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HIGHLIGHTS OF THE NEW YORK CITY TAXI AND LIMOUSINE COMMISSION 2012 ANNUAL REPORT
Charter Mandate TLC’s Mission and Structure The New York City Taxi and Limousine Commission (TLC) was created by Local Law No. 12 of 1971, and is charged with “furthering the development and improvement of taxi and livery service in New York City, establishing an overall public transportation policy governing taxi, coach and car services and wheelchair accessible vans, and to establish certain rates and standards.”
The Board of the Taxi and Limousine Commission is comprised of nine (9) members, eight (8) of whom are unsalaried. The salaried Chairman presides over the Board and acts as head of the agency which carries out the Commission’s day to day licensing, regulatory, enforcement, and adjudicatory functions. Members of the Commission are appointed by the Mayor of the City of New York with the advice and consent of the City Council to serve a seven year term. One representative of each of the city’s five boroughs is recommended for appointment by a majority vote of each borough’s respective City Council delegation.
David Yassky is the eleventh person to serve as Commissioner/Chair of the New York City Taxi and Limousine Commission. He was nominated by Mayor Michael R. Bloomberg on March 12, 2010, and confirmed by unanimous vote of the New York City Council on March 24, 2010. David Yassky’s term will expire on January 31, 2017.
Five Borough Taxi Program (5BTP) One major regulatory initiative involved street hail livery legislation for the implementation of “boro taxi” service. On December 23, 2011, Governor Cuomo signed into law Chapter 602 of the Laws of 2011, and on February 17, 2012, signed into law Chapter 9 of the Laws of 2012 which amended the previous statute. This legislation allows New York City to issue up to 18,000 transferable street hail livery licenses to for-hire vehicles. It authorizes them to pick up passengers by street hail anywhere outside the Manhattan Business District, north of West 110th Street and north of East 96th Street with the exception of the airports. Twenty percent of these licenses will be set aside for use with wheelchair accessible vehicles. The legislation also authorizes the issuance of 450 permits for bases which will affiliate these vehicles permitting operation of the service. Following passage of the legislation, the TLC promulgated rules to implement the new service. Specifically, the rules outline standards of licensure for all participating licensees and the services that drivers of boro taxis will provide to New York City residents and visitors. Additionally, the rules specify vehicle service requirements including the installation of meters, the ability to accept credit card payment, and a unique color scheme and markings to distinguish boro taxis from medallion taxis. The rules also regulate street hail livery bases.
Following selection of the Taxi of Tomorrow vehicle, the TLC passed rules to implement the Taxi of Tomorrow project. The rules require taxi medallion owners to purchase the Taxi of Tomorrow, a single, custom designed vehicle, with exceptions such as the hybrid taxi and other energy alternative vehicles. The Taxi of Tomorrow will be available in a standard and accessible model, both of which were crash tested with a partition installed thereby elevating the industry safety standards. The Commission anticipates the activation date for the Taxi of Tomorrow will be October 31, 2013. The rules were adopted by the Commission on September 20, 2012 and took effect on November 31, 2012.
As a result of advances in technology since the original TPEP RFP and the upcoming expiration of the existing TLC contracts with TPEP Providers, the TLC revisited the requirements and standards of TPEP systems in order to provide medallion owners, taxicab drivers, and taxicab passengers with the most up to date service and technology. Rather than extend the remaining TPEP contracts or engage in the procurement process again, the TLC chose to govern the relationship between medallion owners and T-PEP vendors by means of an Authorized Provider approach. In this way, the TLC sought to maintain provider competition and allow the TLC to create and enforce consistent service standards for all Authorized TPEP Providers. Additionally, the TLC believes that an Authorized Provider approach will enable it to revisit and revise standards as technology and other factors continue to advance. The rule established a formal procedure by which a vendor can become an Authorized TPEP Provider, set forth technical requirements for TPEP systems supplied by Authorized Providers, and established the services to be provided by such Providers. The rule was adopted by the Commission on December 13, 2012 and took effect on January 26, 2013.
The New York City TLC is responsible for the licensing and regulation of the 13,237 medallion taxicabs currently authorized to accept hails from passengers within the five boroughs of the City of New York, as well as approximately 40,000 other vehicles serving the public via pre-arrangement and radio dispatch. These “for-hire vehicles” (FHVs) include community car service (or livery) vehicles, black cars, and luxury limousines with a seating capacity of up to 20 passengers. TLC also licenses and regulates paratransit vehicles (ambulettes) and commuter vans that are authorized to transport passengers within specific geographic zones via pre-arrangement. In addition to the aforementioned vehicles and drivers, the TLC licenses and regulates the businesses that manufacture, install and repair the meters used in New York City taxicabs, brokers that assist buyers and sellers of taxicab medallions, and agents that operate taxicab medallions on behalf of owners. TLC-licensed vehicles are an essential part of the comprehensive transportation network of New York City. It is estimated that approximately 55,000 of these vehicles transport over 1.5 million passengers each day. Medallion prices continued to rise in 2012. The highest corporate medallion sale of $1,125,000 was recorded in September, 2012, compared to the highest price in 2011 of $1,000,000, first recorded in October of that year. Similarly, the highest independently owned medallion sale of $850,000 was recorded in December, 2012, compared to the highest price in 2011 of $710,000, also recorded in October of that year. In June of 2013 these prices have risen considerably.
