Title
An Ordinance to Amend Sections 7:154 and 7:159 of Chapter 85 (Taxicabs) of Title VII of the Code of the City of Ann Arbor and to Add a New Section, Which New Section Shall be Designated as Section 7:159a [Revised Standards for Meter Rates] (Ordinance No. ORD14-20)
Memorandum
The recommended ordinance language would:
- Permit Council to establish a maximum taxicab meter rate
- Require companies to annually choose the meter rate they desire to charge and advertise such both outside and inside their vehicle
- Permit a company to change their metered rate once during the year after their annual rate certification
The City's Taxicab Board recommends Council adopt the attached amendment to the City's Taxicab Ordinance.
The Board anticipates some companies may attempt to increase rates and some companies may reduce rates, depending on the type of service delivered.
The Board considered two methods to de-regulate rates. The first was to modify the ordinance to eliminate the establishment of a maximum meter rate. The second was to leave the existing structure in place but recommend to City Council a maximum rate that would allow companies to set lower prices. A maximum rate set at a high level would de-regulate rates across companies.
Since the impact of allowing companies to price their fares independently can vary, and may or may not be beneficial in the long-run, the Board recommends modifying the ordinance but leaving Council the ability to establish, by resolution, a maximum rate.
The City's Taxicab Board holds regular public meetings to administer the city's taxicab ordinance. These meetings are frequently attended by the taxicab companies operating within the city. On a number of occasions, the companies have raised a request to de-regulate taxicab meter fares, so that the companies can more easily deal with the increasing costs of fuel, insurance, etc. Historically, the Taxicab Board heard their requests, compared Ann Arbor met...
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