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Taxi Regulatory Revision in Portland, Oregon Background and Implementation

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Taxi Regulatory Revision in Portland, Oregon Background and Implementation HE I 8.5 .A3 7 NO. UMTA-MA-06-0049-80-18 no . UOT- r SC- UM TA- 81-37 UMTA/TSC Project Evaluation Series Taxi Regulatory Revision in Portland, Oregon Background and Implementation Interim Report September 1980 Service and Methods Demonstration Program U.S. DEPARTMENT OF TRANSPORTATION Urban Mass Transportation Administration and Research and Special Programs Administration Transportation Systems Center . NOTICE This document is disseminated under the sponsorship of the Department of Transportation in the interest of information exchange. The United States Govern- ment assumes no liability for its contents or use thereof NOTICE The United States Government does not endorse pro- ducts or manufacturers. Trade or manufacturers' names appear herein solely because they are con- sidered essential to the object of this report. t: .37 Technical report standard title *A No. Acc«t»«*’ll” K«poM No. 2. 3. RociOi«n< • Coto^of No. tK UMTA-MA- 0 6-00 49-8 0-18 Sfi- \TJ^ 4. Tilio oftd Swbtitio !>. R.po't Dal* September. TAXI REGULATORY REVISION IN PORTLAND, ORy Background and I960 Implementation P.'^annina Oigamtoiion Caba TSC-DTS-243 7. AwlHer^*) 8. Parlofming Organizatian Rapart Ni Pat M. Gelb, Steven B. Colman, Robert M. Donnelly DOT-TS C-UMTA-81-3 2 9. Par^orming Orgonixation Noma and Addrasp 10. Wark Uni. No. DeLeuw, Gather ^ Company* UMQ27/E0712 P.O. Box 7991 II. Contract or Grant No. 120 Howard Street 1409-19A San Francisco, CA 94120 13. Tjrpa of Raport and Pariod Co.arad 12. Sponaering Agoney Noma ond Addraap Interim Report U. S. Department of Transportation December 19-79-July 1980 Urban Mass Transportation Administration Id. Sponaofi no Aoan t Office of Transportation Management § Demonstrations Washington, D. C. 20590 OF Nofgt 13 . $wpp U. S. Department of Transportation ATIOhl I transport Transportation Systems Center *Under contract to: Kendall Square MfiR > 1932 Cambridge. MA 02142 16. Abatroet i » | The Portland Council has adopted successive waves of taxi regill Effective in March, 1979, the previous ceiling on total permit¥^ST?emoTSand "entry was opened to qual'ified applicants. The new regulations also provided for flat, discount or contractual rates for certain types of trips. Authority for determining operator qualifications and other regulatory functions was vested in a new official the Taxi Supervisor. ’ j In April, 1980, the Council re^imposed some restrictions on entry, including consideration ! of public need for service and the current ratio of licenses to population. It also I transferred authority from the Taxi Supervisor back to the City Council. Subsequent changes adopted ; in June, 1980 stiffen requirements for driver' permits and require operators to submit financial and operating data, j This report summarizes the historical background and implementation of these regulatory changes, compares | the old and new regulations and describes the local industry prior • to and during the regulatory change process. ! 17. K.y Woroi 1£. Oiitrtbwlion Sta fmawt Taxicab Regulation, Deregulation, Paratransit, Price and Service Innovation. DOCUMENT IS AVAILABLE TO THE PUBLIC Case Study, Portland THROUGH THE NATIONAL TECHNICAL SPR I NG F I E LD. INFORMATION SE R V ICE , VIRGINIA 22161 19. Sacurify Ciaasil. (at Tit>« raaorti 2C. Sacurity Ciattii. (ot tm a aag*' 21. Na. et P agaa 22. rnca Unclassified Unc lassif ied 140 ^orm DOT F 1700.7 (•-«*) ' ... vl?rK# .' ' i'' 'i'i^ i(y>f/'f>^- . ..r|^ iV'if. PRKFACF This report describes the bistoriool backf/round and inpl. enentat ion of taxi rep,ulatory revisions adopted by the Portland City Council. Portland first relaxed its entry restrictions in March, 1^79 and provided ereater latitude in rate settinp^ by allov/inp flat fares, discount and contractual rates. Authority for qualifyinp operators and other regulatory functions was vested in a nev; official, the Taxi Supervisor. In April, 1^80 the City re-imposed some restrictions on entry, including consideration of public need for service and the ratio of licenses to population. It also transferred authority from the Taxi Supervisor back to the City Council. Subsequent changes adopted in June, 1980 stiffen requirements for driver permits and require operators to submit financial and operating data. Tliis interim report was prepared by DeLeuw, Gather & Company for the Transportation Systems Center (TSC) of the U.S. Department of Transportation, under Technical Task Directive DOT-TSC-1 409-1 9A. The report was co-authored by Pat M. Gelb, Steven B. Colrrian, Robert Donnelly and Gordon Shunk, formerly of the DeLeuw, Gather