Title
Amend Phoenix City Code Chapter 4 Related to Commercial Ground Transportation Trip Fees (Ordinance G-6650)
Description
Request to amend Phoenix City Code Chapter 4 to increase existing and set new commercial ground transportation trip fees, to create a process to annually adjust trip fees, and to make conforming, clarifying, and renumbering changes as necessary.
Report
Summary
Background
City Council approved changes to commercial ground transportation trip fees on Oct. 16, 2019. It was determined that certain statutory notice requirements had not been met. This item satisfies the notice requirements and finalizes the commerical ground transportation trip fee changes Council approved on Oct. 16, 2019. As the statute (A.R.S. section 9-499.15) prescribes, this item was properly posted on the City's website on Oct. 18, 2019 and on Nov. 26, 2019.
Commercial Trip Fees and Annual Increases
City Code requires that, by Jan. 1, 2020, staff conduct a study of peer airports' commercial ground transportation (GT) trip fees. City Code also authorizes GT stakeholders to participate in the selection of the consultant for this review. Beginning fall 2018, staff and GT stakeholders scoped the study and investigated peer airport trip fees. Through summer 2019, staff conducted monthly meetings with GT stakeholders, totaling over 15 large and small group GT stakeholder meetings held.
The completed study reviewed peer airports' GT revenue collection with Phoenix Sky Harbor International Airports' (PHX) revenue. PHX consistently collects less GT revenue compared to its peers. The proposal seeks to increase trip fees for permitted GT providers, establish drop-off trip fees for providers, and provide for predictable, annual trip-fee rate increases.
These fees are calculated to recover PHX's costs for the GT providers' proportionate share of existing and future ground-transportation infrastructure, improvements, and operation/maintenance of this infrastructure, including maintenance of the PHX Sky Train, and to comply with federal law requiring PHX to achieve and maintain economic self-sufficiency.
Effective Date
If passed, the ordinance - including the new and increased trip fees it establishes - will become effective on Feb. 1, 2020.
Attachments
- Attachment A - Summary Sheet
- Attachment B - Draft Ordinance
Financial Impact
The revenue will cover the proporational share of the ground transportation expenses.
Concurrence/Previous Council Action
The Transportation, Infrastructure and Innovation Subcommittee recommended approval of this item on Oct. 2, 2019 by a 4-0 vote. The full City Council approved this item on Oct. 16, 2019 by a 7-2 vote.
Public Outreach
Extensive stakeholder outreach was conducted during the peer-review of commercial ground transportation fees as well as stakeholder review of the proposed City Code amendment, which culminated in the previous Council action approving the changes. Additional public outreach involving transportation network companies has also occurred since then.
Location
Phoenix Sky Harbor International Airport, 3400 E. Sky Harbor Blvd.
Council District: 8
Department
Responsible Department
This item is submitted by Assistant City Manager Deanna Jonovich and the Aviation Department.