SR 06:061 - Laserfiche WebLink

The rates and insurance requirements of communities throughout the Bay Area follow: Flag Mileage Standby Insurance Insurance Insurance Insurance Drop (combined) injuries injuries property - I Derson >2 oersons damal!:e Pleasanton $2.20 $2.20 $20 $1 million $100,000 Dublin $2.00 $2.00 none $100,000 $300,000 $50,000 Livermore $1.80 $1.80 none $1 million Fremont $2.50 $2.50 $25 $1 million Hayward $2.00 $2.40 $24 $100,000 $300,000 $50,000 Walnut Creek $2.50 $2.50 none $100,000 $300,000 $50,000 Insurance costs are high. According to one of the three insurance carriers that insure all of the taxicab companies in Pleasanton (aside from those that have coverage from the State of California's assigned risk policy), $350,000 is the base policy amount that does not require excess coverage. The price of a $350,000 policy is approximately $5,100 annually. For a $1 million policy, the approximate cost is $7,000 annually. The assigned risk policy costs 25% to 40% more (generally around $9,500 annually). In addition to citing high insurance and fuel costs to justify an increase in the rates, taxicab companies also cite an increase in the number of taxicab companies operating within Pleasanton. There are currently 17 companies with 60 drivers, and 38 cabs have passed Pleasanton Police Department inspections and are operating. Taxicab companies are concerned that the current rates will not support the large number of operating companies within Pleasanton. Two possible approaches that the Council could take are as follows: (1) maintain current rates and requirements or (2) adjust the current flag drop and mileage rate fees. The first approach may not be the most appropriate. While it appears there might be a large number of taxicab companies within Pleasanton, the current insurance rates and fuel costs do justify an adjustment. As a result, staff recommends the second option. If the flag drop fee and mileage rate were both increased to $2.50 (a 13.64% increase), the insurance requirement and fuel costs would be easier to meet. The one million dollar insurance policy requirement is standard for permits issued by the City and for contracts made with the City. If approved, we recommend these increases remain in place until 2009. At that time, we recommend the taxicab rates be reviewed. FISCAL IMPACT No significant fiscal impact is anticipated. R~pectfullY Submitted, fl~n~ rr!'firnothy P ~e~' Chief of Police w Nelson Fialho City Manager SR 06:061 Page 2 of 2.