City Council panel OKs cab fare increase, rejects RNC surcharge

Last update: July 30, 2008 - 11:55 PM

Cab rates appear likely to head up by mid-August in Minneapolis, after the increase won preliminary approval from the City Council.

A council committee on Wednesday approved an increase from $1.90 to $2.35 per mile. That's atop a flag-drop charge that will remain at $2.50 for the first one-fifth mile. The waiting charge will rise from 35 cents to 40 cents for each minute or fraction of a minute.

The increase is a response to higher gasoline costs, which represent about half of a driver's estimated operating expense, according to a staff report.

Another change for cab rates would alter them automatically every March according to changes in a regional urban transportation cost index.

Both changes are slated to be acted on by the full council on Aug. 8, and would take effect by the middle of the month, before the Republican National Convention opens in St. Paul. The increase would rank Minneapolis fifth-highest among 20 cities surveyed for cab rates.

The committee rejected a proposal by Council Member Gary Schiff to impose a $1 surcharge on cab rides during the convention. He said that would help drivers recover higher fuel costs faster, just as hotels and other businesses raise rates during high-demand periods.

The vote was 3-2 against his plan, with Barbara Johnson, Paul Ostrow and Diane Hofstede opposing it, and Cam Gordon supporting Schiff. The proposal was then forwarded without recommendation, and Schiff said he's willing to look at a different surcharge period.

STEVE BRANDT

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