>> i just want you to be aware of the dynamic of this. these amendments are designed to buy off the potential legal challenge from the cab companies that said they would challenge it if this was not done. rtheir concerns are being taking care of. our drivers are not. 250,000 or 300,000 makes it that much more difficult for a buyer -- for a cabdriver to buy. a 20% transfer fee is already out rages. raising it to 30% is off the map. you should be looking at ways to get it down, not keep it the same period the fact -- not keep

it the same. it is a mockery of a medallion program. the other point i want to raise -- and i want to be really, really clear on this -- that nobody has owned up that this makes a drastic change in the driver's fund. nobody has said this. it changes the driver fund constitution -- contribution from a transfer fee contribution of 5% to a retransfer fee contribution of 5%. that means the medallions that come back to the city by subject of surrender will not be subject to a transfer fee. you are putting the drivers fund into starvation mode for the next 20 or 30 years with this proposal. this was the one light that came out of the medallions sales program in my estimation,

something that could be done for drivers who will never have a medallion. now you are stripping it, tossing it into the trash can. [applause] >> [reading names] >> good afternoon, directors, again. thoughtful comment -- i like to thank you for the thoughtful amendment that malcolm heinicke made. it helps. i would like to urge every one of you to get funding to start enforcing the city regulations and to push the mta to get an attorney. i mean, you've got hundreds of them out there. to improve business for taxis. this is your aim -- this is your

stated aim by the director. you want more taxis. you want more public transportation. you've got $20 million from us. under this proposal, you will get another $30 million. put some of it into enforcement. tomorrow if not today. you willfá make a happier publi, and you will make a happier taxi industry. thank you. director nolan: next speaker please. >> good afternoon. i have been a luxury driver since 1979. i have had mine medallions since 1996. -- i have had my medallion since 1996. there was a lot of time and effort that went into this, and we agreed to what some would say

a rather users speak -- user is -- usurous fee. we agreed to it because it seemed like the city needed the money, and we needed the program for an exit strategy. our a cardsñi are up to $82 a year. they were $18 and i started. but the city needs the money. it seems reasonable. we are willing to pay. we are willing to pay the 15%. xdnow, you want another $50,000 out of my pocket when it comes time to sell my medallion. at the same time, you want to eliminate other drivers who have

been in the industry for 20 years or more. the original idea was 1 for 1 -- the city would sell one and offer one to the waiting list. it seemed reasonable. the city needed the money. the city received the money. now, $50,000 more and the elimination of the waiting list -- at what point do we get a break? you have really got to think about this. this is serious business. we are not talking about a couple of people. we are talking about thousands in thisñi industry. i would like to say that you owe it to us. director nolan: next speaker please. >> one correction to the commissioner here -- in your

first report their, you talked about the driving requirements being established around 2005 -- in your first report there. the full time driver requirement was established in 1978 by proposition k, and it was the idea of that proposition that only full time drivers would hold the medallion, and they would be obtained at low cost, and that driver would be the guy operating the vehicle. he would have a direct interest in the vehicle, have control of that vehicle. i am a really big fan of proposition k. some years ago, i interviewed the author of the proposition, and one of the things i asked was, "are you satisfied with the way the proposition has turned out?" hew3 said, "absolutely not.

the city has done an extremely poor job of implementing it." one of the things was they were issuing medallions to people who were not taxi drivers. this has improved. it has gotten better. the other thing i want to clarify is when you pass this, the list is dead. it is dead. maybe you can do something in the future later -- you can do anything you want in the future later, but at this point, if you pass this, the list is dead. nobody on that list will get a medallion. so far, i have seen every speaker that has come up here has told you not to pass this. maybe you will get a cup -- a couple of company owners saying they like this. and for the commissioner to say that this is not political, that this is just his best judgment -- i do not buy it.

there is nothing more political than who gets the money. director nolan: next speaker please. >> good afternoon again. i am urging you to pass this item. allow me first to congratulate you and your staff and director hiyashi on the spectacularly successful pilot program. on the overhead are pictures of a new york city taxi medallion and a set of san francisco taxi medallions. new york manages its medallions as a brand. the tlc hired a marketing firm to create this new design for their medallion. they are extremely careful in everything they do regarding that very valuable brand. in fact, a taxi medallion is one of the most sought after assets in new york city.

it has a high value and increases in value over time. san francisco's medallions represent the brand as well. it is very much in the interests of the people of san francisco that the sfmta manage it carefully. however, its value is somewhat uncertain at the moment. i urge you to date not to devalue your brand -- i urge you today. it is in the interests of the people of san francisco that the value of this brand go always up and never down. please pass this item today. i believe that in doing so, you will ensure that there continues to be a robust interest in this spectacularly valuable asset. thank you. director nolan: we are going to

take just a brief break. ok? >> good afternoon. the purpose of a pilot program is to see if an experimental idea will work. i think the medallion sales pilot worked very well. the obvious thing to do is to stay the course. i do not think that the legislation in front of you really did that, but with the amendments director heinickefá s put in, it gets more to that realm. i still think that the 20% resale is out of line. in new york city, it is 5%. people purchasing these are still under a heavy burden, and i hope that will get reduced further. to me, using the drivers fund for down payment assistance would be a good idea. the ideal performance standard for companies is very critical. what is happening now is the

companies thatjf cut corners can offer way more money to medallion holders to all line with their companies -- a ligj -- align with their companies. i hope you will move on that soon. the medallion waiting list is a monster. i have a tremendous amount of and the nearest the top and zero for the people nearest the bottom. people are in limbo all their lives wondering where their name is going to come up. i know you are having this legislation, changing "shall" to "may." i think you should make a verbal commitment today that you will give some and come back and say how many. the guillotine was invented --

it is a great oxymoron, humane execution, but that is what it is for. i do not think you should pull the rug out right now. director nolan: ok, we will take a brief break and be back in about 10 minutes.

director nolan: ladies and gentlemen, we are back in session. please call the next several speakers. >> [reading names] >> good afternoon again. i want to thank you for tackling -- director nolan: we are back in session. thank you. >> go ahead.

>> ok, good afternoon. my medallion number is 778. i was one of the first hundred to receive a medallion and was thankful to do it. so i have some feelings for the guys that are on this list because that is how i got mine. i want to thank you all for taking on this big issue here. my concern is that it is a good start, but the problem that i see with this is at these prices, now that i'm getting to the age where i want to get out of the industry is -- how long will this money last me after i paid taxes and everything else? from my point of view, it will not last too long. after we get rid of all the guys that are sick or disabled, you are going to have a bunch of old

guys driving these cabs are around that will not want to surrender them because there will not be enough money to make it through the last 10 years of their lives, and this is not an old man's industry. now that youfá have the waiting list -- up to 17 years -- you've got another old man coming to replace the old man. you have a really big problem on your hands. you are going to replace us old guys now with other old guys. i think it is a good start, but i think you have to consider the amount at $150,000 will not last anybody any amount of time, especially in the bay area. that is all i had to say. thank you very much. >> [reading names]