PROPOSAL FOR A LIMOUSINE MINIMUM RATES PILOT PROJECT FEBRUARY 2011

Transcription

1 PROPOSAL FOR A LIMOUSINE MINIMUM RATES PILOT PROJECT FEBRUARY 2011 NOTE: IN RESPONSE TO INITIAL COMMENTS RECEIVED SINCE FEBRUARY, UPDATES WERE MADE TO THIS PROPOSAL ON MARCH 8, Context The Board has been asked by some people in the limousine industry to review minimum and maximum rates for limousines. The Board supports this approach to rates. It has the following benefits: Licensees would have increased flexibility to set their own rates in response to market demand Licensees would no longer need to apply to change their rates unless they wanted rates that were outside of the program Reduces red tape. The rate structure would be more transparent to consumers. The Board set minimum and maximum rates for limousines during the Olympic and Paralympic Games. Board staff have had some preliminary discussions with people in the industry. There is no consensus yet on the specifics of a rates and rules program. The following is an overview of a proposed rates and rules program. It is not a final program. We are sending this overview to limousine licensees in the Capital, Squamish Lillooet, Greater Vancouver, and Fraser Valley Regional Districts. We are holding discussion sessions with limousine operators in Richmond and Victoria in March We are also asking them to review the approach and send comments to the Board by the end of March The Board will make a decision on a rates and rules program after the discussion and comment period.

2 2. Overview of Proposed Rate and Rule Program for Limousines Scope The rates and rules program will apply to limousine companies with a Special Authorization licence 1 and who have authority to pick up passengers in the: Lower Mainland (Pemberton to Hope) and Capital Regional District. The Board may expand the program to other areas of the Province. Before approving an expansion, the Board would expect the majority of licensees in an area to request the program. The rates and rules program would not apply to specialized services such as shuttles and vans, services for exchange students or crew transportation. The program would not apply to zone rates approved by the Board for limousine service provided pursuant to a contract between a company and the Vancouver International Airport Authority. Proposed Rates & Standard Rules The proposed rates and standard rules are set out on pages 4-6 of this document. Program Reviews This would be a pilot project. The Board will review the rates and rules program within 2 years of implementation. The Board may review limousine rates when taxi rates change, when a number of limousine industry representatives present a rationale for a review, or when the Board finds that the circumstances warrant a review. 3. Comments & Discussion Sessions We invite you to comment on this rates and rules programs. Please send all comments in writing by March 31, 2011 to one of the following contacts: Mail: The Passenger Transportation Board PO Box 9850 STN PROV GOVT Victoria BC V8W 9T5 Fax: ptboard@gov.bc.ca 1 The Board has no authority to regulate the rates of licensees operating under a General Authorization. This would require an amendment to the Passenger Transportation Act. Page 2

3 Update: An optional Comment Form has been posted on the PT Board rates webpage. Industry Discussion Sessions We will be holding 2 discussion sessions at the following dates and locations. Date: March 8, 2011 March 22, 2011 Time: 1:00 3:00 p.m. 1:30 3:30 p.m. Location: Best Western Abercorn Inn 9260 Bridgeport Road Richmond, British Columbia Room 3A Ministry of Transportation & Infrastructure 940 Blanshard Street Victoria, British Columbia Registration Date March 2, 2011 March 18, 2011 Register to attend a discussion session by contacting Kathy Mitten, Research & Administrative Coordinator by: 1. Phone: ptboard@gov.bc.ca 3. Fax: Please register by the noted registration date. Please include the following information for the person who will attend: Name Organization Title Phone or (to contact you if there is a change in the event). Update: The Board s PowerPoint presentation for the March 8 meeting in Richmond is posted on the PT Board rates webpage. Page 3

4 PROPOSED RATES 1. Minimum and Maximum Hourly Rates Minimum and maximum hourly rates for all companies will replace existing rates of individual companies. Proposed rates are outlined below. These rates are proposed for discussion purposes. Class of Limousine Minimum Maximum Sedan Limousines (3-5 Passengers) $70 per hour $140 per hour Limousines (6-11 passengers) $80 per hour $160 per hour Note: The limousine category includes standard limousines, stretch limousines, SUVs vans and other types of vehicles with a seating capacity of 6-11 passengers (plus driver) that provide a limousine service. If an operator charges for extra travel time (sometimes referred to as deadheading) the charges must be disclosed to the passenger and must not exceed the hourly rate. Update: Based on initial comments from industry, the Board identified a five-tier option and one-tier option for minimum and maximum hourly rates. For details, see page 2 of the Comment Form, or see pages 9 and 10 of the Board s PowerPoint presentation from the March 8 Industry Discussion Session. Both are posted on the PT Board rates webpage. 2. Transfer Rates (Lower Mainland Only) Below are proposed transfer rates for limousines. These are flat rates that apply to specific circumstances. These rates are proposed for discussion purposes. The rates apply to all vehicles, regardless of carrying capacity. Trips YVR to or from Downtown Vancouver YVR to or from Cruise Ship Terminals Cruise Ship Terminals to or from Downtown Vancouver Transfer Rates $50 per trip $60 per trip $35 per trip Notes: Page 4

5 a. Downtown Vancouver is the portion of the City of Vancouver with the following boundaries: North: East: South: West: Burrard Inlet Main Street Expo Boulevard, Pacific Boulevard and Pacific Street Burrard Street (from Pacific Street to Georgia Street), Georgia Street (from Burrard Street to Denman Street) and Denman Street (from Georgia Street to the end of Denman Street extending to Coal Harbour). b. Cruise Ship Terminals includes the Port of Vancouver s terminals at Canada Place and Ballantyne Pier. c. YVR is the Vancouver International Airport. PROPOSED STANDARD RULES Standard limousine rules are proposed below. These rules govern how limousine rates are charged. 1. Minimum Hourly Rate The minimum charge is one hour. 2. Discounts A discount of up to 20% may be applied to any hourly rate when: o the licensee has defined criteria for providing a discount, and o the recipient of the discount is an incorporated company, charity, or society. No discounts may be applied to transfer rates. 3. Commissions Commissions do not affect the rate that passengers pay. Limousine companies may set the commission they pay to third party agents who book or refer passengers for their services. 4. Familiarization Trips Free familiarization trips may only be provided to: o travel agents, o destinations management companies, Page 5

6 o commercial tour operators and event planners that have a current business relationship with the licensee or where there is a prospect of a future business relationship. 5. Donated Services Board Policy OP V.5 Certificates, Cards, Coupons and Vouchers applies to limousines. 6. Gratuities Payment of a gratuity is at the discretion of a customer. 7. Deposits, Cancellations & Refunds Licensees may set deposit, cancellation & refund policies as long as the licensee (a) puts all policies in writing and (b) gives the policy in writing to the customer at the time the service is confirmed by the licensee. 8. Additional Fees and Charges Licensees may charge extra for such non-transportation related charges such as: o vehicle decoration; o accommodation/meals for drivers; o damage to a vehicle; o cleaning; o ferry, tolls, parking, etc. as long as all extra charges are put in writing and are supplied to the customer at the time the service is confirmed by the licensee. 9. Alternate Vehicles If a licensee is unable to supply the vehicle requested, it may supply an alternate vehicle with a greater or equal seating capacity to that ordered. If an alternate vehicle is supplied, then the rate charged must be that of the original vehicle requested unless the greater seating capacity is used. If the greater seating capacity is used, the licensee may charge a higher rate as long as the client is notified of this before the trip. Page 6