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Board Packet

Santa Clara Valley Transportation Authority Board of Directors

Thursday, June 15, 2006
12:00 PM

Sheriff's Department Auditorium
55 West Younger Street
San Jose, California

Minutes

1. CALLED TO ORDER

The Special Meeting of the Santa Clara Valley Transportation Authority’s (VTA) Board of Directors was called to order by Chairperson Chavez at 12:01 p.m. in the Sheriff’s Department Auditorium, 55 West Younger Avenue, San Jose, California.   In addition, the Board of Directors Meeting will be held at one teleconference location:   California State Association of Counties, 1020-Eleventh Street, Second Floor, Sacramento, CA

ROLL CALL

Members Present                                                 Members Absent
Nora Campos                                                          Jim Beall, (Ex-Officio)
Cindy Chavez, Chairperson
Dean Chu, Vice Chairperson
Dave Cortese
Don Gage
Dennis Kennedy
Breene Kerr
Liz Kniss
John McLemore (Ex-Officio)
Madison Nguyen
Greg Perry
Dolly Sandoval
Forrest Williams

Alternates Present                                     Alternates Absent                                 None                                                              Norman Kline 
                                                                      Jamie Matthews 
                                                                      Pete McHugh 
                                                                      Al Pinheiro 
                                                                      Ken Yeager

* Alternates do not serve unless participating as a Member.

A quorum was present.

Chairperson Chavez advised that the Brown Act requires action be taken by roll call vote when using teleconferencing to conduct a meeting.

Chairperson Chavez stated there will be a change to the order of the Agenda.

The Agenda was taken out of order.

  
4. ORDERS OF THE DAY

Chairperson Chavez stated that Board Member Kerr requested Agenda Item #2., Adjourn to Closed Session and Agenda Item #3., Closed Session Report be moved to the end of the Agenda.

Chairperson Chavez advised that Agenda Item #3.D., Adopt the Negotiation Committee’s Compensation recommendations for VTA General Counsel is deferred to the  August 3, 2006 Board of Director’s Meeting. 

Board Member Perry took his seat at 12:02 p.m.

Chairperson Chavez stated that staff requested that the following Agenda Items be moved to the Consent Agenda:  Agenda Item #10., Determine approximately 19,526 square feet of vacant land, subject to a survey, at the Page Mill Road Park and Ride Lot located on  El Camino Real in Palo Alto is no longer necessary for VTA use, and authorize the General Manager to send a written offer to sell or lease to public agencies that may be interested in the property; Agenda Item #11., Authorize the General Manager to execute all agreements and other documentation with the U.S. Fish and Wildlife Service,  City of San Jose, Santa Clara County Open Space Authority and others as necessary to facilitate the  long-term management of VTA’s Coyote Ridge Property;  Agenda Item #12., Approve the FY 2007 Lifeline Transportation Program;  Agenda Item # 13., Ratify the reappointment of Joe Walton to the Bicycle and Pedestrian Advisory Committee for the term ending June 30, 2006; Agenda Item #14., Adopt a support position for SB 1726 (Lowenthal), which updates state statutes related to destination head signs on public transit buses.  Adopt an oppose position for AB 2621 (Strickland), which eliminates the sales tax for the purchase of motor vehicle fuel, and; Agenda Item #15., Receive the Monthly Legislative History Matrix.

Board Member Kerr requested that Agenda item #10., Determine approximately 19,526 square feet of vacant land, subject to a survey, at the Page Mill Road Park and Ride Lot located on El Camino Real in Palo Alto is no longer necessary for VTA use, and authorize the General Manager to send a written offer to sell or lease to public agencies that may be interested in the property be removed from the Consent Agenda and placed on the Regular Agenda.

M/S/C (Gage/Campos) to accept the Orders of the Day.

Board Member Williams took his set at 12:05 p.m.

  
5. REPORT FROM THE GENERAL MANAGER

There was no report from the General Manager.

  
6. PUBLIC PRESENTATIONS

There were no Public Presentations.

  

REGULAR AGENDA

7. Debt Management Policy

Michael T. Burns, General Manager, stated the Memorandum requests approval of the Debt Management Policy. Mr. Burns noted the one change made to the Debt Management Policy is the removal of the provision that farebox revenues could be used as security for bonding.   The Debt Policy will be discussed at the Board Workshop scheduled on December 1, 2006.   The Board of Directors will receive training regarding their fiduciary responsibility and the Administration Finance Committee will create a work program. 

