SANTA CLARA

Valley Transportation Authority

5, 2011
Bradley
Silicon' Valley Transit Users
P. O. Box 390069
Mountain View, CA 94039-0069
Dear Mr. Bradley,
Thank you for your recent correspondence regarding items on the agenda for the December 8
meeting of the Santa Clara Valley Transportation Authority Board of Directors.
In answer to your first question regarding the amount of funding requested of the Federal Transit
Administration's New Starts program, as you noted, VTA has requested New Starts funding in
the amount of $900 million in our New Starts submittal. This amount was agreed to after mutual
deliberation with the Federal Transit Administration (FTA), and was based on FTA's assessment
and analysis of cost, schedule, and risk contingency. The amount of our request reflects a 61
percent local/state share and 39 percent federal share, which led the FTA to assign the project a
medium-high New Starts Funding Share rating and an overall medium New Starts rating. Both
the rating and the ratio of local and state to federal funding are significant factors considered in
the funding ofNew Starts projects. To the extent we are able to increase our federal share of
funding, more local funding can be used to deliver Phase II, Berryessa to Santa Clara.
You also asked about construction change orders. As you know, VTA has selected the Design-
Build delivery method for the C700 Line, Track, Stations and Systems Contract because this
method is anticipated to reduce overall costs and also to reduce the overall schedule for
completing the project. These advantages are derived by assigning both final design and
construction responsibilities to the Design-Build contractor.
The Design-Build method typically reduces costs by enabling the Design-Build Contractor to
complete final designs in a manner that best fit his construction approach, and by reducing the
owner's cost for managing final design, and construction. The schedule duration is also reduced
because the Design-Builder can produce the final design and construction plans and
specifications in a sequence that best matches his planned construction activities. On the SVBX
Project, these savings are estimated to be $85 million in cost savings and a 6-month schedule
savings as compared to the traditional Design-Bid-Build approach.
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The Design-Build methodology also reduces the likelihood of construction claims and change
orders that normally result from problems with the final plans and specifications produced by the
owner. Because the final plans and specifications are produced by the design builder, the
responsibility for the completeness and accuracy of final designs remains with the Design-
Builder and not with VTA. Therefore, the Design-Build methodology typically results in fewer
claims and change orders than would normally be encountered when using traditional Design-
Bid-Build approach.
VTA has assembled a project management team with significant experience managing Design-
Build contracts. This team includes construction management professionals from the private
sector, cooperating agencies and from BART with experience in successfully delivering BART
projects using the Design-Build method. VTA expects the Design-Build method to make a
positive contribution to meeting or exceeding the cost and schedule objectives for the SVBX
Project with fewer construction change orders.
On a separate note, pursuant to your request, please find the two letters of interest we have
received thus far indicating an interest in serving as officers on the VTA board.
Thank you for your interest and please do not hesitate to contact us if you have questions on
either of these items.
Regards,
Michael Burns
General Manager
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