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The Regular Meeting of the Downtown East Valley Policy Advisory Board (PAB) was called to order at 3:03 p.m. by Chairperson Alvarado at the San Jose City Hall, 801 North First Street, Room #204, San Jose, California.

ROLL CALL

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

There were no Public Presentations.

On order of Chairperson Alvarado, there being no objection, the Status Report for the Capitol Expressway Light Rail Corridor was received.

Julie Render, Principal Transportation Planner, reported that at the public outreach meeting on September 24, 2003, 30 members of the public and business owners along the alignment were in attendance.

Ms. Render stated that public input received in June, July, and August 2003 has been incorporated into the project plans.

On order of Chairperson Alvarado, there being no objection, the Status Report of the Santa Clara/Alum Rock Corridor was received.

Miriam Ayllon, Community Outreach Supervisor, reported that the meeting of September 24, 2003, was well attended.   Staff mailed out over 5,000 invitations in English, Spanish, Vietnamese, and Portuguese.  Information regarding the September 24, 2003 Public Outreach Meeting was provided at bus stops and shelters and also printed on the Five Wounds Church Bulletin in Portuguese and Spanish.

Member McHugh took his seat at 3:08 p.m.

On order of Chairperson Alvarado, there being no objection, the Community Outreach Report was received.

M/S/C (Cortese/McHugh) to approve the Minutes of September 4, 2003.

M/S/C (McHugh/Campos) to approve the 2004 Downtown East Valley PAB Meeting Schedule.

Scott Buhrer, Chief Financial Officer, reported that staff provided financial scenarios to the Ad-Hoc Financial Stability Committee, as well as a sample plan that overlaid commitments made to date with some assumptions.   Primarily, staff was considering commencement of the Eastridge portion of the Downtown East Valley by 2009, which is consistent with the schedule that has been discussed, and commencing BART by December 2013. 

Mr. Buhrer stated that at year-end of June 30, 2001, we received $183.5 million from that half-cent sales tax and for the year-end of June 30, 2003, we received $132.5 million from the half-cent sales tax.   VTA has gone through two consecutive years, nine consecutive quarters of declining sales tax revenues.  The Center for Continuing of the California Economy provided sales tax forecasts through 2010 and received a high estimate, middle, and low estimate.

Mr. Buhrer also stated that between now and 2010, the forecasts were done largely by regressing off of several independent variables, which include forecast for jobs, for income, for population.   In each of those variables there was a high, middle and low estimate.   Staff is relatively confident that the sales tax estimates used can be characterized as conservative.

Staff found that by 2013, as the Ad-Hoc Financial Stability Committee was advised, VTA has cumulative deficits of $2.9 billion that exceeded VTAs ability to bond through this cash difficulties.   It is concluded that the Board of Directors will face choices and will have to make priorities if an additional revenue source is not received or if the economy does not improve substantially.

Mr. Buhrer noted that the Board of Directors will be revisiting the Budget at their January 2004 Board Workshop and at that time staff will recommend the DTEV Project Budget add $11 million for the Preliminary Engineering.

Chairperson Alvarado requested staff provide information to the VTA Board Members regarding agenda items for future Board workshops and meetings outlining decision making points and items for approval.

Chairperson Alvarado expressed concern regarding potential reprioritization, the limitation of the bonding capacity through 2013 and the inability to look at a completed project and inability to acknowledge a Downtown/Alum Rock/East Santa Clara Spur because of the Project being contingent upon what happens with BART.

Chairperson Alvarado stated that the Board of Directors will have to come to grasp of reality and begin to figure out how VTA will meet these challenges and a way to respond to transportation needs of Santa Clara County, as well as the expectations from the voters who are funding these projects.

Member Campos requested that staff provide the Committe information advising of what is really happening so they can look at their responsibilities and to make sure that the Committees time is being used in its most efficient manner.

Member Cortese stated that its important for VTA to move forward irrespective of whether or not a new revenue source is actually approved.   It is also important to make sure that there is an external campaign with the taxpayers of Santa Clara County that lets them know that this is not about money squandered but rather about money never received.   Mr. Cortese further stated that the ultimate outreach challenge VTA is going to have is to provide the explanation to voters that they are owed.

Chairperson Alvarado recommended that candid discussions take place in a lot of different levels, not just in the Policy Advisory Board but also at Board workshops and meetings and in ways that the Community can engage in listening to the conversation, but participate as well.

Member McHugh stated that there was not anything in the PABs approach in trying to come up with a transit system that would serve a growing vital area, if anything, they were overly optimistic.   He further stated that the challenging part is getting the public involved in understanding the alternatives and then validating the choice and rationale for that choice.   He also stated that there has been a lot invested in both the Downtown East Valley and BART Projects but VTA cannot continue assuming that there is going to be enough for both.  Member McHugh recommended that VTA should focus on what is happening within its own borders.

On order of Chairperson Alvarado, there being no objection, the Project Funding and VTA Financial Situation was received.

On order of Chairperson Alvarado, there being no objection, the meeting adjourned at 3:49 p.m.

Respectfully submitted,

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