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STATE OF CALIFORNIA ARNOLD SCHWARZENEGGER, Governor

PUBLIC UTILITIES COMMISSION

505 VAN NESS AVENUE

SAN FRANCISCO, CA 94102-329

October 12, 2010 Agenda ID #9839

TO PARTIES OF RECORD IN DRAFT RESOLUTION ALJ-261

This draft resolution regarding Affirming in part, and dismissing in part, Citation F-5182 issued to James Brice dba Surf City Shuttle, and Surf City Shuttle, Inc. will be on the agenda at the November 19, 2010 Commission meeting. The Commission may then vote on this draft resolution, or it may postpone a vote.

When the Commission acts on the draft resolution, it may adopt all or part of it as written, amend or modify it, or set it aside and prepare its own order. Only when the Commission acts does the resolution become binding on the parties.

You may serve comments on the draft resolution. Opening comments shall be served no later than November 1, 2010, and reply comments shall be served no later than November 8, 2010. Service is required on all persons on the attached service list. Comments shall be served consistent with the requirements of Pub. Util. Code § 311(g) and Rule 14.5 of the Rules of Practice and Procedure.

Finally, comments must be served separately on Administrative Law Judge Hallie Yacknin at hsy@cpuc.ca.gov, and for that purpose I suggest hand delivery, overnight mail, or other expeditious method of service.

/s/ KAREN V. CLOPTON

Karen V. Clopton, Chief

Administrative Law Judge

KVC:lil

Attachment

PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

R E S O L U T I O N

RESOLUTION ALJ-261. Affirming in part, and dismissing in part, Citation F-5182 issued to James Brice dba Surf City Shuttle, and Surf City Shuttle, Inc.

SUMMARY

This resolution resolves the appeal of Citation F-5182, issued to James Brice an individual dba Surf City Shuttle (TCP 20114-B, revoked July 30, 2009) and Surf City Shuttle, Inc. (TCP 25495-B, effective December 23, 2009) (jointly referred to as "Respondents") by the Commission's Consumer Protection and Safety Division on May 25, 2010, pursuant to its authority under Resolution ALJ-187.

Citation F-5182 issues a fine of $15,000 for eight violations (331 counts) of the Public Utilities Code, the Commission's General Order 157-D and the California Vehicle Code during the period from May 19, 2009, through November 9, 2009.

James Brice, as Chief Financial Officer of Surf City Shuttle, Inc., submitted an appeal of Citation F-5182 on June 11, 2010. An evidentiary hearing was held in the Commission's Courtroom in San Francisco on September 15, 2010, and the matter was submitted upon the receipt of late-filed exhibits on September 20, 2010. Based on the record, we affirm the citation and order payment of the $15,000 fine, except that we calculate 2,388 counts of violating the Public Utilities Code, rather than 331 counts. We order Respondents James Brice an individual dba Surf City Shuttle, and Surf City Shuttle, Inc. to pay the fine and to cease and desist from continuing each and every cited violation.

VIOLATION

Brice stipulates to these violations.

CALCULATION OF FINE:

Pursuant to Pub. Util. Code § 5413, charter-party carriers are subject to a penalty of not more than $1,000 for each violation of Pub. Util. Code § 5351 et seq. (concerning Charter-Party Carrier of Passengers) may be fined up to $1,000 for each violation of the code, with each day of a continuing violation constituting a separate violation pursuant to Pub. Util. Code § 5415.

Pursuant to Pub. Util. Code § 5414.5, every corporation or person who advertises or holds itself out as a charter-party carrier without having a valid permit is guilty of a misdemeanor punishable, if an individual, by a fine of not more than $1,000 or by imprisonment in the county jail for not more than six months or by both, or, if a corporation, by a fine of not more than $5,000, with each day of a continuing violation constituting a separate violation pursuant to Pub. Util. Code § 5415.

In determining whether to impose a fine and, if so, at what level, the Commission historically considers five factors, namely, the severity of the offense, the carrier's conduct, the financial resources of the carrier, the role of precedent, and the totality of circumstances in furtherance of the public interest. (See, e.g., the Affiliate Transactions Rulemaking Decision, Decision 98-12-075, Appendix A.)

(Rulemaking to Establish Rules for Enforcement of the Standards of Conduct Governing Relationships between Energy Utilities and Their Affiliates Adopted by the Commission in Decision (D.) 97-12-088, &_butType=3&_butStat=2&_butNum=2&_butInline=1&_butinfo=&_fmtstr=FULL&docnum=41&_startdoc=41&wchp=dGLzVlb-zSkAl&_md5=a01370af3466d65c995eca40edae736d" target="_top">84 CPUC2d 155, 188 (D.98-12-075, App. A.)
assessing fines, the Commission generally considers the following factors: (1) the severity of the offense, including physical and economic harm to others, economic gain to the respondent, and harm to the regulatory process; (2) the respondent's conduct in preventing, detecting, correcting, disclosing, and rectifying the violation; (3) the amount of fine that will achieve the objective of deterrence based on the respondent's financial resources; (4) fines or sanctions that the Commission has imposed under reasonably comparable factual circumstances; and (5) the totality of circumstances.

