CABBIES SAY FARE HIKE NEEDED FOR GAS, MAINTENANCE.

Byline: Donna Huffaker and Chris Sieroty Staff Writers

After 14 years without a fare hike, taxicab companies and operators have mixed feelings about an 11 percent rate increase that is expected to receive final approval by the Los Angeles City Council today.

Cab owners and drivers support a fare increase, but fear they could lose customers and profits over time to less expensive alternatives such as Super Shuttle and even MetroLink.

There are two schools of thought about the decision to increase rates, said Scott Schaffer, president of Burbank-based City Cab Co., whose company is licensed by the city of Los Angeles.

``After 14 years without an increase it's probably reasonable,'' said Schaffer.

``However, if you're competing in a saturated market, including Super Shuttle and town car operators, you can make an argument that you're pricing yourself out of the market,'' he said.

When it comes to getting behind the increase, Schaffer said, ``I'm ambivalently supportive.''

Waiting for fares at Burbank Airport, taxi driver Armen Zakarian said the slight rate increase will help operators break even at the end of every day, not make money.

``The extra money goes into my gas tank, not my pocket,'' said Zakarian, a driver for City Cab Co.

Zakarian estimates he spends about $43 a day on gas. Before pump prices escalated, he refilled his tank daily for just under $20, he said.

Still, Zakarian is pleased that the City Council will likely bump the per-mile cost from $1.60 to $1.90, because when you drive for a living, unexpected expenses seem to lurk around every intersection - like the rock that pierced Zakarian's windshield on Sunday.

The driver spent $190 to replace the windshield, he said.

Echoing Zakarian's findings, Edwin Zaroukian, taxi coordinator for City and Checker cab companies, said the 30-cent-per-mile increase mostly helps offset maintenance costs.

Rates should have increased a long time ago, Zaroukian said, noting that a series of short trips nets little money but causes a lot of wear and tear on a taxi.

``Everyone's happy about this. The customers haven't complained and now drivers can better afford maintenance. Before (the increase), they were losing money,'' he said.

Jessica Copen, director of communications for Los Angeles Mayor Richard Riordan, said the mayor supports the proposed increase, but wouldn't comment further until after today's vote.

Last Friday, the council voted 13-1 to allow operators to charge $1.90 for the first one-ninth mile, and 20 cents for each additional one-ninth mile. Since last week's vote wasn't unanimous, the council will vote again on the proposal this week. On a second reading, it just needs 12 votes to pass and move on to the mayor, who is expected to sign the measure.

``It's long overdue,'' said Barry Glickman, chief of staff for Councilman Rudy Svorinich Jr., who represents the 15th District and chairs the council's Transportation Committee.

However, Councilman Nate Holden, who represents the 10th District and cast the dissenting vote, said he doubted that the fare increase is needed and will vote against it.

``It's not true to say they haven't had an increase in 14 years,'' said Holden, who argued that many unscrupulous cab drivers have been driving up fares by taking indirect routes to destinations. He also complained that drivers have ignored senior citizens and inner-city areas.

``I don't think members of the council have thought this out,'' Holden said. ``Some on the Transportation Committee are very closely aligned with the industry. I'm going to urge the Ethics Committee to investigate.''

The proposal would allow cab companies to levy a $2.50 surcharge for trips originating at Los Angeles International Airport. The measure would also set a flat fare of $27 for trips between LAX and downtown Los Angeles.

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(color) Scott Schaffer, president of City Cab Co., says a fare hike is probably due, but he worries that some passengers may seek alternate transportation.

Charlotte Schmid-Maybach