Application Decision Taxi – Amendment Application # 10305-20 Applicant & Sidney Taxi Ltd. Application Trade Name: Sidney Taxi Summary Current Originating Area: Sidney, North Saanich and Central Saanich Amendment of Licence: PDVA (Taxi) • Amend terms and conditions of a licence with Special Authorization: Passenger Directed Vehicle Authorization (PDVA) • Expand Originating Area: Capital Regional District Applicant Current Passenger Transportation Licence: #72011 with: Information • Passenger Directed Vehicle Authorization (PDVA) Principals: • Malcolm BRAILSFORD • Cecil DAVIES • Baljeet PARMAR Office: 101 – 1852 Canso Road, North Saanich BC V8L 5V5 Publication of December 2, 2020 Application Submissions Owen Brandon dba Orange Taxi Board Decision The application is refused Decision Date February 2, 2021 Panel Chair Carmela Allevato I. Introduction The Passenger Transportation Act (the Act) regulates the licensing and operation of commercial passenger transportation vehicles and services in BC. Under the Act, the Passenger Transportation Board (Board) makes licensing decisions on applications relating to taxis, limousines and other small shuttle and tour vehicles. The operation of these vehicles requires a “passenger directed vehicle authorization. Page 1 ”The Board has the authority to consider and approve applications for new licences as well as applications from existing licensees to change terms and conditions of their licences (including the addition of vehicles to their fleet), change rates to be charged for a service and request Temporary Operating Permits (TOPs). Since September 2019, the Board’s mandate has included licensing decisions relating to Transportation Network Services, also known as ride- hailing services. II. Jurisdiction This application is made under the Passenger Transportation Act (the Act). As required by section 26(1) of the Act, the Registrar of Passenger Transportation forwarded the application to the Board. Section 26(2) of the Act requires the Board to publish the fact and nature of the application, and section 27(3) requires it to consider applications and any written submissions it receives as result of publication Section 28(1) governs the Board’s consideration of applications as follows: 28(1) The board may approve, in whole or in part, an application forwarded to it under section 26(1) after considering whether: (a) there is a public need for the service the applicant proposes to provide under any special authorization, (b) the applicant is a fit and proper person to provide that service and is capable of providing that service, and (c) the application, if granted, would promote sound economic conditions in the passenger transportation business in British Columbia. Section 28(2) states that the Board must, if it approves an application, specify the special authorization that should be included in the licence, if issued by the Registrar. Section 28(3) states that the Board may establish terms and conditions that apply to a special authorization included in a licence. III. Application (1) Applicant The applicant, Sidney Taxi Ltd. (Sidney Taxi), was incorporated in British Columbia on July 11, 2013. The applicant’s office is located in North Saanich, British Columbia. Sidney Taxi Ltd. # 10305-20 Page 2 Passenger Transportation Board Sidney Taxi has a passenger transportation licence with Special Authorization: Passenger Directed Vehicle Authorization. Under this licence it may operate up to 6 taxis. Of these, 4 can be conventional taxis and at least 2 must be accessible taxis. Sidney Taxi has authority to pick up passengers in Sidney, North Saanich and Central Saanich and deliver them anywhere in British Columbia. Sidney, North Saanich and Central Saanich are part of the Capital Regional District (“CRD”) The application was received by the Passenger Transportation Registrar on September 8, 2020. The Registration Officer sent the applicant a letter on September 11, 2020 requesting the following outstanding requirements: Business Plan Update Financial Information Public Need indicators Public explanation Declarations. On October 9, 2020 the applicant submitted the public explanation, the declarations and a letter dated October 9, 2020. The applicant has not provided the business plan update, financial information or public need indicators. (2) Applicant’s Request & Explanation The applicant seeks to an amendment to its licence to allow it to pick up passengers anywhere in the Capital Regional District. The applicant provided the following public explanation that was published in the Application Summary: “We are applying to increase our operating area for the following reasons. 1. Due to the increased number of taxis and ride sharing operators we are seeing more Victoria companies operating in our present area. This is a limited area population wise. 2. Under present conditions we are finding that having to dead head back from other CRD areas a costly expense. There are customers in these areas that would and do call us. And at present we have to say no. We feel that in all fairness we should have the same opportunities as the other taxi companies and ride sharing companies do have.” Sidney Taxi Ltd. # 10305-20 Page 3 Passenger Transportation Board (3) Overview of Applicant Materials The applicant submitted forms and declaration acceptable to the Board. Additionally, the Applicant provided a letter dated October 9, 2020 explaining that it had temporarily closed in March of 2020 due to COVID19 but had resumed operation at a much-reduced rate of 20-25% capacity in September 2020. In that letter the Applicant also stated that in order to be able to operate at a closer to normal capacity it was required to overcome three hurdles which the expanded operating area would facilitate: 1. Even prior to the pandemic it was difficult to attract and retain drivers. The situation was made worse by the pandemic. A larger operating area would provide greater incentive for drivers to work for the applicant while also providing the applicant a larger work force from which to draw. 2. The current operating area of approximately 40,000 people was sufficient pre- pandemic to sustain its operations. However, the pandemic caused a reduction in business across the whole of the CRD with the result that Victoria taxi companies had significantly increased their presence in the applicant’s operating area. This meant that the applicant was affected not only by the pandemic business reduction but by increased competition. The applicant argued that access to the larger population base of the CRD would allow it to attract more business; 3. The industry was becoming more reliant on application based dispatching services. If the application were granted the applicant would be able to take advantage of the dispatch apps available to the industry in Victoria or join other companies in the amalgamation of dispatch services. The applicant did not provide an explanation as to why it did not or could not provide the public need indicators information, financial information or the updated business plan. (4) Submissions The Board received one letter of support from Brandon Owen dba Orange Taxi. This letter provided comment on a previous Board decision and included a testimonial for the applicant. Sidney Taxi Ltd. # 10305-20 Page 4 Passenger Transportation Board (5) Procedural Matters Section 17 of the Act allows the Board to conduct written, electronic or oral hearings, or any combination as the Board, in its sole discretion, considers appropriate. This application is being conducted by way of a written hearing. IV. Analysis and Findings Section 28(1) of the Act sets out the factors the Board considers with respect to this application. (1) Is the applicant a fit and proper person to provide its proposed service, and is the applicant capable of providing the service? The Board looks at this question in two parts: (a) is the applicant a fit and proper person to provide the proposed service; and, (b) is the applicant capable of providing the service? First, with fit and proper, the Oxford English Dictionary defines fit as including “well adapted or suited to the conditions or circumstances of the case, answering the purpose, proper or appropriate possessing the necessary qualifications, properly qualified, competent, deserving.” Also, the dictionary defines proper as including “suitable for a specified or implicit purpose or requirement; appropriate to the circumstances or conditions; of the requisite standard or type; apt, fitting; correct, right.” When looking at whether an applicant is fit and proper, the Board does so in the context of the passenger transportation industry in British Columbia. This includes the regulatory system that grants businesses a licence which confers on them both the authorization they need to provide their service and an ongoing obligation to operate in accordance with proper standards of conduct. Second, capability is generally understood to mean that an applicant has the ability or qualities necessary to skillfully and effectively meet its obligations and achieve the results it says it will achieve. When looking at capability, the Board reflects on whether the applicant has demonstrated that it has the knowledge and understanding of relevant regulatory requirements and policies that govern passenger transportation providers, and whether it is able to comply with those requirements. Sidney Taxi Ltd. # 10305-20 Page 5 Passenger Transportation Board It also looks at whether the applicant has the background,