HomeMy WebLinkAboutIR 2336 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 2336
101 T E 14, May 31, 1974
To the Mayor and Members of the City Council
FORT�p
Subject: REQUESTED INCREASE IN TAXICAB RATES
On April 24, 1974, Fort Worth Cab and Baggage brought the attached letter
to the City Manager requesting a review of their operating results and
that a rate increase of approximately 13.6 per cent be granted. On April
29, 1974, the Council directed the staff to prepare a report on the re-
quested rate increase,
Background
In September 1973, Fort Worth Cab and Baggage Company requested a rate increase.
The Council approved a portion of the requested increase in November with a
recommendation of a review within 90 days after the opening of the Dallas/Fort
Worth Airport.
The Company has submitted a financial report showing the results for the first
four months of business with the approved rate increase in effect and covering
two and a half months after Airport operation began. The report indicates that
revenues increased approximately 12 per cent over the same period compared to
the previous year while expenses increased approximately 13 per cent. However,
with the rate approved November 21, 1973, the report shows a net ,operating loss
for the four months of $1,770.
In the following table a comparison is shown of the rate structure effective on
trips of from one mile through ten. miles under the conditions existing during the
past six months versus the currently requested increase.
Representative Rates*
Effective Company Council Company
Prior To Request Approved Current
11-21-73 11-21-73 11-21-73 Request
One Mile .85 1.35 1.15 1.25
Two Miles 1.35 1.95 1.65 1.85
Three Miles 1,85 2.55 2,15 2.45
Four Miles 2.35 3.15 2.65 3.05
Five Miles 2.85 3.75 3,15 3,65
Six Miles 3.35 4.35 3.65 4.25
Seven Miles 3.85 4,95 4.15 4.85
Eight Miles 4.35 5,55 4.65 5.45
Nine Miles 4.85 6.15 5.15 6.05
Ten Miles 5.35 6.75 5.65 6.65
*Calculated as follows
Prior to 11-21-73 lst 1/5 $.45 each additional 1/5 .10
Company Request lst 1/4 75 each additional 1/3 .20
Council Approved 11-21-73 lst 1/5 .75 each additional 1?5 .10
Current Request lst 1/6 .75 each additional 1/6 .10
-ISSUED BY THE CITY MANAGER - FORT WORTH, TEXAS
INFORMAL RNIAL REPORT TO CITY COUNCIL MEMBERS No. —2336 - page 2
T C,,, May 31, 1974
ji');?p To the Mayor and Members of the City Council
X
'473
Subject: REQUESTED INCREASE IN TAXICAB RATES
Projection
Since the operating results for the first four months did not include the effects
of the latest round of gasoline price increases , it appears that without an
additional fare increase, the Company will lose even more money in the remaining
months of this year than in the first four months, The Company has experienced
some increased revenue due to the SURTRAN Terminal Operation beginning at the
opening of the D/FW Airport, but these increases in revenue have not offset the
increased cost of fuel, labor, and supplies occuring since the rate increase was
granted.
The staff analysis indicates that if the requested new rate is granted, the Com-
pany will earn between $40,000 to $50,000 profit before income taxes in a full
year of operation at the new rates. The evidence available to the staff indicates
that further increases in fuel costs and supplies will occur however, and would
reduce these projected earnings. It is also anticipated that the new free down-
town bus service will have a negative impact on revenues for taxi service to and
from the courthouse.
Conclusion
The Company is not earning a return on its investment at the present rates. The
Consumer Affairs Office reports that service levels appear to be satisfactory.
The attached letter from the Tarrant County Hotel-Motel Association, Inc. supports
the fare increase. A growing City must have adequate taxi service to meet certain
customer demands and the Company must be allowed a.f air return, if it is to provide
adequate service.
The current requested rates are slightly under the request made last September.
The interim rates approved in November have not offset the cost increases in fuel
anid supplies. It is therefore the conclusion of the staff that the Company should
be permitted to increase its rates in accordance with the request of April 24, 1974.
Should members of the City Council desire additional information, it will be supplied
upon request.
Respectfully submitted,
9 A,. I
R. N. Line
City Manager
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Attachment
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
BERT & STEVE CAB
335-3333
YEUOW CAB
° 332-3131
FORT WORTH CAB AND BAGGAGE COMPANY
332-3137 ♦ 1010 Stayton Street • Fort Worth, Texas 76107
April 24, 1974
To The Honorable City Manager
City of Fort Worth
City Hall
Fort Worth, Texas 76102
Dear Sir:
As you know, The Fort Worth Cab & Baggage Company, Inc, is in a very burden-
some financial state at the present time and is justifiably in need for
further rate relief. On the other hand we are just as concerned about the
quality of taxicab service, and are doing all within our power to improve
our service with our sincere efforts.
Since November 21, 1973 when the late rate increase was approved, there
has been a substantial increase in parts, vehicles, and gasoline has nearly
doubled in price. The Minimum Wage Law has now been increased as of May 1,
1974.
The applicant hereby petitions the Honorable City Council of the City of
Fort Worth to authorize a change in rate structure of Taxicab Service in
the City of Fort Worth so that when said rate is increased, it shall read
as follows:
75G for the first 1/6th mile or fraction thereof
lOC each additional 1/6th mile or fraction thereof =
25� each add.i.t:i-onal passenger over one
10� each lk minutes waiting time or traffic delay
(Children 12 and under free when accompanied by an adult
If you should need any additional information in connection with this
application for an increase in rates, then please communicate with the
undersigned.
Sincerely'tyours,
s
Ft. Worth Cab & Baggage Co. ,Inc.
C. W. Needham
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