Word Document

Decision

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Application of First Class Shuttle, Inc., dba First Class Shuttle to operate as a Scheduled Passenger Stage Corporation between Redding, California and Sacramento, California, both ways, and various points in between; and to establish a Zone of Rate Freedom.

Application 10-07-021

(Filed July 22, 2010)

DECISION

Summary

This decision grants the application of First Class Shuttle, Inc. (Applicant), a corporation, pursuant to Pub. Util. Code § 1031 et seq., for a certificate of public convenience and necessity to operate as a passenger stage corporation (PSC), as defined in Pub. Util. Code § 226, and to establish a zone of rate freedom (ZORF), pursuant to Pub. Util. Code § 454.2.

Discussion

The application, as supplemented by correspondence dated August 19, 2010, requests authority to operate as a scheduled PSC to transport passengers and their baggage between Redding and Sacramento International Airport (SMF), with stops en route at Red Bluff, Corning, Orland, and Willows. Applicant states that a significant number of passengers travel between these points. It indicates a study commissioned by Redding Airport several years ago found that 80,000 passengers a year travel between the surrounding five-county area and SMF. Applicant's goal is to transport between 8,000 and 10,000 passengers annually.

Applicant advises that it has the knowledge and ability to conduct the proposed service. Its two principals have a total of approximately 45 years' experience in the transportation and travel fields. Applicant has held a charter-party carrier permit (TCP 24920-P) from the Commission since May 2009. It will operate the service with a 6-passenger van and a 14-passenger van. According to Applicant's financial statement, the vans are its primary assets, with a combined value of $26,700.

The proposed fares are $55 one way and $95 round trip. Applicant requests authority to establish a ZORF of 20% above and below these fares. It will compete with taxicabs, charter vehicles, and private automobiles in its service area. This competitive environment should result in Applicant pricing its services at a reasonable level. Many other PSCs have been granted ZORFs. The requested ZORF is generally consistent with the ZORFS held by other PSCs.

Notice of filing of the application appeared in the Commission's Daily Calendar on July 28, 2010. Applicant served a notice of the application to the affected governmental entities.

In Resolution ALJ 176-3258 dated July 29, 2010, the Commission preliminarily categorized this application as ratesetting, and preliminarily determined that hearings were not necessary. No protest has been received. Given this status, public hearing is not necessary, and it is not necessary to alter the preliminary determinations made in Resolution ALJ 176-3258.

This is an uncontested matter in which the decision grants the relief requested. Accordingly, pursuant to Pub. Util. Code § 311(g)(2), the otherwise applicable 30-day period for public review and comment is being waived.

Assignment of Proceeding

Richard Clark is the assigned Examiner in this proceeding.

Findings of Fact

1. The application requests authority to operate as a scheduled PSC to transport passengers and their baggage between Redding and SMF, with stops at Red Bluff, Corning, Orland, and Willows.

2. Public convenience and necessity requires the proposed service.

3. Applicant requests authority to establish a ZORF of 20% above and below the proposed fares of $55 one way and $95 round trip.

4. Applicant will compete with taxicabs, charter vehicles, and private automobiles in its operation. The ZORF is fair and reasonable.

5. No protest to the application has been filed.

6. A public hearing is not necessary.

7. It can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment.

Conclusions of Law

1. Public convenience and necessity has been demonstrated and the application should be granted.

2. The request for a ZORF should be granted.

3. Before Applicant changes any fares under the ZORF authorized below, Applicant should give this Commission at least ten days' notice. The tariff should show the high and low ends of the ZORF and the then currently effective fare between each pair of service points.

4. Since the matter is uncontested, the decision should be effective on the date it is signed.

ORDER

IT IS ORDERED that:

1. A certificate of public convenience and necessity (CPCN) is granted to First Class Shuttle, Inc. (Applicant), a corporation, authorizing it to operate as a passenger stage corporation (PSC), as defined in Pub. Util. Code § 226, to transport passengers and their baggage between the points and over the routes set forth in Appendix PSC-24920, subject to the conditions contained in the following paragraphs.

