Taxi of Tomorrow with lease caps

Proposed Rules: Closed to Comments

Agency:
Comment By: 
Thursday, September 6, 2012
Download Copy of Proposed Rule (.pdf): 

 

 

Statement of Basis and Purpose of Proposed Rule

 

Over 1.2 million people per day ride in vehicles regulated by the Taxi and Limousine Commission. Since the demise of the Checker company in the early 1980’s, none of the vehicles used by the New York City medallion taxicab industry have been designed especially for taxicab service, and they are often repurposed police cruisers, minivans, or passenger sedans. Since these cars have not been designed or engineered specifically for taxi use, they have not included features and amenities that would be beneficial to owners, drivers, and passengers. Nor have they incorporated the latest technologies, accessibility features for people with disabilities, or safety advances.

 

In 2007, the City issued a Request for Information (RFI) and convened a Taxi of Tomorrow Advisory Committee (including taxi drivers, passengers, medallion owners, advocates for people with disabilities, advocates for the environment, various taxi driver and owner organizations, and designers) to help insure that the new taxicab meets the needs of diverse stakeholders.

 

In 2009, the City issued a Request for Proposals (RFP) seeking an exclusive provider of taxicabs to the medallion taxi industry. It sought a vehicle that offered:

 

  • The highest safety standards
  • Superior passenger experience
  • Superior driver comfort and amenities
  • Appropriate purchase price and on-going maintenance and repair costs
  • Minimal environmental impact
  • Minimal physical footprint with more useable interior room
  • Accessibility for all users
  • Iconic design that will identify the taxi with New York City

 

After receipt of 7 proposals from a variety of manufacturers, and a year-long detailed evaluation process, the City selected Nissan North America (Nissan) to be the exclusive taxicab provider for 10 years (with an additional 5-year commitment to provide parts and service). The Taxi of Tomorrow will also be available in a wheelchair accessible version. The Taxi of Tomorrow taxicabs will be known as Official Taxicab Vehicle (OTV) or the Accessible Official Taxicab Vehicle (AOTV).

 

The proposed rule requires that if a medallion owner acquires a new vehicle on or after the activation date for the Taxi of Tomorrow, the owner must hack up the medallion with the Taxi of Tomorrow vehicle, to be known as the Official Taxicab Vehicle or the Accessible Official Taxicab Vehicle . The TLC anticipates the activation date for the Taxi of Tomorrow will be October 31, 2013.

 

Exemptions to this requirement include:

  • Owners of Medallions restricted to use with Alternative Fuel Vehicles may purchase any alternative fuel taxicab which meets the specifications described in TLC Rule 67-05.
  • Owners of the 231 Medallions issued prior to January 1, 2012 that are restricted to use with Wheelchair Accessible Vehicles, may purchase any accessible Taxicab which meets the accessible vehicle specifications set forth in proposed Rule 67-05.2, including the Accessible Official Taxicab Vehicle.
  • Owners of Accessible Medallions issued by TLC on or after January 1, 2012 may purchase any accessible Taxicab which meets the accessible vehicle specifications set forth in Rule 67-05.2, including the Accessible Official Taxicab Vehicle.
  • With TLC’s authorization, owners of up to 496 Unrestricted Medallions issued prior to January 1, 2012 who choose to use an accessible vehicle may purchase any accessible Taxicab which meets the accessible vehicle specifications set forth in proposed Rule 67-05.2, including the Accessible Official Taxicab Vehicle.

 

Vehicle Requirements/Options by Medallion Type

 

 

Nissan

Nissan/Braun

TLC-

TLC-Approved

 

 

NV200

Approved

 

 

NV200

Wheelchair-

 

 

Accessible

Hybrid or

 

 

(OTV)

Accessible

 

 

(AOTV)

CNG

 

 

 

 

 

Unrestricted Medallion

YES

YES

NO

YES, up to 496

 

issued prior to January 1, 2012

medallions

 

 

 

 

 

Restricted Alternate-Fuel Medallion

NO

NO

YES

NO

 

issued prior to January 1, 2012

 

 

 

 

 

 

Restricted Wheelchair-Accessible

NO

YES

NO

YES

 

Medallion issued prior to January 1,2012

 

 

 

 

 

 

2000 Restricted Medallions authorized

NO

YES

NO

YES

 

by Street Hail Livery Law.

