Committee Staff Report
Quarterly Report from the General Manager
Michael T. Burns, General Manager, noted his commitment to report to the Advisory Committees every three to four months. Mr. Burns introduced the following three new VTA staff members and noted their background: Bill Lopez, Chief Administrative Officer; Mike Hursh, Maintenance Deputy Director; and Dan Smith, Operations Deputy Director.
Mr. Burns thanked the CAC Members who attended the VTA Tour and noted the positive feedback from attendees. He extended the invitation to those who were not able to attend and noted that VTA could provide the tours again if there is a lot of interest from the Committees.
Mr. Burns reported that VTA ridership in March 2006 has improved when compared to the same time last year. Bus ridership has increased 6 percent and light rail showed a strong increase of 31 percent. Mr. Burns attributed the positive increases to the staggering prices of gas and to the slow but sustained improvement in the economy.
On the Performance Audit, Mr. Burns advised the Committee that the Request for Proposals (RFP) is now public and proposals are due by the end of May 2006. Six firms attended in the pre-proposal meeting. Mr. Burns stated that he is inviting the Chairpersons of all Advisory Committees to participate in the selection panel for the consultant team. He noted that staff intends to bring the recommendation for the consultant team to the Board of Directors for approval at their August or September 2006 Regular Meeting.
Mr. Burns noted that the Board of Directors established the Project Advisory Committee to make recommendations to the Board regarding the Expenditure Plan. The Committee has met on a regular basis and the next meeting is scheduled for Thursday, May 11, 2006, VTA Auditorium, at 5:30 p.m. Mr. Burns stated that the Committee expects to make a recommendation to the Board at its June 15, 2006 special meeting.
Mr. Burns stated that an Employee Survey was conducted to examine the overall employment environment at VTA. The majority of VTA employees feel appreciated, value their jobs, and are proud of the work they do. The survey identified communication as an improvement area. Mr. Burns reported that VTA will develop an action plan with methods to improve communication both internally and externally. Mr. Burns advised that the results are available on the VTA website and added that interested Members may obtain a copy of the survey results upon request.
Mr. Burns reported that VTA is in its ninth month in the two-year budget. The Board adjusted the budget two months ago to account for increases in fuel costs and interest expense. There were not any negative impacts due to the improving economy and stronger sales tax receipts. Mr. Burns informed CAC that VTA reserves are back under 15 percent.
Mr. Burns noted that on May 17, 2006, the River Oaks Bicycle and Pedestrian Bridge Ribbon Cutting Ceremony will take place. He encouraged CAC Members to attend.
Mr. Lawson advised the Committee that after the meeting, interested Members are welcome to view the River Oaks Bicycle and Pedestrian Bridge.
Kurt Evans, Government Affairs Manager, reported that on Friday, May 5, 2006, the Legislature approved a comprehensive and compromise Infrastructure Bond Package that will go before the voters in November 2006. It was a culmination of almost a year’s worth of debate within the legislature about using General Obligation Bonds to begin addressing California’s growing infrastructure needs. The size of the bond package is $37 billion, smaller than the governor proposed $70 billion in his strategic growth plan in January 2006 and the proposed $50 billion in March 2006. Mr. Evans explained that the lower figure ($37 billion) is the number that Republicans agreed to as they do not favor using debt to fund infrastructure and prefers a pay as you go approach.
Mr. Evans stated that the legislature focused the bond package on four areas major areas: Transportation with approximately $20 billion, Flood Prevention with approximately $4 billion, Affordable Housing with $2.8 billion, and Education for approximately 10.5 billion. Mr. Evans advised that these four would appear as four separate bond measures in the November 2006 ballot.
Transportation is divided into thirteen existing and new programs. The key existing programs include $2 billion for the State Transportation Improvement Program (STIP), $750 million for State Highway Operation and Protection Program (SHOPP), $1 billion for State-Local Partnership Program, and $400 million for Intercity Rail Program. The new programs include $4.5 billion for Corridor Mobility Program, which would fund huge highway projects that has inter-regional significance. There is $3.1 billion for Goods Movement, which is a combination of capital improvement to corridors that has heavy freight traffic, air quality improvement for ports, and port security. Public Transit Capital include $3.6 billion and funding for this program is flexible that will be allocated to transit operators by formula. Lastly, $1billion is set for Transit Security.
