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| Davette Blalock |
Background:
In June 2010, the council enacted Ordinance No. BL2010-685, a limousine price-fixing bill that protected the big limo companies from competition. That ordinance imposed a minimum $45 fee for limo services, it prohibited the use of leased vehicles, and imposed age and mileage restrictions. All of these provision were designed to protect the luxury established limo companies from competition. Economy limo companies were providing limo service for a little as $25 and were cutting into the business of the established limo companies.
When learning that Metro had passed such a bill in June 2010, I was appalled that not a single member of the Metro Council opposed it, even the conservative members of the Council who I would assume claim to be champions of limited government and free enterprise. To their credit a couple members, Councilman Eric Crafton and Councilman Sean McGuire attempted to repeal the price fixing bill but were unsuccessful. Several Council Members told me that when the bill was presented to them, they really did not know what it did and were led to believe that it had the support of the industry. That is not a good excuse; they should have read the bill. Now, the Council has the chance to do the right thing and correct a grave error.
What the Proposed Bill would do:
This proposed ordinance would remove the current
$45 minimum fee that livery vehicles are required to charge. It would amend the permit process so that
the applicant for the permit is not required to hold the title to the vehicle in order
to obtain a permit. In other words, it would allow for the use of leased vehicles and would allow the driver of a vehicle to own his vehicle and work for a company that has the permits. A third provision of this ordinance adjusts the minimum
mileage requirements and maximum age requirements for vehicles used as a passenger vehicle for hire. Effective January 1, 2012, under the current code, a vehicle could not begin
service if it is more than five years old and vehicles could not remain in
service if they are more than seven or ten years old, depending on the
category of the vehicle. This ordinance would remove the age limitation
and rely solely upon the mileage limitation currently in the code. Under
this limitation, vehicles cannot exceed 350,000 miles on their
odometer. Also, the ordinance adds a specific minimum time
requirement of fifteen minutes for pre-arrangement of services.
Metro is being sued over this issue.
Now, IJ is suing the city on behalf of the econo limo companies alleging that the various restrictions in BL2010-865 are unconstitutionally arbitrary and are irrational regulations designed to eliminate competition. The challenged regulations are the minimum fee, the requirement that businesses must hold title to the vehicles, the requirement that they dispatch solely from their place of business, and the minimum age requirement, which the proposed bill would fix. If Metro does not pass the pending bill before it, I suspect the IJ will prevail in court. However, by the time it gets to court the econo limo providers will have had to stop providing limo service and most likely will have gone broke. Often justice delayed is justice denied.
Is this a perfect bill?
No, it is not. Other than a liability insurance requirements and some safety regulations and licensing, I would like to see all economic regulation of transportation removed including restrictions on entry into the market. I do not think Metro should be in the business of restricting competition in limos, buses, or taxis. However, a general deregulation is not going to occur immediately and the immediate issue of limousine price fixing should not be deferred because we can't get total economic deregulation. It would be foolish to make the perfect the enemy of the good.
There are three provisions of the existing limousine pricing fixing Metro code or proposals in the bill under consideration that do not adequately addressed the issue of over regulation.
- The 350,000 mile limit: Under this proposed bill the limitation that vehicles cannot exceed 350,000 miles on their odometer should be removed. This will not likely effect many, if any vehicles, so why even have it in the code. Anyway, by the time a vehicle has 350,000 miles on the odometer it may have a new transmission, a new engine, and all new components. A well maintained and repaired vehicle could be a mostly new by the time the odometer reaches 350,000 miles. Let the vehicle owner decide when it is time to replace the vehicle as long as the vehicle meets safety requirements. The following two restrictions are more serious are unnecessary and add inconvenience and cost to limousine operations.
- The 15 minute wait: Under this proposed bill, once a customer calls for a limo, at least fifteen minutes must lapse between the request for the limo and getting in the limo. Why? If someone is already late for the airport, maybe because a cab has stood them up or whatever, why make them wait another 15 minutes if the limo is already at the same hotel dropping off another guest?
- Only one customer per hour. There is a provision is the code that says a limo must be engaged for a minimum of one hour. What is the logic of that? If someone takes a limo from the airport to a downtown hotel, on a good day, that may only be a 20 minute ride. Why make the limo set idle for another 40 minutes?
Please Contact your Council Member:
I know their has been a lot of maneuvering to influence the council on this issue. The established limo companies wanting to keep their market share have lobbied the council hard to maintain the status quo. The have hired former Councilman Jami Hollin to lobby the Council. Some important metro figures have family connections to the luxury limo business. I hope the Council will do the moral think and vote against crony capitalism and vote for free markets.
Please call or write your councilman and all of the council members at Large and urge them to support BL2011-49. To get contact information for your councilman, follow this link.
I have covered this issue extensively on this blog. To see video, other articles, and learn more, follow this link.
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Also, the ordinance requires dispatch office for even the one car owner. It is a limo business for last decades lot of people were this business part time. They have a full time jobs. And also, have sedan or limo to supplement their income. They drive the car only on weekend to support their families. It is hard to make a living with one job because of the slow economy or other contributing factors. What realistic numbers a small business owner afford an office and a payroll of a full time dispatcher when he is making only a couple hundred a week on weekends? The ordinance was written by the high end limo companies that have fleets and full time office with dispatchers so one car owners or a small guy cannot even survive. I have a question for Brian McQuistion, tell me the numbers how a small operator can afford all the expenses and pay the city licensing fees, dispatch office, etc.???? I could see how you hate the small guys in your open public meeting. You called security to a small guy when he asked you about public safety and tried to put him out of a public meeting, since you were a public servant you, Brian, violated his first amendment right. Are you a public servant? I strongly believe an the ordinance was an organized crime against small guys. I personally have the largest discount car service in Nashville with the largest dispatch office as well. But I started everything with one car. So they made sure there will never be another Metro Livery born again.
ReplyDeleteAlso, the ordinance requires dispatch office for even the one car owner. It is a limo business for last decades lot of people were this business part time. They have a full time jobs. And also, have sedan or limo to supplement their income. They drive the car only on weekend to support their families. It is hard to make a living with one job because of the slow economy or other contributing factors. What realistic numbers a small business owner afford an office and a payroll of a full time dispatcher when he is making only a couple hundred a week on weekends? The ordinance was written by the high end limo companies that have fleets and full time office with dispatchers so one car owners or a small guy cannot even survive. I have a question for Brian McQuistion, tell me the numbers how a small operator can afford all the expenses and pay the city licensing fees, dispatch office, etc.???? I could see how you hate the small guys in your open public meeting. You called security to a small guy when he asked you about public safety and tried to put him out of a public meeting, since you were a public servant you, Brian, violated his first amendment right. Are you a public servant? I strongly believe an the ordinance was an organized crime against small guys. I personally have the largest discount car service in Nashville with the largest dispatch office as well. But I started everything with one car. So they made sure there will never be another Metro Livery born again.
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