Template revised September 22, 2016.
COMMISSION
AGENDA MEMORANDUM
Item No.
8c
ACTION ITEM
Date of Meeting
January 30, 2018
DATE: January 22, 2018
TO: Dave Soike, Interim Executive Director
FROM: Michael Ehl, Director Aviation Operations
Jeffrey Hoevet, Senior Manager Airport Operations
SUBJECT: Seattle-Tacoma International Airport – Light Rail Electric Cart Service
Amount of this request:
$2,000,000
Total estimated project cost:
$2,000,000
ACTION REQUESTED
Request Commission authorization for the Executive Director to execute a contract to support
electric cart service between the Airport’s main terminal and Sound Transit’s Link Light Rail
Airport Station. This proposal authorizes an estimated $2,000,000 for a 2-year agreement with
options for three 1-year extensions.
EXECUTIVE SUMMARY
The airport has offered electric cart transportation between the main terminal and Sound
Transit’s Airport Station since February 2017. To date, the system has transported more than
300,000 customers and has delighted passengers with an amenity that makes it easier to access
the airport and public transportation. The electric cart service generally runs 5:00 a.m. to
midnight each day of the week, and supports easy access to and from the airport. We
anticipate continued support of this service with an agreement that will provide a level of
service consistent with our commitment to make access easier for passengers.
JUSTIFICATION
More than 300,000 customers have been transported on Port-provided electric carts since we
initiated the service in February 2017. Given the public feedback, and perception of a long walk
from the Airport Station, electric cart service has been a welcome addition to an accessible
facility. The walkway connecting the Airport’s main terminal and Sound Transit’s Airport
Station has been improved with windbreaks and epoxy surfaces. In making the walkway more
attractive, the electric cart service provides additional improvement to customer access with
vehicles that transport people and baggage. With service available for the majority of the day,
electric carts provide a valuable service to the traveling public.
COMMISSION AGENDA – Action Item No. 8c Page 2 of 4
Meeting Date: January 30, 2018
Template revised September 22, 2016; format updates October 19, 2016.
DETAILS
Given the desire to provide additional services to support customer demand, the Port of Seattle
has contracted with a third-party vendor to supply and staff the electric cart service. As the
initial effort has been successful, we’re seeking a new contract that will continue to offer a
similar level of service and demonstrate our commitment to supporting customers who utilize
Link Light Rail as a mode of transportation to and from the airport.
Scope of Work
Vendor agreement will support a minimum of two electric carts and dedicated staffing to
provide safe, reliable transportation to and from the Airport Station (Link Light Rail). Carts will
be available for service as assigned between the hours of 5:00 a.m. to midnight daily with
seasonal adjustments as directed by staff.
Core contractual elements
(1) Dedicated electric carts
(2) Trained staff
(3) Safe, reliable transportation
Schedule
Activity
Commission authorization
2018 Quarter 1
Request for proposal
2018 Quarter 1
Contract award
2018 Quarter 1
Service commencement
2018 Quarter 1
This Request
Total Project
Anticipated 5-year agreement
$2,000,000
$2,000,000
Total
$2,000,000
$2,000,000
ALTERNATIVES AND IMPLICATIONS CONSIDERED
Alternative 1 – Eliminate electric cart service
Cost Implications: Eliminate an estimated $400,000 annual expense
Pros:
(1) Cost savings
(2) Relies on existing wheelchair contract to support customer access
Cons:
(1) Eliminates a popular option
(2) Relies on single provider for timely transportation
This is not the recommended alternative.
COMMISSION AGENDA – Action Item No. 8c Page 3 of 4
Meeting Date: January 30, 2018
Template revised September 22, 2016; format updates October 19, 2016.
Alternative 2 – Offer an agreement to support electric cart service for limited hours of each day
Cost Implications: Anticipate expense at $240,000 per year
Pros:
(1) Continue to offer service to customers
(2) Supports transportation during peak daily hours
Cons:
(1) Inconsistent service to customers
(2) Difficult to anticipate customer arrival and departure times
This is not the recommended alternative.
Alternative 3 – Offer a 5-year agreement to support customer transportation with electric carts
and trained staff
Cost Implications: $400,000 per year (5-year agreement at $2,000,000)
Pros:
(1) Consistent service to customers during an operational day
(2) Accessible transportation option for customers utilizing public transportation
Cons:
(1) Conflicts with pedestrians on walkway
This is the recommended alternative.
FINANCIAL IMPLICATIONS
Annual Budget Status and Source of Funds
Airport Operations has budgeted for $336,000 in the 2018 Operating Budget. Additional budget
will be planned in future years. The funding source will be the Airport Development Fund.
Financial Analysis and Summary
Project cost for analysis
$2,000,000
Business Unit (BU)
Aviation Operations – Landside
Effect on business performance
(NOI after depreciation)
NOI after depreciation will decrease by the amount of
the annual expenditure.
IRR/NPV (if relevant)
N/A
CPE Impact
N/A
Future Revenues and Expenses (Total cost of ownership)
Expenses are anticipated to be $400,000 per year over a 5-year period.
COMMISSION AGENDA – Action Item No. 8c Page 4 of 4
Meeting Date: January 30, 2018
Template revised September 22, 2016; format updates October 19, 2016.
ATTACHMENTS TO THIS REQUEST
None
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
None