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Recommendation to receive supporting documentation into the record, conclude the hearing, find and determine that the rate proposed is just, reasonable and nondiscriminatory, and not in violation of the Long Beach Municipal Code or any provision of law; authorize City Manager to amend the permit with Long Beach Yellow Cab Cooperative, Inc., to authorize and establish new rates for taxicab service at $2.85 per flag drop, $2.70 per mile, and $29.19 per hour waiting time; and
Authorize City Manager to approve the modified "Green taxicab" color scheme for new hybrid vehicles and allow the vehicles to be placed into service. (Citywide)
DISCUSSION
The Long Beach Municipal Code (LBMC) Section 5.80.140 requires a hearing be held before the City Council prior to the authorization of any rate or fare for taxicab service. The LBMC also requires that the City Council make the determination that the rate is just, reasonable and nondiscriminatory, and not in violation of the provisions of the LBMC or any other provision or law. Attached for your review is the request of Long Beach Yellow Cab Cooperative, Inc. (Long Beach Yellow Cab), for a rate increase (Attachment A). The results of the City staff analysis are provided in the Proposed 2008 Taxicab Rate Increase table located on page two. Taxicab rates were last changed in 2007 and prior to that 2005, 2001 and 1996. Since the rate increase of August 2007, the Consumer Price Index (CPI) for Los Angeles-Riverside-Orange County has increased by 5.8 percent. The cost of operating a taxicab in the Los Angeles-Long Beach area has also increased 9.83 percent since August 2007. The increase proposed by Long Beach Yellow Cab is approximately 16 percent per flag drop and approximately 12 percent per trip depending on the distance of the trip.
City staff contacted neighboring jurisdictions and found that most had recently increased taxicab service rates during the first half of this calendar year. Although other costs of operating a taxicab have increased (see attached request from Long Beach Yellow Cab), the high price of gasoline remains the driving factor in the rate increases of surrounding jurisdictions. The Orange County Taxicab Administration Program (OCTAP), which establishes rates for most Orange County cities, recently raised its rates on May 24, 2008. Additionally, the City of Los Angeles also approved a rate increase effective August 14, 2008, and the South Bay Cities (Manhattan Beach, Redondo Beach, Hermosa Beach, and Torrance) raised their rates on August 14, 2008.
The proposal by Long Beach Yellow Cab is the same rate that was approved by the City of Los Angeles. Because many cities automatically honor the City of Los Angeles meter rate, this is the rate currently in use throughout the Los Angeles basin.
Both current and proposed Long Beach rates are compared to other California cities in the following table. The cost of a two-mile trip (shopping trip), a five-mile trip (trip to Long Beach Airport), and a 20-mile trip (trip to Los Angeles or Orange County airports) has been computed and compared.
SUSTAINABILITY
Long Beach Yellow Cab is committed to supporting efforts to promote environmentally sensitive business and lifestyle practices. In supporting these practices, the Yellow Cab CoOp is adapting a "Green taxicab" program that requires owner-drivers to replace their existing taxicabs with CNG or Hybrid powered vehicles.
To increase public awareness of these vehicles, Long Beach Yellow Cab adopted a modified color scheme for the new Hybrid vehicles and is asking the City's permission to immediately place these vehicles, with the revised color scheme, into service (Attachment B).
The proposed color scheme consists of the standard yellow paint, with green paint along the rocker panels, front and rear bumpers, hood, trunk and roof. On the rocker panels and rear bumper, they are including wording that reads "Yellow Cab Goes Green." The new color scheme is proposed for all Hybrid vehicles placed into service over the next two years. Long Beach Yellow Cab has already purchased seven Hybrid vehicles (five Toyota Prius' and two Ford Escapes) and is ready to place them into service.
This matter was reviewed by Deputy City Attorney Richard Anthony on September 18, 2008 and Budget Management Officer Victoria Bell on September 3, 2008.
TIMING CONSIDERATIONS
City Council action is requested on October 7, 2008 to ensure that the new Hybrid vehicles are placed in service expeditiously.
FISCAL IMPACT
There is no fiscal impact associated with this item.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
Lori Ann Farrell
Director of Financial Management/CFO
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PATRICK H. WEST |
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CITY MANAGER |