HIGHTSTOWN – One week after the Borough Council approved a revised taxi ordinance without lowering the insurance requirements, Mayor Bob Patten has invited the president of a taxi insurance company to speak to the governing body about it, according to the borough clerk.
And that move is strongly opposed by at least one member of council who said the entire idea is “improper.”
Another, who is open to hearing the presentation, called the entire taxi situation a “mess.”
Meanwhile, all seven companies that applied for licenses to operate cabs in the borough for 2009 and 2010 had their applications sent back to them Wednesday because none of them had insurance that meets the local $100,000 coverage requirement, $65,000 higher than the state regulation, said Deputy Clerk Leona Baylor.
According to Borough Clerk Debra Sopronyi, the mayor invited Frank Morelli, president and chief executive officer of Wall-based Taxisure Exchange, to come before the council during its next meeting Dec. 7.
Councilwoman Isabel McGinty questioned Tuesday whether a presentation by Mr. Morelli would be appropriate, especially since any suggestions the CEO might make could be construed as simply aiding his business.
”Surely this isn’t going to happen,” Ms. McGinty said. “To have a representative from a particular business come before us to make pitches that are geared toward their individual business, how is this an appropriate presentation?”
The councilwoman said she had a hard time believing such a presentation would even make it onto the meeting agenda.
”Anyone with common sense would see why this can’t happen. I would encourage others to consider the precedent that might be set,” Ms. McGinty said.
The issue stems from questions over whether the insurance requirements spelled out in the borough’s taxi ordinance could ever be met because taxi insurance policies are written differently than consumer policies, Ms. Sopronyi said.
The borough’s ordinance requires a minimum of $50,000 coverage for property damage and $100,000 coverage for personal injury, similar to how coverage is expressed in consumer pollicies.
Taxi insurance, however, is normally written with one general limit that covers both property damage and personal injury, according to Skip Soberg, vice president and senior underwriter for Taxisure Exchange.
He confirmed Tuesday that Mr. Morelli was invited and does plan to speak to the council.
But he said the difference in how a policy is written shouldn’t cause a problem for local cab companies as long as the total coverage in the taxi policy matches what is required by the borough.
So why does the mayor want the presentation?
No one is apparently sure, and Mayor Patten did not return calls seeking comment.
Councilman Mike Theokas said he’s willing to hear what Mr. Morelli has to say, but questioned why it would be necessary since the council already had decided the issue.
”I don’t have a problem with it. I’m always willing to get more information. I don’t know where it’s going, though,” he said. “Council was pretty adamant in its position when the ordinance was adopted.”
The council approved a revised taxi ordinance at its Nov. 16 meeting by a 5-1 vote and chose not to lower the $100,000 minimum personal injury insurance requirement. That was despite four taxi companies saying the increased premiums would force them out of town.
