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Home My WebLink AboutCS 46-08 REPORT TO EXECUTIVE COMMITTEE Report Number: CS 46-08 Date: October 14, 2008 9 From: Gillis A. Paterson Director, Corporate Services & Treasurer Subject: Proposed Increase to Taxicab Fares File: L-2330 Recommendation: 1. That Report CS 46-08 of the Director, Corporate Services & Treasurer be received; and, 2. That the draft by-law, included as Attachment #1 to Report CS 46-08, to amend By-law #6702/06 to provide for an increase to taxicab fares effective November 1, 2008 be enacted. Executive Summary: The current taxicab tariff rates were set in November 2005. Due to increases in fuel costs, a recommendation is being made to increase the fares for hiring a taxicab. Financial Implications: This report does not contain any financial implications for the City of Pickering Sustainability Implications: implications. This report does not contain any sustainability Background: The City of Pickering Taxicab Advisory Committee has received many requests for the increase of taxicab fares due to the ongoing increases to gasoline costs. A comparison of other municipalities' fares is outlined below. It should be noted that several of the municipalities surveyed recently increased their taxicab fares, including Ajax, Whitby, and Clarington. Oshawa, Richmond Hill & Markham's are under review. Report CS 46-08 Date: October 14,2008 Subject: Proposed Increase to Taxicab Fares '1 '(I I '..' '._' Page 2 Munici ali Dro Fee Additional fare 1 km Total 5 km Total Pickerin $2.75 $1.80 er km $4.55 $11 .75 Whitb $3.50 $2.00 er km $5.50 $13.50 Richmond Hill $3.00 $1.50 er km $4.50 $10.50 Markham $3.00 $1.50 er km $4.50 $10.50 Aax $2.90 $2.00 er km $4.90 $12.90 Oshawa $2.65 $1.70 er km $4.35 $11.15 Clarin ton $2.80 $2.00 er km $4.80 $12.80 At the time of the last taxicab fare increase, gasoline prices were at $1.149 per litre. Current gas prices fluctuate from $1.20 to $1.35 per liter. This is an increase ranging from 5 - 15 per cent. At a meeting of the Taxicab Advisory Committee on July 16, 2008, proposed increases to taxicab fares were discussed. There was no consensus among committee members, as some wished to increase the drop rate to as much as $3.50 (a 27% increase), while others supported a more moderate increase in the drop rate to $3.15 (a 15% increase). All members agreed to increase the rate per kilometer from $1.80 to $2.00. The table below outlines the two fees discussed and the total fares for each. Drop Fee Additional fare 1 km Total 5km Total Present fare $2.75 $1.80 per km $4.55 $11.75 Proposal 1 $3.15 $2.00 per km $5.15 $13.15 Proposal 2 $3.50 $2.00 per km $5.50 $13.50 Municipal Law Enforcement Services staff support the first proposal, increasing the drop rate to $3.15. The proposed increase represents a 15 per cent increase in a one kilometer taxicab fare. A five kilometer trip would increase by 12 per cent. The increase would still set City of Pickering Taxicab fares higher than all other municipalities in the Region with the exception of Whitby. The increase to $2.00 per kilometer provides a 10% increase in the portion of the fare where gasoline costs will actually be reflected in the trip. A higher drop fee means all taxicab users pay more, regardless of how far the trip is. One of the comments made by members of the Taxicab Advisory Committee members was that trips are too short to make enough money. Staff believe that since the proposed increase is based on the premise of increased gasoline costs, increasing the per kilometer fee better reflects where actual gas usage is a factor in the total fare. CORP0227-07/01 Report CS 46-08 Date: October 14, 2008 Subject: Proposed Increase to Taxicab Fares Page 3 '1 1 Concerns were also raised that increasing fares too high could negatively impact customers, many of whom are on a fixed income and such an increase may actually , reduce business. Staff support the amendment outlined in Attachment #1, increasing the drop rate to $3.15, and the fee per kilometer to $2.00. Attachment #2 is provided should Council wish to adopt the alternative proposal of $3.50 per drop rate and $2.00 per kilometer. 