Taxi Bylaw Review Report

At its meeting held on February 25, 2019 City Council passed The Vehicles for Hire Bylaw, Bylaw 2019-9 allowing Transportation Network Companies (TNC) to operate in the City of Regina. Throughout the development of The Vehicles for Hire Bylaw, the taxi industry was engaged in discussions with the Administration and expressed concerns about the emergence of TNC and their ability to continue to operate under traditional taxi regulations. No changes were made to The Taxi Bylaw, 1994 at the time. Administration and the taxi industry agreed to review the bylaw for potential amendments to address these concerns.

On February 26, 2020, City Council considered CR20-15 Taxi Bylaw Review Report, which included recommended changes to the bylaw. City Council referred this matter back to Administration to do a side-by-side comparison of regulations and policies between the taxi industry and vehicles for hire. This information was considered necessary in order to fully consider the proposed recommendations.

The report was referred back to Administration to include additional information on the regulatory comparisons between The Taxi Bylaw, 1994 and The Vehicles for Hire Bylaw. This information was considered necessary in order to fully consider the proposed recommendations.

The fee changes recommended in this report will ensure a more accurate cost recovery of various fees collected.

There are no environmental, accessibility, or other implications or considerations.

City Council may choose to approve all, some or none of the recommendations contained in this report.

If approved, amendments to The Taxi Bylaw, 1994 will be posted on Regina.ca.

In March 2019, Administration requested feedback from the taxi industry, including brokerages, licence holders and drivers on potential amendments to The Taxi Bylaw, 1994. Updates to the bylaw are necessary to better align with provincial legislation, update outdated sections, as well as addressing other areas of concern. Most of the input received came from the taxi brokerages and formed the framework for additional discussions. Feedback focused on enabling the traditional taxi service to adapt to the changing environment, collection of reliable trip data and ensuring fees were appropriate. Working sessions were held with the taxi brokers to develop improvements related to technology advancements, fare structure, fees, data requirements and vehicle requirements. The recommended changes are listed in Appendix A: Taxi Bylaw Proposed Amendments and discussed below in further detail.

(a)               Technology Advancements

Soft Meters have become the new form of taxi meters in other major municipalities. A taxi soft meter is a smartphone or tablet that is used similarly to the traditional hard-wired taxi meter. The technology uses GPS or on-board diagnostics to calculate distance and time rates for taxi trips. Licence inspectors are able to test the soft meters for compliance and apply a seal to prevent tampering. Consistent with hard-wired meters, customers will be able to view the rate on the device throughout the trip. The benefits of the soft meter to the taxi industry is the low cost and availability of the devices, brokers can track their taxis live and taxi drivers can provide an electronic copy of a receipt if required. Administration recommends that the current bylaw be amended to allow the use of approved soft meters in taxicabs.

(b)               Fare Structure

The biggest concern voiced by taxi brokers was the fare structure prescribed in the bylaw. Using the taxi cost index, the tariff of fees prescribes the maximum fare for the initial distance, incremental distance, waiting time charges and extra charges. Brokers felt that the fare structure disadvantaged their industry because TNC are permitted to set their own fares. Most believed taxi fares were below those charged by the TNC and affirmed they were not looking for an overall fare increase, instead they expressed a desire for flexibility around fare pricing. Various options were considered including allowing brokers to set their own fares, setting a flat fee for short fares, or allowing surge and discount pricing. Currently only the maximum fare amount is prescribed so discounting of fares is already available. Among the other options, no single method seemed to address the concerns.

Research into other municipalities identified a hybrid pricing model that was successfully implemented by the City of Calgary. The model has two pricing structures:

1.      Street hails and dispatched trips initiated through direct contact with brokers adhered to a traditional taxi fare model that uses time and distance travelled. Allowable fees are prescribed within a tariff of fees.

2.      Trips pre-arranged through a mobile application were charged based on distance. Similar to a TNC, the pre-arranged service booked through the mobile application does not need to apply the specific fees in a traditional taxi fare model.

The hybrid model proved to be the most acceptable by the taxi brokers.

