REPORT TO THE CITY COUNCIL
April 6, 2017
FROM: BRUCE RUDD, City Manager
BY: KEVIN R. MEIKLE, Director of Aviation
Airports Department
SUBJECT
Title
***RESOLUTION - 532th amendment to the Master Fee Schedule Resolution No. 80-420 to adjust rates and charges at Fresno Yosemite International Airport (Council District 4)
Body
RECOMMENDATION
Staff recommends Council approval of the 532nd Amendment to Resolution 80-420 adopting the Master Fee Schedule to establish a fee for Transportation Network Companies (TNCs) that desire to operate at Fresno Yosemite International Airport (FAT).
EXECUTIVE SUMMARY
The proposed TNC rate structure is consistent with Airports' practice of complying with federal grant assurances by charging commercial operators providing services on a for-profit basis a non-discriminatory fee. The proposed fee supports Airports' goal to meet its ongoing operations and maintenance costs, facilities capital program, long term capital needs, and to ensure future investment-grade bond ratings. All airports have a fee structure for TNC operations.
TNCs are commonly referred to as "Ride Sharing" services, such as Uber and Lyft, and are regulated by the California Public Utilities Commission (CPUC). The CPUC sets operating and public responsibility rules, one of which requires TNCs to obtain permits/agreements with airports prior to offering their services at airports throughout California. The Master Fee Schedule Amendment will: (i) establish a TNC fee structure and (ii) enable TNCs that enter into an agreement with Airports to operate at FAT in compliance with the CPUC regulation.
BACKGROUND
TNCs operated unregulated in California until the CPUC enacted its regulations in early 2014. Airports was approached by Uber in the fall of 2015, and by Lyft in early 2016. Airports negotiated an agreement with each in a manner that enabled the development of a standard agreement under which TNCs operate on the same terms and conditions. The TNC agreement...
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