ADMINISTRATIVE REPORT

Date: September 2, 1998
Author/Local: Greg Merchant
CC File No. 2801

TO:	Vancouver City Council
FROM:	Director of Finance in consultation with the General Manager of Community Services
SUBJECT:	Taxicab Fare Increase

RECOMMENDATION

A. THAT taxicab fares in the City be changed to the following rates (GST not included):

Flag Rate $2.15
Distance Rate $1.15 per kilometre
Waiting Time Rate $22.43 per hour
Dismissal Fee $2.00
Baggage Fee No charge

which provides an estimated 3% increase in industry revenues.

B. THAT the Director of Legal Services prepare the necessary by-law amendments to give effect to the increase as of September 1, 1998

GENERAL MANAGERS' COMMENTS

The General Manager of Corporate Services and the General Manager of Community Services RECOMMEND approval of A and B.

COUNCIL POLICY

On May 20, 1993, Council approved advising the Motor Carrier Commission that it supported a uniform schedule of rates for taxi companies in the lower mainland.

On December 9, 1997, Council approved advising the four licenced Vancouver taxi companies as well as the Motor Carrier Commission that it will not consider a fare increase until after the Motor Carrier Commission rules on the regional fare.

PURPOSE

This report is intended to provide Council with the background information regarding the approval of a fare increase by the Motor Carrier Commission, and recommend Council also adopt that fare increase.

BACKGROUND

The taxi industry in the City is regulated by Council and by the provincial Motor Carrier Commission. The City regulates taxi companies in Vancouver under the Vehicle for Hire By-Law. Among other things, the bylaw governs the rates that taxi companies can charge when picking up fares in the City.

The Motor Carrier Commission has the superior role in the regulation of the taxi industry in the lower mainland. Any action by Council on taxi fares is subject to approval by the MCC. As a result, the practice has been for Vancouver taxi companies wishing a fare increase to come first to Council for approval and then take the result to the MCC. Once the MCC has approved the increase, Council amends the Vehicle for Hire Bylaw.

In August 1991, Council approved a taxi fare increase of 4.7%. This increase was subsequently approved by the Motor Carrier Commission and applied on a regional basis. The new rates came into effect as of October 15, 1991.

In September, 1992, Council approved an additional fare increase of 3.8%. However, because of objections raised from other lower mainland taxi companies to the MCC, this increase was withdrawn. Even though it was approved by Council, the increase was never put in place in Vancouver.

In 1993, the Motor Carrier Commission held a general hearing to discuss various issues arising from the operations of the taxi industry. In May, 1993, Council approved the City's position in regard to various issues to be discussed at the hearing, one of which was that there should be a uniform rate structure for the lower mainland, including the Vancouver airport.

DISCUSSION

Review of Taxi Rates

In May 1997, the City received an application from a representative of the four licenced Vancouver taxi companies for a taxi fare increase. That increase included the following components:

Current Approved Increase
Rate Rate

GST NOT Included

Flag Rate $1.96 $2.3419.4%
Distance Charge (per km) $1.13 $1.2611.5%
Waiting Time (per hr) $18.79 $23.3624.3%

The Vancouver taxi companies also forwarded the same request to the Motor Carrier Commission. In total, the Commission received requests from 25 of the 26 taxi companies which operate in the Greater Vancouver Region.

On August 4, 1998 the Motor Carrier Commission ruled on these applications. The decision of the MCC is on file with the City Clerk's department. The Commission approved an increase in rates as follows:

Current Approved Increase
Rate Rate

GST NOT Included

Flag Rate $1.96 $2.159.5%
Distance Charge (per km) $1.13 $1.151.7%
Waiting Time (per hr) $18.79 $22.4319.4%

The Motor Carrier Commission also amended some miscellaneous fees. The fee for handling passenger baggage was eliminated and the dismissal fee was increased to $2.00. The MCC estimates that the revised rates will increase industry revenues by approximately 3%. For a basic 15 kilometre trip, the cost to the consumer will increase from $20.25 to $20.75 (2.5%).

Related Issues

In reviewing a request for fare increase in December of 1997, Council requested a report back on related taxi issues. The following represents a response in the order the issues were raised:

(a) the significant increase in complaints by users about taxi service:

In reviewing complaints received in the past, staff believe these can be attributed to a lack of training, as well as communication problems with the drivers. Staff believe that the taxi host program, completion of which is required to receive their chauffeurs' permits, has contributed to an improvement in this area.

(b) continued safety concerns which has resulted in several taxicabs being taken off the road following recent inspections:

As a result of last years Provincial Safety blitz, in conjunction with the M.C.C. and the City's Vehicle for Hire Inspection, approximately 50% of the vehicles have been replaced. Licence staff have also changed City policy for replacement of vehicles which now specifies that replacement vehicles can be a maximum of four (4) years old when put into service. It is expected that with the use of newer vehicles the previous safety concerns will be reduced.

(c) the inordinate number of drivers functioning with Taxi Host Identifications that are displayed inconsistently and /or say "temporary" identifications:

There are a number of reasons why drivers have temporary identification. Some of these include that the driver may be on a temporary work permit or only have a temporary drivers licence, that he/she is being monitored for a bad driving record or pending court case. It should be noted that the City issued identification is consistent with the status given to the taxi drivers by the Vancouver Police Taxi Detail when the Chauffeurs' permit is issued. Regarding the inconsistent display of the identification, Section 20 (23) ofthe Vehicle for Hire By-law specifies that the ID card is to be placed on the inside of the vehicle in a prominent location that is visible to passengers in the back seat. However, without a specific location in the By-law the option is left to the drivers who take liberties with its interpretation. A By-law amendment may be needed to clarify this regulation. The Vancouver Police Taxi Detail advise that they are enforcing this requirement to ensure the ID is being properly displayed.

(d) assistance has not been forthcoming from ICBC and the M.C.C. in joining Council with the development of the Taxi Host program on a region wide basis to improve the industry.

Although the M.C.C. participated in the creation of the Taxi Host Program they have not made it a condition of their licencing. They are aware of the position of the City of Vancouver and have chosen not to pursue implementation on a region wide basis.

CONCLUSION

Given Council's view on the appropriateness of a uniform regional rate, staff believe that Council should approve the rates as set by the Motor Carrier Commission.

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(c) 1998 City of Vancouver