4. TAXI BY-LAW - AMENDMENTS

REGLEMENT SUR LES SERVICES DE TAXI - MODIFICATIONS

Committee Recommendations as amended

1) That Council approve amendments to By-law Number 2005-481, being the Taxi By-law, to:

a) allow the proposed (approximate 10% increase) taxi meter rate adjustment as detailed below to be effective June 1, 2008, despite existing regulations requiring the adjustment be effective October 1^st :

- $3.20 for the drop rate including the first 110 meters of part thereof,

- $0.16 for each 93 meters or part thereof,

- $0.15 for each 23 seconds of waiting time, and

that subject to approval of the above taximeter rate adjustment to allow for an additional 10 cent surcharge on the drop rate to $3.30 from June 1, 2008 to October 1, 2010 to offset the cost of the required in-cab cameras;

b) amend the existing Police Record Check (PRC) requirements as a condition for renewal of a standard and accessible taxicab driver license to:

- change the effective date from March 1, 2008 to January 1, 2009,

- require the licensee to provide the PRC information every three years instead of two years,

- provide that the date of the last accepted PRC be used as the start date to calculate the three years,

- provide that only a third of the licensees will be required to submit a PRC each year, (the Chief License Inspector to require that the 800 licensees with the most seniority be required to provide a new PRC in 2009, and the 800 licensees with the next most seniority be required to provide their new PRC in 2010, with the rest having to submit their new PRCs in 2011),

- in the case of license renewals that a PRC dated less than 180 days from the date of the license renewal be considered valid, and

- in the case of applications for new driver licenses, that a PRC dated less than 90 days from the date of the license renewal be considered valid;

c) amend the Taxi By-law Fee Schedule “C” to:

- Impose a $35 surcharge on all Taxicab Driver and Taxi Plate Holder license fees (new and renewals - standard cabs and accessible cabs) in 2009, 2010 and 2011,

- Impose a surcharge on all Taxicab Broker license fees in 2009, 2010 and 2011, as follows:

$140 for Taxicab Brokers having 1 to 24 taxicabs;

$1,000 for Taxicab Brokers having 25 to 99 taxicabs;

$7,255 for Taxicab Brokers having 100 and more taxicabs,

- increase the Taxi Plate Holder to Taxi Plate Holder transfer fee from the current $3,800 to $4,800 to be effective April 30, 2009 until April 30, 2012 or until such time the camera financing cost recovery exercise is complete.

2) That Council direct staff to report back on existing standards for taxicabs that will, in part, identify measures available to encourage the use of more fuel efficient vehicles (e.g. Hybrid vehicles).

3) That the Chief License Inspector be required to work with the Taxi Stakeholders Consultation Group and the Taxi Industry to identify and implement a communications and enforcement strategy to eradicate the use of illegal underground taxicab services (e.g. Bandit Cabs).

Recommandations modifiées du comité

1) Que le Conseil approuve les modifications au règlement sur les services de taxi, numéro 2005-481 afin de :

a) permettre le rajustement proposé des tarifs de taximètre (augmentation d’environ 10 %) comme il est indiqué ci‑dessous, à compter 1^er juin 2008, malgré le règlement actuel qui stipule que les rajustements doivent prendre effet le 1^er octobre :

- 3,20 $ pour la course, y compris les premiers 110 mètres ou une partie de ceux‑ci,

- 0,16 $ pour chaque 93 mètres, ou partie de ceux‑ci,

- 0,15 $ pour chaque 23 secondes ou partie de celles‑ci; et

que, sous réserve de l’approbation de la recommandation 1(a), le tarif de taximètre soit rajusté une autre fois pour percevoir des droits supplémentaires additionnels de 10 cents a 3,30 $ pour la course a compter du 1^er juin 2008 au 1^er octobre 2010 seulement afin de compenser le coût d’achat des caméras de sécurité pour les taxis.

b) modifier les actuelles exigences de vérification du casier judiciaire (VCJ) comme condition de renouvellement de permis de chauffeur de taxi normal et accessible, c’est‑à-dire :

- changer la date d’effet du 1^er mars 2008 au 1^er janvier 2009,

- exiger que les détenteurs de permis fournissent les renseignements du VCJ tous les trois ans plutôt que tous les deux ans;

- prévoir que la date de la dernière VCJ acceptée serve de date de départ afin de calculer les trois années;

- prévoir que seul un tiers des détenteurs de permis sera tenu de fournir une VCJ chaque année; (autoriser l’inspecteur en chef des permis à exiger que les 800 détenteurs de permis ayant le plus d’ancienneté présentent leur nouvelle VCJ en 2009, et d’exiger que les 800 détenteurs suivant soient tenus de fournir leur nouvelle VCJ en 2010, et le restant des détenteurs de permis auront à presenter leur nouvelle VCJ en 2011),

- dans le cas d’un renouvellement de permis, qu’une VCJ présentée moins de 180 jours à compter de la date de renouvellement du permis soit jugée valide;

- dans le cas de demandes de nouveaux permis de conduire, une VCJ datée de moins de 90 jours à compter de la date de renouvellement du permis soit jugée valide.

c) modifier le barème des tarifs « C » du règlement sur les services de taxi afin de :

- percevoir des droits supplémentaires de 35 $, en 2009, 2010 et 2011 seulement, sur tous les droits d’immatriculation des chauffeurs de taxi et des détenteurs de plaque de taxi (nouveaux et renouvellements – taxis standard et taxis accessibles),

- percevoir des droits supplémentaires pour les permis de concessionnaire de taxi en 2009 et 2010 seulement, c’est‑à-dire :

- 140 $ pour les concessionnaires de taxi qui possèdent 1 à 24 taxis;

- 1 000 $ pour les concessionnaires de taxi qui possèdent 25 à 99 taxis;

- 7 255 $ pour les concessionnaires de taxi qui possèdent 100 taxis et plus;

- Augmenter les frais de transfert de détenteur de plaque de taxi à un autre détenteur de plaque de taxi de l’actuel montant de 3 800 $ à 4 800 $, à compter du 30 avril 2009 au 30 avril 2012 ou jusqu'à ce que l’exercice de financement des cameras soient completé.

