The new taxi plan: Everyone hates it

Pub date September 21, 2009
WriterTim Redmond
SectionPolitics Blog

By Tim Redmond

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Municipal Transportation Agency officials have drafted a plan to overhaul the San Francisco taxi industry — and just about everyone hates it.

The proposal, outlined in a Sept. 8 memo from Christiane Hayashi, director of taxis and accessible services, would ultimately shift control of cab permits away from working drivers and give them to cab companies.

The process would be slow — the drivers who currently hold medallions would be allowed to keep them until they retire or die, and the 1,700 people who have been on the medallion waiting list for more than 10 years would retain their rights.

But in the future, as the valuable medallions get returned to the city, they would be auctioned off to cab companies. The companies wouldn’t technically own the permits, but would bid for long-term leases.

The idea runs directly counter to the landmark 1978 legislation known as Proposition K, which for the first time gave drivers the right to control their own permits. Under Prop. K, written by then-Supervisor Quentin Kopp, medallions are issued for a token annual fee to active, working drivers. No corporations are allowed to hold medallions. The only way to get a medallion is to put your name on the waiting list; it often takes as long as 15 years.

Of course, drivers who get the medallions see an immediate and substantial increase in their incomes. The medallions are valid 24 hours a day, 365 days a year, so medallion holders can driver a few shifts a week and lease them out to other drivers for the rest of the time. The lease fees can add up to about $3,000 a month.

And that income continues as long as the medallion holder is alive — and driving a cab. If he or she can’t drive a minimum number of hours, the medallion is returned to the city and goes to the next person on the waiting list.