Mr. Evans advised CAC that the Board adopted advocacy principles to guide VTA’s efforts with regards to the Infrastructure Bonds. Mr. Evans stated that what the Legislature approved is similar to the Board adopted guiding principles. He noted that the legislative delegation came through to make sure that the final product of the bond package addressed the VTA Board identified important transportation needs in Santa Clara County. Mr. Evans reiterated that a majority vote by the voters on November 2006 is needed to approve the bonds and start the flow of monies.
Mr. Evans distributed two handouts entitled: General Obligation Infrastructure Bonds: November 2006 Ballot and Senate Bill 1266 (Perata): Highway Safety, Traffic Reduction, Air Quality, and Port Security Bond Act of 2006.
Member Tebo commented that CAC was very happy with their first impression of Mr. Burns.
Mr. Burns stated that there is a lot of potential in VTA and good people. He noted the existing programs and programs that will be launched such as the Community Bus and the Comprehensive Operational Analysis, to name a few.
Chairperson Schulter expressed his appreciation to Mr. Burns for attending CAC to provide a report.
Upon inquiry of Member Powers, Mr. Evans responded that the Infrastructure Bond has a campaign to support its passing. He stated that he is not aware of an opposition campaign. Mr. Evans stated his opinion that the four main programs of the Infrastructure Bond will pass due to Californian’s recognition that these infrastructure needs should be addressed.
Member Burnett expressed concern about the repayment of bonds and inquired about the philosophy or plans on how it will be paid. Mr. Evans stated that there is an understanding in the State Administration and Legislature that the State has only a certain amount of bonding capacity. Mr. Evans noted that the Administration and Legislature have done a good job in analyzing how much bonds the State Budget could accommodate.
Mr. Lawson invited CAC to the River Oaks Bicycle and Pedestrian Bridge Opening Ceremony scheduled for May 17, 2006. He reiterated that interested Members could go to the bridge after the meeting and transportation will be provided to those who do not want to walk to the bridge.
Mr. Lawson directed attention to the handout on the table regarding the update on the Downtown San Jose Light Rail closure. Mr. Lawson stated that staff anticipates that the San Antonio Light Rail Station will be open in time for the San Jose Grand Prix.
Mr. Lawson stated that VTA held its Cinco de Mayo Celebration at the North Yard, as part of VTA’s Diversity Program, where Board Members Chavez, Kniss and Ex-Officio Board Member McLemore were in attendance.
Mr. Lawson stated that the Project Advisory Committee met on April 27, 2006 at the Milpitas City Hall. They received presentations regarding the BART Extension Project and presentations from the cities of Milpitas, San Jose, and Santa Clara. He added that Jim Pierson, City of Fremont, provided a brief verbal presentation as well. The next meeting is scheduled for May 11, 2006, 5:30 p.m., at the VTA Auditorium and the Committee will receive presentations on light rail projects, Airport People Mover, and Bus Rapid transit.
Mr. Lawson advised CAC of the opening of the 1996 Measure B Project - 85/101 North Interchange Project on May 24, 2006 at 10:00 a.m. The Ceremony will be held at VTA North Yard.
Mr. Lawson noted that the Board received presentations on the “Do the Math Presentation” and “Programming and Delivery of Projects.” Mr. Lawson also noted that the Amalgamated Transit Union (ATU) Local 265 agreed to a different rate structure for Community Bus Operators in April 2006. This is a major milestone for VTA as the agreement enables VTA to provide a flexible and more cost effective service. He noted that ATU should be commended for their vision and their ability to view how future transportation is moving.
Member Elias requested that staff provide Committees a calendar of festivities/activities to provide opportunity for Members to participate.
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