Sky Harbor Ground Transportation Policy

Recommendation

City Council Policy SessionMarch 1, 2016

Public Meetings & Industry Outreach

22 Meetings

Briefings and OutreachCity Council DAR Subcommittee

Aviation Advisory Board

Taxi

SuperShuttle

Inter-City / Charter

Hotel / Motel

Off-Airport Parking

Pre-Arranged (TNCs, Limos, VIP)

What is the Policy?• Not a new fee

• Transition to demand-based fee

• Treats all commercial businesses equally

Why Are We Here?• Positive experience for our customers and visitors

• Manage a limited resource

• Provide platform for the future of Sky Harbor Airport

Top 20 Airports

ATLLAX

ORD

DFW

DEN

JFK

SFO

CLTLAS

IAH

MIA

SEA

MCO

EWR

MSPDTW

BOS

PHLLGA

PHX

Sky Harbor Today • 650 Companies

• 4,000 Drivers

• 3,500 Vehicles

• 2.6 Million annual trips

Sky Harbor Today Contracted on-demand providers

• Taxis• SuperShuttle

Permitted providers• Pre-Arranged• Courtesy• Inter-City• Charter

Why Airports Manage Roadways• Public Safety• Customer Service• Curb Efficiency

Ground Transportation Issues• Transportation Network Companies (TNCs)

• Current fee allocation is unbalanced

• Ground transportation is operating at a loss

$35 MillionAnnual Capital and O&M

PHX Sky Train Operations $ 9.0 millionCity Staff $ 8.9 millionRoadway Capital Expenses $ 6.7 millionPolice $ 5.1 millionContract Services $ 3.4 millionLandscaping $ 1.6 millionTOTAL $34.7 million

Ground Transportation Annual Costs

*Numbers are approximate

Commercial Ground Transportation CostsPHX Sky Train Operations $ 0.8 millionCity Staff $ 4.3 millionRoadway Capital Expenses $ 2.0 millionPolice $ 0.4 millionContract Services $ 2.5 millionLandscaping $ 0.1 millionTOTAL $10.1 million*Numbers are approximate

Current Ground Transportation Costs

Expenses Attributed to Commercial GT: $ 10 million

GT Industry Currently Pays: $ 6.3 million

Annual Loss to Aviation Department: $ 3.7 million*Numbers are approximate

Unbalanced Fee StructurePercent Total Trips (FY2015) Current Fee Allocation

Field Enforcement Additional staff resources

Policy RecommendationAVI System

Enhance infrastructure at curbs to identify pick-ups for all operators

Trip LogicCreate grace period for inter-city

providers

Pick-Up LocationImplement 25% parking discount for

prearranged operators

Vehicle Inspections Annual 19-point safety inspection by ASE certified mechanic or approved equivalent

Policy RecommendationImplementation Schedule

Fees effective Jan. 1, 2017 Three-year phasing

Vehicle Size1-8 seats

9-23 seats24+ seats

Alternative Fuels10% discount per trip to vehicles of permitted providers using dedicated

alternative fuels

Background Check Option 1

Fingerprint-based check with federal government Security Threat Assessment (STA)

Option 2

Enhanced name-based check with STA and audit

Background Check

Additional Airport Oversight:• Alternate pick-up locations• Field enforcement• Independent Audit – Up to 10% driver pool per month

Option 3 RequirementsIdentity Verification

7-Year, Multi-jurisdictional Local and National Criminal Background CheckNational Sex Offender RegistryMotor Vehicle History Check

Valid Driver's License

Fee Schedule for Current Companies2017 2018 2019

Seats Fees Seats Fees Seats Fees

1-8 9-2324+

$2.75$3.50$7.50

1-89-2324+

$3.25$4.25$9.00

1-89-2324+

$4.00$6.00

$11.00

• Fees based on pick-ups only

• New companies pay 2019 rates

• Beginning in 2020, fees increased at lesser of CPI or 3%

($6,000,000)

($5,000,000)

($4,000,000)

($3,000,000)

($2,000,000)

($1,000,000)

$0

Net Losses from Trip Fee Phasing Concepts

Original Proposal

2015 Net Loss($3.7 million)

2017 2018 2019 2020 2021

$0

($6,000,000)

($5,000,000)

($4,000,000)

($3,000,000)

($2,000,000)

($1,000,000)

$0Net Losses from Trip Fee Phasing Concepts

Original Proposal 3-Year Phased

2015 Net Loss($3.7 million)

2017 2018 2019 2020 2021

$0

($6,000,000)

($5,000,000)

($4,000,000)

($3,000,000)

($2,000,000)

($1,000,000)

$0Net Losses from Trip Fee Phasing Concepts

Original Proposal 3-Year Phased 3 Year Phased (Modified)

2015 Net Loss($3.7 million)

2017 2018 2019 2020 2021

$0$0

Policy Recommendation

Americans with Disabilities Act (ADA)

All providers meet ADA requirementsVan and Taxi: 5% ADA vehicles; 24/7 availabilityGT operators must fulfill ride or timely arrange

for An alternate provider

Auto Insurance

AZ State minimums, plus UIMCity named as additional insured

AM Best RatingCoverage at all times on airport property

Medical/Driver Training

Follow DOT regulations for medicalEncourage defensive driver training as

a best practice

Policy RecommendationDriver

IdentificationAirport-issued placard or digital network ID

Data Reporting

AVI or GPS

Vehicle Identification

Airport-issued decal or trade dress

Proposed Timeline• 60-day public posting per A.R.S. 9-499.15 – March 2, 2016

• City Council: Adopt related ordinance – May 4, 2016

• Policy effective 30 days after council approval

RECOMMENDATIONRequest approval of proposed GT policy which:

• Reallocates fees in a fair and equitable way• Provides a safe, modern, and flexible framework to

accommodate all operators• Positions Sky Harbor to support commercial ground

transportation needs for the future