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1 pcririv"!") irrc Fox Rothschild LLP 7DI3 i r ' -2 Rl 2 21 ATTORNEYS AT LAW!!S JliIllB] li X Ks I I * HI UUi NOV lm,'t 2000 Market Street, 20th Floor Philadelphia, PA Tel Fax THE r ~,jfw(>[ rqm BRETT BERMAN Direct Dial: Address: BBerman@Foxrothschild.com November 22, 2013 VIA HAND DELIVERY Philadelphia Parking Authority Attn: Dennis Weldon, Esquire General Counsel The Philadelphia Parking Authority 701 Market Street, Suite 5400 Philadelphia, PA Re: Proposed Regulation Philadelphia Taxicab and Limousine Regulation Dear Mr. Weldon: Attached to this letter are the comments of Black Point Taxi, LLC, Gabon Taxi, LLC, Lindros Taxi, LLC, Seedjam Taxi, LLC, Congo Taxi, LLC, Botswana Taxi, LLC, Australia Taxi, LLC, Kolara Trans, LLC, Gabon Taxi, LLC, Iverson Taxi, LLC, Morocco Taxi, LLC, Sudan Taxi, LLC, Kick Stand Trans, LLC, Two Phones Taxi, LLC, Toba Taxi, LLC, Senegal Taxi, LLC, Seedjam, Inc., Brasil Taxi, LLC, Narragansett Taxi, LLC, H-OP-KJVAI Cab Co., Ryder Cub Taxi, LLC, Eurostar Taxi, LLC, Togo Taxi, LLC, Barnes Taxi, LLC, Mahaffey Taxi LLC, Melo Taxi, LLC, Egypt Taxi, LLC, Housewives Taxi, LLC, Ethiopia Taxi, LLC, Schmidt Taxi LLC, Cambodia Taxi, LLC, RZA Cab Corp., Kingston Taxi, LLC, Fromage Taxi, LLC, Kolara Trans, LLC, Watson Taxi, LLC, New Zealand Taxi, LLC, Pier Taxi, LLC, Kenya Taxi, LLC, Vick Taxi, LLC, Gold Runner Taxi, LLC, Korea Taxi, LLC, Sri Lanka Taxi, LLC, Melo Taxi, LLC, Barkley Taxi, LLC, Zimbabwe Taxi, LLC, Mykonos Taxi, LLC, and Sephardic Taxi, LLC, all collectively operating under the trade name Freedom Taxi (collectively, "Freedom Taxi"), on the Philadelphia Parking Authority's ("PPA") proposed regulation for taxicabs and limousines that was published on the Pennsylvania Bulletin on October 26, As you know, Freedom Taxi is a major stakeholder in the Philadelphia taxicab industry. The PPA has failed to introduce a comprehensive regulatory scheme to address the shortage of wheelchair accessible vehicles in Philadelphia. If the PPA does not take into account the best practices of comparable cities, as well as learn from other cities' failures, Philadelphia is going to A Pennsylvania Limited Liability Partnership California Colorado Connecticut Delaware District of Columbia Florida Nevada New Jersey New York Pennsylvania

2 Fox Rothschild LLP ATTORNEYS AT LAW Philadelphia Parking Authority November 22, 2013 Page 2 fall even further behind the rest ofthe country. The PPA must make more of an effort to gain an understanding ofthe issues faced by the Philadelphia taxicab community and adequately address them. Upon reviewing Proposed Regulation (the "Regulation"), Freedom Taxi respectfully recommends that the Regulation proposed by the PPA be withdrawn by the PPA until such time as: 1. The PPA meets with stakeholders and comprehensively discusses the proposed new subchapter to the regulations as supported by actual data. 2. The PPA prepares a meaningful financial assessment ofthe impact that the Regulation will have on the taxicab industry, including drivers, owners, and the riding public. 3. The PPA announces the number of medallions it will issue each year for the next 10 years, including the number of medallions that will be designated only for use on wheelchair accessible vehicles. 4. The PPA provides information on how it will adequately address the shortage of wheelchair accessible vehicles in the Philadelphia area. 5. The PPA addresses its rationale for shortening the lifespan of accessible vehicles, the privacy issues that will accompany the new technology suggested for meters for accessible vehicles, the need for a central dispatching system, and the incentives it will offer drivers to participate in the suggested driver training program. 6. The PPA addresses insurance costs, driver and rider subsidies, and financial incentives for wheelchair accessible vehicles. 