Skip to Main Content Skip to Side Navigation Skip to Top Navigation

Board of Directors Meeting

December 12, 2002

City Council Chambers
San Jose City Hall
801 North First Street
San Jose, California

Summary Minutes

1. CALL TO ORDER at 9:10 a.m.

2. Administered Oath of Office to John McLemore an interim appointment from the City of Santa Clara representing Group 2.

3. ROLL CALL

Members Present: Alvarado, Beall (Ex-Officio), Chavez, Cortese, Dando, Gage, Gonzales, Kennedy, La Poll, McHugh,
McLemore, Mossar, Springer, Williams,

Members Absent: Pirzynski, Valerio, Yeager.

4. ORDERS OF THE DAY

Chairperson Gonzales took his seat at 9:13 a.m.

Added to the Consent Agenda Item #27.X., Authorize the General Manager to enter into a contract to purchase software user licenses from SAP Public Services, Inc. in the amount of $766,965 with an option to purchase additional licenses for $233,820 by July 2005 to the Consent Agenda.

Accepted Orders of the Day.

5. AWARDS AND COMMENDATIONS

Employees of the Month

Presented awards to Robert Enriquez, Cerone Maintenance and Carmen Lopez, Cerone Operations; as our Employees of the Month for December 2002; and Randy Hester as Supervisor of the Quarter. Patty Ngo, Chaboya Administration, was unable to attend.

CONSENT AGENDA

Removed from the Consent Agenda and placed on the Regular Agenda: Agenda Item #11, Approve the FY 2003-04 Budget Assumptions.

6. Approved the Minutes of the Regular Board of Directors’ Meeting of November 7, 2002.

ADMINISTRATION AND FINANCE COMMITTEE

7. Adopted the amended Appendix of Designated Positions and Disclosure Categories of the Conflict of Interest Code for the Santa Clara Valley Transportation Authority (VTA) and directed the Board Secretary to forward the revised list of designated positions to the Santa Clara County Board of Supervisors for approval.

8. Approved the Committee for Transit Accessibility (CTA) Appointments/Re-Appointments.

9. Approved the Citizens Advisory Committee (CAC) Appointments/
Re-Appointments.

10. Approved amending the Policy Advisory Committee (PAC) bylaws to modify the minimum number of affirmative votes required to approve an item from nine to a majority of the members at the time of the vote, so long as a quorum is present; and amending the VTA Administrative Code relative to the minimum number of votes required to take any action, in order to permit this modification.

11. Removed from Consent Agenda and placed on Regular Agenda.

Agenda Item #11, Approve the FY 2003-04 Budget Assumptions.

12. Authorized the General Manager to implement, in multiple tranches, a domestic leveraged lease (the “Transaction”) in the form of a lease to service contract over VTA’s low floor light rail vehicles (the “LRV’s”), including the selection of the necessary participants to implement the Transaction; provided that (a) VTA receives a net benefit of at least $23.0 million assuming a Transaction size of $415 million, or a prorated benefit per tranche; (b) VTA does not become obligated to pay excessive costs if the Transaction cannot be closed for any reason; (c) in the opinion of VTA staff, the risks of the Transaction do not exceed the financial benefit to be received; and, further authorized the General Manager to couple the Transaction with a cross-border lease transaction over the same LRVs provided the risks do not exceed the financial benefit to be received, which is estimated at an additional $5.0 to $8.0 million.

13. Authorized the General Manager to execute a contract with FCI Constructions/Pavex, a Joint Venture, the lowest responsible bidder in the amount of $52,264,152 for construction of the Route 85/101 North Interchange Project in the City of Mountain View, which is part of the 1996 Measure B Transportation Improvement Program.