2. Applicants shall:

a. File a written acceptance of this certificate within 30 days after this decision is effective.

b. Establish the authorized service and file tariffs and timetables within 120 days after this decision is effective.

c. File tariffs on or after the effective date of this decision. They shall become effective ten days or more after the effective date of this decision, provided that the Commission and the public are given not less than ten days' notice.

d. Comply with General Orders Series 101 and 158, and the California Highway Patrol (CHP) safety rules.

e. Comply with the Commission's controlled substance and alcohol testing certification program pursuant to Pub. Util. Code § 1032.1 and General Order Series 158.

f. Remit to the Commission the Transportation Reimbursement Fee required by Pub. Util. Code § 423 when notified by mail to do so.

g. Comply with Pub. Util. Code §§ 460.7 and 1043, relating to the Workers' Compensation laws of this state.

h. Enroll all drivers in the pull notice system as required by Vehicle Code § 1808.1.

3. Applicant is authorized under Pub. Util. Code § 454.2 to establish a zone of rate freedom (ZORF) of 20% above and below the proposed fares described in the application.

4. Applicant shall file a ZORF tariff in accordance with the application on not less than ten days' notice to the Commission and to the public. The ZORF shall expire unless exercised within 120 days after the effective date of this decision.

5. Applicant may make changes within the ZORF by filing amended tariffs on not less than ten days' notice to the Commission and to the public. The tariff shall include the authorized maximum and minimum fares and the fare to be charged between each pair of service points.

6. In addition to posting and filing tariffs, Applicant shall post notices explaining fare changes in its terminals and passenger-carrying vehicles. Such notices shall be posted at least ten days before the effective date of the fare changes and shall remain posted for at least 30 days.

7. Applicant is authorized to begin operations on the date that the Consumer Protection and Safety Division mails a notice to Applicant that its evidence of insurance and other documents required by Ordering Paragraph 2 have been filed with the Commission and that the CHP has approved the use of Applicant's vehicles for service.

8. Before beginning service to any airport, Applicant shall notify the airport's governing body. Applicant shall not operate into or on airport property unless such operations are authorized by the airport's governing body.

9. The CPCN to operate as PSC-24920, granted herein, expires unless exercised within 120 days after the effective date of this decision.

10. The Application is granted as set forth above.

11. This proceeding is closed.

This decision is effective today.

Dated , at San Francisco, California.

Appendix PSC-24920 First Class Shuttle, Inc. Original Title Page

CERTIFICATE

OF

PUBLIC CONVENIENCE AND NECESSITY

AS A PASSENGER STAGE CORPORATION

PSC-24920

-------------------------------

Showing passenger stage operative rights, restrictions,

limitations, exceptions, and privileges.

-------------------------------

All changes and amendments as authorized by

the Public Utilities Commission of the State of California

will be made as revised pages or added original pages.

-------------------------------

Appendix PSC-24920 First Class Shuttle, Inc. Original Page 1

I N D E X

Page

SECTION I. GENERAL AUTHORIZATIONS, RESTRICTIONS,

SECTION II. SERVICE AREA 3

SECTION III. ROUTE DESCRIPTION 3

Appendix PSC-24920 First Class Shuttle, Inc. Original Page 2

SECTION I. GENERAL AUTHORIZATIONS, RESTRICTIONS, LIMITATIONS, AND SPECIFICATIONS.

First Class Shuttle, Inc., a corporation, by the certificate of public convenience and necessity granted by the decision noted in the foot of the margin, is authorized to transport passengers and their baggage on a scheduled basis between the points described in Section II, over the routes described in Section III, subject, however, to the authority of this Commission to change or modify this authority at any time and subject to the following provisions:

    A. When a route description is given in one direction, it applies to operation in either direction unless otherwise indicated.

    B. Service will be operated only at the points described in Section II and over the routes described in Section III. A description of all the stop points and the arrival and departure times from such points shall be indicated in the timetable filed with the Commission.

    C. Only passengers having a point of origin or destination of Sacramento International Airport shall be transported.

    D. This certificate does not authorize the holder to conduct any operation on the property of any airport unless such operation is authorized by the airport authority involved.

Appendix PSC-24920 First Class Shuttle, Inc. Original Page 3

SECTION II. SERVICE AREA.

SECTION III. ROUTE DESCRIPTION.

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