2014-07-22 Infrastructure & Services Committee Agenda

INFRASTRUCTURE & SERVICES COMMITTEE MEETING AGENDA                                     22 JULY 2014


Table 4: Approximate cost to Council with increased usage of Council Cabs

  Percentage increase in       Number of passengers       Estimated cost to      Estimated annual
   passengers carried            carried per month        Council per month       cost to Council
5%                            81.9                                     $900                 $10, 810
10%                           85.8                                     $943                  $11,325
25%                           97.5                                   $1,072                  $12,870
50%                           117                                    $1,287                  $15,444
75%                           136.5                                  $1,501                  $18,018
100%                          156                                    $1,716                  $20,592

Note: All dollar references in this report are GST exclusive.

4.3    Continue Council Cabs with a fare increase

Passengers are currently charged a flat rate of $2 each way. Using data from the last six
months, increasing the fare to $3 each way would result in an average monthly saving of
$136.55. Table 5 below provides a comparison of the approximate costs to Council with a $2 and
$3 flat rate. It is anticipated that if Council Cabs continues without any promotion and a fare
increase of $3 each way, the annual cost to Council would be approximately $8, 820.

Table 5: Fare Increase
                                                          Total paid by passengers      Total cost to
                 Total paid by        Total cost to
                                                                Fare Increase           council (excl
                  passengers          council (excl
                                                                      $3                   GST )
                Existing Fare $2         GST )
                                                                                             $3
                                           $2
  6 month                    $896         $5,229.65                           $1,404        $4,410.34
   TOTAL
  Monthly                  $149.33          $871.61                        $234.00            $735.06
  Average

4.4    Continue Council Cabs with a fare increase and actively promote the services

Based on the existing average of 78 passengers carried per month, with an increased fare of $3,
the average cost to Council per passenger carried would be $9.40. Table 6 below provides
approximate costs to Council with a fare increase and an increase in passengers carried due to
increased marketing. It is anticipated that the annual cost to Council could range from $9,240 -
$17,592 based on a 5-100% respective increase in passengers carried.

Table 6: Approximate cost to Council with increased usage of Council Cabs and
increased Fare

  Percentage increase in       Number of passengers        Approx. Cost to       Approx. Annual
   passengers carried            carried per month        Council per month      cost to Council
5%                            81.9                                     $770                   $9,240
10%                           85.8                                     $806                   $9,672
25%                           97.5                                     $916                  $10,992
50%                           117                                    $1,100                  $13,200
75%                           136.5                                  $1,283                  $15,396
100%                          156                                    $1,466                  $17,592



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