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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 •e» 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in 1976 and was a successor to another company, United Taxicab Company of Fort Worth, Inc. , whose Grant- of-Privilege was revoked by the City Council.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 Tf AFO To the Mayor and Members of the City Council June 19, 1984 o �o u � s 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