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HomeMy WebLinkAboutOrdinance 6230 ORDINANCE NO. 6 z3C'04'F_"' r AN ORDINANCE AMENDING SECTION 34-12 OF CHAPTER 34 OF THE CODE OF THE CITY OF FORT WORTH (1964) , AS AMENDED, BY INCREASING THE MAXIMUM MILEAGE PRICE TO BE CHARGED BY ALL TAXICAB OPERATORS IN THE CITY; PROVIDING A SEVERABILITY CLAUSE; MAKING THIS ORDINANCE CUMULATIVE OF OTHER ORDINANCES WITH RESPECT TO TAXICAB RATES ; REPEALING ALL ORDINANCES IN CONFLICT HEREWITH; PROVIDING A PENALTY; AND PROVIDING AN EFFECTIVE DATE. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH, TEXAS : SECTION 1. That Section 34-12 of Chapter 34 of the Code of the City of Fort Worth (1964) , as amended, be and it is hereby amended to read as follows: The maximum price to be charged by all taxi- cab operators in the City, which prices are hereby declared to be fair and reasonable for such services, shall be as follows : Forty-five cents for the first one-fifth mile or fraction thereof traveled; Ten cents for each additional one-fifth mile or fraction thereof after the first one-fifth mile traveled; An additional ten cents for each additional passenger beyond the original passenger carried, except that this ten cent charge shall not be made for an additional passenger carried if such ad- ditional passenger be a minor not more than twelve years of age; Twenty cents for each two minutes of waiting time, or each additional fraction thereof, or five dollars per hour; and Five dollars per hour for traveling time on special trips or sightseeing tours. There shall be no additional charge made for ordinary luggage or ordinary bags or ordinary par- cels being carried by such passenger or passengers . It shall be unlawful for any driver of a taxicab to demand or receive a fee or charge for taxicab �•�a . Q services in excess of the rates above specified. jr However, nothing herein contained shall be con- strued as requi-cinT• a taxicab to carry trunks, very large packages, very large parcels, or arti- cles or objects likely to injure or damage the taxicab, it being the intent hereof that there be no additional charge made for any ordinary baggage or ordinary parcels. Each and every taxicab operated on the streets shall have affixed thereto at a location in plain view of any passenger therein a placard setting out the maximum legal rates for taxicab service, as hereinabove provided, and such rates shall be so shown thereon as to be readily visible to and readable by any occupant of such taxicab. SECTION 2 . That if any section, subsection, sentence, clause or phrase of this ordinance is for any reason held to be uncon- stitutional, this holding shall not affect the validity of the remaining portions of this ordinance, and all of the remainder of this ordinance not so held to be unconstitutional shall continue to be in full force and effect. SECTION 3. That this ordinance shall be and is hereby declared to be cumulative of all provisions of the Code of the City of Fort worth (1964) , as amended, with respect to taxicab rates, except in those instances where the provisions of this ordi- nance are in direct conflict with such Code, in which in- stances said conflicting provisions of such Code are hereby repealed. SECTION 4. That any driver of a taxicab who demands or receives a fee or charge for taxicab services in excess of the rates specified by this ordinance shall be punished by a fine not exceeding Two Hundred Dollars ($200.00) , and each violation thereof shall be and is hereby declared to be a distinct and separate offense and punishable as such; provided, how- ever, if the maximum penalty provided by this ordinance for any such offense is greater than the maximum penalty provided for the same or a similar offense under the laws of the State, then the maximum penalty for violation as provided by State statute shall be the maximum penalty under this ordinance. SECTION 5 . That this ordinance shall become effective and be in full force and effect from and after its passage and publi- cation as required by law. APPR ED AAxSw TO FORM AND LEGALITY: City Attorney MGMAHM City of Fort Worth, Texas UNE !