14. Approved the submittal of an “AB 3090” funding request to the California Transportation Commission (CTC) that enables VTA to advance local funds for the environmental and design phases of the Route 152/156 Interchange project establishing a repayment plan using State Transportation Improvement Program (STIP) funds; authorized the use of $3.7 million in Local Program Reserve (LPR) to be used as the local fund advance; and further authorized the General Manager to execute an agreement with the California Department of Transportation (Caltrans) to implement the financing arrangement.

15. Approved, in concept, a Federal Highway Grant Anticipation Revenue Vehicle (GARVEE bond) financing strategy for the Route 87 HOV Lane Projects from Julian Street in downtown San Jose to Route 85 and the I-880/Coleman Interchange Project.

16. Authorized the General Manager to execute a contract with Viacom Outdoor Inc. to sell, display and manage the advertising program on VTA Bus and Light Rail vehicles for a one-year base term for calendar year 2003, and a one-year renewal option for calendar year 2004. (Deferred from the November 7, 2002 Board of Directors Regular Meeting.)

17. Authorized the General Manager to amend the contract with Santa Clara Valley Highway Associates for Project Management and Monitoring services for VTP 2020 projects, increasing the approved contract by $5,700,000 for a new not to exceed total contract value of $12,955,000 and extend the term of the contract through December 31, 2005. (Deferred from the
November 7, 2002 Board of Directors Regular Meeting.)

CONGESTION MANAGEMENT PROGRAM AND PLANNING COMMITTEE

18. Approved the exemption of the indicated intersections from Level of Service (LOS) Monitoring during the Year 2002 Cycle.

TRANSIT PLANNING AND OPERATIONS COMMITTEE

19. Authorized the General Manager to execute a contract with Diablo Contractors, Inc., the lowest responsible bidder, in the amount of $6,480,992 for retrofitting Santa Teresa-Baypointe North Line station platforms to accommodate level boarding with low-floor light rail vehicles.

20. Authorized the General Manager to amend the contract with Earth Tech, Inc., for Engineering Support Services on VTA rail improvement projects, extending the current contract duration by three years from December 2002 through December 31, 2005.

21. Authorized the General Manager to execute an Amendment to the agreement with Mark Thomas & Co., Inc., for civil/site/utilities design services for the Cerone Complex Improvements Project, increasing the approved contract amount by $195,000 for a new value not to exceed $1,098,880 and extending the contract duration through December 31, 2004. This project is 33 percent federally funded.

22. Authorized the General Manager to execute a Cooperative Agreement with the City of Saratoga to share costs for the design and construction of the West Valley College Transit Center Operators Facility.

23. Authorized the General Manager to: (1) execute an Agreement in the amount of $750,000 with North American Title Company for real estate title company services for an initial three-year period with options for two additional years, and (2) amend the existing Agreement with Alliance Title Company to: (a) add $270,000 to the existing Agreement for a new total of $1,293,000, (b) extend the term from May 31, 2004 to December 31, 2007, and (c) include VTP 2020 projects in the scope of services.

24. Authorized the General Manager to execute a contract with G.W. Compressor Sales & Service, Inc., the lowest responsive and responsible bidder, for compressed air systems maintenance and repair service at all VTA Maintenance Divisions. The term of the contract is for three years with two one-year options at a cost of $161,240 for year one, $166,080 for year two and $171,060 for year three. Option years four and five are at a cost of $176,190 and $181,480 respectively. The total amount of the contract is $856,050 for the five-year period.

25. Authorized the General Manager to execute a contract with Arntz Builders, the lowest responsible bidder, in the amount of $10,000,784 for the first phase of the Cerone Complex Improvements Project. This project is 33 percent federally funded.

27.X Authorized the General Manager to enter into a contract to purchase software user licenses from SAP Public Services, Inc. in the amount of $766,965 with an option to purchase additional licenses for $233,820 by July 2005.

REGULAR AGENDA

11. Approved the FY 2003-04 Budget Assumptions.

Eugene Bradley, Santa Clara VTA Riders Union, expressed concern over the FY 2003-04 Budget Assumptions. Suggested development fees, synchronization of schedules with Caltrain and ACE Train, and parking fees.

