Return to SFMTA Board May 17, 2011, agenda

THIS PRINT COVERS CALENDAR ITEM NO. : 11

SAN FRANCISCO

MUNICIPAL TRANSPORTATION AGENCY

DIVISION: Finance and Information Technology

BRIEF DESCRIPTION:

Amending San Francisco Transportation Code, Division II, by amending Sections 1122(a) and (b) to require SFMTA, beginning in fiscal year 2010-2011, and at least every fiscal year thereafter, to conduct a hearing to determine whether the rates of fare and cap on gate fees should be changed, and to increase the taxi mileage and wait time fares and establish the following three new fee: (1) a radio dispatch fee for non-peak services; (2) a radio dispatch fee for peak services; and (3) a fuel surcharge fee.

SUMMARY:

· Under Transportation Code 1122(a), the SFMTA Board of Directors has sole discretion to determine whether taxicab fares should increase, decrease or remain unchanged and must do so at least every other calendar year beginning in calendar year 2010. No public hearing was held to consider taxicab fares in 2010.

· The last time taxi base meter fares were increased was in 2003 (except for a $2.00 airport fee authorized in 2006 which drivers were authorized to pass on to customers).

· Based on review of fares in other jurisdictions as well as customer needs, two new fares are recommended: (1) A $2.00 radio dispatch fee for non-peak services that a driver may charge when responding to a radio dispatch request; (2) A $3.00 peak radio dispatch fee that a driver may charge when responding to a dispatch request during peak times, which are currently 4:00 p.m. – 4:00 a.m. Thursday, Friday and Saturday evenings; and (3) a fuel surcharge fee -- $0.10 per 1/5 of a mile (except first 1/5 mile) and 0.10 per minute of wait time to offset the high cost of fuel.

· Additionally, based on reviewing fares in other jurisdictions as well as customer needs, it is recommended that the taxi mileage and wait time fares be increased by $0.10 per 1/5 of a mile or per minute of wait time.

ENCLOSURES:

1. SFMTAB Resolution

2. Amendment to Division II of the Transportation Code

APPROVALS: DATE

DIRECTOR OF DIVISION PREPARING ITEM _________________ ____________

FINANCE _______________________________________________ ____________

EXECUTIVE DIRECTOR/CEO ______________________________ ____________

SECRETARY ________________________________________ ____________

ADOPTED RESOLUTION BE RETURNED TO Chris Hayashi

ASSIGNED SFMTAB CALENDAR DATE: ___________________

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PURPOSE

Amending San Francisco Transportation Code, Division II, by amending Sections 1122(a) and (b) to require SFMTA, beginning in fiscal year 2010-2011, and at least every other fiscal year thereafter, to conduct a hearing to determine whether the rates of fare and cap on gate fees should be changed, and to increase the Taxi Mileage and Wait Time Fares and establish the following three new fees: (1) a radio dispatch fee for non-peak time service; (2) a radio dispatch fee for peak time service; and (3) a fuel surcharge fee.

GOAL

Goal 1: Customer Focus: To provide safe, accessible, clean, environmentally sustainable service and encourage the use of auto-alternative modes through the Transit First Policy.

Objective 1.5: Increase percentage of trips using more sustainable modes (such as transit, walking, bicycling, rideshare)

The creation of radio response fees will incentivize trips to underserved areas where private vehicle use is more common, and allow those customers to use a San Francisco taxicab rather than extending their own carbon footprint.

Seventy-seven percent of San Francisco’s taxicab fleet is comprised of hybrid and CNG vehicles, making taxicab use oftentimes the more sustainable mode of transportation than the average private vehicle. Furthermore taxicab use will help to relieve parking congestion.

Goal 3: External Affairs/Community Relations: To improve the customer experience, community value, and enhance the image of the SFMTA, as well as ensure SFMTA is a leader in the industry.

Objective 3.1: Improve economic vitality by growing relationships with businesses, community, and stakeholder groups.

This meter increase will improve the economic vitality of drivers based upon increased income, and will also provide better service to the public as drivers will feel more rewarded for their efforts.

DESCRIPTION

The last time taxi the base meter fares were increased was in 2003 (except for a $2.00 airport charge authorized in 2006 that drivers were allowed to pass on to customers).

