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HomeMy WebLinkAbout109631 2 • 0 RESOLUTION NO. 10,963 3 A RESOLUTION TO APPROVE THE RENEWAL OF 55 TAXICAB 4 OPERATOR PERMITS FOR BLACK & WHITE CAB COMPANY; 5 TO ESTABLISH THE CONDITIONS FOR AN INCREASE IN THE 6 NUMBER OF TAXICAB OPERATOR PERMITS TO 83; TO STATE 7 THE INTENT OF THE BOARD OF DIRECTORS TO PERMIT A 8 FURTHER INCREASE IN THE NUMBER OF TAXICAB 9 OPERATOR PERMITS TO 125 UPON THE FULFILLMENT OF 10 CERTAIN CONDITIONS; AND FOR OTHER PURPOSES. 11 12 WHEREAS, since April 1, 1983, only two fleet taxi cab permits have been 13 granted for the corporate limits of the City of Little Rock, Arkansas, and 14 WHEREAS, one of these operators has been Black & White Cab Company 15 ('Black & White "), operating both Black & White cabs and Yellow cabs, and 16 WHEREAS, the City has expressed great concerns about the lack of meaningful 17 liability insurance requirements for these taxi cabs operating within the City 18 notwithstanding the fact that Black & White had maintained a statutorily authorized 19 self - insurance status with the Arkansas Department of Finance & Administration 20 ( "Department "), and had maintained a $50,000 bond with the Department in 21 accordance with state law, and 22 WHEREAS, in 1999, based upon hearing numerous, albeit disputed, complaints 23 about nonpayment, or slow payment, of claims against Black & White, the Board of 24 Directors decided to reduce the number of taxi cab operator permits from 83 to 55, 25 which more accurately represented the number of taxi cabs actually in operation at any 26 given time, and 27 WHEREAS, during the year 2000, the ability of Black & White to self - insure 28 was revoked, and litigation was filed against Black & White by the Department in the 29 Pulaski Chancery Court which interplead the $50,000 statutory bond and questioned 0 0 I whether Black & White was qualified to continue in operation with only a bond in place 2 as insurance, and 3 WHEREAS, there were numerous and legitimate concerns by the City as to 4 whether to renew the current 55 taxi cab permits for the year 2001, and s WHEREAS, since this concern was being expressed the City has learned that a 6 new entity -- Greater Little Rock Transportation Services, LLC ( "GLRT ") -- is being 7 formed by six individuals with outstanding experience in the operation of taxi cab s franchises throughout the Country including cities such as St. Petersburg, Tampa and 9 Dade County, Florida, Houston, Texas, and Pittsburgh, Pennsylvania, and 10 WHEREAS, the Board has been informed that the new entity will maintain the 11 $100,000/$300,000 commercial insurance coverage for taxi cabs by Little Rock, Ark., 12 Rev. Code § 32- 20(a)(2) (1988) ( "LRC ") , and that this coverage will be in place while 13 the procedures for the final transfer of the taxi cab operator permit from Black & White 14 to GLRT is being reviewed, and 14 WHEREAS, GLRT acknowledges that it would receive a taxi cab operator 16 franchise that came into effect after November 18, 1997 -- the effective date of LRC § 17 32 -20 (a) (2) (1988) -- and, that this acknowledgment and agreement is a material 18 consideration in the Board of Directors decision to renew existing permits for Black & 19 White, permit an increase in existing permits for Black & White, and to consider an 20 increase to 125 as the number of permits to be allowed GLRT, if the review required by 21 City ordinances justifies both the material change of transferring the permit to a new 22 entity, and the change in the number of taxi cab permits authorized, 23 NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF 24 DIRECTORS OF THE CITY OF LITTLE ROCK, ARKANSAS: 25 Section 1. Black & White is authorized to have and maintain 55 taxi cab 26 operator permits for the period January 1, 2001, to December 31, 2001, provided that 27 appropriate and statutorily authorized insurance is in place. -2- 0 0 1 Section 2. Black & White, operating alone or in conjunction with GLRT is 2 authorized to have and maintain a total of 83 taxi cab operator permits for the period 3 January 1, 2001, to December 31, 2001, provided that a genuine agreement for the sale 4 of the assets by Black & White to GLRT has been executed, and provided further that s all 83 taxi cabs in operation, and the drivers of these cabs, are covered by the insurance 6 provisions of LRC § 34- 20(a)(2)(1988), and certificates of insurance are in place and 7 copies of the certificates have been received by the City Manager or the Administrator 8 of the City Transportation Code. 9 Section 3. The Board of Directors states its intent to increase the number of 10 authorized permits from 55 to 125 for the period January 1, 2001, to December 31, 11 2001, for GLRT provided that an appropriate application for a material change in the 12 taxicab operator permit has been filed with the City Manager, or the Administrator of 13 the City Transportation Code, which meets all of the. criteria listed in LRC § 34- 14 38(c)(11) (1988), and provided further that the terms and conditions of LRC § 34 -47 15 (1988) have been met and such an increase is, deemed, after a public hearing,. to fulfill 16 a public convenience and necessity. 17 Section 4. While the Board of Directors states its intent to comply with the 18 provisions of this resolution, the Board specifically notes that such compliance is.not 19 automatic and that no fleet taxi cab operator permits will transfer from Black & White 20 to GLRT without the express approval of the Board as required by LRC § 34 -22 (1988). 21 Section 5. The operation of Black & White under this permit, or that of GLRT 22 if this permit is transferred, will be in accordance with provisions of the Little Rock, 23 Arkansas, Revised Code as to the use of more than one business name. 24 Section 6. The Board notes that the application of Black & White and GLRT 25 for a transfer of the permits is to occur before January 8, 2001. Even so, the Board 26 expressly states that the award of fleet taxi cab operator permits is an act taken pursuant 27 to the City's police power for the protection of its citizens, and for the protection of 28 persons who are customers in taxi cabs franchised by the City and, therefore, these -3- 0 0 1 permits cannot be automatically transferred without a careful review by the elected 2 Board of Directors of all relevant factors including, but not limited to, a consideration 3 of the number of taxi cabs operating within the corporate limits of the City and the 4 relation of this number to the City's overall transportation needs. 5 Section 7. Severability. In the event any title, section, paragraph, item, 6 sentence, clause, phrase, or word of this resolution is declared or adjudged to be invalid 7 or unconstitutional, such declaration or adjudication shall not affect the remaining 8 portions of the resolution which shall remain in full force and effect as if the portion so 9 declared or adjudged invalid or unconstitutional was not originally a part of the 10 resolution. 11 Section 8. Repealer. Ail laws, ordinances, resolutions, or parts of the same, 12 that are inconsistent with the provisions of this resolution are hereby repealed to the 13 extent of such inconsistency. 14 ADOPTED: December 19, 2000 15 ATTEST:- APPROVED: 16 - -- L��- -- - -- 17 18 Nan Woo , City Clerk Dailey, Mayor 19 APPROVED AS TO LEGAL FORM: 20 21 wTd' 22 Thomas M. Carpenter, Chi Attorney 23 24 25 26 27 28 -4-