Unlike a TNC, the taxi industry continues to receive trip requests through telephone or text and by street hail. When this occurs, there is no method to confirm the acceptance of a quoted fare by either the driver or the passenger and therefore a prescribed fare structure must be relied upon to ensure fare consistency and neither party is disadvantaged. When a mobile application is used, the fare is communicated electronically and accepted in advance by both parties. Introducing mobile application pricing for pre-arranged taxi services provides a benefit to both passengers and taxi drivers. Passengers appreciate the convenience and the upfront pricing takes away the fare anxiety often associated with taxi trips. Drivers are assured they will receive payment and feel they are better able to compete with TNC drivers.

In order for a taxi broker to use a mobile application for pre-arranged services, the mobile application would need to be approved by the licence inspector to ensure trip tracking and transmission of information to the passenger is documented. Taxi brokers may need to update their systems in order to provide the mobile application, however they would not be required to provide this service. The option would be available should they choose to offer it.

Administration recommends that pre-arranged taxi services booked through a mobile application be exempt from charging the fares prescribed in section 4(1) of the fare schedule of the bylaw.

In addition, Administration recommends that in order to offer its own fares, a taxi broker would need to have a mobile application capable of meeting requirements similar to those the City sets for TNCs. If the mobile application cannot meet these requirements, a taxi broker could still accept trips through their mobile application but would have to charge the rates set by the City.

(c)               Fees

Airport Fees:

The Taxi Bylaw, 1994 prescribes extra fees that taxis are permitted to charge. These fees include things such as a cleaning fee and a charge for use of a debit machine. The Administration is recommending that an additional airport service charge fee be permitted to be charged.

As of July 1, 2019, the Regina Airport Authority Inc. (RAA) implemented a new commercial ground transportation fees for all service providers. The fee is a pay-per-use pickup and drop off charge reflective of the size of the commercial vehicle. This move is part of the new ground transportation strategy of RAA and allows any commercial operator to conduct business at the Regina Airport. Limousine, shuttle and Vehicle for Hire operators have the ability to charge the ground transportation fee to their passengers. The Taxi Bylaw, 1994 prohibits this fee to be collected by taxi brokers or drivers, leaving the taxi brokers and drivers to bear the cost of this fee. In order for taxi drivers and brokers to recover this cost from passengers, Administration recommends that the tariff of fees be amended to include the ability to charge an amount equivalent to the commercial ground transportation fee charged by RAA.

Transfer Fees:

A Transfer of records must be completed when a taxicab licence is transferred to a replacement vehicle, vehicle ownership changes or brokerage affiliation is updated. The associated fee for conducting the transfer is $50 and requires licensing officers to work with Saskatchewan Government Insurance (SGI) agents for verification. The taxi industry requested that the transfer fee be eliminated. Licensing programs are intended to be cost recovery. Licensing costs would not be recovered if the fee were eliminated, however a review of the program costs identified that due to efficiency improvements with the process, the fee could be reduced to $35 per transfer. Administration recommends that the transfer fees be reduced to $35.

Badge Replacement Fee:

The fee review also identified that the current fee for replacement badges of $16 does not cover the administration costs of reprinting the badges and processing the associated police incident report. Therefore, Administration is recommending that the duplicate licence fee be increased to $25. This amount will allow for cost recovery and is equal to the annual licence renewal fee.

(d)               Data Submission

Collection of reliable trip data is necessary for both the taxi industry and the City. Data is used to analyze trends, determine appropriate staffing and licence levels, to verify bylaw compliance and to assist with passenger and driver safety. Taxi drivers, as the operators of the taxicabs, play an important role in the collection of data. To ensure accurate data is collected, Administration recommends the following requirements be added to the driver conduct section of the bylaw:

1.      Drivers must be signed into the dispatch system of the taxi brokerage at all times the taxicab is on duty;

2.      Drivers shall ensure that all dispatched or non-dispatched trips are logged through the dispatch system of the brokerage.

(e)               Data Retention Period

The passenger transportation industry has experienced significant change over the last decade and the evolution is expected to continue. Having accessible information becomes even more important during change. Currently taxi brokers are required to archive trip data for a minimum of six months and transportation network companies (TNC) are required under The Vehicles for Hire Bylaw to retain records for a minimum of one year. In order to be able to compare data between both types of transportation providers, and ensure data is available when required, Administration recommends increasing the time frame for taxi broker data retention to a minimum of one year.

