STATE OF RHODE ISLAND AND PROVIDENCE PLANTATIONS
DIVISION OF PUBLIC UTILITIES AND CARRIERS
89 JEFFERSON BOULEVARD
WARWICK, RHODE ISLAND 02888
| In Re: | Stipulation Of Facts And Settlement Agreement Filed With Respect To Investigatory Docket Regarding The Taxi Corporations Operating Collectively As “Checker Cab” |
Docket No. 10 MC 71
WHEREAS: Hillside Taxi, Inc. (“Hillside Taxi”) is a Rhode Island corporation, having an office at 71 Derry Street, Providence, Rhode Island 02908. Hillside Taxi is the holder of one (1) Taxicab Certificate of Public Convenience and Necessity (“CPCN”), MC-T-22, authorized to operate one (1) taxicab in the territories of Providence and T.F. Green Airport.
WHEREAS: L.C. Taxi, Inc. (“L.C. Taxi”) is a Rhode Island corporation, having an office at 71 Derry Street, Providence, Rhode Island 02908. L.C. Taxi is the holder of two (2) Taxicab Certificates of Public Convenience and Necessity (“CPCN”), MC-T-254, authorized to operate one (1) taxicab in the territories of Providence and T.F. Green Airport, and MC-T-315, authorized to operate ten (10) taxicabs in the territories of Providence, T.F. Green Airport, Cranston and East Providence.
WHEREAS: Pawtucket Taxi, Inc. (“Pawtucket Taxi”) is a Rhode Island corporation, having an office at 71 Derry Street, Providence, Rhode Island 02908. Pawtucket Taxi is the holder of one (1) Taxicab Certificate of Public Convenience and Necessity (“CPCN”), MC-T-361, authorized to operate two (2) taxicabs in the territories of Pawtucket and Central Falls.
WHEREAS: Quality Cab, Inc. (“Quality Cab”) is a Rhode Island corporation, having an office at 71 Derry Street, Providence, Rhode Island 02908. Quality Cab is the holder of two (2) Taxicab Certificates of Public Convenience and Necessity (“CPCN”), MC-T-11, authorized to operate ten (10) taxicabs in the territories of Pawtucket, Central Falls, Lincoln, Cumberland and Smithfield, and MC-T-12, authorized to operate ten (10) taxicabs in the territories of Pawtucket, Central Falls, Lincoln, Cumberland and Smithfield.
WHEREAS: Royal Cab Co., Inc. (“Royal Cab”) is a Rhode Island corporation, having an office at 71 Derry Street, Providence, Rhode Island 02908. Royal Cab is the holder of one (1) Taxicab Certificate of Public Convenience and Necessity (“CPCN”), MC-T-17, authorized to operate five (5) taxicabs in the territories of Pawtucket, Central Falls, Lincoln, Cumberland and Smithfield.
WHEREAS: Mr. Anthony Leiter (“Mr. Leiter”) is the President of Hillside Taxi.
WHEREAS: Mr. Mike Cavallano (“Mr. Cavallano) is the President, and Mr. Anthony Leiter (“Mr. Leiter”) is the Vice President, of L.C. Taxi, Pawtucket Taxi, Quality Cab and Royal Cab.
WHEREAS: Hillside Taxi, L.C. Taxi, Pawtucket Taxi, Quality Cab and Royal Cab often operate collectively as “Checker Cab” and shall be referred to herein collectively as “the Taxi Corporations” or as “Checker Cab.”
WHEREAS: Checker Cab is currently operating a total of twenty (20) taxicabs; they are collectively authorized at present to operate a total of thirty-nine (39) taxicabs.
WHEREAS: The business records of the Checker Cab Taxi Corporations for calendar years 2008 and 2009 were subjected to an audit by Mr. Anthony Manni, Investigative Auditor, Division of Public Utilities and Carriers (“Auditor Manni”). The audit resulted in production of a Preliminary Report, a 2008 Month-to-Month Report, a 2009 Month-to-Month Report, a Summary Report, and various Schedules referenced in, and incorporated by reference into, the various Reports, the findings of which are accepted as accurate by the Parties.[1]
WHEREAS: The audit conducted by Auditor Manni resulted in findings of violations of R.I.G.L. § 39-14-3 and Rules C, H-14, G-8, and K of the Division’s Rules and Regulations Governing The Transportation Of Passengers Via Taxicabs And Limited Public Motor Carriers, as set out in Section 2 of the “Stipulation of Facts and Settlement Agreement” appended hereto as Attachment A, which are accepted as accurate by the Parties and incorporated by reference into the “Stipulation of Facts and Settlement Agreement” appended hereto as Attachment A.
