Monday, July 9, 2012

Portland Transit Follies

Transit Hypocrisy by John Charles | May 21, 2012 http://cascadepolicy.org/news/2012/05/21/transit-hypocrisy/

Two years ago, the head of the Federal Transit Administration (FTA), Peter Rogoff ,gave a speech to a room full of transit executives. His remarks were unusually blunt. Mr. Rogoff admitted that the transit planning process for new projects was biased in favor of light rail. But he reminded people that rail systems had significant long-term costs. FTA recently had concluded there were more than $78 billion in deferred maintenance costs for public transit agencies in the U.S., and three-fourths of those costs were associated with rail systems.

Mr. Rogoff pointed out that many local transit districts were seeking large federal grants for new rail lines, even though their overall levels of service were shrinking. He asked rhetorically, “If you can’t afford to operate the system you already have, why does it make sense for us to partner in your expansion?”

In the face of funding shortages at all levels of government, Mr. Rogoff reminded the executives that decisions about new transit service were moral decisions and that political leaders needed to “have the guts to say ‘no’ when everyone else wants to say ‘yes’.”

Unfortunately, Mr. Rogoff apparently forgot this speech as soon as he gave it. During the next two years, his agency encouraged Portland’s TriMet to continue planning for the most expensive transit project in the state’s history, the Portland-Milwaukie light rail line (PMLR). The Milwaukie line will cost more than $205 million per mile to construct and will destroy 68 businesses and 20 private homes.

In order to partially finance the so-called “local share” of the price tag (50% of construction cost), TriMet will have to sell $60 million of bonds in the next two years, and the debt service on those bonds will cannibalize bus service that has already been reduced four times since 2009.
Since TriMet service is shrinking, the agency is clearly in need of the “tough love” that Mr. Rogoff preached in 2010. Yet tomorrow, Mr. Rogoff himself will be in town to announce FTA approval of a Full Funding Grant Agreement (FFGA) that will waste some $745 million in federal money on the project over the next eight years.
There are many reasons why federal funding should have been denied years ago for the PMLR project. The most important is that TriMet has consistently violated FTA requirements that local transit agencies successfully operate federally funded capital projects for at least 20 years.

The most egregious example is the original MAX line that opened in 1986. At the time the Blue Line was being planned, TriMet promised that trains from Gateway to downtown Portland would run every five minutes during peak periods. Today, the actual frequency (known as “headways”) is every 8 minutes, or 60% worse than promised.
TriMet learned a lesson from this experience, but unfortunately it was the wrong lesson. Instead of killing the expensive rail program, TriMet simply lowered expectations for service on future rail lines. For the Yellow Line to North Portland, TriMet promised 10-minute service intervals for peak periods. Yet even with this lower bar, the agency could not meet its commitment. Peak-hour service on the Yellow Line currently operates at 15-minute headways, 50% below what was committed to.
The agency’s newest rail line, the Green Line to Clackamas Town Center, opened in September 2009. By then TriMet’s finances were so bad that project managers knew even before it opened that promised levels of service would not be met. Green Line service has been at least 33% below FFGA requirements since day one.
TriMet is now promising FTA that when the Milwaukie line opens in March 2016, it will offer peak-hour service every 10 minutes and off-peak service every 15 minutes. But since TriMet is unable to offer such service on any of its rail lines right now, no one should take this forecast seriously.