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. Draft By-law to Amend By-law #6702/06, Schedule 2 (Staff Recommendation) 2. Draft By-law to Amend By-law # 6702/06, Schedule 2 (Alternative) Prepared By: Approved I Endorsed By: J~~~ CI> (A"'tUC(x ( Debi A. Wilcox, CMO, CMMIII T City Clerk ~.-..) ..~. ~.. ~;..=-""'./ ~ --~~ Gillis Paterson, Director, Corporate Services & Treasurer :kt Attachments Copy: Chief Administrative Officer Recommended for the consideration 0 Pickering Ci Council "j ! ') L. THE CORPORATION OF THE CITY s TO REPORT' If~ - BY-LAW NO. XXXX/OS Being a by-law to amend By-law Number 6702/06 to confirm an Increase to Taxicab Fares WHEREAS the Council of the Corporation of the City of Pickering enacted By-law Number 6702/06 on September is, 2006 to license, regulate and govern taxicab businesses. NOW THERFORE THE COUNCIL OF THE CORPORATION OF THE CITY OF PICKERING HEREBY ENACTS AS FOLLOWS: 1. Schedule "2" to By-law Number 6702/06 is hereby deleted and Schedule "2" attached hereto is substituted therefore. By-law read a first, second and third time and finally passed this 20th day of October, 200S. David Ryan, Mayor Debi A. Wilcox, City Clerk CORP0223-07/01 T' Attachment #1 ,) BY-LAW NUMBER XXX/OS SCHEDULE "2" TARIFFS / FARES A. FARES 1. Flat Rate, initial fare $3.15 (incl. GST) 2. For each additional one-eighth of a kilometre or part thereof $0.25 (incl. GST) 3. For waiting time while under engagement, per minute $0.40 (incl. GST) B. RATES 1. For each passenger in excess of four $0.25 $0.60 2. For each trunk exceeding 0.1 cubic meters 3. For each piece of luggage not carried inside the taxicab $0.15 c. NOTES 1. Maximum total charge under B.1, 2 and 3 shall not exceed $0.60 for any trip 2. No rate is chargeable for the carriage of a wheelchair accompanying a handicapped person. " l 4 ~ <51 1- TO REPORT ft!f:.o~ THE CORPORATION OF THE CITY , BY-LAW NO, XXXX/08 Being a by-law to amend By-law Number 6702/06 to confirm an Increase to Taxicab Fares WHEREAS the Council of the Corporation of the City of Pickering enacted By-law Number 6702/06 on September 18, 2006 to license, regulate and govern taxicab businesses, NOW THERFORE THE COUNCIL OF THE CORPORATION OF THE CITY OF PICKERING HEREBY ENACTS AS FOLLOWS: 1. Schedule "2" to By-law Number 6702/06 is hereby deleted and Schedule "2" attached hereto is substituted therefore. By-law read a first, second and third time and finally passed this 20th day of October, 2008. David Ryan, Mayor Debi A. Wilcox, City Clerk CORP0223-07/01 Attachment #2 r- :) BY-LAW NUMBER XXX/08 SCHEDULE "2" TARIFFS / FARES A. FARES 1. Flat Rate, initial fare $3.50 (incl. GST) 2. For each additional one-eighth of a kilometre or part thereof $0.25 (incl. GST) 3. For waiting time while under engagement, per minute $0.40 (incl. GST) B. RATES 1. For each passenger in excess of four $0.25 $0.60 2. For each trunk exceeding 0.1 cubic meters 3. For each piece of luggage not carried inside the taxicab $0.15 c. NOTES 1. Maximum total charge under B.1, 2 and 3 shall not exceed $0.60 for any trip 2. No rate is chargeable for the carriage of a wheelchair accompanying a handicapped person.