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CALLED TO ORDER at 5:38 p.m.

Board Members Present:  Casas, Chavez, Cortese, Dando, Dixon, Fowler, Gage, McHugh, McLemore, Pirzynski, Williams, Yeager (Alternate)

Board Members Absent:  Beall (Ex-Officio), Gonzales

Alternate Board Members Present:  Alvarado, Kennedy, Sandoval

Alternate Board Members Absent:  Kerr

* Alternates do not serve unless participating as a Member.

Stated all Oaths of Office were administered.

There was no Closed Session.

There was no Closed Session Report.

Removed Agenda Item # 12, Authorize the General Manager to execute a contract with DeSilva Gates Construction, the lowest responsible bidder, in the amount of $2,040,694 for construction of Segment B of the US 101/Bailey Avenue Interchange project from the Consent Agenda and deferred to the April 1, 2004 VTA Board of Directors Regular Meeting.

Removed Agenda Item #13, Approve increase of Bicycle Expenditure Program (BEP) allocation to the River Oaks Bicycle/Pedestrian Bridge (Tier 1 Bicycle Project) from $250,000 to $700,000 from the Consent Agenda and deferred to the April 1, 2004 VTA Board of Directors Regular Meeting.

Added Agenda Item #25.X., Approve appointment of the representatives to the Dumbarton Rail Corridor Policy Advisory Committee.

Removed Agenda Item #16, Adopt a Financial Stability Strategy, which includes revenue enhancement measures recommended by the Ad-Hoc Financial Stability Committee and Agenda Item #16, Financial Stability Strategy Recommendations from the Regular Agenda and deferred to the March 4, 2004 VTA Board of Directors Regular Meeting.

Removed  Agenda Item #11, Authorize the General Manager to execute an agreement with Hynix Semiconductor America Inc., for the lease of a Silicon Valley Rapid Transit Project Office for an amount not to exceed $ 2,000,000, which includes $1,600,000, for rent, and $400,000 for tenant improvements and miscellaneous office furniture. The agreement term will be two years to allow completion of Preliminary Engineering, with an option to extend one year at 95 percent of the then market rate determined by an appraisal from the Consent Agenda and placed on the Regular Agenda. 

Removed Agenda Item #15, Approved the FY 2004-2013 Short Range Transit Plan (SRTP) from the Consent Agenda and placed on the Regular Agenda.

Accepted Orders of the Day and Approved the Consent Agenda.

CONSENT AGENDA

Approved the Minutes of the Regular Board of Director's Meeting of January 8, 2004.

ADMINISTRATION AND FINANCE COMMITTEE

Authorized the General Manager to execute an agreement with Fidelity Investments (Fidelity), a professional investment management firm to manage 15 percent ($36.6 million) of VTA/ATU Pension Trust assets for a fee of 64/100 of 1 percent which is an estimated amount of $236,800.

Authorize the General Manager to execute an agreement with Hynix Semiconductor America Inc., for the lease of a Silicon Valley Rapid Transit Project Office for an amount not to exceed  $2,000,000, which includes $1,600,000, for rent, and $400,000 for tenant improvements and miscellaneous office furniture.  The agreement term will be two years to allow completion of Preliminary Engineering, with an option to extend one year at 95 percent of the then market rate determined by an appraisal.

(Deferred to the VTA Board of Directors Regular Meeting of April 1, 2004.)

Authorize the General Manager to execute a contract with DeSilva Gates Construction, the lowest responsible bidder, in the amount of $2,040,694 for construction of Segment B of the US 101/Bailey Avenue Interchange project.

CONGESTION MANAGEMENT PROGRAM AND PLANNING COMMITTEE

(Deferred to the VTA Board of Directors Regular Meeting of April 1, 2004.)

Approve increase of Bicycle Expenditure Program (BEP) allocation to the River Oaks Bicycle/Pedestrian Bridge (Tier 1 Bicycle Project) from $250,000 to $700,000.

TRANSIT PLANNING AND OPERATIONS COMMITTEE

Approve the FY 2004-2013 Short Range Transit Plan (SRTP).

Employees of the Month for February 2004

James Wightman, Interested Citizen, recommended fining pedestrians stopping in the middle of the street which cause light rail vehicles to stop suddenly, expressed concern regarding riders eating on light rail vehicles and queried as to the status of retrofitting the platforms located Downtown San Jose.

Jerry Grace, Interested Citizen, stated he was pleased with the report he read about VTA, surprised to hear about Mayor Gonzales stroke, and queried about his health.

