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HomeMy WebLinkAboutBYL 08-23 Report to Council Report Number: BYL 08-23 Date: November 27, 2023 From: Paul Bigioni Director, Corporate Services & City Solicitor Subject: Deferral of Implementation of Accessible Service Supplement Fees Vehicle for Hire By-law -File: L-2000-002-23 Recommendation: 1. That Report BYL 08-23 respecting a deferral of the implementation of the Accessible Service Supplement enacted in the Vehicle for Hire By-law 7739/20 be received; 2. That the implementation and collection of the Vehicle for Hire Accessible Service Supplement be deferred until January 1, 2025; and, 3. That appropriate City of Pickering officials be authorized to take the actions necessary to implement the recommendations in this report. Executive Summary: The City’s Vehicle for Hire By-law was enacted on February 24, 2020. Included in the By-law is an Accessible Service Supplement to be paid by all vehicle for hire license holders that do not provide accessible service. The Accessible Service Supplement will be used to fund an Accessible Taxicab Incentive Program, outlined in Section 93 of the Vehicle for Hire By-law. Based on the current economic challenges faced by the Vehicle for Hire Industry caused by the COVID-19 Pandemic, staff recommend deferring collection of the Accessible Service Supplement until January 1, 2025. Financial Implications: The Accessible Service Supplement was not budgeted as revenue generated for the City. In the initial report to Council regarding the Vehicle for Hire By-law, staff estimated approximately $28,000.00 would be generated annually through the Accessible Service Supplement. This was based on a seven cent per trip fee to be paid by Personal Transportation Companies, as well as Accessible Service Supplements applicable to Taxicab Brokerage fees of $2,500.00 and Taxicab Plates of $75.00 per plate. Deferring the collection of the Accessible Service Supplement will delay the implementation of the Accessible Taxicab Incentive Program. Notwithstanding that, the economic pressures currently facing the Vehicle for Hire industry call for some type of financial relief. BYL 08-23 November 27, 2023 Subject: Deferral of Implementation of Accessible Service Supplement Fees Page 2 Discussion: The Vehicle for Hire Licensing By-law prescribes an Accessible Service Supplement fee to be applied to all vehicles for hire that do not provide accessible services. Fees charged in relation to the Accessible Service Supplement are as follows: 1. Personal Transportation Companies (PTCs) are subject to a seven cent per trip fee; 2. Taxicab Brokerages that do not have at least ten percent (10%) of their fleet as accessible vehicles must pay $2,500.00 per year; and 3. Individual Taxicab Plate Licensees that are not affixed to an accessible vehicle must pay $75.00 annually. The funds raised through the Accessible Service Supplement are to be used to fund an Accessible Taxicab Incentive Program. Section 93 of the Vehicle for Hire By-law indicates that the Accessible Taxicab Incentive Program may include, but is not limited to: i) requirements for grant or incentive eligibility; ii) criteria for receiving any incentive or grant; iii) the amount and frequency of the disbursement of any incentive or grant, including pro-rated or discretionary amounts; iv) sanctions, including reductions in the amount of any incentive or grant for non- compliance with the conditions of the program; and, v) reporting or auditing requirements for brokerages, PTCs, and Taxicab Plate Licensees. The Accessibility Advisory Committee, City staff and the Vehicle for Hire Advisory Committee will be tasked with determining how the fund may be best utilized to improve accessible services provided to Pickering residents. Both the Personal Transportation Companies and the taxicab industry have seen a severe reduction in their business due to the COVID-19 Pandemic. While there has been an increase in revenue to this industry, it is still suffering. The taxicab industry in the City of Pickering has changed drastically and should this supplement be implemented it would be an extreme financial hardship on the taxicab industry. Deferring the implementation of the Accessible Service Supplement is a reasonable measure to assist in mitigating the financial hardship being experienced by the taxicab industry. Currently, there is a drastically lower number of Taxicab Plates attached to vehicles and providing service in the City. City staff will continue to monitor and review the industry conditions during 2024 to get a better understanding of industry trends. The deferral of this supplement will allow the industry to continue to operate without any additional costs for 2024. This will provide all members of the industry an opportunity to expand their business models without and additional costs. It is possible that staff will recommend that the supplement is removed from the by-law in a future report. Only very large municipalities have continued with this type of program. Municipalities the size of Pickering have eliminated this type of supplement as there is no reasonable ability to implement and utilize any funds generated by the supplement. It is seen as an additional burden to the taxicab industry which is suffering greatly. BYL 08-23 November 27, 2023 Subject: Deferral of Implementation of Accessible Service Supplement Fees Page 3 Attachment: 1. Not applicable. Prepared By: Approved/Endorsed By: Original Signed By: Original Signed By: Jason Litoborski, CPSO Paul Bigioni Manager, Municipal Law Enforcement Services Director, Corporate Services & City Solicitor Recommended for the consideration of Pickering City Council Original Signed By: Marisa Carpino, M.A. Chief Administrative Officer