VTA is finding ways to patch the Silicon Valley BART expansion’s nearly $1 billion budget gap, from extra state funding to restructuring expensive contracts.
The California Transportation Commission awarded two grants to the BART expansion project on Thursday and Friday, totaling about $100 million. At the same time, the VTA board of directors has approved recommendations to look for a different contractor to bore the expansion’s 5-mile tunnel, hoping to save on the expensive contract.
While VTA representatives are excited about the funding, the public transit agency still needs to find millions in savings on the $12.75 billion project. Estimates show the funding gap to be between $700 million and $1 billion, even with a $5.1 billion federal funding commitment.
VTA Board Chair and Campbell Mayor Sergio Lopez said he’s glad the grants were fulfilled at the requested amounts, especially as agency officials discuss ways to cut costs.
“I know oftentimes at the city level, even getting partially funded for some of these grants is positive, so it speaks to the importance of this project for the region,” Lopez told San José Spotlight. “It’s definitely welcomed, but we’re going to continue having (discussions) where we take a big picture look at every level of cost savings, as we’ve been doing.”
Construction has already begun at the Newhall Maintenance Yard on the border of San Jose and Santa Clara, where Kiewit Shea Traylor is building the launch structure for the tunnel boring machine. The VTA board approved plans to keep Kiewit Shea Traylor on to finish the launch structure, but to look for another contractor to bore the tunnel.
VTA officials said they negotiated with Kiewit Shea Traylor for about 18 months, but their prices were nearly twice what VTA could afford. Tom Maguire, VTA chief megaprojects delivery officer, said the agency spoke with other possible contractors and heard multiple cost estimates well below Kiewit Shea Traylor’s offer.
Suds Jain, a VTA board member and Santa Clara councilmember, said he feels the decision to cut the contract should have been made earlier, when the public transit agency’s negotiations team knew Kiewit Shea Traylor wouldn’t come down.
Jain said the agency needs to look at bigger cost savings, such as a smaller tunnel size, because of the large funding gap.
“We can’t apply to the feds until we have all the money. We have to prove we can build the project and in my opinion, I personally can’t see that we have the money,” Jain told San José Spotlight. “It’s good news, but I don’t think it’s enough for us to build the 54-foot tunnel.”
It’s unclear how large the project’s funding gap is now, as VTA has adjusted elements to bring the cost lower, such as changing parking lots and designs. Officials estimate those cuts could total about $400 million in savings.
They don’t have an estimate on how much can be saved by cutting the contract with Kiewit Shea Traylor, since it’ll depend on the cost of the new contract. Finding another contractor will delay groundbreaking on the tunnel by about 18 months, though officials said they’re looking for ways to save time during construction — aiming to maintain the expansion’s 2037 expected opening.
Monica Mallon, a transit activist and San José Spotlight columnist, said the state grant shows momentum and commitment from VTA officials and the state. She said the awarded money is especially important given concerns around federal funding cuts to other services and the administration’s hostility against California and transit projects.
“What gives me a lot of hope is that it’s very clear that our elected officials and everyone working on the project still really care about moving the project forward and getting funding,” Mallon told San José Spotlight. “(The grants) show the state is committed to the project and wants to see it move forward, and has confidence that VTA will be able to deliver it.”
Contact B. Sakura Cannestra at [email protected] or @SakuCannestra on X.
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