City of Alexandria, Virginia
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MEMORANDUM
DATE: MAY 23, 2013
TO: THE HONORABLE MAYOR AND MEMBERS OF CITY COUNCIL
FROM: RASHAD M. YOUNG, CITY MANAGER /s/
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Final Passage of an Ordinance to Establish a Requirement that Taxicabs Accept Credit Card Payments. [ROLL-CALL VOTE]
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ISSUE: In order to conform with regional standards and improve customer service and convenience the Alexandria taxicab industry needs to allow customers to pay by credit card. The Traffic and Parking Board recommends requiring that taxicabs accept credit card payment for fares.
RECOMMENDATION: That City Council will pass the ordinance on May 28, 2013 after:
1) First reading on April 9, 2013; and
2) Public hearing and second reading on Saturday, April 13, 2013; and
3) Approved passage of the credit card policy, May 14, 2013.
4) Ask staff to turn language into ordinance language and bring to final adoption on May 28. Modified ordinance. approve the passage of the credit card policy.
DISCUSSION: On January 22, 2013 City Council directed the Traffic and Parking Board to provide recommendations on Section 9-12-32 of the Code of the City of Alexandria and to propose language requiring taxicabs to accept credit cards. The Traffic and Parking Board held a public hearing on February 25, 2013. At this hearing, nine speakers spoke in favor of requiring drivers to accept credit cards and two speakers were opposed. Opposition was focused on the cost to the drivers.
Staff researched the comparable costs of implementing credit card reading equipment in cabs. The typical cost for a backseat credit card swipe device is 1.5% of each transaction if the card reader is leased or approximately $750 if purchased. In addition, there are fees ranging from 2.75% to 7% per transaction depending on the credit card processing fees charged by the credit card processor. The Bo...
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