Ground Transportation Trip Fees Recent Changes at SJC

SJC Trip Fee History Trip fees first assessed in 1993 For pick-up trips only Rate change in 2009 Charge trip fees for pick-ups & drop-offs Included reduced trip fees for clean fuel vehicles Charged different rates for vehicles carrying 25 passengers or more

2011 Rate Changes Off-Airport Parking Operators Changed from $1.50 per trip plus 8% of gross revenue to $7.00 per trip ($6.00 with clean fuel vehicle) Applies to any vehicle that transports passengers and baggage between the Airport and any commercial parking lot, regardless if it also provides other GT services

Rate Calculation The total revenues generated via the 8% of gross plus $1.50 trip fees were calculated to find a base revenue number The base revenue figure was divided by the actual trips taken to give a current revenue per trip The fee was established with the clean fuel vehicle at an even dollar amount just above the current revenue per trip

Rationale The new method of calculation eliminates the need to acquire and audit revenue numbers, which in some cases were considered questionable This rate provides the current level of revenue plus some growth factor to maintain cost recovery

Rationale The changes address the other businesses that also operate parking operations, many of which are hotels, which have not been permitted within the off-airport parking operator permit structure, equalizing the treatment of all off-airport parking operators

Results The rates took effect July 1, 2011 One smaller company encouraged customers to complain, who when fully explained understood the change Another company is now charging their customers a trip fee Two hotels have brought in a vehicle for their parking business so their more frequent hotel shuttles can return to the $1.50 per trip rate

Challenges Ahead Ensuring that all GT operators are treated appropriately, based on their use of the Airport Regular review of all GT rates to ensure cost recovery, at a minimum, for the GT program and infrastructure expenses Maintain minimized administrative processes to meet staffing capabilities

Ground Transportation Trip Fees Questions?