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Bay Area Rapid Transit (BART) is set on concluding contract negotiations with all five of its labor unions by July 1 — so much so, the agency's board recently sent a letter to Gov. Arnold Schwarzenegger stating that BART will not be requesting a 60-day "cooling off" period and asking him to reject any requests for such a period from the unions.

In the past, BART or its unions have asked for the cooling off period if new contracts had not been settled by the June 30 deadline. However, BART is facing a nearly $250 million, four-year deficit that would increase if contract negotiations are "unnecessarily prolonged," the agency said in the letter.

Continuing contract negotiations 60 days past July 1 would cost the agency an additional $500,000 to $1 million in negotiation fees, BART said. It also would set new contract deadlines around the Labor Day weekend, when BART has been asked by the California Department of Transportation to operate 24-hour service for four or more days while the Bay Bridge is closed for construction. In addition, a contract settlement delay would not allow BART to realize savings in the first year of the contracts from health benefit changes and staffing level adjustments, according to the agency.

BART plans to eliminate two-thirds of its deficit through a variety of cost-cutting measures, including $100 million in labor cost reductions. Agency officials have been negotiating with the unions since April 1 and are asking workers to reduce the cost of their benefits and pensions. BART also has proposed to eliminate contract language that "limits the agency's right to improve productivity by changing outdated work rules that also would help cut costs," according to a prepared statement.

BART recently approved a fare hike and implemented parking fees at some stations.