Category: Metropolitan Transit Commission

Transit chief: P3s help but won’t solve transit funding woes

Sharon Road West station on Charlotte’s light rail line. Photo: Nancy Pierce

The idea of using public-private partnerships to help fund transportation systems, including mass transit, is one of today’s hottest topics in transportation policy circles. But the head of Atlanta’s MARTA cautions that P3s, as they’re known, aren’t a silver bullet for transit systems.

Keith Parker, who headed Charlotte’s transit system 2007-2009 and since 2012 has been MARTA CEO, was in town Tuesday, as a rail conference was kicking off. Parker spoke at a small event organized by the Transit Funding Working Group, a Metropolitan Transit Commission committee that’s been pondering how CATS can move forward despite huge gaps between the 2030 plan and available money to built it out.

The working group has studied P3s, and a P3 conference was held here in March. In transportation, public-private partnerships are being used for bridges, tunnels, toll roads and High-Occupancy-Toll lanes such as the new HOT lane planned for Interstate 77 north of Charlotte. A private company, Cintra, has contracted with the N.C. Department of Transportation to build the lane and use the toll revenue to operate it. In Vancouver, a P3 built one of the region’s rail lines.

P3s are touted as a way to get around a growing national problem of too many transportation needs and too little tax revenue to pay for them. With cars’ gas mileage increasing, a decrease in driving among young people, and a national gas tax that’s not been raised since 1993 and isn’t indexed for inflation, trend lines for transportation funding are heading down.

In Atlanta, Parker has won praise for helping improve MARTA’s relationships with the Georgia legislature and for bringing efficiencies to MARTA operations. And next week may see the first expansion of the system since it was launched 42 years ago in Fulton and DeKalb counties. A referendum is set for Nov. 4 in Clayton County, Ga., asking voters there whether to approve a 1-cent sales tax to expand MARTA into their county.

Parker, who described how MARTA is partnering with developers for transit-oriented developments on MARTA-owned land, cautioned the audience about the limitations of P3s, especially for transit programs. “They don’t solve your revenue issues,” he pointed out. And continuing revenues are needed, as well as capital expenses for building the transit lines and stations.

He quoted a popular misconception: “If you just go to the private sector they’ll build all your trains for you.”  That thinking? “It’s just a myth,” he said.

The Atlanta system is funded with a 1-cent sales tax in two counties. It receives no funding from the state of Georgia.  Mecklenburg County’s system is funded with a half-cent sales tax in only one county.

For more on the recent transit funding challenges facing Charlotte, see “Mayor: Transit sales tax funding may be at risk” from PlanCharlotte.org.

Streetcar seems to have momentum

Judging by the votes at a City Council transportation committee meeting this afternoon, the council is likely to vote Monday to apply for a couple of federal grants for transit. One would be for a $15 million project to add more buses on Central Avenue, Beatties Ford Road and out to the airport, essentially doubling the frequency to every 10 minutes. As Patsy Kinsey said – matching what an Observer editorial on Tuesday said – that decision is a “no-brainer.”

The other grant is trickier. It would be for $25 million to build a 1.5-mile section of the city’s proposed streetcar project. This part would go from Presbyterian Hospital down Elizabeth Avenue (where tracks are already laid) and East Trade Street to the Transportation Center. (If you’re not from around here you may not realize Elizabeth and Trade are the same street, with a name change).

The committee voted 3-2 to recommend the city go for the grant. Voting for: committee chairman David Howard, at-large rep Susan Burgess, District 1 rep Kinsey. Voting against: District 7 rep Warren Cooksey, District 4 rep Michael Barnes (who is running for district attorney in November).

Total project cost would be $37 million if the city decided not to buy new streetcars but to use three “replica” (that is, faux historic) trolley cars it owns. How to make up the $12 million difference from the $25M grant? City staff proposed that the council, if it wanted, could use $2.5 million still unspent from a streetcar planning budget line item, $4 million remaining in a “Smart Growth” fund that City Manager Curt Walton said was set up about 10 years ago but never completely spent, and it could take $5.5 million from $10.5 million that remains, unspent, in a reserve fund for economic development. The staff had also pointed to the option to reallocate $7 million from its business corridor revitalization program, but the council members at the committee meeting didn’t like that idea.

Barnes’ objection: Using the economic development money might mean less money available in the future for improvements to the North Tryon Street light rail corridor. Cooksey (who in 2009 voted against spending any city money for the streetcar project) said he worried that it would not be taken well by the city’s partner communities in the Metropolitan Transit Commission. Especially the North Mecklenburg towns still waiting, somewhat patiently, for money to be found to build their commuter rail line. He also said you could do just as much for transportation if you used the “found” money to build sidewalks and bike lanes.

I have to say, it always amazes me how city managers can find little pockets of millions of dollars just when their council member bosses need them. $4 million for “Smart Growth”? Who knew?

Counting likely votes Monday, I’d say the streetcar wins, 7-4. Mayor Anthony Foxx, remember, doesn’t vote on those sorts of things.