PROPOSED BALBOA PARK TRAM SERVICE TO COST CITY $3.3M
The Balboa Park Tram, which conveyed passengers around the central portion of the San Diego landmark before taking a pandemic-related break, could be out of service indefinitely if city officials don’t agree to a $3.3 million, five-year deal with previous operator, Ace Parking.
Thursday, the city’s Environment Committee took the initial step to approve a new service agreement. If accepted by the full council, the contract will authorize the city to pay Ace Parking up
to $665,700 per year for tram drivers, maintenance and repair needs. The sum is substantially higher than the amount allocated to operations under the previous agreement, which expired earlier this year.
Ace Parking was picked to renew its tram deal with the city following a formal solicitation process that started in March 2018 and resulted in no other bidders. The contract was scheduled to be heard earlier this year but was pushed back when City Council meetings were temporarily suspended. Now, should council members disapprove the deal, tram operations would cease.
Dating to the 1990s, the Balboa Park Tram in its current form ports park-goers from Inspiration Point, east of Park Boulevard, across the street on a loop through the interior of the park. It normally operates daily with pickups every 10 to 15 minutes — from 9 a.m. to 6 p.m. in the summer and through 8 p.m. in the fall and winter — and is free to ride. Service was suspended earlier this year because of state and county health orders.
The city first contracted with Ace in 2013 to operate a new f leet of trams and attached trailers at a cost of $350,000 per year. At the time, it also agreed to finance the purchase of the vehicles. The decision was framed as one that would cost the city more money in the short term, but allow for increased ridership and create potential savings once the trams were paid off. However, the city-owned trams are limited in where they can travel, meaning the route is restricted to park roads, save for the Park Boulevard crossing, and cannot extend to the west side of Cabrillo Bridge. Annual debt service of the trams is around $129,629, with the last payment due this December, city staff said in a report prepared for the Environment Committee.
Before going on hiatus, the tram system was averaging 36,500 riders per month and around 438,360 per year, said Tim Graham, a spokesman for the city’s Parks and Recreation department. Previously, when operated by Old Town Trolley Tours, the park shuttle system averaged 25,100 riders per month and 301,100 riders per year, he said.
The newly proposed contract picks up where the old one left off with the same schedule and the same route. What’s different, however, is the anticipated cost. The agreement allows the city to spend $665,700 per year — $402,406 from the transient occupancy tax budget and $263,294 from the Parks and Recreation general fund — or nearly double the amount agreed to in 2013. Increased fees are said to be linked to the cost of keeping the city’s f leet in prime condition.
“The city wants to ensure that the trams are safe for the public and in optimal working order with the understanding that they are now five years older. As such, the higher rates are primarily related to increased preand post- inspections, troubleshooting and maintenance,” Graham said.
With Thursday’s committee action, staff will take the contract to City Council for final approval.