County Considers Backup Taxi Plan
Council Proposes 200 New Licenses

By Michael Tunison
Washington Post Staff Writer
Thursday, November 15, 2007

Montgomery County officials are considering a proposal to issue up to 200 taxi licenses in case the financially troubled Barwood company goes out of business.

The council's Transportation and Environment Committee was scheduled to discuss the issue today. "Basically, having these 200 passenger vehicle licenses is the county's contingency plan in case the Barwood bankruptcy situation doesn't work out," said Montgomery County spokesman Patrick Lacefield. "We have a transportation structure in the county that includes taxis and we don't want to be left high and dry."

Barwood, the largest taxi fleet in the county, with 360 of the available 648 licenses, filed for Chapter 11 bankruptcy reorganization in January. The company announced plans to transform itself into a cooperative, in which drivers would purchase their cars and licenses instead of renting them daily. Columbia Bank holds a lien against the company, and county officials said they are losing confidence that Barwood is going to be able to resolve its financial problems.

Representatives from Barwood declined to comment.

The next-largest license holder is Regency, with 91. Action Taxi holds 40 licenses, Sun Cab has 25 and Montgomery Taxi Cab has 6. The remaining licenses are held by affiliates of those companies, officials said.

Under the proposed bill, introduced last month at the request of County Executive Isiah Leggett (D), no company would be permitted to received more than 40 percent of the additional 200 licenses. The companies also would be required to provide services affiliated with Call 'N Ride and the Medicaid programs. None of the licenses would go to individuals.

The county also issues taxi licenses every two years to meet the needs of the county's growing population. With 70 licenses issued in December 2006 and 65 more planned for next year, public information officer Esther Bowring said officials are confident that they would have the flexibility to deal with taxicab transportation if all or some of Barwood's fleet went out of service.