Order 20405 - Rainbow Cab: Stipulation of Facts and Settlement Agreement

STIPULATION OF FACTS AND SETTLEMENT AGREEMENT

This STIPULATION OF FACTS AND SETTLEMENT AGREEMENT (“Agreement”), dated as of this 30th day of June, 2011, by and among the Advocacy Section of the Division of Public Utilities and Carriers (“Advocacy Section”) and Maureen Cotsoridis (“Ms. Cotsoridis”), president of Rainbow Cab Company, Inc. (“Rainbow Cab”).  The Advocacy Section and Ms. Cotsoridis are collectively referred to herein as the “Parties”.   The Parties have reached this Agreement in connection with a prehearing conference prior to the Fitness Hearing scheduled for June 2, 2011.

SECTION 1. STIPULATION OF FACTS:

                        The Parties hereto, stipulate that the following facts may be entered into the record in this matter as undisputed and agreed upon by them:

1. That Rainbow Cab Company, Inc.  is a Rhode Island Corporation, having an office at 326 Coddington Highway, Middletown, RI  02842, and a mailing address of 12 Hazard Street, Newport, RI  02840.

2. That Ms. Cotsoridis is the president of Rainbow Cab.

3. That Rainbow Cab is the holder of three (3) Taxicab Certificates of Public Convenience and Necessity, MC-T-63, MC-T-70 and MC-T-267, each with authority to operate in the following territories:  Middletown, Newport and Portsmouth.

4. That Rainbow Cab Certificate MC-T-63 authorizes five (5) vehicles, MC-T-70 authorizes five (5) vehicles and MC-T-267 authorizes one (1) vehicle.

The parties to this proceeding further agree that the following Rules and Regulations of the Division of Public Utilities and Carriers are specifically applicable to this matter:

Rules and Regulations Governing the Transportation of Passengers Via Taxicabs and Limited Public Motor Vehicles mandates

1.      Rule C(1) of the Rules and Regulations Governing the Transportation of Passengers Via Taxicabs and Limited Public Motor Vehicles mandates that every driver of every cab maintain a manifest of all trips made by the cab while under his or her control.  Information required to be on the manifest include:  (a) the date, driver’s name, cab company and registration number; (b) time and mileage out at beginning of the driver’s shift; (c) time and mileage at the end of the driver’s shift; (d) time and place of origin, and time and place of destination, of each trip; (e) number of passengers and fare charged for each trip; (f) detail of mileage for each trip as well as an explanation of mileage incurred which was not incurred as the result of a paying fare; and, (g) tire inflation.  [Rule F.1 of the Rules and Regulations For Licensing Operators Transporting Passengers in Taxicabs, Limited Public Motor Vehicles, and Public Motor Vehicles, which requires drivers to maintain manifests, also applies.]

Rule C(3) of the Rules and Regulations Governing the Transportation of Passengers Via Taxicabs and Limited Public Motor Vehicles requires that all manifest entries shall be made immediately upon completion of the trip, the manifests shall be kept on file and available for inspection by the Division at the certificate holder’s business address for a period of one year; the certificate holder is responsible for instructing each driver and other employee regarding the proper completion of manifests.

2.      Rule G(14) of the Rules and Regulations Governing the Transportation of Passengers Via Taxicabs and Limited Public Motor Vehicle provides that all cabs may be operated only by the certificate holder, an employee of the certificate holder or a lessee approved pursuant to section J of these rules.  The certificate holder will follow all laws concerning their employees including tax and insurance withholdings and workers’ compensation.

3.      Rule H(14)  of the Rules and Regulations Governing the Transportation of Passengers Via Taxicabs and Limited Public Motor Vehicle provides that solicitation and acceptance of a passenger must occur within the location named in the certificate.

4.      Rule J of the Rules and Regulations Governing the Transportation of Passengers Via Taxicabs and Limited Public Motor Vehicle provides that a certificate holder may lease a cab to another person only under the conditions found in these Rules and Regulations and R.I.G.L. § 39-14-9. The lease shall relate to the actual cab only (the vehicle itself) and shall in no way extend to the authority conferred through the certificate.

SECTION 2. VIOLATIONS

Based upon the above-stipulated facts and the applicable laws and regulations, the Parties further stipulate that there is sufficient evidence to establish at least the following violations:

That Ms. Cotsoridis admits sufficient facts that the multiple violations of the following Division Rules did occur:

1.      Rule C - Violation of Rule C of the Rules and Regulations Governing the Transportation of Passengers Via Taxicabs and Limited Public Motor Vehicle.  That Rainbow Cab, during calendar year 2008, failed to maintain compliant driver logs.  The logs were not detailed with respect to origins and destinations.  There were also frequent omissions of number of passengers and time of fare.

