Commercial Ground Transportation at Airports: Best Practices (2015)

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134 Selling and Implementing the Solution This chapter describes the best strategies for selling the selected best practices to those who must approve or support their implementation and the subsequent implementation of these best practices. Commercial ground transportation decisions often affect a large number of users, from the traveling public to the com- mercial ground transportation drivers and owners. While the airport staff who oversee the day-to-day operations of ground transportation at the airport may be responsible for identifying problems and developing plans to improve these services, the implementation of many best practices requires changes that must be approved by those higher in the administrative hierar- chy of the airport. Therefore, it is important for airport staff to develop a strategy for selling and implementing the solution to any concerns they identify. Four key stakeholders that should be considered in this process are senior airport management, the commercial ground transportation providers and drivers, the traveling public, and elected officials or airport boards/ commissions. Convincing Senior Airport Management Senior airport management are typically less involved with the day-to-day management of commercial ground transpor- tation and more concerned with the policies, plans, and strate- gies of the airport’s ground transportation plan. Thus, airport staff must demonstrate how their proposals will improve upon the airport’s current ground transportation services, affect overall airport operations (if at all), and address the financial implications of these recommended changes. Documenting the Problem or Need for Improvement While a problem and its causes may be evident to airport staff (e.g., if there have been a large volume of customer complaints regarding the wait times for taxicabs), this problem may not be evident to a person who is not involved in commercial ground transportation on a day-to-day basis. To clearly understand the extent of the issue, detailed information on the problem must be gathered and documented. For example, with long passenger wait times for taxicab service, one might start with collecting data on how often and why this is happening by interviewing ground trans- portation operations and management staff, reviewing cus- tomer complaint data, auditing the provider’s trip records, and/or using airport staff or mystery/secret shoppers to wit- ness or use the ground transportation service and record their findings. Such techniques will assist in determining the time(s) of day when the excess wait times are occurring and possible factors contributing to this problem. This process could include depicting how taxicabs are called up from the hold lot, gathering travel times between the hold lot and the terminal boarding area, and evaluating the passenger load- ing procedures. Are there variations in time with different taxicab dispatchers or starters? If so, why? With this documentation and data, airport staff can gain a better understanding of the problem and develop recom- mendations that address the issue at hand. Analyzing the Data Once data regarding the problem have been gathered, air- port staff must analyze it, determine the key factor(s) contrib- uting to the problem, develop and evaluate potential solutions, and recommend a preferred solution based on these findings. For example, following the documentation suggested for taxicab passenger wait times, the problem could be isolated as a traffic congestion problem delaying taxicabs traveling from the hold lot, inadequate response time for taxicabs coming from the hold area, too few taxicabs, poor passenger load- ing procedures, and/or insufficient or ineffective starters. Approaching a recommendation this way demonstrates that C H A P T E R 1 0

135 all possible causes of the problem have been considered prior to developing a recommended solution. Developing the Recommendation Some changes (e.g., minor changes to operational pro- cedures) can be implemented by staff and do not require the approval of senior management. Other changes—particularly those involving capital improvements or major changes to existing operational procedures—require the approval of senior management. The process for obtaining management approval varies at each airport and may differ depending on the airport’s size and management structure, the cost of the recom- mendation, and the extent of the required operational changes. When recommendations to senior management are required, they should be in the form of a written document containing a brief memorandum conveying the substance of the recom- mendation and the underlying problem, a one-page executive summary of the report documenting the recommendation, and information regarding any financial implications. Accompany- ing this document should be the supporting material, includ- ing key data and the analysis methodology. Depending on the preferences of senior management, a PowerPoint style presen- tation may supplement the report. This document should be prepared such that senior management can share it with the airport board/commission with few, if any, modifications. Thus the text should avoid the use of technical terms or acronyms and, if possible, include supporting graphics or charts. Working with the Providers and Drivers A common question among airport ground transportation managers is when and how to involve providers and drivers in solving a problem or implementing a new process or proce- dure. If the problem or suggested improvement comes from either the provider’s management or the drivers themselves, then they are already involved in the process and should con- tinue to be involved. For many issues such as the inability of passengers to find a provider’s loading areas, this is the best process. It is best to work with provider management through meetings where notes are taken and circulated to others who may not have been able to attend the meetings. In most cases, with the major exception being taxicabs at airports with an open access system, these providers will communicate any changes in process or procedures to their drivers once they have been implemented by the airport. At airport with an open access system, working with driv- ers typically refers to taxicab or shared-ride van drivers due to the independent contractor nature of these industries. Often there is an association of taxicab drivers that should be addressed and kept informed on a regular basis. Regular monthly or quarterly meetings with taxicab association lead- ership, if one exists, and/or quarterly meetings in which all taxicab drivers are invited are standard communication tools for feedback from