The TLC’s Fiscal Year 2012 operated on a modified budget of $32,639,999 ($22,154,040 for Personal Services and $10,485,959 for Other Than Personal Services). The TLC had an authorized head count of 543 for Fiscal Year 2012. The Fiscal Year 2013 budget is $64,501,169 ($29,117,464 for Personal Services and $35,383,705 for Other Than Personal Services), with an authorized head count of 569. The Fiscal Year 2013 budget includes $22,500,000 as part of the Accessible Street Hail Livery Grant Program pursuant to Chapter 9 of the laws of New York, 2012.
The TLC Call Center answered 270,247 calls in 2012, an average of 22,520 per month. The wait time that consumers and drivers must wait to speak to an agent averaged approximately six minutes. In addition to providing information to passengers and drivers, various staff members are assigned the task of conducting searches for property lost by passengers utilizing the Taxicab Passenger Enforcement Program, more commonly referred to as TPEP. TPEP enhances our ability to track down and locate lost property reported to us by the riding public. Approximately 1,489 searches have been conducted in 2012, and due to the technology, 120 lost items are known to have been recovered and returned to passengers.
The TLC’s Web site – www.nyc.gov/taxi – is a valuable centerpiece in the agency’s efforts to effectively communicate with its regulated industries. In 2012, the Web site received an estimated 76,000 visitors with over 4.5 million page views. On July 17, 2012 we launched a new website. Eighteen months in the making, the new website is a more user friendly and interactive source for licensee and customer information. Over the past year we have grown our social media presence by adding three new social media channels (Youtube, Instagram and Tumblr) and by growing our original social media channels, Facebook and Twitter. We count our “followers” and “likes” in the thousands, and do our best to update them with new original content as often as possible.
Moving the Licensing staff back to our Long Island City facility from our Woodside facility continued to have a positive impact on the DMV inspection no-show rate. The no-show rate for vehicle inspections (Visual or DMV) continued in the 5 percent to 6 percent range per month in contrast to 42 percent no show rate we were experiencing in prior years. We continue to either fax or e-mail the confirmation forms to the base and put all schedule related information on the website so that they can be readily accessed and confirmed by either a base or vehicle owner. We also continue the practice, started in 2010, of direct mailing appointment confirmation forms to all vehicle owners for all renewal inspections.
• 2011 saw the creation of an IMD exception to the owner must drive requirement. Owners who are subject to the owner must drive rules now have the option, for a set payment amount and the designation of a long term driver, to eliminate the need to personally drive the medallion the number shifts required under the owner must drive rules themselves. We will be further enhancing the process in 2013 to allow the election of an IMD to continue throughout the course of the year as opposed to a filing period that begins in November and ends in December of each calendar year. The total amount collected in CY 2012 was $1,512,500.
