Okaloosa County BOCC — August 18, 2015 — Ground Transportation Policy for Transportation Network Companies — agenda request — reading text

BOARD OF COUNTY COMMISSIONERS AGENDA REQUEST DATE: August 18, 2015 TO: Honorable Chairman and Members of the Board FROM: Sunil Harman SUBJECT: Ground Transportation Policy for Transportation Network Companies DEPARTMENT: Airport BCC DISTRICT: 2 STATEMENT OF ISSUE: On May 19, 2015 the BCC voted unanimously to direct staff to identify options for allowing Transportation Network Companies (TNC), such as Uber and Lyft, the opportunity to operate pre-arranged for-hire services from Destin-Fort Walton Beach Airport (VPS). BACKGROUND: A TNC is defined as an organization, whether a corporation, partnership, sole proprietor, or other form that provides transportation services for compensation using an online enabled application (app) or technology platform to connect customers, in this case airport patrons and passengers departing the terminal with drivers using their personal vehicles as for- hire vehicles. It is important to recognize that TNCs as a technology based disruption model present a challenging and still evolving business model for airport ground transportation services; as they have presented regulatory, revenue, liability risk and safety challenges to airports. The accommodation of TNCs insisting that they are just using technology to connect customers with drivers (who are also viewed by TNCs as customers who decide when they work and who they will accept and refuse service to) have prompted sponsors of airports to negotiate permitting and revenue requirements on a customized TNC company by company basis. While it is widely acknowledged among US airports that the continued proliferation of TNCs is here to stay, with new companies emerging in the future, including adoption of TNC type applications by existing taxi and transport services, who will need to adapt to stay viable, it is recommended that the Board base any policy it adopts on the regulatory constraints that airport operates under to ensure the security and safety of its customers. Issues relating to the operation of TNCs at airports have a number of challenges throughout the county concerning airport ground transportation access. Many airports have established regulations imposing permitting and licensing restrictions on the transportation of passengers. These regulations have been adopted to ensure security from existential terrorist threats, protection of the airport’s arriving passengers safety and security, mitigation of the liability risk that would otherwise be assumed by the airport and its operator, assurance of ADA compliance and finally compliance with FAA grant assurances that require airports to operate as self- sustaining enterprises in an economically non-discriminatory manner. There are only a few airports that are similar in size to VPS that have entered into agreements with Uber and are as follows: Sarasota Bradenton International Airport has a one-year agreement and is paid a fee of $2.50 per pick-up. The vehicles are not allowed to pick passengers up at the curb and are required to park in pre-arranged locations. Uber has combined single limit commercial auto liability insurance for the drivers with limits not less than $1 million per incident for damages and injuries to drivers and passengers. Either party can terminate  the agreement by giving not less than 30 days written notice. Savannah-Hilton Head International Airport has a one-year agreement and requires insurance amounts of $1 million for liability and $1 million for auto and a fee payment basis of $4 per pick up or $1,000 per month, whichever is greater. Either party can terminate the agreement by giving not less than 30 days written notice. At both airports, the ride sharing companies pay higher fees and have higher insurance requirements than the existing permitted taxi companies in an effort to maintain parity with the taxi companies that pay annual permit fees and additional commercial related costs. Okaloosa County is one of those jurisdictions that have adopted a Ground Transportation Policy (Ordinance 14-01). However, some TNCs have been operating at the airport without complying with these regulations. There are certain liability issues related to the treatment of TNCs which may arise. The County Attorney has prepared a summary of those issues which is attached to this Agenda Summary. Currently, the County’s Ground Transportation Policy - Ordinance 14-01 imposes several regulations on the transporting of passengers from the Destin-Fort Walton Beach Airport. As summary of those provisions are as follows: • Business Tax Receipt: It shall be unlawful for any person to be engaged in or carry on business of operating a commercial vehicle without first obtaining a business tax receipt from the Okaloosa County Tax Collector. • Insurance: All automobile liability insurance shall provide not less than $300,000 combined single limit bodily