Supervisors Hail New Taxi Company for John Wayne

The company providing taxi service at John Wayne Airport was denied a new contract Tuesday by county supervisors after it failed to provide a DMV certificate of self-insurance.

A Taxi Cab, which was the top-ranked company among competitors seeking a three-year contact, was rejected in favor of American Taxi, a Santa Ana company barely 4 months old. American Taxi recently bought 70 natural gas-powered cars.

A spokesman for A Taxi Cab said the company’s taxis are insured for more than $2 million but it did not provide a certificate from the California Department of Motor Vehicles because the contract did not stipulate that one was needed.

“No, we have not given the county a certificate,” said the company’s attorney, Robert Palmer. “That’s because [the county] never made a request for that certificate, and it’s not mandated by law.”

The disclosure by the company was in response to questions raised by some of the other competitors vying for the same contract worth $3.4 million over five years. The new contract, which begins April 1, runs for three years and is renewable for an additional two years.

The action was a vote of confidence for Rick Schorling, president of American Livery Inc., which operates American Taxi.

Schorling had urged supervisors to “send a national message” and make John Wayne the first airport to use only “clean-fuel” taxis.

Cindy Sullivan, manager of technology implementation at the South Coast Air Quality Management District, also urged supervisors to support Schorling’s company, saying they had “an opportunity to utilize alternative sources of fuel that were recommended by the AQMD.”

According to Alan L. Murphy, John Wayne’s airport director, the change in companies occurred Tuesday morning when the county’s risk manager told him the existing fleet may be out of compliance with the current contract.

“A Taxi Cab was requested and failed to provide such a certificate,” Murphy said, adding that the company “appears to violate the California Vehicle Code.”

County officials met with the county counsel’s office to get a legal definition and determine whether they should immediately terminate the contract with A Taxi Cab for allegedly being out of compliance.

Late Tuesday, Murphy sent a letter to Palmer, directing that the contract be terminated because the “insurance is not acceptable.”

However, Murphy said that “in the interest of public convenience and safety,” the company will be allowed to continue operations for the duration of its contract, until month’s end. The company must provide proof of at least $100,000 in insurance with the county named as an additional insurer.

Murphy had recommended A Taxi Cab for the new contract after it placed above American Taxi following a lengthy review and bidding process. But Murphy rescinded his recommendation during testimony before supervisors.

“In view of this new information, I can no longer recommend A Taxi Cab be awarded the contract, and recommend that the board select [American Taxi],” Murphy said.

Board Chairman Charles V. Smith, who had dissented, said he supported Murphy’s recommendation but believed the board needed more time to “fully evaluate” the new information before voting.

Supervisor Thomas Wilson, who termed the bidding process “a roller-coaster ride in the dark,” nonetheless voted for American Taxi in view of the staff reports.

Joining Wilson were Supervisors Jim Silva and Todd Spitzer.

In addition to Smith, Supervisor Cynthia Coad dissented because she favored the third-ranking firm, which was a consortium of cab companies.