The saddest part about Milwaukie light rail is that it will make current transit riders in that corridor demonstrably worse off than they are today, due to the elimination of express bus routes. Nine buses stop at the Milwaukie Transit Center, and five of them travel on McLoughlin Boulevard to Portland city center. However, once light rail opens, all of these buses will no longer provide service north of Milwaukie. Transit customers boarding buses from points south will be forced to transfer at Milwaukie.
Light rail will also take longer than express bus service. The current scheduled time-of-travel for a trip from downtown Milwaukie to Portland State University on the #99 McLoughlin Express bus averages 17.5 minutes. An early morning run makes it in 12 minutes. The forecasted time of travel for light rail – which offers no express service – is roughly 19 minutes for the same distance.
None of this is necessary, because there is a very cheap alternative – a fact well known to Mr. Rogoff. Last month the FTA released a study, Metro Orange Line BRT Project Evaluation, looking at the cost-effectiveness of two different versions of bus rapid transit (BRT) in Los Angeles. The Orange Line is high-end BRT that resembles light rail because it has its own exclusive right-of-way and never has to travel in mixed-flow traffic. A second variation, known as the Metro Rapid bus, operates in general purpose arterial lanes, but achieves relatively high travel speeds simply by spacing stops apart by about 0.8 miles.

The study showed that in most respects, both light rail and exclusive-lane BRT are not cost-effective. The Metro Rapid bus system is the real bargain, especially compared with expensive light rail projects:

Capital Costs of Light Rail and Bus Rapid Transit Projects Capital cost/mile

Portland-Milw. Light Rail Line
LA Gold Line Light Rail
LA Orange Line BRT
LA Metro Rapid BRT, Ventura Line
$205 million
$62.7 million
$26 million
$0.2 million
Peter Rogoff is about to hand over $745 million in federal funds for a Portland light rail line that will cost 1,017 times more than the LA Metro Rapid system. In what ways is it 1,017 times better?
Actually, it’s not even as good. The Rapid Bus system is cheaper, more flexible, twice as fast, arrives more often, and is easier to implement.
For more than 25 years, the Federal Transit Administration has been playing Charlie Brown to TriMet’s Lucy. No matter how many times TriMet promises to successfully operate another light rail project, in the end they always yank the ball away from FTA. Yet, here is the FTA administrator, getting ready to tee up another new project.
We know how this is going to end. TriMet’s rail empire will grow by a tiny fraction, while more bus service gets cut. As Mr. Rogoff once said, we need someone with the guts to say “no,” but it certainly won’t be him.

Insolvency, One Step at a Time by John Charles | May 16, 2012


The Oregonian on Sunday examined TriMet’s deteriorating finances and called attention to high-cost union contracts, first approved in 1994, as the starting point of the decline. Due to the compounding effect of these contracts, TriMet now spends $1.63 in benefits for every $1.00 spent on wages, and the agency has more than $1.2 billion in unfunded actuarially accrued liabilities for promised retirement benefits.

As a result, transit service has been cut by 14% in the past four years, and more cuts are due beginning September.
What was revealing in the Oregonian feature was how no one was willing to accept responsibility. At any point during an 18-year period, dozens of people served on the TriMet Board or in top management positions, and they could have demanded change. But they didn’t.
Of course, leadership starts at the top, and it’s the governor who appoints the TriMet Board. In August 1994, then-Governor Barbara Roberts met with the TriMet board chair, Loren Wyss, who strongly objected to the draft contract. Instead of supporting him, she forced him off the board.

The legacy of that decision is a terminally dysfunctional business model at TriMet. Someone on the TriMet board needs to have the courage to say that. But who will do so when it’s so much easier to remain silent?

At its November 12 meeting, Metro’s Joint Policy Advisory Committee on Transportation (JPACT) adopted “performance targets” calling for a tripling of walking, biking, and transit use by 2035. This came despite the release of the Annual Portland Resident Survey conducted by the City Auditor, showing that levels of solo driving for commuters actually increased by 4.6% this year and that transit use dropped by 9%.

During a 20-minute discussion of performance targets covering such topics as climate change, clean air, and affordability, none of the committee members questioned the feasibility of tripling the mode share for walking, cycling, or transit. The committee appears to believe that if they collectively wave a magic wand, they can persuade people to change driving habits. Recent trends, however, suggest that this will be an expensive exercise in futility.

