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Board Minutes


BOARD OF DIRECTORS MEETING

March 4, 2004

Minutes

1.

CALLED TO ORDER

The Regular Meeting of the Santa Clara Valley Transportation Authority's (VTA) Board of Directors was called to order by Chairperson Gage at 5:35 p.m. in the Board of Supervisors' Chambers, County Government Center, 70 West Hedding Street, San Jose, California.

  
2.

ROLL CALL

Members Present

David Casas Frederik Fowler Cindy Chavez David Cortese Pat Dando Patricia Dixon Don Gage, Chairperson Pete McHugh John McLemore Joe Pirzynski, Vice Chairperson Forrest Williams

Members Absent

Jim Beall, Ex-Officio, Ron Gonzales�

Alternates Present

Alternate Dolly Sandoval

Alternates Absent

Alternate Blanca Alvarado, Alternate Dennis Kennedy, Alternate Breene Kerr, Alternate Ken Yeager

* Alternates do not serve unless participating as a Member.

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

  
3.

ADJOURNED TO CLOSED SESSION at 5:37 p.m.

Board Member Chavez arrived at the meeting and entered Closed Session at 5:38 p.m. and a quorum was declared.

Board Member Cortese arrived at the meeting and entered Closed Session at 5:40 p.m.

Board Member Williams arrived at the meeting and entered Closed Session at 5:45 p.m.

Board Member McLemore arrived at the meeting and entered Closed Session at 5:56 p.m.

Existing Litigation - Conference with Legal Counsel [Government Code Section 54956.9(a)]

1. Name of Case: Homer J. Olsen v. VTA (Santa Clara County Superior Court Lead Case No. CV785402, Consolidated Cases)

2. Name of Case: Borja v. SCVTA (Santa Clara County Superior Court Case No. CV802902)

3. Name of Case: County Employees Management Association (CEMA) v. VTA, et al. (Santa Clara County Superior Court Case No. CV006149)

RECONVENED TO OPEN SESSION at 6:24 p.m.

  
4.

CLOSED SESSION REPORT

1. Name of Case: Homer J. Olsen v. VTA (Santa Clara County Superior Court Lead Case No. CV785402, Consolidated Cases)

There was no reportable action taken during Closed Session.

2. Name of Case: Borja v. SCVTA (Santa Clara County Superior Court Case No. CV802902)

There was no reportable action taken during Closed Session.

3. Name of Case: County Employees Management Association (CEMA) v. VTA, et al. (Santa Clara County Superior Court Case No. CV006149)

There was no reportable action taken during Closed Session.

  
5.

ORDERS OF THE DAY

Chairperson Gage stated that the meeting would be adjourned in memory of Duane Rhodes, a VTA employee who recently passed away. Mr. Rhodes was a Fare Inspector in Protective Services, providing dedicated service to VTA for 14 years. Mr. Rhodes was most recently recognized as Operations Employee of the Month for December 2003.

M/S/C (Dando/Chavez) to accept the Orders of the Day.

  
6.

AWARDS AND COMMENDATIONS

A. Employees of the Month for March 2004

Chairperson Gage presented an award to Roberto Jaurequi, Chaboya Maintenance, as VTA Employee of the Month for February 2004. Chairperson Gage presented awards to Alexander Chrisoulis, Chaboya Operations; Rely Villaneuva, Cerone Maintenance; Joseph Sandoval, Rail & Facilities Design and Construction, as VTA Employees of the Month for March 2004; and Lorraine Bingham-Olson as Supervisor of the Quarter.

B. Employees of the Year 2003

Chairperson Gage presented awards to Benny Cheung, Guadalupe Operations; Doug Timmons, Cerone Maintenance; and Diane Alves, River Oaks Administration; as VTA Employees of the Year 2003, and Clyde Davis as Supervisor of the Year 2003.

Gage congratulated all Employees of the Month and Employees of the Year 2003.

  
7.

PUBLIC PRESENTATIONS

Jerry Grace, Interested Citizen, expressed his good wishes for the complete recovery of Board Member Gonzales.

James Wightman, Interested Citizen, suggested that a transit center be placed at Great America.

Bruce Stevens, Interested Citizen, noted that there are transit users who cannot afford the cost of a monthly pass and suggested reducing the cost of the monthly pass.

