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Home My WebLink AboutCD-1-91 TOWN OF NEWCASTLE Y '•� ; ;' REPORT File # ( ` Res. # -- -�. By-Law # MEETING: GENERAL PURPOSE & ADMINISTRATION COMMITTEE DATE: JANUARY 21, 1991 REPORT #: CD-1-91 FILE #: P09 . 325 .TA SLBJECT: REQUEST FOR AN INCREASE IN RATES BY LOCAL TAXICAB COMPANIES RECOMMENDATIONS: It is respectfully recommended that the General Purpose and Administrative Committee recommend to Council the following: 1. THAT Report CD-1-91 be received; 2 . THAT Tariff "A" to By-law 74-72, as amended, being a by-law for the establishing of rates and fares to be charged by the owners or drivers of taxicabs or other vehicles used for hire be further amended to provide for taxicab and limousine tariff rates as follows: RATES BY DISTANCE IN KILOMETRES 1991 TARIFF ONE TO FOUR PASSENGERS RATES/KILOMETRE "Drop Rate" $ 2 . 00 For each additional 1/10th km or part thereof $ . 13 For waiting time while under engagement for One ( 1) Minute $ .40 For each additional passenger, adult or child (except babies in arms) a flat charge of $ . 30 LIMOUSINE BY TIME For the first hour or part thereof $24 . 00 For each additional fifteen ( 15) Minutes $ 6 . 00 Report CD-1-91 - 2 - January 21, 1991 OTHER CHARGES For each trunk accompanying a passenger $ .20 For each piece of hand baggage handled by driver $ . 10 in excess of two (2) pieces 3 . THAT the by-law authorizing the increase be forwarded to Council for adoption; and 4. THAT the taxicab operators be advised of Council 's decision. BACKGROUND AND COMMENT: Council, at their meeting held on October 15, 1990 referred a request for an increase in taxicab fares to staff for review and report. In reviewing the request, the area municipalities have been surveyed to establish the current Tariff of Rates for taxi services . The findings are as follows: Waiting 2 km Fare Drop First Each km Time + 60 Sec Eff. Mun. Rate km Thereafter (60 Sect Waiting Date Ajax 2 . 00 3 . 10 1. 10 .27 4 .47 Jan/90 Oshawa 2 . 05 3. 15 1. 10 . 30 4 .55 Dec/89 Pickering 2 . 00 3 . 20 1.20 .25 4 .65 Nov/89 Whitby 2 .20 3 .50 1. 30 .40 5 .20 Dec/90 Newcastle (Present) 1. 80 2 . 90 1. 10 .25 4 .25 Jun/89 Newcastle (Requested) 2 . 00 3 . 30 1.30 .40 5 . 00 Jan/91 Note: City of Oshawa staff have recommended an 11 percent increase in fares . At a meeting held in December 1990, Council tabled the report for a 6 month period. Report CD-1-91 - 3 - January 21, 1991 In comparing the taxicab fares across the Region, it is felt that the increase requested by the taxicab operators is fair and warranted. Enclosed as Attachment #1, for Council 's information, is a breakdown of car cost information based on the latest data available from the Canadian Automobile Association which shows a 12 percent increase in operating costs between 1989 and 1990, based on 24,000 km per year. The average taxicab would travel more than 24,000 km per year and pay larger premiums for insurance coverage, however many of the vehicle costs would have increased at the same rate. Conversations have taken place with the taxicab operators as to the method to be used for the collection of the G.S.T. The Town of Whitby cabs have installed special meters which calculate the G.S.T. separately and then total the fare and the G.S.T. This is a good system, however the cost to the operators is $1,000 per meter. The operators in Newcastle have indicated that they prefer to have the G.S.T. added to their present meters and advise customers that the tax is included in their fares . This seems to be the most efficient way of dealing with the collection of this new tax. Enclosed as Attachment #2 is a copy of a letter from the Department of Finance Canada advising that most operators are following this route. Respectfully submitted Recommended for presentation to the Committee --4j0wl, Pa ti Ba l Lawrence . Kotseff To, lerk Chief A istrative Officer Interested Parties to be Advised of Council's decision: B. W. Lawrence Mr. & Mrs . D. Bate Bowmanville Taxi Deluxe Taxi 169 King Street East P.O. Box 325 Bowmanville Bowmanville Mrs . C. Barlow B & B Taxi 113 King Street East Bowmanville ATTACHMENT #1 TAXICAB TARIFF RATE - CAR COSTS The details and cost information shown below are based on the latest data available from the Canadian Automobile Association. The following is the breakdown of the national average cost figures . The figures are based on a 1989 Ford Tempo GL four door sedan equipped with standard accessories, automatic transmission, power steering and power brakes with a 4 cylinder (2 . 