Board Member Gage stated the training session will assist Board Members in understanding their disclosure obligated under Federal Securities Laws.

Board Member Perry commented that it is premature to approve a debt policy that includes interest rate swaps.   Board Member Perry expressed concern regarding proceeding with a Debt Management Policy without the debt limits being decided upon beforehand.   Board Member Perry stated that the Debt Management Policy is incomplete.

Board Member Sandoval stated that it is important, for the Board of Directors to adopt a debt policy to allow VTA to borrow money.   However, Board Member Sandoval requested a fuller explanation of interest rate swapping be provided to the Board of Directors at the December 1, 2006 Board Workshop, as well as all of the tools available to the Board of Directors referenced in the Debt Management Policy.

Board Member Sandoval advised that she has asked Roger Contreras,  Chief Financial Officer, to address the debt limit at the December 1, 2006  Board Workshop.  Mr. Burns stated it is a weighty issue and the item would be brought back for a full discussion at the December 1, 2006 Board Workshop.

Mr. Burns assured the Board Members that any and all issuance of debt will be brought to the Board of Directors to ensure that they have control over the amount of issued debt. 

Board Member Kerr reminded the Board of Directors that the swap bond issues will be discussed under Agenda Item #8., 2006 Sales Tax Revenue Bonds – secured by 2000 Measure A Sales Tax.

Board Member Kerr stated that the idea of how much bonding is appropriate for this organization is something that the Board of Directors should discuss at greater length and should be an agendized item for discussion.   Board Member Kerr recommended that if the Board Members need further explanation on fund swapping they should meet with Mr. Contreras. 

Member Kennedy referenced the dated June 14, 2006 from the Amalgamated Transit Union (ATU) and asked if the policy would allow bonds to be used for temporarily sustaining bus and light rail services.   Mr. Burns responded the answer is yes.   Mr. Burns reported that bonds can be used for temporarily sustaining bus and light rail service and it is legal for VTA to do so.   Mr. Burns clarified that staff is not proposing that any of the bond funds would be used for operating purposes.

Board Member Kennedy requested clarification about bonding to sustain service.   Mr. Contreras clarified that the Debt Management Policy does not specifically address bonding for that purpose nor does the Debt Management Policy preclude it.   Mr. Contreras advised that it will be discussed in greater detail at the December 1, 2006 Board Workshop. 

Tom Fink, ATU, advised that his questions have been answered.   Mr. Fink stated that the adoption of the policy does not preclude the strategy of allowing bonding for the purpose of temporarily sustaining buses and light rail.

M/S/C (Gage/Sandoval) on a vote of 11 ayes to 1 noes to 0 abstentions to approve the Debt Management Policy, which establishes guidelines for the issuance of management of VTA’s debts.  Board Member Perry voted no.

  

CONSENT AGENDA

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

Determine approximately 19,526 square feet of vacant lane, subject to a survey, at the Page Mill Road Park & Ride Lot located on El Camino Real in Palo Alto is no longer necessary for VTA use, and authorize the General Manager to send a written offer to sell or lease to public agencies that may be interested in the property.

  
11. Coyote Ride Property Management Agreements

M/S/C (Gage/Campos) to authorize the General Manager to execute all agreements and other documentation with the U.S. Fish and Wildlife Service, City of San Jose,  Santa Clara County Open Space Authority and others as necessary to facilitate the long-term management of VTA’s Coyote Ridge Property.

  
12. FY 2007 Lifeline Transportation Program

M/S/C (Gage/Campos) on a vote of 11 ayes to 1 no to 0 abstentions to approve the   FY 2007 Lifeline Transportation Program fund.  Member Perry voted no.

  
13. Bicycle and Pedestrian Advisory Committee Reapointment

M/S/C (Gage/Campos) to ratify the reappointment of Joe Walton, City of Cupertino, to the Bicycle and Pedestrian Advisory Committee for the term ending June 30, 2008.

  
14. State Legislative Positions: SB 1726 (Lowenthal) and AB 2621 (Strickland)

M/S/C (Gage/Campos) to adopt a support position for SB 1726 (Lowenthal), which updates state statutes related to destination head signs on public transit buses.  Adopt an oppose position for AB 2621 (Strickland), which eliminates the sales tax for the purchase of motor vehicle fuel.

