Market Opportunity Analysis for Short-Range Public

211

NATIONAL COOPERATIVE HIGHWAY RESEARCH PROGRAM REPORT 211

MARKET OPPORTUNITY ANALYSIS FOR SHORT-RANGE PUBLIC TRANSPORTATION PLANNING GOALS AND POLICY DEVELOPMENT, INSTITUTIONAL CONSTRAINTS, AND ALTERNATIVE ORGANIZATIONAL ARRANGEMENTS

TRANSPORTATION RESEARCH BOARD NATIONAL RESEARCH COUNCIL TRANSPORTATION RESEARCH BOARD 1979

Officers PETER G. KOLTNOW, Chairman THOMAS D. MORELAND, Vice Chairman W. N. CAREY, JR., Executive Director

0 Executive Co,n,nit tee HENRIK E. STAFSETH, Executive Director, A,nerican Ass,,, of State Highway and Transportation Ofli cia/s (ex officio) LANGHORNE M. BOND, Federal Aviation Administrator, U.S. Department of Transportation (ex officio) KARL S. BOWERS, Federal Highway Administrator, U.S. Department of Transportation (ex officio) LILLIAN C. LIBURDI, Acting Urban Mass Transportation Deputy Administrator, U.S. Dept. of Transportation (ex officio) JOHN M. SULLIVAN, Federal Railroad Administrator, U.S. Department of Transportation (ex officio) ROBERT N. HUNTER, Chief Engineer, Missouri State Highway Department (ex officio, Past Chairman 1977) A. SCHEFFER LANG, Co,,s,,lta,,t, Washington, D.C. (ex officio, Past Chairman 1978) HOWARD L. GAUTHIER, Professor of Geography, Ohio State University (ex officio, MTRB liaison) LAWRENCE D. DAHMS, Executive Director, Metropolita,, Transportation Commissio,i, San Francisco Bay Area ARTHUR C. FORD, Assista,zt Vice President (Lo,,g-Range Plan,ii,ig), Delta Air Li,,es WILLIAM J. HARRIS, JR., Vice President (Res. and Test Dept.), Associatio,, of A,nerica,, Railroads ARTHUR J. HOLLAND, Mayo,', City of Tre,,ton, N.J. JACK KINSTLINGER, Executive Director, Colorado Department of Highways PETER G. KOLTNOW, President, Highway Users Federation for Safety and Mobility THOMAS J. LAMPHIER, President, Transportation Division, Burli,,gton Norther,,, l,zc. ROGER L. MALLAR, Com,,,issio,,er, Mai,,e Department of Transportation MARVIN L. MANHEIM, Professor of Civil Enginedritig, Massachusetts Institute of Technology DARRELL V MANNING, Director, Idaho Transportation Department ROBERTS. MICHAEL, Director of Aviation, City and Cot,,,:)' of Denver, Colorado THOMAS D. MORELAND, Co,,,missioner and State Highway Engineer, Georgia Department of Transportation DANIEL MURPHY, County Executive, Oakla,,d County, Michiga,, RICHARD S. PAGE, Ge,,eral Manager, Washingto,, (D.C.) Met,'opoliza,, Area Transit Authority PHILIP J. RINGO, President, ATE Manage,nent & Services Co. MARK D. ROBESON, Chairman, Fi,,a,,ce Com,ni,tee, Yellow Freight Syste,ns DOUGLAS N. SCHNEIDER, JR., Director, District of Columbia Department of Transportatioi, WILLIAM K. SMITH, Vice President (Transportation), General Mills JOHN R. TABS, Director, Mississippi State Highway Department JOHN P. WOODFORD, Director, Michigan Department of Transportation CHARLES V. WOOTAN, Director, Texas Tra,,sportatio,, Institute, Texas A&M University

NATIONAL COOPERATIVE HIGHWAY RESEARCH PROGRAM Transportatio,, Research Board Executive Com,,,ittee Subco,n,nittee for the NCHRP PETER G. KOLTNOW, Highway Users Federatio,, (Chairman) KARL S. BOWERS, U.S. Department of Transportation THOMAS D. MORELAND, Georgia Department of Tra,,sportatio,, A. SCHEFFER LANG, Consultant, Washington, D.C. HENRIK E. STAFSETH, A,,,er. Ass,,, of State Hwy. and Tra,zsp. Officials W. N. CAREY, JR., Transportation Research Board

Field of Transportation Plan,,i,,g Area of Forecasti,,g Project Pa,,el, B8-16

GEORGE E. GRAY, California Dept. of Trans. (Chairman) JOSEPH MA RGOLIN, George Washington University BERT ARRILLAGA, Urba,, Mass Transportatiot, Admit,. DANIEL ROOS, Massachusetts Institute of Technology THOMAS B. DEEN, Alan M. Voorhees & Associates, Inc. PAUL C. WATT, City of Pleasant Hill, Calif. HAROLD H. GEISSEN HEI M ER, Chicago Transit A uthority DONALD A. MORIN, Federal Highway Adn,inistratio,, CAROL A. KECK, New York State Dept. of Transportatio,, W. CAMPBELL GRAEUB, Tra,,sportatio,, Research Board NORMAN KRUMHOLZ, City of Clevela,,d, Ohio

Program Staff

KRIEGER W. HENDERSON, JR., Progra,n Director HARRY A. SMITH, Projects Engineer LOUIS M. MAcGREGOR, Ad,,,inistrative Engineer ROBERT E. SPICHER, Projects Engineer CRAWFORD F. JENCKS, Projects Engineer HERBERT P. ORLAND, Editor R. IAN KINGHAM, Projects Engineer HELEN MACK, Associate Editor ROBERT J. REILLY, Projects Engineer NOTICE

This report is one of a series of five emanating from NCHRP Project 8-16, "Guidelines for Public Transportation Levels of Service and Evaluation," as folio ws: NCHRP Report 208, "Market Opportunity Analysis for Short-Range Public Transportation Planning - Procedures for Evaluating Alternative Service Concepts." NCHRP Report 209, "Market Opportunity Analysis for Short-Range Public Transportation Planning - Transportation Services for the Transportation Disadvantaged." NCHRP Report 210, "Market Opportunity Analysis for Short-Range Public Transportation Planning - Economic, Energy, and Environmental Impacts." NCHRP Report 211, "Market Opportunity Analysis for Short-Range Public Transportation Planning - Goals and Policy Development, Institutional Con- straints, and Alternative Organizational Arrangements." NCHRP Report 212, "Market Opportunity Analysis for Short-Range Public Planning - Method and Demonstration." A full picture of the results of the project research requires all five reports. How they complement each other is shown in the diagram below and also is explained more fully in the Foreword of each report. Please note that the current mailing (October 1979) includes only the first four of these reports. Production and mailing of the fifth will be delayed until Spring of 1980. As a member of TRB in 1979 you will automatically receive Report 212 at the time it is published without further action on your part. We regret this inconvenience caused by circumstances beyond our control.

Policy Marketing Engineering

NCHRP Rpt. 211 NCHRP Rpt. 209 NCHRP Rpt. 208 Short-Range Transportation Transportation Services for the Procedures for Local Ooals and Policy Development Transportation Disadvantaged Selection and Cost Evaluation for Urban Communities of Alternative Public Trans- Institutional Issues Facing NCHRP Rpt. 212 portation Service Concepts Public Transportation A Market Opportunity Analysis Organization of a Public Approach to Short-Range NCHRP Rpt. 210 Transportation Market-Oriented Public Transportation Planning Economic, Energy, and Environ- Approach Methodology and Demonstration mental Impacts of Public of a Market Opportunity Analysis Transportation for Short-Range Public Transportation Planning NATIONAL COOPERATIVE HIGHWAY RESEARCH PROGRAM REPORT 211

MARKET OPPORTUNITY ANALYSIS FOR SHORT-RANGE PUBLIC TRANSPORTATION PLANNING GOALS AND POLICY DEVELOPMENT, INSTITUTIONAL CONSTRAINTS;: AND ALTERNATIVE ORGANIZATIONAL ARRANGEMENTS

D. W. CRAVENS, J. L. McGHEE, R. A. MUNDY, D. Q. WICKHAM, F. W. DAVIS, JR., G. E. BYRNE, K. W. HEATHINGTON, AND F. J. WEGMANN The University of Tennessee Knoxville, Tennessee

RESEARCH SPONSORED BY THE AMERICATJ ASSOCIATION OF STATE HIGHWAY AND TRANSPORTATION OFFICIALS IN COOPERATION WITH THE FEDERAL HIGHWAY ADMINISTRATION

AREAS OF INTEREST: PLANNING FINANCE (PUBLIC TRANSIT)

TRANSPORTATION RESEARCH BOARD NATIONAL RESEARCH COUNCIL WASHINGTON, D.C. OCTOBER 1979 NATIONAL COOPERATIVE HIGHWAY RESEARCH PROGRAM NCHRP Report 211

Project 8-16 FY '76 Systematic, well-designed research provides the most ef- ISSN 0077-5614 fective approach to the solution of many problems facing ISBN 0-309-03003-X highway administrators and engineers. Often, highway L. C. Catalog Card No. 79-67354 problems are of local interest and can best be studied by highway departments individually or in cooperation with their state universities and others. However, the accelerat- Price: $9.20 ing growth of highway transportation develops increasingly complex problems of wide interest to highway authorities. These problems are best studied through a coordinated program of cooperative research. In recognition of these needs, the highway administrators Notice of the American Association of State Highway and Trans- The project that is the subject of this report was a part of the portation Officials initiated in 1962 an objective national National Cooperative Highway Research Program conducted by the highway research program employing modern scientific Transportation Research Board with the approval of the Governing techniques. This program is supported on a continuing Board of the National Research Council, acting in behalf of the National Academy of Sciences. Such approval reflects the Governing basis by funds from participating member states of the Board's judgment that the program concerned is of national impor- Association and it receives the full cooperation and support tance and appropriate with respect to both the purposes and re- of the Federal Highway Administration, United States sources of the National Research Council. The members of the technical committee selected to monitor this Department of Transportation. project and to review this report were chosen for recognized The Transportation Research Board of the National Re- scholarly competence and with due consideration for the balance of disciplines appropriate to the project. The opinions and con- search Council was requested by the Association to admin- clusions expressed or implied are those of the research agency that ister the research program because of the Board's recog- performed the research, and, while they have been accepted as nized objectivity and understanding of modern research appropriate by the technical committee, they are not necessarily those of the Transportation Research Board, the National Research Coun- practices. The Board is uniquely suited for this purpose cil, the National Academy of Sciences, or the program sponsors. as: it maintains an extensive committee structure from Each report is reviewed and processed according to procedures which authorities on any highway transportation subject established and monitored by the Report Review Committee of the National Academy of Sciences. Distribution of the report is ap- may be drawn; it possesses avenues of communications and proved by the President of the Academy upon satisfactory comple- cooperation with federal, state, and local governmental tion of the review process. agencies, universities, and industry; its relationship to its The National Research Council is the principal operating agency of the National Academy of Sciences and the National Academy of parent organization, the National Academy of Sciences, a Engineering, serving government and other organizations. The private, nonprofit institution, is an insurance of objectivity; Transportation Research Board evolved from the 54-year-old High- way Research Board. The TRB incorporates all former HRB it maintains a full-time research correlation staff of special- activities but also performs additional functions under a broader ists in highway transportation matters to bring the findings scope involving all modes of transportation and the interactions of of research directly to those who are in a position to use transportation with society. them. The program is developed on the basis of research needs identified by chief administrators of the highway and transportation departments and by committees of AASHTO. Each year, specific areas of research needs to be included in the program are proposed to the Academy and the Board by the American Association of State Highway and Trans- portation Officials. Research projects to fulfill these needs are defined by the Board, and qualified research agencies are selected from those that have submitted proposals. Ad- ministration and surveillance of research contracts are Published reports of the -

responsibilities of the Academy and its Transportation NATIONAL COOPERATIVE HIGHWAY RESEARCH PROGRAM Research Board. The needs for highway research are many, and the National are available from: Cooperative Highway Research Program can make signifi- Transportation Research Board cant contributions to the solution of highway transportation National Academy of Sciences problems of mutual concern to many responsible groups. 2101 Constitution Avenue, N.W. The program, however, is intended to complement rather Washington, D.C. 20418 than to substitute for or duplicate other highway research programs. Printed in the United States of America.

This report will be of special interest to planners, engineers, marketers, managers, FOREWORD and decision-makers concerned with public transportation policy activities. Plan- ners responsible for coordinating goal/policy development activities in urban corn- By Staff munities will find helpful information. Public transportation officials and decision- Transport ation makers will find guidance on expanding/improving existing public transportation Research Board services through the broader use of existing and future private transportation providers. State and local planners and transit operators will find information on appropriate organizational arrangements for providing public transportation services.

Public transportation traditionally has been provided by fixed-route service financially supported through revenues from passengers. Reduced patronage, resulting primarily from increased use of the automobile plus higher operating costs, has caused growing deficits. Public concern about energy, environment, auto dependency, congestion, and the quality of urban living in general has obliged governments to underwrite these deficits in.most urban areas. The rising amounts of required public monies plus the successful operation of a wide range of services directed at more specialized market segments have posed questions concerning how much financial support is appropriate, what services are required, and how these services should be provided. Public officials need this information in order to establish appropriate public policies. Project 8-16 was initiated in order to develop a method to prvide public officials with the desired information and direction for local public transportation actions. The initial 12-month period of the project was spent conducting an in- depth analysis of present procedures and practices of the urban mass transit indus-' try. Included in this effort were research team visits to 18 urban areas within the United States. From this research process, a model (Fig. I) was developed depict- ing the necessary information and procedural steps required for the application of market opportunity analysis to the planning of short-range public transportation. As depicted in the model, the application of market opportunity analysis requires both direction from policy decision areas and data from an engineering data base. A full explanation of this model, its application, and potential value is presented in NCHRP Report 212, "Market Opportunity Analysis for Short-Range Public Trans- portation Plannng—Method and Demonstration." Four companion reports are concerned with the application of a market-oriented public transportation planning approach. These constitute a group of reports that bear the main title "Market Opportunity Analysis for Short-Range Public Transportation Planning," and are subtitled as follows: NCHRP Report 208, "Procedures for Evaluating Alternative Service Concepts"; NCHRP Report 209, "Transportation Services for the Trans- portation Disadvantaged"; NCHRP Report 210, "Economic, Energy, and Environ- mental Impacts"; and NCHRP Report 211, "Goals and Policy Development, Insti- tutional Constraints, and Alternative Organizational Arrangements." Obviously, all elements of the comprehensive planning model could not be addressed in one report. Thus, each report is aimed at one specific segment of the over-all model as shown in Fig. II for this report. Together, the reports provide comprehensive

Engineering Activities policy Activities Marketing Activities Service Design Data Base

iSelect Modes to Satisfy At-i Identity Local t)escrtpt Ion and Analysis Urban Area and tribute Preferences gross Transportation Coals of Alternative Transit Pppulation Analysis feasibility comparison and Object ives I Modes and evaluation of modes)

L—*(~ A Identify Demographic Select a population - B and/or Geographic Group for Segmentation Area to he Studied Study 1 Comparison of the Ability Alternative Transit IDesign of Alternative Transit I Isystems to Serve Specific I Modes to Satisfy Selected Market Segments Travel Patterns 99 . Evaluation of Service Describe Market (based upon goals and Segments objectives) Cost-Breakpoint Analysis of Alternative Transit Modes by Travel Patterns

intify Attribute I Preference Structure I of Selected Segments I Transit Operating Cuideline9 and Standards t,iing PoYDS10n5 .

Response to Transit Systems Institutional Considera- t ions: Integrate System Design regulatory problems with other Transportation organizational problems D Services funding alternatives other [implementation, Control, and Monitor Analyze. Environmental Analyze Capital Unit Costs and Community impact Operating Costs

Longitudinal Analysis of System Performance C c and Market Change

Figure 1. NCHRP Project 8-16 model—a mar let opportunity analysis approach to short-range public transportation planning. guidelines for public transportation officials covering the three primary activities described in the model—policy, marketing, and engineering (Fig. III). The present report, "Market Opportunity Analysis for Short-Range Public Transportation Planning—Goals and Policy Development, Institutional Constraints, and Alternative Organizational Arrangements," concerns the rationale and procedural steps necessary to develop workable goals for urban public transportation. Without such direction, little guidance is given to the decision-maker as to what markets to concentrate on and how to measure systemwide performance. The report addresses the task of determining goals and policies as well as the issues involved in preparing a goal/policy statement for public transportation in an urban community. The information developed should serve as a guide for planners responsible for coordinating goal/policy development activities in an urban community. This report also addresses critical institutional issues that transportation planners and decision-makers must face when attempting to provide new or improved public transportation services. Various federal, state, and local regulatory and institutional patterns have been developed for the provision of urban public transportation services. A thorough understanding of these issues is necessary in order to involve both public and private operators in the provision of public transportation services. A heavy emphasis on existing labor provisions in the supply of public

2olicy Activities

Identify Local Transportation C.oals and Objectives

Identify Demographic and/or Ceographic Area to he Studied

Figure 11. Relationship of report to project model. transportation services and the opportunities for new private and minority firms to begin public transportation services has been developed as an integral part of this report. The report provides information for which policy decisions can be made regarding appropriate organizational arrangements for providing public transportation services. A central concept stressed is that, with a market-oriented public transportation system management approach, the organizational structure must be tailored to the needs of the local area's needs and political environment.

Engineering Policy Marketing

NCHRP Rpt. 211 NCHRP Rpt. 209 NCHRP Rpt. 208 Short-Range Transportation Transportation Services for the Procedures for Local Coals and Policy Development Transportation Disadvantaged Selection and Cost Evaluation for Urban Communities of Alternative Public Trans- portation Service Concepts Institutional Issues Facing NCHRP Rpt. 212 Public Transportation A Market Opportunity Analysis Organization of a Public NCHRP Rpt. 210 Approach to Short-Range Economic, Energy, and Environ- Transportation Market-Oriented Public Transportation Planning mental Impacts of Public Approach Methodology and Demonstration Transportation of a Market Opportunity Analysis for Short-Range Public Transportation Planning

Figure III. NCHRP Project 8-16 reports.

CONTENTS

SUMMARY PART I 3 CHAPTER ONE Goals and Policy Development Public Transportation Mission/Goals Short-Range Public Transportation Goals and Policy De- velopment Process Development of the Goal/Policy Statement References Selected Bibliography

20 CHAPTER TWO InstitutiOnal Constraints Institutional Settings Within Which Various Methods of Public Transportation Services May Operate Labor Considerations in the Supply of Transportation Services Private Enterprise in Public Transportation Services References

41 CHAPTER THREE Alternative Organizational Arrangements Background Research Objectives Organizational Requirements for the Planning and Imple- mentation of Public Transportation Systems Manage- ment Improvements Alternative Organizational Structures for the Planning and Implementation of Short-Range Public Transportation Improvements Conclusions and Recommendations References PART II 63 APPENDIX A Collecting and Analyzing Existing Information

69 APPENDIX a Identifying and Selecting Participants for the Public Transportation Goals and Policy Development Process

83 APPENDIX C Collecting and Analyzing New Information

93 APPENDIX D Case Study of Goal/Policy Information Collec- tion and Analysis

115 APPENDIX E Goal/Policy Statement for Tn-County Metro- politan Transportation District of Oregon

118 APPENDIX F Insurance Services Office Opinion on Workmen's

Compensation Liability c 121 APPENDIX G Agreement Pursuant to Section 13(c) of the Ur- ban tsIass Transportation Act of 1964, as Amended 126 APPENDIX H Initiating Private Ventures 138 APPENDIX i Marketing and Business Strategy in a Private Transportation Service

143 APPENDIX j Financial Management of a Private Transporta- tion Service

145 APPENDIX IC Personnel Management in a Private Transporta- tion Service

151 APPENDIX L The Federal Context for Local Public Transpor- tation Planning and Implementation

158 APPENDIX M Actions to be Considered in a Transportation Systems Management Element

159 APPENDIX N Agency Responsibilities for Transportation

ACKNOWLEDGMENTS The research reported herein was performed under NCHRP Grace E. Byrne, Research Assistant, Transportation Center; Project 8-16 by The University of Tennessee Transportation Dr. Kenneth W. Heathington, Director, Transportation Center; Center. Drs. Ray A. Mundy and Kenneth W. Heathington were and Dr. Frederick J. Wegmann, Professor, Department of Civil the principal investigators. The authors of this report are Dr. Engineering. David W. Cravens, Professor, Department of Marketing and During the course of this research project many public and Transportation; Ms. Jerrie L. McGhee, Research Assistant, private transportation individuals, too numerous to mention, Transportation Center; Dr. Ray A. Mundy, Associate Director, were interviewed concerning their transportation services. Their Transportation Center; Dr. Douglas Q. Wickham, Associate assistance and cooperation in providing this information are Professor, College of Law; Dr. Frank W. Davis, Jr., Associate greatly appreciated. Professor, Department of Marketing and Transportation; Ms. MARKET OPPORTUNITY ANALYSIS FOR SHORT-RANGE PUBLIC TRANSPORTATION PLANNING GOALS AND POLICY DEVELOPMENT, INSTITUTIONAL CONSTRAINTS, AND ALTERNATIVE ORGANIZATIONAL ARRANGEMENTS

SUMMARY This report is a part of NCHRP Project 8-16, "Guidelines for Public Trans- portation Levels of Service and Evaluation," which is directed toward the development of, improved methodology for short-range public transportation planning in small- to medium-sized urban areas (50,000 to 500,000 population range). The purpose of this report is threefold:

To present a comprehensive approach to goal/policy development for use by, public transportation planners and others responsible for public policy determination. - To set forth the present state of the art of providing public transportation and its regulatory, labor, and other institutional issues. To analyze the efficacy of alternative service design approaches and organizational arrangements for market-oriented, public transportation systems management planning.

Goals and Policy Development

Developing workable goals for ipublic transportation involves four phases: (1) identify the types of goals and policies to be determined; (2) decide who will participate in goal development; (3) collect and analyze information; and (4) draft, coordinate, and approve the final goal/policy statement for use in short-range public transportation planning. The four stages are interrelated. Activities within each stage must be coordinated with those at all other stages. Various participant groups are involved. Each displays different preferences and expertise concerning public transportation. And some individual or group must be responsible for coordinating the over-all goal/policy development process. Each phase must be given careful consideration to ensure that public transportation will provide services that are actually needed in the most effective and efficient manner. Systematic goal development will avoid resource waste and service overlap. Development of the goal/policy statement is a major task. But to fail to establish the basic mission, purpose, and goals of public transportation leaves to chance the important task of coordinating services. The lack of a goals statement -will encourage management by crisis. Without proper leadership, citizens and lower level decision-makers find it hard to carry out an effective goal/policy procedure. Responsibility for goal/policy development must be assigned to someone with the appropriate level of power to carry out the process. Endorsements from top level officials will also strengthen the goal/policy statement.

Institutional Constraints Urban mass transportation in the United States today appears to be at a critical state in its development. Ten years of massive federal, state, and local aid have not brought significant increases in the over-all utilization of public mass transportation systems. In fact, 1975 census data indicate that the percentage of total trips taken by public transportation has continued to decline. The following report is aimed at: (1) eliminating some of the institutional, regulatory, and labor barriers; improving public transportation systems that appear to have a greater potential for attracting individuals away from the singularly driven automobile; and providing information that will aid decision-makers in the development of alternative organizational structures, regulatory methods, and evaluation procedures of future public transportation projects.

Alternative Organizational Arrangements This analysis addresses key issues that affect market-oriented public transportation systems management and the development of market-oriented public transportation service designs. These issues are as follows: The federal context within which public transportation systems management elements are to be developed. Political involvement and related issues that should be addressed in development of an organizational arrangement for short-range transportation planning that are relevant within the decision-making environment of a specific local area. Alternative organizational arrangements that currently exist or have been proposed for coordination of short-range transportation planning activities within a local area.

Concluding Note The findings in this report are based on many site visits to urban areas by the research team; a review of the literature concerning these topics; the personal ex- periences of the authors in the transportation field, personal correspondence and conversations with officials of the industry, and a pilot study involving planning, collecting, and analysis of information for use in goal/policy development. CHAPTER ONE

GOALS AND POLICY DEVELOPMENT

This chapter represents a comprehensive examination service alternatives should be considered? By addressing of the goals/policy determination process. It is developed such questions, a statement of goals and policies should within a framework of three major elements: be developed that explicitly defines the community's com- Participants in the process in roles of decision-makers, mitment to public transportation and, hence, its mission. professional planners, coordinators, and sources of opinions The task of establishing goals and policies to guide short- and preferences. range public transportation planning is becoming increas- Collection and analysis of information needed to guide ingly important in the nation's urban communities. Im- the formation of goals and policies and the priorities asso- provements in public transportation systems are viewed ciated with each, as attractive alternatives to long-range programs of trans- Development of the goal/policy statement for use portation system expansion. The construction of highways in planning and monitoring public transportation in the and rapid transit systems is often publicly opposed be- urban community. cause it is perceived to conflict with the community's environmental, economic, and soáial values. Major highway The following sections contain an overview of the stages construction is thought by many to increase dependence of the public transportation goal/policy development proc- on the automobile, thus contributing to environmental con- ess for urban communities. The planner is alerted to the cerns about pollution, noise, and depletion of natural re- various issues that should be resolved at each stage of the sources. Although rapid transit systems minimize many process. of these impacts, they are often too costly to construct Guidelines are offered for developing and presenting the and operate, especially for small- and medium-sized urban goal/policy statement to maximize its usefulness as a tool areas. These urban areas are most likely to seek increased for planning and evaluating public transportation services. system efficiency through less capital-intensive, short-range The goal/policy statement serves several purposes. It pro- public transportation improvements. For this reason, the vides specific guidelines for planning public transportation. following sections will present guidelines for public trans- It can give direction to market opportunity analysis by portation goal and policy development specifically ap- identifying key groups the community wishes to serve. plicable to small- and medium-sized urban areas (50,000 Operational goals and policies establish a basis for eval- to 500,000 population range). Goal/policy development, uating public transportation services including establish- as discussed here, is short-range—I to 5 years. Goal/ ment of new services and elimination of those that do not policy determination is a process that cannot be reduced meet cost/benefit guidelines. to a few simple steps or procedures. The task does not Detailed guidelines for collecting and analyzing goal/ lend itself to obtaining a solution through the use of policy information and for identifying and selecting partici- handbook tables or charts. Goal/policy development can pants in goal/policy development are contained in Appen- be facilitated by following a systematic process of the type dixes A, B, and C. A case study of goal/policy information presented in this report. Goal/policy development is a collection and analysis is provided in Appendix D. Ap- continuous process involving the establishment of goals and pendix E is the Goal/Policy Statement for Tn-County policies, monitoring progress, and making revisions as con- Metropolitan Transportation District of Oregon. ditions or priorities change over time. Although goal/policy development should follow a sys- PUBLIC TRANSPORTATION MISSION/GOALS tematic process, the task cannot be reduced to a simple set of step-by-step procedures and decision rules. Through Each urban community must define its public transpor- experience and further development it is anticipated that tation mission. The crux of the mission/goal task is de- the process recommended in this report will be further re- termining what the role and scope of public transportation fined and structured. is to be in the community. There is no one mission that The real value of the goal/policy statement lies in using is best. Rather, each community must decide what public it to guide public transportation planning in the com- transportation is intended to accomplish in terms of its munity. It should serve as the basic set of guidelines for market/service mix. Various questions must be addressed indicating what is (and is not) to be accomplished in the in establishing guidelines and boundaries within which community, and for assessing the extent of progress toward public transportation planning can be carried out. What desired results. importance does the community attach to providing public transportation services to citizen groups? How should public transportation be funded? What are the community's Need for Goal/Policy Guidelines priorities for allocating and distributing subsidies? What Federal planning regulations (1) recognize the importance of short-range urban transportation improve- moving toward a goal and achieving one or more specific ments to all urban areas. As a condition of the receipt objectives. The policy thus provides guidelines for action. of federal capital and operating funds, urban areas are A policy related to the above goal and objective examples, required to develop policy objectives to guide the selec- would be to hold down government pay increases during tion and evaluation of urban transportation program im- 1979 to a certain percentage level or less. Use of the provements. Consistent with this approach, public trans- policy guideline, of course, assumes it represents an action portation will be defined for this report to include all that will help to reduce inflation in the United States (goal) existing and potential transportation services offered on a and will contribute to holding down the inflation rate in public basis, including conventional transit, paratransit, the United States in 1979 to the same level as in 1978 bicycle facilities, and policies to increase the efficiency of (objective). highway facilities for high occupancy vehicles. The process and guidelines described in the report apply to those in- Issues in Goal Determination volved in developing transportation systems management The obvious deficiency of most public transportation (TSM) and transportation improvement program (TIP) goal/policy statements is their nonspecific nature. There components of the federal urban transportation planning is no way to satisfy all community interests and at the process. same time establish priorities that are useful guides to Competition for public funds has intensified in recent decision-making. In actuality, communities are composed years. There is a clear need to demonstrate to federal, of individuals and groups whose conception of the public state, and local interests that resources are being used effec- interest is biased toward their self interest. This is a tively and efficiently. At the highest level, the selection quality of human nature not to be frowned upon or ig- of specific public transportation programs should be based nored. It is this same self-interest that motivates people on the goal priorities of the community. Goals are expres- to be goal oriented and without which individual com- sions of community values and desires. To be useful guides munities would be static and unchanging. In this context, to decision-making, general goals must be translated into goal setting is a dynamic process with priorities repre- measurable objectives and further operationalized through senting the outcome of bargaining between competing the selection of implementing policies. Baker et at. (2, interests. This report details a goal/policy process that p. 13) describe the goal setting process and express the affords participants the opportunity to interact among reciprocal relationship between goal setting and resource themselves and with process coordinators. The outcome allocation: of the process is the generation of a goal/policy statement that is useful for planning and evaluation. Goal setting is essentially the identification and specification of the priority needs of the society. . . . Unless goals A key question is who should establish public transpor- are made explicit there is no way to allocate resources tation goals and policies? Planning and implementing re- rationally, nor is there any way to predict whether any sponsibilities are shared by officials representing many or- allocation decision will achieve the desired goal. Con- ganizations. Such fragmented institutional arrangements versely, no matter how well-defined a policy goal may be stated, unless the resources allocated to the chosen means inhibit efforts to coordinate the planning and provision of are sufficient, goal attainment is unlikely. services. There have been some attempts to specifically define the goal determination roles of these various or- Goals, Objectives, and Policies ganizations (3, 4). Elected officials are charged with representing and reflecting the values, needs, and goals of Because terms (goals, objectives, and policies) are used the electorate. Consistent with this ideology, recent federal both interchangeably and to designate different things, (1) describe a each, as used in this report, is briefly described in the urban transportation planning regulations process of cooperative community decision-making by following and examples are provided. An expanded dis- principal elected officials of local government. Public par- cussion is included later under the heading "Composition ticipation in some form is mandatory. However, other of the Goal! Policy Statement." government institutions have been delegated responsibility goal is a broad statement of what some individual, A for many policy decisions relative to public transportation group, organization, or unit in society wants to accomplish services. In recognition of their authority to establish during some long-range time span. Goals typically are policies that operationalize community goals, state and descriptive, qualitative in nature and may span several publicly owned operators of mass transportation services years. One of President Carter's goals is to reduce the also participate directly in the cooperative process. There rate of inflation in the United States. A goal serves as is some indication that states are wishing to increase their an umbrella under which more specific objectives and involvement by establishing statewide goals and policies policies are formulated. to facilitate urban public transportation development (5, An objective is more specific than a goal in that it indicates the more specific end of action. It indicates a measur- 6). Elected officials and those appointed to transportation able end to be achieved. Often included is a specific time agencies are advised by professional planning staffs. In period. An example of an objective would be to hold down many instances it will be the responsibility of planning inflation as measured by the consumer price index in 1979 professionals to coordinate cooperative goal/policy activi- to the 1978 level. Note that an objective states what you ties. According to Davidoff and Reiner (7, p. 108): want to do over a given time period. A policy states the course of action(s) to be used in It is not for the planner to make the final decision trans- forming values into policy commitments. His role is to EXISTING INFORMATION identify distribution of values among people, and how COLLECTION & ANALYSIS values are weighted against each other. To do this, the planner must determine relevant client groups. 1 DEFINE GOAL/POLICY AREAS A major portion of this report is devoted to the identification of these relevant client or participant groups and methodologies for obtaining their goal and policy priorities. IDENTIFY PARTICIPANTS IN DEVELOP PLAN FOR GOAL/POLICY DEVELOPMENT 4 - OBTAINING GOAL/POLICY PROCESS INFORMATION SHORT-RANGE PUBLIC TRANSPORTATION GOALS AND POLICY DEVELOPMENT PROCESS COLLECT AND ANALYZE GOAL/POLICY INFORMATION This section summarizes the stages of the short-range

public transportation goals and policy process and dis- a.- PROPOSE GOAL/PO LICY STATEMENT cusses the relationship of the different stages. Problems

and issues involved in implementing each stage are ex- REVIEW AND FINALIZE plored. The process has been developed to provide guide- GOAL/POLICY STATEMENT lines to individuals and organizations responsible for carrying out the short-range urban transportation planning L UTILIZE GOAL/POLICY* GUIDELINES FOR process. SNORT-RANGE PUBLIC TRANSPORTATION PLANNING In accordance with current federal guidelines, goal and Figure 1. Goal/policy development process for urban public policy determination is viewed as a cooperative process transportation. between principal elected representatives of community government, the metropolitan planning organization (MPO), mass transportation operating agencies, and the typically fall within general social, environmental, and eco- state department of transportation (1). An important part nomic categories. The task is to pinpoint the types of of the process involves organizing and encouraging citizen specific goal/policy guidelines that need to be developed participation activities to provide information and reaction for a given community. At this stage the major focus to these groups, because goals and policies must be re- should be on developing an operational framework for use sponsive to community needs. Since approval for specific in the goal/policy development process. The crux of this public transportation implementation projects must be operational framework is a specification of the questions granted by one or more of these decision-making bodies, requiring answers for use in the later stages of the process. it is appropriate that, acting through a forum provided by Participant identification and development of a plan for the MPO, they should share the responsibility for public obtaining information can proceed simultaneously. It is transportation goal and policy determination. important to specify the groups and individuals from whom Responsibility for coordinating the goal/policy develop- information will be obtained. Candidate groups include ment process should be designated to a specific organiza- elected and appointed officials, professional planners, citi- tion and to a particular individual ,within the organization. zen groups, citizens at large, and special interest groups Someone must see that information is assembled, analyzed, (e.g., environmentalists, Chamber of Commerce, etc.). and compiled for review by appropriate groups. Coordina- Both the roles and types of information solicited will vary tion between groups is necessary. The agency and position among participant groups. to which this responsibility is designated may vary from Appropriate methodologies will need to be developed one urban area to another. The reader is referred to the for obtaining goal/policy information from participants. report "Improving Public Transportation Systems Manage- Three major factors must be considered in developing the ment" (8) for recommendations concerning organizational plan for information collection: the sensitive nature of structure(s) for planning and implementation of short- certain areas of questioning (e.g., funding priorities); the range public transportation improvements. extent of familiarity of participant groups with certain areas Overview of the Goal/Policy Determination Process of questioning (e.g., how familiar will elected officials be with the transportation needs of different citizen groups?); The major stages of goal/policy determination are shown and resource constraints. in Figure 1. The process is initiated with the collection and Collection and analysis of goal/policy information should analysis of existing information that may be useful in provide a basis for proposing a goal/policy statement. The developing a goal/policy statement or revising an existing specific content of the statement will vary by community statement. Illustrative of the types of information that can but generally should correspond to the opportunities, prob- be collected are existing goal/policy information; past lems, and proposed mission of public transportation. This planning studies; and federal, state, and local regulatory initial statement provides goal/policy decision-makers with guidelines. Much of the information may be familiar to a basis for review and finalizing goal/policy guidelines for those responsible for guiding the goal development process. public transportation in the community. Nevertheless, it is important that a systematic review be The finalized goal/policy statement should be used to made of the information. guide short-range public transportation planning. Three In the next stage the relevant areas for goal/policy major areas where goal/policy guidelines will be helpful development should be identified. Specific goals/policies are in recommending modifications of institutional arrangements, in selecting population groups for special analysis Urban Transportation Planning Studies of transportation needs, and in evaluating existing public Studies that relate to one or more stages of the tradi- transportation services. Each stage of the goal/policy de- tional long-range urban transportation planning process velopment process is examined in the following. also provide useful information, such as inventories of land uses, population, travel patterns, and existing trans- Collection and Assimilation of Existing Goal and Policy portation facilities. The inventory has traditionally fur- information nished a data base helpful for evaluating existing travel Existing information is a useful base from which future demands and transportation performance. It has also pro- public transportation needs can be studied. Several cate- vided the basis for predicting demand and future system gories of information relevant to one or more stages of requirements at later stages of the process (i.e., trip gen- the process are available to decision-makers. Much of this eration, trip distribution, modal split, network assignment, information is generated by the decision-making group for evaluation). Often premised on the underlying assumption that travel behavior is repetitive and predictable, until re- purposes directly or indirectly related to goal and policy cently the process has not always been successful in incor- determination. Other information is available from external (15, 219). sources. Several important categories of existing informa- porating community goals and concerns p. tion that are useful inputs into the goals and policies process are discussed as follows. Federal Urban Transportation Planning Guidelines Advisory information on the development of the short- Metropolitan/Regional Goals and Policies range TSM element requirements, the joint regulations of the Federal Highway Administration (FHWA), and the Governments of many urban areas have developed com- Urban Mass Transportation Administration (UMTA) are prehensive sets of goals for a broad spectrum of community necessary input into the short-range public transportation concerns including health, transportation, land use, educa- goals and policy development process. In addition to speci- tion, recreation, welfare, and safety (9, 10, 11). Typically, fying the consideration of specific goal areas, guidelines the goals developed by many communities tend to be non- require that transportation planning be consistent with the controversial idealized statements, which, it is hoped, will metropolitan area's over-all land use, development, and provide direction to government decision-making. The (1). Implicit is the consistency generalized nature of such goals may limit their usefulness energy conservation goals that must exist between long- and short-range urban trans- as policy, guides, although they can be useful to decision- makers in positioning the role of transportation in the com- portation goals and policies. munity. For example, if transportation is viewed as a way Guidelines for collecting and analyzing existing infor- of promoting desirable land use or as a way of facilitating mation are presented in greater detail in Appendix A. the achievement of other community goals, it becomes a Because of limitations of time and opportunity, decision- question of weighing the potential contribution of public makers typically cannot seek access to all existing infor- transportation relative to other components of the urban mation worthy of consideration and must be selective transportation system. The range of metropolitan goal areas in their search for relevant data. Through the process and related policies will give insights into community prob- of collecting and assimilating information, gaps can be lems (e.g., urban sprawl, crime, energy conservation) which identified and eliminated when additional information is will affect public transportation goal and policy planning. collected later in the goal/policy development process. Many goals statements are based on the concerns of citizens. General agreement about the basic issues and prob- Defining Public Transportation Goal and Policy Areas lems facing the urban area facilitates discussion between in- On the basis of information acquired from numerous dividuals and groups and sets the stage for exploring public sources, it should be possible for public transportation de- transportation policy alternatives. cision-makers to define specific goal and policy areas for a community. Within each category, specific goal areas Studies of Special Transportation Needs would concern the particular areas of achievement that Many community governments, urban transportation are relevant to the community. Within the environmental agencies, and private groups have studied the special category, an example is defining the extent of community mobility needs of the elderly, the handicapped, the young, action with regard to pollution, energy conservation, traf- and the income disadvantaged (12, 13, 14). Information fic congestion, urban sprawl, and so on. Under the social concerning the extent of special citizens' needs and feasible goal category, the importance of satisfying public trans- system alternatives is invaluable as priorities for these portation needs of various citizen groups—elderly, low groups are considered. In one study, a survey of com- income, work commuters, etc.—would be potential goals. munity agencies provided information about a broad range Economic goals relate to the effectiveness and efficiency of of community services for special groups in the areas of public transportation systems. Specific goal areas includ- housing, transportation, education, and employment. The ing institutional arrangements for public transportation, objeôtive of the study was to influence local and state availability of obtainable resources, and the feasibility of decision-makers concerning the allocation of funds for system alternatives may strongly influence system effec- services to these groups (14). tiveness and efficiency. Major public transportation goal and policy areas and specific categories within each area overlap between specific policies. A policy of encouraging are shown in Figure 2. carpooling would contribute toward reducing several Federal guidelines specify consideration of social, eco- community impacts and also reduce the high cost of auto- nomic, and environmental effects, energy conservation, air mobile travel. These relationships are shown in Figure 3. quality requirements, system efficiency, urban development, Policies for implementing public transportation goals and utilization of facilities by the elderly and the handi- are of two types—community policies and public trans- capped (1). As goal areas are defined, it is important to portation agency policies. Community policy defines fund- begin to formulate specific policy alternatives. Subsequent ing priorities for public transportation relative to other information collection activities typically will generate public needs such as education and police/fire protection, additional ones. Federal guidelines specify that ". . . for- reflects preferred funding alternatives, makes explicit the mulation of an overall policy strategy, assessment of community's commitment to specific public transportation candidate measures, and selection, programming and im- services (e.g., transit, bicycles, taxis), and indicates sub- plementation of actions are clearly a local responsibility to sidy levels for specific citizen groups. Agency policies be carried out as part of a continuing transportation plan- should be linked to operational components, such as public ning and implementation process" (1, p. 42979). transportation service characteristics/improvements (e.g., Broad policy categories are included in the federal guide- express bus service, park and ride lots), pricing policy, lines for the consideration of the urban area along with routing/scheduling, and promotional activities. These specific policy alternatives. For example, the goal of policies are developed in accordance with broader financial reducing traffic congestion might involve a policy regarding and social objectives of the operating agencies. Both types the reduction of vehicle use in congested areas. This of policies should be as complementary as the process broadly stated policy could be implemented through the permits. adoption of one or more specific policies including the Because goals and policies are designed to cope with a encouragement of carpooling/vanpooling and/or the adop- broad range of social, economic, and environmental effects, tion of car-free zones. Another broad policy category for they may conflict. For example, the goal of energy con- reducing traffic congestion would be the improvement of servation may conflict with the goal of providing high traffic management. Decision-makers should explore nu- public transportation service levels to the transportation merous policies and their, relationships to specific goal disadvantaged, although both goals may gain wide support areas. Guidelines specify that all policy categories should among identical community interests. Trade-offs will occur be considered, and some alternatives within each category will be appropriate for a particular urbanized area (1). between such broadly stated goals as more specifically Certain policy categories may contribute to more than stated policy alternatives are considered. Selection of one goal area. For example, improvement of traffic man- policies should reduce the inherent conflict between goals. agement could also be expected to help meet the transpor- In the process of selecting specific policies, goal priorities tation needs of various citizen groups, notably commuters. are defined. The key to conflict resolution is examination As with broad policy categories, there may be considerable of the priorities and trade-offs associated with community

Work Folist Ion Co mmuters Energy S ties Congestio Low Eld ny Ha dicapped

Urban Low Cprml her

vironmental on1m0 SociaI 0t

IMPACTS ON THE TRANSPORTATION NEEDS C0OFJNITY OF VARIOUS CITIZEN GROUPS

Economic SYSTEM EFFECTIVENESS AND EFFICIENCY Institutiosal Other Arrangements Highway and PublIc Tronsportation Cents Feasible Systen Synten Alternatives Standards

Available or obtainable Resources Figure 2. Public transportation goal and policy areas. GOAL CATECORI E

COAL AREAS

POLICY AREAS

SPECS FIC POLICIES

Figure 3. Hierarchical relationships among goal categories, goal areas, policy categories, and specific policies. goals. The goal/policies process recommended in this tees and their advisory bodies are made up of decision- report is intended to facilitate conflict resolution. makers representing a variety of transportation interests. The mayor, city council and county commission are likely identifying Participants to be the most influential elected officials in the community. Elected officials make decisions relating to the level of Participants should represent the range of community local funding for public transportation, and their approval interests, although their actual policymaking powers will of federal grant applications is required. Appointed officials vary considerably. It is essential to include principal public are the policymaking authorities for agencies that plan and transportation decision-makers, such as local elected implement public transportation services. Professional officials, appointed officials representing the boards of trans- planning and executive staffs advise board members about portation and planning agencies, and the professional policy matters and are frequently responsible for develop- planning staffs representing these agencies. In addition, the ing short-range public transportation plans. It also is opinions of citizens representing both formal and informal important to distinguish public officials from other local organizations should be sought. Interviews with key public agencies and departments, such as public works, housing officials are important for identifying citizens' interests. A and urban development, and environmental protection guide to identifying and securing the cooperation of de- whose organizational goals and functions are affected by cision-makers and citizen groups who are likely to have the nature of community transportation services. public transportation decision-making responsibilities or The purpose of citizen participation is to make govern- who have opinions about public transportation goals and ment and agency decision-makers more responsive to the policies is contained in Appendix B. A summary of par- values and preferences of those they represent. It is ticipant roles is provided in Figure B-i. especially important to involve citizens in the initial goal Decisions as to the extent of inclusion of participants in and policy stages of public transportation planning in order goal/policy development are often influenced by time and to develop more community responsive plans and to resource constraints. Adequate representation of elected increase the likelihood of implementing these plans. More- officials, appointed officials, and professional transportation over, federal requirements for citizen participation in the and planning people represents a minimum group for urban transportation planning process call for urban areas formal participation. Based on the advice of these in- to ". . . include provisions to insure involvement of the dividuals, participation can be expanded based on judg- public . . ." and specify that no individual be excluded ment, experience, information needs, resources, and other from participation (1, p.42978). local considerations. Involvement of the public is called for by federal requirements. Selecting Appropriate Methodologies/Measures Principal public transportation decision-makers represent organizations with varying degrees of power relative to the Maintaining the cooperation of participants will depend, provision of community public transportation services. in part, on the appropriateness of the methodologies that Their influence varies according to their organizational are used for obtaining public transportation goal and policy association and their position within the organization. information. Preferably, participants should be directly Transportation policy and technical coordinating commit- involved in defining participation methodologies. In fact, 9

the more familiar they are with the entire process (see transportation goal and policy issues. In all dialogues with Fig. 1), the more likely they will be effective participants. respondents, public transportation goals should be asso- Since there are many variations among individuals and ciated with public transportation policy alternatives. Since groups as to the need to participate, methodologies would attempting to determine community values and goals in the have to vary according to the inputs required of partici- abstract is of questionable value, it is easier for people to pants. Not all goal areas are meaningful to all participants. arrive at a conclusion concerning specific policy alterna- For example, although institutional arrangements for pro- tives than to specify their underlying value and goal viding public transportation services are vital for efficient structures (17). Exploring the range of specific policy and effective programming, many citizens will not under- alternatives is more likely to sustain the interest of partici- stand how this area directly relates to their needs. pants, though the potential for conflict is greater. Dis- Special attempts should be made to ensure that the cussions of abstract or highly generalized goals are seldom methodologies selected will reach the actual participants viewed as immediate enough to cause individuals to seek for which they are targeted. For example, suppose a field representation. According to Altshuler (18, p. 309), survey seems appropriate for determining the view of the in no other public endeavor than general goal general public. A self-administered questionnaire might determination was the disproportion greater between the be developed for this purpose. However, the techniques numbers of groups that might reasonably become involved for its distribution (sampling) are crucial. If the question-. and the number that would...... Participants should be naire is printed in the local newspaper, participants will be encouraged to explore the consequences of policies that self-selected. The sample is likely to be biased in favor they have developed. As might be expected, some of the of well-informed, civic minded and educated citizens who most creative solutions to problems come from people who enjoy responding to newspaper surveys. The opinions of are directly affected by those problem situations. citizens who do not fit this narrow description would not Expressions of goal and policy preferences are apt to be be reflected in the survey results. Properly designed sample more valid when participants must make decisions based surveys (via home interviews, telephone, or mail) can on limited resources. The importance attached to goals obtain representative responses at reasonable cost! benefit under the assumption of unlimited resources is likely to be levels. different when actual constraints are applied. Specifying How participants prefer to interact with decision-makers constraints gives a more valid and precise indication of the must be considered when developing methodologies. Some relative importance attached to different goals. individuals, and perhaps most group representatives, may In some communities goals and policies will be developed prefer to interact directly with decision-makers through in close association with citizen participants in an extended such techniques as citizen advisory committees, neighbor- joint process of goal and policy determination. In other hood meetings, workshops, public hearings, and the like. instances, goal and policy information verified by individ- Other groups and individuals may prefer that the methodol- uals and groups for accuracy will be utilized by the prin- ogies call for indirect interaction with decision-makers, such cipal public transportation decision-makers (i.e., elected as responding to a survey. Possibly the greatest number officials, appointed officials, and professional planning of methodologies are of the direct type. The number of staff) to establish goal and policy priorities. In the former participants with whom it is possible to interact in a single situation, the direct decision-making power of citizen situation is limited, yet the methodological variations are participants is greater than in the latter situation, although so numerous that they can be easily tailored to the partici- it is the responsibility of the elected officials as citizen pants' needs and goal preferences. Indirect methodologies, representatives to reflect community opinions. such as surveys, also can be varied to some degree and, A systematic approach has been developed for collecting because they can be administered by others, have the information about the public transportation goal and policy potential of reaching large segments of the community with priorities of the principal decision-making groups in a a minimum expenditure of effort by decision-makers and community. A wide range of goal and policy areas was citizens. A very useful guide to citizen participation that studied in a pilot test of the approach in Jacksonville, Fla. classifies methodologies as direct or indirect is Effective The policy emphasis was political, although agency policy Citizen Participation in Transportation Planning (16). was also partially explored. A complete account of the study is contained in Appendix D. In the study, it was Collecting and Analyzing Goal/Policy Information assumed, because of resource constraints, that decision- Information collection and analysis should incorporate makers would respond with some degree of knowledge and two main elements—investigating the relevant issues and sensitivity about community needs that might otherwise aspects of goals and policies, and determining the similar- be revealed through citizen participation activities. The ities and variations between particular participant groups. approach used in this study can be adapted for use with Certain areas of study will be more important to some citizen groups. Both the elected official and the planner groups than others. Information collection and analysis as decision-makers claim a unique ability to make judg- planning must take these factors into account. An approach ments about the over-all public interest. The claims of for collecting and analyzing new goal and policy informa- elected officials rest on their popular election, their sen- tion is presented in Appendix C. sitivity to human needs, their personal wisdom, and their The major objective of information collection and analy- community knowledge. The planners' claims are based on sis is to obtain preferences and opinions toward public professionalism and research. Although the potential for 10 goal and policy conflicts exists, the assumption underlying groups with different concepts of the public interest must the ability of each to reflect community interests is not reach a common ground by bargaining. The goals of some necessarily conflicting (18, p. 303). groups require the adoption of policies that conflict with Assuming that a variety of information collection ap- the goals of other groups. In this view, only through the proaches is selected for different participant groups, the bargaining process can a balance between conflicting goals task of organizing and analyzing the data is not a simple and the policies to achieve these goals be reached. one. Decision-makers or their representatives will have Agency planners are more likely to win political accept- to organize the data from the sessions of verbal interactions ance for their ideas by adapting their arguments and among themselves and citizens, taking care that such ac- objectives to existing community values, attitudes, and counts do not reflect their individual biases. It would be customs (18). Yet, because public transportation goals helpful if these summaries could be returned to participants and policies must be specifically stated, the conflict poten- for comment and verification. Even when responses are tial still exists. Since numerous policy alternatives are assembled into a form in which they can be compared and considered, the resulting goals may not be consistent with analyzed, merely aggregating responses of all interests may each other. Nevertheless, according to Altshuler (18), not be desirable, because each may be affected to different dealing with goals separately from policies increases the degrees by public transpottation goals and policies. For opportunities for subsequent difficulties in the planning example, when the issue is public transportation for the process. elderly and the handicapped, one should not attach more Statements of goals and policies should be as specifically importance to the preferences of citizens obtained through stated as possible. A goal should be written to contain a random telephone survey than to the preferences obtained information that reduces to a minimum the range of via a social service symposium. probable policy alternatives and, yet, not be biased toward When the approach used calls for weighting various a particular policy. During the process of goal and policy group participant goals and policy preferences, there are review, it may be necessary to consider the feasibility of problems in deciding who should allocate individual and policies not previously considered. A specifically stated group weights and the criteria used for allocation. Assign- goal will provide decision-makers with a basis for reacting ment of weights can become a controversial issue in itself when confronted with such interim policy decisions. Goals because, even if made by a committee, it is a political should provide a basis for measuring goal achievement. decision that cannot be based entirely on objective factors The resulting policies that are adopted will serve as guide- (19). These and various other methodological issues are lines for developing and selecting public transportation discussed in Appendix C, where suggestions for improving programs. Specific policies will further operationalize the information collection and analysis process are pro- public transportation goals and will be the means by which vided. goal achievement is measured. A later section will examine the task of preparing the goal and policy statement. Proposing, Reviewing, and Finalizing the Goal/Policy Statement Utilizing Goal/Policy Guidelines for Short-Range Public Transportation Planning Using the goal and policy priorities generated by the methods previously described, decision-makers and, when Three important uses can be made of the public trans- feasible, citizens should review a draft of the goal/policy portation goal and policy statement: public transportation statement. Approval of the initial draft will depend on services can be evaluated on the basis of public opinion several factors. Because specific policies are an important about specific service characteristics, modifications of in- part of the process, the potential for diversity and conflict stitutional arrangements can be recommended to the ap- is greater than if goals remain at a highly abstract level. propriate authorities, and population groups can be iden- The narrowness or breadth of policy alternatives considered tified for analysis of their public transportation service in achieving each goal will also contribute to the degree needs. of approval of particular goal and policy areas. Decision- One of the most important outcomes from the generation makers and citizens have varying commitments to goal of a goal and policy statement is the selection of a popula- areas depending on personal interests and perceived im- tion group or groups for an in-depth market/system portance of the area. To some extent approval will reflect analysis. For example, if goals and policies place a high the flexibility of decision-makers and citizens to respond priority on providing public transportation to certain to views perceived to be more representative of community transportation disadvantaged groups or to the nonuser of preferences, but which conflict with personal views. public transportation, it is necessary to examine in depth When initial approval cannot be obtained, goal and policy the needs and preferences of the consumer-user groups in priorities will need to be adjusted until approval is finally order to determine whether their needs and preferences reached. Where views are diverse and strongly held, the can be met through specific public transportation programs interaction process may be a lengthy one, and there is and services. Should analysis reveal an inconsistency danger in allowing the statement to become too general so between the priorities of decision-makers and the needs and that agreement can be reached. In what is essentially a potential for satisfying a particular citizen group through political process, bargaining becomes very important. transportation services, then either another group would be According to Wheaton and Wheaton (20), individuals and selected for analysis or goal and policy priorities may need 11

to be adjusted. If inconsistency does not exist on the Public Transportation Goal / Policy Statements basis of the analysis and it is possible to meet many of the needs of the selected group within budgetary constraints, This section is concerned with the development of two a recommendation can be made to community government types of public transportation goal/policy statements—the and to the operating agencies that the goals and policies be cooperative goal/policy statement and the organizational implemented. goal/policy statement.

