BART Board Tackles Silicon Valley Tunnel Safety Fears, Sees Encouraging Revenue Numbers

BART's board received a mixed bag at last week's meeting: ridership and fare revenue are beating projections, easing immediate fiscal pressure, but directors and a vocal licensed engineer clashed over safety standards, eliminated emergency exits, and transparency gaps in the multi-billion-dollar Silicon Valley extension. Meanwhile, the Inspector General flagged $1 million in billing inconsistencies in the Link 21 mega-regional rail program — but found no fraud.

• BSV2 safety and oversight disputes dominate as an engineer warns of eliminated tunnel emergency exits and arbitrary code changes by VTA

• Ridership surges 12.5% year-over-year, with February ending 8.2% above budget, boosting fare revenue by $12.6 million

• BART still burning cash: the district spent $102 million more than it earned in six months, though $27.7 million less than projected

• Link 21 audit finds $1 million in billing inconsistencies and 24 recommendations across $130 million-plus in expenditures — no fraud

• Inspector General recovers nearly $2 million from theft and error, closes 12 investigations

• Board adopts SB707 remote access policy 9-0, formalizing protections for people who can't attend meetings in person

BSV2 Safety Battle: Engineer Sounds Alarm, Directors Spar Over Oversight

The BART Silicon Valley Phase 2 (BSV2) extension — the region's largest active transit mega-project — consumed more board time than any other topic, with directors, staff, and public commenters tangling over safety code changes, VTA transparency, and whether BART's own board is getting enough information to exercise real oversight.

The basics: BSV2 will extend BART through downtown San Jose via deep-bore tunnels. VTA leads construction; BART will eventually operate the line. The project is on a path toward a federal full funding grant agreement, with early works now expected in 2027 and tunneling in 2028.

Where things stand: Board Member Robert Raburn, who sits on the BART-VTA Oversight Committee, reported that the March 6 committee meeting covered fiscal responsibility, cost savings, and timeline acceleration. "The path to full funding grant agreement is moving up. The dates of many of the projects, including early works, will move up to 2027. Tunneling is expected to move up to 2028," he said. Up to five oversight meetings are scheduled for 2026, responding to the Inspector General's December 2025 report calling for greater transparency.

But optimism about timelines collided with sharp concerns about what's happening inside the tunnels' design. Barney Smits, a licensed professional engineer and former BART engineer, delivered three public comments across the meeting warning that VTA's arbitrary switch to 2026 NFPA 130 fire life safety standards eliminated mid-tunnel emergency exits, introduced unsafe soft starters in emergency systems, and required a complete redesign of the project's design criteria manual. He noted the California Public Utilities Commission told VTA during Phase 1 that it cannot selectively adopt code provisions, and he cited a Shanghai sinkhole caused by underground rail construction as a cautionary example. He called BSV2 "a financial, safety, schedule, political, and engineering nightmare" and demanded BART take a stand on safety. He also called for a separate BART subcommittee dedicated solely to BSV2.

The other side: Board Member Liz Ames amplified concerns about information flow, saying "the concern I've raised briefly at that meeting is there is a lack of information shared at the board level." She noted VTA holds meetings separate from BART's and that a VTA oversight meeting conflicted directly with this board meeting, urging better coordination with VTA's general manager.

Vice President Edward Wright pushed back, arguing that committee members need to show up to be effective. "If you are assigned to the committee, I strongly, strongly recommend that you show up at the committee so that you can make those comments and engage," he said, adding that he had asked extensive questions and recommended a site visit.

A public commenter named Roland proposed collapsing the BART-VTA joint meeting and the VTA oversight committee into a single session to reduce scheduling conflicts. He also suggested exploring a public-private partnership model similar to the Channel Tunnel or Bechtel's Sepulveda Corridor project, with VTA serving as a funding partner.

Why it matters: The safety code disputes and scheduling conflicts are not merely procedural. If VTA's design changes create genuine fire life safety risks, they could jeopardize federal approval and — more critically — rider safety in tunnels stretching thousands of feet. The tension between BART directors who want more oversight and those who say the existing committee structure works signals a governance fault line that will only sharpen as construction approaches.