2) Que le Conseil demande au personnel de signaler en partie les normes actuelles concernant les taxis qui permettront de désigner une mesure disponible afin de favoriser l’utilisation de véhicules plus éco-énergétiques (c.‑à‑d. les véhicules hybrides).

3) Que l’inspecteur en chef des permis soit tenu de collaborer avec le groupe consultatif des intervenants du taxi et avec l’industrie du taxi dans le but d’élaborer et mettre en œuvre une stratégie des communications et d’application dans le but de faire échec à l’utilisation de services de taxis clandestins illégaux.

Documentation

1. Deputy City Manager's report (Community and Protective Services) dated 14 May 2008 (ACS2008-CPS-BYL-0024). This report replaces the copy originally printed in the agenda (ACS2008-CPS-BYL-0022 refers).

Report to/Rapport au :

Community and Protective Services Committee

Comité des services communautaires et de protection

and Council / et au Conseil

14 May 2008 / le 14 mai 2008

Submitted by/Soumis par : Steve Kanellakos,

Deputy City Manager/Directeur municipal adjoint,

Community and Protective Services/ Services communautaires et de protection

Contact Person/Personne ressource ; Susan Jones,

DirectorBy-law and Regulatory Services/Directrice, Service des reglements municipaux

(613) 580-2424 x25536, susan.jones@ottawa.ca

City-Wide/ à l'échelle de la Ville

Ref N°: ACS2008-CPS-BYL-0024

SUBJECT :	TAXI BY-LAW – AMENDMENTS
OBJET :	REGLEMENT SUR LES SERVICES DE TAXI - MODIFICATIONS

REPORT RECOMMENDATIONS

1) That the Community and Protective Services Committee recommend that Council approve amendments to By-law Number 2005-481, being the Taxi By-law, to:

a) allow the proposed (approximate 10% increase) taxi meter rate adjustment as detailed below to be effective June 1, 2008, despite existing regulations requiring the adjustment be effective October 1^st :

- $3.20 for the drop rate including the first 110 meters of part thereof,

- $0.16 for each 93 meters or part thereof,

- $0.15 for each 23 seconds of waiting time, and

that subject to approval of the above taximeter rate adjustment to allow for an additional 10 cent surcharge on the drop rate to $3.30 from June 1, 2008 to October 1, 2010 to offset the cost of the required in-cab cameras;

b) amend the existing Police Record Check (PRC) requirements as a condition for renewal of a standard and accessible taxicab driver license to:

- change the effective date from March 1, 2008 to January 1, 2009,

- require the licensee to provide the PRC information every three years instead of two years,

- provide that the date of the last accepted PRC be used as the start date to calculate the three years,

- provide that only a third of the licensees will be required to submit a PRC each year, (the Chief License Inspector to require that the 800 licensees with the most seniority be required to provide a new PRC in 2009, and the 800 licensees with the next most seniority be required to provide their new PRC in 2010, with the rest having to submit their new PRCs in 2011),

- in the case of license renewals that a PRC dated less than 180 days from the date of the license renewal be considered valid, and

- in the case of applications for new driver licenses, that a PRC dated less than 90 days from the date of the license renewal be considered valid;

c) amend the Taxi By-law Fee Schedule “C” to:

- Impose a $35 surcharge on all Taxicab Driver and Taxi Plate Holder license fees (new and renewals - standard cabs and accessible cabs) in 2009, 2010 and 2011,

- Impose a surcharge on all Taxicab Broker license fees in 2009, 2010 and 2011, as follows:

$140 for Taxicab Brokers having 1 to 24 taxicabs;

$1,000 for Taxicab Brokers having 25 to 99 taxicabs;

$7,255 for Taxicab Brokers having 100 and more taxicabs,

- increase the Taxi Plate Holder to Taxi Plate Holder transfer fee from the current $3,800 to $4,800 to be effective April 30, 2009 until April 30, 2012 or until such time the camera financing cost recovery exercise is complete.

2) That the Community and Protective Services Committee receive Document 1 entitled: “Implementation of Taxi Security Cameras and Protocol ” for information.

3) That the Community and Protective Services Committee recommend that Council direct staff to report back on existing standards for taxicabs that will, in part, identify measures available to encourage the use of more fuel efficient vehicles (e.g. Hybrid vehicles).

4) That the Chief License Inspector be required to work with the Taxi Stakeholders Consultation Group and the Taxi Industry to identify and implement a communications and enforcement strategy to eradicate the use of illegal underground taxicab services (e.g. Bandit Cabs).

RECOMMANDATIONS DU RAPPORT

1) Que le Comité des services communautaires et de protection recommande que le Conseil approuve les modifications au règlement sur les services de taxi, numéro 2005-481 afin de :

a) permettre le rajustement proposé des tarifs de taximètre (augmentation d’environ 10 %) comme il est indiqué ci‑dessous, à compter 1^er juin 2008, malgré le règlement actuel qui stipule que les rajustements doivent prendre effet le 1^er octobre :

- 3,20 $ pour la course, y compris les premiers 110 mètres ou une partie de ceux‑ci,

- 0,16 $ pour chaque 93 mètres, ou partie de ceux‑ci,

- 0,15 $ pour chaque 23 secondes ou partie de celles‑ci; et

- que, sous réserve de l’approbation de la recommandation 1(a), le tarif de taximètre soit rajusté une autre fois pour percevoir des droits supplémentaires additionnels de 10 cents a 3,30 $ pour la course a compter du 1^er juin 2008 au 1^er octobre 2010 seulement afin de compenser le coût d’achat des caméras de sécurité pour les taxis.

b) modifier les actuelles exigences de vérification du casier judiciaire (VCJ) comme condition de renouvellement de permis de chauffeur de taxi normal et accessible, c’est‑à-dire :

- changer la date d’effet du 1^er mars 2008 au 1^er janvier 2009,

- exiger que les détenteurs de permis fournissent les renseignements du VCJ tous les trois ans plutôt que tous les deux ans;

- prévoir que la date de la dernière VCJ acceptée serve de date de départ afin de calculer les trois années;