Concluding Note Cooperative Goal/Policy Statement

One of the most significant barriers to short-range public The cooperative public transportation goal/policy state- transportation goal and policy implementation is the frag- ment is the product of joint efforts of representatives of mentation of institutional responsibility in the development local government, the state government, local operators of and execution of public transportation plans and programs. public transportation services, and other relevant groups. Typically, decision-making power is distributed among It is comparable to the TSM element of the short-range different, sometimes competitive levels of government, urban transportation plan that must be developed by urban making it difficult to carry out coordinated, multimodal areas as a condition of the receipt of federal capital or operating funds planning. Coordination between highway and transit agen- (1). cies is particularly crucial in the implementation of public Consistent with this approach, public transportation is transportation programs. The highway planning process broadly interpreted to include all existing and potential with its allocation formulas, design standards, and staff transportation services offered on a public basis. This skills is intended to facilitate efficient and routine design of would encompass conventional mass transit, private and construction projects; yet, it may frustrate differentiation public paratransit services, bicycle facilities, as well as the of the highway product (e.g., pricing or preferential treat- related short-range modification of highway services affect- ment for high occupancy vehicles). Inflexibility of funding ing the use of high occupancy vehicles. The TSM element and long-standing client relationships developed between calls for the development of a statement of short-range highway agencies and local political and economic leader- goals, policy objectives, and actions (1). The purpose of ship groups also act to limit coordination of improve- the TSM element is to require urban areas to adopt policies ments (21). that improve the efficiency and productivity of the urban Periodically, every five years or so, the appropriateness transportation system. Various policy actions are offered of public transportation goals and policies should be reas- for the consideration of urban areas, but no policies or sessed. Environmental conditions, such as availability of efficiency standards are prescribed. These decisions are a resources, changing perception of community problems, product of the cooperative planning process. and the level of community affluence, cause changes to To place the cooperative public transportation goal/ occur in the importance attached to providing public trans- policy statement in perspective, it should be recognized portation services to particular citizen groups. The degree that the community may generate more than one goal/ of responsiveness to community problems also is affected policy statement. These can be arranged according to the by the changing environment. Short-range public trans- scope of concern and specificity, as shown in Figure 4. portation goals and policies should be responsive to changes Each statement should be consistent with those at higher that occur over relatively brief periods of time. and lower levels. The regional/metropolitan development goal/policy statement contains the guiding principles for many areas of public concern such as health, recreation, DEVELOPMENT OF THE GOAL/POLICY STATEMENT police protection, and education. A general statement of The following provides guidelines for the development transportation goals/policies would also be included in the of a public transportation goal/policy statement that is regional/metropolitan statement, linking transportation designed to guide decision-makers in the selection of with other regional development goals. specific plans and program alternatives. The series of At the next level there is a separate statement of trans- goals, objectives, and policies contained in the statement portation goals/policies. It is a comprehensive statement represents the product of an extended process of informa- encompassing various kinds of transportation services such tion gathering and analysis. as rail, air, water, highways, and public transportation. The guidelines presented can be used by the developers Typically long-range, the statement contains specific goals of the cooperative community goal/policy statement and by and objectives relating to each transportation service. The transportation/community organizations (e.g., transit au- following two statements (taken from 1975-1979 Metro- thority, city government, private suppliers) as they develop politan Atlanta Regional Improvements Program, Atlanta organizational goal/policy statements. The discussion and Regional Commission, adopted Apr. 23, 1975, p. 84) the illustrative examples represent a recommended ap- illustrate the difference in specificity at the two levels: proach to formulating a useful statement. Nevertheless, 1. Regional/metropolitan development level (long-range experimentation with alternative approaches is encouraged. goal): The objective is to contribute to the understanding of over- all requirements of goal/policy statements and to stimulate Orderly development of the region should be fostered by a balanced transportation system providing appropriate development of increasingly useful ones. levels of accessibility throughout the urban area. 12

be given to increasing internal management and operating Regional/Metropolitan Developnent efficiency. Controlling costs and operating within the framework of a budget represent constraints within which organizations must plan and offer services. For example, the transit agency is very conscious of required levels of Transportation funding needed to carry out social and environmental objectives. Within the statement of organizational goals/ Cooperative policies and/or within subdivisions such as marketing and Public Transportation finance, policies often relate to activities that increase revenue and management efficiency. Specific Public Policies of the organization typically are more specific Transportation than those included in the cooperative statement. This is ..Oraanizat ions especially true of the services that the organization has the authority to implement. For example, the transit authority establishes specific operating policies for its services (e.g., hours and frequency of service, shelters, fare structure). City! state governments may establish specific policies Figure 4. Hierarchical arrangement of goal/policy statements. relative to access to public transportation facilities and preferential treatment for high occupancy vehicles.

Benefits of the Cooperative Goal/Policy Statement 2. Transportation level (long-range objective): The cooperative goal/policy statement yields several positive benefits for the community as a whole and for Develop a transit system which will provide adequate service in terms of reliability, travel times and opportunities particular segments. If the statement has been publicly for those who by reason of age, poverty, physical handi- endorsed by the appropriate legislative bodies (i.e., mayor, caps, etc., cannot or do not drive. city council), the benefits are magnified. Such endorsement lends status to the statement and more clearly defines At the next level, a separate statement of metropolitan short-range public transportation goals, policies, and ob- it as public policy. jectives is developed that is consistent with the goals for transportation and land use formulated at higher levels. fin proves System Efficiency and Effectiveness Because actions should be implemented within a 1- to The statement provides the element of stability and 5-year period, specific objectives and policies would con- consistency in the planning of public transportation ser- centrate on improvements ". . . not including new trans- vices. It contains both the rationale and specific priorities portation facilities or major changes in existing facil- for planning services. If each proposed program or service ities...... (1, p. 42978). The latter would be the policy is evaluated according to its contribution to statement goals, focus of long-range transportation planning. The following wastefulness of resources is reduced and the community is is an example of a short-range objective: Reduce the num- closer to fulfilling its aims. ber of single-occupancy vehicles entering and leaving the central business district during peak traffic hours by 40 percent over a 3-year period. Evaluation Guide The objective is consistent with the previously mentioned The goal/policy statement can be used to evaluate the regional/metropolitan development goal of providing a effectiveness of current programs and services in moving "balanced transportation system." Of course, necessary the community toward the achievement of its public trans- facilities and system capabilities must be available to the portation objectives. Without the statement there would be extent that the objective is feasible. no way for planners to know the community's preferences and, thus, there would be no way for them to assess the Organizational Goal! Policy Statement effectiveness of services. An organizational goal/policy statement represents the The statement is also useful to citizens as they evaluate last level of the hierarchy. The guidelines are also appli- the "performance" of their elected representatives and cable to this statement. Organizations include those at the those appointed to carry out policies and programs. This suggests one reason why elected officials may be hesitant to state, regional/metropolitan, and submetropolitan levels. Transportation planning or operating organizations, as well endorse such a statement. Formal endorsement of the as legislative jurisdictions (e.g., cities, counties), are illus- statement typically occurs prior to the consideration of trative organizations. Where the organization is publicly project-level alternatives. However, it is at the project level owned or financed largely through public sources, statement where most disputes involving the public arise—too late goals, objectives, and policies would closely correspond to for redrafting the principles that guide such decisions. those expressed in the cooperative statement, particularly at From the official's point of view, it is advantageous to post- pone policy commitments until it is possible to assess public the general goal level. At the organizational level, a greater emphasis is likely to opinion toward transportation issues. 13

Serves a Coordinative Role Organizational statements are likely to work at cross purposes when there are numerous organizations and jurisdictions involved in the planning and implementation of a service. For example, the decision of a transit authority to reduce service on unprofitable routes may conflict with the desire of the planning agency to develop programs to increase service to a specific citizen group, and also with the interest of legislators representing citizens in discontinued service areas. A cooperative community statement serves a coordinative function by seeking to establish priorities that individual agencies can use in.their planning activities.

Provides Focus to Research Activity A cooperative goal/policy statement benefits the marketing and planning staffs of transportation agencies by providing a focus and purpose to research activities. For example, if the statement indicates a high priority for serving the citizen group with access to an automobile, appropriate research would explore the feasibility of meeting the group's transportation needs. In many instances, policy ideas must be tested for their feasibility although they have already received the approval of elected officials.

Communicates the Community's Public Transportation Mission The statement communicates the community's commitment to public transportation to those individuals/organizations concerned with various aspects of community development. For example, a knowledge of goals and policies An illustrative process for coordinating goal/policy might be of value to private interests evaluating the statement activities is shown in Figure 6. Responsibility for potential for providing additional transportation services. coordinating activities should be assigned to one participant Operating policies would be of particular interest to com- group or its designated representatives. One possibility is munity employers interested in the transportation needs of that the chief transportation planners for the MPO and their employees. Other government agencies and depart- their planning staff assume this responsibility. In most ments are interested in public transportation policies as instances, the MPO for an urban area is granted the they interface with or influence their own. The statement authority to carry out the urban transportation planning enables public and private interests to anticipate the deci- process and receives planning funds for this purpose. sions of transportation agencies/legislative bodies, thereby The first activity consists of preparing a draft of the providing an understanding of the environment in which goal/policy statement. As a preliminary step, the planning they must function. Perhaps most important in a demo- staff must synthesize information obtained from new and cratic society, government representatives are responsible existing sources. It is assumed that the collection of new for communicating the public transportation mission to information will eliminate important gaps in existing the community. knowledge for the explicit purpose of drafting a statement. The following information is particularly useful in the Coordination of Goal/Policy Statement Activities accomplishment of the activity: The development of a cooperative statement of goals Previous statements of goals/policies at all hierar- and policies is the product of a tripartite planning process. chical levels (i.e., current priorities). Principal local elected officials acting through the MPO, Current and projected levels of funding. state government, and operators of publicly supported Current public transportation services and levels of mass transportation services are responsible for developing operation (i.e., implementing policies). and approving the statement. The interrelationship between Financial status of operating agencies. the principal participants is shown in Figure 5. Because Surveys of citizens' transportation needs and attitudes elected officials may represent many separate jurisdictions toward services, financing, and community concerns. and interests, the possibility for lack of agreement among Goal studies of public officials—their priorities for MPO members is potentially greater than among other serving citizen groups, perceptions of community problems, participant groups. An objective of cooperative interaction types of services desired, institutional arrangements akld is to resolve these intragroup conflicts. the like. 14

attempts to gain a better understanding of goals and policies and, in doing so make it difficult to acquire the skills PREPARE DRAFT OF necessary to develop a functional statement. GOAL/POLICY STATEMENT A public transportation goal/policy statement represents a hierarchical ordering of ideas ranging from the general to the specific. As shown in Figure 7, goals, objectives, and policies are the components making up the statement. CIRCULATE DRAFT TO: Goal CITIZEN - . MPO Members PARTICIPATION . State Representatives A goal represents a value to be sought and is usually, Mass Transportation but not necessarily, expressed at a general or abstract level. Opera tors Goals may be identified in relation to community issues and problems and relate broadly to environmental, social, and economic conditions. For example, suppose that the FINALIZE STATEMENT results of a goals study of policymakers and selected citi- AND zen groups in a metropolitan community showed that the COMMUNICATE TO COMMUNITY priority for serving the elderly and the handicapped exceeded all other citizen groups. Concern was expressed that public transportation might be inaccessible to these Figure 6. An illtistrative process for coordinating goal/ citizens. Prior to this time, little attention had been given policy statement activities. to the special needs of this group. These factors led to the development of the following social goal: Increase the 7. Current community issues and problems receiving mobility of elderly and handicapped citizens. widespread treatment by media. Typically, the most general ideas occur at the highest level (goal), although occasionally objectives and policies Planners should identify areas of consensus and conflict, must also be stated in a general manner. A broad state- evaluate the relative ability of participants to influence ment of goals or aims serves to guide the development certain policy decisions, and generally acquire a feeling of more specific objectives and policies. Without this broad for the bargaining power of individuals and groups. As perspective, it is easy to become preoccupied with details planners prepare the draft, they must fully utilize the in- that may or may not move the community or agency in formation available to them. the direction it wishes to move. The statement draft is circulated to participants for In certain instances, goals are used to define more spe- their approval and endorsement. Lacking initial approval, cific ends. For example when the urban area has a well- subsequent drafts are modified according to the directives developed statement of regional/metropolitan and trans- of participants while still meeting statement requirements. portation goals, it may be unnecessary to state public After the statement has been approved and publicly en- transportation goals in the most general terms. Organiza- dorsed by participants, the statement coordinator com- tional goals are frequently stated more specifically. Finan- municates its contents to the general public for their con- cial goals relating to reduction of losses or increasing prof- sideration and evaluation. itability are often a logical starting point for developing an organizational statement. With the cooperative goal/ Composition of the Goal/Policy Statement policy statement as a guide, organizational goals can move Terms such as goals, objectives, policies, and criteria to a higher level of specificity as in the following goal are frequently used interchangeably. Similarly, when the from the transit authority in the same community: In- goal/policy statements for communities are compared, dif- crease the transit ridership of elderly and handicapped ferences are found in approach and specificity as well as citizens residing in suburban areas by 50 percent over a the expected uniqueness of content. Even more revealing 3-year period. are the inconsistencies within each statement. The devel- Because of its specificity, this goal has become synon- opment of goals/policies is often not well understood by ymous with an objective and in this form makes a separate those involved in the process. It would appear that the objective unnecessary. Of course, the 50 percent target usefulness of such statements eludes their developers. Per- must be realistic and indicative of what is intended. haps, this is why statements appear in so many forms. These statements have become, in many instances, a be- Objective nign exercise in fulfilling planning requirements but pro- Young (22) has made a useful distinction between a vide no guidance in important planning decisions. The goal and an objective. While the goal is a value to be fact that various labels (e.g., goals, objectives, policies) sought, it is not an end to be achieved. The objective, are attached to what appear to be equivalent items is not on the other hand, is capable of both attainment and necessarily crucial in arriving at a functional statement. measurement. In Young's view, the foregoing organiza- However, semantic discrepancies tend to be symptomatic tional goal would be termed an objective. The distinction of the difficulties communities/agencies encounter in for- is not crucial as long as ideas are presented in a specific, mulating useful statements. These discrepancies hamper measurable form at some point in their development. 15

The objective in the form of a standard is the most specific way of expressing a "measurable end." A standard specifies a particular desired level of a criterion that should not be undercut or exceeded (or both), depending on the situation (23, p. 97). Standards, so developed, are products of the community goals/policies process and are unrelated to industry standards that are sometimes recommended (24). The following statement is an illustration of the objective as a standard: Increase the public transportation ridership of elderly and handicapped citizens by Coal 30 percent over the next 5 years. The single criterion, "measurement," is percentage of Objectives ridership increase for the next 5 years for all community suppliers receiving public funds. The end is measurable; Policies that is, it is obtained by comparing the number of trips presently made by the handicapped and elderly (within Figure 7. Componenis of goal/policy statement. a specified period of time) to the number of trips made by this group at the end of a 5-year period (for an equivalent study period). Progress toward the objective can be assessed at intervals during the next 5 years. Other objectives might be formulated by community Door-to-door paratransit service for the elderly and the planners that relate to the general goal of increased mo- handicapped should be expanded throughout the urbanized bility for the elderly and the handicapped. Consider the area. following organizational objective: Provide convenient, A series of more specific policies or standards based on safe, and accessible public transportation services to the general policy would define the concept of expanded elderly and handicapped citizens in the urban area. service in terms of such criteria as trips per day, geo- Less specific than the previous example, this objective graphic coverage, and the like. is too general to be very useful for planning and evalua- In other instances, a policy may be a, simple indication tion. How do you know when it has been achieved? The of the community's support or nonsupport for an idea or criteria, "convenient, safe and accessible," must be more principle such as the following: Elderly and handicapped specifically defined through the policies that follow. (See citizens shall receive public transportation services equiva- App. E for examples of specific objectives.) lent to those available to other citizens. This type of policy is particularly appropriate when the implementation of the policy is contingent on factors Policy not under the direct authority of any single organization. If a goal is the aim of action and objectives are the The following illustration relates to the financing policy more specific ends of action, policies are the means or of our hypothetical community: Subject to the approval courses of action adopted in moving towards a goal or of the electorate, it is recommended that a local gasoline achieving objectives. Policies are developed for such areas tax increase be used to make improvements in existing as service characteristics, financing, traffic management, public transportation services for the benefit of elderly internal management efficiency, and utilization of road and handicapped citizens. space. It must be possible to translate a policy into a Suppose that the marketing department of a transit au- specific design proposal or recommendation, though poli- thority has decided to develop a series of policies that will cies themselves may be specific in many areas. increase transit ridership over a 3-year period. Table 1 As in the case of the objective, the policy in the form contains the policies that the department formulated. They of a standard is the most specific. For the transit agency cover a wide range of specificity, but each can be trans- in our hypothetical metropolitan community a policy of lated into a detailed plan or proposal. this type would be as follows: Equip all new buses with handrails, entry-step modifications, and improved lighting. Policy Objective These vehicle modifications are viewed as one means A community and/or agency may prefer to combine of increasing the ridership of the elderly and the handi- statements of objectives and policies. By more closely as- capped. In addition to vehicle modifications, other policies sociating the two, it may be easier to communicate to the could relate to operating characteristics (e.g., level of ser- public the link between ends and means. Advisory infor- vice, fare structure) of transit services and implementation mation on the development of the short-range transporta- of paratransit services. A policy standard related to fare tion systems management element specifies that ". . . the structure mandated by federal law is: Provide community plan should set forth the underlying goals and policy ob- public transportation services to elderly and handicapped jectives and the strategy selected to accomplish them . . citizens at one-half the regular fare of the service. (1, p. 42979). This format is more suitable for coopera- In some cases, it may be possible to translate a general tive community statements. It cannot accommodate the policy into a standard. Consider the following policy: detail that may be required for many agency implement- 16

TABLE 1 The task of meeting these requirements should not be insurmountable in the case of the short-range statement. ILLUSTRATIVE MARKETING DEPARTMENT OBJECTIVE AND IMPLEMENTING POLICIES Formulating objectives that describe a specified measurable end only 3 to 5 years hence is exceedingly easier to Objective accomplish than for a 20-year period. Of necessity, long- Todevelop marketing programs which will increase average weekday rider- range statements are general in character. ship by 30 percent over a tkree-year period.

Policies Challenging Design promotional programs which increase off-peah travel for weekday shopping and social/recreational trips by 15 percent. One requirement of a statement that is especially ap- Develop a staggered work hours and routing schedule for early norn- plicable at the organizational level is that it be challenging ing express bus service. to those charged with its implementation. In this way Sponsor a research study to determine the transportation needs of transit nononers. employee potential is being developed in such a way as

Eotend the office hours of the Public Information Office to coincide to increase the effectiveness and efficiency of the organiza- with later CBD shopping hours. tion. Setting organizational goals that require "reaching" Promote the use of parking space at shopping centers and church preserves the vitality of the organization (26). parking areas as iofornal park-and-ride lots. It may be useful to think of a challenging statement Support federal legislation calling for user subsidies to employees utilizing public transportation services for work-related trips. as representing a specific range on a continuum. At the lower end are statements that are so general and abstract that they do not motivate people to give their best effort. Employees are unable to see the relationship between ing policies. An illustration of this format is as follows: the work they do daily and organizational goals. Im- Reduce public transit system traffic-related accidents by portantly, increased effort may not be associated with re- 10 percent per 1,000 pasenger-miles of operation through wards, such as a salary increase or a better job assign- proper routing or rerouting on adequately designed streets ment. At the opposite end of the continuum are statements and by locating bus stops at points that minimize auto that set unrealistic performance levels. Objectives do not conflicts (25, p. 93). reflect a cognizance of external and internal constraints. More specific policies could be developed such as stan- There is the certain knowledge that failure is inevitable. dards for routing, but even at this level the policy com- The only question is its extent. Though the situation is ponent suggests the actions that should be taken to meet reversed, the effect on employee motivation is similar. the specifically defined objective. The plans would contain Challenging statements fall into the continuum between the specific design proposals, including a map showing the two extremes. The planner's important task is to locate new routes, routing changes and bus stop locations. that level of attainment that is beyond easy reach but not It is suggested that all items (i.e., objectives, policies) high enough to arouse feelings of skepticism and defeat. relating to a particular goal be grouped for purposes of communication. When a policy contributes towards the Conflict Reduction accomplishment of more than one objective, this should be noted and the policy listed wherever it is applicable. It is important that each separate component of the statement (e.g., goal, objective, policy) be related to those Requirements of Goal/Policy Statements broader or more specific components at higher and lower levels of the hierarchy. The closest association will be Goal/policy statements should be specific, represent chal- among the objectives and policies selected to carry out lenge, and lead to conflict reduction. Planners may adopt a particular goal. A minimum of conflict should occur any statement format as long as the informational content between the objectives and policies for different goals. meets these requirements. Recall that citizens in our hypothetical community placed a high priority on serving the transportation needs Specificity of the elderly and the handicapped. Anytime there is an at- Granger (26) argues that the debates on how specific tempt to serve any particular group constituting a minority a statement should be are not especially helpful. He sees of the citizens, it is likely to conflict with agency financial a need for both types—the general and the specific. If goals. To minimize losses or attain profitability objectives, the statement is to be a useful tool for measuring progress, the tendency is to reduce or eliminate services uniformly it is certainly much better to do so with percentages and on unprofitable service lines. However, reducing services a specified time frame. On the other hand, if estimates solely on this basis results in a fundamental conflict be- are based on guesswork rather than a realistic assessment tween goals reducing or negating many of the policies of the situation, they are meaningless. In the absence of a adopted in the behalf of citizen groups. Table 2 illustrates sound information base, qualitative measurements are how the Tn-County Metropolitan Transportation District likely to be more valid. The important point is that, in of Oregon (TRI-MET) chose to reduce the conflict be- order to fully operationalize the statement, there must be tween the perceived need to serve citizen groups and the enough specificity incorporated so that the statement in- need to maintain farebox revenues at a specified level. dicates certain types of implementing plans and programs, Through policies such as A-i, A-2, and A-3 of Table 2, and criteria to measure and control effectiveness. sensitivity to the needs of special groups is incorporated. 17

Approving the Cooperative Statement TABLE 2 After planners complete the initial draft of the state- TRI-MET FINANCIAL GOAL AND ment, it is circulated to MPO members, mass transit rep- RELATED POLICIES resentatives, state officials, and others for their review. Goal: Citizen participation may be incorporated at this stage. - Farebox revenues of the system as a whole must be maintained to cover 40 percent of operations cost as a minimum. Initial reaction may vary from unqualified approval or

approval with minor modifications to a call for major Policies:

revisions. It is likely that planners may be asked to make A. Lines shall be reviewed and shall not be maintained if revenue does not cover at least 20 percent of operations costs, with specific changes or suggest other alternatives at various the following eoceptioos:

points in the approval process. It is anticipated that there A-I. Transfer lines. will be bargaining between the groups and among group Lines with honored citizen riderohip eoceedimg 15 percent members. The approval of the elected representatives of of their total ridership. (Honored citizens are those persons over 65 yearn of age, persons legally blind, per- the MPO is especially important as their endorsement is sons registered disabled under the Hedirare program, persons eligible for suppleoental security benefits through essential for the receipt of local and federal funding sup- Oregon Welfare Division who are certified disabled by Ore- gonVocational Hehabilitation Division, and 100 percent port (unless the MPO is different from the A-95 review dinabled veterans.)

agency). In addition to formal adoption of the statement, Lines to areas with no other transit service and deemed public endorsement from elected officials is essential for needy areas by Hoard action because of low income population, low car ownership or similar factors. the realization of statement benefits. Their possible re- H. New service that has no potential for operating revenue of at luctance to make a public commitment has been noted least 30 percent of cost (e.g., might service, Sunday service, rural service) shall only be added when system revenue as a elsewhere in this report. Legislators may feel they can whole is more than 40 perèest of operations cost.

be more responsive to the public by waiting to see which C. In other words, new service with good ridership/revenoe potential shall be highest priority. However, new service may be plans and proposals arouse the strongest public sentiment. added,within the standards set forth here, if the system as a Elected officials should be reminded that the statement whole can absorb the increased level of loss and still stay at 40 percent of operations cost. gives them needed support when decisions must be made on controversial projects. By publicly endorsing the state- Source: TRI-MET Goals 1974-1979, Tn-County Metropolitan Transportation Dis- ment they have not abdicated their power to make plan- trict of Oregon, Portland, Oregon, Approved September 2, 1975. ning decisions at the lowest levels of administration. To depart from policy is not necessarily a breach of faith. The transit implementation, multimodal policies, transportation public should, however, be given an explanation of why financing, nonmotorized policies, transportation systems management, handicapped and elderly transportation ser- this has occurred. According to Beal (27, p. 339), ". . . if the community has foreclosed debate by rigidly adhering vices, energy, and air quality. Under these circumstances to a set of policies, they are lost before they start...... public transportation policies cannot be appropriately as- After adoption and endorsement of the statement, it sessed out of context from other supporting transportation policies. becomes the single most important guide to public transportation decision-making for each of the participating Separate organizational statements lend themselves better organizations. Statement coordinators should arrange for to analysis and duplication. One transit organization, the the statement to be made available to the public for review Tn-County Metropolitan Transportation District of Oregon and consideration. To assure its continued viability, the (TRI-MET), Portland, Ore., established a statement of statement should be reviewed annually and modified to 5-year transit goals and policy standards (31) that meets correspond to changing conditions. the general requirements for goal/policy statements outlined here (see App. E). Development of the goal/policy statement represents a Concluding Note major task. Several arguments can be cited against the The objective of this section has been to describe a preparation of a statement. These include lack of agree- process for developing the goal/policy statement. It is ment among public officials, uncertainty of future events recognized that many approaches and formats will fulfill (e.g., funding), misunderstanding by citizens, changing planning requirements. Of the several statements that were priorities among groups/individuals, and various other reviewed during the field visits associated with this project, concerns. Yet, to fail to establish the basic mission, pur- many were quite general and could benefit from further pose, and goals of public transportation for the community development along the lines discussed here. A few larger leaves to chance the important task of coordinating services. urban areas, such as San Diego (28, 29) and Atlanta (30), The lack of a goal statement will encourage management have established cooperative policy statements that are by crisis. Thus, any community that is serious about useful guides in planning services. Unfortunately, such improving public transportation needs to establish basie statements are not always easy to extract for study. It is guidelines for planning and coordinating this activity. The frequently the case that public transportation goals/policies nature, scope, and content of the goal statement will vary are interdispersed throughout a comprehensive urban trans- among communities. portation plan. For example, in the case of San Diego (29), there are numerous policy components making up the REFERENCES transportation plan. Several of these components contain I. Federal Register, Vol. 40, No. 181 (Sept. 17, 1975) public transportation policies including those related to pp. 42976-42981. 18

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Urban Planning. I. M. Robinson (Ed.), Sage Publica- DOUGLAS, W. S., "Public Transportation as Part of Total tions (1972) pp. 33-41. Urban Transportation." Traffic Quart., Vol. XXV, RUTHERFORD, G. S., SCHOFER, J. L., WACHS, M., and No.4 (Oct. 1971) pp. 551-561. SKUTSCH, M., "Goal Formulation for Socio-Technical DUEICER, K. J., and MCKELVEY, D. J., Toward Goals for Systems." Journal of the Urban Planning and Devel- Urban Transportation. Technical Report No. 20, opment Division, Proceedings of the American Society Center for Urban Transportation Studies, Institute of of Civil Engineers, Vol. 99, No. UP2 (Sept. 1973) Urban and Regional Research, Univ. of Iowa (July pp. 157-169. 1973). SCHOFER, J. L., and STUART, D. G., "Evaluating Regional ENGELEN, R. E., and STUART, D. G., "Development Objec- Plans and Community Impacts." Jortrnal of the Urban tives for Urban Transportation Systems." Traffic Planning and Development Division, Proceedings of Quart., Vol. XXIV, No. 2 (Apr. 1970) pp. 247-264. the American Society of Civil Engineers, Vol. 100, FRIEDMANN, J., "Performance Goals and Achievement No. UP! (Mar. 1974) pp. 93-109. Goals." Decision-Making in Urban Planning, I. M. SHORTREED, J. (Ed.), Urban Bus Transit-A Planning Robinson (Ed.), Sage Publications, 43-47. pp. Guide. The Transport Group, Department of Civil HANSON, E., An Evaluation of Policy Related Research on Engineering, University of Waterloo, Waterloo, On- Citizen Participation in Municipal Service Systems: tario, Can., 124-140. Transportation Planning. Citizen Participation in pp. SKUTSCH, M., and SCHOFER, J. L., "Goals-Deiphis for Municipal Service Systems Analysis Project, Mono- Urban Planning: Concepts in their Design." graph Number 9, Ann Arbor, Mich. (November Socio- Economic Planning Sciences, 1974). Vol. 7, No. 3 (June 1973) pp. 305-313. HILL, M., "A Goals-Achievement Matrix for Evaluating Alternative Plans." I. American Inst. of Planners, STEWART, T. R., and GELBERD, L., "Analysis of Judgment Vol. XXIV, No. 1 (Jan. 1968) pp. 19-29. Policy; A New Approach for Citizen Participation in HOWE, S. M., DONNELLY, E. P., and DESCRAMPS, J. A., Planning." I. American Inst. of Planners, Vol. 42, "Trade-Off Analysis: Theory and Application to No. 1 (Jan. 1976) pp. 33-41. Transportation Policy Planning." High Speed Trans- STUART, D. G., "Rational Urban Planning: Problems and portation J., Vol. 11, No. I (Spring 1977) pp. 93-109. Prospects." Examination Readings, American In- HUTCHINSON, B. G., Principles of Urban Transport Systems stitute of Planners, Washington, D.C. (Sept. 1973) Planning. Scripta Book Co. (1974). pp. 71-87. JOHNsON, N., and WARD, E., "Citizen Information Systems: THOMAS, E. N., and SCHOFER, J. L., "Strategies for the Using Technology to Extend the Dialogue between Evaluation of Alternative Transportation Plans." Citizens and their Government." Management NCHRP Report 96 (1970) pp. 39-43. Science, Vol. 19, No. 4 (Dec. 1972) pp. 21-34. Transportation Center, Knoxville Metropolitan Area Public JONES, P. S., "Citizen Participation in Westside Transpor- Transportation Study-Part I. University of Ten- tation Planning." Transportation Research Record nessee (June 1977). 528 (1974) pp. 1-8. "Transportation and Community Values." Highway Re- JOYNER, H. R., "Regional-Local Conflicts in Transportation search Board Special Report 105 (1969). Planning." Transportation Eng. J., Proceedings of the TUROFF, M., "The Design of a Policy Delphi." Techno- American Society of Civil Engineers, Vol. 98, No. TE3 logical Forecasting and Social Change, Vol. 2, No. 2 (Aug. 1972) pp. 515-519. (1970) pp. 149-171. KING, A. L., "Identifying Community Transportation Con- WACHS, M., "Editorial: Conflicting Goals in Transportation cerns." Traffic Quart., Vol. XXIX, No. 3 (July 1975) Planning." Transportation, Vol. 5, No. I (Mar. 1976) pp. 317-33 1. pp. 1-2. Knoxville-Knox County Metropolitan Planning Commis- WACHS, M., HUDSON, B. M., and SCHOFER, J. L., "Inte- sion, Community Attitudes on the Provision of Transit grating Localized and Systemwide Objectives in Trans- Services in Knoxville-Knox County. Knoxville, Tenn. portation Planning." Traffic Quart., Vol. 23, No. 1 (Dec. 1976). (Jan. 1969) pp. 133-156. MASON, J. B., and MOORE, C. T., "Development of Guides WEISS, D. L., "Citizen Opinions on Public Transportation 20

Roles, Service, and Financing." Transportation Re- WULKAN, A., "The Dade County Experience: A Model for search Record 590 (1976) pp. 5-8. Citizen Participation." Transit J., Vol. 2, No. 1 (Feb. WINSLOW, R. H., M. ASCE and Pfeffer, J. L., "Evaluation 1976) pp. 20-30. of New Systems for Urban Transportation." Trans- ZWERLING, S., Mass Transit and the Politics of Technology portation Eng. J., Vol. 98, No. TE4 (Nov. 1972) pp. —A Study of BART and the San Francisco Bay Area. 757-767. Praeger Publishers (1974).

CHAPTER TWO

INSTITUTIONAL CONSTRAINTS

INSTITUTIONAL SEUINGS WITHIN WHICH VARIOUS Most regulatory authorities control rates and levels of METHODS OF PUBLIC TRANSPORTATION service. This pattern also can be observed in most local taxi SERVICES MAY OPERATE ordinances, and it is derived directly from the practices of state and federal regulators. (Kirby et al. (3) identify four Public Posture Alternatives major facets of taxicab regulation: entry control, financial There are three major patterns for planning and opera- responsibility, service standards, and fares and charges.) tion of public transportation. Historically, public bodies Any changes in prevailing fare and service structures have viewed themselves as mere regulators of private enter- typically require costly and time-consuming hearings. At prises. However, during the past two decades a major the local level, fare and service patterns may be set by movement towards full public ownership and operation ordinance, and, thus, formal legislative action is required of transit systems has occurred. Most recently there is a to effect any change. growing interest in integrating various forms of paratransit The third "level of intensity" is achieved when the with the conventional modes. Lower cost forms of trans- transportation statutes and ordinances also contain specific portation, more adaptable to varying consumer desires, are barriers against entry into the field. The most common being tested, and some transportation decision-makers are mechanism is the requirement that a certificate of public seriously interested in adopting a broker/facilitator posture convenience be obtained before offering any service (e.g., to encourage their adoption. Chattanooga, Tenn., Code § 37-45, 48, 50; Jackson, Miss., Code § 28-106; St. Paul, Minn., Code § 152.02). All who Regulator of Private Enterprise seek certificates have the burden of proving a need for additional service. The laws or ordinances also may limit Public transportation has been viewed (as are most specifically the number of operators or vehicles. (Kirby utilities) as a series of natural monopolies that must be et al. (3, p. 77) identify New York, Chicago, Detroit, regulated in the public interest. This mode of thinking Baltimore, Milwaukee, San Francisco, Boston, Kansas City, dates to the time when electric railways provided most of Minneapolis, and Miami as cities with specific numerical the service along necessarily fixed routes. Because these limits.) private operations provided a critical public service, they Analysis of a typical taxicab ordinance reveals examples were required to serve an entire area, but, in turn, they were of all of these regulatory practices. In Columbia, S.C., all permitted to charge fares that would provide a proper rate taxicab operators must have the requisite business license, of return on their investment. Public regulatory agencies which can be obtained only when every vehicle passes were designed to protect the public from overreaching or inspection and the necessary insurance bond is posted discrimination by private operators (1, 2). (Columbia, S.C., Code §§ 32-32 to 33). Driver permits Such transportation regulation can operate at three are required, and the application process for them is very different "levels of intensity." The public interest can be detailed (Columbia, S.C., Code § 32-57 to 64). Rates served by requiring only that all providers of service comply are fixed, and no one can enter the field without a certificate with realistic safety and financial responsibility standards. of public convenience (Columbia, S.C., Code § 32-20 to Private market forces can then be left to determine supply 22). The ordinance specifically requires that any applicant and price of services. This pattern is seen today in an show need for additional service before being permitted to occasional local taxi ordinance, which is limited to safety operate (Columbia, S.C., Code § 32-21). The city author- regulation—but these are the rare exceptions. (The Frank- ity procedures are generally patterned after a state public fort, Ky., taxi ordinance Code §§ 5.20.010 to .060 state carefully who may drive, but require only that meters be service commission, which is, in turn, like a little Interstate used and rates be posted.) Commerce Commission. 21

Owner and Operator ture new, more flexible and innovative approaches to local public transportation needs, each of these statutes and Major infusions of federal capital and operating sub- regulatory patterns will be reviewed. sidies available to public bodies unintentionally have encouraged the trend to public ownership of local transit systems. (Legislative history clearly states Congressional Urban Mass Transit Administration desire to save public transportation as a private enterprise Legislation (4).) The major institutional choice facing the public body or regional authority in this situation has been whether to Transportation agencies receiving assistance under Urban operate and manage the system itself or to contract for Mass Transportation Administration (UMTA) programs private management. Even if there is some in-house exper- must comply with numerous restrictions stated directly in tise, real or imagined barriers against recognition of labor the statute. A uniform areawide planning process designed unions have caused many transit authorities to seek outside to ensure joint planning for both transit and highway management (5). Financial assistance from the federal facilities is now mandatory (49 U.S.C. § 1602 a(2)). Op- government is an essential part of any takeover package, portunity for hearings on environmental impact must be and federal law requires continuation of employee rights afforded and statements filed as a condition of assistance to bargain collectively (49 U.S.C. § 1609(c)). (49 U.S.C. § 1602(d), § 1610). Special planning and Whatever the management form, mounting transit facility design to accommodate the needs of handicapped deficits create an uneasy tension. There are large numbers and elderly citizens is required (49 U.S.C. § 1612). of captive riders who demand service, but there is an even Competition with existing private suppliers generally is larger populace of taxpaying private automobile owners/ forbidden (49 U.S.C. § 1602(e), § 1602a(a)), and there operators with whom public transportation subsidies are not are specific restrictions against using federal money to popular. Decision-makers in the publicly owned systems engage in charter operations outside the recipient's urban heretofore have tended to see only two alternatives—raise area (49 U.S.C. § 1602(f), § 1602a(b)) or to provide taxes or limit/abandon service. school bus service in competition with private operators (49 U.S.C. § 1602(g)). Anti sex-discrimination and Davis- Broker/Facilitator Bacon labor clauses are written into the law (49 U.S.C. § 1608(f); 49 U.S.C. § 1609(a)). Most notable is the There is a third public posture emerging within the 13(c) requirement protecting the status of unionized trans- transportation field. A municipality or regional transporta- portation labor in the recipient's area (49 U.S.C. § 1609 tion authority can organize itself as a broker/facilitator, (c)). Most recently added is a requirement that all grant viewing public transportation as a mix of services that can recipients utilize a uniform system of accounts and re- and should be tailored to meet the needs of various market porting (49 U.S.C. § 1611). segments within the over-all community. Instead of serving as a passive regulator, or as the operator of a monopoly, the Published Regulations transportation authority becomes more actively involved in encouraging a mix of services. Room is made both for the UMTA has implemented some of these legislative man- tightly controlled fixed-route transit service and for more dates by issuing formal regulations. There are several numerous and less regulated forms of private enterprise significant features in the chapter on charter bus operations to serve costly peak-hour commuting needs, low-density (49 C.F.R. Part 604). Recipients who derive over $15,000 areas, and some of the more specialized needs of elderly annual revenue from charter service must enter into an and handicapped citizens. Needs are identified and matched agreement regulating such service with the UMTA adminis- by an appropriately priced mode of service (6). For trator (49 C.F.R. § 604.2, 604.12). There must be public example, the authority might purchase or help finance van- hearings at which private operators cain voice their objec- pool equipment, identify the market, train and license tions to competition from the grant recipient (49 C.F.R. drivers, and provide other technical aid as needed. § 604.15, 604.17). Charter service may only be "inci- In order to assume this public posture, a local or dental" to the main fixed-route service. (The term "inci- regional transportation agency must be chartered creatively dental" is generally defined in terms of a Comptroller so as to have all the necessary authority. Steps also must General Opinion dated Dec. 7, 1966, issued because of be taken to ensure that newer forms of service (vanpools, questions over a San Diego grant application. The city shared-ride taxis, etc.) clearly are brought under exclusive sought funds to buy eight specially designed charter buses. local jurisdiction or otherwise specifically are exempted They received funds for regular buses on condition that from the rigidities of state public utility control. Local charter service be offered only to utilize vehicles on off- transportation brokers also must become attuned to the peak hours (49 C.F.R. Part 604 App. A).) The regula- possibility of using multiple fund sources. Although federal tions presume that certain weekday bus uses are not inci- human service programs differ in their eligibility rules, some dental, such as peak-hour charters, charters that travel progress is possible. Efficient use of both private and public over 50 miles beyond the urban area, and charters requiring resources is essential to a responsive local transportation bus use for more than 6 hours in a day (49 C.F.R. system. § 604.11). The agreement must contain a cost certification Many of the current trends in public transportation are accompanied by assurances that charter prices will be at the result of specific federal legislation. In order to struc- least equal to costs. Costs certified must include a vehicle 22 depreciation allowance and taxes, whether or not paid C.F.R. § 450.120). Regulations now require documenta- (49 C.F.R. § 604.3(b)). Some systems try to circumvent tion that the special efforts planned to help the elderly and this by offering charter service or school service that is also the handicapped are, in fact, being carried out before any "available to the general public," thus creating a "gray" grants are to be approved (49 C.F.R. § 613.202(c)). area of public transportation. UMTA advises that efforts to coordinate and consolidate Regulations concerning recipient school bus operations existing services for the elderly and the handicapped will very closely pattern the actual legislation. No school bus qualify as a special effort (49 C.F.R. Part 613 App. A). operation is permitted where there are existing private As will be detailed elsewhere, however, this is no small task. operators ready and able to give service (49 C.F.R. The most recently published regulations require a uni- § 605.14). Any fund recipient that directly operates a form system of accounting and reporting of all UMTA school system must operate a separate and exclusive school grant recipients. Depending on the size of the system (by bus service (49 C.F.R. § 605.11). There is also a grand- vehicle count), these regulations call for a detailed break- father clause permitting any recipient that was providing down within certain basic accounting categories (49 C.F.R. school bus service prior to August 13, 1973, to continue the Part 630). It is intended that these requirements not be too service (49 C.F.R. § 605.11). burdensome for small and medium sized systems. Indeed, The regulations concerning transportation for the elderly it may soon be possible to obtain some meaningful com- and the handicapped are concerned primarily with design parisons among systems from these reports. of new vehicles and facilities (49 C.F.R. §§ 609.13, .15, .17, .19). They have become very controversial because A dministrative Policies of their potential cost and are criticized as a misguided Administration of the urban mass transit program has effort to force a single mode of transit to serve all created unnecessary difficulties for localities that desire people (7). to provide transportation services by means other than Parts 609 and 613 of the regulations attempt to amplify traditional fixed-route transit. These difficulties stem partly the special planning effort for the elderly and the handi- from pressures on federal officials for strict accountability capped mandated by the Congress. Of particular note is and partly because of the facility orientation of most the appendix to Part 613, which provides three examples of planners and administrators in the field. Additional diffi- a "level of effort" that UMTA will approve: (1) expendi- culty stems from the fact that UMTA has not yet officially ture of 5 percent of Section 5 funds or an equivalent articulated its posture towards paratransit services. amount from other sources, (2) purchase of only wheel- The UMTA statute requires certification that any grant chair accessible vehicles until half the fleet is so equipped, recipient be capable of rendering the services contemplated or (3) a system of any design that will afford all semi- in the project (49 U.S.C. § 1602(a) (1) (A)). In theory, ambulatory or wheelchair-bound persons 10 round trips per this seems a sensible safeguard against waste of federal tax week at fares comparable to those charged on standard dollars. In practice, this requirement has hindered appli- buses. UMTA cautions that it will consider any system cants who desire to provide new forms of service because that will, in fact, satisfy the legislated "special efforts" UMTA officials tend not to certify any project if there are requirement and that all cases will be judged individually. unanswered legal questions. Particularly for those who However, it is equally clear that UMTA will not approve desire to engage in research and demonstration projects, projects for any recipient which is not, in fact, carrying advance identification of these problems is at best a slow out its planned special efforts. An effort by Cleveland, 0., process. Further delays are encountered while awaiting to provide special service has withstood litigation on statu- rulings or amendments to legislation so that the contem- tory and constitutional grounds (8). plated service can have an absolutely clear legal status. Regulations issued jointly by UMTA and the Federal A more serious impact is the facility orientation of most Highway Administration now mandate a unified trans- federal administrators. Detailed design specifications are portation planning process for receipt of both highway and required in proposals, and during the execution of a grant mass transportation funds (23 C.F.R. Part 450 and 49 it is very difficult to adjust in the face of changing con- C.F.R. Part 613). Projects are eligible for funding only ditions. Money that had been planned for fixed-route buses if they are present in the transportation improvement might be used in a more cost-effective manner by purchase program. Actual planning processes must be certified or subsidization of vans, yet the necessary federal approval annually by a responsible federal official to ensure that they for change takes months. Oversight is carried out presently are more than just paper exercises (23 C.F.R. § 450.122). by contract sections within UMTA, and the technical The regulations contemplate a metropolitan planning officers with the critical expertise do not have sufficient organization as a forum for cooperative decision-making authority to approve necessary modifications. The need to by the principal elected officials of general purpose local account for the whereabouts of federal tax money is governments. Both a short-range transportation systems acknowledged, but more flexible and efficient administrative management element and a long-range element now must postures are possible. Especially where subsidy of opera- be prepared. Specific factors that must be considered in tions is involved, it would seem better to define certain this planning process are energy conservation, consideration performance specifications and then leave some flexibility of existing private mass transportation services, coordina- for local management to respond to current needs. tion with air quality planning, and planning for the trans- Criticism recently has been leveled against UMTA for portation needs of the elderly and the handicapped (23 its protectionist attitude toward transit in administering 23

transportation aid programs (9). In a nation where 99 user restrictions, planning problems, franchise problems, percent of the vehicles are privately owned and operated, and other institutional barriers (14, pp. 29-34). it would seem that ways could be found for them to Legislation authorizing federal social service programs complement publicly owned mass transit. UMTA has generally is designed to prevent use of the services by any spearheaded a massive effort to improve the peak-hour but preselected target groups. Because of differences among capacity of existing transit systems, but has done little to these groups, it has proven exceedingly difficult to utilize a see that this high-cost peak capacity is used effectively common pool of vehicles to provide transportation within a during the rest of the working day. Comparatively little given geographic area. Age, income level, health or phys- attention has been given to effective integration of local ical condition, and area coverage are the categories among transportation services. (A prime example of this is seen in which anyone desiring to fund a single project must some- UMTA support of bus accessibility for the elderly and the how find some common ground. Without special effort at handicapped to the exclusion of more modest solutions the federal level to coordinate these requirements and to (10).) President Carter recently has emphasized the need loosen up the administration of the programs for localities to spend money more usefully in the transportation field that seek to provide or encourage unified service, there is (11), and it would seem that UMTA and other federal little hope of progress. In 1975, the Administration on the agencies might reevaluate their positions and seek to en- Aging (AOA) and the Department of Transportation courage efforts designed to utilize more efficiently the signed an agreement to cooperate and coordinate their privately owned vehicles already available for transporta- programs, but little visible progress can be noted so far. In tion purposes. his most recent testimony to Congress, AOA Commissioner UMTA took a tentative first step in this direction in Arthur Flemming could point to only eight such areas of October 1976 by publishing a proposed policy statement the counfry, while his "state of the art" report on trans- regarding paratransit services (12). Several uses were portation for the aging listed over 1500 separate trans- officially noted: feeder to conventional transit, more cost- portation related projects (16). effective service in areas where population density will not Traditional bureaucratic planning lines have not in- support conventional transit, and commuting from outlying cluded cooperation between transportation and social areas not served by transit. Unfortunately, the statement service agencies. Social service programs tend to focus on indicates an overly narrow view of paratransit's potential significant but specialized client needs, whereas transporta- role in commuting and an implicit decision to "preserve" tion agencies are generally concerned with the movement of transit from more cost-effective forms of ridesharing masses of people (primarily when commuting to work). competition. Present legislation and regulations now mandate special The policy statement does recognize a major institutional planning efforts to serve the needs of these groups that barrier. Outmoded regulatory patterns based on the exclu- really need specialized service, but it will take much time sive franchise concept often cause difficulty for potential and effort to break down barriers that are only now being providers of paratransit services. At best, a private entre- fully identified. preneur must run the gauntlet of utility-type regulation. Many who use specialized transportation services could UMTA does call for a reevaluation of these ideas. pay at least some of the costs. Providers have shied away The more important (and controversial) element in the from charging fares because this might draw them into the proposal is a clear statement that both Section 3 and 5 web of state-regulated transportation franchise. Common money can be used in the provision of paratransit services carriers, in a number of instances, successfully have com- by both publicly and privately owned transportation com- plained against human service programs or specialized panies. UMTA would only require that any assistance to a services that were encroaching on their operating authority private for-profit entity be channelled by contract through (14, p. 32). State and local regulatory laws have not a public agency or private nonprofit corporation. differentiated the special needs for which these transporta- The special transportation needs of elderly and handi- tion services are designed. capped citizens have become a major issue of the 1970s. Also, administrators are beginning to realize that Section There are numerous funding sources available for such 16(b)2 funds can be used to purchase equipment for use purposes under eight different federal agencies (13). by private transportation suppliers (thereby avoiding con- Efficient use of this money is inhibited seriously by over- flict) if done under contract to a nonprofit organization. lapping and conflicting program eligibility requirements. Ironically, large amounts of money can be spent under one For example, an inventory in Pinellas County, Fla., dis- federal program without sufficient consideration of non- closed 26 different projects with 40 vehicles (not counting program consequences. For example, during the first year the use of volunteer drivers) (14). Another instance often of the UMTA Section 16(b)2 program, over $20 million cited in Congressional hearings is the testimony by the was specifically committed to numerous private, nonprofit President of the Sanford, N.C., United Fund who noted that groups to aid the capital costs of providing these specialized services. At the same time, UMTA continued to press it was not uncommon for multiproblem families to have public transit bodies in the same geographic areas to different members ride separate vehicles to similar destina- provide the same specialized services. There was little tions because of the crazy-quilt eligibility restrictions (15). or no coordination between these efforts nor any attempt to A recent report by a subcommittee of the House Select minimize the fragmenting effect of such grants. Private taxi Committee on the Aging noted these major problem areas: operations were forced to bring suit against these operations 24 in order to prevent bankruptcy in several areas of the that single-car carpools would be treated as multicar country. Only lately have those who administer the 16(b)2 carpools so long as they remained on a shared-expense program required assurances that existing public or private basis (Revenue Ruling 55-555). The owner/driver's re- operators cannot provide the service that the nonprofit ceipts would not be considered income, but his expenses would not qualify as business deductions. The ruling group proposes (14, pp. 33-34). There is still little attention paid to the fact that operating costs of such programs specifically limited itself to the shared-expense situation are a source of need for continuing and reliable funding. stating that it would "not apply where the driver has It does little good to buy new vehicles without supporting established a trade or business from which a profit is the organizations and labor necessary to operate them on a derived." A second guideline may be derived from the Internal Revenue Service's consistent treatment of company sustained basis. cars used for private purposes. The employee receives income, and expenes are deductible only if attributable to Other Federal Laws and Policies business use (19). Interstate Commerce Commission The vanpool driver who receives free parking and The Interstate Commerce Commission has limited juris- administrative aid and is permitted to keep the fares of the diction in local transportation, but most important com- last two or three passengers falls somewhere between these muting areas contain intercity links and some involve precedents. He is not really in business for profit, and the multistate standard metropolitan statistical areas. Present incentives are not likely to entice him to work for the legislation defines nonprivate carriage in a way which po- particular employer. If the employee/driver is deemed to tentially includes many shared-ride services (49 U.S.C. be in business, he will receive income, and some business § 303(a)(14) and (15)). During World War lithe Com- deductions will become available. In no event may his mission took the position that it would not seek to regulate individual commuting expense be deducted. (The tax code shared-expense forms of carpooling, but there are no recent is quite clear that this is a personal expense. Whether the actions that would further clarify its jurisdictional attitude distance is short or long makes no difference (20).) Strict towards new forms of ridesharing (17). There is no real enforcement of tax theory in this area is not likely to yield need to subject these forms of service to federal economic a net revenue increase; so these questions may remain regulation. Financial responsibility could be required with- unanswered. The City of Knoxville requested a tax ruling out equating them with common carriers and their higher on this question in Fall 1977. The Internal Revenue standard of tort liability and insurance cost. Present safety Service indicated that it could not make a ruling at that regulations are geared to intercity buses, and there is a time because of pending legislation. need to set standards tailored to ridesharing vehicles now in use. General Services Administration The General Services Administration follows a number Fair Labor Standards Act of policies, which taken together, may prevent the United The Fair Labor Standards (Wage and Hour) Act or- States from making cost-effective managerial decisions on dinarily does not apply to commuting activities of em- issues of employee parking. Parking standards require ployees. However, where the employer provides the acquisition of large amounts of property to surround new transportation or subsidizes vanpooling, the applicability office facilities. This is funded from capital budgets, while of the Act becomes a potential issue. In 1976 and 1977, motor pool operations are funded out of operating budgets. at the request of concerned employers, the Department of Government managers cannot readily compare the cost of Labor issued a series of rulings limiting and clarifying the providing ridesharing aid or vehicles with the cost of applicability of the Act. The latest ruling was issued by the acquiring and maintaining evermore expensive parking lots. Secretary of Labor on July 29, 1977. The ruling (18) stated: Energy Policy In the case of a vanpooling plan sponsored by a group of employers, it will be deemed that a voluntary relationship Energy conservation and environmental agencies do not exists between the drivers and the third-party operator now take into account the newer forms of ridesharing. The under the following conditions: multiperson van which provides commuting service should Participation by drivers and riders is voluntary;. be properly recognized by these agencies as they formulate The drivers engage in only one round trip per work- the necessary policies for the petroleum scarce future. It ing day between work and home; There is no cost to the driver; and may be possible to credit firms that encourage employee All maintenance and upkeep of the vans is performed ridesharing (and thus reduce emissions) with points that by employees of the operator during the day when the might go towards construction permits for new facilities. vehicles are idle and not by any of the drivers. "Gas-guzzler" taxes may be quite unfair to the 12-passenger This ruling clarifies the applicability of the Act to com- van used for ridesharing purposes. Energy allocation muter vanpooling. schemes should consider paratransit as well as conventional transit. (For example, the 1977 Energy Act imposes a Internal Revenue Service "gas-guzzler" tax on autos and vans. The fact that a Employer-aided vanpool operations pose some interesting vanpool arrangement may actually save energy is not tax questions for the drivers. A 1955 revenue ruling held taken into account (21).) 25

