PENNSYLVANIA
PUBLIC UTILITY COMMISION
Harrisburg, PA 17105-3265

Public Meeting held March 17, 2011

Commissioners Present:

Robert F. Powelson, Chairman
John F. Coleman, Jr., Vice Chairman
Tyrone J. Christy
Wayne E. Gardner
James H. Cawley

Application of Kennedy Transfer, Inc., a corporation of		A-2010-2207760
the Commonwealth of Pennsylvania, for amendment 		A-8911652
to its right, inter alia, to transport, household goods in use, 
from the borough of Ridgway, Elk County, and within
three (3) statute miles of the limits of said borough, to 
other points in Pennsylvania, and vice versa:  SO AS TO 
PERMIT:  the transportation of household goods in use,
from the borough of Ridgway, Elk County, and within 
forty (40) statute miles of the limits of said borough, 
and from said territory to points in Pennsylvania, and 
vice versa.   

ORDER

BY THE COMMISSION:

This matter comes before the Commission on an application filed October 19, 2010.  Public notice of the application was given in the Pennsylvania Bulletin of November 13, 2010, with protests due on or before November 29, 2010.  No protests were filed.  Applicant was notified by letter dated December 2, 2010 that it was required to file verified statements.  The verified statements were due January 2, 2011.  On December 17, 2010, the commission received a request for an extension of 30 days, or until February 1, 2011, to file the applicant’s verified statements.  By letter dated December 20, 2010, the request for an extension until February 1, 2011, was granted.  The applicant’s verified statement and seven statements in support consisting of individuals and businesses were received January 31, 2011.  The unopposed application is certified to the Commission for its disposition without oral hearing.  

DISCUSSION AND FINDINGS:  

Kennedy Transfer, Inc. (Kennedy Transfer or applicant) is a Pennsylvania Corporation.  Applicant currently holds household goods in use and property authority at A‑8911652.  Kennedy Transfer, through the present application, seeks to amend its existing household goods in use authority to include from the borough of Ridgway, Elk County, and within forty (40) statute miles of the limits of said borough, and from said territory to points in Pennsylvania, and vice versa.  

			Stephen A. Kennedy is the president of Kennedy Transfer.  Mr. Kennedy has been involved in the household goods moving business since 1976.  He possesses experience in all phases of the household goods transportation business.  

			The business is located at 63 Kennedy Lane, DuBois, Clearfield County.  The facility includes offices consisting of approximately 800 square feet of space.  In addition, the facility has a warehouse consisting of approximately 5,000 square feet and additional self storage at the same location, consisting of approximately 15,000 square feet, all of which is used for the household goods service.  The applicant maintains contact with its drivers through the use of two way radio communications.  The operations are available 24 hours a day, seven days a week.  The applicant receives customer requests by landline telephone at its offices.  Applicant maintains its records at the offices located at 63 Kennedy Lane.  The records are maintained in accordance with the record retention requirements of both the Department of Transportation and the Commission.  Once the records are no longer required in the ordinary course of business, they will be boxed according to the type of record and the boxes will be maintained in a safe, secure place at the applicant’s offices.  The vehicles will be domiciled and dispatched at the facility.  

Applicant presently employs six employees, which consist of three drivers, two helpers, and one clerical person.  Kennedy Transfer intends to utilize the same drivers that it presently employs.  If the applicant does hire additional drivers, the drivers will be properly trained and knowledgeable regarding safety procedures and regulations.  The applicant will ensure that drivers are properly licensed.  Drivers will be subject to a criminal background check every two years.  Drivers must be at least 21 years old and will be required to attend a driver training program prior to operating applicant’s vehicles.  Periodic driver’s license checks will be performed through the Pennsylvania Department of Transportation’s Motor Vehicle Report at least once a year.  Pre employment testing for drugs and alcohol are performed in addition to post-accident testing, random testing and reasonable suspicion testing.  All employees are provided a drug and alcohol policy which states that no driver shall be on duty and possess, be under the influence of, or use, a narcotic drug or any other substance which renders him/her incapable of safely driving and that no one shall drink any liquor, regardless of its alcoholic content, or be under the influence of liquor within four hours before going on duty or driving, nor be on duty or drive while in the possession of liquor.  

The applicant performs preventive maintenance on its vehicles at least every 150 operating hours for the large vehicles and 50 operating hours for the smaller vehicles.  It makes every effort to keep its vehicles in top operating condition.  The applicant intends to ensure that its vehicles are in compliance with the Commission’s regulations.  Kennedy Transfer services its vehicles through an outside garage.  The applicant maintains records at its facility to ensure that maintenance is provided when required.  Kennedy Transfer also ensures compliance with the annual inspection and registration requirements and makes sure that all of its vehicles are cleaned regularly.  Both a pre trip and post trip inspection of the vehicles are performed.  Kennedy Transfer submitted a vehicle list with the present application.  

The applicant currently has insurance coverage on file with this Commission to cover its existing authority; however, the Commission requires the filing of a new Form E and H for the expanded grant of authority herein as described above.  