REGULAR AGENDA

Authorized on a vote of 9 yeas, 3 noes and 0 abstentions, the General Manager to execute an agreement with Hynix Semiconductor America Inc., for the lease of a Silicon Valley Rapid Transit Project Office for an amount not to exceed $2,000,000, which includes $1,600,000, for rent, and $400,000 for tenant improvements and miscellaneous office furniture.  The agreement term will be two years to allow completion of Preliminary Engineering, with an option to extend one year at 95 percent of the then market rate determined by an appraisal. Board Members Casas and McLemore voted no.

Terry Applegate, Silicon Valley Independent Living Center, requested the contract be reconsidered.

Queried as to the market rate and rental rate.

Staff responded that the property is below market rate and that other property had lower per square footage rate but more tenant improvements to be done because the building was not set up for an office. 

Queried if there is a nexus between Agenda Item # 11., Authorize the General Manager to execute an agreement with Hynix Semiconductor America Inc., for the lease of a Silicon Valley Rapid Transit Project Office for an amount not to exceed  $2,000,000, which includes $1,600,000, for rent, and $400,000 for tenant improvements and miscellaneous office furniture. The agreement term will be two years to allow completion of Preliminary Engineering, with an option to extend one year at 95 percent of the then market rate determined by an appraisal and Agenda Item # 17., Authorize the General Manager to execute a contract with the joint venture of Hatch Mott MacDonald Transportation and Tunnels, Inc., and Bechtel Infrastructure Corporation for tunnel design and program control services for the Silicon Valley Rapid Transit (SVRT) Project in an amount not to exceed $51,200,000 for the Preliminary Engineering phase.  The initial contract term will be for 24 months with future amendments to be presented to the Board for final design and construction management services once approval to enter into final design for the SVRT Project is determined.  The contract is 1 percent ($500,000) federally funded.

Queried why Agenda Item #12, Authorize the General Manager to execute a contract with DeSilva Gates Construction, the lowest responsible bidder, in the amount of $2,040,694 for construction of Segment B of the US 101/Bailey Avenue Interchange project was deferred.  Staff responded that the Contractor for Segment A is still working on the Project and there may be access issues to the Contractor for Segment B of the Project.

Approved the FY 2004 - 2013 Short Range Transit Plan (SRTP).

Noted there would be inquiries with regard to assumptions in the Operating Budget for Years 2003 through 2005, how the assumption were reached and if the assumptions represented existing policy or used to make new policy.

Requested a timeline in examining options to be considered in addressing issues of the Operating Budget.

Mr. Grace queried about plans to connecting BART to Caltrain and expressed concern regarding monthly passes for the disabled.

Staff advised that corrected figures regarding the monthly pass for the disabled would be provided to Mr. Grace.

Recommended a workshop or review for new Board Members to receive information on the strategy developed and discussed by the Ad-Hoc Financial Stability Committee.

ADMINISTRATION AND FINANCE COMMITTEE CHAIRPERSON'S REPORT - (See Agenda Item # 21.A.)

(Deferred to the VTA Board of Directors Regular Meeting of March 4, 2004.)

Adopt a Financial Stability Strategy, which includes revenue enhancement measures recommended by the Ad-Hoc Financial Stability Committee.

CONGESTION MANAGEMENT PROGRAM AND PLANNING COMMITTEE CHAIRPERSON'S REPORT - (See Agenda Item # 21.B.)

TRANSIT PLANNING AND OPERATIONS COMMITTEE CHAIRPERSON'S REPORT - (See Agenda Item # 21.C.)

Staff advised that there are six major consultant teams performing work with VTA on the PE for the BART Extension over the next two years.  Between now and August 2004, five design team contracts will be forwarded to the Board of Directors for approval. 

Queried as to the impact of delaying the Preliminary Engineering (PE) by three to six months.  Staff advised that the Federal Government will start to question the commitment to the project.

Queried why the Federal Government would be concerned about VTA's commitment to the project if postponed.

Queried when the other five contracts will be coming to the Board of approval.

Stated that any sign of hesitancy will be a disadvantage.  Requested clarification from Staff that this action will not disadvantage any other projects, specifically the Downtown East Valley Project.

Board Member Chavez left her seat at 6:23 p.m.

Staff reiterated action taken tonight will not disadvantage any other project.

Expressed concern that if the PE is postponed existing VTA staff that would be working on the engineering will have to be laid off.

Noted that it is not the right time to slow the project down and it is time to move forward as a Board.  Acknowledged that some of the greatest projects in the State of California were constructed during the Depression.