(f)                 Vehicle Requirements

Spare Tire:

All taxicabs must meet vehicle inspections requirements prior to issuance of a taxicab licence, including that the vehicle must be equipped with a spare tire and jack. Industry members have raised concerns over this requirement as newer models of vehicles are no longer required to have a spare tire sold with the vehicle and instead are supplied with an inflatable spare tire kit. Taxi drivers have also shared that in the event they experience a flat tire, they normally do not install a spare tire themselves. Instead, the vehicle is taken to a repair shop for immediate repair or replacement. SGI also does not require a taxicab to be equipped with a spare tire and jack. Administration recommends amending the requirement to the vehicle stating it must be equipped with a spare tire and jack or an inflatable spare tire kit with a sealant.

Vehicle Age:

The taxi industry shared their concern over the current vehicle age restriction of eight years. The cost of replacing a taxicab, especially accessible taxicabs, can be significant and difficult to obtain for some licence owners. SGI vehicle inspection regulations require that all vehicles for hire have a valid stage 2 inspection certificate completed annually by a qualified mechanic appointed by SGI. This is the same certificate a person would be required to obtain when re-certifying a total loss (“regulations require written off”) vehicle or certifying an out-of-province vehicle. The inspection is a better indication of vehicle fitness over the age of a vehicle. However, eliminating the vehicle age consideration completely may not meet the expectations of taxi users who have come to expect that a newer vehicle is used in the service. Unlike TNCs, the City does not require taxi brokers to advise customers of the vehicle model year prior to dispatch.

Research identified that most municipalities regulate vehicle age and the average allowable age is 10 years, summarized in Table 1. The major TNCs use a self-imposed vehicle age limit of ten years.

Table 1: Vehicle Age

Administration initially recommended that the vehicle age to be used as a taxicab shall be limited to 10 years old and the Community and Protective Services Committee approved an amendment to remove the vehicle age requirement. Subsequent discussions with taxi brokers revealed that the brokers were not interested in maintaining taxi fleets with aging vehicles. They were requesting flexibility on vehicle age restrictions for when delivery of a new vehicles is delayed, they are temporarily replacing out of service vehicles, or where financial constraints exist for licence holders. Brokers also indicated they would self-impose vehicle age restrictions should they become necessary. In response, Administration recommends removing the vehicle age requirement.

Vehicle Decals:

Taxi brokers also raised concerns that the overall vehicle decal package was over prescribed and created a high cost to licence owners and requested they be removed or relaxed. The decal requirements are in place to ensure passengers, licence inspectors and the Regina Police Service (RPS) can easily identify the vehicle as a taxicab. Identifying markers allow individuals to recognize the vehicle as an approved taxicab and provides information needed to address customer service concerns with a specific vehicle. Research identified that all municipalities prescribe some type of decal requirements which are summarized in Table 2.

Table 2: Vehicle Decal Requirements

The goal of decal requirements is to ensure the public can identify the vehicle as a taxicab and provide information for the passenger should they need to obtain personal items left behind or wish to submit a complaint. Company name and the vehicle identification number are required to identify the taxicab for these purposes. Current requirements include information that is not necessary to identify the vehicle as a taxicab, such as telephone number and specific locations for decal placement. Administration recommends that the current decal requirements be removed and replaced with the following:

1.      A top light capable of illumination

2.      Broker name and an identifying number assigned by the taxicab broker must be on both sides and rear of the vehicle

3.      Each letter or number must be at least 75mm in height

(g)               Driver Requirements

Upon implementing The Vehicle for Hire Act, the Province repealed a portion of The Traffic Safety Act requiring taxi drivers to obtain a certificate of approval from the local police service. A certificate of approval is a background check completed by police. The Taxi Bylaw, 1994, continues to reference the repealed Traffic Safety Act process and therefore it is recommended that the bylaw be amended to remove references to The Traffic Safety Act and replace them with a description of the review and appeal process undertaken by police.

(h)               Computer Aided Dispatch (CAD)/ Global Positioning Systems (GPS)

All taxi brokers are required to use computer aided dispatch technology to dispatch calls to all taxicabs that are affiliated with their brokerage. The dispatch system must record the date and time of dispatch and pick-up, duration of the trip, length of time from when a dispatch call is received and the passenger is picked up, whether or not a person is picked up at the dispatch location, if a call was cancelled by the caller, vehicle and driver information that completed the trip and for accessible taxicabs whether the call was for transporting an ambulatory or non-ambulatory passenger.

