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Airport director outlines growth, Terminal 2 and proposed off-airport parking fee
Summary
Airport Director John Martin told supervisors SFO is seeing 4'5% passenger growth, plans to open Terminal 2 in spring 2011 and proposed a phased 2.5% fee on off-airport parking operators that would generate about $1.5 million for the airport and $225,000 for the general fund; small operators and representatives urged adjustments.
John Martin, director of San Francisco International Airport, presented the airport's budget overview, highlighting passenger growth and investments for the coming year. "We're running currently at a 4% to 5% growth rate in passenger traffic over the previous calendar year," Martin said, and described Terminal 2 as scheduled to open in spring 2011 with associated staffing and security additions.
Martin described airline fees on a per-passenger basis at about $14.14 today, down from $20 a decade ago. He outlined additions in the proposed budget: 74 new positions (including custodial and maintenance hires), funding for SFPD SWAT or additional SFPD officers, and projected an annual service payment to the general fund of about $28.5 million.
Supervisors questioned whether lower airline fees benefitted travelers or primarily improved carriers' margins; Martin said lower fees brought carriers back and increased competition, which generally helped fares. The committee also heard public comments from David Sincotta and Amy Chung, off-airport parking operators who warned a proposed gross receipts tax could impose severe burdens on small operators. Sincotta said operators currently pay about $860,000 a year in loop fees and that the proposed tax could significantly increase their costs; Martin said he has postponed commission action and planned to meet with operators.
Martin said the current staff proposal for an off-airport operator fee was 2.5% in year one and 2.5% in year two and that would produce approximately $1.5 million to the airport and $225,000 to the general fund. He also said the airport planned to consider extensions of fee proposals to hotel operators who promote long-term parking.
The committee asked staff to continue discussions with operators and return with refined options next week.