Ex-Officio Board Member Beall took his seat at 6:40 p.m.

David Jensen and Earnest Johnson, IKON Office Solutions, requested that staff take a critical look at the financial structure of the bid process.

Eugene Bradley, Santa Clara VTA Riders Union, expressed concern that only four percent of Santa Clara's population uses public transportation.

Terry Applegate, Silicon Valley Independent Living Center, expressed concern regarding the communication disconnect between VTA and community agencies. Ms. Applegate expressed further concern that doors on light rail do not stay open long enough for persons with disabilities to alight.

  
8.

Elements of the Silicon Valley Rapid Transit Corridor Preliminary Engineering Phase

Jack Collins, Chief Construction Officer, provided an overview of a presentation regarding the elements of the Silicon Valley Rapid Transit Corridor Preliminary Engineering Phase presented at the Board of Directors' Workshop of February 27, 2004.

Mr. Collins presented the technical and financial benefits, the professional/organizational aspects, and the political implications at the federal, state, and local levels of proceeding with the Preliminary Engineering for the BART Extension to Milpitas, San Jose and Santa Clara now.

Mr. Grace queried how projects are funded. Mr. Collins responded that there is an annual appropriation process at the Federal level. Mr. Collins stated that the California Transportation Commission approved a $45 million grant for the project.

Margaret Okuzumi, Bay Rail Alliance, stated that VTA is throwing $170 million down the drain for this project and further stated that the project is not going anywhere.

  

CONSENT AGENDA

9.

Minutes of the Board of Directors' Workshop Meeting of January 30, 2004

M/S/C (McLemore/McHugh) to approve the Minutes of the Board of Directors' Workshop Meeting of January 30, 2004.

  
10.

Minutes of the Board of Directors' Regular Meeting of February 5, 2004

M/S/C (McLemore/McHugh) to approve the Minutes of the Board of Directors' Regular Meeting of February 5, 2004.

  
 

ADMINISTRATION AND FINANCE COMMITTEE

11.

(Removed from the Consent Agenda and placed on the Regular Agenda.)

Adopt a Financial Stability Strategy, which includes revenue enhancement measures recommended by the Ad-Hoc Financial Stability Committee and revisions recommended by the Administration and Finance Committee on February 19, 2004.

  
12. M/S/C (McLemore/McHugh) to authorize the purchase of a one-year policy extension on the rail construction Builder's Risk policy with the Allianz Insurance Company, to cover the period from March 1, 2004 through April 30, 2005, for an amount not to exceed $86,431. In addition, authorize payment of the additionally owed premium for projects added to the policy during the original term for an amount not to exceed $154,000. This brings the total premium paid for the policy to $879,181.
  
13. M/S/C (McLemore/McHugh) to approve the appointment of Thomas Muniz, representing the City of Gilroy, to the Bicycle and Pedestrian Advisory Committee for the term ending June 30, 2004.
  
14. M/S/C (McLemore/McHugh) to adopt Resolution No. 04.03.02 amending the Citizens Advisory Committee (CAC),Technical Advisory Committee (TAC), and Bicycle and Pedestrian Advisory Committee (BPAC) bylaws as indicated; and the VTA Administration Code, as indicated, in order to permit the specified modifications to the CAC, TAC and BPAC bylaws.
  
15. M/S/C (McLemore/McHugh) to adopt Resolution No. 04.03.03 designating VTA's appointees to the SCVTA/ATU Pension Plan Board of Pensions.
  
16. M/S/C (McLemore/McHugh) to authorize the General Manager to amend the contract with Parsons Transportation Group for additional final design of the Route 237/I-880 Interchange Project, increasing the approved contract value by $300,000 for a new contract value not to exceed $5,406,339; and extend the term of the contract through March 31, 2005.
  
 

CONGESTION MANAGEMENT PROGRAM AND PLANNING COMMITTEE

17. M/S/C (McLemore/McHugh) to approve an increase of $1.45 million in the Bicycle Expenditure Program (BEP) allocation to the River Oaks Bicycle and Pedestrian Bridge over the Guadalupe River, for a total BEP allocation of $1.7 million.
  
