On January 29, 1991 Council adopted a resolution establishing maximum rates for taxicab service within the City of Sunnyvale. At the time the established rates were consistent with the rates charged throughout this region, as determined by benchmark cities. In recent months our benchmark cities have increased their rates. In order to allow for our current and any future franchisees to maintain a profitable business in our city and stay consistent with surrounding cities, staff recommends that a new resolution be adopted increasing the maximum rates for taxicab service.

On January 29, 1991, Council adopted a resolution establishing maximum rates for taxicab service within the City of Sunnyvale. These rates are monitored via a taximeter that is required to be maintained in each vehicle.

Section 5.36.280(b) of the Sunnyvale Municipal Code allows for the Council, after public hearing and notice, to establish maximum rates to be charged for taxi service provided by all franchisees.

In 1991 when the current resolution was established the fees were consistent with those of surrounding cities. Sunnyvale uses the cities of San Jose, Mountain View, Palo Alto and Santa Clara as benchmark cities. In recent months these cities have increased the allowable rates. San Jose was the first to increase the fees to a $2.00 "flag-drop" and $2.00 per mile with a $20.00 per hour "wait" fee, this change became effective in September 1998. The City of Santa Clara soon followed with the same adjustments. The Cities of Mountain View and Palo Alto have also adopted the increased fee and have increased their "wait" fee to $24.00 per hour, which is the amount we are proposing. Our current fees of $1.80 "flag-drop", $1.80 per mile, and $18.00 per hour "wait" fee are the lowest in the County. In order to maintain consistent rates throughout this region it is in the best interest of business to impose the proposed increase of 11%.

NONE

Posting of the Council agenda and publication in the San Jose Mercury News. Copies of the R.T.C. were provided to all franchisees.

Prepared By:

Heather L. Tannehill
Operations Manager

Reviewed By:

Regan G. Williams, Director
Public Safety Department

Approved by: