HomeMy WebLinkAboutOrdinance 4777 ORDINANCE NO, 4777
AN ORDINANCE AMENDING TITLE XI: CHAPTER 117,
ARTICLE IV: TAXICABS, OF THE CODE OF FAYETTEVILLE TO
PROVIDE A RATE STRUCTURE AND ZONE MAP FOR THE
CITY OF FAYETTEVILLE TAXI COUPON PROGRAM.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
FAYETTEVILLE, ARKANSAS:
Section 1 . That § 117.31(B), Code of Fayetteville is hereby repealed, and
the following is inserted in its stead:
(B) The City Council has the authority to establish the maximum
allowable rates for all taxicabs, consistent with the provisions of Arkansas Code
Annotated § 14-57-303 for the City sponsored taxi program utilizing City issued
taxi coupons. The City Council shall utilize the percentage change as calculated
utilizing the change, from year to year, of the rate per mile published by the
Internal Revenue Service for the allowed mileage reimbursement rate for Federal
Income Tax purposes. Each licensed taxi company shall, on an annual basis,
submit to the Fayetteville Police Department and Fayetteville City Clerk the fare
schedule the taxi company will utilize for the next twelve (12) months and each
taxi company shall cause this fare schedule to posted prominently within each
taxi in full view of the passenger.
(C) The maximum allowable rate effective November 1 shall be left
undetermined and shall be established by City Council Ordinance at any time
deemed necessary by the Fayetteville City Council.
(D) Zone A shall be bounded on the west by Razorback to Maple to
Garland, on the North by drake to Gregg Avenue to Futrall/ Milsap Road, on the
East by College Avenue, Rock Street to Mill Avenue to Huntsville Road to
Morningside Drive and on the South by 15th Street. Zone B shall be the
remaining portions of Fayetteville not incorporated in Zone A. A Taxi Zone
Map, marked Exhibit A, is attached hereto and made a part hereof.
Section 2. That §§ 117.49(B) & (C), Code of Fayetteville are hereby
repealed, and the following is inserted in their stead:
(B) Taxi services provided to patrons utilizing City issued taxi coupons
shall be based on a zone rate system with the initial meter charge, charge per
mile and additional person charge incorporated into a flat rate per zone. The
Zone Rate shall be used exclusively by all taxicabs excluding waiting time except
as provided in subsection (D) below. The ceiling rates shall apply to all taxicabs
operating in the city. The initial zone rates are set out as follows:
Ceiling rate, no more than a rate of:
(a) Travel within One Zone . . . . $8.00
(b) Travel incorporating Two Zones . . . . $12.00
(c) No charge for additional person shall be charged.
(d) Waiting time ceiling rate, not to exceed $10.00 per hour.
(C) Taxi companies shall utilize the zone of the trip origination and zone
of the trip destination for purposes of valuation for the trip.
PASSED and APPROVED this 4th day of October, 2005.
APPROVE
By:
DAN COODY, Mayor
ATTES
SONDRA SMITH, City Clerk . -�Ty
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: FAYETfEVILLE : a
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City of Fayetteville
Staff Review Form
City Council Agenda Items
or
Contracts
4-Oct-05
City Council Meeting Date
Stephen Davis Finance & Internal Services
Submitted By Division Department
Action Required:
Staff recommends Council repeal § 117.31 (B) and § 117.49 (B) Subsection(s) 1 and 2 and enacting new §117.31
(B) and § 117.49 ( B) Subsection(s) 1 and 2.
