Stories indexed with the term ‘taxicab’

Taxicab Board Considers Rates, Drivers

Ann Arbor taxicab board meeting (May 22, 2014): Two topics addressed by the board at its April 23, 2014 meeting received additional conversation this month. First, the board discussed the possibility of deregulating taxicab fares, or setting them at a much higher maximum. The board also continued discussing whether to recommend that the city council enact an ordinance to regulate all drivers for hire – taxicab drivers, limo drivers, as well as those who drive for Uber and Lyft.

Screen of iPhone showing Uber vehicle responding to request for a pickup on May 24. The resulting trip – from Jackson & Maple to Liberty & Main was calculated by Uber as $8. With the current introductory promotion it cost nothing.

Screen of iPhone showing Uber vehicle responding to request for a pickup on May 24. The resulting trip – from Jackson & Maple to Liberty & Main – was calculated by Uber as costing $8.

Both topics will also be considered at the board’s next meeting on June 26.

Consideration of a general driver-for-hire ordinance comes in reaction to the recent entry of Uber and Lyft into the Ann Arbor market. However, taxicab board chair Michael Benson stressed during the meeting that the point of the possible new ordinance was not to “target” Uber and Lyft, but rather to ensure that all drivers for hire are registered with the city. Those two companies, which coordinate drivers and passengers through software applications, have been sent cease-and-desist letters by the Ann Arbor city attorney’s office – for aiding and abetting the violation of a state statute regulating limousines. [.pdf of cease-and-desist sent to Lyft] [.pdf of cease-and-desist sent to Uber]

But the board heard from a University of Michigan student during public commentary time, who reported that the cease-and-desist letters, dated May 14, 2014, were having no impact – as he’d used one of the services three times the previous evening. In the course of his remarks, the UM business undergrad outlined several advantages of Uber and Lyft, including price, convenience and efficiency.

The board had voted at its April 23 meeting to ask the city attorney’s office to draft general driver-for-hire ordinance language for consideration at its May 22 meeting, but that draft was not yet available.

So at its next meeting on June 26, the board is expecting two possible proposals to be ready for consideration: (1) a new rate structure proposal; and (2) a draft ordinance on regulating all drivers for hire. The taxicab board could forward a recommendation to the city council to enact either proposal. A decision on enactment rests with the city council.

Discussion of the driver-for-hire issue at the May 22 meeting included themes familiar from the board’s April 23 conversation, mostly centering on the desire of board members to ensure public safety for patrons of businesses that operate on the public right-of-way. They want to ensure that drivers who are being compensated for their work are registered with the city, that their vehicles are inspected, and that they are adequately insured.

The rate changes to be considered by the board on June 26 come in the context of board interest in seeing the taxicab industry able to compete with limousine services, as well as with services with business models like those of Uber and Lyft. Currently the maximum rate in Ann Arbor is $3 to get in, $2.50 per mile, and 40 cents per minute waiting time.

Those maximum rates were last adjusted upwards three years ago, on May 16, 2011, in response to gas prices that had nudged past $4 per gallon. At that time, the taxicab board indicated it did not anticipate considering another rate change until the gas prices were over $5 for at least two consecutive months.

So the board’s thinking is not being driven by gas prices, which are currently between $3.75 and $4 in the Ann Arbor area. Instead, a possible increase in allowable fares is based on concern that the taxicab industry in Ann Arbor might not be able to survive unless taxis are allowed to charge more. Taxicab board member Robert Goeddel supported setting a significantly higher maximum, saying that if the taxicab industry does not survive, he does not want it to be because the basic costs of doing business can’t be covered.

City CFO Tom Crawford, who sits on the taxicab board as an ex officio member, noted that it’s a challenge to consider changes in rate structures at the same time as new entrants have come into the market – who have a lower cost structure than the taxicab industry. He expressed some concern that the result could be a “race to the bottom” for pricing that could work to destroy the taxicab industry.

