10. Comments on Proposed Decision
The proposed decision of the ALJ in this matter was mailed to the parties in accordance with Pub. Util. Code § 311(d) and Rule 77.1 of the Rules of Practice and Procedure. No party filed comments.
1. Xpress is a limited liability company formed for the purpose of operating under a concession agreement at LAX.
2. Each of Xpress' members holds authority from the Commission to operate as a PSC and a charter-party carrier.
3. The Commission has previously concluded that because the LAX concession agreement requires the concessionaire to exercise a high degree of control over the conduct of the operation, it must hold a PSC certificate from the Commission to legally operate.
4. Xpress requests authority to operate as an on-call PSC between LAX and points in Los Angeles, Orange, Riverside, San Bernardino, and Ventura Counties.
5. Xpress requests a waiver from the requirements of filing a tariff, filing an annual financial report, and remitting the transportation reimbursement fee.
6. Xpress requests a waiver from the notice requirements set forth in Rule 21(k) of the Commission's Rules of Practice and Procedure.
7. Notice of the application appeared in the Commission's Daily Calendar on September 4, 1998, and on September 17, 1998, the Commission issued ALJ Resolution 176-3000 in which it preliminarily categorized the proceeding as ratesetting and found that no hearing was required.
8. On October 5, 1998, protests were filed by Airway Shuttle, Ace Shuttle, California Dream, 1-M Lucky Shuttle, Shuttle 2000, A-1 Prince Airport Shuttle, E-Z Shuttle, USA Shuttle, 3R Express, 1-A Sahara Shuttle, LAX Chequer Van, Inc., and Quick Trip Airport Shuttle, Inc. All protests stated that Xpress was currently operating without required Commission authority, and requested a hearing.
9. On January 21, 1999, the Commission's Rail Safety and Carriers Division filed a declaration in protest of Xpress' application stating that Xpress' managing partner, LA Xpress, Inc., was delinquent in payment of its PUCTRA fees.
10. There is no possibility that the activity in question may have a significant effect on the environment.
11. Applicant did not request authorization to establish a ZORF pursuant to § 454.2.
12. A ZORF is necessary to allow it to develop innovative service offerings and respond quickly to changing market conditions.
13. Applicant will operate in competition with Rideshare that has an authorized ZORF. Applicant will also compete with other transportation providers, such as taxicabs, limousines and buses.
14. The Rail Safety and Carriers Division and Bahram Shahab and Merhdad Hajimoradi, as individuals and on behalf of LA Xpress Airport Shuttle, filed a settlement agreement as part of this proceeding. The agreement resolved issues regarding LA Xpress' outstanding PUCTRA fee payments.
15. Pursuant to the agreement, LA Xpress agreed to make a payment of $15,977 in delinquent PUCTRA fees and the Rail Safety and Carriers Division agreed to withdraw its testimony in opposition to the application.
1. Xpress' proposed operations as a provider of door-to-door shuttle van service under a concession agreement with LAX require passenger stage corporation authority from the Commission.
2. Public convenience and necessity requires that Xpress be granted a certificate to operate as a passenger stage corporation pursuant to Section 1031 of the Public Utilities Code.
3. Xpress should be required to file a tariff with the Commission to fulfill the requirements of Section 486 et seq. of the Public Utilities Code.
4. Xpress should be authorized to publish a new tariff reflecting fares not to exceed its members' current fares.
5. Xpress should be relieved from the requirement of filing an annual financial report under GO 104-A provided each of its members files the requisite report and Xpress certifies that its own financial information is included in those reports.
6. Xpress should be granted partial relief from PUCTRA reporting and payment requirements provided it files quarterly reports with minimum payment and certifies that its members have or will pay fees on LAX concession revenue.
7. The requirements of Rule 21(k) of the Commission's Rules of Practice and Procedure should be waived in connection with this application.
8. The public interest supports authorizing Xpress to set its rates within a zone of rate freedom, and such authorization is consistent with our previous decisions.
9. The settlement agreement between LA Xpress and the Rail Safety and Carriers Division is reasonable, consistent with California law, and in the public interest because it achieves substantial payment of the fees at a cost far less than that of a protracted hearing.
IT IS ORDERED that:
1. A certificate of public convenience and necessity is granted to Xpress Management Systems, LLC (Xpress or Applicant) authorizing it to operate as a passenger stage corporation, (PSC-11323) as defined in Section 226 of the Public Utilities Code, between the points and over the routes set forth in Appendix PSC-11323 to transport persons, baggage, and/or express.
2. 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 a tariff and timetable within 120 days after this order is effective.
c. State in its tariff and timetable when service will start.
d. Comply with General Orders (GO) 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 Section 1032.1 of the Public Utilities Code and GO Series 158.
f. Comply with Sections 460.7 and 1043 of the Public Utilities Code relating to the workers' compensation laws of this state.
