Over the past few months, my staff and I have met with a diverse group of leaders and participants in both the taxi and livery car industries regarding the proposed "Five-Borough Taxi Plan" put forward by Mayor Michael Bloomberg.

We all agree that the status quo is unacceptable and cannot remain.  I have learned from my discourse with the various members of this industry that the current plan as formulated is also unacceptable.

The main point of contention in the city's proposed plan is the "linking" or "coupling" of the new "Outer-Borough Taxi" to the auction of new yellow medallions.  The city should go forward with its plan to auction 1,500 new yellow medallions, which estimates show will generate $1 billion to $1.5 billion in new revenue.  However, this auction cannot link the sale of new medallions to the sale of the new Outer-Borough Taxis. In addition, protections must exist to safeguard the value of the yellow medallion.  Hence, airports and the areas of Manhattan that are well served by the medallions should remain their exclusive realm.  Moreover, illegal street hails should face increased and severe penalties.

The manner in which these outer-borough medallions are brought to market must ensure that they are affordable to livery drivers, base owners and other members of the livery industry that are in good standing. The distributions of both the new yellow medallion and the Outer-Borough Taxis should contain mechanisms that facilitate ownership to members of the livery industry. Purchasers of the new medallions should also receive access to financing.  Again, it is imperative that the sale of the new Outer-Borough Taxi be executed in a manner that makes them affordable and gives preference to members of the livery industry.

We recommend that the Outer-Borough Taxi be limited to only do street hail service, and be specifically barred from answering prearranged calls. Those livery drivers who are unable or decline to pursue the Outer-Borough Taxi will face less competition for prearranged calls. Also, the Outer-Borough Taxi ought to contain all of the features provided by the yellow medallions, such as uniform color, meters, credit/debit card processing, GPS, service lights and so forth.

The framework provided is the result of the many conversations I've engaged in serving as a mediator at the request of not just the mayor, but my many friends in Albany and in the industry.  My goal is to share with you options that will allow these various groups to come together and design a solution that serves the best interest of people of the City of New York, the livery industry and the medallion industry.

Ruben Diaz Jr. is the Bronx borough president.