PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA               Item No.      6b 
ACTION ITEM 
Date of Meeting     January 12, 2016 
DATE:    January 5, 2016 
TO:      Ted Fick, Chief Executive Officer 
FROM:   Michael Ehl, Director Aviation Operations 
SUBJECT:  Ground Transportation Proposal to Address On-Demand Operators and
Transportation Network Companies (TNCs) 
ACTION REQUESTED 
Request Commission authorization for the Chief Executive Officer to execute a contract for ondemand
metered and flat-rate for-hire transportation services at Seattle-Tacoma International
Airport. 
SYNOPSIS 
On May 26, 2015, the Port of Seattle Commission directed Aviation Division staff to conduct a
comprehensive analysis of ground transportation operations at Seattle-Tacoma International
Airport (Airport). This request was driven by the rapidly evolving market conditions, changes in
consumer behavior, and the diversification of ground transportation modes occurring at airports
across the nation. Prior to the Commission's direction, staff had anticipated the release of a
Request for Proposal (RFP) for a successor contract for on-demand transportation services at the
Airport. That contract , held by Puget Sound Dispatch from November 1, 2010 to October 31,
2015, is now under contractual holdover pending the authorization requested in this memo. 
Based on the results of a Ground Transportation (GT) outreach initiative, the findings of a peer
airport review, and extensive ongoing discussions following the conclusion of those efforts, Port
staff recommends issuing an RFP for on-demand transportation service at the Airport that
includes on-demand metered and flat rate (Taxi and For Hire) services in a single contractual
agreement. This RFP will cre ate economic opportunity for on-demand operators and provide
additional on-demand options and continued high level of service for an increasingly discerning
traveling public. 
At this time, flat rate (for-hire) providers are constrained in operating at the Airport. The
proposed RFP would allow the for-hire providers to pick up and drop off passengers as do
traditional metered taxis at the Airport. Both services would pick up passengers on the third
floor of the parking garage. 
In addition, the established and growing public demand for the introduction of Transportation
Network Companies (TNC), such as Uber, Lyft and Wingz, into the Airport's pre-arranged
ground transportation system was reviewed during the six-month study period. Port staff has 

Template revised May 30, 2013.

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
January 5, 2016 
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initiated and is currently engaged in negotiations with several TNC entities. Implementation of
TNC operations will be determined by the willingness and ability of the operators to satisfy the
guidelines established by the Commission. 
Finally, to ensure transparency and fairness across the on-demand spectrum of operators, Airport
staff also intends to issue a RFP for on-demand limousine services during the first half of 2016 to
complete a coordinated process of soliciting open, competitive bids for all on-demand services at
Sea-Tac. 
Given the magnitude of Airport revenue generated from ground transportation providers, and the
Port's inherent obligationof fiscal stewardship, both the RFP and TNC operating agreements 
will include stringent terms that require specific methods for the reporting of operational activity,
and frequent auditing of financial reporting. Port staff has now received four responses to a
Request for Information (RFI) released on November 11, to understand the capabilities of
software that integrates tracking, enforcement, and appropriate revenue reporting to enable the
highest levels of transparency, accountability, and contract compliance.  Staff is currently
evaluating the responses and intends to proceed with a procurement in the near future to select a
technology for TNC tracking and reporting. The selected system as well as future technology
solutions may also provide tracking and reporting benefits to the entire ground transportation
system at the Airport. 
Today's request for authorization reflects the Commission's direction tocreate a level playing
field for ground transportation providers at the Airport wherever legally and practically possible, 
which will provide equitable allocation of access to the Airport that is desired by operators and
consumers alike. 
To this end, staff examined a wide range of options, from a completely open operating
environment where all licensed GT operators have access to the Airport, to various scenarios
incorporating traditional and hybrid contracting mechanisms. Ultimately, it was recognized that
use of a contractual mechanism is the only practical way to ensure that the objectives discussed 
by the Commission are realized. Among these objectives are: ensuring quality transportation
service for the travelling public; supplying capacity to meet the dynamic Airport operating
environment; minimizing environmental impacts; expanding economic opportunities for small
businesses; creating stable revenue to support Airport operations; and ensuring effective
management and accountability. 
To facilitate the implementation of the revised ground transportation business modelrequires 
several modifications to the third floor of the public parking garage and ancillary facilities.
Facility challenges must be resolved to accommodate the changes recommended in today's
request for authorization, as well as those driven by Sea-Tac's extraordinary growth and the
physical relocations of existing operations made necessary by planned and  future capital
improvement projects. The preliminary findings of a comprehensive facility analysis covering 
the third floor of the public parking garage, lower drive, and related vehicle staging areas was

