Miami-Dade Legislative Item
File Number: 081612
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File Number: 081612 File Type: Ordinance Status: Adopted
Version: 0 Reference: 08-71 Control: Board of County Commissioners
File Name: TAXICAB RATE FUEL SURCHARGE Introduced: 5/22/2008
Requester: Consumer Services Department Cost: Final Action: 6/3/2008
Agenda Date: 6/3/2008 Agenda Item Number: 7F
Notes: EG Title: ORDINANCE AMENDING SECTION 31-87 OF THE CODE OF MIAMI-DADE COUNTY, FLORIDA, AUTHORIZING DIRECTOR TO IMPLEMENT A PER TRIP TAXICAB RATE SURCHARGE DUE TO AN UNFORESEEN INCREASE IN THE PRICE OF GASOLINE; PROVIDING SEVERABILITY, INCLUSION IN THE CODE, AND AN EFFECTIVE DATE [SEE ORIGINAL ITEM UNDER FILE NOS. 081284 AND 081511]
Indexes: FUEL SURCHARGE
Sponsors: NONE
Sunset Provision: No Effective Date: Expiration Date:
Registered Lobbyist: None Listed


Legislative History

Acting Body Date Agenda Item Action Sent To Due Date Returned Pass/Fail

Board of County Commissioners 6/3/2008 7F Adopted P

County Attorney 5/23/2008 Assigned Gerald K. Sanchez

County Manager 5/23/2008 Assigned County Attorney 5/23/2008

County Manager 5/23/2008 Assigned Sue Torriente 5/23/2008
REPORT: RETURN FOR CORRECTIONS-EG

County Attorney 5/22/2008 Assigned County Manager's Office
REPORT: ret'd for changes

County Manager 5/22/2008 Assigned County Attorney 6/3/2008
REPORT: CONSUMER SER.(AMENDED FROM EDHS FROM 5/14/2008)

County Manager 5/22/2008 Assigned Sue Torriente 5/22/2008

Economic Development and Human Services Committee 5/14/2008 1F7 SUBSTITUTE AMENDED Forwarded to BCC with a favorable recommendation with committee amendment(s) P
REPORT: Assistant County Attorney Cynthia Johnson-Stacks read the foregoing proposed ordinance into the record. Chairwoman Edmonson opened the public hearing. Mr. Diego Feliciano, President, South Florida Taxicab Association, appeared before the Committee in support of this proposed ordinance. He urged Committee members to support a $1.00 versus a $0.50 increase in the fuel surcharge for taxicabs. Mr. Raymond Francois, 11900 NE 69 Avenue, on behalf of New Vision Taxi Drivers Association, appeared before the Committee and urged the Committee to defer this proposed ordinance, pending further review. He pointed out that 70% of New Vision Taxi Drivers Association used a flat rate system because of their travel to either Miami International Airport or to areas such as Seaport, Coral Gables, Key Biscayne; and that taxicab drivers were not allowed to pick-up from another County. Mr. Gilbert Hernando (phonetic) appeared before the Committee and spoke in support of the initial $1.00 taxicab rate fuel surcharge. He noted a future discussion could occur regarding an increase to the taximeter. Inaudible speaker, appeared before the Committee, and spoke in support of the foregoing ordinance. Hearing no one else wishing to speak before the Committee, Chairwoman Edmonson closed the public hearing. Responding to Commissioner Moss’ inquiry regarding the taxicab industry request for a $1.00 taxicab fuel surcharge, Ms. Cathy Peel, Director, Consumer Services Department, informed the Committee members that staff had no objection to an initial $1.00 taxicab rate fuel surcharge instead of $0.50. She noted Washington, D.C. and Chicago charged a $1.00 taxicab rate fuel surcharge. Commissioner Moss offered an amendment to revise the initial taxicab rate fuel surcharge authorized in the event of an unforeseen, significant increase in gasoline to $1.00 with $0.50 increments from the established base price. Following further discussion on the proposed amendment, the Committee forwarded the foregoing proposed ordinance with Committee amendments to revise the initial taxicab rate fuel surcharge authorized in the event of an unforeseen, significant increase in gasoline to $1.00 with $0.50 incremental increases from the established base price, as proposed by Commissioner Moss.

