Ground Transportation Trip Fees Recent Changes at SJC

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Ground Transportation Trip Fees Recent Changes at SJC

Ground Transportation Trip Fees Recent Changes at SJC

SJC Trip Fee History • Trip fees first assessed in 1993 • For pick-up

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

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.

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

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

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

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

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?

Ground Transportation Trip Fees Questions?