At first glance, the taxi business model – pick someone up, charge them a metered amount, and drop ’em off – doesn’t sound that complicated. And on that level, it isn’t.
But just beneath the surface, lots of issues emerge – the nature of franchise agreements, the portability of permits (or lack thereof), and more. They surfaced yesterday before City Council.
City staff, per the direction of a cab-related subcommittee of the Urban Transportation Commission, had recommended the franchises for the city’s two largest companies, Yellow Cab and Austin Cab, be extended by two years, a departure from the five year norm. The reasoning was so all cab franchises would be up for renewal in 2012 – Yellow, Austin, and relatively new Lone Star cab company – so substantial change to Austin’s taxi system could be considered.
The need for change is outlined in an explosive report prepared by Texas Rio Grande Legal Aid, “Driving Austin, Driving Injustice,” which alleges cabbies work upwards of 40 hours a week, averaging less than minimum wage. Driver friendly changes could include anything from making individual taxi permits “portable” – so drivers could choose between the cab company that best suits them, or even possibly initiate a new one – to several others listed in the report: the “permitting allocation formula, rate increase process, driver job security, living wage, vehicle and driver insurance coverage, health and workers’ compensation insurance coverage, … fees, and permitting and regulation of other types of vehicles for hire.”
Mayor Pro Tem Mike Martinez argued that many of those changes could be accomplished through normal council action, instead of only during the franchise renewal periods. So, with that, he made a motion to extend the franchises for five years instead of two. Procuring financing and loans would be more difficult for companies renewed for only two years, he said, a problem which would be directly passed down to drivers. He also said he would bring an item forward that would extend Lone Star’s contract, so all companies would be up for renewal together in 2015.
Discussion ensued on the dais as to whether the substantial change that might be necessary at the companies would be possible outside of the franchise renewal period. Certainly, other cab issues are still under discussion; the UTC taxi group has until September to weigh in on rate issues – controversial topics like flat fees out of the airport – and more. But Bill Spelman was unmoved by the argument that real change could be made while the current franchise structures were in place. “I would like an opportunity after two-and-a-half years to make some substantial changes,” he said, referring to the shorter extension. With this, “we won’t be able to for five years,” noting later he was “extremely uncomfortable in this situation.” When votes came on the two extensions, he was the lone dissenting vote.
What the hell else is happening?
Joanna Barbera plays the city’s Live From the Plaza series today at City Hall, 301 w. Second, noon.
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This article appears in April 23 • 2010.