VTA, San Francisco say they have paid SamTrans

SamTrans Board Chair Charles Stone said he was glad both organizations responded, but he felt the letter did not answer SamTrans’ initial inquiry in its June 22 letter.

“I guess I’m really puzzled that the letter doesn’t actually respond to what our letter asked for, which was what efforts have you made to get us repaid as you agreed to over a decade ago. That was my initial reaction,” Stone said.

The VTA and San Francisco calculations are based on a forensic review of historical documents related to Caltrain governance from the firm Olson Remcho. The firm presented its report in July 2020 and April 2021 to the Peninsula Corridor Joint Powers Board, which owns and operates Caltrain. The report examined the 1991 Real Property Ownership Agreement and the 2008 Amendment to the Real Property Ownership Agreement between the agencies. It found that under the 2008 agreement, the total contribution owed to SamTrans was $53.3 million, with $2 million to be paid by San Francisco, $8 million by VTA, and $43.3 million by MTC on behalf of San Francisco and VTA, using primarily funds from state fuel taxes.

San Mateo, San Francisco and Santa Clara counties formed the Peninsula Corridor Joint Powers Authority and purchased the railroad right of way for Caltrain in 1991, using state funds and money advanced by SamTrans. San Francisco, in the letter, reaffirmed its commitment to complying with the 2008 agreement and paying $200,000 while working with MTC to identify a source of funds for the $19.8 balance owed to SamTrans.

The letter signees include San Francisco Mayor London Breed, San Francisco board President Shamann Walton, VTA General Manager Carolyn Gonot and Jeffrey Tumlin, San Francisco Municipal Transportation Agency director.

In its initial June 22 letter, SamTrans asked VTA and San Francisco to provide a written response about reimbursement details for its initial $82 million investment. The SamTrans board passed a June 22 resolution authorizing Acting General Manager Carter Mau to take any action necessary to implement the reimbursement of funds. Stone said the SamTrans board would respond to the July 26 letter after discussing the issue, which could occur at the Aug. 4 meeting, later on, or both.

San Francisco and VTA said both remained fully committed to the Caltrain governance review, but recent actions and statements by SamTrans call into question whether it shares the same view. Stone questioned the comments given recent events, citing board members at a June 25 Caltrain governance meeting purposefully leaving early over the potential concerns of litigation based on the SamTrans resolution. Other members representing VTA and San Francisco were not present at the June 25 meeting. VTA sent a letter to Caltrain officials before asking for a postponement, citing the issue of the reimbursement of the right of way and potential legal problems.

Stone was glad the letter acknowledged SamTrans could serve as managing agency as long as it chose to do so.

“If other member agencies plan to honor agreements that they entered with regards to SamTrans remaining the managing agency, then why are we spending taxpayer money on a $2 plus million effort that contemplates outcomes other than SamTrans being the managing agency?” Stone said.

The next SamTrans board meeting is Aug. 4.

curtis@smdailyjournal.com

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