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Council approves two-year extension for Balboa Park tram contract to ease paid-parking transition
Summary
The City Council approved a two-year extension with ACE Parking to continue free tram operations in Balboa Park while staff gathers data after a paid-parking rollout. The extension adds $2.8 million and raises the contract total to about $6.13 million; council also directed staff to study longer-term service needs.
City planners and parks officials won City Council approval Nov. 4 for a two-year extension of the Balboa Park tram services contract with ACE Parking, a move intended to keep free tram operations running while the city collects data following the rollout of paid parking.
John Richards, deputy director for Balboa Park, told the council the extension would add $2.8 million and bring the total tram contract to about $6.13 million. He said the extra time will allow staff to analyze ridership data after paid parking is in place and to shape a data-driven request for proposals for future operations.
Richards said the tram currently moves about 35,000 passengers per month and that the extension will ensure continuity of service for visitors, staff and volunteers while the city transitions to a new bidding process. Staff also proposed expanded service hours and an on-demand shuttle for staff and volunteers during off-peak times.
Speakers from park arts organizations and cultural institutions urged the council to approve the extension. "Reliable tram service also supports our teaching artists, production teams, and volunteers who often arrive during early mornings, evenings and weekends," said Desha Cronover, executive director of San Diego Junior Theater, during public comment.
Council members pressed staff on operational details, including how on-demand service will be accessed, whether trams could meet California street‑legal vehicle requirements, and how the city will track the effects of paid parking on ridership. Staff said the on-demand service will be managed by an ACE Parking dispatcher for staff and volunteers outside regular green tram hours and that further changes — including vehicle specifications — will be considered in the RFP.
The council voted unanimously to approve the staff recommendation. Councilmember Whitburn, who made the motion, said the extension balances continuity for park users with the need to collect real-world data to inform the next contracting step.
The extension covers two fiscal years and authorizes the chief financial officer to allocate up to $2.8 million from designated General Fund and transient occupancy tax (TOT) funds. Staff said funding for the current level of service has already been allocated in the approved FY26 budget.
The decision leaves the city with time to evaluate ridership patterns and determine whether trams or replacement vehicles should be street-legal, whether the on-demand service should be continued or scaled, and how to structure the next competitive procurement.
The council did not change any current service fees; the trams will remain free to the public. Staff committed to return with operational data and recommendations for the subsequent RFP cycle.
