TO: HONORABLE MAYOR AND FROM: Mayor Matt Mahan CITY COUNCIL Vice Mayor Pam Foley
Councilmember Rosemary Kamei
Councilmember David Cohen
Councilmember Michael Mulcahy
SUBJECT: SEE BELOW DATE: March 21, 2025
Approved Date 3/21/2025
SUBJECT: SAN JOSÉ DIRIDON STATION TO AIRPORT CONNECTOR FEASIBILITY VALIDATION REPORT AND PHASE 2A RECOMMENDATION
RECOMMENDATION
1. Accept staff recommendation (a) with the following modifications and additions:
a. Negotiate and execute an amendment to the pre-development agreement, task orders, and change orders with San José Connection Partners to advance Phase 2a, which shall include an investment grade study to refine ridership and revenue forecasting, developing a funding strategy, and developing a preferred alignment for the Base Project and the Optional Intra-airport Extension Project, subject to San Jose Connection Partners securing the balance of funding required to complete Phase 2a. b. Until Connection Partners secures the new funding, no additional city funds, staff time, or resources shall be allocated for the completion of Phase 2a beyond that which is covered by previously allocated funding.
c. To ensure the future success of San Jose Mineta Airport (SJC), Phase 2a shall include analysis and recommendations that create the necessary flexibility for future airport growth.
d. In parallel with or as part of Phase 2a, work with Valley Transportation Authority (VTA) as the lead agency to evaluate the various emerging technology options that could offer alternatives to this Connector. No General Fund dollars shall be used for this evaluation.
2. Reject staff recommendation (b). Given San Jose’s priority of completing BART Silicon Valley Phase II (BSVII) and preserving bus service for all residents, the City should not seek additional VTA funds for the Connector project until these two priorities are ensured, and surplus VTA funds for the Connector are identified.
COUNCIL AGENDA: 3/25/2025
FILE: 25-291
ITEM: 5.1
BACKGROUND
We share the vision and goal of creating reliable, sustainable, and seamless transit options to connect residents within San José and the greater Bay Area. However, a lot has changed since the City set out to lead a project for connecting Diridon Station and SJC. Our city and region have faced significant headwinds, with multi-year declines in enplanements at SJC, longer timelines for completion of BSVII and High-Speed Rail, lower than projected sales tax revenues impacting both the City and VTA, and high vacancy rates in new office space in Downtown San Jose. Further, farebox recovery for local and regional transit agencies have struggled to recover since the pandemic, adding pressure for increased public subsidies to sustain operations. We are also seeing a rapid rate of technological evolution, especially in the autonomous vehicle (AV) space.
Therefore, the next phase of this project requires rigorous study that reflects the new frontier in travel and commute patterns, development, and innovation. As Phase 2a moves forward, we should prioritize an independent and robust investment grade ridership study to fully understand potential demand for this airport connector. We know from some past transit projects that ridership is often overstated, and we need to assess how many people are truly going to use the project to go to Diridon Station, the SAP Center, or other places nearby. The investment grade demand study proposed for Phase 2a must also include an analysis of the comparative advantage between the Glydways solution and other transit options, including autonomous vehicles on public roads.
In parallel, the City should work with VTA – our region’s congestion management agency – to evaluate the various emerging technology options. Transportation technology is changing incredibly rapidly. For example, autonomous vehicles are already testing on local streets. We need evidence of demand for the solution we progress, and that the technology will remain competitive in a rapidly changing technological environment.
The purpose of the connector is to improve mobility to SJC, also known as the “best midsize airport in America.” SJC’s economic benefit to making San Jose a destination for sports, entertainment, conferences, business, and leisure cannot be underestimated. Therefore, this connection must take into account the long-term needs for airport growth. Our recommendation ensures the success of the airport is centered in the connector project as it moves forward.
Currently, $3.7 million is available for Phase 2a, consisting of previously allocated City funds, Measure A dollars, and federal grant funding. This funding will help progress the ridership and demand study, while advancing alignment and a full funding plan as much as possible. The City cannot allocate any new City money toward the effort at this time and must carefully manage staff time to prioritize work central to our adopted focus areas.
If approved by Council, our recommendations will empower San Jose Connection Partners to seek external sources to complete Phase 2a at a time when City and Measure A funding is limited. Connection Partners should take the lead on pursuing funding, as well as the funding strategy in Phase 2a, with City collaboration only when absolutely necessary. For example, some funding sources are only available to public agencies. In those cases, the City or other public partners will clearly have to lead; but we will need significant support and leadership from Connection Partners.
The signers of this memorandum have not had, and will not have, any private conversation with any other member of the City Council, or that member’s staff, concerning any action discussed in the memorandum, and that each signer’s staff members have not had, and have been instructed not to have, any such conversation with any other member of the City Council or that member's staff.