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   Local & State News
   Published Wednesday, Nov. 7, 2001, in the San Jose Mercury News 
   
Transit agency agrees to help fund BART in S.J.

   BY GARY RICHARDS
   Mercury News
   
   The Valley Transportation Authority has agreed to pay $48 million a
   year to cover the costs of running BART to downtown San Jose, opening
   the door to hundreds of millions of dollars in federal aid for the
   21-mile extension.
   
   The agreement with BART came late Tuesday after six days of talks and
   removes a major stumbling block to bringing the popular commuter train
   to Silicon Valley.
   
   The funds could come from several sources -- a new countywide sales
   tax, new gas tax funds, an increase in fares, a surcharge on tickets
   sold in Santa Clara County or development fees at new stations, to
   name a few possibilities.
   
   But -- and this is what BART demanded -- if those options do not
   materialize or raise enough cash, the VTA will be required to use
   money from its Transportation Development Account, an existing
   quarter-cent sales tax that generates about $100 million a year for
   the transit agency's general fund. A source of funds must be
   determined by 2009.
   
   ``Our goal was to protect BART and I think we have,'' said BART board
   member Tom Blalock of Fremont. ``This is what we needed to make this
   work.''
   
   Santa Clara County voters approved a 30-year tax measure last fall
   that, along with state funding, will raise nearly $2.9 billion for the
   $3.7 billion extension. Trains would run from Fremont through downtown
   San Jose, ending west of San Jose International Airport in Santa
   Clara. Service could begin in 2010 to 2012.
   
   But the VTA said it only had enough funds to operate BART and
   increased light-rail and bus service through 2014. That was a possible
   deal-breaker because BART feared it might end up having to cover
   day-to-day operational costs.
   
   ``We need an additional stream of revenue with or without BART,'' VTA
   General Manager Pete Cipolla said Tuesday. ``But now we have eight
   years to deal with those kinds of issues.''
   
   The agreement now goes to the VTA board for approval on Friday, and to
   the BART board next Tuesday. Assuming no hitches develop, the
   Metropolitan Transportation Commission next month is expected to rank
   the extension on its top list of projects, opening the door for
   federal aid.
   
   The VTA plans to seek $834 million in federal money to complete
   construction. To get on a long list of projects seeking money from
   Washington, it first needed an agreement that had the backing of the
   region.
   
   This deal differs from the one worked out with San Mateo County to
   extend BART to San Francisco International. In that agreement, San
   Mateo County used $250 million from a county sales tax to help pay for
   BART, plus gave BART $100 million in state aid that was used to help
   build extensions in the East Bay.
   
   In addition, San Mateo County promised to cover operational and
   maintenance costs through a surcharge in tickets and parking fees.
   However, ridership to the Colma station has been so great that there
   is a surplus.
   
   The VTA estimates it will cost $23 million a year to run trains within
   Santa Clara County after fares are calculated in. The extra $25
   million from the VTA will help pay for an expanded operations center
   for BART plus new cars and station improvements along the East Bay.
   
   Optimistic predictions say the line to Silicon Valley will attract
   nearly 87,000 riders a day by 2025, with fares covering 64 percent of
   day-to-day costs. Tracks would run parallel to Interstate 680 before
   tunneling through downtown under either Santa Clara or San Fernando
   streets.
   
   BART would connect with light rail in Milpitas and with Caltrain and
   light rail at the Diridon Station across from the Compaq Center at San
   Jose. A people-mover would carry passengers from the Santa Clara
   station into the airport.
     _________________________________________________________________
   
   Contact Gary Richards at [63]mrroadshow@sjmercury.com or (408)
   920-5335. 

 
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SVRTC Watch: Silicon Valley Rapid Transit Corridor Watch