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Title:
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Adoption of a Resolution Establishing New Taxicab Rates Within the City and Rescinding Resolution No. 2007-R010.
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City of Culver City, California
City Council Agenda Item Report
RECOMMENDATION:
Staff recommends the City Council adopt a Resolution establishing new taxicab
rates within the City and rescinding Resolution No. 2007-R010.
BACKGROUND:
The City Council, pursuant to the authority contained in Culver City Municipal Code
(CCMC) Section 11.10.305, establishes the maximum rates or fares that taxicabs
operating within the City may charge.
While the maximum rates in the City of Culver City remained unchanged between
1986 and 2006, the City of Los Angeles adopted two increases, the first in 2001 and
the second in 2005. This created a disparity between the rates taxi drivers could
charge in Los Angeles versus in Culver City. As a result, the number of taxicabs
actually operating in the City declined from 124 in 1999 to 32 in 2006. This decline
can be attributed partly to the slowdown in tourism, but to a greater extent to the
difference in rates charged in the cities located in the Westside sub-region. Staff
therefore recommended and obtained City Council’s approval for two rate increases,
the first in February 2006, and the second in March 2007, reflecting the rate
increases made by the City of Los Angeles. These actions resulted in an increase in
the number of taxicabs operating in the City, from 32 in 2006 to 53 in 2007, and 61
in 2008, with a noticeable drop in the number of calls received from the City’s
residents complaining about the availability of taxicabs in the City. The figures over
the period 1999 to 2008 are shown in the following table.
Meeting Date: 09/22/2008 Item Number: A-6
AGENDA ITEM: Adoption of a Resolution Establishing New Taxicab Rates Within
the City and Rescinding Resolution No. 2007-R010.
Contact Person/Dept.:
Nagam Rao, Finance Dept./Treasury
Phone Number: (310) 253 5889
Fiscal Impact: Yes [] No [X] General Fund: Yes [] No [X]
Public Hearing: [] Action Item: [X] Attachments: [X]
Public Notification: Beverly Hills Cab Company; Culver City Taxicab Company;
Independent Taxi Owners Association; United Independent Taxicab Company; Master
E-Mail Notification List (09/17/08)
Department Approval:
Jeff Muir (09/12/08)
City Attorney Approval:
Carol Schwab (by H. Baker) (09/17/08)
Chief Financial Officer Approval:
Jeff Muir (by M. Noller) (09/17/08)
City Manager’s Approval:
Jerry B. Fulwood (09/17/08) City of Culver City, California
City Council Agenda Item Report
In the year No. of Taxi Cabs
1999 124
2000 101
2001 102
2002 55
2003 45
2004 36
2005 29
2006 32
2007 53
2008 61
With the continued increasing trend in gas prices, the City of Los Angeles has
increased its taxicab rates, effective August 14, 2008. These revised rates adopted
by the City of Los Angeles and which Staff recommends for Council’s consideration
for the City of Culver City, along with the rates currently applicable in the City of
Culver City, are shown in the table below:
Culver
City
Los
Angeles
(proposed
for Culver
City)
Flag Drop
Flag Drop, for the first 1/7 of
a mile $2.45
Flag Drop, for the first 1/9 of
a mile $2.65
Distance
for each additional 1/11 of a
mile $0.35
for each additional 1/9 of a
mile $0.30
Waiting
For each 32 seconds of
waiting time and /or traffic
delay $0.35
For each 37 seconds of
waiting time and /or traffic
delay $0.30
City of Culver City, California
City Council Agenda Item Report
DISCUSSION:
With gas prices continuing to rise, the taxi operators have requested a rate increase
in order for them to maintain and sustain their operations.
A journey from City Hall to the Los Angeles International Airport at the current Culver
City rates (established in 2007) and at the revised (i.e. Los Angeles’) rates would
cost $18.03 and $19.93 respectively, a difference of approximately 10.60%.
FISCAL ANALYSIS:
While our adoption of rate increases in February 2006 and March 2007 did not have
an effect on City expenditures, these rate increases did result in an increase in the
number of taxicabs applying for operating permits in the City. Revenues from taxicab
operating permits increased by $14,830 between calendar years 2005 and 2008,
and the number of taxicabs increased by 32.
Calenda
r Year
Revenue
s
Number
of
Taxicabs
2005 $13,460 29
2006 $18,560 32
2007 $26,741 53
2008 $28,290 61
While it is likely that the number of taxicabs wishing to obtain operating permits to
operate in the City will continue to rise due to the reduction in the rate disparity
between the City of Culver City and the City of Los Angeles, staff would like to take a
conservative approach and refrain from making any revenue predictions at this
stage.
ATTACHMENTS:
(1) City of Los Angeles, Notification dated August 12, 2008.
(2) City of Culver City, Resolution No. 2007-R010 dated March 26, 2007.
(3) Proposed Resolution
City of Culver City, California
City Council Agenda Item Report
MOTION:
That the City Council:
Adopt a Resolution establishing new taxicab rates within the City and rescinding
Resolution No. 2007-R010.