LIABLE PARTY:

Brice asserts that, in the event that the Commission imposes a fine in this matter, Surf City Shuttle, Inc., and not James Brice dba Surf City Shuttle, is individually liable for it, because James Brice dba Surf City Shuttle allegedly ceased doing business before the start of the investigation period. In support of this assertion, Brice cites to the undisputed facts that (1) a business checking account for James W. Brice and Surf City Shuttle, dated April 17, 2009, showed a zero balance and no deposits (other than a single deposit of $146.86 apparently to cover an overdraft) between March 19, 2009, and April 17, 2009, and (2) Surf City Shuttle, Inc. incorporated on January 1, 2009.

Record evidence conflicting with Brice's assertion that James Brice dba Surf City Shuttle should be jointly liable for a fine includes the fact that (1) James Brice dba Surf City Shuttle advertised in the Santa Cruz Weekly and on two websites during the investigation period, and (2) while the trip records provided by Brice refer to company vehicles "SRFCTY3" and "SRFCTY4," and DMV records show a vehicle with license plate "SRFCTY3" as registered to Surf City Shuttle, Inc., the DMV records also show a vehicle with license place "SRFCTY5" as registered to James W. Brice dba Surf City Shuttle (there is no record evidence of DMV registration for a vehicle with license plate "SRFCTY4.")

COMMENTS ON DRAFT RESOLUTION

The draft resolution of the Administrative Law Judge Division was mailed to the parties in accordance with Public Utilities Code Section 311(g). Comments were filed on _____________, by ________________________and Reply Comments on ______________, by ______________________________.

FINDINGS OF FACTS:

CONCLUSIONS OF LAW:

THEREFORE, IT IS ORDERED that:

This resolution is effective today.

I certify that the foregoing resolution was duly introduced, passed, and adopted at a conference of the Public Utilities Commission of the State of California held on _______________, the following Commissioners voting favorably thereon:

INFORMATION REGARDING SERVICE

I have provided notification of the foregoing Draft Resolution ALJ-261 to the electronic mail addresses on the attached service lists, as well as a Notice of Availability by U.S. mail. I have served a hard copy of the foregoing Draft Resolution ALJ-261 by U.S. mail on those persons on the attached service lists that do not have e-mail addresses.

Dated October 12, 2010, at San Francisco, California.

CPSD Citation Number F-5182

Service List

The Service List will be as follows:

James Brice dba Surf City Shuttle

Surf City Shuttle Inc.

145 Calvin Place

Santa Cruz, CA 95060

E-mail: pickup@surfcityshuttle.com

Jason J. Zeller

California Public Utilities Commission

Legal Division

505 Van Ness Avenue, Room 5030

San Francisco, CA 94102

E-mail: jjz@cpuc.ca.gov

   

Hallie Yacknin

Administrative Law Judge

California Public Utilities Commission

505 Van Ness Avenue, Room 5005

San Francisco, CA 94102

E-mail: hsy@cpuc.ca.gov

(Assigned Administrative Law Judge)

Karen Miller

California Public Utilities Commission

Public Advisor Office

505 Van Ness Avenue, Room 2103

San Francisco, CA 94102

E-mail: knr@cpuc.ca.gov

   

Selina Shek, Attorney for CPSD

California Public Utilities Commission

Legal Division

505 Van Ness Avenue, Room 4107

San Francisco, CA 94102

E-mail: sel@cpuc.ca.gov

Lynn Stanghellini

California Public Utilities Commission

Chief Court Reporter

505 Van Ness Avenue, Room 2106

San Francisco, CA 94102

E-mail: las@cpuc.ca.gov

   

Suong Le, Supervising Investigator

Transportation Enforcement Section

California Public Utilities Commission

505 Van Ness Avenue, Area 2-C

San Francisco, CA 94102

E-mail: stl@cpuc.ca.gov

Julie Halligan, Deputy Director

Consumer Protection & Safety Division

California Public Utilities Commission

505 Van Ness Avenue, Room 2203

San Francisco, CA 94102

E-mail: jmh@cpuc.ca.gov

   

Paul Wuerstle, Manager

Consumer Protection & Safety Division

California Public Utilities Commission

505 Van Ness Avenue, Room 2107

San Francisco, CA 94102

E-mail: pwu@cpuc.ca.gov

 
   

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