The City Council has approved a taxi license, as well as new maximum rates that taxi services can charge.

City Councilor Joseph P. McCoy said this week that there have been other taxi licenses in the past, but the one approved on Wednesday will be the only active business.

Kefass Mohamed, of 5 Arlington St., plans to operate Tiznit Cab from his home with one vehicle, a 2001 Dodge minivan, according to his application. He could not be reached for comment.

The review of the city ordinance that governs maximum rates was prompted by Mohamed's application, which was received by the city in April, said McCoy. The last time the rates were updated was in 2000, he said.

The council approved increasing the initial pickup fee from $1.50 to $2.50, the mileage fee from $1.20 to $2.80 a mile, and the partial mileage fee from 20 cents for a sixth of a mile to 35 cents for an eighth of a mile.

The waiting time was increased from 20 to 35 cents a minute.

McCoy said he called cab companies in Springfield, Chicopee, and Amherst, and learned that they charge the $2.50 pickup fee and that the rest of their maximum rates are the same as the new ones approved by Easthampton.

The taxi company based in Northampton charges a flat fee of $7.50 within that city, or $12.50 for ferrying between Easthampton and Northampton.

Councilor James P. Kwiecinski said that if these rates were charged by a company, going more than three miles within Easthampton would cost more than any ride provided by a taxi in Northampton.

Both McCoy and Council President Daniel D. Rist noted that the rates set by the council are maximum fees.

"I think the market will settle the price at what a person will feel comfortable with," said McCoy.

He noted that Mohamed had received the approval of Police Chief Bruce W. McMahon, and a permit from the Zoning Board of Appeals to run a home business.

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