HomeMy WebLinkAboutRes1990-150
.
.
.
Sponsored by: Schaefermever
CITY OF SEWARD, ALASKA
RESOLUTION NO. 90-150
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA, ADOPTING FINDINGS OF FACT AND
CONCLUSIONS OF LAW REGARDING THE COUNCIL'S DECISION
WITH RESPECT TO VEHICLE FOR HIRE PERMITS HELD BY
YELLOW CAB COMPANY OF SEWARD
WHEREAS, on October 31, 1990, the Police Chief revoked vehicle
for hire permits issued to Yellow Cab Company of Seward under
authority granted him by Section 8.20.085 of the Seward City Code,
citing the arrests of two employees of the company for alleged sale
of a controlled substance from cabs owned by the company while the
employees were on duty; and
WHEREAS, on November 1, 1990, the revocation was amended to a
suspension pending a hearing before the City Council; and
WHEREAS, on November 2, 1990, the suspension was lifted by the
City Manager pending hearing and action by the City Council; and
WHEREAS, the City Council conducted hearings on this matter at
special meetings on November 7, and November 26, 1990;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA, that:
Section 1. The Findings of Fact and Conclusions of Law,
attached and incorporated herein be reference, are hereby adopted.
Section 2. This resolution shall take effect immediately upon
its adoption.
PASSED AND APPROVED by the City Council of the city of Seward,
Alaska, this 10th day of December, 1990.
THE CITY OF SEWARD, ALASKA
c=?L10~-~~
W1ll1am C. Noll, Mayor .
AYES:
NOES:
ABSENT:
ABSTAIN:
Dunham, Hilton, Meehan, Noll and Sieminski
None
Burgess and Krasnansky
None
-1-
.
.
.
CITY OF SEWARD, ALASKA
RESOLUTION NO. 90-150
ATTEST:
(City Seal)
APPROVED AS TO FORM:
Perkins Coie, Attorneys for the
city of Seward, Alaska
&: I r;-
/&/},- (k-l.>t j / t~-"7
Fred B. Arvidson
City Attorney
-2-
.
.
.
Findings of Fact/Conclusions of Law
December 10, 1990
Page 7
ATTEST
APPROVED AS TO FORM:
PERKINS COlE, Attorneys for
the City of Seward, Alaska
a , ..--,
'/~'Ch ij /ei'-1.-'
Fred B. Arvidson
City Attorney
(City Seal)
.
.
.
SEWARD CITY COUNCIL ACTING AS BOARD OF APPEAL
IN RE:
Taxi Cab Permit,
Yellow Cab Company of
Seward, Alaska
)
)
)
)
December 10, 1990
FINDINGS OF FACT AND CONCLUSIONS OF LAW
I. Background
A. Taxi Permits in Seward.
Since 1987, Diane Rivers, d/b/a Yellow Cab Company of
Seward has been the holder of a series of one-year permits for
the operation of a vehicle for hire business. The City of Seward
is also served by Independent Cab which has 4 permits, a
competing business. Jerry Pickett has his own cab with 1 permit
and works out of Rivers' office using her dispatch. Although the
number of cabs actually in operation varies during the time of
day and seasonally, it is not uncommon for as many as 9 cabs to
be operating in the City at one time.
Cabs provide an essential transportation service to the
residents of Seward, including the elderly and the infirm. In
addition, continuing alcohol abuse problems in Seward have
highlighted the community's interest and support of programs to
keep intoxicated persons out of their own personal vehicles and
passengers in cabs instead.
B. The Regulatorv Scheme.
Since 1969, the City has regulated vehicles for hire,
and in January 1985 the City enacted Ordinance 530 in response to
federal law changes relating to anti-trust issues. Under the
provisions of the Seward Code, the City has limited economic
licensing discretion for taxi cab operators in the community.
Significantly, however, the City has continuously retained
provisions relating to public health and safety including reasons
for denial, or revocation of a taxi cab operator or business
permit.
The licensing scheme in Seward is essentially administrative
in nature; however, as in this case the City Council hears
appeals and may review administrative action as an appellate body.
C. The Drug/Alcohol Threat to Public Health and Safety.
The increase in drug- and alcohol-related crimes in
Seward, and the apparent increase in drug and alcohol abuse among
.
.
.
