BART Locks In All Five Union Deals, Finds $30M in New Revenue

The BART Board of Directors closed a pivotal chapter in labor relations Thursday, unanimously ratifying the final union contract extension and aligning all five bargaining units to a common July 2027 expiration — setting the stage for the agency's first comprehensive negotiations in over a decade. The board also received welcome budget news: nearly $30 million in additional FY27 revenue from ridership growth and smarter cash management, even as directors debated how to sequence nearly $1 billion in borrowing options ahead of a make-or-break November ballot measure.

• All five BART union contracts now aligned to expire July 2027, completing the first coordinated labor framework since 2013

• FY27 budget outlook improves by $30M from higher ridership projections and revised investment income strategy

• Major Daly City station overhaul starting in August will slash transfer times system-wide, including a Bayfair cross-platform transfer that drops from 19 minutes to simultaneous arrival

• Staff recommends drawing $98M in federal TIFIA loan proceeds first to bridge the FY27 deficit, preserving $245M in reserves

• $13M UPS contract re-approved after federal rule change forced rebid, adding $1.3M in costs

• Licensed engineer warns board three times about BART-to-Silicon Valley Phase 2 safety concerns, calls for dedicated subcommittee

A 'Really Huge Moment' for Labor

The board voted 9-0 to ratify a contract extension with the BART Police Managers Association, the fifth and final bargaining unit to align its agreement to a common June 30, 2027 expiration date. The terms mirror what four other unions already accepted: 2% wage increases in each of two years, equivalent medical premium adjustments, changes to retiree health benefits, and — specific to sworn staff — reduced leave days that could put more officers on patrol.

Why it matters: BART hasn't conducted a full round of contract bargaining since 2013. Having all five unions on the same timeline gives management unprecedented leverage and cost certainty heading into what will be the most consequential negotiation cycle in a generation — particularly if a November revenue measure reshapes the agency's fiscal picture.

Where things stand: David Coleman, Director of Labor Relations, presented the item on what turned out to be his final day at BART. He reflected on six years navigating COVID-era labor relations and shepherding all five extensions to completion. Sgt. Scott Strance, BPMA President, thanked the board and staff, telling directors that "working together and creating these relationships have never been more important" as BART faces financial headwinds.

Director Mark Foley, District 2, moved the item and thanked BPMA leadership.

"I'd like to thank the BPMA leadership for coming to the table and working through aligning your contract with the other labor organizations," he said. "That is very much necessary for BART as an organization to move forward in the next few years."

Board Chair Janice Li, District 8, framed the vote in broader terms.

"I will note that this is actually a really huge moment for BART in that we have contracts, extended CBAs for all of our labor partners through this year through a really, really critical time period," she said.

Decisions: The resolution passed 9-0 (For: Ames, Flores, Foley, Ghosh, Li, Raburn, Rinn, Wright, Hernandez; Against: none; Absent: none). An independent, market-based compensation model for higher-ranking officers will be established in the next negotiation round.

What's next: The common July 2027 expiration means BART will enter comprehensive bargaining with all five unions simultaneously — the first time since 2013. The outcome of November's ballot measure will heavily shape what the agency can offer at the table.

$30M Budget Boost — but the Structural Gap Remains

BART's Budget Director Christopher Simi presented three positive revisions to the FY27 operating budget that together add nearly $30 million in projected revenue.

The basics: BART faces a structural operating deficit that it plans to cover through a combination of borrowing, cash management, and — if voters approve — a November revenue measure. The FY27 budget is scheduled for adoption June 11.

Why it matters: The additional revenue reduces but does not eliminate BART's borrowing needs. It does, however, strengthen the agency's fiscal narrative heading into a critical election cycle.

Where things stand: The three revenue improvements break down as follows:

• $8M in additional ridership revenue. April ridership is tracking 10% above last year and 6% above budget. BART's General Manager Bob Powers reported that Tuesday ridership hit 223,000 riders, boosted by a Dodgers game. The budget team is revising the FY27 projection upward, and for the first time projecting average weekday ridership crossing the 200,000 threshold.

• ~$22M in higher investment income. Staff adopted a more active cash management strategy, placing funds in diverse, higher-earning but safe instruments. Total investment income is now projected at $49 million.

• $285M state loan (SB117) integration. The loan carries debt service of $14.25 million, largely offset by $13.5 million in expected interest earnings — netting roughly $750,000 in cost for FY27.