WHEREAS: The Advocacy Section of the Division opened an investigatory docket to review the alleged violations identified in Auditor Manni’s Audit Reports as well as other issues raised by the Audit Report with respect to the Checker Cab corporations.
WHEREAS: On November 23, 2010, the Advocacy Section and the Taxi Corporations operating collectively as Checker Cab submitted a “Stipulation of Facts and Settlement Agreement” (Attachment A to this Order) that agrees to the facts of this case, identifies the applicable law, sets out the violations that the parties agreed are supported by the available evidence, and proposed terms and conditions for resolving the issues raised by the Audit Reports.
WHEREAS: The Taxi Corporations operating collectively as Checker Cab and the Advocacy Section of the Division jointly propose in the “Stipulation of Facts and Settlement Agreement” that the Division adopt the terms of the “Stipulation of Facts and Settlement Agreement” for this Order, and the Taxi Corporations operating collectively as Checker Cab further specifically agree that they will waive any and all rights of appeal or judicial review that might otherwise attach to a Final Order of the Division.
WHEREAS: The Division has reviewed the facts of the case and finds the “Stipulation of Facts and Settlement Agreement” to be a reasonable resolution to the matter.
Now, therefore, it is
Ordered (20209):
1. That the Division of Public Utilities and Carriers hereby approves and accepts the “Stipulation of Facts and Settlement Agreement” (affixed hereto as Attachment A), affirms the sanctions and assessments outlined therein, incorporates Attachment A into this Order by reference, and directs that the Taxi Corporations identified herein comply with all of the terms set out therein (and not just those concerning imposition of fines).
2. That the following CPCNs are hereby revoked as of the effective date of this Order: MC-T-12, MC-T-17, MC-T-254 and MC-T-361.
3. That, as of the effective date of this Order, the only surviving CPCNs shall be:
a. MC-T-315, held by L.C. Taxi, Inc.
b. MC-T-11, held by Quality Cab, Inc.
c. MC-T-22, held by Hillside Taxi, Inc.
4. That L.C. Taxi shall be authorized to operate ten (10) taxicabs under CPCN MC-T-315 in the territories of Providence, Cranston, East Providence and T.F. Green Airport.
5. That Quality Cab shall be authorized to operate nine (9) taxicabs under CPCN MC-T-11 in the territories of Pawtucket, Central Falls, Lincoln, Cumberland and Smithfield.
6. That Hillside Taxi shall be authorized to operate one (1) taxicab under CPCN MC-T-22 in the territories of Providence and T.F. Green Airport.
7. That all twenty (20) taxicabs operated by L.C. Taxi, Quality Cab and Hillside Taxi, as identified in paragraphs 4 through 6, above, shall be brought to the Division within thirty (30) calendar days following the effective date of this Order to allow the Motor Carrier Section of the Division to record the odometer readings for each of these taxicabs.
8. That the Taxi Corporations operating collectively as Checker Cab shall be assessed a Civil Fine of one hundred thousand dollars ($100,000.00) for the violations identified by the audit report in this case.
9. That fifty thousand dollars ($50,000.00 and “Suspended Fine”) of the Civil Fine shall be suspended for a period of five (5) years (“Probation Period”).
10. That the Taxi Corporations operating collectively as Checker Cab shall remit the remaining fifty thousand dollars ($50,000.00) of the Civil Fine in five (5) equal yearly payments of ten (10) thousand dollars ($10,000.00) with the first payment of ten (10) thousand dollars (($10,000.00) due on April 15, 2011, and the second through fifth payments due on April 16, 2012, April 15, 2013, April 15, 2014, and April 15, 2015, respectively, as set out in the Settlement Agreement. Payments shall be by check or money order payable to the Rhode Island Division of Public Utilities and Carriers and delivered to the Motor Carrier Section of the Division. If the Taxi Corporations operating collectively as Checker Cab fail to remit the foregoing Civil Fines within the times prescribed, the Division may take further regulatory action against them.