Findings of Fact/Conclusions of Law
December lO, 1990
Page 2
the community's young people, has been a major topic of debate
and action by the Council over the past ten years. The Council's
support and encouragement of economic development for the private
sector in creating a year-round stable economic future for the
children of Seward has been paralleled by the Council's
continuing concern over drug and alcohol abuse. A number of
measures have been tried, some with success, to stem the tide.
For example, we have enacted a change to "bar hours" in Seward
a change that was quite controversial. The Council budget
process has become the focus of increased City expenditures for
law enforcement and drug education programs in the community.
The Seward Life Action Council and its programs have been
supported by the City. The DARE program and other community
education programs reflect the City's continued concern and
support for drug and alcohol education in the school system.
We think it is indicative of our continuing concern for
these pUblic health and safety issues that in revising the Seward
Code in 1985 we left intact the earlier provisions relating to
the revocation of permits for certain criminal activities.
Although we have an interest in revisiting these legislative
issues as a result of the incidents that brought about this
hearing, it is significant that we have consistently retained
substantial jurisdiction and control over vehicles for hire when
that control is directly related to questions of the public
health and safety.
II. The Arrests
Early in the morning of October 3l, a number of arrests
were made in Seward and Anchorage relating to the possession and
sale of controlled substances. The arrests were widely reported
in the press and represented the results of continued major law
enforcement efforts in the community, including under-cover
operations conducted by the Seward Police, the Alaska State
Troopers, the DEA, and, in this case, even the National Guard.
Two of the arrests were of particular concern to the
City as the individuals were arrested for the sale of controlled
substr?ces from taxi cabs in Seward during operation of the
cabs.- The concern that cabs might be used in Seward as a front
1/ There has been considerable confusion in the community
concerning the arrests of alleged "off-duty" drivers. The facts
are that the arrests were made for alleged sales of drugs which
took place in Yellow Cabs by drivers on duty.
.
.
.
Findings of Fact/Conclusions of Law
December lO, 1990
Page 3
for a drug sale and distribution system was cause for consider-
able concern in the community.
III.
The Temporary Susoension
FOllowing the arrests, and in anticipation of possible
further arrests or indictments in the on-going criminal
investigations, the pOlice chief and city manager conferred
concerning their perception that a clear and present danger to
the community was present if, indeed, a cab company or operation
was being used for a drug distribution system. (Both the city
manager and pOlice chief were aware that the arrests were made
for alleged sale of drugs from cabs while Qll duty.)
Given the nature of the arrests, the city manager and police
chief determined that extraordinary measures were appropriate
and, accordingly, the individual permits of the two drivers
arrested were suspended pending further investigation. The
permit of the cab company responsible for the operations was
revoked as well.
On October 3l, following receipt of the original letter of
revocation, the holder of the cab company permit, Diane Rivers,
met with the police chief and the city manager. On November l,
the city manager met with counsel for Diane Rivers. After
discussion with the city attorney, the city manager provided
counsel for Ms. Rivers a letter amending the revocation to a
suspension pending a hearing before the Council. But, because of
the nature of the arrests and the crimes alleged the suspension
would remain in effect at least for the very near future.
After further investigation and discussion with the city
attorney as to the proper procedures to be followed, the
suspension was lifted by 4 P.M. the next day, November 2.
In a letter to counsel for Ms. Rivers, the city attorney
affirmed that the temporary suspension was being lifted and
suggested procedures to be followed for a hearing on the ultimate
issue of whether the license should be revoked.
The cab company was prevented from operating for less than
48 hours, and we understand that during that time period the
company continued to provide cab service, albeit without charge,
as a courtesy to the community.
The Council had previously cancelled its next regularly
scheduled meeting, which would normally be held on November l2
.
.
.
Findings of Fact/Conclusions of Law
December 10, 1990
Page 4
due to the annual meeting of the Alaska Municipal League in
Anchorage. Although tentative because of Ms. River's counsel's
pending trial schedule, it was agreed that a hearing on what
action, if any, should be taken with respect to the permit, could
be held either on November 26, or, if counsel's trial schedule
precluded that date, on December 3. Arrangements were made for
the exchange of information prior to that date.
On Monday, November 5, the mayor, as he is entitled to do
under ~ 3.5 of the Seward Charter, called for a special meeting
of the City Council to further consider whether more immediate
action should be taken with respect to the permit of Yellow Cab
Company of Seward.
