Ousted Taxi Firm Returns in New Guise

Nearly a year after Valley Cab Co. lost its franchise to operate in Los Angeles, many of the firm’s former vehicles and drivers are still transporting customers in the city under a different name, to the frustration of city officials.

Valley Cab Co.’s Los Angeles operation was bought out by one of its former managers, who formed a new company using the same dispatch system and many of the same cars and drivers. The new firm, Valley Transportation, secured a state Public Utilities Commission license to operate as a limousine company outside control of the city.

On Wednesday, two City Council members complained that the cars are still on city streets and the city no longer has authority to ensure they meet safety standards.

Council Transportation Committee members Hal Bernson and Dennis Zine recommended that the full council ask state officials to determine if the firm is actually a limousine company deserving of a state license or a cab company trying to get around the city franchise law.

The committee also recommended that the full council adopt an ordinance allowing the city to conduct annual inspections of all for-hire vehicles, including Valley Transportation’s, and annual drug tests of all drivers. It also will encourage state legislators to toughen operating guidelines for limousine companies.

“They have taken the creative way to skirt the system,” Zine said. “They get their city franchise pulled and suddenly they turn into a limousine company that we have no control over.”

Valley Cab Co. lost its franchise in November when it was outbid by other companies.

Brad Gunches, the owner of Valley Transportation, said the city has unfairly been trying to shut his firm down for seven months.

“They don’t have a leg to stand on,” Gunches said. “My company is running legally under the state of California. We are not a cab company.”

He said his firm has about 20 vehicles on the road, about half from Valley Cab Co., but he is gradually replacing the stock with new Lincoln Town Cars.

Zine questioned whether Valley Transportation’s former cabs can be considered limousines just because meters and roof lights have been removed and drivers charge a flat fee.

Tom Drischler, the city’s taxi administrator, said Valley Transportation advertises in the taxi section of the phone book, even though its advertisement says “not a taxi company,” and drivers have been cited three times for working as taxis, including picking up fares that wave them down on the street.

One definition of a limousine company is that it serves customers who arrange to have a car sent to them, Drischler said.

Assistant City Atty. Shelley Smith told the council panel that Valley Transportation is legally operating with a state PUC license and that “we are not going to be successful” if the city tries to prosecute the firm for operating improperly.

For that reason, Zine said new laws may be needed to more clearly define the differences between a taxi and a limousine and give the city inspection powers to ensure that all vehicles are safe.

Bernson added: “If nothing else we ought to have the ability to inspect the vehicles, even if they are licensed by the PUC, because we are responsible for safety in the city.”