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HomeMy WebLinkAbout06/21/2005, PH 1 - PUBLIC HEARING TO CONSIDER REQUEST FROM BEACH CITIES TAXI CAB TO INCREASE THEIR PER MILE FEE council 6/21/05 j acEnaa Report PP I Cl TY OF SAN LU IS O B I S P O FROM: Jay Walter,Director of Public Works Prepared By: Austin O'Dell,Transit Manager SUBJECT: PUBLIC HEARING TO CONSIDER REQUEST FROM BEACH CITIES TAXI CAB TO INCREASE THEIR PER MILE FEE CAO RECOMMENDATION As recommended by the Mass Transportation Committee, adopt a resolution approving a request from Beach Cities Taxi Cab to modify their schedule of rates. DISCUSSION Background On April 21, 2005, the City received a request from Table 1:Pro osed Fee Schedule Beach Cities Cab Company to increase their per mile fee by fifteen cents ($0.15) due to increasing fuel Fee Type Current Proposed Change prices. The per mile fee is the rate that is charged to Pick U $ 3.00 $ 3.00 $0.00 customers for each mile traveled. Beach Cities Cab Per Mile $ 2.00 $ 2.15 $0.15 Company is not proposing to increase any other fees Wait Time $25.00 $25.00 $0.00. _ at this time. Credit $ 4.00 $ 4.00 $0.00 Card Use Municipal Code Requirements The Municipal Code Section 5.20.160 requires taxi cab certificate holders to apply to the City to modify their fee schedule, and for the Council to hold a public hearing before deciding to approve or disapprove any fee increases. Justification for Fee Increase Since the fee increase is based upon increasing Table 2: Fuel Costs fuel prices, staff reviewed fuel price data to % Item 2001 Current Chg determine the merits of the request. Table 2 Unleaded Gasoline $1.51_ $2.79 84% compares the cost of gasoline from the time Beach Cities Cab began operating in the City of San Luis Obispo to today's gasoline costs. Assuming that vehicles used in cab service get between 10-15 MPG, the change in fuel price would equate to a $.09 - $0.13 increase in the per mile cost. This mileage cost increase does not include any other increase in costs assumed by the Beach Cities over the past three years. These cost increases would include workers compensation and general liability insurance costs that have increased statewide. Because it is difficult to charge at a rate not based upon 5 cent ($0.05) Beach Cities Cab Rate Increase Request Page 2 increments, (making change with pennies is difficult and problematic) supporting the rate increase request at $0.10 per mile or $0.15 per mile appears appropriate. In further reviewing this request, staff compared the fees charged by the two companies and found that if Council approves Beach Cities Cab's request, they will have a higher per mile fee than Central Coast Cab. It is unknown whether Central Coast Taxi will also seek a rate increase if the request is approved. Until that time, the community will continue to have an option of rates based upon which cab company they choose to use. On May 12, 2005, the City of Arroyo Grande adopted Beach Cities Cab Company's request to increase the per mile rate to $2.15 to operate in that city. Because Beach Cities Cab operates between our two cities, multiple rates is impossible because the taxi meter can accommodate only one fee schedule. Beach Cities Cab has indicated that without the proposed rate increase, they will need to re-evaluate service within the City of San Luis Obispo. FISCAL IMPACT There will be no financial impact to the General Fund. CONCURRENCES On May 11, 2005, the Mass Transportation Committee reviewed and concurred with staff's recommendation to approve Beach Cities Cab Company's request. ALTERNATIVES The Council may choose to deny Beach Cities Cab Company's request and require Beach Cities Cab Company to continue at the current fee schedule. Each taxi cab is equipped with a taxi meter. The taxi meters are capable of handling one fee schedule for the county. Unfortunately, the taxi meters are not programmable to handle multiple fee schedules. The consequence to this alternative is that Beach Cities may no longer serve the City of San Luis Obispo. Between the two taxi operators in the City, there are fourteen cars permitted to operate in the City of San Luis Obispo, ten of which are operated by Beach Cities Cab Company. As the largest taxi provider in the County, Beach Cities Cab Company provides service to approximately 196,908 passengers per year for the City of San Luis Obispo alone. It is unlikely that the remaining taxi operator would be able to absorb the service demand. ATTACHMENTS 1. Resolution 2. Application from Beach Cities Cab Company 3. MTC minutes from the May 11, 2005 meeting Ii\_Council Agenda Reports\2005 agenda reports\Transportation and Development