On-demand Dispatch Services at Mineta San Jose International

On-demand Dispatch Services at Mineta San Jose International Airport September 10, 2007 Bob Lockhart Airport Operations Manager

About SJC • • Owned and operated by the City of San Jose 10. 8 million passengers in FY 06/07 Two terminals, 13 airlines $1. 3 billion Airport construction program under way – New terminal, concourses, consolidated rental car facility, parking and roadways – Expected completion in 2010

Historical Background • Open taxi system prior to 1994 – Many service issues, lack of standards • Concession Agreements – 1994 – SCCTA and Yellow Cab – 1996 – Yellow Cab and United Cab – 2002 – Yellow Cab and United Cab • Mayor’s Taxi Task Force in 2000 • Taxi Advisory Team - 2001 to present

In Search of a New Model • Consultant was hired in 2003 to assist Taxi Advisory Team and City Staff with developing a new taxi model for the City and the Airport • Goals of Model were: – Improve economics for the industry – Improve service delivery off-Airport – Maintain or improve Airport service – Open Airport to more companies and drivers

The New Model • Airport opened to all taxi companies – Contracts issued to all 14 companies in City • 300 alternate day Permits issued to Airport drivers – 195 to individual drivers – each must affiliate with a contracted company – 105 to companies, reallocated after 2 years • Minimum of 4 trips per day – 70% of days, both on- and off-Airport days

The New Model • Standards set within Contracts and Permits with Liquidated Damages capability • Incentive offered to use CNG or other alternative fuel vehicles – Every day access to all certified vehicles • Requires monthly reporting by companies of off-Airport trips • Allows for transferability between drivers for vacation/absence periods

The New Model • Airport required a dispatch company to manage the 14 companies and drivers • RFP conducted for On-Demand Dispatch Services Agreement – Taxis and door-to-door shuttles included • No qualified responses for first RFP • Second RFP received four responses – Taxi San Jose approved in May 2005

Taxi San Jose • Board of Directors from the Industries – Representatives from Con. Vis, labor council, driver’s union, drivers, taxi companies and a shuttle company • Hired a Limousine company to run the dispatch operations • Started operations September, 2005 • Changed management structure in Spring 2006, brought employees in-house

Taxi San Jose • Installed an electronic trip recording system • Reports daily and monthly trips to City and companies • Has worked to improve appearance of staff and presentation to customers • Manages day to day activities of taxis and shuttles • Bi-weekly meetings with Airport staff

Has it Worked? • Depends on who you ask! • Administrative nightmare for Airport staff – 300 permits, 12 taxi and 37 shuttle contracts – Taxi San Jose oversight and management – Transferability control and organization – Management of permit trip obligations – Still have job actions and in-fighting – High percentage of GT staff time is on taxi and shuttle monitoring and oversight

Has it Worked? • Not all companies on-board with dispatch company • Complaints about lack of expertise of starters and dispatchers, report accuracy • Customer service issues still on peak evenings, especially Sundays • Communications challenges between GT staff and front line starters

Has it Worked? • On the other hand…… – On-Airport trips have increased from 5. 5 per day in December ’ 05 to 7. 6 in June ’ 07 – Off-Airport trips have increased from 5. 9 in December ’ 05 to 6. 8 in June ’ 07 – CNG/Alt Fuel trips have increased from below 6% prior to the model to 42% in July ’ 07 • 122 certified vehicles compared to less than 30 – Strong results in a recent survey of customers towards better customer service

What’s Next? • One-year extension for Taxi San Jose • Extensions for 12 Taxi Companies – 15 vehicles and 15 drivers – 25% CNG trips – Customer service training complete – Computer aided dispatch system – Paid up on all fees • Extensions for taxi permits – Reallocation of Company permits

What’s Next? • Continued monitoring of Taxi San Jose – One year extensions available or RFP • Reevaluation of costs and fee structures • Additional work within Taxi Advisory Team addressing industry issues of leaseability, transferability and caps • Continued work on issues between taxis and shuttles • Survive the construction with staff and GT program intact!

Questions? Bob Lockhart Airport Operations Manager (408) 277 -5249 Blockhart@sjc. org