7a supp
ITEM NO: ___7a_Supp______ DATE OF MEETING: September 8, 2015 The Ground Transportation System at Seattle-Tacoma International Airport: Options to Expand Participation and Enhance Customer Service 1 Outline 1. Direction at 5/26 Commission Meeting 2. Current Ground Transportation (GT) Services at the Airport 3. Peer Airport and Best Practices Analysis 4. Stakeholder Outreach Meetings 5. Key Policy Considerations 6. Options for Structuring GT System 7. Next Steps 8. Appendix (Airport/Maritime Operational Details) Preparation for Commission consideration of Options 2 Direction to Staff on 5/26 Commission Meeting Develop options for Commission consideration that meet the following criteria: Provides quality service for the traveling public Provides adequate capacity to meet demand Allows provision of service to be manageable Generates income for the Port of Seattle Promotes small business Expands economic opportunity Encourages environmental sustainability Create a process for GT stakeholders to provide input Other considerations Criteria, input and considerations used in developing options 3 Current GT Services at the Airport On-Demand service transportation services that are available on a walk-up basis at the curbside without prior arrangement or customer interaction between the customer and provider Taxi (Puget Sound Dispatch) Limousine (Seattle-Tacoma International Limousine Association) Shared Ride/Airporter Pre-Arranged service transportation that is provided in response to a prior request from a customer via telephone, smartphone application or other method Taxi, Limousine, For Hire, Shared Ride/Airporter, Courtesy, Charter Ground Transportation system at Sea-Tac is primarily managed by Port staff See appendix for detailed information of each class of service A variety of operators serve the traveling public at Sea-Tac with on-demand and pre-arranged services 4 Current GT Services at the Airport The GT system includes 8 classes of service GT system activity in 2014: Over 2.3 million trips across all classes of service Generated more than $8 million in non-aeronautical revenue Direct Port costs allocated to these service classes total approximately $2.5 million GT services at Sea-Tac have consistently ranked high among peer airports The GT system is important operationally and financially to the airport 5 Peer Airport and Best Practices Analysis (Leigh Fisher Report) Airports Selected for Analysis San Francisco Tampa Fort Lauderdale Denver Philadelphia Minneapolis/St. Paul Boston Detroit Houston (Bush) Miami Portland Washington (Dulles) Phoenix Baltimore Vancouver Criteria for Selecting Peer Airports Similar volume of origin and destination (O&D) passengers Serve a passenger mix similar to that of Sea-Tac (business vs. leisure passengers) Employs a range of ground transportation business structures or operating models including those considered to have best industry practices Independent 3rd party completed peer airport review and best practice analysis 6 Peer Airport and Best Practices Analysis (Leigh Fisher Report) Basic Types of Business Arrangements 1. Open access any vehicle having a valid permit issued by local regulatory agency may serve the airport 2. Exclusive access airport awards a contract to one or several companies and only this company(ies) may pick up on-demand customers at the airport 3. Hybrid blend of 1 and 2 based on class of service Key differences of the models are: The airport's ability to control the customer experience and operations, including vehicle and driver standards The amount of staff effort required to implement and oversee operations The amount of competition among companies Choice of GT business model impacts multiple factors 7 Peer Airport and Best Practices Analysis (Leigh Fisher Report) Open System Exclusive System Pros Pros No licensed vehicles are excluded from serving the Airport's contractual relationship provides ability to airport require such things as environmental standards, vehicle availability, operator's on-site management Enhanced customer service Significantly less enforcement and management oversight required Cons Cons Frequently leads to oversupply Some properly licensed companies will not be Difficult to maintain customer service standards (wait selected and will be precluded from conducting ontime , vehicle condition, driver training) demand business at the airport Increased enforcement requirements which require Perceived advantage for incumbent in successive greater staff effort and resources contracts Need for and cost of additional staging/queueing facilities Each GT structure has different benefits 8 Peer Airport and Best Practices Analysis (Leigh Fisher Report) Best Practices for Structure of Ground Transportation Services Taxis/For-Hire: Exclusive access for on-demand services Limos: Only four of the peer airports offer on-demand limos. The value of concession contracts appears to have diminished . Shared-Ride: Exclusive access TNCs: Only four peer airports have agreements with TNCs, too early to determine best practices Three of four airports rely on TNC self-reporting Main challenge is enforcing current airport regulations Exclusive model is considered best practice for taxis and shared ride services 9 Stakeholder Outreach Meetings (Conducted by Norton-Arnold & Co.) Five individual meetings were held with separate stakeholder groups (Taxi, Limousine, For-Hire, Shared Ride, TNC) Independent facilitator