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HomeMy WebLinkAboutCS 77-05REPORT TO COUNCIL Report Number: CS 77-05 Date: November 7, 2005 From: Debi A. Bentley, CMO, CMM III City Clerk Subject: Proposed Increase to Taxicab Fares File: L-2330 Recommendation: 1. That Report CS 77-05 of the City Clerk be received; and, That By-law 2206/86, be amended to provide for an increase to taxicab fares effective November 15, 2005 as noted within this report and outlined as Attachment #1. Executive Summary: The current taxicab tariff rates were set in February 2001. Due to the large increases in operating costs such as fuel and insurance, a recommendation is being made to increase the fares for hiring a taxicab. Financial Implications: n/a Background: The City of Pickering Taxicab Advisory Committee has received many requests for the increase of taxicab fares. There have been substantial increases to operating costs in recent months, reducing the already limited income earned by taxicab drivers. A comparison of other municipalities' tariffs is outlined below. It should be noted that several of the municipalities surveyed are presently reviewing their taxicab fares. Municipality Drop Fee Additional fare I km Total 5 km Total Pickering $2.45 $0.13/each additional 1/10 km $3.75 $8.95 Whitby $2.50 $1.50 / kilometer $4.00 $10.00 (under review) Richmond Hill $3.00 $0.25/each 200 m $4.00 $9.00 Markham $2.75 $0.25/each 190 m $3.82 $9.08 Ajax $2.50 $0.10/each 1/15 km (67 m) $4.00 $10.00 Oshawa $2.50 $0.35/each 230 m $3.67 $9.75 Report CS 77-05 Subject: Proposed Increase to Taxicab Fares Date: November 7, 2005 Page 2 The primary increase in operating costs is due to a large increase in the price of gasoline. In 2001, the price of gasoline averaged 67.3 cents per liter over a twelve month period. Current gasoline prices average $1.149 per litre. This is an increase of over 50 per cent. Insurance costs have also increased dramatically since 2001. In 2001, the average cost for an independent owner to insure a taxicab for one year was $1,800. Independent insurance rates for 2005 range from $3,300 to $4,000.00. Drivers leasing plates through brokerages are paying $4,080.00 per year under fleet insurance. The increase in fees over the four year period is almost 100%. Drivers have been notified to expect a further 22% increase for 2006. Proposed change: Drop Fee Additional fare 1 km Total 5 km Total Present fare $2.45 $0.13/each 1/10 km $3.75 $8.95 Recommended $2.75 $1.80 / kilometer $4,45 $11.65 Increase ($0.18 each 1/10 km) The proposed increase represents an 18.6 per cent increase in a one kilometer taxicab fare. A five kilometer trip would increase by 30.1 per cent. The recommended fee increase has been reviewed by the Taxicab Advisory Committee and has received its support. It is also the recommendation of the committee that the Taxicab Advisory Committee review taxicab fares annually and report back to Council on recommended fare adjustments due to economic factors. Approval of this proposed fare increase will be communicated to the public through Community Page advertisements, hand outs to passengers regarding the impending fare increase and new tariff cards. Attachments: 1. Revised Schedule "B" to By-law 2206/86 CORP0227-07/01 t Sn Report CS 77-05 Subject: Proposed Increase to Taxicab Fares Date: November 7, 2005 Page 3 Prepared By: I~im~erly Thomps/on Manager, By-law Enforcement Services Approved / Endorsed By: Debi A.~entley, C~'O, CMMIII City Clerk :kt Copy: Chief Administrative Officer Recommended for the consideration of Pickering City Council The/ma~O. Oui~Chi~Admi ~ ' ' CORP0227-07/01 057 BY-LAW NUMBER 6595/05 SCHEDULE "B" TARIFF OF RATES AND FARES FARES For the first one-tenth kilometre or part thereof For each additional one-tenth kilometre or part thereof For waiting time while under engagement, per minute $2.75 $0.18 $0.40 (incl. GST) (incl. GST) (incl. GST) RATES For each passenger in excess of four For each trunk exceeding 0.1 cubic meters For each piece of luggage not carried inside the taxicab $0.25 $0.60 $0.15 NOTES Maximum total charge under B. 1, 2 and 3 shall not exceed $0.60 for any trip No rate is chargeable for the carriage of a wheelchair accompanying a handicapped person.