Discussion
The application requests authority to transport passengers, their baggage, and express1 as a PSC. Applicant proposes to provide on-call, "county-to-county" transportation between points in 14 counties.2 It describes its customer base as an underserved community of predominately Spanish speaking families, business people, and migrant workers traveling between work sites and between communities in California. According to Applicant, these travelers typically choose a transportation service based on price and common language. Applicant states that its owners belong to the community and have a clear understanding of its culture and transportation needs.
The service will operate daily, 24 hours per day. It will offer passengers the convenience of flexible pickup and drop-off points Operations will be conducted initially with twelve 14-passenger vans. Vehicles will be added to the fleet as needed to meet passenger demand. Attached to the application as Exhibit D is an unaudited balance sheet for Applicant's founding members that discloses assets of $337,000, liabilities of $4,000, and net worth of $333,000. Applicant states its owner-members will contribute any additional resources necessary to operate and ensure the viability of the service.
The proposed fares, as shown in Exhibit B of the application, range between $10 and $90. Applicant requests authority to establish a ZORF of $5 above and below the proposed fares of $20 and under, $10 above and below the proposed fares greater than $20 and less than $40, and $20 above and below the proposed fares of $40 and over. The minimum fare will be $5. Applicant will compete with other PSCs, public transit, 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 February 10, 2010. Applicant requests a waiver from the provisions of Rule 3.3(b) of the Commission's Rules of Practice and Procedure which require service of a notice of the application on all city and county officials within whose boundaries the passengers will be loaded or unloaded. Applicant served a notice of the application to the involved counties and five cities, and sent a copy of the application to the public transit operators in the service area. Applicant believes the Commission's Daily Calendar provides adequate notice to parties that may have an interest in the application. We shall exercise the discretion accorded to us by Rule 1.2 and grant the waiver requested by Applicant because it will be providing on-call service, not scheduled service, and service on all cities in the service territory would be burdensome.
In Resolution ALJ 176-3249 dated February 25, 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 176-3249.
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.
1. Applicant requests authority to operate as a PSC to transport passengers, their baggage, and express on an on-call basis between points in the Counties of San Diego, Orange, Los Angeles, San Bernardino, Riverside, Kern, Monterey, Tulare, Fresno, Santa Clara, San Mateo, San Francisco, Alameda, and Sacramento.
2. Applicant requests authority to establish a ZORF of $5 above and below the proposed fares of $20 and under, $10 above and below the proposed fares greater than $20 and less than $40, and $20 above and below the proposed fares of $40 and over, as shown in Exhibit B of the application. The minimum fare will be $5.
3. Applicant will compete with other PSCs, public transit, taxicabs, charter vehicles, and private automobiles in its operations. The ZORF is fair and reasonable.
4. Applicant requests a waiver of the notice requirements of Rule 3.3(b) of the Rules of Practice and Procedure as it has served a notice of the application to the involved counties and five cities, and sent a copy of the application to the public transit operators in the service area.
5. Public convenience and necessity requires the proposed service.
6. No protest to the application has been filed.
7. A public hearing is not necessary.
8. It can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment.
1. Public convenience and necessity has been demonstrated and the application should be granted.
2. The request to waive the notice requirements of Rule 3.3(b) should be granted.
3. The request for a ZORF should be granted.
4. 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.
5. 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 Leones Tours, LLC (Applicant), a limited liability company, authorizing it to operate as a passenger stage corporation (PSC), as defined in Pub. Util. Code § 226, to transport passengers, their baggage, and express between the points and over the routes set forth in Appendix PSC-26019, subject to the conditions contained in the following paragraphs.
2. Applicant 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 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 $5 above and below the proposed fares of $20 and under, $10 above and below the proposed fares greater than $20 and less than $40, and $20 above and below the proposed fares of $40 and over, as shown in Exhibit B of the application. The minimum fare will be $5.
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. 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.
7. 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.
8. The CPCN to operate as PSC-26019, granted herein, expires unless exercised within 120 days after the effective date of this decision.
9. The notice requirements of Rule 3.3(b) of the Commission's Rules of Practice and Procedure are waived as a notice or a copy of the application has been served upon parties that may have an interest in this proceeding
10. The Application is granted as set forth above.
11. This proceeding is closed.
This decision is effective today.
Dated April 8, 2010, at San Francisco, California.
MICHAEL R. PEEVEY
President
DIAN M. GRUENEICH
JOHN A. BOHN
TIMOTHY ALAN SIMON
NANCY E. RYAN
Commissioners
Appendix PSC-26019 Leones Tours, LLC Original Title Page
(a limited liability company)
CERTIFICATE
OF
PUBLIC CONVENIENCE AND NECESSITY
AS A PASSENGER STAGE CORPORATION
PSC-26019
-------------------------------
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-26019 Leones Tours, LLC Original Page 1
(a limited liability company)
I N D E X
Page
SECTION I. GENERAL AUTHORIZATIONS, RESTRICTIONS,
LIMITATIONS, AND SPECIFICATIONS 2
SECTION II. SERVICE AREA 3
SECTION III. ROUTE DESCRIPTION 3
Appendix PSC-26019 Leones Tours, LLC Original Page 2
(a limited liability company)
SECTION I. GENERAL AUTHORIZATIONS, RESTRICTIONS, LIMITATIONS, AND SPECIFICATIONS.
Leones Tours, LLC, a limited liability company, by the certificate of public convenience and necessity granted by the decision noted in the foot of the margin, is authorized to transport passengers, their baggage, and express on an on-call 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. The term "on-call," as used, refers to service which is authorized to be rendered dependent on the demands of passengers. The tariffs shall show the conditions under which each authorized on-call service will be provided, and shall include the description of the boundary of each fare zone, except when a single fare is charged to all points within a single incorporated city.
C. No passengers shall be transported except those having a point of origin and destination as described in Section II.
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-26019 Leones Tours, LLC Original Page 3
(a limited liability company)
SECTION II. SERVICE AREA.
All points in the Counties of San Diego, Orange, Los Angeles, San Bernardino, Riverside, Kern, Monterey, Tulare, Fresno, Santa Clara, San Mateo, San Francisco, Alameda, and Sacramento.
SECTION III. ROUTE DESCRIPTION.
Commencing from any point described in Section II, then over the most convenient streets and highways to any other point described in Section II.
1 Express shipments will be limited to packages and unaccompanied baggage weighing not more than 30 pounds per item.
2 The counties to be served are San Diego, Orange, Los Angeles, San Bernardino, Riverside, Kern, Monterey, Tulare, Fresno, Santa Clara, San Mateo, San Francisco, Alameda, and Sacramento.
