TITLE
Recommendation to authorize City Manager, or designee, to execute all documents necessary for an agreement with Transportation Network Companies registered with the California Public Utilities Commission to provide transportation services under a nine-month pilot program at the Long Beach Airport, and authorize the imposition of a $3.00 pick-up and $3.00 drop-off fee. (Citywide)
DISCUSSION
The California Public Utilities Commission identifies a Transportation Network Company (TNC) as a company or organization operating in California that provides transportation services using an online-enabled platform to connect passengers with drivers using their personal vehicles. The major TNCs operating in the region are Uber, Lyft, and Wingz.
With the popularity of TNCs growing among consumers, the demand for their services at the Long Beach Airport (Airport) is apparent with the growing number of TNC drop-offs. Currently, TNCs may drop-off passengers at any airport without a permit; however, TNCs must enter into agreements to pick-up passengers at designated locations with airports that have such programs. Many airports in California such as Los Angeles International Airport, John Wayne Airport, and San Diego International Airport permit TNCs to pick-up and drop-off on their premises and charge fees for drop-offs and/or pick-ups. The fees at these California airports range from $2.25 to $4.00. The fee charged during the pilot period is necessary to pay for the additional expenses of operating the program.
The implementation of a pilot program at the Airport will permit TNCs to operate on a temporary basis, allow for data to be collected and for analysis on the impact of a TNC operation. Factors to be analyzed include the number of TNC trip counts (pick-ups and drop-offs), verification of self-reporting, testing of TNC apps, geo-fences, appropriateness of fees and traffic flow analysis.
This matter was reviewed by Deputy City Attorney Richard F. Anthony and by Budget Management Officer Rhutu Amin Gharib on November 30, 2016.
TIMING CONSIDERATIONS
City Council action is requested on December 6, 2016, to establish a pilot program allowing TNCs to operate at the Airport.
FISCAL IMPACT
Under the pilot program, the Airport will collect a $3.00 pick-up and $3.00 drop-off fee, generating revenue in the Airport Fund (EF 320) in the Airport Department (AP) that will pay for operating expenses. At this time, the net financial impact of TNCs operating at the Airport cannot be determined due to insufficient data available.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
JESS L. ROMO, A.A.E.
DIRECTOR, LONG BEACH AIRPORT
APPROVED:
PATRICK H. WEST
CITY MANAGER