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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