REPORT TO THE CITY COUNCIL
FROM: HENRY THOMPSON, Director of Aviation
Airports Department
THROUGH: MELISSA GARZA-PERRY, Airports Properties Manager
Airports Department
BY: MARCOS AYALA, Airports Property Specialist II
Airports Department
SUBJECT
Title
Approve the First Amendment to the Non-Exclusive Transportation Network Company Airport Permit and Agreement between the City of Fresno and Lyft Inc., and Uber Technologies, Inc., respectively, to extend the term of their agreements for an additional three years. The potential revenue of both agreements for the additional years is $1,643,100. Total anticipated revenue during the full term of both agreements is approximately $2,788,311. (Council District 4)
Body
RECOMMENDATION
Staff recommends that the City Council approve and authorize the Director of Aviation to execute a First Amendment to the Non-Exclusive Transportation Network Company (TNC) Airport Permit and Agreement between the City of Fresno and Lyft, Inc. (Lyft), and the City of Fresno and Uber Technologies, Inc. (Uber) to allow for the continuation of ridesharing services at Fresno Yosemite International Airport (FAT).
EXECUTIVE SUMMARY
The Airports Department (Airports) currently has a Non-Exclusive Transportation Network Company Airport Permit and Agreement (Agreement) with Lyft and Uber, respectively, ending on June 30, 2024. Executing these Amendments will extend the term of Lyft and Uber’s Agreements to June 30, 2027, with two one-year extensions at Airports’ discretion. Lyft and Uber provide ridesharing services and are another ground transportation option available for passengers arriving or departing FAT.
BACKGROUND
Lyft and Uber are Transportation Network Companies (TNC), commonly known as ridesharing companies, which provide ground transportation services by matching drivers through apps on smartphones with individuals seeking rides. Airports entered into Agreements with Lyft and Uber in 2019. The Agreements established a trip fee for the privilege of accessing the Airport, and it ensures ground transportation providers pay a fair, reasonable, and proportionate share for their use of Airport infrastructure. The trip fee is $3 per pick up and $3 per drop off.
Since the beginning of the Agreements through the end of 2023, Lyft and Uber have provided over 326,000 rides to FAT passengers.
The City Attorney’s Office has reviewed and approved the Amendments to both Agreements as to form. Risk Management has reviewed all insurance requirements and determined no updates are needed.
ENVIRONMENTAL FINDINGS
This amendment is not a “project” for the purpose CEQA pursuant to CEQA Guidelines Section 15378.
FISCAL IMPACT
The average annual estimated revenue generated by both agreements is $547,700 in the additional three years. Total anticipated revenue for the full term of the agreement is $2,788,311. All revenues will be deposited into the Airports Enterprise Fund and will contribute to the operation and maintenance of FAT. There is no impact to the General Fund from this item.
Attachments:
Lyft First Amendment to TNC Airport Permit and Agreement
Lyft Original Agreement
Uber First Amendment to TNC Airport Permit and Agreement
Uber Original Agreement