Assignment of Proceeding

Susan P. Kennedy is the Assigned Commissioner and Bruce DeBerry is the assigned ALJ in this proceeding.

Findings of Fact

1. Silverado requests authority to establish a ZORF of $8 and $10 below the proposed fares shown in Exhibit C of the application.

2. Silverado will compete with PSCs, taxicabs, limousines, public transit, and private automobiles in his operations. The ZORF is fair and reasonable.

3. Silverado currently holds authority to operate as a charter party carrier.

4. Airbus holds authority to provide round trip service between points in Santa Barbara County and LAX, and has been operating since 1983.

5. Airbus uses buses with an average age of about 17 years.

6. CCS has been providing scheduled service between Santa Maria and LAX since 2001, and operates mostly vans with an average age of one to five years.

7. AST holds authority to operate scheduled service in the Counties, and recently received authority to operate service to the Ports.

8. The record does not indicate whether AST currently provides any service to the Ports.

9. Alternative transportation to LAX and the Ports includes rental cars, for-hire limousines, charter buses and an on-call shuttle service from the Counties.

10. Amtrack is not considered as an alternative means of transportation as it does not provide service to LAX or the Ports.

11. No party quantified the maximum demand for service in the Counties, but Silverado estimates that as many as 9,200 passengers monthly might travel by bus from areas north of Santa Barbara to LAX.

12. Although Silverado proposes to use existing buses for its initial service, Silverado expects to provide service using a new 2006 bus equipped with satellite television and other amenities.

13. Silverado proposes to charge slightly higher bus fares than currently charged by existing carriers.

14. Silverado requests authority to establish a ZORF of $8 above and $10 below the proposed fares shown in Exhibit C of the Application.

15. Silverado will compete with PSCs, taxicabs, limousines, public transit, and private automobiles in his operations. The ZORF is fair and reasonable.

16. Silverado will compete with AST, Airbus and CCS in different portions of the Counties since Silverado's proposed service runs through each of the territories currently served by AST, Airbus and CCS.

17. There is a public need in the Counties for the new scheduled service proposed by Silverado.

18. The current service provided by Airbus, AST and CCS in their territories is adequate based on customer satisfaction, equipment and fares.

19. Silverado currently operates a fleet of 23 buses providing charter service and Amtrack service that are also available to provide backup for Silverado's proposed PSC operation.

Conclusions of Law

1. Section 1032(b) does not preclude the granting of a certificate of public convenience and necessity to a competitor offering different listed services and pricing in the same territory.

2. There is a public need for competitive scheduled passenger stage services between the Counties and LAX and the Ports.

3. Silverado's Application should be granted to the extent provided in the order.

4. Silverado's request for authority to establish a ZORF for this service should be approved.

5. All motions not previously ruled on should be denied.

ORDER

IT IS ORDERED that:

1. Applicant is authorized under Pub. Util. Code § 454.2 to establish a zone of rate freedom (ZORF) of $8 above and $10 below the proposed fares shown in Exhibit C of the application.

2. 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 order.

3. 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.

4. In addition to posting and filing tariffs, Applicant shall post notices explaining fare changes in his 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.

5. A certificate of public convenience and necessity (CPCN) is granted to Silverado Stages, Inc. (Applicant) authorizing it to operate as a passenger stage corporation (PSC) as defined in Pub. Util. Code § 226, between the points and over routes set forth in Appendix PSC-9069, subject to the conditions contained in the following paragraphs.

6. All services operated to an airport pursuant to this order shall comply with the rules and regulations of the airport's governing authority.

7. Applicant shall operate services pursuant to authority granted herein in such a manner as to avoid conflict with any other operator. In order to ensure that conflict does not occur, Applicant shall comply with the following conditions:

a) Vehicles shall be prominently marked to identify the operator.

b) Each driver, and the company by whom he or she is employed, shall be readily identifiable, and shall be clearly distinguished from others through the use of caps, badges or uniform apparel, or any combination thereof, which enable passengers to make such identification and distinction.

c) Except as directed by governing authorities at the airports and the ports at Long Beach and San Pedro, pick-up locations for passengers shall not be the same locations as currently utilized by American Star Tours, Santa Barbara Airbus, and Central Coast Shuttle, Inc.

8. Applicant shall:

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

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

c) State in its tariffs and timetables when service will start; allow at least 10 days' notice to the Commission; and make timetables and tariffs effective 10 or more days after this order is effective.

d) Maintain accounting records in conformity with the Uniform System of Accounts.

e) Remit to the Commission the Transportation Reimbursement Fee required by Pub. Util. Code § 4303 when notified by mail to do so.

f) Comply with Pub. Util. Code §§ 460.7 and 1043 relating to workers' compensation laws of this State.

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

10. Applicant is authorized under Pub. Util. Code § 454.2 to establish a zone of rate freedom (ZORF) of $8 above and $10 below the proposed fares shown in Exhibit C of the Application.

11. 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 order.

12. 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.

13. In addition to posting and filing tariffs, Applicant shall post notices explaining fare changes in his 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.

14. Application 04-07-033 is closed.

This order is effective today.

Dated _____________________, at San Francisco, California.

APPENDIX A

List of Appearances


Jonathan P. Dotson
AMERICAN STAR TOURS
897 OAK PARK BLVD., NO. 204
PISMO BEACH CA 93449
(805) 343-4444
jonathan@americanstarinc.net

For: American Star

Robert A. Dockerty
Operations Manager
AMERICAN STAR TOURS
897 OAK PARK, NO. 204
PISMO BEACH CA 93449
(805) 343-4444
bob@americanstarinc.net

For: American Star

Khalid M. Saifi
CENTRAL COAST SHUTTLE SERVICES, INC.
3249 TERMINAL DRIVE, NO. 102
SANTA MARIA CA 93455
(805) 928-1977

Sultan Mahmud
CENTRAL COAST SHUTTLE SERVICES, INC.
3249 TERMINAL DRIVE
SANTA MARIA CA 93455
(805) 928-1977



Eric Onnen
SANTA BARBARA AIRBUS
5755 THORNWOOD DRIVE
GOLETA CA 93117
(805) 964-7759
eo@sbairbus.com

For: Santa Barbara Airbus

Karl Hovanitz
SILVERADO STAGES
241 PRADO ROAD
SAN LUIS OBISPO CA 93401
(805) 544-7658
silverado@thegrid.net

For: Silverado Stages, Inc.


Jim Galusha
SILVERADO STAGES, INC.
241-B PRADO ROAD
SAN LUIS OBISPO CA 93401
(805) 545-8400
For: Silverado Stages, Inc.

(END OF APPENDIX A)

Appendix PSC-9069 Silverado Stages, Inc. Original Title Page

(a corporation)

CERTIFICATE

OF

PUBLIC CONVENIENCE AND NECESSITY

AS A PASSENGER STAGE CORPORATION

PSC-9069

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

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-9069 Silverado Stages, Inc. Original Page 1

(a corporation)

I N D E X

Page

SECTION I. GENERAL AUTHORIZATIONS, RESTRICTIONS,

SECTION II. SERVICE AREA 3

SECTION III. ROUTE DESCRIPTION 3

Appendix PSC-9069 Silverado Stages, Inc. Original Page 2

(a corporation)

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

Silverado Stages, 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 route 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. 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. 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-9069 Silverado Stages, Inc. Original Page 3

(a corporation)

SECTION II. SERVICE AREA.

SECTION III. ROUTE DESCRIPTION.

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