"Our financial outlook heading into FY27 has improved," Simi told the board. "Obviously, this is not enough to erase a structural deficit, but it's certainly meaningful boost as we anticipate nearly $30 million in additional revenue in FY27."

Board Chair Janice Li pushed Powers to go further, reminding him of a standing challenge to identify additional operating expense reductions.

"I will just remind Bob that I had set a challenge for you of trying to identify additional operating expense reductions, recognizing that would help us really in the long term," she said.

What's next: The capital budget and a retirement incentive program come before the board in three weeks. The final operating budget presentation is scheduled for May 30, with the adoption vote on June 11.

Daly City Track Change Unlocks System-Wide Improvements

John FitzGibbon, Manager of Scheduling and Planning, presented the FY27 rail service plan — which retains the current level of train service but makes significant operational changes at Daly City station that will ripple across the entire system.

The basics: Starting in August, Blue and Green lines will terminate on Platform 3 at Daly City instead of turning around, while Yellow and Red lines will run through on Track 1. The change reduces reliance on aging track switches and unlocks a cascade of rider-facing improvements.

Why it matters: The operational tweak at one station produces measurable time savings for thousands of daily riders at stations across the system — the kind of concrete improvement that could help BART attract new ridership ahead of the November ballot measure.

Where things stand: The key improvements include:

• Bayfair cross-platform transfer: Currently a 19-minute wait. Starting in August, both trains will pull up together for a simultaneous cross-platform transfer.

• Berkeley/Richmond headways: Yellow and Red lines will be spaced 10 minutes apart, creating more even service for East Bay riders.

• Blue/Green headway smoothing: Current 17-minute gaps between trains will be reduced to alternating 8- and 12-minute headways, easing crowding.

• MacArthur connection: A new 4-minute transfer between Antioch/Bay Point and Richmond service.

Staff also noted the schedule was released in February — five months ahead of the August implementation — the earliest ever, to facilitate coordination with regional transit operators.

Vice Chair Edward Wright, District 9, underscored the stakes.

"I don't think we can overstate how consequential the service schedule change is here," he said. "I know people who have changed jobs or uprooted their lives and moved to have 20 minutes shaved off their commute."

Director Mark Foley, District 2, urged staff to present the changes directly to smaller connecting bus operators like AC Transit, noting that what might seem like minor BART adjustments could significantly affect their scheduling.

How BART Plans to Borrow Its Way to November

CFO Joe Beach laid out the agency's strategy for sequencing nearly $1 billion in available liquidity to cover the FY27 operating deficit — estimated at $98 million — while preserving financial backstops ahead of the November ballot measure.

Why it matters: The order in which BART taps its four sources of cash determines how much flexibility remains if the ballot measure fails, and directly affects the agency's credit rating.

Where things stand: BART has four sources of operating liquidity:

• TIFIA federal loan: $395M — 4.56% fixed, interest deferred to FY29

  • Staff-recommended first draw

• State loan (SB117): $285M ~4% variable, 12-year repayment

  • Hold in reserve

• Operating reserves: $245M — 3.6% opportunity cost

  • Protect for credit rating

• RHBT deferrals: $68M — 6.2% cost

  • Last resort only

"Draw down the TIFIA loan first, whether it's 98 million or a lesser amount," CFO Beach told the board. "That preserves our reserves, also protects our credit rating as well."

The TIFIA investment account has earned approximately $16 million since November.

The other side: Director Matthew Rinn, District 1, questioned whether reserves should be drawn down instead of taking on new debt. Director Rash Ghosh, District 3, took a different view, expressing alignment with staff's approach.

"I would really like us not to touch it," he said of the reserves. "I'm very much in alignment with how you've mapped this out."

Director Mark Foley, District 2, urged delaying the state loan draw-down as close to November as possible to maximize interest earnings and preserve optionality.

Board Chair Janice Li drew the sharpest line:

"I actually don't see a world where RHBT deferrals or accessing our reserves make any sense in a world where the measure passes," she said — then challenged staff to prepare a parallel playbook for the scenario where the measure fails.

What's next: The liquidity strategy will be finalized alongside the operating budget adoption on June 11. The November ballot measure remains the single largest variable in BART's long-term fiscal outlook.

Federal Rule Change Costs BART $1.3M on Critical Power Contract

The board voted 9-0 to re-award a contract for an uninterruptible power supply system at the Lake Merritt Administration Building to Blocka Construction at nearly $13 million — up $1.3 million from the $11.6 million originally awarded in September 2025.