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
January 5, 2016 
Page 3 of 8 

completed December 31, 2015. While the final report will not be complete until the first quarter
of 2016, the findings indicate sufficient capacity within the garage to accommodate a larger fleet
of on-demand metered and flat-rate for-hire vehicles and TNC vehicles, in addition to existing
ground transportation operators. Striping of both the 160th Street holding lot and third floor
operating area of the public parking garage has been completed in anticipation of the start of
these operations.  Similarly, work orders have been submitted for changes in wayfinding,
customer service, and informational signage. 
Today's requested actions are reflective of significant changes made to fundamentally transform
the on-demand ground transportation system at the Airport.  These changes are explicitly
intended to expand economic and small business opportunities, increase customer choice,
enhance consumer protection, strengthen our commitment to the environment, maintain an
important non-aeronautical revenue source, introduce technological  business intelligence
advancements, and demand a new level of financial accountability. 
BACKGROUND 
In 2009, following a 23-year exclusive contract with Seattle-Tacoma International Taxi
Association (STITA), the Port of Seattle competitively bid a contract for on-demand taxi service.
Puget Sound Dispatch, dba Yellow Cab, was the successful proposer and is now operating under a
five-year contract that began on November 1, 2010, and expired October 31, 2015.  The
agreement allows the concessionaire to remain in holdover status at the discretion of the Port. 
On-demand taxi activity was up nearly 10% in 2014 with more than 815,000 total trips from the
Airport and has shown nearly 13% growth in trips through the third quarter of 2015. 
At the time the RFP was issued in 2009, flat-rate for-hire operators were relatively limited in King
County. Since that time, flat-rate for-hire providers have grown significantly in number and have
demonstrated a customer following justifying their eligibility to compete when the Port issues an 
RFP for on-demand services. 
Amidst this already dynamic market for ground transportation services, in which growth in both
on-demand and pre-arranged services is occurring, three TNCs (Uber, Lyft and Wingz) have
requested access to Airport property for the pick-up of passengers. Transportation Network
Companies, which are currently authorized by King County and the City of Seattle under Chapter
46.72 of the Revised Code of Washington, provide transportation of passengers for compensation
by connecting drivers of personal vehicles to passengers requesting transportation exclusively
through use of mobile device application technology.  Airport staff has  been in regular
communication with potential TNC operators throughout 2015 and are now seeking to finalize a
TNC operating agreement. 
On May 26, 2015 the Port Commission provided guidance by which staff was to establish the
framework for determining the recommended business model for ground transportation
operations at Sea-Tac. This guidance was based on both a philosophy of establishing a level

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
January 5, 2016 
Page 4 of 8 

playing field whereby similar requirements are made of both on-demand and pre-arranged
ground transportation operators at the Airport as well as specific criteria to be used in making
today's recommendation for authorization. 
Over the last six months, Port staff has facilitated several work elements intended to inform the
revised structure of a strengthened and enhanced ground transportation system at the Airport.
That work included a comprehensive ground transportation outreach effort of more than 30
stakeholders -- conducted by Norton Arnold, an independent third-party facilitator -- to glean
perspectives on the optimal operating model for the Airport. Additionally, a formal study w as
contracted to Leigh Fisher, an established aviation consulting firm, to provide information on
best management practices at 15 peer airports. 
Overview of "Level Playing Field" Framework: 
Insurance coverage 
Green vehicle fleet and deadheading 
Access for the Disabled 
Consumer protection and customer feedback 
Operational accountability via Trade Dress and enhanced technological tracking 
Financial accountability via enhanced technological reporting 
Specific Criteria: 
Provide quality GT service for the travelling public: 
Passenger safety 
Minimal wait times 
Menu of transportation options 
Highest standards of vehicle maintenance and appearance 
Reasonable access fees for operators 
Customer service training for all drivers 
Provide adequate capacity to meet the dynamic Airport operating environment: 
Balanced diversity of ground transportation modes based on consumer behavior 
24/7 availability inclusive of times of inclement weather and extraordinary conditions 
Balanced facility utilization for benefit of customers, operators, staff 
Minimize environmental impact: 
100% green fleet 
Minimize deadheading and dwell times

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
January 5, 2016 
Page 5 of 8 

