Template revised January 10, 2019.
COMMISSION
AGENDA MEMORANDUM
Item No.
10a
ACTION ITEM
Date of Meeting
December 12, 2023
DATE : October 5, 2023
TO: Stephen P. Metruck, Executive Director
FROM: Jeffrey Wolf, Director, Aviation Commercial Management
Geoffrey Foster, Sr. Manager, Aviation Commercial Management
Jason Berg, Property Manager, Aviation Commercial Management
SUBJECT: Curbside Management Contract Procurement
Amount of this request:
$14,000,000
ACTION REQUESTED
Request Commission authorization for the Executive Director, or designee, to contract for
services associated with curbside management of the On-Demand Taxi/Flat-Rate For-Hire (On-
Demand or Taxi) program at the Seattle-Tacoma International Airport (SEA or airport) for a total
cost of up to $14,000,000 for a term of up to five years.
EXECUTIVE SUMMARY
The current Curbside Management Services contract associated with managing the curbside and
holding lot for the On-Demand services at SEA is set to expire on October 31, 2024. Upon
approval, Staff will begin a procurement for continued curbside management services directed
by the Port of Seattle’s (Port) Central Procurement Office (CPO). Staff anticipates selecting a
curbside management provider and completing contract negotiations for a November 1, 2024
start date.
JUSTIFICATION
On February 14, 2023, Commission passed Order 2023-03 which established a more permanent
On-Demand program at SEA. Within that same order, Commission directed Staff to continue to
contract with and pay for curbside management services designed to continue management of
the On-Demand program.
Diversity in Contracting
There will be a 3% WMBE aspirational goal associated with this contract based on an evaluation
by Diversity in Contracting staff.
COMMISSION AGENDA – Action Item No. 10a Page 2 of 5
Meeting Date: December 12, 2023
Template revised June 27, 2019 (Diversity in Contracting).
DETAILS
The purpose of this procurement is to continue the curbside management function of the On-
Demand services at the airport’s designated operating area(s) within the parking structure and
holding lot.
Contract Components
This contract is primarily comprised of labor-related activities associated with the safe and
orderly operation of the On-Demand Taxi curbside at SEA and includes:
• Manage passenger loading into taxi vehicles.
• Dispatching of taxi vehicles, to include charging of the per-trip fee, based on supply and
demand to the active pick-up area.
• Management of a taxi vehicle holding lot and operational queueing in operating areas.
• Ensuring the safe and orderly operation of the taxi curbside.
Updates to the Scope of Work for this procurement will also incorporate the following:
• Additional focus on customer service, relationship management and conflict resolution
training standards.
• Improved reporting of customer service and conflict resolution training requirements.
• Collaboration with Port on outreach, education, and consultation with taxi driver
community.
• Updated standards for maintaining the 160
th
Street lot facility, which includes cleaning
and providing adequate supplies for restrooms and breakroom.
The updates to the contract’s scope were developed over the pilot program through on-going
feedback and conversations on the On-Demand program with the Voluntary Organization (VO)
and the taxi driver community.
Schedule
Activity
Commission authorization
2023 Quarter 4
Procurement RFP released
2024 Quarter 1
Procurement complete
2024 Quarter 3
Curbside Management Implementation
2024 Quarter 4
COMMISSION AGENDA – Action Item No. 10a Page 3 of 5
Meeting Date: December 12, 2023
Template revised June 27, 2019 (Diversity in Contracting).
ALTERNATIVES AND IMPLICATIONS CONSIDERED
Alternative 1 – Allow current Curbside Management Agreement to expire on October 31, 2024.
Cost Implications: Up to $14,0000,000 in savings over a 5-year period.
Pros:
(1) Contract savings of up to $14,000,000 over a 5-year period.
Cons:
(1) Discontinued management of On-Demand Taxi/Flat-Rate For-Hire program at the
airport that will degrade the customer experience at SEA.
(2) Discontinued management of the 160
th
Holding Lot, to include the facility, and vehicle
queueing operating areas.
(3) Increased staffing needs for ensuring safe and orderly curbside.
This is not the recommended alternative.
Alternative 2 – Transfer Curbside Management function to GT Staff.
Cost Implications: Approximately $12,000,000 over a 5-year period of pay and benefits for 23
Full-Time Employees (FTEs) to perform the curbside management function and manage the 160
th
Holding Lot facility for a 24/7 operation.
Pros:
(1) Port would have full operational oversight and management of On-Demand Taxi
program without the need to enforce or amend a contract.