Why it matters: The Uninterruptible Power Supply (UPS) system is the backbone powering BART's Operations Control Center, central computer room, relay rack room, and radio system. The existing system at the Met Building is aging and must be decommissioned as that site is slated for transit-oriented development.

Where things stand: The cost increase resulted entirely from the federal government's change to Disadvantaged Business Enterprise requirements in December 2025, which forced BART to rescind and re-advertise the contract. Only one bid was received on the re-advertisement.

Director Robert Raburn, District 4, called the $1.3 million increase "patently unfair" — noting BART was "punished for doing nothing wrong." Director Mark Foley, District 2, asked if the award could be deferred, but staff said a state TIRCP grant requires the contract be awarded by the end of May. Construction is expected to last 22 months.

Decisions: Passed 9-0 (For: Ames, Flores, Foley, Ghosh, Li, Raburn, Rinn, Wright, Hernandez; Against: none; Absent: none).

Engineer Sounds Alarm on Silicon Valley Extension — Three Times

Licensed professional engineer Barney Smits used three separate public comment periods to press the board on what he described as growing safety and oversight risks with BART's most expensive capital project: the BART to Silicon Valley Phase 2 (BSV2) extension.

Why it matters: The BSV2 project, managed by VTA, represents billions in planned federal, state, and local investment. Smits alleges the current single-bore tunnel design deviates from what the board approved in 2018 and reduces safety standards — raising questions about whether the project can secure a $5 billion FTA grant.

Where things stand: Smits argued that VTA's proposed upgrade to the 2026 NFPA 130 fire safety standard requires a complete rewrite of the design criteria manual, that emergency exits are being reduced, and that tunnel ventilation systems are being degraded. He cited BART's own Inspector General as having identified risks from poor communication and inconsistent oversight, and noted that key BART personnel who worked on BSV2 have left the agency entirely.

"Without clear communication and consistent board oversight, BART risks losing influence over design decisions that directly affect operations and maintenance," he told directors.

He also pointed to a San Francisco Chronicle letter that cited BSV2 waste as a reason to vote against upcoming BART measures — linking the project's trajectory to the agency's November ballot strategy.

Smits called on the board to establish a dedicated BSV2 subcommittee with regular updates. The board did not take formal action on the request.

35 Years of Building Bridges: Molly Burke Retires

The board paused its fiscal deliberations to honor Molly Burke, who retired after 35 years in BART's Government and Community Relations division — a career that spanned the SFO extension, Market Street canopy and escalator project, fare gate rollout, 16th and 24th Street Mission plaza renovations, Fleet of the Future outreach, Title VI compliance, and pandemic-era community engagement. She served under six general managers and eight San Francisco mayoral administrations.

"I am deeply humbled and honored to be recognized today for my 35 years of service to BART and to really four decades of work in transportation across the Bay Area," Burke told the board. "It's been a privilege of a lifetime." She added with a laugh: "I also outlasted the legacy of the A, B and C fleets. I also outlasted the blue carpet, the fabric and vinyl seats, and now our historic paper ticket."

Vice Chair Edward Wright, District 9, said he had "never heard a bad word" about Burke and noted that a San Francisco supervisor from a district without a BART station led a city commendation in her honor. Board President Melissa Hernandez, District 5, recalled meeting Burke at the Golden Mirror restaurant, where strangers asked, "Do you know Molly?"

Minor Items

• Consent calendar (Items A–F) approved 9-0, including multiple transit-oriented development and housing items.

• Take Our Kids to Work Day: Over 400 children of nearly 300 BART employees visited headquarters; a child named Anai Lewis led the Pledge of Allegiance.

• Audit Committee report: Director Rinn reported the committee reviewed the FY27 budget recap, OIG retaliation investigation authority, workers' compensation audits, and fuel card program findings.

• BARTY train wrap: GM Powers announced a new branded train featuring BART's mascot, currently running on the Green Line, as a potential new advertising revenue stream.

• Transbay Tube lighting project: Reduced Sunday service on April 26, May 7, and July 19 for installation work.

• APA awards: The North Berkeley TOD project won a NorCal APA award for excellence in urban design; the Lake Merritt Station Area Plan Implementation won a merit award.

• Rider communication concerns: Multiple directors flagged persistent failures in communication during service disruptions, including broken PA systems and outdated platform displays, and urged systemic fixes.

• David Coleman departure: The outgoing Director of Labor Relations was recognized on his last day for navigating COVID-era labor relations and completing all five union contract alignments.