Expand economic opportunity and promote small business: 
Equitable methodology for access to operators 
Commitment to small business 
Revenue generation 
Support future Airport capital development needs: 
Manageability and Accountability: 
Fair and equitable enforcement 
Transparent reporting of financial and operational data 
Rigorous and regular auditing of all operations 
Incorporation of latest technologies to advance business intelligence 
PROJECT JUSTIFICATION AND DETAILS 
On-demand transportation service at the airport is a vital option for our customers. The service
ensures that travelers have access to a regulated, licensed, transportation provider 24 hours a day.
In addition, using an RFP to select an operator(s) provides all on-demand operators the
opportunity to compete for the contract and demonstrate their commitment to the framework and
criteria above. 
TNC operators offer customers an additional transportation choice enhanced via personal digital
device technology. This app-based pre-arranged service expands the bounds of our traditional
pre-arranged services for this group of transportation providers recently regulated under State
Legislation. 
Scope of Work 
The successful on-demand respondent will provide consistent, regulated service via both flat rate
and metered ground transportation offerings. The RFP will describe all applicable standards
relevant to the solicitation. 
Proposed Schedule 
January 12, 2016    Request for Commission authorization 
January 29, 2016    On-demand transportation RFP solicitation 
April 4, 2016       On-demand ground transportation contract award 
April 29, 2016      On-demand transportation awardee negotiations 
July 1, 2016       On-demand transportation provider service commencement 
FINANCIAL IMPLICATIONS 
The on-demand metered and flat rate contract is expected to benefit the Port of Seattle at more
than $20,000,000 over the course of five years.

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
January 5, 2016 
Page 6 of 8 

Estimated revenue for TNC operations is hard to estimate since it will be a new type of service to
the Airport. A rough revenue estimate is $1,000,000 to $2,000,000 per year. 
Budget Status and Source of Funds 
Both the on-demand metered/flat rate and the TNC contracts will produce non-aeronautical
revenue through a per-trip fee. 
STRATEGIES AND OBJECTIVES 
This contract supports the Century Agenda objectives: 
To advance this region as a leading tourism destination and business gateway. 
Use our influence as an institution to promote small business growth and workforce
development. 
Be the greenest and most energy efficient port in North America. 
This contract supports the Airport's strategy to operate a world class international airport by: 
Ensuring safe and secure operations. 
Anticipating and meeting the needs of our tenants, passengers, and the region's economy. 
Becoming one of the top customer service airports in North America. 
ALTERNATIVES AND IMPLICATIONS CONSIDERED 
On-Demand Transportation Services 
Alternative 1)  Do Nothing  Provisions in place to holdover contract indefinitely. This is not
the recommended alternative. 
Pros: 
Maintains current high level of service and revenues to the Port 
Cons: 
Adds risk to service quality as operator has indefinite contract term 
Limits economic opportunity for other on-demand stakeholders 
Doesn't accommodate customer demand for on-demand flat rate 
Alternative 2)  Implement an open system of unrestricted on-demand ground transportation
access. This is not the recommended alternative. 
Pros: 
Provides open access to all licensed on-demand metered and flat-rate for-hire operators.

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
January 5, 2016 
Page 7 of 8 

Cons: 
Frequently leads to oversupply. 
Loss of customer service standards for wait time, vehicle condition, driver training. 
Increased enforcement requirements and increased resources. 
Increased facility requirements to accommodate oversupply. 
Alternative 3)  Issue RFP for combined metered and flat-rate for-hire on-demand operator.
This is the recommended alternative. 
Pros: 
Provides consistency and compliance with Commission-established criteria for safety,
customer service, environmental impact, small business opportunities, balanced supply,
operator accountability, and revenue generation. 
Creates economic opportunity for both metered and flat-rate for-hire on-demand
operators via contractual terms that protect stakeholder interests. 
Provides additional on-demand options at the Airport. 
Cons: 
None identified 
Transportation Network Companies 
Alternative 1)  Do Nothing  TNCs are currently not allowed to operate pick-up service at the
Airport. This is not the recommended alternative. 
Pros: 
None identified 
Cons: 
Fails to address consumer demand for new mode of ground transportation. 
Restricts access to this type of emerging licensed and regulated business model 
Loss of additional revenue opportunity 
Perpetuates need for enforcement in controlling unauthorized access 

Alternative 2)  Implement Operating Agreements. This is the recommended alternative. 
Pros: 
Responds to customer demand 
Recognizes emerging licensed and regulated business model 
Provides new source of non-aeronautical revenue

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
January 5, 2016 
Page 8 of 8 

Cons: 
Facility challenges in attempting to accommodate unknown demand 
May reduce Port revenues relating to on-demand taxis. 
ATTACHMENTS TO THIS REQUEST 
PowerPoint presentation 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
December 8, 2015  Briefing on Introduction of Transportation Network Companies 
September 8, 2015   Briefing on Options for Structure of Airport Ground
Transportation System 
May 26, 2015 - Airport Taxi Service and Transportation Network Companies Briefing 
December 15, 2009  Authorization to award Puget Sound Dispatch, Inc., dba Yellow
Cab Taxicab Association, the contract for On-Demand Taxi Services at the Airport. 
November 30, 2009  Briefing on status of RFP for On-Demand Taxi Service at the
Airport.