3. Applicant is authorized to publish a new tariff reflecting fares not to exceed its members' current fares.
4. In establishing a tariff, Applicant is authorized to use a zone of rate freedom (ZORF) within the following limitations:
a. Fares shall be within a range of $10 above or below Applicant's base rates. The base rates shall be the initial rates filed in accordance with Ordering Paragraphs 2b and 3.
b. The minimum fare shall be $2.00.
c. Changes to the ZORF shall be made by filing tariffs on not less than 10 days' notice to the Commission and the public.
5. Public notice shall be by posting notices in its terminals and passenger carrying vehicles and shall be posted for at least five days before the effective date and shall remain posted for 30 days.
6. Applicant is relieved from the requirement of GO 104-A to file an annual financial report, provided that Applicant's manager certifies annually by letter to the Commission that all certificated members have each filed a report which includes financial information which Applicant would otherwise be required to report on its own. Applicant is placed on notice that if in the future it makes application to the Commission for a fare increase, it will be required to file a single financial statement of its operations to support the request.
7. Applicant is relieved from the requirement of remitting the Public Utilities Commission Transportation Reimbursement Account (PUCTRA) fees based on gross revenue provided that it submits quarterly PUCTRA reports with the minimum fee payment and attaches to each report a statement signed by its manager certifying that PUCTRA fees due on Los Angeles International Airport concession revenue have been paid by its members. Applicant is placed on notice that in the event one or more of these carriers fails to timely submit a quarterly PUCTRA report, Applicant's PSC certificate, after notice, will be subject to suspension and revocation in accordance with established Commission procedures.
8. The notice requirements of Rule 21(k) of the Commission's Rules of Practice and Procedure are waived in this application.
9. 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 also authorized by the airport's governing body.
10. Applicant is authorized to begin operations on the date that the Rail Safety and Carriers 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.
11. The certificate of public convenience and necessity to operate as a passenger stage corporation (PSC-11323), granted herein, expires unless exercised within 120 days after the effective date of this order.
12. The application is granted as set forth above.
13. The Settlement Agreement between the Rail Safety and Carriers Division and Bahram Shahab and Merhdad Hajimoradi, in their individual capacities and as LA Xpress Airport Shuttle, is approved. The parties shall comply with the terms of the agreement.
14. This proceeding is closed.
This order is effective today.
Dated February 3, 2000, at San Francisco, California.
RICHARD A. BILAS
President
HENRY M. DUQUE
JOSIAH L. NEEPER
CARL W. WOOD
LORETTA M. LYNCH
Commissioners
Appendix PSC-11323 Xpress Management Systems, LLC Original Title Page
(a limited liability company)
CERTIFICATE
OF
PUBLIC CONVENIENCE AND NECESSITY
AS A PASSENGER STAGE CORPORATION
PSC-11323
-------------------------------
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.
-------------------------------
Issued under authority of Decision 00-02-002, dated February 3, 2000, of the Public Utilities Commission of the State of California in Application 98-09-001.
Appendix PSC-11323 Xpress Management Systems, 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
Issued by California Public Utilities Commission.
Decision 00-02-002, Application 98-09-001.
Appendix PSC-11323 Xpress Management Systems, LLC Original Page 2
(a limited liability company)
SECTION I. GENERAL AUTHORIZATIONS, RESTRICTIONS,
LIMITATIONS, AND SPECIFICATIONS.
Xpress Management Systems, 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 and their baggage on an "on-call" basis, between points and places as described in Section IIA, and the airport described in Section IIB, over and along 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. The term "on-call", as used refers to service, which is authorized to be rendered dependent on the demands of passengers. The tariff and timetable shall show the conditions under which each authorized on-call service will be rendered.
c. No passengers shall be transported except those having a point of origin or destination as described in Section IIB.
d. This certificate does not authorize the holder to conduct any operation on the property of or into any airport unless such operation is authorized by the airport authority involved.
Issued by California Public Utilities Commission.
Decision 00-02-002, Application 98-09-001.
Appendix PSC-11323 Xpress Management Systems, LLC Original Page 3
(a limited liability company)
SECTION II. SERVICE AREA.
A. Within the geographical limits of the Counties of Los Angeles, Orange, Riverside, San Bernardino, and Ventura.
B. Los Angeles International Airport.
SECTION III. ROUTE DESCRIPTION.
Commencing from any point as described in Section IIA, then over the most convenient streets, expressways, and highways to the airport described in Section IIB.
Issued by California Public Utilities Commission.
Decision 00-02-002, Application 98-09-001.