7. The Authority has an independent legal assessment performed on its authority to limit the number of medallions, ofthe 150 new taxicab medallions issued over the next 10 years, designated only for use on wheelchair accessible vehicles. Freedom Taxi is submitting these comments to highlight the significant issues with the Regulation as proposed. Freedom Taxi's comments begin with a discussion ofthe procedural defects ofthe Regulation. Agency rules should be clear and definite so that affected parties will have adequate notice ofthe agency's understanding ofthe law. Hopelessly vague regulations, such as the Regulation at issue here, do not accomplish these goals. The Regulation does not provide information to the public regarding how the PPA decided that 15 medallions should be issued each year for the next 10 years. It is also unclear whether all ofthe 150 medallions will

3 Fox Rothschild LLP ATTORNEYS AT LAW Philadelphia Parking Authority November 22, 2013 Page 3 be designated only for use on wheelchair accessible vehicles. If the public does not know how many ofthe 150 medallions will be sold with these restrictions, then the public cannot provide meaningful comments on the Regulation. The PPA also failed to address insurance costs, driver and rider subsidies, and financial incentives for wheelchair accessible vehicles through the Regulation. Given the absence of guidance on any of these issues, Freedom Taxi reserves it right to raise additional concerns through the regulatory review process. Following a discussion ofthe procedural defects, namely the lack of adequate notice, Freedom Taxi's comments focus on specific sections ofthe proposed Regulation and how it will cripple the Philadelphia taxicab industry. Then, Freedom Taxi questions whether the PPA has the authority to limit the number of medallions that will be designated only for use on wheelchair accessible vehicles. Freedom Taxi hopes to have an opportunity to work with the PPA in improving the Regulation and in gaining an understanding of its public interest goals that it hoped to accomplish through the Regulation. Sincerely, 40 1 Brett Berman, On behalf of Black Point Taxi, LLC et al BB/cms

4 COMMENTS OF FREEDOM TAXI Re: Regulation Philadelphia Taxicab and Limousine Regulation Proposed by the Philadelphia Parking Authority November 22, 2013

5 I. Executive Summary COMMENTS OF FREEDOM TAXI ON PROPOSED REGULATION REGARDING TAXICABS AND LIMOUSINES IN PHILADELPHIA The process by which the Philadelphia Parking Authority ("PPA") developed Proposed Regulation (the "Regulation"), the inability for the public to provide any meaningful comment, the potential impact that the Regulation will have on the quality and cost of service to service providers and riders, and the question of whether the PPA has the legal authority to enact the Regulation, make it imperative that the Regulation not be approved. Freedom Taxi respectfully requests that the Regulation not be approved by the Independent Regulatory Review Commission ("IRRC") until: 1. The PPA meets with stakeholders and comprehensively discusses the proposed new subchapter to the regulations as supported by actual data. 2. The PPA prepares a meaningful financial assessment ofthe impact that the Regulation will have on the taxicab industry, including drivers, owners, and the riding public. 3. The PPA announces the number of medallions it will issue each year for the next 10 years, including the number of medallions that will be designated only for use on wheelchair accessible vehicles. 4. The PPA provides information on how it will adequately address the shortage of wheelchair accessible vehicles in the Philadelphia area. 5. The PPA addresses its rationale for shortening the lifespan of accessible vehicles, the privacy issues that will accompany the new technology suggested for meters for accessible vehicles, the need for a central dispatching system, and the incentives it will offer drivers to participate in the suggested driver training program. 6. The PPA addresses insurance costs, driver and rider subsidies, and financial incentives for wheelchair accessible vehicles. 