injury and property damage liability. Okaloosa County named as an additional insured. Certificate of insurance is required as proof of insurance. • Hold Harmless: Each operator must sign a hold harmless agreement prior to permitting. • Background Check: Background check is required on all operators. The background check shall include a criminal records fifty states (Department of Correction Records, County Records, Court Records, and Sheriff Records) databases, convictions only, which shall include felonies, misdemeanors, parole, supervision and incarceration. The background check shall also include a sexual offender/predator search. A three year Florida Drivers License history is also required. • Vehicle Inspection: All permit applicants will have their vehicle inspected. Inspections are conducted by the Airports Police or designated representative. Vehicle are inspected for air conditioning and heating, cellular phone, ABC fire extinguisher, first aid kit, flares or triangles, proper signage on vehicle, proper proof of insurance, proof of vehicle registration, cleanliness, appearance, and vehicle safety equipment, I.e., head lights, turn signals, horn, brake lights, seat belts, windshield wipers, tires, windshield, mirrors. Windshields shall be free of cracks in excess of one inch in length. All vehicles shall be free of damage, both interior and exterior, which may pose a threat to the public. All door locks shall be in working order. All equipment shall be operated in accordance with Florida State Law. • Permit Fee: Operators desiring to conduct business at the Airport shall obtain an Airport permit. Permit fees are $400 annually from date of issuance. No  commercial vehicle shall be allowed to pick up passengers from the Airport without a permit. Decals shall be permanently affixed on the left side of the rear bumper or in an upright position to the left side of the rear window and shall be clearly visible at all times. Only drivers who meet the requirements of 14-01 and has a valid permit with Okaloosa County Airports may pick up passengers at the Airport. Alternative Approaches to TNC Operations 1. Currently, TNCs are not complying with the County Ordinances. The First Option, in order for the TNC to operate, it must fully comply with the requirements of the County’s current Ordinance. Under this approach, they would still be required to meet the above requirements, and therefore be permitted to operate as follows: • TNC driver(s), while conducting business, will only park in designated TNC Pre- Arranged parking space(s). (Exhibit 1) • The TNC driver may enter the terminal baggage claim area to contact their passenger and give assistance if needed. • No TNC driver shall seek or solicit passenger(s) whether or not the vehicle is identified as a TNC at Airport. No driver of any TNC shall use any words or gestures that could be construed as soliciting a passenger for hire. • TNC companies or drivers refusing to comply with these requirements may have their Okaloosa County Airports permit revoked or suspended in accordance with County Ordinance Number 14-01. 2. A Second Option would be a modification of the County’s Ordinance to specifically address and accommodate TNCs. Under this alternative, the County would conduct a public hearing and amend the County’s Ordinance to address these conditions which are created as a result of the operation of TNCs. 3. The Third Option would be exempt TNC’s from the operation of the County’s Ordinance governing for-hire vehicles operating from the airport and essentially not regulate its services. This creates some potential issues. The Airport has approximately 40 companies and 101 permitted vehicles that provide ground transportation services. On average, there are approximately 62 daily taxi departures from the Airport and if TNCs are allowed to conduct unregulated pickups, this will greatly diminish the business of current companies that are permitted and in compliance with the County Ordinance and some will be forced to go out of business. TNCs are usually part time independent operators and most of the current registered taxi companies conduct around the clock operations which could result in potential problems with routine, diverted or late arriving aircraft and the lack of available ground transportation available to passengers. In addition, TNCs are not required to carry car seats nor meet ADA requirements for wheelchair accessibility. This will also create some additional potential issues as noted in the County Attorney’s summary. OPTIONS: Approve/Disapprove RECOMMENDATIONS: Department of Airports recommends the BCC approve the permitting requirements for TNC’s to operate at Destin-Fort Walton Beach Airport in accordance with Okaloosa County Ordinance 14-01 in order to hold Okaloosa County harmless, reduce risk of property damage, uphold public safety and pay the applicable permitting fee to operate their business. RECOMMENDED BY: APPROVED BY: John Hofstad, County Administrator