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VTA Workshop
November 8, 2002, 8:30am
San Jose Hyatt (Mediterranean Room), San Jose, CA

[Editor's Note: we pick up the action at 8:45am as Carl Guardino (CEO of the Silicon Valley Manufacturing Group) is giving a 10-minute presentation about the local economic situation, and how it is affecting VTA's ability to keep promises it made to voters on transit projects. As a reminder, all links outside vtaridersunion.org will open up another browser window, so you will not lose track of these notes.]

Carl Guardino, CEO of the Silicon Valley Manufacturing Group, is giving a 15-minute presentation in front of the VTA Board on the state of the local economy, how it affects VTA transit services, and what needs to be done. He stresses that another sales tax may be needed to pay for transit operations funding. He emphasized how difficult it would be to have another transit tax pass in the county. The first difficulty (lowering approval threshold to about 55% at the state level) would be like trying to climb Mt. Everest. The second (selling the tax to voters) would be like climbing Mt. Kilimanjaro.

The VTA Board then spent the next two hours talking about Item III - discussion on stable financing to resolve the VTA's fiscal crisis. Highlights from select VTA Board members are below.

• Don Gage (County Supervisor - South County) - once transit ridership is lost, it will be difficult to get back.
• Forrest Williams (San Jose City Council member - South San Jose) - "can we live within our means?"
• David Cortese (San Jose City Council member - South San Jose) equated the situation as requiring football's "no-huddle" offense where something needs to happen soon.
• Blanca Alvarado (County Supervisor - East San Jose area) - going back to voters with another tax in 2004 is unrealistic. Wanted to see real fixes to this issue. Spend a little time in developing a solution. Mentions that 1996 Measure B projects aren't being properly delivered due to the recession and states things like this are what voters remember.
• Tom Springer (Mayor of Gilroy) - The "C" word - credibility - is what is at stake for VTA.
• Kevin Yeager (alternate - San Jose City Council member - southwest San Jose) - wanted to see another transit sales tax in 2004

During questioning by Ken Yeager, VTA's Chief Financial Officer, Scott Burher, revealed that the VTA would go fully broke on June 30, 2003. It is consuming revenue at nearly $1 million dollars/day now. Many of the VTA Board members disagreed with Kevin Yeager's suggestion of another sales tax vote in 2004. It was estimated that 7 of the 12 board members disagreed with Mr. Yeager.

After the VTA Board finishes its two-hour discussion of this issue, VTA Board Chair Ron Gonzales allows the public to speak. Each speaker, we are reminded, has two minutes to make his or her comments. Note that speakers order is off, as my pen stopped working for a time and am going on memory.

Bob Brownstein, President of Working Partnerships USA emphasizes the need to preserve the South Bay's bus and light rail service. Eugene Bradley, our founder, gave our analysis of VTA's Obtaining Sustainability report and recommended the VTA Board and staff to take action on our analysis. Stu Cohen of TALC emphasized the need for VTA to stabilize its finances. Andy Chow from BayRail Alliance requested the VTA Board place Caltrain electrification as a top priority Another speaker stated the need for the VTA to use gas taxes to pay for transit operations

At this point it was 11:30am and our note taker had to depart from work. By this time the VTA was discussing priorities for its long-range transit plan, VTP 2020.

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