(rdnewsNOW)

By Ashley Lavallee-Koenig

45 PLATES OVER THREE YEARS

City council approves increased plate-draws for vehicles for hire

May 28, 2024 | 4:17 PM

Red Deer’s vehicle for hire industry will gain more drivers after city council approved new plate draws for the next three years.

On May 27, city council unanimously passed Vehicle for Hire Bylaw 3706/2024, which designated that the city holds one annual draw for 15 plates for three consecutive years, for a potential total of 45 new drivers.

The bylaw introduces changes to the last policy adopted in 2020 and implemented in 2021, which originally aimed to level the playing field through regulation after transport network companies (TNC) like Uber were introduced to the market.

Initially, the proposition included five options for councillors to evaluate, with a phased approach becoming preferable. The suggestions for a phased approach was for 20 plates per year, which Councillor Victor Doerksen moved to amend to 10 plates per year. Coun. Cindy Jeffries moved to amend Doerksen’s amendment to 15 plates per year, which passed 7-2.

“To try to find the number that works is a little bit of a shell game and a guess on our part for sure. I just like the idea of opening it and kind of letting an even flow come about into the community as we move to an unregulated, cap free system a few years down the road,” said Councillor Dianne Wyntjes in support of Jeffries’ motion.

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The amended bylaw then went through first and second readings, which council passed unanimously.

Given that the last plate draw that occurred was for only five plates, Doerksen questioned why the draw would jump to 20 plates. Parking and Licensing Supervisor Amy Fengstad explained that members of the industry had found the first draw lacking in growth opportunities.

“…whereas 20 may be a number where we can visualize and see the differences it’s making for our service levels, customer options, and free enterprise. So, trying to balance and recognize that five may not have been enough and trying to find that magic number of where we see what this will do for the industry,” Fengstad said.

The long-term goal of the bylaw is for the City to completely cease the plate-cap and ease out of regulating the industry at the end of the three years to encourage competition and better service for consumers.

The previous bylaw, which introduced the plate-caps based on a ratio of one plate for every 750 residents, focused on safety, customer service, equity, balancing needs, and cost versus opportunity for income.

City administration reviewed the impacts of the bylaw and put recommended changes forward to city council on April 15, 2024, when first reading occurred. It returned on April 29, 2024, but second and third reading were postponed by council’s request for more information on how a gradual phase out would work.

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