§A .-IPHII Mayor and Council Communication R. t B, DATE REFERENCE SUBJECT: Report of Utilities Supervisor PAGE GRAtIAM NUMBER on Request of Fort Worth Cab and 1 Baggage AL 2A 3GH 1/12/70 G-1490for Com an Transmitted herewith is the report of the Utilities Supervisor who has analyzed the request of the Fort Worth Cab and Baggage Company for a fare increase. The City Attorney advises that all legal procedures have been met and City Council action on the Company request is in order at this or any succeeding Council meeting at which the matter is placed on the agenda. An ordinance has been prepared to implement the requested rate increase, if approved by the Council. Additional information, if desired by Council Members, will be provided upon request. HDM:mhg Attach. SUBMITTED BY: DISPOSITION COUNCIL: PROCESSED BY �O IJ PPRO�IED - � ❑ OTHER (DESCRIBE) ,/C®� 4 'fc r! CITY SECRETARY js DATE CITY MANAGER IDR Ric - _ City of Fort Worth, Texas Mayor and Council Communication DATEREFERENCE SUBJECT: Report of Utilities Super- PAGE NUMBER --�t.��5.{.G.��. visor on Request of Fort Worth Cab and L82+ Baggage Company 1 °f L Transmitted herewith is the report of the Utilities Supervisor who has analyzed the request of the Fort Worth Cab and Baggage Company for a fare increase. The City Attorney advises that all legal procedures have been met and City Council action on the Company renuest is in order at this or any succeeding Council meeting at which the matter is pla ed jon the agenda. An ordinance has been prepared to implem t ren s tio rate increase, if approved by the il. �� 4 Additional informat n, if desZred by Council Membe ill provided upon request. r HDM:Jp Attach. SUBMITTED BY: DISPOSITION BY COUNCIL: PROCESSED BY ❑ APPROVED ❑ OTHER (DESCRIBE) -o CITY SECRETARY DATE CITY MANAGER PUBLIC UTILITIES SUPERVISORS REPORT - ON TAXICAB RATES - y January 12, 1970 FORT WORTH CAB AND BAGGAGE COMPANY REQUEST FOR TAXICAB RATE INCREASE INTRODUCTION: The Utilities Supervisor has completed an investigation of the fi- nancial condition of the Fort Worth Cab and Baggage Company, in connection with its request to increase taxicab fares, as describ- ed in its letter of December 2, 1969 (Appendix A - Page 1) . The Supervisor's investigation included an examination of the books and accounting treatment used by the company and its auditors, and an analysis of revenue and expense trends. In summary , it is the Supervisor's opinion that the requested increase is warranted, and will result in a rate schedule in line with other cities of compa- rable size. REQUESTED INCREASE: The present rate structure provides a base rate of 45 cents for the first quarter mile, and 10 cents for each additional quarter mile traveled. The requested rate schedule proposes to reduce the mileage steps from "1/4 mile" to "1/5 mile" increments. The base rate is proposed to remain at 45 cents, which is proposed to covet the first .2 (or 1/5) mile. Each additional 1/5 mile traveled is proposed to be charged at 10 cents, compared to 1/4 mile for 10 cents under existing rates. The charge for "Waiting Time" is re- quested to be increased to $5.00 from the present $3.00 per hour. A request for an increase to an identical rate structure was ap- proved by the City of Dallas in December, 1969. An illustration of the impact of the new rate is provided in the following tabula- tion: w 2. FORT WORTH TAXICAB FARES PRESENT AND PROPOSED MILEAGE PRESENT PROPOSED STEPS RATE RATE INCREASE 0.2 $ .45 $ .45 $ 0 0.25 .45 .55 .10 0.40 .55 .55 0 0.50 .55 .65 .10 0.60 .65 .65 0 0.75 .65 .75 .10 0.80 .75 .75 0 1. .75 .85 .10 13.3% 1.20 .85 .95 .10 1.25 .85 1.05 .20 1.40 .95 1.05 .10 1.50 .95 1.15 .20 1.60 1.05 1.15 .10 1.75 1.05 1.25 .20 1.80 1.15 1.25 .10 $, 1.15 1.35 .20 17.4% 3. 