CAD/GPS systems provide the following benefits:

·         Ability to view real time location of the vehicle which increases safety for both passengers and drivers

·         Connects dispatchers directly to the driver allowing immediate assistance in emergency situations

·         Data can be used to assist in criminal activity and resolve complaints related to overcharging

·         Improves wait times by providing vehicle information and queued fares when dispatching trip requests

·         Allows for consistent format for data retention and submission

·         Provides a driver log that can be used to address incoming complaints and verify active driving hours

At the February 26, 2020 City Council meeting, a motion was approved to exempt single vehicle accessible taxi brokers from this requirement and is included in the recommendation in this report. Administration further recommends that exemptions be considered through an application process reviewed by the licence inspector. The application process would include a review of the data collection and submission documents to ensure accurate, timely and complete information could be provided. Brokers not using CAD and GPS systems would no longer be submitting quarterly data in the standard electronic format and additional city resources would be required to transcribe this information into a usable format. As a result, processing costs would increase. Administration recommends an increase in the broker licence for those accessible brokers that receive this exemption to $475 per annual licence to cover the increased costs.

The recommendations bring many of the requirements for the taxi industry to a more equal level with the regulatory requirements for TNC. The recommendations reduce the requirements for taxis including vehicle age and decals and increase options for the use of technology and pricing including use of smart meters, flexible pricing for trips pre-arranged through a mobile application and the ability to charge their customers the Regina Airport Authority’s ground transportation fee. Increasing data retention for taxis to one year has also been recommended for consistency with TNC.

After considering the recommended changes to The Taxi Bylaw, 1994, differences will still exist between this bylaw and The Vehicle for Hire Bylaw; however, Administration is recommending that these regulatory differences are maintained to account for the different ways in which each service operates. While both TNCs and taxis provide for-hire transportation services, significant differences in the two models exist. It is important to understand the differences of the two models in order to apply regulations that are appropriate for the variations of each industry segment. The two models are summarized in Table 3.

Table 3: Business Model Comparison

Due to the inherent differences in the two business models, it is appropriate that regulatory differences exist. Regulations are either not required because of safety enhancements built into the platform or are required to mitigate situations where safety factors are not included in the business model. A side by side comparison of the regulations that apply to taxi and TNC as well as the recommended changes to The Taxi Bylaw, 1994 can be found in Appendix B: For-Hire Transportation Regulation Comparison. The primary regulatory differences that will remain relate to City performed inspections, vehicle decal requirements, limitations on the number of licences available, installation of cameras, licence fees paid to the City, use of taximeters and taxi stands, ability to accept street hails, and technology requirements. Rationale for why these regulatory differences are necessary is provided below.

City Inspections

Both taxicabs and TNC vehicles may be inspected at any time during the year upon request of a city licence inspector. As part of the approval process taxicabs must undergo one annual inspection by the city licence inspector prior to issuance of any taxicab owner’s licence. If during the year the taxi is replaced with another vehicle, or ownership of the taxi changes another inspection would be required. This is required to ensure the new vehicle is equipped correctly and/or the new owner has replaced the equipment that would have previously belonged to another owner.

The city inspection is conducted because The Taxi Bylaw, 1994 regulates many elements, not found in provincial regulations, that are specific to the taxi industry. These elements are focused on increasing the safety of drivers and passengers and ensuring consistent reliable pricing.  The city inspection confirms:

·         The taxicab matches SGI registration and inspection documents

·         Decal content, size and location so passengers can confirm they are riding with a licensed taxicab

·         Payment terminals, cameras, and dispatch systems are installed and in working condition

·         Accessible taxicabs meet D409 standards and are equipped with required safety restraints

·         Taximeter rates are accurate for both time and distance providing reliable, consistent pricing for passengers

The licence inspector will also ensure that vehicle lights, seatbelts and windshield wipers are in working condition and that there are no sharp objects or loose vehicle parts that may cause injury to passengers. Upon verification that the taxicab meets these requirements, the licence inspector will seal the taximeter preventing it from being tampered with (rates cannot be changed) and issue the taxicab owner’s licence.

Members of the taxi industry have identified that this process disadvantages their business because taxicabs will fail this inspection which often results in the taxicabs being removed from service. Table 4 below provides inspection information for the last three licence periods.

