HomeMy WebLinkAboutIR 6946 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 6946
0�"""fo June 19, 1984
" PORT�o To the Mayor and Members of the City Council
l(\JPSubject: TAXICAB FRANCHISES AND SERVICE IN FORT WORTH
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Two related taxicab matters will be considered by the
City Council at the regular meeting on June 19, 1984:
1 ) the extension of a taxicab Grant-of-Privilege, now
expired, to Fort Worth ' s Poor Boy Cab Company, Inc. ; and
2) an increase in the number of taxicab permits from 175 to
275 presently authorized for the Fort Worth Cab and Baggage
Company.
HISTORY AND BACKGROUND
1 ) Request of Poor Boy Cab Company for Extension
of Permit to Operate
Poor Boy Cab Company, a minority business enterprise
was formed in 1976 and was a successor to another company,
United Taxicab Company of Fort Worth, Inc. , whose Grant-
of-Privilege was revoked by the City Council.
The Poor Boy Cab Company was incorporated by four Fort
Worth citizens and granted Charter No. 393887 by the
Secretary of State ' s office in Austin on December 6, 1976.
The four incorporators and directors were: L. B. Woods and
i L. B. Woods, Jr. , 4009 Edgewood Terrace (both former em-
ployees of United Taxi Company of Fort Worth, Inc. ,•
Robert L. Cooper, 5804 Humbert; and Archie Clark,
1119 Marion (both former officers of United Taxicab Company
of Fort Worth, Inc. ) .
The City Council granted two successive one-year and
one five-year Grants-of-Privilege to Poor Boy, the last of
which expired February 29, 1984. On February 28, 1984, by
M&C G-5918, the City Council approved a 90-day extension of
Taxicab Operating Privilege to Mr. L. B. Woods and/or Poor
Boy Cab Company. This extension expired on May 29, 1984,
and Mr. Woods filed handwritten requests for an extension
with the City on May 24 and June 6, 1984.
Recent operations of Poor Boy Cab Company have been
characterized by a lack of financial and operational
responsibility. Differences have apparently occurred
between L. B . Woods and the two other principals of Poor
Boy Cab Company, Robert L. Cooper and Archie Clark. This
resulted in the formation of the new applicant, American
Cab Company, in which Cooper and Clark have an interest .
Poor Boy Cab Company has apparently remained under
L. B. Woods ' control.
The City has received numerous complaints about viola-
tions of the Taxicab Ordinance by Poor Boy Cab Company,
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 6946 - p. 2
`oEfORT� To the Mayor and Members of the City Council June 19, 1984
Cl � 0
�rfXP`�S Subject: TAXICAB FRANCHISES AND SERVICE IN FORT WORTH
including operation of cabs with unapproved and illegal
taxi meters, lack of proof of insurance on cabs, failure to
provide information on vehicles in use by type and number,
illegal use of license plates issued for other vehicles,
failure to respond to legitimate claims, failure to pay the
City ' s street-use charges, and other violations. Mr. Woods
has been operating the Poor Boy Company out of his home in
Forest Hill for about a year.
A check was made with the Secretary of State 's office
in Austin on May 30, 1984, and he advised that the Fort
Worth ' s Poor Boy Cab Company charter, as granted in 1976,
was cancelled on March 16, 1981, for non-payment of the
required annual franchise tax. The Secretary of State indi-
cated that the Poor Boy Cab Company is a "defunct" company
which is not legally entitled to do business in Texas.
The IRS has a tax lien against L. B. Woods, d/b/a Poor
Boy Cab Company, in the amount of approximately $3, 600,
which is apparently chargeable solely to Mr. Woods and not
to the other former directors of the company. It is not
presently known what steps the IRS will take to enforce
this lien.
The City Council must decide whether to extend Poor
Boy ' s permit to operate.
2) Request of Fort Worth Cab and Baggage Company
to Increase Number of Taxicabs
The owners of Fort Worth Cab and Baggage Company have
requested authorization to increase the number of its cabs
from 175 to 275. Investigation by the Utilities Supervisor
indicates that additional service is probably required and
that the request should be granted.
CONCLUSION
The present "Taxicab Ordinance, " Chapter 34 in the
Code of the City of Fort Worth, contains requirements for
applications by new companies which desire to enter the
taxicab business and does not restrict the number of
companies operating in the City. Chapter 34 further regu-
lates the number of taxicabs authorized to be operated by
the companies and provides uniform rate structures for all
taxicab companies. Chapter 34 provides that, in considering
applications to establish new taxicab companies, the City
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 6946 - P. 3
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To the Mayor and Members of the City Council June 19, 1984
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Subject: TAXICAB FRANCHISES AND SERVICE IN FORT WORTH
Council shall consider the probable need and demand for
additional taxicab service and shall insure that the taxi
applicant is qualified to provide service -- one who can
show financial responsibility, probable stability of ser-
vice, and ability to respond to claims for damages .
The two pending taxi matters all relate to the issue
of whether additional taxicabs are required on the streets
of Fort Worth. Audits by the Public Utilities Supervisor of
operations indicate that because of current growth and
development the taxi business is growing steadily and that
the continuation of good taxicab service in Fort Worth
probably requires additional taxicabs on the streets.
If any additional information is desired, the
Utilities Supervisor will be pleased to provide it.
Attachment
`- ISSUED BY THE CITY MANAGER - FORT WORTH, TEXAS