Legislative Text


TITLE
ORDINANCE AMENDING SECTION 31-87 OF THE CODE OF MIAMI-DADE COUNTY, FLORIDA, AUTHORIZING DIRECTOR TO IMPLEMENT A PER TRIP TAXICAB RATE SURCHARGE DUE TO AN UNFORESEEN INCREASE IN THE PRICE OF GASOLINE; PROVIDING SEVERABILITY, INCLUSION IN THE CODE, AND AN EFFECTIVE DATE

BODY
BE IT ORDAINED BY THE BOARD OF COUNTY COMMISSIONERS OF MIAMI-DADE COUNTY, FLORIDA:

Section 1. Chapter 31 of the Miami-Dade County Code is hereby amended to read as follows:1
CHAPTER 31
VEHICLES FOR HIRE
* * *

ARTICLE II. LICENSING AND REGULATION OF FOR-HIRE MOTOR VEHICLES

* * *

Sec 31-87. Rate regulation.

* * *

(C) Except as otherwise provided herein, the Board of County Commissioners of Miami-Dade County, Florida, shall establish all rates for taxicabs and for-hire vehicles operating in Miami-Dade County. From and after the effective date of this article, rates shall be established, altered, amended, revised, increased or decreased in accordance with the following procedures:

* * *

(6) The [[County Manager]] >>Director<< shall be authorized to approve a per trip taxicab rate surcharge in addition to the existing rates then in effect. [[Such surcharge shall be in effect for a period up to six months unless extended by resolution of the Commission.]] Such surcharge, which is to be a fixed amount, may be imposed upon the occurrence of an unforeseen change in petroleum market conditions which [[, utilizing the surcharge formula provided for herein (�surcharge formula�), causes an increase in the price of regular unleaded gasoline of 30 cents or more during any ninety (90) day period. The surcharge formula is as follows: divide the fuel increase per gallon of regular, unleaded gasoline by the average number of taxicab trips per gallon. The gasoline surcharge shall be rounded up to the nearest penny.]] >>causes the price of regular unleaded gasoline to increase by 50 cents from the base price. The base price shall be the average price of regular unleaded gasoline in effect as of the most recent taximeter rate adjustment. Upon reaching the first benchmark dollar value a $1.00 surcharge may be implemented. Following the initial surcharge, each additional increase of 50 cents of regular unleaded gasoline may trigger an increase in the dollar value of the surcharge by 50 cents. The average weekly price of regular unleaded gasoline must remain at or above a level, as described above, for three (3) consecutive weeks before a surcharge, or an increase in the surcharge, may be authorized by the Director. The fuel surcharge shall expire upon the effective date of any taximeter rate adjustments. The fuel surcharge may be decreased or removed, by the Director, should the average weekly price of regular unleaded gasoline remain at or below a level, as stated above, for three (3) consecutive weeks. The average price of regular unleaded gasoline shall be based on the retail prices listed for regular unleaded gasoline by the United States Department of Energy, Energy Information Administration. The surcharge may be added to the taximeter rate or flat fare rate and, if added, shall be reflected on the taximeter as an extra charge on vehicles so equipped.<< Notice of a surcharge approved pursuant to this section must be prominently displayed within the taxicab, as required by regulations promulgated by CSD.

* * *

Section 2. If any section, subsection, sentence, clause or provision of this ordinance is held invalid, the remainder of this ordinance shall not be affected by such invalidity.

Section 3. It is the intention of the Board of County Commissioners, and it is hereby ordained that the provisions of this ordinance, including any sunset provision, shall become and be made a part of the Code of Miami-Dade County, Florida. The sections of this ordinance may be renumbered or relettered to accomplish such intention, and the word "ordinance" may be changed to "section," "article," or other appropriate word.

Section 4. This ordinance shall become effective ten (10) days after the date of enactment unless vetoed by the Mayor, and if vetoed, shall become effective only upon an override by this Board.

Section 5. This ordinance does not contain a sunset provision.




HEADER
Date:



To: Honorable Chairman Bruno A. Barreiro
and Members, Board of County Commissioners



From: George M. Burgess
County Manager



Subject: Ordinance amendment revising mechanism to authorize a taxicab rate fuel surcharge

This item was amended on May 14, 2008 by the Economic Development and Human Services Committee to adjust the initial fuel surcharge amount to $1.00 when the price of gasoline is $3.50 per gallon with increases in $0.50 increments thereafter. In addition, the item clarifies that the surcharge may be decreased or removed when the price of gasoline falls below a level and that the surcharge shall be reflected on the taximeter as an extra charge.



