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   Posted at 10:03 p.m. PST Saturday, Nov. 3, 2001 
   
BART-to-San Jose talks reaching crucial moment

   BY GARY RICHARDS
   Mercury News
   
   Talks to extend BART to San Jose have picked up steam, and a deal to
   iron out the financial terms could be completed this week -- beating a
   critical deadline with hundreds of millions of dollars at stake.
   
   Officials with BART and the Valley Transportation Authority must form
   an agreement by Nov. 19 to be placed on the regional list of top
   priorities for federal funding. But first the VTA must give its
   approval at a board meeting Friday.
   
   Negotiators, while saying progress has been made on sticky money
   issues, concede that talks remain fragile and at a critical point. So
   much so that the VTA has come up with a backup plan to build and
   operate its own version of BART, one that would force riders to
   transfer in Fremont.
   
   ``If everybody keeps their heads above water and on track, an
   agreement is doable,'' said VTA General Manager Pete Cipolla. ``But it
   is very dicey and I don't think you can characterize it any different
   than that. . . . We're walking on a piece of crystal and if it cracks,
   it all can break.''
   
   The two agencies met Wednesday through Saturday, and have another
   session planned for Monday. But after six months of talks, a stubborn
   roadblock remains:
   
   BART insists the VTA pinpoint where its funds will come from to help
   defray daily operating and maintenance costs of running trains not
   only from Fremont to San Jose but throughout the BART system. Some
   East Bay leaders have been pressing for the VTA to consider a new
   sales tax in the future.
   
   ``Somewhere along the line BART has to have a guaranteed source of
   income from the VTA to operate the system or it's a deal breaker,''
   said Tom Blalock, a BART board member from Fremont and a member of its
   negotiating team.
   
   The 21-mile extension will cost $3.7 billion to build, with county and
   state funds covering nearly $2.9 billion of the cost. But the VTA is
   $834 million short, money local leaders want from Washington.
   
   Crucial meeting Friday
   
   The Metropolitan Transportation Commission is set to vote on a
   regional wish list in December but wants an agreement hammered out by
   Nov. 19. Cipolla hopes to bring an agreement to the VTA board on
   Friday. If not, a special meeting would need to be called to meet the
   Nov. 19 deadline.
   
   If there is a deal, the BART extension to San Jose almost certainly
   would be at the top of the list, making it eligible for federal aid.
   Transportation Secretary Norm Mineta said federal funding is unlikely
   unless the region supports it.
   
   ``If there is no agreement,'' said Randy Rentschler of the MTC, ``the
   options get harder and harder.''
   
   Some progress has been made in recent talks. Where BART and the VTA
   were once more than $50 million a year apart on how much the South Bay
   should contribute to day-to-day costs, the gap has narrowed to less
   than $25 million a year.
   
   The VTA is worried not only about funding BART, but also its expanding
   light-rail and bus service. The agency projects that it will need more
   money by 2014 to pay for day-to-day costs for its entire transit
   system.
   
   ``It's no secret that we need to find additional funding,'' said
   Cipolla. ``This system hasn't grown much but over the next five years
   we're expanding a lot. We can't continue to expand without finding
   more money.''
   
   Taxpayers in Alameda, Contra Costa and San Francisco counties pay
   three-eighths of a percent sales tax for BART. Officials in Santa
   Clara County are loathe to talk about a similar tax, since voters just
   last fall approved a half-cent tax measure to build BART.
   
   Instead, it may look toward higher fares and new gas tax funds, plus a
   surcharge on BART tickets purchased in Santa Clara County, similar to
   what riders in San Mateo County will pay when the extension to San
   Francisco International opens next year.
   
   ``We have to come up with some new answers,'' said Santa Clara County
   Supervisor Jim Beall. ``If it's going to cost $63 million a year to
   operate BART to San Jose, we have to show where the $63 million is
   going to come from. You don't build projects if you can't operate
   them.''
   
   But should talks stall, the VTA is preparing to consider building its
   own line.
   
   `BART-like' system
   
   Think BART, but with the VTA logo written on the side of the cars.
   
   This version would run along the same tracks, but be $435 million
   cheaper to build, and $9 million a year cheaper to operate.
   
   Trains would consist of six cars each compared to the 10 on current
   BART lines. And all riders would be forced to transfer in Fremont from
   BART to what has been dubbed the ``BART-like'' train. That five-minute
   transfer could cut ridership by 17 percent.
   
   Outside the VTA, the idea doesn't have much support.
   
   ``Thirty years from now people will say, `How could they do that? This
   is really stupid,' '' said Fremont Mayor Gus Morrison. ``I understand
   this may be a negotiating ploy, but . . . changing trains in Warm
   Springs would be a mistake.''
   
   The biggest backer of bringing BART to the South Bay is San Jose Mayor
   Ron Gonzales. ``Let me assure you,'' he said in a speech last week,
   ``the BART train has left the station, and it's headed to San Jose.''
   
   Aide Jim Webb said Gonzales' ``focus is on getting an agreement with
   BART. We are not focusing on a BART-like connection.''
   
   Construction could start in four years, with the line opening between
   2010-2012.
   
   But if talks break down and the VTA pushes ahead with its fallback
   option, some believe Washington will lose interest.
   
   ``If that's the way the VTA wants to do it,'' said Blalock, ``my guess
   is that they won't get any federal money. The MTC probably would not
   support it and the feds would not support it.''
     _________________________________________________________________
   
   Contact Gary Richards at mrroadshow@sjmercury.com or (408)
   920-5335. 

 
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