D1107035 APPENDIX B Barnett
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ALJ/RAB/avs Date of Issuance 8/3/2011

Decision 11-07-035 July 28, 2011

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Application of Accelar, Inc. to operate as a scheduled Passenger Stage Corporation between points in San Francisco, Marin, Sonoma, Napa, Alameda, Contra Costa, Solano, San Mateo, Santa Clara, Sacramento, Yolo, Placer, El Dorado, San Joaquin, Stanislaus, Merced, and Fresno Counties in the State of California, and to establish a Zone of Rate Freedom for its services.

Application 10-06-009

(Filed June 15, 2010)

DECISION GRANTING APPLICATION

Accelar, Inc. (Accelar or applicant), a California corporation seeks authority to operate as a scheduled passenger stage corporation (PSC) between fixed points in San Francisco, Marin, Sonoma, Napa, Alameda, Contra Costa, Solano, San Mateo, Santa Clara, Sacramento, Yolo, Placer, El Dorado, San Joaquin, Stanislaus, Merced, and Fresno Counties, State of California, for sports events, concerts, and other public events. Three potential competitors protested the application.

Accelar was founded in November 2006 to bring internet solutions to the group travel services market, in general, and the group transportation services market, in particular. Since its inception, Accelar has used the internet to provide charters, tours, and trips for more than 20 motor coach operators and tour operators across the country. For the booking of charters, tours, and trips, Accelar partners with motor coach operators in each market. Accelar does not own its own fleet of vehicles, but rather contracts with local carriers.

As an example, on October, 2009, Accelar entered into an agreement with the San Francisco 49ers for online booking of 49ers game day packages, including round-trip transportation to and from the game. Accelar marketed and sold these game day transportation packages for the last five 49ers home games of the 2009 season. Accelar worked with several motor coach operators to provide the transportation component of these packages. Accelar and its transportation partners operated from 10 different pick-up locations across Northern California. Included in these packages were 49ers game day tickets, 49ers tailgate party tickets, and several promotional items - 49ers memorabilia, $10 cash card, 49ers Game Day magazine, etc. Accelar has filed this application to acquire authority to provide transportation service to events on an individual fare basis without providing a package of services.

Applicant proposes to offer scheduled PSC service between points in San Francisco, Marin, Sonoma, Napa, Alameda, Contra Costa, Solano, San Mateo, Santa Clara, Sacramento, Yolo, Placer, El Dorado, San Joaquin, Stanislaus, Merced, and Fresno Counties to various sports venues, including Candlestick Park and AT&T Park in San Francisco, U.C. Berkeley's Memorial Stadium in Berkeley, The Oakland/Alameda County Coliseum in Oakland, and the HP Pavilion in San Jose. Applicant will provide its services including but not limited to football games, baseball games, basketball games, ice hockey games, soccer games, concerts, and other public events.

In 2008, Accelar offered transportation service to New York Giants home football games in New Jersey and Boston Red Sox home games at Fenway Park in Boston from Rhode Island and other locations. Accelar developed internet ticket booking websites in New York and Rhode Island to offer football and baseball packages, which included transportation.

Based on its success in launching these websites and seeing an opportunity to offer a different game day experience, Accelar decided to build and market its own vertical sports/event packages and offer its own branded sports and event services. Accelar has entered into a four-year agreement with the San Francisco 49ers to offer packages on a bigger and broader scale. Accelar is planning to increase value in the 49ersExperience packages with more promotional items offered by the 49ersExperience sponsors. Accelar is also in discussions with several other sports and event organizers in California to host similar promotions on behalf of the sports franchises and events.

Unlike other transit-like services with multiple stops along the way, Accelar expects to have only one stop for the routes along which it intends to operate. Depending on the type and venue for sports, events, and destinations, applicant expects to enter into agreements with motor coach operators, mini-bus, mini-van and limousine operators best suited to provide transportation services for those venues. Applicant is aware of the Commission's insurance requirements relating to PSC and is prepared to comply with such insurance requirements.