State Legislation and Regulation sharing of expenses and provides someone with a profit comes within the statutory definition of carrier and thus Regulation by Administrative Agency could be subject to administrative regulation. Recent State transportation regulation is premised on the theory studies indicate that exemption from state utility-type that those carriers serving the public must be protected regulation greatly facilitates effective provision of shared- from competitors and regulated in the public interest. ride vanpool services (24). The additional costs imposed Providers of transportation service are usually categorized by regulation do not appear to benefit either suppliers or as common or contract carriers, depending on whether consumers of such services. The emerging trend of statu- they serve the public at large or only certain predefined tory exemption is, therefore, highly desirable. segments (22). Several states have more complicated carrier classification schemes (e.g., New York and New State Departments of Transportation Jersey define numerous subclasses, each with its own level of regulatory requirements (23)), but all of them are There has been a distinct trend in state government subject to regulation by a state-level administrative body. towards the creation of executive departments having jurisdiction over both highway and nonhighway transportation To be subject to this regulatory regime means that one modes. This in large part is a response to similar reorga- must obtain permission to provide a new transportation nization at the federal level. The potential for utilizing service. There are costly application and hearing processes such departments as catalysts to diversify and revitalize that may take weeks or months. Potential competitors local transportation services has gone largely unnoticed may add greatly to the time and cost by opposing the and unused. Most state departments of transportation application. Rates to be charged are controlled and in (DOT) are organized to provide planning service and grant theory designed to yield an acceptable rate of return on application review for local transportation matters. Federal invested capital. Service once begun cannot be abandoned grant programs now tend to be organized so that the state as unprofitable without permission of a normally reluctant coordinates application for and dispersal .of much of the regulator. There are safety and financial responsibility available money. The legislation chartering the typical standards that must be met. A number of privately owned transit systems are subject to state regulation, but this state DOT authorizes such activity and may indeed ex- jurisdiction is often delegated to the local level. Publicly pressly limit its power to such functions (e.g., Iowa Code owned systems almost universally are regulated at the Annotated, § 307.25; Tennessee Code Annotated, § 13- local level. 1702; compare Oregon Revised Statutes, 184.700, which confers operating authority on the State Transportation Until very recently, paratransit services had to make do Department). within this traditional regulatory pattern. Services operating within the jurisdiction of a municipal or areawide authority Large municipalities may be able to plan, regulate, and will be exempt from state regulation. A number of drafting operate their own transportation systems with minimal approaches are encountered in these statutory exemptions. technical aid from the state; but smaller municipalities and Perhaps most common are exemptions for service provided rural governments ordinarily will not have in-house capa- within the incorporated limits of a municipality (e.g., bility to initiate and operate needed services. Under Georgia Code Annotated, § 68-702(c); Code of Virginia, UMTA legislation, states as well as localities can be grant recipients (49 U.S.C. § 1602(a) 1). It would seem in many § 56-27401)). To this may be added an area of up to 10 miles or a "commercial zone" as defined by the state cases more efficient to assemble the necessary expertise at regulatory commission (e.g., Florida Statutes Annotated, state level for utilization wherever it is needed and desired. § 323.02(3); Mississippi Code Annotated, § 77-7-9(1); If local authorities are slow to grasp present day transportation service opportunities, a state DOT can and should General Statutes of North Carolina, § 62-260(a) (8); exercise some leadership. These newer organizations can Michigan Compiled Laws Annotated, § 479.2(a); Code enter the field unencumbered by the traditions and proce- Laws of South Carolina, § 58-1501(1) and (2)). A review dures of state regulatory bureaucracies. of representative legislation reveals a variety of specific exemptions for paratransit services. Some human service vehicles are exempt (Oregon Revised Statutes, § 767.035; State Enabling Authority for Local Transportation Agencies Code of Virginia, § 56-274(15)); some statutes exempt All states have legislation that generally authorizes vehicles carrying workers to industrial plants (Mississippi cooperative transportation efforts by groups of local level Code Annotated, § 77-7-9(a); Code of Laws of South governments or that specifically creates local or regional Carolina, § 58-1501 (4); Code of Virginia, § 56-274(5)). transportation authorities. Sometimes, the legislature sim- Most recently encountered are a number of specific exemp- ply creates an agency for a particular area within the state tions designed to release vanpooling and ridesharing and gives it an operating charter (1967 North Carolina operations from commission jurisdiction (Code of Virginia, Session Laws, Chapter 1259, creating the Winston-Salem § 56-274(10); Oregon Revised Statutes, § 767.035(11); Authority; California has numerous such authority acts, Tennessee Code Annotated, § 65-1503). see West Public Utilities Codes). Sometimes authority to State regulators have not been aggressive in seeking to regulate and operate transportation services simply is regulate ridesharing or vanpooling operations unless delegated to cities and counties (Tennessee Code Anno- prodded by a licensed common carrier who fears the com- tated, 6-3801 et seq.; General Statutes of North Carolina, petition. Any such operation which goes beyond the § 153A-274 et seq.). Many states have legislation that 26 allows any number of governments in an area to com- At common law, the act of commuting to and from work bine and form a transportation authority (Florida Stat- is considered beyond the scope of the job, and employers utes Annotated, § 163.565 et seq.; Kentucky Revised ordinarily are not held liable for negligent conduct by Statutes Annotated, § 163.565 et seq.; Kentucky Re- commuting employees. The courts, however, occasionally vised Statutes Annotated, § 96A.010 et seq.). Regulatory have distinguished a case in which the driver was found and operating authority within the local or area jurisdiction to be specifically furthering the purpose of the employer, is delegated in all such statutes so that local authorities need thus establishing vicarious liability. (There are many cases not be restricted by state public service commission pat- in which the general principles have been applied. They are terns. One encounters a tremendous variety of organiza- collected at 52 A.L.R. 2d 287 (employee vehicle) and 52 tional forms and political controls, but most transportation A.L.R. 2d 350 (employer vehicle). The fact that the authorities are empowered to provide service by whatever employer owns the vehicle does not of itself change the modes they choose and to set fares and safety standards liability situation.) There are no cases in point either way, accordingly. but it is remotely possible that a court could seize upon the fact that an employer encouraged or aided the em- Ridesharing—Tort Liability and Insurance Coverage Issues ployee ridesharing program and hold the employee driver Drivers of shared-ride vehicles and employers who en- to be within the scope of employment. courage ridesharing programs are legitimately concerned The common law long ago developed the "fellow with their exposure to liability from an accident involving servant" doctrine to shield employers from liability for such vehicles. The standard of care applied to the drivers injury caused to one employee by another. The theory was will affect their exposure and thus their insurance costs. that all who went to work were considered to have The key question to the employer is whether the driving is mutually assumed the normal risks of injury through the within the scope of employment. Should an accident carelessness of fellow employees. It was largely in response involve injury to a large number of passengers (10 to 15), to this doctrine that states began to pass Workmen's liability limits in the typical driver's insurance policy would Compensation Acts (Larson Workman's Compensation Treatise, H 5.20 and 5.30). These statutes, although be a cause of concern. So long as the drivers of shared-ride vehicles do not hold they vary in their language and interpretation, basically themselves out as serving the general public, they will not provide a standard of employer liability for injuries to be considered common carriers. Although they may fall workers occurring within their scope of employment. within regulatory categories such as contract carrier, the Whether injuries occurring to passenger/employees in common law standard of highest care applied to common an employer sponsored ridesharing vehicle would come carriers will not be applied in any accidents to which they within the coverage of workmen's compensation laws is an may be a party. (The generally accepted definition of com- issue for which there is no single answer. (Cases are col- mon carrier was well stated by the court in Utah PUC v. lected at 21 A.L.R. 3d 845. In a number of states, the statute s silent concerning suit against fellow employees, Nelson, 238 P. 237 (1925): "Running through the cases is a recognition of the dominant element of public service, and this contributes to the confusion.) Commuting to serving and carrying all persons indifferently who apply for and from work ordinarily is not covered, but there are a number of cases and statutes that take a different view when passage ..... The case of Lazar v. Banas, 134A.817 (Pennsylvania, 1925) is instructive. Driver carried his own the employer furnishes the transportation. An opinion of and several other children to school. Court below applied counsel for the Insurance Services Office summarizes the common carrier liability standard and was reversed. Duty authorities state by state (see App. F). of ordinary care applies to special contract carriage.) There are numerous state "owner liability" statutes that Riders in a shared-ride vehicle are owed only the duty of purport to make the owner of a vehicle liable for the con- ordinary care by the driver of that vehicle—the same duct of all who drive with the owner's permission (see 7 standard that is owed drivers and passengers in other American Jurisprudence 2d § 109). Although there are vehicles on the same roadway. There is no special standard no cases directly in point, this form of statutory liability of conduct that would affect the insurance coverage and easily could include the drivers of employer-owned shared- rates of that driver. ride vehicles. So long as the vehicles are carried as part of Many states have so-called guest statutes that severely the employer's "commercial fleet," insurance costs should limit the ability of a passenger to sue the driver by imposing remain reasonable. liability only for conduct that amounts to recklessness or Under the fault concept of tort liability, the driver of a gross negligence. Passengers in a shared-ride auto or van vehicle whose negligence causes injury must compensate the probably will not qualify as guests of the driver because victim. In practice, the driver's insurance may be the only ridesharing is a continuous relationship and because the asset to which the injured party may look. Shared-ride van driver is compensated (see cases collected at 10 A.L.R. 3d passengers may have a problem whichever driver may be 1087; at least 15 states have so held). Guest statutes cur- at fault (assuming no workmen's compensation coverage). rently are not favored and gradually are being replaced or If the driver of the other vehicle is at fault, the typical low- declared unconstitutional by state courts (e.g., Brown v. limit policy will not cover the unanticipated high number of Merlo 8 California 3d 855, 66 A.L.R. 3d 505 (1973); see claims. Unless some sort of uninsured or underinsured "The Present Status of Automobile Guest Statutes," 59 motorist coverage is available under the passenger's own Cornell Law Review 659 (1974); so this potential limitation family policy, passengers must consider purchase of first- of driver liability will diminish in importance. person accident insurance to cover their exposure (25). 27

Where the driver of a multipassenger van is at fault, the length bargaining produces very few situations in which passengers must hope that the driver has very high policy local governments voluntarily shoulder agreed portions of limits purchased at a reasonable cost. There has been the loss. great initial resistance towards insuring the driver of such One structural form occasionally encountered is making a van because of this concentration of liability problem. use of existing regional planning agencies such as develop- Large companies were the only owners with sufficient ment districts or councils of governments (COG). There leverage to buy at reasonable rates. Private policies were are instances where voluntary federations of governments difficult to obtain. After much effort and discussion, the have successfully undertaken direct provision of particular Insurance Services Office has filed a set of recommended public services, but few such agencies have matured to rating categories that should result in the availability of the point of being able to take on such operational respon- reasonable cost insurance for drivers of shared-ride vans sibilities. (For example, the North Central Texas (Dallas- (25, pp. 37-40). Ft. Worth) COG operates a regional police training academy with a budget of over half a million dollars (29).) Institutional Patterns at the Local Level Because COGs are based on voluntary membership, they are not well suited to resolve unpleasant issues. Provision Given that plenary power to provide and regulate transportation is commonly delegated to localities, it is not sur- of transportation services necessarily involves hard financial prising to encounter a great variety of institutional patterns. choices, and COGs do not carry the political authority to There are a number of organizational forms through which make them. The same conditions that make interlocal transportation agreements very difficult to reach are likely local governments may choose to provide or regulate service. Far more important, however, is the creative use of to prevent a COG from successfully operating a transportation system. delegated power. Cooperation between the private and public sectors has great potential at the local level. Design Because of the nonelective nature of these bodies, there of appropriate institutional arrangements for this coopera- is a significant constitutional limitation on their ability to tion should be a matter of great concern to local officials. assume coercive governmental powers. As COGs acquire operating powers, they may cross the line between special Common Organizational Patterns and general purpose government at which point the Equal Protection Clause of the 14th Amendment requires that Legislation enabling local governments to cooperate in- their governing board be chosen by vote—either at large formally for the purpose of providing transportation ser- or from districts with substantially equal population. vices usually permits them to formalize those relationships (Avery v. Midland County, 390 U.S. 474 (1968) is the into interlocal contracts (e.g., General Statutes of North seminal case. Since then the Court has undertaken defini- Carolina, § 160A-460 et seq.; Michigan Compiled Laws, tion of the line between general and special purpose gov- § 124.501 et seq.). The United States Advisory Commis- ernment. Hadley v. Junior College District, 397 U.S. 50 sion on Intergovernmental Relations (ACIR) has recom- (1970) and Salyer v. Tulare Water District, 410 U.S. 719 mended model legislation that would both authorize and (1973).) It is fair to say that utilization of a COG to control this phenomenon of intergovernmental contracting provide areawide transportation services probably will not for the provision of goods and services; but the control transform it into a general purpose government; but addi- mechanisms in the ACIR legislation are so elaborate that tion of service operations will at some point call into play they stand a fair chance of inhibiting the cooperation they the constitutional protections accorded to voters. authorize (26). If necessary, state legislation' authorizing It is clear that recent legislative activity in the transit field such ventures in the transportation field easily can be has centered on the creation of areawide authorities. drafted; and passage would not be controversial. Typical enabling laws authorize control over all movement There is a school of thought that considers this con- of passengers for hire (e.g., Florida Statutes Annotated, tractual response to areawide urban problems economically § 163.566 (8); Oregon Revised Statutes, § 267.010 (3)). superior to the creation of areawide governmental juris- In most cases there is no limitation on the numbers of local dictions. Its conclusions are based on models in which a jurisdictions that may combine, and the necessary authority fragmented set of local governments purchase public to cross state lines may be added. Some transit authorities services under market forces similar to those in the private in addition can license and control all other forms of public sector. It is asserted that interlocal combinations and con- transportation within their area jurisdiction (Tennessee tracts will respond to these market forces and yield an Code Annotated, § 6-3802). They are empowered to optimum level of service provision in the over-all area (27). condemn any necessary property including that of an One difficulty in applying such models to real-life situations existing privately owned transportation system (Michigan is that there are not likely to be many suppliers of public Compiled Laws, § 124.406(d)), and they may have inde- goods and services able to extend effective service into new pendent bonding authority not subject to statutory ceilings markets. This form of intergovernmental cooperation has (Kentucky Revised Statutes, § 96A.120(2)). Many are had its most notable successes in areas where such suppliers now given specific authority to enter into 13(c) agreements exist. (For example, Los Angeles County is the major and to bargain collectively with employees. If employees supplier of public service to the numerous suburban com- do not have the right to strike, all parties usually are munities. It is not, however, in the transportation business required to submit disputes to binding arbitration (Minne- (28), Because of conventional transit's large deficits, arms sota Statutes, § 473A.04(8) and § 473A.10). Financial 28 support beyond the fare-box often is dependent upon the organizations, groups of transportation deprived, etc. Such area governments, because few authorities are given inde- a group should have the opportunity to hear and react to pendent taxing power. (Exceptions are found in the legis- any proposals, but care must be taken to avoid giving them lation creating the Twin Cities (Minnesota) Metropolitan an effective veto on final decisions. (Altshuler and Curry Transit Commission; § 473A.11 and § 473A.26(2) author- comment on the increasing ability of vocal opposition to izing a levy for a van purchase revolving fund.) stymie planned developments (31)). The responsibility for The move to a unified department of transportation type action must remain with elected officials who should have organization in government is beginning to spread to the the benefit of advice from a third component—an executive local level. From a 1976 survey of about 20 cities that are committee of officials in city and county government with known to have this organizational form, no distinct pattern major transportation responsibilities. yet emerges (30). It is possible to organize such a depart- The critical initial issue is to work out the roles of city ment functionally (streets, traffic and parking, transit, air- traffic and transit officials and the area planning commission port and riverport divisions) or administratively (planning, within an effective planning process. A commission usually design and construction, maintenance, finance and public is equipped well to accomplish the technical phase of affairs). transportation planning. It usually is staffed with trained Most cities, however, still retain their traditional frag- personnel and has the advantage of an areawide viewpoint, mented structure of transportation type agencies. Transit even though most efforts would focus within the municipal authority, parking authorities, traffic engineers, city coun- transportation jurisdiction. Serious attention should be given cils, police department licensing facilities, and areawide to adequate staffing because much effort is needed to plan planning bodies all engage in transportation matters—and for integrated transportation services. Transit authority there generally are no formal lines of coordination among organizations generally have not emphasized integrative them. Enabling and operating authority may be scattered planning. Operation and protection of an existing fixed- among state statute, private act, ordinance, and city charter. route system has been the primary organizational goal. There is only slight possibility of a unified transportation Technical planning for private auto traffic traditionally has policy in such an institutional setting. been the responsibility of a city traffic engineer. Under present conditions, automobile congestion and air pollution Issues in Local Insituzional Design have become major problems. Lines of coordination between traffic planning and conventional transit have not Areawide authorities or single municipalities desiring a been defined well. Achieving a reduction in the use of more unified and effective approach to transportation private autos, especially for commuting purposes, has service must review their local situations to identify the proven impervious to the efforts of individual agencies. necessary institutional improvements. A single govern- Individual efforts to plan improvements have not been mental authority that plans and operates all services in the coordinated well, and the lack of interface between planners area is not necessarily the best response to a fragmented and decision-makers has prevented implementation of many situation. There are a number of feasible alternatives in a good ideas. given jurisdiction, and it is the task of municipal leadership Actual generation of specific transportation proposals to choose wisely among them. Financial support and per- should be the primary responsibility of these small technical sonal talent are always scarce commodities and must be centers. Ideas generated within the community should be used to best advantage as each locality seeks to reorganize referred to them for initial hearing and development. All and revitalize its local transportation system. proposals that advance the city's transportation goals should Much attention has been devoted to the role of local be moved promptly into the second stage of the process. government in operating transportation systems. More Gathering of community reaction should take place attention is needed in the areas of effective planning and through a community sounding board. This should not be a coordination and of creative exercise of the regulatory single body that convenes in toto each time something is authority that is present but often largely unused. Follow- considered; rather, it should be organized as a federation of ing is an outline of the most important issues likely to interested groups that are consulted concerning ideas that confront a locality in such a situational review. A unified affect their interests. Numerous groups usually exist in a approach is a fine theoretical goal, but many hard choices given area, such as bikeway and goods movement boards, must be made before it will become a reality. neighborhood associations, major employers, and human service agencies. Many will be consulted on a sporadic, Effective Planning Structures ad hoc basis, but what is needed is a current and systematic The structure of any effective local planning organization listing of all such groups within an area and an established should include three working components. There should process for consulting with them in a timely fashion. Such be a small staff of technically qualified people whose consultations should operate as a two-way street, with the mission is to gather information and to receive (and city making use of the forum to educate the public on the initiate) proposals that will implement announced com- advantages of a given proposal. munity transportation goals. There should be a community The technical coordinating committee is a carryover sounding board whose membership includes representatives from the highway-oriented 3-C process and must continue from all major interests—public and private. A partial to function. A greatly scaled down version of this body can inventory would include major employers, neighborhood be of help during this sounding board phase of transporta- 29

tion planning. Its membership should be limited to those ingly necessary. Typical fare policies run counter to the who are truly technically oriented. Broad representation is goal of reducing private auto traffic during times of peak no longer necessary if a community sounding board has congestion. The regulatory authority should consider been properly organized. pricing and service policies that encourage people to leave The third component, or executive committee, should their autos home. Subsidies, where necessary, are appro- be chosen carefully to ensure that private auto traffic, priate in that those taxpayers still using autos receive transit and paratransit alternatives are well represented. measurable benefits when congestion is lessened (32). There is usually a policy committee which must approve It is also common to set taxi fares above the level that all major federal grant applications, and its members would most of the transportation deprived can pay individually. form the logical core of an executive committee. The city Shared-ride use usually has been forbidden. Community legislature should also be represented within this body goals may justify artificially lower rates, but direct subsidy because its approval is necessary for any major city ex- to those in need also should be considered. The difficulty penditures. with supplier subsidies is that all users then can take Extreme care must be taken to define clearly the roles of advantage of artificially lowered fares. The state of West all actors in this local planning process. There, at least, Virginia for several years has engaged in a transportation must be continuing coordination and cooperation among stamp program. (The program designation is TRIP (Trans- them. Should this pluralist approach to technical planning portation Remuneration Incentive Program)'. It is adminis- prove to be ineffective, serious consideration of a municipal tered by the West Virginia Department of Welfare.) Low transportation department is indicated. The necessary staff and moderate income people can purchase stamps at less should be assembled under a singular line of authority in than face value, which then are usable on any authorized order to accomplish the task. means of transportation. The supplier receives face value upon redemption. Adaptation of this idea to the municipal Effective Use of Regulatory Authority situation merits serious consideration. Higher fares can be exacted from those able to pay, yet suppliers of the poor Municipal legislatures often are delegated full jurisdic- would not be doomed to economic failure. tion to regulate all for-hire transportation within their The city should define an eligibility line for this purpose borders. There may be various transit and parking boards at a level of income below which private auto transportation and a franchise-oriented taxi ordinance, but unified policy is not affordable. The cost of operating and insuring an rarely is encountered, and much of the delegated authority automobile is a known factor (the most recent AAA study remains unused. There is a need for clear definition of indicates the cost of owning and operating a medium-sized regulatory standards and procedures and for delegation of sedan now exceeds $0.20 per mile and is rising at a rate day-to-day authority to an appropriate municipal adminis- of 15 percent per year (33)); and below a set level, the trative body. The decisions made by a regulator must family income must go for food, clothing, and shelter. It achieve a high degree of consistency and fairness and must would be wise here to err on the side of generosity, because be so perceived within the community if the endeavor is all of the money given as subsidy remains in the community to be a success. A municipal legislature retains the power and increases the revenue of essential transportation sup- to alter policies, but it is highly unlikely to develop the pliers. Whether on a bus, in a vanpool, or for use of necessary expertise or even to have the necessary time to devote day-to-day attention to such matters. demand-responsive taxis, transportation stamp money will In order to create a city regulatory authority, some form be plowed back into a system that is an integral part of the of enabling ordinance must be passed by council. The community's life. All local taxpayers will benefit from a ordinance should set safety and financial responsibility more effective transportation system. standards for the protection of the public. Simple and Special needs of the handicapped can be addressed more inexpensive procedures for licensing of all transportation effectively at the local level. Coordination of existing operators should be devised. (The procedures outlined in services and fare policies should be part of the local Knoxville, Tenn., taxicab ordinance appear to strike an regulator's task. A choice among conventional transit, acceptable balance.) Whether rate controls should be set paratransit, or an appropriate combination can be made within the ordinance is a much more difficult question. more effectively by a single regulator or agency that is not To the extent that a city wants to encourage small com- tied to a single source of supply. petitive enterprise in transportation supply, the notion of The city's regulatory agency could be located within or fixed rates and monopoly franchises represents a contra- without a DOT. Independence from political authority diction in terms. This is not meant to suggest that all cities must choose competition over regulation, but only that could be pursued by creation of a free-standing agency the regulatory policies followed should be internally con- whose director has a fixed term. Coordination and consistent. The possibilities for innovative paratransit services sistent application of the city transportation policy would be can be greatly enhanced by enlightened municipal policies. enhanced by locating it within a municipal department. When a city chooses direct control of rates and service In either case, the agency must have access to information levels, the ordinary response has been to set those rates necessary for informed decision-making, and it must high enough so that private suppliers can earn adequate operate with a fairness and consistency that can be per- profits. Public subsidy or ownership has become increas- ceived throughout the community. 30

LABOR CONSIDERATIONS IN THE SUPPLY OF tance, and it has residual power to independently certify TRANSPORTATION SERVICES what terms and conditions are in fact "fair and equitable" (37). Labor considerations in the supply of transportation In most cases transit workers already are organized, and services often are considered to be barriers to new and in many states there is no restriction on a public employer's innovative public transportation services. Unfortunately, ability to recognize and bargain with a union. Certain most discussions provide a maximum of emotion but very patterns began to develop as grant applicants bargained little real advice and guidance for local decision-makers. with their unions. Early 13(c) agreements tended to spell Following is an attempt to lay forth in an objective manner out matters such as: ( 1 ) preservation of the right to bargain the major issues raised and how resolution of probable collectively; (2) assumption of prior contract obligations, conflict may be achieved. It should be remembered that including pensions, and the guarantee of financial respon- labor costs typically will be the most significant item in a sibility where the grant recipient was not to be the direct public transportation budget—often representing 60 to 80 employer; (3) notice of position reorganizations and percent of all operating costs. Therefore, it is imperative procedures giving existing workers first chance to bid for that the decision-maker fully analyze potential labor new jobs; (4) definition of amounts of compensation for problems. "displaced" or "dismissed" employees (these payments Three areas are of major interest: administration of the last for up to six years, but there is often a lump sum 13(c) labor protective provision in the UMTA legislation, severance payment alternative); (5) relocation expenses state labor laws, and the effect of certain work rule patterns for workers who must move in order to work in the new present in most collective bargaining agreements. system; and (6) binding arbitration of disputes arising as individual cases are resolved under the agreement (e.g., Section 13(c) Administration 13(c) contracts in Northern Kentucky (Sept. 20, 1973), A difficult problem associated with receipt of UMTA Nassau County, N.Y. (Mar. 23, 1973), and New Jersey support is technically a pregrant condition, but its opera- CDA (Dec. 10, 1973). These are considered by Mr. Yud, tional implications also control the economics of postgrant Dept. of Labor 13(c) administrator, to be representative transit operation. As a condition of assistance, the Secre- contracts (38)). tary of Labor must certify that "fair and equitable arrange- There have been many hundreds of 13(c) certifications ments are made . . . to protect the interests of employees since UMTA began dispensing money. In only a few affected by such assistance." The statute continues by instances has the Department of Labor either refused to mentioning a nonexhaustive list of matters that must be certify a negotiated agreement or itself certified to par- addressed as part of such an arrangement: ( 1 ) preservation ticular conditions over the objection of one of the negotia- of rights (to include pensions) under existing arrangements; ting parties. This residual power to certify has been used continuation of existing rights to bargain collectively; in one important instance. In April 1971, the Secretary protection against worsening an employee's working of Labor certified a set of protective conditions as "fair conditions; (4) assurances of continued employment or and equitable" in resolving the AMTRAK takeover of priority in reemployment; and (5) paid training and re- intercity rail service (39). Parties negotiating 13(c) training programs (49 U.S.C. § 1609(c)). agreements from then on have assumed that the Secretary This legislative concept is not new. It has been associated of Labor would not certify anything less protective than with federally regulated transportation industries for many that economic package. Unions tended to regard it as a years and recently has spread to other federal assistance "bottom-line" negotiating position. Recent amendments to programs (34). Many of the reference points in 13(c) the statutes now specify that these are to be the minimum negotiations can be traced to the efforts of organized labor protections (40). to protect the rights of its members during railroad mergers Federal law requires only the protection of existing col- and reorganizations. This is made clear in the official lective bargaining rights. Where transportation workers in legislative history (35). an area are unorganized, the Department of Labor has UMTA remains completely passive in the certification played a more active role in the certification process. process. Its external operating manual states clearly that it There is a suggested set of protective provisions which, if will await the decision of the Secretary of Labor on such included in the 13(c) agreement, the Department will matters (36). Thus, it is necessary to ascertain Department certify as fair and equitable. The economic situation of of Labor policies. Authoritative published literature on existing workers is fully protected. The rights of employçes 13(c) agreements is sparse, but conversations with the in the AMTRAK settlement represent the minimum eco- federal officials and examination of representative agree- nomic package that must be made available. There is, ments help to fill the gaps. however, no requirement that collective bargaining with a union be instituted as a condition of receiving an UMTA Early Evoult ion bf Labor Department Policy grant (37, p. 209). With some support in the official legislative history, the The "Model Agreement" Department of Labor has taken the position that 13(c) "worker protective arrangements" should be arrived at In 1974, UMTA funding for operating assistance became through a private collective bargaining process. The available. With the encouragement of the United States Department stands by with technical and mediatory assis- Department of Labor, the American Public Transit Associa- 31

tion and several major transport unions negotiated and these "private" management companies. The Labor Man- signed a "model" 13(c) agreement for Section 5 of the agement Relations Act (LMRA) exempts governmental UMTA Act projects (see App. G). Since then, the parties employers from coverage (29 U.S.C. § 152 (2)), and the to at least 80 percent of all operating assistance projects NLRB has developed a series of doctrines upon which it have adopted it. There are very few situations in which concludes that publicly owned but privately managed negotiations have produced major differences. Several transit properties fall within this exemption. provisions in this agreement could have significant cost If a government body is itself the transit employer, the implications for conventional transit operations that wish to NLRB does not have jurisdiction over disputes with its diversify their services. The definition of employees workers. The leading Supreme Court case explaining the "affected by the project" is very broadly drawn (Model extent of this exemption mentions these factors as important Agreement 15(d): "The claiming employee shall prevail indicators of governmental status: authority to use the if it is established that the project had an effect upon the power of eminent domain, exemption from taxes, records employee even if other factors may also have affected the by law open for public inspection, commissioners author- employee"), and it is backed by a provision putting the ized to conduct official investigations, and voluntary worker burden of proof on the grant recipient in any contested participation in the social security system. (NLRB v. situation (Model Agreement § 15(d)). Section 23 of the Natural Gas Utility District, 402 U.S. 600 (1970). The agreement indicates that members of the union must decision was followed in Crilly v. SEPTA 529 F. 2d 1355 operate any new services undertaken by the grant recipient. (3rd Cir., 1976). By contrast, the Labor Board determined Recipients may continue to contract out any services that that the San Diego Transit Corporation was a private em- were so handled before the grant, but use of high-cost ployer for jurisdictional purposes. 182 NLRB 428 (1970). union labor is the contract norm. (Recent meteoric rises in The essential findings were that the corporation had neither the transit wage are well documented (41).) direct responsibility to nor control by the city.) Private management services may be obtained under Public Owners Who Cannot Bargain Collectively contract by publicly owned transit systems. Private em- Complications can be encountered when a public body ployers thus engaged may be treated as though they were assumes ownership of a private transit system. Public covered by the NLRB's "degree of independent control" bodies may be under real or imagined restrictions concern- test. In a number of recent proceedings, the NLRB has ing their authority to bargain collectively with employee refused jurisdiction where the labor relations policies of unions. (Only six states now adhere to a common-law rule the private employer were controlled so closely by the against bargaining and contracting with unions in the public public owner that true collective bargaining was not pos- sector: Alabama, Operating Engineers Local 321 v. Birm- sible. (Rural Fire Protection Co., 88 LRRM 1307; ingham Water Works, 276 Alabama 462, 163 So 2d 609 American Transit Corp., Decatur Division, Cases #38-RC- (1964); Colorado, Fellows v. La Tronica, 151 Colorado 1289 and 38-CA-1620 (December 1972); Kenny Trans- 300, 377 p2d 547 (1962); North Carolina, Adkins v. portation Case #20-RC-1 1959 (April 1974)). Cities which Charlotte 296 F. Supp. 1068 (W.D. 1969); South Carolina, retain the power to approve contract arrangements or Attorney General Opinion #1779 (1964); Tennessee, specific working conditions find that their "private" man- Weakley County Elec. .System v. Vick 309 S.W. 2d 792 agement is treated as public for NLRB purposes. (1957); and Texas, Vernon's Annotated Civil Statutes, The most recent doctrinal development indicates that no Article 5154 C.) The Labor Department, following the publicly owned transit system will be able to carry its dis- language of the statute, will not certify any grant applica- putes to the NLRB. The NLRB has declared that even tion that results in the loss of established rights to collective where transit labor relations are not dominated by the bargaining. The Department has suggested that a grant municipal owner, there is still an intimate connection recipient may contract for private management which is between the service provided and the essential operations of not subject to this legal restriction or may create an inde- government. Few would argue that provision of local pendent authority with the necessary power to bargain transportation is not part of the service package expected (42). The right to bargain is differentiated from the right by most local taxpayers. The NLRB's recent decisions have to strike. The Labor Department will not insist that public equated transit with police and fire protection, and the employees be given the right to strike where applicable laws NLRB uniformly has refused to assume jurisdiction. forbid it; it instead will certify agreements that provide for (Roesch Lines, Inc. 92 LRRM 1313 (1976); Camptown submission of disputes to binding arbitration (37, pp. Bus Lines 93 LRRM 1141 (1976); Waukegan-North 210-211). This point has been the subject of litigation, and Chicago Transit Co. 93 LRRM 1262 (1976); Embree the Department's position has been upheld (43). Buses, Inc. 93 LRRM 1372 (1976); Columbia Transit Use of this "Memphis Formula" as it has become Corp. 93 LRRM 1396 (1976). The Board refused to hear known in the industry may encounter an unforeseen cases involving alleged Union busting. They did in several difficulty. Collective bargaining in the private sector is instances approve bargaining units of drivers who worked carried on with the knowledge that the National Labor private charters "for sufficient periods of time to demon- Relations Board (NLRB) stands by to aid in resolving strate that they have a substantial interest in the unit's impasse situations and to enforce the laws. It has become working conditions.") clear, however, that the NLRB will not assume jurisdiction What is left is a very interesting but, as yet, unanswered over disputes brought to it by unions who must bargain with question. Section 13(c) requires continuation of an exist- 32 ing right to bargain collectively. Does this right by implica- cation for minor amendments remains unchanged (29 tion require the availability of the NLRB as a forum for C.F.R. § 215.5). resolving labor-management disputes? If the answer is yes, the Memphis arrangement turns out to be an ineffective Paratransit Projects means of continuing the right. The difficult and currently interesting questions concern- Under present conditions, labor-management disputes in ing application of 13(c) occur in the growing field of the transit industry are neither numerous nor intense. paratransit operations. Two separate problem areas can be Thus, there is no pressing need for an answer to this identified: (1) whether grant recipients can utilize lower question. Should the situation change, something like a cost labor or contract out some services to private business NLRB forum would have to be established (42, pp. 51-52). operations and (2) whether government-operated para- The U.S. Supreme Court decision in National League of transit services that cut into the business of existing bus or (426 U.S. 833 (1975)) forecloses any Cities v. Ussery taxi operations will give rise to enforceable 13(c) claims. attempt to amend the LMRA so as to provide NLRB juris- It is clear that any grant recipient must bargain success- diction in these cases. Many states do have such agencies fully with its union to obtain permission to use nonunion and thus would seem to have "continued" the employee employees or subcontractors if it wishes to operate any rights. In states that have no "labor board," parties to a federally aided paratransit service. Existing employees collective agreement could provide for broadscale arbitra- clearly are "affected by the project" where the issue is tion of disputes during the life of the contract; but should whether they will operate and maintain the vehicles. If the there be a prolonged dispute after a contract expires, the 5, the model agreement absence of a labor board would be most sorely felt. Pre- UMTA fund source is Section expressly would provide that members of the union will be vention of unfair activity during a strike is one of the the exclusive providers of any new mass transportation NLRB's major functions. Should there be many such services (Model Agreement § 23). The Gill (48) memo- cases, the Department of Labor would have to rethink its randum embodies an understanding that paratransit poses 13(c) certification policy for applications from any state special problems that must be worked out on a case-by-case that lacked its own labor board. basis. There are a few recent instances in which a grantee has Certification Procedures been able to get its union to permit the contracting out of In January 1977 the Labor Department published pro- paratransit services. In Birmingham, Ala., Hartford, Conn., posed regulations for administering the 13(c) certification and Knoxville, Tenn., nonunion personnel are permitted to process (44). Its apparent intent being to reduce unneces- drive paratransit vehicles in return for covenants that the sary delay. The Secretary would be empowered to set a size of the transit bargaining unit will not decrease and time limit in each case for local negotiation of appropriate that union personnel will perform most maintenance on the worker protective arrangements (29 C.F.R. § 215.3(d) vehicles. There are a number of other cities, however, in proposed). Certain categories of grant application, desig- which high-cost union members do drive the new vehicles nated as "recurring," would be certified under the existing or from which grant applications appear to have been 13(c) contract unless one of the parties objects (29 C.F.R. dropped because of inability to reach agreement with the § 215.6 proposed). The Secretary also could determine local transit union. that some amendments to grant applications were minor In Akron, 0., demand-responsive service to the elderly and thus did not require further certification (29 C.F.R. was contracted out to a local taxi company. Upon com- § 215.5 proposed). plaint, the Secretary ruled that no 13(c) certification was Both the transit industry and organized labor have voiced necessary because the drivers were not mass transit em- criticisms. The industry has embraced the idea, but has ployees. It appeared from the evidence that no driver suggested additional means of speeding up the process received more than 5 to 10 percent of revenue from the (45). Labor has been opposed adamantly, taking the posi- contract service and characterized it as incidental. He was tion that time limits would encourage parties to avoid careful to state that the decision was based on its facts bargaining in good faith (the proposed regulations spe- and was not to be taken as a statement of general policy cifically state that the Secretary will not certify an applica- (49). A similar result was reached in Redondo Beach, tion where the parties have not exercised good faith) (29 Calif., but the Secretary has ruled that some taxi drivers in C.F.R. § 215.3(f) proposed); and that automatic recer- Pittsburgh were covered (50, 51). tification would tend to freeze in present contract pat- There is no experience with 13(c) claims from em- terns (46). ployees of nonrecipient transportation companies who claim Final regulations were published in March 1978 (47). injury as a result of new governmental paratransit services. The provisions for negotiation deadlines and automatic There is no requirement that such employees participate in recertification are retained in limited situations. The secre- certificate negotiations, but it is certainly possible for bus tary may set "target dates" for completion of negotiations and taxi drivers to be affected adversely by such projects. in cases where UMTA has stated an anticipated time frame Federal regulations do require that the interests of existing for funding (29 C.F.R. § 215.3(d)). Automatic recer- private enterprise be considered in the planning process and tification is limited to operating assistance cases covered by that private companies be given a fair opportunity to bid a model agreement (29 C.F.R. § 215.6). Expected certifi- for contract services (52). If these regulations acconplish .33

what they apparently intend, there will not be many such It is quite clear that widespread provision of cost-effective claims. paratransit services likely will not occur if the vested The effect of 13(c) on all systems receiving UMTA aid interests of transit labor and management are permitted to clearly is to protect the economic position of existing em- control the 13(c) certification process. The interests of the ployees for a period of up to six years. This protection consuming public will not be well served by the premium extends even to pension rights for retired workers (53). priced services required under the model agreement. Section 13(c) does not prohibit change within a system, but Realistic bargaining on the local level, supported and it may prevent significant reductions in labor cost. certified by the Labor Department, will have to take place Barnum (54) discusses two pathbreaking arbitrations. if local transportation systems are to diversify. A key role In ATU Local 618 v. R.I. Pub. Trans. Auth., arbitrator will be played by Labor Department 13(c) administrators, Stockman determined that employees demoted or laid off and no clear patterns have yet emerged. after a post-takeover efficiency study were entitled to 13(c) contract benefits even if they were only indirectly State Labor Laws affected by the federal aid project. In Signatory 13(c) Unions v. BART, arbitrator Kagel ruled that priority Private sector labor-management relations are controlled employees of other systems transferring into BART would by federal labor legislation. The courts have held on many retain their pay and benefits even if higher than called for occasions that these laws have preempted (rendered ineffec- in BART's scale. This employment priority was the result tive) state attempts to legislate in an inconsistent manner. of 13(c) bargaining. (State public utility laws requiring compulsory arbitration Transit systems that must go on the annual operating of labor disputes were held invalid in Street Railway dole will be pushed to show that any reallocation of work Workers v. Wisc. Emp. Re!. Bd. 340 U.S. 383 (1951). assignments or reduction in work force has not occurred Laws permitting a governor to seize a struck utility were as a result of the federal grant project. An internal Depart- held invalid in Street Railway Workers v. Missouri 374 U.S. ment of Labor study (40) indicates that 13(c) has had 74 (1963).) Government bodies, however, are specifically minimal cost complications, but the results are criticized exempted from coverage (29 U.S.C. § 142(2)); so only severely by an American Public Transit Association spokes- state statutes and decisions can control their labor-manage- man. ment relations. The result is a great deal of variation in Critics have portrayed 13(c) as though it has placed a public sector labor relations law. club in the hands of unionized labor. Because certification There is extensive literature in which the peculiar prob- of worker-protective arrangements is a precondition of lems of public sector labor relations are identified and obtaining necessary federal grants, contract patterns that debated (e.g., Symposium: "Labor Relations in the Public emerge from this "bargaining" process are said to be one- Sector," 67 Michigan Law Review 891 (1969); Wellington sided. By implication, say critics, the Department of Labor and Winter, "The Unions and the Cities" (1971); Bok and contributes to this situation because it ordinarily does not Dunlop, "Collective Bargaining and the Public Sector" in support the management side in a certification dispute Labor and the American Community, 312 (1970)). The (.54,p. 150; 55). major issues are well summarized in a paper delivered to The few published studies to date do not adopt this view the Third World Congress of the International Industrial of 13(c). They admit that bargaining strength may be Relations Association (59): unequal, but conclude that the certification process has had There is a fundamental difference in purpose between little effect on collective bargaining contract patterns in public and private enterprise. Municipal government exists the industry. Prevailing wage rates and work rules are to minister to the generally perceived needs of the com- seen as the result of institutional factors unrelated to 13(c) munity. Elected officials are ultimately responsible for (41, 42, 54, 56). Such assessments of the situation may defining those needs and mediating the inevitable conflicts be true, but they are incomplete. Certification contracts that will arise in the process. Success or failure of those have an increasingly important bearing on how innovative officials is not to be measured by profit and loss as in the transportation services are to be delivered. Where a local private sector. transit union must agree on a division of-labor before grant The merit promotion system is based on principles applications are approved, its members have an inside quite different from seniority and across-the-board soli- track on any new work. Typical wage rates and work rules darity that characterize settlements achieved through the make it extremely difficult to price paratransit at a level that collective bargaining process. will entice the paying public away from its own auto- There is often no single management authority in a mobiles. local government structure with whom employees can Certification negotiations involving the Delaware Au- bargain. Unless the appropriating authority is included in thority for Specialized Transportation (57) and, most the discussions, the terms of an agreement may not be car- recently, the Knoxville, Tenn., feeder project (58) exem- ried out. Where the electorate must approve tax increases, plify both the problem and the promise in the paratransit there is an additional barrier that can frustrate the results field. In each case the local transit union sought jurisdiction of collective bargaining. over all new jobs. Adamant resistance by the applicants on The strike problem has received the most attention. sound economic grounds ultimately resulted in certifications Strikes occur in many situations even though they are that enabled the projects to remain viable. illegal. Public health and safety demand exploration of 34 alternatives. Binding arbitration is often suggested, but has Work-Rule Patterns been declared an illegal delegation of government power by A third area of concern is little noticed but extremely a number of courts. important to the management of a transportation system The upshot of these differences is that the collective that desires to serve a variety of both peak and off-peak bargaining cannot be relied on to keep public sector costs service demands. Flexible and efficient use of personnel in line with general taxpayer desires. Government does covered by a collective bargaining contract often is ren- not possess the bargaining strength of private management. dered impossible by several of the most common work rules A common interest in continued profitability of the enter- in the transit industry. Transit labor contracts are designed prise is not present. The result of transplanting the private to discourage use of part-time labor and to require premium collective bargaining process into the publicly owned transit pay for workers who must work during both periods of industry has been a rapid escalation of costs. There has peak demand. Typical contract provisions seriously frus- been little political accountability for or control of the trate management efforts to control labor costs. process. Transit workers normally cannot be required, and in Applicable legislation and judicial authority have been some cases are not even permitted, to work outside of their catalogued ably in the recent University of Wisconsin narrow job category or description (61, p. 15). Operators Industrial Relations Research Institute study (42, pp. needed only during times of peak demand are not available 58-181). About half the states have legislation that broadly for maintenance or customer relations work even though controls labor-management relations in the public sector. they may be well qualified. Within a large operation, (Alaska, Colorado (private sector statute covers transit), different categories of maintenance are specified—each Connecticut, Delaware, Florida, Hawaii, Iowa, Kansas, with its own crew of workers (e.g., contract between ATU Maine, Massachusetts, Michigan, Minnesota, Missouri, and Norfolk, Va., Management Co., Feb. 5, 1974). There Montana, Nebraska, Nevada, New Jersey, New York, even have been instances where the transit union contract Oklahoma, Oregon (excludes transit), Pennsylvania, Rhode protected the interests of local skilled trades by prohibiting Island, South Dakota, Vermont, Washington, Wisconsin). inside personnel from doing repair or maintenance on the An administrative board or agency typically is created to transit company building and grounds (61, pp. 3 1-32). protect worker-organizing rights and to assist in resolving Regular employees generally are guaranteed a full week's impasse situations that arise during collective bargaining. pay whether or not they can be assigned 40 hours work Most of this legislation spells out the rights and duties of (e.g. contract between San Diego Transit Corporation and parties and lists specific unfair practices. (See, e.g., Wis- ATU, Jan. 1, 1976, § 13). Many contracts require a high consin's Municipal Employment Relations Act, Wisconsin percentage of straight runs and limit the number of Statutes Annotated § 111.70, and State Employment Labor separate runs which can be assigned to a particular Relations Act, § § 111 .80-.97.) Although public sector employee (e.g., Norfolk contract, Feb. 5, 1974, § 14; San strikes often are declared illegal, enforcement of the law Diego contract, Jan. 1, 1976, § 12). Transit scheduling has proven quite difficult (60). is at best a complex process, and even the best of schedulers The great majority of statutes authorizing formation of are unable to assign 40 hours of work to many of the transit authorities or districts contain labor relations pro- regular drivers under these contract constraints. The job visions. Many incorporate directly the protective provisions category clauses previously discussed prevent utilization of of 13(c) (Alabama, Connecticut, Delaware, Illinois, Ken- these drivers during unassigned hours. tucky, Maryland, Massachusetts, New Jersey, New Mexico, Contract limitations on spread-time often result in Ohio, Oregon, Pennsylvania, Tennessee, Utah, Virginia, premium payment to those who do work a full 40 hours. and West Virginia). Most of the others indicate that prior Morning and evening peak demand periods span at least contract rights are to be preserved in any authority take- 12 hours, and clauses requiring premium pay to individuals over (California, Indiana, Louisiana, Maine, Michigan, working more than a 10-hour spread are now common Minnesota, Missouri, Nebraska, Rhode Island, and Wash- (Norfolk contract, Feb. 5, 1974, § 14(h)). The same ington). All generally indicate that the authority is author- result is reached under contracts which severely limit the ized to bargain collectively, but many forbid strikes amount of time a driver may spend between assignments (Alabama, Arkansas, Connecticut, Delaware, Florida, without drawing premium pay (62). Because the peak Georgia, Indiana, Iowa, Kansas, Maine, Maryland, Michi- periods typically are at least six hours apart, some of the gan, Minnesota, Missouri, Nebraska, Nevada, New Jersey, regular work will result in premium pay. New York, North Dakota, Ohio, Oklahoma, Rhode Island, Ability to hire and use part-time drivers paid only for South Dakota, Tennessee, Texas, Utah, Virginia, Washing- time worked would alleviate many of the problems just ton, West Virginia, Wisconsin). The result of this is that in outlined, but most union contracts require that extra help about one-third of the states there is no legislation govern- be treated as regular help when substituting for a regular ing labor-management relations in public transit. The rights driver. They also require that extra work be preassigned and responsibilities of both labor and management have and that drivers draw a minimum amount of pay just for been left to the benevolence of the parties involved. being available for such assignments (contract between Granted that these are not the large industrial states with ATU and Jacksonville, Fla., Coach Co., May 3, 1976, extremely large transit systems, but the lack of uniform § 16). As a result, part-time labor simply is not found in legislation and administration creates a great deal of un- major unionized transit properties. Nowhere did the in- certainty in the field. vestigators on this project encounter or hear of significant 35

use of part-time labor by unionized transit properties. opportunities in public transportation. This material is Another source of difficulty is the fact that almost all intended to encourage planners and decision-makers to contracts require assignment of work on the basis of consider service provided by private suppliers. The seniority. Whenever there is a significant rescheduling of detailed guidelines found in Appendixes H, I, J, and K will routes, all drivers are given an opportunity to pick runs assist new and existing providers in organizing successful (San Diego contract, Jan. 1, 1976 § 12). This often takes services. several days, and the workers are paid for time spent. Management's ability to adjust schedules and work assign- Decline of Private Mass Transportation Under Public ments to take advantage of small cost savings is frustrated Assistance totally by such an elaborate and costly process. Another disadvantage is the fact that management usually is unable The loss of ridership by traditional transit systems in to assign its best operators to charter business. The cus- urban areas is well documented. The convenience, the tomers who pay their full costs are assigned whatever superior level of service, and the social desirability of the private auto generally have made it the dominant mode. junior labor is available (61, p. 29). These work rule patterns, singly and as a group, greatly Transit ridership has decreased steadily since 1945; and inhibit the ability of a transit company to serve its demand only recently, with the aid of federal capital and operating peaks without having to waste many man-hours when assistance, has this decline appeared to level off (63). demand is slack. The company desiring to diversify and During this period, private urban transportation systems, offer innovative services to capture some of the identifiable caught between declining ridership and continuing rising peak demand will have to negotiate some flexibility into its costs, found it impossible to earn a rate of return sufficient work rules. Even then, the average transit wage rate will to maintain operations. make it quite difficult to price such services at a level that With the advent of the Urban Mass Transportation Act will attract people out of their automobiles. of 1964 and the subsequent capital funds made available Institutional factors make it unlikely that these patterns to purchase local private transportation systems for the will change soon. There is an imbalance of bargaining public good, many private transit suppliers willingly sold experience and skill in many cases. Under present subsidy their fixed-route, fixed-schedule transit service to municipal conditions, a locality need not absorb all costs of a settle- governments. It was felt that government ownership and ment, and there is no generally perceived need to consider control would provide a higher level of service, would the economic viability of the system. Political pressures maintain or reduce fares, and generally would attract for quick settlement of strikes only add to the strength renewed patronage because service would be the goal—not of labor in the bargaining process (61, pp. 11-15). Change "profit." Thus, the number and significance of private may come only after taxpayers are informed fully about transit operators in urban mass transportation gradually the costs of subsidized public transportation and exercise declined to their present position of only minor importance. their voice in the bargaining process. This is not to imply that there are no private, for-profit transit companies in operation or in viable financial con- PRIVATE ENTERPRISE IN PUBLIC TRANSPORTATION ditions. Viable operations exist in some areas. SERVICES Within the past ten years, however, large amounts of federal capital assistance (and operating assistance within Organizations in both the private and public sectors tend the past five years) have dramatically changed the bud- naturally to grow. In many contexts this growth is healthy getary environment for public transportation. Yet, these and desirable, but there are negative aspects. New func- funds have not allowed innovation or compliance with tions may be subsumed within an existing organization performance standards. Thus, federal funds have per- solely because of a desire to control them. Operational mitted local transit systems to continue operating the same inefficiency and duplication of effort can result when an way they did three decades ago. "empire" grows too large. Sometimes, private enterprise The utilization of federal funds had very predictable can provide what appears to be the most cost-effective mode results. For example, in 1977 (the latest year for which of transportation service to fit many identifiable local statistics are available) a total of 7.94 billion transit pas- market segments. Public transportation organizations must sengers were carried and 2.18 billion vehicle-miles were be staffed with or at least led by individuals who can resist operated, for an average ridership of 3.6 passengers per temptation to provide all available services. Identification mile of operation. In 1970, this ratio of passengers per of a transportation need or desire does not indicate auto- mile of operation was 3.9; in 1965 the ratio was 4.1. Thus, matically, or even probably, which public operations will systemwide performance of fixed-route transit operation best meet that need. Unless the natural tendency of under public assistance has not increased significantly—in organizations to grow is kept in mind by local transporta- fact, it has declined appreciably. tion decision-makers, there is little likelihood that a cost- The cost of providing the service is even more discour- effective balance of public and private transportation en- aging. The last year in which transit operations in the terprises can be established. United States were able to avoid a net operating loss was The objective of this section is to analyze the role private 1967. Since that time, operating deficits have risen at a enterprise might play in helping resolve some of the steady rate. In 1977, the last year for which data are dilemmas facing public transportation and to provide available, operating deficits of U.S. transit systems were specific guidelines for entrepreneurs wishing to initiate approximately $1.9 billion. Preliminary estimates for 36