7. The Authority has an independent legal assessment performed on its authority to limit the number of medallions, ofthe 150 new taxicab medallions issued over the next 10 years, designated only for use on wheelchair accessible vehicles. The comments begin by addressing the lack of adequate notice provided to the public. Vague regulations do not allow the public to provide meaningful comment, which defeats the purpose ofthe formal rulemaking process as contemplated by the Regulatory Review Act. Currently, there are less than 10 taxicabs in Philadelphia that are wheelchair accessible. Through the Regulation, the PPA has formally announced that it will be issuing 15 more taxicab medallions for wheelchair accessible vehicles only. The Regulation states that the PPA will also issue additional medallions with identical or similar restrictions over the next 9 years. Given

6 this discretionary language, it is not clear whether all 150 medallions that the PPA has been authorized to issue will be attached to wheelchair accessible vehicles only. Accordingly, the public cannot adequately respond to the Regulation. The PPA has also failed to address insurance costs, driver and rider subsidies, and financial incentives for wheelchair accessible vehicles. Following a discussion ofthe procedural defects, Freedom Taxi's comments focus on specific sections ofthe proposed Regulation and how it will cripple the Philadelphia taxicab industry by increasing costs to service providers and riders. There have not been any studies on how the Regulation will increase ridership, impact insurance costs, and affect service providers that will need to bring their taxis up to industry standards. Freedom Taxi also addresses whether the PPA has the legal authority to enact the Regulation as proposed. Freedom Taxi is a major stakeholder in the Philadelphia taxicab industry and has a great interest in seeing that the taxi industry and the riding public are well served by a strong regulatory framework. Freedom Taxi would welcome the opportunity to work with the PPA to provide meaningful data to the public regarding the impact ofthe Regulation, and some better solutions to introducing wheelchair accessible vehicles to the public. Philadelphia residents and visitors who use wheelchairs have spent more than two decades waiting for cabs that can accommodate them. It is critical that wheelchair accessible vehicles be introduced to the Philadelphia community in a logical and effective manner. II. Procedural Deficiencies - Failure to Provide Adequate Notice An agency's regulations, including the PPA's, are valid and binding only if they are: "(a) adopted within the agency's granted power, (b) issued pursuant to proper procedure, and (c) reasonable." Tire Jockey Serv. Inc. v. Dep't Env't Prot, 915 A.2d 1165, 1186 (Pa. 2007) (emphasis added). To be issued pursuant to proper procedure, a proposed rulemaking order must provide adequate notice to the affected public. Thomas Jefferson Univ. v. Shalala, 512 U.S. 504, 525 (1994). More specifically, agency rales should be clear and definite sothat affected parties will have a clear understanding ofthe agency's interpretation ofthe law and be able to provide meaningful comment. Id. Agencies should not "promulgate vague and open-ended regulations that they can later interpret as they see fit, thereby frustrating the notice and predictability purposes of rulemaking.'" Nw. Youth Servs. v. Cwlth. Dep't of Pub. Welfare, 66 A.3d 301, 310 (Pa. 2013) (citations omitted). A regulation that is not promulgated in accordance with these requirements will be declared a nullity. Borough of Bedford v. Dep't of Env't Prot, 972 A.2d 53, 62 (Pa. Cmwlth. Ct. 2009). Vague regulations, such as the Regulation at issue here, do not accomplish the goals set forth by Pennsylvania law. The PPA has been authorized by the legislature through the act of July 5, 2012 (P.L. 1022, No. 119) ("Act 119") to issue a maximum of 15 certificates of public convenience and corresponding medallions for citywide call or demand service each year until 150 medallions have been issued. However, Act 119 does not state that the maximum number of certificates of public convenience and corresponding medallions must be distributed each year for the next 10 years. The PPA does not provide any guidance, such as feasibility studies or financial data, to support its 10 year distribution schedule. Instead, the public is left wondering: 2