Table 4: Taxicab Vehicle Inspections

On average, ten per cent of taxicabs fail the initial inspection and the majority are returned to service the same day. Reasons for failure include non-functioning cameras, taximeter concerns (broken seals, distance rates incorrect), no SGI inspection decals, non-functioning seatbelts and/or vehicle lights and concerns over vehicle fitness.

Although most taxicabs pass the initial inspection, Administration recommends that these inspections remain unchanged. Brokers have suggested that they could inspect the vehicles themselves to provide a quicker return to service. Administration has not recommended this because return to service times are short, and if failure rates are concerning to taxi brokers, they retain the ability to perform pre-inspections to prevent failed inspections. Should Council wish to amend the city inspections, Administration can work with the brokers to develop a process to verify compliance with the bylaw on most of these items by providing annual written declarations. However, confirmation of taximeter rates, sealing the meters and final issuance of the licence should remain with the licence inspector. Passengers rely upon the city to ensure taximeter rates are consistent and reliable and it is by inspection and sealing of the taximeter that this is accomplished.

Decals

The recommendations reduce the decal requirements for taxicabs to include a top sign, decals are of a minimum size, include the broker name and car number and are present on the rear and sides of the taxicab. Since taxicabs can offer street hails and fares without pre-booking and passengers are not provided driver information nor do they have the vehicle plate number in advance of the fare, it is important that the vehicle is easily identifiable as a taxicab.

TNC drivers must display company issued decals on at least two sides of the vehicle. The decal must be a minimum 64 cm2.  TNC are prohibited from accepting street hails, may only accept pre-booked fares, provide driver, vehicle and plate number in advance of any trip. Since the vehicle make, model and plate number are the primary identifiers for passengers, the decal on the vehicle is a secondary identifier and does not need to be as prominent as a taxicab decal. TNC are also prohibited from using a top light as this feature has traditionally been associated with a taxicab.

Maximum Number of Licences

The City of Regina regulates the total number of regular, accessible and seasonal taxicab licences that are available. Limits on the number of regular taxicab licences were put in place in the 1960s. Population rates, quarterly trip data and input from the taxi industry is used to determine the appropriate quantity of taxi licences to meet demand. The primary reasons for regulating the number of taxis is to ensure there is an appropriate volume of taxis to meet regular demand while limiting the volume to ensure licence holders can achieve an acceptable income. While the City regulates the number of taxicab licences that are available, there are no limits to the number of taxi drivers.

Research conducted indicates that although other Canadian municipalities regulate the number of taxicab licences issued, they do not limit either the number of TNC licences or the number of drivers that may affiliate with a TNC. There have been discussions by some municipalities in the United States to investigate the need to introduce limits, with the primary reason related to traffic congestion. This has not been a concern within Regina. Limiting the number of vehicles/drivers that may associate with a TNC could impact the availability of service, especially at peak times. As the majority of TNC drivers in Regina are part time, such a limit would significantly decrease the number of available drivers. Availability of service was identified as a concern for residents prior to the implementation of The Vehicle for Hire Bylaw and the expectation was that the addition of TNC would supplement the taxi industry during times of high demand and special events.

Cameras

Pursuant to The Regina Taxi Bylaw, 1994, taxis must be equipped with cameras capable of recording video and audio. Footage recorded in taxis may only be accessed by the RPS for criminal investigations. Footage cannot be accessed by brokers to confirm driver hours or adherence to company policies. The City, taxi brokers, taxi licence holders and taxi drivers do not have access to these files.

The cameras installed in taxis are commercial products that are tamper proof and always on. The cameras assist in deterring violence, threats and other disrespectful behaviour. Cameras do not stop all such behaviour from occurring, however camera footage has been useful for law enforcement when incidents have occurred. The taxi industry agrees with having cameras in their vehicles and have requested the same requirement for TNC.

Research conducted indicates that no other Canadian municipality has included a requirement for cameras to be installed in TNC vehicles. This difference exists because under the TNC model, the vehicles used are personal vehicles that are not used primarily for the commercial transportation of passengers. If cameras were required in TNC vehicles they would significantly infringe on the driver and the driver’s family’s privacy by recording personal engagement in a private vehicle. In addition, TNC models include safety measures like cashless transactions, no anonymity between driver and passenger and the ability to share trip information with individuals not participating in the trip that reduce the occurrences of certain offences and crimes of opportunity. The City of Calgary and the City of Ottawa have both completed reviews on requiring cameras in TNC vehicles and both cities have determined that cameras are not necessary for business models that only conduct prearranged trips and retain appropriate rider and driver information to maintain accountability.

