Broward County Commission Regular Meeting


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AI-25814 5.       
Meeting Date: 12/12/2017  
Director's Name: Mark Gale
Department: Aviation Division: Operations

Information
Requested Action
MOTION TO APPROVE Second Amendment to the Airport Shared Ride and Limousine Service Concession Agreement between Broward County and Yellow Airport Limousine Service, A Joint Venture d/b/a GO Airport Shuttle and Executive Car Service, to extend for a one year period commencing on January 1, 2018, not to exceed 12 months, and ending on December 31, 2018; and authorize the Mayor and Clerk to execute same.

ACTION:  (T-10:27 AM)  Approved.
 
VOTE: 8-0.  Commissioner Ryan was not present during the vote.
Why Action is Necessary
Extending the term of an agreement requires the approval of the Broward County Board of County Commissioners ("Board").
What Action Accomplishes
Approves a one year extension to the Shared Ride and Limousine Service Concession Agreement with Yellow Airport Limousine Service, A Joint Venture d/b/a GO Airport Shuttle and Executive Car Service ("Go Shuttle") to continue to operate at Broward County's Fort Lauderdale-Hollywood International Airport ("FLL").
Is this Action Goal Related
Previous Action Taken
None.
Summary Explanation/Background
THE AVIATION DEPARTMENT RECOMMENDS APPROVAL OF THE ABOVE MOTION.

This action approves a one year extension to the Shared Ride and Limousine Service Concession Agreement with Go Shuttle to continue to operate at FLL in order to provide the Broward County Aviation Department ("BCAD") with an opportunity to review the ground transportation environment and to solicit a Request for Proposals ("RFP") for these shared ride services.

The Office of Economic and Small Business Development (“OESBD”) established an Airport Concession Disadvantaged Business Enterprise (“ACDBE”) goal of 14% for this agreement. Go Shuttle committed to 30% ACDBE participation. To date, Go Shuttle has paid $718,105 to ACDBE firms, for a 30% participation (Exhibit 3).

On December 4, 2012 (Item No. 5), the Board approved the Airport Shared Ride and Limousine Service Concession Agreement between Broward County and Go Shuttle ("Agreement"), which provides for the non-exclusive right to operate a shared ride and limousine service concession at FLL for a five year period from January 1, 2013, and terminating on December 31, 2017. The primary functions of this Agreement involve the provision of shared ride services from assigned curbside locations at all four FLL terminals where Go Shuttle can stage vehicles for immediate loading and solicit potential customers.

On October 13, 2015 (Item No. 39), the Board requested that staff meet with Go Shuttle, Yellow Cab and other entities who have Agreements at FLL so as to come to friendly terms that are fair and in compliance similar with other Transportation Network Companies ("TNC").

On November 10, 2015 (Item No. 3, Public Hearing), the Board adopted proposed Resolution No. 2015-644 amending Chapter 39 of the Administrative Code to reflect changes to fees for ground transportation services at FLL, and subsequently set the rate for Go Shuttle at $4.50 per pick-up effective December 1, 2015.

As of December 1, 2015, Go Shuttle was paying a privilege fee for its operations at FLL based on the greater of a Minimum Annual Guarantee ("MAG") of $500,000 as established in the Agreement, or a per trip fee of $4.50 set forth in Chapter 39 in accordance with Resolution No. 2015-644 described above.

On June 7, 2016 (Item No. 5), the Board approved the First Amendment to the Agreement. This First Amendment served three functions: 1) the County was no longer required to provide Go Shuttle with a kiosk in the baggage claim area of each terminal at FLL; 2) the MAG was removed as a requirement of the Agreement and Go Shuttle now pays a pick-up fee of $4.50; and 3) the security deposit was adjusted from $250,000 to $12,000 based on the specific direction of the Board. Currently, Go Shuttle pays the County based on the number of trips at FLL (pick-up only) in the same manner as all other prearranged operators. 

The proposed Second Amendment approves a one year extension to the term of the Agreement for a period not to exceed 12 months, commencing on January 1, 2018. Since the inception of the original Agreement in 2012, FLL has experienced an increase in roadway congestion due to regular ground transportation operators and the advent of TNCs operations. The extension will allow the BCAD to continue offering shared ride services at the terminals at FLL, while reviewing and addressing significant roadway congestion issues, implementing a reallocation of ground transportation services and preparing an RFP to engage a firm to provide future shared ride services. 

The Federal Aviation Administration approved the proposed one year extension to the Agreement.

On November 21, 2017, BCAD held a negotiation meeting to discuss the proposed Second Amendment. The negotiation meeting was attended by representatives from Go Shuttle, the County Attorney's Office, OESBD and the Purchasing Division.

The proposed Second Amendment was reviewed by the Risk Management Division and approved as to form by the Office of the County Attorney.
Source of Additional Information
Mark E. Gale, A.A.E., CEO/Director of Aviation, (954) 359-6199

Fiscal Impact
Fiscal Impact/Cost Summary:
The estimated annual revenue from the proposed extension to this Agreement is $335,000.
Attachments
Exhibit 1 - Agreement Summary
Exhibit 2 - Second Amendment
Exhibit 3 - OESBD Compliance Memorandum


    

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