PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA               Item No.      7b 
STAFF BRIEFING 
Date of Meeting    December 8, 2015 
DATE:    November 30, 2015 
TO:     Ted Fick, Chief Executive Officer 
FROM:    Michael Ehl, Director Aviation Operations 
SUBJECT:  Ground Transportation  Introduction of Transportation Network
Companies (TNCs) 
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. 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. 
The established and growing public demand for the introduction of Transportation
Network Companies (TNC) into the Airport's pre-arranged ground transportation system
was reviewed during the six-month study period. As such, Port staff has initiated
discussion and are currently engaged in negotiations with several TNC entities.
Implementation of TNC operations will be determined by the speed of negotiations as
based on the ability of the operators to satisfy the guidelines recommended herein and
established by the Commission. 
TNC operating agreements will include stringent terms that require specific methods for
the reporting of operational activity with frequent auditing. In addition, Port staff has
released a Request for Information (RFI) to understand the capabilities of software that
integrates tracking, enforcement, and appropriate revenue reporting compatible with the
Port technology platform to enable the highest levels of transparency, accountability,
contract compliance, and enforcement. The results of the impending RFI will help staff
determine if and how to implement a real-time activity and revenue reporting technology
for TNCs, and other ground transportation (GT) operators. Staff intends to commence a
TNC agreement and if and when a technology-based tracking solution becomes available,
it will be incorporated into the operation at that time. 
Introducing the TNC option into the ground transportation system will require several
modifications to the third floor of the public parking garage and ancillary facilities which
will be put in place immediately to  accommodate the TNCs. Additional facility
challenges must be resolved to accommodate other changes being driven by Sea-Tac's
extraordinary growth and the physical relocations of existing operations made necessary

Template revised May 30, 2013.

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
November 30, 2015 
Page 2 of 4 
by planned and future capital improvement projects. A comprehensive facility analysis of
the third floor of the public parking garage, lower drive, and related vehicle staging areas
will be complete by the first quarter of 2016 to inform final design requirements
anticipated for future GT activities. 
BACKGROUND 
In an already dynamic market for ground transportation services, in which growth in
nearly all GT 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 actively engaged in negotiations. 
On May 26, 2015 and subsequently on September 8, 2015, the Port Commission provided
guidance by which staff was to establish the framework for implementing an operating
agreement with TNCs at Sea-Tac Airport. This guidance was based on a philosophy of
establishing a level playing field whereby similar requirements are consistently applied to
ground transportation operators at Sea-Tac Airport. 
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 thirdparty
facilitator. Additionally, a formal study was conducted by Leigh Fisher, an
established aviation consulting firm, to provide information on best management
practices at 15 peer airports. Based on this outreach and industry research, Port staff has
developed key terms for an operating agreement consistent with the guidance and
philosophy of a level playing field amongst ground transportation operators. Included
below are the main operating agreement terms which are currently being negotiated with
the TNCs:

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
November 30, 2015 
Page 3 of 4 
Proposed TNC terms    Terms for other GT agreements    Industry Comparison
Similar, except for exclusive
1-year with 30 day cancellation
Term                       agreements with Yellow and   Generally one-year or less.
clause.
STILA.
Per-trip fee, amount TBD but                        Per-trip fees, generally $5 or
based on comparable fees for  Per-trip, permit, concession  less. Most are pick-up only, but
On-Going Fee
taxis. Charged on pick-up only        fees. Varied.        some charge for drop-offs as
(not drop-off).                                      well.
One time fee capturing past
Similar concept in San
unpaid trips. TNCs will self-
Francisco. San Diego charged a
Activation Fee      report these trips and fees           N/A
one-time fee for additional
owed, or, if unknown, a flat fee
staff costs to be incurred.
will be applied.
Varies between airport drives
Operating Area       3rd floor of garage.            Similar.
and nearby operating area.
Staging Area        South 160th Street.            Similar.            Similar staging areas.
Geo-fence required for 1)
Geo-fence is implemented at
vehicle tracking, 2) trip
most airports. Month-end trip
reporting, and 3) "blackout" so
AVI is utilized for tracking and      reporting with audit
Technology      drivers cannot accept rides
trip reporting.         capabilities. Real-time trip
within the area as a way to
tracking is only being done in
eliminate cruising or loitering
San Francisco.
for ride requests.
Trade Dress            Required.               Similar.                Similar.
Must fulfill ride if requested,
or, provide information and     Similar for most other
Wheelchair Accessibility                                                   Similar.
contact for an alternative          agreements.
provider.
Very limited. San Diego is only
Deadheading reduction effort  On-demand taxi fleet is 100%     other airport that has
Green Initiatives    through matching of drop-off     "green". Deadheading     implemented a two-tier rate
and pick-up trips.           reduction goals.       system- lower per-trip fee for
"green" vehicles.
$1 million while on Port      Per Senate Bill 5550, TNC
Insurance      property per recently enacted  insurance requirements are         Similar.
Senate Bill 5550.      higher than other GT operators.

Proposed Schedule 
December 8, 2015     Commission briefing 
December 15, 2015     GT technology RFI results available 
January 1, 2016       TNC operating agreement commencement 
March 1, 2016        Ground transportation traffic study complete 

ATTACHMENTS TO THIS BRIEFING 
Map of third floor garage Ground Transportation operating area.

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
November 30, 2015 
Page 4 of 4 

PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
September 8, 2015  Briefing on Options for Structure of Airport Ground
Transportation System 
May 26, 2015 - Airport Taxi Service and Transportation Network Companies
Briefing