Cost of this request Cate o /Project Budget Program Category / Project Name
Account Number Funds Used to Date Program / Project Category Name
$
Project Number Remaining Balance Fund Name
Budgeted Item Budget Adjustment Attached
Previous Ordinance or Resolution #
00
bepartfnent Director Date Original Contract Date:
^iL✓ `----` Original Contract Number:
City Attorney
Received in City Clerk's Office
q 16
Finance and Internal Service Director Date
il I Received in Mayor's Office
EIITFREO
�� � g-� -_ 9• lt.•oS
Mayor Date
Comments:
0 0
FAYETTEVILLE
THE CITY OF FAYETTEVILLE. ARKANSAS
DEPARTMENTAL CORRESPONDENCE
TO: Fayetteville City Council
THROUGH : Dan Coody, Mayor
FROM : Stephen Davis, Finance & Internal Services Director
DATE: September 16, 2005
Subject: Taxi-Cab Fee Adjustment — Phase 2
Recommendation
Staff recommends City Council repeal Fayetteville Code of Ordinances § 117.31 (B) and 117§ 49 (B)
Subsection(s) 1 and 2 and enact a new § 117.31 (B) and 117§ 49 (B) Subsection(s) 1 and 2 :
Existing - Repeal
117.31 (B) The City Council shall set the maximum allowable rates for all taxicabs, consistent with the provisions of
Arkansas Code Annotated § 14-57-303. The City Council shall annually review maximum allowable rates to
determine if a change is needed.
117.49(B) Meter rates shall be used exclusively by all taxicabs excluding waiting time except as provided in
subsection (D) below. The ceiling rates shall apply to all taxicabs operating in the city. The initial rates are set out as
follows: (1 ) Exclusive ride. Ceiling rate, no more than a rale of:
(a) Initial meter charge . . . . $2.00
(b) Charge per mile . . . . $1 .50
(2) No more than $1 .00 per additional person
shall be charged.
(3) Waiting time ceiling rate, not to exceed
$18.00 per hour.
Proposed
117.31 (B) The City Council has the authority to establish the maximum allowable rates for all taxicabs, consistent
with the provisions of Arkansas Code Annotated § 14-57-303 for the City sponsored taxi program utilizing City issued
taxi coupons. The City Council shall utilize the percentage change as calculated utilizing the change, from year to
year, of the rate per mile published by the Internal Revenue Service for the allowed mileage reimbursement rate for
Federal Income Tax purposes. Each licensed taxi company shall, on an annual basis, submit to the Fayetteville
Police Department and Fayetteville City Clerk the fare schedule the taxi company will utilize for the next twelve ( 12)
months and each taxi company shall cause this fare schedule to posted prominently within each taxi in full view of
the passenger.
117.31 (C) The maximum allowable rate effective November 1 shall be left undetermined and shall be established
by City Council Ordinance at any time deemed necessary by the Fayetteville City Council.
117.31 (D) Zone A shall be bounded on the west by Razorback to Maple to Garland, on the North by drake to Gregg
Avenue to Futrall/Milsap Road, on the East by College Avenue, Rock Street to Mill Avenue to Huntsville Road to
Morningside Drive and on the South by 15"' Street. Zone B shall be the remaining portions of Fayetteville not
incorporated in Zone A.
117.49(B) Taxi services provided to patrons utilizing City issued taxi coupons shall be based on a zone rate system
with the initial meter charge, charge per mile and additional person charge incorporated into a Flat rate per zone.
0 0
The Zone Rate shall be used exclusively by all taxicabs excluding waiting time except as provided in subsection (D)
below. The ceiling rates shall apply to all taxicabs operating in the city. The initial zone rates are set out as follows:
Ceiling rale, no more than a rate of:
(a) Travel within One Zone . . . . $8.00
(b) Travel incorporating Two Zones . . . . $12.00
(c) No charge for additional person
shall be charged.
(d) Waiting time ceiling rate, not to exceed
$10.00 per hour.
117.49(C) Taxi companies shall utilize the zone of the trip origination and zone of the trip destination for purposes of
valuation for the trip.
Background
The City has existing taxi cab operators providing services to Fayetteville citizens. These taxi
companies complied with the requirements for a certificate of public convenience and necessity. On
September 6 Fayetteville City Council approved a $ 1 .00 surchargc, to provide immediate relief for
the licensed taxi cab operators. Staff, prior to the meeting of September 6, had stated that
adjustments to the fee structure for taxi cabs would be in two parts: emergency relief to be
considered on September 6 and a more permanent adjustment to be submitted after the emergency
relief was acted upon by City Council .