  
15. Monthly Legislative History Matrix

M/S/C (Gage/Campos) to   accept the Monthly Legislative History Matrix.

Board Member Perry requested that the following items be removed from the Consent Agenda and placed on the Regular Agenda:  Agenda Item #8., 2006 Sales Tax Revenue Bonds-secured by 2000 Measure A Sales Tax and Agenda Item #9., 2000 Measure A Revenue and Expenditure Plan.

Chairperson Chavez advised that the two agenda items have already been moved to the Regular Agenda under Orders of the Day.  Chairperson Chavez clarified that Agenda Item #11., Coyote Ridge Property Management Agreements, Agenda Item #12., FY 2007 Lifeline Transportation Program, Agenda Item #13., Ratify the reappointment of Joe Walton to the Bicycle and Pedestrian Advisory Committee for the term ending June 30, 2008, Agenda Item #14., Adopt asupport position for SB 1726 (Lowenthal), which updates state statutes related to destination head signs on public transit buses.  Adopt and oppose position for AB 2621 (Strickland), which eliminates the sales tax for the purchase of motor vehicle fuel, and Agenda Item #15., Receive the Monthly Legislative History Matrix.

  

REGULAR AGENDA

8. 2006 Sales Tax Revenue Bonds - secured by 2000 Measure A Salex Tax

Mr. Burns stated that the Memorandum requests approval of a resolution to authorize the refund of $371 million of debt that was previously issued on the  2000 Measure A Program.   Mr. Burns reported that staff is requesting approval of an additional $45 million to complete the work committed as part of the agreement made with Union Pacific Railroad (UPRR) for the relocation of the train tracks off of the  right-of-way that VTA purchased for the BART Project and to improve operational efficiency..

Mr. Burns noted that Page 2 of the Memorandum lists projects funded by the bond proceeds. 

Mr. Burns advised that the Public Financial Management (PFM), swap advisory services experts, are present at the meeting to assist staff in answering any questions from Board Members.

Board Member Perry stated that that the track work is part of the BART Project and given the fact that the 2006 Measure A failed to pass in the June election, he does not know how VTA can finish paying for the BART line to the City of Milpitas.    Board Member Perry continued that there is no urgency on the track work because trains will not be running on the tracks in the near future.  Board Member Perry expressed concern regarding issuing bond debt for a project that would be done in either 2007 or 2008.  Board Member Perry pointed out that delaying the project could save one to two years of interest on $45 million. 

Board Member Kerr queried if VTA has funded a study on the Rengstorff Crossing.  Mr. Burns responded that the City of Mountain View completed a Conceptual Study.  Board Member Kerr queried as to the cost for VTA to move the Rengstorff Crossing Project down the list and discuss at a future meeting the cost of the project.   Board Member Kerr stressed that the project is extremely important to the North County.   Chairperson Chavez stated it may be more appropriate to discuss Caltrain projects under Agenda Item #9., 2000 Measure A Revenue and Expenditure Plan.

Board Member Kerr request clarification as to whether or not the projects listed on top of Page 2 were advanced using the money already received through the first bond issue.   In response to Board Member Kerr’s query, Mr. Burns stated that the money is being spent. 

Mr. Burns advised that Caltrain Capital needs are being directed to the Policy Advisory Committee’s (PAC) Subcommittee on Caltrain’s Capital Needs.   Board Member Kerr queried if the Subcommittee of the PAC on Caltrain Capital Needs will make recommendations regarding funding being expended for preliminary design.   Mr. Burns responded that the Subcommittee of the PAC will forward recommendations regarding Caltrain improvements to the Board of Directors. 

Board Member Kerr requested that funding be made available for conceptual design and Preliminary Engineering (PE) for Caltrain Improvements. Board Member Kerr noted that $10 million per year has been funded for the next five to six years but how the projects will be identified should be discussed at the Board level.   Chavez recommended discussing Board Member Kerr’s comments Caltrain Capital needs and funding during consideration of Agenda Item #9., Approve the 2000 Measure A Revenue and Expenditure Plan. 

Vice Chairperson Chu inquired as to when the Board of Directors will be issuing additional bonds.   Mr. Burns replied that at this time staff does not know when that will happen and does not expect anything to happen before the December 1, 2006 Board Workshop.

