02-07-1972 - Laserfiche WebLink

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CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY - (Continued) insured by them; that after that, various disputes continued and we worked out some settlements whereby most of the employees returned to Tustin Cab Company; that Mr. Code stayed with UTO; that he tried to compete, but got very far in debt; that they need centralized management, FCC approval, etc., so they moved back into the premises at Tustin Cab Company; that UTO is located there now with the exception of two or three drivers who remained with Mr. Cole. He stated that UTO and Tustin Cab Company are operating as two separate companies; they have two sets of books; that Tustin Cab Company has 29 taxicabs operating at this time and approximately 60 employees, in- cluding part time; that they are authorized to serve Garden Grove, Orange and Tustin, but cannot pick up passengers in Santa Ana. He further stated that at the time the cars were repossessed, the permits were removed; that he knows there is an unfavorable report from the Santa Ana Police Department, but that it is due to a lack of corporate understanding. Regarding the financial situation of Tustin Cab Company, Mr. Dahl stated that Mr, Wiggins is not an officer or director of UTO; that there have been bad periods, but hopefully they are over; that there was a bad check charge in 1967; that there were other arrests but no convictions; that none of these charges have been in connection with the taxicab business, and all were dismissed; and that restitution has been made on the bad check charge. Mr. Dahl mentioned the many traffic tickets, stating that Mr. Wiggins is not asking for a permit for himself to drive a taxi; that the tickets were not obtained in connection with the taxicab business; that the report shows a subsequent arrest which is false; that Mr. Wiggins was convicted of the check charge in Los Angeles County but since he was a resident of Orange County, the probation was transferred here. Mr. Dahl stated that the company has grown from 15 to 29 cabs, 60 employees, $1, 000,000 worth of insurance, licensed with FCC, and that Mr. Wiggins shows stability in running his company; that there are no criminal charges against him arising out of this company, other than traffic tickets and tickets of his drivers; that in 1969 this Council determined there was a public necessity, and the City has grown since that time. Mr. Mason Kruse, 1361Laguna, Tustin, stated that he was a Director for UTO but had just resigned, and he was protesting the application of Mr. Wiggins because of lack of moral integrity and business ethics; that at the time Mr. Wiggins bought the company from Mr. Brazier, they were operating the Tustin Cabs on the 10 permits that were issued to UTO; that no stockholder ever received a financial statement or dividend; that in 1970 there was only one set of books for the two companies, and all of the money went into Tustin Cab Company. Mr. Barry Michaelson, Attorney for Yellow Cab Company, stated that the Yellow Cab Company apparently has met the needs of the residents of Santa Aha who des ire to use cab service; that they are not against free enterprise, but they feel there has been no evidence presented to the Council with regard to the need for more permits; that there is an ad in the Yellow Pages listing both UTO and Tustin Cab Company in the same ad as serving the Santa Ana area; that there was also an ad in the Southeast Santa Ana Penny Saver offering a 10% discount from UTO and Tustin Cab Company, a copy of which was provided for the Council. He stated that in this case there is definitive evidence against the character of Mr. Wiggins; that if these 30 permits are granted, it will be extremely difficult to maintain good service. CITY COUNCIL -6 8- February 7, 1972