Minutes Exhibit D
Port Commission Regular
Meeting of January 12, 2016

Statement on Port Audit of PSD (Yellow Cab! Exclusive Airport Contract
Chris Van Dyk, General Manager, Q, (Quality Ground
Transportation), 206-965-0086, cvandyk5@msn.com
".....P$D-reported Concession Fees were not complete or accurate..."
So states the Port of Seattle's internal audit, released
Tuesday, 01/05/2016, about the Port's exclusive
$18.3 miilion concession contract with Yeliow Cab, for outbound taxi services at Sea-Tac Internationai Airport.
The report will be presented by Port internal auditors at the Commission's 01/06/2016 meeting of its Audit
Committee. According to the report, Yellow Cab significantly underpaid the Port its 13% of gross passenger
revenue concession fee.

"The data indicate Yellow Cab underpaid the Port
over $4 million, some 20% of the value of the contract,"
said Chris Van Dyk, who first identied accounting anomalies that
triggered the audit by the Port, "While this is
not an audit result that anybody wants to hear,
we applaud the Port's undertaking and release of this audit. it
takes a capable organization to publicly criticize itself. So
we are confident, going forward, that the Port is making
structural changes, to keep this situation from recurring."  Van Dyk is General Manager of Quality Ground
Transportation Management LLC, a flat-rate for~hire and taxi dispatch management company which seeks to
reopen the Yellow Cab airport outbound taxi contract to competition.

"Given the sole source nature of the Yellow Cab outbound taxi services
contract, trust and reliance on
the contractor was at its heart," said Van Dyk, "Unfortunately, this audit
fails to hold the contractor sufficiently
accountablefor the incomplete, inaccurate reporting. Change at Sea-Tac is
not only calledfor, it is mandatory. "

Added Van Dyk, "i am the consultant to Yellow Cab referred to
on P. 5 of the report. The inaccurate data
were generated by dispatch operations at Yellow Cab, and presented to Yellow Cab
management, which included
me for a portion of the contract term, and to Port airport
management. My focus at that time, as with Port staff,
was on customer serviceso I take my share of responsibility for lack of critical oversight, at the time these
reports were issued to the Port-~-that said, there is no excuse whatsoever; for what is noted
at P. .9 of the Audit:

'....a sudden increase in local trips from an average of 8% to 18% with the corresponding
decrease in Seattle trips. The trend suggests that Gross Receipts
were shifted downward by
decreasing trips in a higher average fare zone (i.e., Seattle SSS/trip) and concurrently increasing
trips in a lower average fare zone (i.e., tocal $9/trip). The shift resulted in
an overall decrease in
Gross Receipts reported to the Port....' (Audit, P. 9)"

Since Yellow Cab is required to pay the Port 13% of
gross passenger receipts, the shift reduces the money
Yellow Cab owes the Port. "This is the anomaly that i discovered, in August of 2015, and brought to the Port's
attention," said Van Dyk. "Port staff had recommended an extension of the Yellow Cab contract, without
competitive bid, in May of 2015. l was asked to look closely at performance under that contract
as my clients-
competitors to Yeilow Cab--thought they could do better." As
a baseline, Van Dyk used promised performance in
the Yellow Cab reSponse to the Port 2009 RFP. "I had written that response, for Yellow," said Van Dyk. "Inquiry
into deadheading reduction caused
me to look at the revenue, and to notice the data were suspect."

The Audit notes that airport management is working to prevent the problem from recurring.
"The Port
Commission itself has already begun that
process, by way of reintroducing competition into the airport taxicab
marketplace," said Van Dyk. "The Port Commission has told staff that they want open, fair competition, that
Commissioners want an open public bid
on the contract. The simple reason is that the public interest is better
served, as this report shows, with the pressure of competition
on vendors at the Port; at the very least, with that
pressure, the Port and the marketplace and the public, will be honestly served, by all of us."
AAAA

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June 2012
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