Review(Bochum)\Transit (O'Dell)\Taxi CAR Beach City CabRate Request#3-PRODUCTION.doc �—Z ATTACHMENT J RESOLUTION NO. (2005 Series) RESOLUTION APPPROVING REQUEST FROM.BEACH CITIES CAB COMPANY TO MODIFY THEIR SCHEDULE OF RATES WHEREAS, the City Council of the City of San Luis Obispo desires to provide for taxi service for its citizens; and WHEREAS, Beach Cities Cab Company is a current taxi operator in the City of San Luis Obispo; and WHEREAS,the City has received an application from Beach Cities Cab Company to increase their schedule of rates, and WHEREAS, the proposed rate increase is consistent with increasing operational costs. NOW THEREFORE,BE IT RESOLVED that the City Council of the City of San Luis Obispo approves the schedule of rates for Beach Cities Cab Company as set forth in Exhibit A. Upon motion of , seconded by , and on the following roll call vote: AYES: NOES: ABSENT: The foregoing resolution adopted this day of , 2005. Mayor Dave F. Romero ATTEST: Audrey Hooper City Clerk APPROVED AS TO FORM: Jo P. Lowell City Attorney R 13 ATTACHMENT EXHIBIT A BEACH CITIES CAB COMPANY SCHEDULE OF RATES Fee Type Fee Pick Up $ 3.00 Per Mile $ 2.15 Wait Time $25.00 Credit Card Use $ 4.00 1-� Be; h Cities Cab Co., Inc. J YOUR DESIGNATED DRIVER°1 ATTACHMENT_ I Boz 886 ' smo Beach,CA 93448 • • Toll Free 1-866-GO-CAB-GO ]5)543-1234 ,u�wo"� FAX(805)787-0132 April 2I,2005 RE: City Council Date City of San Luis Obispo 990 Pam Street San Luls Obispo,Ca ATTN: City of San Luis Obispo To XWhom It May Concern: I am requesting at this time a City Council date for the City of San Luis Obispo to approve an increase in my companies per mile charge. I am requesting an increase of .I5 per mile. Currently I am at the approved rate of$2.00 per mile. As I am sure you are already aware of the current gas prices. I am no longer able to absorb the rising gas costs. I have endorsed two receipts from 2 gas stations last year at this time. One South County&one in San Luis Obispo. All of my other approved fees will not change. Since we operate in multiple cities in the county, your quick response is greatly appreciated. Any questions,my direct office number is 805-543-2266 Thank you for your time and consideration. Best regards, Jett Goldenberg President&Founder Beach Cities Cab Companies,Inc. I-S' Tm-KT6l F91 019031MG ha aiiw a am MOKIPM o � nles $Lis ME MILE iWA i . 9 AU@ pro im-BEEMBE ml crefil cards) DRIVERS RESERVE THE RIGHT TO REFUSE SERVICE __-- Qum REQUEST CASH UP FRONT 4Y 9 FLYEPc 002i u r _ b•fY; .•)�, Y� ,i}„y��r:,r t '.•f p�� SJVj. La' Z1 BROAD ,ifiEET ' r•.,. Sfi�J LUIS OBI5P0,CA ! 2211 i {{{j : SAN LI�I�xi)Bf + - f, . FG11P SUPER i - :'417%05 02N3 cfiLWHS 14.00i: ! E'N1R 2 cUF'ER. .. _. ... �. 'l .G.J. _ FUEL £Ci.7b. �'' �.£ ?:GAL FUEL t I' :ALI. — Uf A. i ; PL 10.00 L;fidG i A: +HAr'uE �, Ser_ $O.Ia lAz',F'Try 00 RECEYT FiG. i- l�lr t '°... CHANGE 46.2--- NL. 6.i--NC. 1 ATTACHMENT-, U ATTACHMENT_ DRAFT MTC Minutes May 11,2005 Page 2 of 3 B. DISCUSSION ITEMS B1. Consider Request from Beach Cities Cab to Increase Rates Mr. O'Dell discussed the proposal to raise Beach Cities Cab rates from$2.00 per mile to $2.15 per mile to offset increased in fuel and insurance costs. Staff supports a recommendation to City Council to approve the fee increase. Mr. O'Dell noted that Central Coast Cabs had not requested an increase at this time. Central Coast Cabs currently changes$2.00 per mile. Motion made by Mr. Doyle,seconded by Ms. Rains, to approve staff recommendation as presented. The motion passed unanimously. C. ACTION ITEMS C1. Electio of Chair and Vice-Chair for the Next Fiscal Year Mr. O'Dell dis sed the bylaws regarding the process of electing a new Chair and Vice-Chair. noted he would remain as Secretary. Mr. Doyle nominate .Johnson as Chair. Ms. Rains nominated Ms. Knox as Chair. The Committee lected Ms. Knox by secret ballot to be Chair. Ms.Knox nominated Ms. ins as Vice-Chair. There were no other nominations. The Committee selected Ms. ains by secret ballot to be Vice Chair. Motion made by Mr. Doyle, sec nded by Mr.Robinson, to approve Jean Knox as Chair and Susan Rains as Vice C ir. The motion passed unanimously. C2. Approval of Meeting Schedule or Next Fiscal Year Mr. O'Dell noted that some Committee embers had suggested moving the meeting location to the.Council Hearing r m. Mr. O'Dell presented two options. The first option was the status quo d the second option was to meeting in the Council Hearing Room on Tues ays from 1:30 to 3:30 p.m. Motion made by Mr. Doyle, seconded by Ms. i to approve Option 1 (status quo) to meet on the second Wednesday of the month, i-monthly, from 2:30— 4:30 p.m. The motion passed unanimously.