200 S. Anaheim Blvd.
Suite 162
Anaheim, CA 92805
Tel: (714) 765-5139
Fax: (714) 765-5280
www.anaheim.net
CITY COUNCIL AGENDA REPORT
City of Anaheim
PLANNING AND BUILDING DEPARTMENT
DATE: NOVEMBER 1, 2022
FROM: PLANNING AND BUILDING DEPARTMENT
SUBJECT: AWARD OF TAXI FRANCHISES
ATTACHMENT (Y/N): YES ITEM # 17
RECOMMENDATIONS:
That the City Council, following a public hearing, by Motion, take the following actions:
1) Introduce an Ordinance awarding a taxi franchise to Cabco Yellow, Inc. dba California Yellow Cab, for 205 taxicabs for a 10 year term through March 1, 2033; and
2) Introduce an Ordinance awarding a taxi franchise to American Ground Transport, Inc. and American Ground Transportation, LLC both entities dba 24/7 Taxi Cab, for 50 taxicabs for a 10 year term through March 1, 2023.
DISCUSSION:
On October 4, 2022, the City Council, by Resolution, gave notice of the taxicab applications and set a public hearing to award taxi franchise(s) to be held on November 1, 2022.
A Request for Proposals (RFP) for taxicab services was distributed to service providers on August 15, 2022, with a submittal deadline of September 14, 2022. A mandatory proposer’s conference was held on August 29, 2022, providing an opportunity for questions on the RFP. Two proposals were received to provide taxi services: California Yellow Cab and 24/7 Taxi Cab. Both met the minimum proposal requirements set forth in the RFP and were deemed complete.
On August 18, 2022, the City Manager appointed a Taxi Advisory Committee (TAC) consisting of City staff from the Convention Center, Police Department, Community Services Department, and Community Preservation, as well as a representative from Visit Anaheim. The TAC is authorized by the Municipal Code to evaluate franchise applications and make recommendations to City Council on the awarding of franchises.
The TAC was provided with the City’s RFP prior to evaluating the proposals received by each company. The TAC was further advised that it is within Council’s authority to grant franchises to multiple companies. Proposals were rated on the following rating criteria:
Award of Taxi Franchise
November 1, 2022
Company experience 10 points
Management experience 10 points
Financial capacity and stability 15 points
Management and Quality Assurance 30 points
Facilities and Equipment 25 points
Fleet sustainability 5 points
Fleet accessibility 5 points
Total Possible Points: 100 points
As part of their respective proposals, California Yellow Cab requested any amount of vehicle licenses, up to the total number of available taxicabs of 255 and 24/7 Taxi Cab requested 50 licenses. The TAC evaluated the proposals and prepared a Recommendations Report (Attachment 4) dated October 18, 2022, for consideration by Council. The TAC found that both proposals met the stated minimum requirements of the RFP; however, California Yellow Cab demonstrated a stronger organizational infrastructure and capacity to expand their operations to incorporate a large volume of additional taxicabs. 24/7 Taxi Cab demonstrated some limited capability to expand their operations, but the TAC expressed reservations about the service provider’s ability to successfully deploy and operate a fleet of 50 taxicabs. Therefore, the TAC recommends that 205 licenses be awarded to California Yellow Cab and 50 licenses be awarded to 24/7 Taxi Cab. The TAC recommendation to provide licenses to both service providers is based, in part, on the desire to maintain an element of competition and avoid a monopoly in the taxi marketplace to encourage a high quality of service to taxicab customers.
IMPACT ON BUDGET:
The Taxi Franchise fees will be collected for the duration of the franchise and have been included in the Planning and Building Department’s budget.
Respectfully submitted,
Ted White
Planning and Building Director
Attachments:
1. Ordinance for Cabco Yellow, Inc. dba California Yellow Cab
2. Ordinance for American Ground Transportation, Inc. and American Ground Transportation, LLC dba 24/7 Taxi Cab
3. Taxicab Advisory Committee Appointment Memorandum
4. Taxicab Advisory Committee Recommendation Report
5. 2022 Financial Review by Audit Division