REPORT TO THE CITY COUNCIL FROM: HENRY THOMPSON, Director of Aviation Airports Department THROUGH: MELISSA GARZA-PERRY, Airports Properties Manager Airports Department BY: MARCOS AYALA, Airports Property Specialist II Airports Department SUBJECT ..Title Approve a one-year Peer-to-Peer Vehicle Sharing Ground Transportation Permit with Turo Inc. Estimated revenue generated by this Permit is $80,000 per year. (Council District 4) ..Body RECOMMENDATION Staff recommends that the City Council approve and authorize the Director of Aviation to execute a one-year Peer-to-Peer Vehicle Sharing Ground Transportation Permit (Permit) to allow Turo Inc., (Turo) to operate at Fresno Yosemite International Airport (FAT). EXECUTIVE SUMMARY Turo is a personal vehicle sharing company that provides a platform for vehicle owners to offer their vehicles for use to members of the public. AB 893 requires that personal vehicle sharing companies, such as Turo, obtain written authorization from the airports they want to operate in. This permit will allow Turo to use FAT as a pick up and drop off location. BACKGROUND Vehicle owners can list their vehicle for others to use on Turo. Members of the public wanting to use a shared vehicle can select the dates they want to use the vehicle, the location they want to pick up and drop off the vehicle, and whether they want to exchange the vehicle in-person with the owner, or pick it up at a parking lot. In 2023, the California legislature passed AB 893 which required Turo to obtain permission from airports in order to use airport facilities as pick up and drop off locations. The legislation also allows airports to set forth the same or reasonably similar standards, regulations, procedures, fees, and access requirements that apply to rental car companies operating at airports to Turo. The Permit has a term of one-year with one one-year option to extend the term of the Permit at the City's discretion. Turo will be allowed to use the majority of airport parking lots (garage, main surface lot, and credit card only daily lot) for pick-ups and drop offs, and three spaces on the fourth floor of the parking garage will be designated for in-person exchanges. Turo will enhance the customer experience by being another addition to the various ground transportation modes available to passengers departing or arriving at FAT. The Airports Department will receive 10% of Turo's monthly gross revenues from transactions generated at the airport. Based on peer airport markets, Airports is expected to receive $80,000 in the first year of the Permit. The City Attorney's Office has reviewed and approved the Permit as to form. Risk Management has reviewed and approved the agreement's insurance requirements. ENVIRONMENTAL FINDINGS This Permit is not a "project" for the purpose CEQA pursuant to CEQA Guidelines Section 15378. FISCAL IMPACT There is no impact to the General Fund or the ratepayers of the City of Fresno from this item. All revenues generated by this Permit will be deposited into the Airports Enterprise Fund and will contribute to the operation and maintenance of FAT. Attachment: Peer-to-Peer Vehicle Sharing Ground Transportation Permit