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A quorum was not present and a Committee of the Whole was declared.

PUBLIC PRESENTATIONS

There were no Public Presentations.

Minutes of August 12, 2004

On order of Chairperson Kott, there being no objection, the Minutes of August 12, 2004, were deferred pending arrival of a quorum.

Summary Minutes of September 9, 2004

On order of Chairperson Kott, there being no objection, the Committee of the Whole received the Summary Minutes of September 9, 2004.

Committee Staff Report

Carolyn Gonot, Chief Development Officer, reported that the Metropolitan Transportation Commission’s (MTC’s) Regional Local Streets and Roads Committee is updating and correcting MTC’s information on streets and roads needs and funding.   The Regional Local Streets and Roads Committee has developed a new survey form and MTC and Public Works representatives have asked the Congestion Management Agencies to coordinate the survey, noting that the survey should be distributed sometime in the next seven days.   Ms. Gonot noted that there will be a Regional Workshop on November 12, 2004, in Oakland, to assist Public Works staff in reporting the information correctly.  VTA will provide information such as the survey due date and exact location of the workshop as soon as it becomes available.  VTA will request a Southbay Workshop as well.  The Capital Improvement Program (CIP) Subcommittee will be discussing the survey and other regional streets and roads issues at its next meeting on October 26, 2004.

On order of Chairperson Kott, there being no objection,   the Committee re-scheduled the November 11, 2004 Technical Advisory Committee (TAC) meeting due to the Veteran’s Day Holiday to Thursday, November 18, 2004 at 1:30 p.m.

Chairperson’s Report

There was no Chairperson’s Report.

BUSINESS REFERRED TO COMMITTEE BY THE BOARD OF DIRECTORS/ GENERAL MANAGER

Review and Comment on the two VTA Transit Operating and Capital Scenarios considered by the VTA Board of Directors at a Board of Directors’ Workshop on     October 1, 2004 

Roger Contreras, Chief Financial Officer, reported that based on the recommendation from the Ad-Hoc Financial Stability Committee, VTA pursued another revenue source. Staff presented the following four financial scenarios to the Board of Directors in August 2004 for consideration: 1) Scenario 1 – No new revenue, 2) Scenario 2 – New quarter cents sales tax, 3) Scenarios 3 and 4 – New permanent half cents sales tax.   Of the scenarios provided to the Board of Directors, only the new permanent half cents sales tax provided the necessary resources to build and upgrade the key signature projects of Measure A, without negatively impacting VTA operations or the completion of other 2000 Measure A Projects.

Member Rowe took his seat at 1:49 p.m. and a quorum was declared.

Member Tripousis took his seat at 1:50 p.m.

Mr. Contreras reported that at the October 2004 Board of Directors’ Workshop, staff returned with both further refinements to Scenarios 1 and 3.   He directed attention to Exhibit B-1, Scenario 1: No New Tax to VTA, VTA 2000 Measure A Revenue and Expenditure Profile/2003 – 2036, and Exhibit C-1, Scenario 1: No New Sales Tax/Maintain Current Service Levels, and noted with no new revenue VTA has the financial capacity to fund its local capital program, however, VTA does not have the financial capacity to build and operate the following: 1) the BART and Downtown East Valley (DTEV) Projects nor 2) the financial capacity to implement service increases or maintain a 15 percent operating reserve level until FY 2013.

Mr. Contreras directed attention to Exhibit B-2, Scenario 3: Optimum Schedule and a New 3/8-Cent Sales Tax to VTA, and Exhibit C-2, Scenario 3: New 3/8-Cent Sales Tax to VTA, and noted that Scenario 3 provides VTA the financial capacity to fund a local capital program, project and operating costs associated with BART and DTEV Projects, service increases, a 15 percent operating reserve starting FY 2008, provides additional funding and support of the 2000 Measure A Project, and the half cents sales tax also provides the cities and counties with approximately $35 million per year, in current year dollars, for pavement management or other transportation related purposes.

Mr. Contreras reported that staff will be returning to the Board of Directors on      November 5, 2004, with further revisions based on input during the October 1, 2004 Board of Directors’ Workshop.   He noted that VTA’s original goal was to have an expenditure plan to the Board of Directors for adoption in December 2004, however, to allow additional time for the public, the Board of Directors and its Committees to provide input, VTA has extended the process to Spring 2005.

On order of Chairperson Kott, there being no objection, the Committee reviewed and commented on the two VTA Transit Operating and Capital Scenarios considered by the VTA Board of Directors at a Board of Directors’ Workshop on October 1, 2004. 

Draft Long Term Capital Investment Program (CIP)

Jack J. Collins, Chief Construction Officer, directed attention to Exhibit D, Scenario 3: Optimum Schedule and a New 3/8-Cent Sales Tax to VTA, 2000 Measure A Revenue and Expenditure Project Profile/2003 – 2036, and Exhibit F, VTA Operations, Capital Investment Program.   He reported that VTA is trying to develop a 30-year long-term Capital Investment Program.  The two major elements of a 30-year Capital Investment Program for VTA are the 2000 Measure A Transit Projects, which are shown on Exhibit D and the VTA Operations Capital Projects, which are shown on Exhibit F.  Exhibit F contains other projects the VTA is involved in that support VTA’s operation of buses, light rail, paratransit, etc.