In other business, the board elected its officers for the next year – an annual task. Benson and Stephen Kunselman were re-elected as chair and vice chair of the board.   [Full Story]

Ann Arbor Taxi Board Reacts to Uber

Ann Arbor taxicab board meeting (April 23, 2014): In its one action taken at the meeting, the board approved making a request of the city attorney’s office to come up with a draft of an ordinance amendment – that would require all drivers for hire to be registered in the city.

April 23, 2014 meeting of the Ann Arbor taxicab board.

April 23, 2014 meeting of the Ann Arbor taxicab board at city hall. (Photo by the writer.)

The action comes in response to Uber‘s entry into the Ann Arbor market. Uber is a service, based on a mobile app, that coordinates prospective passengers with drivers who are willing to make the trip. Currently the city’s taxicab ordinance covers only taxicab drivers – not limousine drivers or any other drivers for hire. The board wants to see a draft ordinance that would include all drivers for hire – so that Uber’s drivers would need to be registered in the city of Ann Arbor.

Stephen Kunselman, who serves as the city council’s representative to the taxicab board, put it this way at the meeting: “The number one issue of regulating drivers in the industry is for public safety, alright? I want to know who these drivers are who are driving around picking up people in our town, okay? Number one issue.”

A change to the city’s ordinance could come only after approval by the city council.

The action requesting the city attorney’s office to begin work on an ordinance amendment was not actually on the board’s meeting agenda. The one item for discussion had been to consider possible deregulation of taxicab fares in the city – a topic the board has been considering for about a year. As board chair Michael Benson put it, “It’s time to address it one way or the other.” Currently the maximum rate is $3 to get in, $2.50 per mile, and $0.40 a minute waiting time.

Those rates were last adjusted upwards on May 16, 2011, in response to gas prices that had nudged past $4 per gallon. With one exception, representatives of taxicab companies at the April 23 meeting were not looking for the kind of $0.25 adjustments that have been made in the past. Instead, they’re looking for a high maximum – along the lines of $5 to get in and $5 per mile – so that a competitive market could develop under that cap.

Benson and Tom Crawford – the city’s CFO and an ex officio member of the board – steered the conversation toward identifying ways to measure success of any change in the city’s approach to regulating fares: “What is it that you want to achieve? Let’s get some clarity on that so that we can identify whether we have succeeded or not. That’s the real point,” said Crawford.

What came out of that board discussion was that the measurement of success should include the number of taxicabs being operated in the city. At the meeting, Ann Arbor police officer Jamie Adkins told board members that for the three years from 2008 to 2010 there were 177, 193, and 179 taxicabs operating in the city, respectively. But when Yellow Car converted all but one vehicle to limousine, that number dropped to 111 in 2011. In 2012 there were 132 taxicabs, she said, and the current figure is 124.

The board’s past effort to regulate the entire livery industry – including limousines, which are supposed to take only pre-arranged, not hailed rides – has included recommendations to revise the city’s ordinance so that limousine companies cannot hold themselves out as taxicab companies. And the city council enacted those changes in 2011. But according to officer Adkins, AAPD has learned that those aspects of the ordinance can’t be the primary reason for a police traffic stop. [.pdf of Ann Arbor taxicab ordinance] [Full Story]

City Council Puts Off Townhouse Zoning

Ann Arbor city council meeting (Feb. 4, 2013): Two significant land use items were included in the council’s agenda, but councilmembers moved ahead on just one of them. A request to zone a recently annexed piece of property as R3 (townhouse district) prompted long deliberations by the council, and ultimately a referral of the item back to the planning commission for further review.

Current zoning of properties surrounding the parcel requested to be zoned at R3 (townhouse dwelling district).

Current zoning of properties surrounding the parcel at 2081 E. Ellsworth Road – denoted with a “?” Owners are requesting the parcel to be zoned as R3 (townhouse dwelling district). (Map labeled by The Chronicle.)