Vice Chairperson Chu referenced Board Member Kerr’s comments and inquired if there is, within the latitude of the capital projects listed on Page 2 of the Memorandum, a way of rewording one of the items to include an expansion to look at PE for Caltrain projects in the near term.    Mr. Burns responded yes, but that is a policy decision that will need to be made by the Board of Directors. 

Board Member Sandoval requested assurance and it was provided that the Subcommittee of the PAC on Caltrain Capital Needs will provide their recommendations to the Board of Directors for final approval.

Board Member Sandoval queried if it is necessary to revise the Project List to ensure that the funding is spent as stated in the documented way if the amount is increased.  Suzanne Gifford, General Counsel, responded that the Board of Directors has the option to vote on an increase but it cannot take action with regard to increasing the amount today as it is not agendized and the public has not been provided with the opportunity to present their input. 

Board Member Williams urged that the Board of Directors deal with matter that is before them.   Board Member Williams expressed concern that if the Board of Directors makes a commitment and the funding is not available, it could be an issue.   Board Member Williams stated it is appropriate for staff to want flexibility to close the deal with UPRR.   If extra funding is needed for additional Caltrain Improvements that staff could return to the Board of Directors with a request for additional bonding. 

Mr. Burns referenced the $45 million stating it will be some time before staff knows whether there is flexibility within the $45 million.    With regard to Caltrain projects, if all that is needed is $1 million to $2 million, to advance the design phase, it may be possible to obtain funding resources through internal prioritizations as opposed to issuing additional bonds.  Board Member Sandoval thanked Mr. Burns for the solution he offered stating that going out for smaller amount of bonds at different times is not cost effective.             

Board Member Kennedysupportedthe General Manager’s recommendation because there is a need to move forward with a Caltrain Capital Needs Study, and, particularly to look at the Rengstorff Crossing the sooner the better.

Chairperson Chavez asked when the PAC Subcommittee on Caltrain Capital Needs would complete its process.   Mr. Burns responded that the expectation is that the Committee will have preliminary recommendations by the end of the 2006.   Chairperson Chavez recommendedagendizing an update from the PAC Subcommittee on Caltrain Capital Needs for the August 3, 2006 Board of Directors Meeting to allow  Board of Directors the chance to discuss the items and provide input.

Chairperson Chavez requested clarification that staff will try to identify $2 million for PE for Caltrain Capital Needs.   Mr. Burns responded yes, but that it will take several months to do the work. 

Board Member Williams requested that staff perform an evaluation, come back, and advise the Board of Directors of the next steps that need to be taken.

Board Member Perry recommended that given the input from the General Manager the amount be kept the same but a clause be added to reflect that should other projects come in low VTA has the flexibility to use bond proceeds for Caltrain designs.

Board Member Campos took her seat at 12:26 p.m.

M/S/C (Williams/Cortese) to adopt Resolution No. 06.06.15 authorizing the General Manager or Chief Financial Officer to take all necessary actions, enter into agreements and execute documents for VTA to issue bonds in a par amount not to exceed $440 million (2006 Bonds), the proceeds of which will refund VTA’s 2003A, 2004A and 2004B Measure A Sales Tax Revenue Bonds, fund additional 2000 Measure A projects and pay the cost of issuance; and, further authorize the General Manager or Chief Financial Officer to enter into one or more interest rate swap agreements.  To approve that this item be agendized at the August 3, 2006 Board Meeting after discussion with the Policy Advisory Committee ‘s Caltrain Capital Needs Subcommittee.  Committee, that staff will make the most appropriate recommendation for funding options and that VTA retain the flexibility to use bond proceeds for Caltrain projects designs.

  
9. 2000 Measure A Revenue and Expenditure Plan

Mr. Burns stated that staff has been following direction provided from the  Board of Directors regarding reaching a consensus on the Expenditure Plan, which included the assumption of revenue equivalent to a quarter-cent sales tax. 

Mr. Burns noted that the Expenditure Plan was never contingent on the passage of the County of Santa Clara’s sales tax measure.