11. That the Taxi Corporations operating collectively as Checker Cab and the Advocacy Section agree that the Taxi Corporations operating collectively as Checker Cab are collectively responsible for the Civil Fine (including the Suspended Fine).
12. That if the Taxi Corporations operating collectively as Checker Cab do not violate any Division Rules or Regulations, or applicable Rhode Island statutes, during their Probation Period, the Suspended Fine will be set aside upon the expiration of the Probation Period. Provided, however, that if the Taxi Corporations operating collectively as Checker Cab are determined to have violated any Division Rules or Regulations, or applicable Rhode Island statutes, during their Probation Period, the Taxi Corporations operating collectively as Checker Cab may, in the sole discretion of the Division, be required to pay the Suspended Fine in addition to any new fines or penalties imposed upon Express Cab Co. for the new violation or violations.
13. That the Taxi Corporations operating collectively as Checker Cab may seek authority for the transfer of any or all of taxicab CPCNs MC-T-11, MC-T-315 and MC-T-22, to a new certificate holder (“Transferee”) prior to the expiration of the Probation Period described herein. In the event that the Division, in its sole discretion, approves such a transfer request, any portion of the Civil Fine described above still outstanding at the time of the transfer application shall be paid in full as a condition of the transfer prior to the transfer being consummated.
14. That should the Taxi Corporations operating collectively as Checker Cab receive authority to transfer any or all of taxicab CPCNs MC-T-11, MC-T-315 and MC-T-22, to a new certificate holder prior to the expiration of the Probation Period described herein, any remaining portion of the Probation Period, and any remaining Suspended Fine, shall not be imposed on the Transferee unless the Division determines that the Transferee was affiliated, or associated, with the Taxi Corporations operating collectively as Checker Cab, their officers or directors, prior to the effective date of this Order.
15. That the Division shall recalculate the assessments for the Taxi Corporations operating collectively as Checker Cab for calendar year 2009 as set out in Attachment A, and the Taxi Corporations operating collectively as Checker Cab shall pay any resulting unpaid assessments in addition to the Civil Fine addressed above.
DATED AND EFFECTIVE AT WARWICK, RHODE ISLAND, THIS 24th DAY OF NOVEMBER, 2010.
STATE OF RHODE ISLAND AND PROVIDENCE PLANTATIONS
DIVISION OF PUBLIC UTILITIES AND CARRIERS
89 JEFFERSON BOULEVARD
WARWICK, RHODE ISLAND 02888
| In Re: | Stipulation Of Facts And Settlement Agreement Filed With Respect To Investigatory Docket Regarding The Taxi Corporations Operating Collectively As “Checker Cab” | ) ) ) ) ) | Docket No. 10 MC 71 |
ATTACHMENT A
TO
DIVISION ORDER
NO. 20209
APPROVING STIPULATION OF
FACTS AND SETTLEMENT AGREEMENT
DATED NOVEMBER 24, 2010
STATE OF RHODE ISLAND AND PROVIDENCE PLANTATIONS
DIVISION OF PUBLIC UTILITIES AND CARRIERS
89 JEFFERSON BOULEVARD
WARWICK, RHODE ISLAND 02888
| IN RE: | FITNESS HEARING FOR TAXI CORPORATIONS OPERATING COLLECTIVELY AS “CHECKER CAB” | ) ) | DOCKET NO. 10-MC-71 |
This STIPULATION OF FACTS AND SETTLEMENT AGREEMENT (“Agreement”), dated as of this 23rd day of November 2010, by and among the Advocacy Section of the Division of Public Utilities and Carriers (“Advocacy Section”) and Hillside Taxi, Inc., L.C. Taxi, Inc., Pawtucket Taxi, Inc., Quality Cab, Inc. and Royal Cab Co., Inc. (sometimes collectively referred to herein as “Taxi Corporation” or “Checker Cab”). The Advocacy Section and Checker Cab are collectively referred to herein as the “Parties”. The Parties have reached this Agreement in connection with the request for a formal fitness hearing made by the Advocacy Section.
The Parties hereto, stipulate that the following facts may be entered into the record in this matter as undisputed and agreed upon by them:
The parties to this proceeding further agree that the following Rhode Island General Laws and Rules and Regulations of the Division of Public Utilities and Carriers are specifically applicable to this matter:
Rhode Island General Law
1. R.I.G.L. § 39-14-2 states that very person owning or operating a motor vehicle engaged or to be engaged in operating a taxicab or limited public motor vehicle is declared a common carrier and subject as such to the jurisdiction of the division of public utilities and carriers. The division shall prescribe such rules and regulations as it shall deem proper to assure adequate, economical, safe, and efficient service at reasonable charges without unjust discrimination, undue preference or advantages, or unfair or destructive competitive practices. The division may require common carriers to prepare records and to preserve them, and to make such reports to it as shall disclose to the division the character of service rendered, the safety of equipment used, and the safety of operation, the character of the management and conduct of the common carrier business, and its relation to and control of or by other carriers or other businesses. Upon complaint or upon his or her own initiative, the administrator may investigate or conduct a hearing as to compliance by any common carrier with the provisions of this title or regulations promulgated pursuant thereto, and shall issue such orders as his or her findings shall indicate to be necessary or desirable for the public welfare. The findings of the administrator shall be reported in writing and copies thereof shall be furnished to the parties involved.
Rules and Regulations Governing the Transportation of Passengers Via Taxicabs and Limited Public Motor Vehicles mandates
Based upon the above-stipulated facts, the contents of Exhibits A and B, and the applicable laws and regulations, the Parties further stipulate that there is sufficient evidence to establish at least the following violations:
1. That Checker Cab during calendar years 2008 and 2009 did fail to maintain fully compliant driver manifests in violation of Rule C.
2. That Checker Cab during calendar years 2008 and 2009, did regularly and habitually pick up passengers in territories not listed as authorized operating territories on their respective Checker Cab Certificates, in violation of R.I.G.L. 39-14-3 and Rule H-14, including, picking up passengers in, but not limited to, the city of North Providence.
3. That Checker Cab during calendar years 2008 and 2009 did willfully cause the odometers of several of its taxicabs to be “rolled back” or otherwise changed to read fewer miles than were actually traveled on numerous occasions, in violation of Rule G-8. (see Exhibit A).
4. That Checker Cab during calendar years 2008 and 2009 did provide inaccurate Annual Report data to the Division in violation of Rule K.
Finally, with respect to calculating the appropriate assessment for Checker Cab, in calendar year 2009, the Parties specifically stipulate to the following:
| a. L.C. Taxi, Inc.: | $843,718. |
| b. Quality Cab, Inc.: | $354,376. |
| c. Royal Cab Co., Inc.: | $190,389. |
| d. Pawtucket Taxi, Inc.: | $182,668. |
| e. Hillside Taxi, Inc.: | $154,775. |
Accordingly, the Division shall calculate the assessment Checker Cab shall pay, for calendar year 2009 utilizing these Estimates.
Based upon the foregoing, the Parties hereto make the following joint recommendation for resolving these proceedings with respect to Checker Cab:
Revocation of Checker Cab Certificates
1. That the Advocacy Section and Checker Cab agree that the following Certificates of Public Convenience and Necessity will be revoked on the Approval Date: MC-T-12, MC-T-17, MC-T-254 and MC-T-361.
2. That the Advocacy Section and Checker Cab agree that the only surviving Taxi Corporations will be L.C. Taxi, Inc., Quality Cab, Inc. and Hillside Taxi, Inc. The Parties further agree that L.C. Taxi, Inc. will remain the holder of one (1) Certificate of Public Convenience and Necessity, MC-T-315, that Quality Cab will remain the holder of one (1) Certificate of Public Convenience and Necessity, MC-T-11 and that Hillside Taxi, Inc. will remain the holder of one (1) Certificate of Public Convenience and Necessity, MC-T-22.
3. That the Advocacy Section and Checker Cab agree that L.C. Taxi will be authorized to operate up to ten (10) taxicabs under the surviving certificate, MC-T-315 with authorization to operate in the following territories: Providence, Cranston, East Providence and T.F. Green Airport.
