Council Approves Cab Firm Transfer

The United Independent Taxi Drivers will take over for a Burbank-based firm that served the San Fernando Valley before it filed for bankruptcy last year, the Los Angeles City Council decided Tuesday.

The transfer was requested by a bankruptcy judge who selected UITD as the winner of a competitive bid process. The taxi company offered to pay $1.4 million for the franchise permit previously owned by Babaeian Transportation Co.

In 1992, Babaeian won the permit to operate San Fernando Valley Checker Cab, one of only two taxi firms in the Valley. But in August the company filed for bankruptcy protection shortly after transportation officials threatened to revoke the permit.

City transportation officials charged that Babaeian failed to provide computerized dispatching and seven wheelchair-accessible cabs--services promised under its franchise agreement. But the bankruptcy protection kept city officials from revoking the permit.

Since the bankruptcy, UITD has been serving the Valley on a temporary basis.

Under the agreement, UITD will have to abide by the conditions imposed on Babaeian, including requirements that the company have computerized dispatching and wheelchair-accessible cabs.

The council decision, however, created some debate when council members learned that the taxi firm had not yet approved the bylaws with its taxi drivers for the Valley franchise. But the council included a provision that the firm must approve the bylaws by May 27 or forfeit the entire franchise.