinance requires a minimum of three cabs per oper- ator, twenty-four hour per day dispatching, and a minimum of $160 r -' per day per cab in documented revenues. The Fresno experience with open entry is now seen by every- one interviewed during this study as negative. One City official put it this ways "We do not regulate the number of stores, but -- it is different with taxicabs. We assumed that market pressures -:: would control the rates and provide a level of service which would be satisfactory, and it did not work." One problem that was com- i a 1 r � n 1 1 i 1 iI i t' 4 I ' Page 11. -- � I monly cited was the confusion of having over 25 different color schemes for the different companies. Currently, 45 cabs from about 20 companies serve the City. I � I � J { 7� I • 1 � t 1 I• 1 . I y 1 Y I 1 } I 1 � I o Page 12 . '7 2.3 Indianapolis The Indianapolis situation is different from others included in this analysis. Indianapolis did not enact new legislation to open entry, but rather the City administratively enacted an open entry policy. It is, however, an important case study to include in this analysis because for over a year the City was in effect an open entry city. Indianapolis is a city of over seven hundred thousand people. In 1970 the City and Marion County combined governments, and in the process, the taxicab regulations of the two entities were also combined. The new ordinance replaced the previous cab -to - population ratio (1 per 1000) with a ceiling of 600 licenses. Otherwise, the new ordinance made few changes in taxi regulation with the City Controller retaining authority to grant licenses based upon a finding of public convenience and necessity. Dur- ing the early 19709, few if any applications for new taxi licen- ses were received by the Controller. In 1972 there were 502 taxicabs licensed in the City. There were ten taxicab firms. Five of these were independents that held a total of ten licenses. The largest was Red Cab, which operated 302 taxicabs using union drivers. Yellow Cab was the second largest firm with 51 licenses. Three other firms held 139 licenses. Thus, even before open entry, there was substan- tial competition within the taxicab industry. Several factors combined to bring about open entry in India- ' I q 1 �_� _ !7 Page 13. napolis. One of these was the bankruptcy of the largest taxi „company. Red Cab had been sold in 1969 to a Chicago company. By 1972, the new owners were having severe financial problems. The quality of Red Cab service declined to the point that the company lost its exclusive franchise with the airport. In 1973 the Red Cab drivers went on strike, and in August of the same year the company entered bankruptcy and ceased operations. A second factor was the change in enforcement of the taxi- cab ordinance. Prior to the City -County consolidation, there had been little or no enforcement of the taxicab ordinance, but with the consolidation, the Controller was also given enforce - went powers and a full-time police officer to carry out the en- forcement. The ordinance included a provision that allowed the City to revoke any license that had not been used for 60 days. As the condition of Red Cab deteriorated, the Controller's Of- fice became increasingly concerned and began checking how many cabs each firm was placing in service each day. ' The result was a series of revocations of existing licenses. In April, 1973, the Controller revoked 155 licenses, of which 130 came from Red Cab. During the next eight months the Control- , �4 � ler revoked 100 more, and in August the remaining Red Cab licen- ses reverted to the City when Red Cab ceased operations. By suddenly having at its disposal a block of licenses to distribute, ! the City was.in the unique position of being able to shape the - structure of the industry. v Page 14. The City chose to distribute these licenses in a way that made Indianapolis an open entry city for over a year. The City j advertised the availability of the licenses and imposed few re- quirements on applicants. A person needed only to pay $102 and f pass minimal qualification requirements in order to be given a r taxi permit. No minimum number of taxis per applicant was im- posed, nor was radio communication required. In fact, the City I purposely encouraged new owners to enter the industry by helping them set up their businesses. J The City gave out the permits in two batches. In May, 1973, the City gave out 125 permits, and in April of the following year 94 more were issued. All the available permits were not requested. Thus, after the reissuance, the total number of taxicab permits totalled only 466, a decrease of 76 compared with the 1972 total. One interesting result of the open entry experience was that rl ;I only one "new" person entered the industry. The open entry ! brought in 34 new owners, but 33 of these had previously been drivers for one of the taxi firms. This fact, along with the fact that all the available licenses were not taken, means that there was not a strong demand for taxi permits in Indianapolis. However, the most significant result of the open entry was a major re -structuring of the industry. Yellow Cab purchased 100 new permits to emerge as the largest fleet with 151 permits. The other firms purchased only a few of the available permits. inde- pendents, however, purchased 147 new permits, and as a group held Number of Permits Operator 1972 1974 1983 Red Cab 302 0 0 Yellow Cab 51 151 156 Other Firms 139 158 109 Independents 10 157 05 j TOTAL 502 466 350 FIGURES: Numbers of Taxicab Permits Before and After Redistribu- tion in Indianapolis ' Source: Gilbert and Gelb, (1980) �11 ! J 1 , � t < i i , k F � I t ; 1 �1� •i 1 r 1' Page 15. 157 permits in 1974. The before -after comparison of the in- dustry structure is shown in Figure S. By August, 1983, the overall size of the industry had shrunk to 350 permits, with 85 of these held by independent operators. Yellow now had 156 permits. The results of the open entry were otherwise negative as far as City officials report. The large number of taxicab firms created a rainbow of different color schemes and a large increase in enforcement problems. Insurance cancellation notices increased from a few per month to "about one hundred fifty per month." Likewise, the City received many more complaints about taxi ser- vice; a total of 5300 were received during the 1973-76 period. I Many taxi operators failed to maintain a place of business and were difficult to track down for even routine enforcement matters. There were also crime problems, with one large drug ring and one prostitution operation uncovered among taxi operators. .'gd The outcome of these problems was that the City decided not to issue any more permits. Thus, even though there were still �, !' permits available from those that had been revoked, the City chose not to re -issue any more. Gradually, as operators left the industry and as some were bought out by others, the number of independents decreased. (E� 1Y 1 y • 1 �J { Page 16. 2.4 Milwaukee Taxicab regulation in Milwaukee began in 1924, eight years after taxicabs first began business in the City. For decades, 9 Y ., the City controlled entry through a public convenience and ne- cessity clause, which had become interpreted as a ratio of ta- xicabs to population. Until the late 1970s, this ratio was set at one cab per 1175 people. Regulation of taxicab vehicles was administered directly by the Common Council's Utilities and Licenses Committee while taxi drivers were regulated by the City Clerk. J 1 -In the middle 19700 two problems arose that caused concern .I among City officials about taxi service. The first of these was the practice of leasing taxicabs. Milwaukee had traditionally N required permit holders to show that they owned their vehicles and to comply with specific City regulations. The rise of leas- r I ing concerned officials because they perceived that many permit' holders were leasing their vehicles and permits to persons that I t were not controlled by the permit holders or the City. The City staff considered this situation to be a potential threat to the safety of passengers, and the City considered several solutions to this problem. One possibllity was a medallion system, which had the strong support of the local taxi owners, but which was rejected by the City. A second event was the bankruptcy of the largest taxicab fleet, Boynton Cab, in 1979. Boynton Cab Company had been in �t 11.1.1 . . _ .- Page 17. business since 1917 and was the largest and oldest cab company in the City. on April 1, 1979, the Company closed its doors after having been in a dispute with its drivers over an increase in the driver lease fee. Boynton Cab held 175 permits, or 46% of the permits in existence. When Boynton Cab ceased operations, the City became even more concerned about the adequacy of taxi- cab service and questioned more seriously the long-standing prac- tice of limiting taxicab permits by a ratio of taxicabs to popu- lation. on June 28, 1979, the Common Council passed an ordinance that dropped all limits on the number of taxicab permits. Passed against the opposition of the taxicab industry, the ordinance spelled out minimal requirements and required a licensing fee of $70 per year (which was raised from $25). The Council also dir- ected the staff to study the taxicab situation in the City. Two reports resulted; one was presented in 1980 and the other in 1982. The impact of the open entry ordinance has been to change the structure of the industry. prior to open entry there had been 380 permits, of which 175 had been held by Boynton Cab. The num- ber of taxicab permits had been declining before 1979, with a high of 526 in 1973. After the bankruptcy of Boynton Cab and the issuance of the permits under the open entry ordinance, the in- dustry emerged as a very fragmented one. As of August, 1983, there are 351 permits, or a decrease of 29 compared with the 1979 figure. There are no fleets in operation; some of the 351 inde- pendent operators are associated with four cooperatives that pro- r' Page 1S. vide radio dispatching services. Two of these cooperatives are composed of former drivers of Boynton Cab. i 4 f . ... _u___ +I r. .._. ^.Y..r ...� w• r � • nor « Page 19. 2.5 Phoenix The Phoenix open entry situation is different from others discussed in this report in that it was the State of Arizona, not the City, that opened entry. Until June, 1982, all taxicabs in Arizona were regulated by the State Corporation Commission, and Phoenix and all other cities in Arizona were not involved in regulating taxicabs. When the State Corporation Commission was stripped of its taxicab responsibilities, the Arizona Depart- ment of Transportation was given the responsibility for enforcing insurance standards, and the Arizona Department of Public Safety was given authority to enforce safety standards. Neither agency has been given the staff resources to actively pursue taxicab enforcement, so these enforcement matters have been left largely to local officials. Phoenix officials correctly anticipated that open entry would mean problems with taxicabs at the Phoenix Airport. To prepare for open entry, the City in June, 1982 issued annual permits to taxicabs serving the airport. The permit cost $300, and it re- quired a listing of vehicles operated by the owner, a certificate showing minimum insurance coverage, a display of fares and the basis by which they are computed, and the owner and operator of the vehicle. After the annual permit system had been in effect for several months, the City realized that this attempt at taxicab regulation was not enough control. The tremendous variation in taxicab rates a i ' J M Page 20. caused much negative publicity about rate .gouging and the question- - -able safety condition of the taxicabs. In an attempt to establish more control, the City tried to contract service at the airport to five low bidders. The City issued 100 airport permits to five firms; Yellow Cab received 50 of these. This action was intended to decrease the number of taxicabs allowed to pick up at the air- port, but it did not directly address the alleged safety condi- tion of taxicab vehicles there. This method, however, was chal- lenged in court by other companies because their annual permits were voided before they had expired. The City lost this suit and was forced to return to the annual permit system. The problems at the airport returned, and the City began planning for regula- tory changes to take effect when the annual permits expired in June, 1983. The City manager appointed a staff Task Force to study the legal and administrative remedies available to the City to provide a long-term solution to the taxicab problems at the airport. The Task Force carefully considered a variety of actions. The Task Force surveyed eight cities (including San Diego, Seattle, and Atlanta) to determine how these cities handle the problems facing Phoenix. The Task Force also considered the legal issues and constraints facing the City in adopting taxicab regulations. ! The City Charter does give the City the authority to establish -taxicab stands and to regulate the setting and posting of fares. Also, there appear to be no general statutes that prevent the City a Page 21. from setting driver and vehicle standards city-wide or con- tracting for taxicab service at the airport. However, the Task Force was concerned about possible antitrust problems emanating from the Boulder decision, a decision by the U. S. Supreme Court that limited the antitrust immunity of municipal governments. An issue paper was prepared discussing the antitrust question. This paper and the results of the survey were given to the City Council in May. The Task Force also gave the Council three al- ternative groups of regulatory actions: airport regulations only; city-wide regulations; and a combination of the two. The Council selected the first alternative. After much dis- cussion about possibly returning to an airport taxicab contract system, the Council adopted a modified permit system. The City established quarterly permits and minimum operating standards for taxicabs serving the airport. The permits each cost $75 per quarter, +and they may be revoked by the City at any time. The minimum performance standards include vehicle safety standards, driver certification, detailed information on fares and how they must be uniformly computed by all airport taxicabs, and a prohi- bition on solicitation at the airport. only the uniform fare com- putation and posting requirement applies city-wide. The new ordinance has only been in effect since July, 1983. It is, therefore, too soon to determine its effect on taxicab op- erations. The City reports that there are currently 115 airport permits in effect; however, this quarter is not a peak tourist I I t Page 22. time, and industry officials state that during the cooler quar- ters the number of airport permits will be much higher. The City does not know the number of taxicabs in the City as a whole. The City will re-evaluate the permit policy later this year. Some insight into the effects of open entry can be derived from discussions with the major taxicab operator, Yellow Cab. Before deregulation, Yellow and one smaller company had all the taxicab permits in Phoenix, with Yellow owning about 300 permits. Now, Yellow operates 225 cabs, of which only 110 are company - owned cars and the rest are owner -operator cars affiliated with the Company. The Company reports that they have been increasing their percentage of owner -operators because of open entry and intend to continue this trend. They also no longer allow their cabs to wait at the airport, although six of the Yellow -affiliated owner -operators do have airport permits. Immediately after open entry, Yellow tempo- rarily boycotted the airport because of the problems there but then purchased 90 permits. when the City decided to contract for airport service, Yellow asked to keep their 90 airport vehi- cles but received only 50. Then, when the City lost its court suit and returned to the annual permit system, Yellow turned back its airport permits, except for a few held by its owner -operators. Now Yellow owns no airport permits except for the six owned by its owner -operators. Yellow also estimates that there are now i i I --+"..•.—.v-yT_..__ _... '�; x-•_`i-•_._-.},:.^.�h'U�RP%dL".Jn'I(YliuY:j'.IL�: '�"� 4 .. rcri _ _ zr I Page 23. about 200 independent owner -operators in the city, meaning that about 425 taxicabs serve the City. , The taxicab regulatory situation in Phoenix is still sub- ject to change. The City will be reviewing its airport permit policy. Also, the Visitor and Convention Bureau, which had been consulted by the City during its recent deliberations on ----- taxicab regulatory revision, has pushed for more stringent city- wide regulations. It is not clear at this time what future re- gulatory actions are likely. tI I _ , 1 I I 1 Page 24. �I 2.6 Sacramento Taxicab regulation began in Sacramento in the 1940s and re- mained unchanged until 1952. Amendments were added then to lim- it the number of operating taxicabs to a ratio of 1 per 1500 population. In 1968, there was a modification made to the exist- ing ordinance which increased the number of permits from those permitted under the population ratio (then 132) to 147. Through- out the 1970s the structure of the taxi industry in this city of 280,000 people showed little change. The City had three taxicab � companies: Yellow, Sacramento Taxi, and Courtesy. In the mid 1970s, these three firms operated approximately 136 taxicabs, with about 95 of these belonging to Yellow. By 1981, there were only 123 taxi permits in effect, with these three firms holding 95, 20, and 8, respectively. .. f, The decision to open entry in Sacramento was not made in haste. As early as 1978, four years before it adopted the open entry regulation, the City Council considered the feasibility of N relinquishing its control over taxicab operations. The Council's ,primary motive was to rid itself of the task of setting fares. As part of its deliberations in 1978, the Council had the staff survey 35 California cities to determine how other cities were setting fares. The Council considered three options: repealing the municipal code (i.e. complete deregulation); establishing a Board of Convenience and Necessity; and retaining the current system. After much discussion, the Council decided that dereguIM - 1 1 i E 0 Page 25. lation would impede police powers to control the industry, and no major changes were made. Two events sparked the City's decision to open entry in May, 1982. One was a strike of Yellow Cab employees on December 31, 1991 over the loss of union security and pension benefits. The other was the U. S. Supreme Court decision in January, 1982 in the case of Community Communications Company v. City of Boulder. The Court ruled that the City of Boulder was not immune from an- titrust liability based on the powers given it by the State of Colorado. This decision spurred the Sacramento Department of Law to conclude that Sacramento could not limit the number of taxicab licenses, provide exclusive taxicab stands, or regulate fares without being subject to antitrust action. This legal o- pinion and protests from striking Yellow drivers led the Council to h Cit staff to prepare a report concerning possible to direct t e y changes to the City's taxicab regulations. On May 25, these changes were enacted over the protests of the taxicab firms. The 1982 ordinance eliminated the limit on the number of ' t taxicab permits and discontinued fare regulation. Driver and vehicle permits are issued by the Director of Finance in accor- 1 dance with procedures outlined in the ordinance. Operators are free to set their own rates, but these rates must be posted on the vehicles and filed with the Director. Rates may be changed no more frequently than once every three months. The ordinance ', also increased liability insurance limits, required twenty-four J I 1 _ A i i e J It Page 26. hour dispatching, and strengthendd the standards for vehicle .., .inspections. The open entry action dramatically changed the structure of the taxicab industry. Since open entry 16 new companies have formed. The number of taxicab permits increased from 110 in 1982 to 168 in August „ 1983, an increase of 52.7%. Almost half of the new permits are held by Capitol City Co-op, comprised of former A Yellow Cab drivers. The three firms that had existed prior to open entry all remain in business with approximately the same number of taxicab permits as before open entry. Thus, the in- d i crease in taxicabs is due to Capitol Cab Co-op, a few small firms, and owner -operators. The distribution of taxicab permits both 1 before and after open entry is shown in Figure 6. - � A major impact of open entry has occurred at the airport. Until open entry, Yellow Cab had an exclusive contract to pro- vide taxicabs at the airport. With open entry the number of taxi- cabs increased substantially. The airport management hired star- ters at four locations, and these starters now call up taxicabs I from a waiting area as needed. To pay for the starters, the airport charges $3.00 per trip for each taxicab leaving the air- t, port. Still, the airport management reports difficulty control- ling the conduct of taxicabs at the airport. I Most persons contacted in Sacramento report satisfaction with the open entry action. City officials claim that they are freed from regulatory tasks that formerly occupied their time, although j COMPANY Yellow Cab dba Oak Park dba Union Sacramento TA xi dba Greyhound dba Village Courtesy Cab «.. _ _ ... - ------....,........• _.w._.�...,...-..._ _ .,:,:pax.; Number of Permits 1981 1982 1983* 95 80 82 20 23 20 8 7 7 Capitol City Co-op NF** NF 27 River City Jitney NF NF 10 Shamrock Taxi NF NF 5 Walt's Taxi NF NF q American Cab NF NF 2 All 1-Cab Fleets*** NF NF 11 r , TOTAL 123 110 168 FIGURE 6: Sacramento Taxicab Permits * 1983 data represents as of August NF means not yet formed represents the following companies: Camellia Cab, Deluxe, Golden Ex- press, Golden State, Jack's Hack, Karen's Independent, Malibu, People's, Sacramento Cab, Sacramento Metro, Town and Country SOURCE: City of Council Taxicab Analysis, April, 1983; City of Sacramento Department of, Finance j , �3 ti 2 . �i 1 1 I 1:/ I 4 I 1 1 1 �t 1 ��• «'""�— ^.1..w_.:wY. 'tar.rl c.�. udi,,...�w � . ... .. .... - ., - .- •. - . .-.....+...-... �-�-rw.,....,...-.,... ., ..l . _ �.,iu'r...�� Page 27. they report that they now spend more time administering the re- maining portions of the taxicab ordinance because of the larger number of taxicab operators. The owner --operators and Capitol City Co-op are pleased with the deregulation, although they ex- press concern about the future need to limit entry into the in- dustry and the high airport surcharge. Yellow Cab continues to oppose the open entry action. Page 28. 2.7 San Diego San Diego is one of the most celebrated cases of open entry. It is a significant case for two reasons. First, it has been extensively eveluated. In fact, San Diego and Seattly are the only two open entry cities for which data and available on the number of taxicab trips before and after open entry. Second, San Diego has slso reversed its open entry policy. The decision to open entry in San Diego stemmed from two events in the mid-1970s. Yellow Cab, the major company in San Diego at the time, was owned by the Westgate Company, a large conglomerate that went backrupt in 1976. The financial troubles of Westgate spilled over into its subsidiaries, including taxi- cab companies in San Diego, Los Angeles, San Francisco, and sev- oral other cities. These problems precipitated a strike by Yel- low Cab drivers in 1976. Concerned about the drop in available 0 taxicabs, the City Council issued emergency thirty -day certifi- cates to be distributed among existing multi -certificated holders. Striking drivers filed for the individual permits as part of their strike action, and for the first time, independent owner -operators r entered the market. During these years, however, the City main- .. rat twined its entry controls based on a ratio of taxicabs to popu- lation. i= - 7 In 1979, this regulatory environment changed when the City i, Council passed a new paratransit ordinance. This ordinance changed ` many aspects of taxicab regulation, including the removal of fare t, r.� r 9 r r i r r7 til Page 29. I controls and the licensing of jitneys. It also effected open entry by allowing a.pre-determined number of new taxicab per- 1 mite to be issued each month. This number was soon set at fif- teen. The ordinance also removed the public convenience and ne- cessity requirement, which had been administered by the Council, and replaced it with a permitting process administered by the City Manager. The most immediate impact of the open entry action was the subsequent increase in the number of taxicabs and independent owner -operators. The size and distribution of the San Diego 1 taxicab industry both before and after the open entry action are shown in Figure 7. Before open entry, the industry already had i 60 independent owner -operators, 7 small firms and one large fleet. { After open entry, the non -fleet number and the total number of - taxicabs both rose steadily. In July of 1983, there were 915 taxicab permits, an increase of 123.7% compared to the pre -open entry situation four and one-half years earlier. The number of� ') taxicab firms increased from 68 before open entry to 310 in July, I 1 . 1983. 1 i As shown in Figure 8, the increase in taxi permits was not f warranted by an increase in demand for taxicab service. In fact, demand decreased during this period. During the first year of open entry (the only year for which demand data are available), --�;� the number of taxi trips per week fell by 3.6$, and the average taxi trips per taxi decreased by 26.6%. Thus, more taxicabs were i Operator 1978 1979 1980 1981 1983 Yellow 280 280 281 281 281 Other Fleets (4 or more cabs) 50 91 165 238 158 Small Fleets (2-3 cabs) n.a. 21 63 96 n.a. Individuals n.a. 96 132 137 n.a. TOTAL 409 488 641 752 915 No. of Companies 68 116 175 202 310 FIGURE 7: San Diego Permits Source: DeLeuw, Cather and Company, (1982) and San Diego Para - transit Administrator, (1983). � l 1 Indicators 1979 1980 8 No. Of Taxis 488 641 31.3% Taxi trips/week 44,420 42,830 -3.6% Trips/taxi 4733 3474 -26.6% FIGURE .8: Taxi Productivity, San Diego Source: DeLeuw,' Cather and Company, 1982, Page 30. competing for a smaller aggregate market. The UMTA evaluation of the San Diego deregulation cites sev- eral other results. One is that vehicle age apparently increased after open entry, although data on vehicle age before deregulation are not available. Also, there has been little service innova- tion by taxicab operators since deregulation. Finally, the City's costs of administering the taxicab regulations have increased by , an estimated 158% from 1979 to 1981. One critical result of open entry has been problems at Lind- V • J bergh Field. Since the number of taxis operating out of the airport increased from 396 to 600 after open entry, the taxicab waiting lines at the airport also increased. Drivers' waiting time at the air pgrt similarly increased, and increased incidents of short -haul refusal problems and rice p gouging were reported through the end of 1981. , To combat these problems, the San Diego Unified Port Dis- trict, the agency that operates Lindbergh Field, took several ac- tions. First, in late 1979, the Port imposed a temporary mora- torium � on airport p permits. After determining that it could not legally limit the number of airport permits, the Port raised the permit fee to $200 per year. It also hired seven full-time star- ters and limited the fares that could be charged for taxicab trips -� leaving the airport. —= However, the prob lems lems did not disappear, and the City and the the Port took actions in May of 1983 to re -regulate taxicabs. 1I 5 1 , 1 !; t Page 31. The City imposed a one-year moratorium on the issuance of new taxicab permits and allows no transfers of permits except for death or hardship cases. in July, the Port held a lottery by which 450 of the taxis drew for rights to serve the airport for six months. This lottery will be repeated every six months. The Port also established an odd -even plan whereby half of these 450 airport taxis are allowed to wait at the airport on odd and even days. The Port allows no transfers of airport permits. Clearly, the San Diego experience with open entry is not finished. Since the beginning of 1982, the industry has changed in that more transfers of licenses have occurred and several jit- nay operations have been started. Both the City and the Port are still evaluating and experimenting. a - Page 32. 2.8 Seattle Taxicabs were first regulated in Seattle in 1930. Entry under the 1930 ordinance was controlled through a population ratio of one cab per 2500 residents, although the actual number of taxicabs in Seattle was more than this ratio would have al- lowed. There was no change in the taxicab regulation until 1977 when the City agreed with King County on a reciprocal arrangement whereby cabs licensed in either jurisdiction could be licensed by the other. During this period, not only did the City and the County license taxicabs, but also the Seattle -Tacoma Airport li- censed cabs. In 1971, the Airport signed a five-year contract with Airport Cab Company for exclusive service. Near the expir- ation of this contract, Airport Cab realized that the Airport was not going to sign another exclusive contract, and the Company ap- plied for County licenses for its taxicabs. These taxicabs then became eligible for City permits when the 1977 reciprocal agree- ment came into effect. Open entry in Seattle occurred in May, 1979. This action by the City Council followed the election of a reform -minded Council in the late 1970s. One objective of this new Council was to re- view the City's regulatory policies in all industries that the City in any way controlled. The City systematically examined existing regulations in such diverse industries as chimneysweeps and electric power. The taxi industry was also subjected to this regulatory review when the -industry requested a rate increase. The A I � 1 E or - Page 33. City adopted goals of removing regulatory barriers to competi- r tion, promoting innovative taxicab services, and encouraging multijurisdictional regulation. The City's open entry ordinance removed the ceiling on the number of taxi permits and on the number of permits allowed per operator. in so doing, the ordinance eleminated the taxi -to- ; i population ratio that had existed. The same ordinance also re- moved City control over fares and encouraged taxicab operators for shared -riding and weekends or to establish special fazes , evenings. This ordinance was passed over the protests of the i taxicab industry. 1 The immediate result of the open entry was a sharp increase �I in the number of taxicabs and taxi companies. Before open entry there were already 57 taxicab companies operating a total of 421 , cabs. of these, 295 were operated by three firms, each of which 1 operated as service firms with most of their vehicles owned by ; drivers. As shown in Figure 9, the number of taxicabs grew over 25% in the first two years after open entry. During this time of inde pendent owner -operators nearly doubled �I I period, the number from 126 to 230. The three largest firms decreased in aggregate size to 287 taxis. The number of taxi companies grew from 57 be fore open entry to 85 two years later. As happened in San Diego, the total demand for taxicab ser- vice declined while the industry was expanding. During the first i 1 rip data two years of open entry (the time period for which taxi t V -- ..._�--ram. . .• _ _ - - . 1'. � 1 1 f t p, 1 � 1.: i P4 Number of Permits Operator 1979 1980 1981 1983 Far West 113 n.a. n.a. 144 Yellow 104 n.a. n.a. 108 Greytop 78 n.a. n.a. 35 Others 126 197 207 230 TOTAL 421 519 527 517 No. of Companies 57 81 85 n.a. FIGURE 9: Distribution of Seattle Permits Source: Deleuw, Cather and Company, (1982) and Seattle Depart- ment of Licenses and Consumer Affairs, (1983). F.� r� Page 34.+ are available) the number of taxi trips per week decreased by 24.8% while the number of taxicabs increased from 421 to 527. As a result, the average number of trips per taxicab decreased by 48.4%. During this time period the percentage of the taxi trips that were airport -related increased from 7% to 16%. The UMTA evaluation of Seattle's deregulation reveals some insights into why the taxicab demand decreased. The average in- dustry fare for a five -mile taxi trip increased 72% from 1979 through April, 1982. About one out of four telephone requests for taxicab service were refused by the taxicab operators receiv- ing the calls. The average age of Seattle's taxicab vehicles in- creased 50%, from four years to six years, between 1979 and 1981. Little or no service innovations occurred, and most new taxicab -� operators congregated at the Airport. r; According to the UMTA evaluation, the open entry experience 1 has also increased the regulatory burden on the City and the Air- port. More vehicle inspections have been required (1454 in 1979; 1671 in 1980). Also, the Airport has had to install a closed- circuit television system and to increase enforcement of taxicabs at the Airport. For 1981, the Airport extimates that its enforce- ment costs were $71,542. In March, 1981, the Airport responded to problems of exhorbitant taxicab fares by imposing a ceiling on taxicab fares from the Airport. In addition, after trying to get the County to stop reciprocal licensing of City cabs, the Airport raised the Airport taxicab permit fee nearly 400%, from $100 per i t+ I Page 35. year to $90 per quarter. Currently, open entry is still in effect in Seattle. The demand for new taxicab permits has flattened during the past year, and the fares have remained relatively constant. The City reports receiving only a few complaints per month regarding taxicab ser- vice innovation. At least one of the major operators, however, reports a dif- ferent perspective on the open entry experience in Seattle. Far - West Taxicab Company confirms that taxicab vehicle age has in- creased and that there are increased incidents of rate gouging at the Airport. FarWest is supporting attempts in the state leg- islature to pass two bills that would specifically authorize lo- cal governments to regulate taxicabs and would provide State con- trol over key taxi regulatory matters. J. YJ Ifs Page 36. 2.9 Spokane Prior to 1980, Spokane was served by 100 taxicabs, of which 96 were owned by Yellow Cab. These 100 permits were controlled by a population ratio of one cab per 2000 residents. In the late 1970s, two events combined to lead the City to opt for open entry. One event was a Kansas City taxicab confer- ence held in 1980. Several public officials from Spokane atten- ded this conference and were impressed with the accounts of re- cent open entry actions in Seattle and San Diego. The second event was the petition in 1979 of a new company that wanted to enter the industry. The applicant promised to operate 45 taxi- cabs and claimed that he was going to improve the quality of taxicab service in Spokane. The Spokane City Council held several public hearings on a proposed new taxicab ordinance. Yellow Cab fought against the proposed ordinance by meeting with various Council persons and the City Attorney. The Company also contacted several other cit- ies that had open entry and were dissatisfied with it, and asked them to write to the council expressing their feelings. However, the Company soon found that they were fighting a losing battle, and fearing bad publicity, they did not openly protest at the public hearings. In 1980, the City passed the open entry ordinance. The new ordinance established minimal standards of service and stipulates that the permittee buys or leases a vehicle for each permit issued. It also requires that the permittee main- , y r, ICU Page 37. tain an office or authorize an agent to maintain an office in the City. A permittee must also have an easily obtained busi- ness liccnso and have his taximeters inspected. This new or- dinance also deregulated fares. The size and structure of the taxicab industry has changed since open entry. During fiscal year 1983 (ending in June, 1983), there were 92 permits in the City. When the permits were renewed for fiscal year 1984, only 80 were renewed. One reason for the decline in taxi permits is that the firm that had applied for new permits in 1979 recently went out of business after reaching a maximum of 12 cabs in operation. Of these, 57 are affiliated with Yellow Cab, and most of these are operated by owner -drivers. Yellow, which had exclusive rights at the airport before open en- try, no longer serves the airport but rather concentrates on pack- age delivery, telephone business, and providing dispatching to owner -drivers. The remaining 23 permits.are operated by inde- pendent owner -operators, who concentrate their services at the airport. The overall results of the open entry action are reported differently by City officials and Yellow Cab officials. The Spokane taxi regulators report general satisfaction with open entry. They report positive results, citing that one company no longer controls almost all the permits. They report having had enforcement problems with the company that recently went out of business, and they express confidence that future problems will 4 i 1 � f I lop- ' 1 1 Page 38. be minimal. Yellow Cab, however, reports a different picture. They claim that the quality of service has deteriorated, and they cite receiving a dozen complaints each week about taxicabs at the airport --complaints which are properly directed at other operators since Yellow no longer serves the airport. These com- plaints reportedly center on price gouging, unsafe vehicles, and - discourteous drivers. I ' 1 1 1 3.0 CONCLUSIONS The nine cases described in this Report provide valuable insights into the results of open entry policies. The cases come from across the country, and they represent a high propor- tion of the few cities that have changed to open entry. Thus, the cases presented hererin are presumably representative of open entry cases in the U.S. There is an obvious limitation to the analysis in this Report. Open entry creates many types of impacts that are ex- perienced by users, taxicab operators, public officials, airport mana;ers, and local business people. Moreover, these impacts change over time. To document the scope of these impacts and how they affect various segments of these communities would re- quire more time and resources than are available for this analy- sis. As a consequence, this analysis has focused on the impacts of open entry on the taxicab industry size and structure in each of the nine cities and on impacts that are documented in other studies. While this analysis may not include all impacts of open entry, it does lead to important insights into the results of open entry. The nine cases exhibit a number of common themes and facts, and these are presented in the remainder of this section. In presenting these conclusions, two principles are followed. First, the conclusions are based on documented facts from the cases. Second, the degree to which each conclusion applies to the nine cases is noted. The conclusions are presented in two ,1 a ., - ---t Page 40. categories: those that concern the process of opening entry, and those that relate to the results of open entry. 3.1 Establishing Open Entry 3.1.1 Extensive Competition Before Open Entry In all but two cities (Phoenix and Spokane), there was ex- tensive competition within the taxicab industry before open entry was enacted. San Diego, for example, had 68 taxicab com- panies, and Seattle had 57. While the term "opening entry" connotes the infusion of competition, these cases demonstrate that extensive competition already existed in seven out of the nine cities. 