Mr. Collins directed attention to Exhibit D, Revenues category, and provided an overview on the following Line Items: #1 - Measure A ½-cent Sales Tax (CCSCE 2004 Midpoint), #2 – TCRP for SVRT project, #3 – Federal New Starts for SVRT project, #4 – Prop 42 STIP for SVRT project, #5 – VTA, Other Funding, #6 – Funds from Other Partners for Measure A Projects, and #7 – Measure A Bonds & Interest Revenue.   Mr. Collins noted that the Total Revenue stream would be about $21.5 billion over 30 years.

Mr. Collins directed attention to Exhibit D, Expenditures category, and noted it shows when VTA plans on phasing the projects and the drawdowns in year of expenditure dollars, with the view on trying to come out with a positive balance in which VTA does at $2 billion.   Also, trying not to go negative on VTA’s cumulative balance on any given year in order to avoid any additional bonding costs already assumed for DTEV and Silicon Valley Rapid Transit Project (SVRTP).

Member Curtis took his seat at 1:59 p.m.

Mr. Collins directed attention to Exhibit D, Expenditures category, and provided an overview on the following Line Items: #8 – Operating Assistance @ 18.457%, #9 – Bond Payment & Costs (Lines 15 to 21), #10 – SVRTP (Sep 2015), #11 – DTEV Transit Improvements (Dec 2011), #12 – BRT (Line 22, Monterey, Stevens Creek),   #13 – Caltrain Service Upgrades (VTA Share), #14 – Caltrain South County, #15 – Caltrain Electrification, #16 – New Rail Corridors Study, #17 – Mineta San Jose Airport People Mover, #18 – Highway 17 Bus Service Improvements, #19 – Dumbarton Rail, #20 – Palo Alto Intermodal Center, #21 – ACE Upgrade, #22 – New Rail Corridors-Phase 1, #23 – New Rail Corridors-Phase 2, #24 – Zero Emission Buses (ZEB’s & Facilities), and #25 – ZEB Demonstration Program.

Mr. Collins referred to Caltrain Electrification and noted that Board Members had expressed concern regarding the prioritization of Caltrain Electrification at the         October 1, 2004 Board of Directors’ Workshop Meeting and requested that staff work on a strategy to move up Caltrain Electrification.

Mr. Collins directed attention to Exhibit F, VTA Operations Capital Investment Program, and noted that it pretty much mirrors what one would see in VTA’s ten-year Short Range Transit Plan.   It contains elements that keeps VTA’s system up and running as far as bus and light rail service.    In regards to funding, VTA took ten percent of its annual operating budget and set it aside to fund the Capital Investment Program, which amounted to $637 million over 30 years.  VTA then used grants from the Federal Transit Administration (FTA) and the State to leverage the projects.  VTA used an average ratio of 70/30 in this scenario to come up with about $2.3 billion worth of revenue for total revenue over 30 years.   He directed attention to Exhibit F, Expenditures category, and provided an overview, highlighting: 1) Revenue Vehicles & Equipment, 2) Operating Facilities & Equipment, 3) Light Rail Way, Power & Signal, 4) Passenger Facilities, 5) Information Systems & Technology, and 6) Miscellaneous Projects.  There is a grand total of about $1.5 billion, with a positive balance of $800 million over the 30-year program.

Upon query of Marc Roddin, MTC, regarding the Zero Emission buses and fleet replacement,   Ms. Gonot noted that she would provide a report back.

On order of Chairperson Kott, there being no objection, the Committee reviewed and commented on the Capital Program Expenditure Sequencing considered by the VTA Board of Directors at a Board of Directors’ Workshop on October 1, 2004. 

The Agenda was taken out of order.

Minutes of August 12, 2004

M/S/C (Tripousis/Porter) to approve the Minutes of August 12, 2004.

OTHER

Announcements

Member Kass referred to a Litter Proposal that he sent to a number of the Public Works Directors and to Ms. Gonot.   He noted that the proposal was a draft about how to deal with the problem of litter and landscaping on side of the freeways.  He noted that he would like to provide a presentation on the proposal at a subsequent TAC Meeting.  Ms. Gonot noted that it could be agendized at the next TAC meeting for discussion.

Ms. Gonot announced the new VTA Commercial Development Manager, David Miller, and noted that he would provide a presentation at TAC regarding VTA’s Joint Development Policies.

Ms. Gonot noted that the Bay Bridge seismic retrofit issue is currently back with the decision to redesign or re-package and rebid.   She noted that the question of how to fund the project would be coming to Santa Clara County, the region in general, and the entire State.

Committee Staff Report   (continued)

Upon query of Member Rowe, Ms. Gonot noted that the November 11, 2004 TAC Meeting was rescheduled to November 18, 2004 at 1:30 p.m.

ADJOURNMENT

On order of Chairperson Kott, there being no objection, the Meeting was adjourned at 2:35 p.m.

Respectfully submitted,

Tracene Y. Crenshaw, Board Assistant
VTA Board of Directors

NOTE:    M/S/C MEANS MOTION SECONDED AND CARRIED AND, UNLESS OTHERWISE INDICATED, THE MOTION PASSED UNANIMOUSLY.