Applicant proposes to charge for its PSC services as part of a game day package on an individual fare basis and a graduated basis depending on the distance of the starting and ending points of the ride from each county. Rates for stops between these points and the final destination will decrease the closer the stop gets to the event venue. The actual schedule of stops and rates will be filed with applicant's tariff.

Accelar further requests a Zone of Rate Freedom (ZORF) with regard to its rates as authorized by Pub. Util. Code § 454.2. More specifically, applicant proposes that for regular fares up to $19.99, it be able to adjust such rates up or down by $5.00. For regular fares between $20 and $29.99, Accelar proposes an adjustment, up or down by $10. For regular fares between $30 and $44.99, the proposed adjustment, up or down would be $15. And for regular fares $45 and above, the proposed adjustment, up or down would be $25.

Pub. Util. Code § 1032(b) sets forth a list of eight criteria that an applicant must meet in order to be granted a PSC certificate. With respect to each of the eight criteria - which deal mainly with an applicant's financial and operational fitness and its ability to comply with various safety regulations - applicant has demonstrated its compliance with such criteria. Accelar's PSC services will result in the reduction of individual passenger vehicles using the regional highways and contribute to the reduction of carbon dioxide and other greenhouse gases in the atmosphere.

Accelar's financial ability to provide the proposed PSC services is shown by applicant's balance sheet and income (profit and loss) statements for the years 2006 through 2009. The income statement includes a pro forma projected profit and loss statement for its estimated 2010 operations. Because Accelar is a privately held corporation, its financial statements are not available to the public and their disclosure would result in Accelar becoming competitively disadvantaged. Therefore, in order to protect the confidentiality of its financial information, applicant submits such information under seal.

Protestants argue that applicant has not shown that it is fit to operate as a PSC; but protestants presented no witnesses nor other evidence. An evidentiary hearing was held on January 26, 2011.1 Applicant presented its president who testified to applicant's fitness and presented financial records to show its capability to perform the sought authority. As we pointed in a comparable situation, if applicant's service fails other certificated operators are available to fill the void. (Re Application of PCSTC. D.00-09-054 in A.99-08-037, mimeo, at 5.)

Comments on Proposed Decision

The proposed decision of ALJ Barnett in this matter was mailed to the parties in accordance with Section 311 of the Public Utilities Code, and comments were allowed under Rule 14.3 of the Commission's Rules of Practice and Procedure. Comments were filed on June 9, 2011 by the City and County of San Francisco (City), and by Silverado Stages. The comments of Silverado Stages merely repeat arguments previously discussed and need no further elaboration. The comments of the City seek incorporation of a Stipulation between the City and Accelar. We shall do so.

Accelar and the City entered into the Stipulation on September 22, 2010. A copy of the Stipulation is attached as Appendix B. The Stipulation was filed with the Commission the same day. Under the terms of the Stipulation, Accelar agreed to certain conditions concerning parking and passenger loading and unloading while operating in the City, and in return, the City agreed not to oppose the application. Accelar and City also agreed that these conditions should be incorporated into any Commission decision granting the application. The specific conditions agreed to were as follows:

a) Accelar will not use any of the City's Muni bus stops (Red Zones) for passenger loading or unloading;

b) Accelar will not double-park on City streets in the course of providing service; and

c) When providing service to or from AT&T Park in San Francisco, Accelar will use only the designated bus parking area for AT&T Park located on the west side of Terry Francois Boulevard across the street from Piers 48 and 50 for passenger loading and unloading and for parking during events, and Accelar vehicles shall not stop in any of the NO STOPPING zones located around the periphery of AT&T Park or on nearby streets.

The agreement between the parties is appropriate and reasonable.

1 This application was submitted on March 7, 2011 upon the filing of the brief by Silverado Stages Inc.

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