- prévoir que seul un tiers des détenteurs de permis sera tenu de fournir une VCJ chaque année; (autoriser l’inspecteur en chef des permis à exiger que les 800 détenteurs de permis ayant le plus d’ancienneté présentent leur nouvelle VCJ en 2009, et d’exiger que les 800 détenteurs suivant soient tenus de fournir leur nouvelle VCJ en 2010, et le restant des détenteurs de permis auront à presenter leur nouvelle VCJ en 2011),

- dans le cas d’un renouvellement de permis, qu’une VCJ présentée moins de 180 jours à compter de la date de renouvellement du permis soit jugée valide;

- dans le cas de demandes de nouveaux permis de conduire, une VCJ datée de moins de 90 jours à compter de la date de renouvellement du permis soit jugée valide.

c) modifier le barème des tarifs « C » du règlement sur les services de taxi afin de :

- percevoir des droits supplémentaires de 35 $, en 2009, 2010 et 2011 seulement, sur tous les droits d’immatriculation des chauffeurs de taxi et des détenteurs de plaque de taxi (nouveaux et renouvellements – taxis standard et taxis accessibles),

- percevoir des droits supplémentaires pour les permis de concessionnaire de taxi en 2009 et 2010 seulement, c’est‑à-dire :

140 $ pour les concessionnaires de taxi qui possèdent 1 à 24 taxis;

1 000 $ pour les concessionnaires de taxi qui possèdent 25 à 99 taxis;

7 255 $ pour les concessionnaires de taxi qui possèdent 100 taxis et plus;

- Augmenter les frais de transfert de détenteur de plaque de taxi à un autre détenteur de plaque de taxi de l’actuel montant de 3 800 $ à 4 800 $, à compter du 30 avril 2009 au 30 avril 2012 ou jusqu'à ce que l’exercice de financement des cameras soient completé.

2) Que le Comité des services communautaires et de protection reçoive le document 1 intitulé : « Renseignements concernant la mise en service de caméras et de protocole » à titre d’information.

3) Que le Comité des services communautaires et de protection recommande que le Conseil demande au personnel de signaler en partie les normes actuelles concernant les taxis qui permettront de désigner une mesure disponible afin de favoriser l’utilisation de véhicules plus éco-énergétiques (c.‑à‑d. les véhicules hybrides).

4) Que l’inspecteur en chef des permis soit tenu de collaborer avec le groupe consultatif des intervenants du taxi et avec l’industrie du taxi dans le but d’élaborer et mettre en œuvre une stratégie des communications et d’application dans le but de faire échec à l’utilisation de services de taxis clandestins illégaux.

EXECUTIVE SUMMARY

This report is to process a request by the Taxi Industry for a taximeter rate increase of approximately 10% to offset rising fuel, insurance and other operational costs; to address concerns related to the Criminal Record Check requirement by pushing the implementation date back 10 months and reducing the frequency from 2 to 3 years, and to address concerns related to the implementation of the taxicab security camera requirement by offsetting a portion of the cameras’ cost at the time of installation and imposing an additional license and tariff fee over a defined period to recover those costs. This report is also recommending that staff be directed to undertake a review of the existing regulations for taxicabs to identify potential changes for vehicle standards that could encourage the use of more fuel efficient vehicles and that staff identify and implement an effective education and enforcement campaign to help eliminate the use of illegal taxicab services. Information related to the implementation of the in-cab cameras and related privacy protocols are also being presented. Public consultation included several meetings with industry representatives and the publication of a Notice in the Ottawa Citizen, the Ottawa Sun and Le Droit on May 9^th, 2008, notifying the general public of the date, time and location of the Community and Protective Services Committee meeting at which the recommendations will be considered and staff contact information for people wishing to obtain more information, provide comment or wishing to attend the meeting in person.

RÉSUMÉ

Le présent rapport vise à répondre à une demande de l’industrie du taxi qui souhaite une augmentation du tarif de taximètre d’environ 10 % afin de compenser l’augmentation des coûts du carburant, de l’assurance et d’autres frais d’exploitation, de régler les préoccupations qui se rapportent à l’exigence de vérification du dossier criminel, en reculant la date de mise en œuvre de 10 mois et en réduisant la fréquence de deux à trois ans, et régler aussi les préoccupations qui se rapportent à la mise en place de caméras de sécurité dans les taxis en compensant une partie des coûts des caméras au moment de l’installation et en percevant des droits supplémentaires sur les coûts de permis et les tarifs pendant deux ans afin de compenser les coûts en question. Le présent rapport recommande également que l’on demande au personnel d’examiner le règlement actuel sur les services de taxi, afin de cerner les modifications éventuelles des normes concernant les véhicules qui pourraient favoriser l’utilisation de véhicules plus éco-énergétiques, et que ce même personnel désigne et mette en œuvre une campagne efficace de renseignements et d’application pour aider à éliminer les services de taxi illégaux. Les renseignements qui se rapportent à la mise en place des caméras de sécurité et des protocoles connexes du respect de la vie privée ont aussi été présentés. La consultation publique comptait un certain nombre de réunions avec des représentants de l’industrie et la publication, le 9 mai 2008, d’un avis dans l’Ottawa Citizen, l’Ottawa Sun et Le Droit, avisant le grand public de la date, de l’heure et de l’endroit de la réunion du Comité des services communautaires et de protection où des recommandations seront prises en compte et où il sera possible d’obtenir des renseignements sur les personnes-ressources pour ceux et celles qui souhaitent obtenir d’autres renseignements, formuler des commentaires ou qui souhaitent participer à la réunion en personne.

BACKGROUND

Section 151 of the Municipal Act, 2001, as amended, empowers municipalities to license and regulate any business wholly or partly carried on within a municipality even if the business is being carried on from a location outside the municipality and includes the sale or hire of goods or services on an intermittent or one-time basis. Section 156 (1) of the Act relating to taxicab licensing, empowers a municipality to establish the rates or fares to be charged for the conveyance of property or passengers; provide for the collection of the rates or fares charged for the conveyance; and limit the number of taxicabs or any class of them.

