Anchorage Assembly member Bill Evans says it's time to shake up the city's taxi business by dramatically increasing the number of permits to operate a cab, a step that's almost certain to reignite a battle with the tightly regulated industry.
In an ordinance set to be introduced to the Assembly on Tuesday, taxi permits would be issued by lottery, not auction, as is currently the case, according to a memo from Evans.
And over the next five years, the city would issue 116 new general and wheelchair-accessible taxi permits through a public lottery. Right now, Anchorage allows 188 taxis.
The lottery will end in 2021. After that, anyone would be able to apply for a taxi permit for a fee.
Evans' deregulation proposal is the latest in a long-running series of attempts to introduce more competition into the city's cab industry. With the number of permits currently fixed at 188, older, transferable permits have become valuable commodities for their owners. One sold for $155,000 in 2013, a report at the time said.
Taxi owners have successfully fought off legislation that would make permits less valuable.
Evans represents South Anchorage on the Assembly and previously served on the city transportation commission, which oversees taxis. He said he's long been interested in encouraging more competition among taxis.
"The community isn't as well-served as it should be from a consumer standpoint," Evans said. "And I think this will actually make great strides in improving the quality of our taxi service."
Evans also noted the prospect of ride-booking companies like Uber entering the market "in the not too distant future." He said he imagines both competitive ride-booking and taxi services operating in the city.
Reached for comment Thursday, a lawyer for the Anchorage Taxicab Permit Owners Association said he was still reviewing a copy of the draft ordinance. But the lawyer, Jim Brennan, was quick to criticize the proposed ordinance as a "Trojan horse for Uber."
"If this were to be adopted, the value of taxicab permits would plummet to zero in a very short period of time," Brennan said.
He said that would make it easier for a company like Uber to argue that ride-booking companies won't be taking away the property value of a permit for Anchorage cab owners.
Evans' ordinance would require a yearly review by the Anchorage Transportation Commission to decide whether more permits would improve the quality of cab service in the city.
Issuing new taxi permits in Anchorage is currently not an easy process. Regulators must conduct detailed reviews that evaluate the scope and quality of existing service, the length of wait times and population growth.
New permits now, issued at auction, have a minimum bid of $1,980, the permit fee, said Eric Musser, the city transportation inspector.
But with limits on the overall number of permits in the system, prices have skyrocketed beyond that. When 15 new permits were issued in 2013 — the last time the pool of permits expanded — bids topped out at $91,000, Musser said. The permits fetched slightly more than $1 million altogether.
Of 188 permits in the market, 158 are "legacy permits" issued before a regulation overhaul in 1994 and are considered transferable. For the newer nontransferable permits, Evans said his ordinance aims to halt the long-standing practice of permit holders hiring others to drive the cabs.
Political battles over Anchorage taxi permits have flared in the past decade. In 2008, after a heated campaign, Anchorage voters rejected a ballot initiative that would have increased the pool of permits.
A 2012 attempt by former Assembly member Debbie Ossiander to revamp the city's taxi regulations and add 10 new taxi permits each year for a decade was also unsuccessful.
In both cases, taxi permit owners threatened to sue over the loss of value to their permits and warned the quality of service would decline as cabbies struggled to make ends meet.
Evans said he's aware of legal threats. He said his plan to phase in the new rules over five years is aimed at softening the financial blow for operators.
He said he thought he could build more political momentum for an overhaul now than in the past.
"I think there's a substantial amount of support at least throughout the city, on the Assembly and with the administration (of Mayor Ethan Berkowitz)," Evans said.
Evans said a public hearing won't be set on the ordinance until at least the first Assembly meeting of December.
He said the Assembly is planning to hold several committee hearings on it in the meantime.