SUPPORTS ITEM NO. CS&B COMMITTEE AGENDA ADMINISTRATIVE REPORT Date: November 16, 1995 TO: Standing Committee on City Services and Budgets FROM: Director of Finance and Director of Permits & Licenses SUBJECT: 1996 Fees for Vehicles for Hire RECOMMENDATION A. THAT license fees for Vehicles for Hire, contained in Schedule A of By-law No. 6066, be increased for 1996, reflecting a general increase of 7.0% except for dual taxicabs and taxicabs which will increase from $250 to $350, as outlined in Appendix I. B. THAT the Director of Legal Services be instructed to prepare the necessary By-law to implement the revised Fee Schedule on January 1, 1996. GENERAL MANAGERS COMMENTS The General Managers of Corporate and Community Services RECOMMEND approval of A and B. COUNCIL POLICY On January 17, 1991, Council resolved that every department/ board review services for which fees are now charged to ensure full cost recovery, or that fees are equivalent to competitive charges where the fee is of a market nature. PURPOSE The purpose of this report is to bring the license fees to current cost recovery levels, the Directors of Finance and Permits & Licenses recommend that the fees be increased by 7.0%, recognizing that the last increase took place in 1992. This fee increase reflects cost increases for negotiated wage increases and other operating costs, and is consistent with Council policy to maintain cost recovery. The proposed 1996 fees for all classes of vehicles for hire are set out in Appendix I. DISCUSSION The proposed 1996 fees for Vehicles for Hire will result in a 7.0% increase (rounded to the nearest dollar), to ensure cost recovery. Exceptions to the 7.0% increase are discussed below. Dual Taxicab & Taxicab Currently in the City of Vancouver there are 30 dual taxicabs (i.e., vans that can accommodate both people and wheelchairs) and 418 sedans. The administrative costs associated with licensing dual taxicabs and taxicabs has risen significantly in recent years. There are two principal functions carried out by the City of Vancouver with respect to taxicabs. 1. The Department of Permits & Licenses issues each taxicab a business license at the beginning of the year. This requires City staff to inspect, twice a year, the physical condition of each vehicle; examine the fare meter; and ensure that each taxicab is being maintained on a regular basis. With respect to the fare meter, City staff may be required to undertake several inspections during the year for each vehicle, for example, after major repairs or if the meter is believed to be malfunctioning. The City s administration maintains a detailed record on each taxicab operating in the City. The 1995 business license revenues for all taxicabs is $112,000. 2. The Vancouver Police Department has a Taxi Detail which issues each of the 3,171 taxicab drivers in the City a chauffeur s permit. For a new applicant this includes a criminal records check; written test; and fingerprinting. Each year thereafter a taxi driver must renew the permit. This requires the Police Department to undertake a criminal records check and update its filing system. Provisions of the Motor Vehicle Act, Section 32.(4), prohibit fees being levied for chauffeur permits. It is the recommendation of both the Directors of Finance and Permits & Licenses that the business license fee for taxicabs be raised from $250 to $350 for two reasons: (i) to adjust for the true administrative costs associated with issuing a license for taxicabs, and (ii) to reflect the average consumer price index for metropolitan Vancouver 1992 - 1996, which is being applied to all Vehicles for Hire business licenses. The proposed fee increase, beyond the adjustment for the negotiated wage increase from 1992 - 1996, will generate an additional taxicab business license revenue of $36,960. It is anticipated that total revenue for taxicab business licenses in 1996 will be $156,800. This will offset the cost of administering and regulating the taxicab industry in the City of Vancouver. The present and proposed Vehicle for Hire license fees are detailed in Appendix I. * * * * * APPENDIX I Page 1 of 2 Current and Proposed (1996) Vehicle for Hire License Fees ______________________________________________________________ Current Proposed Class of Vehicle Fee Fee Airport Shuttle Bus, for each vehicle $ 47.00 $ 50.00 Airport Transporter, for each vehicle 100.00 107.00 Antique Charter Limousine, for each vehicle 100.00 107.00 Charter Bus, for each vehicle 100.00 107.00 Charter Limousine, for each vehicle 100.00 107.00 Charter Van, for each vehicle 100.00 107.00 Courier Bicycle, for each vehicle 11.00 12.00 Driver Instruction Vehicle, for each vehicle 100.00 107.00 Dual Taxicab, for each vehicle 250.00 350.00 Funeral Cab, for each vehicle 100.00 107.00 Handicapped Cab, for each vehicle 100.00 107.00 Horse-Drawn Carriage 330.00 355.00 Luxury Limousine, for each vehicle 100.00 107.00 Motor Stage, for each vehicle 100.00 107.00 Pedicab, for each vehicle 100.00 107.00 for each person operating a leased vehicle on a daily basis 7.00 8.00 School Cab, for each vehicle 100.00 107.00 Appendix I Page 2 of 2 Current and Proposed (1996) Vehicle for Hire License Fees ______________________________________________________________ Current Proposed Class of Vehicle Fee Fee Taxicab, for each vehicle 250.00 350.00 if used also for displaying advertising material, for each vehicle so used, additional fee 20.00 21.00 Tow Truck, for each vehicle 100.00 107.00 U-Drive, for each vehicle with 4 or more wheels 27.00 29.00 for each other vehicle 8.00 9.00 Cost of Transfer of License 65.00 70.00 License fee to operate a vehicle licensed for one purpose, each additional purpose authorized by this By-Law 47.00 50.00 * * * * *