Two council members opposed the permit
In a council debate Monday over a proposal for a second taxi
business in Hollister, members arguing in favor of open competition
won out in a 3-2 vote, meaning Yellow Cab Co. will be allowed to
vie for Hollister Taxi’s service.
Two council members opposed the permit
In a council debate Monday over a proposal for a second taxi business in Hollister, members arguing in favor of open competition won out in a 3-2 vote, meaning Yellow Cab Co. will be allowed to vie for Hollister Taxi’s service.
Council members considered the application from the Monterey-based company and co-owner Stephen Cardinalli, of Del Rey Oaks. The city code requires a report from Police Chief Jeff Miller, who detailed findings in such areas as potential demand, congestion and hazards while concluding that “no negative information would preclude” the applicant from getting a permit.
Council members Victor Gomez, Ray Friend and Eugenia Sanchez voted to OK the permit. Council members Doug Emerson and Pauline Valdivia voted against it.
Hollister Taxi has operated here for 26 years, but Yellow Cab’s two representatives contended that their business would provide such improvements as quicker service – Cardinalli told officials bar and restaurant owners here said it can take up to two hours for a ride – and less expensive rates.
The company expects to do that by dispatching eight to 10 cabs in Hollister, driven by local residents.
Hollister Taxi’s owner also was at the meeting and told council members the business operates with two cabs at all times, one in service and another on call. He noted how Saturday is the busiest day of the week and responded to the allegation about long delays by noting that, “For some reason, our community likes to call all at the same time.”
Before council members took their vote, he also pointed out how Hollister Taxi plans to increase its visibility by opening an office for the first time, in the Jessie’s Gas building, and that the business is working to improve service in several areas.
Council members first rejected a motion by Valdivia to deny the application before they adopted a resolution from Gomez approving it.
Gomez pointed out how he owns Papa Murphy’s in Hollister and said he would be a hypocrite as a business owner to disallow competition. He believes two competitors could result in better service and lower rates, which would benefit Hollister citizens.
“Though I sympathize with you,” Gomez said to Hollister Taxi’s owner, “I believe in capitalism.”
Emerson before his dissenting vote said he was concerned about the need for a second cab company.
“First, let me say, I believe in competition. I believe very highly in competition,” Emerson said. “But the way I read this resolution is, adopting this resolution means we believe there is a need in the community for a second cab company.”
Emerson said the argument that “competition is good” was the only contention made in favor of approving the permit.
“I didn’t hear anybody come here and have any complaints about our present cab company,” he said.
Valdivia stressed that by disapproving of the applicant, it does not mean she thinks Yellow Cab “wouldn’t do a good job.”
“Yes, I know people need to have a choice,” Valdivia said, noting how she had not heard any complaints about Hollister Taxi in its 26 years of existence. “I think it’s really important that we look at, we have a taxi company right now. They need to have the opportunity to develop the company to meet the needs of the community.”
Friend, though, said he believes Hollister Taxi will improve service because of Yellow Cab’s competition.
“I’m sure they wouldn’t be here if they didn’t think they could make some money on it,” Friend said, of Yellow Cab. “They say there’s a need. Then I’m going to agree with them and say there is a need until one of them folds their tent.”
Once council members approved the permit, Gomez indicated an intention to add conditions to the permit, such as allowable hours of operation so the two businesses do not conflict.
The police chief then stepped in and suggested it likely wasn’t the “proper purview” of the city to set conditions on when a business can operate and he said he would be “very reluctant to jump into that.”
Council members agreed, including Emerson, who had opposed the permit.
“I feel very uncomfortable setting conditions of operation when there are two competing companies, telling one when they can operate and telling one when they can’t operate,” he said. “I’m not comfortable making a decision on any business that restricts them in any way.”