DISCUSSION

Recommendation 1 a) – Taximeter Rate Adjustment

Community and Protective Services recommends a taximeter rate increase of approximately 10%, to be effective June 1, 2008 as follows:

- $3.20 for the drop rate including the first 110 meters or part thereof,

- $0.16 for each 93 meters or part thereof,

- $0.15 for each 23 seconds of waiting time,

- with a temporary $0.10 drop charge increase to $3.30 from June 1, 2008 to October 1, 2010

On April 21, 2008, two Taxi Unions (CAW – Canada, Local 1688 and Local 6056) requested a ten (10%) percent increase in the taximeter rates charged to passengers. The request for a taximeter rate increase was made in accordance with Section 55 of By-law 2002-481, as amended (the Taxi By-law) which requires that applications for an adjustment to the taximeter rate be submitted to the Chief License Inspector prior to June 1^st of the year in which the adjustment is to take effect.

The most recent taximeter adjustments are as follows:

2001 November 6%

2003 May 10%

2004 October 7%

2005 October ($0.05 increase in the drop rate for Camera costs)

Taximeter Rate Adjustment - Calculations and Consultation

Taximeter rate adjustments are set by City Council in accordance with the Taxi By-law. When the Taxi By-law was adopted in 2005, it revised the Taxi Cost Index (TCI) based on research by Hara Associates. The updated formula incorporates new categories and adjusts percentages to more accurately reflect the true operational costs affecting the Ottawa Taxi Industry.

In that the last meter rate increase occurred in the fall of 2005, the Department calculated the annual TCI increases from April 2005 to April 2007 to reflect the TCI increase during the past year. The Statistic Canada information required to calculate the TCI variation between April 2007 and April 2008 was not available at the time the report was drafted. It is reasonable to expect the TCI increase over that time period to justify an increase in the taximeter rate of 10%. The following chart illustrates the impact of the recommended taximeter rate on various trip distances.

Chart #1
Weighting for 10% Taximeter Rate Increase
	Drop Rate		Incremental Distance rate		Waiting time		Trip Cost (without waiting time)
	Rate	First x Meters	Rate	Per x meters	Rate	Per x seconds	5 km	10 km	35 km
Existing	$2.90	101m	$0.15	95m	$0.15	23 sec	$10.55	$18.50	$57.95
Selected	$3.30	110m	$0.16	93m	$0.15	23 sec	$11.71	$20.32	$63.30
Includes an additional $0.10 charge on drop rate for installation/maintenance cost of camera

Increase Surcharge for Taxi Cameras

In addition to the proposed 10% tariff increase, the CAW has also requested that the current surcharge of five cents that is being collected to offset the cost of installing the camera be increased by 10 cents on the drop rate for a two year period only, beginning June 1, 2008. While staff had previously reported that the industry had collected sufficient funds to pay for and replace the cameras over a 7 year period, the Taxi Union has indicated that the revenues generated since 2005 were redirected to offset increased fuel, maintenance and insurance costs. In recognition that the proposed fare increase will get the Taxi industry to the appropriate tariff structure, the Department is in support of the requested increase on the surcharge provided it is in place for only two years and would end on October 1, 2010.

Worthy of note is the fact that the City of Ottawa is the only municipality in Canada that has provided incentives to its taxi industry to help reduce the price of the camera to $700. Similar cameras installed in other cities have been entirely paid for by the plate holder and currently range from $975 in Windsor, $1,200 in Toronto to $1,280 in Vancouver.

Under this unique and progressive proposal, it is believed that the taxicab service providers will agree to co-operate and make every reasonable effort to equip all taxicabs with cameras within the July 2, 2008 time frame.

Chart #2
Taxi Metre Rates-Canadian Cities ( January 2008)
City	Initial Drop			Incremental Distance Charges				Waiting Time				Trip
	Rate	Distance (m)	Rate		Per	Distance (m)	Rate		per	Time(sec)	5 Km
Calgary	$3.00	150	20¢		Per	150	20¢		per	30	$9.40
Winnipeg	$3.30	79.65	10¢		Per	79.65	10¢		per	13.18	$9.40
Toronto	$3.00	190	25¢		Per	170	25¢		per	31	$10.00
Edmonton	$3.60	150	20¢		Per	150	20¢		per	26.7	$10.00
Mississauga	$3.25	170	25¢		Per	170	25¢		per	33	$10.25
Regina	$3.40	120	10¢		Per	70	25¢		per	30	$10.30
Halifax	$3.00	54	12¢		Per	80	15¢		per	24.5	$10.32
Montreal	$3.15	0	$1.45		Per	1000	55¢		per	60	$10.40
Montreal Proposed	$3.00	0	$1.45		Per	1000	55¢		per	60	$10.25
Red Deer	$3.20	92	10¢		Per	67					$10.50
Vancouver	$2.75	62.51	10¢		Per	62.51	10¢		per	12.58	$10.55
Ottawa Existing	$2.90	101	15¢		Per	95	15¢		per	23	$10.55
Edmonton Proposed	$3.60	135	20¢		Per	135	20¢		per	26.7	$10.80
Saskatoon	$3.50	66	10¢		Per	66	10¢		per	15	$10.90
Victoria	$2.95	60.14	10¢		Per	60.14	10¢		per	10.05	$11.15
St. John's	$3.25	143	25¢		Per	143	25¢		per	34.6	$11.50
Ottawa Proposed	$3.30	110	16¢		per	93	15¢		per	23	$11.71

Taximeter Rate Adjustment – June 2008 Effective Date – By-law Amendment Required

Union representatives have requested that the taximeter rate adjustment be made effective June 2008. Community and Protective Services has no objection to a meter rate adjustment in June 2008, however, Section 55 (2) of the Taxi By-law stipulates that the date of the adjustment, if any, shall be October 1^st .

As such it is therefore necessary for this Section of the By-law to be amended to reflect the new implementation date, and the Department so recommends given that there will be only one meter check this year taking place in July.

Proposed Taximeter Rate Adjustment – Exceeds Taxi Cost Index Increment – By-law Amendment Required

Section 55. (5) of the Taxi By-law states: “The amount of the adjustment shall not exceed the percentage annual increment in the Taxi Cost Index as set out in Schedule “E” from April 30^th of the previous year to April 30^th of the current year that the rate is to take effect.”

The provision was intended to encourage the Taxi Industry to request taximeter rate adjustments on a regular (annual) basis rather than infrequent larger rate increases. Smaller increases allow the public to more readily adjust their commuting relative to the related costs and are more likely to be accepting of smaller annual increases rather than larger adjustments occurring every three to four years.

