01 | 19
| 2010 | SAN FRANCISCO, CALIFORNIA
Outreach to San Francisco Taxi Industry
• Since March 2009, staff conducted over
of Taxi Town Hall Meetings
in the One South Van
with variable (eight to 35 people) but
attendance by company owners,
holders and a few drivers on and off the
• Since December, 20
hours of site visits were made
10 different company locations to talk to drivers
during the morning and evening shift changes for
two to four hours per session.
Goals Identified during Outreach
• Public service and public safety
• Driver quality of life
• City revenue
• Business stability
• Entry Strategy: Develop career advancement
opportunities for drivers to keep them in the industry,
such as the opportunity to acquire a medallion.
• Exit strategy: Provide retirement for medallion holders
and non-medallion holders who make their careers as
San Francisco taxi drivers.
Taxi Reform Proposal
•Hybrid: Incorporates elements
of both seniority and
•Transitional: Addresses legacy populations on Waiting
List and among elderly medallion holders.
•Experimental: Provides a short-term, one-time
contained program from which we can collect
information and learn from experience.
Why a Short-term, Contained Reform
• Provides opportunity to
transition out of the industry those
that have built up under Prop K:
– Senior career
drivers and those who have spent many years
medallion Waiting List.
• Provides opportunity
to test assumptions and to identify
– If medallions are transferable, should the price
based or fixed? If fixed, how should price
– Can the seniority-based Waiting
List be made to work better
than it does now?
– What is the effect of this change on the taxi
• Medallions rented as long- term-lease vs. gas and gates
• Drivers as employees vs. independent contractors
• It would be a short-term, one-time program that
will not preclude
any options for future policy decisions.
Learning from the Experience
•Appoint industry advisory group to monitor
the process and develop recommendations
for longer term solution.
•Set a deadline of December 31, 2010 for
this group to develop recommendations for
the SFMTA Board of Directors.
The Offer to Qualifying Medallion
In this first phase, the
offer would be limited
and Post-K medallions held by
who are 70 years or older. Those
would be given two choices:
the medallion to the next person on the
who elects to buy one, at a fixed
price that the
SFMTA would establish
– Continue holding the
medallion subject to all
of the existing regulations,
Proposal for Medallion
• Limited to Pre-K and
Post-K medallions held by
who are 70 years or older.
medallions would continue to be subject
the full-time driving requirement and other
• Sales would be subject to a transfer fee
that would be
split between the
City (15 percent) and a Driver Fund
percent). Uses of Driver Fund would be
in consultation with the taxi industry and
Who Could Sell a Medallion?
• The SFMTA would sell some medallions directly
to buyers to realize FY2009-2010 revenue.
• For each direct sale by the SFMTA, the SFMTA
would issue one to the Waiting List so that
medallion sales do not slow down the List.
• All Pre-K and Post-K medallion holders
the age qualification would
be eligible to sell their
• Any medallion holder with a permanent
that prevents their meeting
the Full-Time Driving
would be eligible to sell the
Who Could Acquire a Medallion and How?
•By purchase: Provide right of first refusal to
those on the Waiting List in order of seniority.
Staff is in the process of identifying potential
lenders and available loan terms.
•By waiting: Applicants remain on the Waiting
List just as is done today.
• Ramp medallions should not be part of an
• Eligible Ramp medallions should be switched for
Sedan medallions if owner chooses to sell.
Proposal for the Waiting
Waiting List would be maintained exactly as it is
now, and applicants would continue to receive
medallions through the Prop K system.
• The SFMTA would act aggressively to reduce the
Waiting List through distribution of medallions and by
administratively cleaning up the List.
• If a seniority system is maintained in the long term,
should be based on A-Card seniority,
not a Waiting List.
• The Waiting
List was closed to new applicants in
pending further policy guidance from the
How Can We Get the List Moving?
Mailing: Regulations allow at least two mailings 30 days apart. If there is
no response the applicant’s name comes off the list. If the applicant
appears within six months he/she can get back
on the List if he/she
otherwise meets the qualifications.
Remove unqualified people from the list: People
under 21 who do not
have A-Cards, etc.
Right of first refusal to purchase a medallion: Some
choose to buy a medallion and get off
the Waiting List.
Increase the pace of issuance
of medallions: Extend to people on the
List from those returned to the SFMTA.
Revoke Post-K medallion holders who are not driving.
• Potential Driver Fund Funding Sources:
–Share of medallion transfer fee
(SFtaxi T-shirts, caps, cups, etc.)
fee surcharge on drivers during first years of service to
subsidize those who remain in industry many years
–Contributions from medallion holder income
Uses of Driver Fund Established by Regulation:
–Should be primarily focused on drivers who do not have
–Industry would be
consulted through outreach
Potential Transfer Fee Revenue @ 15%:
• At $250,000 price = $37,500 per medallion
= $3.75 million for each 100 medallions sold
Potential Direct Sale Revenue for 60 Medallions:
• At $250,000 each = $15 million
•Continue public outreach to develop “taxi
•Explore integrated (overlaid) dispatch.
•Address peak time service issues through public
convenience and necessity study and exploration of
peak time service options (e.g., use of spare vehicles
as peak time cabs, single operator permits, etc.)
• Full-time Driving Requirement: The
permit condition attached to a taxi
requires the owner to drive at least 800 hours, or 156 shifts of at
least four hours per calendar year in order to keep the medallion.
• Integrated Dispatch: Instead of replacing existing company dispatch systems
with a single dispatch for all taxi companies, overlaying
the existing system
with a technological solution
such as mobile phone applications that would
customers directly to available drivers who are nearby.
• Peak Time: The times when the demand for taxi service far exceeds the
supply of taxis, especially Friday and Saturday nights.
• Post-K Medallion: A medallion issued after Prop
K was passed by the voters
and which has a “Full-time
Driving” requirement as a permit condition.
Pre-K Medallion: A medallion that was acquired before Proposition K was
passed by the voters and which does not have the Full-time Driving
requirement as a permit condition.
• Proposition K: The ballot initiative passed by the voters in
June 1978 that
declared taxi medallions to be City
property that could not be transferred,
medallion ownership by corporations, limited medallions to one per
person and limited the issuance of taxi medallions to working San Francisco
Ramp Taxi: A wheelchair accessible taxi vehicle that is part of the SFMTA’s
federally mandated Paratransit Program.