Stakeholder Issue

Description

Staff Response

Transferability of Premier Plates

Industry stakeholders have requested the ability to transfer Premier Plates.

·     The Town’s objectives for Markham’s taxi industry are public safety, consumer protection and excellent customer service.  To achieve these objectives and to significantly improve Markham’s taxi industry, the Town must foster a regulatory framework where the emphasis is on quality service delivery rather than on the ability to transfer a plate for future sale.  The establishment of the non-transferable Premier Plate model was a key first step toward doing this. 

·     The Premier Plate model provides for newer vehicles (under three years, versus five years for the Regular Plates) and allows drivers to eliminate leasing costs and operate their own business. 

·     A significant financial value has been attributed to Regular plates.  The taxpayers of Markham do not receive any benefit from this and the Town should not encourage the conversion of a municipal licence into a commodity via its regulatory practices.

·     The Regular plate system serves as a barrier to the entrance of new industry participants in Markham as only those with sufficient funds to “purchase” a Regular Plate on the secondary market can afford to do so.  Those who cannot afford a Regular Plate, must drive for someone else. 

·     There is no valid regulatory rationale for the Town to allow taxi plates to be transferred (as opposed to requiring them to be returned to the Town for issuance to the next qualified individual on the new PL). 

·     Staff is recommending that only Premier Plates be issued on an on-going basis which will improve customer service, reduce operation costs, and create pride in ownership.

 

ISSUES RAISED BY INDUSTRY STAKEHOLDERS ON SEPTEMBER 18, 2007 AND STAFF RESPONSE

Stakeholder Issue

Description

Staff Response

The Town Should Provide a Pension Plan/Rate of Return on Municipal Licences

Industry stakeholders have indicated that the Town should compensate for the time and effort they have put into Markham’s taxi industry by providing them with a “reasonable rate of return” on the $5,000 they paid for a Premier Plate and/or pension plan. 

·     The Town regulates a number of different types of businesses via various business licensing by-laws.

·     A municipal licence represents an individual’s ability to operate a business with the Town.

·     The Town does not provide a pension plan to business licensees and is not responsible for providing a reasonable “rate of return” on municipal licences (for instance, the Town does not compensate the restaurants it licences).

·     According to comments made by industry stakeholders, a Regular Taxi Plate in Markham is worth approximately $60-80,000. In Markham, like in other jurisdictions, these municipally issued plates/licences have acquired a significant value and are frequently traded on the open market without the knowledge of Town staff.  This leads to a lack of transparency in the industry and obstructs enforcement efforts.

·     When asked directly, Plate Holders in attendance at the recent focus groups held by staff indicated they would prefer to purchase their own Premier Plate (at a cost phased in over a three years period) over continuing to lease a plate. 

·     Staff previously provided financial comparison models that indicate more financial gain through the purchase of a Premier Plate versus a Regular Plate.

 

 

Stakeholder Issue

Description

Staff Response

Inclusion of a Plate Issuance/ Plate to Population Ratio in the By-law

Industry stakeholders did not object to the inclusion of a plate to population ratio in the By-law to guide plate issuance.  They suggested the Town at some point review plate issuance models in other to municipalities to ensure the 1 to 1,500 was the most effective model for Markham. 

·     Taxicab By-law 2002-308 does not currently provide for an automatic plate issuance process based on a population ratio. 

·     Staff is proposing the inclusion of a 1 to 1,500 issuance ratio.  This ratio is common across Ontario municipalities and will ensure plates are routinely issued by staff as the population increases. 

·     It will also help ensure an adequate supply of taxis to meet customer need on a go-forward basis. 

·     Staff will also review the plate issuance models used in other municipalities as part of a comprehensive review of the Town’s taxi regulations.

Issuance of Additional Premier Plates

Industry stakeholders have expressed concerns that the issuance of any additional Premier Plates at this time will result in an over-saturation of the Markham market. 

·     There are currently 140 licensed taxis and 50 licensed limousines. 

·     Staff believes a significant number of the licensed limousines in Markham are functioning like taxis.  Given this, if both the number of taxis (140) and the number of limousines (50) are taken into account, Markham is currently at a 1 to 1,500 plate to population ratio.  As such, staff proposes that no additional plates (taxis and/or limousines) be issued at this time until staff reports back after the comprehensive review.

·     There are also 52 GTAA licences but those vehicles operate primarily from the airport to Toronto and return.

 

Limousines in Markham are Operating as Taxis

Industry stakeholders have commented that there are a large number of limousines operating as taxis in Markham.  This is hurting the taxi business.

·     The Town of Markham currently licences 50 limousines. 

·     Based on feedback received by staff from local hotels, patrons of Markham hotels prefer “Town cars” and formally dressed drivers.

