COMMISSION 
BACKGROUND MEMO                         Item No.       8a_attach 
Date of Meeting        May 28, 2019 
DATE:     April 22, 2019 
TO:        Stephen P. Metruck, Executive Director 
FROM:    Michael Ehl, Director, Aviation Operations 
Jeff Wolf, Senior Manager, Aviation Business Development 
SUBJECT:  Airport On-Demand Transportation Contract Options Briefing 
EXECUTIVE SUMMARY 
The Port of Seattle is committed to providing quality customer service, reducing congestion,
and minimizing environmental impacts of vehicles at Seattle-Tacoma International Airport (Sea-
Tac or Airport).  One important type of transportation option for customers at Sea-Tac is
referred  to  as  on-demand  services,  which  accommodates  deplaned  passengers  seeking
transportation to their destination, but who have not pre-arranged (reserved) prior to arrival at
Sea-Tac. Customers are accommodated simply by walking up to a vehicle for transportation. 
The purpose of this briefing is to review with Commissioners  options for on-demand
transportation services at Sea-Tac and to present the next steps to finalize and implement a
new pilot on-demand taxi/flat-rate for-hire system. The briefing will include a basic review of
various on-demand contracting options, guiding principles as part of the Port's Ground
Transportation  Access  Plan  (GTAP),  review  of  recent  stakeholder  outreach  information
pertaining to on-demand services at Sea-Tac, and recommend the next on-demand system
beginning October 1, 2019. 
CURRENT CONTRACT AND OUTREACH EFFORTS 
The Port currently uses an exclusive service, concession contract for on-demand taxi/flat-rate
for-hire transportation, a model used since 1989 at Sea-Tac. The current contract is with
Eastside For Hire and is in the final year of a three-year contract (commenced on October 1,
2016, and expires on September 30, 2019) but does include two, one-year extension options. 
In anticipation of the expiration on September 30, 2019, this briefing will highlight the planning
process  for  on-demand  transportation  accommodation  at  Sea-Tac  and  to  inform  the
Commission of the next steps. 
Port staff briefed the Commission on the Ground Transportation Access Plan (GTAP) on
September 25, 2018, which included review of guiding principles and ten key transportation
strategies to improve customer access to and from Sea-Tac. The intent of the guiding principles
is to establish the framework for staff to develop new ground-transportation-related contracts,
including the on-demand taxi/flat-rate for-hire system, which is the topic of this briefing. 

Template revised April 12, 2018.

COMMISSION BACKGROUND Item No. 8a                                  Page 2 of 4 
Meeting Date: May 28, 2019 

During  December  2018  and  again  in  the  first  quarter  of  2019,  Port  staff  met  with
Commissioners individually and reviewed options for on-demand taxi/flat-rate for-hire service
at the Airport.  Included in those discussions was an outline of a proposed next on-demand
system, which will be described on May 28. 
Staff held multiple outreach sessions with industry stakeholders on three separate dates to
solicit input regarding the Airport's future offering of on-demandservices.  The first outreach
sessions occurred on October 25, 2018, and allowed staff to review industry best practices and
a variety of on-demand service options available. Feedback received from this session helped
guide the structure of the proposed on-demand system. Additional outreach sessions were
held on February 15 and February 28, 2019 for staff to review the proposed on-demand system
with stakeholders for additional comments and feedback in preparation for the May 28 briefing
to the Commission. 
ALTERNATIVES CONSIDERED 
Alternative 1  Open On-Demand Taxi/Flat-Rate For-Hire Services: The Port would allow all dual
licensed (King County and City of Seattle) taxi and flat-rate for-hire owners (more than 600)
access to on-demand services at the Airport. 
Pros: 
(1) All dual licensed operators would have access and the ability to earn income from the
on-demand system at the Airport. 
(2) All local dispatch associations could have representation at the Airport. 
Cons: 
(1) Open systems typically reduce customer service levels. 
(2) With larger fleet, individual owners earn less income. 
(3) Typically leads to increased congestion and greenhouse gas emissions. 
This is not the recommended alternative. 
Alternative  2   Capped  System  with  Exclusive  Dispatch  Company:   The  Port  would
competitively bid a contract for a single (or up to three) dispatch company to provide a
maximum number of vehicles for on-demand service at the Airport. 
Pros: 
(1) Typically leads to increased customer service levels due to conformity of fleet and single
contract. 
(2) Increased ability for owners to generate income with capped fleet size. 
(3) Ability to manage the fleet size (affecting income) based on customer demand. 

Template revised September 22, 2016.

COMMISSION BACKGROUND Item No. 8a                                  Page 3 of 4 
Meeting Date: May 28, 2019 

Cons: 
(1) Competitive market-driven process creates winners and losers. 
(2) Not all dual licensed operators have access to on-demand services. 
(3) Owners in the fleet are required to associate with selected dispatch company(ies). 
This is not the recommended alternative. 
Alternative 3  Pilot Hybrid System: 
The taxi vehicles currently being used under the existing contract with ESFH for
on-demand services will be issued a permit during the pilot program  and
retained in the pilot program through September 30, 2021. This  vehicle pool is
now capped at 405 vehicles. 
A separate permit for each current vehicle/owner combination will be issued by
the Port of Seattle and will not be transferable. 
Owners may associate with any dispatch company and any driver. 
The Port will collect an all-inclusive, per-trip fee of $6/trip. 
The Port will contract separately for curb management services that include 
passenger loading assistance, holding lot and queue management, and any other
related services staff determine are necessary to implement the pilot project,
including potentially providing oversight of adherence to vehicle and operating
rules and requirements by owners and/or drivers. 
Quarterly outreach to owners and drivers for feedback and input on the pilot
program. 
Pros: 
(1) Increased ability for owners to generate income with capped fleet size. 
(2) Owners are able to associate with any dispatch company of their choice. 
(3) Increased opportunity for owners and drivers to provide feedback to the Port. 
Cons: 
(1) Not all dual licensed operators have access to on-demand services. 
(2) Increased curb management to oversee hybrid system will increase costs to the Port. 
(3) Reduced ability to enforce customer service standards due to movement from single
responsible party (dispatch company) to 405 individually responsible owners. 
This is the recommended alternative. 
Based on direction from the Commission, Port staff intends to finalize and implement the new
on-demand taxi/flat-rate for-hire system in anticipation of the current contract expiration date
of September 30, 2019. 

Template revised September 22, 2016.

COMMISSION BACKGROUND Item No. 8a                                  Page 4 of 4 
Meeting Date: May 28, 2019 
ATTACHMENTS TO THIS BRIEFING 
(1)   Presentation slides 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
March 26, 2019  the Port of Seattle Commission authorized the Executive Director to execute
contract documents for curb management associated with On-Demand Taxi/Flat-Rate For-
Hire services at Seattle-Tacoma International Airport for a total cost of $12,500,000 for a
term of two years with three, one-year extension options. 
September 25, 2018  Commission briefing on the Ground Transportation Access Plan (GTAP),
which  included  guiding  principles  for  ground  transportation  as  well  as  ten  key
transportation strategies. 













Template revised September 22, 2016.