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Medallion holders warn Board of Appeals about MTA reforms and litigation in public comment
Summary
During general public comment, speakers representing medallion holders described MTA reform proposals, a Federal Credit Union lawsuit, permit forfeitures and the potential removal or restriction of P16 permits, and urged the Board to be ready for related appeals.
At the start of the Oct. 17 meeting, two public commenters raised concerns about proposed taxi-industry reforms and related litigation.
An unidentified speaker traced the history of taxi regulation from Proposition K through a 2010–2015 pilot program financed by a Federal Credit Union that the speaker said lent $125 million to the taxi industry; the speaker alleged the City collected $64 million in fees and said the credit union is pursuing litigation and taking back permits for nonpayment. The speaker warned that recent MTA actions propose restricting the use of older P16 permits (affecting airport trips) and could depress valuations of permits that cannot access airport work.
Carl McMurdo, who identified himself as a medallion holder and member of the Medallion Holder Association, said a superior-court judge (Judge Khan) found the credit union adequately alleged breach-of-contract and breach-of-implied-covenant claims in response to the City's demurrer, described the industry and enforcement background, and urged the Board office to be aware of pending legal actions that may lead to appeals or jurisdictional questions.