1.55 1.85 .30 19.3% 4. 1.95 2.35 .40 20.5% 5. 2.35 2.85 .50 21.3% 6. 2.75 3.35 .60 21.8% 7. 3.15 3.85 .70 22.2% 8. 3.55 4.35 .80 22.57. 9. 3.95 4.85 .90 22.8% 10. 4.35 5.35 1.00 23.0% 3. REVENUE AND EXPENSE TRENDS: The Supervisor's study disclosed that revenues have decreased this year, and that operating expenses have not reduced proportionally, as shown in the summary below: FORT WORTH CAB AND BAGGAGE COMPANY REVENUE AND EXPENSE Operating Years Revenue Expense Income Ending A B Pre-Tax 1-31-63 $1,092,728 $1,034,602 $58,126 1-31-64 1,064,665 1,001,851 62,814 1-31-65 1,136,778 1,086,267 50,511 1-31-66 1,209,973 1,144,764 65,209 1-31-67 1,280,147 1,209,813 70,334 1-31-68 1,215,127 1,178,075 37,052 1-31-69 1,249,363 1,194,680 54,683 1-31-70* 1,147,542 1,126,961 20,581 * Estimated (9 months actual, 3 months estimated) Company officials attribute the loss of patronage and declining revenue trends to its inability to recruit and retain drivers, who have been at- tracted to other work by higher wage scales. Declining trends in patron- age and revenues are further illustrated in Appendix A on pages four, five and six. EFFECT OF THE REQUESTED RATE INCREASE: A study of revenues anticipated to be produced by the requested higher fares is provided in Appendix A, page four. Gross revenue is estimated to increase by 20.24 per cent, less an estimated 9.99 per cent loss of patronage, leaving a net anticipated revenue increase of approximately 10.25 per cent. The patronage loss factor is based on a comparison of total mileage in 1967 and in 1968 as outlined on Appendix A, page four. A 10.25 per cent increase in net income, applied to the estimated reve- nues for the fiscal year ending January 31, 1970, indicates a gross in- crease in taxi revenues of $112,572.89 annually. r 4. Estimated increases in expense, most of which are directly attributable to the increased revenues, are detailed in Appendix A, page seven, and amount to $72,047.54, leaving a net increase in Operating Income of $40,525.35. Actual revenues and expenses for the fiscal years ending January 31, 1964 through 1969, plus a pro-forma projection of the effect of the requested increased rates is provided on page eight of Appendix A. It is estimated that the proposed increase will bring the Company's earnings approximately in line with prior years' earnings levels, and will maintain the "Operating Ratio" at approximately the 95 per cent level. The "Operating Ratio" is the relationship between Expense and Revenue, and is used by most Federal and State regulating bodies in "transportation" utility rate making. " SHORTAGE OF DRIVERS AND PERSONNEL: Company officials have stressed that their most critical need is for more taxicab drivers, and that the requested rate increase, if approved, would enable the Company to attract new drivers and to retain a greater number of its present drivers and employees. Better service to the pub- lic is contingent upon its ability to place additional taxicabs in ser- vice. For the past year, there have been from thirty to seventy-five cabs which could not be manned. The shortage of drivers results in re- ductions in service and is a cause of some of the complaints about lengthy delays encounted by patrons in obtaining a taxicab. The following tabulation details the extent of the inability of