Under Transportation Code 1122(a), beginning in calendar year 2010 and at least every other calendar year thereafter the SFMTA Board is required to hold a hearing to determine, in its sole discretion, whether the rates of fare and cap on gate fees then in effect should be increased, decreased or remain unchanged.

No hearing was held in 2010, and this matter has not been reviewed by the Board of Directors since the SFMTA took over regulation of the taxi industry.

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The SFMTA is in the process of issuing a Request for Proposals (RFP) to identify best practices to establish an automatic indexing methodology for taxi meter fares going forward and as well as the appropriate fare from which to index. Once the RFP is completed, the Board will be asked to approve a formal automatic indexing policy for taxi meter fares and establish the appropriate base meter fares during the FY 2013 and FY 2014 budget process.

As meter fares have not been increased since 2003, and to comply with Section 1122(a) of the Transportation Code, it is recommended that a public hearing be held on May 17, 2011 to authorize the following three fare changes (pending the results of the RFP):

Radio Dispatch Fee

A radio dispatch fee, which already exists in other jurisdictions, is recommended as an incentive for drivers to respond to radio calls and can be charged by drivers as a flat fee to customers. It will also ensure better response times for customers requesting taxi service.

Additionally, a peak time radio dispatch fee will incentivize dispatch pick ups during the busiest shift times. The busiest taxicab shift times, or peak hours, are currently between the hours of 4pm and 4am on Thursday, Friday and Saturday. It is during these times when demand for taxis is at its highest, and when it is most difficult to get a taxicab. Members of the public often complain about wait times in excess of one hour or that a taxicab simply never showed up despite numerous calls to multiple taxicab companies. This situation is more acute when a passenger is calling from residential neighborhoods such as the Outer Richmond or Sunset districts.

Peak time radio dispatch fees were also recommended as a means of improving taxi service in a 2007 report by the Goldman School of Public Policy entitled: “San Francisco’s taxi Dispatch Service: Improving Reliability and Response”, which can be accessed at http://www.taxi-library.org/goldman-dispatch-2007.pdf.

Based on the above, the following radio dispatch fees are recommended:

• Add a $2.00 radio dispatch fee (flat fee) that a driver may charge when responding to a dispatch request during non peak hours; or

• Add a $3.00 peak time radio dispatch fee (flat fee) that a driver may charge when responding to a dispatch request during peak times (4:00pm-4:00am Thursday, Friday and Saturday nights).

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Fuel Surcharge Fee:

Since the last meter rate increase in 2003, the price of fuel has steadily gone up nationally:

Year	Price per Gallon
2003	$1.59
2004	$1.88
2005	$2.30
2006	$2.59
2007	$2.80
2008	$3.27
2009	$2.35
2010	$2.79
2011	$3.27

Source: Bureau of Labor Statistics

According to a January 2011 analysis by the Bureau of Labor Statistics, San Francisco gas prices are consistently 7-10 percent higher than the national gas price averages. Given the significant increases to fuel costs, a fuel surcharge fee is also recommended as follows:

· $0.10 per 1/5 of a mile and $.10 per minute of wait time.

This fee is dependent upon high fuel prices, should the price of fuel decrease, the Board of Directors will be asked to remove this surcharge.

Wait Time and Mileage Fare:

Based on industry comparisons, a $0.10 per 1/5 of a mile and $0.10 per minute of wait time increase is also recommended to the mileage and wait time fares as follows:

· Increase the mileage and wait time fares from $0.45 per 1/5 mile ($2.25/mile) to $0.55 per 1/5 mile ($2.75/mile), and $0.45 per minute ($27/hour) to $0.55 ($33/hour).

No changes are recommended to the flag drop rate at this time as San Francisco already has flag drop rates higher than most other jurisdictions that were surveyed.

