Anaheim : Would-Be Taxi Operators Blocked Again by Council

John Nahavandi and Juan Chavez are determined to bring a second taxi service to Anaheim.

Even though they drive old station wagons and say start-up costs are prohibitive for small business owners, the pair for the second time Tuesday brought their plea to the City Council to get a taxi operation permit for their business, First Class Enterprises of Garden Grove.

And for the second time they were turned down.

Next, they say, they will sue the city, claiming restraint of trade and violation of antitrust laws.

“We have made a good faith effort and they haven’t,” Nahavandi said.

In denying the permit, the council said the applicants failed to provide complete vehicle information and did not show adequate insurance coverage in their application.

Their attorney, Nicholas Thompson, told the council that his clients were willing to meet any conditions necessary for a taxi operator’s permit.

“Give them the opportunity to get into business as small businessman and get some competition into the market,” Thompson said, referring to Yellow Cab Co. of North Orange County, the only company with a permit to operate a taxi service in the city.

Thompson said his clients would be willing to put meters and two-way radios in both their 1971 and 1976 station wagons to satisfy city requirements.

But council members were concerned that the applicants had not made any significant changes from the business plans they first submitted to the council last August.

“I wouldn’t, off-hand, say you’re prepared to address the concerns of this council,” Councilman Ben Bay said before the vote.

“In my opinion, it’s pretty clear that somebody hasn’t done their homework,” said Mayor Don Roth.

Nahavandi and Chavez, along with several other independents, were cited in February for operating a taxi business without a permit. Misdemeanor charges are pending against them.