3.1.2 Circumstances The open entry cities exhibit similarities with respect both to their locations and the times when they enacted open entry. Many of the cities changed to open entry in 1979 or after. This time period coincided with the enactment of open entry in the air transport industry. Also, several of these cities are located in the west coast region of the country. This proximity effect is reinforced by the fact that in both Spokane and Fresno the local officials communicated with San Diego and Seattle about open entry in those cities before enacting open entry in spokane and Fresno. 3.1.3 Precipitating Events There are some similarities in how deregulation was decided upon in these nine cities. Except for Phoenix, where state action 'a Page 41. t. effected open entry, and Atlanta, where r open entry was the re- sponse to a civil rights issue, open entry was strongly to the occurrence of specific events. There is strikingrelated simi- larity in these events. In six of the cities open entry discussions were precipi- tated by events within the local taxicab industries. In Milwau- kee and Indianapolis, major taxicab ` companies wen t out of busi- ness, spurring local officials to consider open entry. In two cities (San Diego and Sacramento) strikes by the major fleets precipitated open entry. Requests for higher fares were the events that created open entry consideration in Fresno and Seat- tle. The association of these events with the open entry de- cision does not mean that these events caused open entry, but rather that the focused cused local attention on the taxicab indus- try' It is possible that open entry decisions would have been made --perhaps at a later date --in these cities had there been no precipitating events. Iwo It is noteworthy that the Boulder decision has not been an important precipitating event. In only Phoenix and Sacramento has the Boulder decision been cited as a factor that has affe )'ri �M how the cities have chosen to regulate taxicabs. cted 3.1.4 Studies } With a few exceptions,, the nine cities analyzed their taxi- cab situations and/or the impacts of open entry on their Industries. Surveys of other cities were conducted in Fresno, esno, 1 R' R1 . 1 j Page 42. Sacramento, and Phoenix. Milwaukee has conducted two studies, although both were after open entry. Seattle and San Diego both conducted analyses of their local industries, and Spokane sent local officials to a taxicab conference in Kansas City. Only Indianapolis did not conduct analyses of open entry or its local taxicab industry. It is significant, however, that all of these studies were conducted in-house using city staff. No evidence is available of a city hiring an outside objective analysis of taxicab service. 3.2 Open Entry Impacts 3.2.1 Increase in Industry Size The effects of open entry on industry size have been uneven. As shown in Figure 10, six of the cities have experienced ari in- crease in the numbers of taxicabs after open entry. However, cau- tion must be used in interpreting some of the numbers in Figure 10 because the time periods are not consistent from city to city. For example, Atlanta data are for an eighteen -year period, al- though the number of taxicabs has not changed appreciably since entry was closed. Also, the Fresno data cover a period during which entry was opened and then closed. A second phenomenon confounds the data in Figure 10. Stud- ies; of the taxicab industry show that there has been a nation- wide trend toward fewer taxicabs. There is evidence of this shrink- age effect in several of the cities examined in this study. That f. .- City Sacramento San Diego Seattle iIndianapolis Milwaukee I Fresno ' Spokane Atlanta Phoenix 11 FIGURE 10 Page 43. is, before open entry the numbers of taxicabs were frequently declining, and these trends have sometimes continued after open entry. Examples are Fresno, Indianapolis, and Spokane. In other cities, however, the opening of entry was accom- panied by dramatic increase in the number of taxicabs. Phoenix, Atlanta, Sacramento, San Diego and Seattle typify this result. Apparently, the taxicab business in these cities was viewed as a more lucrative business than in Indianapolis, Fresno, or Spokane. In Milwaukee the number of cabs increased somewhat even though the major fleet left the industry. These results mean that the impact of open entry on indus- try size is not predictable with certainty. Several other factors intervene, such as the previous size of the industry and the trends in the demand for taxicab rides. 3.2.2 Changes in Industry Structure The impacts of open entry on the structure of a local taxi- cab industry are highly consistent from city to city. In all the cities, the industry shifted markedly toward more independent owner -operators. This result is evident even though there was extensive competition within the industry in seven of the nine cities. For example, San Diego had 68 taxicab companies before open entry, 175 the year after open entry, and 294 two years later. Seattle changed from 57 taxicab companies to 85 within two years. Sacramento added 16 taxicab companies to its existing 3 companies. In Indianapolis the number of independents increased from 10 to • •• / J i n� Page 44. 85. The other case study cities exhibited similar increases in independent operators. 3.2.3 Airport Problems A common, although not universal, open entry result has been a large increase in problems at airports. The problems are con- sistent from city to city: over -charging, short -haul refusals, and driver behavior. These problems have been evident at airports at which the numbers of taxicabs have greatly increased. Examples are San Diego, Seattle, Sacramento, and Phoenix. These results lead to the conclusion that open entry without airport entry con- trols will result in problems, and that the extent of these prob- lems is relative to the amount of air passenger traffic at the ,Ion airport. To combat these problems, several airports have enacted their own controls over taxicabs. Taxicab fees were increased by the airports in San Diego, Seattle, and Sacramento, and starters were hired by San Diego and Sacramento. Seattle -Tacoma Airport even installed a closed-circuit television system to monitor taxicab operations. The San Diego Airport and the City of Phoenix both have enacted limits on the numbers of taxicabs that can pick up }passengers. j y� 3.2.3 Other Impacts ` {T: The other impacts of open entry are more difficult to docu- ment because they require extensive data before and after open Y Yi I . 6 Page 45. entry. Only Seattle and San Diego have been subjected to such a thorough analysis. Therefore, conclusion regarding other im- pacts can be based only on these two cities. There are three impacts that are of particular importance and which have been documented in both San Diego and Seattle. One is decreasing productivities resulting from lower taxicab demand combined with greater numbers of taxicabs. A second is higher costs of enforcement, although the data for both cities g 9 is sparse with respect to enforcement costs. A third is the in- cidence of taxicab service and fare innovations. Fare innova- tions are reported to be almost non-existent, and there have been few service innovations that have been instignated by the taxi- cab industries in these two cities since open entry. x r t I • I , 4y=". .'1.... -_ _. _ _ _��`MZ1$%*:+c . P: f '-� .c s a :'l4aGU(t at,.L, ; �•.c: • . ,. J' 1 1 - i _ A f 1 }3 • 7 P-. ;r' ... . - ... - . , .. .... � .....r4-.... ....ten=.. .... REFERENCES De Leuw, Cather and Company: Effects of Taxi Rqqulatory Revision in San Diego. Cambridge: Transportation Systems Center, 1992. De Leuw, Cather and Company. Effects of taxi R.SU__1at0rY Revisions in Seattle. Cambridge: Transportat on Systems Center, 982. Department of City Development. The Milwaukee Taxicab Regulation and Operation StudYs 1978-1980, M lwaukee, W scons n, 1982. Gilbert, Gorman, and Samuels, Robert E. The Taxicab: an Urban Transportation Survivor. Chapel Hill: The W—n vers try of — North Carolina Press, 1982. International Taxicab Association. Decontrol and Recontrol Atlan- ta's Experience with Taxi Regulation. Cambridge: Multisys tems, 1982. Knight, R. L. t May, D. F.; and Kuffman D.. Taxi Regulatory Re- vision in Oakland and Berkeley, California: Two Case Studies. Washington, DC: U.S. Department of Transportation, 1983. Tyler, Jean B.. Economic Consequences of Rate and EntrX Regula- tion in the Taxica Industry. Milwaukee; Legislative Refer- ence Bureau, 1980. INTERVIEWS Benesh, Bob. (Owner of Yellow Cab). Spokane, Washington, Inter- view, 8 August, 1983. Birch, Julia. (Program Analysis Administrator). Phoenix, Arizona. Interview, 4 August, 1983. Drack, Warren E. (Deputy Director of Airports). Sacramento, Cal- ifornia. Interview, 12 August, 1983. Holshouser, Jim. (General Manager of Yellow Cab). Phoenix, Ari- zona. Interview, 4 August, 1983. Katon, James. (Deputy City Manager). Fresno, California. Inter- view, 13 July, 1983. i INTERVIEWS CONT. Lamb, Harry. (Manager.of Far West Taxicab). Seattle, Washington Interview, 10 August, 3.983. Lupro, Barbara. (Paratransit Administrator). San Diego, Cali- fornia. Interview, 8 August, 1983. Medema, Michael. (Revenue Officer). Sacramento, California. Interview, 18 July, 1983. Mohammed, Abdul-Haadee. (Director of Bureau of Taxicabs and Vehi- cles for Hire). Atlanta, Georgia. Interview, 12 August, 1983. Sehm, W. G. (License and Permit Supervisor). Fresno, California. Interview, 13 July, 1983. Shener, Barry. (Visitor and Convention Bureau). Phoenix, Ari- zona. Interview, 22 August, 1983. Stround, Maxine. (Licensing Officer). Spokane, Washington. In- terview, 4 August, 1983. ■ i i FOOTNOTES 1. Gilbert and Sammuels, The Taxicab. 2. From UNC Research projects national survey of cities to deter- mine how many cities are considering changes in their taxicab or- dinarcab. 3. This section is based on Sacramento City reports and interviews with Mike Medema of the Revenue Department and several of the in- dependent owner/operators unless specifically noted. 4. Sacramento, California, City Ordinances, Chapter 42, 1983. 5. Department of Finance, Sacramento, California, "City Council Taxicab Analysis," April, 1983. 6. Interview with Warren E. Drack, Sacramento, California, 12 August, 1983. 7. Interview with several independent owner/operators, Sacramento, California, 18 July, 1983. 8. This section is based on the UMTA supported report by De Leuw, Cather and Company called -Taxi Regulatory Revisions in San Diego (1982) unless otherwise noted. 9. Interview with Barbara Lupro, San Diego, California, 8 August, 1983. 10. Ibid. 11. This section is based on the UMTA sponsored report by De Leuw, Cather and Company called Taxi Regulatory Revision in Seattle (1982) unless otherwise noted. 12. Interview with Harry Lamb, Seattle, Washington, 10 August, 1983. 13. This section is based on the UMTA supported report by Gorman Gilbert and Pat Gelb called the Indiano olis Ex erience with Open Entry in the Taxi Industry (1980 unless otherwise noted. 14. City Clerks Office, Indianapolis, Indiana, 1983. 15. Gilbert and Gleb, The Indianapolis Experience, p. 10. 16. This section is based on two reports by one -city of Milwaukee called Economic Consequences fo Rate and Entry Regulations in the Transit Industry and The Milwaukee Taxicab Reeulation and Operation tudy: 1978-1980, unless other -wise noted. 17. Licensing Bureau, Milwaukee, Wisconsin, 1983. 18. This section is based on interviews with Fresno City staff and City documents unless otherwise noted. 19. Interview with James Katon, Fresno, California, 12 July, 1983. 20. Interview with W. G. Sehm, Fresno, California, 12 July, 1983. 21. Interview with Maxine Stround- Spokane, Washington, 4 August, 1983. 22. Interview with Bob Benesh, Spokane, Washington, 8 August, 1983. 23. Interview with Maxine Stround. 24. Interview with Bob Benesh. 25. Ibid. 26. This section is based on an ITA sponsered report called De- control and Recontol: Atlanta's Experience with Taxi Regulation 1982) unless of erwise noted. 27. Interview with Abdul-Haadee Mohammed, Atlanta, Georgia, 12 August, 1983. 28. This section is based on interviews with Phoenix City staff and City documents unless otherwise noted. 29. Interview with Jim Holshouser, Phoenix, Arizona, 4 August, 1983. 30. Interview with Barry Shener, Phoenix, Arizona, 22 August, 1983. I ' J 1 1 i { � f iv I da A., not TVs I im •.A. "I. ... - - 7, VA .... : ....... veY tv .17Z Lag 1. J,A;v I "MO Taxi, Taxi!! A+ ,,-���•. �. 1lby They re arder to Find .%Sr As the ranks of cabs thin, giMy cities try to set a stance between too much eyulation and too little. ri'Ita streebhailed disappearing taxi is urban America, the victim of high ;7from ;!R;fuel prices, subsidized public transit N : and rising insurance, interest and v rfbh maintenance costs. The number of cabs nationwide has , been cut by a third since 1973, esti• mates industry analyst Gorman Gilbert 1� • of��hha .University of North Carolina. Enterprising taxi firms now earn dollars by jump•atarting cars, delivering packages. i 0�.'Itoday; only about 100,000 legitimate - " : cabs ply the streets, collecting roughly Lupro, head of the San Diego Para- mittee to recommend changes, but no 3.4 billion dollars in fares it year. transit Administration. "We give cou• steps have been taken. In most urban areas, high gasoline pons to our disabled citizens unable to At the other extreme, after taxis bills virtually prohibit •the practice of use the regular bus system. Before, were almost totally deregulated in San cnd ttg for a fare. 'The old concept of •'lA' Bailing is with minibus service, our costs per pas- . Under Diego, Phoenix, Atlanta and Seattle, a Land on the street pretty songer mile were $2.60. the city officials then received mounting "IP'. much dead in all but a few big cities," coupon method, they're $1,30." complaints about dirty cabs, surly driv- ..,;! says Alfred LGasse of the Internatfon• Houston Yellow Cab hauls 40,000 el- ers and suspiciously long routes be- -,z.; :nsldeab.Assoetation. Already, 90 per-_ derly and handicapped fares a month tween pickup and destination. ; • cent of taxis are summoned by phone. under an agreement with that city': Most localities are acutely sensitive Ms4iy'tsad fleets were shrunk after f .., tbeMdeM oil embargo of 1973, and transit authority, The 1,350-cab tom- pany also carries packages, hospital to complaints about taxi service, be• ; cause a cabbie is often the traveler's i ,soifbjid.have folded, including Boynton blood and lab samples, and will soon first and last impression of a city. San ,W of Milwaukee and the old Yellow use computers to dispatch its 2,000 Diego recently enacted a maximum dF •Philadelppltitl." Fifteen months drivers through in -car video monitors. fare and placed a moratorium on new `,,Cab' go;' ,Checker Motels of Kalamazoo, Diamond Cab of Alexandria, Va., pro• cab operators after tourists unfamiliar {�`•Mieh.; gqull rmakitig its famous but ' vldes Jump-start service from its taxis, with San Diego's open -pricing system gstptdky Checker nab in response to an . delivers packages and has special vans paid $10 merely to get into a taxi. ,unprofitable maiket. ;; .; ; ; ' ; �,: . tot the handicapped. Cab operators In cities with "open �: ;• 0It factor. While poor rtiirut$ement,` Despite such innovations, the busi. entry" complain of the ruinous price . . pvfdespread ownershlp of. :lutes' ati t• ':other nets remains tainted by a poor image. competition that often results. Says an. `.'. "When faetort all hurt the tod budneis;' Recurrent consumer complaints about alyst Gilbert: you have open -Alsing petroleum prices did the most ' rude drivers and dirty cabs plague the entry, you get an increase in over - damage. The average taxi handles 23 industry. Problems of overcharging charging and run-down vehicles." 'fares and coven 160 miles a day, but it were highlighted last year when a New No easy street. For cabdrivers, it is ususlly,s large sedan not blessed with York cabbie, who had no taxi-driver has been a rough road of late, A recent food gat mileage, , . license, was accused of charging three study found that 9 out of 10 Atlanta Thus, snbst Cabs are operated on thin Mexican tourists $267 to go from Ken- taxi drivers earned incomes below the •., , with'e�antes eating up more nedy International Airport to Manhat- poverty level. The hours are long and 95 tea 1 of every $1 in revenue. tan —normally an $18 ride. the work is tiring. "have you ever sat fit.• jy; Ron Stoppelmann of Sell Trans- How to regulate taxis to obtain good in a cab for 10 hours?" asks Sol Gold- "! ' which dispatches 270 cabs in service is a perplexing problem for stein, a New York cabbie. Increasingly, ew York City: "It has been a very ninny Mties. New'York has frozen the drivers are not employed by the com- t business over the last 10 years. numbrsr of legal taxis at 11,787 since panics whose coin they drive, but lease line hit us, and now insurance and 1941, and the hood -mounted medal. them by, the day or week and thereby ' terrest costs are really squeezing us.", •:.lions 'Itrday's desi#nating the right to operate forfeit most fringe benefits. cab operators llook for. ieitl" now sell for as much as $75,000. The Can money be made operating taxis? entse sources, the biggest of which' • artificially low supply has fostered a Outfits such as llousion's Yellow Cab to' be government-ntbsldized:. thriving industry of some 40,000 "gyp show that, given Imaginative manage- es for the hobdieppped and elderly. sy" cabs, mostly in boroughs outside ment and stable regulation, profits can •" Diego recently halted its munici- Manhattan, that Is neither legal nor be made. But for the most part, this y run transit service for the dis- regulated. The resulting mishmash of remains an Industry in need of a lift. 13 and turned instead to taxis. "Our illegal and legal operators spurred were out in half," reports Barbara Mayor Edward Koch to appoint a com- ov esnrjt imm com o U.S.NEWS & WORLD REPORT, Oct. 24, 1983 I le cuts for many work rar somega Alares of bancint some 9 advantiW*91 vA. ages' in the aggregate. s be0aus,* We weren't llon.,AOI I OrTuff Wilson P-1 Roporter Mr. and Mrs. Robert Wilson of t. Louis loved their recent vacation Senior housing He's a $1 irl $eattle — until they hailed "an indescribably dirty, battered cab with a matching driver." probed/D1 stock Win 17 They also complained that a second cab gouged them $10.50 for a L ridii from Pioneer Square to an art museum — a trip that would have been a $3 ride in New York City. .... "Your cab service. Holy Cow! d You should erect signs cautioning Partly cloudy unwary visitors of the potential High Mid-70S t tip they wrote to the Seattle att 13 Convention & Visitors Bureau. 0 Under Seattle's four -year -old ex- Details D2 V riment In taxi deregulation, shab. JIT15.6 r6day JUI t cabs and high prices are legal. But the road Is getting bumpier. The number of horror stories Is ns Hoi growing, . -As the Wilson% wrote, taxicabs In the Emer-eld Cit are "an obvious aagan wi. out -of -control problem," A City Council panel yesterday =sored a two-hour forum on what ouncilman Jack Richards, chair• man of the Public Safety and Health Committee, termed "a crossroads as to the future of taxicab regulation." tO make first 27 1 The council to warming up for re• regulation, or a crackdown, or possi• bly nothing at all. Several positions Cabbies are complaining, Tour- I Hello, Hollywood fists are complaining. No one at the forum was satisfied with the way things are. .. but anybody who cameex pect- ing solutions — perhaps like t e tourist who expects to pay the same price to get to and from the airport -would be sorely disappointed. , Several positions were staked out. 0 Regina Glenn, director of the city Department of Licenses and Consumer Affairs, asked for at (Past another year to fine tune ;,',e current Situation, • "I think the test has been made, and it's a disaster," said Councilman George Benson, advo- cating a return to controlled rates "limited numbers of cabs, -0 A two- to four-year freeze on thL. number of cab licenses was requested by Ross Lunbeck of the S" TAXI, Page A-7 -19aaeson Step,] I r From page A•1 1137•member Taxi Association of Se- attle and King County, which is pushing for re -regulation. He added: "Here's what 1 see on the streets: high rates, low rites. ripoff rates, extra charges; 204 cabs at the airport and a market demand for only 30 to 75. -It's a powderkeg situation. There's vandalism, slashed tires. screwdrivers sticking out of oil filters, paint scraping of cabs this last weekend; long watts for trips, four hours, six hours, eight hours, ten hours. "This situation could blow up at any time and it's all due to deregula• `lion and basically overgaturation." on the other hand, King County Executive Randy Revelle, who auth- 'ored the city "reforms" in 1979. has jpot budged from his position. Like Glenn, Revelle advocates using a 'pwalpel rather than a sledgehammer .on the problem. aVt lo/ Pam!! ssyy + OOPPW r. AM9 t , +oi tp� No XM PUV � Pal�dxa�� >f�PZp*UAMeqmm oaf ti}Aog : Al wdu"so isotulc $lsp o3 8u1111M a taut Moery tt uo trtd of StngZittttt 1A anblttqpai a43 to staistatu atu a �� UJ � 8ttj1� itistu 4 It ePa11ir �"=�fPeP •,tQoRt'oatnttttto Aai � opttscxio tnirn3noans a pu ut �f,V . uo fltitputtj 'st�3itrM alnos O3U� `JUl(ttSS11 jdOjiOif /ItS ,ram tt'•;qtis t, pull uotluallg OPPAT(.roM PONOM SJO(Ituaw 0390duaa.1!) Sjoqsjo 1 a tY1 Suaouedugalf") S76'I�IOJ,ICI.11-�I £98L 30NIS 1S3MH1f30N 3Hl 30 3010X"3H1 Revelle this week released a draft county ordinance that would clamp down in some areas — requiring tests of cabbie knowledge on local geography and strengthen- ing rules for revoking licenses, among other minor changes — while retaining free competition in rates and number of cabs. A recently completed federal study with data through 1981 sug- gests deregulation has worked, Re• velle wrote Monday. Response time has been lowered, more taxis provide more service, and new operators can enter the field, he said. Also, Revelle said complaints and accidents relating to cab safety have not increased, and taxi passengers "gave overwhelm- ingly positive ratings to the overall quality of Seattle taxi service." Ed Wood, author of the federally financed report, said problems such as too many cabs and too many old i' ;1 w 1 r � taxis can be fixed by updating, the new rules. 1 1 Assistant city attorney Rodney I Eng warned against reiminsing the 1 medallion system, in whict��t taAt is licenses are limited and rate.Q�P- i the City Council. He said ft�. ..y would surely be sued and there's�•a significant possibility" of losmi! in ; court on antitrust grounds unless fine-tuning is tned first, and falls. Bob Bushman of the Seattle ; Convention & Visitors' Bureau re- peated the Wdsons' opinion that the , Seattle taxi situation is "out. of control" And he said it could cost millions of dollars in lost bu s it ; conventioneers leave Seattle taxi's trep:imarks across UM lets. "= +i Richards said he will submit a list of issues to Glenn and then try to ; shift the committee review out of first gear and into action later this . yea r. �.. .�. �...�..... ... r. •�.. ...•......• ._...� - ... ..... ..... �.�• •.ter. I s i r, � 1)D-Xv •� di. CITY OF ATLANTA ' ANDREW YOUNG 1100 SOUTH OMNI INTERNAL IUNAL MAYOR* ATLANTA, GEORGIA 30336 413t38.33ti0 04 • DEPARTMENT OF LAW MARVAJONESBROOKS City Attorney ISABEL GATES WEBSTER December 18, 1984 First Assistant City Attorney Mr. Jim Brennan Hedland, Fleischer & Friedman 1016 West 6th Avenue, Suite 400 Anchorage, Alaska 99501 Dear Mr. Brennan: As you requested, enclosed are copies of the materials I distributed at the Annual Meeting of the National Institute of Municipal Law Officers relating to considerations in draft- ing a municipal taxicab scheme, an article in "The Municipal Attorney" about Atlanta's litigation of the limit imposed on the number of taxicabs operating here, and newspsper articles about my testimony before a City of Houston Council Committee which was considering taxicab deregulation. The problems we have had as a result of not limiting the number of taxicabs until recently have included unsafe and unclean cabs, drivers who are rude, who overcharge passengers and who take circuitous routes, and difficulty in enforcement, among others. Please let me know if I can provide further information. NMR/sw Enc. Very truly yours, Nina M. Radakovich Associate City Attorney mv-ia riiwti M'J.1�e+��t�d2 .;.�ji'i tZ:'�i,.*i. i•a-yrrrw,Nr yF �'�j�1('r t� �N Lli� i�- � lj4'' •1 J� •"� IN THIS ISSUE: o ANTITRUST —TAXICAB LIMITATIONS A § 1983-AVAILABILITY OF STATE REMEDY • TORT IMMUNITY —DEFINING INSPECTION • IDB RESTRICTIONS —THE DEFICIT REDUCTION ACT OF 1984 O SPOT ZONING —ENVIRONMENTAL CHALLENGE O RENT CONTROL -LIMITING CONVERSIONS O FIREFIGHTERS —LIMITING ROLE OF VOLUNTEERS • TORT LIABILITY LIMITATION PROPOSAL REGISTRATION AND INVITED SPEAKERS 49M ANNUAL NIMLO CONFERENCE FORT WORTH, TEXAS OCTOBER 28-31, 1984 September, -October 1984 Volume 25 Number 5 i -Ji i . � 1 y � 71 Y ra4wsi�.rrn,r,,_r ..,al�i�_•iY:- - .1 NIMLO PRESIDENT BENJAMIN L. BROWN City Solielter Baltimore, Maryland FIRST VICE, PRESIDENT J. LAMAR SHELLEY City Attorney Mau, Arizona SECOND VICE PRESIDENT JOHN W. WITT City All,—r San Dkgo, Gilfanis THIRD VICE PRESIDENT ROGER P. CUTLER City Attorney $dt Lab city, Utah TREASURER ROY D. RATES City Attorney Columbia, South Csroum GENERAL COUNSEL CHARLES S, RHYNE Wahinsion, D.C. TRUSTEES: HENRY W. UNDERHILL. JR. City Attorney Charlotte, North Carolina ' I OBORG13 AGNOST City Attorney San Francisco, Caufornis ROBERT 1, ALETON City Attorney Minneapolis, Minnesota MARK ARONCHICK City Solicitor Phltsalphis, Pennsylvanis JAMES K. BAKER City Attorney BUminsham, Alsbsnts MARVA JONES BROOKS City Attorney Atisnts, Georgia i DOUGLAS N. JEWETT City Attorney Senile, Wsehington JAMES P. MCGUIRE Corporation Counsel iscum, Massachu"lu s ANALESLIE MUNCY i City Attorney Dallis, Tessa CLIFFORD D. PIERCE. JR, City Attorney Memphis, Tennessee WILLIAM it. TAURE Corporation Counsel Kankakee, IBinais W►LLtAM 1. 'THORNTON. JR, City Attaney Dutbam, North Carolina tWtbrsal Gtetlt!rtte e><Natnlelpai IwwOHkere, The Municipal Attorney Volume 28 Number 5 September -October 1984 Contents ATLANTA TAXICNi• FlIS'SZE 1xj-,.S N(Yr VIOLAT'F; 811F;RMAN AfVIintlST ACI' by Marva Jones Brooks, City Attorney; and Nina M. Radkovich, Asnociate City Attorney, Atlanta, Georgia..................................................1 SPRIF-DALE, ARKANSAS AVOICH §1983 TAKING CLAIM BASED ON AVAILABLFF, STATE RUIRDY by David S. Herdlinger, City Attorney; and Thurston A. Thompson, Daputy City Attorney, Springdale, Arkansas.....3 KANSAS DRFINFS "INSPHCUON" WITHIN THE CONTEXT OF TORT IMMUNITY by Richard E. Jones, Acting City Attorney; and Alisa M.'Dobson, Law Clerk, 'Topeka, Kansas...............5 COWRE;SS ADOP'I:S I131 RF.W114IC."I'IONSI 'I11F. TAX-F.XFMIyr BOND PROVISIONS OF THE DEFICIT RF;DIJ(TION ACT OF 1984 by Kurt P. Froehlich; Evans & Froehlich, Champaign, Illinoit3; Municipal Attorneys for 13ontivilto and Hahomet, SE;ATI'LE; RE;7,ONE VC1k F.f,WLY HOUSING UPHELD X;AINST SIM zoNi ; CHALmmp. by Lbuglas N. Jewett, City Attorney; and Gordon F. Crandall, Diroctor, Land Use Division, Seattle, Washir><1ton.....................................lU SANTA MONICA'S 1'R1aSEkVI►rIoN OF )2F;WrAL HOUSING PREVENI S CC)NDOM I N I l Jr1 CONVFRS ION by Robort M. Myers, City Attorney; and Karl M. Manheim, Ibputy City Attorrwty, Santa Monica, California..........12 AUXANfIRIA, VIRGINIA DEFENDS AIx1INISTRA'I'IVF RFJGULATI()N PLACING CONDITIONS ON ROLE; OF V()LUNrElm FIREFIGHTERS by Cyril U. Calley, City Attorney, Alexandria, Virginia................................................13 UNIFORM LAW VCR THE RIZI)LATICIN OF T(7RT CI AIMS AGAINST PUBLIC BODIES by Leonard A. Mentzer; 1982-83 Chairman; NIMLO Committee on Tort Liability; Chief, Tort Division, New York, Nmi York ............................15 1000 CONNECTICUT AVENUE.. N.W. SUITE 800 WASHINGTON, D.C. 20036 Editor. Charles S. Rhyne Associate rditor. Joan Lewis llayaSil Atlanta Taxicab Freeze Does Not Violate Sherman Antitrust Act by Marva Jones Brooks, City Attorney; and Nina M. Radalcovlc:ls, Associate City Attorney, Atlanta, Georgia An ordinance limiting the number of taxicabs which may operate within the City of Atlanta and imposing a one-year resi-, dency requirement on taxicab drivers has boon upheld in federal district court, despite Sherman Antitrust Act and First and Fourteenth Amendment challengeo. Air- "�ort Taxicab Advisory Committee, et al. v. Cit 0lanta1 of al. tI D.Gr. , N.G. Ca. No. C8-1083A, August 10, 1983, re- maining claims disposed of March 30, 1984). The decisions permitted substantial now regulation of the taxi industry in Atlanta. CPNC Reatuiroment Instituted In February 1981, the Atlanta City Council. enacted a comprehensive taxicab regulatory ordinance which included a freeze on the number of cabs operating within the City and the imposition of a new one-year residency requirement for taxicab drivers. That ordinance was the culmination of a series of public hearings on many complaints concerning Atlanta's taxicabs. Some of the problems associated with cabs have involved the condition of the vehicles, the inability of some drivers to speak English and their lacY. of famil- iarity with routes and destinations, and overcharges. Members of the City Council felt that these problems were caused by an excess of taxicabs. Approximately 1500 taxicabs were operating at the time and the council acted to freeze the number in order eventu- ally to sauce, tnrougn attrition, the number of cabs on the street. The council found that such a reduction would result in an improvement of the quality of ser- vice provided. The froeze was implemented by the issuance of certificates of public neces- sity and convenience (CPNC's) to owners of all taxicabs already operating. The CPNC, although being subject to certain conditions, including revocation, was pat- terned after the medallion system used in New York City. It was intended that pos- session of this somewhat exclusive license, especially after the number of taxicabs was reduced, would instill pride in the owner and eventually lead to improvements in the appearance of cabs and in the attitude of drivers. Approximately 70% to 80% of Atlanta's taxicabs are owner -operated. SEPTEMBER-OCTOBER 1984 These independent operators had been very vocal at the public hearings. Ordinance Challenged By Drivers In June 1981, a group of taxicab drivers challenged in district court sev- eral of the new provisions of the ordinance. The drivers alleged that the freeze consti- tutes a burden upon interstate commerce and that the one-year residency require- mont violates their constitutionally pro- tected right to travel. They also alleged that the ordinance: treats driver permit holders differently from driver permit applicants in violation of the Fourteenth Amendment rights to freedom of association. The City of Atlanta moved for summary judgment on all issues. The City argued that the transportation service provided by taxis within the City ie. not part of intorstato commereo and that, even if it were, the ordinance imposing the freeze did not unduly burden that commerce. The City further argued that the one-year residency requirement was ration- ally related to the object of the ordinance and the interests it sought to protect. These arguments were accepted by the court in its August 10, 1983 decision. Taxi Service Not ,Interstate Commerce The court, in determining that Atlanta's local taxicab operation between the Atlanta International Airport and the City did not constitute a part of interstate commerce, relied upon United States v. Yellow Cab Co., 332 U.S. 218, 67 S.Ct. 1560 (1947), and Evanston Cab Co. v. Ciitt of Chicago, 325 F'.-d-9T7-'7"tFi Ur. 199 , -both oi' which held that the interstate aspects of taxi- cab transportation were incidential to its local character. The court then discussed other cases where transportation had been found to be an integral part of interstate commerce, including Charter limousine v. Dade C--oun��t Board of City Co mmissioners, ss oners, 67T77!2�6 B5t C r. 1982 (Unit 0), and Southerland v. St. Croix Taxicab Ass n, 3155 F.22c� (3dUr. 199 T e -court found that the fact that the transportation involved in the earlier castes had been prearranged distinguished those situations from Atlanta's. The court also found that the 1 y Atlanta ordinance provisions prohibiting taxicabs from refusing fares and the lack of any joint rate packages that include taxicab services within a travel package were significant differences from other cases. No Imnroner aon2kqa Threat The court went further to hold that even if taxicab activity was assumed to be part of interstate commerce, such commerce is affected only incidentally, and the or- dinance's benefits outweigh its burdens. The plaintiffs had alleged that the freeze would decrease competition within the in- dustry to the benefit of large companies. In response, the court stated that the problems addressed by the ordinance could very well justify a restraint on competi- tion. The permissible objectives of the freeze, to improve the quality of service provided to the public and to increase the profitability for the drivers, were found to justify the ordinance as a valid exer- cise of the City's police power. Tho'court found the possibility of the creation of a monopoly by the ordinance unlikely, be- cause of a provision requiring reconsider- ation every throe years of the maximum number of taxicabs to be operated. Although this antitrust issue was not discussed within the framework of the Ci1r Of Lafayette, TA. , v. Louisiana Power a and Communit Communications Co. v. City. Of Sou er Co orri�o`; "�SU.s: T0, 1b2 S.Ct. 835 ecisions, the court did rely uron the City's "specific authority", con- tained in the City's Charter, from the State "to regulate and license vehicles for hire in the city; (and) to limit the number of such vehicles." The plaintiffs did not rairo, and the court did not discuss whether the charter provision satisfied the "clear arti- culation and affirmative expression" of state policy re;uiroraont set out in the Supreme Court cases. The court did, how- ever, cite and distinguish on its facts Woolen v. Surtran Taxicab.,s...� Inc., 461 F. Supp. 1025 N. D, Tex, y78 which con- tains an extensive discussion of the Lafayette case, Residency Requiremont for Drivers Plaintiffs also asserted that a pro- f, vision requiring new taxicab drivers to live in the six -county Atlanta metropolitan area one year immediately preceding appli- cation for a permit violated the constitu- tional right to travel recognized in Shapiro v. Thompson, 394 U.S. 618, 89 S.Ct. 1322 (1969), becaut- no fundamental right was involved, the rational banin tent was applied. The court accopted the City's argument that the residency requirement was dosignud to provide drivers the oppnr- tunity to become familiar with the Cit.y streets and learn English, if necessary, and to allow time for a national criminal record check and establish a local driving record. Remarking that although the res- idency requirement might not have boon the bent way to achieve the objectives of effi- cient taxicab service and public safety, the court concluded that the requirement wets not irrational. Equal Protection and Freedom of Association On March 30, 1984, the court ruled in the City's favor on all remaining claims. The plaintiffs had alleged that taxicab driver permit applicantu with criminal convictions were, treated differently from Permit holders with convictions as to the effect these convictions would have on denial or revocation of the permits. The court rejected this argument, finding that the ordinance does not violate the equal protection clause becwise it provides discretion to deny Permits and discretion to revoke permits. The court also ruled that provisions of the ordinance requiring all taxicab drivers to be affiliated with companies, and that all companies operate with a minimum of twenty-five taxicabs, serve legitimate governmental interests because they facilitate the City's regulation of the taxicab industry. Therefore these provisions do not violate any freedom of association rights guaranteed by the First Amendment. Conclusion This decision, although not explicitly interpreting the antitrust "clear articu- lation and affirmative expression" require- ment, appears to support a municipality's authority to limit the number of taxicabs in its jurisdiction, when there exists charter authority to impose such a limit. The decision is also helpful in that it upholds a residency requirement in the area of police power licenning. The decision has also reduced somewhat the complaints of taxicab drivers, who are a significant political force in Atlanta and appear regularly at City Council committee meetings to protest the ordinance. TNF.I4UNICIPAL ATTORNEY AILAs '0 n r LiJ,t! • ,t �'�*WE WERE AASH04clW.UZ t� panA. • r �•,�:. �� 'ii�°amJ,I ♦Q• ..T•f 'r i � �.1 il� , ���W V►�b p t,4J''•��t4/•��' • .. .•, i• .., ': air � L ty Ci council.• :: :,;.• ;;:',, .,.::;..; tY •hears.';: <;•.,.: Atlantan warhing • ;'��:.::.$,; ' t BY AIARN CAIIRL°AU I'OIA Reporter The di r An Atlanta city attorney who slxrcl.allacs in COIT1�41 s { �. �• Ay taxicab regulation warned in a hearing btonday •, ^ utRht that a proposal to deregulate the cab bust. Our • s: ••:;r. 4 ness in Houston could backfire, maki,rv;co Business :•' • ^t : • worse, not better. • ' g te •'Frankly all I is brt Can Y you just don't know major `• �'1f''' Sow bad it could got here," warned Nina Rada• : ; in travel C f 'kovlch, an associate ciW•attorney for tbr, city of r %' today bt 'Atlanta, who testtfird. bnfot•P a ilouston y o ';�. traveler. t� •t tr•+ Council r,r:•,.: is4ue, comm'tteo.-Studying "tva VC r� Star. ,rCommtttee chairman' Georrrit ge (3roanlas has ,•. aryZ2, we: P pase4 inajorpecha8gcr.ln Houston cab regula• aII-t1Cw, mt lion that ould o n.ttte market by removing the ' • restrictions on the number of eabs'•ailowed to Portable sea. '-Operate and end'the practice of setting cab faces. fu114�It inch f r•., 1. taut Rachtkovich, who lir:19d1 drafted a majoe"; y:•. l w .. `'�• , change in Atlanta's cab regulation. wrirned Designed to ! I tom% l,againat new laws that were sb lenient they Of OUS Sj)CCit1 q ;+,y; !.;. • + flooded the streets with more taxis ttwlli !4 datt support, than the city .• . COritOUfCd SC t'"•.4 . ::f She was asked to tmilly here � n G,t:•t . ;, relax in cas 1�:,•d;,.a.�, + Taxicab Committee by the Houston yt ♦ an assoslation of major fort..,YOU get i h: I s^. r.:: t t r .4COmpanies led by XCHO:7 Cab Co, -that o pows t; t: i:t;t;x j:demgulatfon. Officially, Radakoyieh was invite room. I.Ots 0i 1;., .rbY Clay Counetiman f3en Reyes to testily. More space al m S' :Yellow Cab president Joseph Chernow has 'dt :.• �iSICS wil; rol, f.13red to pay flier travel e,vienses f sev -deed dolfara, but Radakovichh saidth , alhun* not . Cabin more bau na r:•� .influenced her testimony.. you'll get almo. to Ise 1s ).U. ; After deregulation in the mtd-loeoa, the num• ititcreontiticnt; a.+ - •..,;I fiber of cabs in Atlanta, a city of 426 :. . r ,lion, soared to 1,5W, j1ust 300 rower than in Hot s. The dif{CYCI1 .ton, which has four times as many people. With the growing number of cabs came an Fewer Seats ,Increase iri complaints from riders, she said. more'personal .n:t ,•,tie: �. j There iverc wore plaints that the cabs were ,d.. ,day, that drivencom' were rude or cot ldn•t speak tt'ith Champag �Engglbh, that they didn't know the city or took. CtlIrCC3. Plus e a,.,,;r;;;, ;,• :,the longest ro::ta to increase the charges, &heCXV said. iry�•!r:;Jn ' Finall attempted oop= pQ it Csperation AUanta's y to 1XI to ImposeAla. I new logo Dtu. r•r:,r *LtOrts that blocked any new operators ,.; .total number nr ..,ti., r,.n . „� ore until the : r. torus, sv6oe the �a.,a...g{es held R buildup in;,,. �. .awn .. � � � ". 