|
CITY OF VANCOUVER ADMINISTRATIVE REPORT |
Report Date: |
February 28, 2005 | |
Author: |
Alena Straka | |
Phone No.: |
604.871.6683 | |
RTS No.: |
04902 | |
CC File No.: |
2801 | |
Meeting Date: |
March 15, 2005 |
TO: |
Vancouver City Council |
FROM: |
Chief License Inspector |
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 71 meters or fraction thereof |
$2.44 |
For each additional 71 meters or fraction thereof |
.10 |
For each 14 seconds of stopping or waiting time |
.10 |
TIME OR DISTANCE: |
|
For the first hour or fraction thereof
|
$25.20
|
For each succeeding quarter hour or fraction thereof
|
6.30
|
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 by March 27, 2005.
GENERAL MANAGER'S COMMENTS
The General Manager of Community Services RECOMMENDS 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.
On January 14, 2003, Council approved a 3.34% rate increase in taxicab fares, approved by the former Provincial Motor Carrier Commission on October 21, 2002, to be applied uniformly throughout the Lower Mainland Region.
On June 8, 2004, Council endorsed a surcharge of $0.15 to be added to taxicab meter fares until March 26, 2005 to offset costs associated with the installation of digital cameras in taxicabs. This temporary surcharge was approved by the Motor Carrier Commission on February 27, 2004.
PURPOSE
The purpose of this report is to seek Council's endorsement of a 8.77 percent rate increase in taxicab fares, approved by the Provincial Passenger Transportation Board in March 2005. 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 Passenger Transportation Board.
BACKGROUND
The taxi industry in Vancouver is regulated by Council, through Vehicles for Hire By-Law No. 6066, and by the provincial Passenger Transportation Board (PTB). However, the PTB 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 PTB, while taxicab rate increases approved by the PTB must be reflected in the City's Vehicles for Hire By-Law. Although the PTB has superior authority for taxicab tariffs, the City's continued role in amending its bylaw to reflect fare increases set by the Province is important as the City provides the taxi tariffs and conducts taxicab vehicle checks and taxi meter testing bi-annually.
On June 8, 2004, Council endorsed a temporary surcharge of $0.15 on taxi flag rates, effective until March 26, 2005, to offset costs associated with the installation of digital cameras in taxicabs. The most recent permanent taxicab fare increase, approved by Council on January 14, 2003, increased taxicab tariffs by 3.34%.
DISCUSSION
The Passenger Transportation Board uses the Taxi Cost Index or TCI to determine the level of future taxi fare increases. The 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 streamlines 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 are 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, are used for each component to determine annual differences in cost.
Application of the index this year will allow taxicab operators to apply for a rate increase of 8.77% as approved by the Passenger Transportation Board in March 2005. The increase is to apply to all metered rates ie. distance rate, flag rate and wait time rate with the Passenger Transportation Board retaining the right to approve minor adjustments to actual TCI rates to accommodate meter-setting requirements.
The Passenger Transportation Board believes that the proposed rate increase balances the Board'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 the Vancouver Taxi Association of the taxi companies' application to the Passenger Transportation Board for a rate increase of 8.77%. All companies wish to raise their tariffs effective March 27, 2005.
CONCLUSION
Given that the Passenger Transportation Board's 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 in 2003, staff recommend that Council approve a 8.77% taxi fare increase to be applied to all metered rates including distance rate, flag rate and wait time rate.
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