the drivers regarding any issues with the proposed changes. At airports with a concession contract with one or more taxicab or shared-ride van company, the meetings are normally held with the concessionaire’s repre- sentatives or on-site general manager, and normally not with the drivers. Whether coordinating with provider management or drivers, any changes in procedures or operating rules must be in writing and posted where all drivers can and should see them. Additionally, a document covering airport facili- ties, rules, and operating procedures, their use by drivers, and any incentives and penalties for drivers needs to be kept up to date, and republished whenever a significant number of changes are being made or have been made. Working with Elected Officials and Airport Boards/Commissions Elected officials and board/commission members setting and adopting policies for airports are used to having to make diffi- cult decisions with broad impacts on a large number of people. Commercial ground transportation is no exception. As the pol- icy makers are trying to balance the goals of convenience, safety, and dependability for the customers, they must also be mindful of the time, effort, and resource allocation issues impacting air- port management and staff. They must also take into account concerns, suggestions, and ideas from the general public. Decision makers may sometimes see an initiative, program, or action adopted by another jurisdiction, and want to adopt it for their own. However, these programs and policies are not always replicable, for political or other reasons. For instance, one jurisdiction may adopt programs that specifically allow targeting of small, minority, and women-owned businesses, but a different jurisdiction may be prohibited from doing so. It is important to understand the values, goals, and politi- cal contexts in which the decision makers operate. Most intel- ligent decision makers want to know the pros and cons of an issue, whether they agree with the perspectives or not. Having more information allows the decision maker to make better decisions and he or she will typically appreciate the infor- mation, even if it differs from what he or she might think. Legislators and elected officials do not like to be surprised and want to show they have done their due diligence; con- sidered all relevant, available information; and appropriately weighed competing concerns. Best practice is to always pro- vide them with the most timely, accurate, and relevant infor- mation available—preferably in advance of a public meeting or workshop.

136 of the airport should have an ongoing working relationship with state legislators and state agencies such as a Public Ser- vice Commission, should one exist. Working with the Traveling Public One of the most important aspects of dealing with the trav- eling public is providing information regarding commercial ground transportation options and where to find them on the airport. Many users of the airport’s commercial ground trans- portation system(s) are not familiar with the local region, the available surface transportation options serving their des- tination, the costs of these options, or where to board these transportation services. Therefore, signage and information are important for both the customers and the providers of these services. This ground transportation information and signage should avoid using local terminology unfamiliar to visitors (e.g., airporters or trams). If the airport serves inter- national flights, it may be beneficial to offer ground transpor- tation information in multiple languages in the international arrivals hall. The use of customer surveys, customer focus groups, in-vehicle customer comment cards, and a review of questions asked at the information counter of the airport can provide important feedback for airport staff regarding what additional signage and information the traveling public needs in order to make connections with their ground trans- portation service providers. Smartphone technologies are increasingly being used to disseminate information. Airport ground transportation staff should work with IT professionals to integrate the information provided by ground transportation providers with that of their own airport website or smartphone app. At a minimum, the airport website (and app if one has been developed) should provide links to the various ground transportation operators. An airport app might additionally contain information regard- ing destinations served, standard fares, typical travel times, departure schedules, and even past user comments regarding commercial ground transportation services. Implementing the Solution The appropriate implementation process depends on what best practices the airport is implementing. Different imple- mentation processes are used to revise rules and regulations, modify commercial ground transportation fees, improve facilities used for passenger pickup/drop-off areas or vehicle staging, or deploy new technologies. Obtaining Budget Approval Implementing a solution can require the expenditure of airport operating funds (e.g., to hire new staff or contractual Airport staff must also understand the goals and opinions of stakeholders, including industry groups, unions, com- munity members (representing themselves or represented by neighborhood and community groups), local businesses, chambers of commerce, regional groups, and ethnic cham- bers. Maintaining good relationships with these stakeholders on an ongoing basis enables staff to provide the most com- prehensive information and to prepare and support decision makers in community, board, and commission meetings. Staff can utilize focus groups, surveys, and social media tools to help obtain information on opinions and suggestions regard- ing any proposed changes. Airport staff responsible for com- munity relations and public relations may be able to offer helpful suggestions in this area. Ground transportation staff must work closely with gov- ernment affairs staff who monitor legislation at the state and federal level. State and federal elected officials may be able to adopt legislation (e.g., regulation of TNCs, enforcement of improper solicitation, use of alternative fuel vehicles) that will help local airport operators achieve their goals and take advantage of available grants, funding, and other financial resources. Ultimately, the decision makers must balance a wide variety of interests to achieve innovation and efficiency that provides the most benefit for all who are involved. Working with Local and State Regulatory Agencies Airport staff should work closely with their local agencies. The airport is often the largest single generator of commercial ground transportation trips in the region; therefore, an airport official is typically included