Mr. Burns reported that per the Board of Directors' request, the Project Advisory Committee was formed, which had six meetings throughout the County of Santa Clara.   The meetings were held at the VTA Campus, City of Gilroy, City of Santa Clara, City of Milpitas, and City of Mountain View in the evening to allow public input.   The meetings were advertised in newspapers, local publications in areas where the meetings were held, VTA’s website, as well as discussed at the Advisory Committee,  Standing Committee and Board of Directors Meetings. 

Mr. Burns provided a summary of changes the Project Advisory Committee recommended as follows:   1) South County - full double tracking to the City of Gilroy by 2011, 2) Defer South County Electrification – move the completion date of electrification to 2036 to fund the double tracking to the City of Gilroy and other potential improvements,  3) Bus Rapid Transit (BRT) – combine four BRT corridors into one budget of $166.6 million,  4) Nieman Light Rail Extension – shift the Nieman Light Rail Extension from Eastridge to start final design in 2018 and completion of construction by 2024, and, 5) Caltrain Improvements – advance $100 million in capital improvements from Fiscal Year (FY) 2007 through FY 2015.  Mr. Burns stated that it was the Project Advisory Committee’s recommendation that staff look to advance design and maintain flexibility to move projects based on their readiness.   The Project Advisory Committee also recommended regular reviews of the Expenditure Plan.  The Projects in the Expenditure Plan are 80 percent funded and there are other possibilities for funding the 20 percent unfunded balance, including the infrastructure bonds. 

Vice Chairperson Chu acknowledged the Project Advisory Committee Members, Forrest Williams, Dolly Sandoval, Don Gage, Liz Kniss and himself. Vice Chairperson Chu stated that the Project Advisory Committee held six meetings with each meeting focusing on different elements of the Expenditure Plan.

Chairperson Chu stated that the Project Advisory Committee emphasized the need for regular reviews of the Expenditure Plan.

Chairperson Chu stated that while VTA is in receipt of funding from the State of California there is still a need to find additional revenue and to work with VTA’s State and Federal Representatives to obtain additional funding to complete projects. 

Board Member Perry requested information on what pools of funding could be used to fund the unfunded balance of the Program.   Mr. Burns advised that other sources of revenue could include infrastructure bonds, Benefit assessment Districts, private partnerships and joint development opportunities. 

Board Member Perry queried how much land is available for joint development.   Mr. Burns responded that per the Board of Director’s approval, staff is conducting a study that is looking at the potential for joint development around existing and future station sites.   David Miller, Commercial Development Manager, stated it would be premature to start make projections about funding, but at this time staff is working on approximately 16 sites.  Some of the more recent information received stated that whether the property is sold or leased, the first two projects with a ground lease agreement VTA would receive approximately $2 million to $4 million per year. 

Board Member Perry expressed concern that the sources of revenue mentioned by  Mr. Burns would not cover funding shortfall.   Mr. Burns stated that another option is for VTA to go to the ballot if the Board of Directors gives direction for a quarter-cent sales tax in 2008 that would cover the 20 percent shortfall.

Board Member Kennedy thanked the Project Advisory Committee for their work.   Board Member Kennedy stated that while he is satisfied to move forward with the Expenditure Plan,but his one major qualification is restoring bus service.  

Board Member Gage stated he is very comfortable with the fact that the Expenditure Plan will be reviewed every year during the lifetime of the Measure which will provide the opportunity to reprioritize or push a project back or off of the list.   Board Member Gage also stated that it is important for the Board of Directors to adopt the Plan because without a plan there are no goals and without any goals nothing will be accomplished. 

Board Member Kerr queried where the DeAnza Transit Center and the potential for doing a similar project at Foothill College fit into the Expenditure Plan and further inquired what category the DeAnza Transit Center is funded under.   Jack J. Collins, Chief Construction Officer, responded that VTA’s Capital Budget and 2000 Measure A Expenditure Plan will fund the DeAnza Transit Center Project.   In response to Board Member Kerr’s query, Mr. Collins responded that the DeAnza Transit Center Project improvements are scheduled to commence Fiscal Year 2008 so VTA will start putting money aside at the next budget cycle.   Mr. Collins advised that the PE is nearly finished and the estimates have been prepared and reviewed by DeAnza College.    Board Member Kerr queried if VTA can find a way to fund a similar but smaller improvement at Foothill College.  Mr. Collins responded that the Operations Planning Group studies various transit facilities and performs the studies on necessary improvements. 

