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
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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.
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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.