Expressed concern regarding a split decision of the Board Members.  Stated good business policy to advise the public of all of the facts.

Bernadette Arellano, Field Representative for Congressman Mike Honda, provided a statement in support of the BART to San Jose Project.

Joseph Furtado, Consultant, Assembly Transportation Committee, Assembly Member John Dutra, stated the Committee's Chairperson recommends moving forward with the PE as BART is an important part of the Bay Area Transportation puzzle which will help alleviate freeway congestion and contribute to smart growth along transit routes.  Also stated that it will more fully integrate the Bay Area as a region, bring more jobs in, and stimulate economic expansion in Santa Clara County and everywhere.

Tom Blaylock, Member BART Board of Directors and Dumbarton Rail Committee, urged that Board Members approve the Hatch Mott MacDonald and Bechtel contract.

Rod Diridon, Interested Citizen, stated that the danger is not a shortage of funding but rather delay and even a short delay means a loss in buying power.  Also stated that it is necessary to do homework, part of it being the PE.

Alternate Board Member Yeager took his seat at 6:45 p.m.

Jose Esteves, Mayor of the City of Milpitas, requested the PE contract be awarded.

Philip Bump, South Bay AFL-CIO Labor Council, encouraged the Board Members to move forward with the PE for BART.

Manuel Valerio, Interested Citizen, stated that it is time to move forward with the PE because there is a need to lay down the groundwork and a more refined knowledge of the cost of the project.

Alice Frayne, Interested Citizen, stated that she favored delaying the PE and requested a higher priority be made for the working poor and people who cannot drive to have buses and for a safe way to travel.

Christopher Lepe, Transportation and Land Use Coalition, expressed concern regarding the cost of BART Project and PE and lack of funding for operations once the project is completed.

Gus Morrison, Mayor of City of Fremont, expressed his support of the BART Project.

Don Gagliardi, Interested Citizen, urged the Board to authorize the PE funds. 

Laura Stuchinsky, Silicon Valley Manufacturing Group, urged the Board to authorize the first PE contract for the BART Extension to Silicon Valley.

Carl Guardino, Silicon Valley Manufacturing Group, expressed his support of the PE and bringing the BART Extension to San Jose.

Sally Probst, Interest Citizen, requested the Board approve the PE.

Alex Kobayashi, Assembly Member Manny Diaz' Office, noted Assembly Member Diaz' support of the PE for improvement of the Silicon Valley Rapid Transit Corridor.

Grant Bentley, Interested Citizen, stated that the most important reason to consider the PE is because of land use planning activities.

Elizabeth Hayes, Interested Citizen, requested the Board Members postpone the funding for BART until VTA gets its house in order.

Christopher Coulter, Interested Citizen, stated it is his hope that his vote to bring BART to San Jose will be honored and urged the Board Members to approve the PE contract.

Neil Struthers, CEO Building Trades Council, urged that the vision of BART be kept moving forward and confidence be restored with the Public.

Margaret Okuzmi, Bay Rail Alliance, requested the Board Members review the most current FTA New Starts Report before granting the PE and stated that VTA needs to address the structural deficit.

Jeff Dennison, Tri-County Apartment Association, urged the Board Members to award the contracts.

Josue Garcia, Building Trades Council, voiced his support of bringing to BART to San Jose.

Jim Homer, Laborers Local 270, urged the Board Members to keep the vision of BART and the PE moving forward.

Eugene Bradley, Santa Clara VTA Riders Union, expressed concern regarding the expenditure of the PE, requested a delay of the funding for BART until all associated costs can be disclosed, and stated the reason to wait for BART is because Silicon Valley needs buses now.

Ms. Applegate extended an invitation to the Board Members to spend a day at the Agency to enable them to see what clients need to do to get to the light rail and stated that it is important to reprioritize in light of the federal and state budget.

Erik Schoennauer, Interested Citizen, thanked the Board Members for their service on the Board and urged the Board Members to vote yes on the PE.

Bruce M. Stevens, Interested Citizen, thanked the Board Members for moving Public Presentations back to the front of the meeting and requested that the PE also consider other alternatives.

Frank Jesse, BEA Systems, emphasized land use planning development.

Rani Ranjan, Interested Citizen, encouraged Board Members to proceed forward with BART because it will elevate the City of San Jose to a global center.

Zachary Cribari, Interested Citizen, stated he is against the BART to San Jose Project and requested the Board Members be solely dependant on public transportation for a week for their daily personal and professional use.