Board Member Kerr referenced Attachment 3., VTA 2000 Measure A Program – Project Advisory Committee Recommendations – June 2006, Item 30., Pavement Management, County Expressway, and Bicycle & Pedestrians and queried if it is the appropriate time to contemplate this Project considering VTA’s financial situation.   Mr. Burns responded that the Project is not currently funded under the 2000 Measure A and would be part of the 20 percent that staff needs to find funding for. 

Board Member Nguyen expressed concern regarding answers provided to questions raised by Board Member Perry.   Board Member Nguyen queried what the impact would be if the Expenditure Plan was not approved.   Mr. Burns responded that the most current need for the Expenditure Plan is to use it as part of the package to refund and refinance the bonds in order for VTA to get the best financial terms as part of that transaction.

Board Member Cortese stated it is important that there be a more frequent discussion and regular review of the Expenditure Plan.   Mr. Burns stated that discussions were held with regard to continuing the Project Advisory Committee, about expanding the Project Advisory Committee to include the Policy Advisory Committee, outside VTA Members, and the business community.   Mr. Burns advised that recommendations and options will be provided to the Board of Directors at the August 31, 2006 Board of Directors Meeting for how to structure the Board review of the Expenditure Plan.   Board Member Cortese stated it is not necessary to have a full-pledged Ad-Hoc Committee but there needs to be something that has an equivalent amount of Board scrutiny as an Ad-Hoc level or full Board level.

Chairperson Chavez stated that the Ad-Hoc Financial Stability Committee was actually one of the best committees in terms of what it produced and the Board Members who participated in the Ad-Hoc Committee have been helpful to the rest of the Board in terms of helping them to understand the big picture. 

Chairperson Chavez stated that the Ad-Hoc Committee’s work would be considered as part of the Audit of the overall Organization and queried when a report will be provided to the Board of Directors.   Mr. Burns responded that staff expects to present the outcome of the audit to the Board of Directors.   Chairperson Chavez recommended reviewing the results of the audit, results from the Ad-Hoc Financial Stability Committee Meetings and the Expenditure Plan together.

Chairperson Chavez explained to Board Member Nguyen that the Board of Directors have been holding discussion regarding the Expenditure Plan for 18 months. Action has not been taken to date because every time the Board of Directors are ready to vote on it representatives from different parts of the county had issues, thus, there was a need to revisit the Expenditure Plan again.

Board Member Kerr stated he has concerns regarding supporting the Expenditure Plan because adequate funding is not available to do one-third of the necessary Caltrain Projects.   Board Member Kerr expressed concern regarding funding availability to complete building BART and Downtown East Valley Projects. 

Board Member Kerr stated that Caltrain dollars are inadequate and Caltrain is an existing transportation system that works.   The reasons more people are not utilizing Caltrain service is because the parking lots are full, there is a need for at-grade separations to have increased frequency, and there is a need to continue to improve the stations to support the increased ridership and community buses feeding into the stations to service the communities. 

Board Member Nguyen thanked Chairperson Chavez for her thoughts and information. Board Member Nguyen concurred with Member Cortese’s suggestions and is hopeful that the committee and workshop meetings will continue. Board Member Nguyen expressed concern that the numbers do not really coincide with the service and programs that VTA can provide. 

Ex Officio Board Member McLemore stated he has defended and will continue to defend the Expenditure Plan to the Metropolitan Transportation Commission and that he would like to see more funding for Caltrain upfront because Caltrain is one of the major transportation programs in the County of Santa Clara.  

Ex-Officio Board Member McLemore advised that the County of San Mateo is prepared to start spending funding they received in 2011 through 2014.  Ex-Officio Board Member McLemore advised that the Caltrain Board of Directors has done an analysis due to the increase of gasoline prices and the sooner electrification is completed there will be $1 million in savings per year. 

Vice Chairperson Chu explained to Board Member Kerr that there may be other funding available for the Rengstorff Crossing that VTA may be eligible for.

Board member Perry suggested shifting funding from the Pavement Management Program to fund Caltrain.   Board Member Kennedy suggested that Pavement Management be shifted to a much lower priority on the list, below Caltrain.   Mr. Burns stated at the Pavement Management allocation is based on input received from cities and the County of Santa Clara.