the Com- pany to attract and retain a sufficient number of employees, and illus- trates increasing wage and salary costs: A. Operations and Maintenance Personnel 12-31-66 12-31-67 12-31-69 Drivers - Full Time 120 106 85 Drivers - Part Time 60 55 68 Baggagemen 16 13 1 Traffic Personnel 18 15 15 Shop Personnel 14 11 11 Totals 228 200 180 Total Salaries $675,540 $647,244 $607,.615 Average Salary $ 2,963 $ 3,236 $ 3,376 B. Administrative Personnel s Clerical 3 3 3 Officers 3 _2 2 Totals 6 5 5 Total Salaries $ 35,041 $ 31,764 $ 39,808 Average Salary $ 5,840 $ 6,353 $ 7,962 1 6. of Fort Worth. The President of the United Cab Company has indicated that his company would implement the increased rate, if approved, as soon as possible. The Fort Worth Cab and Baggage Company has requested that action be taken as soon as possible so that the new rate, if ap- proved, can be implemented by February 1, 1970. Approximately two weeks will be required for the companies to accomplish the necessary changes in the taxi-meters when and if revised rates are approved. 1 R. H. Aughinbaugh Utilities Supervisor RHA/mhg Attachs. t 1 1 M I N D E X T' 0 APPENDIX A Page Company Application Letter 1-2-3 Taxi Trip Distribution and Revenue Stud 4 Taxi Revenues and Expenses Per Mile *5 Taxi Revenues - All Companies - By Month 1968-1969 6 Detail of Estimated Increase in Revenue and Expense 7 Revenue - Expense Study 1963 through 1969 and Pro Forma Study Showing Effect of Rate Increase 8 30 City Taxi Rate Comparative Study 9 History-Taxi Rate Changes 10 IF - APPENDIX "A" Page I BERT i STEVE CAB ED 3-3333 YELLOW CAB ED 1-3131 FORT WORTH CAB AND BAGGAGE COMPANY Edison 2-3137 • 1010 Stayton Street • Fort Worth, Texas 76107 December 2, 1969 To the Honorable City Manager - City of Fort Worth City Hall Fort Worth, Texas 76102 Dear Sir: As you probably know, the Fort Worth Cab and Baggage Company and its predecessors has operated taxicab service in the City of Fort Worth for a period of more than forty (40) years. During that period of time, it has endeavored to render a meritorious service to the citi- zens of Fort Worth, the travelling public, and to persons that use taxicab service for transportation. Throughout the years of operation, it has been a cardinal principle of the company to employ only competent and courteous drivers in order that the travelling public may feel safe and secure whenever it enters a vehicle belonging to this operator. Due to inflation, and the increased cost of parts, gasoline, vehicles, as well as administrative costs, it has become necessary that the Fort Worth Cab and Baggage Company petition the Council for an increase in rate. It is not amiss to point out that the present existing rate has been in effect for a period of more than two (2) years. The Applicant hereby petitions the Honorable City Council of the City of Fort Worth to authorize a change in rate structure for taxicab service in the City of Fort Worth so that when said rate is increased it shall 4 be as follows: M 0 Page 2 ' To the Honorable City Manager December 2, 1969 Page 2 i "There shall be charged a rate of $ .45 for the first 1/5 of a mile or fraction thereof travelled and $ .10 for each additional 1/5 of a mile or fraction thereof travelled. " This request effects a change from the present rate which is $ .45 for the first 1/4 of a mile or fraction thereof travelled, and $ .10 for each additional 1/4 of a mile or fraction thereof travelled. In connection with this request for an increase M in rate, it is proper to point out that the requested rate change for taxicab service in the City of Fort Worth is _ substantially less than rates charged for such service in various metropolitan cities throughout the United States. Furthermore, it