
Sarah Flagg
Port of Seattle
April 7,2009
Page Two
Provide a reasonable incentive for participation in
the
program.
We have determined, based upon the retail value of trucks older than 1994, a reasonable
incentive is the greater of $5,000 or the fair market value. The commercial truck
"
blue
book
"
does not provide values for trucks older than the 1992 model year. For the 1992
model year, the range of values, based upon condition, is from $2,900 (rough condition
wholesale) to $8,325 (average retail). The average wholesale value is $5,375. We are
unable to predict with accuracy the number of owners who will choose to scrap their
trucks. Based upon multiple surveys by Port of Seattle staff, the number of eligible
vehcles is approximately 300. We recommend that the Port of Seattle budget
approximately $1.5 million, as discussed at the March
3
1, 2009 Commission meeting.
Ths amount would fimd the buy
-
back of the majority of
trucks
in the pre
-
1994 model
years.
We suggest providing a process for resolving disagreements over the buy
-
back amount,
e.g., when
an
owner believes a truck is worth more
than
"
blue book
"
. The process would
require the applicant to provide values for similarly equipped trucks of the same model
year with appropriate references.
Ensure participants are actively operating at Port of Seattle terminals.
A
document summarizing the truck's port drayage activity during the past year
and
the
past 30 days would provide the information necessary to verify operation at the Port of
Seattle.
A
requirement to provide this information should eliminate participants that are
not regular customers or have recently ceased operations because of the
downtur~l i11 the
economy. The information should be available
fkom the truck owners' records, beneficial
cargo owners, terminal operators, or third
-
party logistics companies.
Include both ownerfoperators and truck companies.
According to the Port's surveys, ownerfoperators and company
-
operated trucks are
approximately evenly split in the fleet. To be equitable and successful, the truck buy
-
back program should be available to both individuals and companies.
Align with options for truck replacements and retrofits.
As trucks are removed Born the road through the buy
-
back program, an opportunity
exists to provide a cleaner, retrofitted replacement truck to the owner or company. We
recommend the integration of the buy
-
back program
with
our partnership with Cascade
Sierra Solutions to provide more efficient, cleaner late
-
model trucks as replacements.
Transition to the
2015f2017
performance measure.
Removal of pre
-
1994 trucks from the road and replacement of those trucks with later-
model, clean trucks sets the stage for achievement of the 2015/2017 performance
measure.