Discussion
The City was approached on Wednesday, August 31 by Brice Curry for relief from the provisions of
§ 117.49 (B) Subsection(s) 1 and 2 due to the rising cost of fuel. On Friday, September 2 a
representative of Tony C Taxi filed a Certificate of Public Convenience & Necessity
Application/Renewal with the City Clerk' s office.
The rate and fee adjustment proposals submitted by Tony C Taxi and Brice Curry are listed in the
table on the following page:
Fee/Rates Existing Ordinance as Tony C Taxi Proposal Brice Curry Proposal
amended September 6 September 2 August 31
Initial Meter Charge $2.00 $2.50 $3 .50
Fuel Surcharge (per $ 1 .00 $ 1 .00
tri
Charge permile $ 1 .50 $2. 10 $2. 10
Extra Passenger $ 1 .00 $2.00 No Change
Waiting Time $ 18.00 No Proposal No proposal submitted
Ceiling Submitted
The last time City Council/City Board of Directors adjusted the initial meter charge was on June 3 ,
1986. In reviewing the records the City Clerk' s Office charge per mile fee was initially added in
October 2004 when the City revised this section of the Code to require meters. Staff contacted
and/or reviewed other cities ordinances in an effort to determine what mechanism, if any, was used
to adjust or establish the charge per mile. The table on the following page lists the cities contacted:
City Charge Per Mile Mechanism to Adjust Rates
Little Rock, AR $ 1 .60 Taxi operators request an
adjustment and Board of
Directors makes the decision.
Springdale, AR $ 1 .50 A decision is made after a
public hearing.
Hot Springs, AR Zone Rates Taxi operators request an
adjustment and Board of
Directors makes the decision.
Fort Smith, AR Zone Rates Taxi operators request an
adjustment and Board of
Directors makes the decision.
Pine Bluff, AR Not Applicable
Tulsa, OK Each taxi company sets their Each taxi company must
own rates. I inform the City of their rates.
Springfield, MO Each taxi company sets their No City notification is
own rates. I required.
During the September 6 Council meeting, City Council requested City Staff develop a predictable
method for fee/rate adjustments over time. There are numerous options available for consideration
with each option generating unique issues and opportunities. The preferred option is to allow the
open market to determine the charge per mile with the exception of the city sponsored taxi coupon
program. The options listed below provide for transparent rate setting procedure without adding
additional expense to either the taxi operator or City Staff.
Option 1 — Link the charge per mile change to the federal mileage reimbursement announcements
made each year in October. The City would choose a base year for indexing purposes and allow the
charge per mile to increase by the same percentage as the federal mileage reimbursement changes.
For example the federal mileage reimbursement rate was $0.375 mile in 2004 and is $0.485/mile as
of September 9, 2005 or a 29% change from 2004 to September 2005 . The federal mileage
reimbursement rate is established for the Internal Revenue Service by an independent contractor
working under supervision of the IRS. Using this option the taxi companies could increase the
maximum rate per mile by 29% or to $ 1 .94 for the charge per mile.
If City Council approves this approach, Staff proposes all adjustments in the charge per mile be
approved by City Council annually after the federal mileage rate is announced. Staff further
recommends that City Council change the City' s taxi coupon program to a zone program explained
below. This method is the preferred choice from a Staff perspective.
Option 2 — Remove Charge per mile from the Fayetteville Code of Ordinances and allow each taxi
company to set their rates with notification to the City except for the city sponsored taxi coupon
program and the City establishes the value of each coupon.
Option 3 — Link the charge per mile to the change in fuel prices for Arkansas as published by an
independent agency. The following link is an example of the data available and is maintained by
AAA. http:// 198.6.95 .31 /ARmetro.asp
The City would choose a base year for indexing purposes and allow the charge per mile to increase
by the same percentage as the average price per gallon increases. Using this option the taxi
companies could increase the maximum rate per mile by 69.5% or to $2.54 for the charge per mile.
Staff does not support this option; however, if City Council approves this approach, Staff proposes
all adjustments in the charge per mile be approved by City Council annually after using the data
published nearest October I with new rates effective on January I of the year following.
Other options are possible, however, each of the other options require more staff time for analysis
and could become burdensome to both the taxi companies and City staff.
