INDUSTRY IN REVIEW

by Don McCurdy

Mayor plans to end “system.”

White Plains New York Mayor Joseph Delfino is reported to be planning “to end” the city’s medallion system. Apparently, the mayor took exception to reports that the medallion owners were “selling” the medallions with a balloon note due at the end of three years. Reports are that drivers were unable to pay the balloon notes and the medallions were returned to the seller.

No, what? PT Barnum must still be giggling. While the city won’t negotiate with the driver’s union they do take exception to the medallion holder’s sales techniques. It will be interesting to follow what happens since the current medallion holders will no doubt scream bloody murder when the mayor comes up with some new process that kicks them off the gravy train.

Of course…

Reports out of Bloomington Illinois are that the regulated taxicabs are having trouble competing with unregulated buses and limousines. Go figure. The solution, more regulation. The city is reported to be drafting regulations for the buses and limousines so the regulations already on the taxicabs won’t bankrupt the taxicab companies. I’m guessing we should call this “better living through government.”

The real chuckle for me was the article from the Daily Vidette at Illinois State University quoting a city official as saying, “they weren’t going to regulate fairs or anything.” I’m not sure what regulating “fairs” would have to do with it, but my guess is that Emily Miller, Daily Vidette Staff Writer, isn’t an English major.

Caution! Saturation approaching!

Reports are that two companies are attempting to open transportation services in Fort Collins, Colorado. Colorado’s antiquated regulations allow for companies to file “intervention” documents to prevent “saturation.” A spokesman for the current transportation provider, Veolia, said the documents are “standard procedure.”

Hell yeah! If the law allowed me to keep my competition out by simply filing “intervention” documents it would be my “standard procedure” too. The problem here isn’t Veolia, it’s the asinine regulations the Colorado Public Utilities Commission operates under.

Stifling competition and limiting market entry keeps prices high, innovation out and reduces potential job growth. Recently, the Colorado legislature took some small steps to improve the situation, but it has a long way to go. Time to get on the stick boys and girls. Your state’s economy could use the jobs.

Is that all there is?

The Cincinnati city council is reported to be discussing a fare increase. While they did get an increase on the drop and the waiting time in 2007, there hasn’t been a mileage increase in several years as demonstrated by the $1.60 per mile charge.

What made the story interesting to me was the report that the request for a fare increase was made back in June and it just now made it to the council agenda. I’m certainly glad I’m not depending on the Cincinnati city council for my survival.

The other item that attracted my attention was the statement by one of the council members that the cost of gas being the driving force behind the initiative made the request “irrelevant” now that the price of gas had dropped. Which made me wonder, is that all there is to the cost of living?

Granted, the price of gas is a huge concern for taxicab drivers, if not for the Cincinnati city council, but it’s not the only component in the cost of providing service. Regulators get too focused in on the price of gas and disregard other costs such as repairs, insurance and other general living expenses.

I don’t know how it is in Ohio, but here in Texas everything goes up. It seems to me that if I were going to price fix in an industry, which is what regulation is, I would at least have the responsibility to see to it that the workers in that industry made a living wage.

The last time I visited Cincinnati the taxi industry there was very much hand to mouth. With their city council fixing prices it looks like it’s going to stay that way.

Meanwhile…

The area around the city of Richmond, Virginia is considering a rate proposal to raise the fare to $2.50 a mile from $2.00 a mile. The Capital Region Taxicab Advisory Board recommended the rate change and all of the jurisdictions around Richmond have raised the rates. Well, all but one that is.

Chesterfield County has yet to adopt the rate, but area taxicab companies outside their jurisdiction have already started using the new rates. Oops. Which begs the question, why have an advisory board if you’re not going to take their advice? If the county leaders want to regulate the industry without the advice of the board that’s fine, but why pretend.

I’ve been on numerous boards, committees, and sub committees and find it to be all but a useless endeavor. You spend months working out an agreement only to have the entire thing thrown out because some uninformed reporter spooks the council. To the politicians I say, just be honest, tell the board you don’t care what they recommend. You’re going to do as you please, anyway. Oh, sorry, I lost my head, we are talking about politicians here.

Just shocking!

I recently read an editorial in the San Francisco Bay Guardian Online lamenting the attempted sale of San Francisco medallions by Mayor Gavin Newsom. The piece was pretty much on the mark as far as the pitfalls of the proposed plan, but it left out the motive.

One could speculate that Newsom’s motive is the money the city would get from the sale, but I don’t think that’s the entire story. The city could get considerably more if it simply raised the fee drivers had to pay the city to operate their medallion. No, in my opinion there has to be more to the story.

Someone here is getting a political payback. However, the real question is - who? The funny part of the story was when the author complained that Newsom had promised, in writing, not to attempt to change Prop K, which indicated the voters’ decision on who should get the medallions. I guess the author understands a little how Alex Tourk felt.

How can that be?

As most of you know my comments are on stories gleaned from news articles, broadcasts and internet news sites. Well, as you might imagine, every once in a while, like say every other month, I’m called to task for not having my story straight. This is that month.

Heather Williams,Vice President of River City Cab in Evansville Indiana was kind enough to set me straight on my recent comments regarding her company broadcasting credit card numbers over the airwaves. Interestingly, when you read the story more closely you can see that the facts are somewhat disconnected and end up leaving you with several misconceptions.

After a short discussion, surprisingly congenial, Heather cleared up those misconceptions with a few insights as to the reporter’s personal professional issues which included the reporter's lack of understanding of the particular facts in this case and the industry as a whole.

My sincerest apology to Heather for not have my “facts” straight. I have been misquoted by the press many times and should have known better.

—dmc

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