Board Member Sandoval stated that as a representative of the West Valley Cities  she need to say that while the Pavement Management line is unfunded, the West Valley Cities would like to see it stay in the Expenditure Plan because that is all they will be receiving from the Expenditure Plan other than bus service.

Board Member Gage left the meeting at 1:48 p.m.

Board Member Campos left her seat at 1:49 p.m.           

M/S/F (Sandoval/Williams) on a vote of 7 ayes, to 5 noes to 0 abstentions to end debate and call for the question. Board Members Cortese, Kennedy, Kerr, Nguyen, and Perry voted no.

M/S/F (Perry/Cortese) on a vote of 3 ayes to 9 noes to 0 abstentions to approve sunsetting the Expenditure Plan on June 15, 2006.  Board Members Campos, Chavez, Chu, Gage, Kerr, Kniss, Nguyen, Sandoval, and Williams voted no.

M/F/C (Chu/Williams) on a vote of 11 ayes to 1 no to 0 abstentions to approve the 30-year Revenue and Expenditure Plan as recommended by the Project Advisory Committee.  Board Member Perry voted no.

  
10. Disposal of Surplus Land at the Page Mill Road Park & Ride Lot

Board Member Kerr queried if the property located at the El Camino Real and Oregon Expressway is currently a Park and Ride Lot and if VTA is considering selling it back into private ownership.   Mr. Burns responded that the site is located on the El Camino Real and Oregon Expressway, and yes, VTA is considering selling it back into private ownership. 

Mr. Miller noted there has been an offer from an individual that is a partner in the neighboring development to the property site.    Mr. Miller noted that after careful consideration staff has decided to reserve the bike lockers on the property site and improve the bus stop areas. 

Board Member Kerr queried if an appraisal of the property has been considered.  Mr. Miller responded that an appraisal was conducted in-house by VTA and the potential purchase had an appraisal prepared as well.    The appraisal places the value of the property between $90.00 and $100.00 per square foot equaling $1.75 million to $1.95 million. 

Board Member Kerr expressed concern about selling property that serves Rapid Line 522, Line 22, and Dumbarton Express bus routes.   Board Member Kerr stated he does not think that selling the property is a good idea and that VTA should consider reserving the right to develop it into a mini-transit center. 

Board Member Sandoval requested staff to respond to Board Member Kerr’s concerns.   Mr. Burns stated that while Board Member Kerr is correct that the property is adjacent to the Rapid Bus 522 Bus Stop, the Park & Ride Lot itself is underutilized per studies that have been prepared.

Board Member Sandoval queried if any assessment has been done or consideration given to collaborating with a coffee or bagel shop as a means of obtaining a new revenue source for VTA.    Mr. Miller responded the idea was presented to the City of Palo Alto who indicated that they would be opposed to any commercial usage at the site location because of the size of the lot that might cause traffic to back up.   Mr. Miller stated that they have also discussed the idea of residential mixed usage with the City of Palo Alto and again there was opposition to retail usage that might exacerbate the traffic situation. 

Mr. Miller assured the Board Members that staff plans to improve the bus stop and shelter area but the area does not have a history of active parking demand.   He noted that the immediate goal is to dispose of property, which must be advertised to public agencies for a 60-day period. 

Board Member Kerr informed the Board of Directors that at the corner opposite of the site for sale, two synthetic soccer fields have just been built as part of a development deal by Stanford University that also includes extra office buildings.   Board Member Kerr requested that sale of the site be postponed for two years to ensure that the site will not be needed for overflow parking from the soccer games and increased bus use to the games which may involve building a more elaborate bus stop. Board Member Kerry expressed concern that VTA is considering selling property located in the middle of the  City of Palo Alto.

M/S/C (Kennedy/Kniss) on a vote of 11 ayes to 0 noes to 0 absententions to defer action and if staff is considering bringing it back to the back to the Board of Directors for action, staff will meet with the Board Members representing the North County Area.

Board Member Campos took her seat at 1: 59 p.m.

  

OTHER

16.. ANNOUNCEMENTS

There were no Announcements.

  
10. Disposal of Surplus Land at the Page Mill Road Park and Ride Lot

Sally Probst, Interested Citizen, stated restaurants and coffee shops near the site could utilize the Park & Ride Lot.   Recommended the City of Palo Alto purchase the site for an affordable or senior housing.

