Discussion

The application, as amended by letter dated August 15, 2006, requests authority to operate as an on-call PSC to transport passengers and their baggage between points in Marin, Sonoma, and Napa Counties, on the one hand, and San Francisco International Airport (SFO), Oakland International Airport (OAK), the Emeryville Amtrak Station (AMTRAK), and the Port of San Francisco (PORT). Applicant states that the existing transportation services serving these points are inadequate. Passengers using a bus service need to travel to and wait at a scheduled stop. The buses sometimes run late. Other passengers elect to take taxicabs or limousines, but these are expensive. Applicant also believes that the currently available shuttle services are not meeting the public's transportation needs because they have limited service hours or their service is unsatisfactory due to poor communications systems, bad vehicle maintenance, or inadequate driver training.

Applicant proposes to provide a reliable door-to-door service 24 hours per day, 7 days a week. Drivers will be extensively trained and dispatchers will be on duty around the clock. Applicant advises that its principals have experience in this field, and it will employ persons who are familiar with the shuttle business. It will operate initially with two vans. New vehicles will be purchased as warranted to meet passenger demand. Exhibit E of the application is Applicant's unaudited balance sheet, which discloses assets of $1,466,000, liabilities of $828,750, and net worth of $637,250.

The proposed fares, as shown in Exhibit A of the application, range between $25 (Sausalito/Marin City - SFO) and $250 (Annapolis (Sonoma County coast) - SFO/OAK). Applicant requests authority to establish a ZORF of $15 above and below the proposed fares. Applicant will compete with other PSCs, taxicabs, charter limousines and sedans, public transit, and private automobiles its service area. This highly 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 June 19, 2006. Applicant requests a waiver from the provisions of Rule 21 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 airports, and the transit district in the service area. It seeks relief from the requirement to serve all of the cities since it will be an on-call service provider and the cities have access to the Commission's Daily Calendar. We shall exercise the discretion accorded to us by Rule 87 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 176-3175 dated February June 29, 2006, 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 176-3175.

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. Applicant requests authority to operate as an on-call PSC to transport passengers and their baggage between points in Marin, Sonoma, and Napa Counties, on the one hand, and SFO, OAK, AMTRAK, and PORT, on the other hand.

2. Public convenience and necessity requires the proposed service.

3. Applicant requests authority to establish a ZORF of $15 above and below the proposed fares shown in Exhibit A of the application.

4. Applicant will compete with PSCs, taxicabs, charter limousines and sedans, public transit, and private automobiles in its operations. The ZORF is fair and reasonable.

5. Applicant requests a waiver of the notice requirements of Rule 21 of the Rules of Practice and Procedure as it has served notice to the involved counties and airports, and the public transit operator in the service area.

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.

Conclusions of Law

1. Public convenience and necessity has been demonstrated and the application, as amended, should be granted.

2. The request to waive the notice requirements of Rule 21 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.

6. Only the amount paid to the State for operative rights may be used in rate fixing. The State may grant any number of rights and may cancel or modify the monopoly feature of these rights at any time.

ORDER

IT IS ORDERED that:

1. A certificate of public convenience and necessity (CPCN) is granted to Marin Shuttle Inc. (Applicant), a corporation, authorizing it to operate as a passenger stage corporation (PSC), as defined in Pub. Util. Code § 226, to transport passengers and their baggage between the points and over the routes set forth in Appendix PSC-20705, 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 order is effective.

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

c. File tariffs on or after the effective date of this order. They shall become effective ten days or more after the effective date of this order, 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 Section 1808.1 of the Vehicle Code.

3. Applicant is authorized under Pub. Util. Code § 454.2 to establish a zone of rate freedom (ZORF) of $15 above and below the proposed fares shown in Exhibit A of the application.

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 order.

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. 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 30 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 vehicles 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-20705, granted herein, expires unless exercised within 120 days after the effective date of this order.

10. The notice requirements of Rule 21 of the Commission's Rules of Practice and Procedure are waived as notice of the application has been served on parties that may have an interest in this proceeding.

11. The Application is granted as set forth above.

12. This proceeding is closed.

This order is effective today.

Dated October 5, 2006, at San Francisco, California.

Commissioners

Appendix PSC-20705 Marin Shuttle Inc. Original Title Page

(a corporation)

CERTIFICATE

OF

PUBLIC CONVENIENCE AND NECESSITY

AS A PASSENGER STAGE CORPORATION

PSC-20705

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

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-20705 Marin Shuttle 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-20705 Marin Shuttle Inc. Original Page 2

(a corporation)

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

Marin Shuttle 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 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 or destination as described in Section IIB.

    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-20705 Marin Shuttle Inc. Original Page 3

(a corporation)

SECTION II. SERVICE AREA.

Oakland International Airport.

Emeryville Amtrak Station.

Port of San Francisco.

SECTION III. ROUTE DESCRIPTION.

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