STAFF RECOMMENDATION
It is recommended that the Board approve the attached ordinance amending Section 31-87 of the Code of Miami-Dade County, to revise the mechanism by which a taxicab rate fuel surcharge may be authorized in the event of an unforeseen, significant increase in gasoline prices.

SCOPE
This proposed ordinance applies countywide.

FISCAL IMPACT/FUNDING SOURCE
There is no fiscal impact to the County.

TRACK RECORD/MONITOR
The Consumer Services Department (CSD) is responsible for administering for-hire transportation regulations.

MANAGER'S BACKGROUND
Section 31-87 of the Code sets forth the method for the establishment of taxicab rates in Miami-Dade County. These rates are set by Board resolution following a public hearing. The current taximeter rate has been in effect since September 22, 2005.

Section 31-87 (c) (6) contains a special provision that authorizes the County Manager to approve a per-trip taxicab rate surcharge in addition to the existing rate. The surcharge is based upon a formula and may be imposed when a change in the petroleum market causes an increase in the price of regular unleaded gasoline by $0.30 or more during any 90-day period. The surcharge is required to be a fixed per trip amount and may be in effect for a period of up to six months, unless extended by Board resolution. This provision, which replaced an earlier surcharge formula, was adopted on July 6, 2000 by Ordinance No. 00-88. The formula triggered a fuel surcharge once in 2004, and remained in effect until the new taxicab meter rates were approved in September 2005.

The Energy Information Administration (EIA), a statistical agency of the U.S. Department of Energy, recently reported that monthly average pump prices will approach $3.60 a gallon in June 2008, but could rise as high as $4 a gallon over the summer.


Honorable Chairman Bruno A. Barreiro
and Members, Board of County Commissioners
Page 2


Under the current language, the fuel surcharge is determined by dividing the fuel increase per gallon of regular unleaded gasoline by the average number of taxicab trips per gallon over a 90-day period. The current surcharge formula does not work well for the following reasons:

* It restricts the price comparison to a 90-day window
* It is calculated using survey data obtained directly from taxicab drivers attending CSD chauffeur training programs and the accuracy of this data cannot be verified
* It can result in an odd number (i.e. $0.33) which cannot realistically be collected by drivers
* And, a surcharge of $0.30, the minimum that can result from the current formula, is not meaningful for drivers. According to anecdotal information, when a $0.30 surcharge was previously in effect, only a small percentage of drivers collected it.

The proposed amendment provide for a mechanism allowing greater flexibility in responding to fuel price increases, while implementing a reasonable and easily definable surcharge amount. Specifically, it establishes guidelines for the implementation of a per trip fuel surcharge upon regular unleaded gasoline, striking a benchmark price. Each benchmark price is set in $0.50 increments from a base price (stemming from the average price of regular unleaded gasoline at the time of the most recent taximeter rate adjustment). Each $0.50 increase in the price of regular unleaded gasoline may generate a cumulative per trip fuel surcharge. The starting base price is $3.00 per gallon, which is the price in effect on the date of the last meter rate adjustment. The table listed below provides the proposed schedule:

Gasoline Price Trip Surcharge $ 3.00 None $ 3.50 $ 1.00 $ 4.00 $ 1.50 $ 4.50 $ 2.00 $ 5.00 $ 2.50 $ 5.50 $ 3.00







In order to implement a per trip fuel surcharge, the average weekly price of regular unleaded gasoline must stay at or above a level on the above chart for three consecutive weeks. Inversely, should the average weekly price of regular unleaded gasoline fall below a level on the above chart for three consecutive weeks the surcharge will be reduced accordingly. Additionally, any fuel surcharge will expire upon the effective date of any taximeter rate adjustment. The average weekly price of regular unleaded gasoline will be based on the data gathered by the EIA. Passenger notices will be posted inside the taxicab disclosing the surcharge.

This fuel surcharge methodology is patterned after the City of Seattle. A similar mechanism was recently implemented in Chicago. A number of other jurisdictions, including Dallas, St. Louis, Philadelphia, and Washington D.C., have implemented or are in the process of implementing taxicab fuel surcharges ranging from $0.50 to $1.00 per trip.


________________________________
Assistant County Manager





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