Board Member Kniss left the meeting at 2:05 p.m.

Meeting recessed at 2:05 p.m.

Meeting reconvened at 2:09 p.m.
  
2. ADJOURNED TO CLOSED SESSION at 2:09 p.m.

A.  Conference with Labor Negotiators
[Government Code Section 54957.6]

VTA Designated Representatives:
Roger Contreras, Chief Financial Officer
Bill Lopez, Chief Administrative Officer
Robert Escobar, Manager, Office of Employee Relations

Employee Organization:
Service Employees International Union (SEIU) Local 715

B.  Conference with Labor Negotiators
[Government Code Section 54957.6]

VTA Designated Representatives:
Roger Contreras, Chief Financial Officer
Bill Lopez, Chief Administrative Officer
Robert Escobar, Manager, Office of Employee Relations

Employee Organization:
Transportation Authority Engineers and Architects (TAEA)

C.   Public Employee Performance Evaluation
[Government Code Section 54957]

Title: General Counsel

D.  Conference with Labor Negotiators
[Government Code Section 54957.6(a)]

VTA Designated Representatives:
Dean Chu, Vice Chair, Board of Directors
Don Gage, Director
Madison Nguyen, Director

Unrepresented Employee:
General Counsel

Board Member Campos left the meeting at 2:52 p.m.

RECONVENE TO OPEN SESSION at 3:00 p.m.

  
3. CLOSED SESSION REPORT

B.  Conference with Labor Negotiators
[Government Code Section 54957.6]

VTA Designated Representatives:
Roger Contreras, Chief Financial Officer
Bill Lopez, Chief Administrative Officer
Robert Escobar, Manager, Office of Employee Relations

Employee Organization:
Transportation Authority Engineers and Architects (TAEA)

There was no reportable action taken during Closed Session.

C.  Public Employee Performance Evaluation
[Government Code Section 54957]

Title:  General Counsel

There was no reportable action taken during Closed Session.

A.  Conference with Labor Negotiators
[Government Code Section 54957.6]

VTA Designated Representatives:
Roger Contreras, Chief Financial Officer
Bill Lopez, Chief Administrative Officer
Robert Escobar, Manager, Office of Employee Relations

Employee Organization:
Service Employees International Union (SEIU) Local 715

M/S/C (Cortese/Chu) on a vote of 8 ayes to 0 noes to 1 abstention to authorize the General Manager to amend and extend the terms and conditions of a labor agreement negotiated between Santa Clara Valley Transportation Authority (VTA) and Service Employees International Union (SEIU) 715.   Board Member Perry abstained.

Mr. Fink urged the Board of Directors to approve the negotiated contract between VTA and SEIU Local 715.  Mr. Fink stated the contract represents the beginning of catch up for employees who were willing to share in the sacrifice during the worst times of the budget crisis.  Mr. Fink also stated in order to continue with the flexibility and cooperativeness that the bargaining units at VTA have demonstrated during the crisis, it is important that when times get better that the contract improves accordingly.

Marilyn Smith, Representative of Local 715 SEIU, stated that on June 14, 2006 the Members ratified the tentative agreement negotiated with VTA management.  Ms. Smith noted that this was the most difficult negotiation since the inception of VTA.  Ms. Smith noted 715 SEIU Membership appreciates Managements willingness to work through some very difficult issues.  Ms. Smith stated that the 715 SEIU Members encourage the Board of Directors to approve the settlement that has been reached.

Ms. Gifford noted that the effective date of the salary increase for the year is June 5, 2006.  Ms. Gifford stated the salary increase will be reflected on the first payment that occurs after June 15, 2006.

D.  (Deferred adopting the Negotiation Committee’s Compensation recommendations for VTA General Counsel to the August 3, 2006 Board of Directors Meeting.)

Conference with Labor Negotiators
[Government Code Section 54957.6(a)]

VTA Designated Representatives:
Dean Chu, Vice Chair, Board of Directors
Don Gage, Director
Madison Nguyen, Director

Unrepresented Employee:
General Counsel

  
17. ADJOURNMENT

On order of Chairperson Chavez, there being no objection, the meeting was adjourned at 3:04 p.m.

Respectfully submitted,

Gilda M. Grozdanich, Board Assistant
Board of Directors

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

NOTE:  M/S/F MEANS MOTION FAILED.