·     Municipalities like the City of Vaughan do not licence limousines and as such, are unable to provide an accurate estimate of the number that operate within their boundaries. 

·     As part of a comprehensive review of Markham’s Taxi industry, staff is reviewing regulatory models that incorporate Limousines (other than event related vehicles) into the taxi framework and include them in plate issuance ratio calculations. 


 

Stakeholder Issue

Description

Staff Response

Taxi By-law Enforcement

Industry stakeholders have requested additional by-law enforcement be conducted in order to capture illegal taxis.

·  Staff is aware of the industry’s concerns regarding the operation of illegal/unlicensed taxis in Markham.  Enforcement Staff have and will continue to partner with York Regional Police in that regard.

·  Over the past few months, By-law Enforcement staff have conducted a number of targeted enforcement initiatives to address these concerns (e.g. along Steeles Avenue and at various hotel locations).  The perception appears not to be well founded.  Staff did not observe an influx of Toronto taxis picking up fares in Markham as has been reported.  Nevertheless, the industry has been encouraged to report specific complaints to the Town so they may be investigated.

·  Staff is also researching best practices in this area and will report back on the same in 2008.  It is anticipated that additional resources will be required in order to enhance current enforcement efforts.

 

Priority List  

Industry stakeholders believe that the requirement for an owner to operate a Premier plated vehicle 50% of the time is not feasible.

·  The requirement for a Premier Plate holder to operate a vehicle for 50% of the time is consistent with owner/operator models found in other municipalities.

·  The requirement helps ensure Premier Plate holders are participants in the industry and therefore have a strong incentive to deliver excellent customer service.

 

Industry stakeholders indicated that the Town “owes” a Regular plate to those individuals who placed their name on the Priority List  years ago.

·  The Priority List  (PL) is simply an administrative tool used to assist staff in ensuring an equitable and efficient plate issuance process. 

·  No one, by virtue of being listed on the PL, has a vested right to receive a plate from the Town.

·  Council has the right to amend or repeal any taxi regulation and/or place additional requirements or restrictions on applicants to the PL or to purge or eliminate the PL.

 

Stakeholder Issue

Description

Staff Response

Priority List  (Cont’d)

Industry Stakeholders raised concerns about the eligibility of some of the individual’s listed on the Priority List .

·     Staff is aware of some inconsistencies in the Priority List  maintenance process that occurred several years ago.  As such, staff has been reviewing the Priority List to ensure only the names of eligible individuals are contained on the List. 

·     Once this process has been completed (and the PL “purged” to remove ineligible names) staff will continue to actively maintain the List in an electronic format.

·     Premier Plates issued from the PL are the property of the Town of Markham and are non-transferable.

 

York Region Accessible Taxi Service

Industry stakeholders are concerned that vehicles used to provide York Region Accessible Taxi Service are unlicensed and are taking away business from Markham taxis.

·     Staff met with Don Gordon, General Manager of York Region Transit, on September 21, 2007 to discuss the industry’s concern regarding the provision of accessible taxi service in York Region.

·     York Region Transit advised they have recently awarded an RFP to Royal Taxi for the provision of accessible taxi service in York Region (a contract worth approximately $4,000,000 to $5,000,000 in annual business).  It is important to note that aside from Royal Taxi, there is no strong broker presence in Markham.  This is problematic in so far as Regional Transit has indicated they are not interested in negotiating with individual taxi owners for the provision of accessible taxi service as the logistics involved would be prohibitive.  This inability to compete for such a lucrative contract will continue to be a significant loss of revenue for Markham’s taxi industry.

·     York Region Transit requires that the vehicles used to deliver this service are registered and inspected annually.  The drivers are also required to provide their Ministry abstract and have sensitivity training.

·     There are 15 Markham licensed taxis that are authorized to provide this service via Royal Taxi.  Anecdotal evidence suggests these licensed taxis may be picking up normal fares between runs for York Region Mobility. Markham By-law Enforcement staff will conduct periodic inspections to ensure the taxis are meeting the conditions contained in Markham’s Taxi By-law. 

·     Staff will continue to investigate opportunities with York Region Transit, as well as, the Ministry of Transportation Ontarians With Disabilities Act, 2001 (ODA) and report back in 2008.

 

 

 

Stakeholder Issue

Description

Staff Response

Vehicle operation & maintenance expenditures

Stakeholders commented that operating and maintenance expenditures (i.e. gas, insurance, regular maintenance) make it difficult to earn a living in Markham.

·     Staff is recommending the Premier Plate Program (and corresponding owner/operated regulatory model) be continued.

·     This model provides drivers with an opportunity to purchase a plate from the Town for $5,000 which in turn allows them to operate a business which funds vehicle operation & maintenance expenditures. 

·     The more stringent vehicle requirements required for Premier-Plated vehicles will result in better customer service.