Hot Springs board approves pedicab fare increase to $5 after debate over receipts and conduct

The Hot Springs Board of Directors voted to amend the nonexclusive franchise and operator rate schedule for JJ’s Pedicabs, raising the base fare within the downtown business district from $2 to $5 per person and establishing a $1-per-person-per-minute sightseeing rate. The vote came after operators and their attorney presented cost receipts and members of the board questioned the sufficiency of evidence and the operator’s conduct during earlier meetings.

The board’s transportation and licensing materials said the Transportation Advisory Committee met Aug. 18 and recommended the increase, and staff included receipts and letters from vendors submitted by operator Jason Bennett. City clerk Harmony Morrissey summarized the committee’s recommendation and the materials provided to the board.

The request prompted detailed questioning on cost justification. Director Phyllis Beard said the board had asked for comparative receipts showing past prices and noted the documentation presented included several recent receipts but no historic prices to demonstrate a decade-long rise in parts or fuel. She said, “So did I miss the receipts where you're showing the, like, the where you paid lesser for that?”

Bennett’s attorney, Josh Harris, acknowledged older receipts were not retained and argued that rising business costs and expanded operating days justified the increase. “There has been a cost of business increase,” Harris said, adding Bennett now operates seven days a week and has higher wear-and-tear costs. Harris submitted letters from vendors and receipts for recent repairs and signage.

Several directors defended the increase as market-driven and modest for a novelty tourism service. Director Erin Holiday said she had not received downtown complaints and observed, “$2 a person to ride in the pedicab … I was shocked to hear that it was still $2 a person. I don’t think that $5 a person is outrageous.” Director Dudley Webb and others noted positive customer feedback and the pedicabs’ contribution to downtown character.

The board split on the motion. Roll call recorded: Director Erin Holiday, yes; Director Phyllis Beard, no; Director Marsha Dobb Smith, yes; Director Dudley Webb, yes; Director Karen Garcia, present (no vote recorded); Trustee (as listed in the roll call), no; Mayor Pat McCabe, yes. The ordinance implementing the rate change was adopted.

Discussion vs. decision: The board’s action was a formal approval of revised rates; debate focused on whether the operator submitted sufficient historical cost data and whether his behavior in public meetings raised concerns about customer interactions. No additional conditions or enforcement actions were attached to the approval.

Background and next steps: The franchise and rate schedule change will allow the operator to charge $5 per person within the defined downtown boundary and $1 per person per minute for sightseeing tours. The Transportation Advisory Committee’s recommendation and the submissions from the operator form the administrative record for the board’s decision. Any future complaints about fares or service would be handled under existing code and franchise terms.

Ending: The board adopted the rate change at the Sept. 2 meeting; the operator and city staff did not announce an effective date during discussion.