Altamont Commuter Express - History and Funding

History and Funding

The Altamont Commuter Express was established to serve San Joaquin County residents traveling to work at firms in Santa Clara County. Although ACE is intended to serve a more diverse ridership, its trains are presently limited to morning departures from Stockton with subsequent return departures from San Jose in the afternoon. The trains achieved enormous popularity at first and survived a severe drop in ridership due to the dot-com recession of 2002. Struggles with freight traffic interference and track reconstruction prevented the addition of a fourth train. However, in Fiscal Year 2011/2012 The Rail Commission will pay close attention to the relationship between ridership, the stabilisation (or rise) in employment levels in the Silicon Valley and Tri-Valley areas, and fuel costs, and report on ways the implementation of a fourth train could be realised. The operation is funded primarily by local sales taxes, with additional support from state and federal sources.

Service commenced under the governance of the San Joaquin Regional Rail Commission Joint Powers Authority formed in 1997 by Alameda, San Joaquin, and Santa Clara counties. The present Rail Commission has of one member each from the San Joaquin and Alameda county boards of supervisors, one BART representative, and representatives of five cities. Cost sharing for capital projects, excluding stations, during the initial 36 months of service was determined by the ACE Authority on a case by case basis and approved by each of the member agencies. The initial purchase of rolling stock, construction of stations, and other start-up costs, amounting to some $48 million, were covered primarily by a San Joaquin County transportation sales tax approved several years earlier, along with state and federal funding. Cooperative services agreements with the Alameda County Congestion Agency and the Santa Clara Valley Transportation Authority spell out funding of operations, maintenance and capital improvements. Currently, station improvements are the responsibility of the county in which the station is located. ACE pays the owner of the right of way, Union Pacific Railroad, about $1.5 million per year for the rights to run passenger service on the tracks; it also uses about four miles (6 km) of Caltrain track in San Jose.

In Fiscal Year 2006-7 the 675 thousand ACE trips generated fare-box revenues of some $4 million, about 30% of the $13.3 million operating and administrative cost. Most of the annual operating costs are underwritten by San Joaquin, Alameda, and Santa Clara counties in proportion to the boardings and alightings in each county. San Joaquin County funds its $2.32 million contribution from a half-cent transportation sales tax (30% of the tax adopted in 1990 and renewed in 2006 is allocated to bus, bicycle, rail, and pedestrian programs. The Alameda County Congestion Management Authority pays its $1.8 million share from its half-cent transportation sales tax (1.2% of its Measure B budget). Santa Clara County’s $2.6 million share is paid by the Valley Transportation Authority, operator of the county’s light rail and bus system, which also contributes about $1.5 million for shuttle services that take ACE commuters from train stops to job sites. Miscellaneous revenues, of some $2.5 million are supplied from federal and state grants, including Congestion Mitigation and Air Quality funds. Each county absorbs its own administrative costs, estimated at $2.4 million annually.