Posted at 9:08 p.m. PST Wednesday, Nov. 7, 2001 
   
Funding source for BART extension set

   VTA to tap an existing development account or secure new revenue to
   cover operating cost
   
   BY GARY RICHARDS
   Mercury News
   
   When BART negotiated a deal with San Mateo County to extend trains to
   San Francisco International Airport, the agreement had a major flaw:
   no guaranteed way of paying for the day-to-day costs of running trains
   down the Peninsula.
   
   BART was determined not to repeat that mistake when negotiating with
   Santa Clara County, and its insistence on identifying a source of
   funds nearly derailed talks to bring train service to San Jose from
   the East Bay.
   
   From the first meeting in March, the Bay Area Rapid Transit District
   wanted the Santa Clara Valley Transportation Authority to identify a
   source of funds for the 21-mile extension into downtown San Jose. On
   Tuesday, the VTA did just that, saying it would pay BART $48 million a
   year from an existing transit account if no other source of funding
   could be found by 2009.
   
   ``We have a good agreement that works for everybody,'' BART general
   manager Tom Margro said Wednesday. ``BART gains because there is a
   dedicated funding source. I think the region can support this.''
   
   The San Mateo County deal was struck nearly a decade ago, and the
   8.7-mile extension will open next year. While a 75-cent surcharge on
   tickets sold within the county is used to subsidize daily operational
   and maintenance costs, the only other guarantee was a San Mateo County
   Transit District promise to pick up whatever tab remained.
   
   Ridership has been high, and fares have so far covered daily expenses
   of running trains into San Mateo County. Should SamTrans need more
   cash, BART fears it would have to ride to the rescue, tapping an
   already cash-strapped agency spending hundreds of millions on seismic
   repairs and modernizing a 40-year-old system.
   
   They didn't want to take that same risk with BART to San Jose.
   
   ``We thought BART might get the short end of the stick,'' said Stu
   Cohen, director of the Bay Area Transportation and Land Use Coalition.
   ``For the most part, BART did a good job of protecting their existing
   riders. Who lost in this disagreement was clearly the VTA.''
   
   VTA officials disagree. They fended off attempts to pay millions to
   join the BART district, and millions more to help pay for any future
   extensions in the East Bay or North Bay. The VTA intended all along to
   pay a fair share for BART improvements needed outside of Santa Clara
   County, said general manager Pete Cipolla.
   
   ``The issue is what was fair,'' he said. ``We think this is.''
   
   When Santa Clara County voters last fall endorsed a 30-year sales tax
   to fund BART and other transit improvements, the message to the VTA
   was clear: Bringing BART to the county was a mandate.
   
   Now the VTA has eight years under the deal with BART to find a new
   source of cash to pay for daily service. VTA officials estimate it
   will need more cash by 2014 for BART, light rail and bus expansion now
   under way.
   
   Many believe a new sales tax might be necessary, but San Jose Mayor
   Ron Gonzales said Wednesday a new tax ``would absolutely be a last
   resort.'' Fare increases, ticket surcharges, development fees and new
   gas-tax funds are also possible when trains begin running between 2010
   and 2012.
   
   If those don't pan out, BART will get money from the VTA's
   Transportation Development Account, an existing quarter-cent sales tax
   that generates nearly $100 million a year for everything from
   construction to operating costs for buses and trolley cars now on the
   road. Transit groups fear bus service would be curtailed if that money
   is given to BART.
   
   Still, the deal is expected to get the VTA board's approval Friday and
   the BART board's next week. The Metropolitan Transportation Commission
   will then vote next month, opening the door for federal aid.
   
   And that will be another huge hurdle. The VTA estimates it needs $834
   million from Washington to complete construction of the $3.7 billon
   project. And Wednesday night Rep. Mike Honda, D-San Jose, a former
   Santa Clara County supervisor, said the agreement will help the Bay
   Area delegation ``present a unified front in our effort to obtain
   federal authorization and funding for this project.''
   
   PAYING FOR BART
   
   The BART extension to San Francisco International Airport covers 8.7
   miles and will open next year. The extension to Santa Clara County
   covers 21.7 miles and could open as early as 2010. These following
   figures are construction costs.
   
   Funding BART-to-SFO BART-to-S.J.
   County $171 million $2.25 billion
   State $152 million $614 million
   Federal $750 million $834 million*
   BART $184 million 0
   Misc. $226.5 million** 0
   TOTAL $1.48 billion $3.71 billion
   
   * Money needed.
   ** $200 million from San Francisco Airport; $26.5 million from region.
   Source:BART, Valley Transportation Authority and Metropolitan
   Transportation Commission.
   
                                                             MERCURY NEWS
     _________________________________________________________________
   
   Contact Gary Richards at mrroadshow@sjmercury.com or
   (408) 920-5335.