Number
090695
Version
ORIGINAL
Reference
Sponsor
ALD. WITKOWSKI
Title
Resolution directing the Intergovernmental Relations Division - Department of Administration to pursue development and passage of state legislation authorizing municipal auction of taxicab permits.
Analysis
Section 349.24, Wis. Stats., authorizes municipalities to license and regulate taxicabs and taxicab drivers. Section 66.0628, Wis. Stats., limits the fees that a municipality may charge for a license to those reasonably related to the costs of licensing.
The License Division-Office of the City Clerk reports that the city licenses 321 taxicabs through issuance of public passenger vehicle permits. Section 100-5-3 of the code prohibited the issuance of new taxicab permits effective January 1, 1992, except when the permittee changes its form of business or when application is made to transfer a permit to another party. In these cases, the previously issued permit must be relinquished prior to issuance of a new permit.
This limitation upon entry into the Milwaukee taxicab market has created a high private value and demand resulting in private agreements for transfer of permits which reportedly are worth in excess of $100,000 for transfer of a single permit. This private market is not regulated.
Cities such as Boston, New York and Chicago have created and entered into taxicab permit markets through the issuance of taxicab medallions. A cap is set on the number of medallions issued. Additional medallions are offered from time to time at City auction. Such auctions are intended to produce revenue equivalent to the market value of a medallion, which is generally much greater than any costs to the city related to licensing.
This resolution directs the Intergovernmental Relations Division - Department of Administration to seek the development introduction and passage of state legislation providing an exception to s. 66.0628, Wis. Stats., and specifically authorizing the city to auction taxicab permits for payments exceeding the costs related to licensing.
The resolution clarifies that state authorization to auction medallions may either be in addition to or as an alternative to licensing. The resolution further clarifies that the city remains responsible to assure proper inspection and operation of permitted taxicabs.
Body
Whereas, Section 349.24, Wis. Stats., authorizes municipalities to license and regulate taxicabs and taxicab drivers; and
Whereas, Section 66.0628, Wis. Stats., limits the fees that a municipality may charge for a license to those reasonably related to the costs of licensing; and
Whereas, The License Division-Office of the City Clerk reports that the city licenses 321 taxicabs through issuance of public passenger vehicle permits; and
Whereas, Section 100-5-3 of the code prohibited the issuance of new taxicab permits effective January 1, 1992, except when the permittee changes its form of business or when application is made to transfer a permit to another party. In these cases, the previously issued permit must be relinquished prior to issuance of a new permit; and
Whereas, This limitation upon entry into the Milwaukee taxicab market has created a high private value and demand for taxicab permits resulting in private agreements for transfer of permits which reportedly are worth in excess of $100,000 for transfer of a single permit in an unregulated market; and
Whereas, Cities such as Boston, New York and Chicago have created and entered into taxicab permit markets through the issuance of taxicab medallions setting a cap on the number of medallions issued and offering additional medallions from time to time at City auction; and
Whereas, Auctions of taxicab medallions by these cities are intended to produce revenue equivalent to the market value of a medallion, which is generally much greater than any costs to the city related to licensing; and
Whereas, The State of Wisconsin does not presently authorize municipalities to auction licenses for payment of amounts in excess of the cost of licensing; now, therefore be it
Resolved, By the Common Council of the City of Milwaukee, That the Intergovernmental Relations Division - Department of Administration is directed to seek the development introduction and passage of state legislation providing an exception to s. 66.0628, Wis. Stats., and specifically authorizing the city to auction taxicab permits for payments exceeding the costs related to licensing; and, be it
Further Resolved, That the authority granted municipalities to auction taxicab permits may either be in addition to licensing of taxicabs or an alternative to licensing; and, be it
Further Resolved, That the legislation sought by this resolution is not intended to reduce or otherwise modify the responsibility of a municipality to protect the health and safety of the public through inspection and the regulation of taxicab operation.
Requestor
Drafter
LRB09401-1
RLW
9/21/2009