Brainstorming session aimed at taxi service

It's been nearly four months since Josh and Peggy Hertlein stopped running a taxi company in Whitefish, and people here from all walks of life want that void filled.

About 50 people representing Whitefish lodging, bars, transportation, seniors, tourism and city government met Nov. 12 at the Great Northern Bar to brainstorm the city's need for and lack of taxi service.

Four needs were identified — late-night bar patrons unable to operate a motor vehicle; seniors who could receive Meals On Wheels dinners at home but want to eat with other seniors at the Whitefish Community Center; disabled people who can no longer drive but want to work and participate in community life; and tourists without a vehicle who want to visit recreation sites or meet a plane or train.

"A taxi service would be wonderful for Whitefish," Whitefish Police Det. George Kimerly told the group. "We have happy drunks and angry drunks, and we confiscate lots of keys. On holidays, like Halloween, there's tons of people demanding a ride home, which we do sometimes as a public service. But we often have too much work to run a taxi service."

Besides vandalizing downtown signs and windows, sub-zero temperatures in winter can pose the threat of hypothermia for some bar patrons who find themselves downtown without transportation at 2 a.m., Kimerly said.

"There's a desperate need for a taxi service here," he said.

Government regulations

The only taxi service left operating in Northwest Montana is Flathead (or Glacier) Taxi, owner Randy Johnson told the group. It takes at least 25,000 people to support a taxi business, he said, ticking off the names of 10 Flathead area taxi businesses that failed over the past 20 years.

"That's a 100 percent mortality," he said. "It doesn't pay to run a taxi business here."

Starting out in Whitefish as Sober Chauffeur Taxi from 1982-1997, Johnson expanded into an overall transportation business that competes with Rocky Mountain Transportation after he bought several acres near Glacier Park International Airport. He now owns 23 vehicles, including buses and vans, and pays about $18,000 a year for his $5 million insurance policy.

Johnson said he'll do what it takes to defend his "monopoly" on taxi service to the airport. That privilege was granted by the Montana Public Service Commission (PSC), which can specify service areas, rates and other operating conditions.

That "monopoly," however, comes with conditions, Rocky Mountain Transportation owner Dale Duff pointed out.

"The Public Service Commission can grant a monopoly, but the company is obligated to serve that market," he said. "If they don't, then another person can come in and either buy or lease the existing permit or apply for a new permit."

Duff's family operated a taxi business here from 1946 to the 1980s. They got out after realizing they were losing about $8,000 a year, he said.

"It all boils down to money," he said, noting that PSC will examine a taxi company's financial statements to ensure it's viable.

What happened after the Duffs shut down their taxi service was a general erosion of taxi business opportunities here. It began with hotels and lodging operating their own shuttle services and continued after Eagle Transit began offering bus service in the valley, he said.

Duff's company filed a complaint with PSC in 1993 alleging that Grouse Mountain Lodge's shuttle service should be subject to PSC regulations. The lodge's four vans transported hotel guests between the lodge and the airport, the Amtrak station, downtown Whitefish and Big Mountain Village. A nominal fee was charged for rides downtown.

In two 3-2 decisions, PSC ruled that Grouse Mountain was not subject to PSC regulations when taking guests to and from the airport and the Amtrak station, but it was subject to regulations for other locations.

Grouse Mountain applied for a Class C permit to fill the gap. After a contested hearing, PSC granted a permit for trips to and from the airport, the Amtrak station and downtown. The lodge then took its case to Flathead County District Court.

After considering the lodge's tourist-related business, District Court Judge Lympus ruled that Grouse Mountain was not principally a motor carrier and that it provided "accommodative transportation," which was exempt from PSC regulations.

The Montana Supreme Court agreed, taking note that the lodge was "a four-season resort" and "promotes and packages recreational ventures for its guests."

"In this way, transporting guests to Big Mountain and downtown Whitefish promotes and advances Grouse Mountain business," Justice William Hunt wrote for the court in 1997.

The taxi business

Denny Cotter knows first-hand the problems facing a taxi service in Whitefish — including making $700 cab payments. During the nine months he ran Whitefish Taxi in 1998, he "broke lots of laws," including running passengers outside his approved service area, he told the group.

"I used to take people out to the airport and Big Mountain," he said, noting that Johnson sometimes saw him and knew what he was up to.

Cotter also said he used his pickup truck to take people up the Canyon for rafting when his other vehicles were busy.

PSC has granted three Flathead area companies the authority to run a taxi business. Johnson's Flathead Glacier Transportation LLC covers the entire county and may run to and from the Veterans Hospital in Fort Harrison. It may not transport passengers who both originate and terminate inside Kalispell.

Kalispell Taxi and Airport Shuttle Service is owned by James Michael. His PSC permit is limited to carrying passengers in a 25-mile radius (measured by road miles). Don Hines leased the permit from Michael, but PSC suspended the permit for six months on March 24 and again on Sept. 24. PSC will issue an order on March 24, 2010, asking Michael to 'show cause" why the permit should not be canceled.

The third taxi authority in the Flathead is held by Winter Sports Inc. The permit is limited to a 15-mile road radius centered on the Whitefish post office and to vehicles that can carry no more than eight passengers.

While Johnson's company is the only PSC-permitted taxi business left in the Flathead, he isn't the only person providing a "taxi service." Brian Murchie, also known as the "Ride Guy," has been picking up Whitefish bar patrons from 11 p.m. to 3 p.m. on Thursdays through Saturdays since August — and his service is free.

Murchie said he saw a need after Whitefish Taxi shut down and volunteered. He now has seven volunteers and hopes to eventually expand his service to seven days a week from 8 p.m. to 3 a.m. Volunteers, who use their own vehicles, include a veterinarian assistant, a waitress and homemakers.

Murchie, who works as a DJ and in radio commercial production, wants to set up a nonprofit to run his taxi service. He hopes Whitefish businesses will step up and help fund the volunteer taxi service, but he also thinks advertising promotions could be used to raise funding.

Finding a solution

Nonprofits are currently exempt from PSC regulations. They might have to comply with safety and insurance regulations through other state agencies.

A nonprofit solution was also suggested at last week's meeting by Whitefish mayor Mike Jenson — but after he made it clear that a city subsidy in today's economy "can't be the solution."

"Everyone wants the city out of their pocket," Jenson pointed out, and financial support for a taxi service "will need nearly unanimous support in the city."

Jenson noted that a nonprofit could be eligible for grants. City projects engineer Karin Hilding, who is working on a citywide transportation plan, described to the group a cornucopia of grants that a nonprofit could possibly use to stay in operation.

Duff, who once served on the Eagle Transit board and generally supports the public transit service, said he opposes city subsidies for a taxi service in Whitefish. It would hurt other transportation companies, he said.

The city, however, already subsidizes transportation. According to city manager Chuck Stearns, the city gives $9,300 to Eagle Transit and $7,500 to the SNOW Bus, which transports skiers and resort area workers between downtown and the Big Mountain Village.

Eagle Transit, which also receives county tax revenue, offers a "Dial-A-Ride" service that will pick up people at their homes in Whitefish on Mondays, Wednesdays and Fridays. Riders need to call 24 hours in advance, Eagle Transit's Bert Hauser said, and their homes must be within three-quarters of a mile of Eagle Transit's operating area.

Kathy McGrath, who hosted last week's meeting, afterward called it "embarrassing" that Whitefish is a resort town and doesn't have a taxi service.

Whitefish Convention and Visitor Bureau executive director Jan Metzmaker wants to address that situation — that's one reason she organized last week's meeting. She said she will hold another meeting and keep participants informed by e-mails.