asked attendees to explain what is working well and what needs to be changed with Sea- Tac's GT system Process to meet Commission request for stakeholder input 10 Stakeholder Outreach Meetings (Conducted by Norton-Arnold & Co.) Common Themes from Five Stakeholder Meetings: Competition Customer Service Small Business Revenue to the Port of Seattle Environmental Considerations Relationship with the Port of Seattle Common themes emerged from individual class of service meetings 11 Stakeholder Outreach Meetings (Conducted by Norton-Arnold & Co.) Key Messages Articulated by Various Service Providers Taxi - Regulated rates with a meter easily understood by customers For-Hire - Flat rate easy for customers and less expensive Limousine - Highly regulated luxury vehicle service with extensive background checks for drivers Door-to-Door Shuttle & Scheduled Airporters Regulations require high levels of insurance, driver background checks, vehicle inspections TNC - Regulated, variable insurance based on driver activity Each operator class articulated advantages of, or addressed concerns regarding, their business model 12 Key Policy Considerations Merit of promoting greater opportunity (open access) vs. higher capital and operating costs, lower owner/driver income, and less control of customer service Market rate or cost recovery methodology TNC operations Restrictions on private use for public facilities funded by municipal bonds Means of ensuring safe and equitable operation Multiple issues to consider in setting policy 13 Current GT Structure On-Demand Taxi Exclusive through competitive bid Limo Exclusive through competitive bid Pre-Arranged Taxi Open For-Hire Open Limo Open TNC Pick-ups not allowed Shared Ride Open with appropriate permit GT Management Port staff This structure has provided excellent customer service and high revenue to the Port 14 Option 1 Allow any taxi, for-hire, or limo provider with a valid permit issued by the local regulatory agency access to on-demand customers Co-locate all on-demand and pre-arranged GT classes of service on third floor plaza of the garage 1 year pilot program for TNCs to operate as a pre- arranged option on the third floor of the garage This option focuses on creating parity of access to customers 15 Option 1 Considerations: Creates operational equity among providers Allows increased number of participants but likely reduces income levels Reduces ability to manage customer service, environmental standards and vehicle condition Increases resources required to manage POS or third party Leads to over-supply but can manage through caps or rotations Increases difficulty to ensure adequate capacity 24/7 and during bad weather Can set rates higher than cost-recovery but must be reasonable and uniform Requires significant capital investment to expand curb space and off-site staging areas, must also expand operational area on third floor Single lane entry/exit on third floor commercial area could lead to congestion Higher risk to customer safety and service levels due to congestion All operators would be located on 3rd floor 16 Option 2 Same as Option 1, except pre-arranged classes of service continue to operate as they do currently Allow any taxi, for-hire, or limo provider with a valid permit issued by the local regulatory agency access to on-demand customers 1 year pilot program for TNCs operation as a pre-arranged option on the third floor of the garage This option focuses on creating more participation 17 Option 2 Considerations are very similar to Option 1, with the following changes: Requires less capital investment to add curb space and off-site staging areas Less congestion and risk to customer safety in third floor GT operating area This option allows classes of service to operate where they do today but with all classes using open structure 18 Option 3 Create a single exclusive contract that allows either taxi and/or for-hire operators to provide on-demand service Maintain exclusive contract for on-demand limos Maintain open structure for pre-arranged classes of service Pre-arranged classes of service continue to operate as they do currently 1 year pilot program for TNCs operation as a pre- arranged option on the third floor of the garage This option utilizes exclusive contracts for on-demand services 19 Option 3 Considerations: Creates best customer service due to vested interest in contract and single point of contact Allows all taxi and for-hire operators ability to compete for access to on-demand customers Provides adequate capacity 24/7 and during bad weather due to contract requirements Provides best justification for rates above cost-recovery as rate set by competition through RFP Allows better enforcement of customer service, vehicle and environmental standards Least impact to staff resources devoted to management and enforcement Of all proposed options, requires least amount of investment for additional queueing/staging space Key ability is to control standards through contract 20 Next Steps Pending Commission policy direction, will need to address current Yellow Cab contract Extend month-to-month or by limited term Any additional changes during such extension? Initiate service by other modes (e.g., TNCs, For-Hire) Prepare comprehensive multi-mode plan and associated scope of facility changes or expansion 21 Appendix: Detail of GT Operator Classes Classes of GT Taxi Limousine Taxi/For-Hire Limousine Shared Ride, Other Shared