1978 indicate that this deficit figure will be over $2 billion. pollution or improved energy utilization. Such assessment This $2 billion infusion of public funds coupled with a 50 leads to the conclusion that some movement back towards the private sector may be appropriate. For example, there percent hike in average transit fares since 1967 has been are several segments or markets in the urban transportation necessary to maintain the U.S. transit industry average of environment that potentially could be self-supporting. Five -1.9 billion miles driven per year_approximately the 1967 level of operation. One of the major beneficiaries of mas- types of service that can be developed by the private sive capital operating assistance to the transit industry in sector are profitable. recent years has been transit employees. Annual average Charter Service and School Bus Operations earnings per employee have risen at an average of slightly greater than 10 percent per year for the past 12 years—a Currently the majority of the intercity bus lines have rate unmatched by most other industrial blue collar or white decreased their fixed-route operations and have concen- collar employee groups. trated on charter operations. It has been estimated that The unfortunate aspect of this massive amount of two-thirds of the intercity bus lines are now charter-only federal, state, and local support is that many challenges to operations. the provision of transit service remain unmet. Services If a publicly owned transit service attempts to compete in to elderly, handicapped, and other transit dependent groups this profitable area, two legal difficulties are encountered. changed very little. New transit facilities and newer buses There may be other franchised car:iers in the same market. have not always led to altered routes. In many cases, less Even if the charter service is offered by an arm of the service on existing routes is being provided today than was municipality, it may be subject to the jurisdiction of a state provided ten years ago. In the move from private to pub- regulator. (This occurs where charter service crosses the licly supported systems, transit management has attempted boundary of the municipality.) Unless the municipal sys- to expand services geographically to include all constituents tem is completely exempt from regulation, it may not be of a metropolitan or regional area served by the transit permitted to compete with private charter carriers. Also, system. In some instances this has meant taking service federally aided transit systems are subject to a set of charter away from previously low headway but self-supporting service regulations designed to make it impossible for them transit lines and adding little used but politically expedient to compete with any private operator who is willing and services. able to provide charter service (49 C.F.R. Part 604). The Another aspect of this federal aid has been the detri- effect of these regulations is to require a hearing and per- mental effects UMTA funds have had on other urban mission process and to ensure that the transit system will transportation providers, mainly on private taxicab opera- charge prices that recover the full fixed and variable costs tions. The International Taxicab Association reports that attributable to the charter. It is no longer possible under over 1,000 taxicab firms in the United States ceased to these regulations for public operations to engage in charter exist in the 1967-1977 period. While rising labor and service to utilize idle labor and vehicles except on an insurance costs played a significant role in their failure, incidental basis. some of this decline is thought to be due to government support of public transit systems to the exclusion of private Express Commuter Service transportation providers. A second profitable area for some private companies is Finally, federal funds have made possible the creation of express commuter service. These markets generally require a "public monopoly." Typically, organized labor, and in one round trip per day, leaving the vehicle in the home some cases management of the public transit system, area during the evening and near the employment site assumes that any and all forms of public transportation, if during the day. Services are tailored specifically to meet they are to receive federal capital or operating assistance, the needs of workers. Frequently one of the commuters must be performed by their entity. will drive the vehicle. Express bus services, vanpools, carpools, and company work buses are all examples of this Return to Competitive Private Enterprise System activity. As stated in the Urban Mass Transportation Act of The success of firms, such as Colonial Transit (Wash- 1964 (Section 3(e)) and subsequent amendments, it has ington, D.C.), in providing peak-hour commuter services has demonstrated the tremendous potential for this type of been the policy of our federal government to provide for "maximum private sector involvement." The present ad- service. Colonial Transit primarily relies upon workers who are paid an additional sum for driving a bus to and ministration and Secretary of Transportation have reiterated this policy and have attempted to continue it. from their place of employment. Such subscription services It is felt by some that the great experiment in public are an extension of the familiar carpool or vanpool programs, and as of yet their potential on a nationwide basis ownership of transit systems has not been a total success has not been realized. The success of such pooling orga- in all cases. There are examples of transit increasing ridership and providing vital services, but in many cases nizations, in Knoxville, Tenn., for example, indicates that there is a tremendous need for peak-hour commuter public funds are being expanded each year to maintain a transportation, especially where distances driven are 10 to level of service that possesses little ability to attract new ridership. Clearly, the support through public ownership 15 miles or longer. There are no major legal barriers to providing this sort of and control has not obtained the goals set forth for public transportation in terms of reduced traffic congestion and service so long as the provider has general authority to 37

operate within the geographic area to be served. Since carrier to engage in such services without utilizing the express service becomes more competitive with distance, a higher-cost union labor. Cost data from demonstration municipal system may need to acquire authority to serve projects indicate that union labor is potentially a serious beyond its boundaries. An areawide independent authority barrier to cost-effective demand-responsive services. ordinarily will encounter no such problems. Federally For example, if a community determines that it can subsidized systems must take care not to compete with contract with private companies to provide service in low existing private operators as generally mandated in UMTA legislation. density suburban areas, neighborhood circulatory service and feeder service to the bus systems, it probably will be However, there are contractual barriers hindering the required to negotiate a 13(c) agreement with the operators provision of this type of service by public agencies. Tradi- of the traditional bus systems. A very easy position for tional transit labor contracts usually prohibit the use of the operators to take is that they will not agree to the plan part-time labor where part-time is defined as two hours per until all jobs are contracted to their bargaining unit or until day on a continual basis. This is understandable because all employees receive comparable wages. If a city entered employees of other firms who work one hour each morning into such a contract it would probably serve to raise salaries to drive a bus to work and one hour each evening to make for taxicab drivers, human service agency programs, and the return trip will not have the same interest as the full- private contractors to the transit level. This would price time drivers. In a closed shop where the part-time workers these services out of the market, would expand the obliga- would like to belong to the union, there is a strong prob- tions of government to provide all services, and would ability that a large number of part-time drivers would bring all transportation under government ownership. distort the objectives of the union. Furthermore, a major bargaining issue is limiting spread time. Again it is easy to understand the desire of the drivers to limit spread time, Service to "Paying" Human Service Clients but the effect is that it prices the express service out of the Another potentially profitable area for private sector ser- market. vice is human service clients able to pay all or some portion In cases where regional transportation authorities have of their transportation costs. Many of the human service agreed contractually that their employees will operate all transportation programs could reduce greatly their subsidies services provided, these profitable options are prohibited. if they could charge passengers who are willing and able to Thus, many cities find that public operations cannot afford pay fares. Many private operators welcome this business. to provide express commuter service to a market segment Several demonstration projects that provide transporta- that needs, wants, and is willing to pay for the service tion for the elderly and transportation in rural areas have because of contract work rules that make the service too avoided charging fares—even though a significant number costly. From the city's standpoint, it is far better to proof the users could and would happily pay for the service mote private operations and pooling programs to increase (14). Charging fares may bring the agency within the vehicle occupancy, but potential labor conflicts and poten- definition of common carrier under most state laws and tial competition for program funding make them reluctant thus subject it to the regulatory regime previously discussed. to do so. Historically, the higher degree of care required by the common carrier increases the cost of liability insurance Demand-Responsive Service 5 to 12 times (difference between rates for school/church bus A third profitable service for the private sector is and the same vehicle and driver hauling intercity or urban demand-responsive transportation, such as taxi service, fixed-route service). Acceptance of voluntary contributions shared-ride taxis, jitneys, dial-a-bus, and other door-to-door can help defray costs. Even where some revenue is ob- services. These services are particularly attractive for low tained, many agencies seek to minimize costs by using density areas, for rural areas, and for neighborhood circula- volunteer drivers; such drivers are a major source of tion service. In these areas (especially if children under transportation in a number of programs and areas. But the driving age are provided transportation to and from many people are reluctant to volunteer because of the atheletic and other school events), this service may provide possibility of accidents (which are their fault) that expose an effective alternative to a second (or third) car. For them to ruinous liability. At present, the only sure way example, Westport, Conn., has done an exceptional job of to be protected is for each volunteer to carry expensive proving this concept. Such services exact premium fares, high-limit insurance coverage. but offer demand-responsive door-to-door service in return. Offering more realistic tax incentives would encourage Legally, publicly owned systems contemplating this service volunteer service. Allowing a deduction for the real value need only ensure they have the necessary charter authority of services might make it easier to attract volunteers. The and do not infringe on the rights of the private operator. encouragement of volunteers, the volunteer agency's ability Assuming that a demand-responsive service can become to recover its costs through moderate user contributions, legally authorized, the most significant operating problem and an avoidance of the common carrier liability standard appears to be the dramatic cost-differential between union could greatly reduce required subsidies. and nonunion drivers. Use of lower cost or owner-operator Similar to exclusive labor contracts that preclude partici- labor could make such services an attractive alternative to pants of private enterprise, efforts to promote human the private auto. The model 13(c) agreement makes it service transportation by regional transit authorities also difficult for a federally subsidized mass transportation may eliminate volunteers that are vital to the success of 38

cated that some large city mayors bought labor peace these programs. The Red Cross, for example, uses 160 during their tenure of office by contract prçvisions that gave volunteers for each professional employee. generous pension rights to transit employees. Such tactics have resulted in ballooning costs during the time of sub- Goods Movement sequent officeholders. Goods movement in urban areas has grown rapidly in the private sector. Courier services, parcel delivering Criteria for Public Versus Private Provision of Urban services, mail services, distribution centers, and wholesalers Transportation Services all are in the business of delivering urban goods—and most Public ownership (and especially operation) of new are privately owned and unsubsidized. urban transportation services should be avoided and should Other private mass transportation operators with the be undertaken as a last resort. Every attempt should be necessary charter authority might consider incidental goods made to provide even opportunity for the private provision movement as a feasible revenue-raising alternative. State of services. This is not to argue that public transportation enabling statutes may authorize only passenger movement, is not deemed socially desirable, nor is it to argue that it or goods movement may be subject to state-level common- should not be provided through public monies. On the carrier-type regulation. Independent .authorities are more contrary, certain transit dependent groups, such as the likely to be free from regulatory restrictions because statu- elderly, the handicapped, those without a driver's license, tory delegations of authority now tend to be quite broad and the young, need forms of public transportation; and 19-5-2.5-2. Such (Indiana General Statutes Annotated it is in the best interest of society to provide this mobility. authorities may act to encourage the development of these The fact that such services are to be provided through complementary services. public assistance should not dictate that only public or private nonprofit firms provide these services or that the The Brokerage Concept fare charged for service not cover the full cost of service. The Urban Mass Transportation Act of 1964, as Alternatively, for those economically disadvantaged in- amended through February 5, 1976, Section 3(e) states dividuals, a system of user charges can be utilized so that public monies are expended directly for the provision of that: public transportation instead of indirectly to support the No financial assistance should be provided under this Act system that provides the public transportation. Public to any State or local public body or agency thereof transportation should not be viewed as something the unless (2) the Secretary finds that such program, to the maximum extent feasible, provides for the participation municipality or local government is expected to provide, of private mass transportation companies. such as fire and police protection. Rather, it is a common necessity more like food and shelter. It would seem odd Thus, the mechanisms to provide aid to private mass trans- for the government to buy grocery stores or construction portation providers are clearly visible; however, some local firms and to subsidize operations for the general public so transit officials ignore these private enterprise protective that the costs to all users would be half of the true cost of clauses in favor of Section 13(c) of the Act, which seeks providing these items. Instead, economically deprived to protect the rights of organized labor. Their rationale is individuals are given financial assistance in acquiring that there is an obvious conflict written into the law and necessities. The same rationale and philosophy could be that it is up to Congress to clarify the language. Thus, in utilized with respect to urban public transportation. order to avoid further public management and ownership Whenever new services or alternatives for existing of urban transportation equipment and services, many services are considered, the initial question should be, cities and transportation officials are discussing new institu- "Are there any present private transportation suppliers tional arrangements to alleviate this congressional conflict at available?" If the answer is "yes," and if they are inter- the local level. One structure to evolve is a brokerage con- ested, what would it take to get them to provide this cept to provide for maximum private sector involvement. service? Firms that appear to have expertise and low The brokerage concept is being suggested because it desig- operating costs might be the first to contact. The oppor- nates that a central organization (such as a city department tunity for new firms to be developed as a result of a of transportation) should act to bring about a regulated request for service also should be facilitated. competitive environment for public transportation. Such a For example, if additional services are considered for city department of transportation attempts to protect the handicapped individuals, and no private providers are safety of the traveling public while providing a framework available, human service agencies presently serving these for effective maximum economies through a competitive individuals may have an existing transportation network bidding process for the services provided. Contracts for that could provide greatly improved services with minimal such services normally are short in duration (one to four amounts of additional resources. Often, human service years) to allow maximum utilization for depreciation of agencies, such as the Red Cross, are providing transporta- vehicles. At the same time, municipalities do not enter into tion through voluntary labor; and the total cost per mile of long-run irreversible contracts. Such a framework provides operation may be exceptionally low. Utilization of such for innovative changes and new ideas to be adopted by an suppliers would be recommended highly if there is no urban area when they become available. It also reduces the harmful competition with existing private transport sup- likelihood of costly programs for which some future city pliers and service could be provided in a reliable manner. administration would be forced to pay. It has been advo- 39

Thus, it is important to consider all costs when deciding Minority Enterprise who may provide the proposed new service. However, if existing private transportation suppliers do exist, their Although 18 percent of the U.S. population is comprised operating cost structures and level of market penetration of minorities, only 4 percent of the nation's businesses are must be considered. minority owned, and less than 1 percent of the annual Care should be taken in the inclusion of nonprofit firms business receipts may be attributed to minority businesses. interested in providing urban transportation services. The In recognition of this disparity, considerable attention in presence of "competitive" nonprofit organizations should recent years has been given to encouraging the development not prohibit legitimate private operators from participation of successful minority-owned businesses. The Office of in the marketplace on a competitive bid basis. For example, Minority Business Enterprise within the Department of nonprofit firms often do not pay any local taxes and are Commerce has taken a leading role in this activity, and the often eligible to receive vehicles from various government Small Business Administration and other agencies have sources for little or no investment, thereby incurring no implemented special loan programs, procurement policies depreciation expenses. Care should be undertaken in any to favor buying from minority businesses and other policies to competitive bid process to examine all these varying cost •foster the development of minority firms. One factors when nonprofit and profit-oriented firms are bidding of the latest developments was the establishment in the competitively to provide the same service. Public monies Department of Transportation of a Minority Business should not be used to diminish market shares of responsibly Resource Center to assist minority construction contractors private transport suppliers. As with any criteria, however, who wish to submit bids for work authorized by the certain operating guidelines, procedures, and administrative Railroad Revitalization and Regulatory Reform Act of 1976. judgments should be utilized in such decisions. In view of this general priority, it is only appropriate that special efforts be made to involve minority firms in private Subsidies and Incentives sector participation for providing public transportation Private operator subsidies and user-side subsidies are services. Identifying existing and potential minority busi- gaining in popularity to public ownership and operation. ness representatives and then developing communications Under private operation the costs per vehicle-mile driven to encourage their participation in transportation-related typically are much less than for traditional public transit opportunities can provide ancillary benefits to community operation. Also, monies earned by private enterprise within welfare and greater private sector involvement in meeting an urban area help improve the local tax base. Capital community transportation needs. In carrying out the func- investment in new facilities and equipment also helps to tion of developing minority enterprise involvement, it is generate a more sound economic base in the community. essential to work with organizations in the community that User-side subsidies have the potential for fostering new are experienced in the special problems of minority-owned and innovative types of transportation systems better suited businesses. In addition to Office of Minority Business to meeting individual transit dependent needs. User-side Enterprise and Small Business Administration contracts in subsidies also have an inherent consumer orientation, the community, other local persons and organizations because it is the consumer who is being subsidized instead should be mobilized to provide technical and managerial of the transport system itself. Transportation services are assistance, if necessary, to help ensure successful par- selected by the consumer as opposed to supplier dictates. ticipation of minority businesses. In retrospect, it makes relatively little sense to subsidize the fare of high income suburban individuals on express Institutional Barriers commuter runs as is being done presently in many urban areas. It has been demonstrated that such high income Several inhibiting factors that possibly could prevent consumers will and do pay for the privilege of premium greater utilization of private enterprise in the provision of public transportation services already have been mentioned. transportation when it is available. Individual consumers, Opposition by organized labor in the transit industry can by freely expressing their desires for transportation in the be expected to be a major barrier to innovative change in form of expenditures, will be able to dictate changes in the the urban transportation industry. Organized labor un- level and type of services, thus making the services respon- doubtedly will resist the use of federal funds for other sive to the public's demand for transportation services. than traditional public transit or services that are provided By this process it is hoped that mass transportation systems can be responsive to providing the type of transportation mainly by its members. The establishment or growth of desired by the consuming public. competing forms of transportation that could have the effect of limiting public transit's significance will be Administrators of public transportation programs should resisted. look for opportunities where private enterprise can be As with any organization a portion of existing transit involved. In addition, it is suggested that public administra- management and public transit associations can be expected tors see opportunities for new firms that could be brought to resist greater involvement of private enterprise. They into existence to provide urban transportation services. likely will view such new entries into the urban transpor- A special emphasis could be aimed at minority business tation supply sector as entities that could diminish their enterprises created for the purpose of providing urban own role and status within the urban mass transportation transportation within the area. community. They may fear that such new systems may 40

lation: The Case of Urban Mass Transit." 27 Labor divert new or existing public funds from present fixed- route, fixed-schedule traditional transit systems. As noted Law Journal (1976) pp. 172-173. Increased Transportation Efficiency previously, the advent of federal funding has aided transit DAVIS, ET AL., Uni- management and transit authorities in maintaining the Through Ridesharing: The Brokerage Approach. status quo and in improving the traditional fixed-route, versity of Tennessee, Transportation Center (1976). fixed-schedule transit systems. Having committed them- Hearings before Subcommittee on Surface Transpor- selves to this course of action, new changes can be em- tation, House Committee on Public Works and Trans- barrassing and threatening. Other vested interest groups, portation (June 1976) pp. 196-215. 440 F. Supp. 656 (N.D., Ohio, such as equipment manufacturers (especially bus manu- Vanko v. Finley, facturers), have a keen desire to maintain the status quo 1977). since they are tooled up to manufacture large intraurban Statement by Frank W. Davis, Jr., May 31, 1977, to the Surface Transportation Subcommittee of the House vehicles. Ironically, planning officials and planning organizations Public Works Committee. also may be considered as potential institutional barriers to Paper on Urban Mass Transit Options, Congressional the greater involvement of private enterprise in urban mass Budget Office Issue (Feb. 1977) pp. 46-47. transportation. Planners often think in terms of corridor "Urban Transportation and Energy: The Potential capacities instead of the probability of consumer utilization, Savings of Different Modes." Hearing before Senate once such a planned system is in operation. Finally, the Subcommittee on Transportation, 95th Congress, First suggestion of many small and competing transport suppliers Session, October 5, 1977. providing pieces of an urban transportation system is not Federal Register, Vol. 41 (Oct. 20, 1976) pp. 46412- nearly as exciting or challenging as the development or 46413. implementation of a large bus or rail system. "Planning Handbook: Transportation Services for the These institutional barriers should not be taken lightly, Elderly." Prepared for Administration on Aging, (Nov. 1975). and they cannot be brushed aside without proper considera- DHEW Publication # (UHD) 76-20280 tion being given in each local area in which the greater "Senior Transportation-Ticket to Dignity." Report involvement of private enterprise is attempted. What by the Subcommittee on Federal, State and Com- should be noted is that change is already evident in many munity Services of the House Select Committee on communities, but that it may be gradual. The brokerage Aging (May 20, 1976) pp. 27-28. concept presently being developed in Knoxville, Tenn., for "Transportation for the Elderly: The State of the DHEW example, has taken several years to develop, and it will take Art." Prepared for Administration on Aging, several more years to be implemented fully. Finally, it Publication # (UHD) 75-20081 (1975). should be noted that many institutional barriers previously Hearings before Subcommittee on Federal, State and mentioned are encountered only if one wishes to use Community Services of the House Select Committee UMTA financial assistance. Other sources of funds, such as on Aging (Jan. 22, 1976) pp. 12-18. the Federal Highway Administration, the Department of FORD, "An Investigation of the State and Federal Health, Education and Welfare, and state assistance do not Regulation Status of Vanpooling." UMTA-WA-l1- require cumbersome protection clauses for labor, manage- 0005-WP-51 (Feb. 1, 1977). ment, or existing public transportation systems. The small- Letter from Secretary of Labor to Brock Adams, and medium-size urban areas can react faster to their Secretary of Transportation, July 29, 1977. environment, and institutional barriers frequently are not Prentice-Hall, Federal Taxes Par. 11,425. as rigid as they may be in larger urban areas. Experiments Corn. v. Flowers, 326 U.S. 465 (1946). can take place in the smaller urban areas, and the successes H.R. 8444, 95th Congress, § 2021. can be exported to other urban areas. Given the premise Hines and Sloan, "Transportation Regulation and In- that private transit operators can fill gaps in service and novation: Dial-a-bus." 55 Minnesota Law Review that planners and decision-makers should seriously con- ( 197 1 ) pp. 461, 466-468. sider the private sector, Appendixes H through K of this McKinney's New York Law, Public Service, § 2; New report provide specific guidelines to assist an individual or Jersey Statutes Annotated, § 48:4-1. groups interested in establishing private transportation DAVIS, F. W., JR., ET AL., "Increased Transportation services. Efficiency Through Ridesharing: The Brokerage Ap- proach." University of Tennessee, Transportation REFERENCES Center (1976). JR., DOTTERWEtCH, W. W., and BURK- PEGRUN, D. F., Transportation: Economics and Pub- DAVIS, F. W., HALTER, D. A., II, "Insurance for Vanpools: An lic Policy. Irwin (1968) pp. 287-311. Analysis of Current Issues and Progress." University LOCKLIN, D. P., Economics of Transportation. Irwin of Tennessee, Transportation Center (1978) p. 21. (1966) pp. 197-207. MERRILL, "Our Unrealized Resource: Intergovern- KIRBY, ET AL., Paratransit: Neglected Options for Oklahoma Law Review, Vol. Urban Mobility. Urban Institute (1974) p. 64. mental Cooperation." U.S. Code Congressional and Administrative News 23, 1(1970). WARREN, "A Municipal Services Market Model of (1964) p. 2569. BARNUM, D., "National Public Labor Relations Legis- Metropolitan Organization." J. American Inst. of 41

Planners, Vol. 30 (1964) pp. 193-203. The seminal Federal Register, Vol. 43 (1978) p. 13, 558. economic model is by C. M. Tiebout, "A Pure Theory GILL, L., Special Mediator, memo to Secretary of of Local Expenditures," J. of Political Economy, Labor, July 18, 1975. Vol. 64 (1956) pp. 416-424. Department of Labor letter ruling on Akron, 0., "The Urban County: A Study of New Approaches application (DH-D5-4042), June 22, 1977. to Local Government in Metropolitan Areas." Harvard Department of Labor ruling on Redondo Beach, Calif., Law Review, Vol. 73 (1960) p. 526. application (CA-05-4089), March 29, 1978. BRYANT, "The Emerging Net COG." Dallas Magazine Department of Labor letter ruling on Port Authority (1972). of Allegheny County application (PA-06-0042), March "Alternatives for Managing Urban Transportation 29, 1978. Programs." Tennessee Municipal League (1976). 23 C.F.R. § 450.120; UMTA policy statement on "The Changing Environment of Urban Development paratransit services (proposed), Federal Register, Vol. Policy-Shared Power or Shared Impotence." Urban 41 (Oct. 20, 1976) p. 46412. Law Annual, Vol. 10, No. 3 (1975) pp. 9-11. Rose City Transit Co. v. Portland, 525 P2d. 1325, RENSHAW, "A Note on Mass Transit Subsidies." modified 533 P2d. 339 (Oregon, 1976). National Tax Journal, Vol. 26, 639 (1974). BARNUM, D., "From Private to Public: Labor Rela- Knoxville News-Sentinel (Aug. 30, 1977) p. 2. 34, tions in Urban Mass Transit." (1977) pp. 143, 153- ALTSHULER, A. A., "The Federal Government and 157. Para-Transit." Report to the 1975 Williamsburg Para- transit Conference, p. 27. Hearings before House Subcommittee on Surface U.S. Code Congressional and Administrative News, Transportation (Mar. 30, 1977) pp. 45-46. pp. 2583-2585. JENNINGs, ET AL., "Collective Bargaining in Mass Transit: The Southeast." DOT-D5-50116 (1976). UMTA External Operating Manual IIB-13, Item e. YUD, L., "Employer Protection Requirements in the Poviurz, "Overcoming Institutional Barriers in Spe- Urban Mass Transportation Act." Department -of cialized Transportation." Report to the 1975 Williams- Labor Policy Memorandum (1974) p. 207. burg Conference, pp. 67-69. Letter from Mr. Larry Yud, Department of Labor Letter from Mr. Robert Aex, Director of Public Trans- Division of Employee Protection, to Prof. Wickham, portation Services, Knoxville, Tenn., to Prof. Wick- July 20, 1974. ham, October 17, 1978. U.S. Department of Labor News Release 71-217 REHMUS, "Labor Relations in the Public Sector"; (Apr. 16, 1971). required in Smith et al, Labor Relations in the Public SISKIND, F., and STROMSDORFER, E., "The Economic Sector, Cases and Materials, Bobbs-Merril, (1974). Impact of 13(c)." Department of Labor ASPER GOULD, "The New York Taylor Law: A Preliminary (1978) pp. 13-18. Assessment." Labor Law Journal, Vol. 18, 323 (1967). LIEB, "Labor in the Transit Industry." Report to U.S. RAINS, "New York Public Employee Relations Laws." Department of Transportation (May 1976). Labor Law Journal, Vol. 20, 264 (1969). STERN, ET AL., "The Legal Framework for Collective MUNDY, R. A., and THELEN, K. M., "Survey of Labor Bargaining in the Urban Transit Industry." Report Issues." TC 76-003, paper presented at 1976 meeting prepared for U.S. Department of Transportation (No- of Transportation Research Board, Session 54 (1976) vember 1976) pp. 9-16. p. 15. Rochester-Genessee RTS v. ATU Local 282, 316 New MUNDY, R. A., and THELEN, K. M., "Can Urban York State 2d 325, 64 Misc. 2d 865 (1970). Areas Afford Traditional Transit Labor Contracts." Federal Register, Vol.42 (Jan. 18, 1977) p. 3319. TC 76-008, paper presented at Transportation Re- APTA letter of comment, March 25, 1977. search Forum (1976) p. 9. AFL-CIO letter of comment, April 4, 1977. Transit Fact Book (1976-77 edition).

CHAPTER THREE

ALTERNATIVE ORGANIZATIONAL ARRANGEMENTS

BACKGROUND to be developed in all urban areas over 50,000 in popu- Since the passage of the 1962 Federal Aid Highway lation as a prerequisite for federal funds, public transpor- Act, which required comprehensive transportation plans tation planning has been a continually expanding and 42

programming should be linked and that short-range plans rapidly changing field. (App. L provides a review of the federal context for transportation planning and imple- should be developed which emphasized noncapital solu- mentation.) The initial elements of the transportation tions to transportation needs. These regulations have planning process were defined as a sequential and orderly caused a noticeable shift in emphasis from long-range, flow of technical activities designed to obtain the best generalized planning to short-range, 3- to 5-year systems information possible to incorporate into a complex analy- management planning. In a transportation systems man- tical model of an urban area's travel needs. By the end agement element the major emphasis is on managing de- of the 1960s, a fairly uniform urban transportation plan- mand rather than predicting it. ning process supported by complex analytical models had As all of the preceding changes were occurring, there was a concurrent organizational shift in transportation. developed. During the late 1960s, however, this developing uniform When the federal government was solely involved in high- planning process was being challenged. New urban priori- way planning and construction, the state held the strongest ties to reduce air pollution and other adverse environ- role in transportation planning. State departments were mental impacts of transportation, combined with pressure responsible for project selection and the programming of to cease construction of transportation facilities requiring capital expenditures. Early participation from the local land acquisition and large government expenditures, re- communities involved was usually restricted to the local quired the planning process to expand to include studies professional staff. As the federal government became in- not previously performed. New federal procedures, devel- volved in public transportation planning and implementa- oped in response to this citizen outcry, required identification, federal legislation slowly changed to emphasize local government involvement. Project selection for federal tion of social, economic, and environmental effects; timely (2). New legislation involvement of other agencies and the public; a systematic funding is now a local responsibility being proposed by the U.S. Department of Transportation interdisciplinary approach; and documentation of the process used in reaching decisions. The planning process discusses giving both transit and highway grants for urban areas with a population of more than one million to the changed from the scientific and deterministic approach local governments directly, thus bypassing any state agency that had been finalized in the federal regulations of 1967 and 1968 to a more interdisciplinary, choice-oriented (3). The joint regulations also required that all state gov- approach (1). There was no longer considered to be one rational, objective, technical procedure to use in deciding ernors designate a metropolitan planning organization the one best action. The planning process's new focus (MPO) in every urban area to serve as the forum for was on identifying true alternatives and their adverse and cooperative decision-making. These regulations gave the beneficial effects for use in catalyzing constructive debate MPOs federal funding allocation responsibility. This has between all those involved. led to confusion and debate concerning where the respon- While the planning process was changing in direction, sibility for operational, public transportation systems man- the type of transportation improvement being considered agement planning should be placed. Many public trans- was also changing. The Urban Mass Transportation Act portation companies and authorities feel that operational of 1964 marked the beginning of substantial federal planning is their exclusive responsibility. The developing involvement in urban public transportation. Public trans- new approach to short-range public transportation plan- portation came to be regarded as the answer to environ- ning, which emphasizes market needs and deemphasizes mental problems, urban sprawl, and the decline in oppor- expansion of existing publicly owned traditional transit tunities for the poor, the elderly, and the handicapped. services, is further complicating this debate over the or- At the same time federal aid to transit was reserved exclu- ganizational framework for short-range planning. sively for capital purchases, with the largest portion ear- In current marketing approaches, the desires and require- marked for rail development and improvement. As a ments of potential public transportation customers are in- result, many urban areas began to consider the develop- corporated into the planning process. Instead of promoting ment of high-technology transit systems. There was an and improving the operation of a single public transporta- overwhelming concern with technology rather than service tion mode to solve an urban area's transportation problems, the new planning approach is to focus on identifying pub- policies. As substantial relief in transportation problems did not lic transportation needs or opportunities among various result from federal involvement and expenditures, and as market segments in an urban area. All possible types of the operating deficits of the publicly owned transit com- services (private as well as public) are then analyzed in panies (newly acquired with federal money) rose, the an effort to identify the best match between market seg- The issues then become: (1) federal government was forced to provide operating sub- ments and service types (4). sidies as well. With the enactment of legislation in 1974 existing public transportation authorities have traditionally enabling federal participation in subsidizing the operating developed around one mode only and may not have the deficits of transit services, there developed a shift in the expertise or the organizational support to use a marketing federal transportation emphasis from long-range, capital- approach and consider all alternatives; and (2) existing intensive planning to short-range planning or transportation comprehensive planning agencies are better able to analyze systems management (TSM). all alternatives but lack sufficient experience or training, In 1975, the Federal Highway Administration and the and perhaps inclination, for short-range planning, system Urban Mass Transportation Administration jointly issued management, or operations. In addition, they also fre- regulations that specified that transportation planning and quently have no implementation authority. 43

RESEARCH OBJECTIVES and conflict between agencies may result (6). Much of The purpose of this chapter is to analyze the efficacy the organizational confusion is a direct result of the U.S.'s of alternative organizational arrangements for market- governmental system. The United States is organized with oriented, public transportation systems management plan- three levels of government and with three branches of ning. This analysis addresses the political involvement and government at each level. All of the governmental levels related issues that should be addressed in development of and branches are given a function in nearly every govern- an organizational arrangement for short-range transporta- mental activity, including transportation. This basic divi- tion planning that will be relevant within the decision-mak- sion of governmental powers has been increased over ing environment of a specific local area. Alternative or- time by other separation of functions (7). Planning, for ganizational arrangements that currently exist or are example, was established separate from the regular oper- proposed for coordination of short-range transportation ations of local governments in order to assure that it would planning activities within a local area will also be discussed. be objective rather than political. This organizational ar- The material is presented in the context of urbanized rangement is slowly changing and planning is becoming areas with populations of 50,000 or more. Urban areas a direct governmental function, but the effects of separa- below this size are not subject to federal regulations con- tion still remain. Similarly, public transportation has cerning the 3-C planning process and TSM requirements. generally been the responsibility of more than one agency— The importance of tailoring the organizational structure some private and some public. For example, adjoining to the needs and political environment of the local area municipalities within one urban area may have separate is stressed. A few organizational structures are recom- organizations to provide public transportation service to mended, and the corresponding personnel requirements each of the separate municipal constituencies. As another are discussed. example, regulation of privately supplied public transportation is nearly always handled by a different agency from ORGANIZATIONAL REQUIREMENTS FOR THE the one involved in publicly subsidized public transporta- PLANNING AND IMPLEMENTATION OF PUBLIC tion operations. TRANSPORTATION SYSTEMS MANAGEMENT An organizational structure that permits the coordina- IMPROVEMENTS tion of competing jurisdictions and implementing agencies, while still encouraging the differentiation of services to meet Importance of Organizational Arrangements the unique needs of different consumer groups, is needed (8). This organizational structure should develop linkages Federal Requirements between policy, planning, implementation, and regulation In addition to federal guidelines concerning the type of activities (7). At the same time a central focus to manage planning process to be followed in the development of a the entire process needs to be identified. As discussed transportation systems management element (outlined in earlier, a coordinating organizational structure and a cen- App. M), guidelines have been developed that emphasize tral focus typically do not exist. It is the purpose of this the importance of organizational arrangements. In order section to develop the criteria to use in developing such to develop plans which increase the over-all effectiveness an organizational structure and identifying the central and efficiency of existing transportation resources, the fed- focus. Each local urban area ultimately must determine its eral government has recognized that TSM plans must be own criteria as well as assess the ability of its own insti- more than a collection of different projects from different tutions to meet the criteria. But the general issues in- agencies designed to improve each individual agency's volved in developing criteria for evaluating organizational transportation service. Individually prepared projects are alternatives remain the same. These issues are discussed likely to work toward opposing goals and policies. When in the following. various agencies develop projects independently, they are likely to develop duplicate, competing services (5). Political Implications of Plans for Immediate Implementation Organizational Requirements The Need for Political A wareness Within a community it should be possible to classify In spite of a growing body of literature by planning every activity in the consumer-oriented short-range plan- theoreticians and academicians stating that planners ac- ning process by the agencies and levels of government tively need to influence decision-making in order to be involved. Although planning activities and transportation effective, limited studies show that most practicing plan- services are similar from one community to another, the ners still believe that such a role is inherently unprofes- agencies and levels of government involved would be ex- sional and unethical. As a result, politicians view plan- pected to be different. Within the community each agency's ning as something that is not relevant. In the American role and responsibility should be defined, and the agency Public Work Association's survey of politicians, it was or individual ultimately responsible for the satisfactory found that elected officials considered transportation plan- completion of each activity should be clearly identified. ning, particularly long-range transportation planning, not Unfortunately, there is usually a good deal of uncertainty politically relevant. Transportation planning was viewed about agency and governmental responsibilities. This un- solely as an exercise to meet federal requirements in order certainty either leads to omission of activities in the plan- to secure federal funding. These elected officials did not ning process or to duplication of activities. Competition believe that transportation planning was a means of pro- 44 viding meaningful solutions to local urban problems (2). be tied to funding levels in the transportation improvement Transportation planning is, however, judged by its re- program have forced planning agencies to become involved sults rather than by the process used or the technical com- in political issues. Local conflicts become apparent when petence of the staff. A successful plan is one that is im- scarce funds must be allocated to projects competing for plemented and solves the problem. But implementation is implementation immediately. Agencies involved in trans- sometimes difficult to accomplish. Transportation plan- portation that may compete for the limited funds include ning recommendations based on facts and expertise will the traffic engineering office, local and regional planning not necessarily be implemented unless they are "endorsed agencies, public transit authorities, public urban development organizations, the state department of transportation, in the market-place of politics" (9). To influence endorsement of plans and recommendations, numerous social service agencies, taxi companies, private the planner needs (1) to feel the political pulse of the bus companies, airport limousine services, and the business community, and (2) to lobby for specific transportation community. Short-range plans that are very specific as to location alternatives or improvement strategies. Feeling the political pulse of the community involves can be politically sensitive. They are of greater interest continual interaction with elected and appointed local to citizens and local government officials because they decision-makers. The intent of this activity is twofold. have a definite effect on specific individuals and businesses. First, the planner should be aware of which types of trans- Specific people benefit and specific people are adversely portation alternatives can be considered politically feasible affected. A local governing body is particularly inter- or desirable for implementation and which types are ested in this type of specific improvements because it is politically infeasible. Convincing arguments can then be important for a politician to satisfy his constituency. If developed to influence decision-makers. Second, the plan- a planner is to continue to receive political support for ner can, through continuing personal communication with short-range projects, positive effects must occur within decision-makers, perform an important educational role. the election year timeframe, usually four years. The There is very little to be gained from spending large negative effects must also be handled. Many transporta- amounts of scarce planning funds on studying the tech- tion improvements will affect development rights, property nical feasibility of politically infeasible alternatives. The values, and taxes. Such projects can be very political. funds would be better spent on plans for politically feasible Short-range plans proposing any type of immediate change are also politically sensitive, because there are alternatives or on informational projects designed to encourage change in the political climate. often consumer activists fighting to maintain the system Many people do not like Lobbying for specific transportation alternatives or im- as it currently exists (10). provement strategies is necessary in order to assure that change. planning considerations are included as a basis for decision- The unwillingness (rather than the inability) of one group making. This approach is midway between the two ex- to service another category of rider; the unwillingness tremes in plan development and presentation. Twenty years (not the inability) of a group of riders to share a vehicle with another group; the unwillingness (not the inability) ago most planners used a dogmatic approach to trans- of a financial supporter to support services to a particular portation planning. One "best" plan for transportation group: These are the real barriers to effective coordina- improvements was developed and every effort was made tion of transportation services (7). to have the one plan adopted and followed. The only Short-range plans must be implemented immediately. alternative presented was to not adopt a plan. Recently, Immediate implementation requires coordination with mul- many planners have followed the opposite approach to tiple agencies and governmental levels, involves specific plan development and presentation. As many alternatives benefits and negative effects to specific individuals and as possible are analyzed and a plan for each alternative groups, and may bring immediate changes. For these is developed. The costs and benefits of each plan are pre- reasons, the actions are inherently politically sensitive, sented, but the planner does not make any recommenda- and the planning necessary to develop the actions, and tions. All comparisons are made by the decision-makers. develop priorities among the actions, is inherently involved With the lobbying approach, several alternative plans are in politically sensitive issues. Traditionally, planning and developed, but the planner also compares the alternatives implementation have been regarded as separate actions, and develops recommendations that are presented to the separated by decision-making. Short-range planning to decision-makers along with the alternatives. The lobby- effect change and impact decisions must be fused together ing approach assumes that the professional background with decision-making and implementation. Short-range and experience can enable the planner to make a valuable planning must be part of the decision-making process contribution to the decision-making process as well as leading to implementation. to the technical development and analysis of plans. There is never one "best" solution to urban problems, but professional judgment can assist in comparing trade-offs. Different Organizational Approaches to Political Involvement Short-Range Plans Require Political Involvement The proper location of the planning function to ensure The new joint federal regulations requiring that a trans- political involvement is in some doubt. it is generally portation system management element be developed and conceded that the use of an appointed planning commis- that transportation systems management recommendations sion as the final governmental body for approval of plans 45

does not always lead to implementation. Planning com- different transportation services, different providers, and missions often obscure public accountability (11). Public different levels of government must be coordinated. A interest questions should be decided within a democratic significant difficulty with this organizational arrangement framework by an elected official, not by an unrepresenta- is that it is unclear where the planning agency should fit tive, independent, appointed board (12). It is true that within the local governmental framework. Planning agen- an appointed body whose accountability is obscure is cies could report to a body composed of the chief executives more likely to act, and act favorably, on plans than an of all the interests involved, similar to existing councils of elected body whose mandate is continuously being chal- government. However, the position of the agency would be lenged (13). It has been found in the past, however, that somewhat unclear and the effectiveness of the agency in approval by the appointed planning commission of a performing its negotiator role could be hampered by the plan does not lead to implementation of the plan by other loose organizational structure. governmental bodies. With the third organizational structure, the planning Transportation authorities have evolved in a manner that agency is organized to act as a mobilizer of political in- insulates them from political issues as much as a planning fluence. This means that the agency must be organized in commission. Only a few modes are considered. Trade- a way that would permit it to develop interest in trans- offs between competing public transportation alternatives portation issues among diverse groups. Instead of only are not considered as they are beyond the scope of the lobbying for the alternative(s) the planner believes to be organizations. Within this organization, plans do lead to best for the community, the planner would need to clearly implementation but the plans are limited to only the describe and identify to the various interest groups the modes operated by the organization. Community impacts alternatives that best meet the requirements of the interest may not be appropriately considered as they are beyond group. The best organizational arrangement for a planning the agency's scope of responsibility. agency functioning as an initiator of political interest and There are three approaches to the development of influence has not been clearly established. If organized as organizational structures that coordinate planning and a staff function of a chief executive, the agency might be implementation of all public transportation services (14). hampered in developing interests in a transportation issue These three approaches are as follows: among groups and individuals who would possibly oppose The planning agency is organized as a direct staff the chief executive's position. If not organized as a staff function of the chief executive and is responsible for function of the chief executive, the planning agency may advising the chief executive. have difficulty developing the credibility necessary to The planning agency does not report to any authority develop the interest and coordinate organizations already directly involved in transportation, and is responsible for heavily involved in public transportation decision-making. negotiating between varied interests. With all three organizational approaches, the intent of The planning agency is organized to be a mobilizer the organizational structure is that the planning agency of political influence, developing interest in an issue as should be in a position to coordinate planning and imple- well as negotiating between these interests. mentation and influence the decision-making process of the local urban area. The planner would be involved in The organizational approach must suit the local area if developing interagency communication among competing it is to be effective. interest groups. The first organizational approach involves the planning body being organized as a direct staff function of the chief Criteria for the Development of Politically Involved executive responsible for implementation. The basis for Organizational Arrangements this recommendation is a well-supported theory that plan- As discussed in the previous section, there are three very ning will have a greater impact on public decisions if different approaches to developing planning to assure attached to a power center or a formal position of authority political involvement. Each of these organizational arrange- (13, 15). It is also felt that a unified organization is more ments is best suited to particular patterns of local decision- likely to be effective and to implement proposals quicker making. An urban area with a central decision-maker, or than an organization that must coordinate a large number with a powerful, central political elite, is an ideal com- of diverse groups before taking action (6). The advantages munity for the first organizational arrangement: a com- of this planning organizational structure are that the line munity-planning agency organized as the direct staff func- of authority is very clear and the role of the planner as tion of the chief executive. an adviser to the chief decision-maker is also very clear. In a community with a more competitive pattern of With the second organizational approach, the planning decision-making where there are several decision-making function is organized externally to all those organizations centers regarding transportation, the second organizational directly involved in implementing public transportation arrangement would be more appropriate. In this case, the services. The planning agency serves as the negotiator planning function should be organized and located ex- between the various organizations and provides objective ternally to all involved parties. The location of the planning advice requested or required during negotiation. In addi- agency for performance of the negotiating role would vary tion, the planner could assist in negotiations through the from community to community. If the only thing the vari- proposal of compromise recommendations. This organi- ous organizations involved in providing public transporta- zational structure is recommended when a large number of tion services can agree upon is that they do not want 46

it to be stated in legislative and administrative statements intervention in their affairs by the local chief executive, the planning agency should not be organized as a staff func- and from a general reading of public opinion. The planners must advocate the views of all the tion of that chief executive. The planning agency, in this case, could be the planning commission staff or a division diverse interest groups in a community, not just the majority. The planner should attempt to identify the diverse of a council of governments or state government. Each community would have to determine the best local organi- interest groups and, in working with these interest groups, zational arrangement for the negotiating role. advocate their interests. In a community with a very fragmented system of There is, perhaps, no one correct view of the proper decision-making where there are no clear lines of authority role of objectivity in planning. This is an ethical issue drawn and it is easier to prevent action than to initiate or that must be decided by each planner. Unfortunately, the sustain it, coalitions of interest groups in support of an three positions for the planner are not necessarily inde- alternative must be developed if action is to be taken. In pendent of one another. A community may, in fact, view this case, the third organizational arrangement would be the planner as representing all three positions, a difficult if appropriate. Like the second, the third arrangement is not impossible task. Regardless of the planner's position on difficult to locate within the organizational framework objectivity, however, the planner must have integrity. of a local community. The organization should not be a Whether supporting community policy, interest group division of any of the interest groups or agencies involved views, or personal judgment, the planner must use sound and should be able to gain the respect of those involved. planning techniques and impartial evaluation measures. In developing the organizational framework for market- It is the recommendations that may vary. oriented short-range transportation planning, the potential Each of the three approaches to planning objectivity is political role of the planning function is of prime im- most appropriate for different types of political involve- portance. If the market-oriented approach is to direct ment. Independent judgment can be appropriate in negotia- ultimate decisions, the organization involved in applying the tions. The planner's role in this case is to provide objective consumer-oriented approach must also be involved in the assessment of issues seen by the competing interests. De- decision-making process. it may seem ideal for the orga- pending on the desires of the local chief executives, inde- nization involved in the market-oriented planning process to pendent judgment or independent judgment within local have the ultimate authority in making decisions. This is not policy confines may be appropriate if planning is a direct always possible and may not be desirable if there are staff function of the chief executive. Advocating the restraints within the organization on the type of modes that interests of individual groups is an appropriate approach if can be considered or the diversity of other organizations the planning function must be involved in the development that can participate. However, if the negotiating role is the of new competing interests. role that the organization must play in a local area, there must be assurances made that the people in the organiza- Role Definition is an Organizational Requirement tion are perceived as being the equals of all who are involved in the negotiations. The agency from which they In developing an organizational structure for short-range operate should be securely funded. The individuals should transportation planning, the debate over objectivity in be professionals and the activities and responsibilities of the planning should be recognized. If a local area desires inde- organization should be clearly defined. The organizational pendent judgment in its planners, with the intent that these arrangement should be acceptable to all interest groups. planners' statements be relied upon as unbiased, accurate, Good communication channels between all institutions in- and objective, this should be made clear in the develop- terested, as well as involved, in public transportation should ment of the organization. If, on the other hand, the local be established. urban area desires a planner to stay within the confines of legislative and administrative policy determination, this Objectivity Required in Public Transportation should be made clear. Or the local area may wish to Planning develop a planning agency in which planners are assigned the responsibility of advocating the views of diverse interest The Debate Over Planning Objectivity groups. The local view concerning objectivity should be Objectivity in planning is a long and much debated issue. articulated to assure that planners with the same ethical During the first decade of this century it was clearly under- view are employed. stood by all that planning was to be completely independent and objective. In recent years, there has been a great deal Geographical Scale of Public Transportation Services of debate about the proper objectivity of planning. There are essentially three positions: Geographical Scale Public transportation services can be provided on three The planner must exercise independent judgment. geographical scales. The service can be provided regionally, The planner must give his client his/her best judgment citywide, or at the neighborhood level. The geographical even though the client might be offended and the advice scale of the public transportation service refers to the scale not followed (16). on which the service is organized and controlled. For The planner works for the public interest, as declared example, citywide service is controlled by an organization through the democratic process of elections. The planner at the city level. The citywide service may, in fact, extend should support that public interest as he or she understands 47