7 why should 15 medallions be issued each year instead of only 7 medallions, or instead of 25 medallions? And why are all 150 medallions not being issued at once? Rulemaking is viewed as a check on agencies rather than as a facilitative device. The participation of interested parties is a way to show flaws in the PPA's way of thinking. Freedom Taxi cannot provide meaningful comment until Freedom Taxi understands the PPA's rationale for this 10 year distribution schedule. The immediate demand for wheelchair accessible vehicles suggests that all 150 medallions should be issued at once, instead of over 10 years. Currently, there is a fleet of just seven wheelchair accessible vehicles, which has a backlog of work that has eliminated the fleet's ability to provide an "on-demand" service. Potential users ofthe vehicles must make reservations at least 24 hours in advance. Logically, the only way to increase availability and improve response time is to introduce a larger quantity of medallions. In addition, the Regulation's vagueness surrounding how many of these 150 medallions will be designated only for use on wheelchair accessible vehicles is extremely troubling. In the discussion section ofthe Regulation, the PPA states that, after it has issued 15 taxicab medallions for wheelchair accessible vehicles, "the PPA may then continue to issue additional medallions with identical or similar restrictions over the next 9 years." This language suggests that not all ofthe medallions will be designated only for use on wheelchair accessible vehicles. However, the PPA does not provide any guidance on how many ofthe 150 new taxicab medallions will be designated for wheelchair accessible vehicles only. Service providers will not be able to adequately equip their vehicles without knowing the types of medallions that they will be able to bid on in advance. Further, the public cannot provide meaningful comment if the public is not provided with specifics on the types of "similar" restrictions that will be placed on these medallions. The PPA has also failed to address insurance costs, driver and rider subsidies, and financial incentives for wheelchair accessible vehicles. It is essential that agencies give detailed notice of their plans to the public so that comments can be directed at the agency's actual proposals. The Regulation falls short of providing the public with adequate notice ofthe PPA's proposed rulemaking. As such, Freedom Taxi recommends that the Regulation be amended to include the necessary details to provide the public with the proper information to give meaningful comments. III. Substantive Deficiencies - Failure to Create a Comprehensive Regulatory Scheme In order to correct the procedural deficiencies with the Regulation - the lack of adequate notice - the PPA must correct the substantive deficiencies with the Regulation. First, and foremost, the PPA must investigate the need to introduce all 150 medallions into the marketplace at once. The PPA must also consider introducing a comprehensive regulatory scheme that addresses: the need for a central dispatching service, financial incentives to purchase medallions for wheelchair accessible vehicles, driver and rider subsidies, and the type of insurance coverage that will be mandated for wheelchair accessible vehicles. As an invested member ofthe Philadelphia taxicab community, Freedom Taxi suggests the following issues be thoroughly investigated and addressed before the Regulation is put into effect.

