Published Friday, November 9, 2001, by San Jose Business Journal

(Breaking News)

VTA board OKs BART extension

By Andrew Hamm

A BART extension into San Jose and Santa Clara via Milpitas received
an overwhelming thumbs up from the Santa Clara Valley Transportation
Authority today despite continued concerns about financing the
project.

The 15-0 vote in favor moves attention to the Bay Area Rapid Transit
board of directors meeting Nov. 13 for a vote on the same measure.

The two sides have worked out a tentative agreement where BART would
operate and maintain up to seven BART stations and tracks while the
VTA would fund construction, maintenance and operation and ongoing
maintenance costs. The system is expected to open in 2010.

"I'm happy, in fact, I can't tell you how happy I am," says San Jose
Mayor Ron Gonzales, who is also a VTA board member.

The $4 billion expansion proposal needs to be approved this month to
become part of the Metropolitan Transportation District's regional
plan.

The extension needs to be part of that plan to qualify for the $834
million in federal funding needed to make the extension a reality.

Measure A approved by Santa Clara County voters in 2000 would fund
the lion's share of the project.

The VTA board admits it does not yet know where a $48 million annual
payment to BART will come from. The payment covers the added expense
that the estimated additional 39,000 riders daily would put on the
system.

Some transit riders decried a provision in the deal that requires VTA
to take the money out of its transportation development account if
another revenue source can't be found.

"I'd like to know where on the (Measure A) ballot does it say that
all additional costs will be paid for by (cutting) bus and light-
rail," says Eugene Bradley, founder of the VTA Riders Union.

Mr. Gonzales promised that a funding source would be identified
shortly after he takes over chairmanship of the VTA board in 2002.