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The BART Board of Directors voted Thursday to continue its fare increase program, which is based on inflation and goes to pay for new trains and other system improvements.

The inflation-based program, which has been in place since 2003, was designed to offer passengers a predictable pattern of small fare adjustments over time. The renewed program approved Thursday will raise fares in 2014, 2016, 2018 and 2020 at a rate below inflation.

The increase is calculated based on the average rate of inflation over the two-year period minus 0.5% for improvements. It is estimated that this program will generate $325 million over the next eight years.

The first increase, which will go into effect Jan. 1, 2014, will be 5.2% (based on inflation data from 2010-12). BART's average fare is $3.59. A 5.2% increase would cost an extra 19 cents, bringing the fare to $3.78.

"These small increases are an important part of BART's financial health, especially as we face a $10 billion unfunded capital need," BART Board President Tom Radulovich said. "We want our passengers to know we don't make decisions like this without great consideration. The money generated will only be allowed to go toward capital needs such as paying for BART's share of the new rail cars and a new train control system which will allow us to run trains closer together. These contributions also help us leverage other funds, making the value go even further."

A survey showed that about 60% of BART passengers support the continuation of the inflation-based program; they responded that they would rather have predictable small increases over time than large boosts. In the 2012 Customer Satisfaction Survey, 70% of passengers rated BART a good value for the money.

The board also OK'd a parking program that outlines a policy of when to raise or lower the cost of parking. This revenue will fund station and access improvements.

The money collected from BART's paid parking program does not cover the cost to provide parking. It costs $21.7 million a year to provide security, maintenance, lighting, landscaping and cleaning, while BART collects $15.6 million a year. Nonetheless almost all BART lots fill up at an early hour every day.

Under the new parking program, all lots will cost at least $1. If a parking lot fills up every six months, the daily fee will be increased by 50 cents. If the occupancy is less than 95% full, the fee will decrease 50 cents. The BART Board voted to cap the fee at $3, except for at West Oakland, which costs $5. Customers will be given 30 days notice of any changes in fees.

Parking at the Dublin BART stations currently costs $1 until 4 p.m. on weekdays.

Since the monthly, single day, and long term/airport rates are a function of the daily fee, the cost for those permits may be raised or lowered in the equivalent of 50 cents daily increments according to the changes to the daily fee at a particular station.

This new parking rate policy is expected to generate a much-needed $6 million in the first year and $10 million in subsequent years. The additional revenue could only be used for station access, and to renovate or modernize stations.

"Many of our aged stations are in desperate need of upgrades and improvements," Radulovich said. "This new money will go towards projects such as escalator and elevator reliability, improved lighting, more secured bike parking, shuttle programs, better drop-off areas, and other improvements to stations and access."

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