8 1. Shortage of Vehicles For over two decades, disabled residents have had to rely on SEPTA, with a limited service area, or the ADA Paratransit Program. Paratransit is often late or overbooked, and must be reserved at least a day in advance. Disabled residents and visitors deserve to be able to hail a cab at the last minute, just as the rest ofthe population can. Wheelchair accessible vehicles are something that residents, as well as our visitors, need and rightfully expect. Fifteen medallions a year is not enough to fulfill the demand for wheelchair accessible vehicles in Philadelphia (even if we assume that all fifteen medallions issued per year will be designated for wheelchair accessible vehicles only). The PPA notes in the discussion section ofthe Regulation that "people with disabilities must have broader access to these transportation services." Despite acknowledging the desperate need for more wheelchair accessible vehicles, the PPA does not offer any explanation as to why all 150 medallions are not being issued immediately. By way of comparison, New York City's Manhattan borough has a population of 1.69 million. Manhattan has over 200 wheelchair accessible vehicles that are centrally dispatched by the city through a contracted accessible dispatch. Philadelphia has a population of million. However, Philadelphia's wheelchair accessible vehicle program pales in comparison to Manhattan's program. Philadelphia has a fleet of 7 wheelchair accessible vehicles, with no centralized dispatch system. Other cities, in addition to New York City, have taken significant steps towards accommodating people with ambulatory disabilities. Boston has a fleet of 100 vehicles that provides transportation access to those that are unable to use traditional taxi cabs due to mobility impairments. San Francisco has over 100 taxicabs that are ramp equipped and able to accommodate wheelchair passengers who are unable to transfer out of a wheelchair. New Orleans, which does not currently have any wheelchair accessible vehicles, announced that the City will be adding 50 accessible vehicles to jumpstart the process. According to the 2010 Census, there are 128,856 people living in Philadelphia with ambulatory disabilities. Even with an additional 15 medallions, there will still only be one wheelchair accessible vehicle for every 6,000 people. Also, the number of people living in Philadelphia with ambulatory disabilities is likely to increase. Cornell University releases an annual Disability Status Report, the most recent of which is from According to the Pennsylvania Disability Status Report from 2011, 13.4 percent of Pennsylvania residents reported having a disability. Among the six types of disabilities identified in the status report, the highest prevalence rate percent - was for ambulatory disabilities. In other words, over half of people with disabilities living in Pennsylvania have an ambulatory disability. Magee Rehabilitation Hospital, Moss Rehabilitation Hospital, and Jefferson Hospital Rehabilitation provide world class care for people with ambulatory disabilities. The proximity of these care facilities to Philadelphia, and the forthcoming increase of wheelchair accessible vehicles in the city, makes Philadelphia a prime destination for someone with an ambulatory disability to live and work. However, the need for an increase in medallions stretches beyond Philadelphia's residents. Philadelphia is the birthplace of our nation's independence, making it a tourist

9 destination. According to U.S. News & World Report, it is the second most "Historic Destination in the USA." The city also draws visitors because of its museums, dining, and its proximity to the nation's top tourist city, New York City. However, the story published in the Philadelphia Inquirer, "Daniel Rubin: Philadelphia Cabs Off-Limits to Wheelchair Users," sheds light on a perspective shared by many who would like to travel to Philadelphia. Randy Alexander, who was visiting Philadelphia to attend a strategy session on the rights ofthe disabled, was quoted in the article. "It's been 21 years since the Americans with Disabilities Act was passed, and when I go somewhere, I have a basic expectation that all ofthe transit systems and cabs are accessible," says Alexander, community director at the Memphis Center for Independent Living. "I've run into problems in small cities, but not a big city. I guess Philadelphia must be a very small town. In New York, a person in a wheelchair can catch a cab. So, too, in Los Angeles, Chicago, Phoenix, Houston, Miami, Boston, Baltimore, and Washington. Ofthe 10 biggest U.S. cities, only Philadelphia leaves wheelchair users stranded." Despite its attractions, Philadelphia is not even ranked in the "Top 21 U.S. Vacations" according to U.S. News & World Report. Other major cities have made significant progress in introducing wheelchair accessible vehicles to their residents and visitors. Philadelphia cannot afford to continue to lag behind other cities making these advancements and continue to lose potential patrons. 2. WAV Taxicab Specifications In addition, the PPA has not considered the financial impact of reducing the acceptable age and mileage standards applicable to accessible vehicles. While Freedom Taxi takes no issue with requiring wheelchair accessible vehicles to be new or nearly new, there should be corresponding benefits for purchasing newer, more expensive vehicles. Taxicab service providers should be able to keep these vehicles in service for a longer period of time, and there should be an increase in the maximum mileage applicable to accessible vehicles. Typically, it costs taxicab service providers $4,000 to purchase a vehicle that it can put into service without these restrictions. In stark contrast, it will cost taxicab service providers approximately $45,000 to $50,000 to purchase the types of vehicles contemplated by the Regulation. Further, the PPA has not provided the public with any research supporting its decision to cut the lifespan of these vehicles shorter. Last year, Chicago's City Council approved the Mayor's plan to reform the taxicab industry, which nearly doubled the number of wheelchairaccessible cabs available in Chicago. It authorized wheelchair-accessible cabs to remain on the street for 5 years, with an option to remain active for 6 years, as compared to the maximum street life of 4 years for non-accessible cabs. The PPA has not explained why Philadelphia would not be following this same trend. The PPA also has not provided any guidance on whether accessible vehicles will have to transport scooters, or other equipment that people with ambulatory disabilities may use.