Field Enforcement In calendar year 2012, The TLC’s Uniformed Service Bureau (“USB”) continued its successful undercover enforcement initiatives from 2011. “Operation Refusal,” measuring taxicab drivers’ compliance with the laws, rules, and regulations that prohibit refusal of service to the riding public under any but a select few circumstances, tested 2,193 drivers in 2012, up 13 percent from the 1,944 drivers tested in 2011. 2012 also saw a dramatic increase in poaching enforcement against “straight plates”, i.e. passenger plated vehicles caught and seized while transporting passengers within city limits without being licensed by TLC. In 2012 we seized and summonsed 2,971 New York State plated vehicles, up from 921 caught in 2011; 754 out-of-state vehicles, up from 236 caught in 2011 and, 526 Commuter Vans, up from the 161 Commuter Vans seized in 2011. The initiative, started in the second half of 2010, is an all-out enforcement action against unlicensed “straight plated” vehicles. In sum, 5,776 vehicles were seized in 2012, up from 1,737 in 2011—an increase of 232 percent. Included in this anti-poaching initiative are the USB airport vehicle seizure operations which increased significantly in 2012 to 91 operations, up from 32 in 2011. USB inspectors continue to partner with the Port Authority Police to observe, ticket, and seize vehicles and drivers found performing illegal activity. In 2012, the total airport summonses issued was 1,253 (including owner and driver summonses), up from 688 summonses issued in 2011. In addition, 2012 saw 607 vehicles seized, up from the 232 seized in 2011. Overall enforcement by USB resulted in the issuance of 65,984 summonses in 2012, an increase of 33 percent from the 49,712 summonses issued in 2011. Top Ten Enforcement Summonses in 2012 Issued by Geographic Location
Uniformed Service Bureau uses TPEP trip sheet data as well as other data to determine when certain violations of TLC rules occur. Specifically, this data helps in determining the following violations:
The Consumer Complaint Unit investigates and issues summonses based on complaints from the riding public. TLC received nearly 18,000 consumer complaints from passengers in 2012. Attorneys and law students prosecute the complaints and in the last year the unit saw an increase in the conviction rate from 60 percent in 2011 to 93 percent in 2012. The main catalyst for this increase was the introduction of a new settlement program. Starting in May of 2012, prior to the issuance of a summons, respondents are sent an offer of settlement. The offer describes the complaint from the passenger, notifies the respondent of the potential charges and offers the respondent an opportunity to plead guilty to a reduced fine. This program has proven extremely successful. Of the 5,468 sustained violations, 2,779 were guilty pleas by settlement. This program is extremely efficient as settlement guilty pleas are done via mail without the respondent having to come to TLC and without scheduling unnecessary courtroom time. In addition, the increase in the number of drivers being held accountable for their actions and paying penalties for their misconduct is sure to have a deterrent effect as drivers paid $981,465.00 in fines in 2012 compared with $569,740 in 2011. Starting in September of 2012, we expanded the investigation of consumer complaints by verifying information via phone, email, and internal investigation. In the past, we verified complaints via U.S. mail only, meaning that prosecution was pursued only in those complaints in which the passenger returned a written verification by mail. Already the volume has increased from 4,566 cases prosecuted in 2011 to 5,874 in 2012. Despite the increase in volume, processing times for 2012 decreased to 79 days from the time of the 311 complaint to the closing of the summons. Building on the success of the intern prosecutor program, starting in the Fall Semester of 2013, New York Law School will house the Administrative Enforcement Clinic called TLC, a year long clinic for second and third year law students to serve as student prosecutors for the TLC. We are also offering consumers an opportunity to provide feedback on their experience in dealing with the TLC so that we can better understand the consumer experience and make improvements where necessary.
TLC rules require yellow taxis to provide passengers with a ride to any destination in the five boroughs of New York City and locations in Westchester, Nassau counties or Newark Airport. The agency has worked to raise passenger awareness and encourage reporting of service refusals. A passenger may contact the TLC or 311 regarding a licensee related concern but not file a formal complaint. These passenger contacts are considered “inquiries.” The inquiring passenger then has the option to have the TLC pursue the issue further becoming a witness to the TLC’s case, at which point the inquiry becomes a formal complaint. To better monitor how TLC efforts are affecting service refusals, the agency has recorded the number of inquiries and complaints received regarding service refusals in addition to summonses issued for refusals. Passenger inquiries decreased in 2012. The agency received on average 439 refusal related inquiries each month of calendar year 2012 compared with 530 each month in 2011. Formal complaints have also decreased from an average of 469 per month in 2011 to 388 in each month of 2012.
TLC rules prohibit yellow cab drivers from charging any amount higher than the metered fare, giving a passenger incorrect change, or requesting a tip. When this occurs, passengers are encouraged to contact 311 and file a complaint. The agency tracks both complaints from consumers and the number of summonses issued to licensees for overcharging. In calendar year 2012 the TLC received 2,176 overcharge inquiries resulting in 1,811 complaints, a decrease from 2011 which averaged 250 complaints per month. These complaints resulted in 296 settlements and 590 summonses issued for overcharge related violations.
In 2012, the Safety and Emissions Division (S&E) performed 51,557 medallions DMV inspections and 38,024 for hire vehicle DMV inspections. Additionally, 11,970 visual inspections of FHV's were done. Taxicab Passenger Enhancement Program (TPEP) Administrative Enforcement In 2012, TPEP data continued to enable the TLC to enforce regulations which are able to be remotely monitored and analyzed, as described above, under Administrative Enforcement. Using TPEP data, the TLC was also able to identify and put a stop to a new overcharging scheme whereby Taxicab Drivers attempted to charge Passengers for tolls not actually incurred during a trip.
The availability and usability of the credit card readers in yellow taxicabs continued to give passengers a convenient payment option, and the steadily increasing number of trips paid by credit cards attests to the value of this functionality. For example, in October 2012, 50 percent of taxi trips, representing 58 percent of the total estimated daily farebox of $6.8 million, were paid for by credit card compared with 45 percent of taxi trips, representing 53 percent of the total fare box, a year ago.
