ADMINISTRATIVE REPORT

Date: December 2, 1997

Author/Local:G. Merchant/7250

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

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RECOMMENDATION

THAT Council advise 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.

GENERAL MANAGERS’ COMMENTS

The General Managers of Corporate Services and the General Manager of Community Services RECOMMEND approval of the foregoing.

COUNCIL POLICY

On August 2, 1990, Council resolved that taxicab fares be reviewed on an annual basis.

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.

PURPOSE

This report is intended to provide Council with the background information regarding the application for a fare increase by the four Vancouver taxi companies, and recommend a course of action.

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, thepractice 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 July 1991, Council approved a taxi fare increase of 7%. This increase was subsequently approved by the Motor Carrier Commission and applied on a regional basis.

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 However, because of objections raised from other lower mainland taxi companies to the MCC, this increase was withdrawn.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

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 Proposed

Rate Rate Increase

Flag Rate $2.10 $2.5019.05%

Distance Charge (per km) $1.21 $1.3511.57%

Waiting Time (per hr) $20.10 $25.0024.38%

The proposed increases compare to local inflation of 13.5% since the last rate increase.

The Vancouver taxi companies have also forwarded the same request to the Motor Carrier Commission. The Commission is also considering an identical request from 15 other lower mainland taxi companies. The Commission has requested additional information from the industry which is due by the end of December. A ruling on the application is likely to be made later in January, 1998.

The timing of these applications raises the issue of when Council should consider the request from the four Vancouver companies. Based on Council’s policy on a regional taxi rate, it would seem appropriate to await the results of the MCC review. The Commission is in a better position than City staff to rule on the need for such an increase, from a regional perspective.

The City does have the opportunity to make its views known on the request being considered by the Motor Carrier Commission. However, staff have not identified any specific fare-related issues that would suggest such an intervention.

CONCLUSION

Given Council’s view on the appropriateness of a uniform regional rate, and given that any fare increase in Vancouver will still require MCC approval, staff believe that Council should delay consideration of the request from the Vancouver companies until after the MCC has made it’s ruling. If that results in an increase, staff will prepare the appropriate bylaw amendments for Council’s consideration.

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(c) 1997 City of Vancouver