For instance, according to Metro, the daily levels of vehicle-miles-travelled (VMT) per person in the region have gone from 18.8 in 1990 to 20.0 in 2007. As the region continues to expand and more employers leave the central city for suburban locations, there is no reason to think daily VMT will decline.

Other data sources show similar trends. The Portland Auditor has been collecting citizen survey data regarding commute travel habits for the past 12 years, and the surveys show that in 1997 the private automobile was the primary means of travel for 82% of commuters in the city (71% driving solo, 9% carpooling, and 2% driving to a transit station). In 2009, 78% of commuters relied on driving (68% solo, 7% carpooling, and 3% driving to transit). This is a tiny drop in auto use, given that we opened four new light rail lines and a streetcar during those years, at a cost of over $2 billion.

Moreover, those are citywide averages. When the numbers are broken down by region, the survey shows that 92% of commuters in East Portland rely on driving, as do 86% of commuters in SW Portland.

Pure transit use in Portland (with no auto driving involved) has remained completely flat; it was 10% in 1997 and 10% in 2009. In TriMet’s strongest market (workers in the downtown core) transit use is actually declining. According to the annual business census reports published by the Portland Business Alliance, MAX/bus use dropped from 45% of commuters to 43% from 2001-2008, while the streetcar share was 1% or less in all years.

Metro, TriMet, and other local jurisdictions have bought the notion that expensive rail transit investments, coupled with severe zoning restrictions around transit stations to ensure high-density development, will dramatically increase transit use; but actual evidence shows that the strategy is not working.

For example, auto commuting at the commercial office building at the Beaverton Round is 90% of all commuting for that building. For the Orenco Gardens development south of light rail in Hillsboro, auto use is 80% of all commuting. At the Elmonica Court Apartments across the street from the light rail stop in Beaverton, 96% of commuters drive. All along the MAX system, from Gresham to Hillsboro and up to North Portland, one can find similar results by simply observing how people travel near MAX lines.

While bicycle commuting has gone up from 3% to 7% of all city commuters, it’s unlikely that this number will grow significantly. It actually hit 8% last year, and that may have been the high-water mark. Most people will find bicycle commuting impractical no matter how much money the city spends on bike lanes.

For instance, after the city took away two auto lanes of Holgate Boulevard in outer SE Portland last summer in order to create monster bike lanes, I went out there on three separate occasions to do counts. The weather was beautiful on all days, and I varied the times/days so that I chose a weekday mid-morning, a Sunday afternoon, and a Thursday morning at the peak hour. Of all vehicles observed, more than 98% were automobiles, and none of the cyclists turned into the new light rail station (the ostensible reason for creating this 30-block bike lane was to encouraging bike commuting to the new Green Max line).

Despite the fact that the regional strategies to reduce driving have failed, the earnest folks at JPACT are convinced that this time, the central planners will finally get it right! If the $2 billion we spent on rail transit caused no change in travel habits during the past decade, we’ll double down and build rail lines to Sherwood, Lake Oswego, Milwaukie, and Vancouver, while letting highway congestion get worse so as to force a few commuters onto the slow trains. Of course it will fail again, but a lot of planners will stay employed. Perhaps that’s the real goal.

Debunking Portland: The Public Transit Myth  by Randal O'Toole  This article appeared on TCSdaily.com on August 15, 2007. http://www.cato.org/publications/commentary/debunking-portland-public-transit-myth

The mayor of Milwaukee, Wisconsin, and a cadre of other top officials recently flew to Portland, Oregon, my hometown, to learn the wonders of the region's rail transit system. Portland's Mayor Tom Potter no doubt told them light rail was "a cornerstone of the city's success." Potter or former Portland city Commissioner Charles Hales probably bragged that the city's streetcar line "has sparked more than $2 billion in new developments."

Unless they had gone out of their way on their junket, the visiting dignitaries were unlikely to hear the other side of the story: Portland's public transit has done nothing to relieve the region's growing congestion; its high cost has sparked a taxpayer revolt; the developments along the rail lines were themselves heavily subsidized; and those subsidies led a crafty cabal of ex-politicians and developers to milk the system for their own gain.

