Newark Mayor Ras J. Baraka and Uber New Jersey General Manager Ana Mahoney recently announced details of an agreement reached between the city and key members of the taxi/limo industry.

The agreement, the first with any major city in the state, calls for the following:

• Uber drivers may not stand in areas set aside for taxi waiting and will wait at an off-airport dispatch location to receive calls through the Uber app.

• Uber drivers are prohibited from staying at Newark terminals to receive dispatches.

• The City of Newark can receive a $3 million up-front payment as part of the previously announced $10 million permit fee to be paid by Uber over 10 years specifically for operating at Newark Liberty International Airport.

• Even if a statewide law is passed regulating Uber, the company will remain obligated to pay the $10 million.

• Newark may audit Uber’s compliance with this agreement annually.

• Uber will provide $1.5 million of commercial liability insurance coverage for all drivers operating on the platform.

• Uber will conduct background checks on all drivers through a nationally-accredited, third-party provider. These checks will examine county, state and federal records, as well as motor vehicle records, sex offender registries and terror watch lists.

• Uber will enforce a zero tolerance policy for drug and alcohol use by drivers using the Uber app.

“My goals have been to protect the safety of Uber riders, to require Uber to pay its fair share including fees and permits under the same kind of regulations as other businesses in Newark, and to create a level playing field for Uber and the taxi and limousine industry,” said Baraka. “The agreement is fair to all and allows Uber to become a good corporate citizen of Newark. This agreement is good for economic development and job growth in Newark. Uber is an important addition to our city’s rapidly expanding technology sector.”

Mahoney said the agreement is a milestone for the rideshare industry.

“Uber is proud to be the first ridesharing company to reach a compromise with the city of Newark that allows our driver-partners and riders to continue to use our app. The agreement framework released by Mayor Baraka is a model for the state legislature as it considers statewide ridesharing legislation,” she said. “We thank Mayor Baraka for his leadership in making Newark the first city in New Jersey to embrace comprehensive and fair ridesharing regulations that encourage tech innovation and economic opportunity.”

Mayor Baraka said the deal will provide revenue to the city, protect the city’s taxi industry and enhance the safety of riders.

The New York-New Jersey Port Authority has threatened to scuttle the deal, claiming the city does not have jurisdiction over airport contracts.

New Jersey and New York's state laws give the Port Authority sole discretion in "the operation of air terminals," the New Jersey statute says.

The nearby Elizabeth City Council is also weighing in, pushing forward an ordinance that would limit Uber’s ability to operate in the city.

The Elizabeth City Council tabled the matter after receiving a request from the Port

Authority to refrain from voting on the ordinance. The Port Authority owns Terminal A of the airport and therefore holds exclusive jurisdiction over its operations, according to Port Authority lawyers.

Port Authority attorney Phillip Kwon said the city and the Port Authority need further discussions.

"Rather than passing an ordinance that contravenes the language of the governing bi-state legislation, further meetings between the Port Authority and city officials to discuss this matter would be advisable," Kwon wrote.

According to state laws, the Port Authority has sole discretion in "the operation of air terminals," the New Jersey statute says.

Abbas Abbas, president of the Newark Cab Association, said local cab companies have already lost 60-70 percent of their business to Uber and its competitors.