In 2012, TLC passed rules to continue the in-vehicle credit card payment system in Taxicabs including a host of improvements for Passengers. The TPEP 2.0 rules outline the process by which technology service providers that can meet minimum TLC requirements can become authorized to provide TPEP hardware, software, and services to Medallion Owners. Using an Authorized Provider approach encourages competition, and will lead to better products and services. Some key Passenger improvements in the TPEP 2.0 rules include the following:
New taxicab fares took effect in September. The new fare raised the unit charge for each 1/5 mile traveled or each 60 seconds in slowed or stopped traffic from $0.40 to $0.50. The initial charge ($2.50) and time based surcharges were unchanged. The new fare rules also provide for a six-cent per trip driver contribution to a driver healthcare fund. This fund would be administered by a vendor selected by the TLC through a Request for Proposals and would provide drivers with disability insurance and assistance obtaining healthcare coverage. In addition to taxicab fares, the rules passed by the Commission restructured industry lease caps, the maximum amount a medallion owner may charge a driver to use a taxi. All lease caps were increased $10 per twelve hour shift for credit card processing fees and the 5 percent processing pass along was eliminated. The new lease cap rules also permit fleet operators to charge an optional $21 gas surcharge for leases where they provide all gas used by a driver during a shift. Finally, the rules restructure lease caps for drivers who own a vehicle and lease only the medallion (Driver-Owned Vehicles or DOVs). The existing medallion only lease cap was increased to account for increased operating costs and the rules better specify the services and charges included in this cap. Additionally, a new “all-in” lease cap was established for agents who make agreements for leasing a medallion and the purchase or long term lease of a taxi vehicle. After the lease cap rules were promulgated, two legal challenges were filed before the rules went into effect. The Metropolitan Taxicab Board of Trade (MTBOT) filed a lawsuit and received a temporary restraining order (TRO) from the court prohibiting the new lease cap rules from taking effect. Before the case was heard, MTBOT and TLC and signed a settlement agreement and the TRO has been lifted and the new rules have taken effect.
Over the past two years, the TLC has worked on establishing a dispatch program for wheelchair-accessible taxicabs. It engaged in a multi-step process to bring this program to fruition issuing a Request for Information to get feedback on best practices for a permanent dispatch program for wheelchair-accessible taxicabs from stakeholders. The TLC also issued a Request for Proposal for a permanent medallion accessible dispatch program and selected Transportation General, Inc. dba Metro Taxi as the vendor in the spring of 2012 The program was formally launched on September 14. Accessible Dispatch is a centralized service providing on-demand transportation 24/7, 365 days a year with no advance reservations necessary. It will dispatch 233 wheelchair-accessible taxis to locations within Manhattan. The taxis will respond to trips originating in Manhattan and ending anywhere in the five boroughs, Westchester and Nassau counties and the three regional airports. There are five ways to request a wheelchair-accessible taxi. A passenger can call 311, call the dispatch center directly at (646) 599-9999, text a request to (646) 400-0789, by using the mobile app “Wheels on Wheels” (WOW) powered by Taxi Magic and available free from the iTunes app store, or order online. Passengers pay the normal metered taxi fare from point of pick-up to destination. There is no extra cost to passengers and all drivers of accessible taxis are required to participate in the program. To incentivize drivers, Accessible Dispatch will pay drivers directly for the “deadhead,” or travel time, portion of their trips en route to the scheduled pick-up location. Passengers tend to experience an average wait time of between 20 and 25 minutes for a taxi from time of dispatch. To date, there have been over 600 unique users with 591 using the program between one and ten times. We are completing approximately 30 dispatch trips per day and expect those numbers to increase as more customers hear about the program. The TLC continues to work with the selected dispatch company and stakeholders to improve the program.
In June of 2012, the TLC successfully went live with the winner of this year’s “Best of New York Technology” award winner for Mobile Computing. The Electronic Summonsing and Administration Program (ESAP) increases officer safety by reducing the time they must spend in dangerous, confrontational situations. With ESAP TLC’s field enforcement officers are supplied with hand held summonsing computers that are connected to key back end systems via the City’s secure Wi-Fi network (NYCWiN). This real time connection enables officers to quickly call-up key information about someone they’ve stopped thus replacing the time consuming need to call the radio room and wait for them to look up the information and report it back verbally. ESAP, with its ability to quickly search Criminal, DMV and TLC databases and issue summonses for almost 2,000 different rule violations and schedule appropriate court time slots for licensees who have been served, represents the City’s most complex mobile summonsing system to date. While it is still too soon to perform a precise statistical trend analysis, it does appear that the number of summonses that are being dismissed at hearing is trending down. A fact attributed to ESAP’s ability to eliminate illegible summonses and pre-populate critical summons information about the licensee and violation.
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