OCEAN CITY — Further illustrating the changing landscape of the transportation business in Ocean City, resort officials this week could not agree on a proposal to transfer a taxi medallion or a proposal to buy it back.
In 2010, Ocean City adopted a taxi medallion system in an attempt to better regulate the resort’s cab industry and as a means to generate revenue. In that first year, the town sold 170 taxi medallions to various cab companies and independent operators for about $1,500 each through a lottery system. The intent was to limit the number of cabs that operate exclusively on the island, eliminate rogue cabs from out of the area to operate in the resort at peak times and to add stronger regulations.
The limited number quickly drove up the price for one of the coveted medallions, the taxi industry on the island was better regulated and the town had its steady revenue stream. However, the proliferation of ride-sharing operations, such as Uber, for example, have lowered the value of the limited number of medallions.
As a result, the Mayor and Council recently decided to buy back taxi medallions when a transfer is proposed or a sale is offered in an attempt to reduce the number of available medallions and essentially increase the demand and, therefore, the price.
Such an example occurred this week when there was a proposed medallion transfer on the Mayor and Council’s consent agenda. However, Councilman Matt James made a motion to reject the transfer and buy back the medallion in question. Council President Lloyd Martin said he could not support the motion because the medallion transfer request had come in before the council’s medallion buy-back program was implemented.
“I know we’ve talked about buying the taxi medallions back, but this medallion transfer came in over a week ago and was put on the agenda,” he said. “They’ve invested their money and I would hate to do that to them. I can’t vote for that.”
James said the stated policy was to buy back medallions when possible and the proposed transfer represented an opportunity to do that.
“I understand, but as a body, we decided we would start buying the medallions back,” he said. “We have an ultimate goal of the number of medallions we would like to have in town I think this is a good place to start.”
When the vote was called, James’s motion to buy back the medallion in question failed by a 3-2 vote with Council Secretary Mary Knight, Councilman John Gehrig and James in favor, and Martin and Councilman Tony DeLuca opposed. Councilmembers Dennis Dare and Wayne Hartman were absent. With the motion failing for lack of getting a full four-member majority, no further action was taken on the medallion transfer or the proposed buy-back.
“Basically, the taxi industry has been inundated with Uber in the town of Ocean City, bringing down the value of the taxi medallions,” said Martin. “We started the medallions about 10 years ago to make the taxi industry strong and worthwhile and to serve the public. It’s all about public safety and public service.”
Martin further explained the reason for the buy-back program.
“I think what’s happened is with the saturation, they’re not worth as much as they once were and they have come down in price,” he said. “We want it to be a viable business, so we decided to buy some back. If somebody wants to sell them back, the city will buy them at the lowest price available. Hopefully, we can buy back some medallions and increase their value, keeping the industry strong.”