 

TRANSIT PLANNING AND OPERATIONS COMMITTEE

18. M/S/C (McLemore/McHugh) to approve artist Ellen Sollod's schematic designs, the "Vernacular Generation" Light Emitting Diode (LED) Project at the Cisco Way Station and the "Cabinet of Invention" and "Camera Obscura" sculptures at the I-880/Milpitas Station.
  
19.

(Removed from the Consent Agenda and placed on the Regular Agenda.)

Authorize the General Manager to enter into a Memorandum of Understanding with Caltrans, the Capitol Corridor Joint Powers Authority (CCJPA) and the Santa Cruz Metropolitan Transit District (Metro) for the consolidation and improvement of the Highway 17 Express and Amtrak Santa Cruz-San Jose Connector bus service at no cost to VTA.

  
  
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REGULAR AGENDA

  
11.

Financial Stability Strategy

Frank Sharpless, Transportation Policy and Program Manager, provided an update of the Financial Stability Strategy which was deferred at the January and February 2004 Board of Directors' Meetings to allow additional time for the Board to consider the initial recommendations that were made as well as the subsequent February memorandum from a group of Board Members suggesting revisions to the original recommendation.

Mr. Sharpless stated that the item has been previously re-referred as well to the Administration and Finance Committee (A&F) for discussion at the February 19, 2004 Meeting. The initial recommendation as well as the proposed revisions to the recommendation were presented to A&F at the February 19, 2004 Meeting.

Mr. Sharpless noted that at the February 19, 2004 meeting, the Administration and Finance Committee reviewed and recommended Board approval of the recommended Financial Stability Strategy, as revised by the recommendations contained in the February 5, 2004 Board Memorandum.

Mr. Bradley expressed concern that VTA has embarked on a plan in which there would not be further service expansion in terms of buses for the next thirty years and requested that the Board of Directors reconsider the Agenda Item and create a Financial Stability Strategy that does not place everything on the backs of those who use transit as well as taxpayers.

Ms. Applegate stated that every time there is an increase in fares or a decrease in service there is a serious decline in ridership. Ms. Applegate expressed concern regarding the proposed paratransit fare hikes as well as the increase in the surcharge for people who live outside of the (Americans with Disabilities Act) ADA service area.

Chris Lepe, Transportation and Land Use Coalition, stated that VTA has a duty to provide cheap, affordable, reliable, and frequent service to its riders.

Ms. Okuzumi stated that VTA has aspects to consider other than extracting the most money possible from senior and disabled riders when setting fares and increasing farebox recovery.

M/S/C (Williams/Dando) to adopt a Financial Stability Strategy, which includes revenue enhancement measures recommended by the Ad-Hoc Financial Stability Committee and revisions recommended by the Administration and Finance Committee on February 19, 2004.

  
19.

Highway 17 Express Service Improvements Memorandum of Understanding

Matthew O. Tucker, Chief Operating Officer, reported that this item is of great benefit to VTA at no additional cost incurred as a result of providing improved service for Highway 17.

Board Member Williams stated that a memo was received from Associated Students, San Jose State University (SJS) regarding the impact of the change in fares to students, noting that quite a few students who live in Santa Cruz come up to SJS. Peter M. Cipolla, General Manager, responded that under the terms of the agreement with Santa Cruz Metropolitan Transit District, Santa Cruz establishes the fares, not VTA. Mr. Tucker stated that comments have been forwarded in a letter to Metro. Board Member Williams requested a response regarding the outcome of the comments forwarded to Metro.

Andy Chow, Associated Students of San Jose State University, expressed concern regarding the regular express one-way fare hike from $3 to $4 and the fare hike in the monthly pass from $80 to $90, a 12.5 percent increase. Mr. Chow suggested the use of a multi-ride fare.

Board Member Chavez requested that consideration be taken when establishing VTA's fare policy in order to create consistency between counties.

M/S/C (Chavez/Cortese) to authorize the General Manager to enter into a Memorandum of Understanding with Caltrans, the Capitol Corridor Joint Powers Authority (CCJPA) and the Santa Cruz Metropolitan Transit District (Metro) for the consolidation and improvement of the Highway 17 Express and Amtrak Santa Cruz-San Jose Connector bus service at no cost to VTA.

  
 

ADMINISTRATION AND FINANCE COMMITTEE CHAIRPERSON'S REPORT - Don Gage

There were no items submitted for the Regular Agenda by the Administration and Finance Committee.
  
