Title
Amend Phoenix City Code to Include Peer-to-Peer Car Sharing and the Commercial Use Permit Requirements at Phoenix Sky Harbor International Airport (Ordinance G-7221)
Description
Request
Request to authorize the City Manager, or his designee, to amend City Code to establish an ordinance for the Peer-to-Peer Car Sharing Program that includes a fee for shared vehicle transactions as authorized under Arizona Revised Statutes (A.R.S.) 28-9614, and to revise Phoenix City Code - Chapter 4 Aviation - sections 4-1, 4-190 and 4-192 to modernize, strengthen, and clarify the ordinance related to Commercial Use Permits.
Report
Summary
Peer-to-Peer Car Sharing
On April 9, 2021, Arizona Senate Bill 1720 (SB 1720) was signed into law to allow peer-to-peer car sharing, which allows vehicle sharing operators and their shared vehicle owners to use certain Phoenix Sky Harbor International Airport (PHX) facilities when conducting operations that provide vehicle sharing services for the convenience of the public at PHX. Per A.R.S. Section 28-9601(7)(a), peer-to-peer car sharing means "the authorized use of a shared vehicle by an individual other than the shared vehicle owner through a peer-to-peer car sharing program." The Aviation Department entered into a temporary license agreement with peer-to-peer car sharing companies to pilot the program at PHX. Establishing an ordinance in the City Code for peer-to-peer vehicle sharing operations will effectively allow peer-to-peer vehicle sharing businesses to continue to operate at PHX by requiring them to have an operating agreement with PHX. These operating agreements may establish operating fees for shared vehicle transactions that will allow the Aviation Department to collect revenue from these operations.
Commercial Use Permit Program
During a recent City audit of the Commercial Use Permit (CUP), several areas were identified that required updating to be consistent with Aviation Rules & Regulations and clarify business operations. The following recommended updates will modernize, strengthen, and clarify the ordinance governing CUP program:
- Section 4-1. Definitions
- Section 4-190. Commercial use permit requirements; effective date; applicability.
- Section 4-192. Commercial use permit fees.
Section 4-1. Definitions
To expand the definition of “Air carrier” to include consortiums of Air carriers.
Current Language:
"Air carrier" means a person who is certificated by the Federal Aviation Administration to engage in air transportation directly by lease or by other arrangement.
Proposed Language:
"Air carrier" means a person who is certificated by the Federal Aviation Administration to engage in air transportation directly by lease or by other arrangement. For purposes of this Chapter, a consortium of Air carriers will be treated as an Air carrier.
Section 4-1. Definitions
To define “Affiliate” to harmonize with Aviation Rules & Regulations 10-01.
Current Language:
None
Proposed Language:
“Affiliate” means (a) any Air carrier flying in or out of the Airport solely for the benefit of another Air carrier, under the livery of that Air carrier, and under contract to that Air carrier, or if flying under its own livery, is not selling any seats in its own name and all seats are being sold in the name of the Air carrier that Affiliate is under contract to, or (b) a wholly owned subsidiary of Air carrier or a subsidiary of the same corporate parent of the Air carrier. An Affiliate shall be considered an agent of the Air carrier for which it flies. Any Air carrier that flies under its own livery and sells seats in its own name shall not be classified as an Affiliate.
Section 4-1. Definitions
To define “Courier Type Service” to exclude baggage delivery companies from CUP Fee exemption.
Current Language:
None
Proposed Language:
Courier Type Service” means a person or company that delivers goods, packages, messages, letters, documents, parcels, or consignments to the airport premises. For purposes of this Chapter, Courier Type Services do not apply to the delivery of an airlines’ mishandled luggage or packages from the airport premises to its passenger(s).
Section 4-190. Commercial use permit requirements; effective date; applicability.
To amend Section 4-190 to exempt services provided to or by Affiliates from CUP requirements.
Current Language:
A. Individuals or companies who provide an aviation related service(s) to or for a certificated Part 121 and/or Part 135 Air carrier shall be required to obtain a commercial use permit (CUP) authorizing their commercial activity on or from the airport premises; except, a CUP shall not be required for:
1. Commercial activities authorized under terms of an existing Aviation Department lease or license. Air carriers will not be required to obtain a CUP for providing services to or carriers with whom they are sharing a gate. Air carriers will be required to obtain a CUP for providing services to all other carriers.
2. Deliveries of a product to the airport premises or courier type services.
3. Contractors performing work under a tenant improvement contract.
B. Applicability. The provisions of this Article shall not be in conflict with or in derogation of the minimum standards and agreements for fixed base operators.
C. Exclusion. The provisions of this Article shall not apply to, or supersede, the provisions of section 4-6 of this chapter. (Ordinance G-4116, § 2, 1998)
Proposed Language:
A. Individuals or companies who provide an aviation related service(s) to or for a certificated Part 121 and/or Part 135 Air carrier shall be required to obtain a commercial use permit (CUP) authorizing their commercial activity on or from the airport premises; except, a CUP shall not be required for:
1. Commercial activities authorized under terms of an existing Aviation Department lease or license. Air carriers will not be required to obtain a CUP for providing services to Affiliates or carriers with whom they are sharing a gate. Air carriers will be required to obtain a CUP for providing services to all other carriers.
2. Affiliates of the Air carrier for whom the services are being provided.
3. Deliveries of a product to the airport premises or courier type services.
4. Contractors performing work under a tenant improvement contract.
B. Applicability. The provisions of this Article shall not be in conflict with or in derogation of the minimum standards and agreements for fixed base operators.
C. Exclusion. The provisions of this Article shall not apply to, or supersede, the provisions of section 4-6 of this chapter. (Ordinance G-4116, § 2, 1998)
Section 4-192. Commercial use permit fees.
To require CUP permit holders to provide copies of invoices to substantiate the CUP fees being reported.
Current Language:
A. The fee for CUP activities and operations on or from the airport, is eight percent of gross revenue, as defined in the CUP.
B. The fee provided in subsection (A) shall be paid on a monthly basis and shall be due and payable at the place and time that the Aviation Director shall designate.
C. Delinquent account fees shall be assessed in accordance with section 4-7 of the Phoenix City Code. (Ordinance G-4116, § 2, 1998)
Proposed Language:
A. The fee for CUP activities and operations on or from the airport, is eight percent of gross revenue, as defined in the CUP.
B. Reporting and payment of the fee provided in subsection (A) shall be substantiated with copies of associated invoices and paid on a monthly basis and shall be due and payable at the place and time that the Aviation Director shall designate.
C. Delinquent account fees shall be assessed in accordance with section 4-7 of the Phoenix City Code. (Ordinance G-4116, § 2, 1998)
Concurrence/Previous Council Action
The Transportation, Infrastructure, and Planning Subcommittee recommended approval of this item on Jan. 31, 2024 by a vote of 4-0.
Location
Phoenix Sky Harbor International Airport, 2485 E. Buckeye Road
Council District: 8
Public Outreach
On Nov. 1, 2023, a 60-day notice to the public was published for the Peer-to-Peer Code Revision. On Dec. 15, 2023, a 15-day notice to the public was published for the Peer-to-Peer Code Revision.
Department
Responsible Department
This item is submitted by Deputy City Manager Mario Paniagua and the Aviation Department.