as a representative on the commis- sion or governing board of the local regulatory agency. If this is not possible then, at a minimum, airport staff should work closely with the board or commissioners to inform and educate them on airport ground transportation rules, regulations, and permitting processes. As stated earlier in this guidebook, state or local agencies typically establish the procedures whereby a transportation company can obtain operating authority. Once a company has obtained this authority, there is every expectation of serving customers going to and from the airport. The airport, how- ever, is the agency that must establish how and under what conditions and fees these operators may conduct business or work at the airport. Airport passenger safety, traffic flows, ser- vice quality, and recovery of facility costs, among other con- cerns, are typically not part of a local regulator’s charter and must be addressed by the airport operator. At the state level, airport staff need to stay well-informed of any changes in the law or regulatory hearing which may affect airport operating rules and regulations. The legislative staff

137 Modifying Commercial Ground Transportation Permits or Fees The steps required to implement new commercial vehicle permits or fees will vary based upon the powers granted to the airport director, the type and cost of the permit, the type and amount of the proposed fees, and whether the permits or fees are new or are modifications to existing fees. The required steps typically include the following: • Review the permit process and fees charged at other air- ports. These airports include those considered peer air- ports in terms of size, geographical location, or customer market. • Determine any needed changes/improvements to airport facilities. These may include installation of an AVI system or other technology to monitor commercial vehicle trips or other changes. (This step may not be required if staff are proposing changes to existing fees.) • Determine the amount of the proposed fees. For exam- ple, staff can calculate the per-trip fee required to fully recover the airport’s costs of providing and maintain- ing the facilities used directly by the commercial vehicle operators, or the amount of privilege fee (e.g., percent of gross revenues) that represents the benefits an off-airport rental car or off-airport parking business receives from the presence of the entire airport. • Prepare proposed changes to airport regulations or rules. With the assistance of airport legal staff, prepare draft changes to airport regulations or rules to support the implementation of changes to the permit process or fees. • Consider the implications to airport revenues. Consider the airport’s ability to maintain, preserve, and enhance airport revenues in order for it to remain financially self- sufficient as required by the FAA and its bond holders. After reviewing the implications, it may be appropriate to revise the fees or the implementation schedule due to its estimated impact on the airport’s condition. • Consider the implications to commercial ground trans- portation businesses. Review the operators’ ability to pass the fees on to their customers or absorb them in their costs of doing business (which may be a function of airport or city regulations), and compare the amount of the proposed airport fees in relation to the total costs the business charges their customer (e.g., the cost of renting a car, a hotel room rate, or daily parking fee). Ensure competitive companies are charged equivalent fees (e.g., all limousine or charter bus/van operators pay equivalent fees). If the fees repre- sent a significant increase, consider introducing them in a phased manner to allow the commercial businesses an opportunity to gradually adjust their business model. After reviewing the implications, it may be appropriate to revise the fees or the implementation schedule in consideration of services) and/or capital funds (e.g., to purchase new equip- ment or to construct new or improved facilities). Understand- ing the operating and capital budgets processes is important to improve the chances of approval. Operating budgets are developed and approved annually for each airport department or business unit, which could affect personnel, contractual services, and/or other expense line items for the department. If new staff are needed, there is often a need to coordinate with the human resources (HR) department to develop job descriptions, refine the organization chart, and hire the staff. Capital budgets are also approved annually and tend to be part of a 5-year capital improvement program. For some airports, the airline agreement may require approval of capital improvements by the signatory airlines. In these cases there is often a need to demonstrate operational or capital savings over time and the associated impact on airline rates and charges. Depending on the size and complexity of the airport and the nature of the proposed solution, it may be necessary to coor- dinate with the airport HR, legal, finance, properties, planning, engineering, information technology (IT), and construction departments. Airport management must evaluate and prioritize requests for operating and capital improvement budgets considering the impacts upon passenger health/safety/security; customer service levels; revenue generation; operational savings; ability to maintain and preserve existing assets and infrastructure; government mandates; and, other factors. Thus when seek- ing funding approval, it is helpful to demonstrate how the proposed best practice or solution achieves these goals using information contained in this guidebook or prepared while planning and selling the solution. Revising Rules and Regulations First drafts of new or revised rules and regulations can be written using, as a starting point, similar regulations prepared by other airports or other airport departments. Typically the drafts must be reviewed and approved by airport legal staff and by airport executive management. The regulations may also need to be reviewed and approved by the airport board or by city council depending on the airport’s organizational structure/sponsorship and the nature of the new or revised regulation. The rules of the airport sponsor and the new or revised regulation may also trigger the need for a public meeting or hearing to review the proposed change(s) prior to their being brought before the airport board or city council, again depending on the airport’s sponsorship and the nature of the new or revised regulation. Airport legal staff are typi- cally the best source to outline the specifics of the approval process. If the new regulations are expected to be controver- sial, guidance can be obtained from senior management or community relations staff.

