To: Board of Supervisors
From: Aviation
Agenda Section: Consent
SUBJECT:
title
Non-Exclusive Ride-Sharing Company Concession Agreement with Lyft, Inc.
end
RECOMMENDATION(S):
Recommendation
That the Board of Supervisors:
1. Approve and authorize the Director of Aviation, or designee thereof, to execute the attached Non-Exclusive Ride-Sharing Company Concession Agreement with Lyft, Inc.;
2. Authorize the Director of Aviation to execute any amendments and successor agreements after review by County Counsel, Risk Management and County Administrative Office; and
3. Direct the Clerk of the Board to return the signed agreement to the Department of Aviation.
Body
SOURCE OF FUNDING:
Aviation Enterprise Fund (3530381)
DISCUSSION:
Due to the expansion of airline services to the California Redwood Coast-Humboldt County Airport (ACV), unprecedented numbers of passengers are traveling through the terminal and seeking transportation throughout Humboldt County. ACV is currently limited on the number of public transportation services, taxi companies, and shuttles serving the traveling public.
Transportation Network Companies (TNC) are popular with travelers as an affordable, convenient ground transportation option. Lyft, Inc., a San Francisco based TNC who operates in airports nationwide, has indicated they would like to begin serving Humboldt County under a non-exclusive ride sharing concession agreement. Lyft’s ridesharing service would allow passengers to download an application on their smartphone and request a ride to a specific location. Anytime a Lyft driver crosses the geofence onto airport property to pick up or drop off a passenger, the Humboldt County Department of Aviation would receive a fee. This proposed agreement with Lyft, Inc. is the first of its kind for Humboldt County airports and will open the door for similar transportation network companies and other local enterprise to service the traveling public under similar agreements.
The Department of Aviation and Economic Development Division, Project SOAR, have negotiated a new agreement with Lyft, whereby the concessioner will pay the county a “Per Trip Fee” of $2.00/trip, for a term of one (1) year from the date of commencement with an option to renew for an additional one (1) year period.
FINANCIAL IMPACT:
Should your Board approve the attached agreement, Lyft, Inc. will pay the County of Humboldt, Department of Aviation $2.00 per trip. This agreement would result in an estimated annual revenue of $2,400 to the Department of Aviation.
STRATEGIC FRAMEWORK:
This action supports your Board’s Strategic Framework by providing community-appropriate levels of service and fostering transparent, accessible, welcoming and user friendly services.
OTHER AGENCY INVOLVEMENT:
N/A
ALTERNATIVES TO STAFF RECOMMENDATIONS:
The Board could choose not to approve the agreement Lyft, Inc. However, it is not recommended due to the potential impacts outlined below:
• The Aviation Department would be forfeiting $2.00 per trip revenue for an estimated annual revenue of $2,400;
• The unmet demand for additional ground transportation from the traveling public would continue; and
• There would continue to be little competition between ground transportation companies and the services they provide, which, in turn, allows customers less options for vehicles, pricing, service availability, and company loyalty reward programs.
ATTACHMENTS:
1. Non-Exclusive Ride-Sharing Company Concession Agreement with Lyft, Inc.
PREVIOUS ACTION/REFERRAL:
Board Order No.: N/A
Meeting of: N/A
File No.: N/A