ACERider.org --> ACERail to raise fares ten per cent

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   Local & State News
   Published Tuesday, May 22, 2001, in the San Jose Mercury News 
   
ACE moves to raise fares

   10 PERCENT INCREASE
   
   :
   HIKE WOULD BE FIRST
   SINCE COMMUTER LINE
   BEGAN SERVICE IN 1998
   
   BY [62]T.T. NHU
   Mercury News
   
   The Altamont Commuter Express Authority tentatively approved a 10
   percent fare increase Monday -- the first hike since the service began
   2 1/2 years ago.
   
   Under the preliminary decision, which could become final after a
   one-month public comment period, a monthly round-trip pass from
   Manteca or Pleasanton to Santa Clara would rise from $147 to $162,
   effective July 1.
   
   But some commuters are already howling.
   
   ``That's terrible!'' wailed Anita Hosoda when she heard of the
   proposed fare increase. She and her husband Toru take the train from
   Manteca to Santa Clara. They buy two monthly passes at the current
   rate of $235, which would increase to $269. Hosoda said she had no
   choice but to pay.
   
   ``It's kind of pricey but it would be too stressful to drive. Even
   with the layoffs, traffic is outrageous,'' she said.
   
   ACE Executive Director Stacey Mortensen said the 10 percent increase
   would better reflect the Bay Area's rate of inflation since ACE
   started operations in late 1998.
   
   ``Everything has gone up around us except for tickets -- our fuel
   costs, crew costs, cost of materials,'' Mortensen said in an interview
   before Monday's vote. The price for shuttle service to and from ACE
   stations also has gone up, she said. ``We've got to do something to
   increase revenues a little bit.''
   
   Mortensen noted that when fares originally were set, ACE adopted a
   policy saying it would consider adjusting fares every two years based
   on the Bay Area's consumer price index, which has gone up 10.65
   percent during the two-year period.
   
   Fare box revenue this year covers $4.2 million of ACE's $8.5 million
   operating costs. The rest is covered by contributions from San
   Joaquin, Alameda and Santa Clara counties.
   
   Next fiscal year, ACE operating costs are expected to increase to
   $10.3 million, in part reflecting a full year's cost of running a
   third train that started in early March.
   
   ACE runs three Central Valley-to-San Jose trains in the morning, with
   three return evening trips. About 85 percent of ACE riders get off in
   Santa Clara, the central Silicon Valley stop.
   
   Mortensen said it is unclear whether rate increases would cause any
   loss in ridership.
   
   Despite his unhappiness about the fare increase, Toru Hosoda plans to
   leave the driving to ACE. He had to drive from Manteca to San Jose the
   other day and the traffic was so horrendous, he said he couldn't wait
   to get back on the train.
     _________________________________________________________________
   
   Mercury News wire services contributed to this report.
     _________________________________________________________________
   
   Contact T.T. Nhu at [63]tnhu@sjmercury.com or (510) 790-7317.
   

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