Citing the “rapidly rising cost of construction materials and labor prices, along with the impacts of inflation,” the Valley Transportation Authority today said the anticipated cost of the final phase of the BART-to-Silicon Valley completion will grow to $12.2 billion, a 31% increase over the previous projection of $9.3 billion.
VTA management reaffirmed its confidence that despite the higher estimate, the agency still remains within its means to fund the project.
“All major U.S. infrastructure projects are, unfortunately, impacted by extreme inflationary costs,” said Carolyn Gonot, VTA General Manager/CEO. “The good news is that the strong fiscal position of VTA and other funding sources provide a funding plan that can absorb the increase.”
The BART extension represents the largest single public infrastructure project ever constructed in Santa Clara County. It will extend BART service six miles from the Berryessa Transit Center into downtown San José and ending in the City of Santa Clara. The first $2.3 billion phase extended BART service from Alameda County into Santa Clara County, with stops at Milpitas and Berryessa/North San José, beginning in June 2020.
VTA said it is seeking a grant from the Federal Transit Administration New Starts Program to complete the project’s funding plan.
The BART extension has various funding sources at the state, regional, and local level that include the Transit and Intercity Rail Capital Program, Regional Measure 3, 2000 Measure A, and 2016 Measure B.
“New cost estimates for the BART extension fall squarely in line with what we are seeing across the nation. Cost factors including material prices, labor shortages, and rising interest rates are being felt across all infrastructure sectors, not just transit and transportation projects. Market conditions continue to be challenging and dynamic,” said Peter Rogoff, former U.S. Department of Transportation under secretary, now a subject-matter expert in transportation infrastructure. Rogoff will make a presentation on these national trends at Thursday’s VTA board of directors meeting.
VTA built the first phase of the extension over $100 million under budget from Fremont to North San Jose’s Berryessa neighborhood. Work is already underway on the final phase, which extends the line six more miles with four more stations through downtown San Jose into Santa Clara.
Gonot said the new estimated completion date was adjusted from 2033 to 2036 based on updated engineering and risk assessments.
The VTA Board of Directors will receive an update on the new cost and schedule forecast and financial plan at its board meeting this week.
“We are doing everything possible as responsible stewards of taxpayer monies to maintain costs at every stage. We will continue to do so in the face of inflationary pressures and hikes in interest rates,” Gonot added.
Although project costs are increasing, the anticipated local sales tax revenues of 2000 Measure A and 2016 Measure B are also increasing when compared to previous projections. The operation and maintenance element of the project is also seeing a benefit with increased 2008 Measure B tax estimates.
VTA officials pledged that funding for the completion of BART to Silicon Valley will not take away from other planned VTA projects. VTA has projected a 10-year balanced budget for the agency without sacrificing service and is in a strong and healthy position to manage inflationary impacts, she added.
The project aims to reduce traffic congestion, decrease climate change impacts, provide equitable transportation and create the transportation system necessary to address increased population growth. Transportation planners said the BART extension will foster transit-oriented development, including new market value and affordable housing. It will also realize the decades-long vision of “Ringing the Bay” with rail transit by enhancing connections with the various other transit systems serving the Bay Area.
When complete, the extension will include three underground stations (28th Street /Little Portugal, Downtown San José, and Diridon) and one above ground station (Santa Clara).
The four new BART stations are projected to have approximately an average weekday ridership of 54,000 by 2040, which represents 6.9 percent of total anticipated BART ridership. Projected ridership at the Downtown San Jose station alone is 27,900. The Metropolitan Transportation Commission Plan Bay Area 2040 long range plan identifies the extension of BART service to San Jose and Santa Clara as its top public transportation priority.
Extending BART further into San Jose makes zero sense, especially for that price, which the cost will again just escalate higher and higher, providing little return for most taxpayers. This utopian idea of “urban villages” off of Santa Clara Street have been overshadowed by the much larger issue and priority that needs to be fixed first – the out of control homeless and mental health emergency. And the fact that ideas like Measure A have NOT produced nearly the results to make that vision become a reality. Move on.
Lastly, when I look at VTA financials – I am not sure they are in as “strong” of a position as they think when looking at their financial reports – which show big losses in investments (par for the course now) and very slow recovery from poor leadership decisions during the pandemic that put a stop to public transit. I live off of N 1st in Downtown San Jose – and sometimes when I am out walking the dog at 6am and 2 light rails pass by – I sometimes see less than 10 people on those 2 trains combined during what is rush hour in most cities. I believe, like San Jose was, VTA is propped up by federal funds issued during COVID, or the similar. They don’t seem to have sustainable revenue sources to fund these projects let alone operate for the long term.
“…impacted by extreme inflationary costs,”
But the Biden Administration says inflation is under control…..?
I’m confused.
Anyone want to evaluate how the first stretch to Berryessa is doing? How about we compare the actual usage to their estimates when they proposed all of this? I bet they are no where close to what they estimated when they got funding.