beyond the city boundaries, but this would normally be Administrative effectiveness refers to development of a done through joint agreements with adjoining jurisdictions. central control for transportation services with adequate legal and geographic scope, adequate management capa- Debate Over Scale of Services bilities, and adequate flexibility to deal with the various organizations and governments involved in public trans- The current view about the scale of public transportation services is that urban public transportation is a regional portation. Although many have argued that administrative effectiveness is best accomplished with a regional body, this issue requiring a regional organizational structure and a regional perspective. This view is supported by federal is not always the case. Administrative effectiveness is more directly related to individual abilities and personalities legislation. It is, however, not without debate. The two than it is to organizational structure. counter arguments over the scale of public transportation services are: Comnmnunity impact refers to the impact of the services themselves. Services that focus on the individual neighbor- I. Public transportation must be planned for and pro- hood and have only a minor impact on surrounding com- vided in a politically accountable manner. The service must munities or on the performance of other services are gen- be provided as a function of an elected government that erally considered to be municipal or neighborhood in scale. is generally not regional in nature. Services that have a redistrjbutjve effect or that involve 2. Public transportation is fundamentally an individual regulation of other services are generally considered to be or neighborhood problem and only in limited circum- larger than local in scale. stances, such as along highly traveled corridors, is trans- These five criteria should be used in determining the portation a regional issue. Because it is a neighborhood proper scale of the public transportation services needed or problem, public transportation service should be decen- provided in an urban area. It may not be possible, prior tralized to local neighborhood organizations for neighbor- to the initiation of the market-oriented planning process, to hood control. determine if economic efficiency can be provided at a regional scale, if equity is a local issue, or if any particular Criteria for Determining the Appropriate Service Scale organization has adequate legal authority or management capability to provide the services that are planned.. For this There are five criteria generally used in determining the reason, the scale for provision of public transportation proper geographical scale for the provision of public services should not be the prime criterion for determining transportation services. These five criteria are (1) eco- proper organizational structure for short-range market- nomic efficiency, (2) equity, (3) political accountability, oriented transportation planning. The organizational struc- (4) administrative effectiveness, and (5) community ture proposed should be flexible enough that if these issues impact. do turn out to be important, the organization can be modi- Economic efficiency can be measured in two ways: (1) fied to provide service control at the proper scale. The economies gained by central management, and (2) econ- proper geographical scale for the market-oriented short- omies realized through capital savings. Economy of scale range planning process should be the scale that allows the may be realized by combining services and providing them planner to analyze the needs and desires of all population at a larger scale, although this cost can be offset by costs segments. However, locating the planning function at one involved in coordinating agencies. Capital expenditures geographical scale should not predetermine the scale for may be reduced by combining services, however; if labor providing the service, or vice versa. is a larger percentage of the cost of service than capital, there is only a small savings realized by combining services. Relationship Between Operational Transit Planning It is also possible to increase costs by combining services. and Market-Oriented Short-Range Public It is important to note that savings might accrue additional Transportation Planning costs in other areas and this should be considered. Equity refers to equalization of services and the cost of Relationship Between Short-Range Planning and services between jurisdictional areas. It is possible, how- Operational Planning ever, that equal services should not be provided if those Clarifications of planning responsibilities and of relation- jurisdictions have different transportation needs. Equaliza- ships between operating agencies and planning agencies tion of service is not necessarily desirable and regional are some of the major problems facing any organizational scale for the purpose of equity is, therefore, also not arrangement for short-range transportation planning. Some necessarily desirable. authors have claimed that the traditional role of the planner Political accountability refers to the ability of citizens, has become that of a public transportation manager because through their votes, to influence and determine decisions the planner is now involved in making decisions with concerning transportation services. The organization must respect to service alternatives and implementation (17). be responsive and ready to comply with the desires of the If the role of the planner has changed to that of the citizens. This is generally best accomplished through manager, there is an obvious conflict with the existing local elected governmental structures. Accountability can, how- managers of public transportation services. Short-range ever, be built into most organizational structures through transportation planning does involve activities that are budget controls, referendum requirements for major much broader than those being considered by the current changes, operating limitations, etc. public transportation manager. The activities of the short- 48 range public transportation planner might include car- approach, it is possible that the market-oriented short-range pooling, vanpooling, company work buses, private bus public transportation planning process could be housed operations, subscription commuter bus operations, em- within the marketing division of the public transportation ployer incentive programs, contract service for social agency. The public transportation agency would need to service agencies, tour bus service, shared-ride taxi service, be unbiased and give fair consideration to all modes. airport ground transportation service, computer trip aggre- It should be recognized that in areas where the existing gation service, regulatory reform, insurance reform, park- agency does not have a market research or consumer ing/pooling coordination, driver training programs, small orientation that the relationship between planning and business counseling, social service transportation, shared- management could initially be one of competition. The expense programs, loan guarantees, technical support, how- planning agency should strive over time to develop a to-do-it handbooks, traffic management, user subsidies, team relationship. auto-free zones, signing and information programs, and other activities (4). Obviously, these activities are broader Relationship of Short-Range Public Transportation than those being considered by the managers of modal Planning and Long-Range Planning and agencies. In addition, preference cannot be given to one Traffic Engineering transportation mode over another as is usually done by cur- Relationship with Long-Range Transportation Planning rent public transportation managers. With regard to the development of improvements to A review of transportation systems management plans during their first year of development revealed that short- existing public transportation services, there is, however, some confusion about the relationship between the planning range planning as expressed in the transportation systems management element was perceived as being separate from and implementing agencies. For example, which agency The only relationship perceived should determine service levels or actual route configura- long-range planning (19). between TSM and long-range planning was some evaluation tions? It has been suggested that the planning agency should subcontract with the manager of the implementing of the TSM plan, once produced, to assure its consistency with long-range plans. There is a definite relationship agency regarding these types of issues (18), because operating agencies often need incentive to implement sug- between long- and short-range plans; each plan can complement the other. It would be unlikely that an accumula- gested improvements. Operating agencies are capable of implementing improvements they plan themselves. If each tion of short-range projects developed over many years would produce the most desirable long-range transportation operating agency plans its own improvements, however, it system. There should, therefore, be some attempt when is difficult to consider trade-offs between improvements that developing short-range projects to consider long-range involve different organizations. Also, operating agencies tend to base their operational plans on the eligibility criteria system plans. It should be remembered, however, that long-range plans are not necessarily fixed. A long-range for funds, traditional design standards and rules of thumb, and political pressure from consumer groups. This may not plan "bought" by a given group of elected officials may be "sold" by another group of elected officials after an always result in a completely market-oriented project. election. In development of long-range plans, the use of short- Criteria for Defining the Relationship Between Short-Range range improvements should also be assessed. Long-range Planning and Operational Planning plans can no longer be highly capital-intensive. Short-range Defining the relationship between short-range planning improvements may in some cases be alternatives to major and operational planning should be based on local decisions capital investments and, in all cases, will supplement capital concerning the best approach for assuring that a market- investments (20). Short-range plans are intended to better oriented project is developed and implemented. Many manage existing resources (existing public transportation modal organizations are already heavily involved in market- services and existing highway facilities) to assure that they ing research using a market-oriented approach. These are utilized fully. Capital improvements are justified only agencies should be utilized in the short-range planning of if the existing transportation system is fully utilized. The improvements to existing services. In areas where the most critically needed new elements of a future system can transit operating agency is not willing to accept the market- be identified only with improved management of existing oriented planning approach, the planning agency must take elements. the lead in short-range planning and encourage implemen- There should be a close relationship between the long- tation by setting benchmarks for transit operating efficiency, range and short-range transportation planning processes. monitoring improvements, and implementing budget con- Decisions within each process can effect decisions within the trols (5). other. Effective management of existing elements provides A team relationship could be developed between man- a better long-range outlook. agers and planners in areas where the existing operator is favorable to the market orientation approach. The planner Relationship with Traffic Engineering should recognize the greater experience of the manager A large percentage of current transportation systems on traditional transit operational matters. If the modes management plans includes traffic operation improvements being considered by the public transit managers can be and other projects requiring traffic engineering expertise. broadened to include all modes, and if the current man- Many of these projects relate to improving the speed of agement is favorable to using the market-oriented planning 49

public transit service (21). This is not, however, the only and land use combined help to develop the spatial pattern reason for developing a relationship between short-range of the metropolitan area. Short-range transportation im- public transportation planning and traffic engineering. The provements are directly affected by the existing spatial form traffic engineer should be interested and involved in all of an urban area, but they scarcely affect land use in return. types of public transit improvement, including paratransit Land-use planning can reduce travel needs by locating improvements, because these improvements could be the origins and destinations close together. safety valve between the demand and the supply sides of Transportation and land use affect each other at the transportation. Current improvements may give the time neighborhood scale by influencing activity location deci- needed to increase the supply of highways (4) or prevent a sions. Shopping centers, businesses, apartments, residences, shortage from developing. In addition, the traffic engineer schools, and the like may be located in a neighborhood could be an asset in the short-range public transportation because there is easy access to that neighborhood. An process because of his knowledge of both the transportation apartment complex for the elderly would probably be system and the political decision-making process for trans- located near or on a route of the traditional bus transit portation improvements. Professional relationships be- service, for example. On the other hand, neighborhood tween transportation planners and traffic engineers should characteristics may prevent or induce the provision of be developed at the local level. transportation service. It is at the scale of an individual establishment or land Organizational Criteria parcel that the major interaction between short-range There is a definite relationship between short- and long- transportation planning and land-use planning is most range public transportation planning and traffic engineer- evident. Short-range plans are specific enough to determine ing. This relationship should be reflected in the organiza- the affects of improvements on particular parcels of land. tional arrangements developed in a local area. Long-range At this scale, it is possible to identify those land-owners transportation planning agencies and traffic engineering who will benefit and those who will not. Also, at this scale agencies, including those at the state level, should be it is possible to show whether or not land-use decisions will included among the institutions to be involved in the impact transportation. For example, if urban renewal process. The close relationship between short- and long- replaces a high rise business complex with a park, there range planning and traffic engineering does not necessitate may be an immediate negative effect on public transporta- that those activities must be housed within the same tion. Perhaps the most politically relevant issue, though, is agency. the impact of short-range public transportation improvements on land and buildings. As long as increased demand Relationship Between Short-Range Public Transportation is served, whether by highways or increased public trans- Planning and Land-Use Planning portation, land values are generally increased. However, Land Use- Transportation Interrelationship if demand-managing measures are taken (for example, Transportation and land use affect each other at three tolls assessed on roads in order to force people to use different geographical scales: (1) metropolitan, (2) neigh- transit), land value may be reduced by its limited accessi- borhood, and (3) parcel (22). The metropolitan form of bility. Because short-range transportation solutions must an urban area is the result of individuals and businesses consider demand-managing methods as well as demand- choosing and compromising between locations that are serving methods at the parcel level, a very close relationship considered best for their particular land use and locations between land use and transportation planning should be developed. with the most economical transportation systems for their needs (22). The development of the autothobile gave Because both land use and transportation planners must individuals the flexibility to consider more locations for utilize the same general type of data, there is a need for their desired land use than was possible with fixed-route coordination of data between the two planning interests. public transit services. This allowed decentralization to Unfortunately, in many urban areas land use planners and occur. Some authors argue that if flexible public transpor- transportation planners have developed different data col- tation services (such as, jitneys and shared-ride taxis) had lecting, analyzing, and reporting procedures. Data are been allowed to develop rather than being regulated in an often summarized at different subunits and are frequently effort to preserve fixed-route public transportation services, not compatible for comparison. Sometimes assumptions the automobile would not have changed travel patterns so made in collecting data have not been documented. substantially (4). Regardless of whether this argument is true or not, it is generally conceded that in urban areas Organizational Criteria with considerable central city decentralization, transporta- There is a definite interrelationship between land-use tion systems can only serve, not reverse, the decentralization planning and short-range transportation planning at the trend (7). However, the urban community can no longer parcel level. There also is a need for sharing data between afford to settle for growth patterns simply because tech- land-use planners and short-range transportation planners. nology happens to make them possible (23). It is now These two relationships should be considered in the devel- necessary to consider land use actions that may change opment of an organizational structure. Land-use planners transportation patterns. For example, integration of hous- must explicitly be included within the organizational ar- ing with employment centers would make a substantial rangement. They need not, however, be housed within the contribution to reducing peak-hour traffic. Transportation same agency. 50

Technical Expertise Required for Short•Range to these policy activities are public management, political Public Transportation Planning science, labor law, urban economics, and transportation law, as well as disciplines that help improve an individual's General Knowledge and Skills Required ability in group interaction. There is a wide variety of skills required to perform The market research activities refer to those activities short-range public transportation planning. The planner involving population group surveys, prediction of popula- must be able to write well, synthesize a wide variety of tion group responses to public transportation systems, and information, and understand the limitations of various evaluation of systems once implemented. Technical dis- transportation planning methods. The transportation ciplines that relate to the market research activities are planner must be able to work with new data, be able to those that deal with understanding the behavior of indi- draw samples, develop data from interviews, and analyze viduals and households. These include tatistics, market new data. Transportation professionals must have expertise research, computer modeling, and general knowledge of in the performance and characteristics of various forms of marketing, psychology, sociology, and computer science. public transportation, and must understand the interaction The public transportation service design activities in- between transportation, land use, and society. The volve designing systems to meet market preference, deter- planner must also be able to make decisions concerning the mining the viability of systems, and analyzing the cost and need for implementation. Finally, the new transportation community impact of systems. The disciplines that relate planning process is not only multimodal, it is interdis- most to this activity are those dealing with transportation ciplinary. A transportation planner must be able to develop technology, cost analysis, and design. These disciplines in- links between the physical, social, and economic disciplines, clude transportation engineering, economics, accounting, as they apply to transportation. systems analysis, environmental sciences, sociology, operations research, and computer science. In addition, a designer must be aware of management and labor problems Political Expertise Required of the Planner as they affect transportation design. The planner must be knowledgeable about the many The transportation engineering expertise is a necessity. diverse agencies and governmental levels that can be in- It should be available to the urban areas and the urban vólved in the transportation planning process and be able area should not have to develop it. Continual updating to ascertain who the individuals with political power or of the data base is important. This can only be assured by influence over transportation decisions are within the local having professionals involved in short-range transportation community (14). The planner must not only be tech- planning maintain currency in their field. nically competent to produce good plans and provide rele- The market-oriented short-range planning process re- vant analysis, but the planner must also be able to translate quires skills from a variety of disciplines. These skills can plans and analysis into terms understandable within a be developed through both advanced education and ex- political context, highlighting the decisions implied in each perience. One individual will not possess all skills. Within plan, particularly with regard to the benefits and adverse the transportation planning organizational structure all effects each plan has on various interest groups. More disciplines should be incorporated and integrated. importantly, the planner must be respected for his or her professional competence and judgment. In addition, the Sum mary politically involved planner, must understand his or her Classification by Activity biases, limitations, and strengths. The planner must be able and willing to learn and understand others' points of view, Within one community, it should be possible to classify and be able to live with conflicts, bargaining, compromise, every activity in the market-oriented short-range planning and defeat (24). A planner involved in political action process by the agencies and levels of government involved. is "accepted or rejected as much for the person that he The lead agency for each activity should be identified, is and the manner in which he conducts himself as for and the extent of agency involvement should be defined. the role assigned to him" (24). The planner, therefore, The organizational framework for the market-oriented must possess skill in social interaction, group dynamics, short-range transportation planning process is not neces- communication, and community organizing. The planner sarily development of an organizational structure for one must be able to persuade, motivate, coordinate, and build agency; interagency relationships must also be defined. consensus (13). Table 3 gives one method of displaying agency roles and interrelationships. Specific Educational Disciplines Required by the Market-Oriented Planning Procedure Specific Criteria The specific educational disciplines required by the Several issues have been discussed here that impact de- market-oriented short-range public transportation plan- velopment of an organizational structure for short-range ning procedure can be divided according to the major public transportation planning. The criteria developed in divisions of the process. Policy activities generally refer this discussion are summarized as follows. to those activities involving political interaction, public Political Involvement. There are three organizational policy formation, transportation regulation, and labor is- approaches for assuring that planning is relevant to the sues. The technical disciplines that most directly relate local decision-making process. Each approach is suitable 51

to a particular political atmosphere. If there is a central TABLE 3 executive who has the power to implement all possible AGENCY ROLES IN MARKET-ORIENTED public transportation improvements, the planning should SHORT-RANGE PUBLIC TRANSPORTATION be a direct staff function of that executive. If there is no PLANNING central political power, the planning function should be neutral to the competing interests. The planning agency's Market Research Public Transportation role in this case, can either be to broker existing compet- Service Design ing interests, or to advocate competing interests in an attempt to develop a coalition of interests that can then negotiate a consensus. Agency 1 Leadership Staff support Objectivity. A local area must decide the degree of Agency 2 Comment independent judgment it desires from the planning process. Leadership The planner can (1) exercise completely independent Agency 3 Approve or Adopt Approve or Adopt judgment, (2) exercise independent judgment within the local policy confines expressed in legislative and admin- Agency 4 Comment Staff support istrative statements, or (3) advocate the interests of individual interest groups, with professional judgment based on the clients' interests. Different degrees of objectivity may be appropriate for different activities or different a variety of disciplines. Specific disciplines include political agencies. The local view should be articulated in order science, labor law, urban economics, transportation law to assure that planners with appropriate views on objec- and regulation, statistics, market research, computer sci- tivity are employed. ence, psychology, sociology, transportation engineering, Geographical Scale. Public transportation services can economics, accounting, systems analysis, environmental be planned and provided at three different geographical sciences, sociology, and operations research. A successful scales. The criteria to use in determining the proper geo- organizational framework must incorporate individuals graphical scale for the provision of transportation services from these varied disciplines. For the organizational frame- are: (1) economic efficiency, (2) equity, (3) political work to work, these individuals must develop respect for accountability, (4) administrative effectiveness, and (5) and knowledge of the other disciplines. "As long as nego- community impact. The appropriate geographical scale for tiations are approached with feelings of disdain for or provision of transportation services is not necessarily an fear of other professions . . . successful negotiations are important factor in determining the geographical scale of unlikely" (7). planning activities. The planning organizational framework should be flexible enough to allow for provision of ALTERNATIVE ORGAN IZATIONAL STRUCTURES FOR transportation services at different geographical scales. THE PLANNING AND IMPLEMENTATION OF SHORT- Operational Planning. Market-oriented short-range pub- RANGE PUBLIC TRANSPORTATION IMPROVEMENTS lic transportation planning is not the same as operational Alternative Organizational Arrangements planning as performed by current public transit managers. Market-oriented short-range planning involves a wider Substate Agencies Commonly Involved in Planning variety of modes and activities. If the existing public or Providing Public Transportation transportation service follows a market-oriented approach in the development of new services, a team relationship The organizational framework for planning and provid- should be built between the planning agency and the ing public transportation services (i.e., fixed-route, de- operating agency. mand-responsive, taxi, charter, etc.) in most local urban Long-Range Transportation Planning and Traffic En- areas can best be described as polycentric. There are gineering. Long-range transportation planning and traffic generally numerous agencies and levels of government in- engineering agencies should be incorporated as participants volved with no central control. Cities, counties, and regions in the short-range transportation planning organizational that have been granted the authority to regulate and oper- framework. They need not be housed in the same agency ate public transportation services have allowed this author- as the short-range planning group. ity to become fragmented through the establishment of Land Use and Transportation. There is a definite rela- numerous boards, commissions, and agencies. Each sep- tionship between short-range transportation planning and arate organization is responsible for only one portion of land-use planning. The land-use planning agency should the entire public transportation system. "The sheer num- be a participant in the short-range transportation planning bers, levels, and conflicting goals of the various planning process. They need not be housed in the same agency as and management organizations present an almost ludicrous the short-range planning agency. framework for the provision of a consumer-oriented service in a dynamic, changing marketplace" (10). Transportation agencies can be classified by geographical Personnel Requirements scope (substate regional, county, city, neighborhood), The market-oriented short-range planning process re- transportation function (planning, implementing, regulat- quires planners with political and communication skills, ing), primary agency interest (transportation, nontranspor- empathy and social understanding, and technical skills in tation), and agency membership (elected and appointed 52 officials, citizens, transportation professionals, nontranspor- The joint regulations issued by FHWA and UMTA on tation professionals). This discussion is categorized by September 11, 1975, to supersede the policy and procedure geographical scope. Appendix N contains a discussion of memorandums issued earlier by FHWA, required that the each agency type. governor of every state designate a metropolitan planning organization (MPO) in every urban area in the state. The MPO is intended to "provide a forum for cooperative Common Organizational Arrangements to Coordinate decision making by principal elected officials of general Substate Agency Involvement purpose local governments" (27). The MPO "in cooper- A number of organizational arrangements have devel- ation with the State and with publicly owned operators oped in local urban areas to coordinate agency involve- of mass transportation services, is responsible for carrying ment in transportation planning, implementation, and out the urban transportation planning process" (27). regulation. The most common organizational patterns While the regulations recommended that the MPO be the are: A-95 review agency, it did provide for other agencies to be designated and this has occurred in many areas. A Cooperative decision-making policy committee or number of different organizational forms for MPOs are MPO designation. currently being used. Some urban areas have designated review Project review and communication (A-95 either a regional or local agency as the MPO. Other process). urban areas have designated a committee composed of Interloal agreements and contracts. elected officials as the MPO, with either a regional or Interagency agreements and contracts. local agency being appointed as the MPO staff. In the Transfer of functions to regional agencies or counties. first case, the MPO is an agency with the responsibility The first two organizational patterns are required by fed- of mediating disputes between local elected officials and eral law for urbanized areas in excess of 50,000 population. agencies involved in providing transportation. In the These arrangements can be useful in coordinating agency second case the MPO is the forum of these interests and activities if supported by local governmental officials and a decision-making body. the agencies involved. They can also be largely ceremonial Project Review and Communication. The A-95 review and contribute very little to coordination. The second two process was established by federal law in order to assure organizational patterns are cooperative arrangements that that there was a local central review of all projects receiv- are formalized. These cooperative arrangements can work ing federal funds. This agency is also charged with com- very well and there is a school of thought that considers municating with agencies about projects that relate to the these arrangements economically superior to the transfer agency's activities and responsibilities. Federal law requires of functions to areawide jurisdictions (25). The arrange- that all applications for federal funding of local projects ments are, however, easily terminated by the action of be reviewed to determine if they are consistent with re- one of the parties. The last organizational pattern is gional development objectives to avoid duplication. permanent. This organizational pattern usually involves interlocal Agreements and Contracts. Almost all local a vote of the electorate or state legislature both to estab- governments are enabled by state legislation to cooperate lish and to dissolve. informally for the purpose of providing transportation Cooperative Decision-Making. The two predominate services, and to formalize these cooperative relationships forms of cooperative decision-making are the policy com- through interlocal agreements and contracts. Most local mittee and the metropolitan planning organization. governments can also contract with other levels of govern- Many urban areas use a policy committee, technical ment for services to be provided to them. Frequently these coordinating committee, and citizen's advisory committee techniques can prevent conflict (7). One form of interlocal structure to assure cooperative decision-making. This agreement is the tariff association, where tariffs are jointly organizational structure was established in response to the collected and distributed. This is suitable where adjoining FHWA Policy and Procedure Memorandums that estab- municipalities have transit lines making end-to-end con- lished the 3-C planning process. These memorandums re- nections (28). quire that every urban area develop an organizational struc- Interagency Agreements and Contracts. Interagency ture to assure cooperative decision-making by local elected agreements and contracts are usually allowed between officials, and a forum for both technical/professional input agencies of the same government. A special form of this and citizen input. The policy committee is typically com- technique was authorized by the Joint Funding Simplifica- posed of the most influential elected officials (mayors, tion Act of 1974 for federal aid programs. Under this chairmen of state legislative delegations, county commis- act, federal aid programs from different federal depart- sioners, and city council members), principal appointed ments and agencies can be awarded to a local agency by officials involved in transportation, representatives of the a single contract based on a single integrated work pro- state department of transportation, and appointed officials gram. This technique is designed to reduce duplication of (7). from agencies with interest in transportation (land-use services and assist in the integration of programs planning, housing and urban development, environmental Interagency agreements and contracts have been used in protection, etc.). The policy committee may be given developing cooperative arrangements among social service direct decision-making authority or it may be solely ad- agencies for transportation of social service clients. Inter- visory (26). agency agreements to pool and exchange vehicles could 53

be developed between all providers including private pro- ing, approval of federal funding, carrier regulation, and viders if all parties sign the agreement (28). system planning. The region would also have responsi- Transfer of Functions. Transfers of functions are usually bility for other state functions (such as industrial develop- permitted between departments, between cities and coun- ment activities, land use control activities, etc.). Admin- ties or regions, and between local governments and the istrative devolution of national power has been tried in state. They are used to place similar functions within the both Wales and Scotland, and proposals have been made same organization, or to move a function that has become to expand it to all the regions of Great Britain (30). This too large for the unit administering it to a larger govern- has not been tried in the United States. mental unit (7). The function can be directly transferred, Regional Federated Government. A regional federation complete with all responsibilities and authority for pro- is a formal two-tier governmental system. A regional gov- gram development, operation, and financing; or the oper- ernment is a new level of government with clearly de- ational responsibility can be transferred with policy con- lineated areas of responsibility. It performs functions for trol maintained by the original agencies through regulation and in conjunction with the lower tier governments, which and intergovernmental financial aid (29). One transfer of are the general purpose governments (city and county) functions has been for one or more municipalities to trans- that existed prior to establishment of the federation. Some fer the operation (or the operation and financing) of a functional responsibility, fiscal power, and personnel re- fixed-route public transit system to a regional transporta- main with these previously existing local governments. The tion authority. regional tier of governments is controlled by an elected body. The elected body may, or may not, consist of Metropolitan Governmental and Organizational officials who hold concurrent elected office with the lower Reform Alternatives tier governments. The only U.S. experience with the two- In addition to the common organizational arrangements tier federated government approach has been in Miami- that have developed to coordinate agency involvement in Dade County, Fla. (29, 31, 32). transportation planning, implementation, and regulation, Unified Regional Government (Consolidation or Annex- there have been a number of governmental and organiza- ation). One level of general purpose government can be tional reforms proposed that have had only limited use established for a region through the merger of two or to date. These proposed governmental and organizational more general purpose governments (county or city) into reforms are: one consolidated government, or through annexation of Administrative devolution of state powers. surrounding lands and communities by a central govern- Regional federated government. ment. Consolidation of local general purpose governments Unified regional government (consolidation or an- usually requires obtaining favorable election majorities in nexation). each of the local governments involved in the consolida- Regional council of governments with expanded tion. Annexation generally requires that the majority of power and responsibilities. the people in the territory to be incorporated approve the action (32). In either case, existing governing bodies In addition to the foregoing proposed reforms, there has cease to exist and are replaced by a unified body. All of been continued interest in the expanded use of the follow- the local government functions are assumed by the unified ing two organizational alternatives: body. There are four major examples of governmental Administrative decentralization of a state department consolidation in the United States: Baton Rouge, La.; (district). Nashville-Davidson County, Tenn.; Jacksonville-Duval Regional transportation authority. County, Fla.; and, Indianapolis-Marion County, md. (31). Each of these six organizational alternatives are considered Annexation to form metropolitan governments has been governmental reforms because they involve the develop- mostly confined to medium-size and small urban areas, ment of a new regional level of government (either general such as: Oklahoma City, Phoenix, Mobile, San Antonio, purpose or special purpose), or the development of an Charlotte, and Amarillo (32). agency that has nearly the same powers as a regional level Regional Council of Governments with Expanded Pow- of government. Local powers are shifted to the regional ers and Responsibilities. The Advisory Council on Inter- level of government. All of these organizational structures governmental Relations (ACIR) has recommended that are also considered to be permanent changes because they the powers of existing regional councils be strengthened involve new state legislation and, possibly, a vote of the in order to deal with regional issues that cross local political electorate to establish or dissolve. jurisdictions. They recommend that in addition to pres- Administrative Devolution of State Powers. With admin- ent planning, project review, and advisory functions, the istrative devolution of state powers, state authority and regional council serve as the policy board for multijuris- responsibility (as established by the state constitution) are dictional special districts. In this case, the officials serving conferred on a regional level of government. The chief on the Regional Council of Governments governing board executive of this regional level of government is an ap- could control the activities and services provided by the pointee of the state governor. The executive would be special districts. They recommend that the council be responsible to the governor and the state legislature. The given the authority to negotiate differences between state region would handle all of the state's involvement in the and local programs that conflict. They also recommend region's public transportation services, including state fund- that the council be enabled to assume direct operating 54 responsibilities, with the concurrence of local governments. authority are decentralized to the neighborhood level con- ACIR further recommends that state legislation allow for sisting of a council composed of neighborhood residents. the conversion of regional councils into regional general Political Decentralization. New autonomous levels of purpose units of government if so desired by local govern- government can also be developed at the neighborhood ments (33). level. These units of government may have taxing powers Administrative Decentralization of a State Department and the power to hire their own personnel. The neighbor- (District). The district is a regional division of a state hood can incorporate. This new lower tier of government agency that has administrative or service provision respon- would have responsibility for those neighborhood govern- sibilities. It is composed of professional personnel who mental functions; this could include neighborhood public are responsible solely to the parent state agency. District transportation service. highway offices are found in most states. One district office may handle more than one urban area. Connecticut Summary of Organizational Alternatives has transit district offices that provide transit service. A Table 4 lists the regional and local organizations com- regional transportation district could be established as a monly involved in planning, regulating, or providing public division of a state department of transportation to offer transportation services in a local area. Frequently these all services that are available from the state department agencies have overlapping responsibilities and provide dup- of transportation, including development of federal grant licate services. Several organizational arrangements have requests, planning, regulation, and implementation. been discussed in this section for the reduction of over- Most of the govern- Regional Transportation Authority. lapping responsibilities among regional and local agencies. mental and organizational reform occurring in urban areas Some of these arrangements involve formalizing coopera- has been in the form of establishing regional transportation between different governmental bodies and agencies. tion authorities. This organizational arrangement is dis- Some of the arrangements involve more substantial gov- cussed in Appendix N. Some regional transportation ermental reorganization and reform. These organizational authorities are powerful agencies with direct powers for alternatives for local and regional governmental coordina- implementing services and securing funds other than (ion are given in Table 5. through levying taxes. The enabling legislation establishing a regional transportation authority may be broad enough Strengths and Weaknesses of Alternative to allow the authority to be involved in all forms of urban Organizational Arrangements public transportation, including the regulation of private forms, such as taxis, and the contracting for services, such Specifying the Organizational Framework for as might be done with private bus companies. Market-Oriented Public Transportation Planning There are advantages and disadvantages associated with Decentralization as an Organizational Reform all forms of nrganizational arrangement. Each local area Alternative must decide the organizational arrangement that best meets Some think that transportation is an individual and local needs for coordinating short-range transportation neighborhood problem, not a regional problem. The belief planning, implementation, and regulation. This research is that there should be public transportation services de- has developed a process that assures that short-range pub- signed to serve neighborhood needs, and these services lic transportation improvement recommendations are should then be connected to each other by the regional based on market segment needs. The organizational re- system. These neighborhood services are then recom- quirements for planning and implementing short-range pub- mended for neighborhood control. Perhaps the best ex- lic transportation improvements have also been discussed. ample of a neighborhood service that operated under The alternative organizational arrangements for coordina- neighborhood control is the service for the elderly in tion of public transportation services, which were previously Buffalo, N.Y., which is no longer operating because of described, can be evaluated according to the degree to lack of funding (7). which they meet the organizational requirements and can There are three methods for decentralizing governmental be utilized in the market-oriented planning process. functions to the neighborhood level: (1) territorial de- Each of these activities within the market-oriented short- centralization, (2) administrative decentralization, and (3) range planning process can be performed by different agen- political decentralization (34). cies and levels of government. The organizational arrange- Territorial Decentralization. With territorial decentral- ment adopted within a local area should identify which ization, the local general purpose governing body develops agency and level of government is involved in each of the organizational arrangements for gathering citizen feedback activities. The lead agency for each activity should be within the neighborhood. Agency meetings are held at identified and the extent of agency involvement should be locations within the neighborhood. Either citizen complaint defined. Each of the activities need not be performed machinery, ombudsman, or planning staff is developed and by the same organization. The purpose of defining the located within the neighborhood. Resident advisory com- organizational framework is to determine the extent and mittees are established for each neighborhood to use in type of involvement of each organization involved. Inter- developing plans for the service within the neighborhood. agency relationships are defined. Administrative Decentralization. With administrative de- Some reports examining organizational arrangements for centralization, program responsibility and decision-making providing and operating public transportation services as- 55

TABLE 4 AGENCIES COMMONLY INVOLVED IN PUBLIC TRANSPORTATION

Regional Agencies Local Agencies

1. Regional Council of Governments 1. Community Development Agency

2. Regional Planning Commissions 2.. Planning Commission

3. Regional Transportation Authority 3. Transportation Authority

4. Substate Districts or Special Districts Transportation Department

Private Transportation Providers 5. Regulatory Commission

Social Service Agencies

Neighborhood Agencies

*It is possible to have duplicate overlapping and conflicting responsibilities between agencies.

TABLES ORGANIZATIONAL ALTERNATIVES FOR COORDINATION OF LOCAL AGENCY INVOLVEMENT

Common Cooperative Arrangements Governmental Reform Alternatives

Cooperative Decision Making Administrative Devolutlon of State Powers (Policy Committee or MPO Designation)

Project Review and Communication Regional Federated Government (A-95 Review Process)

Interlocal Agreements and Contracts Unified Regional Government (Consolidation or Annexation)

Interagency Agreements and Contracts Regional Council of Governments with Expanded Powers

Transfer of Functions Administrative Decentralization of State Department (District)

Regional Transportation Authority

Governmental Decentralization to Neighborhood Level

sume that different organizations must be developed to Five Basic Organizational Roles handle different services. They have stated that a dial-a- ride service should be operated by a different organization In any urban area there will be a variety of organiza- from that providing a vanpool service, etc. All of these tions involved in transportation planning. Regardless of paratransit services are considered to be separate from the local political pattern for decision-making, each of the traditional transit services in terms of the organiza- these agencies and organizations will have some type of tional arrangement made for providing the service (35). role to play in the transportation planning process. It is Over the past few years this view has changed and this important that the type of role each organization plays report also does not support that assumption. It is the basic be specifically defined with regard to the organization's contention of the market-oriented planning process that all authority and scope in the transportation planning process. services must be included within the same planning process. Each organization's responsibility and accountability should be clear (36, 37). The customer's needs and desires determine which service In determining and defining the role each organization will play in the transportation planning is to be provided. The range of services is decided after process, the local political structure and pattern of decision- determining need. The range- of services does not pre- making should be considered. It has been found that determine organizational structure nor does it predetermine organizational change is the result of political change and the type of planning process. not vice versa (31). Each organization should be assigned 56 a role commensurate with the organization's authority, nation. Evaluate the organizations involved according to jurisdiction, and capacity. the degree to which they have adequate authority, juris- There are five basic planning roles that organizations can diction, and capacity to assume the central coordination play: responsibilities outlined for the local area. Select the organization(s) to be given responsibility for coordination Leadership. This involves organizing and carrying out of organizations involved in the planning and implementing most or all of the required planning activities, coordination of short-range public transportation improvements. of the participation by all other organizations in the plan- Specify responsibilities. Determine by policy and ning activity, and defining and directing the work in- planning activity the role that each of the local organiza- volved. This would involve direct provision of most or tions involved in public transportation (listed in the in- all of the required staff. ventory) will play in the short-range market-oriented Initiation. This involves identification of possible pub- planning process. Clearly specify these responsibilities by lic transportation issues and problem areas that should be legislative action, intergovernmental agreements, etc. addressed, or identification of possible public transporta- Review and update. Periodically review the legislation solutions that should be considered. tion establishing the organizational framework to assure Technical support. This involves the provision of that it is not stifling innovation, progress, or coordination technical inputs such as data, documents, or computer in the provision of public transportation service in the services; conducting surveys; training in analysis methods local area. or similar support activities. This may involve the loaning of staff to another organization for the completion of im- The type of political approach and the degree of ob- portant work items. If the activity involves implementa- jectivity desired for the organization, as well as the local tion, technical support may involve some form of partial political structure, determine the degree of authority that implementation of a transportation service. the organization has and can use. For example, if com- Comment. This involves reviewing the planning work bining the planning process with implementation and in- carried out by other organizations. Suggestions for im- corporating the planner as a member of the chief execu- provement, clarification, or amendment may be made. tive's cabinet are desired, the organizational authority Approval. This is primarily the role of elected officials would need to include some power of implementation. An or implementing agencies. Approval permits or leads to organization with authority to both plan and implement decision-making on a specific transportation recommenda- would then be given the leadership role for most of the tion. In the case of elected officials, approval involves the planning activities. If, however, one of the other two actual decision to implement activities that lead to im- political approaches is to be taken by the planning or- plementation. In the case of implementing agencies, ap- ganization, the organization need not have the authority proval involves the agreement of the agency to actually to implement. implement the recommendation determined by the plan- The geographic scale as well as the political approach ning process. determine the jurisdiction of an organization. Jurisdic- tion can, however, be modified through interlocal or in- Choosing the Organizational Role terdepartmental agreements. The capacity of an agency to perform a planning ac- An organization's role should be based on the organiza- tivity is related to the type of activity the organization is tion's authority, jurisdiction and capacity in transportation involved in and the degree of implementation power planning. This is determined by the local political structure, which the organization has. For example, an organization the geographical scale of the organization, and the range involved in land use and economic planning as well as of activities that the organization is involved in performing. transportation planning will usually have more technical These organizational requirements were discussed earlier. capacity for population analysis activities than an organiza- The general steps to follow in developing a "customized" tion without a similar background. An organization in- organizational framework for short-range, market-oriented volved in implementation has more capacity for involve- public transportation planning are as follows: ment in transportation design than an organization that is Inventory. Develop an inventory of all of the local not involved in implementation. In actuality the capacity of organizations involved in planning, providing, or regulating an agency can be easily modified by the addition of staff public transportation services (including social service with the required background. Capacity, therefore, is pri- agencies and private organizations). Determine the extent marily important only when the required staff cannot be of their involvement; their authority, jurisdiction, and hired to supplement the organization's existing professional capacity; and the organizations with which they coordinate. capacity. Political analysis. Determine the political environment within which local transportation decisions are made. General Evaluation of Alternative Organizational Determine the decision-makers and the extent of their Arrangements influence or power. Central coordination responsibilities. Determine the Each of the organizational arrangements described type of political approach desired, the degree of objectivity earlier could assume any one of the five organizational desired, and the geographical scale desired for provision roles described (leadership, initiation, technical support, of public transportation services in the local area. comment, or approval) for most of the policy and Select organization(s) responsible for central coordi- planning activities listed. Regardless of the local political 57

pattern for decision-making, each of these agencies and Select modes to satisfy attribute preferences of market organizations represented in the local urban area will segment. play at least one of these roles in the transportation Determine gross feasibility of selected mode planning process. In determining the role each organiza- Design alternative public transportation systems to tion should play, the local political structure and pattern serve specific market segments. of decision-making should be considered. There are, how- Determine feasibility of public transportation design. ever, some general role limitations. The composition, scope, Integrate system design with other transportation and legislative base of some organizations will limit the services. type of activities that the organization can perform. Gen- Analyze environmental and community impact. eral role limitations in performing the policy and planning Analyze capital and operating costs. activities are discussed further in the following paragraphs. General Limitations Affecting the Roles Organizations Selections, design, and feasibility analysis of public Play in Performing Policy Activities. Agencies that do not transportation services are technical activities that can be have locally elected or appointed government officials serv- performed by either general purpose organizations or ing to approve and direct the actions of the organization transportation agencies with the authority to plan for the generally are not enabled by state and local legislation to identified population groups and investigate all modes. make policy decisions. Agencies empowered to make Organizations limited to one mode, or organizations with local policy decisions may, however, be constrained as to special purposes or limited geographical scope would gen- the type of policy decision they may address. For ex- erally not be suited for leadership in performing these ample, a regulatory commission may only address regulated activities. Organizations without operating authority or institutional issues and is virtually powerless to assure that implementation controls may be hampered in the integra- passenger service is provided by initiating or promoting tion of system design with existing transportation services. service (38). Organizational survival may also limit the Analyses of environmental and community impacts, and scope of an organization with regard to policy decisions. of capital and operating costs, are also technical activities Agencies competing for the privilege of providing services that can be performed by either general purpose or trans- generally should not be the leaders in decisions concerning portation agencies. Other agencies should provide tech- the proper organizational structure for provision of services. nical support as their constituencies are affected. General Limitations Affecting the Roles Organizations Effect of Cooperative Arrangements on Role Limita- Play in Performing the Market Research Activities. The tions. Various cooperative arrangements for the coordina- six market research activities are: tion of local agency involvement in public transportation planning are available. These arrangements serve to Analyze urban area and population. modify by agreement the common organizational arrange- Select a population group for segmentation study. ments. Cooperative decision-making (policy committee or Describe market segments. MPO designation) would lead to an arrangement where Identify attribute preference structure of selected segments. policy decisions could be made outside of any of the listed organizations. Interlocal agreements and interagency Predict market segment response to public trans- agreements could modify the roles of agencies by allowing portation system. or denying them the right to provide leadership in perform- Perform longitudinal analysis of system performance and market change. ing an activity. For example, a social service agency, which, because of its limited scope, normally would not Organizations with a geographical scope of less than an perform the leadership role in the design of a service, entire urban area, or organizations solely involved in pro- could be given the leadership role through an interagency viding transportation, are generally not prepared to handle agreement if the designated market segment was composed completely all aspects of an urban area population analysis. of social service clients. The A-95 review process does Social service agencies, regulatory commissions, and other improve communication between agencies but generally limited purpose organizations also are not prepared to does not affect the role of the agencies. A transfer of perform this type of analysis. Selection of the population functions could affect the role of an agency, however; group for segmentation study should involve those decision- functions are usually transferred to an agency that already makers that are able to make policy decisions, or at possesses the authority to perform the activity. least approve them. The next three market research ac- Limitations on the Political Approach Taken by an Or- tivities are technical ones that could be performed by any ganization. Three political approaches have been presented organization with a technical staff with knowledge of or for involving a planning organization in the local decision- capacity to learn market research techniques, as long as making process. The organization can be the staff for a the organization had adequate geographical scope to central chief executive with power to implement all trans- analyze all segments of the selected population group. portation improvements. The organization can be separate Longitudinal analysis of system performance and market from all concerned interests with the responsibility for change is best performed as an ongoing data collection negotiating between competing interests. The organiza- and analyzing activity involving the operating agency(s). tion can be involved in both instigating and negotiating General Limitations Affecting the Roles Organizations competing interests. The intended political approach for Play in Performing the Service Design Activities. The the organization should be considered in determining the public transportation service design activities are: organizational framework for the market-oriented short- 58 range planning process. The organization involved in ap- degree of objectivity expected from the planners involved plying the market-oriented approach must be involved in in the market-oriented short-range planning process should the decision-making process if it is to direct ultimate correspond to both the political approach expected from decisions concerning short-range public transportation im- the planners and the desires of the local area. The three provements. different approaches for objectivity in planning are: (1) Community development agencies and transportation exercise completely independent judgment, (2) exercise departments are traditionally organized as a direct staff independent judgment within the policy confines ex- function of a local chief executive (mayor, city manager, pressed by local legislative and administrative statements, county commissioner, etc.). If , designated as the lead or (3) advocate the interests of individual interest groups. agency in short-range public transportation planning, they The first and second approaches are appropriate if the would need to take the first political approach. This ap- political approach is to be a direct staff function of the proach would only work, however, if the chief executive chief executive. The desires of the chief executive would to whom the agency reports is also the chief executive for determine the appropriate role. The first approach, com- transportation decisions. Planning commissions (both local plete independence, is appropriate if the organization is and regional) and councils of government are traditionally to be neutral and involved in negotiations between com- organized to be politically removed from local decision- peting interests, because an organization with this role makers, and therefore may be better suited for one of the would be expected to provide unbiased advice and anal- other two organizational political approaches involving ysis. The first and third approaches combined are ap- negotiation. If the local or regional transportation au- propriate if the organization is to be responsible for thority is given the authority to plan for and implement developing interest in an issue as well as in negotiating all modcs, the chief executive of the authority could serve its resolution. The ap- as the central chief executive and the planning organization Considerations Concerning Geographical Scale. could function as his/her staff. Transportation authorities propriate geographical scale for the provision of trans- with interest in only a few selected modes are not suitable portation services is not necessarily the appropriate scale for a leadership role. All of the regional organizational for the planning of the services. There is, however, some structures that are listed as governmental reform alterna- relationship between the two. The criteria for determining tives could follow any of the three political approaches. the appropriate geographical scale for the provision of If given complete control over the implementation of all transportation services are: (1) economic efficiency, (2) transportation proposals, the regional organization's execu- equity, (3) political accountability, (4) administrative tive would serve as the chief executive for the region with effectiveness, and (5) community impact. If a local area regard to transportation. It has been found, however, that desires planning and implementation to be performed by regional organizations formed through governmental re- the same agency, these criteria should be considered. form do not always receive or develop central authority. The proper geographical scale for the market-oriented Representatives to the regional organizations view them- short-range planning process is the scale that allows for selves as representatives of subunits of the metropolitan analysis of all population segments identified by the area and try to preserve subunit prerogatives. Capital policy activities as needing to be surveyed for transporta- projects are apportioned on the basis of the subunit tion needs and desires. This may be possible at the rather than on some other basis (31). Apportionment of regional scale. In practice, however, regional planning funds may be by district formula rather than controlled activities have tended to treat the regional population as homogeneous, at least within subregional political by the regional governing body (8). In these cases, the new regional organization does not have complete imple- boundaries. Minority groups, in particular, feel that their mentation powers and, therefore, does not serve as the influence has been reduced with the establishment of chief executive body in the region for transportation regional organizations (29, 39). This tendency to treat matters. The organization must then adopt one of the the population as an aggregate, homogeneous body must other two organizational approaches for political involve- be corrected if the regional organization is to use a ment if it is to function in the leadership role for public market-oriented planning approach. In urban areas with large central city minority populations, particular atten- transportation planning. The common cooperative arrangements for coordination should be paid to development of an organization tion of local agency involvement can be used to clarify that will encourage proper consideration of minority needs the political approach that an organization will take. For and interests. Local agencies could be given the authority example, interlocal contracts could be used to establish a to develop short-range transportation plans for both the central chief executive for implementation of public trans- central city and the areas surrounding the central city portation improvements. On the other hand, designation through interlocal and interagency agreements. The need of a group of elected and appointed officials as the MPO for the organization to be involved in the political decision- rather than designation of one agency would indicate making process for the urban area may also require that that there is no one central chief executive with the the organization be located at the local rather than the power to implement all public transportation improve-, regional geographical scale. Decisions ments. Close Relationship with Operational Planning. Degree of Objectivity the Organization Best Supports. concerning the type of political approach that should Objectivity is closely related to political approach. The be taken by the organization involved in short-range pub- 59

lic transportation planning may indicate that the planning report. These skills involve technical knowledge in a num- function should be performed by the same agency per- ber of different disciplines as well as personal skills in forming implementation and operational planning. This political involvement, interpersonal relations, communica- may involve changes within the operating agency. Market- tion, and coordination. It is doubtful that one individual oriented short-range planning involves a wider variety of would possess all skills. An interdisciplinary staff may be transportation modes and planning activities than those needed with skills in communication and political aware- currently considered by most public transit managers and ness. The size of the interdisciplinary team would vary their marketing and planning staffs. A survey sponsored according to the size and resources of the urban area and by the Urban Mass Transportation Administration in 1976 the expertise of the individual team members. The knowl- of 10 urban areas of different population sizes found that edge and skills required for performing the process will most local transit operators were unimodal, tied to the remain basically the same throughout all urban areas, transit system which they operated (18). however. Difficulties are also encountered in developing a close relationship between the operators of nonconventional and CONCLUSIONS AND RECOMMENDATIONS private public transportation modes. Social service agencies frequently provide nonconventional transportation The Transportation Systems Management services within an urban area. However, they are not Planning Process staffed with transportation professionals and therefore are Conclusions and recommendations were reached con- unable to communicate using standard transportation cerning the short-range public transportation systems man- terminology (passenger miles, etc.) and may be unable agement planning process as follows: to keep data that measure basic performances of their services. They may also be hostile to coordination if they Conclusion. Current federal regulations for trans- feel that their clients will not receive special considera- portation systems management are product oriented. The tion (40). Private operators, too, are often reluctant to regulations only list improvements to be considered and share information or provide data, because these measure- tried and do not specify a process to be followed that ments may be used to their disadvantage in the regulation encourages a market orientation. of rates. Recommendation. A short-range planning process that Relationship with Long-Range Transportation Plan- is market-oriented should be adopted by each local urban ning, Traffic Engineering, and Land-Use Planning. Short- area. Through this process, local consumer needs should range public transportation planning definitely affects and first be identified through market segmentation and then is affected by long-range transportation planning, traffic solutions developed to meet market segment attribute engineering, and land-use planning. Coordination between desires. these activities should be established. It is not always Conclusion. The short-range planning for improve- possible or desirable, however, that these activities be per- ments to the alternative public transportation services (tra- formed by the same organization. Committees and the ditional bus, demand-responsive service, taxi service, etc.) A-95 Review Process can be used to establish formal com- needs to be included within the same process in order to munication between agencies. Interagency agreements consider the trade-offs that exist between alternative can be used to establish formal coordination between the services. planning and engineering activities. Recommendation. The adopted planning process should assure that transportation service alternatives are eliminated Importance of a Professional Staff from early consideration only because they do not meet market segment attribute desires. No alternative should It is important that the organizations involved in the be eliminated from consideration prior to market seg- planning process, particularly those involved in leader- mentation. ship roles, have staff with the required skills. The develop- Conclusion. A close relationship with elected and ment of a clearly defined organizational framework for appointed officials is required in short-range planning be- transportation planning and decision-making tends to cause of the short time span between development of strengthen the influence of transportation professionals plans and implementation. on the decision-making process (31). This influence will Recommendation. Continual interaction with elected be even stronger in those urban areas in which it is and appointed officials in the development of recommenda- possible to establish one central organization to manage the tions should be guaranteed in the planning process adopted decision-making process and integrate planning and im- for short-range transportation planning. plementation. This increase in the influence of the transportation professional, however, means that it is more important that the professional be able to carry out his The Organizational Framework for Transportation Systems or her responsibilities. If the professional involved in Management Planning the process is not able to maintain the respect of the local Conclusions and recommendations were reached con- community, the organization's survival as well as his or cerning the organizational framework that should be her own employment security will be affected. developed for short-range public transportation systems Many skills are required to perform short-range market- management planning. The conclusions and recommenda- oriented public transportation planning as outlined by this tions are as follows: 60