How do Portland-area residents feel about local light-rail projects? They voted against raising taxes to build more light-rail in 1998. In 2002, they voted against a ballot measure increasing neighborhood densities — as transit-oriented developments do. In 2004, they supported a property-rights measure that challenged the very foundations of Oregon's land-use planning system. Planners have ignored all these votes and are building light rail with tax-increment financing and other hidden tax increases.

Randal O'Toole, who has spent most of his life in Portland, is a senior fellow with the Cato Institute and author of the recent paper, "Debunking Portland: The City That Doesn't Work." He currently lives in Bandon, Oregon.

Portlanders were especially upset when local papers revealed in 2004 that the region's planning had been manipulated by a "light-rail mafia," led by former Portland Mayor Neil Goldschmidt, that directed rail construction contracts and developer subsidies to an inside group of contractors and builders. Meanwhile, budgets for schools, fire, police, and public health have all been cut, as property taxes that would normally go to those services have been diverted to subsidies for rail transit and high-density developments.

Portland officials spend more than half the region's transportation funds on transit, but that doesn't mean Portlanders ride it. In fact, since Portland began building rail transit in the 1980s, transit's market share of commuting has actually declined from 9.8 percent to 7.6 percent, mainly because the high cost of rail in a few corridors forced the transit agency to reduce bus service in some parts of the region and prevented improvements in others.

Remember last year's high gas prices that led some transit agencies to record 15 to 20 percent gains in ridership? Oregon had some of the highest gas prices in the nation, yet Portland transit ridership only grew by 0.1 percent. So much for Portland being "the city that loves transit."

Light rail and streetcars may be cute, but they are S-L-O-W. Portland's fastest light-rail line averages 22 miles per hour. Portland's streetcar goes about 7 miles per hour. I am waiting to see a developer advertise, "If you lived here and rode transit home from work, you'd still be sitting on the train."

The developments supposedly stimulated by new light-rail and streetcar lines? They were built only after the region started handing out billions of dollars in subsidies after the transit lines were built.

When Portland opened its first light-rail line in 1986, the city immediately zoned the land near light-rail stations for high-density developments. A decade later, not a single transit-oriented development had been built in these areas.

To generate such developments, then-city Commissioner Charles Hales urged the city to offer property tax waivers, grants, and other subsidies to developers. "It is a myth to think that the market will take care of development along transit corridors," said Hales.

To date, Portland's subsidies have exceeded $1.5 billion, and its suburbs and other agencies in the region have provided even more. Hales neglects to mention this today because he now works for a consulting firm selling streetcars to other cities.

Among the subsidies, the city has sold parks, school playgrounds, and other lands at below-market prices to developers on the condition that they replace those open spaces with transit-oriented developments. So much for livability.

Portland has also learned that the so-called transit-oriented developments work only if they have plenty of parking. Though often located a few steps from light-rail stations, most of the people living in these developments still drive for most of their travel. That simply adds congestion to already crowded streets.

The question for Portland today is how voters can stop the light-rail mafia before it does any more damage. The question for officials visiting from Milwaukee and other cities is how they can avoid making the same mistakes as Portland. The answer is to look at Portland only as an example of how not to plan.

Comments:
The Portland truth is that billions of dollars has been squandered on light rail, heavy rail, bike lanes and public transit with grants from “green driven” federal grants that are now about to end.  Let’s not make the same mistake.  Public transit is not sustainable.  At a time we should be reducing government payrolls, public transit expands government payrolls.  All transit should be private. Look up Concept 3 Transit to see the same plans made for Atlanta Metro, if we don’t defeat this tax.  Go to TrafficTruth.net.   Vote NO on the transportation referendum on July 31st.

Norb Leahy,  Dunwoody GA Tea Party Leader 

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