Ride Courtesy Vehicles Charter Vehicles Service (On-Demand) (On-Demand) (Pre-Arranged) (Pre-Arranged) Airporters Scheduled door to door On-demand or van service. Territories On-demand or Scheduled coach On-demand, on-site Pre-arranged scheduled door to door On-demand, on-site Prearranged service include: Pierce, scheduled service bus service for Service luxury town-car, limo service in a luxury van service (sharing the metered service, in a metered taxi or Snohomish, Kitsap available, courtesy groups traveling to Description or SUV service, town-car, limo or ride), on-site and available 24/7 flat rate for-hire car. counties, Whidbey ride to nearby hotels the same available 24/7 SUV available 24/7. Primary Island, Bellingham, or parking lots destination territory: I-5 Corridor Vancouver BC Regulatory WA Dept. of WA Dept. of WA Util. & Trans. WA Util. & Trans. WA Util. & Trans. City/County City/County N/A Body Licensing Licensing Commission Commission Commission Capital Aeroporter, Bremerton Kitsap, Quick Seattle Tacoma Int'l Independent Puget Sound Dispatch Independent Shuttle Express, Coach, Whidbey SeaTac, Offsite Parking Lots, Operator(s) Limo Association Owner/Operators Various dba Yellow Cab Owner/Operators SpeediShuttle BelAir, Wenatchee Hotel/Motels (STILA) (Eastside For-Hire) Valley, Rocket Transportation Length of Five Years Five Years Month-to-Month Month-to-Month Month-to-Month Month-to-Month Month-to-Month Month-to-Month Agreement GT Plaza Parking Operator Area GT Plaza Curb GT Plaza Curb Arrivals Drive GT Plaza Curb South GT Lot GT Islands South GT Lot or Arrivals Drive 22 Appendix: Detail of GT Operator Classes Classes of GT Taxi Limousine Taxi/For-Hire Limousine Shared Ride, Other Shared Ride Courtesy Vehicles Charter Vehicles Service (On-Demand) (On-Demand) (Pre-Arranged) (Pre-Arranged) Airporters Market Rate / Market Rate Market Rate Cost Recovery Cost Recovery Cost Recovery Cost Recovery Cost Recovery Cost Recovery Cost Recovery Method of MAG plus % MAG plus per-trip Permit fee Permit fee Per-trip fee Per-trip fee Per-trip fee Per-trip fee payment 2015 Fee N/A N/A $511.50 $260.56 $3.27 $2.32 $1.78 $17.98/$29.26** 2014 Trips 815,176 74,082 67,252 69,379 64,703 35,925 1,219,630 7,055 % of Total Trips 35% 3% 3% 3% 3% 2% 52% Less than 1% Growth in trips 10% 18% N/A * 17% 1% 8% -3% -4% vs. 2013 2014 Revenue $3,670,778 $943,112 $56,212 $513,583 $227,108 $108,646 $2,437,657 $179,261 % of Total 45% 12% 1% 6% 3% 1% 30% 2% Revenue 2014 Rev/trip $4.50 $12.73 2014 Permit $0.84 $7.40 fee/trip 2014 Per trip fee $3.51 $3.31 $1.95 $18.82 * Vehicles just recently tagged using Automated Vehicle Identification (AVI) ** Charter Vehicle trip fees were split to vans (less than 30 passengers, $17.98 per trip) and coaches (greater than 30 passengers, $29.26 per trip) in 2015 23 Appendix: Current GT Services at Cruise Terminals Cruise Terminal Transportation Services Disembarkation of Passengers - 7:30 AM to 10:00 AM Embarkation of Passengers - busiest from 11:00 AM to 1:30 PM) Smith Cove Cruise Terminal (SCCT P91) Serving two cruise ship berths Bell Street Cruise Terminal (BSCT P66) Single cruise ship berth The Port has two sites for cruise passengers 24 Appendix: Current GT Services at Cruise Terminals Pier 91 SCCT at T91 is operated by Cruise Terminals of America (CTA) under a lease with POS. CTA is responsible for passenger transportation circulation and coordinates with the cruise lines for all passenger movements CTA's lease at T91 runs through Dec 2019.CTA is responsible for managing passenger transportation services To maintain a safe flow of vehicles and cruise passengers CTA has an arrangement with Yellow Cab that they will provide an onsite supervisor to manage the flow of taxis and passenger waiting. Any metered taxi can get in the taxi line All taxi cabs, for-hire vehicles, limos, and personal vehicles which are dropping off passengers arriving to board a cruise ship are provided full entry to SCCT SCCT cell-phone waiting lot for anyone picking up returning cruise passengers. Limos and for-hire vehicles with pre-arranged trips to pick-up cruise passengers are directed to the cell phone lot until their passengers have departed the vessel and then they can pick them up in the area designated for personal vehicles Any licensed taxis may pick up on-demand passengers at Pier 91, prearranged vehicles wait in the cell phone lot 25 Appendix: Current GT Services at Cruise Terminals Pier 66 BSCT P66 will be under lease with Norwegian Cruise Line Holdings (NCLH) beginning in 2016. CTA to provide terminal management services for NCLH through 2016 cruise season. NCLH is responsible for cruise terminal operations through the end of their 15 year lease At P66 the majority of passenger movement is on Alaskan Way City of Seattle right-of-way Currently, Yellow Cab provides a supervisor who controls the line of taxis along the curb along southbound Alaskan Way. The supervision is to ensure a safe, orderly operation. Any licensed taxi can pick up at the designated taxi area. It is anticipated that a supervisor will be utilized in the same manner in the future City street curb-side drop off/pickup is on Alaskan Way. All taxi, for-hire, limos and personal vehicles are allowed to drop off passengers that are arriving to board the ship Pier 66 GT operations take place on a Seattle city street where any licensed taxi may pick up passengers 26
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