In that the last meter rate increase occurred in the fall of 2005, the Department calculated the annual TCI increases from April 2005 to April 2007 to reflect the TCI increase during the past year. The Statistic Canada information required to calculate the TCI variation between April 2007 and April 2008 was not available at the time the report was drafted. It is reasonable to expect the TCI increase over that time period to justify an increase in the taximeter rate of 10%. Despite the prescribed 7.7% staff recommends that a 10% increase be approved to account for the anticipated fuel increases (expected to exceed $1.50 per liter) before winter 2008.

The Department recommends that the provision of Section 55. (5) be amended by Council to allow the proposed increases.

The June implementation date will allow taxicab plate holders time to have their taximeters re-calibrated and adjusted to reflect the new rates before the July license renewal and meter check date.

Recommendation 1 b) - Police Record Check Requirements (PRC) – By-Law Amendments Required

Taxi Industry representatives recently expressed concerns that the requirement for a Police Record Check for drivers every two (2) years, approved by Council in 2005 with an effective date of March 2008 was too expensive and created uncertainty for their drivers as many would not be able to obtain the results of their PRC back from the Ottawa Police Service in time for the 2008 license renewal period.

The Ottawa Police Service recently reported that applications for PRC increase substantially over the Spring and Summer months due to an increase in volunteers seeking PRC for summer employment. The increase in PRC requests has resulted in longer delays.

The Department deems it is necessary to amend the existing requirements of the By-law to allow for additional flexibility and so recommends the following amendments to the Taxi By-law:

(a) Modify the effective date from March 1, 2008 to January 1, 2009;

(b) Require the licensee to provide new PRC information every three years instead of two years;

(c) Provide that the date of the last PRC accepted by By-law Services staff be used as the start date to calculate the three years;

(d) Provide that only a third of the licensees be required to provide their new PRC each year; (the CLI to require that the 800 licensees with the most seniority be required to provide a new PRC in 2009, and the 800 licensees with the next most seniority be required to provide their new PRC in 2010, with the rest having to submit their PRCs in 2011),

(e) In the case of license renewals, that a PRC dated less than 180 days from the date of the license renewal be considered valid;

(f) In the case of applications for new driver licenses, that a PRC dated less than 90 days from the date of the license renewal be considered valid.

Recommendation 1 c) – Security Camera Implementation – Surcharges - Fee Schedule Amendments

On November 5, 2005, City Council approved the City’s Taxi By-law (By-law No. 2005-481) for the licensing, regulating and governing of taxicabs, taxicab drivers, taxi plate holders and taxicab brokers. As part of this By-law, City Council approved the requirement for all taxicabs to be equipped with a security camera system approved by the Chief License Inspector by March 1, 2008. The benefit of such camera systems has been proven in other jurisdictions to enhance safety for both drivers and members of the public.

A number of issues related to the implementation of this requirement resulted in a taxi service disruption in March 2008. Subsequently, Council amended the implementation date for the taxi cameras to July 2, 2008, and directed staff to consult with the industry and to address related privacy issues. By-law and Regulatory Services staff has met with various taxi industry representatives over the past two months in an attempt to facilitate the implementation of the security camera and to resolve other matters. The attached Document 1 entitled: “Implementation of Taxi Security Cameras and Protocol” summarizes the issues discussed and the manner by which they will be resolved subject to the approval of the recommendations and undertakings listed in the summary. Privacy issues have also been addressed and will ensure that taxi images are downloaded by Ottawa Police Services only for the purpose of criminal investigations and the process is in compliance with the requirements of privacy legislation.

This recommendation deals with the cost of the security camera and a unique financing package that will allow the security camera to be installed and operational at a significantly reduced initial cost to the taxi plate holder. The Taxi Industry had expressed concern over the initial proposed installed cost of $1,280.

VerifEye Inc. was the successful vendor that won the bid to install cameras in taxis for the City of Ottawa. VerifEye’s cameras are in place in many cities across North America including Toronto, Windsor, New York, Chicago and Seattle. VerifEye was one of the few companies that could actually meet the specifications required to ensure its cameras could accommodate both the taxi industry and City’s mutual objective to enhance driver and public safety.

After several meetings of negotiations, VerifEye has agreed to reduce the installed cost of the camera system to $1,185 provided the cameras are purchased by July 31, 2008. Because of the financial losses incurred by the vendor who had increased its inventory in anticipation that the cameras were to be installed by March 2008, the vendor has advised that the cost of cameras purchased after July 31, 2008 will increase by $50. To help further minimize the financial impact that the initial purchase of these cameras will have on the taxi plate holder, the City has agreed to offset these costs by reducing the price of each camera by an additional $485 plus taxes. Therefore all taxi cameras purchased before July 31, 2008, will cost $700 plus tax or $750 plus tax if purchased after that date. The reduced price is only for the initial installation of cameras in the City’s existing taxi fleet or for any new plates that are issued for accessible taxicabs in 2008. All replacement cameras as well as cameras for new taxicab plates that may be issued in 2009 and beyond will be subject to the higher vendor rate.

The City will recover the difference per camera of $485 plus related taxes (x 1091 cameras = $575,000 approx.) by imposing a temporary $35 licensing fee surcharge during the 2009, 2010, and 2011 license periods only, on all taxicab driver licenses (new and renewals / standard and accessible). The proposed surcharge is expected to increase revenues by $360,000 that will be used to recover the cost of providing temporary financing.

A portion ($110,000) of the remaining costs to be recovered will be raised by imposing a surcharge on the broker license fees in 2009, 2010 and 2011 as follows:

License Fee Surcharge

Taxicab Broker with 1 – 24 Taxicabs $140

Taxicab Broker with 25 to 99 Taxicabs $1,000

Taxicab Broker with 100 or more Taxicabs $7,255

Finally, the remaining $105,000 (approx.) will be recovered by increasing the Taxicab Plate Holder transfer fee from the existing $3,800 transfer fee to $4,800. Thirty-Five such transfers are expected each year resulting in a projected increase in additional revenues approaching $105,000 over a three-year period beginning April 30^th of 2009. The transfer fee will be in effect for three years or until the cost recovery has been achieved.

Recommendation 2 - That the Community and Protective Services Committee receive Document 1 entitled: “Implementation of Taxi Security Cameras and Protocol ” for information.

