Discussion

The application, as amended by letter dated September 3, 2008, requests authority to operate as a PSC to transport primarily children. Applicant seeks to provide door-to-door service to students who need transportation to after school care, or to activities such as swimming lessons, sports practices, and medical and dental appointments. Parents will have peace of mind that their children are in the care of adults who will provide safe, friendly transportation. Applicant surveyed parents at one school, and the results confirmed there is a need in the community for this type of service. One reason is the prevalence of two-income households, which causes families to struggle to get children to after school activities.

The primary service territory will be the area covered by the Elk Grove Unified School District, but transportation will be made available to other parts of Sacramento County. Applicant notes that Sacramento County has undergone rapid growth in recent years.

Applicant states that its four owners have a variety of experience to make the proposed service a successful venture. Gillian Bee has worked with children for over 25 years, including driving a school bus for nine years. Ristyn Woolley has eight years' experience working with children and recently obtained a Bachelor of Science degree in Business Administration. Richard Bee has been a correctional officer with the California Youth Authority for 20 years. Dale Woolley has a background with the United States Navy and holds a degree in Marketing.

Service will be conducted using 12-passenger vans equipped with first aid kits, fire extinguishers, a lock box containing children's emergency information, and means for two-way communication with a dispatcher. Exhibit 5 of the application is Applicant's unaudited balance sheet, which discloses assets of $395,800, liabilities of $266,800, and net worth of $129,000.

The proposed one-way fare is $9. Applicant requests authority to establish a ZORF of $6 above and below the proposed fare. It indicates that pricing flexibility is necessary because of ongoing fluctuations in the cost of gasoline, which will be a major operating expense of the business. While public transit and taxicabs are available in the service area, the principal competition for this kind of service is the private automobile. If Applicant prices its service too high, parents will likely transport their children themselves or seek other arrangements, such as carpooling. This should serve to keep Applicant's fares at a reasonable level under the ZORF.

Decision (D.) 97-07-063 in Rulemaking 95-08-002 adopted rules applicable to carriers primarily engaged in the transportation of unaccompanied children1 under the age of 18 years. These rules, contained in Appendix A of the decision, are applicable to the requested service of Applicant, and are in addition to any other requirements that apply to all PSCs.

In accordance with the requirements of Appendix A of D.97-07-063, Applicant had the names of its owners who will be coming into contact with children passengers entered into the TrustLine Registry.2 Under our rules, any future drivers or personnel coming into physical contact with infant and children passengers will also have to be registered with the TrustLine. Records of the Department of Motor Vehicles show that each owner who will drive holds a valid driver's license.

Notice of filing of the application appeared in the Commission's Daily Calendar on June 28, 2007. Applicant mailed a notice of the application to the appropriate local government offices, including the Elk Grove Unified School District.

In Resolution ALJ 176-3195 dated July 12, 2007, 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 176-3195.

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 an on-call PSC to transport primarily children between points in Sacramento County.

2. Public convenience and necessity requires the proposed service.

3. The rules and regulations for the transportation of children contained in Appendix A of D.97-07-063 are applicable to the service involved in this application.

4. Applicant's owners who will be in contact with children are registered in the TrustLine Registry.

5. Applicant requests authority to establish a ZORF of $6 above and below the proposed one-way fare of $9.

6. Applicant will compete with taxicabs, public transit, and private automobiles in its service area. The ZORF is fair and reasonable.

7. No protest to the application has been filed.

8. A public hearing is not necessary.

9. 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. Applicant should be required to comply with the rules and regulations contained in Appendix A of D.97-07-063, in addition to any other requirements applicable to all PSCs.

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 10 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 A to Bee Transportation, LLC (Applicant), a limited liability company, authorizing it to operate as a passenger stage corporation (PSC), as defined in Pub. Util. Code § 226, primarily to transport unaccompanied children under the age of 18 years and affiliated adults who are being transported in accordance with the rules and regulations contained in Appendix A of Decision 97-07-063, and their baggage, between the points and over the routes set forth in Appendix PSC-22426, 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, 104, 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.

i. Comply with the "Adopted Rules for Infant and Children Common Carriers" contained in Appendix A of Decision 97-07-063.

3. Applicant is authorized under Pub. Util. Code § 454.2 to establish a zone of rate freedom (ZORF) of $6 above and below the proposed one-way fare of $9.

4. Applicant shall file a ZORF tariff in accordance with the application on not less than 10 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 10 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 thirty 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 vehicle 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-22426, granted herein, expires unless exercised within 120 days after the effective date of this decision.

10. The Application, as amended, is granted as set forth above.

11. This proceeding is closed.

This decision is effective today.

Dated October 2, 2008, at San Francisco, California.

Commissioners

Appendix PSC-22426 A to Bee Transportation, LLC Original Title Page

CERTIFICATE

OF

PUBLIC CONVENIENCE AND NECESSITY

AS A PASSENGER STAGE CORPORATION

PSC-22426

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

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-22426 A to Bee Transportation, LLC Original Page 1

I N D E X

Page

SECTION I. GENERAL AUTHORIZATIONS, RESTRICTIONS,

SECTION II. SERVICE AREA 4

SECTION III. ROUTE DESCRIPTION 4

Appendix PSC-22426 A to Bee Transportation, LLC Original Page 2

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

A to Bee Transportation, 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 operate as an on-call, door-to-door passenger stage corporation specializing in the transportation of children between 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. Unaccompanied children under 18 years of age and their baggage may be transported, provided that children under four years of age shall be accompanied by a parent, guardian, parent or guardian approved family member, or an adult supervisor. If the adult supervisor is affiliated with the carrier, that person shall have been approved in writing by the parent or guardian

    B. Adults affiliated with children passengers may be transported when the transportation is incidental to the transportation of a child. This includes adults being carried directly to pick up a child to be transported, or directly to return from accompanying a child.

Appendix PSC-22426 A to Bee Transportation, LLC Original Page 3

SECTION I. GENERAL AUTHORIZATIONS, RESTRICTIONS, LIMITATIONS, AND SPECIFICATIONS (concluded).

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

    D. 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.

    E. 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-22426 A to Bee Transportation, LLC Original Page 4

SECTION II. SERVICE AREA.

    All points in the County of 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 The term "unaccompanied children" as used in D.97-07-063 includes transportation of an affiliated adult accompanying a child during, or incidental to, the transportation at issue.

2 The TrustLine Registry is a screening program of caregivers administered by the state Department of Social Services and the nonprofit California Child Care Resource and Referral Network. Caregivers registered with the TrustLine have been fingerprinted and have cleared a criminal background check by the state Department of Justice.

( Each vehicle shall contain this identifying symbol on its front and rear bumpers, visible at a minimum of 100 feet in accordance with the rules contained in Appendix A of Decision 97-07-063.

( Each vehicle shall contain this identifying symbol on its front and rear bumpers, visible at a minimum of 100 feet in accordance with the rules contained in Appendix A of Decision 97-07-063.

( Each vehicle shall contain this identifying symbol on its front and rear bumpers, visible at a minimum of 100 feet in accordance with the rules contained in Appendix A of Decision 97-07-063.

( Each vehicle shall contain this identifying symbol on its front and rear bumpers, visible at a minimum of 100 feet in accordance with the rules contained in Appendix A of Decision 97-07-063.

( Each vehicle shall contain this identifying symbol on its front and rear bumpers, visible at a minimum of 100 feet in accordance with the rules contained in Appendix A of Decision 97-07-063.

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