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Review of Transit Governance Structure

Review of Transit Governance Structure. Citizens Transit Advisory Group May 2004. History. 1998 2025 Integrated Transit/Land Use Plan Voters approved half-cent transit sales tax 1999 Metropolitan Transit Commission established Public Transit Department created within City of Charlotte

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Review of Transit Governance Structure

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  1. Review of Transit Governance Structure Citizens Transit Advisory Group May 2004

  2. History • 1998 • 2025 Integrated Transit/Land Use Plan • Voters approved half-cent transit sales tax • 1999 • Metropolitan Transit Commission established • Public Transit Department created within City of Charlotte • 2000 • Charlotte Area Transit System created as brand name

  3. Current Governance Structure Characteristics • 8 equal votes amongst 8 Mecklenburg County jurisdictions – 1 vote each on the MTC • Ex officio involvement of surrounding jurisdictions and State DOT’s • Chair rotation between Charlotte Mayor and Mecklenburg County Board of Commission Chair • City Administration of transit system: • CATS is a City department • CEO reports to the City Manager • Administration under City policies • City Council approves contracting actions • City Council and Board of County Commissioners must approve annual transit program/budget • Towns can withdraw/dropout

  4. Mandatory Governance Review Following is the paragraph from the Transit Governance Interlocal Agreement explaining the requirements for the Citizens Transit Advisory Group’s (CTAG) study. Section IX.C Mandatory Governance Review During FY04, the CTAG shall undertake a comprehensive governance review which shall consider the effectiveness of this Agreement and the governance structure established hereunder as well as other possible governance structures including, but not limited to, various forms of a transit authority. The governance review shall be conducted in a manner that ensures public and transit stakeholder input and participation. No later than June 30, 2004, the CTAG shall provide the governing boards of the parties to this Agreement with its report and recommendations.

  5. Study Scope and Process • Started last July; retained assistance from UNCC • Conducted literature search • Developed Governance Principles • Reviewed 30 plus urban areas • Identified and studied 11 comparable areas • Evaluated current structure against Principles • Conducted public input and stakeholder meetings • Processed information and formulated preliminary recommendations.

  6. Transit Governance Structure Principles CTAG has adopted six principles to be used to review the current governance structure and to develop recommendations for changes. 1. Consistency with/support for achievement of 2025 Plan Goals: • Support Centers and Corridors land use vision – connection to local government land use decision-making. • Increase travel options available to the public – facilitate implementation of improved transit services. • Develop regional transit system – facilitate development of rapid transit and other services across county lines. • Support economic growth and sustainable development – local government land use connection and understanding of market forces.

  7. Transit Governance Structure Principles (Continued) • Governance structure should relate to where the money comes from to pay for operations and cover local share of capital costs and ensure equal representation for the public. • Governance structure should be understandable to the general public and stakeholders. • Governance structure should ensure reliability and accountability to the general public and to funding entities (i.e. Federal and State governments). • Governance structure should promote efficiency and effectiveness by facilitating good policy-making and management practices. • Governance structure should be implementable – political acceptability and adaptability to changed circumstances/trends.

  8. Review of Current Transit Structure Current structure has performed well but has limited long-term utility: • Significant progress with minimal controversy • Strong land use connection • Elected officials accountable to public • Lack of proportional representation • Structure is complex; hard to understand • MTC policy role vs. City administrative role: pluses and minuses • Lack of regional representation • Sustainability of current structure is problematic

  9. Why the Recommended Changes • From the research…. • Land use connection with transit essential • Dedicated revenue sources insure stability • Proportional representation promotes regional cooperation • Organizational simplicity/clarity promotes accountability • From the analysis…. • Need mechanism to overcome geographic limitations of current structure • As structure expands, complexity of current structure will cause instability and inefficiency • FTA Continuing Satisfactory Control requirement for federally funded assets

  10. Preliminary Recommendation Overview Long-term vision: Independent regional transit agency owning/operating transit facilities across county and state lines Getting there: Incremental organizational changes triggered by specific events involving commitment of funding and adoption of transit-supportive land use policies

  11. Governance Study Next Steps • Complete second round of public/stakeholder public input sessions • Finalize recommendations and prepare report • Present recommendations to the MTC on June 23, 2004

  12. Status of Rapid Transit Planning South Corridor Light Rail in Final Design • Vehicles ordered • Construction start later in 2004 Other Corridors environmental and engineering studies • North Corridor contract on 5/10 Council agenda • NE and SE/West Corridors contracts in June • Streetcar/Center City contract in July Studies will take 18-24 months • Finalize alignment, number and location of stations • Finalize technology in SE/W Corridor • Prepare Draft Environmental Impact Statement • Update ridership and cost estimates

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