US City	2011 Flag Drop Rates
San Jose	$3.50
San Francisco	$3.10
Washington D.C.	$3.00
Los Angeles	$2.85
Daly City	$2.85
New York City	$2.50
Houston	$2.50
Chicago	$2.25

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These fare recommendations would bring San Francisco’s mileage and per minute rates just below the high end of mileage and per minute rates nationally:

Per mile rates nationally: ($1.80-$2.80)

Dallas/Chicago $1.80

Houston $1.87

Atlanta /NYC $2.00

San Francisco $2.25 (current)

Philadelphia $2.30

Miami/Dade $2.40

Portland/Seattle $2.50

Los Angeles $2.70

San Francisco $2.75 (proposed without fuel surcharge)

Boston/San Diego $2.80

San Francisco $2.85 (proposed with fuel surcharge)

Per hour waiting time rates nationally: ($18.00-$30.00)

Dallas $18.00

Chicago $20.00

Houston $20.00

Atlanta $21.00

Philadelphia $22.02

San Diego $23.00

NYC $24.00

Miami/Dade $24.00

San Francisco $27.00 (current)

Boston $28.20

Los Angeles $29.19

Seattle/Portland $30.00

San Francisco $33.00 (proposed without fuel surcharge)

San Francisco $39.00 (proposed with fuel surcharge)

Also, in accordance with Article 4, Section 10 of the SFMTA Board Rules of Order for the Revision of Rates, Charges, Fares, Fees and Fines a notice has been published of these intended changes in an official newspaper of the City and County for five days. In accordance with said rules, the May 17, 2011 hearing date is not less than fifteen days after the last publication of said notice.

The City Attorney has reviewed this report.

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ALTERNATIVES CONSIDERED

Alternatives include not approving the new fares or raising the existing fares. Approval of these new fares and increasing the existing fares does not preclude the SFMTA Board of Directors in establishing an automatic indexing fare policy in the future.

FUNDING IMPACT

There will be no impact to the SFMTA but there will be an impact to taxi customers and taxi drivers.

OTHER APPROVALS RECEIVED OR STILL REQUIRED

Staff has submitted this legislation increasing taxi fares, imposing new taxi fees, and changing the schedule for review of fares and gate fees to the Planning Department for environmental review under the California Environmental Quality Act (CEQA). That review should be completed and the result communicated to staff prior to the meeting of May 17, 2011 at which this matter is scheduled to be heard. Staff will report on the outcome of the CEQA review at that meeting.

RECOMMENDATION

That the SFMTA Board of Directors adopt the proposed resolution amending San Francisco Transportation Code, Division II, Sections 1122(a) and (b) to require SFMTA, beginning in fiscal year 2010-2011, to conduct a hearing to determine whether the rates of fare and cap on gate fees should be changed, and to increase the taxi mileage and wait time fares and establish the following three new fees: (1) a radio dispatch fee for non peak time services; (2) a radio dispatch fee for peak time services; and (3) a fuel surcharge fee.

SAN FRANCISCO

MUNICIPAL TRANSPORTATION AGENCY

BOARD OF DIRECTORS

RESOLUTION No. ______________________

WHEREAS, Transportation Code section 1122(a) states that beginning in Calendar year 2010 and at least every other calendar year thereafter the SFMTA Board shall hold a hearing to determine, in its sole discretion, whether the taxi fares and gate fees then in effect should be increased, decreased or remain unchanged; and,

WHEREAS, No hearing was held in 2010, and the issue of meter fares has yet to be reviewed by the SFMTA Board since it took over regulation of the taxi industry; and,

WHEREAS, Taxi meter fares have not increased since 2003 except for a $2.00 airport fare authorized in 2006; and,

WHEREAS, The SFMTA Board has sole discretion to determine whether taxicab meter rates should be increased, decrease, or remain unchanged; now, therefore, be it

RESOLVED, That the SFMTA Board of Directors authorizes a taxicab meter fare increase of $0.10 per 1/5^th of a mile (from $0.45 per 1/5^th of a mile, or $2.25 per mile), to $0.55 per 1/5 of a mile, or $2.75 per mile; and be it

FURTHER RESOLVED, That the SFMTA Board of Directors authorizes a taxicab meter fare increase of $0.10 per minute of waiting time or traffic delay (from $0.45 per minute, or $27.00 per hour), to $0.55 per minute of waiting time or traffic delay, or $33.00 per hour; and be it

