12/14/1977 Meeting - Laserfiche WebLink

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" . - ._~ . IV. Taxi Deregulation of Rates--Memo and materials distributed. . Manager reviewed memo from Mr. Hamel, who served on a subcommittee re- garding Council IS regulating of taxicab rates. There were five suggested alternatives to Council, with the subcommittee's preference that Council adopt the recommendation to allow the market to control the rates, but require the posting of rates and advance notice to the City before changes in rates take effect. He said the procedure today would be to take testimony from persons representing the taxi companies and ask Council to direct staff as to which course of action it wished to tak e. That course of action would be prepared in ordinance form and brought"back for passage at a later meeting. Mr. Haws wondered what the posting of rates meant. Sherm Flogstad, Finance Director, said the requirement would be that taxi companies provide to the Finance Department any proposed rate increase schedule 30 days prior to its goinq into effect, and also a posting of those rates on the vehjcles. Mr. Haws wond~red how the general public would be aware of what rates various cab companies charge. Mr. Flogstad replied through the ordinance, the taxi cabs companies would be required to provide public notice in the newspaper; however, this would be a one- time notification only. Mr. Haws was still concerned regarding how the general public will be alerted as to the rates. Mayor noted that was one of the problems of deregulation. Donald Knutson, 1160 West 8th, owner of Rickshaw Taxi Company, said he did not feel an increase in fares should be allowed at this time. He said every time rates were increased, there were fewer passengers, and, - therefore, the taxis lost money. He felt the taxicab companies should be required to submit rate changes to the Finance Department~ He suggested that rates be frozen for a period of one year under this new system to see how it waul d work. In that way there would not be the hassle of changing ra tes eve ry 30 day s. He noted senior citizens in the city cannot now afford the present taxi rates, and if rates were less he would have more business and thus make more money. He noted the City now requires rates to be posted on vehicles, but a majority of the cabs do not do so. Alan Wagner, 4502 River Road, representing Dial-a-Cab Company, said he felt the Finance Department wanted a free-market system that would not require them to be involved in regulating taxi rates. His ma i n - complaint was the Finance Department was not wanting to take the time to determine taxicab rates and preferred deregulation of rates. He felt a one-year freeze on prices was not a free market system and, therefore, did not feel the freeze on prices was a good idea if the free market system was going to be used. He noted also the possibility of going to a zone system charge which the ESATS Study had recommended. He felt if that were done, there would be people in the City complaining about higher . e 12/14/77--5 C);2H