Mayor's Taxicab Task Force. Councilmember Wilson has also held numerous "round table" discussions with agencies and persons interested in improving D.C. cab service.

In addition, the D.C. Public Service Commission has issued an order establishing a special rush-hour surcharge to encourage more cabbies to operate during that period as recommended by the Mayor's Task Force and the Olson study.

Furthermore, correspondence between Committee Chairman Charles C. Diggs, Jr. and Ms. Ruth Hankins-Nesbitt, Chairperson of the D.C. Public Service Commission, has resulted in the establishment of a potentially productive Committee staff liaison with Mr. Linus Deeny of the D.C. Corporation Counsel's Office regarding taxi regulatory matters.

To augment the continuing staff study of the D.C. taxi industry. Committee Chairman Charles C. Diggs, Jr. requested, in January 1975, that the Congressional Research Service (CRS) of the Library of Congress conduct its own study of the organizational structure of the D.C. taxicab industry and surrounding Virginia and Maryland jurisdictions. That study, a comprehensive effort, researched, written. and submitted in two parts by Mr. James P. McGrath of the CRS staff, was considered of such quality that Chairman Diggs directed that copies of the study be forwarded to the Mayor and the D.C. Public Service Commission for their consideration.

While CRS does not make direct recommendations in its studies, Mr. McGrath's findings indicate a need for a restructuring of the regulatory operations of the D.C. taxicab industry. The findings are a further reinforcement and expansion of similar findings in the Mayor's Taxicab Task Force.

During the period February through April 1975, Ms. Polly Rich was associated with the Committee staff as an Antioch Law School intern. During that time, Ms. Rich observed the operations of the District of Columbia Hackers License Appeals Board as it was then structured. Ms. Rich subsequently put her observations into a report for the continuing use of Committee staff.

Additionally, since June 1975, the Committee on the District of Columbia has received an increased volume of complaints from residents, visitors, Federal officials, and Members of Congress on behalf of constituents regarding: (1) refusal of cab drivers to accept riders at Union Station, the Kennedy Center, and other locations for trips to various sections of the District of Columbia; (2) aliens driving cabs who are not familiar with the District of Columbia, are abrasive, and may not be properly licensed; and (3) alleged overcharging.

The texts of the aforementioned studies of the D.C. taxicab industry are presented in this Committee publication so that the executive and legislative branches of the Government of the District of Columbia and the Congress might use the data and recommendations contained therein to work cooperatively to evaluate and act on the deficiencies outlined in these studies, press reports, and correspondence directed to the Committee regarding local taxi service. Such efforts are especially important during the Bicentennial when perhaps 20 million or more visitors are expected in the District of Columbia. Many of these visitors will, no doubt, seek to travel about by taxicab.

With this letter the Public Service Commission transmits to your office a report on the District of Columbia taxicab industry. The report was prepared for the PSC by Charles E. Olson, Ph.D. and Philip Kuehl, Ph.D. of the University of Maryland, consultants commissioned pursuant to Section 27 of Public Law 93-140 which directed the PSC to conduct a study of the adequacy of taxicab service, the adequacy of regulation, and the feasibility of meters.

The consultants have recommended that taximeters not be used in the District of Columbia. We are tentatively in agreement with that conclusion since there is no evidence we have seen previously or which has been produced by this study to indicate that taximeters would contribute an overall benefit.

We are similarly inclined to the view of the consultants that limitations should not be placed on the numbers of taxis or drivers that are allowed to operate in the District of Columbia. There are no apparent overriding benefits in imposing such restrictions as compared with the benefits in the present system of unrestricted entry.

The consultants do recommend that serious consideration be given to the "mileage rate" or "circular zone system" proposed by Mr. Irving Schlaifer as a potentially acceptable alternative to the present zone system. The consultants also make several other recommendations regarding specific service problems:

(1)

(1) The problem of generally poor service in the Northeast and Southeast sections of the city could better be dealt with by instituting a program of better enforcement of existing regulations.

(2) Radio service could be improved by either raising the call charge from 50¢ to $1.00 or by requiring a minimum fare equal to that for a 4-zone trip ($2.05).

(3) Night service could be improved by upgrading call service and the installation of call boxes at major locations.

Finally, we note that the consultants relied heavily on an analysis of driver and consumer attitudes covering the questions which they addressed. Public opinion surveys were conducted at three levels: (1) a telephone interview survey of District residents; (2) a street survey aimed at non-residents; and (3) a drivers' survey. The key findings regarding perception of service were as follows:

(1) Service was viewed as bad in Far Northeast, Southeast, Anacostia and Congress Heights.

(2) Service in the Northeast sections of the city consisting of Brookland and Michigan Park was viewed as average generally, but bad at nights or weekends.

(3) The only area in which service was viewed as good was in the area west of Rock Creek Park and the central city.

(4) Service in upper Northwest was viewed as average generally and bad at night.

(5)

Service in near Northwest was considered to be good but bad at night.

(6) Service in near Southeast and Southwest was generally considered to be good.

Rush-hour service was generally considered to be poor, as was radio service in areas of the city other than Northwest.

An overall picture emerged of a taxicab industry which residents believe is providing reasonably good service in the Northwest and downtown area, but poor service elsewhere. In this connection, it should be noted that the Northwest quadrant has almost 50% of the city's population.

The next phase of our effort, which is already underway, will be to examine closely the adequacy of the District Government's organization for regulation of the industry, especially enforcement of taxicab rules and regulations and resolution of consumer complaints. We have felt, and the consultants' report confirms, that a major emphasis on enforcement can result in a substantial improvement in service. This work is being done by the Commission's staff with the cooperation of a number of other District agencies including the Office of Planning and Management and the Public Vehicles Division of the Department of Motor Vehicles.

The enclosed report offers informed recommendations on two salient issues meters and entry policy - which undobutedly will dominate the continuing public discussion on how to improve taxicab service in the District of Columbia.

The final decision on these questions will involve factors not subject to quantification or certainty. In presenting a scientific study and analysis of public perception of the industry, the consultants have contributed significantly to the body of information available to us.

Sincerely yours,

H. Mason

H. Mason Neely
Acting Chairman

Muly

Enclosure

Public Law 93-140 directed the District of Columbia Public Service Commission to study the adequacy of service and regulation of the taxicab industry in this city.

To do this the PSC retained consultants to evaluate proposals to permit the installation of taxi meters and to limit the number of taxis or drivers. A copy of their report and the PSC letter of transmittal to me is attached.

Although I concur generally with the findings of the consultants recommending against proposals to require meters and establish limitations, I recognize the need for decisive actions to improve taxicab service in this city. In fact, such actions are already underway.

I am concerned that proposals to limit the number of taxicabs and to require the installation of taximeters would change the nature of the taxicab service offered to a luxury-type service while drastically limiting the employment opportunities this industry now provides. I do not believe that such an outcome would be desirable for taxicab passengers or drivers.

I would point out that taxicab service in this city plays a unique role as part of the basic transportation system of the District of Columbia and the metropolitan area. Unlike many other cities where taxicab service is regarded as a limited service for affluent residents and visiting businessmen, in the District of Columbia, taxis perform a vital mass transportation role for residents, as well as the millions of tourists who visit here each year.