Minutes Exhibit D
Port Commission Special
Meeting of September 22, 2015

Outlookcom Print Message                                      Page 1 of 3

Print                                                                Close

Did Yellow Cab Shortchange Port of Seattle $4 Million at Sea-
Tac?

From: Chris Van Dyk (cvandyk5@msn.com)
Sent: Mon 9/14/15 12:55 PM
To:  Tannny.Bigelow@sao.wa.gov
Cc:  menitt.m@portseattle.org
7 attachments
Revenue Underreporting Summary.pdf (3 17.1 .KB) Revenue Relationships &
_.
Cumulative Loss Chartpdf (760.6 KB) Fare Rate Region Distribution Chartpdf (452.6
,
KB)                 for Revenuepdf (115.0 KB) STI 201 1 Sales
_, Deadheading Analysis Updated _.
Reportspdf (833.5 KB)       of Review of Outbound Passenger Services Contract
, Summary
Process ~ Updated SeaTac 09_7_2015.pdf (435.3 KB) Review of Outbound Passenger
,
Services Contract Process ~~ SeaTac 09_07_2015 Final .pdf(624.5 KB)

Office of the Washington State Auditor

Audit Manager, Port of Seattle Accountability Audit

Ms. Tammy Bigelow

(206) 6150555

Tammy.8igelow@sao.wa.gov


Dear Ms. Bigelow:

Our understanding from your presentation on August 11, 2015 before the Audit Committee of the
Seattle Port Commission is that you are charged with oversight of the current Accountabiiity Audit
of the Port of Seattle, for the fiscal year 2014. This is a matter, related to that audit, requiring your
immediate attention.

The current contract for outbound taxicab services at SeaTac International is held by Puget Sound
Dispatch LLC dba Yellow Cab; the current five year contract expires this year, on October 31, 2015.
The value of the contract to the Port has been some $18.6 million, at minimum; the value to
airport taxicab operators is with "gateway access" to airport passenger revenue of'approximately
$200 million for the term; and, the value to Puget Sound Dispatch LCC, both direct and indirect, is
also significant, and in the millions of dollars. Our understanding up until mid-May ofthis year was
that a new outbound passenger services contract would be let, as was this current contract, subject
to public RFP and/or bid. In midMay, that course of action was abruptly changed.

https ://blu1 74.mail.live.com/ol/mail.mvc/PrintMessages?mkt=enus                 9/22/2015

Outlookcom Print Message                                      Page 2 of 3

In preparation, and continuing hope, for a public bid process, we have been closely examining the
public records including monthly revenue reports submitted by the current contractor. The data
submitted indicate certain irregularities; in fact, analysis of the irregularities indicate that the Port
of Seattle may have been underpaid by the current contractor,
over the term of the contract, in
excess of $4 million. We are most concerned that Port staff, at the most recent Port Commission
meeting, seemed to indicate a willingness to extend this current contract some eleven months
beyond its expiration, with the current contractor, without public bid or even a full and public
examination of the data that might lead an outside, objective observer to this conclusion.

Please know that as a potential bidder on the outbound taxi services contract,
we have an interest
here. That said, because we have an interest, we need to know all bids at the Port of Seattle
are
and will be treated equally, and fairly. If contractors are not held to bid terms, or contract terms,
over the long-term of a contract, how can anyone be expected to bid, at all, or to put it more
bluntly, honestly? Why not just game the bid yourself, if you figure is the way the public agency
plans on enforcing  or not enforcing  contract terms? Worse, to justify the expense of bidding---
one would have to bid by the rules----on non-rules-~~extant at the time.

The data as analyzed in the attached, indicate a possible underpayment by the contractor in
excess
of $4 million over the term of the contract. At the most basic, the monthly revenue reports
submitted show that the passenger revenue generated by an average outbound taxicab trip
declines from a low reported 538 per trip in 2011, to as little
as a reported $30 per trip in 2015.
This is impossible (have taxicab prices to downtown Seattle declined 20112014?) and it is
important, simply because contract payment is obligated at 13.5% of reported gross passenger           l
revenue. Put a bit differently, $2.3 million in gross passenger revenue is shown to have been
,
generated by 61,051 trips in November 2011, and also by 77,014 trips in July, 2014. This could be a
simple reporting error, were an inverse relationship --- noted in the attached
--- not indicated over
the term of the contract, by the data. That relationship has the monetary value of each trip in
l
inverse relationship to the gross number of trips, over the term of the contract, with
a major shift
having occurred in July of 2012. Again, since this is simply not possible in the real world, the data
indicate that they may have been manipulated, to reduce the 13.5% payable to the Port of Seattle.

Given that the Port Commission is making a decision on the contract extension at this time,
we
hope and trust that this will receive your immediate attention. The data indicate that continuing
operation of this exclusive contract by the current operator, may very well be, as you expressed it
in your engagement letter with the Port, putting "....the management, use and safeguarding of
public resources..." at risk.

Please feel free to contact me, for further information or explanation, at
any time. On behalf of
Quality Ground Transportation Management LLC, I am,

Sincerely yours,

Chris Van Dyk
General Manager,
Quality Ground Transportation Management LLC
206-965-0086
cvandyk5@msn.com

https://blu174.mail.live.com/ol/mai1.mvc/PrintMessages?mkt=en-us                 9/22/2015

Outlookcom Print Message                                      Page 3 of 3




















https://blu174.mail.live.com/ol/mail.mvc/PrintMessages?mkt=en-us                 9/22/201 5