Bay Area Council Sends Letter to Governor Schwarzenegger Requesting ''Special Legislative Session'' to Resolve Bay Bridge Funding Solution.

SAN FRANCISCO -- Extending Contract Decision May Be Another Option

Today the Bay Area Council sent a letter to Governor Schwarzenegger and members of the California Legislature requesting a special legislative session to work out a final funding solution for the Bay Bridge.

The text of the letter follows:

A[micro]   August 30, 2004

A[micro]   Dear Governor Schwarzenegger:

A[micro]   The financial crisis in Caltrans' toll bridge seismic safety
program has provoked a great deal of heated debate but no agreed
solution. All recognize that these projects are critical for the
safety of the traveling public and for the safety of the Bay Area and
California economies. On behalf of the Bay Area business community, I
urge you to use your good offices to bring all responsible parties
together to find a mutually acceptable solution and to call a Special
Session of the Legislature to enact that agreement.
A[micro]   With the regular session of the Legislature now closed, your
leadership is required now more than ever. I believe that by convening
the key parties -- responsible state agencies, legislative leaders,
the Metropolitan Transportation Commission, and other stakeholders --
you can guide negotiations to a solution that will allow this seismic
safety project to continue, without unfairly burdening Bay Area
residents and without adversely affecting other transportation
projects in California.
A[micro]   I understand that your Administration is investigating whether the
bidder on the self-anchored suspension contract would agree to extend
its bid beyond the current September 30th deadline. This would allow
an audit of cost overruns to be completed and would allow time for
reasoned deliberation of a financial strategy. However, the effect of
a time extension on the cost of other Bay Bridge seismic safety
contracts must be fully evaluated. Should the bidder refuse to extend
the bid deadline, or should you learn that to do so would
significantly increase other contract costs, I urge you to act without
delay to convene the parties mentioned above and reach agreement on a
solution. With such an agreement, I believe that the Legislature would
act quickly in a special session to enact the solution, allowing
Caltrans to accept the current bid by the September 30th deadline.
A[micro]   It is regrettable that this issue has ignited regional conflict in
California. As a Bay Area business leader, it is clear to me that the
Bay Area and California benefit greatly from one another. Although the
Bay Area incorporates only 20 percent of California population, the
region generates 32 percent of total state economic activity and
provides 38 percent of state income tax revenue. Economic vitality in
the Bay Area depends upon the strength and integrity of the
transportation system, and California benefits greatly from that
economic vitality.

A[micro]   Best,

A[micro]   Jim Wunderman
A[micro]   President and CEO

cc:     Sunne Wright McPeak, Secretary for Business, Transportation
        and Housing
        Senate President-Elect Don Perata
        Assembly Speaker Fabian Nunez

Bay Area Council

Founded in 1945, the Bay Area Council (www.bayareacouncil.org) develops and drives regional public policy initiatives and researches critical infrastructure issues. Led by CEOs, the Bay Area Council presents a strong, united voice for more than 275 major employers throughout the Bay Area region in promoting economic prosperity and quality of life. Jim Wunderman has served as president and CEO of the Bay Area Council since April of 2004.