Taxi surcharge to cover pump prices is possible

OCEAN CITY -- Ocean City leaders are mulling a potential taxi fare increase that could go into effect before the end of the month.

Many resort cab drivers and medallion holders attended a Police Commission meeting, asking for the fare hike to help offset increasing gas costs. Drivers were divided, however, on which would be better: a flat per-trip surcharge or an increase in the per-mile fare.

Some drivers supported the surcharge, which would be publicized by way of a sticker attached to cab windows and would probably be $1 per ride. The surcharge amount would go directly to the drivers, who typically pay for gas out of their own pockets. Also, a sticker would allow them to avoid having to pay for their fare meters to be adjusted. Drivers looking to provide a discounted fare could also opt not to invoke the surcharge.

A meter charge increase would most likely be of three cents per one-tenth of a mile, leading to an increase from $2.20 per mile to $2.50. It would allow drivers to make much more than $1 extra on rides longer than a few miles.

Commission members deliberated behind closed doors for about 15 minutes, but didn't come to a decision on the matter, Mayor Rick Meehan said. They would talk to the other members of the commission and then make a recommendation to the city council, he said.

"It is clear to us that there does need to be some change, and it needs to be done in a timely manner," Meehan said.

Drivers asked for a decision to be made as soon as possible, so they could take measures if necessary to change their meters before cab inspections begin March 21.

Larry Bode, owner of Casino Express Taxi, told the commission he favors a meter change because the increase in gas prices coupled with other expenses -- including the $500 annual medallion renewal fee -- could not be sustained on a 22 cent per one-tenth of a mile fare.

"Some of us are having a problem making ends meet," he said.

Carl Kufchak, who owns Ocean City Taxi, opposed any fare increase on the basis that it wouldn't be good for the town or the taxi industry.

"I don't want to see us outprice ourselves and be without customers," he said.

If there is going to be an increase, Kufchak said he would beg the commission to go with the surcharge so there would be no "tampering" with the meters.

"It has worked in the past, and it will work again," Kufchak said. In July 2008, when gas prices eclipsed $4 per gallon, the city initiated a $1 per ride surcharge.

Bode questioned Kufchak's motive for opposing a fare increase. "If the owner-operators cannot make a living, they're going to fold," he said. "And who's gonna be there to pick up the medallions? The bigger fleets."

Kufchak later said he is not looking to purchase any more medallions than the 32 he currently has.
Ruth Carpenter of AbouTown taxi opposed a meter increase as well.

"If you raise the rates, it makes a difference in these people's pocketbooks," she said, and added that it could become a safety issue. "People might see the raise and think, 'well, I can't afford this,' and end up driving drunk."

Ocean City Chief of Police Bernadette DiPino's final recommendation was for the surcharge, and Captain Victor Bunting followed suit.

"It seems to me that the biggest issue is with gas prices, and I think (a surcharge) will help alleviate that problem," DiPino said.

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