138 hold lots/staging areas may require retaining an architect or engineer and a contractor. Some airports retain one or more architects, engineers, and contractors on an on-call basis who are available to provide the required services and in order to simplify the selection process and maintain continuity. Airport planning and engineering staff can assist and may lead the procurement of an architect/engineer (A/E) and contractor and assist with the choice of a traditional design and construction process versus awarding a design-build contract. ACRP Report 42 (Sustainable Airport Construc- tion Practices) and Report 116 (Guidebook for Successfully Assessing and Managing Risks for Airport Capital and Main- tenance Projects) and other publications contain relevant information. If a traditional process is to be used and the A/E and construction contractor are to be selected through sepa- rate competitive awards, the required steps typically include the following: • Develop a problem statement. This explains why the airport wishes to implement the improvement project, summarizes the airport’s goals, and describes the project’s desired outcome (e.g., a longer curbside to accommodate ten taxicabs and a starter). The problem statement may include an outline of the tasks to be performed and desired schedule. • Develop RFP for A/E. This is a formal process requesting the A/E to indicate their understanding of the project, their approach to conducting the work, the qualifications of the individuals who will perform the work, and the experience of the prime and any sub-consultants. Typically the prob- lem statement is incorporated into the RFP. Most RFPs also state the airport’s contract and liability/insurance provi- sions and certain legal requirements. As this process is frequently used by airport planning and engineering staff, they can provide valuable guidance and prior examples. • Issue RFP, review proposals, select and award contract. Upon receipt of the proposals, airport staff select the A/E and award a contract. Airport planning and engineering staff or the procurement department can provide guidance on the evaluation and selection process and those respon- sible for performing these tasks. • Monitor work of A/E. After award of a contract and issu- ance of a notice-to-proceed, A/Es are typically required to submit preliminary, draft, and final documents for airport staff ’s review. For design and construction specification documents, these submissions typically occur when the designs are 10%, 30%, 60%, and 90% complete prior to the final submission. Often airport staff request that these sub- missions be accompanied by an estimate of probable cost to ensure that the improvement project remains within the original budget. Upon acceptance of the final construction documents, the airport advertises and requests bids from the need for such businesses to be given an opportunity to make a reasonable profit. • Review the proposed permit process changes and fees with representatives of the commercial ground transportation business. After receiving their input, it may be appropriate to revise the fees or the implementation schedule to reflect constructive suggestions offered. If new or increased taxicab fees are proposed at an airport having an open system, it may be appropriate to review the proposed fees with repre- sentatives of the taxicab drivers as well as with representa- tives of the companies. If shared-ride vans operate under an open business relationship, it may be appropriate to conduct similar review with the van drivers. In some communities, meetings with commercial ground transportation business owners and drivers to discuss new fees (or changes in regulations) can be contentious and require careful preparation. It is helpful to anticipate the likely ques- tions and comments from those affected by the new fees, pre- pare potential responses in advance, and conduct the meeting in a professional and respectful manner. • Develop recommended changes to airport fees and/or regulations or rules. With the assistance of airport legal staff, prepare recommended changes to airport fees and/or regulations or rules to support the implementation of the changes to the permit process or fees. These changes may ultimately be presented to airport management or board members for approval, depending on each individual air- port’s requirements. • Present the proposed fees to airport senior management and the airport board or city council as necessary. Pre- pare supporting documentation to succinctly describe the fees and permit changes (if any), the implications to airport operations and revenues, the feedback received from the commercial ground transportation businesses, and exam- ples of the permit process and fees charged at peer airports. If the presentation is to be made at a public meeting, it is advisable to review a draft proposal with management and board representatives beforehand. Improving Commercial Ground Transportation Facilities The steps required to improve or modify existing airport facilities to better accommodate commercial ground trans- portation customers and the business serving them will vary depending on the scale and type of improvement. Minor improvements such as sign fabrication, pavement and curb markings, and minor roadway modifications may be per- formed by airport maintenance staff. Larger improvements such as construction of curbside areas or commercial vehicle

