Airport Taxi Provider Abruptly Replaced

In a surprise move, county airport officials kicked out the taxi company serving John Wayne Airport and on Wednesday evening replaced it with another firm.

About 25 taxis from A Taxi Cab pulled out of the airport about 6 p.m. after an airport official handed the drivers a letter of termination.

The decision came a day after airport director Alan L. Murphy denied the firm a new contract because it failed to provide a DMV certificate of insurance. Murphy decided to make the change right away.

The new firm, American Taxi, began operating cabs at the airport immediately. The new company wasn’t expected to take over until April 1.

“In the best interest of the traveling public, John Wayne Airport expedited a contract with American Taxi to continue taxi service,” Murphy said in a prepared statement. “The airport is making every effort to minimize any impact to our patrons during this transition period.”

A Taxi Cab had provided airport service for four years before county supervisors on Tuesday rejected the company’s bid for a new contract, citing the questions raised about the insurance certificate.

Robert Palmer, the company’s attorney, said the firm was covered by a $2-million insurance policy and that the county “had never requested” a certificate of self-insurance from the state. The company intends to take legal action against the county, Palmer said.

Supervisor Todd Spitzer said he will ask County Chief Executive Jan Mittermeier to review the bidding process.

“This lack of oversight has subjected the county to unnecessary liability, and I’m going to demand the CEO write a report to the supervisors about the process and what safeguards can be put in place to make sure this never happens again,” Spitzer said.

A competing taxi company, which was seeking the same contract worth $3.4 million over five years, first raised the issue of A Taxi Cab’s insurance status.

The new contract granted to American Taxi runs for three years and is renewable for two more.

A Taxi Cab placed above American Taxi in the county’s bidding process and, at the supervisors’ meeting Tuesday, Murphy recommended that the county renew the firm’s contract. But the insurance issue prompted Murphy to throw his support to American Taxi.

Despite questions raised by supervisors about the bidding process, the board voted 3 to 2 in favor of American Taxi. Chairman Charles V. Smith and Supervisor Cynthia Coad dissented.

American Taxi is a Santa Ana-based company barely 4 months old. The company recently bought 70 cars powered by natural gas.