Dependent on the R3 zoning is Summit Townhomes – a proposed project for the 2081 E. Ellsworth Road site, located in the southern part of the city just east of Stone School Road. The townhouse project’s site plan is expected to come before the council for approval later this month. The planning commission has already recommended that the Summit Townhomes project be approved, and previously recommended the R3 zoning. The council itself had already given the zoning its initial approval at a previous meeting.

But during the public hearing about the zoning on Feb. 4, the council heard from several people who spoke against the zoning and the project, reprising many of the same objections that had been raised more than seven months ago at the June 19, 2012 meeting of the planning commission. Concerns included overcrowding and congestion in the area, and a lack of adequate city services. Also weighing in with general support for zoning that fits with the desires of residents was Washtenaw County commissioner Andy LaBarre, who represents the county district where the site is located.

Another item related to future land use was council action to authorize the distribution of the draft South State Street corridor plan to neighboring jurisdictions and other stakeholders, such as the University of Michigan, the Ann Arbor Public Schools, and the Ann Arbor Transportation Authority. After a mandated comment period, the city planning commission will have the opportunity to make revisions to the plan, before the commission and the city council make a decision to adopt it.

A major infrastructure study, with a roughly $1 million budget, was also authorized by the council – to give the city a clearer understanding of how flows behave in the sanitary sewer system, especially during rainy periods. The study is prompted by a desire to measure the impact of a footing drain disconnection program that the city has implemented for over a decade. In the last year, the program has generated strong protest from the Glen Leven neighborhood. The footing drain disconnection program was created in part to remedy the backup of raw sewage in basements during heavy rains.

The city council also authorized revisions to two existing technology agreements. One was an agreement between the city of Ann Arbor, Washtenaw County and the Ann Arbor Transportation Authority to act as a purchasing consortium. The modification to the agreement will allow other participants to be added to the consortium in a streamlined way. The second agreement was the extension of a contract with the city of Chelsea to provide various IT services.

The council put off a decision on issuing bonds to support energy improvements for its property assessed clean energy (PACE) program. The item had been added late to the agenda, and several councilmembers had questions they wanted answered before voting on it.

Although the agenda itself was light, several significant communications were included, either as written attachments or conveyed verbally. The written reports attached to the agenda included a revised auditor’s letter and a report on how the street resurfacing millage money was spent during the 2012 season.

Conveyed verbally was a report from the council’s budget committee chair, Marcia Higgins (Ward 4), who alerted councilmembers that on Feb. 11 and Feb. 25 the council would hold budget work sessions starting at 6 p.m., with each meeting consisting of two 2-hour sessions with a break.

Stephen Kunselman (Ward 3), chair of the city’s taxicab board, called for enforcement of the city ordinance that is meant to prevent the operation of “rogue limousines” – in the context of a reported sexual assault of a University of Michigan student by the driver of either a taxicab or limousine.

Kunselman also called for a number of revisions to the city ordinance that establishes the Ann Arbor Downtown Development Authority, including stricter regulations on membership of the board, but more significantly a limitation on the way the DDA’s tax increment finance (TIF) capture is calculated. [Full Story]

Council Takes Step to Alter Pedestrian Law

Ann Arbor city council meeting (Nov. 10, 2011): A further revision to the city’s pedestrian safety ordinance took up most of the council’s time at Thursday’s meeting.

Rapundalo signing student attendance sheets

Stephen Rapundalo (Ward 2) was first to arrive at the council’s meeting and was rewarded by a dozen or so requests from high school students who needed a signature to attest to their attendance for a class assignment. It was Rapundalo’s last meeting, having lost the Ward 2 election on Tuesday, Nov. 8, to Jane Lumm. (Photos by the writer.)

The council had made several revisions to the law in 2010, including a requirement that motorists accommodate not only pedestrians who are “within” a crosswalk, but also those who are “approaching” a crosswalk. Thursday’s initial revision amended out the “approaching” language in favor of the following wording: “… the driver of a vehicle shall stop before entering a crosswalk and yield the right-of-way to a pedestrian stopped at the curb or ramp leading to a crosswalk and to every pedestrian within a crosswalk.”