Document 1 entitled : “Implementation of Taxi Security Cameras and Protocol ” provides a brief summary of measures the City has tentatively reached with the Taxi Industry Union representatives.

Recommendation 3 – That the Community and Protective Services Committee recommend that Council direct staff to report back on existing standards for taxicabs that will, in part, identify measures available to encourage the use of more fuel efficient vehicles (e.g. Hybrid vehicles).

Since amalgamation, Council has approved a number of changes to taxi vehicle standards to enhance taxi service to the public. Some of these changes included minimum size requirements for trunk space and vehicle length to ensure adequate room for customers and sufficient room to store luggage. In addition, lower licensing fees were introduced for Natural Gas Vehicles. In recognition that fuel prices are on the rise, vehicle standards have changed, and that cities are more cognizant of the need to reduce green house gas emissions, it is recommended that staff undertake a review of its existing regulations to identify measures that would encourage the use of more fuel efficient and environmentally friendly vehicles.

Recommendation 4 - That the Chief License Inspector be required to work with the Taxi Stakeholders Consultation Group and the Taxi Industry to identify and implement a communications and enforcement strategy to eradicate the use of illegal underground taxicab services (e.g. Bandit Cabs)

The proliferation of underground illegal taxicab services has become a serious issue for many cities across the world. Ottawa’s licensed taxicab industry has expressed concern about a number of local bandit operations and would like to see additional measures put in place that will permanently eradicate this potentially unsafe illegal business practice. In the past few years, the By-law Enforcement and Regulatory Services Branch has laid several hundred charges and has closed several illegal businesses. In addition, a “Don’t Let The Bandit Take You For a Ride” campaign was implemented in 2006 to educate the public and businesses about the problems associated with taking illegal taxis. Staff agrees that additional measures need to be put in place, which includes assigning a dedicated enforcement unit and a Bandit Taxi Hotline to report violations. It is further recommended that consultation with both the Taxi Industry and the soon to be formed “Taxi Stakeholders Consultation Group” be undertaken to identify and implement a new communications and enforcement strategy to eradicate the use of illegal underground taxicab services.

CONSULTATION

Public consultation included several meetings with industry representatives. While the publication of a Notice in the Ottawa Citizen, the Ottawa Sun and Le Droit on May 9^th, 2008, notified the general public of the date, time and location of the Community and Protective Services Committee meeting at which issues related to the Taxi By-law will be considered, together with staff contact information for people wishing to obtain more information, provide comment or wishing to attend the meeting in person. The specific recommendations of this report were not finalized in time to be included in the above-noted public notices. Therefore, a waiver of the public notice requirements is being sought by staff for the purposes of this report.

FINANCIAL IMPLICATIONS

There are no financial implications associated with this report other than with Recommendation 1(c).

The total one-time cost of $575,000 will be funded by additional 2008 program revenue in the By-law and Regulatory Services Branch.

The By-Law and Regulatory Services Operating Budget will have a one-time adjustment of $195,000 in 2009, $190,000 in 2010 and $190,000 in 2011 for the additional revenue arising from the temporary surcharges in taxi licensing fees. These additional one-time revenues will be contributed to the Tax Stabilization Reserve Fund.

CITY STRATEGIC DIRECTIONS

This report has no direct impact on the City’s Strategic Directions.

SUPPORTING DOCUMENTATION

Document 1 – Information Related to the Implementation of Taxi Security Cameras

DISPOSITION

Legal Services in consultation with By-law and Regulatory Services to process the amending By-law to Council for enactment.

Document 1

Implementation of Taxi Security Cameras and Protocol

Privacy Issues with Cameras
City Recommendation		Taxi Industry Response		City Response
Chief License Inspector to be responsible for downloading photos for by-law violations and forwarding photos to police for criminal investigations.		Union has requested that Taxi Camera pictures are only to be downloaded by police for criminal investigations only.		Taxi Camera pictures to be downloaded by Police for criminal investigations only.
Camera Costs / Specifications / Installation
City Recommendation	Taxi Industry Response		City Response
Verifye Dual Lens Camera with 4GB of memory to allow for 15 days of storage and a G-Force Trigger to record additional images when Taxi is in an accident or makes sudden moves such as swerving and braking. Cost is $1,280 installed.	Consider cost of cameras excessive Want more than two vendors to install cameras Do not want the G-Trigger Do not want the GPS capable feature Only want a week worth of memory		Agree to remove G-Trigger. Agree to reduce memory from 4GB to 2GB (7 days). Agree that GPS to be kept inactive. Vendor has reduced price of camera to $1,185 from $1,280 if camera purchased before July 31, 2008. Price of the camera to increase $50 after July 31 to $1,235. Cost at installation to be $700 plus tax. The difference ($485 plus taxes) to be funded over a 3-year period through temporary surcharges added to license fees. The City will pay the vendor the shortfall up front and recover costs from the taxi industry over three years. Cost recovery – Annual surcharges to be imposed during the 2009, 2010 and 2011 license periods as follows: -Drivers/Owners to pay an annual $35 license fee surcharge, -Brokers with 1-24 cabs to pay an additional $140 annual surcharge, -Brokers with 25 to 99 cabs to pay an annual fee surcharge of $1000, -Brokers with 100 or more cabs to pay an annual fee surcharge of $7,255. Increase in transfer fees from $3800 to $4800 April 30, 2009 to May 1, 2011 or until full cost recovery has been achieved.
Police Record Check for the Vulnerable Sector
City Recommendation	Taxi Industry Response		City Response
Beginning in 2008, all taxi drivers are required to submit a police record check every two years to renew license.	Union wants to delay the implementation of police record checks until 2010 for renewal of licenses. Beginning in 2010, licensees would only require a check every three years. In the interim, reinstate the form that licensees sign at renewals indicating that they do not have any outstanding criminal charges or convictions.		Because of high volume of work for Ottawa Police Service to process 3200 applications; it is recommended that police record checks be deferred to 2009 with a third of the licensees to be done each year. Any licensees who have already received their clearance for this year will be accepted and will not have to submit a new check until 2011. Each renewal period licensees will continue to sign forms confirming that they have no outstanding convictions or charges against them.
Other Recommendations
City Recommendation	Taxi Industry Response		City Response
Fare Increase	Taxi Union has initially requested 10% fare increase. To help recover costs to pay for the installation of cameras, the Taxi Union has requested that the five cents surcharge added in 2005 to the drop rate be increased by 10 cents for a two year period only.		Taxi Cost Index calculated to the beginning of April 2007 indicates Taxi Industry is eligible for a 7.7% increase. City will support a 10% increase in anticipation of rising fuel costs. In addition the City agrees to a temporary increase of 10 cents in the drop rate beginning June 1, 2008 and ending October 1, 2010.