0iiiCial 5a yS u �'d:tl ssimilar �o n7arlc��, _ Mans here, has ' glut taXleab re o� market concept of areal they All went to where !t was . , • gulatlorr atmlJar to one be. easiest to wa! From tng proposed in Houston created more his• Hadakolvich said. problems than !t solved a member of elder) the Atlanta clay attorneys staff told a - closet he he sate, when the ctty tried to latsel committee hearing here.on the ra•• market at ]taws cabs, it met patre With resistance and lawsuits, one of ' Did ordinance. D Which was recently settled !n At1anW'a ' not r Nina ttadakolatck a s • favor. �poo DeclaUst In , • le M ��tonday�night andliquor1 after�aAtlapW • "it OR ordinance like the one pre. klc► op� Its Wzl.market to the mid, Dosed for Houston) does more than e H rab6os, "the market baa declined, ro oppecu th�00�; fYs Wkfngg the doors off suiting in a glut of caia," • ��whin Ms. Radn thp akolvich hav< I. The cityy, she said, blarned the glut • yg t thou e number rk b fags Ae' ' • reh: for compiatnts ranggitng from dirtq n. I hard to the .cafe vehicles to drFvers who spoke no Houston s ropasal; drawn lion ,'1tg1lsb And were uatam Councilman up b Dart .cl , I !liar with the' eUminnte the rge Greanlas. would AU We extra iaadld not ut the . Dlicant for a,Wquirement that an ap. ads tervloe to We iprewioual D there fs a public convenlerPermit xe t show . a cvs �' Yi unsery �•••cessfty" Jor tt•---.•.... and ne. I, �irY„•� V.....1....... ,They). • �/�s�� .. /• � p� / , still no CONSIDERATIONS IN DRAFTING A MUNICIPAL TAXICAB REGULATORY SCHEME National Institute of Municipal Law Officers Fort Worth, Texas October 28-31, 1984 0 j Presented by: t Nina M. Radakovich Associate City Attorney Suite 1100 South Omni International t: Atlanta, Georgia 30335 j� 404-658-1150 ' I _ t t . w • r S 'r • r~ y CONSIDERATIONS IN DRAFTING A MUNICIPAL, TAXICAB REGULATORY SCHEME The Atlanta ordinance governing taxicabs was completely redrafted in February of 1981 and amended several times thereafter. A class action was brought in 1981 challenging the ordinance on various Constitutional grounds. That case was finally decided in the City's favor this past March. A copy of Atlanta's ordinance is attached for reference. Atlanta's experience suggests ggests that evalua- tion of the following factors might be helpful to other cities which wish to revamp taxicab legislation. I. Legal considerations A. Is the proposed regulation within the police power? Authority to regulate must be, and usually is, granted by the State. B. Constitutional prerequisites. 1. Qualifications for taxicab driver permits; Right to travel. One-year residency requirement j for drivers, designed as a means to insure passengers' safety by allowing city time to check applicants' criminal records, and designed to provide drivers the opportunity to become familiar with City streets and to learn English if they did not have sufficient conversational skills to communicate with the public, had a rational basis. Airport Taxi Cab Advisor Committee v. City of Atlanta, 584 F. Supp. 961 N. D. Ga. 1983). r 2. Denial and Revocation of permits; Equal Protection and Due Process. a. Applicants and permit holders must be treated equally vis-a-vis criminal convictions. Be- cause the Atlanta ordinance gave its Mayor dis- cretion in both denying and revoking permits for criminal convictions, it was held not viola- tive of the Equal Protection clause. Miller v. Carter, 547 F. 2d 1314 (7th Cir. 1977); Airport Tax Cab Advisory Committee v. City of Atlanta, supra. r b. A person subject to denial or revocation of a permit must be given notice and a hearing. Freitag v. Carter, 489 F. 2d 1377 (7th Cir. 1973). 3. Mandated driver affiliation with a company, twenty- five cab minimum for companies, uniform vehicle color within a company; Freedom of Association. These requirements were found valid because they facilitate enforcement of the Atlanta ordinance. Airport Taxi Cab Advisory Committee v. City of Atlanta, supra. C. Antitrust factor; limiting the number of taxicabs based on public necessity and convenience. 1. Prearranged local transportation service can be a part of interstate commerce. Charter Limousine v. Dade Countz Board of City Commissioners, 678 F. 2d U673th C r. 982 (Unit B ; Sout er and v. St. Croix Taxicab Ass'n 315 F. 2d 364 3d C r. 1963); Park N Fly of Texas, Inc. v. City of Houston, 327 F. .D. Tex. 1971)woolen v. SuFtran Taxicab.jt Inc., 461 F. Supp. 1025 N. D. Texas, 978 ; United States v. Capital Transit Co., 325 U.S.357 2. Where taxicab service is not prearranged, and an(1949). ordinance prohibits drivers from refusing fares, the service is not within interstate commerce. Airport Taxi Cab Advisory Committee v. City of Atlanta, supra. (.also held that even it service was w t n nstate commerce, the ordinance affects inter- state commerce only incidentally and that its bene- fits outweigh its burdens). Evanston Cab Co. v. City of Chicago, 325 F. 2d 907 (7th C r. 1963). United States v. Yellow Cab Co. 332 U.S. 218, 67 S. Ct. 1560 91 L. Ed. 2010 (1947). D. Exclusive ground transportation contracts at airport i and railroad terminals. 1. Exclusive agreements upheld. Padgett v. Louisville and Jefferson County Air Board, 2 F. 2d 1258 (6th C r. 197 ; Black & White Tax - cab v. Brown & Yellow Taxicab, 276 U. S. 518 1928); Donovan v. Pennsylvania Co., 199 U.S. 279 (1905); Delaware Lackawanna and Western v. Town of Morristown, et al., 276 U. S. 182 (1928); Raleigh -Durham Airport AutForTty v. Stewart, 278 N. C. 227, 179 S. E. 2d 424 (1971); Capitol Taxicab Co. v. Cermak, 60 F. 2d f 608 (N. D. Ill. 1932); Henke v. Yellow Cab Co., 319 F. Supp. 356 (N. D. Ga. 970 All American Cab Co. v. Metropolitan Knoxville Airport Authority, 547 F. Supp. 509 (E. D. Tenn. 1982); aff'd, 723 F. 2d 908. 0 i 2. Exclusive agreements criticized. Charle 's Taxi Radio Dispatch Corporation v. SIDA of Hawaii, 562 F. Supp. 712 (19 3); Woolen v. Surtran Taxicabs Inc., 461 F. Supp. 1025 (N. D. Tex.1978); Park N F y of Texas, Inc. v. City of Houston, 327 F. Supp. 910 S. D. Tex. 97 ; Southerland v. St. Croix Taxicab Association, 315 F. 2d 36 3d C r. 1963); Toye Brothers Yellow Cab Comeany v. Irby, 305 F. Supp. 91 E. D. La. 1969), off'd 437 F. 2d 806 (5th Cir. 1971). E. Ease of enforcement. II. Factual Considerations Any taxicab ordinance must be individually tailored to the following circumstances. A. Number of companies and drivers operating. B. Proportion of independant owner -operators. C. Amount of taxicab business in the city. D. Types of taxicab business and the proportion of each type. 1. Conventions and tourists 2. Local residents 3. To and from airports (a separate set of regula- tions governing taxicabs at airports is often necessary) 4. Within neighborhoods III. Political Considerations A. Factions within the taxicab industry. 1. Drivers 2. Companies 3. Vehicle owners or investors B. Competitive forms of transportation, including limousines, vans, shuttle services and buses. C. Business community/Chamber of Commerce. D. The Public. , C C C 14.129 CHAPTER 8 Vehicles for Hire Licensing and Regulation ARTICLE A In General Section 14-8001 DeAnitions, Section 144= Severability. ARTICLE 8 Regulations Section 1441008 Regulation of vehicles for hire. Section 144M Number of CPNC's. Section 144M Regulation of driven of vehicles for hire. Section 144=6 Regulation of vehicle for hire companies. Section 14-SM Revocation and suspension of CPNC's; grounds; notice; hearing; emergency situations. Section 14.8008 Revocation or suspension of driver's per. mits; grounds; Mks; hearing; emergency situations. Section 144 009 Revoestloe or suspeneion of company pK• mile; grounds: notice; hearing; emergency situations. Section 14.8010 Information to be displayed Section 14.8011 Interior requirements of vehicles for hire. Section 14-8012 Vehicles for hire; prohibitions. Section 14.8013 Inspection of vehicles for hire. Section 14.8014 Transfer, limitations on transfers and transfer procedures. Section 14.8016 Color scheme of taxicabs. Section 14.8016 Use of open stands. Section 14.8017 Driven to maintain current map of Mst• ropolitan Atlanta Area, Section 14.8018 bliscsllsneous regulations and penalties. Section 14.8019 Sehsdulo of fses. Section 14-MO Scheduls of fares. Section 144021 Penalty. Section 144M Hearing officers. Section 144W23 Power of mayor to suspend and revoite Section 144M permits and CPNC's and impose civil Am, Final determination. Section 14.8026 Functions. Section 14-MU Final determination. Section 144M Administrative nature of hearings. Section 144M Adoption of rules and regulations. Section 144020 Operations office to be maintained In the city. Section 14.8030 reserved. Section 14-8031 Unlawful seta. Section 14-8032 through section 1"110 reserved. i { 14.8001 ARTICLE C Intraurban Sum Section 14.8111 Definitions. Section 14.9112 Compliance with article. Section 14.8113 Operator's permit. Section 14.8114 Lists of drivers to be filed by operator. Section 1"116 Insurance required of operators; amount, conditions. Section 14.8116 Authority of mayor and board of alder• men to alter permits, licenses, certifiesles. routes, operation. Section 14.8117 Substitution buses. Section 14.8118 Receiving and discharging passengers. Section 14.8119 Articles left in buses. custody, disposition. Section 14.8120 Construction, repair, sanitation, lnspee. tion of vehicles. Section 14.8121 Riding on outside prohibited. Section 14.8122 Operators subject to tame regulations of interurban carriers. Section 14.8123 Exemption of school buses from taxation Section 14.8124 Interference with operation. Section 14.8125 Refusal to pay fare. Section 14.8126 through section 14.8160 reserved. ARTICLE D Sightseeing Service Section 14.8161 Definitions, Section 14.8162 Permit to operate; required. Section 14.8163 Ssmo; requirements for issuance, etc. Section 14.8164 Same, transfer. Section 14.8163 Same; suspension or revocation. Section 14.8186 Unlawful acts. Section 14.8167 through section 14.8100 reserved. ARTICLE E Limousine Service Section 14-8191 through section 144218 reserved. ARTICLE A In General Ldltosiat Note Ord. No. i081.7, adopted 2 VSI, aPProvod V3131. tepsalad part 14, chapter 8, articles A and B. sections 14.8001-14.8110, eticept for sections 14.8076 and 14.8077, and Inserfad now sactions, 14• 800I-14.8019, off thout, however, designating the article Was and which sections were to be contained therein. The article titlse and the deciefon rsgardirng W sections Supp. No. 24, 3.84 op— 14.8001 Atlanta City Code contained therein are, therefore, those of the editor. Further, the editor has omitted new section 14.8010. which proAdod for severabWty of the provisions of only the ordinance. i.e., uncles A and B. and hat retained adatisg session 14.800% which provided for the sown• bWty of the man ahoptor. '1U necessitated the rsoumberiog of am seodons 14.8002•-144018 as 14- a00a--14.1019. Sections 14-WO and 14.8077 be" boss reaumba*d as 1448020 and 14-MI. Formerly. aKlclsa A and 8 stew dedvod boss Ott Na 1078.78.11/24/78, as assooded by Ord. Nos, I070.30, 8/18M. 1070.63, 7MM9. 1080.41, bfl/80, and as oedisaaa appta'ed 0/21M. Subsequently, Ord, No. 1081.26, adopted 4/01. approved 4/7/81, added sections 14.8020-14- 8028, whieb, because of go ronuabering of the saulad• or of the articlo. bow been rodadgastod sections 1449072-14.802L eeetion 14•SMI DoWt;ons. (a) Bureau: The bureau of taxicabs and vehi- cles for hire. W) Business license The license required of any business operating within the city by article A of chapter b of part 14 of the Code of Ordinances of the city. (c) Certificate of public necessity and convenience: A license, also hereinafter referred to as "CPNC," permitting a person. individual or company to operate one (1) vehicle for hire upon the streets of the city. (d) Commissioner. The eommUdoner of public safety or his designs*. (e) Company: Any person, association, corpora- tion or other organization which operates or In- tends to engage in the business of operating vehi• eles for hire as defined herein. M Company permit: The application for license to engage in the business of operating vehicles for hire. (g) Company lot: The lot maintained by a com- pany for the purpose of parking its vehicles and for other functions in the operation of the vehicle for hire business. and subject to approval by the bureau of traffic and transportation. (h) Contract limousine service: Shall mean the rendering of limousine service by a limousine or extended limousine on a contract basis for any period in excess of 12 hours for any calendar month on hire to any one (1) customer, regardless of whether corresponding fares or fees are collected 8upp. No. 24,344 14.130 by the limousine service from the other party or parties contracting or from the passengers of the limousine service. (i) Director. The director of the bureau of taxi• cabs and vehicles for hire. () Driver. An individual permitted to drive a vehicle for hire. W Extended limousine: Shall mean a sedan type motor vehicle capable of normally transporting no fewer than nine (9) persons, including the driver. a) Fees Nonrefundable payments required heroin. (m) Highways: Any of the public street@, road&, boulevards, avenues, drives or alloys of the city. (n) Limousine: Shall mean any motor vehicle that meets the manufacturer's specifications for luxury.limousine with a designed seating capac• C I 14.131 Licensing and Regulation ity for no more than nine (9) passengers with a minimum of five (5) seats located behind the op• erator of the vehicle, and which does not have a door at the rear of the vehicle designed to allow passenger entry or exit; further, no vehicle shall be permitted to be operated both as a taxicab and a limousine. (Ord. No. 1983.89, See. 1, 11/14/83, as amended by Ord. No.1983.84, See. 1. 12/22/83) (a) Limousine service: Shall mean the service regularly rendered to the public by furnishing transportation for hire, not over fixed routes. by means of limousines or extended limousines op. enated by chauffeurs, on the basis of telephone contract, written contract or tothm prearrangement with holder of the certiiloate of public convenience and necessity. (p) Narcotic drugs, barbituric ac:d derivatives and central nervous system stimulants: The term "narcotic drugs" as used in this chapter shall mean coca leaves, opium, cannabis, marijuana, isonipeeaiae and every synthetic substance known to have narcotic action. The term "barbituric acid derivative" means each of the salts and deriva. tives of barbituric acid, also known as malonyl urea, and derivatives, compounds, mixtures or preparations thereof. "Barbiturate" or "barbitu. rates" shall include all hypnotic or somnifacient drugs. whether or not' derivatives of barbituric acids. The term "central nervous system stimu- lants" means amphetamine and desocysphedrins. and any derivative. compounds, mixture or prep. aration thereof. (t) Open stands: Any location on the streets of this city that shall be used by any taxicab on a nonexclusive, first•come.firstserve basis and not by private vehicles or other public conveyances. (r) Psrmir The written authority granted to persons who qualify to drive vehicles for hire. (a) Taxicab: A motor vehicle used as a public conveyance, subject to the rules and regulations of this chapter. (t) Taximeter An instrument or device attached to a vehicle and designed to measure mechani. ashy or electronically the distance traveled by such vehicle, to rscoud the times said vehicle trav- els or is in waiting, and to indicate the fare to be charged. (Ord. No.198349, See. 2.11/14/83) (u) Use of narcotic drugsr The word "use" as employed in this chapter in relation, to the drugs 14-8002 described herein shall apply to any person who uses one (1) or more of the narcotic drugs or bar- bituric acid derivatives or central nervous stimu. lants as defined in this section to any extent, with or without medical need or authority or prescription. (v) Van: Shall mean any vehicle other than a sedan type vehicle with a designed seating capac• ity of not less than seven (7) and not more than 15 passengers. (w) Vehicle for hire: Any motor vehicle, animal• drawn vehicle or other vehicle designed or used for the transportation of passengers for hire, the charges for the use of which are determined by agreement, mileage or by the length of time for which the vehicle is engaged. Excluded herefrom are intraurban buses, regulated elsewhere in this chapter, and vehicles regulated by the State of Georgia Public Service Commission. (Ord. No. 1981.7. Sec. 1, 2/3/81, as amended by Ord. No. 1982.51. Sec. 1, 7/14/82) Amendment Notet Ord. No. 1982•51. section 1, adopted 7/6/82, approved 7/14/82, deleted former section 14.8001 and enacted a now section 14.8001 in lieu thereof. Section 1 of Ord. No.198349, adopted 11/t/83, approved 11/14/83, revised the definition of "limousine" in subsection (nh and section 2 revised the definition of"tatdntster" in subsection (t). Section 1 of Ord. No. 1983.84. adopted 12119/83, approved 12/2V$3, further revised subsection W. Section 14.8002 Severability. The sections, paragraphs. sentences, clauses and phrases of this chapter are severable; and if any phrase, clause, sen- tence. paragraph or section of this chapter shall be declared unconstitutional or unrea- sonable and thus void by the valid judgment or decree of any court of competent jurisdic. tion, that unconstitutionality or declaration of unreasonableness shall not affect any of the remaining phrases. clauses, sentences, paragraphs or sections of this chapter, since they would have been enacted without the unconstitutional or unreasonable phrase. clause, sentence, paragraph or section. bupp. No. 23,12.83 ,c 14-8003 ARTICLE B Atlanta City Code Regulations Section 14.8003 Regulation of ve. hicles for hire. (a) The following classifications of vehicles for hire are hereby established; (1) Taxicabs; (2) Animal -drawn vehicles; (3) Limousines; (4) Extended limousines; and (b) Vans. (Ord. No.198251, Sec. 2, 7/14i82) (b) No vehicle for hire shall be operated on the highways of the city until its owner or lessee has obtained for such vehicle a valid certificate of public necessity and convenience. (Ord No.1983.69, Sec. 3.11/14/83) (c) In order to secure a CPNC, an applicant must provide information showing its qualifica. tions on a form provided by the bureau. The ap- plicant must: (1) Be at least 18 years of age; (2) Be a citizen of the United States or an alien admitted for permanent residence of who has oth. erwise been granted employment authorization by the United States Immigration and Natural- ization Service; (3) Be a resident, for at least one (1) year im- mediately preceding the date of application, of either Fulton, DeXalb, Cobb, Gwinnett, Clayton or Douglas County; (4) Not have been convicted of any felony if such violation or violations are related to the op• eration of a motor vehicle or with operation of a vehicle for hire, and not have been convicted of any ordinance of the City of Atlanta governing the conduct of CPNC holders; provided, however, that all such persons shall be entitled to the full benefits of the First Offender Act of the State of Georgia (Ga. Laws 1968, p. 324, et seq. as amend- ed), and be considered as provided in section 144= of the Code of Ordinances of the City of Atlanta. (Ord. No. 1981-22, See. 1, 4/14/81, as amended by Ord No. 1983.69, Sec. 4,11/14/83) (d) Should the applicant for a CPNC be a corporation or partnership, then the chief executive officer of the corporation. or, if a Sup, No.'13.14.88 14.132 partnership, the partner with the greatest proprietary interest, shall possess all of the requirements set out in (c) above. (e) In order to maintain a CPNC. any person or entity must: (1) Obtain and maintain automobile liability insurance or horse-drawn vehicle insurance in the following amounts per vehicle for hire: a. $10,000 per person per injury; b. $20,000 per occurrence; c. $5,000 property damage; and d. $5,000 no-fault coverage; and provide current certificates of insurance evidencing such coverage, the name of the insurance company supplying the coverage and the policy number. For the purpose of proof of insurance, the CPNC holder shall have affixed a decal obtained monthly from the bureau to the vehicle for hire. (Ord. No. 198349, Sec. 5,11/14/83) (2) Maintain residency in one of the coun- ties set out in (c)(3) above. (3) Within 10 days of any of the following, the holder shall so notify the bureau in writing: a. Change in the chief executive officer. if a corporation; b. Change in the holder of 60 percent or more of the proprietary interest, if a partner- ship, corporation. firm or association. Said notification shall set out the names of the persons involved in the change. (4) Each CPNC holder of the taxicab classification shall be affiliated with a company, except when the CPNC holder Is a company. The CPNC holder shall notify the bureau of any change in the holder's compa- ny affiliation within three (3) days of any such change on a forest to be provided by the bureau. (Ord. No. 1981.18, Sec. 6, 3/16/81) (f) In the event that a vehicle for which a CPNC has been issued is replaced by another vehicle, no new CPNC application shall be required; provided, however, the vehicle iden- tification information set forth in (b) of this section shall, within five (6) days of said replacement, be submitted to the bureau. (Ord. No. 1981-7, Sec. 1, 2/3/81) IN K 14.133 Licensing and Regulation (g) Any person or entity holding a limousine company permit pursuant to this chapter may obtain temporary CPNC's valid for a seven-day period for additional vehicles which satisfy the inspection and insurance standards contained in this chapter by submitting, at least 14 days prior to the effective date of such temporary CPNC's, an application containing identification informa- tion and proof of insurance for such additional vehicles, along with a fee of $150 for each tempo- rary CPNC. No limousine company shall be is. sued more than 100 temporary CPNC's within any seven-day period. (Ord. No. 1983.69, Sec. 4. IV14/83) (h) The driver driving a vehicle for hire for which a CPNC has been issued shall constitute an agent of the CPNC holder for the purpose of serving citations on the CPNC holder for failing to comply with this chapter. (Ord No. 1983.69, Sec. 4,11/14/83) Aneadmout Note Ord. No. 1981.22. adopted 4/8/81. returned to cloth without action by the mayor. approved per charter section 2.403, added the language following "admitted for permanent residents" to subsection (c)(2). Ord. No. 1981.18. adopted 3/8/81, approved 3/16/81, added the second sentence to subsection NO). Ord. No.1982.61. section 21 adopted 7/0182. approved 7114/82. added items (3) through (5) to subsection (a). Section 3 of Ord. No. 1983-69, adopted MIMS. approved II/14/83, amended subsection (b); action 4 added subsections W4). (g) and (hY, and section 6 added "or herso*awn vehicle insurance" to subsection (e)(1). Section 14-8004 Number of CPNC's. (a) Within a period of 90 days after the bureau of vehicles for hire is established and its director appointed, each owner or lessee of a taxicab currently authorized under the present ordinances of the City of Atlanta must apply for and obtain a CPNC for the vehicle or vehicles such applicant owns or leases, provided that each such applicant meets the criteria of section 14.8002 above. No other applications shall be accepted during said 90-day period (Ord No.1981.18, Sec. 1. 3/16181, as amended by Ord No. 1983.69. Sec. 6,11/14/83) (b) At the expiration of the 90-day period set out in (a) above, no new CPNC's for taxicabs will be issued to applicants until such time as the number of outstanding valid 14.8005 CPNC's is less than 1,200. Once the number of outstanding valid CPNC's reaches 1,200, no more shall be issued. (c) The maximum number of CPNC's which may be issued for all classifications of vehicles for hire shall be considered not less than every five (5) years at a public hearing of the public safety and legal administration committee of the city coun. cil. Criteria such as population, hotel capacity and the availability of other means of public trans• portation shall be considered. (Ord. No. 1983.69, Sec. 7, 11/14/83) (d) In the event the company shall remove a limousine or extended limousine from service, the company shall file with the commissioner of pub• lic safety or his designee notice of the removal from service. In the event the company shall add limousines or extended limousines to their lim• ousine service in addition to those identified in the original application. the company shall file written notice thereof with the commissioner of public safety or his designee identifying the lim. ousine or extended limousine, and shall establish that the additional limousines meet the require• meats of section 14.8013. (Ord. No. 1981.7. Sec. 1, 2/3/81, as amended by Ord. No. 1982.51, Secs. 3, 4, 7/14/82; Ord. No.1983.69, Sec. 7,11/14/63) Amendment Note: Ord No. 1981.18. adopted 3/6/81, ap, proved 3118/81, deleted the phrase "the ordinance becomes law" In section 14.5004(a) and inserted In lieu thereof "the bureau of vehicles for hire is established and Its director ap• pointed." Ord. No. 1982.51. sections 3 and 4, adopted 7/6/82. approved 7n4/82, added subsections (d) and (a). Section 6 of Ord No.1983-69, adopted 11/f/83, approved I IM/83, amended subsection (a) by changing "vehicle for hire" to "taxicab". and section 7 amended subsection (c) by calling for a five-year consideration rather than a threaym reconsideration as well as repealing subsection M. redesignatlag subsection (a) as (41 Section 14.8005 Regulation of driv- ers of vehicles for hire. (a) The following classifications of drivers of vehicles for hire are hereby established: (1) Taxicab drivers; (2) Animal -drawn vehicle drivers; (3) Limousine drivers; (4) Extended limousine drivers; and (5) Van drivers. 8upp. No. 23.12.83 ML 11 1H 14.8005 Atlanta City Code (b) All drivers of vehicles for hire shall obtain a permit before driving a vehicle for hire upon the highways of the city. W In order to secure a driver permit, an appli• cant inust provide the following information on a form provided by the bureau. The applicant must: (1) Be at least 18 years of age; (2) Possess a valid Georgia driver's license which must have been held for a minimum period of one (1) year prior to application, and said license must not be limited as defined In section 88B.311. Ga. Code Ann.; (3) Be a citizen of the United States or an alien admitted for permanent residence or who has otherwise been granted employment authorization by the United States Immi- gration and Naturalization Service; (4) Be a resident, for at least one (1) year Immediately preceding the date of applica- tion, of either Fulton, DeKalb, Cobb. Gwin- nett, Clayton or Douglas County; (5) Exhibit a proficiency with the English language to as to be able to comprehend and Interpret traffic signs, issue written receipts to passengers and obey lawful orders of polies and others to lawful authority; (6) Pass an examination by a more of at least 70 percent. Said examination shall be administered by the bureau at regular inter. •/als and shall consist of no more than 50 written questions designed to smortain that the applicant is sufficiently famillar with the laws, ordinances and r*gulations governing vehicles for hire and with streets, Institutions and landmarks located in the Atlanta Metro. politan Area; the examination shall be based upon information contained In a manual for operation of vehicles for hire, available from the bureau; said examination may be Admin- Istered orally; any applicant who fails said examination three (3) times may not take it again for a period of 30 days; (7) Be fingerprinted by the department of public safety and supply to the bureau two (2) current photographs, size two and one-half (214) inches by two and three -fourths (2s/. ) Inches, accurately depicting the applicant's face and shoulders; (8) Submit written statements from a CPNC holder and a company, on forms to be 88po, No. 23. sm 14•I34 provided by the bureau, showing that the applicant will be affiliated as a driver with that holder and that company upon issuance of the permit; (9) Not have been convicted, been on probation, parole, or served time on a sentence for a period of five (5) years previous to the date of applica• tion, for the violation of any of the following Brim- inal oRenses of the State of Georgia or any other state or of the United States: criminal homicide, rape, aggravated battery, mayhem, burglary, ag• gravated assault, kidnapping, robbery, driving a motor vehicle while under the influence of intoxi. cating beverages or drugs, child molestation, trim• inal solicitation to commit any of the above, trim• inal attempt to commit any of the above, any felony in the commission of which a motor vehicle was used, perjury or false swearing in making any statement under oath in connection with the application for a driver's permit, any law involy. ing violence or theft, or possession, sale or distri• bution of narcotic drugs, barbituric acid deriva- tives and/or central nervous systerr3 stimulants; provided, however, that all applicants shall be entitled to the full benefits of the First Offender Act of the State of Georgia (Ga. Laws 1968, p. 324 et seq., as amended), and be considered as pro• vided in section 14.8002 of the Code of Ordinances of the City of Atlanta. (Ord. No. 1983.83, Sec. 1, 12/21/83) (10) Not have been convicted for a period of two (2) years prior to the date of application, of the violation of two (2) or more ordinances of the City of Atlanta governing the conduct of driver; of vehicles for hire. (Ord. No. 1981.18, Secs. 2. 7. 3/16/81; Ord. No. 1981.22, Sec. 2. 4/14/81; Ord. No. 1983.69, Sec. 8,11/14/83) (d) In order to maintain a permit to drive a vehicle for hire, a driver must: (1) Maintain daily trip sheets, which shall be; retained by the driver for a period of 90 days, subject to the inspection of the commis- sioner. As used herein, the term "trip sheet" shall mean a daily log of all passengers, the time, place of entry, and the destination of each passenger, the amount charged, and an Itemization of any personal property left in the vehicle for hire. Trip sheets must be kept in the vehicle for the 48 hours immediately follow. 1 II) 14.135 Licensing and Regulation ing the date that blase trips oo=. (Ord. No.1983-69, Sec. 9,11/14/83) (2) Wear proper dress while operating a vehicle for hire. As used herein, the term "proper dreu" shall mean shoes, pants to ankle length or skirt or dress and shirt or blouse with sleeves and collar. If a hat is worn. it shall be baseball -style cap or chauffeur's cap. Clothing shall not be visibly soiled. (3) Deleted by Ord. No.1983$9. 8ec.10,11/14183. (4) Not smoke or play a radio or tape player if objected to by a passenger. (5) Driven must provide the bureau with no. tiee of any change of address within five (5) days of such change. (Ord. No.1983-69. See. 10, 11/14183) (s) All driven of vehicles for hire holding current permits from the City of Atlanta are hereby permitted to continue to operate until expiration of said permits. Thereafter, each driver must obtain a new permit issued pursuant to this section. Each such applicant must meet the criteria set forth in subsection (a) of this section; provided, however, all driven who hold valid permits on February 3. 1981, shall not be subject to the examina• tion requirements set forth in (c)(8) of this section. The permit so issued shall be valid until the driver's next birthday, and the fee shalt be prorated, said proration to be equal to that portion of the year that falls between the time of issuance of the now permit and the driver's birthday. This permit shall be the initial permit. In case of loss of a driver permit, a duplicate permit may be obtained after payment of $10 by the driver and after submission of a statement getting forth the circumstances of said loss. (Ord. No. 1983-69, Sec. 11, 11/14/83) i U) After the initial issuance of a permit, the i permit shall be renewed by the driver during the month of the driver's birthday upon the providing of proof that the driver continues to possess the requirements necessary to obtain and maintain a permit as set forth above, Applicants for renewal of driver's permits shall be exempt from the examination re- quirement set forth in section 14.800b(c)(8). (Ord. No, 1981.7, Sec, 1, 2/3/81) 1(g) Any driver who intends to change his or J her company or CPNC affiliations must 14.8006 present his or her driver's permit to the bureau so that said permit may be replaced with a substitute permit reflecting such change in affiliation. Under no circumstances shall the driver drive for the CPNC holder or company with which he or she intends to affiliate before obtaining a substitute permit from the bureau. A fee of 816 shall be imposed upon the driver for each of such transfer, which must be approved by the bureau. (Ord. No. 1981.18, Sec. S. 3/16/81, as amended by Ord. No. 1983.60, Sec. 12, 11/14/83) (h) Any person holding a currently valid lint• ousine driver's permit pursuant to the laws of any other jurisdiction may apply for and obtain a temporary driver's permit to be valid for seven (7) consecutive days in the City of Atlanta after pre• sentation of the foreign permit and other infor• mation on a form to be provided by the bureau, provided that such permit shall be applied for 14 days prior to the effective date of the permit. The fee for each such temporary driver's permit shall be $50. Temporary limousine driver permit hold• en shall be subject to all of the regulations gov erning drivers in articles A and B except those concerning residency, affiliation with costysanies, and annual permits. (Ord. No. 198349, Sec. 12, 11114/83) Amendment Notes Subsection (c)(3) was amended in Its entirety by section 2 of Ord. No. 1981.22. adopted 4/6/81, returned to clerk without action by the mayor, approved per section 2.403 of the charter, to add the material following "lawfully admitted for permanent residence." Subsection (c)(8) was amended in its entirety by section 7 of Ord. No. 1901.18. adopted 316181, approved 3/16/81. Subsection (c)(9) was amended by Ord. No. 1981.18 to add "or possession" in relation to narcotic drug, etc. Subsection (g) wait added by section 8 Of Ord. No. 1981.18. Ord, No. 1982.51. section b, adopted 7/6/81, approved 7/14/82, added Items (3) through (b) to sub. section (a). Before its amendment by section 8 of Ord.:4o. 1983,69. adopted 11/7/63, approved 11/14/83. subsection ic) read "In order to secure a permit, as applicant must:"; section 9 added the last sentence to subsection (dx1Y, sectson 10 de• fisted subsection (dx3) and amended subsection (dxs). which formerly read "Maintain residency in one of the counties set out in (ex4) above"; section I1 added the last sentence to subsection (*% and section 12 added the last sentence to sub. tection (g) and all of subsection (h). Ord. No. 1083.83. section 1, adoptad 12/19/83, approved 12121/83, amended subsection (e09) to include reference to section 14.8002 of this code. Supp. No. 23.12.83 r 14-8006 Atlanta City Code Section 14.8006 Regulation of vehicle for hire companies. (a)'No company as defined herein shall operate without a company permit. and no company per. mit shall be granted to a company owning or leasing less 'than 26 taxicabs. and no company permit shall be granted to a company owning or leasing fewer than five (5) limousines or five (6) extended limousines, or fewer than five (b) of a combination of limousines and extended limou• sines which are available for contract limousine service; provided, however, any company in oper• ation on February 3.1981. shall not be subject to the 26-taxicab requirement, nor shall any com- pany in operation or any company which has a pending application for a company permit on the date of passage of this subsection be subject to the minimum five -vehicle requirement for limousines and extended limousines or the minimum five - vehicle requirement for a combination of limou• sines and extended limousines. An application shall be submitted on forms furnished by the bu- reau containing appropriate information which is reasonably related to the business of operating taxicabs and limousines. (Ord. No. 1982.51. Sec. 6. 7/14/82) (b) As used In this section, the term company applicant shall mean the following: (1) If a corporation, the chief executive officer; (2) If a partnership, the partner with the greatest proprietary Interest; (3) If an individual, that Individual; (4) If a firm or association, the person with the greatest proprietary interest. (c) In order to secure a company permit, the company applicant must provide information show- ing its qualifications on a form provided by the bureau. The applicant must: (1) Be at least eighteen (18) years of age; (2) Be a citizen of the United States or an alien admitted for permanent residence or who has otherwise been granted employment authorization by the United States Immi- gration and Naturalization Service; (3) Be a resident, for at least one (1) year immediately preceding the date of applica- tion, of either Fulton, DeKalb. Cobb, Gwin- 8upp. No. 23,1"3 I - '-- -il 14.136 nett, Clayton or Douglas County. (Ord. No. 1981.22, Sec. 3, 4/14/81, as amended by Ord. No. 1983.69, Sec. 13, 11/14/83) (d) In order to maintain a company permit, the company must: (1) Hold a current valid City of Atlanta busi• ness license; (2) Maintain an office within the City of At. lanta staffed by company agents or employees for an eight -hour period between the hours of 7:00 a.m. and 7:00 p.m., Monday through Friday, five (5) days per week, where records required by this chapter are kept and where vehicles may be inspected; (3) Submit to the bureau a copy of a current lease, if applicable, for the company promises, or an affidavit as to ownership and occupancy; (4) Maintain a publicly listed telephone number; (5) Maintain the name and home address of each driver affiliated with the company, along with the name of the CPNC holder who owns or leases the vehicle operated by the driver; (6) Maintain a log listing the year, make, model vehicle identification number (serial number) and CPNC number of each vehicle for hire operating in the company fleet; (7) Maintain sutl'iciont employees or answering devices at the office to answer its telephone after hours of company operation; (8) Provide each driver with a copy of the bu- reau's manual for operation of vehicles for hire; (9) Maintain at least one (1) off-street parking lot capable of accommodating its vehicles for hire when not in use; (10) Taxicab companies must maintain at least 26 vehicles for hire under their company name for which CPNC's have been issued, or the num• ber of vehicles operated by the company as of February 3, 1981, if less than 25; '(11) Have knowledge that all vehicles for hire operating for the company have the insurance coverage required in section 14.80 &KI) and have knowledge that such vehicles are in compliance with the standards concerning inspection set out in section 14.8013. (Ord. No. 1983.69, Sec. 14, 11/14/83) (e) Any change of company location must com- ply with the requirements of section 14.8006(d). The company shall provide notice in writing to I ) 7 1 14.137 Licensing and Regulation the bureau, including the names of the persons involved, when applicable, within five (b) work• ing days of any of the following: (1) Change in the chief executive officer, if a corporation; (2) Change in the holder of 50 percent or more of the proprietary interest, if a partnership, cor- poration, firm or association; (3) Change in company phone number; (4) Change of company name; (8) Change of company location. (Orel. No.198U9, Sm. 13,1 U14/83) (A All companies holding current permits from the City of Atlanta for operation of fleets of vehicles for hire are hereby permitted to continue to operate until expiration of said permits. Thereafter, each company must obtain the company permit issued pursuant to this section. Each such applicant must meet the criteria set forth in subsections (a), (b) and (a) of this section, except with regard to the minimum number of vehicles for hire. The company permit so issued shall be valid for one (1) year. This company permit shall be the initial company permit. (g) After its initial Issuance, a company permit shall be renewed during the mouth of the anniversary of the Issuance of the initial company permit, upon the company's provid- ing proof that it continues to possess the requirements necessary to obtain and maintain such company permit. (Ord. No. 1981.7, Sec. 1, V3/81) Amesdmest Notes Section 3 of Ord No. 1981.22. adopted 4/e/81. n urnsd without action by *a mayor, approved per section 2.403 of the charter. amended subesetion (o)(2) to add the material following "admitted for permanent reatdence." Ord. No.198241. section 6, adopted 7/8/82, approved 7/14182, deleted former subsection (a) and enacted a now subsection (a) in lieu thereof, Sections 13, 14 and 15 of Ord. No. t SM. adopted 11R/83, approved 11/14/83, amended subsections W. (d) and (a in their entirety. Section 144M Revocation and suspen• sion of CPNC's; grounds; notice; hearing; emergency situations. (a) Upon a finding of due cause, as hereinafter defined, the mayor or his designee shall have the authority to revoke or suspend any CPNC which 14.8007 has been issued or which may hereafter be issued by the city. (b) "Due cause" for the revocation or suspen. sion of a CPNC shall include but shall not be limited to the following: (1) The failure of the CPNC holder to maintain any and all of the general qualifications applica. ble to the initial issuance of the CPNC as set forth in section 14.8003(c), (d) and (e) above; (2) Obtain a CPNC by providing false informa• tion; (3) Violation of any part of this chapter; (4) If the holder of the CPNC has knowledge or should have had knowledge of the violation of a driver who is affiliated with the CPNC holder of any of the following offenses: a. Driving under the influence of intoxicating beverages or drugs; b. Criminal homicide, rape, aggravated battery, mayhem, burglary, aggravated assault, kidnap• ping, robbery, child molestation, criminal solici• tation to commit any of the above, criminal at. tempt to commit any of the above, or possession, sale or distribution of narcotic drugs, barbituric acid derivatives and/or central nervous system stimulants, if such violation or violations are re- lated to the operation of a vehicle for hire; or violation of any ordinances of the City of Atlanta governing the conduct of drivers of vehicles for hire; provided that any convictions shall be con- sidered as provided in section 14-6002 of this code. (Ord. No. 1981.18, Sec. 3, 3/16/81) (5) Failure to operate the vehicle for which the CPNC has been issued as a vehicle for hire for any given three-year period. (c) No CPNC which has been issued or which may hereafter be issued by the city shall be re- voked or suspended except upon a finding of due cause as defined in subsection (b) above, and after a hearing and upon a prior five-day written no. tice to the CPNC holder, stating the place, date, time and purpose of such hearing and setting forth the charge or charges upon which said hear- ing shall be held. The hearing shall be held within 15 days of the date the notice is issued. (d) A panel of duly appointed hearing officers shall conduct the hearings herein and report its conclusions and recommendations to the mayor or his designee. The mayor or his designee, upon Supp. No. 23. 