FURTHER RESOLVED, That the Board of Directors authorizes the creation of three new fares as follows:

· A $2.00 radio dispatch fare for non peak periods (flat fare) that a driver may charge when responding to a dispatch request during non peak hours; or

· A $3.00 peak time radio dispatch fare (flat fare) that a driver may charge when responding to a dispatch request during peak times (4:00pm-4:00am Thursday, Friday and Saturday nights); and

· A Fuel Surcharge of $0.10 per each minute of waiting or traffic delay time and $0.10 per 1/5 of a mile; and be it

FURTHER RESOLVED, That the Board of Directors shall hold a hearing in fiscal year 2010-2011, and at least every other fiscal year thereafter, to determine whether to change taxi fares and the cap on gate fees.

I certify that the foregoing resolution was adopted by the San Francisco Municipal Transportation Agency Board of Directors at its meeting of __________________.

______________________________________

Secretary to the Board of Directors

San Francisco Municipal Transportation Agency

[Taxi Fare Increase and New Fees]

Resolution amending Section 1122 of Division II of the San Francisco Transportation Code by (1) increasing taxi fares by $0.10 per fifth of a mile and $0.10 per minute of traffic delay time, adding a fuel surcharge fee of $0.10 per mile and $0.10 per minute of waiting time, and allowing drivers to charge a radio dispatch fee of $3.00 per trip during peak times and $2.00 per trip during other times, while keeping the flag (charge per first fifth of a mile) at the current level; and (2) requiring SFMTA to conduct a hearing on changing taxi fares and the cap on gate fees at least every other fiscal year beginning in fiscal year 2010-2011.

NOTE: Additions are [begin addition] single-underline Times New Roman [end addition] ;

deletions are [begin deletion] ~~strike-through Times New Roman~~ [end deletion] .

The Municipal Transportation Agency Board of Directors of the City and County of San Francisco enacts the following regulations:

Section 1. Article 1100 of Division II of the Transportation Code is hereby amended by amending Section 1122 to read as follows:

Sec. 1122. Fees, Rates and Charges.

(a) Beginning in [begin addition] fiscal [end addition] [begin deletion] ~~calendar~~ [end deletion] year 2010- [begin addition] 2011 [end addition] and at least every other [begin addition] fiscal [end addition] [begin deletion] ~~calendar~~ [end deletion] year thereafter [begin addition] , [end addition] the SFMTA Board shall hold a hearing to determine, in its sole discretion, whether the rates of fare and cap on gate fees then in effect should be increased, decreased or remain unchanged.

(b) Taxi Fares.

(1) The fare for Taxis and Ramp Taxis shall be as follows: $3.10 for the first fifth of a mile or "flag"; $ [begin addition] 0.55 [begin deletion] $ [end deletion] [end addition] [begin deletion] ~~0.45~~ [end deletion] [begin deletion] [end deletion] for each additional fifth of a mile or fraction thereof; [begin addition] and [end addition] $ [begin addition] 0.55 [begin deletion] $ [end deletion] [end addition] [begin deletion] ~~0.45~~ [end deletion] [begin deletion] [end deletion] for each one minute of waiting or traffic delay time.

( [begin addition] 2) Drivers of Taxis and Ramp Taxis responding to dispatch calls are authorized to collect a flat fee, in addition to the fare, as follows: $3.00 per trip during peak times (4:00 p.m. - 4:00 a.m. on Thursday, Friday and Saturday nights), or $2.00 per trip during all other times. [end addition]

[begin addition] (3) Drivers of Taxis and Ramp Taxis shall charge a fuel surcharge fee of $0.10 for each minute of waiting or traffic delay time and $0.10 for each fifth of a mile or fraction thereof. [end addition]

( [begin addition] 4 [begin deletion] 2 [end deletion] [end addition] ) Out-of-Town Trips. Drivers are authorized to collect 150 percent of the metered rate for out-of-town trips exceeding 15 miles beyond City limits. For trips exceeding 15 miles from San Francisco International Airport and not terminating within the City limits of San Francisco, the fare will be 150 percent of the metered rate except for those trips originating at the San Francisco International Airport with a destination across the Golden Gate or Bay Bridges the 15-mile limit will apply from the City limits of San Francisco as set forth above. For taxicab trips originating at San Francisco International Airport that incur an airport trip fee, the taxicab driver may collect $2.00 of that trip fee from the passenger upon receipt of cab fare from the passenger.