10 The PPA admits that "those who opt to purchase a WAV medallion [will not be able] to understand the financial obligations associated with operating this class of taxicabs before buying the WAV medallion." However, this does not need to be the case. Prior to enacting the Regulation, as well as other regulations in the pipeline, the PPA should take a deep guise into the financial impact of requiring taxicab service providers to take on these financial burdens. Taxicab service providers should not have to go into the bidding process without any feasibility studies or meaningful data. While the Regulation states that additional operating costs will be "ameliorated" by a reduced initial WAV medallion acquisition auction bid price, this will not actually level the playing field. Notably, the PPA has not announced how much of a reduction it contemplates. Regardless, this one time cost savings is unlikely to make any significant difference over the course of a wheelchair accessible vehicle's 5-year lifespan. 3. Meter Activation and Display The Regulation's ambitious meter activation and display requirements cannot be approved as they currently exist. Section (9) will require every wheelchair accessible vehicle's meter to be equipped with a button that the driver will push when a person in a wheelchair begins taxicab service. While it is described as a "crucial tool to track the merging use of this new service," the PPA does not explain if this type of technology even exists. If it does not, who will be responsible for creating the technology? And who will fund it? More importantly, who will be collecting this data and analyzing it? How will the data eventually be used? More troubling is (10), which proposes that the meter systems be capable of taking a picture ofthe person in a wheelchair as a passenger in the accessible vehicle. However, taking photographs of disabled riders opens up taxicab service providers to a flood of litigation. This is surely an invasion of riders' privacy rights. Will passengers be asked for permission to take their photograph? How will their consent be documented? Again, the Regulation does not explain whether the type of technology it contemplates already exists, or who will be collecting the data and how they will be using it. 4. Dispatcher Requirements The Regulation does not do enough to ensure that quality service will be provided to persons with disabilities. More specifically, the Regulation does not address whether wheelchair accessible vehicles will be expected to have the same response time, fares, hours, and days of service as non-accessible vehicles. Freedom Taxi recommends that the PPA consider giving wheelchair accessible vehicles priority in cab lines over non-accessible vehicles (outside of places such as 30 th Street Station), and introducing a centralized dispatch system. Without a centralized dispatch system, potential patrons will not know who to call to reserve a wheelchair accessible vehicle. The Regulation requires dispatchers to refer requests for a wheelchair accessible vehicle to a "WAV dispatcher." Nov/, instead of telling a potential patron to "call another dispatcher," dispatchers have to tell potential patrons who to call. However, the Regulation does not require dispatchers to provide callers with a WAV dispatcher's telephone number. Dispatchers could potentially say: "Call ABC Company." Then, 6

11 the caller will need to spend time searching for the telephone number for ABC Company. Realistically, the Regulation does not get Philadelphia any closer to matching a person in a wheelchair with an available wheelchair accessible taxicab as quickly as possible. Like the rest ofthe population, handicap patrons should only have to make one telephone call. To accomplish this goal, the PPA should introduce a centralized dispatching system. The PPA should look to other cities, like Chicago, for guidance. In Chicago, there is a central dispatching system, known as Centralized Dispatch. Centralized Dispatch provides a central telephone number for the dispatch of wheelchair accessible taxicabs. All cab companies are mandated to participate. To ensure the success of Centralized Dispatch, each medallion licensee pays a monthly fee to subscribe to the service. New Orleans also plans on adopting a centralized dispatching system. To ensure the City provides quality service, New Orleans contemplates the centralized dispatching service incurring fines for failing to match a rider with a wheelchair accessible vehicle. New Orleans also plans on requiring that certain data be recorded and reported to the City. For example, the centralized dispatching service will have to record information, such as: Time to answer an incoming call Time to communicate the trip request to a wheelchair accessible vehicle driver Trip duration and distance Trip cost Customer and driver satisfaction The PPA should adopt similar measures. Together, the PPA and the centralized dispatching service should be able to ensure that people with ambulatory disabilities are receiving the quality service that they require and deserve. 