The applicant provided its most recently available financial information as of December 31, 2010.  The corporation reports current assets of $13,868, of which $5,600 is cash and $8,268 is accounts receivable, total assets of $187,777, total liabilities of $272,973, for total owner’s equity of ($85,196).  The ($85,196) represents retained earnings and is basically a loan from the carrier’s shareholder.  

	The applicant maintains a customer complaint resolution procedure to ensure that customer complaints are promptly investigated and resolved.  The applicant’s philosophy is that customer satisfaction is imperative in the household goods moving business.  

	The applicant is hereby advised of its obligation to familiarize itself with the requirements of 52 Pa. Code as applicable to the operations of a common carrier as authorized by this Order.  Applicant is further advised that failure to comply with all applicable requirements may subject the carrier to penalties, including fines, suspension of operating rights or cancellation of its authority.  Title 52 of the Pennsylvania Code may be accessed at www.pacode.com.

After complete review of the record, we find:

1.	Applicant seeks to expand its household goods in use authority to include from the borough of Ridgway, Elk County, and within forty (40) statute miles of the limits of said borough, and from said territory to points in Pennsylvania, and vice versa.   

2.	 Applicant is supported by seven parties.

3.	Applicant has the equipment, capital, facilities, ability and fitness necessary to render the service.

4.	The evidence of record is sufficient to establish necessity for the service.  

5.	Approval of the application is necessary for the accommodation and convenience of the public; THEREFORE,

IT IS ORDERED:  That the right granted by the Commission under the certificate issued at A‑8911652, shall now be amended to read as follows:  

1.	To transport household goods in use from points in the city of DuBois, Clearfield County, to other points in Pennsylvania and vice versa.

2.	To transport household goods in use from points in the borough of Kane, McKean County, and within fifteen (15) miles by the usually traveled highways of the limits of said borough to points in Pennsylvania and vice versa.

3.	To transport household goods, in use, from points in the county of McKean to other points in Pennsylvania, and vice versa.

4.	To transport household goods in use from the borough of Brockway, Jefferson County, and the townships of Snyder, Warsaw, Washington and Polk, Jefferson County, to points in Pennsylvania, and vice versa.

5.	To transport household goods in use from points in the borough of Clarion, Clarion County, and within twenty-five (25) miles by the usually traveled highways of the limits of the said borough to points in Pennsylvania, and vice versa,

		Subject to the following condition:

That no right, power or privilege is granted to transport household goods in use from points in Oil City, Venango County, to points in the borough of Clarion, Clarion County, and within twenty-five (25) miles by the usually traveled highways of the limits of said borough.

6.	To transport household goods, in use, from the borough of Ridgway, Elk County, and within forty (40) statute miles of the limits of said borough, to other points in Pennsylvania, and vice versa.

7.	To transport household goods in use between points in the borough of Emporium, Cameron County, and within an airline distance of twenty (20) statute miles of the limits of said borough, and from points in said territory to points in Pennsylvania, and vice versa.

8.	To transport household goods in use, between points in the borough of Punxsutawney, Jefferson County, and within twenty (20) miles by the usually traveled highways of the limits of said borough, and from said territory to points in Pennsylvania, and vice versa.

	Subject to the following condition:

That no right, power or privilege is granted to transport household goods and office furniture in use, from points in the counties of Allegheny and Westmoreland to points in the borough of Punxsutawney, Jefferson County, and within twenty (20) miles by the usually traveled highways of the limits of said borough, except as presently authorized.

9.	To transport household goods in use from points in the borough of Punxsutawney, Jefferson County, and within fifteen (15) miles by the usually traveled highways of the limits of said borough and from the said territory to points in Pennsylvania and vice versa.

10.	To transport household goods in use, between points in the borough of Bellefonte, Centre County, and within seven (7) miles by the usually traveled highways of the limits of the said borough, and from points in the said area, to points in Pennsylvania, and vice versa.

	IT IS FURTHER ORDERED:  That the applicant shall not engage in any transportation granted in this application until the applicant has received a certificate of public convenience from the Commission.  

	IT IS FURTHER ORDERED:  That a certificate of public convenience shall not be issued until the following are submitted to the Commission and approved by the Commission:

	1.	An acceptable Form E, as evidence of bodily injury and property damage liability insurance.

		2.	An acceptable Form H, or cargo waiver, as evidence of cargo insurance.  

	3.	An acceptable tariff establishing just and reasonable rates.

IT IS FURTHER ORDERED: That upon compliance with the requirements above set forth, a certificate shall issue evidencing the Commission’s approval of the right to operate as determined above.

IT IS FURTHER ORDERED:  That the authority granted herein, to the extent that it duplicates authority now held by or subsequently granted to the applicant, shall not be construed as conferring more than one operating right.  

IT IS FURTHER ORDERED:  that upon compliance with the requirements hereinbefore set forth, a certificate shall issue evidencing the Commission’s approval of the right to operate as above determined.  

IT IS FURTHER ORDERED: That in the event said applicant has not, on or before sixty (60) days for the date of entry of this order, complied with the requirements hereinbefore set forth, the application shall be dismissed without further proceedings.

BY THE COMMISSION,

Rosemary Chiavetta
Secretary

(SEAL)

ORDER ADOPTED:  March 17, 2011

ORDER ENTERED:  March 18, 2011