Other Concerns
Primarily the City Staff is concerned that any charge per mile adjustment will have a negative impact
on citizens who rely on the taxi coupon program for basic transportation needs. To address this
concern Staff is proposing to change the taxi coupon program from a fixed $2.00 per coupon value In
a zone-based system where the coupon has value based on the origin and destination zone. Under
this type of system, the original pick-up and delivery within the same zone would be up-to $8.00 and
travel outside the original zone would add an additional $4.00 (incorporating two zones would be a
maximum of $ 12.00). Staff has attached a map that shows the two proposed zones.
ORDINANCE NO.
AN ORDINANCE AMENDING TITLE XI: CHAPTER 117,
ARTICLE IV: TAXICABS, OF THE CODE OF FAYETTEVILLE TO
PROVIDE A RATE STRUCTURE AND ZONE MAP FOR THE
CITY OF FAYETTEVILLE TAXI COUPON PROGRAM.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
FAYETTEVILLE, ARKANSAS:
Section 1 . That § 117.31 (B), Code of Fayetteville is hereby repealed, and
the following is inserted in its stead:
(B) The City Council has the authority to establish the maximum
allowable rates for all taxicabs, consistent with the provisions of Arkansas Code
Annotated § 14-57-303 for the City sponsored taxi progra�tiliii r. City iI sued
taxi coupons. The City Council shall utilize the percentage (h'ane.as calculated
utilizing the change, from year to year, of the rate p"�r �ile published lily the
Internal Revenue Service for the allowed mileage reimburs�meritjrate for; Federal
Income Tax purposes. Each licensed taxi/ company shall,-o an annual ibasis,
submit to the Fayetteville Police Department Ad Fayettev lIe CiIiy Clerk thL-fare
schedule the taxi company will utilize for fi e n�xt twelvej(12) months�d each
taxi company shall cause his fare schedulI to pasted prolminently within each
taxi in full view of the passenger/ \
w (C) The `,maximum allowable , rat" e effectivee November I shall be left
undetermined and shall be \established by City Council Ordinance at any time
deein �d necessary by the Fayetteydle°City Council.
G
(D) Zone A shall'be bounded on the west by Razorback to Maple to
Garland, on the North by drake to Gregg Avenue to Futrall/ Milsap Road, on the
East by o lege Avenue, Rock Street to Mill Avenue to Huntsville Road to
Morningside Drive and on the South by 15f Street. Zone B shall be the
remaining portions of Fayetteville not incorporated in Zone A. A Taxi Zone
Map, marked Exhibit A, is attached hereto and made a part hereof.
Section 2. That §§ 117.49(B) & (C), Code of Fayetteville are hereby
repealed, and the following is inserted in their stead:
(B) Taxi services provided to patrons utilizing City issued taxi coupons
shall be based on a zone rate system with the initial meter charge, charge per
mile and additional person charge incorporated into a flat rate per zone. The
Zone Rate shall be used exclusively by all taxicabs excluding waiting time except
as provided in subsection (D) below. The ceiling rates shall apply to all taxicabs
operating in the city. The initial zone rates are set out as follows:
Ceiling rate, no more than a rate of:
(a) Travel within One Zone . . . . $8.00
(b) Travel incorporating Two Zones . . . . $12.00
(c) No charge for additional person shall be charged.
(d) Waiting time ceiling rate, not to exceed $10.00 per hour.
(C) Taxi companies shall utilize the zone of the trip origination and-z n
of the trip destination for purposes of valuation for the trip.
PASSED and APPROVED this 411, day of Octob1s21105.
APPROVED:
By:
DAN ,COODY; 1Mayor ��✓'
ATTEST:
01DRA SHIM City Clerk,
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ZONE A:
Bounded on the west by Razorback Road to Maple Street to
Garland Avenue, on the North by Drake Street to Gregg Avenue to
Futrall Drive/Millsap Road, on the East by College Avenue to
Rock Street to Mill Avenue to Huntsville Road to Mashburn
Avenue to Huntsville Road to Morningside Drive and on the South
by 15 `" Street.
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