staff. Acknowledgement is due to a number of people for their cooperation and assistance in the preparation of this interim report. Carla Heaton, Technical Monitor, Transportation Systems Center, and Larry Bruno, Project Manager, IIMTA, have provided valuable guidance and support. Pam Holley, Taxi Supervisor, and William Dirker, Planning Bureau, City of Portland, provided much needed information, as have Steve Tookey and Tom Malloy of the Teamsters Union. Thanks are also due for their cooperation to operators from each of Portland's taxi companies: Broadway Cab, New Rose City Cab, Portland Cab and Radio Cab. Professor Gorman Gilbert, University of North Carolina, and Janes '-'omack, fla ssachusetts Institute of Technology, reviewed the draft report and provided valuable commentary. FACTORS CONVERSION T|T TIT TIT tit TIT T|T tit riT TIT METRIC o o E J J 5 E 6 E E E 2 s I . « I Mtsc. ^ § i; S $ e NBS § I I 5 see II Is 9 5 e e — i S 3 § o o o s ill = •j o I i I y ? 5T 1 i i i S = S 3 3 tables, 10:286. u detailed <aK •> C13. 5 more i£) B U» Ui ^ CO lO No. € <S t ujj C w lA S 40 to « g T « 4 tf> 00 0 r» s 00 — lA U) 0 0 0 rn 0 ® and 9 ~ » - <i> 0 0 (S 0 s 0 0 0 0 s 2 «>* 3 CO zD s K Catalog </» VOL < CO < flC conversions < U4 SD S A. s $2.25, Ui M exact s - -s s Ibl 2 ® H“ 0 1S 2 S s ® S S r Pnce ffi ^ ^ E ac 9 5. 3 M > • other • MM ego is® «»2Su« Is § (s « S “*5 m£C*-- 1 « S 5 >» ^ for -s 5 5* £ 1 1 1 1 i 22 J 3 aaS5 5 Measures. (exacilyl. and Weights 2.54 s of in Units *1 S I = U a S"r'l Iv CONTENTS Page EXECUTIVE SUMMARY vii 1.0 INTRODUCTION 1 1 . 1 Overview 1 ^ 1.2 SMD Interest in Taxi Regulatory Revisions . 1.3 Overview of the Regulatory Revisions Case Studies ^ 1.4 The Portland Case Study 6 2.0 SITE- DESCRIPTION 9 2.1 Demographics and Geography 9 2.2 Public Transportation Setting . 12 2.3 Political Jurisdiction and Responsibilities. 14 3.0 TAXI INDUSTRY CHARACTERISTICS BEFORE REGULATORY . REVISION 17 3.1 Regulatory /Administrative Overview 3.2 Pre-Revisions Industry Structure 22 3.3 Fare Structure 27 3.4 Taxi Operating Practices 30 3.5 Taxi Level of Service 33 3.6 Taxi Demand 33 3.7 Taxi Operator Productivity and Economics . 34 3.8 Attitudes Toward the Industry 40 4.0 EVOLUTION AND IMPLEMENTATION OF REGULATORY CHANGES . 4l 4.1 Background and Chronology of Regulatory Change Process 41 4.2 Comparison of Old and Revised Regulatory 45 Code 4.3 Implementation of Changes 52 5.0 CONCLUSIONS 57 6.0 BIBLIOGRAPHY 61 APPENDIX A-1 v TABLES Page 1 . Portland Regulation of Taxis Prior to 1979 Revisions 19 2. Structure of Portland Taxicab Ownership and Operation, 1977-78 25 3. Taxicab Purchase Costs 35 4. Estimated Income Statement— "Average" Half Cab, Portland, 1977 38 5. Parallel Provisions of Old and New (Revised) Ordinances Covering Taxi Regulation in Portland (Oregon) 46 FIGURES Page 1. Portland Metropolitan Area, showing Approximate Boundaries of Taxi Jurisdiction 10 2. Changes in Taxi Rate Structure in Portland, 1957-1979, • , » 28 vl EXECUTIVE SUMMARY Portland adopted three successive waves of regulatory revisions during 1979 and 1980. Effective March 21, 1979, the population-based ceiling on taxi permits was removed and entry opened to new operators on the basis of specified service standards and a finding that the new supply was in the public interest. Unaffiliated independents were excluded since the new law required that applicants operate "sufficient cabs to provide citywide service," and this was interpreted as no fewer than ten cabs. Authority for taxi regulatory functions was vested in a new official, the Taxi Supervisor, whose responsibilities consolidated functions formerly divided among the Council, the Chief of Police's Office, and Business License Division, and the Bureau of Traffic. Maximum rates of fare for exclusive ride service continued to be regulated by the City Council as before, and operators had to file their chosen rate up to this maximum with the Taxi Supervisor. The new regulations also included flat rates for shared-ride trips between the airport and downtown and wholly within downtown, and allowed operators to develop discount or other contractual rates for special groups or services, such as shared riding, taxi pools, and fixed route service in addition to conventional exclusive ride service. Both flat rates were originally instituted as part of a compromise 34 percent rate Increase approved in 1977; they were simply carried over into the new ordinance. In October 1979, the Portland Council increased the maximum rate for exclusive ride service from $1.00 drop and first 1/9 mile (or $0.90 fixed) plus $0.90 per mile, $9.00 per hour waiting and $0.25 per extra passenger to $1.00 drop and first 1/12 mile ($0.90 fixed), plus $1.20 per mile, $12.00 waiting and $0.50 per extra passenger.
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