The second and final vote on the pedestrian ordinance change is expected to come after a council working session in December, and after a public hearing at the council meeting when the final vote is taken. Based on deliberations on the change at Thursday’s meeting, the outcome of that vote is not a foregone conclusion, and further revisions might be possible.

The council also took action at the Nov. 10 meeting that will allow two downtown residential projects to start construction. The council approved the site plan for The Varsity Ann Arbor, a “planned project” consisting of a 13-story apartment building with 181 units at 425 E. Washington, between 411 Lofts and the First Baptist Church.

And the final deal was approved with Village Green to purchase the city-owned parcel at First and Washington. On that site Village Green will build a 244-space parking deck as the first two stories of a 9-story building with 156 dwelling units – City Apartments.

The council gave final approval to a change in its taxicab ordinance, spelling out conditions under which licenses can be revoked or suspended.

The council also gave final approval to two ordinances that make retiree health care and pension benefits for two of the city’s larger unions parallel to benefits for non-union employees. The approvals gave Stephen Rapundalo (Ward 2) an opportunity to comment on the labor issues that had been a centerpiece of his re-election campaign, which concluded unsuccessfully on Tuesday.

It was due to the election held on Tuesday that the council’s meeting was shifted from its regular Monday meeting slot to Thursday. The shift is stipulated in the city charter. All council incumbents won their races except for Rapundalo, a Democrat defeated by Jane Lumm, who was running as an independent. Rapundalo began his final meeting by signing multiple attendance sheets for high school students who were attending the meeting on a class assignment, and ended it by hearing praise from his colleagues around the table. [Full Story]

Ann Arbor Taxicab Law Gets Initial Tweak

At its Oct. 17, 2011 meeting, the Ann Arbor city council gave initial approval to changes in its taxicab ordinance. The changes make explicit how long a taxicab company license is valid (10 years) and spells out some additional conditions on revocation or suspension of the company license.

The revisions also add reasons that can be used for suspending an individual taxicab driver’s license, which include a city administrator’s view that a driver “has acted in an unprofessional, harassing or threatening manner to passengers, or others.”

Like all ordinance revisions, the taxicab licensing revision will need a second and final approval from the council in order to take effect.

This brief was filed from the city council’s chambers on the second floor of city hall, located at 301 E. Huron. A more detailed report will follow: [link] [Full Story]

High Gas Prices: Ann Arbor Raises Cab Fares

At its May 16, 2011 meeting, the Ann Arbor city council held a public hearing and subsequently approved an increase in the allowable fare for cabs operating in the city. The rate increase affects only the mileage component of fares, which were last approved on May 19, 2008.

The mileage increase from $2.25/mile to $2.50/mile had been requested by several taxicab companies in light of rising fuel prices, which are currently just over $4/gallon. The city’s taxicab board has indicated that with this increase, it does not anticipate considering another rate change until the gas prices are over $5/gallon for at least two consecutive months. The board had voted to recommend the change at its April 28, 2011 meeting.

Members of the taxicab board include the city’s CFO Tom Crawford, and William Clock, an officer with the Ann Arbor police department, as non-voting members. [The city's ordinance actually requires that the city's CFO and the chief of police serve as non-voting members.] The five voting members are Stephen Kunselman (representative to the board from the city council) as well as Barbara Krick, C. Robert Snyder, Tom Oldakowski and Timothy Hull.

Hull has filed nominating petitions to contest the city council Democratic primary in Ward 2 against incumbent Stephen Rapundalo. Kunselman will be running for re-election in the Ward 3 Democratic primary.

Crawford, who is also interim city administrator, had announced the public hearing on the taxicab fare increase at the city council’s May 2, 2011 meeting.

This brief was filed from the city council’s chambers on the second floor of city hall located at 301 E. Huron. A more detailed report of the meeting will follow: [link] [Full Story]