Report to: General Committee Report Date: 2007-10-15

SUBJECT: Premier Taxi Plate Conversion Request

PREPARED BY: Sheila Birrell, Extension 4729

RECOMMENDATION:

That By-Law No. 2002-308, “A By-Law for Licensing, Regulating, and Governing Owners and Drivers of Taxicabs and Taxicab Brokers” (as amended) be amended to:

• restrict the issuance of any new plates to Premier plates;
• provide for automatic issuance of Premier Plates based on a maximum ratio of plates to population of 1:1500
• require Premier plate holders to drive the taxicab at least 50% of total hours of operation of the taxicab
• revise the reference in Section 6.1(1) to an “application for taxi owner’s plate” to “an application for a position on the Priority List”, to be substantiated with a statutory declaration and trip sheets and/or GST registration or other documents requested by the Licensing Officer
• provide for a statutory declaration and trip sheets and/or GST registration or other documents requested by the Licensing Officer to remain on the Priority List
• add a requirement that the application be amended within seven days of any change in the information on the application for the Priority List
• provide that when a person on the Priority List declines to make application for a Premier plate when one is available, his/her name is placed at the bottom of the List
• delete Sections 4 and 5 that require the Licensing Officer to recommend removal of names from the List
• revise Section 4.9(2) to provide for requests for the transfer of regular plates in less than three years to be referred to the Licensing Committee;

And that the request from the current Premier Plate Holders for conversion of the existing Premier Plates to regular plates be denied;

And that Staff be authorized and directed to do all things necessary to give effect to this resolution.

EXECUTIVE SUMMARY:

Markham like almost all North American urban centres regulates the taxi industry within the community through a licensing program. Authority for the Licensing Program is found in the Municipal Act. Markham’s goals and objectives are:

n Public Safety & Consumer Protection

q Provide a safe & secure service to the public and ensure appropriate controls & accountability measures are in place and enforced.

n High Quality of Service

q Ensure Taxis are clean, safe & comfortable.

q Ensure Drivers are courteous, knowledgeable & experienced.

q Ensure the industry provides high quality customer service that is responsive to customer needs/demands.

q Ensure regulations permit fair competition

q Ensure service is provided to customers for costs that are fair and predictable.

q Ensure costs and profits are shared fairly amongst industry participants.

The move away from Regular Plates to Premier Plates in 2002 was an attempt to ensure the Town’s initiatives were realized. Reasons for the adoption of the Premier Plate System were:

n Money going back into the industry

n Newer Vehicles

n Enables drivers to have their own business

n Eliminates Lease Costs

n Second Driver Permitted

n Pride in Ownership

The administrative tool for the issuance of taxi plates is called a “priority list”. There are criteria in place for eligibility. Prior to 2002 members of the taxi industry were of the opinion it was their right to be on the list and subsequently entitled to be issued a plate when their name rose to the top of the list. That plate was transferable and it was considered their “pension plan”. Today, members of the industry consider the priority list the fairest method for issuance of plates. Members of the industry have been advised that the list does not entitle them to ownership, it is simply an administrative tool used to fairly distribute new plates.

Following adoption of the Premier Plate Program in 2002, 20 plates were issued to drivers on the priority list at the time. Those 20 drivers are now before Council requesting conversion of the premier plates to regular plates to allow them to transfer them. Staff are strongly recommending denial of the request. Since the issuance of the initial 20 plates in 2002, no additional plates have been issued. Approval of the request would, in effect, eliminate the Premier Plate System for the Regular Plate System. With a transferable plate system, the industry becomes focused on plate holdership, as opposed to service provision. Little money is retained in the industry for improvements, such as newer vehicles, security systems, and GPS systems. Staff, following a review of the industry, will be coming forward early in 2008 with a comprehensive report. Until that time, no additional Premier Plates will be issued.

1. Purpose 2. Background 3. Discussion 4. Financial

5. Others (Environmental, Accessibility, Engage 21st, Affected Units) 6. Attachment(s)

PURPOSE:

To respond to a request from the current Premier Taxi Plate Holders for conversion of their plates to Regular Plates and to recommend minor revisions to the Taxi By-Law to streamline current administrative processes and facilitate more effective enforcement of By-law provisions.

BACKGROUND:

A special meeting of the General Committee was held during the evening of September 18, 2007 to gather input from the industry on the recommendations contained in the staff report and a number of questions arose. These questions, together with staff’s response, are listed on Schedule “A”. The report presented on September 18^th is attached hereto as Schedule “B”.

OPTIONS/ DISCUSSION:

Following the September 18^th General Committee special meeting, staff met with taxi drivers on October 4^th. Their input is included in Schedule “A”.

The issues associated with Markham’s taxi industry are not unique. Many municipalities are struggling with the regulation and enforcement of the industry. The following is a quotation from The Richard and Rhoda Goldman School of Public Policy, University of California, Berkeley in their report entitled “The San Francisco Taxicab Industry: An Equity Analysis”, dated June 2006:

“Every taxicab on the street must have a unique medallion. The Taxicab Commission limits the supply of taxicabs by capping the number of medallions. The number of medallions is only increased through an annual Public Convenience and Necessity Hearing. This cap allows medallion holders to earn significant economic rents—income that results solely from the artificially limited supply—by leasing out their medallions to non-medallion holders when the medallion holders themselves are not driving. The concentration of these rents on the 1,306 medallion holders is a core inequity in the current system: it allows a small group of private citizens to earn windfall profits from a public asset and it results in a wide disparity in the quality of life of medallion holder versus non-medallion holder drivers.”

Staff are recommending denial of the current request to convert non-transferable Premier Plates to transferable Regular Plates. In 2002, it was the intent to only issue Premier Plates on a go forward. Unfortunately in error, the number 20 was included in the Taxi By-Law. The by-law amendment will provide only for Premier Plate issuance on a go forward. If the Town hopes to achieve its regulatory objectives relative to the Markham taxi industry, i.e. public safety, consumer protection, and excellent customer service, then dollars need to be infused into the industry and not into the pockets of individual plate holders.

If there is a desire to exhaust the Priority List before issuing any Premier plates, based on 2002 to date, it will take 50 years to do so (based on the issuance of 20 new plates every five years). To revert to Regular plates would not be in the best interests of either the taxi industry or Markham residents, over the long term.

FINANCIAL CONSIDERATIONS AND TEMPLATE:

Not applicable

ENVIRONMENTAL CONSIDERATIONS:

Not applicable

ACCESSIBILITY CONSIDERATIONS:

Not applicable

ENGAGE 21^ST CONSIDERATIONS:

Engage 21^st organizational values and service principles include innovation…continually striving to develop and apply new ideas, products and services, technologies and skills.

Engage 21^st also identifies the Town’s corporate goals of organizational excellence…to achieve excellence in managing and delivering quality services through quality people.

BUSINESS UNITS CONSULTED AND AFFECTED:

The Legal Department has been consulted and they advise the Town has the authority to place limitations and conditions of a licence, including its transferability.

RECOMMENDED BY:

________________________ ________________________

Sheila Birrell Andy Taylor

Town Clerk Commissioner

Corporate Services

ATTACHMENTS:

Schedule “A” – Synopsis of September 18^th Public Meeting

Schedule “B” – Report of the Clerk to the September 18^th Public Meeting