TAXI BY-LAW - TAXIMETER RATE ADJUSTMENTS AND VERBAL UP-DATE ON THE IMPLEMENTATION OF TAXI CAMERAS

REGLEMENT SUR LES SERVICES DE TAXI - RAJUSTMENTS DES TARIFS DE TAXIMETRE ET PRESENTATION VERBALE CONCERNANT L’INSTALLATION DES CAMERAS ABORD LES TAXIS

ACS2008-CPS-BYL-0022 CITY WIDE / À L'ÉCHELLE DE LA VILLE

Moved by C. Leadman

WHEREAS staff from By-law and Regulatory Services have recently confirmed information regarding the recommended Taxi By-law amendments, including information concerning the proposed rate adjustments and surcharges,

AND WHEREAS this information was not available to staff in time to finalize the details of this new report, or to provide public notices as required under the City’s Public Notice By-law,

THERFORE BE IT RESOLVED that the Committee:

1. Waive the Rules of Procedure (Section 84(3) of the Procedure By-Law (being By-Law No. 2006-462) to permit the introduction of this late report; and,

2. Waive the requirements for the provision of public notice for the amendment of a licensing by-law, as provided in Schedule “A” of By-law 2002-522 (the Public Notice By-law).

CARRIED

The Committee received the revised report entitled “Taxi By-law Amendments (ACS2008-CPS-BYL-0024). Also received was a memo dated 14 May from the Director which provided an update on recent discussions between staff and the taxi unions.

Susan Jones, Director, By-Law and Regulatory Services, Community and Protective Services Department provided a detailed overview of the new report through a PowerPoint presentation. Copies of the presentation and the aforementioned memo are held on file.

Yusef Al Mezel, President, Canadian Auto Workers (CAW) Local 1688, stated the taxi industry had not sought an increase in meter rates over the last three years, partly because of a fear of losing business to illegal, or “bandit” cabs. However, he noted that this year, rising gas prices and an increase in insurance premiums and related operational costs had forced the industry to apply for a 10% meter rate increase.

He then outlined some additional concerns:

· Cameras - Mr. Al Mezel asked for a commitment from Committee and Council not to force the industry to buy new equipment, as he believed the industry was in a better position to find equipment at a good price.

· Camera installation - He said the industry wished to save the City any disruption of taxi service or from lawsuits by the equipment supplier, as he was aware a contract had already been signed.

· Increased cost of camera installation after 31 July 2008 - The speaker noted the cost of camera installation would rise by $50 after 31 July 2008, but felt that with three installers working with 1,100 taxicabs, there would be insufficient time to accomplish installation in all cabs, resulting in a deadline the industry could not meet. He asked that the $50 penalty be removed.

· G-Force Triggers (devices that record additional images when a taxi is in an accident or makes sudden moves such as swerving and braking) - Mr. Al Mezel asked that the requirement for the installation of these devices be removed, and that taxicabs be treated the same as any other vehicle.

· Increasing the age of cars introduced as taxicabs by one year - Referring to a clause in the By-Law not allowing the introduction of cars to be used as taxicabs more than four years old, the speaker asked that this be increased by one year, to five years, which could amount to a cost savings to drivers of between $2,000 - $3,000, to help offset the cost of purchasing required equipment, such as cameras, Global Positioning Systems (GPS), etc.

· “Bandit” cabs - Despite assurances that bandit cab drivers were being caught and charged, Mr. Al Mezel said he had yet to see any cases being completed, and asked that more work be done on this issue.

Acknowledging the Taxi By-law stipulated that no car used as a taxi could exceed seven years of age, Councillor Cullen asked for clarification as to why the industry was seeking to raise the age at which a car could enter into service as a taxi from four to five years, given that it had a two-year lifespan remaining as a taxicab. Mr. Al Mezel reiterated that the cost savings to drivers would help defray the cost of installing cameras, GPS systems, related operational costs and maintenance.

Responding to a query from Councillor Cullen as to why staff did not support relaxing the prescribed age limit for taxicabs, Ms. Jones noted that a significant amount of time since amalgamation had been committed to studying issues related to vehicle quality. She explained that prior to amalgamation, the average age of a vehicle in the City of Ottawa had been 15 years, and that inspectors often encountered unsafe situations related to excessive vehicle age. Ms. Jones stated that a best practices review undertaken by a consultant had indicated a good vehicle should have an earlier entry level, pointing out the Committee had reluctantly agreed to go from a recommended two years to four. She noted the maximum age of vehicles in Toronto was five years, with two being the maximum in New York City. Ms. Jones said that staff’s intent was to ensure that customers had excellent service, further noting that a significant number of studies had recognized the age of a vehicle impacted on its overall quality over time.

Ms. Jones also outlined for Councillor Cullen that the existing standards had first been reviewed in 2001, revisited in 2005, and would not likely need further revision unless a specific issue arose that would require examination. She offered that the current By-Law, the end product of several years’ hard work, might need tweaking in future, but she believed it had achieved Council’s objectives of ensuring a great taxi service for Ottawa.

At this point in the meeting, Chair Deans acknowledged the presence of the McCarthy family in the audience and recognized the family as an important reminder that taxis were regulated for safety and consumer protection. She thanked the McCarthy family for being in attendance.

Responding to a question from Councillor Leadman as to when taxi meters actually started running, particularly in the case of someone who might need assistance and require the use of an accessible cab, Ms. Jones explained that the charges started when a customer actually entered the vehicle, unless a customer had pre-arranged to book a cab for a specific time, in which case, the meter should be allowed to run from the point for which the appointment was made.