Conclusion. Planning and implementation must be ternatives that have been tried in various urban com- coordinated into the same decision-making process if short- munities for the improvement of governmental services. range planning is to be relevant and effective. Recommendation. These organizational arrangements Recommendation. There are three possible approaches and reforms could be used in coordinating public trans- to integration of planning and implementation: (a) One portation planning and implementation. If the organiza- organization responsible for both public transportation tional arrangement or reform will tend to better coordinate planning and implementation (but not necessarily opera- planning and implementation, the organizational arrange- tions) is organized as the staff function of the chief ment or reform could improve the short-range public- executive with the central decision-making power over transportation planning process. transportation. (b) No one organization is responsible Conclusion. The transportation planner must be for both planning and implementation, but one organiza- politically aware in order to be effective. tion (external to all operating agencies) is given respon- Recommendation. To influence adoption of plans and sibility for planning and negotiating between agencies in recommendations, the planner should continually interact the development of plans and the implementation of im- with elected and appointed decision-makers and work for provements. (c) No one organization is responsible for adoption of specific transportation alternatives or recom- both planning and implementation. One organization (ex- mendations. ternal to all operating agencies) is responsible for both Conclusion. A close relationship between short- negotiations between existing interest groups and for range public transportation planning and operational developing new interest groups in transportation. planning exists. Conclusion. The organizational framework for short- Recommendation. If planning and operations are in range public transportation planning must suit the local separate agencies, a team relationship should be developed area if it is to be effective. between the short-range planning organization and the Recommendation. The local pattern of decision-making operating agency. (the number and influence of individual decision-makers, Conclusion. Short-range public transportation plans the existing agencies and their influence, etc.) should be can, over time, lead to the realization of long-range trans- determined before recommending an organizational frame- portation and land-use plans. work. To be effective, the organizational framework must Recommendation. The long-range transportation and reflect the existing pattern of decision-making, not an land-use plans should provide the parameters for short- idealized pattern, unless major governmental reforms are range planning activities. politically feasible. Conclusion. The geographical scale for operation Conclusion. The current organizational framework and provision of particular public transportation services for short-range public transportation planning is poly- should not determine the governmental level for short- centric; there are numerous organizations involved, each range transportation planning and control. with limited scope and responsibility. Recommendation. The organizational framework for Recommendation. One organization should be given the public transportation planning should be flexible enough responsibility for coordinating the decision-making process to allow for the provision of services at different geo- in each local urban area. graphical scales. A variety of skills are required to per- Conclusion. An organizational framework that co- Conclusion. ordinates all relevant actors and agencies involved in form market-oriented short-range public transportation transportation necessary in order to produce viable and planning. implementable short-range public transportation plans. Recommendation. An interdisciplinary staff or team should be developed to perform market-oriented short- Recommendation. The organizational framework for short-range transportation planning should provide for range public transportation planning. the coordination of multiple jurisdictions and implementing Recommended Organizational Structure agencies while still encouraging the differentiation of services to meet the unique needs of different market Each local community needs to develop its own local segments. organizational framework for short-range market-oriented Conclusion. Currently there is a good deal of un- public transportation planning. This framework needs to certainty about agency and governmental responsibilities reflect the local political environment if it is to be effective. in public transportation planning. Six general steps to follow in developing a "customized" Recommendation. The responsibilities of all agencies organizational framework for a local area include: (1) and governmental bodies involved should be clearly speci- inventory, (2) political analysis, (3) central coordina- fied by legislative action, intergovernmental agreements, tion responsibilities, (4) select organization(s) responsible etc., in every local community. These acts and agree- for central coordination, (5) specify responsibilities, (6) ments should periodically be reviewed and updated to review and update. assure that they do not stifle innovation, progress, or To illustrate the close relationship necessary between coordination in the provision of public transportation the community's political environment and the organiza- services. tional framework for short-range market-oriented public Conclusion. There are a number of common or- transportation planning, four organizational recommenda- ganizational arrangements and governmental reform al- tions have been developed. Each recommended organiza- 61

tional structure is based on assumptions concerning the some type of legal agreements would be developed with local community's political environment. The four or- the existing organizations to allow the planning commission ganizational structures are described as follows: to perform all of their planning functions, with operations being reserved for the operating agencies. All pro- Community Scenario. The community has one strong posed budgets would be reviewed by the planning commis- central executive with authority over all transportation sion for recommendation and comment to the appropriate alternatives (for example, a strong mayor) or the com- elected officials. munity is conducive to governmental reorganization to Community Scenario. develop a strong central executive. The community consists of a central city surrounded by both incorporated and unin- Recommended Organization. A transportation depart- corporated suburbs. The population is evenly divided ment should be developed as a direct staff function of the between the central city and suburbs. There is no one chief executive. The department should incorporate all central executive with influence over transportation in all transportation planning, implementation, and regulation political jurisdictions and the communities involved are activities already being performed in the urban area into very resistant to change. one organization. In addition, the organization would as- Recommended Organization. The council of govern- sume responsibility for encouraging the development and ments should be given responsibility to manage the deci- expansion of private services, and the coordination of sion-making process. Their responsibilities would be the services for the clients of social service agencies. The same as the planning commission in Scenario 3. actual operation of any publicly owned transportation services (bus company) would not be a function of this REFERENCES department, but budget review of the service would be a function of the department. BELLOMO, S. J, "Issues and New Directions in State- Community Scenario. The community consists of a wide Transportation Planning and Programming." central city surrounded by both incorporated and unin- Paper presented at the 56th meeting of the Trans- corporated suburbs. The population is evenly divided portation Research Board, January 1977. between the central city and the suburbs. There is no U. S. DEPARTMENT OF TRANSPORTATION, Urban Sys- one central executive with influence over transportation tem Study. Report to the United States Congress, in all political jurisdictions, but the urban area is favor- December 1976. able toward development of a regional multimodal trans- U. S. DEPARTMENT OF TRANSPORTATION, "Highway- portation authority that will exercise complete control over Transit Legislation Summary of Recommendations." all transportation services. (Dec. 20, 1977) (Mimeographed). Recommended Organization. A regional transportation DAVIS, F. W., JR., and AEX, R. P., "Management and authority should be developed with responsibility for Organization for Promoting the Utilization of Para- planning, implementation, and regulation of transportation transit." University of Tennessee, Transportation Cen- services in the urban area. Existing organizations should be ter (Nov. 1977) (Mimeographed). incorporated into the one Organization or phased out. JONES, D. W., GARRISON, W. L., MAY, A. D., and Internally the authority should be organized to assure that SCIIONFELD, P. M., "Managing the Future Evaluation the market-oriented planning process is directly involved of the Urban Transportation System—Interim Sum- in all decisions concerning the development of transporta- mary Report." University of California at Berkeley, tion services. If the authority does not actually operate (Oct. 1976). publicly owned transportation services, such as a tradi- ENGLELEN, R. E., and STUART, D. G., "New Direc- tional bus service, the authority should have budgetary tions in Urban Transportation." Report 303, Ameri- review and control powers over the public services. In can Society of Planning Officials, Chicago (June addition, the organization would assume responsibility for 1974). encouraging the development and expansion of private U. S. DEPARTMENT OF TRANSPORTATION, Proceedings services, and the coordination of services for the clients. of the First National Conference on Strengthening of social service agencies. Organizational Capabilities for Transportation Plan- Community Scenario. The local community does ning. Houston, Tex. (June 1977). not have one central executive with influence and control JONES, D. W., JR., "The Politics of Metropolitan over all transportation matters. Each transportation or- Transportation Planning and Programming." Univer- ganization is autonomous and there is competition be- sity of California at Berkeley (Nov. 1976). tween organizations. There is no one authorized with DYCKMAN, J. W., "The Practical Uses of Planning central budgetary review and control over all organizations. Theory." A/P .1., Vol. 35, No. S (Sept. 1969) p. 298. Recommended Organization. The planning commission, MUNDY, R. A., CRAVENS, D. H., and BYRNE, G. E., an autonomous body, should be given the responsibility "Organizational Dilemma of Urban Public Transporta- for management of the decision-making process. The com- tion." Paper presented at the 1977 National ORSA/ mission would be responsible for determining market seg- TIMS Conference, Atlanta, Ga. (Nov. 1977). ments and their attribute preferences, and for negotiating BECKMAN, N., "The Planner as a Bureaucrat." A between different organizations in the development of Reader in Planning Theory, Pergamon Press (1973). services to match the attribute preferences. If possible, DAVIDOFF, P., "Advocacy and Pluralism in Planning." 62

A Reader in Planning Theory, A. Faludi (Ed.), tation Improvement Program." Federal Register, Vol. Pergamon Press (1973). 40, No. 181 (Sept. 17, 1975) pp. 42976-42984. BOLAN, R. S., "Community Decision Behavior: The KRZYCZKOWSKI, R., ET AL., "Integration of Transit Culture of Planning." AlP J., Vol. 35, No. 5 (Sept. Systems: Summary." U.S. Department of Transporta- 1969) p. 301. tion, Urban Mass Transportation Administration (Oct. RABIN0vITz, F. F., "Politics, Personality and Plan- 1973). ning." A Reader in Planning Theory, A. Faludi (Ed.), 29, U.S. ADVISORY COMMISSION ON INTERGOVERNMENTAL Pergamon Press (1973). RELATIONS, "Substate Regionalism and the Federal System." Vol. III, The Challenge of Local Govern- HEIKOFF, J. M., Politics and Urban Planner: A Primer. University of Illinois at Urbana-Champaign Bureau of mental Reorganization (1974). Urban and Regional Planning Research (1975). ALDEN, J., and MORGAN, R., Regional Planning: A Comprehensive View. John Wiley and Sons (1974). MARCUSE, P., The Ethics of the Planning Profession: The Need for Role Diflerentiation (Aug. 1974). ERIE, S. P., KIRLIN, J. J., and RABINOvITZ, F. F., "Can Something Be Done? Propositions on the Performance MUNDY, R. A., "Utilization of Standards in Urban Reform of Metropolitan Mass Transportation." Paper presented at the Annual of Metropolitan Institutions." L. Wingo (Ed.), The Johns Hopkins meeting of the American Society of Planning Officials Governments, University Press (1972). (Apr. 1977). BENT, A. E., Escape From Anarchy: A Strategy for PATRICELLI, R. E., "Remarks Before the Tenth An- Urban Survival. Memphis State University Press nual Conference of the National Association of (1972). Regional Councils, Hollywood, Florida, June 9, 1976." WALKER, D., "Metropolitan Transportation in an Age Department of Transportation News. of Substate Regionalism." Transportation Research MEYER, M., "A Review of Transportation System Record 524 (1974) p. 4. Management in Response to New Federal Policy." U.S. ADVISORY COMMISSION ON INTERGOVERNMENTAL Working Paper 76-3, Massachusetts Institute of Tech- RELATIONS, The New Grass Roots Government? nology, Center for Transportation Studies (Oct. Decentralization and Citizen Participation in Urban 1976). Areas (Jan. 1972). "Urban Transportation Alternatives: Evolution of U.S. DEPARTMENT OF TRANSPORTATION, Urban Mass Federal Policy." TRB Special Report 177 (1977) Transportation Administration, Study and Evaluation 38 pp. of Urban Mass Transportation Regulation and Regu- MEYER, M., "TSM: An Expanded Role for the Trans- latory Bodies, Vol. 2 (May 1972). portation Engineer." Transportation Engineering, Vol. HOVELL, P. J., JONES, W. H., and MORAN, A. J., The 47, No. 11 (Nov. 1977) p. 37. Management of Urban Transport: A Marketing Per- STRINGER, P., and WENZEL, H., (Eds.), Transporta- spective. Saxon House/Lexington Books, Westmead, tion Planning For A Better Environment. Plenium England (1975). Press (1976). RAWSON, G. E., ROBSON, R. E., SMITH, R. L., OWEN, W., Transportation for Cities, The Role of THOMAS, L. W., and TYER, C. B. Mass Transportation Federal Policy. The Brookings Institution (1976). in Tennessee: Institutional Issues and Alternatives. FRIEDMANN, J., "Notes on Societal Action." AlP University of Tennessee, Bureau of Public Administra- Journal, Vol. 35, No. 5 (Sept. 1969) p. 311. tion (May 1976). WICKHAM, D., DAVIS, F. W., JR., and MUNDY, R., DAVIS, F. W., JR., "Regulatory Barriers to Innovation "Institutional Factors that May be Caused by or Result and the Knoxville Experience." Paper presented at the from Implementation of Transportation Services." 56th meeting of the Transportation Research Board University of Tennessee, Transportation Center (Jan. 1977). (Working Paper). KENDALL, D., ET AL., Small City Transit Character- Department of Transporta- CRAVENS, D. W., McGHEE, J. L., and MUNDY, R. A., istics: An Overview. U.S. "Short-Range Public Transportation Goals and Policy tion, Transportation Systems Center (Mar. 1976). Development for Urban Communities." University of BRIGGS, R., "Specialized Transportation Providers in Tennessee, Transportation Center (Jan. 1978). the Context of the Transportation Complex." Uni- U.S. DEPARTMENT OF TRANSPORTATION. "Transpor- versity of Texas at Dallas (Jan. 1978). 63

APPENDIX A

COLLECTING AND ANALYZING EXISTING INFORMATION

Information that can be utilized in the public transporta- facilitate or impede travel form the basis for analyzing tion goals and policies process is of two types—existing and transportation problems and proposing policy solutions. new. Existing information consists of various kinds of Goals and policy alternatives for transportation systems published reports and studies (e.g., 1990 Master Plan) improvement will be closely related to population char- that may be useful in developing goals and policies for acteristics; For example, low density limits ridership on public transportation. New information refers to formal conventional transit, making paratransit services increas- data collection efforts specifically undertaken as a part of ingly important in meeting needs. The severity of traffic the goals/policies development process, and includes, for congestion and pollution problems can best be analyzed example, goal preference surveys, citizen surveys, and in terms of the interaction of population density, aggregate related types of information collection efforts. Existing travel characteristics, and travel facilitators and inhibitors information is considered in this appendix. (e.g., highways, bridges, mountains). An understanding The role of existing information about public transporta- of these factors simplifies the process of evaluating the tion is to provide a comprehensive description of the feasibility and effectiveness of various policy alternatives. community environment, nature and extent of goal/policy A knowledge of the economic tax base of the community, development, institutional (organizational) structure, and the public support for transportation relative to other public relationships for public transportation; and to determine goods, and the availability of planning expertise indicates the extent and level of marketing applications being util- the potential of public transportation to solve community ized. This effort, in total, represents a situation analysis problems. The realization of transportation goals is en- of public transportation in a community. It can provide an hanced if transportation is viewed as a way of facilitating important base of information for: other metropolitan goals. It is important to determine how Determining the nature and scope of goal/policy committed the community is to improving public trans- development needed in the community. portation. Also, particular issues that are currently under Guiding market analysis aimed at identifying new discussion (e.g., recent or pending referenda) should be market service opportunities or improving existing services. assessed in terms of their probable influence on public Establishing guidelines for other phases of the short- transportation. range public transportation planning process. Public Transportation Goals, Policies, and Purposes AREAS FOR COLLECTING EXISTING INFORMATION Profiling the existing public transportation goal and Existing information is important in establishing current policy process is a useful foundation for subsequent goal/ conditions such as community characteristics, public trans- policy development. Through interviews with public portation support, suppliers of public transportation ser- officials, the consistency of responses relative to the per- vices, service characteristics, public transportation planning, ceived effectiveness and efficiency of existing goals can be and marketing activity. This information provides an initial compared. To encourage officials to be candid in their basis for developing public transportation goals and policies appraisals of the. worth of the goals and the need for goal that meet the special needs of a community. The informa- statements, anonymity should be assured by utilizing a tion is obtainable through interviews with public officials brief questionnaire. It is important to identify any biases from various planning and implementing agencies, elected that may influence the collection of new goal and policy officials, other transportation planning studies, and various information and thus may limit the usefulness of future published reports. Guidelines for collecting existing in- goal statements. formation were developed for the project and are included Objective information about previous methodologies is as part of the appendix. The guide is subdivided into the useful in focusing on weaknesses of past efforts, such as the major areas of information needs. omission of relevant citizen groups, questions so general that they are of questionable value, nonspecific response Community Characteristics alternatives, sampling deficiencies, and so on. A com- Information about population size, density, distribution, parison between actual goals and policies and the programs and demographic composition provides the basis for the undertaken is the best indicator of the community's com- study of citizen needs. After establishing the location and mitment to public transportation and the usefulness of the characteristics of citizen groups, general information about goals as stated. Where available, existing goal/policy the location of major trip generators and factors that statements should be reviewed to ascertain the extent to 64 which they provide appropriate guidelines for the public portation planning (including goal and policy determina- transportation planning process. In the several field studies tion) and the structure and elements of the planning of urban areas completed for this project, wide variations process should be identified. Information about existing were found in the existence and apparent usefulness of institutional arrangements for planning is necessary for the goal/policy guidelines. In some cities the guidelines were consideration of alternatives. Are the activities of individ- so general that they were of limited value in guiding public uals, agencies, and organizations coordinated? What is the transportation decision-making. Others had reasonably level of awareness of planning activities between organiza- well-developed goal statements. tions? Are fragmentation of responsibility, decentralization of decision-making power, or conflicting options likely to Institutional Organization for Implementing Public make it difficult to achieve a high level of commitment to Transportation Services any statement of goals and policies? How can the short- The number and types of organizations involved in range public transportation planning process be improved? implementing public transportation services vary from one Inviting principal goal and policy process participants urban area to another. The organizations are further to comment on the feasibility of alternative planning models (such as the one developed for this research characterized by wide variations in size, operating authority, staff capabilities, and financial resources. Considera- project) would be appropriate. Most of the information for this section is readily available to process coordinators; yet, tion of relevant institutional responsibilities and their the challenge is one of maintaining sufficient objectivity and interrelationships affect decisions relative to institutional flexibility to focus on alternative responsibilities and proc- planning, coordinating, and implementing responsibilities. esses that might better serve the public interest. State and local regulations that limit an organization's ability to provide public transportation services may inhibit the community's desire to expand services. A Nature and Extent of Public Transportation Services greater commitment to public transportation may be real- This information concerns the ability of the public istic only when corresponding changes can be made in transportation system to meet community needs. Informa- local ordinances. For example, policies limiting shared- tion about each type of public transportation service, citizen ride taxi services, licensing of taxis, and employer-sponsored groups, and trip needs served is one way of identifying vanpools may have to be eased. Insurance, liability, and services that the community may wish to support. Ques- workmen's compensation are important issues that must tions about the adequacy of fare structures and revenue be resolved before an organization can seriously consider relate to the organization's need for community support. providing transportation services. The actual number of The unavailability of public transportation alternatives, organizations responsible for providing public transporta- such as paratransit services and rideshare programs, may tion services may reflect market restrictions rather than indicate that further research is necessary to establish citizen needs. Knowledge of such constraints is funda- whether the need and support for such systems exist. mental to the consideration of change. Perceptions that certain services successfully serve the Financial information from suppliers of public trans- public interest are likely to have a positive effect on the portation is particularly important in attempting to assess decision-maker's desire to publicly support these services. the total community resources available for public trans- Specific productivity measures and subjective judgments of portation. In addition to the general fund, revenue sharing public transportation system characteristics can be com- funds and various local and state taxing options, the pared when establishing goals and policies related to system community may receive support for public transportation performance improvements. services (other than farebox) from a diversity of government agencies. In addition to the Department of Trans- Extent of Application of Marketing Concepts and portation, financial resources are available from the Depart- Approaches ment of Health, Education and Welfare; the Department of Housing and Urban Development; the Federal Energy The purpose of these questions is to determine the extent Administration; and a variety of social agencies at the state and level of application of marketing concepts and research and local level. A knowledge of all these resources is a data currently being utilized in short-range transit planning prerequisite for establishing policies, although the actual and operations. Informed decisions increase system effec- combining of resources is difficult because of the differing tiveness and responsiveness to citizen needs. Lack of in- program criteria established by each agency. Unless plan- formation about transportation consumers highlights the ning and operations are coordinated, wasteful duplication need for a comprehensive study of needs of citizen groups of services and the uncoordinated provision of public and the community wishes to support. private transportation services are likely to occur. The It is also important to identify the procedures and authority to tax, borrow, or allocate subsidies greatly methods used in the application of marketing techniques in increases the supplier's policymaking power and propor- the provision of public transportation services. For pur- tionately increases the influence of its representatives as poses of public transportation goal and policy determina- participants in the goal and policy process. tion, information about policymaking responsibilities is important when weighing the influence of participant Short-Range Public Transportation Planning responses. Research has shown that there is considerable Institutional arrangements for short-range public trans- variation in the decision-making roles of transit authority 65

board members and transit management. In one study Need for development of an operational goals/policy (Horn, K. H., "Transit Board Members: Who Are They statement for public transportation. and What Do They Do?" Transit J., Vol. 2, No. 4 (Nov. Studies of travelers' needs and preferences regarding 1976) PP. 15-32), it was found that most board members public transportation services. assume the major responsibility for rate and pricing policy Analysis of organizational responsibilities and rela- decisions, while allowing their management staff to assume tionships for planning, operating, and evaluating public the primary policymaking role for routing and scheduling transportation services. decisions. Variations in agency decision-making roles are Assessment of costs and benefits of existing public to be anticipated between policy areas as well as in different transportation services. urbanized areas. The extent to which various marketing techniques are currently utilized in making operating CONCLUDING NOTE policy decisions should be useful in assessing the potential for better realization of agency and community goals. The collection and analysis of existing information regarding public transportation should be viewed as a ASSEMBLING THE SITUATION ANALYSIS springboard for more comprehensive analysis and planning. The effort should indicate in some depth the nature and Information from the various areas can be combined into scope of public transportation in the community and a public transportation situation analysis. Depending on the should provide recommendations as to areas on which uses to be made of the analysis, the format will vary. An planners should focus their attention regarding future analysis using the checklist shown in Figure A-i can be actions. The analysis should yield information to guide the developed as the result of several days of interviews with development of promising opportunities and the elimina- people involved in various aspects of public transportation tion of existing or potential problems. in combination with an analysis of available publications. The situation analysis should yield specific guidelines A more comprehensive effort may be appropriate, depend- regarding the need for and direction of development of ing on the uses to be made of the situation analysis, the goal/policy information. When developed along the lines perceived need for such an analysis, and the size and extent suggested, the analysis can provide valuable information of involvement of the community relative to public trans- for goal/policy development. Areas illustrative of the out- portation. puts useful for goal/policy development are where goals Recommendations for future actions should be included and policies need to be developed, who participants in the in the typical community public transportation situation process will be, recommended responsibility for coor- analysis. Areas where recommendations may be needed dinating the process, and specific types of information that will vary from community to community. Illustrative areas should be obtained and analyzed in order to formulate a include: goal/policy statement for the community.

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U '0) '0) 5' 7.94 40 94 40 00.0 0) 14 0) U 40.494 4000 Ohi 0) 5' 40.0) 4.' .-4 U 4.9 .0 U 0. 4-44 00 CO Z CC 4)94 0' hi1I 5' 0)0)0)000 '0) O94hi0) F. 000) 0) hi 44 .0 3: 00 00 CO 0. -4 00 0) ' 44 3: CO 4-' 0 0 3: .2 . 0 '0 10 444 0) Oi 5' 0) 9.9 0 40 0 ------00 44, I4' C C 0 3: '0)4-44-4 > -4 0 (0 44 4)) o oJ ... .. 40 ••• 6060 •••• 4.4 ••• 0)0 0 0 0 4) 4.4 5' '0 hi . 4) '0 OIp 14' .') .0) 0 0) 0. 0. U 40 0) "4 4-0 44 4) 00 . .0)740 F' 4) 4) CO 00 00 3: Representatives of Citizen Groups Tax base--Expenditure for transportation per capita relative to other social services (welfare, etc.) Attitude surveys concerning public expenditure priorities? Business Media Any recent referenda on transportation- relatedissues-outcome? Civic Associations Innovations in government? What have been your most successful Social Service Agencies programs? Environmental Groups Religious Groups II. Public Transportation Goals, Policies and Purposes Education Groups Transit Employees and Union Representatives The purpose of this area is to identify the processes, methodologies and participants utilized in the local goal and policy development process for Community Characteristics evaluating public transportation alternatives, the measurement, of these goals (Quantitative information to be obtained from in-depth interviews with public and their susceptibility to change. officials and planning staff, transportation studies and census data.) A. Does the community have stated goals and policies? (If no, go to A. Definition of Urban Area E.) 1. Population of: (a) the central city, (b) urbanized area, (c) What different citizen groups are served by these goals and SMSA, (d) broader regional context (commuter shed-daily urban policies? systems) Are goals specifically aimed at overcoming community problems? How do you measure the effectiveness and efficiency of these B. Topographical Characteristics goals? Location of rivers and crossing bridges Do you periodically reevaluate your goals and policies? Mountain ranges, ridges Boundary problems (jurisdictional) B. How were goals and policies developed? What methods were used? C. Demographic Composition What groups were involved? Relative age distribution of the population Who was responsible for handling the goals/policies effort? Percent of residents over age 65 and geographic distribution Was any form of citizen participation involved? Percent of minorities (growth patterns and geographic distribu- What are the perceived limitations of goals/policies process? tion) - Median income distribution C. How have these been utilized? Percent of population without auto and number of automobiles 1. Have the goals been useful? per household Households with income below $4,000 D. Are these goals subject to change? Do these goals extend over more than one city administration? D. Existing Highway Network 1. Road layout (mileage, pattern) Street system functional classification (major arterial, etc.) E. Need for goal/policy statements. Configuration of the freeway network Do you believe that a statement of goals/policies is needed? Why?' - If 'no' to number 1, why? E. Aggregate Travel Characteristics Internal, external trips III. Institutional Organization for Implementing Public Transportation Ser- Corridors (loading factors during peak hours) vs. Circum vices F. Economic Base and Land Use Economic Characteristics Location of The purpose of this section is to determine the types of transportation Major Trip Generators (Activity Centers) Airports suppliers in the community, their operating characteristics and authority. Projected growth patterns What existing organizations are responsible for providing public Hospital complexes Industrial parks, major employers transportation service? Colleges Possible Prompts: Regional shopping centers - traditional transit service, taxi - special services (i.e., handicapped, senior citizens, welfare or health related services) G. Commitment to Planning and Transportation 1 Approved master plan? Approved transportation plan? Land use - school bus operations plan? - paratransit services 2. Duration of planning agency--size of full-time planning staff. Specific transportation planner? What is the general organization and operating authority of these suppliers?

Are any state legislation, corporate charter, ordinance or What other agencies or individuals are involved in short-range resolution materials available? public transportation planning? Are regulations (state or local) governing public or private name of agency providers of transportation services (to include such things as name of individual taxis, dial-a-bus, or whatever) available? address or phone number, if available C. Financial information (for each supplier): In what ways do you coordinate your activities with these What are your sources of capital and operating revenue? agencies? Have there ever been conflicts or differences of What authority do you have to give or receive subsidies? opinions? How were these resolved? What authority do you have to borrow? What authority do you have to tax? What procedure/process do you generally follow in your short- range planning activities? D. Labor information (for each supplier): Possible Prompts: Are copies of your collective bargaining contracts available? - what general types of information did you use? Are copies of your 13(c) agreements, if there has been a recent - how, generally, was it collected? public takeover, available? If you are non-union, what information on pay, benefits, hiring who, Outside of your agency, was involved in the pro- policies, attempts to unionize are available? cess? how did you determine what steps to follow? (Did you NOTE: If any legislation is in a state or U.S. Code, citation will suf- use existing transit manuals, federal guidelines?) fice; otherwise, copies of pertinent laws or regulations are necessary, where available. Specific absence of documentary authority What are the agencys staff capabilities in carrying out short- (especially in one of the financial areas) should be noted. range planning activities? D. What information needs or other aids do you feel you need to effec- IV. Short-Range Public Transportation Planning tively accomplish short-range public transportation planning? Possible Prompts: The purpose of these questions is to: - cost/benefit information - more authority to implement Identify who is involved in short-range public transportation plan- - less/more federal or state involvement ning, and the extent of this involvement. - better methods for collecting and analyzing data

Determine the structure and elements of the combined short-range V. Nature and Extent of Public Transportation Services public transportation planning process currently being used. What are the different types of public transportation services Answer A, B, C and D sections for each agency involved in planning public available for the community? How successful are they? (General transportation. question for all agencies contacted) Rapid transit and/or express bus system A. Are you or your agency involved in short-range (less than five Regular bus service years) planning? How are you involved? Feeder service to the line-haul system Possible Prompts: Demand-responsive systems - inventory of existing services Taxi - coordination of existing services Other paratransit systems - identifying immediate needs for public transportation ser- Other rideshare programs: carpools and/or vanpools vice Special services for elderly and/or handicapped - developing goals and policies School bus system - development of alternative plans (strategies to meet needs) - selection or approval of plans (or strategies) Service characteristics for each. of the existing systems (listed in - development of budgets "A" above). (Use Form A for quantified information on each service - development of grant requests identified.) - direct funding of public transportation services (or ap- 1. Adequacy of coverage area proval of funding) 2. Adequacy of route mileage and configuration - implementation of selected plans (or strategies) Radial - on-going operation of public transportation service Circumferential and/or crosstowri - evaluation or monitoring of existing public transportation C. Local circulation, e.g., CBD, major activity center services or residential areas - regulation of public transportation services 3. What is your feeling toward the present level of service now being provided? Note to investigator: Type or degree of involvement may vary between Service time periods public transit and other public transportation planning and implementing Frequency of service agencies (e.g., taxi operators). C. Transfer facilities and through-route system

5. What kinds of decisions do you use market information Is protection from weather, safety, personal Possible Prompts: security and comfort provided? - defining markets Is information on services and transfer guidance - setting objectives available? - developing budgets What is the significance of transfer upon total - preparing ridership forecasts travel time? - evaluating/monitoring service performance What principal trip needs are served by your service? 4. Would you share with us any reports or documents you have containing Work, shopping, school, medical, grocery, religious, 6. market information? social- recreation 7. What approaches do you use to determine how to market your services? C. Is an evaluation made of system user (ridership level and demo- Possible Prompts: graphics) characteristics? If yes, how? - use of market information The trend of the number of passengers carried - cost analyses The income levels of those served - forecasts The age of those utilizing the service - formal plans for operations - budgets The extent of service to the handicapped - criteria for resource allocation - 4-P decisions D. Integration of services: Is there coordination of transfer points, fares, routes, 8. Who decides what operation will be selected for or schedules between modes, including walking? Service mix including adding new services, modifying Is- there integration or joint development of transfer existing services or dropping existing services? facilities with major trip generators, such as shopping Rates, pricing? centers or other amenable places? C. Promotion including advertising, personal selling, and Is policy or-objectives on integration of services stated other promotional devices? and/ or available? Location of services (routing, schedules)? Marketing research studies? E. Do you feel the fare structure and revenue on your system is adequate? 9. How do these persons make decisions on Service mix including adding new services, modifying F. What productivity measures do you use for your system? existing services or dropping existing services? Vehicle-hours of. service Rates, pricing? Vehicle-miles of service C. Promotion including advertising, personal selling, and Number of vehicles used in peak and off-peak hours other promotional devices? Operating speed Location of services (routing, schedules)? Number of various types of vehicles Marketing research studies? Number of seats provided Number of employees

VI. Extent of Application of Marketing Concepts and Approaches FORM A The purpose of these questions is to determine the extent and level of Public Transportation Service marketing application currently being utilized in short-range public transportation planning and operations. Supplier What are the markets you feel are presently being served? A. Service characteristics for each of the existing systems What information about your markets do you actually use in planning decisions? 1. Coverage Area Possible Prompts: - descriptive characteristics of users 2. Route mileage and configuration - measure of market share - trip purpose breakdowns Radial - frequency of uses of different modes by classes of people Circumferential and/or crosstown - census data Local circulation (e.g., CBD, major activity center or How frequently do you collect and use market information? C. residential areas) What new information, if any, do you feel you need? 3. Levels of service 69

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APPENDIX B

IDENTIFYING AND SELECTING PARTICIPANTS FOR THE PUBLIC TRANSPORTATION GOALS AND POLICY DEVELOPMENT PROCESS

Metropolitan areas have become social and economic The absence of over-all metropolitan decision-making units facing similar problems, while their governments institutions encourages power struggles between neighbor- remain fragmented. Each government attempts to solve ing interests. Though there are various institutions with complex problems that are frequently metropolitan in policymaking functions in metropolitan areas, they lack scope. It is becoming increasingly difficult to identify those sufficient over-all power to make the kind of decisions that who should participate in the public transportation goal and resolve metropolitan issues and problems. According to policy process for metropolitan areas because of the multi- Long (B-2, p. 104), "It is rare that we can speak of those tude of governments_-cities, counties, school districts, and who make metropolitan decisions. What we can speak transit districts-which coexist under frequently uncoor- about is who makes decisions that have a significant effect dinated circumstances. Yet, public transportation systems, on metropolitan problems." roads, and highways cannot be developed in isolation. The need to mediate conflicts in interests between juris- Neither can problems of air pollution, energy utilization, dictions becomes a major justification for reforming and land use be dealt with effectively through fragmented, metropolitan government. To this end numerous govern- conflicting policies. The policy problems of metropolitan mental innovations have been spawned at the local level areas are complex. According to Wingo (B-i, p. 4): in an attempt to centralize policymaking responsibility. Independent communities within densely settled urban With voter approval, cities and counties have consolidated, areas experience special difficulties in the relationships as in the cases of Jacksonville-Duval County, Fla., and with each other in pursuing common goals. Unilateral Nashville-Davidson County, Tenn. dependency relations coexist with an incentive structure that rewards the localities which can capture benefits gen- Systems such as Miami-Dade County, Fla., preserve erated by their neighbors and impose the costs of achiev- separate fiscal powers and personnel among previously ing their own policy objectives on others. existing governments. Metropolitan special districts, such 70

policies varies among participant categories, even when as the Chicago Transit Authority, maintain independent participants function within the same organizational struc- status from other local jurisdictions. This is a special ture. For example, most agencies are staffed by planning instance of the federated form of metropolitan government professionals, but are governed by boards made up of established to provide better mass transit for the outlying policymaking officials—either elected by popular vote or sections of the metropolitan area (B-3, p. 12). In a sense, appointed by elected officials. Power to influence policy these organizations represent another layer of government. varies among participants within each category such as the Two kinds of cooperative attempts can be distinguished. mayor and city council members. Even among elected The first deals primarily with providing services through (B-4). officials acting in the same capacity such as city council intermuniciPal agreements or county/city contracts members, there will be variations in influence determined The second consists of cooperative arrangements, such as by personal interest, leadership characteristics, knowledge the metropolitan planning organization (MPO), which of the policy area, and other factors. provides a forum for policymaking among local government The power to influence specific policies also varies officials. Though MPO's generally have little authority to depending on the policy in question. Public transportation provide services, many exercise review power over munici- funding policies are primarily dependent on who holds the pal applications for federal money. Their veto powers vary "purse strings." How is public transportation financed from one urban area to another. In metropolitan areas such on the local level? Do all local funds come from a single as Jacksonville, cooperative arrangements are combined source? What are the taxing powers of various partici- with a consolidated metropolitan government in an effort to cope effectively with the complexities of urban policy- pants/organizations? Within established funding constraints, many operating policies (i.e., service character- making. istics, pricing, scheduling) are established by the boards of It has been argued that metropolitan institutions strengthen the influence of planning professionals on public the implementing agencies. policymaking, particularly in physical, tangible policy areas The prevailing power structure for influencing public transportation goals and policies is unique to each urban of a technical, noncontroversial nature (B-3, p. 24). Other evidence indicates that reform institutions are associated community, and may be dependent on many factors both with lower voter participation. The creation of highly personal and institutional. These include leadership and centralized city government simplifies the task of voters interests, the power to tax, funding sources, implementation in some ways, but it may increase their sense of remoteness power, and the particular social and economic structure of from government and inability as individuals to have much the community. Moreover, there is a complex set of federal, state, and local guidelines and laws governing the effect upon local policy (B-5, p. 538). This has important implications for those who plan and coordinate citizen development of programs and the application of funds for implementation. Although public transportation goal and participation activities in metropolitan areas. Finally, it is felt that reformed institutions reflect local policy determination is viewed primarily as a local respon- political culture, but do not substantially change it (B-3, sibility, many more officials, agencies, and interest groups p. 37). That is, the policy conceptions of official decision- now have responsibility for providing input into the goals makers (e.g., mayors, city councils) do not necessarily and policies process than ever before. incorporate any substantive conception of the areawide With such diverse influences, it can be seen that unilateral public interest. In a similar way, the establishment of such goal and policy decisions are impossible. The goal and institutions probably does not measurably affect the pri- policy process requires the coordination of an interorganiza- marily submetropolitan political attachment of citizens. tional effort in order to assure the most efficient investment of resources for public transportation. This approach is PARTICIPANTS IN THE PUBLIC TRANSPORTATION not an easy one to implement as the interests of various participant agencies have been traditionally specialized GOALS AND POLICIES PROCESS in areas of land use, highways, and transit. Current federal Participants in the public transportation goals and policy guidelines (B-6) call for the newly organized metropolitan process can be subdivided into three general categories: planning organization, state department of transportation, (1) government as represented by elected officials and and transit operating agencies to jointly carry out the short- appointed agency officials, (2) professional and technical range urban transportation planning process. The three planning staffs of transportation and urban planning agen- organizations are called to participate with local elected cies (professional, managerial people concerned with the representatives in establishing public transportation goals, operation of public transportation services), and (3) policies, and programs. Citizen involvement is required, citizens as individuals and groups. Certain categories of but the participant role of the citizen is viewed as advisory participants, such as professional planners and appointed in scope. The key to making this concept work is for officials, typically work cooperatively through established someone in one of the organizations to assume the respon- planning or implementing organizations (i.e., transit au- sibility for coordination among the three groups. thorities, metropolitan planning organizations). Partici- Three main types of goal and policy process roles that pants may also work cooperatively through the Policy participants may perform are coordination, advisory, and Committee, Technical Coordinating Committee, or Citizen decision-making (see Table B-I). Coordination essentially Advisory Committee structure in arriving at public trans- involves working arrangements between two or more groups portation goal and policy decisions. participating in the process. The advisory role may be one The power to influence public transportation goals and 71

of reacting to information or providing information related -4 U 00 J ' CGJ to goals and policies. Decision-making represents various C - e 0 0 JV C actions associated with the process. C O Figure B-i shows the principal participants and groups I.4 and describes their roles according to the stages of the '-4 U 0 0 0.4 C.4 4j public transportation goals and policies process. Individuals M 0 0 0. 4JU and groups that directly determine policy are included, as o .. 0 J ..l4 C ..4U ...l .-0 4~ > M 0.0. well as those who may lack direct decision-making power 4 0 di -4 but whose interests should be considered in obtaining the -4 S • views of the diversity of community interests. There will • . . be variations on this scheme for each urban area. There- O 41 0._I CC fore, Figure B-I is an illustrative guide that will need to be U C.-4 adapted to the particular situation. Normally, there will Z 0 00 .4 0 E0 ) _I'0 .-Ø be considerable overlap between specific individual partici- '0 0.0 0 0 _I pants and organizations depending on the multiplicity of U o 50.4 ' individual roles and the degree of involvement in trans- _0 0-40 0.0 U.4..40. portation matters. For example, certain elected officials, o.1 such as the mayor and members of the city council, may 4- serve on the transportation policy committee along with others not otherwise listed. The remainder of this appendix offers general guidelines for the identification and selection of participants for the public transportation goals and policy process, discusses the specific responsibilities of each participant group, explores questions of participant influence and interest in public - I. S S 0. transportation policy issues, and indicates possible difficul- 5

ties in securing participants' cooperation. ALI S

GENERAL PURPOSE GOVERNMENT

Elected Officials funding or the nature of funded projects—although this will vary among communities. Even if the mayor appoints Elected officials of the urban area exercise considerable decision-making authority in the determination of public the members of the transit board, they are often appointed transportation goal and policy priorities. Moreover, the for a fixed term and cannot be removed during the interim. The legislative powers of mayors vary widely. In all cities responsibility for subsidizing operating costs has been traditionally considered a responsibility of local government. they may submit messages to the council and recommend Such appropriations require the approval of the principal policy. The recommendations will carry whatever prestige the mayor possesses in the community elected officials of the community. Elected officials are (B-7, pp. 291-292). also familiar with the community environment and are a In cities where mayors are chosen by the council, they logical source for information about community problems almost always have voting power equal to that of other and for identifying specific citizen participant groups. council members. However, only about one quarter of the mayors who are elected directly have the power to cast a Although it is vitally important that these officials par- vote on all issues coming before the council. Most mayors ticipate in the determination of public transportation goal preside over meetings of the city council, and this gives and policy priorities, it may not be easy to obtain their them an opportunity to cast votes in case of a tie. The veto cooperation. It is important to emphasize in communications with elected officials that, by being responsive to the power over municipal ordinances is a source of legislative strength for many mayors. However, over one-half of the differing needs of citizen groups, a more equitable system directly elected mayors have no veto power, and only can be created. Because of limited resources, priorities one-fifth of the nation's mayors have full veto power over must be determined. Planned choices will help to achieve their councils. Mayors in mayor-council governments are maximum benefit from use of the community's available more likely to have veto power than mayors in commission resources. It is inevitable that choices will be made at some or council-manager cities (B-8, 56-57). stage in planning public transportation services. The diffi- pp. In weighing the relative influence of mayors in public transportation policy, culty in postponing those choices is that policies and consideration should be given to the extent of their legis- projects are apt to be selected in a haphazard way and will work at counter purposes. lative powers. According to Dye (B-7, p. 294): most mayors do not have the formal authority suffi- Mayors cient to deal with the many challenges facing city government. . . . The mayor's role is not usually to initiate Mayors typically have less involvement in the internal proposals for new programs or to create public issues. operating policy of a public authority, such as a transit The mayor is primarily a promoter of public policy; his authority, than they do on the level of public transportation role is to promote, publicize, organize, and finance the projects that others suggest.

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In the cities of Chicago, San Francisco, and Los Angeles, endowed the transportation development process with a political culture capable of negotiating trade-off decisions mayoral leadership was significant in promoting policies calling for coordination between modes and responding and managing the coordination and differentiation of to the demands of citizen groups with special needs. Ac- services at a faster pace than the routines of old-line bureaucracies would permit." cording to Jones (B-9, P. 134), "This participation has 73

City Councils mayor, and the seventh is the district engineer for the Generally, city council members as elected representa- Florida Department of Transportation. tives of local government should play an important role in determining transportation policy priorities. However, City Managers the actual policymaking role of council members varies a The council-manager form of local government is most great deal from city to city. Council has more formal power in commission or weak mayor forms of government. prevalent in small- and medium-sized cities. The essence of the plan is the placing of all powers of policymaking In these cases the council may itself appoint agency officials and ultimate control of administration in the hands of the and even prepare the budget. In other cities, particularly city council, which hires the professional city manager to strong mayor or manager cities, the council may merely supervise the day-to-day operations of municipal functions oversee city affairs and represent the interests of local (B-b, p. 479). Under this plan, there is a mayor, but the constituents (B-7, p. 282). Only in a few larger cities is the duties are largely ceremonial. The manager takes orders position of council members considered full time. In the from the members of council as a collective body, not as majority of cities council members give only part of their individuals, and then only in policy matters time and receive a modest compensation. This causes coun- (B-12, p. 81). In practice, it is very difficult to separate policymaking cils to be made up of retired persons or those who operate from administration. One is likely to find varying role their own businesses or professions and who can arrange orientations among city managers. Some view themselves their schedules to meet the demands of the offices (B-b, p.489). as political managers providing community leadership through their recommendations to their councils. Others Political accountability would seem to be a problem since see themselves as administrative managers, restricting as many as one-fourth of the nation's council members themselves to the supervision of municipal government and have been appointed by mayors to fill unexpired terms of avoiding policy recommendations (B-13). Probably the resigning council members (B-7, p. 283). However, if majority of professionally trained city managers view council members tend to reflect their backgrounds (i.e., themselves as political managers. They have had experi- social contacts and ethnic, racial, religious characteristics) ence in several cities and are unlikely to settle for a and the characteristics of their constituents, it is likely restricted administrative role. However, those without that this background will be reflected in policymaking. professional training or those who have occupied manager In a study of 87 city councils in the San Francisco Bay positions in the same community for many years are more region (B-il), there was a close correspondence between likely to accept the administrative role (B-14, 248-250). the goal and policy priorities of council members and pp. The manager who views himself as a political leader may public expenditure patterns. be just as likely as the elected official to avoid taking a Because city council attitudes and opinions are so closely public stand on controversial issues. His dependence on related to actual policy decisions, and council's views are city council for his job prevents him from being too extreme representative of their constituents, it is important that their in policy promotion (B-7, 288). For this reason, the public transportation goal and policy priorities be given city manager may be as reluctant as many elected officials considerable weight. Council's ability to affect public trans- to participate in establishing specific public transportation portation funding policies is significant, except in com- goal and policy priorities. munities where there are alternative public transportation The manager is the most important policy initiator in tax sources, such as a local sales tax or employer's tax. In most council-manager cities because he/she determines the absence of alternatives, operational funding is largely the agenda for city council meetings. This permits the dependent on allocations from a single source, such as the manager to determine the kinds of issues to be raised and general fund, which is under the direct control of the city the policy options to be considered (B-JO, council. p. 485). Thus, indirectly the manager will always play a role in policy- In communities where there is substantial influence on making. The city manager is in a position to perform a public transportation at the state level, city councils may valuable twofold information function—that of communi- have limited involvement in the process. State level cating information about council's goal and policy pref- influence may be accomplished through legislation, fund- erences, and channeling information about public trans- ing, and appointment of transportation authority boards. portation goals to the city council. In Portland, Ore., public transportation is partially funded by a payroll tax paid by local employers. The tax was Commissioners adopted as the result of legislation enacted at the state level authorizing the use of a broad range of financing The commission government serves many small- and sources by the state's transit districts. In some com- medium-sized cities. The functional organization varies munities, appointments may be made to the boards of from one city to another but usually is composed of five local transportation authorities by state officials. Repre- commissioners, each responsible for the administration of a major city function, such as public safety, public works, sentatives of state agencies may also be appointed as board welfare, parks and recreation, utilities, and finance. members in some instances. For example, in Jacksonville, Legislative and admininstrative roles are handled by the the transportation authority consists of seven members, same individual. Commissioners are most often elected three appointed by the governor, three appointed by the from the entire city at large on a nonpartisan ballot; this 74 encourages a feeling of responsibility for the entire city lottery receipts, and the like, are earmarked for use by rather than the interests of one small district (B-JO, p. public transportation. 477). This arrangement, however, is said to suffer from Since in most cases funds are assigned according to legislative mandates, the over-all level 'of funding and a lack of administrative integration and does not encourage the joint exploration of alternatives in setting policies. the priorities for specific public transportation expenditures The tendency is to have different departments moving in may be expected to vary with the importance attached to different directions in a sort of reciprocal "back-scratch- public transportation by state legislators. The assignment ing" arrangement. The lack of over-all policy leadership of funds for specific needs, such as capital improvements, operating assistance, or assistance for special projects (such is a definite weakness of the system (B-15, p. 120). Because commissioners represent the public, it is im- as reduced fares for the elderly) varies considerably from portant to incorporate their views into public transporta- one state to another. The priorities that state legislatures tion goal and policy priorities. Public transportation is an attach to public transportation goals and policies should area of concern that crosses the boundaries between be considered in determining priorities for the urban area. several city functions. However, there is potential conflict In particular, the public transportation funding support of interest between commissioners relative to the use of and service priorities of the delegates representing the particular urban community must be taken into account. funds for public transportation versus other public needs. Public transportation policy alternatives that require greatly Allocation formulas are often used for distributing funds, expanded or improved services, and those that can be but, in many cases, legislators distribute funds directly to achieved only at higher funding levels, are likely to be urbanized areas through legislative appropriations. Re- opposed by commissioners with vested interests in other sponsiveness to the priorities of legislators can be instrumental in assuring that an urban area's access to state public services. funding support is maximized. Education Officials Judges The chairman and members of local school boards The judicial branch of government plays an increasing are influential officials who should participate directly in role in dispute resolution of transportation matters, because establishing public transportation goals and priorities. As transportation policies often represent a compromise be- elected or appointed officials, they are recognized repre- tween competing interest groups. Such policies (whether sentatives of the community. There should be areas of or not a compromise) may be found by courts to be at common interest, especially in coordinating jointly spon- variance with environmental legislation dealing with the sored public transportation services. However, education preservation of air quality. Subgroups within the com- officials may perceive a conflict, inasmuch as metropolitan munity may turn to the courts to settle disputes over the schools face problems similar to those of public transportation because of rising costs and inadequate funding. location of transit facilities and provision of services, but courts will always be deciding within a legislated frame- As a result, innovative public transportation policies may work. Frequently, courts have been relied on for the be perceived as too costly by school officials and ac- resolution of conflicts among local units of metropolitan cordingly may be placed in a low priority position. None- 413). Even when the referendum theless, there should be no problem in gaining the co- government (B-17, p. is used to determine public transportation funding ques- operation of school officials to participate in the process. tions or to settle project level disputes, a pro-vote on a Their interests are clearly defined, and such officials are proposal cannot guarantee immediate implementation. The secure in the knowledge that the public would expect their availability of court appeals, such as court suits, may make views to reflect a high interest and priority for education. 26). It is particularly important Indeed, they may welcome such a forum for presenting the vote moot (B-18, p. to consider the decisions of the judiciary on controversial their views. policies affecting public transportation. State Legislators TRANSPORTATION AGENCIES With the increasing role of the state in supporting com- Metropolitan Planning Organization munity public transportation services, legislators' priorities should be incorporated into goal and policy decisions. Increased responsibility for public transportation plan- According to a study of the status of state-level support ning is being placed with metropolitan planning organizations. They are governed by boards consisting of appointed for transit (B-16), in 1975, 24 states provided some type of financial assistance to local communities. Such support and/or elected officials representing city and county juris- was utilized for capital improvements, operating assistance, dictions. According to the joint regulations issued by (B-6, p. 42, 976, technical planning, and special projects. However, the FHWA and UMTA on Sept. 17, 1975 states varied widely in the extent to which they par- the MPO, ". . . in cooperation with the state and with publicly owned operators of mass transportation services, ticipated in such programs. General funds were the most often used state sources of revenue for public is responsible for carrying out the urban transportation transit, with state transportation funds a distant second. planning process...... The additional land-use planning In a few cases specific sources of revenue, such as a sales responsibilities of some MPOs gives them a unique per- tax, cigarette tax, motor vehicle registration fees, state spective on the role of transportation relative to other com- 75