12.83 14.8007 Atlanta City Code receiving same, may revoke or suspend any CPNC. In lieu of suspension or revocation hereunder, the mayor or his designee may impose a fine upon any CPNC holder, said fine not to exceed $500 for each violation. The maximum period of suspen- sion of a CPNC shall be 12 months. (e) After revocation of a CPNC pursuant to sub- section (bX2) of this section, no application for a CPNC shall be accepted or considered for a period of 36 months from the date of revocation. 0) For due cause, In the event of a violation of this chapter which results in an emergency situa- tion in which continued operation by the CPNC holder endangers the health, welfare or safety of the public, the mayor or his designee may sus- pend any CPNC hereunder, any such suspension may be made effective immediately and shall re- main in force until a hearing is held by a panel of hearing officers. (Ord. No. 1981.7, Sec. 1, 213/81, as amended by Ord. No.1983-69, Sea 10,11/14183; Ord. No. 1983.83, See. 2, 12/2V83) Amendment Notes Section 3 of Ord. No. 1981.18. adopted 3/3/81, approved 3f18/81, added "or possession" in relation to nareotto drugs, sto.. in subsection (bX4)b. Section 16 of Ord. No. 198349, adopted 11f1/83, approved 1U14/83, amended section 148M by changing the grounds for revocation of a CPNC and by deleting all references to "mayor" and "vehl. ties for hire appeals board" and inserting in lieu thereof "comw missime and "hearing -hone." Section 2 of Ord No. IMM. adopted 12/19/83, approved 1221/83, restored the terra -=yor or his designee" in subsections (a), (d) and (ir. added "revom Sion a" in subsection (b), introductory paragraph; revised subeadon (b)(11: added eubseMon (bX$% and changed "12 mm"' its Subsection (e) to 1136 months." Section 14 M Revocation or suspension of driver's permits; grounds; notice; hearing; emergency situations. (a) Upon a finding of due cause, as hereinafter defined, the commissioner shall have the author- ity to revoke or suspend any driver's permit which has been issued or which may hereafter be issued by the city. (b) "Due cause" for the revocation or suspension of a driver's permit shall include but shall not be limited to the following: (1) The failure of the driver to maintain any and all of the general qualifications applicable to the initial issuance of a permit Sun. No. 23.12.83 14.138 as set forth in section 14-8005(c) and (d) above; (2) Obtaining a permit by providing false information; (3) Violation by a driver of any of the following offenses: a. Driving under the influence of Intoxi- cating beverages or drugs; b. Criminal homicide, rape, aggravated battery, mayhem, burglary, aggravated as- sault, kidnapping, robbery, child molestation, criminal solicitation to commit any of the above, criminal attempt to commit any of the above, or possession, sale or distribution of narcotic drugs, barbituric acid derivatives and/or central nervous system stimulants, violation of any ordinances of the City of Atlanta governing the conduct of drivers of a vehicle for hire; provided, however, that all drivers shall be entitled to the full benefits of the First Offender Act of the State of Georgia (Ga. Laws 1988, p. 324, at seq., as amended; any convictions shall be consiaes.:L qa provided in sec- tion 14.6002 of this code; (4) Providing false information to the bureau; (5) Charging a fare in excess of those fares set out in section 14.8020; (6) Violation of any ordinances or law, other than minor traffic offenses, in connection with the operation of a taxicab; (7) Whenever it shall appear that a driver has disorders characterized by lapses of consciousness or other mental or physical disabilities affecting his or her ability to drive safely; (8) Four (4) or more moving traffic violations in any 12•month period. (Ord. No. 1981.18, Sec. 4, 3/16/81) (c) No driver's permit which has been issued or which may hereafter be issued by the city shall be revoked or suspended except upon a finding of due cause as defined in subsection (b) above, and after a hearing and upon a prior five-day written notice to the driver stating the place, date, time ar. i purpose of such hearing and setting forts. ;,is charge or ^.barges upon which said hearing shall be held. The hearing shall be held within 18 days of the date the notice is issued. 14.138.1 Licensing and Regulation (d) A duly appointed hearing officer shall con• duct the hearings herein and report his or her conclusions and recommendations to the commis. " I � 14.8008 Snpp. No. 23, Im , -•` 14.139 Licensing and Regulation • sioner. The commissioner, upon receiving same, may revoke or suspend any driver's permit. In lieu of suspension or revocation hereunder, the commissioner may impose a fine upon any driver, said fine not to exceed $500 for each violation, (e) After revocation of a driver's permit hereunder, no application for a driver's �i permit shall be accepted or considered for a period 12 months from the date of revocation. (f) For due cause, in the event of a violation of this chapter which results in an emergency situa. tion in which continued operation by the driver endangers the health, welfare or safety of the public, the commissioner may suspend any driv. sea permit hereunder, any such suspension may be made effective immediately and shall remain in force until a hearing is held, (g) Whenever any person holding a driver's permit is convicted of or plea guilty to or pleas nolo contenders to any of the following offenses, in any court, such disposition shall constitute due cause for temporary suspension in accordance with subsection (A of this section: Driving under the influence of intoxicating bev. erages or drugs, criminal homicide, rape, aggra. vatedbattery, mayhem, burglary, aggravated as. sault, kidnapping, robbery, child molestation, trim, inal solicitation to commit any of the above, trim. inal attempt to commit any of the above, or j possession, sale or distribution of narcotic drugs, barbituric acid derivatives and/or central nervous system stimulants. (Ord. No.1981.7, See.1, 213181, as amended by Ord. No.198349, Sec,17,11/14183) Aaeadnaas NOW Session 4 d Ord. No. 1981.10, adopted MI. appmed 34011, added "or pnoeselon" relative to narcotk drugs, eta., in subsection Ullk. Section 17 d Ord. No, 1M69, sdopted 11/7/83, approved 11/14/83, amended section 144 = by deleting all references to "mayor" and "vehicla for hire appals board" and inserting in lieu thereof "tommlteloner" amd "heating offlem " Section 14-8009 Revocation or sus- pension of company permits; grounds; no- tice; hearing; emer- gency situations. (a) Upon a finding of due cause, as hereinafter defined, the commissioner shall have the author. 14.8009 ity to revoke or suspend any company permit which has been issued or which may hereafter be issued by the city. (b) "Due cause" for the revocation or suspension of a company permit shall include but shall not be limited to the following: (1) The failure of the company to maintain any and all of the general qualifications applicable to the initial issuance of the company permit as set forth in 14.8006(a) through id) above; (2) Obtaining a company permit by provid. ing false information; (3) Conviction by a court of competent Jurisdiction of any shareholder, partner or member of any corporation, partnership, firm or association, holding a 61 percent interest or more in the entity, of any violation of article A or B. (4) Conviction by a court of competent Jurisdiction of any shareholder, partner or member of any corporation, partnership, firm or association, holding a 81 percent interest or more in the entity, of any of the following: a. Criminal homicide, rape, aggravated battery, mayhem, burglary, aggravated as- sault, kidnapping, robbery, child molestation. criminal solicitation to commit any of the above, criminal attempt to commit any of the above, or possession, sale or distribution of narcotic drugs, barbituric acid derivatives and/or central nervous system stimulants if such violation or violations are related to operation of the company, or violation of any ordinances of the City of Atlanta governing the conduct of holders of company permits; provided, however, that all such persons shall be entitled to the full benefits of the First Offender Act of the State of Georgia (Ga. Laws 1908, p. 324, et seq., as amended); any con- victions shall be considered as provided in section 14.6002 of this code. (Ord. No. 1981.18, See. 6. 3/1"1, as amended by Ord. No. 1983.69, Sec. 19, 11/14/83) (e) No company permit which has been Issued or which may hereafter be issued by the city hereunder shall be revoked or suspended except upon a finding of due cause as defined in subsection (b) above, and after a 8upp. No. 22.11.83 14.8009 Atlanta City Code hearing and upon a prior five-day written notice to the company, stating the place, date, time and purpose of such hearing and setting forth the charges upon which said hearing shall be held. The hearing shall be held within 18 days of the date the notice is issued. (d) A duly appointed hearing officer shall con- duct the hearings herein and report his or her conclusions and recommendations to the commis. sioner. The commissioner, upon receiving same, may revoke or suspend any company permit. In lieu of suspension or revocation, the commissioner may impose a fine upon any company, said tine not to exceed $600 for each violation. (e) After revocation of a company permit hereunder. no application for a company permit shall be accepted or considered for a period of 12 months from the date of revocation. (f) For due cause. in the event of a violation of this chapter which results In an emergency situation in which continued operation by the company endangers the health, welfare or safety of the public. the commissioner may sus• pend any cothpany permit hereunder; any such suspension may be made effective immediately and shall remain in force until a hearing is held. (Ord. No. 1981.7. Sec. 1. 2/3/81, as amended by Ord. No.1983.69, See. 1, 11/14/83) Amendment Noxat Section b of Ord. No. 1981.18, adopted 3/ti/81, amended 3/1"1. addad "or poueseion" relating to narcotic drugs, etc„ to subsection tb O& Section 18 of Ord. No. 198 O, adopted 11R/83, approved 11/14/83, mended section 144M by deleting all rvia. near to "mayor" and "vshiclse for hire &Mats board" and inserting in lieu thereof the tam "Commissioner" and "bearing Wear." Section to duwgW the section reference in subsection MO from 1440M to 144M. Section 14.9010 Information to be displayed. (a) All taxicabs shall have affixed to the exterior the following. (1) CPNC number - affixed by means of permanent, nonmagnetic decals to the front left hood, the rear right trunk lid and each front fender, at least five (b) Inches in height, News Gothic Bold in style, with a width of at Supp. me, 32,1143 14.140 least three -eighths of an inch and black or white in color, whichever is most prominent against the background color; (2) Name of company - painted or affixed by decal, according to specifications provided by the commissioner, to the right and left front doors; (3) Schedule of rates - painted or affixed by decal to the left and right rear doors. (b) Each taxicab for hire shall have affixed to the upper right corner of the front windshield a current monthly insurance sticker issued by the bureau. (Ord. No. 1983.69, Sec. 20, 11/14/83) (c) Each taxicab shall have a schedule of all rates and charges, its CPNC number, and the bureau's telephone number for complaints and comments posted in a location or locations visible to the passenger and approved by the bureau. The driver permit shall be placed in a bracket or receptacle of a type approved by the bureau and shall be located on the right half of the dash or in any other highly visible location by the bureau. (Ord. No. 1983.23, Sec. 3, 4/5/83, as amended by Ord. No.198349, Sec. 21, 11/14/83) (d) Each company shall submit to the commissioner a company logo and Identifies. tion scheme which shall not be the some or similar to any other and which within ten (10) days, shall be approved or rejected. Upon approval, the company logo and identification scheme shall be affixed to each vehicle for hire In the company's fleet: Said logo and identification scheme shall be affixed to the left and right front doors and any other pan of the vehicle, if applicable. and shall not be less than 12 inches in height, but not greater than 24 Inches in height. (e) All taxicabs shall be equipped with a dome light not less than six (6) inches In height, permanently affixed to the roof, bearing the word "TAXI" or the company name. (A Regulations issued by the commissioner shall govern the markings and material to be located on all vehicles for hire other than taxicabs. Any advertising materio' to be displayed inside the taxicab must be approved by the bu. reau; such approval shall not be unreasonably '\ 14.141 Licensing and Regulation withheld. (Ord. No.1981.7, Sec.1. 2081, as amended by Ord. No. 1083.69, Sec. 21, 11/14/83) (9) CPNC holders shall be responsible for com- pliance with this section, except that drivers shall be responsible for compliance with requirements relating to display of driver permits. (Ord. No. 1983.69, Sec. 21, IV14/83) Amendment NOW Section 3 of Ord. No.1983.23. adopted 4/4/83, approved 4/8/83, added paragraph (8) to subsection (c). Section 20 of Ord. No. 198M9, adopted tin/83. approved 11/14/83, amended subsection (b) by changing „vehicle for hire„ to "taaiaab for hire" and "rear" to "front." Section 21 completely revised subsection (c), added the final sentence to subsection (A, sad added subsection (g) in its entirety. Section 14.8011 Interior require- ments of vehicles for hire. (a) The interior of each vehicle for hire shall be maintained In a clean condition, free of foreign matter and offensive odors. There shall be no litter in the vehicle or trunk and the seats shall be kept clean and without holes or large wear spots. (b) All vehicles for hire shall present a clean environment for passengers. (Ord. No. 1981.7, Sec. 1, 2/3181) Section 14-8012. Vehicles for hire: prohibitions. (a) The minimum weight of a taxicab shall be 2,000 pounds, as determined by the manufacturer's specifications. (b) No taxicab shall be equipped with shades, curtains, or any other vision -obstructing device. (Ord. No. 1982.51. Sec. 7, 7/14/82) (c) No taxicab shall have less than four (4) doors, and each taxicab must be either a station wagon or a sedan. (Ord. No. 1081.7, Sec. 1, 2/3/82) Ameadment Notes Ord. No. 1982.61. section 7, adopted MI. approved 7/1"11, deleted former subsection (b) and masted a new subsection (b) is lieu thereof. Section 14-6013 Inspection of ve- hicles for hire. (a) In addition to ail other vehicle inspec- tions required by law, each vehicle for hire 14-8013 shall be subject to a semiannual inspection. (b) All inspections shall be conducted by the bureau at designated Inspection stations and shall consist of the following: (1) Animal -drawn vehicles shall be Inspect- ed for proper markings and materials, exteri- or lights, glass (no cracks), license plate and license plate Iights (if applicable), doors and door locks, body and interior check for conditions of upholstery and floor, and proper lubrication of body, springs and wheels. In addition, the harness must be oiled and cleaned so as to be soft at all times: and the harness must be properly fitted and maintained and kept free of makeshift materials such as wire, sisal rope and rusty chaining. (2) All taxicabs shall be inspected for proper markings, display of information, and the following: a. Exterior. Headlights, taillights, brake lights, directional signal lights, license plate lights, windshield, vent glasses, windshield wipers, all other vehicle glass, glass window raisers, doors and door locks, trunk lid, trunk, hood, and Interior door handles, exhaust system, splash shields, hubcaps, bumpers, fenders, body and tires shall be insp6eted to ascertain that each is functioning properly. Each taxicab shall be maintained in a reasonably clean condition. There shall be no tears or rust holes in tiie vehicle body and no loose pieces such as fenders, bumpers or trim hanging from the vehicle body. There shall be no unrepaired body damage which would create a safety problem or interfere with the operation of the vehicle. b. Interior. The rear view mirror, steering wheel, foot brakes, parking brakes and air conditioning and heating systems shall be inspected to aster• tain that each is functioning properly. The uphol. stery, floor mats, head Iining, door panels and the trunk compartment shall be inspected to deter- mine whether they are clean, free of tears, and that the trunk has sufficient space for passen- gers' luggage. The taximeter shall be inspected to determine that it is properly calibrated (Ord. No. 1983-69, Sec. 23, 11/14/83) (c) All vehicles for hire passing the semiannual inspection shall have affixed to the lower right Supp. No. 22. 11.83 14.8013 Atlanta City Code rear windshield an inspection sticker issued by the bureau showing the vehicle's CPNC number and the date of the inspection. (Ord. No. 1983.69. Sec. 22,11/14/83) (d)' Each vehicle for hire shall be inspected dur- ing the month of the expiration of the current inspection sticker issued by the bureau. Willful failure to have a vehicle for hire inspected as required herein shall be a ground for suspension of the CPNC pursuant to section 14.8007. (Ord. No. 1983.89, Sec. 23, 11/14/83) (e) If a vehicle for hire fails to pass the require. ments of inspection, a correction slip shall be Is- sued to the driver, listing the items that need correction and showing the status of the inspec- tion. The vehicle shall not be operated as a vehi. cle for hire until it successfully passes inspection; provided that the commissioner or his designee, in his discretion, for a period not to exceed 18 " days, may allow the continued use of a vehicle for hire Which substantially complies with the inspec. tion requirements. The commissioner shall forward to the CPNC holder a copy of the correction slip. (Ord. No.1983.69. Sec. 23,11/14/83) (f) The commissioner or his designee shall es- tablish a schhedule of inspection for all vehicles for hire for which CPNC's have been issued. (Ord. No. 108349, Sec. 23,11/14183) (g) Taxicabs operating at the Hartsfield Atlanta International Airport may be subject to inspections in addition to the semiannual inspection$. (h) Nothing herein shall prohibit the random inspection of vehicles for hire by personnel of the bureau of police services and of the bureau of vehicles for hire where possible violations of arti- cles A and B or other violations of law regarding ,.' the condition of vehicles for hire are evident by visual inspection. (Ord. No. 198349, Sec. 24, 11/14/83) (i) All vehicles rendering limousine service or contract Iimousine service shall be inspected by ' the commissioner of public safety or his designee and found to be limousines or extended limou- sines, as defined in this article, and found to meet reasonable standards of comfort and safe opera- tion. No vehicle shall be approved for limousine service as a limousine if it bears any advertising or other writing or emblem on the outside. except for license plates. inspection stickers or medal- Supp. No. 2% 11-M 14.142 lions, as may be required by law (or display of the flag or emblem relating to the office of the pas- senger while the limousine is in use), or which is equipped with an outside roof light or lights or similar roof devices. The preceding sentence shall not apply to extended Iimousines. Vehicles ren- dering contract limousine service may display on their sides not more than two (2) signs, logos or other emblems which identify the person or or. ganization making available the service and the class of persons to whom the service is made available provided, the signs, logos or emblems may not exceed in total area 400 square inches each. (Ord. No. 1981.7, Sec. 1, 2/3/81; Ord. No. 1982.82. Sec. 8, 7/14/82) Amendment Note: Ord. No. 1982.51, section 8, adopted 716/82. approved 7n4/82, added subsection (i) to read as herein set out. Section 22 of Ord. No. 198349, adopted 11/4/83, ap- proved 11114/83, amended subsection (e) by changing "upper right front" to "lower right rear." Section 23 amended subset. tion (bX2)b. by changing "the interior climate control' to "air conditioning and heating system" and amended subsections M. (a) snd (9 by deleting aA references to revocation of cpNc's and changing "commissioner" to "commissioner or his desig. nee." Section 24 amended subsection (h) by adding "personnel of the bureau of vehicles for hire." Station 14-8014 Transfer, limitations on transfers and transfer procedures. (a) CPNC's: (1) A CPNC shall be transferred provided that the following requirements are met: a. A written statement is submitted to the bureau including the following information: i. The name and address of the transferor and the transferee; if. The CPNC number and the date the transferor received same: iii. A description of the vehicle transferred or a description of the vehicle to which the CPNC is being transferred, which includes make, model, year and vehicle identification number (serial number). b. A nonrefundable transfer fee as here- inafter described shall be required. c. The transferee shall submit an applica- tion for a CPNC and shall meet all require- ments for same. I k e." , 14.142.1 Licensing and Regulation d. A certified copy of a binding agreement to transfer the CPNC shall be provided. e. The vehicle of the transferee shall have been inspected and approved for the issuance of an inspection sticker, and otherwise comply with all of the requirements of this chapter. (Ord. No.1983.69, Sec. 25,11/14/83; Ord. No.1988-83, Sec. 3.12121/83) (2) A CPNC may not be transferred during a period of suspension. (3) In the event that a CPNC has been revoked, transfer will be permitted in accordance with sub. section (1). (Ord. No.1983.69, Sec. 25,11/14/83, as amended by Ord. No.1983.83, Sec. 3,12/21/83) (b) Driver's and Company Permffr Neither driv- er's permits nor company permits shall be trans. ferable. (Ord No.1981.7, Sec 1. 213/81) Amendmew Notes Section 3 of Ord. No. 1983.83, adopted 1?/19)83, approved 12/21/83. eonspietely revised subsection (s). Section 14-8015 Color scheme of taxi- cabs. Each company which operates 25 or more taxicabri for which CPNC's have been Issued shall have all of Its taxicabs painted a uniform color, said color to be chosen by the company and approved by the commissioner. By January 1. 1982. each company operating less than 25 taxicabs for which CPNC's have been issued shall have all of Its taxicabs painted light green, the formula for which shall be available from the bureau. (Ord. No. 1981.7, Sec. 1.2/3/81) Section 14-8016 Use of open stands. (a) The bureau shall maintain a list of all open stands. Taxicab stands shall be created by the bureau based on the criteria of traMe conditions, public necessity and convenience, and the effect on police fututions. (b) Open stands shall be used exclusively by taxicabs for which CPNC's have been issued by the city. No taxicab shall be placed upon or oc- cupy any taxicab stand except for the purpose of being held forth for hire. Taxicabs shall be placed on stands only from the rear and shall be moved 14.8018 forward and to the front of the stand immediately as space becomes available by the departure or movement of preceding taxicabs. When a taxicab stand is occupied to its full capacity, no taxicab shall loiter or wait nearby in violation of any traffic laws of the city. The driver of any taxicab occupying a stand shall not leave that taxicab unattended. (Ord. No. 1981.7. Sec. 1, 2/3/81, as amended by Ord. No. 1983.69, Sec. 26, 11/14/83) Amendment Notes Prior to their amendment by Ord. No. 198M9, section 26, adopted I1R/83, approved 11/4/83. sub. swoons (a) and (b) contained only the first sentence in each s4bNou0n. Section 14.8017 Drivers to maintain current map of Metropolitan Atlanta Area. Each driver shall maintain in each vehicle for hire a suitable map or street guide of the Metropolitan Atlanta Area. (Ord. No. 1981.7. Sec. 1, 2/3/81) Section 14.8018 Miscellaneous regu- lations and penal- ties. (a) Within 24 hours of the discovery of any personal property left by a passenger, a driver shall forward such property to the bureau. (b) A driver shall take the most direct route to a passenger's destination unless otherwise authorized or directed by the passenger. (c) It shall be unlawful for any driver of a vehicle for hire for which a current CPNC has not been issued by the city to solicit or engage passengers within the City of Atlanta. (d) A taxicab driver shall not refuse to accept a passenger unless the passenger is obviously in- toxicated or dangerous. (e) No driver shall refuse to accept a passenger solely on the basis of race, color. national origin, religious belief or sex. (f) It shall be unlawful to operate any vehicle for hire for which a CPNC has been issued which is not insured in the amounts required by the State of Georgia. Supp. No. 23. IM 14-8018 Atlanta City Code (g) No taxicab shall be permitted to carry non• Paying passengers while transporting a paying passenger or passengers except for the purpose of driver training. (h) No television seta may be operated on the front seat on which the driver sits inside of a moving taxicab. 0) Drivers shall be prohibited from refusing to display to bureau inspectors or law enforcement officers any information required by this chapter, and shall be prohibited from failing to cooperate with bureau inspectors in performing their du- ties. (Ord. No. 1981.7, Sec. 1.2/3/81, as amended by Ord. No.198349, Sec. 27, 11/14183) Amendment Kota Section 27 of Ord. No.198349, adopted IV4/83, approved 1U14/83, amended section 14.8018 in its entirety, adding "taakat," in the first line of subsection (d) and adding subsections (gWO in their entirety. Section 14-8019 Schedule of fees. (a) Each CPNC. $100. (b) Each CPNC transfer. $100. (c) Initial driver's'permit. $30. (d) Renewal of driver's,permit. $20. (e) Compgny vomit. $100. (f) Renewal of company permit. $50. (g) Reissuance of name change of com. pany. $50. (h) Issuance of duplicate of any of the above, $10. 0) vehicle semiannual inspection, $26. 0) Transfer of driver to different company, $15. (k) Temporary limousine CPNC, $150. (1) Temporary driver's permit, $50. (Ord. No. 1981.7, Sec. 1, 213/81, as amended by Ord. No.198M, Sec, 1, 5.1"3, Ord. No. 198349, Sec. 29,11/14/83) Amendment Notes Section 1 of Ord. No. loan. adopted NOW- approved dn$=. deleted subsection W. thus elimi• hating the $23 semimnwd inspection fee. Section 28 of Ord. No.198349. adopted 11/1/83, approved 11nQW, reinstated nboodim O) and added saw subseetiom g)-ON. S-ection 14-8020 Schedule of fares. (a) All taxicab companies and drivers shall charge the following schedule of fares. except as otherwise provided herein: Supp. No. 23.1M 14.142.2 (1) $1.00 to first one -fifth mile: (2) $0.20 each additional one.fifth mile; (3) $8.00 per hour waiting time. (4) $0.25 per person for each additional Passenger in excess of one (1) riding in the vehicle on the same trip. (5) $5.00 charge for use of additional space for luggage, trunks or cargo for which the trunk space in a four -door sedan would not be adequate. This charge may be assessed when a station wagon is requested by the passenger for its additional space, ,or when a driver and passenger agree that cargo may be carried in the interior of a sedan after the sedan's trunk has already been filled with that Passenger's cargo. (Ord. No. 1982,36, Sec. 2. 4/7/81, as amended by Ord. No.1983.89, Sec. 29.11/14/83) (b) For taxicab trips between (to and from) the Atlanta airport and destinations within the down• town zone described in subsection )d) below, pas- sengers shall be charged a flat rate fare based upon the number of passengers entering the taxi• cab at the beginning of the trip. Three 131 or more passengers shall be charged $5.00 each. two (2) passengers shall be charged $7.00 each, and one (1) person traveling alone shall be charged $13.50. In addition to such flat rate fares, a charge of $8.00.per hour of waiting time shall he imposed. (c) 'In the event that -two 121 or more passengers enter the same taxicab at the Atlanta airport and the destinations of such passengers are not all within the downtown zone, the passenger or pas- sengers going to the downtown zone shall pay the flat rate as set out in subsection (b) above, and the remaining passenger or passengers shall pay the same fare as the first passenger plus the fare computed on the meter as set out in subsection (a) for the remaining segment of the trip. (d) A map showing the Atlanta downtown zone shall be on file in the office of the clerk of council. and the legal description of the said zone shall be as follows: Beginning at the intersection of Ashby Street and North Avenue in LL 114. district 14. Fulton County, thence east along North Avenue to its intersection with Boulevard, thence south along Boulevard to its intersection with Memorial Drive. thence west along Memorial Drive to its intersec• tion with Cherokee Avenue. thence south along Cherokee Avenue to its intersection with Georgia Avenue. thence west along Georgia Avenue to its �J 14.142.3 Licensing and Regulation intersection with Glenn Street. thence west along Glenn Street and Gordon Street to its intersec. tion with Ashby Street. thence north along Ashby to its intersection with North Avenue and the point of beginning. ter The flat rate fares not forth in subsection tbi above shall become effective on dune 1. 1983. and shall be reviewed by the council every six 161 months thereafter. ift The schedule of rates established herein shall be mandatory and shall be charged by all taxicab drivers of all companies unless the mayor and council shall be ordinance provide otherwise. (g) Fares which a limousine service shall charge for limousine rental shall not be less than $20 per hour nor more than $50 per houn fares for an extended limousine shall not be'.ess than $20 per hour nor more than $50 per hour. A limousine service may not charge fares based upon fractions of an hour except after the first hour of service. Fees or fares for the rendering of contract limou- sine service may be computed on other than an hourly basis and are subject to no maximum or minimum rate. However. notwithstanding the above. limousines and extended limousines trawling be. tween Atlanta Mansfield international Airport and the downtown convention area shall charge not less than $30 per limousine per trip and not Ion than $60 per extended limousine per trip. (Ord. No. 1981.7. Sec. 2, 2/3/81, as amended by Ord. No.1982.51, Sec. 9, 7/14182; Ord No.1983.23, Son, 2. 4/5183) Atresdawat Notes Ord, No. 1981.36, adopted 4/"1, ap. proved 417/81. inanaed the fares in subsections is) and fbi, Ord. No 1082.51. $Mfon 9, adopted M2. approved 7/14/82. added subsection (4) to read as herein an out. Section 1 otOrd. No. 1983.23. adopted 414l83, approved 44183. repealed former subsections (a), (b) and ametad raw subseetion sas-ass. redes• ienstiag former aubsaetions (a), (d) as (!f, (g). Section 29 of Ord. No. 1983d9. adopted 11/ O, approved IV14183, added pars. g►aph (6) to eubuation (a), Swelon 14.802i Eaforeement. The bureau of police services, along with the bureau of vehicles for hire, shall enforce the regu• Mons contained in this chapter. (Ord. No. 1981.7, Sec. 2. 2/3/81, as amended by Ord. No. 1983.69, Sec. 30,11/14/83) Ameadauai Notes prior to its complete revision by section 30 al Ord. No. 10M. eeation 144021 prescribed a penstty 14.8022 for noncompliance with the terms of articles A and 8 of this chapter. Section 14a22 Hearing officers. (a) The mayor shall have the authority to ap• point 10 hearing officers for the purpose of acting as fact finders regarding charges brought by the bureau against individuals and entities for viola• tion of this chapter. Each hearing officer shall be appointed for a two-year term and shall receive $25 for each day or part thereof the hearing otii- cer appears for hearing. Four (4) of the hearing officers shall be attorneys -at -law with at least three (3) years in the practice of law. A panel of three (3) hearing officers shall be designated by the director for each case heard. Each panel shall have at least one (1) attorneyat law but shall not have more than two (2) attorneys. No person shall be appointed as a hearing officer who holds any interest in any licenses issued under the police powers of the city or who represents any interest which may be adverse to that of the city. (b) Hearing officers shall have the following functions: (1) To hold hearings regarding the imposition of any fine by the bureau for violation of any regulations contained in this chapter, (2) To hold hearings regarding any proposed denial, suspensions or revocation of any CPNC, driver permit or company permit; (3) To hear any other matter which requires approval under this chapter; (4) After hearing evidence on the charges pre• rented by the bureau and the individual entity charged. the panel of hearing officers shall issue findings of fact and shall render a recommenda• tion as to any penalties or fines in writing with reasons for said recommendation. Such findings and recommendations shall be submitted to the commissioner, whose decision shall be final. sub• ject to the writ of certiorari as provided by law. (5) No action shall be taken pursuant to this section unless the individual or entity charged has been given five (5) days' notice prior to the hearing. Hearings shall be scheduled by the bu- reau as often as necessary to promote expeditious handling of the charges. (6) All hearings are administrative in nature, and the strict rules of evidence as applied in court trials shall not apply. (Ord. No. 1981.21. Sec. 1, Stepp. No. 23.1243 14.8023 Atlanta Uty Code 14.142.4 4/7/81. as amended by Ord. No. 1982.51, Sec. 10, Section 14-8025 Functions. 7/14/82; Ord. No. 1983.69, Sec. 31,11/14/83) Repealed by Ord. No. 1983.69, Sec. 33, 11/14/83. Amendment Notes Ord. No. 1982.51. section 10, adopted 7/6/82, approved 7/14/82, revised section 14.8022 to change the number of members of the vehicle for hire appeals board from seven (7) to eight (8). Section 31 of Ord. No. 1983.69, adopted 11/7/83, approved 11/14/83, completely revised the section to read u set ouo. Section 148023 Power of mayor to sus- pend and revoke permits and CPNC's and impose civil lines. The mayor or his designee, upon receiving the recommendation of the hearing officers, shall have the authority to suspend and revoke, where ap. plicable, permits and CPNC's and to impose civil fines for violations of this chapter. Such flues shall not exceed 8500 per violation. At the time the driver or company is cited for a violation in connection with this section, the driver or company shall surrender his or her permit to the person issuing the citation, who will then give the driver or company a temporary permit good for a mtlsdmum of 30 days. The regular per. mits will not be returned until any fines imposed by the commissioner have .been paid and until any -period of suspension has expired. Failure to pay any fines imposed pursuant to this section shall constitute due cause for further action by the commissioner. (Ord. No.1981.21, Sec.1. 4/7/81, as amended by Ord. No.1983.60, Sec. 32,11/4/83; Ord. No.19SUS, Sec. 4,12121/83) Amendmens Notes Ma to its complete revision by section 32 of Ord. No. 19M9, adopted IDI/83, approved 11/14/83. section 148023 dealt with meetings of the vehicle for hire appeals board. Section 4 of Ord. No.1983413. adopted 12/19/83, spprovad 1?!21/83, changed "Commissioner" to "mayor or his designee" in the drat paragraph and made a temporary per. mit good for "a maximum of" 30 days. Sec. 14SM Final deterniblation. The mayor or his designee shall make the final determination on all denials, suspensions, revo- cations or other matters. after hearing as set out above. (Ord. No.198"1, See. 1.1W183) Editorial Notat Section 14.8024 formerly dealt with admin. istrative and 1*0 services, and was repealed by Ord. No. 198349, section 33. adopted 1IM83, approved i V14/83. Sub. aequently. seetion I of Ord. No. 198341. adopted 12/ O. approved IW183, added a new section 144M. Supp No. 23,1240 Section 14-8026 Final determination, Repealed by Ord. No. 1983.69, Sec, 33. 