1. On-demand Dispatch Services atMineta San Jose International Airport September 10, 2007 Bob Lockhart Airport Operations Manager

2. 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

3. 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

4. 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

5. 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

6. 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

7. 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

8. Taxi San Jose • Board of Directors from the Industries • Representatives from ConVis, 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

9. 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

10. 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

11. 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

12. 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

13. 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

14. 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!

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