ADMINISTRATION AND FINANCE COMMITTEE
CHAIRPERSON’S REPORT

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

CONGESTION MANAGEMENT PROGRAM AND PLANNING COMMITTEE
CHAIRPERSON’S REPORT

There were no items submitted for the Regular Agenda by the Congestion Management Program and Planning Committee.

TRANSIT PLANNING AND OPERATIONS COMMITTEE
CHAIRPERSON’S REPORT – David Cortese

26. Forwarded the Environmental Assessment of Grade Separation Alternatives at the Hamilton Avenue Crossing to the Federal Transit Administration (FTA) with a recommendation that FTA issue a Finding of No Significant Impact (FONSI).

Board Member LaPoll took his seat at 9:22 a.m.

Jeffrey Hare, Attorney for the Borello Neighborhood Committee, expressed concern over the scenic resources and the significant negative impact of the view of the hillside from this neighborhood as a result of an elevated light rail structure. Requested that VTA Board of Directors direct staff to conduct an Environmental Impact Statement (EIS).

Rex Allers, interested resident, expressed concern over the visual impact associated with this project and objected to concern by VTA over the pictures submitted and methodology used by residents in the area concerning visual impact. Requested an opportunity to submit a written statement in response to the rebuttal from VTA concerning such photos and methodology.

Jenna Skinner, Borello Neighborhood Committee, expressed concern over the visual impacts associated with the elevated light rail structure.

Debbie Fieber, Borello Neighborhood Committee, expressed concern over the environmental assessment prepared by VTA stating that it was prepared hastily. Requested VTA Board of Directors direct staff to complete an EIS document.

Kimberly Fitzgerald, interested resident, expressed concern over the Environmental Assessment document prepared stating that it is not complete and no new studies have been completed and no further information is available.

Stated that the Environmental Assessment contains pictures from VTA that represents a fair representation of the view in the neighborhood upon completion of the project and urged Board Members to forward the document to the Federal Transit Administration (FTA) for approval.

Voiced opposition to an aerial structure being built for this project.

Expressed concern over the current budget crisis and stated that we could study this item over and over again and come up with the same conclusion. Recommended forwarding the document to the FTA and wait for their findings.

Urged the Board Members to approve the aerial structure in order to move the project forward and minimize costs.

Requested that the Board Members consider directing staff to complete an EIS and evaluate the information within that document.

OTHER ITEMS

27. Received an update and response regarding Financial Stability. (Continued from November 8, 2002 Board of Directors Workshop Meeting.)

Board Members Chavez and La Poll left their seat at 10:16 a.m.
Board Member La Poll returned to his seat at 10:17 a.m.
Board Member Alvarado left her seat at 10:18 a.m.
Board Member Chavez returned to her seat at 10:19 a.m.

Clarified that the original request was to segregate the cost of capital projects, not to show a projection of stopping all capital projects. Requested staff segregate capital projects to isolate costs. Requested presentation of capital budget versus operations.

Requested information concerning long-term plan and short-term plan. Short-term covering areas like fare increases and long-term including a possible independent auditor to provide financial analysis. Further requested information on possibly borrowing money from available 2000 Measure A funds.

Board Member Alvarado returned to her seat at 10:22 a.m.
Board Members Cortese and Dando left their seats at 10:25 a.m.

Kevin Kittila, Interested Citizen, expressed concern over the possible budget shortfalls and praised Board Member Gage for his suggestion of an independent audit.

Michael Macarelli, VTA employee, suggested the use of rapid rail instead of the proposed extension of the Bay Area Rapid Transit (BART).

Joseph Devito, VTA employee, expressed concern over the proposed service cuts and requested evaluation of the amount administrative staff at VTA.

Chairperson Gonzales left his seat at 10:29 a.m.