11/14/83. Editorial Notes The subject of the final determination of suspension, etc., of permits, is now covered in section 14.8024. Section 14.8027 Administrative nature of hearings. Repealed by Ord. No.1983.60, Sec. 33, 11/24/83. Section 148028 Adoption of rules and regulations. Repealed by Ord. No. 1983-69, Sec. 33, 11/14/83. Section 148029 Operations office to be maintained in the city. Companies which operate Iimousines or extended limousines within the jurisdictional lishits of the city shall designate and maintain an operations oMce in the city and shall garage their vehicles in the city. (Ord. No. 1982.51, Sec. 11, 7/14/82) Amendment Note: Ord. No. 198241, section 11. adopted 7/6/82, approved 7/14/82, added section 14.8029 to read as herein act out. Section 141030 reserved. Section 14-8031 Unlawful acts. It shall be unlawful for any person to know. .ugly operate, offer to operate or permit another to operate a limousine service in the city in viola• tion of this article. It shall be unlawful for any person to hold himself out to the public or adver- tise that he renders a limousine service in the city unless the person shall have obtained and holds a certificate under this article. (Ord. '.Vo. 1982.51. Sec. 12. 7/14/82) Amendment Now Ord. No. 1982.51, section 12. adopted 7/6/82, approved 7/14/82. added section 14.8031 to read as harem set out. Section 14-8032 through section 1"110 reserved. 11 Enternational Effaxicab Essociati 11300 ROCKVILLE PIKE ROCKVILLE,MARYLAND 20852 0 TELEPHONE (301) 88 I. THE CASE AGAINST TAXICAB DEREGULATION DESCRIPTION OF THE TAXICAB INDUSTRY. •- Taxicabs are owned by individuals and by small businesses, not by large corporate organizations. -- Preliminary International Taxicab Association (ITA) figures for 20 of the largest U.S. cities show that taxicab medallions are owned by individuals (70%) much more often than by fleets (30) . -- Contrary to popular belief, the "transportation disadvantaged" segment of our population, i.e., elderly, unemployed, handi- capped, children and low-income persons, are the greatest users of taxicab services. The 1975 IQational Personal Trans- ortation Study showed that 60% of all taxicab services are provided to the transportation disadvantaged, while only 40% are provided to members of affluent households, tourists or business persons. -- The taxicab industry is the only remaining private provider of intracity transportation. Taxicabs transported over 1.7 billion passengers in 1981. In many small towns and suburban areas taxis are the �oonll means of public transpor- tation. In larger cities, taxicabs feed passengers into bus or rail transit systems. -- The 1982 U.S. Department of Transportation (DOT) study, Taxicab Operating Characteristics, reported that "From 1976 to 1981 the consumer price n ex rose by about 58;• while the portion of the index referring to the cost of operating an automobile rose by 68%. The increase in fares, however, was slightly less than the increase in automobile operating costs. The taxi operators in the country have therefore not gained on inflation through fare increases during 1975-1981." ECONOMIC THEORY OF DEREGULATION IS NOT APPLICABLE TO THE TAXICAB INDUSTRY. -- An economist in the FTC's Seattle office states that open entry in the taxicab industry should lead to (1) more taxis in the market, (2) lower fares, (3) better service, including faster response time, and (4) falling medal Lion values. This theory, founded upon the dual premises that (a) more taxis and/or lower fares will produce increased rider demand, and -2- (b) current regulated fares are at anticompetitive levels, has not carried over into actual practice. -- Taxi productivity decreases. While there may be greater numbers of taxis on the streets of deregulated cities, DOT studies confirm that each taxi is being driven fewer hours and is carrying feweL passengers than prior to deregulation. In essence, operating efficiency and productivity have been reduced. -- Deregulated fares are hi her not lower, than regulated fares. Taxi area in eulated cities are Almost universally higher than in regulated cities. Further, DOT studies have demonstrated that, following deregulation, taxi fares increased faster than they had increased in prior regulated years. An FTC consulting economist's study of the fare situation in Seattle (1) is contradicted by the DOT study of Seattle, (2) is based upon unweighted, average deregulated taxi fares, rather than upon weighted averages, (3) states, then totally ignores, the fact that the highest fare in- creases were seen at the location where open entry had its greatest impact (airport), and (4) concludes, without founda- tion, that Seattle regulators had let fares fall to "abnormally low real levels" immediately prior to deregulation. In fact, the cost of a 3.5 mile non -airport trip rose 51% and the cost of an 11.5 mile airport trip rose 64% from May, 1979 to May, 1981. DOT studies indicate that it is the new entrant, not the existing taxicab permit holder, who is more likely to charge a high fare after deregulation. -- Service deteriorates under deregulation. DOT studies conclude that taxicab services deteriorate markedly in an open entry system: 1. New entrants concentrate on the major trip generators, most notably airports. This results in an oversupply of taxis at those locations. 2. There is no increase in geographic service coverage. 3. There have been little or no service innovations. 4. New entrants do not have radio dispatch capability or, if they do, they have refused to respond to telephone service requests. In Seattle, 25% of all telephone requests are refused. In San Diego, the comparable figure rose from 5% to 18% after deregulation. Addi- tionally, fleets which generally service telephone customers have had to reduce the number of vehicles in operation, thereby increasing the response time for telephone requests. 5. The safety of passengers is jeopardized under deregula- tion. Vehicle age increases and condition deteriorates; some independent drivers engage in criminal activities; it is difficult for cities to monitor drivers' insurance coverage. Indeed, cities having experienced taxicab F -3- deregulation have found that they incur higher administrative costs, not the lower costs w ch they had expecte to accompany deregulation. These higher costs are associated with application processing, resolution of increased numbers of rider complaints and continued involvement in the regulatory process. 6. Consumer confusion is rampant. It is virtually impos- sible to engage in price comparison, even if fares are posted, due to the number of variables which make up the complete price (drop, mileage, wait time, baggage, extra person charges). -- The economic model for deregulation is faulty. ITA would su m t t at open entry and unrestricted fare levels have, where attempted, produced (a) lower, not higher, taxicab utilization, (b) higher, not lower,fares, and (c) poorer, not better, taxicab service, because several crucial assumptions upon which the economic model supporting deregulation is based are faulty. , Most importantly, the universal experience of deregulation has been that increasing the supply of taxicabs, even at mandated lower fares, does not result in increased rider demand. The taxicab user is not choosing between alternative forms of transportation. Indeed, available statistics indi- cate that taxicab ridership is on the decline. Under deregu- lation, taxicab ridership in San Diego declined by 25%. Additionally , contrary to the economists assumptions, current regulated fares are at extremely low, not anticompetitively high, levels. Even the fact that a positive medallion value exists in some regulated cities does not mean that fares are above competitive levels. If that were the case, fares in deregulated cities in which medallion values have been reduced to zero would have decreased rather than increased. A positive medallion value is indiciative not of the proba- bility of unjustified profits but rather oche probability of merely earning an income as an operator. By controlling fares, taxicab regulators ensure that operators of taxicabs make only a reasonable profit. III. THE FTC SHOULD NOT INSTITUTE LEGAL PROCEEDINGS TO DEREGULATE TTE =CBIDS -- While deregulation in general may be a worthy idea, it should not be pursued when the evidence indicates that it rod � will produce neither a more efficient allocation of resources nor a more efficient delivery of taxicab services. -- Perhaps the most compelling argument against deregulation is the fact that cities such as Atlanta, Indianapolis, Portland i and Fresno, which experimented with open entry, have returned �f -4- to taxicab regulation. A proposal to re -regulate the industry is pending, iq Seattle, and a moratorium on new permits is in effect in San Diego. •- A DOT study has concluded that most cities do not wish to consider open entry for the reasons that the current method of taxicab regulation has produced satisfactory results and experiments with deregulation have produced unsatis- Tactory results. Regulators ensure that taxicab service is available, safe and fairly priced. -- The economic and social costs of deregulation greatly exceed the singular benefit which history teaches has resulted from open entry, namely, the increased opportunity for per- sons to operate taxicabs. That so-called benefit is minus- cule in proportion to the economic detriment associated with deregulation: economic injury to riders, particularly the elderly, handicapped and low-income persons who are dependent upon taxicab services (higher fares, price -gouging, reduced service, dangerous' vehicles); economic injury to current permit holders (fewer trips per operator; decline in value of medallions, 701% of which are owned by individual opera- tors); economic injury to the public in general (higher tax burden due to increased administrative costs). -- Deregulation of the taxicab industry is, therefore, econom- ically unsound and should not be pursued. z:. i ; 0 Compiled bvi J. M. Chernowr Representing THE HOUSTON TAXICAB COMMITTEE COMPRISED OF$ YELLOW CAB COMPANY UNITED CAB COMPANY SKYJACK CAB COMPANY SQUARE DEAL CAB COMPANY August 31r 1983 FAILURE OF •OPEN ENTRY• IN THE TAXI INDUSTRY IN FIVE U.S. CITIES SUMMARY OF OBSERVATIONS AND CONCLUSIONS IN FIVE STUDIES$ CITY ------------ AUTHOR ------------ DATE FINAL REPORT i. Atlanta Multiswstems ----------------- Septemberr 1982 2, Indianapolis U.M.T.A.# Serteaberr 1990 3. Portland U.M.T.A. Serteaberr 1982 4. San Diego U.M.T.A. Mawr 1983 5. Seattle U.M.T.A. Mawr 1983 Urban Mass Transit Administration U.S. Department of Transportation 1 I ,I -1. CITY ENDS "OPEN ENTRY$ EXPERIMENT In four of these five cities. the Citw Council restored the concept of limiting taxi permits based upon •public convenience and necessitw•$ Open Entrw Started Ended 1, Atlanta 1965 1981 2. Indianapolis 1973 1981 3. Portland 1979 1980 4. San Diego 1979 1983 5. Seattle 1979 ----* A bill is Pending in the State Legislature to assume control of taxi regulation. 2. RATIO OF TAXIS TO POPULATION NOT AS FAVORABLE AS HOUSTON Except in Atlantan which •has a glut of taxis'► none of the other four cities which tried 'open entrw' has a ratio as favorable as Houston$ Sept'82 1980 Census No. of Ratio Citw Pop. Taxis Per 1000 1. Atlanta 422r293 1450 3.44 2. Indianapolis 695r040 326 .47 3. Portland 364091 245 .67 4. San Diego 870r006 825 .95 5. Seattle 491r897 550 1#12 HOUSTON 1r554r992 1629 1.18 (The number of taxi permits issued in Houston under the current ordinance INCREASED 100X between 1977 and 1982 from 914 to 1r8290 3. SERVICE EFFECT OF OPEN ENTRY a. NO increase in geographic service coverage. b. NO change in service to ethnic mincritw areas. 'i'•,,: (Yellow Cab Houston served minoritw and low income areas with 29.7% of all radio trips-survew week ended 12/16/82.) c. DECREASE in cruising cabs. d. •FRUSTRATION• in obtaining service bw telephone. T-- - (Yellow Cab Houston dispatches to anwwhere in the citw within 10 minutes for 98Xt of all reauests.) e. NO service innovations occurred. f. OVERSUPPLY of taxicabs at airport and maJor downtown and hotel stands. g. NO transfer from conventional transit. l • 4 s SAFETY a. DETERIORATION in vehicle age and condition occurred after open entrws (Yellow Cab Houston'% fleet is Primarilw 1981-1983 modelis. ) be ADEQUATE ENFORCEMENT DIFFICULT because of DILUTION OF CORPORATE RESPONSIBILITY resulting from a multiplication in number of companies and inabilitw to identifw the companw with which the driver is associated. cs RISE IN CRIME committed bw taxi drivers and operatorss S. FARES INCREASED a. Fares INCREASED FASTER under variable Pricings b. Oiderr larger companies offered LOWER fares than the newerr smaller operators. c. LITTLE Pricing innovations bs HIGHER COSTS TO CITY a. •Open entrw• is substantiallw sore expensive than regulations b. COMPLAINTS skwrocketeds cs CONTINUED Citw Council involvement. d. 'RIP-OFF CITY' IMAGE to conventioneers and tourists# jA- es Ongoing NEGATIVE editorial commentarws ? 7s EFFECT ON TAXI OPERATORS AND DRIVERS a. DECREASE IN NUMBER of trips combined with increase In Permits, f, b. Driver near POVERTY LEVEL in earnings. 't'7':;11::i'01t'1'h'1'ION b LAND USE C01414J'1"1'l:i: r COIAMITTEE r-ONSUI.TANr ANALYSIS Tf,LU 84-22 6 REVISIONS TO PARATf<ANSI'T CODE. I9:;uns s Should the City st:rr.ngt:hnn vr:hicl(I snrL drivr:r nt andards, rro}iiFit transfers and rost:r.ict .:anr:(:nt:ration of pr?rrni.t.s7 Recor=endations: Corrunittee should ruconanond: 1) .cphroval of the rc-vised ParAt.ransit Code to i 3trengthon. opr•r.ating regulations including ve- hicle driver standards with the following arn•;nd- m� n t, 2) amend the proposed ordinance to provide eligi- bility for transfer of permits five years after issuance or upon death or disability, 3) authorize staff to process'pending applications for transfers received during the moratorium, and, 4) amend Council Policy 500-2 to limit concr_ntra- tion of permits with any individual or group of individuals; and to exclude limited permits from issuance under the policy. Backgrounds In January 1979, the City of San Diego bogan ir-plemontat ion of a series of Taxicab Regulatory Revisions designed to open entry into the local market, improve taxi coverage, promote service and pricing innovations, relieve Council of regulatory burden, hilprove administra- tion, and reduce the City's dopon(lonr;e on a single larrir_ operator. Mnilo many of the revisions provr:d successful, other ofret;ts ware unanticipated and 'resulted in passenger confusion .and complaints regarding variable pricing, overcharging, the condition of cabs and attitudes of drivers. Complaints were voiced from within the intl-,:s-' try as well. During public hearings by this :u:.:nit.tr,n, ;,..;;7;r•rs of •r- w! 1%,j rija I torn q 6 17, 1984 Parrs 2 the industry tiosti find I.hiit cope-.-n r.-nLry had r(.-sultnd in an ovi.!j of cabs which outstrippnd the 41i,inttnd iind meant lon(jer worYing hrjrs for the same or less pay. Overcrowding by taxis at the Airport ,xj(.'n rr.-sulted in revisions to the City Code and a reduction in the roirLor of Airport poy:mits granted by the Port District, 50.),;r.,quqntly, the Urban Mass Tran,,;porUstion Admini.,;t.ratlon funded study on the "Effects of Taxi Revisions in San Di(Z(Jo" was i r,!; sind. The Committee covit.-wod the rrfport, hr!isrd public ',-,rtijrorjny and considered :;toff recaranonda t i oils. The findings and t.onclusions of the Cominittoe are contained in the CurrimiLLne Report to Council dated May 11, 1983 which is aLtachnd. As a result of the Committ.ro r,.(_-vi,!w, the Council it po!',od a 1-yc-ar moratorium on the i.a.,juanc-3, f..r.ijisFt!r -ind t"xicab permits. On May 7, 1984 the Council all,-)PLod A Council Policy on Taxicab Por- mits setting the maximum number of permits at 928, establishing a policy for Council determination of the maxiintim niu.n.ber of permits based on review of taxi industry indicators and providing that a lottery system be utilized for issuance of potinits whenever Council increases the Maximum number. The Council removed from the draft policy and returned to Committee for further review the issue of concentration of permits. At the same time Council also extended the moratorium on permit transfers pending completion of additional study and drafting of revisions to'the Paratransit Coda affecting transferability. Transfers On February 22, 1984 the Committee endorsed the concept of prohibi— ing permit transfers and directed staff to include language in the� draft revisions to the Paratransit Coda under preparation. The - concern of the Committee was basically two -fold: 1) that an over- supply of cabs existed as a result of open entry and that this over- supply was responsible for low productivity and general degradation of service quality in San Diago; and 2) that speculation and trafficking in taxi POLInits was botc,�ming a motivating factor in the industry. The draft ordinance before the ConuniLtae today includes a section which prohibits transfers of taxi permits. A task force of Taxi Tnilustry ou-n-irs and operators has worked with City Staff to review tho Pro',)Ostld revisions,' The task force has unanimously rocaim-nanded a alLarn;ttiva to the Prohibition ✓ on transfers, allowing transfers only 1) after five years from the date of issuance, or 2) upon death or di:.Pbility of the per.mit, holder. Ti,IX 84-22 7.� :tt•}�� T11.rl 46 ^,r;ptr:rr;},rr 17, 1.984 P�,yc 3 The task force al no recurzr.%nded, by a split votr., that all lle:nding applications for permit transfers received by the City during the moratorium be pr.ocosred to avoid financial hardship to i.ndi.vidttrls who have made financial crranit:r..:nts. The Committee should acr-,sipt the pr rposr_-d 5-yrrar operating p,sriod for transfer elic3ibility %snel ;sirt.}1r,r.'ivr3 that rending applications received during the rrorator.ium new he 'rho r.-yr-Ar operating period will ensure that the prir:ary ;nrt.ivafJon for _.ntrrring the business is profit through operation of a }>fuainess rather th.,n profit through trafficking in taxi Per:rits. It will allow cperator:s to sell their huginr_sses or Pass them on to f:smily lipon retirr-nie_nt. The 5-year operating pr:rir,d will force marginal operators to Improve or fail. A nuinber of agrnninn-nts havr. already br.!ian r•ea(-hers hetwpen operators who want out and those wi.:rhi.ng to expand. :;any of there transfers appear consistent with the City's objective to "clr'an up" the industry by reducing the r,ir::lber of marginal operators. Same of these arrangements involve financial col%mitrrients which would result in substantial losses to individuals if the trAnsfer.s were not allowed. Litigation would be a probability. Authorization of this "clean up" processing is recorr:nc- ;ded with or without the proposed 5-year operating period for transfer eligibility. Concentration_ of Permits Concentration of Permits refers to the accumulation/or control of a large number of permits by an individual or group. Prior to deregu- lation and open entry the City relied heavily on a single large operator for the provision of taxi service. The largest operator's share of permits has declined since deregulation from 65% of the industry in 1979 to approximately 33% by 1982. The City should avoid the concentration of Permits in order to ensure a competitive marketplace and continued taxicab service availability. Perhaps the mast successful aspect of deregulation has been in the area of rate regulation. Under the current self-regulating mechanism, operators file and post rat.,-!s within a rraxirr.um !-ate set at 20% above the weigllted av3rai a Of rate f it irl�is- ion of pi?rmits with a single coi:ipany could auv>rar_ly affect co:nputitive pricing and rate regulation. The Committee should also be concerned about the other and of the spectrum, that is, concentration of p,irinits among the group of independent single p,srait owner operators. While ,n:ny of these nnovative ,:uni3etitive services, ,:conomies of independents operate i scale averagerfares.avinlfact,aesdhighr '.horbicantvratesdwereefiledubysin sotnehigher % -1-1, 1,U 6 • 2 2 _I :1.01n 96 f484 4 who f i as 60'. hi,ilif:r 1.1i,,jn avor,ige, the �,.d rat.f:s ;ss inuch rate of f,'Ire 0,-,(-.n i.ntry Mr-MOG l,, ;f.i.tute the Ir,;jyi;,mjrt City tc rai ),)I -ought little or no quographic fij.rvica cuv(--rage inc:I!iISO, little real pricing innovation, and little service. innovation. The City's ' expectations of single permit own,ar/operators to accomplish Lhesa things :-..jy have been too (Irnzit. '.(,me citins have rn,spondlad by im- posing a winfi-rium fleet give to !nsure service availability and innova _)ncnntration of perinits within this group should tion . -imiting cc ACIGOVIplish the uairso (.-nd by QffuctivclY encouraging d(z-valopment, of fleets *..:hila rr.taining the single porinit opr.-ration as ;-In avenue to begin a taxicab business. rho Col_jitteo should recommrmd ;2.,r.r-.n(]J.ng Council Policy 500-2 to limit concentration of permits as follows; "The process through which pel.inits are issued will limit the concentration of permits. !4o p(3rmits will be issued or transferred to any person, cot, -,pany, business, corporation, or other entity if such ,issuance or transfer would result in any permit holder having an interest in more than 40%,of the existing permits. No permits will be issued or tranferrad to any person if such issuance or transfer would result in single permit holders in aggregate having interest in more than 16% of the existing permits." Finally, Committee should retain the flexibility to issue limited permits as authorized by Section 75.0107 of the draft Revised Code by adding the following to Council Policy 500-2. "LIMITED PERMITS This Policy is not intended to govern the issuance of limited permits as authorized by Section 75.0107 of the San Diego I.l.unicipal Code." 1CHUCK WOOLEVER 4; too Anpclea iTimea San Diego County Despite Protests TuMday «May 17, 1983 Council O]Ks Moratorium on New Permits for Taxis By TED VOLLMER. Times Staff Writer If the meter had been running, rider if he wanted a receipt, "He the members of the San Diego City looked at me like I was crazy." Council would have ended up after Monday's rcxxion was the latest three hours Monday paying a small chapter in a four-year experiment fortune and. arguably, not getting with the taxis that began in Janu• very for. ary•. 1979, with the council's elimi- Struggling to come up with a nation of Yellow Cab's virtual mo- satisfactory solution to the gripes of nopoly on taxi i6ervice in the city. dozens of cab drivers who had at Since then, the Council has elimi• least that many opinions was a nated fare ceilings, seen the number monumental task. Whether the of cabs more than double and —it council succeeded probably will not was evident Monda} —attracted a be known for another year. very independent and vocal constit • What came out of Monday's tiency. meeting was a council imposition of vnsnimous Vote a one-year moratorium on new taxicab permits in the city so steps j An outgrowth of a committee can be taken to clean up the ( hearing last month. Monday's coun- industry and make it more rospon• cil session appeared at first to live to the community needs, require almost no discussion since Also to the chagrin of a few the earlier action had come to it on a cabbies was a new requirement that unanimous vote, they must offer a receipt to any What the council's Transporta- customer without being asked. One tion and band Use Committee had driver said the one time she asked a Committee consultant Chuck ring at the hearing was just one Wootever told the council that, of example of "this council telling the the 146 pending applications, only professionals how they should run 17 were far enough along in pro• their business when we don't even ceasing to merit an exemption from know what the hell we're talking the permit moratorium because about." those applicants had been notified that their were being pre• Councilman Bill Cleator, who pa - hat was required was pared and tillll that tiently chaired the council meeting formal notification and police in- as one after another the cabbies apWoon of their vehicles. either berated the city, the system, Woy comments, made or the council itself, finally accused after shortly after the hearing got under the cab drivers of bringing on some way, were quickly incorporated in a of their own problems. Cleator "baloney" motion by Councilman Vvaldo Mar• branded as the laxt•min• tinez, ute effort by some of the applicants One after another, cab drivers to thwart the moratorium. and prospective cat- uri:ers rose to But Councilman Mitchell. Wil- protest they had truned that they liam Jones and Mike Gotch ex- would be able to emLark on a new pressed concern that because the career behind the whet; as long as applicants had been given some they met the application require- indication from city staff that they ments. Others complained that they may eventually be granted permits, were never notified that a moratori• the council was not —in Jones' um might be impo;cd and should not words—' on solid ground." Eventu• N. penahzei , ally. the matter of whether some of Councilman Bill Mitchell soon the laic applicants might still re - became their ally, decrying the ceiv e a permit, was referred to the deregulation in the firs. place and Paratransit Adinmistration for fur• complaining that what was occur. ther review, t ' 1 U' t'Jir It•I le•r urt• t'uutret ► • • '� r 7Z6t/Na' y• z� '�' Panel backs freeze on taxicab licenses By Jeff Ristine and -Anne Krueger rnbrne P.,r; nYgvn A City C•aunt•11 carnrnittat• has approved a sevor,d wave of propimsed regulations for the San Diego taxi industry ' th:,t set a citywide rate wiling, lirnit the nurtiber of new ta%i ``,t•riniu+ that could he is. ucd next year, :end revom• rut•nd that the crnlinty setup a taxi driter examination pro, * din. Sr►c:a1 :txi driu•r• Piweing itr• st I.r;+41wrgt, Field this nn,ining w►re ur.,n,rri,us in s,:pp'rrt of the propimd eli,.r,l•,m. Tht clri::re s;,+d nnif,r,iu r:,r1 � N•uld eliminate t r,: a:itij by wtrtrU'1(.'vat, drivers. "You 1•t t 1.: op le out lit re aali.a.'r up wid dt,wn the line j IwOmng Wr the (•hi:IjK•st rut) 'i'natt s a lot of caroling r,�..ng an 'ttir pt•rple ttiat are out 1wre h+o: es0v are hurt. m,- " !.:.id ::,re: ;1;iirit. r. 11:Iver Ite the f'urt S:,nrn Cab I Co. 1•:►•i. Zt::n. it driver for Tox•n Taxi Co., favored the i ►a••�x;:•nun, or, pK•r:nia: "Th.y'vt got t+►let• a.. many cabs as the city will sup- port;" he said "They snauld have put that in three years ugc " I +-,.•; fle alsrt favored the ex:,tnination program. ,If a cut,ble dr•tgn't look bill.prescnlat,le, they ! fhould run him off." he said. Transportatiun and Land Use• CommitteeCtiairman Ed 1 Strutkitm ; Bald the panel's 4.0 vote yesterday would allow 100 or more applGi nt.4 currently on a waiting list to get Operating permits during a one-year moratorium, Any I applications received after 5 p.m. yesterday would be turned down, Struiksrna acid. Can.rritter vonsuhant Chuck We/ilever, hrwever, said III; interpretation o: tt:t Ott Wait that evert exirt!r,j: appli• br- out of lisek ai:hough their l,taivan vn the cants would waiting liyt would oc'•frmtm" in place. C�+unt iln.dn tivalda let, ot:.. whc made t:,: rnotiun to adap! thr feet-l:/tlons. said Sater IS, :,greed Kitt, Ltruils• 1'r::::mat,iy. as; further me s ciao- �r►:d:iar of the rota full ,:: rit+tita »,,u d r• re n,,-vvd to fore 'lit i.err, rest: tat council for K't,IKt Word of tat panel's artion a +, art-wh got nu: fast By for days end, abtatt 40 lx�rrons haditaken out applications I taxi pt rmfa, hcatii.g the 5 p.ir. deadline. 1 1 ' I Y i l N I City ha•n.e.1.. OKs 1-Ye-cir Mo rlaxi'0 r•i ri m On Issuance Of New Taxi Permits fly LORI %WISBERG M.-voloc ulf4-vtIve at; of 5 pill. yestur• few eomp;jnj(.s tharging its much as S-811 *too?, TR so. 1:01tp unin day to prevviii, a rush of applicants to for an pvtMit Whitiftf lift Of $2.50 a mile. The council, as ;,art of Its move In 6 move afirlm at correcting at• more this100 According to Struil:s- toward deregulation of the Industry legvd abumit in the taxicab Industry, in,%. ttiose. on tht waiting list as of 5 thrve years ago, lifted thethen 11-50- a City Council cc-intrillice yesterday p in, yesterday would not fall under a-11111c ceiling On fares. The counell . I m(PrAtorl. voted to imlost 6 one vaf f issuance the ;K.rmil ban. just just month elitninated the dual- drivers to um on the OKOW taxi liar. RcqueAuit for niore than .30 fiPrInIts fare system that 81)Ows MIU, %ert tnxdv y,-st,.rdav following the charge one rate for rides originating The propiiA moratoritm. 01ch corilfritjee action. k,c•cnrding to Par• at the airport and another fur all still mum be acted on by the full tiara Lupro the ciiy'a pbrntiarsit ad- otter parts of the city. A maximum Council. would give city officials minill,trator The, rite cm rend) iz-FOUs rite *of 20 purvent bthave ific a%orlige time to worh with taxi Operators and now 1wrinitt at Ifit, rate of 3 a fare level (Ur.-Vittiv exists for cobs drivers an a plan towkrd "weeding month. operating at Ujd1,C%h Fivid, out," as one councilinkn said. cab The committee yesterday b1$0 In an effort to upgrade standards: that driv- drivers who engage in unscrupulous voted to p%tabligh a citywide taxi in the industry hnd ensure as pricgil e-lijing. rate (,cfflng of 20 lo.rcol-rit above the ers are lm.-,wIvdgvalile of the city. =such .ort trips. and taking un• avero;e of all ft-tel 6:4 by drivers. the vvinmitte( asked that the (-iluntY susM1;nS tourisu on loij vr-lhan- f Tht vihximuni r,,,,e %umild jjn(,unj 10 institute a qgalifying test for taxi It ASO Poremary routes to dv%fiflat 611111 at 11.0 k trifle. Impro said. A)- driver ;,vrlr lit applivants. Yesterday's keflon by the counril's thoulbnitiFt drivers 0,arge 10'Reen astod that a o lwrevni discount on Transportation and Land Use Com- $1.20 and $1.39 a mile, there are a taxicab regulatory, mittee come after a number of cab, bles and taxi operators testified in support of limiting the number of permits Willed, arguing that deregu. %tion of the industry has contributed to a glut of cabs In the city, particu- larly at the airport. There are cur- rently $01 purmIts for taxis to *per- ate In the city. Drivers as well as representatives of the city's *,argent taxi m!rvicc, Vol - low Cab Co. told Council Mcink-rs that at long as c-41i drivers are un• ablo to make to decentlivirg, rom• platits about poor service will con. Unue. •'Me only way.pu're ruing to got AW Met for nisi - tors to the city is If you have drivers making an advquatt, living and you are the system to eliminate rlicing the ad apples," said r1lonald Swort- woW, of Yellow Cab, president Committee Mirmir. Ed Strulks- ma said that whilt, lit, supporU the otys current 008-en" system for i%YU. 'acknowledgli"d in; taxi Permits, be that a temItorary moratorium 10 needed to solvf, existing probleins. "You're A' riving the Falrit, thing.,, RmAsmd, sate "Y"t; caller want ho as the only ri-nfron.: tie prM.,lor,ni,• in your Tzt rammitteg, agret-d that if im- I '. / IIKLY,'► K 11011143 Ih hh•.nr, snA('h:,vn,,,n 14111,11.0 fb.,rd S1,31. idnI(GAN, Motor 110111317 M M•tM. riyut).M1tnr %AQ MIL1A:1. Af.m:,F,n�C 14siar s, wy.,lK'� 1cAL1'n ltt,'iNF;l� !'A,rf /ilnnnr/ N'ro(rr Sin Diego, Californf s, Tbir .day, April 28, 1983~ - _ Ttluphv,ne 294.3131 Page B-14 New rul.es for taxicab induoolfty THERE AHE sevcre prolik,ins with cabs and cab drivers in Sar, Mgo. Loud :era the complaints about fare -gauging. filthy vOilrOvs and cabbies who are sullen and sometimes doanrtght careless about their persotsal hygiene and their dress. This is bad for our town Often a cab driver is the first person a vis'.tor meets. Judgments are formed then and there on .+'hat i:ind of a place San Diero is and %hat kind of pv:'ple San Dietans are, Up until four years ago, the cab business was xeverely restricted. The City Council limited the number of cabs or, the sit cols and set the rates to be charged. But, in 1069. there, was a scandal involving the Yellow Cab Co., which had most of the cabs at that time. rod rucmbcr$ of the City Council, who Kere accused of hveepting political payoff$ In re- turn for looking with favor upon taxi rate increases. Then, in 197o, a lengthy cab strike was followed by the bankruptcy of the fellow Cab Co., then part of C. Arnholt Smith's ill-fated financial empire. Derquistion of many government•regulated in. dustries, like the airlines and the savings and loan industry, was then widely advocated. The City Coun• eil. urged by former Council Member Fred Schnau- belt, moved In 1079 to deregulate the taxicab Indus• try in this city. , It began by removing limits on fares and or, the number of taxi liccn>:ca issued. Competition would take the place of government regulation. The invisi. ble hand of the fret' ;market would set taxicab rates. It was b0i0vt'd tht• rn'..J: VFpat4c' profs-ssional cab• hies could pro.,;,:; aid the . %no couldn't cut the mustard would drop oast of the hifsim ss. Free en' teprise. ' It hasn't worked that way. The number of cabs has jumped from a!mut 400 in 1979 W almost PW now. And same cobbles who can't comfett arcusi:,g unwrupulmo pramic'er — pticc•gonging, refu5aig to take pasywnger$ on short trips, or driving long, un' neves%ary routes to dcoilnations. %list of ihv cott;pl:,ints alr!,ut rahu; tFrrtate at Liridl,ergl. Field. 'r,"r�:rc 1„np last'!: of taxi drtverf wait sometimes for hours to obtain fares. If a pas• sc'r,ger eks only to go as far from the airport as the Navai Tmining Center or Shelter Island, he might well be turned down as a fare or have to ride with a sullen driver. Plainly, the deregulation pendulum has swung too far. Some riew rules are needed. And the City Coun- eil's Trio n;cportatIon and Land Ilse Committee of• fc'rc,d some proposals to the full council this week. The committee suggests a one-year moratorium on issuing new taxi permits, a citywide taxi rate eniling of 20 percent over all the fares filed by drivers (about $1.60 a mile), and a taxi driver exam- ination program. We go along with these pro, a ais. The moratori- urn on ol,en entry Into the taxi business should be a temporary measure. We doubt that it will have much effect, In and of itself. Arid it tends to restrict competition. What Is needed is not new evonomic regulation of the industry but a now program of service regula- tiun Standards should be set and should be enforced by random checks. Drivers should be required to be i'lean and courteous. They should ,be required to take the shortest and fastest route to the passen• ger's destination. And their vehicles should not only be safe, but should be well maintained for.the pas• scngers' comfort and convenience. Licenses should I* sutcpended for failure to meet city standards of service. The public could help by registering complaints Lout drivers and vehicles. City inspector¢ should' t,tc•nme f4wognito taxicab paFsengers for a day. to check on complaints. There is no such program of inspection today, cxcopt for initial checking of drivers and occasional health And safety inspection of t el,icIes. A livense to ol*rate a cab for public hire is a privilege, not a right. The city should have the abili- ty to suslMnd cabbies and cab companies who are cheating or who are an (,mh,rm ,incnt to Ssfn Vic'go. K.. Zip THE SAN D1E0O UNION I 0 Tvesdoy, Moy 17, 1983 Taxi Permits: 1-Year Moratorium By LURI WEISf1FRG the ailments of this Industry." In addition, the council, after hear- sPottwrdtr,the Son t>kpaU*6 An increasing number of com• In$ testimony from several drivers, plaints have been lodged by visitors agreed to allow transfers of permits The City Council, following an and residents concerning the appear- during the one-year moratorium, often -emotional three-hour hearing ance and attitudes of drivers, some overturning a recommendation by attended by a number of taxicab of whom art, alleged to engage in the transportation committee to drivers and owners, voted yesterday such unscrupulous practices as price freeze permit transfer. to impose a one-year moratorium on new taxi permits as part of an effort gouging, refusing short trips and tak• ing tourists on longer -than -necessary De Bi 11 Cleator, at are Deputy Mayo eDr Bill to clean up the industry. routes to'destinations. growing crated with the pointg p The moratorium. which is retroac• ' tive to April 25, is intended to give While taxi driver and operators yesterday generally voiced their sup• lengthy testimony, urged the council to take action and not delay the mat• city officials time to work with taxi operators and drivers on reforms to port for the moratorium, many vehe• mently opposed the proposal to in. ter any further. We ve got too many cabs out correct alleged abuses in the indus• try and to weed out unsatisfactory elude in the permit ban the 146 indi• viduals currently on a waiting list for there, and we have to bite the bullet," he said. "As long as you all (cabbies) drivers. permits, issued at a rate of 15 a treat people coming into San Diego the way you do, I'll be'a•gin' you." Yesterday's action caps what has long been a thorny problem for the. month. When the council's Transportation The council yesterday also voted city. which four years ago moved and Land Use Committee voted on to ask the county to develop a taxi driver qualifying exam and to set • toward deregulating the taxi indus• April 25 to recommend a moratori• taxicab regulatory fees at such a try. As a result, the market for taxi fares has turned fiercely competi• um, requests for 47 permits were filed that same day. level as to recover full administra• tive. with the number of permits Several driver said they had in. tive costs. more than doubling since 1079. There vested thousands of dollar in pur• Later this month, the council will are currently 3,000 driven and 915 chasing cabs on the assumption that hold a hearing on a Transportation permit holder in the city. their permits would be shortly forth- and Land Use Committee recom• Attorney Paul Robinson, repre• coming. The council - agreed to es- mendation to establish a citywide senting Yellow Cab Co., the city's empt from the moratorium only 17 taxi rate ceiling of 20 percent above largest taxi service. said the morato. individuals who already had received the average of all fares filed by driv rium is necessary "in order to cure letter of approval for taxi permits. en. r .�- tee.,_= -.. _ - ---- - - — - - - - �::�•:•=' Talk force roc®mmends .limltin nu 'tuber of taxicabs in ' cit� By "ED WA1T � y troll' over We apparirrce sari condition of The mayor will now review the recom• cad'li !s unlikely tbit the rYcommendations of bv�Y s'.e.w�e. fails and over. drivers' knowledge of English mendauoA�, which his office would not release the task torte will become law without some A igedal task force appointed by Mayor and tamiliadty'with the city this week, and rhea submit some, version of revision and canpromise. Maynard Jicksoa to presgrtbe a cure for Cab owners would ppay much higher It" them to the City Council. Officials close to the no beam of the task torte's recor6en• ' Atlanfa's mucD•maligned faxiciD industry has for Wpectlons to help ttnance as many as 10 mayyor said that while Jack;on may not aQree dations is the certificate system. The owners recommended limiting the number of taxicabs new employee$'Meded to enforce the code. All with the Usk forte's toil report. he Intends to of all 1,400 Atlanta fazes —the number was through the use of New York Cite bone medal- faxieibs would fat painted the same color. move swiftly — possrbly qy the end of nest frozen under a temporary moratorium In May ior rons or certificates that could be bought. sold The taxicab industry has for years given week — to come up with final recommedet... — ould have 90 days to meet the code's new inherited• The to tho betel and convention Indus• lions for the council. standards. Since not all taus would come up J The city would give the current owners of try, to travelers and residents, and to the The report will go to the council with a to those standards, the number of opersting 7 t1 ianta's o,400 taxicabs a chance to buy eer• drivers themselves Complaints center one head start toward passr ge, since two intluen• tRich.ails would be reduced immediately. 