munity developments. The formation of MPOs has been the state has a stronger role in policy determination than a reaction to the complexities and problems of urbanized transit agencies. This is said to be the product of the areas with their multiple governments and conflicting in- historical fact that the process outlined under 3C of Sec- terests. The metropolitan planning organization is designed tion 134 of the Federal Aid Highway Act was originally to counter the fragmentation of local political power and concerned primarily with highway plans. Because of their the conflicting interests of implementing agencies by pro- traditionally strong policy role, DOTs will be particularly viding a forum for policy consensus on the use of com- interested in goals and policies that affect existing institu- munity resources. Ideally, the MPO performs dual co- tional arrangements for public transportation. ordination and decision-making functions in carrying out State DOTs can do much to encourage multimodal public the public transportation goal and policy process. transportation systems by supporting policies in which the The actual policymaking authority of the newly created highway product is differentiated through preferential bus MPOs varies from one urbanized area to another. With- lanes, joint rights-of-way development, and park-and-ride out taxing power, programming power, or deep-rooted lots. State support for such policies is uncertain, however, political networks, most MPOs have not developed suf- because the DOT acts as an umbrella organization under ficient policymaking influence to rival the power of state which previously independent modal agencies have been and local transportation agencies. Their limited influence placed (B-18, p. 98). Coordination at the state level is a is derived from the quality of technical planning activities prerequisite for the coordination of highway and transit and the consensus obtainable from their governing boards services at the local level. State DOT representation in (B-9, p. 125). Many MPOs exercise review power over goal and policy planning may be through the District applications for federal funding for local projects to assure Engineer, Director of Planning and Programming, and that they are consistent with regional development objec- other agency officials. State DOTs routinely assume the tives and are not duplicating services. Their power to veto responsibility of assisting local .urban areas in their public projects varies from one urbanized area to another. If an transportation planning efforts. MPO is given certain powers, such as the programming Clearly, the potential exists for state DOTs to play a of funds and veto and appointment powers, or if it is more active role in furthering balanced transportation able to enforce implementation of the policy plan, it planning. Cities may be faced with local political pressures becomes an important policymaking institution. that tend to favor particular transportation alternatives. The goal priorities of MPOs with respect to the potential State DOTs can function as impartial supporters of of public transportation to promote desirable land-use balanced transportation that takes into account the con- patterns and to alleviate community problems should be tribution of short-range transportation alternatives, such as given considerable weight in view of the expertise of vanpooling, carpooling, and designated lanes. In this way planners in these areas. The MPO board and staff would decisions can represent the most cost/benefit effective ways be expected to favor those policies that increase the of meeting the community's transportation needs. policymaking powers of the organization. The goal and policy priorities of the governing boards should be ac- Transportation Authority corded greater weight than that of the professional planning staff, although planners may affect the policy decisions A publicly owned transit service operating in a metro- of the board through information flows and powers of politan area will usually be managed by a policymaking persuasion. authority board composed of appointed officials. The policy responsibilities of the authority may range from encom- State Department of Transportation passing all metropolitan public transportation services to only one element of the transit service. The degree of the The state department of transportation (DOT) is assum- involvement of the authority is directly related to this ing a larger role in public transportation that formerly range of responsibility. A professional transit manage- was predominantly a local function (B-18, p. 97). In ment agency will be directed by the authority. Agency states not having a DOT, the urban planning division of forms range from being a private or nonprofit corporation, the state highway department may be responsible for under contract to the authority, to being direct employees transit planning and grant administration or a separate of the authority. The authority board has important im- transit office may be established. The state is responsible plementing powers so it should be among the principal for jointly coordinating the public transportation goals public transportation goal and policy decision-makers. The and policies process for urbanized areas. It should be noted authority cooperates with the state and the MPO in co- that in some states, funding for major urban areas goes ordinating the public transportation goals and policies directly to the city, thus creating a coordination problem. process. It further participates by helping to establish goal The federal agencies (FHWA, UMTA) channel con- and policy priorities and by providing information about siderable local transit funding support through the DOTs. public transportation operations to other principal deci- Moreover, the state agency administers state funding sion-makers. assistance, although priorities for expenditures are man- The authority exerts considerable influence over transit dated by legislation (B-li, p. 15). According to the operating policies that accomplish the implementation of findings of a U.S. Department of Transportation study of specific public transportation goals. Such policy areas in- factors involved in planning, selection, programming, and clude fare structure, area of services, geographic coverage, implementation of federal aid urban system routes (B-19), hours and frequency of service, customer information, 76 transfers, and service amenities. The professional staff other local public agencies. The group has significant in- of the transportation agency indirectly affects policy direct decision-making power by virtue of their planning expertise and knowledge of transportation matters; yet, through its recommendations and the information dis- semination to the board members. For this reason, the goal their principal role is to advise members of the policy and policy priorities of upper level staff should be in-fl committee. The policy influencing powers of the technical corporated into the priorities process. Generally, the pro- coordinating committee will vary from one urbanized fessional staff can be expected to favor goals and policies area to another. Members represent many areas in addi- which extend the influence, importance, and profitability tion to public transportation. Therefore, perceptions of of the operating agency. For this reason, the staff is likely the over-all public interest in relation to the provision of to favor increasing subsidies for public transportation, public transportation services could be expected to vary service improvements to gain increased ridership, and to some extent with the particular agency affiliation. How- increased policymaking responsibilities for the transit ever, there should be no obstacles in securing the par- authority. Gaining the support of the authority board and ticipation of committee members in the public transporta- the professional staff to participate in the public trans- tion goals and policies process. portation goals and policies process normally should not be difficult. Citizens Advisory Committee The citizens advisory committee is made up of influential TRANSPORTATION COMMIUEES citizens representing interests ranging from business to social needs. Their role is to offer opinions and to advise Many local areas have established organizational struc- policymakers. Their influence varies widely from one tures to assure cooperative transportation decision-making urban area to another. Also, in some communities, it may by local elected officials with input by technical and probe questionable as to the extent members truly represent fessional staff and citizens. A policy committee, technical citizens at large. It is not uncommon for certain citizen coordinating committee and citizen's advisory committee interests to have more influence on policy than that of were formed for this purpose. Many urbanized areas have planning professionals. It is important that coordinators carried over this structure under the new joint FHWA of citizen participation activities do not rely entirely on and UMTA transportation planning regulations. the committee for the total citizen input. Methods for selecting the membership of such committees varies and Policy Committee to rely solely on the advice of the citizens advisory com- Typically, composition of the policy committee includes mittee potentially opens the public transportation goals and the most influential elected officials (e.g., mayors, chair- policies process to public criticism. When citizen commit- men of state legislative delegations, county commissioners, tees are formed by permitting any citizen who wishes to and city council), principal appointed officials of MPO be on the committee to be a member, extreme negative and transit authority boards, representatives of state DOT, or proponent positions often prevail, thus not truly reflect- and appointed officials from other public agencies (e.g., ing the will of the community. housing and urban development, environmental protection, downtown development). In recognition of the in- SPECIAL CITIZEN INTERESTS fluence of transportation decisions on various aspects of Citizen interest group activity is probably more in- the urban environment, there is a trend toward giving fluential in affecting community goals and policies than greater decision-making responsibility to public officials it is in state or national policy areas. Interest groups at outside the immediate domain of transportation (B-18, the local level are close to the issues and the potential for p. 97). The policy committee may be given the direct affecting policy appears more real. The effect of various decision-making responsibility for establishing public citizen groups on local public transportation policy de- transportation goal and policy priorities or may only be pends in large part upon the structure of politics in the consulted for its opinions. Many of the members of the urbanized area. According to Banfield (B-12, p. 324), committee are directly responsible for the implementa- "The more decentralized is authority in a city, the greater tion of these goals and policies. The policy committee is the opportunity for unofficial institutions, especially represents a particularly good information resource for civic associations, labor and business organizations, and the identification of goal and policy areas and for identi- newspapers to exercise influence." fying citizen participants and their relative influence on policy decisions. There should be less difficulty in securing Business Interests/Groups the cooperation of members as they function in their Citizen influence, which helps to shape public trans- role of policy committee members than might be en- portation goals and policies, is not evenly distributed. countered without the unifying committee organization. Certain interests, such as business, frequently exercise greater influence on the political mechanism than other Technical Coordinating Committee public- interests. Because of- the close association- . of travel Typically, membership of the technical coordinating patterns to economic well-being, business people will committee is made up of principal professional staff closely monitor those transportation goals and policies members of the MPO, transit authority, state DOT, and that will facilitate or restrict the flow of customers and 77

employees to business centers and affect commercial and There are wide variations in media coverage of local industrial property values. The ability of business people policy issues and, hence, the potential for influencing pub- to clearly define their personal goals and to articulate lic opinion varies. For example, the cost of covering local their interests in terms of the effect of policies on the government and civic affairs is high for the typical metro- economic well-being of the entire community makes them politan newspaper, and the return in readership and among the most powerful citizens' groups. As a rule, busi- ultimately in advertising is usually low. Coverage of ness people are quite willing to express their opinions local public policy to a large extent is a luxury that the about transportation-related issues. paper indulges in from public serving motives. Generally, Representation by business interests in public trans- the more 'prosperous the newspaper or the less competi- portation goal and policy planning may be obtained tion it faces, the greater the emphasis on local public through the participation of the local chamber of com- policy issues (B-12, p. 322). merce, business groups representing downtown and sub- Newspapers, television, and radio stations are busi- urban interests, downtown development groups, and indus- nesses. Traditionally, the largest source of advertising try representatives. The interests of these groups will not revenues for metropolitan daily newspapers has been be identical, especially where centers of business and indus- downtown department stores (B-7, p. 304). Hurt by the try are widely distributed geographically throughout the declining role of the downtown department store with urban area. The businesses most active in public affairs the flight of citizens to the suburbs, such newspapers tend are those affected by government policy—such as depart- to support the position of downtown interests. According to ment stores, banks, utilities, contractors, real estate opera- Banfield (B-12, pp. 320-321): tors, bar and club owners, and television and newspaper interests (B-?, Whatever will bring more people into its circulation area, pp. 302-303). The relationship of business whatever will increase the people's spending power, what- interests and the public interest is indisputable and cannot ever will contribute to the prosperity of the department be ignored by decision-makers. store and other big advertisers, whatever will attract new Business support for certain public transportation goals businesses, and thus new advertising, to the city, is likely to have the ardent support of the paper. and policies is essential for their implementation. The opinions of business toward certain pricing and taxing This could be expressed by support for downtown park- policies—such as special parking taxes, congestion tolls, ing, nonsupport for congestion pricing policies, and sup- and business taxes—for the support of public transporta- port for improved public transportation service links to tion can be especially important as policymakers consider the central business district and from downtown to sub- the feasibility of such alternatives. Also, the responsibility urban areas. The support for public transportation could for implementing vanpool/carpool policies may be shared extend to the advocacy of subsidies for particular user by public and business interests. Implementation of many groups. The interest in creating a favorable climate for public transportation programs requires coordination be- downtown business may make metropolitan newspapers tween public and private interests, especially those in- deemphasize such environmental issues as traffic conges- volving multimodal transportation. Coordination is neces- tion and automobile pollution. The key to gaining support sary in reconciling the demands of industrial production of both business firms and the media is to demonstrate and the demands made upon the community's public the positive effect on customer patronage of proposed transportation and highway system through such policies public transportation planners. as the scheduling of staggered work hours and the loca- Frequently, opposing the views of the metropolitan daily tion of industrial plants. newspaper, the suburban daily and weekly newspapers are In arriving at public transportation goal and policy supportive of policies that increase access to suburban priorities, decision-makers must carefully weigh the shopping centers. Thus, they can be expected to take a strength of business opposition to specific policies against prosuburban position on metropolitan issues (B-7, pp. 304- the benefits of such policies to other community interests. 305). Because of the broader coverage, television and radio interests are not as likely to be confined to one

Media particular geographic area within the urban community. However, to some extent, they will consider the interest Because of the media's power to communicate messages of the principal local advertisers in formulating policy to the public and to selectively focus on community prob- positions. lems, the goal and policy opinions of media representatives Because the media's political influence on public policy (i.e., television and radio news directors, newspaper editors) is indirect, and because the media stands to gain from must be considered by principal public transportation the selection of favored policies, there should be no diffi- policymakers. In particular, television and newspapers culty in gaining the cooperation of its representatives to have been found to exert influence on citizen voting deci- participate in the public transportation goals and policies sions (B-20). In special referendums, voters are asked to process. support transit taxes or to react to special public transportation projects such as rapid transit systems. Because voters Civic Associations may be influenced on such issues by the media, it is im- At the local level, interest groups frequently assume the portant to determine media opinions concerning funding form of civic associations. Neighborhood groups and and project alternatives. homeowner associations are interested in maintaining low 78 tax rates, keeping a close watch on property assessments special difficulties. Many community agencies try to meet in their particular communities, and monitoring zoning the special transportation needs of their clients in securing changes. These groups have been interested in transporta- agency services, but the resources that are available for tion-related issues, such as the location of transit and this purpose vary widely. It is important to achieve highway facilities, transit taxes, and the quality of neighbor- greater coordination in the provision of community trans- hood public transportation services. portation services for such citizen groups. Costly duplica- Voter education associations are another type of civic tion of services may occur in the absence of cooperative (B-6) association that may be interested in expressing opinions planning. Federal short-range planning guidelines on public transportation goals and policies. The League of specify that a special effort be made to plan public trans- Women Voters is probably the largest organization of portation facilities and services that can be effectively this kind. Although these associations avoid direct political utilized by the elderly and the handicapped. Therefore, endorsement, they are moderately liberal on most policy it is particularly important to consider the opinions of questions and are likely to favor policies that challenge the social service organizations in determining public transportation goals and policies relative to transportation ac- status quo. Representatives of interested civic associations should cessibility and service characteristics required by these be invited to express their opinions on public transportation groups. goal and policy issues. If the interest in transportation Social services agencies are frequently headed by full- issues is at a high enough level, securing the group's co- time professionals who have a continuing interest in the operation should not be difficult. In some instances, pri- problems of special citizen groups. Securing their co- vate neighborhood interest groups may also cooperate operation in public transportation goal and policy planning with community government in the implementation of should be feasible. Social service interests are likely to carpooling and vanpooling policies. focus on policies that provide public transportation subsidies for their clients (i.e., young, elderly, low income, handicapped), door-to-door service, flexible scheduling, Social Services special equipment (e.g., handrails, wheelchair lifts), and Various voluntary and public social service organiza- policies that facilitate access to health, commercial and tions serve the needs of individuals and families in the recreational centers. urban community. A partiallisting of these organizations is contained in Table B-2. The organizations focus on the Environmental Groups needs of the handicapped, the young, the elderly, the low-income citizens, and the citizens facing a variety of Local environmental organizations exist in most metropolitan communities. They may range from local chap- ters of the nationally influential Sierra Club, Audubon Society, or Clean Air League to local groups interested TABLE B-2 in improving some specific aspect of the local environ- PARTIAL LISTING OF COMMUNITY ment. Traditionally these groups have opposed highway SOCIAL SERVICE AGENCY construction, but their views toward public transportation PARTiCIPANTS are generally supportive. Public transportation planning is required to incorporate the consideration of environ- Muscular Dystrophy Association mental impacts, so the opinions of environmental groups American Cancer Society American Red Cross are important in evaluating public transportation goals United Cerebral Palsy and policies—especially policies that might lead to con- Easter Seal Society struction of mass transit facilities. The required environ- Cystic Fibrosis Foundation The Arthritis Foundation mental impact statement serves as a public disclosure Associations for the Blind mechanism making information on proposed projects avail- Associations for Retarded Children Physical and Vocational Rehabilitation Centers able to interested parties, such as environmental groups. Mental Health Associations In recent years, environmental interests have success- Community Councils on Aging Senior Citizen Nutrition Centers fully used the courts to halt projects that threaten en- Community Hospitals vironmental quality. Environmentalists could be expected Community Action Agencies to favor policies that advocate the utilization of high United Way Religious Social Services occupancy vehicles as a means of conserving energy and Urban Ministries reducing air and noise pollution. Such organizations Goodwill Industries The Salvation Army would be likely to welcome the opportunity to participate Legal Aid Societies in public transportation goal and policy planning. If en- Outreach Centers vironmental interests can be brought into the goals and The FISH Urban League policies process prior to project development, conflicts Child and Family Services may be minimized at later stages of system planning. Department of Human Services Girls' Club Boys' Club Religious Interests Big Brothers - Big Sisters, Inc. YMCA Representatives of the community's churches and 79

church-related organizations should be invited to express social services, claim to be able to define the mobility needs their opinions on public transportation goals and policies. of the transportation disadvantaged. However, there are Ministers, priests, rabbis, and leaders of religious lay no defined citizen interest groups who claim knowledge groups are frequently participants in community decision- of the special needs of transportation consumers with making and may be very influential in some communities. access to an automobile. If, for example, the community The Catholic church and its many lay organizations are places a high priority on the policy of reducing dependence concerned with the operation of parochial schools and on the automobile as a means of alleviating community accordingly the transportation needs of students. Protestant problems, more must be learned about the preferences ministerial associations and Catholic social service groups of the public transportation nonuser. are concerned with the public health, welfare, housing, Transportation needs probably are not just basic mobility and transportation needs of the community (B-7, p. 305). needs but relate to a variety of attitudes and preferences Metropolitan churches also have an interest in the changes of user/nonuser groups. In order to be able to predict occurring within the urban area, which may affect the with any degree of accuracy whether the public trans- size and composition of their congregations. Many churches portation goal and policy priorities established by decision- have developed their own transportation systems to meet makers can be translated into programs and services that special travel needs. will be utilized by transportation users, the attitudes and preferences of specific citizen groups must be studied in Education Interests greater detail. On-board surveys are utilized for studying Educational institutions at all levels may have an interest the needs and mobility patterns of the public transporta- in coordinating student transportation services with public tion user. User groups can provide important insights transportation service offerings. They are likely to support into the need for service improvements. Unfortunately, special subsidies for students, scheduling that comple- the cost of obtaining the opinions of public transportation ments class schedules, and geographic coverage that makes nonusers is high, particularly since the state of the art it possible for students to utilize public transportation has not yet established with precision the kind of informa- services. Boards of education and parent-teacher association that is necessary to satisfactorily predict usage. In- tions are formalized groups whose opinions should be formation about personal travel behavior, transportation sought. attitudes and activities is necessary but expensive to the public transportation goals and policies process. Telephone Public Transportation Employees and and home survery methods are frequently utilized to study Union Representatives the nonuser. Interest in public transportation goals and Public transportation employees have a personal interest policies typically will be greater for the user group because in local public transportation policy decisions and often of its dependence on public transportation. possess information useful in formulating operating policy. Employees can provide important insights into the need tinaffiliated Citizens for new routes, difficulties in problems with existing In any metropolitan area, there is a large public whose routes, and peak traffic congestion areas. interests remain largely undefined and who do not often Transit unions are more influential in larger cities where seek to participate directly in goal and policy planning. the fragmentation of authority and public acceptance of While for all practical purposes they are unaffiliated, they union activity encourage union representatives to assert are important and they are taxpayers. Until threatened their employees' interests. For example, in New York by some specific policy, such as the enactment of a City the transit union has considerable political significance. special local transit tax or the construction of a major Employee work stoppages and other forms of protest transit facility, the general public does not seek to par- occur even though laws may prohibit strikes of municipal ticipate in policy formulation. Rarely do they perceive employees. The Transit Workers Union is organized to that the benefits of participation warrant the costly ex- bargain on behalf of both public and private employees penditure of time and effort. However, as a voter, the (B-7, pp. 305-306). Union representatives will be inter- citizen is able to voice approval or disapproval on major ested in transit operating policies (i.e., pricing, scheduling, public transportation decisions and can vote for elected levels of service) that affect union wage and hour objec- representatives whose views in relation to public trans- tives. Unions might also be expected to favor policies portation approximate their own. that are designed to increase the acceptance (i.e., increase Public acceptance is especially important in public ridership) of public transportation modes relative to the transportation financing policies. Willingness to accept a private automobile, policies that increase the amount of particular tax mechanism is dependent on factors such local operating subsidies for public transportation, and as historical precedent, attitudes towards supporting pub- policies that increase the likelihood of additional com- lic transportation, and general attitudes toward existing munity, federal, and state support. taxes (B-21, pp. VI-47). Apart from participation in the GENERAL PUBLIC democratic process, the citizen can only be invited to participate further via meetings, surveys, and the like. Public Transportation Users/Nonusers There is no way to ensure his participation beyond such Certain special interests, particularly those representing reasonable measures. 80

1975) CONCLUDING NOTE Federal Register, Vol. 40, No. 181 (Sept. 17, pp. 4297.6-42981. The public transportation interests of some groups/in- Dye, T. R., Politics in States and Communities. dividuals are broad, cutting across various goal/policy Third edition, Prentice-Hall, Inc. (1977). areas; whereas others are quite specialized (e.g., "how much KEANE, M. E., and ARNOLD, D. S. (Eds.), The is it going to cost me?"). Accordingly, the person or Municipal Year Book 1968. The International City group that guides and coordinates the goal/policy develop- Managers' Association, Washington, D.C. (1968). ment process -should take into account the interests and JONES, D. W. JR., The Politics of Metropolitan potential contributions of each group when attempting to Planning and Programming-Implications for obtain information about its preferences. Representatives Transportation System Management. Institute of of particular groups may have insufficient experience or Transportation Studies, University of California at interest in contributing information and opinions in cer- Berkeley (Nov. 1976). tain goal/policy areas. B-b. MORLAN, R. L., "Local Governments-The Cities." The importance of responses from different groups may The 50 States and Their Local Governments, J. W. vary. For example, preferences concerning subsidies are Fesler (Ed.), Alfred A. Knopf, Inc. (1967) pp. likely to be more important in goal and policy develop- 46 1-504. ment where they represent groups with broad community PREWITT, K., Labyminths of Democ- decision-making responsibility, such as city council mem- B-Il. EULAU, H., and racy: Adaptations, Linkages, Representation, and bers. Consideration should be given to weighting the The Bobbs-Merrill Com- responses of different participants in the process in ac- Policies in Urban Politics. cordance with the nature and importance of their roles pany, Inc. (1973). in goal/policy determination (see Fig. B-i for a review B-12. BANFIELD, E. C., and WILSON, J. Q., City Politics. of participant roles in the goals and policies process). Harvard University Press and the M.I.T. Press Variations in the roles and importance of the participant (1963). groups present a problem in deciding how to analyze B-l3. LOVERIDGE, R. 0., City Managers in Legislative responses as an input to goal/policy determination. Should Politics. Bobbs-Merrill (1971). responses be aggregated across all participants or should B-14. ALMY, T. A., "Local-Cosmopolitanism and U.S. responses within subgroups be examined? To gain a com- City Managers." Urban Affairs Quarterly, Vol. 10, plete picture both aggregate and subgroup analyses should No. 3 (Mar. 1975) pp. 243-272. be accomplished. This will enable the identification of B-IS. LINEBERRY, R. L., and SHARKANSKY, I., Urban goal/policy areas where consensus exists and where there Politics and Public Policy. Harper & Row, Pub- are significant differences between groups. lishers (1971). Table B-3 summarizes the public transportation goal and B-16. CARSTENS, R. L., MERCIER, C. R., and KANNEL, policy interests of various participant groups. There are E. J., "Current Status of State-Level Support for likely to be variations between communities as to the Transit." Transportation Research Record 589 interests and priorities of particular groups. (1976) pp. 14-19. B-l7. ROSENBLUM, V. G., "Courts and Judges: Power REFERENCES and Politics." The 50 States and Their Local Gov- ernments, J. W. Fesler (Ed.), Alfred A. Knopf, B-I. WINGO, L., "Introduction: Logic and Ideology in Inc. (1967), pp. 405-431. Metropolitan Reform." Refor,n of Metropolitan MANHEIM, M. L., SUHRBIER, J. H., BENNETT, E. L., Governments, L. Wingo (Ed.), The John Hopkins B-18. NEUMANN, L. A., COLCORD, F. C., JR., and RENO, University Press (1972) pp. 1-6. A. T., JR., "Transportation Decision-Making-A LONG, N. E., "Who Makes Decisions in Metro- Guide to Social and Environmental Considerations." politan Areas?" Metropolitan Politics, M. N. Daniel- NCHRP Report 156 (1975) son (Ed.), Little, Brown and Company, Inc. (1966) 135 pp. pp. 103-110. B-l9. "Urban System Study." Report of the Secretary of ERIE, S. P., KIRLIN, J. J., and RABINOVITZ, F. F., Transportation to the United States Congress Pur- "Can Something Be Done? Propositions on the suant to Section 149, Public Law 94-280, Federal- Performance of Metropolitan Institutions." Ref orin Aid Highway Act of 1976. U.S. Dept. of Transpor- of Metropolitan Governments, L. Wingo (Ed.), tation, Washington, D.C. (Dec. 1976). The John Hopkins University Press (1972) pp. THE AMERICAN INSTITUTE FOR PoLiTIcAL COM- 7-41. MUNICATIONS, Media and Non-Media Effects on DYE, T., LIEBMAN, C., WILLIAMS, 0., and HERMAN, the Formation of Public Opinion, Washington, D.C. H., "Differentiation and Cooperation in a Metro- (Feb. 1969). politan Area." Midwest Journal of Political Science, U.S. DEPARTMENT OF TRANSPORTATION, A Study Vol. 7, No. 2 (May 1963) pp. 145-155. of Urban Mass Transportation Needs and Financ- B-S. MORLAN. R. L., "Local Governments: An Em- ing. Report of the Secretary of Transportation to barrassment of Riches." The 50 States and Their the United States Congress pursuant to Section Local Governments, J. W. Fesler (Ed.), Alfred A. 138(a), Public Law 93-87, Federal Highway Act Knopf, Inc. (1967) pp. 505-549. of 1973, Washington, D.C. (July 1974). TABLE B-3 ILLUSTRATIVE PUBLIC TRANSPORTATION GOAL AND POLICY INTERESTS OF PARTICIPANT GROUPS

Illustrative Public Transportation Illustrative Public Transportation Participant Group Goal and Policy Interests Participant Group Goal and Policy Interests

Officials of General State Department of • Increasing institutional responsibil- Purpose Government Transportation ities • Funding priorities of public transpor- • Policy development tation relative to streets and high- Mayors • Overall subsidy level ways City Councils • Allocations to specific Citizen groups • Highway policy facilitating multimodal City Managers • Resolution of community problems transportation Commissioners System modes and characteristics • • System modes and characteristics School Boards • Funding sources • Consistency of goal/policy priorities Institutional responsibilities for goals • with state and federal public trans- (policies, program planning, portation programming assistance implementation) policy State Legislative • Level of local funding assistance • Consistency of goals and policies with • Policy development state priorities for receiving assistance for capital improvements, operating assistance, technical Transportation Authority Operating policies (e.g., fare structure, planning and special projects geographic coverage, hours and fre- • Institutional responsibilities quency of service, amenities, customer • Funding priorities information) Judiciary Internal management policies • Compliance with environmental air Increasing institutional responsibilities quality and energy conservation particularly coordination (i.e., car- standards and objectives pool, vanpool) and implementation • Effect of goals and policies on corn- powers murlity economic and social well- Cooperative arrangements for implementing being policies (e.g., taxis, social service • Impact of alternative funding sources agencies) • Institutional responsibilities System modes and characteristics Policy development Transportation Agencies Special Interest Groups Metropolitan Planning . Increasing institutional responsibil- Organization ities (e.g., review, veto, appoint- Business • Support policies which ensure economic ment, implementation and enforcement well-being of central business district powers) and suburban shopping and commercial Consistency of goals and policies with centers--usually those which increase urban development objectives - access and funding metropolitan goals • Support for shopping and personal business Funding sources trips • Overall subsidy level • Preservation of business Commercial and • Allocations to specific citizen groups industrialproperty values. S System modes and characteristics • Oppose taxing policies which increase cost Policy programs consistent with federal of travel to business centers funding policies • Cooperation between public and business interest in provision of public transportation services 00 • Consistency between business policy (e.g., work schedules) and public transportation policy 00

TABLE B-3 (CONTINUED)

Illustrative Public Transportation Illustrative Public Transportation Goal and Policy Interests Participant Group Goal and Policy Interests Participant Group

Public Transportation . Favor increased policy-making responsibility of authority Media Public service to citizens Employees and Union • subsidies for public • Support for to of principal Representatives • Favor increased advertisers transportation Favor service improvements which increase Controversial issues • • ridership Preserving low property taxes and high • Favor policies which increase profit- Civic Organizations • authority and property values for homeowners - ability of transit Oppose community disruption of public support wage and hour objectives • knowledge of desirable transportation facilities • Interest and • Neighborhood interests favor increased service improvements access to public transportation services for all trip purposes General Public Voter groups favor progressive public • relate to satisfaction of transportation policies Transportation User! • Interests Nonusers personal transportation needs Needs vary widely across citizen groups Social Service Agencies • Favor policies which increase access to • and use of public transportation ser- • Research has not yet supplied a corn- vices by transportation disadvantaged plete description of the character- transportation such as increased subsidies, special istics and needs of seg- equipment, driver assistance, demand- user segments, particularly public transpor- responsive services and increased ments within the customer information on how to use tation nonuser category services Support public and private cooperation Unaffiliated Citizens • No definable interests of long duration • Occasionally interest may focus tempo- in supplying services • rarily on issues such as tax funding Favor public transportation to alleviate sources and the implementation of policy Environmental Groups • of large-scale community environmental problems through construction Oppose community disruption by transit transit facilities • higher taxes and facilities • Likely to oppose community disruption Religious Groups • Community well-being - • Needs of transportation disadvantaged • Sensitive to student transportation needs • Increase funding support for religious trips to all citizens • Increase access to religious centers in CBD and suburban areas • Coordinate the provision of transportation services

Education • Coordination of services to educational institutions and community • Place a higher priority on allocating funds to education than for public transportation 83

APPENDIX C

COLLECTING AND ANALYZING NEW INFORMATION

Existing information may not be sufficient for develop- Determine Information ing goals and policies for public transportation. It may That is Needed be necessary to supplement this important source with new information to eliminate specific gaps in needed data. Be- cause new information is costly to collect and analyze, it is important to determine needs and to develop a sys- Select Type of Study tematic process for meeting these needs with new information. The purpose of this appendix is to present an approach to collecting and analyzing new information for use in the goal/policy determination process. Sample Design and Data Collection A recommended process is shown in Figure C-i. The starting point is a careful assessment of the information that is needed in the goal/policy determination process. Based on these information needs, the various activities Determine Method of Data Collection shown comprise the major steps in planning and conducting a research study. Each stage is examined and suggestions for pursuing each stage in greater depth are provided. The intent is to show the major activities that comprise Design Data Collection Forms the new information collection and analysis process and to point out the important considerations in each major activity. A complete examination of field study research methodology is beyond the scope of the present discussion. Analysis & Inter- Where appropriate the reader will be referred to supple- pretation of Data mental sources.

DETERMINING INFORMATION NEEDS Prepare Study Report A variety of information may be relevant to goal/ policy determination. The key challenge facing transporta- Figure C-I. Collecting and tion planners is to identify information needed to guide analyzing new information. the goal/policy development process in a particular community. These needs will vary from community to community—depending upon the state of development of lems can be reduced through the expanded use of public public transportation, the nature and scope of public trans- transportation? What institutional arrangements for public portation activities, and other social, economic, and envi- transportation should be used? ronmental considerations. Generally, information needs In most cases assembling all of the information that is will fall into three major categories—environmental, so- needed may exceed the resources available to collect and cial, and economic. analyze the information. Because of this it will be im- Several specific questions often require answers in devel- portant for those responsible for the goal/policy develop- oping goals/policies for a particular community: What ment process to set priorities concerning various informa- transportation needs should be served by public transportation needs. Those needs with highest priorities should be tion? What types of services should be provided to different the focus of the information collection and analysis effort. groups in the community (e.g., health care, employment, An exploratory study may be necessary to determine education, etc.)? How committed is the community to specific information needs for goal/policy development. serving the needs of people with access to an automobile For example, the goal/policy coordinator might conduct vs. those without access to an automobile? What are the personal interviews with seleôted individuals in the com- various services that the community wants to consider munity who would ultimately participate in goal/policy offering such as conventional transit services, special com- determination. These interviews could be used to identify muter buses, dial-a-ride services, and various alternative the kinds of information policymakers would want to have services? How should public transportation be financed in order to formulate goals/policies. Transportation plan- in the community? What are the community benefits that ners should be prepared to suggest the type of information can be obtained from public transportation and what prob- needed in goal/policy development, because some partici- 84 pants may not be sufficiently familiar with public trans- The amount of information collected in combination with portation to identify needed information without being the number of respondents will influence both the cost given some general direction. and the time span of the data collection effort. The end result of this stage is an operational statement Consider the following example. The MPO in a large of the information to be obtained via a research study. metropolitan community surveyed (using personal inter- Development of a complete description of information views and a structured questionnaire) elected officials, needed is essential in guiding the information collection appointed officials, and transportation professionals. The and analysis effort.. Detailed planning of the effort is information collected included areas related to serving impossible without a carefully determined set of infor- different user groups, types of services offered, financing alternatives, institutional arrangements for public trans- mation needs. portation, and various other information areas. Out of a group of 60 people in the original list of those to be STUDY ALTERNATIVES surveyed, responses were obtained from 40. Frequent call There are two basic alternatives for obtaining new in- backs and other means of follow-up were unable to push formation in goal/policy development—an exploratory the response rate above that indicated. The time span for study and a comprehensive study. Both may be used, the study was approximately 45 days for the data collec- particularly when it is necessary to conduct an exploratory tion effort. Planning of the study plus analysis of the investigation for the purpose of identifying and/or refining results extended the total time of the study to 90 days. information needs. Alternatively, an exploratory effort may be sufficient for obtaining needed information. Each Cost/Benefit Analysis type is examined in the following, with particular emphasis The planner should carefully estimate the cost asso- upon its role, scope, and potential contribution in providing new information for goal/policy development. ciated with a proposed study and the potential benefits of the information obtained. If there seems to be little likelihood of the study results shifting priorities or alter- Exploratory Studies ing goal areas beyond their present state, the need for a The collection and analysis of existing information dis- comprehensive study should be questioned. Clearly, the cussed in Appendix A illustrates one type of exploratory most difficult aspect in assessing whether the study should study. The exploratory study may also seek to draw from be conducted is estimating the benefits obtained. Normally the knowledge and experience of those familiar with pub- it is possible to come up with reasonable cost estimates. lic transportation issues. Exploratory studies tend to rely Cost estimates for a proposed research study typically heavily upon published information and discussions with include the following categories: knowledgeable individuals. They are less comprehensive Study planning including sampling design, develop- and less structured than more formal research studies. ment of data collection instruments, and pretesting of ques- The preliminary exploratory investigation can supply tionnaire. the following types of information: Collection of data from participants in the study. A more accurate basis for operationally defining the Analysis and interpretation of data collected. objectives and scope of a formal research study, including Final report for the study. specification of information needs. Various factors will influence the total cost of a particular Identification of existing information to possibly study. Each additional respondent will increase the total avoid duplication of effort. cost, because interviewing costs alone can range from 10 Determination of whether over-all project costs and to 20 dollars for an interview requiring about 45 minutes time guidelines are realistic. for completion. Telephone or mail alternatives can reduce An establishment of a more accurate basis for esti- cost but are subject to limitations concerning the types of mating the possible impact of new information upon the information obtained and response rate. Typically, ex- goal/policy determination process. perience indicates that goal information is probably best Identification of potential problems to be avoided if obtained via personal interview if it is necessary to obtain a major information effort is undertaken (C-i, p. 66). a high response rate. Other factors affecting cost will include the scope of the study, the types of analyses per- Comprehensive Research Study formed, and the extent of interpretation provided in the study report. Total cost may range from a few thousand The formal research study is larger in scope than the dollars up to 10 thousand dollars and more, depending exploratory study, normally involving formal data collec- on the nature and scope of the study undertaken. Costs tion procedures (e.g., interviews, questionnaires, sampling, may be considerably higher in instances where substantial etc.). Sampling may be involved. Alternatively, if the citizen participation is involved in the research study. individuals providing information do not represent a large Assessment of the benefits of a comprehensive goal study group, it may be possible to take a complete census. The is largely a judgmental determination. Considering the information obtained in the study is usually recorded on significance of the public transportation mission in a com- some type of questionnaire. Responses typically are obtained from individuals representing a wider range of munity, as well as the magnitude of expenditures for the activity, it would seem reasonable that a goal study involv- community roles than in the case of the exploratory study. 85

ing a few thousand dollars would represent an acceptable hibitive in terms of time and costs. Care should be taken expenditure for improving the planning process. Key indi- to design the sampling plan so that a representative cover- cations of the need for a goal study include such consid- age of the population of interest is achieved. The analyst erations as: must be cautious when interpreting responses from ap- The extent to which changes are likely to be made proaches that may be based on nonrepresentative results. in the public transportation services for the community. Consider, for example, the possible bias that can result by Ambiguities present concerning the role and scope using a newspaper questionnaire survey to obtain citizen of public transportation in the community. response. To what extent are the responses obtained rep- Substantial conflicts among elected officials, appointed resentative of community opinions and preferences? This officials, and other policymaking groups in the community. type survey is likely to generate response from people with Rising cost of present public transportation services strong negative or positive opinions concerning public trans- without tangible benefits from increased community sup- portation. Yet, how representative are these opinions port. likely to be? Citizens who answer newspaper surveys may in some way be different, perhaps more liberal or even The output of a cost/benefit analysis should be a clear more conservative in their policy views than most citizens. signal to move forward with a goals study or to reject it When sampling approaches are considered, it is im- on the basis of cost and anticipated benefits. It is important that those preparing the sampling plan have a portant for the study planners to obtain indications of thorough understanding of sampling concepts and pro- priorities for different kinds of information. The study cedures. An introduction to sampling is provided by should then be designed around the high priority informa- Churchill (C-2) and Boyd, Westfall, and Stasch (C-3). tion areas. If an extensive field study is contemplated, such as a citizen survey, it is recommended that professional assistance be OBTAINING NEEDED INFORMATION obtained. Outside assistance is particularly important if The task of obtaining needed information consists of the study planners are not experienced in sampling. An illustration of the sampling plan used in Jacksonville, Fla., three major activities: determining individuals from which for a market opportunity analysis study is discussed in to obtain the information, selecting the methods to be used a separate report for this project. for obtaining the information, designing appropriate data collection forms. Methods for Obtaining Information

Determining Sources of Information A comprehensive listing and description of numerous information collection methods applicable to public trans- Three main participant groups in the public transporta- portation planning have been assembled in a two-volume tion goals and policy process (discussed in App. B) are publication by the U.S. Department of Transportation elected and appointed agency officials, professional and entitled Effective Citizen Participation in Transportation technical planning staffs of transportation and urban plan- Planning (C-4). Techniques described in this publication ning agencies, and citizens as individuals and as members that are applicable to the goal and policy process are in- of special interest groups. cluded in Table C-2. Many of the techniques discussed can The groups of people to contact for information must be used to obtain information from various groups in be identified. Then, one must decide whether or not to addition to citizen participants. conduct a census of each group or to sample within all From Table C-2 it can be seen that methods for obtain- or just some groups. Choice of participant groups should ing information can be classified as direct or indirect. In be based on the decision-making role of the group and the case of direct contact techniques, citizens carry on a existing information concerning group preferences. At a dialogue with public transportation decision-makers. Di- minimum, elected and appointed officials and representa- rect contact techniques may also include decision-maker tives of professional planning groups should be included. dialogues such as that between policy committee members. These are the groups that are designed to represent citizens Techniques, such as surveys or Goals/Policy Delphi, are in public transportation decision-making. classified as indirect because decision-makers and/or citi- The decision regarding a census or sample survey de- zens do not communicate directly with one another. Other pends, in part, on the size of a group, the ability of its considerations that should be used in selecting methods members to provide needed information, and the resources for obtaining information include participant costs, ob- available for information collection. A census is recom- taining community representation policy innovativeness, mended for small groups with major involvement and/or and total project costs. interest in public transportation (city council, transporta- The anonymity provided by an indirect technique may tion committees, etc.). The participants in a community be preferable when interpersonal problems could occur survey of transit attitudes, conducted in Knoxville, Tenn., as a result of status differences among participants. A in 1976, are discussed in Table C-i. fear of publicly contradicting those in higher positions In the case of a large group and when involving indi- can inhibit the expression of opinions and/or discussion vidual citizens, sampling should be considered. A prop- of policies that might benefit the community. The effects erly designed sample of individual citizens can yield a of other potentially detrimental conditions, such as personal representative response, whereas a census would be pro- mistrust, leadership difficulties, or a domineering personal- 86

TABLE C-i PARTICIPANTS IN A COMMUNITY SURVEY OF TRANSIT ATTITUDES

A relatively small group of "community leaders' was selected to represent various interests in the Knoxville-Knox County area. One hundred and forty questionnaires were sent to public office holders, transit operators/planners and representatives of citizen groups and social service agencies. The respondents were instructed by letter to complete the survey on behalf of their particular constituency, client group or neighborhood. A summary of participant groups and response rates is presented below.

A total of 60 public office holders were given the opportunity to participate in the survey. This group included the Knoxville City Council, the Mayor of Knoxville, the City School Superintendent, the Knoxville Transit Authority, the Knox County Judge, the Knox County Quarterly Court, the Knox County Board of Commissioners, the County School Superintendent, the Knox- ville-Knox County Metropolitan Planning Commission, and selected school board members.

Fifteen questionnaires were sent to officials directly involved in the operation of transportation systems or in planning for transportation services. Sixty-five representatives of citizen groups and social service agencies received transit questionnaires. The citizen group leaders represented community clubs, neighborhood groups and similar organizations from every geographic, social and economic element of the local community. The social service agency officials surveyed represented the elderly, physically and mentally handicapped, children, economically disadvantaged and minority inter eats.

The questionnaires were mailed to the selected group with a return, stamped envelope attached. The respondents were given approximately one week to complete the questionnaire and return it. A follow-up letter was sent four days after the original mailing to remind the respondents to complete and return the forms. The questionnaires sent to public offic holders, transportation operators/planners, citizen group leaders and social service agency representatives were color coded to enable the tabulation of results by respondent group. Return Rate Responding No. Surveys No. Surveys Group Sent out Returned (%) Public Office 32 Holders 60 19 Transportation 66 Operators/Planners 15 10 Citizen Group Leaders and Social Service 66 Agency Representatives 65 43 53 TOTAL GROUP 140 72

Source: Knoxville Metropoliteaan Ar Public TransportatiOfly, Part I f'f'nsportation Center, The University of Tennessee, Jan. 3977) p. 76-77.

difficulties and perceived inadequacies in expertise or edu- ity, can be minimized through the use of Delphi or survey techniques. Where few such problems are anticipated, as cation to personal preference. Ideally, both direct and indirect techniques should be employed so that participants, when status differences are indistinguishable or when most particularly the general public, may choose the forum members of the group are in agreement about major issues, committee and group interaction facilitates the process that they prefer. Cost of participating may be evaluated in several ways. of generating new approaches to problems. For example, First, for many the time required for participation is likely a social service symposium could be held in which partici- to be viewed as the most important cost. Time-consuming pants "brainstorm" about ways of making public trans- questionnaires, iterative techniques, and frequent and portation services more accessible to the elderly and handi- lengthy meetings may deter all but the' most interested capped. Indirect contact with decision-makers may be preferable citizens and those in positions of responsibility. Fortunately, most techniques may be modified to suit the time con- for those citizens who are uncomfortable participating in an open forum such as a public hearing or group meeting. straints of participants. 'Other costs relate to the effort that the participant must Reluctance to interact directly with officials could be at- make in initiating and sustaining the interaction. As a tributable to any number of factors ranging from language 87

TABLE C-2 INFORMATION TECHNIQUES FOR PUBLIC TRANSPORTATION GOALS AND POLICIES PROCESS

Direct Techniques

Meetings

Open Information Neighborhood Community-sponsored Neighborhood Planning Council

Transportation Committees

Policy Committee Technical Committee Citizen's Advisory Committee

Citizen Representative on Public Transportation Policymaking Bodies Public Information Programs Ombudsman Media-Based Issue Balloting Workshop/Symposium Value Analysis Task Force Fishbowl Planning Design-in and Color Mapping Computer-based Techniques Charrett

Indirect Techniques

Surveys (citizens, users-nonusers, public officials)

Personal Interviews Telephone Interviews Mailed Questionnaires Media Questionnaires

Goal/Policy Delphi Policy Capturing (Judgment Policy) Focus Group Discussions

*Adapted from techniques discussed in Effective Citizen Participation in Transportation Planning, Volumes I and II (U.S. Government Printing Office, Washington, D.C., 1976).

rule, a high level of interest in civic matters and community duce these costs for the general public, for, typically, it well-being is necessary to motivate participants when self- is this group who is most likely to devalue the benefits selection techniques (such as community meetings and of goal and policy participation. media surveys) are utilized. The costs of initiating the Another cost is the expertise required for participation. effort are greater for these techniques than for personal It is likely that many citizens overestimate the importance interviews, telephone interviews, and mail questionnaires of a thorough understanding of public transportation mat- in which the agency initiates the contact. Self-administered ters in advocating goals and policies. For these citizens surveys tend to require more effort to complete than those the costs of becoming sufficiently informed are perceived that are interviewer-administered. However, the greater to be so great that they do not attempt to gain additional costs may be partially offset by the higher level of interest information in order to participate. As a result, they do required for completing the self-administered survey. For not contribute their opinions, thinking them to be worth- an adequate representation of community interest, both less. Although citizens may lack a technical understanding self-selected and agency-selected techniques should be of system planning, they can become advocates for the utilized. effective and efficient use of community resources by in- Effort costs are substantially higher when participants sisting that the system serve specific citizen needs and con- are asked to make numerous, often tedious judgments as tribute toward the solution of transportation-related prob- in the case of the policy capturing technique. However, modification of the technique to incorporate computer lems. However, it is desirable that some participants have graphics stimulates participant interest and tends to offset special expertise or leadership responsibility. Techniques, the lack of variety in questioning (C-4). Numerous paired such as the Delphi and the committee, are more suitable comparison questions also impose considerable costs on for these groups. When techniques are designed for the the participant. A special attempt should be made to re- general public or consumer! users, the fact that no special 88 expertise is necessary should be communicated to these Extensive analyses and reporting (adapted from Ef- groups. Inappropriately designed instruments that ask for tective Citizen Participation in Transportation Planning information that is too detailed or unavailable to the par- Vol. II, pp. 272-273 (C-4)). ticipant impose additional, unnecessary costs that deter The costs of employing a particular technique vary. By all but the most well-informed. Ways of avoiding this relying on the existing professional staff to design a study, pitfall are presented in the section on designing the goal consultant fees can be avoided. Yet, there is usually a and policy questionnaire. trade-off. When the existing staff does not have the skills The way in which participants are selected will determine required for study and questionnaire design, it makes little how well the population is represented. A random (prob- sense to trade-off study validity and usefulness in order ability) sample of citizens typically will be more represen- to reduce costs. Selecting several smaller groups with con- tative of community views than a convenience sample, flicting goal and policy interests is likely to be more prac- regardless of the particular techniques employed. A more tical and less expensive than undertaking a large-scale common strategy is to depend on several techniques and probability sampling of community opinion. However, if participant groups to represent the diversity of community it is also necessary to obtain detailed information for mar- interests. keting analysis, it may be efficient to design a large-scale Policy innovativeness refers to the technique's potential study incorporating both objectives. In any case, the for generating new policy alternatives other than those opinions of key decision-makers (i.e., elected officials and initially suggested by the policy leadership and process agency officials) must also be obtained, because they oc- coordinators. For example, one of the principal advantages cupy positions of policy-making power and responsibility of the personal interview over the self-administered ques- in the community. Most importantly, whatever type of tionnaire is its flexibility. An experienced interviewer can study that is undertaken should be planned and imple- probe and encourage participants to contribute their ideas mented'on a sound professional basis. of how local transportation problems can be solved. Un-

fortunately, personal interviews are quite costly in com- Data Collection Forms parison. However, when a group has special expertise or when new approaches are needed, the technique may be Indirect techniques such as surveys, interviews, and worth the expense, particularly for small numbers. The Delphi techniques require the formulation of a series of interview is also preferable when participants cannot be relevant, well-worded questions and statements. Probably, assembled in a group or when the group does not provide the best way to begin is to outline or list the goal and the desired anonymity. The telephone interview is a less policy areas to be covered in the questionnaire. A re- costly alternative to the personal interview for large num- searcher often becomes so involved in the topic that opin- bers of participants and may be entirely satisfactory for ions and study perspective are clear to the researcher but the purpose. The telephone interview must be brief, how- may not be clear to participants. The words should be ever, since maintaining the participant's goodwill is essen- simple enough for the least educated participant. The tial for the completion of the interview. difficulties that may befall the designer of a public trans- Most direct participant contact techniques facilitate the portation goal and policy instrument are not unlike those generation of new policy alternatives. Community meet- confronted by researchers in other areas. Many excellent ings, committees, and the like promote such discussions, references (C-S through C4) are available to those desir- provided that unfavorable interaction problems do not ing a thorough review of the research process, including exist. The Goals/Policies Delphi can also be adapted for questionnaire design. A detailed examination of the design increased flexibility in which the initial three or four rounds of data collection forms is beyond the scope of this dis- are devoted to "brainstorming" specific goals and policies. cussion. The reader should refer to the references cited. The final criterion for selecting techniques, and fre- A concise, yet complete, discussion of primary data col- quently the most decisive one, is the total cost of the lection is contained in Chapter 6 of Churchill (C-2). project. Time and money costs are both important. Fac- Depending upon the survey research background and tors that will contribute to increasing the costs of a field experience of the goal study coordinator, it may be neces- study include: sary to obtain professional assistance in planning and executing the goals study. Nevertheless, there are some Large probability sample. design guidelines that are particularly important for those Lengthy questionnaire or interview. concerned with the study of public transportation goals Frequent and lengthy interaction meetings. and policies. The purpose of this section is to provide the Frequent attendance of public officials at public meet- questionnaire designer with selected guidelines to assist ings. in the generation of information useful to the development Complex research design. of a public transportation goal and policy statement. The Special expertise required to design information in- following questions and accompanying discussion highlight struments. several important issues. Many open-end questions. Follow-up of no responses. Do Participants Have the Necessary Information Unanticipated delays (decision-maker absence due to to Respond? legislative responsibilities and association meetings, participant unresponsiveness). Goal and policy areas should be within the participant's 89