During implementation of The Vehicle for Hire Bylaw, Administration researched the use of a mobile device for capturing video. As mentioned above, cameras in taxis are tamper proof, always on, and the footage is only accessible by RPS. While a TNC driver may decide to install some form of camera, or use a mobile phone, there are significant challenges for the City of Regina to require cameras in personal vehicles. Access to footage could not be reasonably confined to RPS, constant recording could lead to storage challenges, and there would be challenges in confirming footage was appropriately managed or erased. There is an important difference for responsibility over data where the City is requiring that the data be recorded. In a situation where the City is requiring the data to be recorded, the City would also play a role in protecting that information. For these reasons, Administration did not recommend requiring the use of personal devices and Council concurred.

Licence Fees

The licence fees paid to the City have been developed based on the different business models the industries follow and are consistent with other municipalities.

Each taxi broker, taxicab licence owner and taxi driver is charged individually for each licence and vehicle inspection conducted. Although this process has not changed since the initial taxi bylaw was developed, it remains the most efficient method for this industry. Due to the multiple working relationships within the taxi industry, an individual may hold one or multiple types of licences.

In the TNC industry, the licences are issued only to the TNC. Individuals will register themselves and their vehicles with the TNC. The basic annual fees charged to the TNC is based upon the number of drivers that have affiliated with the company. Since the majority of TNC drivers are part time, the base rate is supplemented by a per trip fee. This allows the City to recover costs based on actual services provided by the TNC and match those to costs incurred by the City. In lieu of providing accessible services, TNC are also charged a per trip accessible fee.

Examples of how the fees compare at various driver levels are included in Table 5

Table 5: Licence Fee Comparison

Assumptions:

·         2 transfer and inspections per taxi

·         4 taxi drivers per vehicle, all renewal licences

·         90 trips per TNC driver per month

Other Differences

TNC drivers are also restricted from using taximeters, accessing taxi stands, providing street hails, and cannot accept payment directly. These restrictions prohibit them from offering a traditional taxi service. In addition, since many of the safety and consumer protection regulations required for TNCs are App-based, they are not permitted to provide services that do not use the App (dispatch or payment).

TNC have more technology requirements than the taxicab industry. Due to the advanced systems used by TNC, they have been able to meet these higher demands which include storing and submitting detailed driver, vehicle and trip data on a monthly basis to the City and RPS. Additional information is required to be provided to every passenger to ensure fare prices, driver and vehicle information is known prior to, during and at the completion of each ride. Due to the high reliance upon technology, TNC are required to share other safety measures with passengers either directly within the App or post on their website. This includes sharing company contact information, privacy and refund policies.

The recommended changes to The Taxi Bylaw, 1994 provide a significant step for the taxi industry in adapting to the changing for hire transportation market. Administration acknowledges that both taxis and TNC have been impacted by the Covid-19 pandemic and will continue to monitor the travelling patterns of the public. Should the situation continue long term, Administration will return to Council with initiatives that will assist in the protection of passengers and drivers.

CPS20-6 Taxi Bylaw Review was presented to the Community and Protective Services Committee at its February 6, 2020 meeting. During consideration of the report, a request was made for a supplemental report to discuss an option to create an exemption from the general rules for the use of technology for data collection and submission for single vehicle, accessible taxi only brokers.

CR20-15 was presented to Council at its February 26, 2020 meeting. The report was referred back for Administration to provide additional information comparing the regulations for taxi and transportation network companies.

CPS20-10 was present to the Community and Protective Services Committee at its June 3, 2020 meeting. The report was recommended to be forwarded to the June 24, 2020 Council meeting as an informational report. Portions of CPS20-10 have been included in this report as additional information for consideration of the recommendations.

Respectfully Submitted,              Respectfully Submitted,

Dawn Schikowski, Manager Licensing & Parking Services     6/12/2020              Byron Werry, City Solicitor                                          6/12/2020

Prepared by: Dawn Schikowski, Manager, Licensing & Parking Services