1111 lllicsta for 1100 each it their cabs met new, drivers who do not speak Ensonand � ' more stringent standards. After that, the value find Peachtree Center, tails that are dirty and and Guthmane— members the task force, could tte`! thatthe onlyAy `thefCltqq Council Of the certificates would be determined by de$ unsafe, and a fleet that ls a loge that many which was chaired by real estate business and mayor. State police could revolto certifi- mind. In New York City. a medallion sells for drivers cannot tuna a profit. leader Richard Felker. • cafes held by taxicab owners who violate the more than 350,000. ' The problems have been studied and din• ' However, the politics of the industry = code, task tam members believe the quality The Usk force ol,officials and business. cased before, but ,knowledgeable City Hall and in particular the. dispute betweea drivers of service would Improve. , men. to a araapage meporandum delivered to officials said JacW , is determined this time t/ the mayor Tuesday. also proposed :trio con• to gat a new code enacted. and company otirners over where the burden ofreaulitioa should tau — remain. comolleated. gee TAXI.11A Covers Dixie like the dew Friday evening. October 31, 1080 ���• `. ter, t - TaXi Continueod from 1A "Maybe people will take a lot more pride. knowing that some day the certificate will be a thing of value," sold one member. In New Orleans, certificate$ that ononally sold for 1200 now Cost about f 4,000. one Task force member said. The group proper that Jackson form a new bureau within the Department of Public Safety, or perbsp a depart reau, Mont In the police buto rege % vehicles for lairs Amoaj the P Kgulattora the bureau would enfa= • vers would have to pass a written test to prove their knowledge of the cites street and landmarks, Drivers would also have to be literate is En" metropoOt a area for aft least SW nos could receive certifi cate$. Some City Hsu officials have already questioned the coo• sututionsuty of this ytov�Ion. and task force members recog• Aire that some of theft ideas may be rejected by city attorneys. • Radio -playing and smoking by drivers would be forbidden without passengers' peasaisslon. • A dress code for drivers. perhaps even) requiring ad. forts, would be established. • Taxis would have to pass Inspection twice each year, instead of the current onWtiMe regnlrement, and the Inspection tee would be $50 instead of SL fie fees woWd Delp► pay for the now inspect Perrnibors. and rates would have to be prominently dis• played In each fail. The recomn48dations do red discuss rates tests should Charge, although the talk force ass still address that question. Tee task force his been m�g since September. vtslting New Orleans and Washington and hearing from drivers, company owners and other Concerned CHIuna A 0 V_ 0 1 ME WASIIiNGUIN PUS7' j;g V ia Mying to U-Turn Iis Taxis' ISmage With New Laws By Michel Marriott it is easier to win certification there than in W&OL"w"VWsWfWra r any other Washington jurisdiction. Alexmdris officials say they hope new taxi- Critics charge that this has led to Alexan- b regulations that go into effect next month dris cabdrivers who don't even want to go to u produces gradual turnabout in a taxi in- " Alexandria from National Airport —a modest utry that has acquired a reputation a one of fare compared with a trip to Washington or e worst In the Washington area "When visitors come to Alexandria" said Reston. Alexandria's only hack inspector ro- celves hundreds of complaints about city cabs 1puty police Chief Orion Justice, "the first for grossly inflated fares and drivers who threaten and Intimidate their passengers, au- ing they see Is our cabs. And when they (the �0�m say' Ivansvare less than courteous or overcharge, At our city s bad tame•" Last month, after weeks of debate, the City gies Alaxandris a taxi troubles are rooted in the Council unanimously approved 11 pages of amendments to the city's taxicab code. Most of lei IAx rogulAtlon of cabs And the tact that the changes, all of which pertain to how cabs any of the gypsy cabs operating out of Na- are certified, are designed to give the city more final Airport carry Alexandrls licenses. authority to regulate the numbers of taxis cer- For you, critics have complained that tlfied In Alexanjria, any of 567 cabs certified to operate by Al- Besides the hundreds of cabs certified al- andrls are registered In the city only beau ready, applications are pending for mother 90. .-.--_.-_,. Mayor Charles E. Beatley Jr. and other offl- ciao have complained to police that that is too tnarty. Even some taxi industry officials support the now code. "It will strengthen the industry as a whole" said Robert Werth, general man- ager of Alexandria Diamond Cab. "It will bring stability to the Industry" City law now specifies that Alexandria taxis must do at least 61 percent of their work in the city, but Bentley says 90 percent of the � y-c rtified cabs do most of their work at Na- A major section of the new code, said Aahst- ant City Manager Michele Evans, is a provision that orders City Manager Douglas Harman each year to review the eit s taxi needs and approve certification applications on the basis of the re - view's findings. Applicants must explain why the city needs another cab certified. Hopes are that the hack inspector, provious- ly responsible for certifications, will be able to keep a closer watch on Alexandria cabs. In ad- . dition to the annual revIK Evans said, the code will limit certificate application to be- tween May 1 and May 10, And they wiU only be reviewed once it year, unlike the present I; procedure that accepts oppliationa year round , and reviews them monthly. j Evans said the code will give the city a , chance to weigh Its need for taxis against in- dustry demands to Increase their fiesta, She said it is unlikely that the number of city cabs wW grow as It his in recent yars. f The new measure, however, should not af. I feet current certificate holden because they will only have to seek an annual renewal, a i much less exhaustive proem "We hope to stabilize the over the next couple of years" Evans UK HISTORY OF TAXICAB REGULATIONS After Four Centuries of Taxicab Regulations, Is There Anything Now Under the Sun? Robert E. Samuels Planco Chicago, Illinois There seems to be a notion abroad that regulation of the demand - responsive transportation industry is a comparatively modern concept, at least one which had its origins during the last half century. Nothing could be farther from fact. We have the word of the U.S. Supreme Court that such regulation has been customary from time immemorial in England and in this country from its first colonization. Time immemorial is said to be that time when the memory of man runneth not to the contrary --that is, from the acces- si on of Ki ng Ri chard I 1 n 1189. It may boo therefore, that the regulation of hackman could be as old as seven centuries fn England and four centuries in the United States. It is clear that regulation of this service commenced with limitations on the number of coaches permitted to carry passengers for hire. As early as the beginning of the 17th century, King Charles I limited the number of licensed coaches operating in London because they interfered with his passage along the streets, as well as that of his dear consort, the queen, and the noblemen. In fact, he ran all of the haekney,coaches out of Westminster. During the Interregnum, Parliament enacted a law limiting the number of coaches to be licensed to operate in London and regulating them, and imposed a tax of 20 shillings to pay for the regulation. And in 1660 it tacked on a license fee of 5 pounds to pay for the damage the iron -clad wheels of the coaches were doing to the pavement. After several similar acts, a fairly comprehensive law was passed under George III which limited the number of licenses, created cab standings, and required hackney coaches to give way to persons of quality. Outside of London there was no limitation on the number of licenses. The London Hackney Carriage Act of 1831 was the first truly comprehensive regulatory enactment and, together with a similar act of 1843, is the basis for all modern regulation of demand -responsive vehicles. The act of 1831 regulated drivers and their licensing, forbade refusal of passengers, regulated hours and days of work, and prohibited abusive language, furious driving, driving under the influence, blocking traffic, blowing horns, and overcharging passengers. It also provided for the return of lost property and required a license in the form of a metal plate. It provided for cab standings, defined standing for hire and Ming for hire and forbade taking additional, passengers w�itFout the cons of the person first hiring the coach. It provided for fixing the rates of fare and payment by a passenger 4o called the hackney coach and then did not ride. 35 01 The act of 1843 provided for the inspection of coaches and horses to determine that they were fit for use as public passenger vehicles. It provided for drivers to compensate owners of property they damaged and to pay for dam g �'to the leased hackney coach. It also required Passengers to pay for damage that they caused to the coach. The act of 1852 requred a sign indicating the number of passengers that the vehicle was licensed and obligated to carry and regulated advertising carried on the exterior of the coach. During all of this time leasing of the horse and coach was the pre- valent manner of obtaining drivers, although to hear it now, one would assume that leasing was a 20th century innovation. One of the earliest lessors of coaches was Tobias Hobson of Cambridge, England, who always put the horse that he wanted the driver to take in the first stall -- thus, "Hobson's Choice". The question of liability to third parties for damages caused by the lessee's negligence became a matter of early interest, so much so that the act of 1843 provided that, so far as a member of the public was concerned, in an action for damages the relation between the driver of the coach and its owner was presumed to be that of master and servant, whether or not the coach was leased. REGULATION IN THE UNITED KINGDOM If one were to compare this partial list of regulatory subjects with modern U.S. regulations; it seems to me that one would concur in the adage that there is nothing new under the sun. A century and a half ago, there was a tax related to the cost of regulation, limitation of working hours, metal medallions, shared -ride service upon approval of the first passenger, regulation of advertising carried on the hackneys,, leasing, consequences of master and servant relationship, and limitation of the numbers of licenses. Every one of these is a familiar part of today s regulations. The turn of the century brought the motor car and its use as a means Of providing demand -responsive transportation. New areas of regu- lation, however, seem to have been limited to the vehicle itself. English regulation had been the product of parliament, but as time Passed, regulation was delegated to administrative bodies such as com- missions and, finally, to police departments. In the United States, on the contrary, regulation was a matter of local concern from the outset -- only a few States were interested, and those that were tended to limit their statutes to the subject of public liability insurance. In England during earlier times there was little interest in insur- ance because the only concern was with making the driver pay for damages to the property of others, and that meant the coaches of the wealthy tha,z he ran into. pedestrians were simply expected to stay out of the way. 36 Subjects of current requlatory concern are as clearly enunciated in the London Hackney Carriage Act of 1831 as in any modern municipal regu- latory system, but public concern was not demonstrated and regulation it demanded until after the first 29 years of the 20th century. The principal argument advanced to support major alterations of l existing municipai regulatory systems throughout the country rests on the specious logical assertion that, since there has been little change in paratransit regulation for a half century, ergo --it must he time for major change. But, to understand the basis for the lack of change and to demonstrate that it has not been the result of coincidence, one must review the events that produced, nationwide, a system of municipal regu- lation at virtually an identical moment in time and almost identical in form. THE MOTOR VEHICLE AGE The evolution of the paratransit industry began following the �( development of the motor car. That vehicle was the spark that produced large fleets, the first of which appeared in New York City in 1407 and �1 in Chicago shortly thereafter. The evolution of fleets was the product of the built -for -the -pur- pose taxicab that appeared at the time of World War 1. This coinci- dence, if indeed, it was a coincidence, for the first time mandated large investments in fleets, in order to purchase taxicabs and operating facilities and, in manufacturing plants, in order to acquire tools and materials with which to manufacture the taxicabs. Through very large investments, providers of paratransit services were able to meet the rapidly -growing demand caused by an'unprecedented expansion in population, prosperity, and demand for mobility. The expan- sion of fleet size became possible through the merchandising of a recog- nizabie color scheme; dispatching facilities, including private cab stands; and the encouragement of street -hail of easily recognizable fleet vehicles. All of this activity required larger investments in vehicles,' stands, telephone systems, garages, and administration. These, in turn, encouraged further expansion and additional investment. Built -for -the - purpose taxicabs, having proved themselves durable and efficient for city operation, continued to be used by the fleets and the ever-expanding mar- '.+ ket for taxicabs caused expansion of manufacturing facilities, which in its turn drew more investment into that industry. w The fleets prospered and filled the growing public demand. No one saw any reason to limit the number of licenses or to fix the rates of fare. Indeed, little thought was !liven to mandatory insurance. After all, why would anyone desire that when the fleets were so financially secure that they could have their own insurance companies? 37 e THE DEPRESSION ERA The happy hour lasted until 10:00 o'clock, Thursday, October 24, 1929, when the roof caved in. The paratransit industry with its millions of dollars invested in facilities in cities from coast to coast was faced with the turmoil of the Depression. There were 15 million unemployed, frantic, hungry people. There were bread marches and riots. Investment capital and customers of the paratransit industry disappeared. Transpor- tation providers of every sort were in financial difficulty, and their insurers filed for bankruptcy by the scores. Into this maelstrom, into the paratransit industry, came the first instance of free entry: competition of unlicensed and unregulated taxi- cabs. Anyone, literally anyone who could lay his hands on an automobile by loan, by lease, by hook or by crook plied the streets looking for pas- sengers, engaging in bloody fights over a passenger or a place on a cab stand. Each one would literally do anything to earn enough to buy food for just one day. The first experience with an open market for fares appeared. Each new entrant into the business would charge anything, what- ever he could get, and for the most part the charge was so small that mass transportation companies, unable to compete, were suddenly in mortal danger. Used car dealers would each day lease as taxicabs their unsold cars. Compensation for injured passengers and pedestrians was very rare. The people, the public press, the municipal governments, the provi- ders of mass transportation, and the taxicab operators emitted a great outcry for regulation. It was qenerally recognized that without protec- tion fro irresponsible competition there would never be a responsible paratransit industry. And, worse yet, if the existing conditions were petmitted'to continue, there might well be no public passenger transporta- tion at all. The economic condition existed nationwide at the same time, and pub- lic demand for regulation arose at the same time. As a result, municipal legislative action took place within the space of a few years. Its nationwide similarity was the consequence of similar public demand and similar background. Draftsmen of municipal regulation had available a century of English law and experience to take into consideration and a century -of American mass transportation regulation for comparison. The concepts of a regu- lated transportation public utility were clearly attractive in the circumstances. Public convenience and necessity became the criterion for the establishment of the number of taxicab licenses to be issued. Reli- ability became the criterion for the issue of licenses to an operator. Reliability meant not only that the service provider had the neces- sary equipment, management staff, and experience, but also that it had the necessary financial resources to pay claims for damages resulting from the operation and to pay employees a proper wage and replace wornout equip- ment. Clearly, reliability was the sine qua non of a proper transporta- tion system. And equally clearly, this could only be achieved if the rates of fare were fixed at a point that would produce the income neces- sary to provide these basics and, in addition, a reasonable rate of return on the capital investment. 38 So, in order to induce investment in this perilous venture, two things had to be promised: a reasonable return on the capital.invested and a limitation on the number of vehicles to be licensed. The leasing of cabs to drivers, which circumvented the relationship of master and servant, was banned. Leasing was the hallmark of the'inde- pendent operator and the unthinkable for the fleets. The ban on leasing reflected the public's abhorrence of any uncontrolled operation. In sum and in short, the public had rebelled against the irresponsible, unreli- able, and unregulated mess that had succeeded in bringing urban communi- ties to chaos. The concepts thus emerging in the form of a nationwide set of similar regulatory systems continued with little change or, for that matter, lit- tle desire for change for a half century. Public approval of the system of the 1930s seems to have been clearly demonstrated. if POST -WORLD WAR II CHANGES Upon the involvement of the United States in World War II, manufac- turers of motor cars turned their facilities over to war production, and for four years neither automobiles nor taxicabs were built. The romance of the built -for -the -purpose taxicab, as a sturdy vehicle capable of many years of useful life, proved valid. But by the end of the war they were very worn. The reconversion of the automobile industry was slow, espe- cially at factories that could produce taxicabs. Returning servicemen were given priorities for the purchase of new automobiles, and everyone bought one of them because, price controls to the contrary notwithstand- ing, there was very lucrative resale market. As war production came to an end the number of jobs available.to the servicemen shrank, and unemployment became a serious problem. As a conse- quence, for the second time in fifteen years unemployed peoele turned to the taxicab industry for employment. To quote King Lear: The wheel had come full circle". By the thousands, without resources, without licenses, with little or no insurance, but with an automobile, totally unregulated, they swarmed into the paratransit industry. As it had been in 1930, the political issue presented to the regulatory bodies was such that they were forced to abandon any notion of enforcing existing law. Not one had the audacity to harrass an unemployed ex -serviceman. Their problem was complicated by the fact that the licensed fleets were not rendering the full service expected of them because of delays in the delivery of taxicabs. So, based on the spurious premise that the situation would be short-lived, regulators decided to resolve the impasse by issuing temporary permits to unregulated taxicabs. This solution turned out to be an unmitigated disaster on every count. Immediately after the issuance of the temporary permits, the licensed fleets began to receive new taxicabs and to rehire returning 39 Elm ex -service -men who, previous to the war, had been employed by them. There was a surge of new operators without permits or licenses, many of whom never had been in the military or naval service. Regulation went by the boards. You couldn't tell one unlicensed cab from another. From this turmoil came the introduction of the assignment of licenses or permits and the leasing of taxicabs by permittees, the leasing of permits without taxicabs, and the leasing of both taxicabs and permits --activities that had been banned in many cities. As could have been foreseen, the final solution was to legitimize all of the illegal operators. FEDERAL REGULATION The most noteworthy regulatory activity after 1946 was the entry of the Federal Government into the picture. Prior to 1946 it was considered that the industry was purely local in nature. That view was reinforced by the decisions of the U.S. Supreme Court in two cases under the Sherman and Clayton acts. The Court held that taxicabs were not engaged in interstate commerce and, as a consequence, were not subject to Federal regulation. Repeated attempts by the government to have those decisions reversed have been unsuccessful. However, in the National Labor Relations Act, Congress used the phrase "activities which affect commerce," as distinguished from "engaged In commerce," which was used in the Sherman and Clayton Acts. Since the definition of affecting commerce was based upon the purchase of gasoline, there could be no doubt that the industry had finally slipped into the Federal orbit. Now, taxicab drivers are subject to the minimum wage provisions of the.Fair Labor Standards Act, although they are exempt from its overtime provisions, and the Department of Labor is involved in matters arising under section 13(c) of the Urban Mass Transportation Act of 1964, as amended. Two notable concepts of change have come.from the Urban Mass Trans- portation Act: (1) shared -ride in many forms and (2) the use of paratran- sit vehicles for a variety of innovative services, often initiated with Urban Mass Transportation Administration assistance. I have made this observation in order to demonstrate that I do not oppose any change, obviously there can be no progress without it. 'Equally obvious is that a great many of the recent changes have made valuable contributions to urban communities. My concern is that a major regulatory revision should not be justified solely on the basis of passage of time. REGULATORY REVISION I presume that I was given the topic of the "History of Regulation" with the hope that such history as could be recounted in the short time aliotted would provide lessons to ,guide ttie trend of future regulations. Surely, a century and a half of experience and development should contain some guidelines to avoid past errors. 40 J, ' I f, Even if one were to brush aside all regulatory background antedating 1930 there would still be much to learn from the events of the past half century. My concern, however, lies in such techniques as those of Georg Wilhelm Hegel, who in his Philosophy of History said: "What experience and history teach is this --that people and govern- ments never have learned anything from history, or acted on principles deduced from it. As Ron Kirby indicated yesterday, deregulation has already been banned from the lexicon. It has been replaced y r_egu_l_a_t_o_u revision. He also observed, and rightly so, that no one faults regula- t o� ns a7fecting safety and appearance. But, like many others, he left open the deregulatory topics ,of free entry and open market pricing. Unemployment is escalating at an astounding rate and the scene is set for a reenactment of 1930 and 1946. If the script of those times should be rewritten by regulatory revision of the sort suggested by some, and should regulators permit, or even aid and abet, an invasion of the industry by the unemployed, I fear that the result will be the destruction of reliable transportation providers. If whatever regulatory protection now exists should be removed, Ilegel will, once,again, be proved to be correct. Oliver Wendel Holmes in a different context once observed, "On this point a page of history is worth a volume of logic". Since the thesis of this presentation has been that in matters of regulatory concern there is , nothing new under the sun I thought that I would close with an observation concerning regulatory revision from The Spectator nearly a century ago: "The more impatient revisionists among nurse ves should reflect . i and hesitate. " C 41 I I - f 1 :., METROMEDIA NEWS, July 11, 1984 WTTG CHANNEL 5, WASHINGTON, D.C. (Transcript of a portion of the 10:00 p.m. news) James Adams - Co -Anchor Man: "Some people say the district is over taxed. Tonight people are saying the district is over taxied... just too many taxicabs. Channel 5's Angela Robinson reports on some tough standards Washington's Council of Govern- ments may•soon impose." Angela Robinson - Reporter: "What to do about too many cabs? There are over 10,000 licensed cabs in the District and complaints from the public about service are pouring in. District Councilman If. It. Crawford introduced legislation to the council restricting the number of taxicab drivers. He says complaints about drivers stem from over charging passengers, not knowing locations, and cabbies refusing to take passengers to certain areas of the District. As chairman of the Metropolitan Council of Governments, Crawford asked representatives from other areas, who may be experiencing similar problems, to support his legislation. But in Montgomery County,jor example, the climate is different. There are 344 licensed taxis serving the area. The county is authorizing 16 more cabs which will bring them to the limit set by the County Council. All complaints are handled by a review board and there are meters in each cab to determine the fare." Leslie Sherick - Montgomery County Devartment of Transvortation: "We anticipate, with the opening of the Metro Stations, as one thing, there will be a need for more cabs to service those areas." Angela Robinson - Reporter: You don't become a cab driver overnight in Montgomery County. You must first pass a four part test which includes map reading, county and state regulations, and a mathematics section. And, if you want to drive a cab for the Barwood Company in the county, you must go through another series of tests, an orientation class and a training program. Now if you pass the county test and receive a 75% rating from the Barwood Company then, and only then, can yop put this cab on the street." Henry Odst - Barwood Cab Driver: People get in my cab at National Airport, or any of our cabs at National Airport, and they're just ecstatic that there is somebody that knows where they're going so that they can get somewhere." Lee Barnes - Vice -President Barwood Cab Company: "We hpve an inspector who patrols the streets in a private car and patrols our taxi stands." Angela Robinson - Reporter: "Barnes says what works for Montgomery County might be the answer for the District. A limit on taxis could protect from an overload of unqualified drivers." 900 .i . • Exhibit 1 s .. a I f. f THI SAN 01100 UNION 0 T.W— Mor 171983 i f, Taxi Permits: 1-Year Moratorium By LORI %TISBERG the ailments of this Industry." In addition, the council, after bear. WW14n,The soONpow An increasing number of com• plaints have been lodged by visitors ing testimony from several drivers, agreed to allow transfers of permits The City Council, following an often -emotional thret•hour hearing and residents concerning the appear• ante and attitudes of drivers, some during the one-year moratorium, ` overturning a recommendation by attended by a number of taxicab drivers and owners, voted yesterday to impose a one-year of whom are alleged to engage in such unscrupulous practices as price the transportation committee to freeze permit transfers. moratorium on new taxi permits as part of an effort gouging, refusing short trips and tak• Ing tourists on longer-than•necessary ' Deputy Mayor Bill Cleator, at one , • to clean up the industry. routes to destinations. 'point growing exasperated with the The moratorium, which Is retroac• tive to April 23, is intended while taxi drivers and operators lengthy testimony, urged the council to take action and not delay the to give yesterday generally voiced their sup• mat• to any further. city officials time to work with taxi operators and drivers on reforms to port for the moratorium, many vehe• mently opposed the proposal to In. "We've got too many cabs out correct alleged abuses in the indus• elude in the permit ban the 146 indi• there, and we have to bite the bullet." try and to weed out unsatisfactory viduals currently on a waiting list for he said. "As long as you all (cabbies) i • drivers• permits issued at a rate of 15 a treat people coming into San Diego Yesterday's action caps what has month, the way you do, III be'a•gin' you." long been a thorny problem for the %t o the council's Transportation The council yesterday also voted city. which four years ago moved and Land Use Committee voted on to ask the county to develop a taxi • toward deregulating the taxi Indus. try. As a result, the market for taxi April 23 to recommend a moratori• um• requests for 47 permits were driver qualifying exam and to set taxicab regulatory fees at such a fares has turned fiercely competi• filed that same day. level as to recover full administra• tive, with the number of permits Several drivers said they had in. five costs, • more than doubling since 1979. There are currently 3,000 drivers and 915 vested thousands of dollars in pur• chasing cabs on the assumption that Later this month, the council will hold a hearing on a Transportation permit holden in the city. Attoroe) Paul Robinson. repre• their permits would be shortly forth- coming. The council agreed to ex• and land Use Committee recom• mendation to establish a citywide senting S tllow Cab Co., the city's largest taxi service, said the morato• "in empt from the moratorium only 17 individuals who already had received taxi rate ceiling of 20 percent above the average of all fares filed by driv rium Is necessary order to cure letters of approval for taxi permits, ers, .• s ... .-.....-r....... �.r..-gym•... ......-« ` MKest�ern airlines • 3 ! December 7, 1982En 83 ---- The Honorable Margaret Hance s , City of Phoenix 251 W. Washington Ave. Phoenix, AZ 86003 i Dear Mayor Hance: I'm sure you. have received a great deal of input on the tragic deterioration of the taxi service'at Sky Harbor International Airport since the deregulation of that industry. { The horror stories that I have heard 're beginning to have their . • effect on our community. I have recently returned from a travel in- i dustry meeting where this "UNHOSPITABLE PHOENIX", topic came up and I became acutely aware of the negative effect on F.I.T. travel it is having on "The Valley of the Sun". Now, I am doubly concerned when I read articles such as the one in the December 6th issue of Travel Age West which is circulated in 7 to 8 thousand travel agencies in'the West and probably 10 to 11 thousand agencies covered by its sister magazine Travel Age East. It is imperative this situation be addressed at the earliest possible moment to restore confidence and respect back to this very important part of the tourist industry which directly effects our beautiful valley. arS erel ' loe /011 i Ronald A. Vange� District Sales Manager RAV:lr cc: John Marks, PHX & Valley of the Sun Conv. Our. Jim Haynes, PHX Metropolitan C of C Lex Byers, Scottsdale C of C Jeanne James, AZ Hotel A Motel Assoc. R. Hathaway,, Acting D, ._,of Tourism Arnett, ltwo fellow Cab EvNeRoK 'bbit----- 3443 North CeMal Suite ttod PhoeMx Arizona 85012 ' 1. z lrak>ing Taxis at Phownx Airport Requires Caution E'NOL NIX — Coma taxl since deregulation — and an Transportation, which has drovers are turning the usual alrport•imposed fee of $300 been maintsining reliable western hospitality of this per cab — took effect Mat on -call service, area Into a hassle for transfers arrriving at Sky July. Fares are for example) ( p ) S5 Harbor International Almon. Alternative service has been per person to or from People have been hit-or-miss. with no signs Scottsdale hotels; $6 tb The complaining about unfair posted and long wafts. Points In northeast Phoenix; taxi rates from the airport An exception Is Sky Harbor and 89 to Pointe Tapatlo farther north. Rates are Paradise Adds Diverse Destine one higher to private residences. CULVER CITY. Calif. — round-trlp air fare from Los Travelers arriving at Paradise Tourt. the Angeles on British Terminal One should call wholesale tour division Caledonian Airways, 602.275.8501 for pick-up started by Cardillo Travel Systems this year, has continental breakfasts. sightseeing, a fourzday (the wait Is usually no more than five or 10 minutes). In added Casablanca, London Underground and Red Bus Terminal Two. there Is a and Las Vegas to the pass for use In central podium greeting center at destinations It serves. London, and a car rental carousel N1 In the baggage The wholesaler is packaging package. area: a similar set-up in one -week tours to Las Vegas packages include Terminal Three Is at the Casablanca which start at three nights at either the bottom of the escalator. $999 per person. double. Landmark or Maxim hotels Clients who still desire taxis ,ncluding round-trip air fare and round-trip air fare from should be advised to take from Los Angeles or San Oakland on AlrCaf. They only metered cabs. Drivers Francisco. six nights at the start at $99 midweek. $129 whose.cabs are without beach resort of Mohommedis. continental on weekends. per person, double. meters and post minimum fares (often In small letters breakfasts and transfers. Royal Air Maroc Is the Contact Paradise Tours. on the door or window) have transatlantic carrier. 5701 Slauson Ave.. Culver City. Calif. 90732. been legally charging minimums of $10415 for the London packages, starting Telephones: 213-649-6160. five-minute ride to at $838 per person, double. 800.421.7338 in California; downtown Phoenix. which is include accommodations. 800.421-7337 elsewhere. $51n a metered cab. :•h 44 . V T .1641 r1L . PROSPECTO T s a�So� motel in fabulous feceatio nal �t o 260 rooms. (matly � >kitcl NcQu t- ,�r..,1.. Vr"000x AthlftI Club .- rKtis and -Was....•• M*Aole bus �is PACKAGES1 f3 11_myto,�1?/17I/Z��ti% VALMSE/►p 3x•J.ts:.• t:. » i.�•:: ids•% �• r1!' ;.s.:At *Lah.00a•sr. PW us .�,. :'` •• ++,' =•r• , �; : .tit ... off 1 F �; S3.38 Z .. ;• .. ,•.: t: ' • • . ' �" PO. Box 1698, Park I r' i , Sgnatt . p3pector t6 tnterworld to Add Tahiti Next Year MARINA DEL REY — Interworld Tours here has added Tahiti to Its all. Inclusive holiday packages for 1983. Priced from $680. the tours Include seven to 10 nights' lodging on Bore Bora. Papeete and Moore&: most meals: and sightsesing. The wholesaler will continue to market its tours to Couples and Hedonism 11. Jamaica; Couples 11, St. Lucia; and Candun/Cozumel and Puerto Valiarts/ Mazatlan. 'Everything Is included, and tipping is not permitted; Interworld Tours president George Brauer points out. All tour prices Include accommodations, most meats. wine, nightly entertainment, and use of sports equipment and facilities. Air fare is extra. Contact Interworld Tours, 300 Washington St.. Marina let Rey, Calif. 90291. reispnone: 213.822.4490; 115.888.4912;714.953• 1128! nr 809.81594I829- 3- / 1l+ursday. Nuvvmbcr 141981 r Phoenix :will Study � taxi rules •, By Josepph A L&Plsnte Vic SuR .. d1lo oenix Mayor Mat) - four Hanee requestenesday that the city was to contrecently deregulsteindustry because onting problems ovetaxi fares and cornion at Sky HarboorL '• ' mayor asked thspecific issues. be = • • . Whether the. ai{y : could propose a redom• : 'mended rate strucWto, �. for taxis and limousines, Catfish accepting such totes could receive ape - clot designation and pro - (cited parking spaces at 's airport terminals, - e r •. a Whether additional • f means of transportation. : including express bus trips. between the sit - port and various loca- tions in the city could be • ; provided by a partner- ship of the •city and • hotels. • e Whether the city : should be more sggres- ' live in taxi•rste control •, within the limitations of Zir City -MAW And •:•antitrust lawn• e Whether special leg - illation by •the Arizona • Legislature could A- ',• 'fate some of the probe terns. L :- • • The le illation a imr• nated all regulations for • taxi fares and entry into the tali industry. In response. the city : has attempted to regu• : late taxis by corrallrn them at the airport and • . • allowing only a certain i : number of them at the •• 1; terminals. Taxis are r eharsed $300 for a per- mit to operate at . the airport : Tourists have eow- vllnrd that tali fares in Phoenix are higher than In other cities. ' • 12,20 drivers hav,. : complained that limou- sine operators have • taken fares 0*81 from them by ignoring an # • airport regulation that requires the limousines to pick up only passes- ``ers with whom they heve made arrange - in nts• ! "In e y opinion de- ' • regulation has proiueed Incredibly negative im- . yact$ on the hospitality • industry in Phoenix and : our national image as a : good place for conven• } 'good and tourist visits• i • tions l Hance wrote Wednesday in a memo- randum to the council. The results of the, f study should be re- Crted to the council no' o. than Dec: S. she •;s said. r T� 4 10, i� A 8 The 8eatNe Times EDITORIALS 1984 Oke-&attle.0nies.N INDEPENDENT NEWSPAPER Poarrdidilpgrrrt lo, J89G .. Aldo* f. Bl"hO6`189G�1915 C.' B. Blttbrn, 1911.1941 Elrttr' B Todd 1942.1940 W.1i, elrllva. 1949.1967 John A. Blethen. Chairman of the Board W. j. Pennington. President and Publisher Junes B. King. Editor and Vice President Herb P. Robinson. Michael R. Fancher. Editorial Page Editor Managing Editor . TIME TO WAKE UP Nightmare of taxicab deregulation must end THE SCENE at Jackson International Airport described by reporter Bill Gordon in The Times Friday is an affecting recreation of the nightmare that deregulation of taxicabs has become. The city and county deregulated the industry nearly five yyears afro believing that consumers and cab drivers would bertefitrom a free -enterprise system and spirited competition. They were wrong. Taxicab rates fluctuate erratically and in many instances take advantage of unsuspecting consumers. Some of the cabs are shabbier and so are many of the drivers. New safety standards set by the city are administered by a three -person team in the Department of Licensing. Consumers aren't the only ones suffering as the pathetic airport scene attests. Deregulation substantially increased the number of taxis operating in the area, but the demand for services has not kept pace. Taxicab drivers are living in their cabs waiting patiently for hours forjust one long distance fare to the cites The $25 fee they command can't compete with the $4.95 ride in an airporter bus. Three people sharing a Cadillac limousine would save money, too. Free-market forces simply have not produced the expected abundance of customers or swift service in clean, safe cabs for competitive prices. At the airport, the first cab in line gets the fare — the customer isn't allowed to do any "comparison shopping." Perhaps in desperation, the city and county have turned to the Legislature for a solution. Sen. Ray Moore, D-Seattle, is prime sponsor of a bill that would make the Utilities and Transportation Commission responsible for regulating the industry. The bill has passed the Senate and is now in the House,Transportation Committee. The commission probably Isn't happy about this solution, but It Is better than allowing things to continue as they are. EVANV CURIOUS VIEW ■ I ti R ti st ci rt T st w pt st ar or m ha At pe nu 2 ,° A- 0 .