 

CONGESTION MANAGEMENT PROGRAM AND PLANNING COMMITTEE CHAIRPERSON'S REPORT - Cindy Chavez

20.

High Occupancy Toll (HOT) Lane Feasibility Study

Board Members Chavez and Dando stated that they are excited to see the High Occupancy Toll (HOT) Lane Feasibility Study move forward.

Board Member Dando stated that cities across the United States are starting to use HOT lanes and further stated that the Federal government would encourage cities to use HOT lanes on a regional basis.

Board Member Dando stated that Southern California has had great success with HOT lanes over the past decade and noted that HOT lanes not only move commuters faster through traffic, but also generate millions of dollars that can be used on highway or transit improvement.

M/S/C (Dando/Chavez) to authorize the General Manager to execute a contract with TY Lin International/CCS Planning and Engineering, Inc. (TYLI/CCS) to prepare a HOT Lane Feasibility Study for an amount not to exceed $350,000; and further authorize the use of an amount not to exceed $350,000 from the Gateway and Corridor Study Fund for the HOT Lane Feasibility Study.

  
 

TRANSIT PLANNING AND OPERATIONS COMMITTEE CHAIRPERSON'S REPORT -

21.

Silicon Valley Rapid Transit Project Rail Systems Preliminary Engineering

Mr. Collins reported that this is the second of six engineering design contracts that would come to the Board of Directors between now and August 2004 for preliminary engineering services on the Silicon Valley Rapid Transit Project. Mr. Collins stated that design work would consist of determining traction power substation locations and require bulk power supply, line electric systems, communications, automatic train control, and optional services for subway ventilation design.

Mr. Collins stated that two firms submitted proposals, PGH Wong Engineering, Inc., and Parsons Brinckerhoff Quade & Douglas, Inc., a joint venture and the Parsons Transportation Group. VTA and BART selected the joint venture of PGH Wong/PBQ as the best-qualified firm. Mr. Collins stated that the contractor is committed to 19 percent Disadvantaged Business Enterprise (DBE) participation on the project.

Board Member Williams queried whether incentives are possible if a contractor can do a job faster. Mr. Collins responded that incentives are possible on construction contracts but not on design contracts. Mr. Collins stated that the structure of the contract is a cost plus fixed fee contract which means that if the contractor can get the work done faster or underneath the targeted hours, they earn a fixed fee. The incentive is to get the work done under the targeted hours.

Ms. Okuzumi stated that there is no rush to spend $170 million on preliminary engineering and further stated that it does not make any sense.

Mr. Grace queried regarding the number of projects currently being worked on by VTA. Chairperson Gage responded that VTP 2030 would be provided to Mr. Grace which would describe all VTA projects through the Year 2030.

Board Member Dixon stated that the Bay Area Rapid Transit Corridor Meeting was held last week with Fremont Mayor Morrison in attendance. Mayor Morrison extended to the Board of Directors his thanks and appreciation for the way it articulated VTA's stand to stand behind the preliminary engineering. Mayor Morrison also stated that he speaks for the residents of Fremont and they are 100 percent behind the project going into Warm Springs.

M/S/C (McHugh/Chavez) to authorize the General Manager to execute a contract with the joint venture of PGH Wong Engineering, Inc. (Wong), and Parsons Brinckerhoff Quade & Douglas, Inc. (PB) for systems design services for the Silicon Valley Rapid Transit (SVRT) Project in an amount not to exceed $14,220,000 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 possibly future construction management services once approval to enter into final design for the SVRT Project is determined. This contract is currently two percent ($250,000) federally funded.

  
22.

Cerone Complex Phase I Improvements Project Augment Construction Contract Amount

Mr. Collins reported that there are two elements of this request. The first involves transferring $800,000 in scope from the Life Safety, Communications and Security Project originally planned to be done at a later date. Mr. Collins stated that since VTA has deferred design and construction of Phase II and Phase III at the Cerone facility for budget reasons, it is necessary to complete this work now and have a functional facility. Mr. Collins reported that the second element is that $475,000 in changes were necessary to comply with regulatory requirements regarding Zero Emission Buses (ZEB) and the fire codes associated with the new ZEB bus maintenance building.

