ADMINISTRATIVE REPORT

Date: February 26, 2001
Author/Local: A. Straka/7546

RTS No. 1900

CC File No. 2801

T&T: March 13, 2001

TO:	Standing Committee on Transportation and Traffic
FROM:	Chief License Inspector in consultation with the Director of Finance and Director of Legal Services
SUBJECT:	Taxicab Distance Fare Increases

RECOMMENDATION

A. THAT taxicab meter fares and time or distance fares in the City be increased to the following rates, respectively (excluding GST):

POINT TO POINT ON METER:

For the first 80 metres or fraction thereof........................................ $2.15
For each additional 80 metres or fraction thereof........................... .10
For each 16 seconds of stopping or waiting time.............................. .10
TIME OR DISTANCE:

For the first hour or fraction thereof............................................... $22.43

or for each 80 metres, whichever is greater........................... .10

For each succeeding quarter hour or fraction thereof.................... 5.61

or for each 80 metres, whichever is greater.......................... .10

B. THAT the Director of Legal Services be instructed to bring forward the necessary by-law amendments to give effect to the increases as of March 15, 2001.

GENERAL MANAGER COMMENTS:

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

COUNCIL POLICY

Council, by way of the Vehicles for Hire By-Law, No. 6066, consolidated for convenience only to May 2, 2000, regulates taxi companies in Vancouver. The rates that taxi companies can charge when picking up fares in the City are governed by this by-law.

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 licensed Vancouver taxi companies, as well as the Motor Carrier Commission, that it would not consider a fare increase until after the Motor Carrier Commission rules on the regional fare.

On September 15, 1998, Council approved changes in the City's taxicab fare rates , as per a ruling by the Motor Carrier Commission, which provided an estimated 3% increase in taxi industry revenues. The changes included a 9.5% increase in the flag rate, a 1.7% increase in distance charge (per km) and a 19.4% increase in waiting time (per hr).

PURPOSE

The purpose of this report is to provide Council with background information on an impending region-wide increase in taxicab distance rates only, approved by the Motor Carrier Commission (MCC) on December 18, 2000. The supplemental tariff is to come into effect on March 15, 2001 and will be applied uniformly throughout the Lower Mainland region. It is recommended that Council adopt the fare increase as approved by the MCC.

BACKGROUND

The taxi industry in Vancouver is regulated by Council, through Vehicles for Hire By-Law No. 6066, and by the provincial Motor Carrier Commission (MCC). The MCC 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. Once the MCC has approved the increase, Council can amend the Vehicles for Hire By-Law.

On September 15, 1998, Council approved taxicab fare increases adopted by the MCC a month earlier. The flag rate was increased by 9.5 % to $2.15, the waiting time (per hr) was increased by 19.4% to $22.43 and the distance charge (per km) was increased by 1.7% to $1.15. The MCC also eliminated the passenger baggage handling fee and raised the dismissal fee to $2.00. The revised rates were expected to increase industry revenues by approximately 3%.

DISCUSSION

Recently, the Motor Carrier Commission, through its Taxi Advisory Committee, initiated a thorough review of provincial taxicab fare structure policies, processes and procedures which included discussions with all affected stakeholders and government agencies. This review concluded that there are some taxicab companies which have not had a rate increase since 1991. To remedy this situation, the MCC approved a supplemental tariff to taxicab rates on December 18, 2000 allowing B.C. Taxicabs an increase of 11 % (minus any increases approved since 1992) to distance rates only. Because of the 1.7 % increase in the taxicab distance charge approved by Council on September 15, 1998, Vancouver taxicab companies will be permitted a maximum 9.3% increase in their distance rates further to approval from the MCC and Council.

The increase approved by the MCC applies only to distance rates as these have been impacted the most by increasing fuel prices. Flag and waiting rates are to remain the same. The 11 % figure was based on the Consumer Price Index, which has increased by the same percentage since 1992.

The MCC believes that the proposed rate increase balances the commission's mandate to foster an economically sound and safe transportation industry with the objective of promoting reasonable and just charges for passenger transportation services.

CONCLUSION

As a result of the MCC's recently approved increase to taxicab distance rates, Vancouver taxicab companies will be permitted a maximum 9.3% increase in their distance rates further to approval from the MCC and Council.

Given that the MCC's approved taxicab distance rate increase is consistent with the 11% increase in the Consumer Price Index since 1992, is fair to both consumers and the taxi industry and will be applied uniformly throughout the Lower Mainland region, staff believe that Council should give consideration to the approval of the distance rate increase as set by the Motor Carrier Commission.

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(c) 1998 City of Vancouver