What's next: The next BART-VTA oversight committee meetings are scheduled through 2026. Watch for whether the board acts on calls for a dedicated BSV2 subcommittee and whether VTA addresses the NFPA 130 code concerns raised by Smits and the PUC's prior guidance.

Link 21 Audit: $1 Million in Billing Errors, No Fraud, 24 Recommendations

Deputy Inspector General Jorge Oseguera presented the results of a comprehensive performance audit of the Link 21 mega-regional rail program covering August 2019 through June 2024. The audit, conducted by contractor BCAWR, examined contractor selection, compliance, management oversight, funding, equity outreach, conflicts of interest, and expenditures across more than $130 million in spending.

Where things stand: Key findings included approximately $1 million in billing rate inconsistencies from advanced rate agreements not used per contract terms, and $2.1 million in work performed outside the work plan schedule due to confusion between prime contractor terms and work plan requirements. Critically, no instances of fraud, waste, or abuse were identified. The audit also flagged that BART's $1,000 campaign contribution limit is double the state's $500 limit, posing a potential legal risk — though the board was found in full compliance with Form 460 filing requirements and conflict of interest forms. General Counsel Gina Zeland confirmed an amendment to the board's campaign contribution rule is being drafted.

The audit produced 24 recommendations, all accepted by management.

The other side: Board Member Liz Ames questioned the use of Measure RR funds for Link 21 given BART's fiscal condition. "We did try to use, I think, Measure RR funds for Link 21. So not sure if we're deciding a different funding source should happen," she said.

Board Member Rash Ghosh raised a structural accountability question, suggesting mid-project audits for large planning programs like Link 21, where there is nothing physically built at the end, making outcomes harder to measure. The Inspector General agreed to consider such an approach for future programs.

Public commenter Roland challenged the OIG to investigate VTA finances, claiming $2.1 billion was unreported to the FTA, and criticized Link 21's $130 million spend as wasteful compared to other proposals.

Why it matters: In June 2025, the BART board transferred Link 21 leadership to the Capitol Corridor Joint Powers Authority. The 24 recommendations must now survive that organizational transition — or risk being lost. With federal funding options for the program uncertain, the audit serves as both a clean bill of health and a warning about contract management basics.

What's next: Management has accepted all recommendations. Director of Performance and Audit Dennis Markham confirmed all 48 recommendations across recent audits have been accepted, with implementation dates for construction change order audit items set for June or July 2026.

Inspector General Reports Nearly $2M Recovered, 12 Cases Closed

Inspector General Claudette B. Murray presented the OIG's semiannual report for the first half of FY26, reporting the office closed 12 investigations, opened 13 new cases based on whistleblower hotline complaints, and advanced four major audits covering inventory management, workers' compensation, non-revenue vehicles, and service disruptions.

"Our work has recovered nearly $2 million in recovery for the district from funds that were either lost to theft or error," IG Murray said. About half of all fraud allegations investigated are substantiated, with recurring risks in timekeeping, contracting, and improper use of resources.

Management implemented 10 recommendations during the period. However, the service disruptions audit has been slow to start due to data access challenges — the OIG still lacks the ability to run queries in PeopleSoft, BART's enterprise system. The office is filling a staff vacancy with a new team member.

Public commenter Glenn Overton urged the board to clarify BART's mission, vision, and values, and praised the IG's role in ensuring professional ethics and transparency. Alita Dupree, a public commenter, praised the IG's cost recovery efforts and argued that falsifying timecards should be a terminable offense.

BART's Fiscal Tightrope: $28M Better Than Budget, Still $102M in the Red

Why it matters: BART ended the first half of FY26 spending $27.7 million less emergency assistance than budgeted — good news driven by fare revenue exceeding projections by $12.6 million (nearly 10%) and strong investment income. But the district still spent $102 million more than it took in, underscoring the structural deficit that state emergency funding has been papering over.

