New Rochelle officials are considering selling medallions to taxi operators beginning next year under a proposal that would shift the way cabs are licensed in the Queen City of the Sound.
The city already sells operators what it calls taxi “medallions,” but the existing licenses are medallions in name only. They are annual permits that sell for $145 and last 12 months. The new system would sell metal pendants to display in cabs that could then be resold by taxi operators. The city could set a fixed price for the new medallions but is more likely to auction the medallions at a starting price of $10,000 each.
City Councilman Al Tarantino, a Republican, compared buying a medallion to a long-term investment. “You”™re creating an asset for the holder of that medallion that could either be passed down to their children or sold at a profit,” he said.
New Rochelle has 150 licensed taxis this year, but Mayor Noam Bramson said in shifting to a medallion system the city would offer only 130 licenses. He said there was a level of guesswork about appropriately pricing the medallions based on the net income of a city cab, which is estimated in a broad range from $10,000 to $40,000 per vehicle.
Bramson, a Democrat, said he has spoken with taxi operators about the medallion system and concluded there was sure to be disruption among the existing cab companies in the city.
“There is no single position from taxi owners and operators,” he said. “Probably would make it easier if there were. ”¦ In the end, we”™re going to have to take all of that input and then make the best judgments we can about public interest.”
Bramson said much of the feedback from taxi companies and operators has led him to think there may be too many cabs in New Rochelle. Changing the licensing system would create a spike in revenue but could also improve service citywide by increasing the demand for licensing. The question is if there is a market to pay $10,000 or more to operate a cab in New Rochelle.
Many cities in the country use the medallion system, with New York City medallions becoming so coveted that recent medallions have sold for as much as $1 million. The city has a designated Taxi and Limousine Commission that closely regulates the industry in the five boroughs.
Westchester County has a Taxi and Limousine Commission that focuses on “for-hire” vehicles but not traditional taxis. Regulation of the industry and enforcement of standards is therefore left to the 45 cities, towns and villages within the county ”“ many of which have differing standards, licensing rules and varying levels of commitment to enforcement
As a result, there is little data to determine the total amount of taxis in operation throughout the county, much less what to charge them for a license. White Plains charges $25,000 for its licenses and has a wait list of about 400 potential operators. To Bramson, that means White Plains may be under-pricing its medallions.
The only way to truly understand the market for operating a cab in New Rochelle may be putting the medallions out to bid and seeing how many cab companies react. There is concern that overpricing the medallions may price out smaller companies and independent taxi operators in New Rochelle. Among debate points as the city drafts a change to its policy will be whether to limit the amount of medallions one company can purchase.
Councilwoman Shari Rackman, a Democrat, said she feared an auction system could create a monopoly among the largest taxi operators in the city.
“Someone from the outside really could just walk in and really change the whole taxi system of the city,” she said.
The City Council, which discussed the proposal publicly for the first time in May, is in the early stages of a debate over the limits and other details of the new system: Should the medallions be auctioned or sold at a fixed price? If they are bid upon, should the city conduct the auction or hire an outside auctioneer?
Chuck Strome, the appointed city manager, said the city had never conducted an auction in its history. He wasn”™t sure New Rochelle had the administrative capacity to handle the bidding. “It is a note of concern for me,” he told the council at its May 27 meeting.
The city”™s largest taxi operators are Express City Taxi and Union Taxi, each with 31 car licenses, and Blue Bird Taxi Servicing Corp., which has 28. There are eight companies doing business in the city in total, along with four independent operators. Calls to companies and operators seeking comment were not immediately returned.
Better than that ride-sharing crap.
I was at the meeting and Mayor Bronson and Concil Member Tarantino agreed to translate the proposal in Spanish and after that we will meet again. They haven’t done their part yet. We are still waiting on that.
Sorry I misspelled Mayor Bramson’s name.