Nome Common Council revamps taxicab ordinance

For more than a year the Nome Common Council had wrestled with the task updating Nome’s taxicab licensing ordinance.
On Monday, the deed was done as the council unanimously voted to get rid of a cap on the number of taxicab licenses and to modify signage requirements on cabs to simplify the city’s role in regulating the cab business in Nome.
Up until now, the city regulated how many taxicab licenses were available. The number was capped at 11. Of these 11, six licenses were held by Checker Cab; the remaining five licenses were revoked from Mr. Kab in 2020.
According to the old ordinance the council was supposed to determine from time to time the number of available licenses after an economic analysis to make sure there are not more licenses than the market can viably sustain. The amended ordinance resolution states that the required  economic analysis of the cab industry would be costly. With the removal of a cap, this economic analysis is no longer needed.

Here is what’s new
There is no longer a lottery necessary to compete for a limited number of cab medallions, or licenses, as the council got rid of the cap on licenses.
Applicants need to submit current vehicle registration, commercial liability insurance, and every insurance must contain a clause that obligates the insurer to notify the city in writing no less than 30 days before the insurance expires or is terminated.
New is also that the city manager – not the chief of police – approves  a qualified mechanic to perform vehicle inspections to make sure the taxi is in safe and legal operating conditions.
To make sure that taxicabs are identified as such, the city requires that cabs display on the back of the taxi a four-inch vehicle identification number.
The council in subsequent discussion landed on the decision that the number would be the cab company’s sales tax identifier plus a fleet number.  Also, all vehicles used for cab services must display the name of the cab company on the vehicle.
The amended ordinance went into effect on Monday.

What’s next?
In a memo to the Nome Common Council, City Manager Lee Smith noted that there will be a 30-day grace period to allow all prospective taxicab companies to follow and comply with the amended ordinance. The city manager considers extra time needed on a case by case basis. On March 3, the city begins enforcing all taxicab license regulations. “Any non-licensed vehicles or non-licensed chauffeurs will be subject to citations,” the memo says.

The background
In addition to the city not enforcing uniformly its own laws, a taxi feud between two operators had festered over time. Steven Longley, who in the past held taxi licenses, operated a gray-zone chauffeur service, giving “rides for donations” – he donated proceeds of the rides to the Nome-Beltz cheerleading team – and dared the city to stop him with a court order. He voluntarily quit the rides for donations for a few months until he started it up again recently.
The only cab service still running was Checker Cab. Its owner Rodney Jones did not re-apply at the beginning of 2026 to keep its six licenses. The relationship between city officials and Jones had deteriorated over time. Jones had fallen behind on sales tax payments to the city when the city enacted a new, online-only collection system, which many taxpayers had difficulty with navigating. He caught up with payments and the council forgave him late fees and penalties. There was also disagreement on the inspection requirements, as Jones, who also runs an auto repair shop, did his own inspections to keep the cabs running. On the flip side, as council member Scot Henderson had pointed out in discussion on the same topic a year ago, the city has not been consistent enforcing ordinances on the books. “One could argue that, well, Checker Cab hasn’t maintained compliance. I would also argue the city has not required that,” Henderson said in a council meeting in February 2025. “So, don’t penalize the operator if the city has not enforced the ordinances that are currently on the books.” In Checker Cab’s defense, Jones maintained back then that he operates in good faith, has done so for over 30 years and is providing an essential service to this town. He argued Checker Cab sometimes responding in medical situations, getting people to the hospital, picking up those walking on the side of the road from the airport, helping people out of snowbanks and getting them home safe.
Fast-forward to 2026. Due to unresolved grievances with the city, Checker Cab stopped running cabs after January 1, 2026. With no alternative or public transportation system in place, people without a mode of transportation were stranded. Checker Cab adopted Longley’s model and began offering “rides for donations.”
This forced the council to act and the urgency of amending the taxicab ordinance became apparent. Jones did not appear before the city council in the latest rounds of the discussions on the taxicab ordinance amendment.
According to the amendment that the council passed on Monday, the removal of the cap on licenses “will allow for new taxicab providers to enter the market, increasing public safety and convenience.”