Where things stand: Budget Director Chris Simi reported total operating expenses came in nearly on budget — only $87,000 above plan. Staff declined to issue a year-end projection due to high uncertainty. Director of Financial Control and Accounting Penn Romero reported total cash and investments of $1.6 billion, including $488 million in SB125 emergency funds expected to be significantly reduced by year-end. Total reserves excluding SB125 stand at approximately $270 million. Outstanding bonds and loans total just over $4 billion.

Board Member Janice Li framed the results as a useful baseline: "There's nothing explosively new or wild in this QFR, which is good. No massive surprises."

The pension discussion got detailed. Board Member Liz Ames pressed on unfunded accrued liabilities, noting the absolute dollar amount had grown approximately $200 million since 2019. The CFO explained that while liabilities grew, the funded ratio improved from the lower 70s to about 77% due to CalPERS investment returns, and that PEPRA legislation addresses long-term liability growth. Vice President Edward Wright added important context: "Under the U.S. Bureau of Labor Statistics calculator, the cumulative inflation since 2020 is between 26 and 27%," suggesting the real growth in unfunded liability is modest when adjusted for inflation.

Board Member Robert Raburn proposed a concrete cost-reduction idea: right-sizing train lengths in the next schedule change to reduce power consumption, fleet wear, and police time spent on train holds. "I propose to raise the bar on reducing operating expenses. Specifically, can BART reduce expenses by right-sizing the train links in the next schedule change," he said.

The Retiree Health Benefit Trust received encouraging news: the 2025 actuarial showed 75.4% funded status, up more than one percentage point despite two months of deferred contributions, driven by high interest earnings.

What's next: With SB125 funds expected to be nearly exhausted by fiscal year's end, the board faces a looming fiscal cliff. The positive Q2 variance buys time but does not resolve the underlying structural imbalance between revenues and expenses.

Ridership Recovery Fuels Optimism, D.C. Advocacy Trip Ahead

General Manager Bob Powers reported February ridership ended 8.2% above budget and 12.5% above the prior year, with March tracking about 8% above budget as well. "February ridership ended 8.2% above budget, and that's about 12.5% higher than a year ago," GM Powers said, crediting frontline employees for day-to-day improvements in on-time performance, safety, and system cleanliness.

The district submitted approximately $15 million in federal earmark requests through five congressional representatives and two senators, covering station improvements and police vehicles. Seven board members will travel to Washington, D.C., for the annual advocacy trip focused on rider experience improvements, the alternative service plan, and surface transportation reauthorization priorities.

GM Powers also highlighted the El Cerrito Plaza transit-oriented development groundbreaking, noting former Director Rebecca Saltzman's instrumental role in BART's TOD efforts and the project's benefits from AB 2923. Board Member Rash Ghosh added that the groundbreaking drew strong representation from El Cerrito officials, state legislative offices, and the TOD team.

Multiple directors reported on legislative briefings with Assemblymember Wicks regarding the alternative service plan and TOD status, and a presentation to the Oakland Public Works Committee on BART's fiscal cliff.

Minor Items

• Consent calendar approved unanimously 9-0. Individual items were not specified in the transcript.

• SB707 remote meeting access policy adopted 9-0. The policy, presented by General Counsel Gina Zeland, requires BART to recess for up to one hour if telephonic or internet service is disrupted during a meeting. Public commenter Alita Dupree praised the policy as essential for people with disabilities who participate remotely.

• Board Member Mark Foley thanked staff who participated in the Chinese New Year Parade.

• GM Powers recognized Procurement Month and the contributions of John Maz and the procurement team, Transit Employee Appreciation Day, Women's History Month events, and the annual Autism and Transit Project event.

• Public commenter Alita Dupree reported a positive experience with Clipper 2 during a Bay Area visit, urged more good-news stories about the fare payment system, and raised issues about Clipper 2 bulk migration delays, electricity cost management, and renewable energy purchasing.

• Closed session was held on items A, B, and C. Nothing was reported upon the board's return. The meeting adjourned at noon.