Title
Taxi Services Contract Extension
Description
This item requests the Transportation, Infrastructure, and Planning Subcommittee recommend City Council approval to extend the current airport terminal taxi services contracts for two years to provide continuous, on-demand taxi services at Phoenix Sky Harbor International Airport (PHX).
THIS ITEM IS FOR CONSENT ACTION.
Report
Summary
Taxi companies have experienced loss of market share due to rideshare competition while also experiencing significant inflationary cost escalations for fuel, vehicle maintenance, and insurance premiums. Additionally, the taxi contractors were required to meet the terms of the contract including always ensuring on-demand fleet availability throughout the pandemic to guarantee services to the traveling public, while experiencing significantly reduced demand and revenue during that period.
Extending the contracts for two years will allow the contractors adequate time to recover unexpected revenue loss and address increased operating expenses and investment costs of fleet vehicles purchased to support the contracts with PHX.
AAA Cab Service, Inc., Mayflower Cab Company, LLC, and VIP Taxi, LLC are under contract to provide on-demand taxi services to customers at PHX. The current contract term is set to expire on April 30, 2024.
Contract Term
The two-year extension period would begin on May 1, 2024 and expire on April 30, 2026, with no options to extend.
Financial Impact
These contracts generate revenue for the airport through trip fees as specified in Section 4-78 of the Phoenix City Code. No additional funds are required for the two-year extension period.
Concurrence/Previous Council Action
The Planning and Development Subcommittee of the Phoenix Aviation Advisory Board recommended approval of this item on Jan. 2, 2024, by a vote of 3-0.
The full Phoenix Aviation Advisory Board recommended approval of this item on Jan. 18, 2024, by a vote of 6-0.
Location
Phoenix Sky Harbor International Airport, 2485 E Buckeye Road
Council District: 8
Department
Recommendation
This item is submitted by Deputy City Manager Mario Paniagua and the Aviation Department.