3 litre) engine, driven 24,000 kilometres per year. AVERAGE COST PER KILOMETRE (CENTS) 1989 1990 Fuel and Oil 5.45 5. 71 Maintenance 1.51 1. 68 Tires . 69 . 76 Total Variable Cost per km 7 . 65 8. 15 Percentage increase over 1989 7% OWNERSHIP COSTS 1989 1990 Insurance $ 766 . $ 786 . License and Registration 81. 84 . Depreciation 2,371, 2,760, Snow Tires 56 . 61. Financing Costs 858 . 1,025 . Total Ownership Costs $4, 132 . $4,716 . Percentage increase over 1989 14% TOTAL ANNUAL COSTS 1989 1990 Variable cost @ 24,000 km/year $1,836 . $1,956 . Annual Ownership Cost 4, 132 . 4 ,716 . I Total Annual Costs $5,968 . $6,672 . PERCENTAGE INCREASE OVER 1989 12% i ATTACHMENT #2 Department of Finance Ministere des Finances Canada Canada Ottawa,Canada K1A 0G5 Dece ej iffi, Af, IMPORTANT INFORMATION ABOUT THE GST AND TAXIS FOR LICENSING AND REGULATORY AUTHORITIES Dear Sir/Madam: An important modification to the operation of the GST for the taxicab industry has recently been announced. Details of this modification as well as other materials are enclosed in this information package which includes : - Department of Finance News Release - Department of Finance Backgrounder - Revenue Canada Registration Pamphlet for taxi operators - A sample and order form for Revenue Canada stickers , entitled, "Fare includes 7% GST" - A GST calculation guide Regulators of the taxicab industry should consider whether the GST is to be included in the meter fare or whether drivers should add the GST to the displayed fare. Most regulators are following the recommendations of the Federation of Canadian Municipalities and the Canadian Taxicab Association and plan to include GST in the meter . This will make the GST simpler for drivers to operate and will avoid confusion for consumers . If you need additional copies of any of this information or have questions about the GST, please contact your nearest Revenue Canada Excise Office. Their addresses and phone numbers are listed on the back cover of the enclosed pamphlet . �T` Yours sincerely, Bob Plamondon - Special Advisor GST Communications Working Group ( 613 )-995-6741 Canaaa ( THE CORPORATION OF THE TOWN OF NEWCASTLE BY-LAW 91- being a by-law to amend Tariff "A" to By-law 74-72, "a by-law for the establishing of rates and fares to be charged by the owners or drivers of taxicabs or other vehicles used for hire", and to repeal By-law 89-76. WHEREAS the Council of the Corporation of the Town of Newcastle deems it advisable to amend By-law 74-72, as amended by By-law 89-76. NOW THEREFORE THE COUNCIL OF THE CORPORATION OF THE TOWN OF NEWCASTLE HEREBY ENACTS AS FOLLOWS: 1. THAT Tariff "A" to By-law 74-72, as amended by By-law 89-76, is hereby further amended by deleting Tariff "A" therefrom, and substituting the attached Tariff "A" therefor. 2. THAT By-law 89-76 shall be repealed effective January 31, 1991. 3. THAT this By-law shall come into force and take effect on February 1, 1991. By-law read a first and second time this 28th day of January 1991. By-law read a third time and finally passed this 28th day of January 1991. Mayor Clerk i i TARIFF"A" TO BY-LAW 91- RATES BY DISTANCE IN KILOMETRES 1991 TARIFF RATES ONE TO FOUR PASSENGERS KILOMETRES "Drop Rate" $ 2.00 For each additional 1/10th kilometre or part thereof , ,1g For waiting time while under engagement for One (1) Minute .40 For each additional passenger,adult or child (except babies in arms) a flat charge of ,80 LIMOUSINE BY TIME For the first hour or part thereof $24.00 For each additional fifteen(16) Minutes $ 6.00 OTHER CHARGES For each trunk accompanying a passenger $ .20 For each piece of hand baggage handled by driver in excess of two (2) pieces $ .10 A COPY OF THE ABOVE TARIFF SHALL BE PROMINENTLY DISPLAYED IN ALL TAXICABS i