Agenda Item   



                                                                                                                        ASR Control  19-001225




legal entity taking action:

Board of Supervisors

board of supervisors district(s):


SUBMITTING Agency/Department:

John Wayne Airport   (Approved)

Department contact person(s):

Barry A. Rondinella (949) 252-5183 



Dave Pfeiffer (949) 252-5291



Subject:  Approve First Amendment to the Taxicab Operating Agreement


      ceo CONCUR

County Counsel Review

Clerk of the Board

Pending Review

Approved Agreement to Form




3 Votes Board Majority




    Budgeted: Yes

Current Year Cost: N/A

Annual Cost: N/A




    Staffing Impact:


# of Positions:

Sole Source: No

    Current Fiscal Year Revenue: See Financial Impact Section

  Funding Source: Airport Operating Fund 280:100%

County Audit in last 3 years: No



    Prior Board Action: 12/13/2016 #41, 08/09/2016 #6, 03/03/2015 #32




Approve and execute First Amendment to the Taxicab Operating Agreement with John Wayne Airport Yellow Cab to reduce the size of the Operating Area effective upon Board of Supervisors' approval.







Approval and execution of the First Amendment to the Taxicab Operating Agreement with John Wayne Airport Yellow Cab will accommodate the changing needs of John Wayne Airport and maintain a superior guest experience.






On March 3, 2015, the Board of Supervisors (Board) approved a proposal to allow Transportation Network Companies (TNC) to operate at John Wayne Airport (JWA).  Members of the Board commented on the changing nature of the ground transportation industry and expressed a desire to ensure a competitive marketplace for JWA guests and a “level playing field” for service providers. 


On August 9, 2016, the Board authorized JWA to solicit bids for taxicab services at JWA. The invitation for bid (IFB) required that the Operator have a minimum of five years’ experience, possess business and vehicle permits issued by the Orange County Taxi Administration Program, a minimum of 85 vehicles not more than four years old and the vehicles complied with all South Coast Air Quality Management District requirements.  The IFB provided that the Operator pay: (i) a fee for each trip conducted by the Operator (Trip Fee); and (ii) a monthly fee for the exclusive use of defined operating areas (Use Fee) based upon square footage. The fee structure reflected direction from the Board to establish a fair and comparable structure that would provide equitability among the taxicab provider, authorized TNCs and other ground transportation providers. 


On August 15, 2016, the IFB was released on the County's online bidding system, BidSync. On September 26, 2016, one bid was received from the incumbent operator, JWA Yellow Cab (Yellow Cab), and was determined to be responsive to the IFB. 


On December 13, 2016, the Board approved the award of an agreement to Yellow Cab, a joint venture of Yellow Cab of Greater Orange County and Cabco Yellow, Inc., to operate taxicab services at JWA.  The Taxicab Operating Agreement commenced on January 1, 2017, has a five-year term that will expire on December 31, 2021, and is renewable for two additional one-year terms.


Current Contract Revenue:


Trip Fees to Airport:

$2.25 per trip on the lower roadway

2017 Number of trips 246,145 = $553,826

2018 Number of trips 212,381 = $477,857

2019 Number of trips 147,069 = $330,905 (10 months)


Use Fees to Airport:

2017 $5.47 per square foot, $243,481 annually

2018 $5.59 per square foot, $248,822 annually

2019 $5.94 per square foot, $220,334 (10 months)


Proposed Operational Reductions:


To accommodate the changing needs of JWA and address the impact of TNCs on taxi operations, JWA is seeking Board approval to make the following amendments to the Taxicab Operating Agreement:



To address the decline in taxi demand, Yellow Cab provided JWA a letter requesting to reduce the number of required cabs from 85 to 65, and eliminate the assistant starter at both the ground transportation center and Terminal C (Attachment D). The starter schedule will be limited to the hours of 7:00 a.m. to 11:00 p.m. The taxi hold lot attendant’s hours will be limited to the same hours. The changes were requested for financial sustainability.



The current taxicab operating area totals 44,512 square feet and is made up of four spaces:


     Taxi hold lot = 34,065 square feet

     A2 Parking Curbside = 3,175 square feet

     Ground Transportation Center = 5,149 square feet

     Terminal C Curbside = 2,123 square feet


To accommodate Yellow Cab's request, JWA recommends reducing the size of the Operating Area to the following:


     Reduce the Taxi hold lot by 14,568 square feet to 19,497 square feet

     Eliminate the A2 Parking Curbside = 0 square feet


No change will be made to the Ground Transportation Center or the Terminal C Curbside.


The reduced Operating Area will be 26,769 square feet and consist of three spaces.  See Attachment B for the location of the Operating Areas. The present allocation of cabs and square footage are no longer financially viable for Yellow Cab. These reductions will not diminish service levels for airport guests.



To meet customers' needs and provide an enlarged cell phone waiting area, JWA will repurpose the former taxi hold space to expand the cell phone waiting area. The shortage of such space in the cell phone waiting area has become one of the most common JWA guest complaints in recent months; this Amendment will help provide additional space and ensure JWA continues to provide a superior guest experience.

The agreement does not currently include subcontractors or pass through to other providers. Please see Attachment C for the Contract Summary Form.


Compliance with CEQA:  The proposed project was previously determined to be Categorically Exempt  from the California Environmental Quality Act pursuant to Section 15301 (Class 1) of the CEQA Guidelines that provides for the exemption of a new taxi operating agreement to replace an existing operating agreement, on March 03, 2015, when it was originally approved.






Revenue from this agreement is included in the FY 2019-20 Budget for Airport Operating Fund 280 and will be included in the budgeting process for future years.


The annual use fee revenue for the reduced taxi hold area will be $159,008, representing a 40 percent or $105,393 reduction to the current JWA annual use fee revenue of $264,401. This reduction in revenue will not have a significant impact on airport operations.


The agreement may be terminated by either party for any reason upon 90 days' written notice.










Attachment A - Taxicab Operating Agreement First Amendment - PM 1121-0380-0007
Attachment B - Reduced Operating Areas
Attachment C - Contract Summary Form
Attachment D - Letter from Yellow Cab