5. Driver Training The Regulation announces that taxicab drivers of accessible vehicles will be paid by the PPA to train for this classification of service. In addition, the PPA will pay the annual registration for this type of training. However, this does not encourage drivers to proactively seek to provide service to people in wheelchairs. This just eliminates one ofthe many expenses that accompany providing this type of service. The Regulation also states that drivers of accessible vehicles "may" receive monetary rewards based on the number of disabled passengers serviced. However, the Regulation does not outline the amount of these monetary awards, or any way to gauge whether there will ever be more than a far-fetched possibility of drivers actually receiving monetary awards. Without financial incentives, why would drivers go through this extra training?

12 4. Subsidies for Drivers and Riders The goal of introducing wheelchair accessible vehicles should be to enable people with disabilities, their families, and caretakers to participate further in social and economic opportunities in their community. However, for this to be possible, the PPA must provide a package of funding options to meet their vehicular access needs. The reality is that most ofthe 128,856 people living in Philadelphia with ambulatory disabilities are receiving government assistance. The PPA should recognize the need for per-trip subsidies, as well as other financial accommodations for this sector ofthe population, and look towards other cities for guidance. In Boston, residents age 65 and over, as well as disabled residents of all ages may purchase coupon books worth $10 at a cost of $5 per book (a 50% discount) for all taxis. In San Francisco, upon approval by SF Paratransit, eligible riders are issued a SF Paratransit debit card/photo ID and assigned a monthly purchase allotment. For every $5 a person pays into his/her debit card account, SF Paratransit adds $30 to the person's debit card on the effective date of his/her monthly purchase, up to the maximum authorized by his/her monthly allotment. Philadelphia must make some accommodations for people who cannot afford the full fares charged by these accessible vehicles. The larger issue is that there has been no deep guise into how the introduction of accessible vehicles will impact riders and service providers. Freedom Taxi recommends there be an assessment ofthe fiscal effect ofthe Regulation on the industry and the riding public. Subsidies should also be available for taxicab service providers due to the increased costs associated with owning and operating wheelchair accessible vehicles. Typically, it costs taxicab service providers $4,000 to purchase a used vehicle that it can put into service. It will cost taxicab service providers approximately $45,000 to $50,000 to purchase the type of accessible vehicles contemplated by the Regulation. In addition, wheelchair accessible vehicles operating costs are higher and their capacity for daily trips lower because ofthe time it takes to service a wheelchair accessible client and the short trip nature of this market. Due to all of these fiscal burdens, we recommend that service providers be given financial incentives to purchase and operate wheelchair accessible vehicles. 4. Insurance Insurance for taxicabs has been a major issue in Philadelphia. The lack of affordable, reliable insurance has at times nearly crippled the industry. Taxicab service providers are required to obtain insurance to cover property damage, injury, and liability insurance. However, the cost of insurance policies for wheelchair accessible vehicles will likely be double that of nonaccessible vehicles. Wheelchair accessible vehicles are going to be newer and more expensive and, as such, they will have greater property damage exposure. Rates will be higher because more liability claims are filed by passengers with disabilities and their claims are for larger amounts. Philadelphia taxicab automobile claims are ranked second behind Los Angeles for fraudulent medical claims. The Regulation does not address any of these issues, or the type of insurance policies that service providers will be expected to obtain for wheelchair accessible vehicles. We recommend that no change be made to the existing regulations regarding insurance without a careful analysis ofthe issues and costs surrounding wheelchair accessible vehicles. 8

