News
Red Bank Cab Drivers Unhappy About Proposed Increase In License Fees
By John Burton
RED BANK - A proposal to increase fees for the limited number of taxi licenses in the borough is not sitting well with cab owners.
At their July 26 meeting, the governing body introduced an ordinance that would increase the fees paid by taxi owners and operators, with the costs going up for owners of large fleets based on a sliding scale.
The motivation behind the ordinance, according to Mayor Pasquale Menna and Borough Attorney Thomas Hall, is to prevent the cab company owners from acquiring the licenses and "pocketing" them - buying them and then not using them - to prevent them from being used by competitors, thus impeding the public's ability to obtain a cab.
According to the proposed ordinance the cost of a taxi license would remain at its current price of $150 per car for the first five licenses held by the owner. For six to 10 licenses, the price would rise to $500; for 10 or more the cost would then jump to $1,000.
The ordinance would also allow the borough to increase the number of licenses by five, with the new licenses being available through a public auction.
At the public meeting last week, Gary Damanti, who holds eight licenses for cars he owns and operates under contract with the locally owned Yellow Car Company, told the mayor and borough council that the new licensing rules would penalize local businesses and it is not needed. "I don't think that's really going on," Damanti said of the alleged pocketing.
"The fee structure is unfair," Damanti reiterated later last week. "I would almost call it discriminatory because they're trying to punish somebody for owning multiple licenses."
Damanti, who defines his role in the cab business as a manager, said that many Yellow Car vehicles are owned by individuals who contract with the company and use its dispatcher service.
"We're each operating our own small business," he said.
At present, there are 26 vehicles operating under the Yellow Car banner. Three other car services operate in the borough: Murphy Enterprises, Middletown, with 14 taxis, Above All with four, and P&M with one car, Damanti said.
Along with purchasing the annual licenses, taxicab owners are required to show proof of commercial insurance to the borough clerk each year, which now costs about $5,500 a year per car. Insurance companies do not offer a discount for multiple vehicles, according to Damanti.
"Another five cars is crazy," Damanti said of the plan to auction five new licenses.
Right now, "business is pretty slow," and with the exception of weekends, "You see a lot of guys sitting."
"If you see a cab sitting there," he explained, "that means it's not making a penny."
John Murphy, owner of Murphy Enterprises, said late last week he hadn't read the ordinance. "All I can say is from what little I've heard," Murphy said, "it does not sound good at all."
"The idea of penalizing someone because they've been successful or done a good job," Murphy added, "that rings very wrong to me."
Following last week's council meeting, Menna said, "We're going to take a look at some of the ramifications," of the ordinance. "If it's a legitimate concern, we'll take a look at it."
The council is expected to vote on the ordinance on Aug. 9, with a chance for the public to weigh in prior to that vote. Both Damanti and Murphy said they expect to appear.
