Report to: General Committee                                                           Report Date: 2007-09-07

 

 

SUBJECT:                          Premier Taxi Licences

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:

 

  • 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 of the Priority Waiting 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 Waiting List
  • add a requirement that the application be amended within seven days of any change in the information on the application for the Priority Waiting List
  • provide that when a person on the Priority Waiting 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 to regular plates be denied;

 

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

 

 

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

 

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

 

PURPOSE:

To provide for automatic issuance of Premier Plates and to facilitate a response to a request from the current twenty Premier Licence Plate Holders for conversion of their plates to regular plates.

BACKGROUND:

In 2002, following an extensive public consultation process, Council approved the establishment of a new class of non-transferable “Premier” licence.  At that time the by-law was amended to provide for the new class and twenty plates were issued to individuals whose names were included on the priority waiting list (PWL).  The intent was that, on a go forward basis, only Premier licence plates would be issued by the Town of Markham.  In order to issue additional Premier plates, a by-law amendment is required and the amendments recommended will provide for ongoing automatic issuance.

 

In 2006 representatives of the Premier Taxi Plate Holders approached Members of Council requesting conversion of their Premier plates to regular plates.  A number of meetings have been held with representatives of the Premier Plate Holders.

 

At the General Committee in February 2007, Staff presented information on the history of the Premier Plates and the request from the current Premier Plate Holders. Committee discussed the potential for liability with respect to the premier plate program.

 

OPTIONS/ DISCUSSION:

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:

 

Goals & Objectives

 

  • Public Safety & Consumer Protection

ü      Safe and secure service to the public

ü      Appropriate controls and accountability are developed and enforced

  • Quality of Service

ü      High service levels in safe, clean and comfortable taxicabs

ü      Knowledgeable and courteous drivers

  • Availability of Service

ü      Sufficient capacity to meet customer service demands

ü      Ability to provide service in different forms to meet service demands

  • Reasonable Profitability of Service

ü      Fair competition within the industry

ü      Fair service for predictable price

ü      Fair allocations of costs and profits throughout the industry

 

The first issue being addressed in this report is the need to issue additional Premier Plates.  Staff is recommending the immediate release of ten additional plates and an amendment to the by-law to provide for an automatic release of plates based on a ratio of 1 to 1500 population.  (See Schedule “B” for comparatives)

 

The Premier Plate program implemented a requirement that the vehicles are no more than three years old.  The by-law also requires driver owned vehicles which will eliminate the


OPTIONS/DISCUSSION:  (cont’d.)

increase of absentee licencees.  It is proven in the industry there is pride of ownership.  At the time of the report, the drivers advised they were paying very high lease costs, dispatching costs, and insurance and were unable to make a decent living.  The program also provided an opportunity for drivers to acquire their own plate for $5,000, versus $100,000 on the open market.  This makes more money available for investment in vehicles/equipment.  This makes more money available for investment in vehicles/equipment.   Furthermore, the premier plates make more financial sense for the drivers.  The regular $100,000 plates are viewed as a potential “retirement fund” as they would able to be sold to another driver in a future year.  If the value of the plate increases by 3% per year, an owner could sell it for $180,611 in 20 years.   Alternatively, by purchasing a $5,000 premier plate, and investing the $95,000 difference into an RRSP (at a rate of 5%), a driver would have $257,701 after 20 years.  Refer to Schedule “A” which illustrates possible scenarios; each one showing that a driver would be better off by purchasing a premier plate for $5,000 and investing the difference:

 

Two things the Town did upon implementation of the Premier system to assist drivers was: (1) allow up to 24 months for payment of the plate; and (2) a phase-in of the three year vehicle requirement.  Staff anticipates that over time, with the implementation of more Premier Plates, both the condition of the vehicles and customer service will improve. 