-. CITY J :611 U:Fr.0 rmr trq•, DATE U ::ay 11, 1983 TO Honorable Deputy Mayor and City Council racw , Transportation S Land Use Conjnit•tee Consultant %U&JOCTS Taxicab Regulations On April 25, 1983 the Transpr,rt:ati.on and Land Une Co;;:;nittee reviewed the final report. "ht:t.t ct•s of Taxi Rt:gulat:ory Revisions in San Diego", considered staff recorrt;;t ndations and heard public testimony. The rornrnittee made a number of recornmanda- tions to the Co+incil including establishing a moratorium on the issuance of taxi permits, beyond t:ho*e on the waiting list ` as of 5:30 p.m., April 25, 1983. On May 9, 1983 the Coc.;nit.•tee discussed the matter of transfer- ability of taxicab pm.rinits and revised its reconuanndati.on re- i garding the tnoratorium. The Committee recommendation is to halt the issuance, transfer and reissuance of all taxicab per- mits for one (1) .year effective as of noon April 25, 1983. ' The committee also reruast:od a legal opinion from the City Attorney's office when,the matter is discussed on May 16, 1983. A summary of the major findings and conclusions .of the Corrnittee follows. t Findings 1. Number of permits Citywide increased. i The number of valid taxicab permits in San Diego has in- creased from 409 to more than 850, an increase of over i 100%, since taxi regulatory revisions were approved in i 19 79 . 2. Numbers of Permits_ at the Airport Increased. The valid taxicab or:iits at San Diego Inter- � he number o f 1 nationnl Airport. has incra-v;.?d from 396 to approxiwAtely 600, an increase of noro than 50%, since taxi regulatory revisions were approved. i -2- 3. 1AdWiUY-WidG 0.1nod Whi 1-co f: i V i t -Y b. Between 1979 and 1980 vehicles increased by 30; but r-ach vehicle provided only 85% of the service it provided in the previous year. 4. A ve r f-F-1 I u t 11 J z a t i o n d e c.) -i-n WUre 50% of all taxi vehicles ware in service at least 21 days out of- 31 in 1979, half of the larger industry were in service no more than 18 days out of 31 in 1980. 5. Decentralization has occurred. The largest operator's share of Permits fell, from 65% of the industry in 1979 to 33% in 1982. 6, kiL n9.1 h. - aave boon voided. - Taxicab rates have increased 47% for a 5 mile trip while inflation increased approximately 51S during the same time. 7. s have been f i led by some. while 91 to 89 percent of all vehicles have continued to approximately operate at the lower end of the fare spectrum, 10% have filed rates as much as 60% higher than average. have been received. • Visitors, residents, the Convention and Visitor's Bureau registered complaints regard- and the Port Conunission,have and ing the pricing confusion, overcharging, appearance attitudes of drivers, condition of caba and image of the• Ci ty. 9. a Taxi service innovations through competition have only and little real pricing innovations partially been realized havd been produced. 10. Little or no increase in total SI004raPhic service coverage to outlying residential and generally little increase has (There is no evidence to suggest that areas resulted. taxi service to the City's ethnic minority areas changed 4, significantly..) 11. The MU Committee dnd the Port Coligmission have held niumgrou-S separate hearings regarding resolution of taxi problems in the City and at the Airport. The City Council has im plemanted recent revisions and recommended actions to the Port. (.-ejnc In-, i onsr 1. Pis iv, t.n,,tr:r rt)nfin; ion, nroinpluir,1.ss .,nel e,ve,s:,:Iinrijin(j ) j,,va . rcrat t cd from trho in Ojrl nim,fieer of. ,: sbn in rr.,n- junction with.the imp)nww-ntal.ion of variijb1a prki.ng Lnd removal of the maximum rate of fare. 2. Variable pricing, with no maximum fare in conjunction with the traditional first -in first -out taxi, ling: ;ystem, results in random oxcessIve fare chartj*s to unnussp%cti.ng pas srsngeers. 3. Crowding by taxiarbs at high volume points such as the airport results in disputns among taxi drivers .*end betwogn *drivers and rassongers over short trips and fares which creates the potential for a1tr7rcnt;ie)ns and thrent:r:ns one of the City's major industries, t cur. i nm. 4. There is a need t:6 halt the issuance of tA-Xi pnrsnits for a period of up to one (1) year during which time recent regulatory revisions are implemented, Pert District/Airport crowding solutions are determined, and additional measures are considered and implemented, including working with the industry to reduce Cho number of un:3.0-isr,,,;t•ory drivers. Recossan,;nda t ions 1. That the Council impose a moratorium on the issuance, tranfer and reissuance of taxicab permits effective noon April 25, 1983. 2. That the Council request. the Board of Supervisors to develop , and implement a taxi driver qualifications exam and provide for an in lieu'taxi driver certification proyram to be administered.by the ,Industry. 3. That the City Manager participate id development of the above program. 4. That the Council concur with the City Manager in setting paratransit regulatory fees to recover full costs. S. That the Council amend the Pas:atransit coda to require that taxi drivers offer a fare receipt rather than provide it upon request. 6. That the Council reestablish the maximum rate of fares at 20% above the City•-wicIG weighted average when that matter comes before it at noticed boaring on tSay 31, 1983. CHUCK WOOLEVS;R Ci9/Mao Dj r. d r s Prepared bw J. M. Chernow. Ropro senting THE HOUSTON TAXICAB COMMITTEE Prepared December 7v 1983 LETTERS FROM CONVENTION ! VISITORS ASSOCIATIONS IN CITIES THAT TRIED 'OPEN ENTRY' WITH THEIR TAXICABSt • 1. SAN DIE00 - 9/29/83 2. SEATTLE - 9/22/83 i { 3. PHOENIX - 9/23/83 ' 4. INDIANPOLIS - 9/26/83 ' .S• ATLANTA - 9/27/93 ` 4 .._..'._' - _{.' _ ._ '?(fLiT,✓eEicYJu-r)�G'tii sf.' -' - _ _ rr. s } l y ' + J f, r 7J ,T SAN` VIGGO CONVENTION & VISITORS BUREAU Septaniber 29, 1983 (7141 232.3101 1200 THIRD AVE.. SUITE 824 SAN DIEGO, CA 92101.4190 Mr. J. M. Chernow ! Houston Taxicab Committee •-•' g: Post office Box 66287 • Houston, Texas 77006 Dear Mr. Chernow: The San Diego CitX Council dere lated taxicabs several years ago. The result has been chaotic and negative. The theory was that the tree enterprise s stem would best be served if cabs f were alloqe'd freLe entry* ey a an automobile that bas cally was mechanically sound and if they would pay a small fee for a license, anyone could go into business. The concept was based on the belief that the marketplace would control the industry. The low quality operator would go out of business because he would not be patronized. The customer could barter to obtain the lowest fare. This has not proved to be a satisfacto olic The main reason s that mos cabs operate from our airport. Tney queue up one at a time so that the customer pretty well has to take the first one in line. In addition, the open ntry keeps the number of cabs at a high level, with many problems created. As a result of all the difficulties, the CitZ recently declared rMorato on asu n new Ilcenses. This has improved the situation. We are monitoring all p ases for future action. I would therefore recommend against deregulation. Attached is a letter sent to our Paratransit Administrator by representatives of the tourism industry. I think you can see from the length of the list that we have experienced many ` problems. Sincerely,/ Dal L. Watkins Executive Director DLW/bmn Encl. ! cc: Barbara Lupro Leonard E. Rolston � r f SAN DIEGO CONVENTION &, VISITORS BUREAU tom. 16191232.3101 12(JU THIRD AVE, • SUITE 824 SAN DIEGO. CA 92101.4190 April 20, 1983 Ms. Barbara Lupro, Administrator Paratransit Administration • Office of Financial Management 202 C Street, Mail Station SA San Diego, California 92101 Dear Barbara: At your request, we held a meeting to discuss the problems faced by the touris:h industry with regard to taxi service. Present were Harvey Keating, president of the Hotel -Motel Association j (HMA)f Warren Swil, executive director of HMA= Steve Carlstrom, president of San Diego Harbor Excursion; and Gina Cessna, Al Reese and myself of the ConVis staff. The following are the problems as we see them, in order of their importance: • 1. Safety r- although no complaints, appearance makes people worry. 6 2. Attitude 3. Overcharging • Y Y 4. Appearance of the cab 5. Appearance of the driver 6'. Lack of familiarity with geographic area 7. Lack of familiarity or knowledge about points of interest 8. Poor visibility of cab number and driver identification ar in vehicle •9. Lack of simple method to pass along compliments or i complaints regarding service i, - __.__ ,i w ii� • �r, t I ;f f� Barbara Lupro Apfil 20, 1983 Page 2 Although we were not asked to suggest solutions, we agreed that the following should be given priority: 1. Qualifying taxis : 2. More thorough and frequent inspections 3. A study to determine ig theme, is a need gpr. a,ddit„tpya a:I sery c 4. Stricter enforcement of driver and vehicle standards S. Stronger disciplinary action against driver violations it is interesting to us that residents and visitors alike are c mplainina about the taxi service in almost aduAl ntumm erQ_ I ! wo feel some type of management should be available at heavily f traf£ickod areas such as Amtrak and the airport to help solve the immediate problems. Please call us if you need additional information. Sincerely, r Dal L. Watkins ! �t Esacutive Director Dr.W/bmn bcc: William A. Allen Harvey Keating 1 Warren Swil Steve Carlstrom Gina Cesena j Al Reese c fly a, i 14 t i I 1 _ _ -- I l s L� The Emerald City September 22, 1983 J.M. Chernow Houston Taxicab Committee P 0 Box 66287 Houston, Texas 77006 Dear Mr. Chernow: The reason I am writing is that we heard from my colleague, Mr. Len Rolston, about the possibility of deregulating Houston's taxicab service. In this area, we have two taior Aroblems as far as conventions and tourism are concerned. One of those problems centers on the fact that half of our hotels are union and half non -union. This creates problems with city-wide. The other is the fact that dabs deregulated. Our taxicab situation is extremely expensive to the customers, confusing, and because we do not have any sort of re ulatio for quality of nab and quality of driver, this situation s causing us major problems. Yellow Cab and FarWest, who are fleets, charge $16.00 between the airport and the down,own area. The 1nAenenAents have a free license to steal (-f which there are 9QQ)„and they ;an charge as much as $50.00 one way. Our international travellers are trapped when they come in because the flapta An net atag at the airport, there ore causing us major problems. I am a firm be3i.ver in free enterprise as long as everybody pays the same. I'd hate to see your fine city get a black eye. quit. t 7 t . but the legalese is extremely Selyttl King County Convenand Visitors Bureau 1815 Sewmh Amie/Seade, Wnh now 98101 /M* 447.7276 - 1 i -- — — --� t�r �_y,:y� � .+k.4 �.. .:r,ei:i+r.r.. •ear1::,-a:w. ' -n _ .. at2 R.,-'r+rt--rinRr -n. r, ..rz.. .. r . ...�...,. , , '-- j 1 ' -,: J.M. Chernow Page_ Two H In addition, our papers are -having a ha da when complaints f come in. The situation is cans nx Problems with some of our { meetinix planner who are coming here to look us over for future meetings. Think twice before dereaulation is Passed in your city --it could have an 4dverse imnant on your total system and tourism objectives. I'm sure you'll make the right decision. r ncere Bus man Executive Vice President • BB:ca , *as Leonard E. Rolston �j I 41 fI j fi { 1 i R its PHOENIX a VALLMY OF THE SUN CONVENTION 8 VISITORS SUREAU September 23, 1983 Mr. J. M. Charnow Houston Taxicab Committee P.O. Box 66287 Houston, Texas 77006 Dear Mr. Charnow: It is my understanding that Houston is currently considering deregulation of its' taxicab industry. Since Phoenix has been ere ulated for one Year now, I thought you might be interested in our experience under this system. I suspect is also the case witn other cities v erai..n ii, o -Aw- requiLatea environment. in Efia gxact_QVqaajtr, Our experience at Phoenix Sky Harbor International Airport best illustrates this .� point. Prior to deregulation, approximately 100 vehicles serviced the airport on a regular basis. Subsequent to deregulation, approxi- mately 300 vehicles have been servicing the airport, in bpite of an annual permit fee of $300. To accommodate this increase, the airport established a holding area providing a first-in/£:zst-out i pickup system. Because there were far too many ;:axis for the amount t.f business available, the operators started cha:cing higher pr ces and there were widespread complaints of price gou7ing. In addition, because open entry truly was open, there were ii number of independent operators whose Rersonal appearance and ptifession- +„ alism was an embarrassment to our c tv. �1 =i 14 4455 EAST CAMELBACK RD., SLOG. D. SUITE 146 • PHOENIX, ARIZONA 85018 • (602) 952.8887 Z J 1 i r_ 7 t j 9 , - I i i U I : � i I I • i I s I i , • i I I I Page two On a positive note, in the paet few months, a number of steps have been taken on the part of the city to improve the situation. The market has begun to find a reasonable level, and we are optimistic about the future. Suffice it to say, however, oar community's image and pocketbook did suffer by the negative impact experienced t year oJ—dereaulation. If you would like further information from us on this subject, please let us know. Sincerely, Cl;,h, A. Mazks President Jx/jr i 1 r it j F wo- o Y 1• . 1 I. i ' IYrr. M.N MAY(R tA1M:Y�J MMI�MIKI t0 1, !a!'wr nowt Jn: l ia>I.Ai i (Writ 9:► Iwwrr.�r.� I •alontA aK(tl .. t..t«VrINW /«Iww ' •t/V NNCtiH r.r./rr•t.1MMtrrrn •lNAstttl •+t1V IMM Iw M •R M NorrARI'lA J .... tr.l..rrn•1. Ir -KH1% i M; 4 Wit LIAM SHARMA". JR Yrrl In.r. trtn..r •a D•'fOV�iF LOat IMl'Y•tw'r•rl 1. •1,1044101 101,27M Beano 0/ OlatlTOss DAV t ADMIT(% war arrw /.tYrr. AA%CV I. SL0r"X0W% ••DAV BepV/ so 1.44LOINOW% Ir•t.+rlwrw rr Ytlr 10111011. In . «II.1•fw«r• XIN% S CHAR. / 414 SRITT D DAY�IK INrw •IDWARDC DAVIS trt..l.bll /R%9$T COAL -= IIfl/ssoY R glNOtaM. Jn •nor i vt«h I.Wtwpt— TOY J is owl FAWN Ir l..•t.ww M sonNARY S aARttTT _ 1.. tr•r.w awww.r ••STArtIr M 04165.Is w„« rl.t..rrr• MM'aLY OItltV RT%atYAM w arrt r nAVDM/N at'THRIE TNRIt • M..IW •WItt1A41. MAC •W;tl1AM t. NARRttt M.r•r�s tour.. )Aes MAaan sOttsl MARTIN 'MARRr MAVII Ia/1Yrir tMt.tyt4 t •UL HILL JACK JOMV/T0% /r lblr.rrr.r •NNRV M S19a U.rtaNP,r� TMDMAs W LATTI% uxct uvlYasTox KM a MrA%DReW DO%ALO 1146141"swis. Nor M XOORI Ayrr•Mtrrrttrnw DAvt MORSIR ,MaaN,aWr� •AL PARRIS .pAlr t•. LA1444 ►AR�2 XMIN N. Alto III J.1 tlr rt..rrart STAN I; rlt"ll w Irr W soust T, SASaOWITS •etArroMLTo%I trwrITT 'S atsAR0/ •/at1D 1-0 TT 4 ylATO AC • 'L.:: T4 A: )AXIS W. TOY/r «r ar« LVU TWILIT LIGIALw:i YARLMtA� `=%D• M TOM YA� Sao rou" "MOAN oottttoa MUST W DUNDAI.Is SILLY U. /0aa � +tW�WrrwNwnwwrtat«rrN ttwtwY,Tla y GREATER OUSTON ZURVERO 8r VISITORS COUNCIL 3100 MAIN $72E11, HOUSTON. TIXAS 77002 • 17111 S23•S050 November 26, 1982 Msa Rudy go Bruhn* Vice President Yellow Cab Company 1406 Hays hhouston, Texas 77009 Dear Rudys 1 was in Phoenix .•tint week...and while there, learned that for the past six months, taxi service had been operating under a de -regulated basis* aece was unDelleva rvsDly. eeerly handled. It was a topic virtually daily in the newspapersr.aand massive steps are now being undertaken to try and bring the situation under control again from a regulated standpoint. Arrivals at the airport had to barter with cab drivers regarding where they wanted to go and what they were going to be charged. There was absolutely no consistency to rates000and persons unfamiliar with the Phoenix/ ScottsaoiA geography were virtually helpless when trying to determine what it would cost then to take a cab from the airport to the Scottsdale area. Cabs were charging such ridiculous rates se a flat $10 with the flip of the flag, plus whatever rate showed on the aster. Their rationale was that the airport charged them 0300 for a license to work there, and they had to recover it as quickly as possible through inflated charges. LERs lr enclosure CorAIlly, onard E. Rolston, CAS President and thief Executive Officer FUT d1A1WLN OV TMS RDAMpt rMltlls K. Ht•rwwL. so" W, DAW&% &h d A. Llltart JH. Miry M. Iy,, ttWWNr M. 0094 Own UN" AI P~. !Ir HIS. Xw L, 0". It.. OM MIN. 1'rI00s Har ts,1. D. W,.•w.6. D. "Irrry•• LM 0 1 I i 0 Indianapolis Convention & Visitors Association J. Ray eenntwn, CAE PieNd� °"tom. ii September 26, 1983 Mr. J. M. Chernow Houston Taxicab Committee P.O. Box 66287 Houston, Texas 77006 Dear Mr. Chernow: We understand that Houston Is presently considering deregulation of their taxicab system, and we are writing with what we hope is helpful information to you in reaching a decision. Deregulation of the Indianapolis taxicab system was enacted In 1973. However, by Decemt er, t974. the city elected to return to a regulated system.,The oxoeriencP was most unsatisfactory- In that a large number of Independent cabs flockedinto the system and considerab!v lowered the ual of mass transportation In Indianapolis. As a result, a number of firms went bankruot, There was also a problem with dfseenutabie perse= capitalizing on the use of the service as a means to promote their own criminal operations. Indianapolis now has three major companies and approximately 50 independents serving the area. The city has an excellent relationship with the local cab companies who have worked hard to keep rates low and at the same time provide quality service to residents and visitors alike. The system works well for our commun'ty and we have, in fwct, received numerous complimentary letters from conventiur.eers on the excellent service provided by our taxicab companies, both major and independents. Certainly, If we can provide you with additional information regarding Indianapolis, experience witlo, taxicab deregulation or our satisfaction with regulated service, please dn o.ot esitate to call upon us. CAdially; Ray n Ison, CAE RB:k ICVA • 100 South Capitol Avenue + Indianapolis, IN 46225 • (317) 635.9567 Y r a ATLANTA CONVENTION AND VISITORS BUREAU y September 27, 1983 •233vouhtreoStreet,NE Suite 300, Poulnree IturN Bldg, Atl.nte, C,ourgi. "NJ Mr. Leonard E. Rolston, CAE .06910•4270 • President and Chief Executive Officer Greater Houston Convention & Visitor& Council 3300 Main Street Houston, Texas 77002 Dear Lens Please accept my 0001t for the tardiness of the reply to your letter recomments relative to Atlanta's ,taxicab industry. While I Joel I have not been a resident of Atlanta long ; enough to give first hand observations of the taxicab � situation an relates to do -regulation since its inception, I was able, through conversation with individuals closely 71 involved with the de -regulation, to pass along some thoughts. From one who in >samewhRt familiar with the arenent. remlated � T taxicab oituated in Houston. the comment was made that would be a serifts ergo 'n to any futitae to your nity. What At ant: as f t done wi••hin the past three yeary in an effort to combat the At --eta of de -regulation has shown signs of upgrading > the sers.ice in Atlanta and improving the city's image to i the public. These steps included the initial formation of a taxicab committee; and, subseq•tently, the Mayor has appointed j a new Review Hoard to mike deciRlons on taxicab permits insurability, etc. To compare ktlanta's taxicab industr.r • with Houston's present system, snows that Atlanta is a long way trem hazing the tong industry tits unnst.±r_ nnv, pn jnyc_ it is felt however, as stated above, that 4Vlanta is taking steps in the right direction. Len, I hope these comments, although lintited, will be helpful to you. Please advise if I can provide you additional information. Sincerely,`'. r`''� Ted 0. Sprague Irani ent TGS/rh J t Chapter 8 THE TAXI IN THE URBAN TRANSPORT SYSTEM Sandra Itosenblooin INTRODUCTION Taxis carry more passengers than all U.S. mass transportation sys• toms put together.' Moreover. these taxi services carry a larger share of those considered transit -dependent titan do public transit systems: In 1969 over 70 percent of all taxi passengers carte from households with incomes under S 10.000 per year. in that same year. that group accounted for only 64 percent of tite passengers on all mass transit modes.' The role of the taxi in the urban transport system has been high- lighted by both the recent interest in deregulation of transportation industries and the recent emphasis on the private delivery of public services. While the urban taxi is heavily regulated in most U.S. cities. The author wouiJ titre to thank C. Kenneth Orski. Gorman Cithert, and Rofer Teal for { information on interesting ta%1 pubLc•prirate partnerchrP6 and isaren Martin for relate r ; assistance. The author would also like to thank Charlie Lace for his eonctfuctive comments. Special thanks to the students in CRP 680A who cheerfully -and with oncnntained enthusi- } ; asm—critiqued and ctiticited an eartl draft, addin; irrtnmasunbly to the orranitstioml structure. Sand» Rosenl+ioom. •'Urban Ta%i Policirs." loanra/ of Co" rr,npo►en Smdtrr 4 1 lspting 1981). 2, John Meyer and Jose A. Comet•tbanra. Ar,ros, r►ont/t, end Cities tCambsid,e. -- Mass.: Hatsard University Press. 19811. P. 76. s.l-N; ._a.�r. i-1{'r J11 •',urn. I!!i I - - -. _ • riM+r-. ..r,, �.. v .. Y••T. rar r �.. ..�. ... • �.,. ♦ r • r-r .-w- Ww..C.r-..r J88 vxoA1► rRAmir is common to blame most resistance to the private taxi on short- sighted self-interest and institutional barriers. An Emprical Assessment of the Free -Market Taxi j Recent empirical developments in the United States promise to illu- ntinate both the role that less restricted taxis can play in the urban transportation netwrok and the problems0volved its removing those restrictions. Several U.S. cities have attempted regulatory reform. Four of these cities have been extensively studied by UMTA: San Diego, Portland, Seattle, and Indianapolis, 1 conducted research in San Diego. as well as Seattle.s hidianapolls. In Indianapolis, additional entry was accomplished beginning in 1972 by reissuing out -of -service licenses and not by regulatory change. But tite relative relaxation of control on entry was accompanied by a net decrease in the number of licensed taxis in sex- " vice. Moreover, the city experienced several problems• The a •+ ity of vehicle maintenance declined sienificantiy and complaints about taxi service were reported to have tripled between 1973 and 1976, The p01Ce Were part Cu ar Y 0 VNed to the relaxed etttn �nntrnteaiars reported difficulty in enforctn nsurance and safer requirements. In . police round one firm of 18 taxis operating the lax est dru rang ever uncovcre I ut t to city. Portland. In 1979. Portland's regulatory reform allowed companies to set their own rates (up to a maximum) using either a flat rate or the meter for different types of services. The local reforms also allowed existing companies to deploy additional taxis. but there were serious efforts on tite part of IQcal officials to discourage indepen- dent operators. While the number of licensed taxis increased slightly i. after the reform. the numbers were small and UMTA anal%sts found ' little change in the traditional operating practices of the indowv. S. For analysts or Portbnd. Seattle, and San p+ero, see Rnsenblvo+e . 'L'+bar. 7.%+ j Yoliemcs " 6, Gorman Gmibert and Pot Gt1b. "Indi�napotn E�perienee uirb Ot':n W +n 7a%i indusity:'rot the )lass Trammspottation Segue and Methods nem.mt:u con Pro;1 I WITA Repots MA-06.OW9-80-I5 ICambrid;a Miss.: TrmIM101"n S! %+em• Cen:::. � L i� J' 1 t t iy I f! — - . 1 Jr r r� 1" 1 ' t' i r t t1�• 1 El . The Tott to the Urban Transport System 189 Although there were initial fare differences among the companies. within six months of the reform all companies were charging the same fare. Se0111e. Seattle enacted comprehensive regulatory revision in May of 1979, after six years of debate. Controls on taxi entry were sig- nificantly relaxed, and operators were allowed to set their own fares. Over the last three years the number of cabs has increased 25 per- cent, and the number of independents haf more than doubled. But t demand for taxi service has apparent!y been dropping at an cQual rate percent), due In part to service refusal rates on the part of rdolaton and an aging vehicle fleet (the average are n( 902et1t4 _ taxis increased 50 percent between 1979 and 1981). Most of all_ the i 25 percent increase in the number of cabs did not represent increased - citywide service Fecause most of the cabs were congregating at the airport. sere were no reported service innovations in Seattle. and although individual rate setting was permissible, all operators were charging the same fare within six months of entry. clearly engaging in informal price fixing. Taxis were more competitive at the Sea-Tac airport: in 1981 the airport authority felt compelled to impose a celling on fares 71 —the ffirport, in theTace of increasing complaints about exorbitant fa es i 1 ese s current y some sentiment for stronger licensing at the air- port and even for a reenactment o tit wide entry controls The city i estimates that is is spending more money to enforce the remainins MUM M restrictions than it ever did berore: this is ironic since local o ic)a s supported open entry partly to reduce the administrative -Ersts of 11-31aing Irequent rate hearings and of issuing licenses. Atlanta. Atlanta has frequently been used as an example of a city with historical open entry. This iybecause the city had a large num- ber of illegal "cars for hire." generally operated in minority neighbor- hoods by black drivers. In 1965 Atlanta officially opened entry, in effect legalizing the undocumented operators. Both old and new operators then moved to the airport and major hotels. effectively j decreasing taxi service in other parts of the city and in minority I 7• Parattansit Serrkes. 77te Eipedenres of G.S. Ones wUh Tar/rob Open fnrn (Chaptt Hi I. N.0 ; October 1987). (Psocessed.) See also for sefetences to Atlanta and San vitro. I �1 �I I i 1 1 I 10 190 VRe t,v rausarr • neighborhoods, Complaints about problems at the air ort became severe, and a stud n erta en or t e nterttational Taxi:ab Associa• tion reported that the Atlanta Chamber of Commerce was $o con- aabout the airport problem draftcernthat it donated staff resources to draft a new ordinance controlling taxi service. In 1981 entn controls were reestablished. There appears to be no impact oat the total num- er of cabs in service, Sal Diego, San Diego is the only city0that can be described as ini- tially successful at taxi reform. it) 1978 flee city council removed a per -capita ceiling ott licenses, and In tile of 1979 began issuing a number of new permits hundred new taxis. or a each ntoattlt, Today San Diego 25 percent lees about a since reform, hincrease in glee number of cabs however, while flee regulatory changes encouraged noat- traditional services (such as jitney -type comtransit Petition to flee tra System) and rate -setting by operators to be geared to such special nsit vices. most taxi operators currently provide traditional services at the fade rate. The largest number of new entrants were airport•based. increasing taxi supply for tourists but not fulfilling an} urban trans.port functions, As in Seattle. demand a arentl droe1tt1• as Wall exr,# his made the air ore situation eve n f}rivers' waiting time at the airpWjjMU ort increased significantly, There' were more numerous incidents of dr ver drivers refusing to writ in line to try and scree assen er ng was rampant t trou It prjc,, e deal with the problem b rnited permits for sent eattempted to ,airport. but this was not successful, It) August 1983 treelacedta moratorium on entry permits. and there is some local s:cttiment for re•regu anon o t to nt ustrv, Transferable Lessons The International Taxicab Association study, cited errl,:r, nine cases of entry relaxation, includingecamined rite onrs de study reported F:d here. The treat most, s;rialthough not all, of the cities ttudied expo, rieneed some increase in the actual ctulni+er of taxi:a f d serice: Spokane and Fresno were two cities that experjen:e,l ,.<i;nervictt decreases in the number of taxis after open entry, aiTA•spon• y Bar c: 'cored survey concluded that it was not possible , pred;' the impact i i J 4 a Fist Taxi in the Urban Transport System 191 of open entry on industry size, because so many other variables were involved. Another common theme in the cities studied by ITA was a prob. lem at the airport, witis problems being most severe for cities with tite most sizeable increase in taxis in service. The iTA•sponsored study found no evidence of service or fare innovations. At the saute time most of lite cities Involved reported si niriicaMI higher costs in enforcing remaining vehicle and driver restr tese experiences reveal that taxis were not particularly successful in an operational sense when deregulated. More importantly, they created enough problems to make them very unsuccessful institution- ally. Deregulated taxis behaved in ways that concerned business peo- ple and citizens, and ultimately came to concern policymakers. When comparing these experiences to an operational criterion of success, it becomes clear that most anticipated economic outcomes did not materialize. The irony is that free-market private taxis simply don't act like entre a ree are . in spite of a small num- Fe—ror energetic competitors creating problems for tourists and at airports, taxi operators in most "reformed" cities were not very enterprising. energetic. or competitive. In spite of some fairly sub- stantial official latitude. both the companies and individual drivers failed to act with much Initiative. Second, putting these experiences to an institutional test raises severe questions of cost effectiveness. Most of the reforms took signiL- icant administrative staff time and political resources to implement. Regulatory revlstons, although often marginal, faced tremendous opposition. which in turn created serious political and administrative costs for advocates. Regulatory reform in Seattle was debated for over six years; in Atlanta, for four years. In all of tite cities described above, administrative staff spent months preparing for hearings and meetings. Seattle and San Diego have incurred significant expenses in advertising to the public new taxi services and rates. Now many of the cities are expending considerable resources on maintaining taxi- s an ar s to deregulated markets ot surprisingly, then. there is increasing evidence that resistance to regulatory reform comes not only from entrenched interests but from some critical analysts. Proponents have been too quick to over - a, Parstismit Soviets. fxptrknets of t : S. Cirits. 9. Rostnbtoom. "LKban Tasi toticirs." 10. Pstattsnsit Soviets. Lrptriences of V S. Cities a . � 1 1 e 192 vnAx rruxsir look the problems associated with deregulation, or to ac;ept them as a necessary price for a free, working taxi market, Thee argue that because deregulation was relatively limited, these cities did not serve as tests of the basic market concept and that, over time. taxi opera- tors may become more assertive, inventive, and innovative enough to use their new powers to provide better or cheaper servi:e, But state and local policymakers who have expended considerable resources to achieve even these limited reforms are probably not very satisfied with these comments, litany decide that tite obsts. both financial and political. are not worth tite gains. Often they evaluate the gains much less enthusiastically than long-time proponents have. Furthermore. with taxi deregulation local elected officials lose control not only over aspects or the industry where the legitimacy of their control s questionable. but also over aspects that do require etr attention: nsurance. vehicle safety standards. and public and passenger safety. Local officials ave legitimate concerns about ser- ,v ce continuity. area coverage, and how the cit • looks to tourists; their constituents charge t Lem wit tasks that proponents do not. MC Positive 8112101Y TO Underdeveloped Tt►r or countries also seems strained. In examining public reaction to these cities, relaxed controls. it is not at ail clear that Americans would like the bazaar -like atmosphere of the truly free-market industries in Kuaia Lumpur. Singapore. or Cairo. Although none of ti►e "reformed" cities have come close to these models, aspects of free-market competition have already proven distasteful and problematic - Tourijts and locals alike are unable to deal with differential fares. service refusah, e legal and illegal activitiFs-of enthusiastic drivers at the airport, Some proponents have argued that it is not citizens %vho are un- happy with a competitive market. but officials and regulators. Ana- lysts long ago noted that regulatory agencies prefer to control a few large enterer M rather than largeaumbcrs of Sm311 ent-tf:neuri. In this volume. Johnson and Pikarsky (Chapter 3 i argue :hat officials have a need to organize. centralize. and control public itnices. But tite question is still worth considering: Do the relatively high -income citizens of the United States desire the kind of free-for-all tra►tspori markets that work so well for the very low-income citize►ti of some Third world countries' J .0 The Taxi in the Urban Transport systein 193 Dere81113ted Taxis: A Summary Very few of the expected ex efits eriencef withgulation regula oryvrevision has although our limited U.S. p gone nowhere as close s o free-market s tutional reality istthat local eegulao ry re• would like. But t11e 1n form usually occurs in the United States as an incremental ent rely existing regulations. Rarely are existing regulatory y abandoned. nor is that ti a climate in which any futurexpoused. It stems clear e U.S. reforms political and administrative will be made. suggest that whether or not If nothing else, these experiences -real" deregulation or privatization realhe taxi could deregulat deregulation occutave n�'e benefits, it is unlikely that such would do better to assess new roles for the taxi within existing regu• latory structures. THE TAXI TRANSIT PARTNERSHIP: CONTRACTING FOR PUBLIC SERVICE he taxi n the nature Of t Some qutry ite lace across the Unitedy changes' States. often unheralded iand sun - are taking place across transit author - with taxis to provide noticedin . U.S. cities are creasingly contracting a range of services. generally as perrners with the local sty or city government. Rarely are these changes accompanied by ldealogical rhetoric. In fact. fire most interesting feature of the wide range Of neraliy Q services being ptovidcd by taxi operators is that they F volved as a response to community needs and "light." beet' were Policy !1 e makers thought private service to be inherently g specific responses to definite problems. As one analyst commented. pressure currently being placed on government budgets by trans t The intense p rtunities for substituting taxicabs ' deficits calls for a closer look at the oppo for large buses on tight routes. and for the redeployment of high capacity buses to routes where they will be more productive " a. Frecboon and Operation or Tr%Ira in a t it. Ronald �. t irDr. -Innovations in the Reru . Toxlcab lnnoronons: Srrriees and Rejutarlonr. udinpp or the National Conference on Taskab Innovations. Kansas City. Dsay 5-6.1980 (wsihr^Eton. D.C.: Governmcnt P�intn; i Office.1991). R.1 u d N PARATRANSIT SERVICES 121 SOUTH ETM Dww/suTE 1()0B CHAPEL HILL, NORTH CAROUNA 27514 IAAWAIS HEUUL IN U.S. CM E... L. Carol Shaw Gorman Gilbert Christine Bishop end Evelyn Pruitt OCTOBER 1983 FINAL REPORT VOLUME I *01 �4��' am!, PAMMNSIT SERVICES 121 SOUTtj ESM MjvE/SUrM OB MANGMT NORTH CAROU14A27514 11 TAXICAB REGULATION IN U.S. CITIES By L. Carol Shaw, Gorman Gilbert, Christine Bishop and Evelyn Pruitt VOLUME Is FINAL REPORT October 1983 Department of City and Regional Planning University of North Carolina at Chapel Hill Chapel Hill, North Carolina 27514 NOTICE This document is disseminated undet the sponsorship of the Department of Transportation In the Interest of information exchange. The United States government assumes no liability for Its contents or use thereof 4 TIM CITY STARTED ENDED Atlanta, GA 1965 1981 Indianapolis 1 IN 1973 1974 a, Spokane, WA 1980 Fresno, CA 1979 1982 ° Seattle, WA 1979 San Diego, CA 1979 1983 t7 Milwaukee, WI 1979 f ° y Phoenix and Tuscon 2 AZ 1982 Tacoma, WA 1991 Oakland, CA 1979 Berkeley, CA 1960 Sacramento, CA 1982 FIGURE 2s Maior Cities Changing to Open Entry -'` 1. Indianapolis did not change their ordinance but did effect open entry administratively. ,IFt 4 2. The State of Arizona deregulated all transportation, leaving d- Phoenix and Tuscon as open entry cities. i 1 o i � f •i' A I i A •pj 1 t I I - r E:. Page 9. c, 2.2 Fresno i This city of 250,000 people has had a long and involved history of taxicab regulation. originally, Fresno limited the i number of cabs on the basis of a minimum requirement of 25 trips per day per vehicle and by a five -cab minimum per taxicab firm. In 1979, the taxicab industry petitioned for a fare hike and vegan negotiating with City Council, setting off a controversy - concerning the amount of time necessary to process such requests. i The discussions among City staff continued and soon became fo- cused on the question of whether entry controls were necessary. Several ideas were considered for regulating the issuance of permits, including the use of a population ratio, before it was decided to open entry and tare setting completely and thus allow . { 1� the market to regulate the industry. At that time, the respon- sibility for the permitting of cabs was switched from the Police Department to the Finance Department. In making this decision, i I Fresno's staff conducted a survey of several neighboring cities, r including the recently deregulated Seattle and San Diego. Based on this analysis, the City Council passed an ordinance late in , 1979 that completely opened entry and decontrolled fares. Deregulation lasted about eighteen months. Before open entry, the City had 70 cabs. Of these, Yellow Cab had 51, Fres- no Cab had9, American Cab had 5, and there.were five permits _TP held by independents. After open entry it became increasingly evident to the City that unlimited entry and fare -setting was not working. Customer complaints tripled, according to the De- =: i rr�.. I.."N41 � . ., � •w . .parr �.. i.. . �. . �.. .� r. ewr . . Page 10. putt' City Manager, and the business community became involved due to concern for problems,encountered with taxi service. These problems included price gouging and poor upkeep of the vehicles. Several cab company owners fought consistently for re -regulation. Due to these problems, the City issued a moratorium on taxicab permits late in 1981. Procedures were begun to re -write the or- dinance to provide stricter regulation of the industry. At that time there were 50 cabs spread among 25 to 30 companies. The changes in the number of permits are shown in Figure 4. The City re -imposed regulation in January, 1993, at which time the moratorium was lifted. Since that time customer com- plaints hive reportedly dropped, and entry into the industry has slowed considerably. The new regulations have continued to be administered by the Finance Department. As of August, 1983, the taxicab industry and the City report satisfaction with the new ordinance and are generally cooperating to increase enforcement. The current ordinance requires a minimum of three cabs per oper- ator, twenty-four hour per day dispatching, and a minimum of $160 per day per cab in documented revenues. The Fresno experience with open entry is now seen by every- one interviewed during this study as negative. One City official put it this ways "We do not regulate the number of stores, but it is different with taxicabs. We assumed that market pressures would control the rates and provide a level of service which would be satisfactory, and it did not work." One problem that was com- Y 1 Patin I1_ monly cited was the confusion of having over 25 different color schemes for the different companies. Currently, 45 cabs from about 20 companies serve the City. 1 .J r � , J A / A I 1 I � r / r i I i f � t r - _ 1 Y Page 42. Sacramento, and Phoenix. Milwaukee has conducted two studies, although both were after open entry. Seattle and San Diego both conducted analyses of their local industries, and Spokane sent local officials to a taxicab conference in Kansas City. Only Indianapolis did not conduct analyses of open entry or its local taxicab industry. It is significant, however, that all of these studies were conducted in-house using city staff. No evidence is available of a city hiring an outside objective analysis of taxicab service. 