is likewise proper to mention that during the period from October 1968 to October 1969, a substantial number of cities throughout the United States have changed their rate from 1/4 of a mile to 1/5 of a mile and such action on the part of taxicab operators is being requested throughout the entire continental United States. ` Notwithstanding anything to the contrary herein- above mentioned, as justification for such rate increase, the company would like to point out to you and through you N to the City Council members, that the Cost of Living Index • has substantially increased during the last 18 months, and, as a result, this Applicant necessarily will be obliged to increase the salaries of its drivers. Competition from industrial plants in the city makes it next to impossible to hire taxicab operators. We are sure that you are cogni- zant of the fact that most common laborers can obtain employment in various industrial plants in the city at a rate of pay in excess of what is now being paid to taxicab drivers. It goes without saying that the Council neces- sarily knows, or should know, that come February 1, 1970, the Fair Labor Standards Act will increase the base pay t Page 3 To the Honorable City Manager { December 2 , 1969 Page 3 for a substantial number of people including, among others, taxicab drivers. For many years taxicab operators received compensation on the basis of a commission earned rather than a fixed hourly salary. The National Labor Relations Board, through its Wage and Hour Division, changed this arrangement in 1966 to the end of guaranteeing the drivers a minimum wage and this company absorbed such increase in compensation without the aid and assistance from the City of Fort Worth with respect to increasing of rate. This Applicant would further request the Council to change that section of the Taxicab Ordinance which pro- vides for a rate of $3.00 per hour for "Waiting Time" so as to amend same and permit a charge of $5 .00 per hour for + "Waiting Time" . This is a reasonable request on the part of the company because not many persons utilize taxicabs so as to place them on a "Waiting Time" basis. We respectfully submit that the rate increase herein requested be in all things granted and that the Council investigate the matters and things set forth herein to satisfy themselves that the rate increase is justifiable if the company is to render the type, kind, and character of service that the travelling public needs and is entitled to. If there be any additional information in connec- tion with this matter, then please commend us and we shall be delighted to furnish same. Very truly yours, FORT WORTH CAB AND BAGGAGE COMPANY f 1 j R BY AMH/ms r ■ Appendix A Page 4 TRIP DISTRIBUTION STUDY BASED ON ACTUAL TRIPS AND RELATED REVENUES UNDER PRESENT AND PROPOSED MILEAGE INCREMENTS REVENUE REVENUE PERCENT NUMBER OF @" PRESENT @ PROPOSED TRIP DISTANCE OF TRIPS TRIPS RATES RATES 0 Up to 1 Mile 22.14% 368 $ 240.80 $ 277.60 Up to 2 Miles 23.24% 386 381.60 443.22 Up to 3 Miles 18.89% 314 436.70 518.40 Up to 4 Miles 11.07% 184 329.70 396.02 i Over 4 Miles 24.66% 410 1,332.86 1,637.51 100.00% 1,662 $2,721.66 $3,272.75 w 2,721.66 Increase in Revenue L_5.51-09 Percentage Increase in Revenue 20.24% Less: Percentage Loss Experienced Following 1968 Rate Change 9.997.* 6 Increase Anticipated 10.25% * Mileage: ^67 4,761,986 '68 4,286,290 475,696 = 9.99% Decrease Decrease 475,696 4,761,986 r I r Appendix A Page 5 REVENUE AND EXPENSE PER MILE FORT WORTH CAB & BAGGAGE COMPANY CENTS PER MUE REVENUE LESS TOTAL MILES EXPENSE YEAR OPERATED REVENUES EXPENSE MARGIN 1962 4,970,766 21.98e, 20.81e, 1.17e, 1963 5,046,614 21.09e, 19.85e, 1.24e, 1964 5,493,683 20.64e, 19.77 0.87e, 1965 5,620,092 21.23r, 20.43e, 0.80e, RATES INCREASED - JANUARY 1966 I 1966 5,368,561 23.80e, 22.61e, 1.19 1967 4,761,986 25.51e, 24.73e, 0.781 I" RATES INCREASED - JANUARY 1968 1968 4,286,290 29.14e, 27.87e, 1.27 1969 3,901,097 29.42 28.89e, 0.53e, (Estimated) M Appendix A Y Page 6 n N to Ln N to N -1 to r4 N O O n .