 

 

 

 

 

 

 

 

 

The proposed rule requires the TLC to provide at least 120 days notice to medallion owners prior to the date after which unrestricted medallions must be hacked-up with the Official Taxicab Vehicle. The rule also makes certain, largely technical changes, to current taxicab rules to account for the fact that the Official Taxicab Vehicle will be manufactured and delivered under specifications set by contract with the manufacturer of the vehicle.

 

The Commission’s authority for this rules change is found in section 2303 of the New York City Charter and section 19-503 of the New York City Administrative Code.

 

In addition, these rules amend TLC rules governing the leasing of taxicabs or taxicab medallions to reflect the implementation of the Taxi of Tomorrow and will take effect once the Taxi of Tomorrow (ToT) is available for hack-up (the OTV Activation Date). The Commission’s authority to adopt these rules is found in section 2303 of the New York City Charter and section 19-503 of the New York City Administrative Code.

 

 

Amendments to Shift Leases

 

Some unrestricted medallion holders have hacked up hybrid vehicles and charged a $3 higher hybrid lease cap to drivers who lease their medallions. When the ToT becomes available these medallion owners will no longer be permitted to hack up with hybrid vehicles. Therefore, to help maintain these medallion owners’ business model and maintain the balance of costs and revenues for both owners and drivers, the TLC will increase by $3 the optional gas surcharge available to unrestricted medallion holders who list on a daily or weekly shift basis .

 

The proposed amendments will:

 

  • On the date when the ToT first becomes available for use as a taxi (OTV Activation Date), increase the optional fuel surcharge by $3 per shift for all vehicles that are not hybrid vehicles.1
  • Permit all medallion owners (except for those already charging the hybrid lease rate)-- including those operating ToT vehicles and those still operating other vehicles--to apply the increased optional fuel surcharge on the OTV Activation Date.

 

 

Amendments to DOV Leases

 

The TLC proposes amending the rules governing leases of medallions to drivers who own or lease their vehicles (DOV leases) to account for the fact that many medallion owners who currently lease their medallions to DOV operators are able to benefit from the driver's operating a hybrid vehicle by charging the driver the hybrid lease cap. The proposed change will enable these medallion owners to earn the same revenues with ToT that they earned without ToT.

 

  • As ToT vehicles are placed into service:

 

o   Owners leasing medallions and medallion and vehicle packages to operators of ToT vehicles will be permitted to charge hybrid lease rates.

o   Medallion owners whose vehicles are required to be hybrids (i.e., restricted alternative fuel medallions) will continue to be able to lease these vehicles at hybrid lease rates.

 

 

1     This $3 per shift fuel surcharge increase will not apply to medallion owners leasing hybrid vehicles; however, these medallion owners will continue to be able to charge the higher hybrid lease rate.

 

 

Public Hearing
Subject: 

The Taxi and Limousine Commission is considering changing its rules. The change will require owners of unrestricted taxicab medallions to purchase the Taxi of Tomorrow vehicle selected by the TLC.

This notice replaces and supersedes a previous notice that was published in the City Record on July 5, 2012 providing for a hearing on the rules regarding the Taxi of Tomorrow to be held on August 9, 2012. That hearing has been cancelled.

Public Hearing Date: 
Friday, September 6, 2013 - 10:00am
Contact: 

Taxi and Limousine Commission, Office of Legal Affairs,
33 Beaver Street – 22nd Floor,
New York, New York 10014

Location: 
Hearing Room
33 Beaver Street, 19th Floor
New York, NY