David Collins, Interested Citizen, stated he is in support BART to San Jose and reminded Board Members why BART was not originally brought to San Jose.

Noted non-support of Chairperson's recommendation to defer this item for a month and would be supporting the motion to move forward with the PE.

Advised that it is important to move forward with PE phase and supports doing so. Stated that the project deserves the Board to be bold and brave.

Stated does not understand why the PE cannot be deferred for a few months until further information is provided and will not be supporting motion.

Noted that a delay now could mean more delays in the future, that Board Members need a mindset to move forward, and also noted that it is an opportune time to proceed with the PE.

Noted support of the motion, that the City of Milpitas has always overwhelmingly supported BART, believes in long-term planning, and is critical to the City of Milpitas and the economic recovery of the Valley.

Raised the issue of credibility and timing and requested staff consider the possibility of taking a step back and educating the community.

Thanked all speakers and stated his appreciation of the Board Members' insight and commitment. Noted that even uncertainty can add to an action, however, taking a short time to examine and address the uncertainty is prudent.

Supported moving forward with the PE phase of the BART and should follow vision of voters.

Grateful to be part of the discussion and deliberations and will support proceeding with the proposed action.

Stated that they are the stewards of public money and need to be very careful with it but also need to say "yes sometimes it is time to move forward even though unsure as to how" and will be supporting the motion.

Stated BART is important but it also important to educate the public as to the Board's decision and requested staff to come forward with the reasons for supporting the PE at February 27, 2004 Board Workshop.

Supports public education, requested an evening workshop to accommodate the Public and thanked everyone for their comments.

Supports the idea of educating the public.

Recommended a two-hour meeting in the evening before the end of the month.

Advised that staff will provide a report for a preliminary discussion at the February 27, 2004 Board Workshop and staff will schedule an evening meeting.

Requested a breakdown of segments to understand every element of the five additional contracts that the Board Members will be voting on and stated he will support the motion.

Authorized the Chairperson to submit a letter to the Peninsula Corridor Joint Powers Board (JPB) identifying the Santa Clara Valley Transportation Authority's (VTA) comments and concerns related to the Draft Caltrain 2004-2023 Strategic Plan.

OTHER ITEMS

Requested Board approval of unit clarification (re: CEMA) and requested the unit clarification issue be presented at the Standing Committees prior to Board.

Accepted as contained in the Agenda Packet.

A.  Administration and Finance Committee

     Accepted as contained in the Agenda Packet.

B. Congestion Management Program and Planning Committee     

     Accepted as contained in the Agenda Packet.

C. Transit Planning and Operations Committee

Ms. Applegate referenced TP&O Agenda Item # 19 dated January 15, 2004, and VTA´s Quarterly Acceptable Performance Report, First Quarter Fiscal Year 2004, expressed concern regarding mobility training, and reminded Board Members that it had been stated that clients would get a free bus and light rail pass.

A.   Committee for Transit Accessibility (CTA)

      Accepted as contained in the Agenda Packet.

B.  Citizens Advisory Committee (CAC)

      Accepted as contained in the Agenda Packet.

C.  Bicycle & Pedestrian Advisory Committee (BPAC)

      Accepted as contained in the Agenda Packet.

D.  Technical Advisory Committee (TAC)

      Accepted as contained in the Agenda Packet.

E.   Policy Advisory Committee (PAC)

      Accepted as contained in the Agenda Packet.

F.  Community Oriented Design Enhancement Committee (Code)

     Accepted as contained in the Agenda Packet.

Advised the Board Members that the Reports from the Joint Powers Boards (JPBs) & Regional Commissions were placed in front of them on the dais.

A.   Peninsula Corridor JPB

B.  Capitol Corridor JPB

C.  Metropolitan Transportation Commission (MTC)

A.  Vasona Light Rail PAB 

     There was no report from the Vasona Light Rail PAB.

B.  Silicon Valley Rapid Transit Corridor PAB 

      Accepted as contained in the Agenda Packet.

C.  Caltrain PAB 

      There was no report from the Caltrain PAB.

D.  Downtown East Valley PAB

      There was no report from the Downtown East Valley  PAB.

E.  Highway PAB - South

      There was no report from the Highway PAB - South.

There was no report from the Chairperson

Mr. Grace expressed concern regarding the Dumbarton Rail.

There was no report from the General Manager.

Board Member Dando left the Meeting at 8:31 p.m.

There were no Announcements.

ADJOURNED at 8:32 p.m