139 ogy or if the technology is to be integrated into the airport’s overall information systems. If airport IT staff are unfamiliar with the proposed commercial ground transportation tech- nology, it is recommended that airport landside and IT staff jointly contact the staff of other airports or transportation agencies that have previously implemented the proposed or similar technologies. These airport staff are typically willing to offer advice and describe their experience with the pro- curement process, the subsequent operation and mainte- nance of the proposed technology, and indicate what changes they would recommend. A key to the successful implementation of a technology or technology based solution is the preparation at the outset of the project of a clear statement of the problem that needs to be solved as well as a description of the desired outcome, rather than the technology to be implemented. Technologies change frequently and there will likely be more than one acceptable solution. By developing a clear goal and functional requirements airport staff can create a valuable tool for evaluating alternatives submitted by vendors. Secondly, while most airport ground transportation systems have a long life expectancy, airports should anticipate that their system will evolve and change over time, so flexibility and expansion capability at a reasonable cost should be part of the evaluation/ selection process. Airports generally follow one of two paths to provide the infrastructure needed for the implementation of a technology based system: • The solicitation can include construction of the infra- structure as part of the technology solution, this “turnkey” approach places all of the responsibility for a successful implementation with a single vendor and takes advantage of the expertise and experience of the vendor and increases the probability of a successful implementation. • The solicitation can exclude the infrastructure work scope and award this work to a separate firm or use in-house staff resources, if available. It is likely that the total cost will be less if the airport retains the responsibility for the infrastructure. The size of the project, expertise of airport staff, and the benefits of direct airport supervision will all be factors in the decision on the best approach. As with facility improvements, deploying new technologies may require retaining an engineer, preparing design docu- ments including plans and specifications, issuing an RFB, and awarding a construction contract using the processes described above. However, if the improvement does not require physical construction, the contract may be awarded directly to a hardware and/or software vendor rather than to a licensed construction contractor. In these instances, the airport may issue a request for statement of qualifications or qualified contractors. The A/E may provide assistance in reviewing the resulting bids and confirming that the low bidder is qualified to perform the work. Once airport staff are satisfied with the bid, they typically award the contract to the apparent low bidder but the award process may vary among airports depending on the nature of the project. Again, airport engineering staff can guide and assist during this process, and may lead these efforts. • Monitor work of contractor. After award of a construction contract, airport staff and/or a construction management firm under contract with the airport normally inspect the work on a regular basis to ensure that the construction is occurring in accordance with the original designs and specifications. Unexpected conditions may be discovered during the construction process requiring change orders and increasing the costs of construction. Most airports have standard procedures for monitoring construction, approving change orders, and reviewing and approv- ing requests for payment submitted by a contractor. Air- ports typically retain a portion of each payment pending final approval of the project. Normally airport staff and/ or a construction management firm under contract with the airport formally inspect the work upon completion of construction and notify the contractor of any uncom- pleted or unsatisfactory items (i.e., a punch list). When all punch items have been completed satisfactorily, the airport releases payment. Again, the specific steps and procedures vary from airport to airport depending upon the nature of the improvement, the processes used by the airport, and airport staff resources. • Before and after study. To document the benefits of the improvement, it is desirable to monitor the commercial ground transportation operations or activity before and after implementation of the improvement. A before and after study might measure customer waiting times for taxi- cabs or other vehicles, roadway congestion, customer (or driver) satisfaction with a new service or facility, and/or changes in airport revenues or operating costs. Deploying new technologies. The steps required to improve or modify an airport technology to better manage and control commercial vehicles or monitor commercial vehicle activity will vary depending on the scale and type of improvement. The required steps parallel those required for facility improvements as they frequently require design and construction with the key difference being the emphasis on procurement of new software or hardware rather than facility construction or improvements. As with airport facility improvements, airport planning and engineering staff can assist and may lead the design and construction process. Depending on the type of technology, airport IT staff may be involved in the process, particularly if they will be responsible for maintenance of the new technol-

140 the software, and demonstrating its successful operation. For complex systems, there may be a requirement for factory tests before the equipment is shipped to the field, and then demon- stration of the successful operation of specific components or systems prior to a required 30-day or 60-day demonstration that the entire system is operating satisfactorily and complies with the original specifications. statements of interest to prospective vendors to ensure that they have the necessary qualifications and experience before issuing the RFBs. Once a contract is awarded to a technology vendor, the process is similar to those described above with the vendor submitting preliminary designs (or equivalent material) at pre- scribed milestone points, installing the equipment, providing