Referring to Ms. Jones’ mention of the 31 July camera installation deadline and Mr. Al Mezel’s contention that installers might be unable to meet this deadline for the City’s entire taxi fleet, Councillor Qadri wondered if there would be enough time to complete the task. Ms. Jones said the vendor had significant experience with camera installation in New York City and elsewhere, and had added a third installer to complement the original two. She further noted that were the fare increase to be approved, it would go into effect on the first of June; hence, if taxi drivers needed adjustments to their meters, it would be an opportune time to have cameras installed at the same time. Based on this two month period and on the vendors’ expertise, it was felt the time allowed for the installation of cameras was sufficient. Additionally, staff had received assurances from the vendor that if there were to be a backlog, additional personnel would be hired to complete the task..

Councillor Qadri then referred to a previous five-cent drop rate surcharge that had been approved two years earlier to help offset operating costs. He questioned what assurances or guarantees could be expected from the taxi industry that the new ten-cent rate would not be similarly consumed rather than be used to help offset the cost of the cameras. Ms. Jones responded that this was an area over which the City had no control and could offer no assurances. However, she noted the industry had previously indicated the earlier five-cent surcharge had been diverted to offset fuel increases and similar costs. Ms. Jones stated that the request for the ten-cent surcharge had come from the industry, which had committed to using this money to offset the cost of the cameras.

Responding to questions from Councillor Qadri regarding GPS, Ms. Jones explained that the cameras to be installed in the taxi fleet did not incorporate GPS, but were capable of having GPS systems attached to them. She noted all accessible cabs would have a GPS system beginning this summer, and she believed the industry was currently working through its collective agreement to negotiate a GPS system for all cabs. Ms. Jones said the industry could use either a camera-ready GPS system or a separate one; the City simply wanted to ensure that there would be one in place. She also explained that it was the intent to eventually have access to the taxis’ GPS systems to ensure that vehicles were taking the most direct routes and to ensure that accessible cabs were picking up fares.

Councillor Feltmate asked if the City was charging interest on the money it was investing to make this happen. Ms. Jones explained that in essence, the City was up-fronting without additional costs, recognizing that cameras in taxis would pay a dividend to the public and cab drivers in ensuring their safety.

Chair Deans said the City had come a long way in improving taxi service in Ottawa and she thanked all who had helped to improve the industry standard, noting it was important to remember that the City regulated for safety and consumer protection. She thanked members of the CAW who had met with staff to work through contentious issues and had demonstrated leadership in bringing this report before their membership to arrive at the present concurrence, and she observed that this was a difficult issue to deal with, involving an industry that was difficult to regulate, and with no single point of view.

The Chair also felt it would be an appropriate time for the City to encourage the use of hybrid vehicles to ensure a “greener” fleet of taxicabs for the Nation’s Capital. On the issue of bandit cabs, the Chair stated that the City was doing all it could to ensure these unregulated taxis would be charged and removed from service. She believed getting cameras into taxicabs would be an important safety consideration for all concerned parties. Speaking to the issue of the requested 10% fare increase; the Chair acknowledged the City had never seen an increase of this size in the past, but noted there had been no increase in cab fares since 2005, and that this was likely an economic inevitability. She believed other municipalities across Canada would soon follow suit because of the dramatic rise in fuel prices and costs associated with running a taxicab. In conclusion, Chair Deans believe staff had presented a good, supportable report.

The Committee then considered the new staff report recommendations:

1) That the Community and Protective Services Committee recommend that Council approve amendments to By-law Number 2005-481, being the Taxi By-law, to:

a) allow the proposed (approximate 10% increase) taxi meter rate adjustment as detailed below to be effective June 1, 2008, despite existing regulations requiring the adjustment be effective October 1st:

· $3.20 for the drop rate including the first 110 meters of part thereof,

· $0.16 for each 93 meters or part thereof,

· $0.15 for each 23 seconds of waiting time, and

that subject to approval of the above taximeter rate adjustment to allow for an additional 10 cent surcharge on the drop rate to $3.30 from June 1, 2008 to October 1, 2010 to offset the cost of the required in-cab cameras;

b) amend the existing Police Record Check (PRC) requirements as a condition for renewal of a standard and accessible taxicab driver license to:

· change the effective date from March 1, 2008 to January 1, 2009,

· require the licensee to provide the PRC information every three years instead of two years,

· provide that the date of the last accepted PRC be used as the start date to calculate the three years,

· provide that only a third of the licensees will be required to submit a PRC each year, (the Chief License Inspector to require that the 800 licensees with the most seniority be required to provide a new PRC in 2009, and the 800 licensees with the next most seniority be required to provide their new PRC in 2010, with the rest having to submit their new PRCs in 2011),

· in the case of license renewals that a PRC dated less than 180 days from the date of the license renewal be considered valid, and

· in the case of applications for new driver licenses, that a PRC dated less than 90 days from the date of the license renewal be considered valid;

c) amend the Taxi By-law Fee Schedule “C” to:

· Impose a $35.00 surcharge on all Taxicab Driver and Taxi Plate Holder license fees (new and renewals - standard cabs and accessible cabs) in 2009, 2010 and 2011,

· Impose a surcharge on all Taxicab Broker license fees in 2009, 2010 and 2011, as follows:

- $140.00 for Taxicab Brokers having 1 to 24 taxicabs;

- $1,000.00 for Taxicab Brokers having 25 to 99 taxicabs;

- $7,255.00 for Taxicab Brokers having 100 and more taxicabs,

· increase the Taxi Plate Holder to Taxi Plate Holder transfer fee from the current $3,800.00 to $4,800.00 to be effective April 30, 2009 until April 30, 2012 or until such time the camera financing cost recovery exercise is complete.

2) That the Community and Protective Services Committee receive Document 1 entitled: “Implementation of Taxi Security Cameras and Protocol”.

3) That the Community and Protective Services Committee recommend that Council direct staff to report back on existing standards for taxicabs that will, in part, identify measures available to encourage the use of more fuel efficient vehicles (e.g. Hybrid vehicles).

4) That the Chief License Inspector be required to work with the Taxi Stakeholders Consultation Group and the Taxi Industry to identify and implement a communications and enforcement strategy to eradicate the use of illegal underground taxicab services (e.g. Bandit Cabs).

CARRIED as amended