Gas prices prompt taxi companies to ask Ann Arbor City Council for increase in maximum fare rates

City Council Member Stephen Kunselman, D-3rd Ward, is sponsoring the resolution to have the council concur with the board-approved increase.

The flag drop fee — the flat amount charged in addition to the mileage rate — would remain $3 under the resolution. The waiting time fee also would remain at $24 per hour.

The council will hold a public hearing on the increase before it votes. The meeting starts at 7 p.m. on the second floor of the Ann Arbor Municipal Center at 301 E. Huron St. downtown.

At the city's Taxicab Board meeting on April 28, representatives of six taxicab companies spoke in support of a rate increase to deal with the increased volatility of gas prices.

The existing rate structure was approved by the City Council in May 2008. Since then, gas prices have soared above $4 per gallon and are expected to continue to rise, said Sarah Singleton, the city's Taxicab Board secretary.

Given the volatility in gas prices and the length of time it takes for rate changes to be discussed and approved, Singleton said the board opted to recommend a "significant rate increase" with the understanding that it only establishes a maximum rate companies can charge. If and when fuel prices are lower, she said, companies can opt to charge lower rates.

Singleton said the board doesn't anticipate considering another rate increase until gas prices are above $5 for at least two consecutive months.