4. That the Advocacy Section and Checker Cab agree that Quality Cab will be authorized to operate up to nine (9) taxicabs under the surviving certificate, MC-T-11 with authorization to operate in the following territories: Pawtucket, Central Falls, Lincoln, Cumberland and Smithfield.
5. That the Advocacy Section and Checker Cab agree that Hillside Taxi will be authorized to operate up to one (1) taxicabs under the surviving certificate, MC-T-22 with authorization to operate in the following territories: Providence, and T.F. Green Airport.
6. That the Advocacy Section and Checker Cab agree that all of the twenty (20) Checker Cabs in operation will be brought into to the Motor Carrier Section of the Division for fresh or otherwise unsullied odometer readings no later than thirty (30) days following the Approval Date.
Probation and Settlement Amount
7. That the Advocacy Section and Checker Cab agree that Checker Cab will be assessed a civil fine of one hundred thousand ($100,000.00) dollars (“Civil Fine”) for violations alleged herein. Fifty thousand dollars ($50.000.00 and “Suspended Fine”) of the Civil Fine shall be suspended for a period of five (5) years (“Probation Period”). Checker Cab shall pay the unsuspended portion of the Civil Fine in five (5) payments (each a “Payment”) in the amounts and at the times (each a “Due Date”) set forth in the table below, and payable by check or money order to the Rhode Island Division of Public Utilities and Carriers:
Table 2
| Payment Number | Due Date | Payment |
| 1 | April 15, 2011 | $ 10,000.00 |
| 2 | April 16, 2012** | $ 10,000.00 |
| 3 | April 15, 2013 | $ 10,000.00 |
| 4 | April 15, 2014 | $ 10,000.00 |
| 5 | April 15, 2015 | $ 10,000.00 |
Total: $ 50,000.00
**Please note that Payment Number Two (2) occurs on April 16, 2012, as the 15th day of April in calendar year 2012 falls on a Sunday.
8. The Advocacy Section and Checker Cab agree that if Checker Cab does not violate any Division Rules or Regulations or applicable Rhode Island Statutes (collectively “Applicable Rules & Statues”) during its Probation Period, the Suspended Fine would be set-aside upon the expiration of its Probation Period. Provided, however, if Checker Cab is determined to have violated any Applicable Rules & Statues during its Probation Period, it may at the discretion of the Division be required to pay the Suspended Fine in addition to any new fines or penalties imposed upon it for the new violation (s).
Transfer and/or Sale of Certificate of Public Convenience and Necessity
9. The Parties agree that Checker Cab may seek authority for the transfer of any of its taxicab certificates, MC-T-11, MC-T-315 and MC-T-22 to a new certificate holder (“Transferee”) prior to the expiration of its Probation Period. Provided, however, this transfer shall be subject to the discretion of the Division and its applicable Rules and Regulations. That the Advocacy Section and Checker Cab agree that any remaining portion of the Civil Fine due to the Division shall be paid in FULL as a condition of the transfer of such certificate.
10. That the Parties further agree that the Probation Period and Suspended Fine may not be imposed on any future Transferee. Provided further, however, the Division may cause said Period and Fine to attach to a new Transferee, in the event the Division has sufficient facts indicating that the Transferee’s affiliation or association with Checker Cab is improper or otherwise deems it appropriate to attach such to a new Transferee.
Any part, provision, representation or warranty of this Agreement that is prohibited or which is held to be void or unenforceable shall be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof.
This Agreement shall be construed and the obligations, rights and remedies of the Parties shall be determined in accordance with the laws of the State of Rhode Island and the Division Rules and Regulations. Each Party acknowledges that it is entering into this Agreement freely and voluntarily, that it has sought and obtained legal counsel with respect to the matters contained herein, that it has been duly appraised of its respective legal rights hereunder, and that it clearly understands and assents to all the providing hereof.
The failure of a Party to insist on strict compliance of a covenant hereunder or of any obligation hereunder, irrespective of the length of time for which such failure continues, shall not be waiver of such Party’s right to demand strict compliance in the future. No consent or waiver, express or implied, to or any breach or default in performance of any obligation hereunder, shall constitute a consent or waiver of any other breach or default in the performance of the same or any other obligation hereunder. No term or provision of this Agreement may be waived unless such waiver is in writing and signed by the Party against whom such waiver is sought to be enforced.
