Tour bus operator in Union Square crash could be shut down

A bus collided with scaffolding on Post street in Union Square on Friday, Nov. 13, 2015 in San Francisco, Calif. A bus collided with scaffolding on Post street in Union Square on Friday, Nov. 13, 2015 in San Francisco, Calif. Photo: Nathaniel Y. Downes Buy photo Photo: Nathaniel Y. Downes Image 1 of / 8 Caption Close Tour bus operator in Union Square crash could be shut down 1 / 8 Back to Gallery

The operator of the out-of-control tour bus that crashed near Union Square last month failed a surprise post-accident inspection and could be shut down if problems persist, California Highway Patrol documents show.

The widespread violations uncovered in the surprise audit — done just one week after the Nov. 13 accident on Post Street that left 20 people injured — prompted the Motor Carrier Safety Unit of the CHP to threaten City Sightseeing with license revocation and even criminal prosecution if it does not act within 120 days.

The double-decker bus that slammed into scaffolding at a construction site apparently suffered mechanical failure, officials have said. It had not been inspected by the CHP, and state regulators say it had not been registered with them as required by law.

According to a summary of the Nov. 20 audit of the remaining fleet released by the CHP on Tuesday, inspectors found 61 violations, including 29 for equipment problems.

The state inspectors immediately ordered four of the six buses they inspected out of service for having inoperable emergency exits, faulty brake lamps and in one case, a potentially serious fuel leak. One of the failed buses also had a steering problem that could have led to a loss of control of the vehicle.

The four failed inspections amount to a flunk rate of 67 percent, more than three times the level deemed acceptable under state standards. Fleet officials said 10 of the 27 buses in the fleet were already grounded for repairs at the time of the inspection.

A sampling of records for nine of the company’s 18 drivers found that three had expired license credentials. In fact, the inspection found that the company had not been registering its drivers with the state’s mandated driver tracking database for more than a year, having been suspended for non-payment of DMV fees in August 2014.

The inspection also noted that in some cases, drivers were working beyond the 12-hour limit allowed under law. Inspectors found the company does not make its drivers submit daily inspection reports, failed to perform detailed inspections of buses within the 45-day prescribed interval and was not carrying out required drug testing.

It is not clear how previous inspections — including one conducted just weeks before the crash — failed to uncover the widespread problems. However, the operator was notified in advance of earlier checks and the latest audit was a surprise inspection.

The company’s chief executive officer, Christian Watts, said it received the inspection report and fixed most of the identified problems with its fleet on the day of the inspection.

“The remaining issues in the report are related to past paperwork procedures,” he said in a statement. “As a result, we have instituted operational changes to our internal processes to ensure future compliance. We have invited the CHP in writing to return at their convenience to confirm that all issues in the report have been resolved.”

“We are awaiting word from the California Highway Patrol and the San Francisco Police Department regarding their investigation and analysis of the Union Square crash,’’ Watts said. “We continue to cooperate fully with the investigators to help them find the answers they — and we — seek.”

State Sen. Jerry Hill, D-San Mateo, questioned the state’s decision to allow the company to continue to operate amid such dismal findings.

“They should be shut down immediately,” Hill said. “They should not be allowed to operate any vehicles until they meet the requirements.”

He also said the poor showing raises questions about how the company could have fared so much better in an inspection conducted just two months before.

“What this shows is a dysfunctional inspection system,” he said, renewing his vow to reform the state’s regulatory effort in legislation he plans to introduce next month, including provisions that require surprise inspections in lieu of scheduled audits.

“It’s just common sense you can’t give notice on inspections,” he said. “It just doesn’t work.”

Jaxon Van Derbeken is a San Francisco Chronicle staff writer. E-mail: jvanderbeken@sfchronicle.com