( [begin addition] 5 [end addition] [begin deletion] 3 [end deletion] ) Bridge Tolls. Drivers are authorized to collect bridge tolls in advance from passengers whose destination requires the crossing of a toll bridge, regardless of the direction in which the toll is collected.

( [begin addition] 6 [end addition] [begin deletion] 4 [end deletion] ) Cleaning Fee. Drivers are authorized to collect a cleaning fee of up to $100 from any passenger who permanently stains the interior of the vehicle or who renders the vehicle temporarily unfit for for-hire passengers because of spillage of any substance such that the vehicle must be taken out of service and cleaned.

( [begin addition] 7 [end addition] [begin deletion] 5 [end deletion] ) Credit Card Processing Fees. A Driver may elect to establish his or her own account for credit card charge processing services. No Color Scheme may retaliate against a Driver for electing not to establish his or her own credit card processing account.

(1) Cap on Gate Fees. The mean gate fee charged drivers by a taxicab company may not exceed $96.50 for a shift of 10 hours or longer. The cap shall be prorated at $9.65 per hour for shifts shorter than 10 hours. The mean gate fee shall be determined by adding together the gate fees charged by the company for all available shifts during one week and dividing that total by the number of available shifts during the week.

(2) Gate Fee Surcharge For Low Emission Vehicles. Notwithstanding subsection 1122(c)(1), a Color Scheme may collect a surcharge of $7.50 on any gate fee charged for use of a low emission vehicle, subject to the requirements of this subsection. The surcharge shall be for a shift of ten hours or longer, and shall be prorated at $0.75 per hour for shifts shorter than ten hours. The surcharge shall be in addition to the company's basic gate fee and any other surcharges, increases, or adjustments to the gate fee cap authorized by the City, and may be collected for the life of the vehicle.

(3) Definition of "Low Emission Vehicle." For purposes of this Section, "low emission vehicle" means a Taxi or Ramp Taxi approved by the SFMTA that is rated as SULEV (Super Ultra Low Emission Vehicle) or better by the California Air Resources Board. "Low emission vehicle" shall also include a vehicle that is rated as ULEV (Ultra Low Emission Vehicle) if that vehicle was approved by the Taxi Commission and placed into service as a San Francisco Taxi or Ramp Taxi prior to March 1, 2009.

(d) Oversized Luggage Fee. A Driver is entitled to charge an additional amount not to exceed $1 for each piece of luggage that cannot be conveyed either in the passenger compartment of the vehicle or in the vehicle's trunk with the trunk-lid closed. Each passenger shall be entitled to have conveyed without charge such valise or small package as can be conveniently carried within the vehicle. Other than the charges authorized by this subsection, no charge shall be made by the driver for loading or unloading baggage.

(e) Emergency Rates. During any period of emergency, strike or other impairment or lack of municipal railway transportation declared by the Mayor and affecting the entire City or any part thereof, Drivers of Motor Vehicles for Hire shall accept passengers traveling in the same general direction, though each passenger or passengers may have differing points of pickup or discharge. At each stop for the pickup or discharge of a passenger or passengers, a Driver may collect, or tabulate for later collection at the passenger's point of discharge, the pro-rata share of the amount due as indicated by the meter, and said meter shall then be reset. The rates shall be those set forth in Section 1122(b).

(f) Deduction for Time While Disabled. In the event that a taxicab breaks down while conveying for hire any passenger or passengers, the Driver may not charge any passenger for the time during which the vehicle is disabled.

(g) Drivers must accept major credit cards (including at a minimum Visa, MasterCard, American Express and Discover), as payment of taxi fare.

APPROVED AS TO FORM:

DENNIS J. HERRERA, City Attorney

By:

Mariam Morley

Deputy City Attorney

I certify that the foregoing resolution was adopted by the San Francisco Municipal Transportation Agency Board of Directors at its meeting of .

Secretary to the Board of Directors

San Francisco Municipal Transportation Agency

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