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San Jose, Calif. – The Santa Clara Valley Transportation Authority (VTA) announced today the first phase of an organizational transformation program designed to restructure the agency to improve efficiency and financial stability.

The transformation program comes in response to a report issued by the Hay Group in March 2007, which contained recommendations geared towards improving VTA’s governance, financial practices and organizational structure.   “The transformation organization structure will streamline VTA, maximize its ability to meet its commitments to the community, improve service and reach long-term sustainability,” said Michael T. Burns, VTA’s General Manager. 

As an initial step in the first phase of the transformation program, VTA moved quickly to hire Acting Chief Financial Officer Jerry G. Mikolajczyk.   “It was critical to retain an executive with the skills and experience necessary to realign financial management practices,” said Burns.   “Already, that step is demonstrating tremendous benefits.”  The CFO’s appointment reassured the financial community of VTA’s commitment to sound financial practices and contributed to the rating agencies upholding and upgrading VTA’s credit ratings. The upgrade in credit ratings and the timing of a bond refunding in the marketplace resulted in an overall interest savings of $1.6 million.   Mikolajczyk also expedited the reimbursement of more than $150 million in state funding nearly four months ahead of schedule.  The immediate recovery of cash will allow VTA to retire Measure A bonds which will result in a debt service reduction for Measure A funding and interest savings of $2.1 million.

The transformation structure is designed to streamline the flow of communications and focus resources on key programs, including the creation of a Chief Silicon Valley Rapid Transit Program Officer.   This executive has the responsibility to oversee planning and development activities for the BART to Silicon Valley extension and secure all of the approvals and funding required for VTA to move forward with final design and construction on the project.  Carolyn Gonot, VTA’s Chief Development Officer since 2004, will take on this new role.  In her 11 years with VTA, Gonot has served in increasingly responsible congestion management agency roles before taking the helm of the Development Division three years ago. 

VTA will continue to implement the transformation program over the coming months with specific emphasis on working with the community to realign VTA’s bus system to improve efficiency and increase ridership as part of transit improvement plan, known as the Comprehensive Operations Analysis.    

Burns concluded, “By implementing the transformation program, we will improve service and strive to exceed the expectations of the people and communities we serve.” 

The transformation organization structure will be implemented with the beginning of the new fiscal year in July. 

Model Transitional Structure:

The Board of Directors oversees the General Manager, the General Counsel and the Auditor General.  The General Manager is advised by the General Counsel and the Auditor General.

The General Manager oversees the External Affairs Manager, the Chief Transformation Officer, the Chief Financial Officer, the Chief Administrative Officer, the Chief Operating Officer, the Chief Engineering and Construction Officer, the Chief Planning and Congestion Management Agency Officer, and the Silicon Valley Rapid Transit.

The Chief Financial Officer oversees Accounting, Financial Planning, Treasury and Budgeting, Financial Operations, Risk Management and Safety, and Real Estate.

The Chief Administrative Officer oversees Human Resources and Employee Relations, Communications and Marketing, Contracts, Procurement, and Materials Management, and Technology.

The Chief Operating Officer oversees Transportation, Accessible Services, Maintenance, Scheduling, and Security.

The Chief Engineering and Construction Officer oversees Highway, Rail, and Facilities.

The Chief Planning and Congestion Management Agency Officer oversees Planning, Congestion Management Agency, and Transit Oriented Development.

Model Longer Term Structure:

The Board of Directors oversees the General Manager, the General Counsel and the Auditor General.  The General Manager is advised by the General Counsel and the Auditor General.

The General Manager oversees the External Affairs Manager, the Chief Financial Officer, the Chief Administrative Officer, the Deputy General Manager, and the Silicon Valley Rapid Transit.

The External Affairs Manager oversees the Public Information Officer and Media Relations, the Board Secretary and Assistants, and State and Federal Governmental Affairs.

The Chief Financial Officer oversees Accounting, Financial Planning, Treasury and Budgeting, Financial Operations, Risk Management and Safety, and Real Estate.

The Chief Administrative Officer oversees Human Resources and Employee Relations, Communications and Marketing, Contracts, Procurement, and Materials Management, and Technology.

The Deputy General Manager oversees the Chief Planning and Congestion Management Agency Officer, the Chief Engineering and Construction Officer, and the Chief Operating Officer.

About the 2000 Measure A Program:

The 2000 Measure A package of transit improvements was approved by Santa Clara  County  voters in November 2000 by a 70.3% majority and authorized a 30-year, 1/2 cent sales tax to begin in 2006.   Measure A supports the Valley Transportation Plan (VTP) and Expenditure Program, a long-range transportation planning effort focused on addressing the Valley’s transportation needs.   VTP provides a balanced transportation system consisting of transit, roadway, bicycle, and pedestrian improvements.  The revenue from Measure A enables approximately $2 billion in future state and federal funds to be directed towards these projects. The Zero-Emission Bus Program is one of the 2000 Measure A projects.

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About VTA
Santa Clara Valley Transportation Authority (VTA) is an independent special district responsible for bus, light rail and paratransit operations; congestion management; specific highway improvement projects; and countywide transportation planning. As such, VTA is both an accessible transit provider and multi-modal transportation planning organization involved with transit, highways and roadways, bikeways and pedestrian facilities.

For more information about VTA services, call VTA Customer Service at (408) 321-2300, (408) 321-2330 (TDD only). Or, log on to www.vta.org.