Board Member Casas queried whether companies doing business with VTA are scored regarding their good faith efforts. Mr. Cipolla stated that there are very few contracts that do not meet their established DBE goals. Mr. Cipolla stated further that the Board of Directors is provided with a quarterly report on DBE contracts.

Mr. Collins noted that every contractor with a DBE or Small Business Enterprise (SBE) goal is required to submit a monthly utilization report with their invoice which VTA tracks.

M/S/C (Chavez/Cortese) to authorize the General Manager to execute various construction contract change orders with Arntz Builders for construction of the Cerone Complex Phase I Improvements within an increased contract amount of not to exceed $12,762,000, an increase of $1,262,000 over the current level of authority delegated to the General Manager. This contract is 80 percent ($10,209,600) federally funded.

  
  
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OTHER ITEMS

23.

ITEMS OF CONCERN AND REFERRAL TO ADMINISTRATION

There were no Items of Concern and Referral to Administration.

  
24.

LEGISLATIVE REPORT

The Legislative Report was accepted as contained in the Agenda Packet.

  
25.

REPORT FROM THE AD-HOC RESTRUCTURING PROPOSAL COMMITTEE

Vice-Chairperson Pirzynski provided a status report on meetings held with the City Groupings to discuss potential composition changes among the City Groupings.

Vice-Chairperson Pirzynski reported that at the November 19, 2003 Meeting, the Committee reviewed restructuring proposals and requested that staff meet with each City Grouping to assess impacts of proposals on existing City Groupings. The Committee discussed advisory recommendations on major policy issues by PAC to the Board of Directors.

Vice-Chairperson Pirzynski reported that Cupertino Mayor Sandra James stated that Cupertino does not feel that the City needs to change its City Grouping at this time and stated further that VTA Staff would report on meetings with Group 2 Cities (Los Altos, Los Altos Hills, Mountain View, Palo Alto, Santa Clara, and Sunnyvale) and Group 4 Cities (Gilroy, Milpitas, and Morgan Hill) at the Ad-Hoc Restructuring Proposal Committee's April 2004 Meeting.

  
26.

SUMMARY MINUTES FROM STANDING COMMITTEES

A. Administration and Finance Committee

On order of Chairperson Gage, there being no objection, the Administration and Finance Committee Summary Minutes were accepted as contained in the Agenda Packet.

B. Congestion Management Program and Planning Committee

On order of Chairperson Gage, there being no objection, the Congestion Management Program and Planning Committee Summary Minutes were accepted as contained in the Agenda Packet.

C. Transit Planning and Operations Committee

On order of Chairperson Gage, there being no objection, the Transit Planning and Operations Committee Summary Minutes were accepted as contained in the Agenda Packet.

  
27.

REPORTS FROM ADVISORY COMMITTEES

A. Committee for Transit Accessibility (CTA)

On order of Chairperson Gage, there being no objection, the Committee for Transit Accessibility Report was accepted as contained in the Agenda Packet.

B. Citizens Advisory Committee (CAC)

On order of Chairperson Gage, there being no objection, the Citizens Advisory Committee Report was accepted as contained in the Agenda Packet.

C. Bicycle & Pedestrian Advisory Committee (BPAC)

On order of Chairperson Gage, there being no objection, the Bicycle & Pedestrian Advisory Committee Report was accepted.

D. Technical Advisory Committee (TAC)

On order of Chairperson Gage, there being no objection, the Technical Advisory Committee Report was accepted as contained in the Agenda Packet.

E. Policy Advisory Committee (PAC)

On order of Chairperson Gage, there being no objection, the Policy Advisory Committee Report was accepted.Chairperson Gage stated that PAC recommended at the Ad-Hoc Restructuring Proposal Committee that its Chairperson would orally report each month to the Board of Directors regarding issues of concern and recommendations of PAC.

Dolly Sandoval, Council Member from the City of Cupertino and Chairperson of PAC, stated that PAC is made up of members from each of the 15 cities and the County. Some of the issues agendized for this year include: 1) VTP 2030; 2) VTA financial status and plans; 3) transit and paratransit performance; 4) fare policy; 5) public transit to San Jose Airport; 6) Caltrain and ACE service and improvements; 7) evaluation of core downtown shuttle system as supplements to the regional system, and 8) analysis and comparison of rapid bus/express lane system.