3.2 Open Entry Impacts 1 . 3.2.1 Increase in Industry Size The effects of open entry on industry size have been uneven. As shown in Figure 10, six of the cities have experienced afi in? - crease in the numbers of taxicabs after open entry. However, cau- tion must be used in interpreting some of the numbers in Figure 10 because the time periods are not consistent from city to city. ~t y For example, Atlanta data are for an eighteen -year period, al- though the number of taxicabs has not changed appreciably since .} entry was closed. Also, the Fresno data cover a period during which entry was opened and then closed. s A second phenomenon cofifounds the data in Figure 10. Stud- r, ies of the taxicab industry show that there has been a nation- wide trend toward fewer taxicabs. There is evidence of this shrink- age effect in several of the cities examined in this study. That 1 No. of Taxi Permits City Before After Sacramento 110 (1982) 168 (1983) San Diego 409 (1978) 915 (1983) Seattle 129 (1979) 230 (1983) Indianapolis 502 (1972) 466 (1974) Milwaukee 308 (1979) 351 (1983) Fresno 70 (1979) 45 (1983) Spokane 100 (1980) 80 (1983) Atlanta 700 (1965) 1538 (1983) Phoenix 300 (1981) 425 (1983) FIGURE 10s Taxicab Permits Before and After Open Entry M I r if 0 i Page 43. is, before open entry the numbers of taxicabs were frequently declining, and these trends have sometimes continued after open entry. Examples are Fresno, Indianapolis, and Spokane. In other cities, however, the opening of entry was accom- panied by dramatic increase in the number of taxicabs. Phoenix, Atlanta, Sacramento, San Diego and Seattle typify this result. Apparently, the taxicab business in these cities was viewed as a more lucrative business than in Indianapolis, Fresno, or Spokane. In Milwaukee the number of cabs increased somewhat even though the major fleet left the industry. These results mean that the impact of open entry on indus- try size is not predictable with certainty. Several other factors intervene, such as the previous size of the industry and the trends in the demand for taxicab rides. 3.2.2 Changes in Industry Structure The impacts of open entry on the structure of a local taxi- cab industry are highly consistent from city to city. In all the cities, the industry shifted markedly toward more independent owner -operators. This result is-etrident even though there was extensive competition within the industry in seven of the nine cities. For example, San Diego had 68•taxicab companies before open entry, 175 the year after open entry, and 294 two years later. Seattle changed from 57 taxicab companies to 85 within two years. Sacramento added 16 taxicab companies to its existing 3 companies. In Indianapolis the number of independents increased from 10 to r d -- . s =I Page 44. 85. The other case study cities exhibited similar increases in independdnt operators. 3.2.3 Airport Problems A common, although not universal, open entry result has been a large increase in problems at airports. The problems are con- sistent from city to city: over -charging, short -haul refusals, and driver behavior. These problems have been evident at airports at which the numbers of taxicabs have greatly increased. Examples are San Diego, Seattle, Sacramento, and Phoenix. These results lead to the conclusion that open entry without airport entry con- trols will result in problems, and that the extent of these prob- lems is relative to the amount of air passenger traffic at the airport. th a roblems, several airports have enacted their TO combat es p controls over taxicabs. Taxicab fees were increased by the own °.r airports in San Diego, Seattle, and Sacramento, and starters were t r • hired by San Diego and Sacramento. Seattle -Tacoma Airport even installed a closed-circuit television system to monitor taxicab operations. The San Diego Airport and the City of Phoenix both ;�.. have enacted limits on the numbers of taxicabs that can pick up passengers. 3._2_._3 Other Impacts T The other impacts of open entry are more difficult to docu-- -,' went because they require extensive data before and after open :t rrA !V 1 " f 00 't Page 40J. entry. Only Seattle and San Diego have been subjected to such = a thorough analysis. Therefore, conclusion regarding other im- pacts can be based only on these two cities There are three impacts that are of particular importance and which have been documented in both San Diego and Seattle. One is decreasing productivities resulting from lower taxicab demand combined with greater numbers of taxicabs. A second is higher costs of enforcement, although the data for both cities is sparse with respect to enforcement costs. A third is the in- cidence of taxicab service and fare innovations. Fare innova- tions are reported to be almost non-existent, and there have been few serviae innovations that have been instignated by the taxi- cab industries in these two cities since open entry. LJ l� r Prepared March 30, 1984 by J. M. Chernow, Representing THE HOUSTON TAXICAB COMMITTEE (Yellow Cab, United Cab, Square Deal Cab and Skyjack Cab) EXCERPTS FROM "THE TAXI IN THE URBAN TRANSPORT SYSTEM" Sandra Rosenbloom Graduate Program in Community and Regional Planning The University of Texas at Austin A Chapter from The Private Challenge to Public Transportation, Charles Lave, edizor, LeXlngt0n, ass.: Ballinger Press, Forthcoming August 1984 December 1983 4„ _ y, ,t � il5 r x This work was financed in part by the Mike Nogg Foundation for Urban Governance, of the University of Texas at Austin, which does not necessarily agree with the views stated here. 7v I. INTRODUCTION Taxis carry more passengers than ride on all U.S. mass transportation Systems put together. ...argument is often made solely on idealogical grounds: the competitive free market in search of profit will always provide better and more efficient services. Unfortunately, an examination of empirical data on regulatory reform of the taxi industry to date shows few of the benefits claimed by proponents. This paper reviews the actual experiences of those communities where taxis have been permitted some measure of economic freedom, considers why the expected benefits of taxi deregulation did not occur, and focuses on the transferable lessons of these experiences. Proponents of regulatory reform have long held that the taxi would be an operational success if only indefensible insti- tutional barriers were dropped. Yet evidence indicates that, first, the taxi is not necessarily a *success* when deregulated, and second, that overcoming institutional barriers is a formidable task. Quite often *indefensible barriers" can indeed be defepded on sound policy grounds. Even if our experience with the deregulated taxi were better, it is still useful to question whether the benefits outweigh the political, administrative and economic costs of achieving such institutional changes. I i jt - IJ w� / II. REGULATORY REFORM OF THE TAXI INDUSTRY A. The Economic Case for the Private Taxi Local and occasionally state restrictions on taxis have existed for many years. Localities were uneasy about public safety; they were concerned with the sometimes violent forms of competition between taxis as well as criminal activities by individual drivers. Moreover, local city councils were concerned with ensuring service continuity and area coverage. The answer to these problems seemed to be a permanent relationship between one or a few operators and the local legislative body. The major deregulatory advocates have been economists, and until recently they had to use gross comparisons between heavily regulated U.S. cities and lightly regulated cities to "prove" the superiority of the competitive market and the inevitable benefits of deregulation. I was pleased when my own early work appeared to support the theoretical arguments. Unfortunately the problems with this kind of analysis are many. The number of cabs licensed is not equivalent to the number of cabs being operated. B. An Empirical Assessment of the Free -Market Taxi Recent empirical developments in the United States promise to give both insight into the role that less restricted taxis can play in the urban transportation network, and to the problems that are involved in removing those restrictions. Several U.S. cities have attempted regulatory reform. An analysis of all these experiences reveals that taxis were not particularly successful in an operational sense when deregulated. More importantly, they created enough problems to make them very unsuccessful institutionally. Deregulated taxis behaved in ways which concerned business people and citizens and ultimately came to concern policy makers. First, when comparing these experiences to an operational criterion of success, it is clear that most anticipated economic outcomes did not materialize. The irony is that free—market private taxis simply don't act like entrepreneurs in a free market. Second, putting these experiences to an institutional test raises severe questions of cost effectiveness. Most of the reforms took significant administrative staff time and political resources to implement. Seattle and San Diego have incurred significant expenses in advertising to the public new taxi services and rates. low many of the cities are expending considerable resources in maintaining safety and other standards. There is increasing evidence that resistance to regulatory reform comes not only from entrenched interests but from some critical analysts. Proponents have been too quick to overlook the problems associated with deregulation, or to accept them as a necessary price for a free working taxi market. Many local and state policy makers are deciding that the costs, both financial and political, are not worth the gains. ■ One of the most common problems with taxi deregulation Is that local elected officials lose control, not only over aspects of the industry where it can be argued they should not have control but also over aspects that do require their attention: insurance, vehicle safety standards, public and passenger safety. Local officials have legitimate concerns about service continuity and area coverage and how the city looks to tourists; their constituents charge them with tasks that proponents do not. The positive analogue to underdeveloped Third World countries also seems strained. In examining public reaction to relaxed controls in the cities described here, it is not at all clear that Americans would like the bazaar -type atmosphere of the truly free-market industries in Khalalampur, Singapore, or Cairo. Although none of the "reformed" cities have come close to this model, aspects of free market competition already proven distasteful and problematic: Tourists and locals alike are unable to deal witb differential !area, service refusals, and the legal and illegal activities of an,.husiastle drivers at the airport. It is still worth considering the question: Do the relatively high -income citizens of the U.S. desire the kind of free -for -ail transport markets that work so well for the very low-income citizens of some Third -World countries? D. Deregulated Taxis; A Summary_ Very few of the expected benefits of deregulation have ocourred. ' r N, IV. CONCLUSIONS The success of the taxi depends on two separate but related factors; first whether private taxis can deliver needed transpor- tation services and do so better or cheaper than the public sector; and second, whether taxis can do so given the institutional constraints imposed by the American political, social, and economic structure. Taxi deregulation has not addressed either factor and has been relatively unsuccessful, no matter how success is measured. Most regulatory reforms did not bring large increases in the quality or quantity of taxi services, at least throughout the city,and fare or service innovations were almost non-existent. Just as signifioantly, such regulatory reforms were quite difficult to achieve in the American local political structure (and one might argue, from the evidence here, for good reason). The Houston Taxicab Committee J. M. Chernow, Represeniaiive 1406 Hays Houston, Texas 77009 713-Z24-4445 TAXICAB DEREGULATION IN PHOENIX Enclosed are: 1) A news article dated November 11. 198Z quoting Phoenix Mayor Margaret Hance in a memorandum to the Phoenix City Councils "In my opinion, deregulation has produced incredibly negative impacts on the hospitality industry in Phoenix and our national image as a good place for convention and tourist visitations." 2) Excerpts from a•newly issued UMTA study by the University of California entitled "Urban Transportation Deregulation in Arizona. " Both of these reports are extremely pertinent with respect to Councilman Greantas' proposed Transportation Ordinance advocating unlimited numbers of Houston taxicabs and variable fares. Copies of the full UMTA report on the effect of deregulation of transportation, -; in Arizona will be provided upon request. 7•hursdtty,14vvvmber It. 1931 Ali nu,tur cac$rt• 4;14.f A. ne legislation elimi- nated all regulations for tax; brew and entry into r Phoenix • the Iasi industry. .-Will study In response, the city I ties attempted to rep, s` ' tt�i�l 6•u��s • t late taxis by corrslltn them at the airport and Sy Jose h R LaPtante ; allowing onlyy a certain of them at the : ubiic �t.rt Phoenis Mayor Mat- i number terminals. Taxis are charged $3DD for a per- ``aret Nance requested : 1�'ednesday that the city mit to operate at the study we ys to control ' : the recently deregulated. : air rt po Tourists have com- tail industry because of ! plamed that tail fares in • mounting problems over j phoenix are higher than : high taxi fares and core• t in other cities. : petition at Sky Harbor : ax; driven harms • Airport' The Mayor asked that • four specific Issues betaken twined that Jimou- complained sinoperators have : ezimined: •�•: Whether the. etiy ; fares aka from them by ignoring an Nation that • could propose a recoto• I- : airport re requires the limousines : 'mended rate structure : for taxis and limouslnea• to pick up only passes- `ere with whom they • Carrie'a accepting such rates could receive spe• ; have made arrange - menta, , : eiat designation and pro (erred parking spaces at '� has pr;Juced regulationD / airport terminals.do- • �J f •Whether additional edibly negative im- means of transportatio0. : including express•bus ts on the hospitality ustry in Phoenis and 'trips, between the air• port end various Inca• national image as a d place for conven- • tions in the city could be and tourist visits-provided ni , Hance wrote by a partner• ship of the city and dnesday in a memo- durn to the council. • e he or the city The results of the, : should be more aggress study should be it - give in taxi -rate control ppoorted to the council no' •. within the limitations of lster than Dec: 6. she ;,-IS, City Ch&ear and ,—•antitrust lawn• • Whether special leg• . '• ��" '� "• islation by ,the Arizona ' • Legislature could alle• viste some of the probe — r lems, r� i • . f. f 1 t . i t .l +: rl f rara red Janua ry 6 r 15+fi4 Liu L J. M. Chattiowr Rot- rpooritIriot r ' THE HOUSTON TAXIGAP COMMITTEE (Yellow Cabr United Cab• Square Deal Cab 3 Sk.W- Jack Cab) EXCERPTS FROM •URBAN TRANSPORTATION DEREGULATION IN ARIZONA• Institute of Transportation Studies and School of Engineering University; of Calif orniar Irvine Decemberr 1983 b:< S Roger Tealr Assistant Professor Mary► Berglund► Research Associate Terry Nemery Research Assistant 1 1 rr I' r Based an research conducted for the Urban Mass Transportation Administratior; i under the University Research and Training Grant CA-06-0183 7V R 1 h"f", On Julw it 198^ privately provided common carrier urban transportation was completely dereaulatecs in Rrizona. ..the urban transportation environment in Arizona bears important similarities to that existing in many low densitwi automobile -oriented regions ... I , A CHANGES IN THE TAXI INDUSTRY - PHOENIX ssssssaaoaeaaeaaaaaaaaaassaasseaaaaaa�a Entrwr Exit and Turnover Deregulation led to an immediate surge of entry into the taxi business especially in the airport markets. ..thc number of taxis .. increased bw over 50% in the first year following deregulation. The maJoritw of the new operators focused on the airport marketr as it was the single largest source of tsssi patrons in Phoenix and could be served without radio dispatching capability. ' ...there has been substantial turnover amorist the small operators .. over 40% of the operators with three or fewer vehicles were no longer active as of Julwr 1983. ...the number of airport taxi permits declined precipitously.. Much of this was due to the decision bw yellow/Checker to abandon airport service except for passenger drop-offs..v because tar. s i .1,J i serving the airport now spend an average of 2 to 3 hours waiting {. for passengers and the c'ompanv could not afford to use its fleet `'r ! so unproductivelu. t Prices Taxi tares increased substantially with deregulation. After deregulation► Yellow/Checker, increased its tares to $1.20 per mile (from s.85 per mile).. Those tares? howevert were the I owest in Phoenix after deregulation. Operators who served only the airport charged considerablw moret with the•maJcrity of rates between $1.40 and $1.60 Per milet with some as high as s2.00.per mile. ~ Service Innovations --------------r---r There has been essentiallw no service innovation br the Phoenix taxi industry since deregulation. No shared ride operations have been establishedt nor have anw Jitney services been initiated. Format shared ride schemes on &n areawide basis appear to be infeasible with the Prevailing tams demand densities in Phoenix (loss than i passenger trip per souare mile Per hour) Market Growth r ..taxi patronage has declined (10-14%) since deregulation? in RI gaits of the substantial increase in the number of Cabs. i J, in iJ I, . _.. .... ._. r6."'- ,l•^t:_M.`. �iii>��!-+:4..i'. W.�s. _ .. .wrti-.N�Ws _ .. O , 2 I 1 f I 4l /1 4 Productivity and Profitability 8Y anti measurer the Productivity of the Phoenix taxi industry has declined significantlw since deregulation. ...the number of Passenger trips Per active taxi per day has declined bw about one-third for the entire industry• while the number of trips per shift has decreased bw about one-ouarter (the difference reflects lower utilization of tamis bw operators after deregulation). These Productivity levels have sharplw squeezed the income of tagsi, drivers and management* overall• drivers work an average of 10 to 14 hours Per day• 6 days a week for a meager incomet averaging only about $2 to $4 Per.hour worked. Two of the large new companies are reported to be in financial difficulty and Yellow/Checker has suffered a 30 percent decline in leasing/dispatching fees• with a less than proportional decrease in expenses. Despite the fare increases which accompanied deregulation• the average monthly fare revenue Per active cab is estimated to be 10 Percent lower than in 1981-82. CONCLUSIONS ' sssssssaaaa ...deregulation has had virtually no effect on automobile ". users and transit dependent travelers. In Phoenix ••. the market has also declined in size as the result of about a 35 Percent increase in fares• leaving fewer Patrons whose business must be spread among manes more Providers. The result has been a reduction in comPanv and driver Profitability and some exit from the industry by independent drivers. The limousine industry has experienced similar declines ! d 9II in Profitabilitwo The situation shows few signs of being self-correcting. Moreoverr the ease of entry into small vehicle urban transportation services is likely to result in continual turnover in this market. Instead of forcing prices down in the airport taxi marketsp new competition has had the reverse impact. The Productivity declines caused by new entry have encouraged operators to INCREASE PRICES in order to generate sufficient revenues to make a profit. Taxi service and Productivity improvements are unlikely to occur in the Arizona metropolitan areas. Shared ride services reouire greater demand densities than currently e::ist in the general Phoenix and Tucson tarsi markets and are feasible only from the airport• where they already exist in the form of limousine service. A modest decline in the level of taxi service say also have resulted from deregulation since the number of vehicles serving the telephone market seems to have declined. POLICY IMPLICATIONS s�srtaaa�aassaaaaaasaa When transportation demand is stable or declining and attractive substitutes to the deregulated modes existr the impacts of deregulation may be largely confined to increased competition within existing industries with few or no corollary benefits to consumers and providers. 'j'J Vz January 7, 1985 The Honorable Ms. Jane Angvik Chairman, Anchorage Assembly 3500 Tudor Road Anchorage, Alaska 99504 Dear Madam Chairman: The Anchorage Hotel and Motel Association has considered and reviewed proposed changes to permit additional licensing of taxicabs by the granting of twenty- five new permits on an auction basis annually. We are not going to present the extensive detail of our review or reasons for our position other than to state our decision is based on our concern for the best interest of the traveler to or from Alaska, be that travel businoso or recreational. Anchorage has, in force, an excellent and effective regulatory ordinance governing the operation of the taxicab services in the Borough. Fares are governed and reasonable. There are ample cars in service. The dispatch is prompt and alert and the general service to the taxi rider is excellent. We would suggest that the owners and operators should give some consideration to the decorum, the dress, the attitude and the general appearance of the drivers and interior of many of the cars and that can be an on -going better- ment to the community and to the industry. We feel that it would be unwise to adopt the amendment offered by Assemblyman wood, at this time, when we have a good working law in force. We would suggest that it would be unwise to tinker with the present formula. Thank you for your consideration. Respectfully and sincerely, I Jay Oxford President, �. Anchorage Hotel and ?Motel Association i ,I a a r t i I _ 14 F E ro y I ' t 1 I 1 I I � January 7, 1985 The Honorable Ms. Jano Angvik Chairman Anchorage Assembly 3500 Tudor Road Anchorage, Alaska 99504 Dear Madam Chairman: The Anchorage Convention and Visitor's Bureau has reviewed the Wood Amendment, which is before the Aaoombly, and proposed changes in regulations relating to the taxicab services, permits and licensing in Anchorage. Where cities have made drastic changes in ordinance structure, an this pro- poses, disasterous results have adversely effected the visitor, tourist and convention industry. For reasons of intinerant ownership and drivers and lack of enforcement tools and officers, it is the experience of most cities that services have doterior- atod and fares have boon irregular and unenforced. The present system appears to be working well and should be continued. This organization strongly suggests that the Wood A.stanilmont should and needs to be laid aside by negative vote. Thank you for your consideration of this position paper. Sincerely, Rayn Bowman President, ii Anchorage Convention and Visitor's Bureau i THE IMPACT OF TAXICAB DEREGULATION AND OPEN ENTRY HAS BEEN A DISASTER ACROSS THE NATION. THE CONSEQUENCES ARE THAT THERE HAS BEEN NO COMMENSURATI: INCREASE IN TAXI RIDERSHIP AND HAS BEEN A VERY DRASTIC DECLINE IN TAXI CAD PRODUCTI- VITY. CENTRAL CONTROL OF TAXI OPERATORS CEASES AND ALL OPERATORS BECOME OWNER/ - DRIVERS WHO MAY OR MAY NOT AFFILIATE WITH DISPATCH SERVICES. PRICE GOUGING, AS IS CURRENTLY PRACTICED IN SEATTLE AND IN FAIRBANKS, BECOMES THE RULE OF THE ROAD RATHER THAN THE OCCASIONAL HAPPENING. ( OPEN ENTRY HAS NOT LED TO REDUCTIONS IN WAITING TIME OR TO SERVICE INHIBITION i OR TO PRICE DECREASES OR TO PASSENGER CONVENIENCE. I f , NATIONAL CONVENTIONS WILL NOT GIVE A SECOND THOUGHT TO CITIES WHERE NO REGULA- TION OF TAXICABS IS IN FORCE, DUE TO THE FACT THAT THEIR CONVENTION MEMBERSHIP { IS GOUGED BY THE DEREGULATION, WHICH IS PUT TOGETHER UNDER THE GUISE OF FREE ENTERPRISE. DEREGULATION HAS BEEN A DISASTER IN THE AIRLINE INDUSTRY, HAS BEEN A DISASTER IN THE TRUCKING INDUSTRY, HAS BEEN A DISASTER IN THE COMMUNICATIONS INDUSTRY AND WILL BE A DISASTER IN ACHORAGE, IF IT IS PERMITTED TO BE ENVOKED. DEREGULATION CANNOT BE TRIED OUT, AS ONCE DEREGULATION HAS BEEN ACCOMPLISHED, AND IT FAILS, YOU CANNOT GO BACK TO REGULATION BECAUSE OF THE VIOLATION OF - - THE SHERMAN ANTI TRUST ACT. THE DEREGULATION OF THE TAXI CAD SERVICE IN ANCHORAGE WOULD FIE DTSASTEROUS TO THE EXFANDED TOUR SHIP OPERATORS THAT ARE COMING IN, USING THE PORT OF ANCIi01Z— AGE DURING THE SUMMER SEASONS, AND YOU WOULD HAVE TWO WAY FARES TO THE AIRPORT, THE HIGH FARE FOR THE OUTBOUND PASSENGER, THE LESSER FARE FOR THE INBOUND PASSENGER. IN SUMMARY, THE PRESENT TAXI CAB SERVICE NEEDS IMPROVEMENT AS FAR AS INTERIOR CAB APPEARANCE AND THIS CAN BE ACCOMPLISHED BY THE INDUSTRY ITSELF, WITH SOME ENCOURAGEMENT FROM YOUR ASSOCIATION. THERE I5, AVAILABLE, DOCUMENTATION OF THE FAILURE OF DEREGULATION ALL ACROSS THE COUNTRY, IN SAN DIEGO, SEATTLE, PHEONIX, KANSAS CITY, PORTLAND, SAN FRANCISCO, AND LOS ANGELES HAVE ALL BEEN DISMAL FAILURES AND TO PROMULGATE THIS ON THE CITY OF ANCHORAGE AS WE ARE COMING INTO THE 1985 TOURIST SEASON COULD BE DISASTEROUS. i 1 r ,,,.. z , ------- . ... _ w..... _ _.. DOES TAXICAB DEREGULATION MAKE SENSE ? F �' C . j. i ,Y March, 1984 i INTIMNATIONAL TAXICAB ASSOCIATION 11300 ROCKVILLE PIKE • ROCKVILLE, MARYLAND 20852 E ' 1 DOES TAXICAB DEREGULATION MAKE SENSE? :J A � . I March 1984 International Taxicab Association 4 11300 Rockville Pike Rockville, Maryland 20852 r`. x - � ;S DOES TAXICAB DEREGULATION MAKE SENSE ? After many years in which ecomomic regulation of the taxicab industry was established practice for virtually all municipal governments, the wisdom of this practice is now being challenged. Several major cities -- Seattle, San Diego, Milwaukee, Oakland -- have eliminated restrictions on entry into the taxicab industry and Seattle and San 4 Diego ended price regulation as well. (San Diego has re -implemented a form of Price Regulation.) in addition, the State of Arizona has b ended taxi regulation in all of its municipalities, and many other cities are now considering revising their current regulatory framework for taxis. A further incentive for deregulation is provided by the Supreme Court's so-called Boulder decision, which suggests that municipal regulation may violate anti-trust laws. But amidst all the movement in the direction of taxi industry deregulation, it is time that we stopped and asked the fundamentally important questions does deregulation make sense? That is, will local governments improve or degrade the quality of local transportation if they deregulate the taxi industry? The answer to this question should determine whether or not changes in existing regulatory frameworks are necessary and desirable. The Impacts Of Taxi Deregulation 4.4 The best way to approach the question of whether taxi deregulation rp makes sense is to examine what has occured when deregulation has taken place. Deregulation can apply to entry, fare, or both, but the most important element of regulatory changes is open entry. In jr cities which have adopted oepn entry policies, the impacts have been NUMBER OF TAXIS 1 f • I i l� i Figure 1 NUMBER OF LICENSED TAXIS BEFORE AND AFTER DEREGULATION Seattle San Diego Oakland Phoenix 2 quite consistent. First, the number of taxis serving the market increases, sometime a large amount. As Figure 1 shows, in every major Western city w has allowed open entry, the number of cabs has increased by at 1 20 percent. In San Diego, the size of the industry has more doubled. These increases in service providers have not resulted in an incr in the size of the taxi market. Despite the many new providers, ridership has remained stable or declined. Surveys in Seattle, Diego and phoenix all indicate a decrease in taxi ridership following deregulation. The decrease in ridership is caused by a second consequence of deregulation, namely significantly higher fares. Taxi rates have increased 30-70 percent where they have been deregulated. Figure 2 reveals that rates in deregulated cities are almost uniformly higher than in cities where rate regulation has been retained. Even considering the rates of the largest taxi companies in the a deregulated cities, which tend to be lower than the average rate, the cost of a 4 mile trip is at least $5.65, whereas it is less than ; $5.00 in several regulated cities. The higher prices in deregulated cities are an indication that the theory of deregulation does not always apply to a transportation industry. According to theory, deregulation should lead to downward a pressure on prices, but in fact prices have increased. The reasons are three -fold. First, taxi operators are not able to significantly i reduce their costs, for they have already been pared to the bone. Driver compensation, the major cost component, is approaching subsistence level, and companies are finding it difficult to attract drivers. Second, deregulation leads to a reduction in taxi productivity, not an increase. Shared ride service, which could increase productivity and reduce fares, is possible only if taxi demand is greater than is commonly the case. The absence of shared 3 TAXI FARES 1 Figure 2 TAXI FARES FOR A 4 MILE TRIP-1983 C N +'- O 4) X c n 4 7.50 O �s of M V N o C0 0 ride service in daregulated environmentit is an indicator that this service is not profitable. But without erriciency improvements or productivity increases, price reductions are not likely to follow from deregulation. in this case, the third factor, stable or declining demand for taxi transportation, becomes very important, for it means that under deregulation many more providers are competing for a ridership of relatively fixed size. The result is a decline in industry productivity-- each taxi carries fewer passengers per day than prior to dergulation. Figure 3 indicates the substantial declines in taxi productivity which have accompanied deregulation. Under such circumstances taxi operators can only survive if they increase the revenue obtained from each trip, which means higher taxi rates. And higher rates are precisely what has occurred in Qvery situation where the taxi industry has been freed of both entry and price regulations. Taxi operators correctly perceive that demand for their services is inelastic, and therefore the way to maintain revenues is to increase rates. Not only have taxi rates uniformly increased with open entry and rate deregulation, but pricing freedom has often led to complaints by consumers about fare gouging. Visitors are particularly vulnerable to this practice. Where tourism is a major local industry, as in San Diego and Phoenix, the tourist and visitor industry has brought pressure upon the city to "do something" about the problems which have accompanied deregulation. In both cities major problems occured at their airports. In San Diego the result has been a moratorium on new entry into the industry and limits on airport taxi supply; in Phoenix the airport authorities enacted stringent rules for taxis. Deregulation has had other unintended side effects. Because many of the new providers in the industry concentrate their activities on a few major trip generators, most notabley the airport, they do not represent a real increase in taxi level service. Many new providers do not even attempt to service the telephone request market, which ususally represents at least 70-80 percent of all taxi trips. 8 TRIPS PER TAXI PER DAY Figure 3 TAXI PRODUCTIVITY REVENUE TRIPS PER TAXI PER DAY BEFORE AND AFTER DEREGULATION Seattle San Diego Phoenix N • 1 A•-- n �iMILV..r %Y f� Consequently, the level of service to telephone customers increases little, if at all. In fact, it may even decline. The reason is that existing market providers may be forced to reduce their fleet size (Phoenix is a good example of this) when new competitors take some of their business, and they also usually abandon the airport market because they cannot afford to tie up vehicles for 2 or 3 hours of unproductive waiting. This further reduces the amount of service they can economically supply. As response time is determined by the number of available vehicles controlled by the taxi company the consumer calls, not the total vehicle in the industry, the effect of new entry does not translate automatically into better service. Another side effect of deregulation has been to change the composition of the local taxi industry, often with adverse impacts on its overall capabilities. Most of the new taxi operations formed after deregulation are small companies, loose associations of 9 independent drivers, or simply independent entrepreneurs. They are capable only of prov:.ding taxi service, not other local paratransit services, often they cannot even serve the telephone request market due to lack of dispatching facilities. Moreover, loose driver associations do not possess the managerial capabilities and driver s control needed to provide paratransit service under contract to 7 public agencies. These new operators may also provide a poorer level of service in the taxi market itself than the existing market providers. In Phoenix, one large new company does not serve any short trips. In Seattle, 25 percent of all telephone requests are refused because of short trip length or trip location; In San Diego, the comparable figure rose from 5 percent to 18 percent after deregulation. In contrast, regulated market providers are often prohibited from denying trip request, and most large management controlled taxi companies pride themselves on their level of service. After deregulation, it is uncommon for management controlled taxi operations to enter the industry; most of the new entrants are I independent drivers, not companies. In Milwaukee, in fact, the taxi industry literally disintegrated after deregulation, and no management controlled operations remain. The results of taxicab deregulation have thus largely been negative. Consumers are paying higher, not lower prices. No service innovation has occurred. Response times for telephone service appear not to have improved. Although many more providers are theoretically available to consumers, most of the new operators are concentrated at major generators, where there was already adequate service. The newcomers to the industry are largely loose collections of independent drivers, not management controlled companies with a broad range of local transportation capabilities. The major benefits of deregulation have accured to the new operators. Potential benefits to consumers have not materialzed because of inappropriate market conditions --cost cannot be significantly reduced, productivity is difficult to increase, and information problems deter consumers from shopping about for the "best" operator (two-thirds of Seattle taxi users never engaged in comparison shopping). It bears noting that Atlanta and Fresno have abandoned deregulation because of its drawbacks, and that San Diego is moving to re-establish some regulation. An Approach To Regulatory Change Despite the largely unfavorable results of deregulation to date, there remains two other arguments in favor of this policy. The first is the simple argument of economic equity. Entrepreneurs who wish to enter the taxi industry have questioned equity of reserving the taxi market to existing providers, criticizing this policy as being incompatible with normal economic freedoms in our society. The second consideration is the Boulder decision which, if applied to its maximum potential extent, could be interpreted as precluding municipalities from restricting operating rights to any private economic activity. a i i q i . Both of these issues can easily be resolved however, through a nal4!v of roarwna4hln rAaIIIAhnry • -• -r. I_ -• nh�rane o�� `r h1�Mn �1,nnta, ..y... • ,,.�.�1 deregulating the taxi industry and suffering the . adverse consequences, local governments can replace existing restrictive regulation with qualifying standards for everyone providing taxi service. These standards would include 24 hour a day radio dispatching capability, financial responsibility arrangements adequate for commercial market risks, and a requirement that the operator own or control sufficient vehicles to service the telephone request market in the city. (The minimum number of taxis required of operators is obviously a local determination.) Any operator meeting these standards could provide service in the municipality. This would ensure economic opportunity to the entreprenuer who wishes to establish a new taxicab operation, not just operate a single vehicle in a single portion of the market. Local transportation can only be improved by new full -service taxi operators, not a handful of extra part-time taxi drivers. This approach is also consistent with the Boulder decision in that it does not grant any company an exclusive right to operate in the city: All companies who meet the qualifying standards can become service providers. If cities believe that their existing taxicab regulatory framework no longer serves a valid purpose, the approach outlined above will lead to much more beneficial impacts for local transportation than total deregulation of the taxi industry. �j sm REFERENCES - Teal, R.F., Berglund, M., Nemer, T., and Shreve, R., Urban - Transportation Deregulation in Arizona: First Year Results. Final Report for U.S. Department of Transportation, UNTA, forthcoming 1984. - c Chapel o paratransit services, pel h Hill, North Carolina, The Experiences of U.S. Cities with Taxicab Open Entry. October, 1983. Published by the international Taxicab Association. - Gelb, P. Effects of Taxi Regulatory Revisions in Seattle, Washington. Final Report for U.S. Department of Transportation, -__ UNTA, February, 1983. Gelb, P. Effects of Taxi Regulatory Revisions in San Diego, California. Final Report for U.S. Department of Transportation, UNTA, December 1982. • v I '.' TA -CA -06-u i 2i-w.1 DOT•TSC-UMTA-83-15 MeWment of harlsportatW Urban Mass Transportation tfsroti Adstm Effects of Taxi Regulatory Revision in San Diego, california i f 'i Final Report May 1983 �r t iy r �. UMTA/TSC Project Evaluation Series '�' { Service and Management Demonstration Program J i"Y' V I i 1 , i 4 I i- i� J `'—� - - �/IIIt�:�1s , .Pu':tS� t i �rc._ra• , t � " � .p •� - • t ,:�,:�_.�-�r`..•.� i l Upaia!ii.1 tits - 011oro�oMbn t IBM �i,I NI►bory MOfs s� � � AeurMNs t s � ,l Taxi Regulatory Revision In PortlandOregon. A Case Study Final Report September 1982 1 UMT, DOT- 11 - ; UMTA/TSC Project Evaluation Series Service and Manegement Demonstrations Program :. SAL U.S,Departnwnt of Transportatlon Urban Mass Transportation Administration U M T n- W A-06-0019-83.1 D6i i.il. UiVi i H-63-i4 Effects of Tax! Regulatory - Revision in Seattle, Washington Final Report May 1983 i i 1, t r. ,n UMTA/TSC Project Evaluation Series ' - Service and Management Demonstration Program r� 1' 1 I tit ,