Joseph Iwami, representing laid-off and soon to be laid-off employees of VTA, expressed concern over layoffs concerning drivers, mechanics, and operators and requested consideration of administrative staff positions for layoffs. He further requested the process of lay-offs to be made public.

Board Member Dando returned to her seat at 10:31 a.m.
Board Member Cortese returned to his seat at 10:33 a.m.
Board Member Gage left his seat at 10:33 a.m.
Chairperson Gonzales returned to his seat at 10:33 a.m.

Al Triplet, President and Business Agent, ATU local 265, expressed concern over current revenue shortfalls and requested VTA Board of Directors to consider new sources of revenue and urged the Board to disregard any plans for cuts to bus service.

Tom Fink, ATU local 265, Assistant Business Agent, expressed concern over the ratio of managers to administrative and front-line workers at VTA.

Board Member Gage returned to his seat at 10:35 a.m.
Board Member Kennedy left her seats at 10:35 a.m.

Bob Brownstein, Interested Citizen, expressed concern over the proposal to live within the means at VTA and expressed concern over the response of staff to the proposal to cut the capital program.

Dimitri Grant, ATU local 265, expressed concern over the proposed cuts to service and requested evaluation of logistical procedures involving mechanical repairs to buses.

Board Member Kennedy returned to her seat at 10:40 a.m.

Lowell Grattan, Interested Citizen, expressed concern over the evaluation of bus and light rail service using the measurement of trips made. Suggested evaluating service in terms of passenger miles.

Margaret Okuzumi, Bay Rail Alliance, expressed concern over the staff response to obtaining financial stability. Requested Board of Directors consider pay as you go basis for Silicon Valley Rapid Transit Corridor (BART) and Downtown East Valley (DTEV) projects.

Edward Gizzarelli, ATU local 265, expressed concern over morale and proposed layoffs at VTA concerning budget cuts.

James Zahradka, Law Foundation of Silicon Valley, expressed concern over the proposed service cuts and stated that there are low-income residents that rely on that service.

Irvin Dawid, Sierra Club Transportation Committee, expressed concern over the fiscal crisis that VTA is facing. Stated that VTA Board of Directors should not propose another tax initiative to fund VTA operations and voiced opposition to proposed service cuts.

Eugene Bradley, Santa Clara VTA Rider’s Union, expressed concern over the proposed service cuts and suggested consideration of his plan called “Transit Medicine” including development fees and parking fees.

Board Member Chavez left her seat at 10:47 a.m.
Board Member Chavez returned to her seat at 10:50 a.m.

Cynthia Horvath, Interested Citizen, suggested the use of transfer tickets as sources of revenue.

Marilyn Smith, SEIU local 715, expressed concern over the need for additional funding to meet the operating budget requirements.

28. ITEMS OF CONCERN AND REFERRAL TO ADMINISTRATION

There were no Items of Concern and Referral to Administration.

29. LEGISLATIVE REPORT

Accepted as contained in the Agenda Packet.

30. REPORTS FROM ADVISORY COMMITTEES

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 Design Enhancements Committee (CODE)

Accepted as contained in the Agenda Packet.

31. REPORTS FROM JOINT POWERS BOARDS (JPBs) & REGIONAL COMMISSIONS

A. Peninsula Corridor JPB

Heard a report that the Peninsula Corridor JPB, at its meeting of Monday, December 9, 2002: 1) Approved a cooperative agreement with VTA for shuttle and parking area improvements at the Lawrence Caltrain Station; 2) Approved an amendment to the Caltrain operating budget to reflect the receipt of grant funds for conducting emergency preparedness drills; 3) Authorized the submittal of Federal Transit Administration grant applications in the amount of $49 million; 4) Approved standard regulations governing the use of Caltrain property by persons riding bicycles, skateboards, scooters and roller-skates; 5) Awarded a contract for the CTX South project, a program of track and signal improvements between Menlo Park and Sunnyvale; 6) Approved the implementation of a one-year University Pass pilot program for calendar year 2003 with Stanford University, 7) Nominations made for 2003 leadership positions were Maria Aeride of San Francisco for Vice Chairperson, and John McLemore of Santa Clara for Chairperson of the Peninsula Corridor JPB.