13 IV. Legal Authority In addition to the aforementioned deficiencies, the PPA has exceeded its statutory authority through the proposed Regulation. The Regulation states that "[t]he Authority has been authorized by the Legislature through the act of July 5, 2012 (P.L. 1022, No. 119) ("Act 119") to issue an additional 15 taxicab medallions in Philadelphia, provided that those medallions be used for the purpose of providing wheelchair accessible taxicab service. Act 119 also increased the number of authorized Philadelphia taxicab medallions by an additional 15 on June 1, 2013 and will continue to increase the aggregate statutory medallion cap by 15 each June 1 until 1,750 Philadelphia taxicab medallions are authorized for issuance by the Authority." This language suggests that not all ofthe 150 medallions issued will be restricted to wheelchair accessible vehicles only. By including this discretionary language in the Regulation, the PPA ignores the guidance ofthe authorizing statute. Specifically, 571 l(c)(2)(i) states that the PPA is authorized to issue, "[s]ubject to the provisions of subparagraph (ii), a maximum of 1,600 certificates of public convenience corresponding medallions for city wide call or demand service and an additional 15 certificates of public convenience and corresponding medallions restricted to wheelchairaccessible taxicab service." Based on this provision, there can be a maximum of 1,600 medallions that are not restricted to wheelchair-accessible taxicab service. Subparagraph (ii) provides for the issuance of 15 additional medallions to be sold annually for the next 10 years, for a total of 150 medallions slated for wheelchair accessible taxicabs in Philadelphia. This intention is further evidenced by the House Committee on Appropriations Fiscal Note, which states that Act 119 was intended to "add procedures and regulations for the operation of wheelchair accessible vehicles (WA V) taxicabs in Philadelphia and to clarify certain existing provisions." Accordingly, the PPA has exceeded its legal authority through the promulgation ofthe proposed Regulation. V. Conclusion The Regulation does not create a comprehensive regulatory scheme and, as such, Philadelphia is setting itself up for failure. There are a number of shortcomings that cannot be overcome without proper guidance from the Philadelphia taxicab community. The Regulation does not provide any justification for the number of medallions the PPA intends to issue each year, or why all 150 medallions should not be issued at once. In addition, the PPA has not addressed critical issues, such as insurance costs, financial incentives, and subsidies. Before the Regulation is approved, the following changes should be made: 1. The Regulation must be amended to include the necessary details to provide the public with enough information to give meaningful comments. 2. All 150 medallions should be issued at once because one wheelchair accessible vehicle for every 6,000 people is not enough to satisfy the needs of Philadelphia residents and visitors. 9

14 3. If the PPA is going to require wheelchair accessible vehicles to be new or nearly new, there must be corresponding benefits for purchasing newer, more expensive vehicles, including a longer life-span for accessible vehicles. 4. The PPA must address funding concerns for developing new meter activation and display technology, as well as practical legal implications for invading riders' privacy rights. 5. The PPA must put in place a centralized dispatch system because it is the only way to match a person in a wheelchair with an available wheelchair accessible taxicab quickly without that person having to make more than one telephone call. 6. Drivers should be provided with financial incentives to complete accessible training and accessible training should be provided by approved trainers outside ofthe PPA. 7. Passenger subsidies should be made available through the current SEPTA and Customized Community Transportation system for taxicabs. 8. The PPA should address the higher insurance costs for wheelchair accessible vehicles and define the types of policies service providers will need to obtain for their vehicles. 9. The PPA must have an independent legal assessment performed on its authority to limit the number of medallions, ofthe 150 new taxicab medallions issued over the next 10 years, designated only for use on wheelchair accessible vehicles. We look forward to participating in the formation of a comprehensive regulatory scheme that can address the concerns that we have raised. 10