This Agreement constitutes the entire understanding between the Parties with respect to the settlement contemplated herein and this Agreement shall not be modified except in writing executed by all the Parties.
Titles or captions of Sections contained in this Agreement are inserted only as a matter of convenience and for reference, and in no way define limit, extend or describe the scope of this Agreement or the intent of any provision hereof.
A. The Advocacy Section and Checker Cab jointly propose that this Agreement, upon adoption by the Division, shall constitute a Final Order of the Division. Checker Cab waives any and all rights of appeal or judicial review that might otherwise attach to a Final Order of the Division.
B. The Parties agree that this Agreement is reasonable, and in the public interest and in accordance with law and regulatory policy, and have caused this Agreement to be executed by their respective representatives, each being authorized to do so.
Submitted this 23rd day of November 2010.
-Signature Page to follow-
| Hillside Taxi, Inc., L.C. Taxi, Inc., Royal Cab, Inc., Pawtucket Taxi, Inc. and Quality Cab, Inc., collectively operating as “Checker Cab”
By their Attorney /s/Keven A. McKenna______________ Keven A. McKenna, Esq. Providence, RI 02903 | ADVOCACY SECTION OF THE DIVISION OF PUBLIC UTILITES AND CARRIERS By its Attorney /s/Karen Lyons________________ Karen Lyons, Esq. Special Assistant Attorney General 150 South Main Street Providence, RI 02903 Tel. (401) 274-4400 Fax (401) 222-3016 |
| On behalf of the Taxi Corporations /s/M. Cavallano________________ Mike Cavallano, President “Checker Cab” 71 Derry Street Providence, RI 02908 /s/Anthony Leiter_____________ Anthony Leiter, Vice President “Checker Cab” President, Hillside Taxi, Inc. 71 Derry Street Providence, RI 02908 |
|
(PROVIDED PURSUANT TO R.I.G.L. §42-35-12)
Please be advised that if you are aggrieved by this final decision (report and order) of the Rhode Island Division of Public Utilities and Carriers (“Division”) you may seek judicial review of the Division’s final decision by filing an appeal with the Rhode Island Superior Court. You have thirty (30) days from the mailing date (or hand delivery date) of the Division’s final decision to file your appeal. The procedures for filing the appeal are set forth in Rhode Island General Laws, Section 42-35-15.
Proceedings for review may be instituted by filing a complaint in the Superior Court of Providence or Kent Counties. Copies of the complaint must be served upon the Division and all other parties of record in your case. You must serve copies of the complaint within ten (10) days after your complaint is filed with the Superior Court.
Please be advised that the filing of a complaint (appeal) with the Superior Court does not itself stay enforcement of the Division’s final decision. You may however, seek a stay from the Division and/or from the Court.
The judicial review shall be conducted by the Superior Court without a jury and shall be confined to the record. The Court, upon request, shall hear oral argument and receive written briefs.
[1] These Reports and Schedules were incorporated by reference into the Stipulation of Facts and Settlement Agreement (“the Stipulation” or “Attachment A” to this Order) submitted by the Parties in this matter as “Exhibit A” to the Stipulation. Exhibit A to Attachment A (the Stipulation) is not appended to Attachment A with this Order. There are two reasons for this. First of all, Exhibit A (Auditor Manni’s audit reports and schedules on the Checker Cab corporations) contain a great deal of confidential and personal information which may not be released to the public. Indeed, the Division has adopted the position that audit reports as a whole, with their ancillary schedules, are to be viewed as confidential business and/or personal records which are not releasable under the Access to Public Records Act. Second, Exhibit A, which comprises several hundred pages of documents, is simply too voluminous to be included here.
Exhibit B to the Stipulation, which was incorporated therein by reference as well, is not attached to this Order. Exhibit B consists of two letters, one from Chief Field Investigator Brooks to Mr. Leiter dated April 21, 2010, inquiring as to the inconsistencies addressed in Auditor Manni’s reports, and a May 21, 2010, letter from Keven A. McKenna, Esq., Mr. Leiter’s attorney, to Chief Brooks responding to Chief Brooks questions. Those documents were accepted as full exhibits by the Parties, are available in the docket file in this matter, and are subject to inspection by the public.