6h Memo Curbside Management Contract
COMMISSION AGENDA MEMORANDUM Item No. 6h ACTION ITEM Date of Meeting March 26, 2019 DATE: March 19, 2019 TO: Stephen P. Metruck, Executive Director FROM: Michael Ehl, Director, Aviation Operations Jeff Wolf, Manager, Aviation Commercial Management SUBJECT: Airport On-Demand Taxi/Flat-Rate For-Hire Curb Management (Short Form) Amount of contract authorization: $12,500,000 ACTION REQUESTED Request Commission authorization for the Executive Director to execute contract documents for curb management associated with On-Demand Taxi/Flat-Rate For-Hire (On-Demand) 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. SUMMARY A new Airport On-Demand Taxi system is set to begin on October 1, 2019. The Commission is considering a motion related to the new system on March 26, 2019. Included in the new system is a support function referred to as curb management. This function is primarily comprised of labor-related activities associated with proper running of the On- Demand system at the Airport and includes: Management of passenger loading into vehicles Staging and dispatching of vehicles based on supply and demand to the active pick-up area Management of a vehicle holding lot and vehicle queuing in operating areas Monitoring of vehicles and drivers to ensure compliance with rules and requirements Staff will begin a procurement for curb management services directed by the Port's Central Procurement Office (CPO). Staff anticipates selecting a curb management provider and completing contract negotiations for an October 1, 2019, start date. The Port assumed the current curb management agreement set to expire on September 30, 2019, as part of a settlement agreement with the current concessionaire in July 2018 at an annual cost of approximately $1,900,000. As part of the new On-Demand system, set to begin Template revised April 12, 2018. COMMISSION AGENDA Action Item No. __6h__ Page 2 of 2 Meeting Date: March 26, 2019 October 1, 2019, there may be additional costs associated with an increased scope of work. The costs, which include on-going expense reimbursables as well as a management fee, will be finalized through the procurement process and associated negotiations with the selected provider. Due to the uncertainty of total costs, staff is requesting authorization of $2,500,000 per contract year. The estimated cost for a two-year pilot program with three additional oneyear extension options totals $12,500,000. These costs will be included as part of the budget for Aiport Landside Operations. There are no attachments to this memo. Template revised September 22, 2016; format updates October 19, 2016.
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