--1 r� 00 r-1 cri r-1 r-1 1n 0D 00 1� cri 1-7 O% r-1 O r-1 N M r4 n N %D .7 n O% A e� M 00O% to O N O .4 1, M N a� M EC+ 00 O N �Y O a, O �t O, r4 a, 00 E 00 .t r` O� O� l0 .t O .t .-4 N N N O N N r-1 .--1 .--1 M r-1 .--1 -4 r4 r-I r-1 r4 r4 r4 r I r4 .--1 w -4 in o in In %n O O rn o n O� n 00 �t 110 crl 10 00 �s7 n r, N a% en Ln O 00 %O .--1 HE �t M Ln N 7-1 N NY It m a� %O r-1 N cri V1 et rl ^ r4 -t �t N 00 ►7 �t �D n n a,% c+i cn cn I0 I0 cn 1n N N N N N .--1 N N N N N N N cO M 0 Paye N N O U1 1"1 V1 %O N O r� O () %10 -t 00 -4 %.0 Ln O% .t N r4 N O� 1 �i N cri n N O, 00 a: en 00 [� a% a% n O 00 00 N O en N N n p( O .--1 O .t In %0 O� cri V1 W n O p w w w .. w w w w w w 't n O N a% N M 1n .--1 O 00 In N r E a% a% O O 00 O a% m a% a% 00 00 M O w r-1 R. O% .0 00 00 a% %D L z � r�-1 r�-1 � rr4 00 a% %D z.+ O r-1 r-1 %0 %0 M a% M $4 Y'+ Y'+ >% a% a% a% %O %O r-1 w N 41 .0 .0 � rr-1 -4I r-1 10 0 A 4 c � r-1 r 0 $W u ,a 41 m YYi 41 7 u f✓ A sw sw D, C r-1 p. 4.1 W O Z A h RI 0 CL Z Z h h 6 H WZ w 00 00 O O% 00 %0 00 .t 1n �t �t ON n 00 00 %O n 00 00 n N 4 O*, U1 N 10 O; N Q'i O% 00 1- Ln M M r-1 Ln O 4 1- 00 %0 cri N n O O In %0 O Ili %C 00 n E O O% O 00 O 1- 1n ON O% vi r- 1-4 .--1 N N M N M M N N r4 r4 r4 O% r-1 r-1 r-I r-1 r-1 -4 .--1 .--1 -4 r-1 .--1 .--1 � H Y O 1n In O 1n In O In 1n O In O Vi O\ Cl! .--1 N It r� ri N C� N n N .--1 n W O% M %0 1n a% r-1 r-1 00 en ai en r-1 M O% E1 CO vi CO %O O, O 1l CO r4 r'+ IO O Vi r-1 O .--1 .--1 00 O% O% 00 O ai r-1 00 d cri cri 1n l0 O N r'1 n I0 ui vi vi �O 1 N N N N N N N N N N N N a% N m e d�1 C O% O% 00 N1 Vi O% r-1 c+'1 %O M 7-4 r-1 cel In O% �0• O O cr1 N m r-1 r-1 00 N 9 N 00 00 1n O; Ui �O O �•1 O M 00 O% M m t -.0 O% N O00 r-1 00 O� N n vi V-4 r-1 1n n O% NO 1n O cri M Lr vi w O% 00 en E O% O% O O o O% 0% a% Oo O% o a N Y 00 n h 00 %0 6 n %O 00 NO a% p M °a °a ON °i 00 00 % z ! r-1 r-1 %10 %0 00 00 O% sw s+ ani (D �, ►+'' r�-1 � � � � a a A A cd 0 .ti r-1 -4 -4 �4 -W b7 r1 Appendix A Page 7 FORT WORTH CAB AND BAGGAGE COMPANY DETAIL OF ESTIMATED INCREASE IN REVENUE AND EXPENSE I. Increase in Taxi Revenue if Proposed Rate Request is Approved _ (10.25% of $1,098,272.12) $112,572.89 II. Expense Increase A. Drivers Wages and Salaries 41% of I $46,154.88 B. Traffic Wages - 10% Across Board 7,338.45 C. Shop Wages - 10% Across Board 83,851.08 D. Office Salaries - 10% Across Board 1,430.76 E. Total Wage Increase $63,775.17 F. Additional Street Rental Payment 3% of I 3,377.19 G. Additional Payroll Taxes 5.7% of Line E 3,635.18 H. Additional Depreciation on 20 New Taxicabs Costing Approximately $190.00 more Than in the Past 950.00 I. Additional Minimum Wage Payments 310.00 Total Increase in Expense $ 72,047.54 Net Increase in Revenues $ 40,525.35 Appendix A Page 10 w FORT WORTH TAXI CAB RATE CHANGES w Ordinance No. 2516 3/24/48 45o, 1st 2.1/2 Miles 10c each additional 1/2 Mile Ordinance No. 2804 9/13/50 35C 1st 1 Mile 10c each additional 1/2 Mile 100, additional passenger $3.00 per hour Ordinance No. 2921 1/ 9/52 35C 1st 1/2 Mile 10c each additional 1/2 Mile Ordinance No. 3478 5/30/56 45C 1st 1/2 Mile 10c each additional 1/2 Mile Ordinance No. 4397 11/10/60 45c 1st 2/5 Mile ■ 10C each additional 2/5 Mile Ordinance No. 5496 12/28/65 45C 1st 1/3 Mile M&C G-891 12/27/65 10c each additional 1/3 Mile Ordinance No. 5904 45C 1st 1/4 Mile M&C G-1183 1/15/68 10C each additional 1/4 Mile Present Request 45c 1st 1/5 Mile 10C each additional 1/5 Mile