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Agenda Item 24.
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| City Council Meeting |
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| Subject: |
| Execute Cooperative Agreement for the Administration of the Orange County Taxi Administration Program and Adopt Resolution to Revise Program Regulations |
| RECOMMENDATION |
A. Authorize City Manager to execute Cooperative Agreement No. C-8-2015 with Orange County Transportation Authority for the administration of the Orange County Taxi Administration Program, effective January 1, 2019 through December 31, 2020
B. Approve resolution to adopt new Orange County Taxi Administration Program regulations into City Municipal Code |
| BACKGROUND/DISCUSSION |
On April 15, 1997, the City of Brea (City) entered into an agreement with the Orange County Transportation Authority (OCTA) to participate in the Orange County Taxi Administration Program (OCTAP). This program was designed to consolidate the licensing, application, and administrative functions to assist the cities and the County of Orange (member agencies) in meeting their requirements set forth in Government Code Section 53075.5 and Vehicle Code Section 21100, et seq.
Since its inception, OCTAP was designed to be funded entirely through permit and license fees collected from taxi operators and drivers. With the arrival of transportation network companies (TNCs), such as Uber, Lyft, and others, the marketplace has greatly reduced the number of taxi permits in the county. As a result, the reduced revenues have created a financially unsustainable condition for OCTAP, causing OCTA to alert member agencies of their withdrawal from administering the program effective June 2017. However, prior to OCTA’S withdrawal, the Orange County City Managers Association (OCCMA) recommended that member agencies cover the shortfall in funding for OCTAP administration. Subsequently, all OCTAP member agencies have been invoiced on a population-based cost sharing formula to cover this funding gap and continue the operation of OCTAP through 2018.
With Governor Brown’s signing of taxi regulation legislation AB 1069 (Chapter 753, Statutes of 2017) in October 2017, OCTAP, as it currently exists, cannot continue past 2018. Following further discussions between OCTA, OCCMA, and OCTAP stakeholders, all OCTAP member agencies unanimously agreed to request that OCTA continue to administer OCTAP beginning January 1, 2019, for an initial term of two years (term may be extended upon agreement among the parties). In addition, estimated costs for all participating agencies were also agreed upon using the same population-based cost sharing model, provided in Attachment A. OCTAP revenue and expenditures are shown in Attachment B.
OCTA staff has prepared a cooperative agreement (shown in Attachment C) and is requesting its execution prior to the start of the new administration period commencing January 1, 2019. Upon approval, OCCMA and the City will work with OCTA to take steps necessary to continue to administer OCTAP. In the coming months, OCTA will work with member agencies and the taxi industry on what a newly structured OCTAP will look like, including attempting to level the playing field with TNCs and reduce outside costs to support OCTAP.
Additionally, on November 4, 1997, the City adopted OCTAP regulations by Resolution No. 97-79 and later updated them on December 20, 2011 by Resolution No. 2011-102. These regulations apply to the operation and administration of taxicabs, and OCTA has provided the City with new regulations to adopt. Approval of the most current set of regulations will bring the City Code up-to-date with OCTAP's existing regulations. The resolution to adopt the OCTAP regulations is shown in Attachment D.
Staff seeks City Council approval for the City Manager to execute Cooperative Agreement No. C-8-2015 with OCTA for a term of two years and adoption of the resolution to revise the City Municipal Code to reflect new OCTAP regulations. |
| FISCAL IMPACT/SUMMARY |
Due to the prevalence of TNCs and the consequent decrease in revenue from reduced permit issuance, OCTAP costs to member agencies have increased. These increased estimated costs result in a minimal fiscal impact to the General Fund.
Based on its population, Brea has a 1.34% funding share of the total cost for OCTA to administer the OCTAP program. Currently, $2,200.00 is annually budgeted towards OCTAP from the General Fund. However, as shown in Attachment A, estimated costs to the City have increased to the following:
| January – June 2019 (6-month period) |
$1,316.52 |
| FY 2019 – 2020 (full year) |
$3,169.21 |
| July – December 2020 (6-month period) |
$2,355.81 |
Historically, during the 6-month period from January – June, OCTAP receives more revenue from permit issuance and significantly less revenue from permit issuance during the 6-month period from July – December. Therefore, increased costs to the City from July – December are required to offset OCTAP program costs from reduced revenue collection during that time.
OCTAP allows a large group of cities to form a joint partnership and spread program costs among the member agencies. If Brea does not agree to join OCTAP, it would result in increased indirect costs for City staff members to learn and be dedicated to the licensing, applications, and administrative functions to perform an in-house taxi administration program. Therefore, seeing OCTAP as a fiscally viable opportunity, it is staff’s recommendation for Brea to participate in OCTAP with the program’s other member agencies.
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| RESPECTFULLY SUBMITTED: |
William Gallardo, City Manager
Prepared by: Melissa Davis, Management Analyst I
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