8a Presentation On Demand Transportation
Item No. 8a_supp Meeting Date: May 28, 2019 Sea-Tac Airport On-Demand Contract Alternatives Port of Seattle Commission Briefing May 28, 2019 1 Presentation Outline Schedule Guiding Principles and GTAP Policy Evaluation of Alternatives Matrix Outreach and Feedback Recommendation Next Steps Outline 2 Schedule September 25, 2018: Commission briefing on ground transportation framework and GTAP study (COMPLETED) October 2, 2018: Aviation Committee briefing regarding on-demand options (COMPLETED) October 25, 2018: Stakeholder outreach sessions at Sea-Tac Airport (COMPLETED) December 2018: Commission 2-2-1's regarding on-demand service options (COMPLETED) February 15 and 28, 2019: 2nd stakeholder outreach sessions at Sea-Tac Airport (COMPLETED) February and March 2019: Follow-up Commission 2-2-1's (COMPLETED) March 26, 2019: Commission authorization for execution of curb management contract after competitive procurement (COMPLETED) May 28, 2019: Public Commission briefing and motion regarding on-demand service options September 30, 2019: ESFH contract expires Coordinated schedule to move forward with multiple initiatives 3 Ground Transportation Framework Guiding Principles Goals Strategies and Tactics SAMP e.g. roadway relocation, Reduce 50% scope 3 Widen Arrivals Approach environmental reduction impact 15 minutes tower GTAP e.g. first/last mile, access Reduce roadway to curb fees, express bus congestion 30% private vehicle Support customer Operational e.g. rematch, TNCs on pick-up/drop-off choice Arrivals, garage utilization Social Equity Social equity Financial Contracts e.g. e-KPIs, driver income, Generate revenue sustainability Taxi, TNC, guaranteed min. wait time for sustainable other GT airport Port policies provide guidance in all categories 4 4 Policy Evaluation Matrix Customer Environmental Living Wage Revenue Key: Experience/Choice Effects Jobs/Equity Generation = Positive Impact Alternative 1 = Neutral / Open System Unknown Alternative 2a = Negative Capped Exclusive Impact Metered or Flat Rate Alternative 2b Capped- Exclusive Metered and Flat Rate Alternative 3 Capped- Hybrid Overall performance, but further refinement of options is needed 5 Further Refinement: Stakeholder Outreach Sessions Outreach conducted in support of earlier GT work in 2015 and 2017 Three facilitated presentations held October 25, 2018 Three additional facilitated sessions on February 15 (two) and February 28, 2019 Representation included multiple owner-operators, drivers, TNCs, dispatch companies, Teamsters representatives Stakeholder feedback from October 25, February 15 and 28 6 Further Refinement: Outreach Feedback Job Security: Port issues permits directly to current owners/operators Lottery system for any openings that occur Living Wages: Limit per-trip fees to cost recovery, including curb management Weekly fees paid directly to the Port Manage fleet size every 2 years or less based on customer demand Feedback summary 7 Further Refinement: Outreach Feedback - continued Driver Voice: Port establishes Labor Harmony Agreement Worker-led non-profit organization of drivers: o Establishes process for adjudication of disputes o Process for input in day-to-day operations o Facilitates driver training and education Environmental input: Port incentivizes electric vehicles through 1) low cost loans, 2) lower fees, 3) permit extensions for electric vehicle owners Feedback summary 8 Recommendation - Initiate Two-year Pilot Program 10/1/19 Retain current fleet of 405 vehicles Port directly issues non-transferable permits to every vehicle/owner combination Two-year pilot term (through 9/30/2021) Allow owners to associate with any dispatch company and any driver Set a per-trip fee of $6/pick-up based on Port's costs Port contracts separately with curb management company Quarterly engagement with owners and drivers Contract recommendation 9 Next Steps May June 2019: Finalize operation details, technology and owner permit for new services Initiate agreement renewal discussions with TNCs Initiate procurement for curbside management services, with costs paid by Port July September 2019: Curb management provider selection and negotiation Transition period for new on-demand service Negotiate TNC agreement provisions September 30, 2019: Current agreement with ESFH expires October 1, 2019: New on-demand service commences December 2019: New TNC agreement in place Steps to transition in late 2019 10 Alternative 1 - Open System Key Features Airport issues access permits to all licensed providers Similar to Boston, San Francisco, Houston, Portland, Minneapolis and others Pros Access is provided without a pre-determined supply restriction Cons Results in inconsistent customer service Increased congestion Increased greenhouse gas emissions Potentially lower average driver take-home income Difficult to enforce Open taxi system allows for more access, but at the cost of other policy priorities 11 Alternative 2a - Capped/Metered or Flat Rate Contract Key Features Port's former contracts with STITA and Yellow followed this model (with metered operator) Single type of provider (meter) and 1-3 different companies (Port has had one provider) Airports with this system include Denver, Dulles, Phoenix and others Pros Improved customer service and Port's ability to impose requirements Potentially higher driver income for owners/operators in fleet Ability to adjust fleet to customer demand Competitive and transparent process Cons No on-demand access for other operators Competitive process and capped system creates winners and losers Allows for more Port control, but limits access to one type and one (or more) company 12 Alternative 2b Capped/Metered and Flat Rate Contract Key Features Two types of providers (metered and flat rate) and typically 1-3 different companies Similar to closed systems in Denver, Dulles, and Phoenix Pros Airport maintains ability to impose requirements and standards Potentially higher driver income for owners/operators in fleet Ability to adjust fleet to customer demand Competitive and transparent selection process Cons Potential increase in customer confusion with two separate types of providers Competitive process and capped system creates winners and losers Allows for more Port control, has both types of providers 13 Alternative 3 Capped Hybrid Contract Key Features Similar to capped contract with managed fleet size, but owners are allowed to affiliate with any taxi association Airport hires independent 3rd party to manage fleet and curb operations Unique model - no other known airports utilize this model Pros Owners can choose their preferred taxi association Potentially higher driver income for owners/operators in fleet Ability to adjust fleet to customer demand Cons 3rd party management expense may affect Port income Airport's ability to enforce requirements is reduced due to multiple taxi associations participating in fleet Owners are allowed to freely associate, but Airport loses some control 14
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