B. Capitol Corridor JPB

The Capitol Corridor Joint Powers Board (CCJPB) did not meet in November.

C. Altamont Commuter Express (ACE) JPB

Heard a report that the ACE JPB, at its meeting of Monday, November 18, 2002: 1) Approved an amendment to the ACE fare structure to combine the Stockton and the Lathrop/Manteca Stations into one fare zone; 2) Received a report on the progress in implementing the revised afternoon train schedule in January; 3) Received a report regarding the Federal Transit Administration New Starts grant process in San Joaquin County.

D. Metropolitan Transportation Commission (MTC)

Heard a report that the Metropolitan Transportation Commission at its meeting of Monday, November 18, 2002: 1) Received a presentation on the 2001 Regional Transportation Plan Amendment, which amends the 2001 RTP to include a plan to increase regional transit ridership by a specified amount by 2006. This will achieve full implementation of the Transportation Control Measure (TCM) # 2, as interpreted by the U.S. District Court; 2) Authorized the MTC Executive Director to release the revised Draft 2003 Transportation Improvement Program (TIP) and Federal Air Quality Conformity Analysis and Finding for public review and comment; 3) Approved the Public Involvement Plan Update, which will serve as the blueprint for involving Bay Area residents in the work of the Commission; 4) Discussed the Legislative Strategy for the MTC for 2003.

32. REPORTS FROM VTA POLICY ADVISORY BOARDS (PABs)

A. Tasman/Capitol Light Rail PAB

There was no report on the Tasman/Capitol Light Rail PAB.

B. Vasona Light Rail PAB

Heard a report that the Vasona Light Rail Policy Advisory Board met Monday, December 9, 2002, and forwarded Agenda Item #26 to the Board of Directors for review.

C. Silicon Valley Rapid Transit Corridor PAB

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

D. Caltrain PAB

There was no report on the Caltrain PAB

E. Downtown/East Valley PAB

Heard a report that a joint workshop between the Downtown East Valley Policy Advisory Board and the Comprehensive County Expressway Planning Study Small-group PAB met on November 14, 2002. The purpose of the workshop was to update the policy makers on the status of several related planning studies and projects and to identify key issues and next steps. Policy makers requested that a follow-up joint PAB meeting be scheduled in January to continue the discussion. At the December 4, 2002 DTEV PAB meeting, there was a brief discussion of the
Santa Clara/Alum Rock stakeholder strategy and materials for the two Santa Clara/Alum Rock corridor open houses scheduled for December. The 2003 schedule for the DTEV PAB is being finalized, including the next monthly meeting in January 2003.

F. Highway PAB – South

There was no report on the Highway PAB – South.

33. REPORT FROM THE CHAIRPERSON

Appointed Members Gage, Cortese, Dando, Springer, and Mossar as members of the Long-Term Financial Strategy Committee.

Bob Brownstein, Interested Citizen, suggested three items for improving the Long-Term Financial Strategy Committee: 1) formal subcommittee from worker and consumer groups; 2) the committee have a budget; 3) work on an expedited timeline.

Praised the idea of subcommittees for the Long-Term Financial Strategy Committee and inquired as to how the timeline of this committee will fit into the current budget crisis timeline.

Stated that timelines should be set by the committee. Further stated that for the committee to be effective in relation to the current budget crisis committee must have material available within the first three months of 2003.

Requested staff to provide a budget timeline.

Inquired how assistance can be provided for this committee and how they will work with staff to formulate recommendations and forward those to the Board of Directors.

Stated that the committee should have the authority to make recommendations and forward them on to the Board of Directors for approval.

