San Diego will soon extend the hours of its free Balboa Park shuttle service, and introduce on-demand van pickups for park staff and volunteers in the early morning and late evening hours.

The changes are baked into a two-year, $2.8 million contract extension with Ace Parking, which operates the Balboa Park Tram, and will take effect when the city implements paid parking in Balboa Park lots in early January.

The contract amendment, which extends Ace’s service through Dec. 19, 2027, received final approval by City Council members on Tuesday, following a second reading of the ordinance.

The revised agreement is designed to give the city additional time to evaluate park transportation behavior, in light of the parking charges, before it solicits bids for a new tram operator.

The updated service agreement also comes with a heftier price tag. San Diego is now paying $800,000 per year for standard service, $415,000 per year for additional hours and on-demand service, and $186,500 per year for tram upkeep. The old contract cost the city $665,700 per year.

“While I continue to oppose charging for parking at Balboa Park, the fact that it is happening means that more people will be parking further away from the center of the park to take advantage of the free or lower-priced parking at the outer lots,” Councilmember Stephen Whitburn said on Nov. 4, when the contract extension item was first introduced at City Council. “And, as always, we have a responsibility to ensure that those visitors and employees and volunteers can get to their destinations in the park safely and conveniently. Increasing the frequency of the tram service is essential to making that possible.”

San Diego has offered a free shuttle system for transportation to and from parking lots to central Balboa Park locations since the late 1990s, although the latest iteration dates to 2013. That’s when the city purchased its own fleet of bright green trams and trailers. The system includes three, liquid propane-powered tram units and 12 trailers with a total capacity of 100 people. The trams, which don’t have seat belts and reach a maximum speed of 10 miles per hour, are not authorized to drive on city streets, with the exception of crossing Park Boulevard.

In November 2020, council members approved a new, five-year, $3.3 million contract with Ace Parking, which was set to expire on Dec. 19.

The Balboa Park Tram ports park-goers from Inspiration Point, east of Park Boulevard, across the street on a loop through the interior of the park, with the last stop at the Plaza de Panama. The tram system averages 35,000 passengers per month and around 438,300 per year, according to the item’s staff report.

The Balboa Park Tram currently operates daily with pickups every 10 to 15 minutes — from 9 a.m. to 6 p.m. in the summer and through 8 p.m. in the fall and winter.

With the newly approved contract extension, the tram will run from 8 a.m. to 8 p.m. daily, year-round. Park staff and volunteers will also be able to call a dispatcher for on-demand van pickup, at no cost, from 7 a.m. to 9 a.m. and 6 p.m. to 11 p.m.

The city will use transient occupancy tax dollars and general fund money to pay for the $2.8 million extension. The city expects to start expanded operations on Jan. 5, Jon Richards, deputy director of Balboa Park, told the Union-Tribune.