REPORT TO THE CITY COUNCIL
May 16, 2019
FROM: KEVIN R. MEIKLE, Director of Aviation
Airports Department
SUBJECT
Title
Approve the Non-Exclusive Transportation Network Company Airport Permit and Agreement between City of Fresno and Uber Technologies, Inc., (Uber), for ground transportation services by computer application-based networks at Fresno Yosemite International Airport. (Council District 4)
Body
RECOMMENDATION
Staff recommends Council authorize the Director of Aviation to execute the Non-Exclusive Transportation Network Company (TNC) Airport Permit and Agreement (Agreement) Uber Technologies, Inc., a Delaware Corporation, to provide ground transportation services at Fresno Yosemite International Airport (FAT).
EXECUTIVE SUMMARY
The new Uber Agreement establishes a fee for the use of Airport infrastructure, effective on July 1, 2019, as specified in the City’s Master Fee Schedule (MFS). The term of the Agreement is for three years. Executing this Agreement will enable Uber to provide TNC service at FAT for the traveling public and is timely with the peak summer travel season.
BACKGROUND
Uber began operating at FAT under a no fee TNC agreement in 2016, but discontinued service in May 2017. Their business model is to provide ground transportation services on demand by the traveler with the use of a mobile application. California law prohibits TNC’s from operating at Airports without a permit.
The Uber Agreement is part of FAT’s Ground Transportation (GT) program, which will be fully implemented by July 1, 2019, and will: (i) help plan for and provide facilities and services needed to ensure safe and orderly services; (ii) ensure that ground transportation providers pay a fair, reasonable and proportionate share of funding to maintain existing infrastructure; and (iii) help define and partially fund future expansion.
The City Attorney has reviewed and approved Non-Exclusive TNC Airport Permit and Agreement as to form.
ENVIRONMENTAL FINDINGS
This amendment is not a “project” as defined by the California Environmental Quality Act Guidelines Section 15378.
LOCAL PREFERENCE
Local preference in not applicable to this project pursuant to Fresno Municipal Code 4-109(b)(3).
FISCAL IMPACT
The annual estimated revenue generated by the Agreement, based on Uber’s previous activity levels at FAT, will be $72,540.00. The total estimated revenue for the full three year term of the Agreement will be $217,620.00. All revenues generated from the Agreement will be deposited into the Airport Enterprise Fund and contribute to the operation and maintenance of FAT. There is no impact to the General Fund from this action.
Attachment:
- Non-Exclusive Transportation Network Company Airport Permit and Agreement