34. REPORT FROM THE GENERAL MANAGER

Heard a report highlighting: 1) that the transaction for ownership of Union Pacific Railroad right-of-way was completed; 2) noted that despite current budget restrictions VTA will provide free service on New Year’s Eve and on New Year’s Day to benefit the community; 3) presented a copy of the VTA Presentation to the California Transportation Commission that took place at the Fairmount Hotel on December 11, 2001.

35. ANNOUNCEMENTS

There were no announcements.

36. PUBLIC PRESENTATIONS

James Wightman, Interested Citizen, inquired when the contract for retrofitting the platforms for low-floor light rail vehicles will be awarded and when construction is scheduled to begin.

Ms. Okuzumi, expressed concern over Closed Session Agenda Item # 37.D., Initiation of Litigation regarding Bay View Hunters Point Community Advocates vs. MTC., et al.

Ex-Officio Board Member Beall left his seat at 11:12 a.m.
Board Member Springer left his seat at 11:13 a.m.

Ross Signorino, Interested Citizen, expressed concern over the scheduled BART extension to San Jose in reference to the tunneling project under the City of San Jose and the depth at which that tunneling will take place and expressed concern over the lack of use of the bus system as the infrastructure of our transportation system.

37. CLOSED SESSION at 11:19 a.m.

A. Existing Litigation – Conference with Legal Counsel
[Government Code Section 54956.9(a)]

Name of Case: Santa Clara Valley Transportation Authority v. Dick Yee, Inc. (Santa Clara County Superior Court Case No. CV 797568 – Complaint in Eminent Domain)

B. Existing Litigation – Conference with Legal Counsel
[Government Code Section 54956.9(a)]

Name of Case: Santa Clara Valley Transportation Authority v. R&S Properties, Inc. (Santa Clara County Superior Court Case No. CV 797888 – Complaint in Eminent Domain)

C. Existing Litigation – Conference with Legal Counsel
[Government Code Section 54956.9(a)]

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

D. Initiation of Litigation – Conference with Legal Counsel
[Government Code Section 54956.9(c)]

Name of Potential Case: Bay View Hunters Point Community Advocates et al v. MTC et al

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

Title: General Manager
Title: General Counsel

RECONVENED TO OPEN SESSION at 11:40 a.m.

38. CLOSED SESSION REPORT

A. Existing Litigation – Conference with Legal Counsel
[Government Code Section 54956.9(a)]

Name of Case: Santa Clara Valley Transportation Authority v. Dick Yee, Inc. (Santa Clara County Superior Court Case No. CV 797568 – Complaint in Eminent Domain)

There was no reportable action taken during Closed Session.

B. Existing Litigation – Conference with Legal Counsel
[Government Code Section 54956.9(a)]

Name of Case: Santa Clara Valley Transportation Authority v. R&S Properties, Inc. (Santa Clara County Superior Court Case No. CV 797888 – Complaint in Eminent Domain)

There was no reportable action taken during Closed Session.

C. Existing Litigation – Conference with Legal Counsel
[Government Code Section 54956.9(a)]

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.

D. Initiation of Litigation – Conference with Legal Counsel
[Government Code Section 54956.9(c)]

Name of Potential Case: Bay View Hunters Point Community Advocates et al v. MTC et al

There was no reportable action taken during Closed Session.

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

Title: General Manager
Title: General Counsel

There was no reportable action taken during Closed Session.

39. Deferred 2003 Compensation Recommendations for VTA General Manager and VTA General Counsel due to current budget constraints until after the financial crisis has passed.

Thanked members of the Board of Directors for participating in the survey. Thanked Human Resources (HR) staff for their assistance. Thanked Peter M. Cipolla, General Manager and Suzanne Gifford, General Counsel for their contributions and leadership.

Eugene Bradley, Santa Clara VTA Rider’s Union, complimented the General Manger for deferring any salary increase at this time.

40. ADJOURNED at 11:42 a.m.