2.      Rule G - Violation of Rule G of the Rules and Regulations Governing the Transportation of Passengers Via Taxicabs and Limited Public Motor Vehicles. That during calendar year 2008, Rainbow Cab used at least 8 driver(s) that did not have an approved lease on file with the Division.  The audit report revealed at least 8 drivers that did not have a lease on file with the division.  A three month sample of driver logs for these individuals shows 330 shifts.  Over a one year period, this would amount to approximately 1,320 violations.

3.      Rule H - Violation of Rule H of the Rules and Regulations Governing the Transportation of Passengers Via Taxicabs and Limited Public Motor Vehicles.  That during calendar year 2008, Rainbow Cab provided services that originated outside of their authorized territory.  The audit revealed at least thirty two (32) out of territory violations during a three month sample period.  The number of violations is estimated due to the lack of detail in the driver logs.

4.      Rule J - Violation of Rule J of the Rules and Regulations Governing the Transportation of Passengers Via Taxicabs and Limited Public Motor Vehicles.  That during calendar year 2008, Rainbow Cab drivers used vehicles not provided for in the approved lease agreement.

5.      Rule K - Violation of Rule K of the Rules and Regulations Governing the Transportation of Passengers Via Taxicabs and Limited Public Motor Vehicles.  That during calendar year 2008, Rainbow Cab did not properly report all revenue generated.  The audit revealed that the driver logs were not used at all when completing the financial statement in the Annual Report.

SECTION 3. TERMS OF SETTLEMENT

Based upon the foregoing, the Parties hereto make the following joint recommendation for resolving these proceedings with respect to Ms. Cotsoridis:

Implementation of Auditor’s Recommendations

1.      That Rainbow Cab agrees to implement the recommendations made by Auditor Manni in the final pages of his Audit Report (attached hereto as Exhibit A) in full.  These include, but are not limited to the following:

a.       Rainbow Cab must comply with all of the Rules and Regulations Governing the Transportation of Passengers via Taxicabs and Limited Public Motor Vehicles, with an emphasis on the rules & regulations that were violated.

b.      Rainbow Cab must use the actual driver logs to report passenger revenue, total passengers, ending odometers, and total miles traveled on their Annual Report.  Estimations are NOT allowed. 

c.       Rainbow Cab must have a Division-approved lease for every driver who operates its taxicabs, unless that person is an employee or the owner. 

d.      Rainbow Cab must only allow a driver to operate the taxicab who is listed in the vehicle-specific Division-approved lease.

e.       Rainbow Cab must verify the information that its independent drivers hand in on their daily log.  Rainbow Cab is still responsible for the accuracy of the Annual Report. 

2.      Please note that this Section 3 does not renounce Rainbow Cab’s obligation to review Exhibit A in its entirety.

Probation and Settlement Amount

1.      That the Parties agree that Rainbow Cab shall be assessed a civil fine of one hundred thousand dollars ($100,000.00) (“Civil Fine”) for violations alleged herein.  Ninety thousand dollars ($90,000.00 and “Suspended Fine”) of the Civil Fine shall be suspended for a period of two (2) years (“Probation Period”).  Rainbow Cab shall pay the unsuspended portion of the Civil Fine ten thousand dollars ($10,000.00), payable by check or money order to the Rhode Island Division of Public Utilities and Carriers.

2.      That the Parties agree that as a result of the Audit Report prepared by Auditor Manni, Rainbow Cab shall pay an additional assessment for calendar year 2008 of nine hundred twenty one dollars ($921.00) payable by check or money order to the Rhode Island Division of Public Utilities and Carriers.

3.      The Advocacy Section and Ms. Cotsoridis agree that if Rainbow 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 shall be set-aside upon the expiration of its Probation Period.  Provided, however, if Rainbow 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 

4.       The Parties agree that Rainbow Cab may seek authority for the transfer of any of its taxicab certificates, MC-T-63, MC-T-70 and MC-T-267 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. 

5.      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 Rainbow Cab is improper or otherwise deems it appropriate to attach such to a new Transferee.

SECTION 4 . EFFECT OF STIPULATION OF FACTS AND SETTLEMENT AGREEMENT:

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 8^th day of July 2011.

-Signature Page to follow-