PAC Chairperson Sandoval stated that since PAC is the only body in the VTA structure where all 15 cities and the County come together for discussion, she would urge the Board of Directors to make sure that each PAC member and alternate attend each PAC Meeting.

  
28.

REPORTS FROM JOINT POWERS BOARDS (JPBs) and REGIONAL COMMISSIONS

Chairperson Gage advised Board Members that reports from Joint Powers Boards (JPBs) and Regional Commissions were placed in front of them on the dais.

On order of Chairperson Gage, there being no objection, the reports were received and filed.

A. Peninsula Corridor JPB

B. Capitol Corridor JPB

C. Metropolitan Transportation Commission (MTC)

Ex-Officio Board Member Beall stated that at the April 2004 meeting a proposal would be considered to fund several projects from service transportation programs, the Congestion Management Air Quality Program and transportation enhancements funding to fund STP back bill.

  
29.

REPORTS FROM VTA POLICY ADVISORY BOARDS (PABs)

A. Vasona Light Rail PAB

There was no report from the Vasona Light Rail PAB.

B. Silicon Valley Rapid Transit Corridor PAB

There was no report from the Silicon Valley Rapid Transit Corridor PAB.

C. Caltrain PAB

There was no report from the Caltrain PAB

D. Downtown East Valley PAB

On order of Chairperson Gage, there being no objection, the Downtown East Valley PAB Report was accepted as contained in the Agenda Packet.

E. Highway PAB - South

There was no report from the Highway PAB - South.

  
30.

REPORT FROM THE CHAIRPERSON

Chairperson Gage reported that at the February 2004 Meeting of the Board of Directors David Casas and John McLemore were appointed to the Dumbarton Rail Corridor Policy Advisory Committee. VTA has three seats on the Committee and Breene Kerr has volunteered to be the third VTA representative.

M/S/C (Chavez/Cortese) to appoint Alternate Board Member Breen Kerr to represent VTA on the Dumbarton Rail Policy Advisory Board.

  
31.

REPORT FROM THE GENERAL MANAGER

Mr. Cipolla reported that a special CEO subcommittee of the MTC Partnership met on March 1, 2004 to discuss local control and discretion over revenue/project prioritization. The subcommittee will meet again on March 29, 2004. Mr. Cipolla stated that these discussions are intended to reach viable recommendations to forward to MTC.

Mr. Cipolla stated that the issues relate to project funding and level of respect for various Joint Powers Agreements. Mr. Cipolla concluded his remarks stating that he was encouraged with the results of this first meeting.

Mr. Cipolla reported that the Developers' Roundtable Discussion would be held on Wednesday, March 10, 2004. This is VTA's first foray into this arena. It is one of the first for any transit system at this early stage to actually bring developers into the process. Mr. Cipolla stated that it is as much for VTA's learning experience as it is for an exposure of the possibilities of the BART project to developers.

Mr. Cipolla reported that there are a core group of 8 to 12 persons, most of them local. There is also participation from Toronto. This is the first of several round-table discussions, one of which may be the Urban Land Institute Conference in the fall to discuss the project with developers. Mr. Cipolla stated that the purpose is to precede the RFP process and make sure that there is a clear understanding of what a developer might want and how a full blown partnership between VTA, a developer, and in some cases an individual city or community might be able to take full advantage of one of the major BART station sites and possibly some of VTA's other station sites on light rail or other locations.

Mr. Cipolla stated that there has been positive response regarding getting developers involved in the process at this early stage.

Board Member Dando stated that she is glad that a meeting has been scheduled to talk to the private sector, queried whether staff has researched areas that have had success getting private-sector monies into development around stations and requested a report regarding this research.

Board Member Dando requested that the Board of Directors be notified of future Developers' Roundtable Meetings.

  
32.

ANNOUNCEMENTS

Chairperson Gage announced that Board Members Cortese, McHugh, and Williams were re-elected to serve their respective cities and counties for the next four years.

  
33.

ADJOURNMENT

On order of Chairperson Gage, there being no objection, the meeting was adjourned in memory of Duane Rhodes at 7:53 p.m.

Respectfully submitted,

Judith Tinlin, Board Assistant

VTA Board of Directors

  
  
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