 

Should Council approve the automatic issuance of Premier Plates, other amendments are required to provide for easier enforcement of the by-law.  Section 6.1(1) should be amended  to require a statutory declaration with trip sheets, and/or GST registration or other documents requested by the Licensing Officer when making application for a position on the Priority Waiting List.  The same requirement should be an annual requirement to remain on the list.  In addition, the Town needs to be notified of any changes in the application within seven days of said change.

 

Staff are also recommending that a new section be added to address what happens when a person on the Priority Waiting List declines to make application for a Premier plate when one is made available.  Staff are recommending the name go to the bottom of the list on the condition that the individual meets the requirements of staying on the list.

 

Sections 4 and 5 should be deleted.  These sections provide for an appeal to Council to have someone’s name removed from the list when they fail to the meet the administrative requirements of the by-law.  These sections are redundant as the person’s name is removed only if they fail to meet the provisions already established by Council in the by-law and provides for a procedure for notifying that person and providing them the right of an appeal to the Licensing Committee.

 

Currently, the transfer of a regular plate in less than three years is a decision of Council.

Staff are recommending that Section 4.9(2) be amended to provide that such requests be

OPTIONS/DISCUSSION:  (cont’d.)

considered by the Licensing Committee and not Council.

 

The second issue pertains to the existing Premier plates.  The current Premier Plate Holders advise they consider a taxi plate their “pension” plan and have therefore requested the Town convert their non-transferable Premier Plates into transferable standard plates.  Staff argue that the Town is not in the business of providing pension plans for businessmen/women.  As illustrated in Schedule “A”, taking the $5,000 startup costs and purchasing RRSP’s with the amount the applicant formerly paid to lease a plate, derives greater benefit to the applicant over the projected 20 years.  Staff are of the

opinion that the focus of the taxi industry should be on service provision as opposed to plate holdership.  Staff are recommending this action based on the best approach to achieving its previously stated goals and objectives.  Staff is currently undertaking an extensive taxi/limo review and will be coming forward late in 2007 or early in 2008 with recommendations for improvements that will address safety, accessibility, and customer service.

 

Given the fact Markham’s current population, there is potential for 190 plates.  Although there are only 140 plates licensed, staff are recommending the release of only 10 Premier Plates at this time to ensure the market is able to absorb the additional taxicabs.

 

 

FINANCIAL CONSIDERATIONS AND TEMPLATE:

An additional ten Premier plates represents one-time revenue in the amount of $50,000.

 

 

ENVIRONMENTAL CONSIDERATIONS:

Not applicable

 

 

ACCESSIBILITY CONSIDERATIONS:

Not applicable

 

 

ENGAGE 21ST CONSIDERATIONS:

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

 

Engage 21st 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” – Financial Comparison Model

Schedule “B” – Comparatives of Plates to Population Ratio


Schedule A- Financial Comparison Model

 

 

Cost of Regular Plate

Value of Plate in 20 Years @ 3.0% Inflation

Value of Plate in 20 Years @ 3.5% Inflation

Value of Plate in 20 Years @ 4.0% Inflation

 

Value of RRSP in 20 years if invested @ 5%

    60,000

     108,367

    119,387

    131,467

 

        149,197

    80,000

     144,489

    159,183

    175,290

 

        203,449

  100,000

     180,611

    198,979

    219,112

 

        257,701

 

 

 

Schedule B- Comparatives of Plates to Population Ratio

 

Population, Plate Numbers, and Plate Ratios of Surrounding Municipalities

Municipality

Population

Plates (1)

Plate to Pop. Ratio

Brampton

434,000

257

1:1,628

Oshawa

146,000

97

1:1,505

Vaughan

252,634

173

1:1,460

Richmond Hill

179,584

114

1:1,575

Average

253,054

160

1:1,581

Markham (existing)

285,061

140

1:2,036

Markham (proposed) (2)

285,061

150

1:1,900

(1) Does not include Airport plates

(2) With Markham’s current population potential for 190 plates at 1:1,500 ratio