IV. The First Hearing
The Council met in special session at noon on November 7.
Actual notice was given to Ms. Rivers and her counsel by letter
dated November 5 from the city attorney. In addition the notice
requirements of ~ 3.5 of the Seward Charter were met.
Ms. Rivers attended in person and her counsel and the city
attorney attended by teleconference. After over an hour and a
half of public comment and discussion, the Council voted to
affirm the action of the city manager in reinstating the permit
of Yellow Cab Company of Seward pending a formal hearing of
further possible action on the license.
V. The Current HearinQ
There was no further evidence presented as to whether the
business itself was being used as a front for a drug distribution
scheme.ZI
The city attorney and counsel for Ms. Rivers made efforts to
conclude a voluntary agreement that might assist in developing a
model program.
The pOlice chief has consulted with Alaska State Troopers
with respect to the ongoing criminal investigations and has
Z/ This is not intended to imply that such is the case one
way or the other, but it is the City's understanding that there
are on-going criminal investigations in Seward related to the
arrests and incidents.
.
.
.
Findings of Fact/Conclusions of Law
December 10, 1990
Page 5
concluded that the City should not publicize the details of those
investigations.
Because of the extreme public health and safety issues
involved, we reaffirm our commitment to the close supervision and
monitoring of ~ vehicle for hire operations in Seward in order
to assure the public health and safety, and the safety of our
children, from illegal drug use in Seward. In particular we are
taking the following specific actions.
VI. Conclusions and Recommendations
1. We conclude that the on-going criminal investigative
process is one of the most important techniques for the
accomplishment of our stated objectives -- the eradication of
illicit drug trafficking in the City -- and, therefore, will not
further pursue the revocation issue at this time if to do so
might jeopardize those efforts. We find that the decision of the
city manager and the police chief in not presenting to this
Council further evidence of alleged criminal activity in order
not to jeopardize on-going criminal investigations was
appropriate and reasonable given the circumstances.
2. We find that two drivers for Yellow Cab Company of
Seward were arrested on October 31, 1990, for the sale of
controlled substances from taxi cabs while on duty. We
understand the criminal justice system is continuing to process
those cases and we do not want to interfere or hinder that
process.
3. We further find that the action of the city manager in
temporarily suspending the permit of Ms. Rivers as operator of a
vehicle for hire business in Seward pending investigation of the
matter was appropriate. The possibility of immediate risk to the
public health and safety warranted the extraordinary action taken
in temporarily suspending the permit of Yellow Cab Company of
Seward.
4. We further find that, given all the facts and
circumstances, it would be an appropriate exercise of our
discretion, as the ultimate licensing authority in Seward to
closely monitor the operations of Yellow Cab Company of Seward
for the remainder of its current license year, that is to say,
until June 30, 1991.
.
.
.
Findings of Fact/Conclusions of Law
December 10, 1990
Page 6
5. We find that the risk to the public health and safety
from the operation of vehicles for hire by persons who might be
under the influence of illegal substances poses a serious risk to
the community and warrants close monitoring of vehicle for hire
businesses within the community.
6. We commend efforts to develop and implement on a
voluntary basis or, with appropriate public hearing and comment,
on a compulsory basis drug testing and intervention procedures
program that would provide assurance to the members of the public
that vehicles for hire in Seward are not operated by persons
under the influence of illegal substances or alcohol.
7. We reiterate our continuing commitment to the eradica-
tion of illegal drugs in Seward and our continuing concern for
alcohol abuse in the community. We believe the vehicle for hire
licensing system is an appropriate mechanism for the implementa-
tion of our policies and intend to continue to use that system
where appropriate.
8. We confirm our continued commitment to due process for
holders of permits to operate vehicles for hire in Seward and
will continue to assure that these concerns are met. To that
end, we request the city attorney to consult with the city
manager and the police chief to review the existing code provi-
sions with a view toward more clearly enunciating the due process
procedures that are appropriate, giving due consideration for our
desire that the public health and safety be protected.
9. We further conclude that it would be appropriate for
the city administration to investigate and attempt to develop,
cooperatively with the existing vehicle for hire permit holders
in Seward and after consultation with Seward General Hospital and
other health care providers, a program to test for substance
abuse among holders of vehicle for hire permits in Seward in
order to protect the public health and safety.
DATED this 10th day of December, 1990.
CITY OF SEWARD, ALASKA