Issue | Background | Findings | Conclusions | Recommendations | Responses | Attachments San Mateo County Transit

Recommendations 5

• R1
  “The Board of Directors of the San Mateo County Transit District should actively seek out opportunities for development along the right of way.” Response: We agree and are doing so. SamTrans currently is reviewing proposals from well-established development firms for the design and construction of a transit-oriented development in San Carlos on right of way property. The project is intended to provide housing and retail integrated with the Caltrain station and bus service and to serve as a community gathering place for the residents of San Carlos and adjacent cities. It is our intention that this project also serve as a model for development projects along the right of way. Our formal, long-range planning calls for several similar projects on right of way properties over the next several years.
• R2
  “The Board of Directors of the San Mateo County Transit District should reopen negotiations with San Francisco and Santa Clara Counties to seek repayment of the contribution, plus accrued interest, no later than November 1, 2005.” Response: The issue of repayment has been the subject of continuing discussions with our partner agencies as we work together to find a means by which those funds can be generated. Specifically, we are engaged in the renewal of the Joint Powers Authority Agreement under which our partnership is governed and the issue of repayment and efforts to generate funds sufficient for repayment are key Hon. Norman J. Gatzert June 27, 2005 elements of those discussions. Further, we expect to continue to raise this issue with our partner agencies and with their support seek the means by which to obtain repayment.
• R3
  “The Board of Directors of the San Mateo County Transit District should work with San Francisco and Santa Clara Counties and their elected representatives to investigate sources of grants and state and federal monies that could be used for projects that would lead to repayment of the contribution.” Response: We concur with this recommendation.
• R4
  Board of Directors of the San Mateo County Transit District should report annually by November 1 to the Grand Jury on the status of activities and efforts to collect repayment of the contribution, plus accrued interest.” Response: SamTrans will comply with this recommendation.
• R5
  “The Board of Directors of the San Mateo County Transit District should insure that any future projects that SamTrans undertakes that include advances, contributions, or loans should be sufficiently secured to assure repayment, and should include specific terms of repayment at competitive interest rates, and should be an unrestricted obligation of the borrower.” Response: As noted above in the Response to Findings, it has been and will continue to be the policy of SamTrans to secure any and all investments with binding guarantees that provide security against the failure of a partner entity to make repayment, either by secured real estate, waiver of comparable financial obligations accruing to SamTrans or by an enforceable repayment schedule. We will be happy to respond to additional questions from the Grand Jury and, again, appreciate the efforts of the Grand Jury to understand the issues facing SamTrans and its relationship with the Peninsula Corridor Joint Powers Board. Sincerely, Michael J. Scanlon General Manager/CEO Cc: SamTrans Board of Directors David Miller