APTA | Passenger Transport
May 7, 2010

In This Issue
» BREAKING NEWS
» NEWS HEADLINES
» EARTH DAY - TELLING OUR STORY
» COVERAGE OF 2010 BUS & PARATRANSIT CONFERENCE
» COMMENTARY
» AROUND THE INDUSTRY
» APTA NEWS
» PEOPLE ON THE MOVE



The classifieds in this issue include three chief executive officer positions!
COVERAGE OF 2010 BUS & PARATRANSIT CONFERENCE

Operators, Suppliers Consider the Tight Market
BY SARAH HOLLANDER, For Passenger Transport

Public transit riders know when their bus no longer shows up—but they might not know why.

Even in the best of times, most bus and rail riders don’t comprehend public transit financing, according to panelists at the May 5 closing session of the APTA Bus & Paratransit Conference in Cleveland.

“Many of the people we deal with simply don’t understand our business,” said Joseph A. Calabrese, chief executive officer of the Greater Cleveland Regional Transportation Authority (GCRTA). Now, with the tight economy on one hand and help from federal stimulus dollars on the other, educating transit users is even more challenging: for example, customers want to know why transit agencies are building new stations and buying shiny new buses while they’re cutting services and raising fares.

Communication is key, and not just with customers, but with the companies that sell products and services to the agencies. The public and private sectors need to work together more than ever to make it through these tough times, said Angela Iannuzziello, APTA vice chair-Canadian members and vice president of transit and transportation planning for GENIVAR.

Panelists shared some examples of how they’re coping with the economy and telling their stories to the community.

Community Transit in Snohomish County, WA, described its reliance on face-to-face meetings with city councils and business leaders, along with a YouTube video targeting the general public.

Many people don’t know that their fares pay only a portion of expenses, and that while federal money is available, it’s earmarked for specific projects, said Joyce Eleanor, the agency’s chief executive officer. “People, if they really listen, will understand,” she explained.

The Metropolitan Atlanta Rapid Transit Authority (MARTA) used a more graphic approach, painting temporary “X”s on buses whose service would be cut without federal funding remedies. The public “could see the full magnitude in black and white,” said Dwight Ferrell, chief operating officer and deputy general manager.

In Cleveland, GCRTA videotaped public meetings concerning service cuts and forwarded comments (“If I lose this service, I’ll lose my job...”) to elected officials.

Many agencies depend heavily on sales taxes, which are in free fall across the country, to cover their operating costs. Customers need to know this, said Doug Douglas, vice president of transit services for Dallas Area Rapid Transit.

The agencies also cited their efforts to lessen the blow by getting ahead of problems. MARTA reviewed outsourced jobs and brought some back in-house, while GCRTA examined overtime, use of company cars, and additional potential cost savings before announcing cuts.

Other agencies have started asking vendors for discounts—but APTA First Vice Chair Michael J. Scanlon, general manager and chief executive officer of the San Mateo County Transit District in San Carlos, CA, warned against putting too much emphasis on this strategy. “Business people are in deep trouble, too,” Scanlon pointed out. “This is not one-sided.”

Patrick Scully, chief commercial officer for Daimler Buses North America, suggested that agencies think long term. Companies may be willing to cut agencies some breaks now, with longer-term commitments providing some quid pro quo as a carrot.

Saundra Lautenberg, vice president of Trueform’s North American operations, urged agencies to remember the big picture. She explained that transit agencies should not scrimp on capital improvements—which are eligible for federal funding and can save money over time. She also reminded session participants to consider quality, not just upfront cost: “Cheapest is not always best.”

Transit agencies can help keep competition in play by paying their contractors promptly, said Lautenberg. “It’s very important to look at these times as a partnership,” she said. “Every time another business folds, you lose.”

With all the players tightening their belts, now is a good time to rethink the way transportation money is appropriated and to brainstorm about alternative financing opportunities, said David Turney, chairman and chief executive officer of DRI Corp.

In the meantime, panelists said they remain committed to providing clean and quality service.

“Despite all the doom and gloom, we still want to be better,” Ferrell said.

Calabrese suggested that transit agencies consider how they’ll shift gears and spread more positive news once the economy begins to improve. “I’ll be one of the biggest whiners and complainers you’ll ever see,” he said, “but we need to start thinking about an exit strategy. We’re still doing great things.”

 

 

The first panel at the closing General Session featured, from left, Michael J. Scanlon, Joseph A. Calabrese, Dwight Ferrell, Joyce Eleanor, and Doug Douglas.

Additional speakers during the May 5 closing session, “Dealing with the Downturn,” included, from left, Angela Iannuzziello, David Turney, Don Leidy of Maintenance Design Group, Patrick Scully, and Saundra Lautenberg.

 

 

 

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