Telling us they’ll have 54,000 daily riders by 2040 means nothing when they have to spend $12B (or more) and take 13 years to build it. By the time 2040 rolls around, they won’t be liable for their over-estimation and waste of taxpayer funds. We will be on the hook for millions annually for the loses, take a look at the light-rail as a prime example.
And please, don’t even try to tell us the VTA is financially strong. We constantly are being told they are in desperate need of more money and we may have to raise new taxes to keep them afloat or they’ll have to reduce services.
The Vortex is as the Vortex does.
Related: What is it like around Diridon Station now, again, and what will be there later?
baaaaaaaaaaaaaaaaahahahahahahahahaha
you clowns understand that 12B will end up in someone’s pocket, well maybe a shockingly small number of people
Let’s not forget that VTA moved the goal posts. Previously the revenue target was 15% from farebox – I.e., 85% would be subsidized. VTA could not meet even that low bar and subsequently reduced it to 11% instead of cutting expenses. Effectively VTA is a featherbedding venture for unions and council members. Solution: make VTA directors an elected position and phase out subsidies.
Why can’t some sanity intervene and short of suspending the project for now, the whole idea of the single-bore subway be corrected to the existing design used by BART elsewhere, plus the wiser reconsideration of a subway versus using aerial right-of-way sections as in the photograph for this article, which most likely were anticipating earlier, anyway? That would be with any re-design of Santa Clara Street, and re-designs are so heavily in favor now, anyway.
If the tunnel were going to be kept (hopefully changing to cut-and-cover and with the same design used elsewhere on BART), don’t forget to change that ventilation facility near San Jose State to a station there. Don’t you want the school and the nearby community that has seen interest as an urban transit village to be served?
The Metropolitan Transportation Commission (MTC) is planning to push for a Bay Area-wide 2026 ballot measure to raise the region’s sales tax another half-cent to further fund commuter rail, buses and ferries.
MTC is asking residents to fill out a survey that never asks if people want to pay more taxes; instead, the higher tax is a given. Instead, it asks how people want to spend the money. There are five possible answers: transit, transit, bike lanes, transit, and transit. This “mega-measure” nonsense is quite annoying. Vote NO.
Over the last several elections, voters in Santa Clara County have passed multiple tax and fee increases including gas taxes, the Caltrain Measure RR tax, two bridge toll increases, three VTA sales taxes, Santa Clara County’s Measure A 1/8 cent sales tax, the state prop 30 ¼ cent sales tax and the 2010 Measure B Vehicle Registration Fee of $10. Additionally, we’re on the hook to pay back numerous state bond issues including high speed rail, the Proposition 1 water bond and the infrastructure bonds of 2006.
All this nickel and diming contributes into making the Bay Area a horribly expensive place to live; especially for people of modest means, who must pay the greatest percentage of their income in these regressive taxes and fees. Each increase by itself does not amount to much, but the cumulative effect is to add to the unaffordability of the region.
Before increasing taxes YET AGAIN, waste needs to be removed from transportation projects. For example, we need to eliminate the redundant and BART extension between the San Jose and Santa Clara Caltrain stations. The BART segment from these stations would duplicate both the existing Caltrain line and VTA’s 22 and 522 buses to a station that has approximately 1000 riders each weekday.
Why don’t the wealthy high rollers at MTC suggest taxing rich tech companies and leave the little guy alone for a change?
sales tax, the most regressive of taxes
baaaaaaaaaaaaaaaaahahahahahahahahaha
That’s for what is at the following site versus reality.
https://californiaforever.com/
The Metropolitan Transportation Commission (MTC) is planning to push for a Bay Area-wide 2026 ballot measure to raise the region’s sales tax another half-cent to further fund commuter rail, buses and ferries.
MTC is asking residents to fill out a survey that never asks if people want to pay more taxes; instead, the higher tax is a given. Instead, it asks how people want to spend the money. There are five possible answers: transit, transit, bike lanes, transit, and transit. This “mega-measure” nonsense is quite annoying. Vote NO.
Over the last several elections, voters in Santa Clara County have passed multiple tax and fee increases including gas taxes, the Caltrain Measure RR tax, two bridge toll increases, three VTA sales taxes, Santa Clara County’s Measure A 1/8 cent sales tax, the state prop 30 ¼ cent sales tax and the 2010 Measure B Vehicle Registration Fee of $10. Additionally, we’re on the hook to pay back numerous state bond issues including high speed rail, the Proposition 1 water bond and the infrastructure bonds of 2006.
All this nickel and diming contributes into making the Bay Area a horribly expensive place to live; especially for people of modest means, who must pay the greatest percentage of their income in these regressive taxes and fees. Each increase by itself does not amount to much, but the cumulative effect is to add to the unaffordability of the region.
Before increasing taxes YET AGAIN, waste needs to be removed from transportation projects. For example, we need to eliminate the redundant and BART extension between the San Jose and Santa Clara Caltrain stations. The BART segment from these stations would duplicate both the existing Caltrain line and VTA’s 22 and 522 buses to a station that has approximately 1000 riders each weekday.
If you have to raise taxes, pick on Big Tech and leave the little guy alone.