Vancouver City Council |
ADMINISTRATIVE REPORT
Date: December 19th, 2002
Author/Local: A. Straka/6427
RTS No. 03144
CC File No. 2801T&T: January 14, 2003
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 Rate Increase
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 77 meters or fraction thereof......................................... $2.24
For each additional 77 meters or fraction thereof............................. .10
For each 15.53 seconds of stopping or waiting time............................ .10
TIME OR DISTANCE:For the first hour or fraction thereof................................................ $23.18
or for each 77 meters, whichever is greater........................... .10
For each succeeding quarter hour or fraction thereof .................... 5.80
or for each 77 meters, 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 proposed taxicab rate increases.
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).
On March 13, 2001, Council approved an increase in the City's taxicab distance rates reflecting an MCC 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 were permitted a maximum 9.3% increase in their distance rates further to Council's approval.
PURPOSE
The purpose of this report is to seek Council's endorsement of a 3.34 percent rate increase in taxicab fares, approved by the Provincial Motor Carrier Commission on October 21, 2002. This rate increase is to 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-LawNo. 6066, and by the provincial Motor Carrier Commission (MCC). However, 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, while taxicab rate increases approved by the MCC must be reflected in the City's Vehicles for Hire Bylaw. With the MCC as the superior authority for taxicab tariffs, the City's continued role in amending its bylaw to reflect fare increases set by the Province has been questioned by Council in the past. The time and effort of both City staff and Council in amending the Vehicles for Hire By-Law each time the MCC approves an increase in taxicab tariffs could potentially be used more effectively in addressing other important licensing issues. The City's continuing role in the administration of taxi rate fare increases will be revisited once the Province has completed its review of the Motor Carrier Commission and has implemented all changes to the organization as a result of the same.
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%.
Further to a region-wide increase in taxicab distance rates approved by the Motor Carrier Commission on December 18, 2000, Council approved a maximum 9.3% increase in distance rates only for Vancouver taxicab companies on March 13, 2001.
DISCUSSION
Recently, the Motor Carrier Commission has approved a new mechanism to determine the level of future taxi fare increases referred to as the taxi cost index or TCI. The new taxi cost index was developed in consultation with the taxi industry as well as other stakeholders, including representatives from persons with disabilities and seniors organizations, municipalities, public transit and other related agencies. It is intended to streamline the fare review process for taxi companies and the Motor Carrier Commission. The TCI has the following four components as weighted percentages: wages (30%); fuel (15%), insurance (8%) and the consumer price index (47%). These components were based on information provided by industry representatives from prince George, Kelowna and Vancouver. Various statistical sources, including average weekly wage statistics and weekly pump prices for fuel, were used for each component to determine the difference in cost between 2000 and 2001.
Application of the index this year will allow taxicab operators to apply for a rate increase of 3.34%, as approved by the Motor Carrier Commission on October 21, 2002. The increase is to apply to all metered rates ie. distance rate, flag rate and wait time rate with the Motor Carrier Commission retaining the right to approve minor adjustments to actual TCI rates to accommodate meter-setting requirements.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.
The City has received notice from three of the four licensed taxicab companies in Vancouver of their application to the Motor Carrier Commission for a rate increase of 3.34% based on the new taxi cost index. All three companies wish to raise their tariffs in early 2003.
CONCLUSION
Given that the MCC's new taxi cost index is based on wages, fuel, insurance and the consumer price index, all of which have increased since the last taxicab tariff rate increase, staff believe that Council should give consideration to the approval of the 3.34 percent taxi fare increase to be applied to all metered rates including distance rate, flag rate and wait time rate.
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