(2) Implementation of changes to the operation due to changing needs/requirements
would be quicker/easier without having to amend a contract.
Cons:
(1) Requires the need to recruit, hire, train and pay 23 FTEs to fulfill this curbside
management role at a cost of approximately $12,000,000 over a 5-year period. This
does not include associated costs for continuous training, hiring, equipment, etc., which
would vary year-to-year.
This is not the recommended alternative.
Alternative 3 – Approve authorization to procure Curbside Management services for a term of
up to five years at a total cost of up to $14,000,000.
Cost Implications: Up to $14,000,000 over a 5-year period
Pros:
(1) Continued management of On-Demand Taxi/Flat-Rate For-Hire curb ensuring
passengers are assisted into taxis providing an elevated customer experience at SEA.
(2) Continued management of 160
th
Holding Lot, to include the facility, and vehicle
queueing in operating areas.
COMMISSION AGENDA – Action Item No. 10a Page 4 of 5
Meeting Date: December 12, 2023
Template revised June 27, 2019 (Diversity in Contracting).
(3) Continued monitoring of vehicles and drivers ensuring compliance with Port rules and
regulations.
Cons:
(1) Port would not have direct say over means and methods of curbside management.
(2) Implementation of changes to the operation due to changing needs/requirements may
require the need to amend the contract and incur additional costs.
This is the recommended alternative.
FINANCIAL IMPLICATIONS
Commission authorized $12,500,000 back on March 26, 2019, for the current curbside
management agreement. This new Agreement will be in effect from November 1, 2024 to
October 31, 2029 with a total estimated five-year cost to the Port of up to approximately
$14,000,000 with anticipated increases mainly due to inflationary impacts on labor costs.
Annual Budget Status and Source of Funds
The Curbside Management Services Agreement budget is included in the 2024 Ground
Transportation baseline budget in the amount of $1,895,460. If this request is approved, the 2025
Ground Transportation baseline budget would be increased to align with the amount authorized
in this request.
Financial Analysis and Summary
Contract cost for analysis
$14,000,000 (five years)
Business Unit (BU)
Aviation Commercial Management
Effect on business performance
(NOI after depreciation)
No additional revenue will be generated by this service.
However, the Curbside Management Service is a key
support component of the approximately $3,500,000 in
non-aeronautical revenue associated with the On-
Demand line of business.
IRR/NPV (if relevant)
N/A
CPE Impact
N/A
Future Revenues and Expenses (Total cost of ownership)
The Curbside Management Service supports the On-Demand Taxi/Flat-Rate For-Hire program,
which yields approximately $3,500,000 in revenue annually. This Curbside Management Service
does not directly generate revenue.
ADDITIONAL BACKGROUND
As part of the continued Curbside Management Services function associated with the On-
Demand system, set to begin on November 1, 2024, there may be additional costs associated
with an increased scope of work. The costs, which include on-going expense reimbursables, as
COMMISSION AGENDA – Action Item No. 10a Page 5 of 5
Meeting Date: December 12, 2023
Template revised June 27, 2019 (Diversity in Contracting).
well as a management fee, will be finalized through the procurement process and associated
negotiations with the selected provider. Due to the uncertainty of total costs, Staff is requesting
authorization of up to $2,800,000 per contract year. This estimate compares to the current rate
of around $2 million per year for services. The anticipated increase is due to general inflationary
impacts, generally associated with the cost of labor. The estimated cost for a two-year
procurement with three additional one-year extension options totals up to $14,000,000. These
costs will be included as part of the baseline budget for Ground Transportation.
ATTACHMENTS TO THIS REQUEST
(1) Motion 2019-03 – Establishment of a Two-Year On-Demand Taxi Pilot Program
(2) Order 2023-03 – Establishment of On-Demand Taxi/Flat-Rate For-Hire Program for a
Period of Up to Five Years
(3) Presentation slides
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
February 14, 2023 – The Commission approved Order 2023-03 establishing a more
permanent program for On-Demand service at SEA for a period of up to five years. This
Order also directed Staff to contract with and pay for curbside management associated
with the On-Demand program.
May 28, 2019 – The Commission approved Motion 2019-03 establishing a two-year pilot
program for On-Demand service at SEA. This Motion also directed Staff to contract
separately for curbside management services associated with the On-Demand pilot
program.
March 26, 2019 – The Commission authorized the Executive Director to execute contract
documents for curbside management associated with On-Demand services at SEA for a
total cost of $12,500,000 for a term of two years with three, one-year extension options.