experience either as a transportation consumer or a deci- officials and many citizen representatives, questions about sion-maker. For example, few consumers or citizen group the over-all quality of public transportation service char- representatives will have a knowledge of institutional ar- acteristics, such as on-time performance, frequency of rangements for public transportation for specific citizen service, and customer information, are very relevant. groups. Although many groups may have definite ideas about the importance of serving specific citizen groups, Will the Participants Give the Requested Information? it is unrealistic to expect all of these to give reliable information on precise subsidy allocations. Those decision- Elected officials and some political appointees may be makers who are actually responsible for allocating funds reluctant to "go on record" as supporting policies that ad- to public transportation services are among the few who vocate unequal distribution of subsidy funds among citizen are capable of making such distinctions. In some instances, groups (i.e., elderly, young, handicapped, citizens with opinions will be well enough defined to request participants access to autos) or expanding public transportation services to rank in order of importance the provision of public in order to attract particular citizen groups. Though it is transportation services to specific groups. Alternately, a inevitable that some citizen groups will benefit more than brief statement(s) may be presented and participants asked others, overt policy-guided discrimination counters the whether they agree or disagree. For example, a statement fair-share, equal treatment philosophy that characterizes might be presented as follows: American politics (C-9). Elected officials may tend to avoid commitments to specific policies, especially if they An important function of the community's public are considered controversial. Their hesitancy is apt to be transportation system is to enable low income residents in proportion to the funding responsibilities they possess. to get to and from work. The desire to maintain the public's favor is particularly Such opinion statements generate useful goal and policy strong if reelection is a personal goal. information. Although in some cases they fail to estab- Assurances of anonymity may be of some value in lish citizen service priorities, it is useful to know that cer- encouraging political participation. However, questions tain participants do not make such distinctions. Pretesting are likely to be answered with some thought to the possible more than one form of the instrument helps to determine impact of the goals study. The political leadership may the participant group's level of discrimination. Previous be understandably cautious, considering the many de- research has established that people will frequently express mands for additional funds received daily from agencies opinions in spite of their probable lack of information. It and community groups representing a wide variety of is therefore the responsibility of the instrument designers public goods and services. An understanding between to take precautions to avoid the pitfalls caused by varia- principal decision-makers that conflicts are inevitable and tions in information levels. are due to differences in the conception of the public interest should facilitate cooperation. Are the Questions Relevant? It may be easier to establish rapport, offer assurances of anonymity, and explain the study program to the elected An underlying reason for being uninformed on some official via the interview technique. In committees or group issues is the participant's lack of interest. When attitudes meetings elected officials are apt to be preoccupied with or opinions are requested on a topic that few have thought establishing the appropriate "posture" and are influenced about or really care about, the results are not likely to be by the views of the leadership. It could be argued, how- very useful. It is not uncommon to hear the comment that ever, that this is closer to the way policy is actually for- citizens are more interested in schools, health services, and mulated so techniques should try to approximate reality. public protection than in public transportation services. The traditional transportation policy committee typifies the For many citizens, public transportation is perceived to cooperative approach to policy formulation. be an inferior substitute for automobile travel. Policies that directly affect highway and automobile travel more Is the Question Content Biased Toward Particular closely relate to perceived needs. In these situations infor- Goals or Policy Alternatives? mation can be obtained more easily by adapting it to the participant's personal experience. For example, questions As questionnaire designers consider various policy alter- that ask citizens how to improve the community public natives, some may seem more feasible for implementation transportation system may be irrelevant for the nonuser, than others. Alternatives may be presented more frequently the occasional user, or even the frequent user of public or in such a manner as to bias participants in their favor. transportation service. Instead, the nonuser should be Sometimes the choice of a single term can bias responses. questioned about desired service characteristics irrespec- For example, the terms "transportation disadvantaged" or tive of mode. Public transportation users may have given "transportation deprived" are frequently used to refer to the system little thought. However, such questions as those citizens without access to an automobile—the elderly, whether they must wait long periods for service, whether the handicapped, the low income, and the young. The they usually arrive on time, or whether there is adequate latter terms are better descriptions of citizen groups than shelter while waiting relate service characteristics to per- the former and are less likely to bias participants in their sonal experience. This information is useful in establish- favor. ing goals and policies related to system efficiency and The identification of a policy with a prestigious person service improvements. On the other hand, for agency or agency can bias responses in a positive direction. For 90 example, the item "Do you agree or disagree with the The simple ranking technique is one method for deter- mayor's (or metropolitan planning agency's) proposal for mining priorities and is quite popular when the number a rail rapid transit system?" might have this effect. Simi- of criteria (10 or less) are manageable. Various forced- larly, the item "Do you support the proposed Hicksville choice ranking methods, such as paired comparisons, are Rapid Transit System?" enhances the chances of participant often used with larger numbers of items. One difficulty support. As phrased, the system appears to contribute to with forced-choice pairings is that frequently unrealistic the city's prestige and solicits feelings of civic pride. Un- items must be paired, which may antagonize some partici- less care is taken in wording questions, they can result in pants and elicit responses that are highly unreliable. For "leading" the respondent. example, having to make decisions between such "disadvantaged" groups as the handicapped and the elderly may Should Goal and Policy Questions be Open- or appear unrealistic to participants. Also, lists of paired comparisons are characteristically lengthy and time-con- Closed-Ended? suming to complete. In open-ended questions participants are asked to pro- Another way of "forcing" priorities is in the allocation vide their own answers to questions. For example, they of subsidies to public transportation services. On the as- might be asked to list the most important community sumption that the total subsidy is $100, the participant is problems or what actions should be taken to relieve traffic asked to allocate it among several citizen groups. The congestion. In the case of closed-ended questions, partici- subsidy allocations idea can be adapted to the financing pants are asked to select their answers from the list proof specific public transportation services, trip purpose vided. Closed-ended questions can be processed at a lower needs, or public transportation relative to other community cost because of the uniformity of responses. The greatest programs such as education. The reference list includes disadvantage of relying solely on closed-ended questions several sources (C-10 through C-14) that summarize meth- is that in the structuring of responses, some important ones ods of data analysis for obtaining goal and policy priorities. may be overlooked. Policies that could have contributed to community well-being remain undiscovered. An effort ANALYSIS AND INTERPRETATION OF should be made to be exhaustive in including all the pos- INFORMATION COLLECTED sible responses that might be expected. It is a good idea to support this effort by adding the category labeled "other Methods of analysis of survey information are exten- (please specify) ." sively covered elsewhere (see, for example, Churchill Chap. 12, 13, 14, and 15). The objectives of the In the case of closed-ended questions, the categories (C-2, discussion in this section are to examine several issues should be mutually exclusive. This is a difficult criterion associated with analysis and interpretation of goal/policy to meet when categorizing citizen groups. There are those citizens who are elderly, are handicapped, and have low information, to provide some guidelines regarding format, and to indicate suggestions for preparing the study report. incomes, and who also have access to an automobile. Simple dichotomous response categories (such as handicapped, nonhandicapped) meet the criterion but do not Issues in Analysis facilitate intergroup comparisons. Open-ended questions When various groups are involved in a goal study, the should be considered in instances where closed-ended analyst is faced with the question of how to consolidate structures do not fit the question area. If they are exten- the results. Both the total response to a question and sively used, the costs and difficulty of analysis are increased responses by particular groups need to be considered. considerably; so where possible, open-ended questions This is particularly the 'case when there are substantial should be avoided. variations between groups coupled with reasonable simi- larity in responses within groups. For example, how do Do Responses Yield Goal and Policy Priorities? the responses of elected officials compare with those of Because of variations in participant groups' abilities to transportation professionals on a given issue? It is recommended that analyses include comparison of responses discriminate between services to specific citizen groups between key groups. Where differences exist they should and other goal and policy alternatives, establishing priorities may not be possible in all instances. Nevertheless, for be presented in the study report. Otherwise, by only group- those participants who are able (and willing) to do so, ing all responses together, potential conflicts will be masked an effort should be made to establish priorities. Unless and the differences may emerge unforeseen later in the forced into making choices by limited resources, partici- goal determination process. One purpose of a goal study pants will tend to support many policies which they would is to identify areas of differences in issues/ goals/ policies. A question related to subgroup analysis is whether otherwise disregard when restrictions are established. The researcher has several options in selecting question and responses should be weighted according to the perceived importance of individuals and/or groups. For example, response forms for this purpose. Though rating along a common scale (e.g., Likert, Thurstone) is the most popular should responses of elected officials be weighted more heavily than those of appointed officials? There is clearly procedure for collecting the judgments of individuals, al- no simple answer to this question. The importance of in- ternatives may be either uniformly accepted or rejected, dividuals and/or groups will vary by community and thus contributing nothing to the determination of individual within the community, depending on the issue being con- priorities. 91

sidered. As an initial step, the goal study analyst should ratings, and other methods. However, measures of pref- determine the extent to which differences exist between erence/importance must be in a form that will enable groups. Then, if desired, weights can be assigned. Those priority determination. The need for this information responsible for goal determination should supply the underscores the importance of obtaining suitable measures weights to be used, because they will ultimately decide on so that analysis can indicate the priority and/or relative the questions and issues evaluated in goal/policy deter- importance of specific items. mination. Where appropriate, statistical tests should be used in Weighting may be desirable simply because of the rela- analysis. Testing of significance can be used to examine tive size of groups. The size of a particular group influences possible differences between groups. Confidence interval the character of the total aggregate response. For example, estimates can be computed when estimating population if there are 18 city council members and 6 transportation parameters from sample information (providing sampling authority members, the council influence on the total is of a probability type). Statistical analysis can enable response is three times greater than that of the authority. inferences to be made from survey information rather This is a particularly important consideration when the than simply describing the information collected. size of a group and its importance are unrelated or when all groups are considered equally important. Care should Format Guidelines be taken in analysis to identify differences that occur simply because of the size variations of different groups The purpose of this discussion is to offer suggestions included in a study. One n\ethod of coping with this regarding the format for presenting study findings. The problem, when it is desired to equally balance group im- case study of goal/policy information collection and anal- pact on study results, is to aggregate responses based on ysis discussed in Appendix D provides illustrations of the mean value of each group involved. This will give several possible formats. The presentation of information each group the same impact on a composite response, re- should be guided by the intended audience and the nature gardless of the size of the group compared to others in- of the information that is being presented. A basic rule to cluded in the study. follow is "keep it simple." The influence of group size on aggregate results from Often graphs communicate results better than tabular groups of unequal sizes is illustrated in the following and numerical formats. Consider, for example, the bar table: chart shown in Figure C-2. It conveys a considerable amount of information in a manner that facilitates an understanding of its content by the reader. Now, con- Mean trast the bar chart format with the tabular presentation Preference shown in Table C-3. The bar chart conveys the informa- on Subsidy tion in a more easily interpretable manner, although it for Transit * may mask important details. Elected Officials (16 people) .... 3.5 Particular attention should be given to format for Transportation Authority (6 people) 4.8 showing comparative responses, such as those from city Planning Commission (10 people) 3.7 council versus those of the transportation authority. Bar graphs and charts often can be used for this purpose, thus Aggregate Mean Preference Giving Equal Weight to All freeing the reader from detailed analysis in order to gain Groups: a comparative understanding of the results. See, for ex- 3.5 + 4.8 + 3.7 = 4.0 ample, 1st round and 2nd round Delphi results shown in 3 - Figure C-2. A format should be selected that will best communicate Aggregate Means Preference Weighting Group Responses results to the intended audience. Generally, the less tech- by Size nical the format the better. The examples shown in Ap- 16 (3.5) + 6 (4.8) + 10 (3.7) = 3.8 pendix D illustrate various ways of conveying survey 32 32 32 information. These represent only some of the possibilities. The choice of format depends on the type of data collected, * 1-5 scale with 5 denoting highest preference. purposes of the study, the intended audience, and other relevant factors. Thus, if responses from each group were considered equally important, aggregation based on group size would yield a Preparing the Study Report mean response of 3.8 compared to 4.0 where an equal "vote" is given to each group. The tendency would be The type and scope of the study report will depend on to understate preference somewhat when weighting by the use(s) to be made of the information. Since the nature size. of the information collected will often deal with issues One important objective of the goal study should be to and policies, there may not be one best way. The chal- determine priorities concerning various issues/problem lenge in preparing the study report is to properly convey areas/ activities related to public transportation. Analysis responses concerning the areas and issues investigated in should yield a basis for making priority assessments. This the study. Possible types of study reports include execu- can be accomplished through rankings, comparison of tive summary, working paper, and formal study report. 92

To what extent do you agree that each of the following are community problems?

Pollution by automobile hi .d Delphi

Inadequate parking facii

Traffic congestion

Shortage of gasoline

Traffic accident rate

Strongly DisaCrcc Noise level Disagree Undecided Agree Strip Development (Chapi Highway, Kingston Pike, Strongly Agree

100 80 60 40 20 () 20 40 60 80 100

PERCENT OP RESPONSES

Suu rce : David N. Crayons and John F. Ha rpor I)cl cram ing PtibJ ic Trans pot rat ion Go;t Is lor all II rbaii Community. (Transportation Center, The University of Tennessee, Knoxville, January 1915).

Figure C-2. Illustrative bar c/tart jormat.

TABLE C-3 ILLUSTRATIVE TABULAR FORMAT

Percentage of Respondents Holding Each Opinion

Strongly -- Strongly Community Problem Disagree Disagree Undecided Agree Agree

Pollution by automobiles 9(2)* 9(11) 19(15) 41(57) 22(15)

Inadequate parking facilities ( ) 12( ) 3(12) 47(62) 38(26)

Traffic Congestion ( ) ( ) 6( 6) 59(67) 35(27)

Shortage of gasoline ( ) 15(11) 19(25) 47(58) 19(6)

Traffic accident rate ( ) 22(22) 6(10) 63(62) 9(6)

Noise level 3(3) 37(30) 22(28) 38(39)

Strip development (10) 25(18) 9(13) 41(40) 25(19)

Source: David W. Cravens and John F. Harper. Determining Public Transportation Goals for an Urban Community (Transportation Center, The University of Tennessee, Knoxville, January 1975).

*Percentage in parentheses corresponds to 2nd round of Delphi survey.

Executive Summary itself, and would necessitate duplicating the work of Typically, this type of report will be presented in 8 to others. Survey research is a demanding and challenging 10 pages of carefully synthesized results from which the activity. The discussion in this chapter is intended to reader can gain insights into the study results, assist those responsible for goal/policy coordination to improve their professional approach to survey research, or Working Paper alternatively to guide them in working with professionals.

This type report is developed primarily for communicat- REFERENCES ing study results to key participants in the goal/policy development process. The paper would be written by those C-I. MYERS, J. H., and MEAD, R. R., The Management closely involved and familiar with the process. of Marketing Research. International Text Book Company (1969). Formal Study Report CHURCHILL, G. A., JR., Marketing Research: Meth- odological Foundations. The Dryden Press (1976). This format is used for widespread distribution of study BOYD, H. W., JR., WESTFALL, R., and STASCH, S. results. It includes material comparable to the working F., Marketing Research-Text and Cases. Fourth Edi- paper but is developed in greater depth, particularly in tion. Richard D. Irwin, Inc. (1977). areas where greater explanation is needed in order to U.S. Department of Transportation, Effective serve readers with a variety of interests and knowledge Citizen Participation in Transportation Planning, about public transportation. Using the Formal Study Re- Vols. I and II. U.S. Government Printing Office port as a model, the major sections that would be in- (1976). cluded in the report are: C-S. BABBlE, E. R., Survey Research Methods. Wads- Purpose and scope of the study. worth Publishing Company, Inc. (1973). Summary of major findings. C-6. BACKSTROM, C. H., and HURSH, G. D., Survey Re- Detailed presentations and discussion of findings (may search. Northwestern University Press (1963). be organized by participant groups or areas of in- C-7. PAYNE, S. L., The Art of Asking Questions. Prince- vestigation or combination of the two), ton University Press (1951). C-8. Discussion of implications of findings relative to goal SELLTIZ, C., JAHODA, M., DEUTSCH, M., and CooK, policy development. S., Research Methods in Social Relations. Holt, Recommendations with respect to goal/policy develop- Rinehart and Winston (1959). ment. JONES, D. W. JR., The Politics of Metropolitan Planning and Programming—Implications for CONCLUDING NOTE Transportation System Management. Institute of Transportation Studies, University of California at The objective of this appendix has been to examine Berkeley (Nov. 1976). various aspects of the task of collecting and analyzing FJSHBURN, P. C., "Methods of Estimating Additive new information for use in the goal/policy development Utilities." Management Science, Vol. 13, No. 7, pp. process. Seeking new information should be selective and 435-453 (Mar. 1967). based on a clear determination of need. The need for new C-il. SCHOFER, J. L., and STUART, D. G., "Evaluating information should be carefully analyzed in terms of its Regional Plans and Community Impacts." Journal costs and its estimated benefits. The intent of gathering of the Urban Planning and Development Division new information is to enable policy-makers to better study —Proceedings of the American Society of Civil and formulate goals/policies for guiding the public trans- Engineers. Vol. 100, No. UP1, pp. 93-109 (Mar. portation planning process. When there are gaps in infor- 1974). mation required to guide the goals process, then the con- EDWARDS, A. L., Techniques of Attitude Scale Con- tribution of new information can be substantial. struction. Appleton-Century-Crofts, Inc. (1957). The focus has been on demonstrating a logical process THURSTONE, L. L., The Measurement of Values. to be followed and on examining key issues/aspects of the The University of Chicago Press (1967). various stages in the process. A complete examination of TOREGSON, W. S., Theory and Methods of Scaling. each task in survey research would require a volume in John Wiley and Sons, Inc. (1967).

APPENDIX D

CASE STUDY OF GOAL/POLICY INFORMATION COLLECTION AND ANALYSIS

This appendix describes the development and testing of and policy information. Many urban areas clearly per- a methodology for generating public transportation goal ceive the need to conduct a comprehensive goal and policy 94 study. Other areas may be uncertain whether the informa- an attempt was made to collect goal and policy information gained from such an effort will be worth the cost. tion from a representative sampling of citizens. In the By selecting an urban area in which the need for a com- first study conducted in late 1972, a random sample of prehensive study is recognized and by designing a study 1,000 citizens was obtained from the records of the that meets the area's needs, it is hoped that other urban Jacksonville Electric Authority. This interview study was areas may be better able to assess the need for a com- one of the major elements of the Jacksonville Urban prehensive study and to design a comprehensive study to Area Transportation Study (JUATS) initiated in August suit their particular situation. Because of time and cost 1972, with funding support from federal, state, and local constraints the scope of this study should be viewed as organizations. Study findings tended to support the gen- illustrative rather than totally representative of all rele- eralized statement of mass transit goals and objectives vant individuals and groups. For example, cost limitations adopted by the Technical Coordinating Committee for the precluded incorporating citizen participation into the study. Jacksonville urban area (Campbell, Foxworth and Pugh, Inc. and Reynolds, Smith and Hills, Inc., Jacksonville Urban Area Mass Transportation Study (Nov. 1974) pp. SELECTION OF URBAN AREA 14-15). The site for the goal/policy study was the urban area In 1976 a JUATS Major Review Update was conducted encompassed by the Jacksonville, Fla., standard metro- by the Jacksonville Area Planning Board. Mass transit politan statistical area (SMSA) and portions of adjoining and streets and highways questionnaires were administered Clay and St. Johns counties represented in urban trans- to citizens and government officials. A total of 1500 portation planning. Jacksonville was also the setting for responded to questionnaires published in the local news- field tests concerning other methodologies related to the paper, distributed at meetings of special interest citizen short-range public transportation planning process. These groups and administered in interviews with city council included extensive market analyses of data from a multi- members. stage survey of Jacksonville households. Market survey data were designed to provide a basis for segmenting Study Participants public transportation nonusers and designing public trans- Participant selections for the current study were based portation systems to serve selected market segments. on prior studies, consultation with local transportation Of the several urban areas visited, Jacksonville was planners, and experience of the research team. Transporta- chosen by the research team as the most appropriate site tion planners from the Jacksonville Area Planning Board for conducting the related goal and policy, marketing and compiled a listing of 44 individuals representing identifi- engineering activities. Jacksonville possessed several char- able citizen interests. Environmental, business, civic, com- acteristics that led to its selection as the study site. With munity, educational, and media representatives were among a population of approximately 530,000, the Jacksonville those included in the listing. Planners also compiled a SMSA was large enough to permit the examination of listing of 75 individuals directly responsible for making various aspects of the project in a single location, yet not public transportation decisions in the Jacksonville urban so large as to make field research unmanageable. The area. Decision-making categories consisted of elected and present stage of development of public transportation appointed officials of general purpose government, ap- services in Jacksonville was a factor influencing its selec- pointed officials and professional staff of government agen- tion. The local transportation authority provides a good, cies, and members and advisory members of transporta- conventional transit system consisting of approximately 150 tion committees. Individuals often assumed multiple vehicles at peak hours. The improvement of services over decision-making responsibilities associated with their dual the past three years has contributed toward increases in roles as public officials and committee members. Local ridership, particularly for work-related trips. A significant officials made up the largest single group, although state portion of this ridership increase has come from the non- and federal officials were also represented. captive sector. Those involved in planning and providing The decision was made by the research team to collect public transportation services indicated a willingness to goal and policy information from the principal public develop additional services, and a desire to gain a better transportation decision-makers. Clearly, this was the group understanding of existing and potential markets. They whose goal and policy preferences were the least under- indicated their interest in cooperating in such a project. stood. Previous studies sampled citizens-at-large as well as Because of this high level of interest, the research team special citizen interests. The preferences of decision- felt that it would be granted access to the information makers were notably underrepresented in these studies. necessary to carry out the study. Another significant factor Only members of city council were included in the 1976 in the selection of Jacksonville was the knowledge that, study. Moreover, there was no apparent attempt to while the major purpose of the goal/policies study was to analyze their responses apart from the total sample. field test public transportation planning methodologies, the Table D-1 contains a summary of the membership of specific findings would be useful to those involved in all each decision-making group. Perspective respondents were phases of public transportation planning in the urban area. selected on the basis of their membership in one or more of the groups listed. A total of 62 participants were asked IDENTIFYING AND SELECTING RESPONDENTS to participate in the study. The 13-member Duval legisla- In two previous studies conducted in 1972 and 1976, tive delegation was not included. The legislature was in 95

session at Tallahassee during the study period and attempts to contact the majority of legislators were unsuccessful. The cooperation of each of the remaining 62 individuals was sought in the study. A brief description of the public transportation roles of each respondent group follows.

I CO Mayor -4 0 03 03 The mayor of the City of Jacksonville possesses considerable appointment powers with regard to board membership on the major public transportation planning and implementing agencies. Subject to confirmation by the Jacksonville City Council, the mayor appoints three of the seven members of the Jacksonville Transportation Au- thority and all nine members of the Jacksonville Area Planning Board. The mayor exerts indirect influence on the policymaking and planning activities of these agencies through his choice of appointees. Chairmen of these boards are also members of the metropolitan planning organization (MPO). The mayor's direct decision-making roles include his vote and influence in determining the level of local funding support for transportation authority operations, membership to the MPO, and influence as a member of the Transportation Policy Committee. The mayor has the power to initiate and with the approval of city council to fund a variety of public transportation services. He is also in a position to provide policy leadership in coordinating public and private transportation services.

Jacksonville City Council Policy Committee

Members of the city council confirm mayoral appoint.- The 13-member Policy Committee includes the most ments to the boards of the transportation authority and influential elected officials, chairmen of transportation au- planning organization. Collectively, city council members thority and planning boards, representatives of the state play the principal role in determining local funding sup- DOT, chairman of the legislative delegation, and chair- port for local mass transit services. City council may also men of other public agencies. Although the committee is fund and/or implement other public transportation services consulted under informal arrangements, it is composed of of its choosing. the most influential individuals in the areas of funding, planning, and implementing services. Metropolitan Planning Organization Policy Committee Advisory Members The Jacksonville MPO provides a forum for policy con- The seven advisory members of the Policy Committee sensus by local officials on the use of community resources consist of the highest ranking professional executive and for urban transportation. The Jacksonville MPO may also planning staff of the local transportation planning and exert its veto power over applications for federal funding. implementing agencies, the Federal Highway Administra- Because it is politically viable, members include the prin- tion, the Florida Department of Transportation, and the cipal elected officials for the urban area as well as board departments of metropolitan government with a continu- chairmen for transportation and planning agencies. The ing interest in transportation policy. Though their role is chairmen of the port authority and school board are cur- advisory, many have primary roles in the initial develop- rently included, although they will not be represented after ment of publië transportation plans and programs. the current reorganization is complete. Technical Coordinating Committee MPO Advisory Members The 13-member committee is dominated by professional Representatives of the Florida Department of Trans- planning staff of local and state departments and agencies portation, Federal Highway Administration, and Urban concerned with transportation planning, public works, Mass Transportation Administration act as advisory mem- downtown development, port authority, and pollution con- bers to the local MPO. Their indirect influence in affecting trol. City managers from outlying areas are also repre- policy decision is considerable because of the increased sented. The committee approved the statement of mass availability of state and federal support for public trans- transit goals and objectives developed in conjunction with portation capital and operating expenses. the Jacksonville Urban Area Mass Transportation Study. 96

Their policy role is advisory; yet, many are responsible Respondents were asked to judge their individual ca- for developing public transportation plans for their respec- pability to help determine the public transportation goals tive agencies. and policies for the Jacksonville community. On a scale of 1 to 7 ranging from "not capable" to "highly capable," Jacksonville Transportation Authority (.'TA) Board the mean score for all respondents was 5.66 with a standard deviation of 1.36. Respondents tended to regard The seven-member JTA Board is the policymaking au- themselves as capable of determining goals and policies. thority for the principal public transportation implementing Respondents considered themselves somewhat less in- organization in the Jacksonville urban area. Three mem- fluential with regard to their assessed capabilities. On a bers are appointed by the governor and confirmed by the similar 7-point scale ranging from 1 for no influence to 7 senate, and three members are appointed by the mayor for highly influential, the mean score was 4.81 with a and confirmed by the city council. The seventh member standard deviation of 1.87. is the District Engineer for the state DOT. All members serve four-year staggered terms with the exception of the DETERMINATION OF INFORMATION NEEDS DOT representative who serves as a permanent member. The authority determines operating policy for the mass Three considerations played an important role in deter- transit services provided by the operating company under mining the need for various kinds of goal and policy contract to the authority. The authority's over-all purpose information: is to provide a coordinated transportation system for the I. Information needs were assumed to be community- urban area. To accomplish this purpose, the authority specific. That is, the goal and policy options should reflect possesses extensive powers relative to the construction im- the conderns and unique characteristics of the urban area provement and pricing of services related to the Jackson- to be studied. A situational analysis of Jacksonville and ville expressway system. The authority is authorized to additional discussions with Jacksonville planners were use- build roads' and bridges for the system and to establish ful in defining these unique information needs. and collect such fees as bridge tolls from the users of An extensive market analysis of Jacksonville public the service. transportation nonusers was conducted simultaneously with the goals and policies study. The objective of the market Jacksonville Area Planning Board (JAPB) analysis was to identify nonuser segments and to design The JAPB is the principal planning agency for the services that would attract nonusers away from their Jacksonville urban area. Its general purpose is to pro- automobiles. Therefore, information was needed con- mote coordinated land-use development. The nine mem- cerning the level of community support for implementing bers of the board are appointed by the mayor and con- improved services to this citizen group and how/whether firmed by the city council. The board has no formal such a policy would be viewed as contributing toward par- authority in the provision of public transportation services ticular goals. other than the power to recommend to JTA and to the city The choice of public transportation decision-makers government public transportation plans developed by its as the respondent group affected the type and range of planning staff in conjunction with representatives from goal and policy information that should be gathered. As a JTA. group they were assumed to be better informed than most citizens about public transportation. Because of this knowl- Background Information on Respondents edge, information could be gathered on goal areas not of general public interest, such as institutional arrangements A total of 45 decision-makers responded to the ques- for public transportation. A statement of goals and policies tionnaire (73 percent response). The response rate for in- should incorporate a level of specificity to allow for opera- dividual groups is given in Table D-2. Respondents were tionalizing and evaluating goal achievement. Because of also categorized according to their employment status in their background and experience with the issues, decision- the various governmental organizations at the federal, makers can be asked to make distinctions between policy state, and local levels. The responses for the categories options which the average citizen would not consider were almost evenly distributed with 33 percent elected meaningful. officials, 36 percent appointed officials, and 31 percent With these considerations in mind, a list of information professional staff members. The median number of years respondents expected to remain in their present capacity needs was developed. An initial step was to review pre- was three years. The mode was two years with 40 per- vious research relating to goal and policy development for urban communities. Preliminary lists of information needs cent registering this response. Both the mean and median number of years respondents were evaluated and modified by Jacksonville planners, the have resided in the Jacksonville area was found to be 24 project research team, and NCHRP panel members. These years. The range was from zero years for state/federal groups also reviewed various drafts of the questionnaire officials residing outside the urban area to 65 years for that were developed for use in the field study. In the final residents. The distribution would suggest that the majority listing, environmental, social, and economic goal and policy of respondents have resided in the area for a long enough areas were integrated into seven categories of information needs. Each category of information needs and its im- period to be well-acquainted with community problems and issues. portance is presented in the following. 97

TABLE D-2 GROUP MEMBERS RESPONDING TO GOALS/POLICIES QUESTIONNAIRE

Group Group Mem- Number of Group Percent of bership Members Respond- Group ing Respor.ding

Mayor 1 1 100

Jacksonville City Council 19 11 58 Metropolitan Planning Organization 8 6 75

Advisory Members to MPO 4 3 75

Policy Committee 13 10 77

Advisory Members for 7 6 86 Policy Committee

Technical Coordinating 13 11 85 Committee

Jacksonville Transpor- 7 6 86 tation Authority Board

Jacksonville Area Plan- 9 7 78 ning Board

Total 81 61*

*The number of group members responding exceeds the actual number of respondents (N=45) since some are members of more than one group.

Transportation Needs Served by Public Transportation expansion policies and the types of services that are likely Transportation needs are viewed as reflections of com- to receive decision-maker support. Implicit in the different involvement activities is the commitment of varying munity goals. It is therefore necessary to determine the role of public transportation in meeting selected trans- amounts of community resources ranging from the en- portation needs. For example, why would certain decision- couragement or regulation of the service to system ownership. Information about perceptions of service character- makers favor expanding services to those with access to istics (e.g., on-time performance) of existing services is an automobile? Reasons may relate to the potential of useful in developing new operating policies and selecting public transportation to meet social, environmental, and new services. Over-all satisfaction or dissatisfaction with economic needs. Some indication of the community's existing services can indicate whether the political climate perceived social responsibility to those with access to an is favorable to change. automobile relative to other citizen groups would place the importance of expansion policies in perspective. Financing Public Transportation

Types of Services to Different Groups Respondents have major responsibilities relative to pub- There is a need to determine the trip purpose priorities lic transportation funding; therefore, their opinions on for those citizens with and without access to an auto- financing services are necessary in developing funding mobile. Economic constraints make it unlikely that the policies. Their support for public transportation revenue trip purpose needs of both groups can be fully met. It is sources can influence public opinion and help to shape important in formulating an operating policy to deter- policy. Information needs relate to the level of public mine respondents' priorities for providing services for these transportation funding support relative to other community purposes. goods and services, subsidy support for public transportation service modes, trip purposes of various citizen groups, Scope of Services subsidy disbursement policies, and support for various revenue sources. The objective of this section was to determine respondent's desire for community involvement in the provision of Community Benefits specific services/modes. The community's major commitment is currently fixed route/fixed schedule transit service. There was a need for information about the feasibility Information about the desired scope of involvement rela- of implementing public transportation policies and other tive to other modes or services indicates the support for urban transportation policies in solving community prob- 98

services? It was felt that, if given the option of responding lems. Various traffic management and road pricing policies selectively to questions, many respondents would avoid were considered as alternatives to be implemented alone committing themselves for political reasons unrelated to or in combination with public transportation alternatives. their ability to formulate priorities. Several approaches The feasibility of various actions varies from one urban were used to "force" respondents to establish goal and area to another, but all should be considered_particularly, if the community is experiencing many transportation- policy priorities. One approach involved the allocation of a specific amount related problems. The opinions of respondents toward each alternative were felt to be particularly important, inas- of community funds among stated policy alternatives. For much as they have the authority to implement many of example, the relative willingness to support specific public transportation services (dial-a-ride, vanpooling) was deter- the actions. mined by asking respondents to allocate a $100 subsidy among the services for which they favored some level of Institutional Arrangements for Public Transportation funding. In another instance, they were asked to allocate Examining respondents' perceptions of the roles of vari- a $100 subsidy among various trip purposes for citizens ous organizations in determining goals/policies and system with and without access to an automobile. There was planning can contribute toward the development of insti- some indication during pretesting that some respondents tutional arrangements that increase the economic efficiency might not respond favorably toward being asked to make and effectiveness of the community's investment in public distinctions between various citizen groups. Yet, it is transportation services. Institutional arrangements are of critical in developing an operational statement of goals little interest to most citizens and interest groups. How- and policies that priorities be established. The simple rank- ever, the respondent group is interested and possesses suf- ing of a limited number of alternatives was another ap- ficient information to respond. It is also the group that proach chosen to determine priorities. For the evaluations can institute desired changes. of public transportation characteristics (e.g., on-time performance) and perceptions of community problems, scales QUESTIONNAIRE DEVELOPMENT AND ranging from "unsatisfactory" to "excellent" were used. ADMINISTRATION The amount of time required to complete the questionnaire was important. Presumably the interest of decision- The Public Transportation Goals and Policies Question- makers in goals and policies is higher than for the general naire was designed as a self-administered instrument. The public, yet the demands on the time of public officials self-administered form was selected because of the antici- and professional staff can be considerable. Questioning pated difficulty of scheduling sufficient time for respondent was restricted to the relevant issues to encourage participa- interviews. It was also felt that respondents might desire tion. In certain cases more than one question was included additional time to consider their priorities for some ques- to explore the more important issues. This permitted a tions. Approximately two weeks after receiving the intro- comparison of responses for their consistency. During pre- ductory letter, it was planned that an interviewer would testing the questionnaire required 15 to 30 minutes to call to make an appointment with those willing to partici- complete, which is an acceptable time range considering pate, deliver the questionnaire, and be present to clarify the nature and importance of the survey subject area. the instructions if necessary (questionnaires were mailed to 12 decision-makers with offices outside the urbanized TRANSPORTATION NEEDS SERVED BY area). After appropriate training a nonprofessional could PUBLIC TRANSPORTATION administer the questionnaire with no difficulty. Respondents were assured that their opinions would be confidential. Most respondents (85 percent) indicated that existing Results would be aggregated by group. public transportation services should be improved or up- The questionnaire was structured according to the seven graded to provide services to people with access to an categories of information needs. Response alternatives for automobile. Only 9 percent disapproved of the policy. most questions were structured to simplify administration One respondent (2 percent) was undecided, while two response and analysis, but an open-ended "other" category (4 percent) declined to respond to the question. was frequently utilized so that respondents could incorporate concerns and policies that the researchers may have Reasons for Improving Services overlooked. Respondents were given an opportunity to elaborate on their specific concerns at the close of the As can be seen from Table D-3, a majority of those advocating improved or expanded services considered all questioning. Because of their information and experience, it was the reasons listed as essential and/or desirable motivations for the policy. "Conserve gasoline" and "reduce traffic assumed that decision-makers could identify and order their policy preferences in a hierarchial manner. At the congestion" were the reasons most frequently selected as same time it was recognized that differences would exist essential by respondents. It is interesting to note that, in respondents' knowledge and ability to discriminate be- although public transportation improvements are often tween alternatives in certain policy areas. For example, viewed as less costly alternatives to continued highway con- would certain respondents have difficulty in arriving at struction, most respondents viewed "avoid highway con- trip purpose priorities for citizen groups or allocating sub- struction" as a desirable but nonessential motivation for sidy funds to citizen groups and public transportation such improvements. Interestingly, the importance attrib- 99

TABLE D-3 REASONS FOR IMPROVING OR UPGRADING PUBLIC TRANSPORTATION SERVICES FOR PEOPLE WITH ACCESS TO AUTOMOBILES

Percentage of Respondents Indicating Importance* Reason of Reason (N=39) Essential Desirable Unnecessary Conserve gasoline 80 20 - Reduce traffic congestion 51 46 - Reduce pollution 33 64 3 Increase ridership (revenue) 28 67 3 Provide transportation choice 26 67 5

Reduce accidents 26 64 8

Promote desirable land development 23 49 15 Avoid highway construction 13 67 15

. Row totals for each item do not always equal 100% due to nonresponse.

uted to gasoline conservation reflects a national concern TABLE D-4 that is not community-specific. This response lends sup- MOST IMPORTANT REASON FOR IMPROVING OR port to the concept of incorporating national concerns and UPGRADING PUBLIC TRANSPORTATION SERVICES goals into local goals and policy development. TO PEOPLE WITH ACCESS TO AUTOMOBILES Respondents were asked to indicate which one of the Percentage of Respondents reasons listed in Table D-3 they considered most im- Reason Selecting Reason portant. The results are given in Table D-4. "Conserve = gasoline" was most frequently selected as the single most Conserve gasoline 44 important reason for improving or upgrading public transportation services for people with access to an automobile. Reduce traffic congestion 26 "Reduce traffic congestion" was the only other reason to Promote desirable land development 8 elicit a sizable percentage of responses. Avoid highway construction 5

Community Responsibility to Citizen Groups Provide transportation choice 5 - As indicated in Table D-5, the majority of respondents Increase ridership (revenue) 3 felt that community government has a responsibility to Revitalize central business district 2 provide public transportation to all of the citizen groups Economy to riders listed. Service to most captive or transportation disad- 2 vantaged groups was favored by somewhat greater num- Reduce pollution - bers of respondents than service to noncaptive "work com- Reduce accidents - muters with access to an automobile." Only service to the "young" and "out-of-town travelers" received less support No response 5 than service for noncaptive commuters. Total 100 The priority rankings assigned to these same groups are given in Table D-6. Consideration of the total numbers of respondents favoring service to a group and the frequency with which respondents ranked a group as their first choice, second, and so on were the principal criteria for the order of listing groups within the table. Thus, an approximate listing of importance of groups is shown— beginning with "work commuters without access to an automobile" ranging to "out-of-town travelers" in last place.

TYPES OF SERVICES TO DIFFERENT GROUPS transportation services available for two major groups The objective of this portion of the study was to deter- (people with and without access to automobiles) for vari- mine whether community government should make public ous trip purposes. An indication of respondents' assessed

100

public transportation services available for all trip purposes TABLE D-5 to people without access to an automobile. The propor- RESPONSIBILITY OF COMMUNITY GOVERNMENT tions supporting so-called essential trips (such as health TO PROVIDE PUBLIC TRANSPORTATION SERVICES TO CITIZEN GROUPS care, employment, shopping (food), and education) were greater than those for other trips. Trip purpose priorities Percentage of Respondents Citizen Group Indicating Each Opinion* displayed in Table D-8 make it possible to assess the rela- Yes No tive support for various trip purposes. Although the over- Economically disadvantaged 91 5 all support for health care is numerically greater than that for employment (44 as opposed to 42), almost five times Elderly 91 7 as many respondents consider employment to be the high- Work commuters without access to auto 89 7 est priority trip and, thus, health care is placed in the next highest position. The relative importance of the employ- Handicapped 89 9 ment trip almost certainly outweighs the impact of the Students without own transportation 78 18 larger number of supporters. Housewives without access to auto 76 20 There is little difference in the rankings assigned to shopping (food) and education with most respondents assigning Nondrivers 73 20 them a relatively high priority. The relative support for Work commuters with access to auto 73 20 the religious trip is mixed, but because over-all support is lower, the potential for controversy concerning service Young (under 16) 65 31 for this purpose is minimized. The social acceptability of Out-of-town travelers 60 36 the religious trip is complicated by the traditional separation of the functions of church and state and may have * Row totals do not always equal 100% due to nonresponse been factors encouraging conflicting views. The priorities for shopping (nonfood) and personal business are both

TABLE D-6 PRIORITY RANKINGS FOR THE PROVISION OF PUBLIC TRANSPORTATION SERVICES TO CITIZEN GROUPS Number of Respondents ankings Favoringb Citizen Group Selecting Priority R 1 2 3 4 5 6 7 8 9 10 Service - 40 Work commuters without access to auto 15 5 5 8 2 2 - 2 - 2 1 1 41 Elderly 6 8 7 8 4 1 2 2 3 - 41 Handicapped 8 8 4 6 4 3 1 2 - 2 40 Economically disadvantaged 6 7 9 5 2 5 1 2 33 Work commuters with access to auto 5 6 2 2 1 1 3 - 10 - 33 Nondrivers 1 2 7 2 6 9 1 3 - - 35 Students without own transportation - 2 4 5 5 5 2 6 4 - 34 Housewives without access to auto - 3 1 3 6 3 9 3 3 5 1 29 Young (under 16) - 1 - - 2 1 9 8 1 16 27 Out-of-town travelers - - 1 - 4 1 1 1

mA ranking of 1 was assigned to the most important group followed by a 2 to the next highest and so on for all groups selected. bThe number of respondents favoring service for each group is unequal to the number ranking the group due to instances of no response,

relative importance of each trip purpose within each group low and similar. Support for the social-recreational trip was also obtained. fell at the bottom of the priority rankings.

People Without Access to an Automobile People With Access to an Automobile As indicated in Table D-7, a majority of all respondents As indicated in Table D-9, the majority of respondents believes that community government should make the felt that community government should make the "essen-

101

01 tial" trip purposes of employment, education, health care, (0 0 '0 .0 01 and shopping (food) available to people with access to 004-4 3 '(- 0 0 a' an automobile. However, the total number of respondents .-4 10 10 0. 0'014)) favoring making services available to the "with access" U 0 co group was less than for the "without access" group. 0(3 0 0) (0 0. 0 0(1. 4 0 0. -,-4 The pattern of trip purpose priorities (see Table D-10) 40 00 I I I I (4.4 1 4.-I 4.I 1. 0) 0. 00 - W 0 was similar to that of the without access group, although 0)10 o., 0 ..-4 .0.1.01 there were some differences which seemed consistent with WI '0 1(0 '0 0 1 00 .10.40 the unique needs of the respective groups. For example, 00 0 0. 00 0 0•I C-,.4 the relative priority of education and shopping (food) 14 00 . (0 I-. -.-4 . ._'._( 4-40 0 I_( 0(0 trips was reversed. It is known that people with access 0 -4 3 1. 01 1-4 11 0.'I 10 to an automobile are generally more affluent, having higher i' I 4.4 10 - 00 00 10 00 14 0I incomes than those lacking access to an automobile. For .010 .'o .- El--I (00.. 00 0 01,-I the higher incomes, expenditures for education are pro- Z U-.? I 0 01' m 00 ...I -I H 0 '0 1 0 01 -1 ,( 0 00. LL '-I 01 0 portionately greater, whereas expenditures for food are 01 .000.0) U) ((0 10 proportionately less. 01 00 0 '0 1. 0 '-'0 -4 0 40 1. The high priority accorded the employment trip for the '0 0U WI-' 01 01) access group was comparable only to the employment 00 01 01 01 trip for the without access group. Further, it would appear (floP H 40.0lfl,.I OW14 .0 that work commuters received more support than they did P4 4-4 ("I 01 H in the priority ranking referred to in Table D-6. Question 301 "0 0 phrasing may have been a factor. Group labels such as ,-I 01 10.0 '0 10 0 01-4 ' 01 "elderly," "handicapped," and "economically disadvan- 01 0 (0 0 (0 0 01 -,- 000 1-40 0 0-1 0 CI-' 01 0 taged" certainly have stronger emotional overtones than 0. 0 0 .-I 40 '-I I-' 0 0 (0 01 .(14'4 v a) O I.. C aj "people without access to an automobile," possibly influ- 1 .0 U (010 01. 0 10 0 00 a) 1.010 0. a) U 00 0 00 3. 0 0 0 encing selections. The categories of with and without '-4 C ,-4 I.. 14 E 0 0 (0 I 3. .0 1-4 0 ,- (0 .0 access to an automobile were selected because they were 1-I 0 '-' 0. (0 00 0. 0 (0 0. U -.-I 0. II) ' 0. 10 0 '-4 0 1. U all encompassing. Having only two categories simplified 01 .0 '0 01 .0 0) 0 Z 0)000 00 0)) P. 0)) the task of asking respondents to establish priorities for each trip purpose. The possible effects of varying group labels should be considered in evaluating the validity and comparability Of responses to different questions when studies of this type are conducted.

SCOPE OF SERVICES

Community Government's Role in the Provision of Services

As can be seen from Table D-11, respondents advocated that community government perform a variety of activities in the provision of specific transportation services. Respon- dents were free to advocate as many activities as they desired for each service. It is significant that the majority of respondents advocated some form of community involvement for all of the services listed, although support varied. Nearly one-fourth of the respondents preferred 00 ('0 00 00 00 00 00 00 00 100' - Q "no involvement" in the provision of "community-owned 00 10 vanpools" and "group bus leasing." Only one or two respondents advocated "no involvement" in the provision of "commuter express buses," "local transit services," "special services for handicapped," and "bicycle facilities." Con- sensus was greatest for "encourage use of car/vanpooling" and "company-sponsored vanpools." Although there was -1 10 some support for alternative activities, such as "plan and '0 0) 0 0(0 0 coordinate services," in both instances, "encourage use" 0 U 0 0 ca clearly dominated. 0 0 (0 U W 14 The desired scope of involvement for "local transit 10 0 0 (0 0) U 01 00 0 01 -I 1. C ,.4 0 0 '0 I services" and "commuter express buses" encompassed the 14 0 0. Ifi 0. 00 00 0 (0 0. 0 0 0 ,-I 1 U range of activities with substantial support evenly distrib- 01 10 .0 '0 .0 01 0) 0 01) 0)) 114 4!) 04 P. U) 102

Public Transportation Performance Characteristics TABLE D-9 OPINIONS TOWARD TRIP PURPOSE Generally, opinions of the performance of existing pub- AVAILABILITY TO PEOPLE WITH lic transportation services were positive, although differ- ACCESS TO AN AUTOMOBILE ences were observable for specific characteristics. Table Percentage or KesponQeflS D-12 indicates that the greatest proportion of responses Trip Purpose Holding Each Opinion ?es No fell into either the fair or good category for each characteristic listed. "Vehicle safety" and "vehicle comfort" 13 Employment 87 were the most positively perceived characteristics. "Fre- 27 Education 73 quency of weekend buses" and "bus shelters and benches" received the greatest proportion (one-fifth of respondents) 67 33 Health care of the poor ratings. However, opinion was divided for 42 Shopping (food) 58 bus shelters and benches as it received an equivalent proportion of good responses. Perhaps, because many respon- Shopping (nonfood) 49 51 dents lack personal ridership experience, "on-time perfor- 56 Religious 44 mance" and "transfer convenience" received more "no 56 Personal buaineSS 44 opinion" responses than other characteristics. As agency operating policies are formulated, perceptions of unsatis- 40 60 Social-recreational factory and poor service for specific performance characteristics should be useful information. This is a policy

TABLE D-lO TRIP PURPOSE PRIORITIES FOR PEOPLE WITH ACCESS TO AN AUTOMOBILE Number of Respondents Rankinga Favoringb Trip Purpose Selecting Priority 1 2 3 4 5 6 7 8 Trip Purpose

Employment 34 3 1 30 Health care 4 10 10 2 1 1 1 - 1 33 Education - 11 10 7 3 - - 26 Shopping (food) - 7 7 6 5 - - - 22 Shopping (nonfood) - 1 2 3 4 9 - 3 20 Religious - 1 1 4 4 3 4 2 2 20 Personal business - - 1 2 4 4 7 18 Social-recreational - 1 - - 1 3 5 8

aA ranking of 1 was assigned to the most important trip purpose, followed by a 2 to the next highest and so on for all trip purposes favored. bFor some items the number of respondents favoring a trip purpose is unequal to the number selecting a priority ranking due to instances of nonresponse.

uted among all activities. A majority felt that the role of area in which citizen user/nonuser perceptions should probably be accorded a greater weight than decision-maker the community was to regulate taxi services. In general, respondents indicated that community government should perceptions as policies are developed. encourage use of most paratransit modes (i.e., dial-a-ride, vanpool, special service for handicapped, and bicycle facili- FINANCING PUBLIC TRANSPORTATION ties) and in many cases plan and coordinate these services. Support for Community Funding Areas However, they were less likely to favor the management or ownership of such services. The perceived cost of sys- The purpose of this question was to position the level tem management and ownership of additional services may of public transportation funding relative to other public have been the most important factor limiting the scope goods and services. Table D-13 gives the percentage alloca- of involvement. The responses suggest that policymakers tion of an additional $100 of community tax revenues to should explore policies that encourage the use of these vaEious public facilities and services. "Public transportation" and "police protection" topped the priority listing, paratranSit services. 103

TABLE D-1l ACTIVITIES COMMUNITY GOVERNMENT SHOULD PERFORM IN THE PROVISION OF TRANSPORTATION SERVICES

Percentage of Respondents Favoring Activities* Type 'of Service Encourage Regulate Plan and Coordinate Manage Own Use No Services Services Involvement Car/Vanpooling 87 7 38 2 2 7 Company-sponsored vanpools 87 4 22 '- 2 13 Community-owned vanpools 51 22 44 29 29 24 Taxi services 20 76 11' 2 - 13 Special services - for handicapped 53 38 49 22 31 4 Local transit services 51 53 56 53 67 4 Commuter express buses 49 49 58 51 64 2 Dial-a-ride services 51 31 40 20 27 13 Group bus leasing 49 18 20 7 9 24 School buses 27 40 42 33 27 11 Bicycle facilities 69 20 49 11 22 4

* Respondents could check as many activities as desired therefore the totals may exceed 100 percent.

TABLE D-12

OPINIONS OF EXISTING PUBLIC TRANSPORTATION PERFORMANCE CHARACTERISTICS

- Percentage of Performance chRespondents Selecting Ea Opinion* Characteristic Not No Offered Unsatisfactory Poor Fair Good Excellent Opinion Vehicle safety 2 - - 7 38 37 16 Vehicle comfort 2 - - 11 40 31 11 Fare structure 2 7 2 13 33 29 9 Customer information 2 2 7 18 36 22 13 Bus service to downtown 2 - 5 33 31 18 7 On-time performance 2 - 2 120 33 16 22 Express bus service 2 7 2 38 18 22 9 Location of bus stops 2 2 5 36 33 9 11 Park-and-ride lots 2 7 11 31 25 13 11 Frequency of weekday buses 2 -- 11 40 27 7 9 Transfer convenience 5 2 13 22 27 5 22 Bus shelters and benches 5 2 22 31 22 9 9 Bus service to other areas 7 7 9 49 13 4 7 Frequency of weekend buses 5 9 20 36 13 2 13 * Horizontal totals for each item do not always equal 100% because of instances of nonresponse. 104

TABLE D-13 ALLOCATION OF COMMUNITY TAX REVENUES TO FUNDING AREAS Number of Respondents Percentage of Additional $100 Funding Area Allocating Funds to Area Allocated by Respondents

14* Public transportation 25 14 Police protection 24 13 Streets and toads 40 11 Local public schools 39

Parks and recreation 11 9

Downtown redevelopment 26 9

Fire protection 30 8

Public utilities 38 6

Health services 27 6

Public housing 32 5

Welfare and social services 15 3

Airpert facilities 32 1 1 Other 4

Total 100

* This means 14% of the additional dollars available was allocated to public transportation (e.g. 14% of 45 respondents x $100 or $4,500).

have access to an automobile. Attracting their ridership each receiving 14 percent of additional funds. Another through a subsidy was somewhat important to 36 percent transportation area, "streets and roads" was also a high priority funding area. The response should be encouraging and not important to 2 percent. Responses permit a comparison of the willingness to to those supporting public transportation improvements, subsidize the two citizen groups. Results demonstrate a yet may be biased for a number of reasons. Respondents consistency between the relative importance attached to were key public transportation decision-makers, several em- serving each group established through earlier questioning ployed by transportation planning and implementing agencies. An adequately funded public transportation program and willingness to subsidize each group. is perceived to facilitate the development of a coordinated Services transportation program, an objective pursued by these Subsidization of Public Transportation agencies. Also the fact that all respondents were aware Respondents' willingness to subsidize specific transporta- that the questionnaire concerned public transportation goals tion services is indicated in Table D-14. The majority fa- and policies is likely to have influenced responses. A sub- vored subsidization of more than one-half of the services group analysis of the responses of those also responsible listed. Local transit services, special services for handi- for allocating funds to the other areas, such as the city capped, and commuter express buses received the most council and mayor, should be assessed. support. On the other hand, the subsidization of car/vanpooling, company-sponsored vanpools, and taxi services Importance of Subsidies to Groups was favored by a small minority as might be expected. The A majority of respondents (78 percent) felt that it was latter tended to be services to which respondents earlier indicated a preference for encouraging their use or regula- very important that community government provide public transportation subsidies to meet the needs of groups that tion. do not have access to an automobile. An additional 18 The percentage distribution of a $100 subsidy allocated to public transportation services is given in Table D-15. percent felt it to be somewhat important and 4 percent Almost twice as many funds were allocated to local transit indicated that it was not important. Sixty-two percent indicated that it was very important to provide public trans- services as were to commuter express buses or special services for handicapped. Those services receiving at least portation subsidies to attract the ridership of people who 105

TABLE D-14 OPINIONS TOWARD THE SUBSIDIZATION OF PUBLIC TRANSPORTATION SERVICES Percentage of Respondents Holding Each Opinion Service Yes No Local transit services 91 9

Special services for handicapped 89 11

Commuter express buses 82 18

Bicycle facilities 71 29 School buses 62 38

Dial-a-ride 51 49

Community-owned vanpools 49 51

Group bus leasing 13 87

Car/vanpooling . 9 91

Company-sponsored vanpools 9 91

Taxi services 9 91

10 percent or more of subsidy funds tended to bethe ones respond. Most subsidy mechanisms in use at the present for which many respondents had earlier advocated com- are provider subsidies. It is therefore significant that a munity government management or ownership. greater proportion of respondents favored an alternative The relative proportions of funds received by each ser- policy. A few urban areas are experimenting with various vice should be a valuable indicator in assessing the feasi- user subsidy schemes. They are purported to encourage bility of adding new services. Where the funding support greater responsiveness to transportation needs as local proof a particular group is especially crucial to implementa- viders must compete for the patronage of users. On the tion, a subgroup analysis of responses should be under- basis of the response, the initiation of a user subsidy pro- taken. gram may be feasible in the provision of certain services.

Subsidization of Citizen Groups by Trip Purposes Revenue Sources A priority listing of trip purposes for groups with and Table D-17 indicates that transportation-related financ- without access to an automobile is given in Table D-16. ing mechanisms are generally the most popular choices for The listing was based on the respondents' allocation of a obtaining additional funds for public transportation. A $100 subsidy among the 16 group and trip purpose com- majority of respondents favored gasoline tax, vehicle tag binations. The employment trip for the without access tax, toll revenue, downtown parking tax, and diversion of group received the greatest proportion of funds. federal highway funds. Funds are obtained as taxes on Although respondents were more willing to allocate the consumption of transportation-related goods and ser- funds for the trips of the without access group, there were vices (e.g., gasoline bridges, highways). They are widely some notable exceptions. "Employment" for those with used and viewed as an equitable way of financing transpor- access to an automobile received a greater proportion than tation expenditures. Other taxes on consumption, such as any trips of the without access group with the exception the sales tax and excises on liquor, cigarettes, and gambling, of "employment." The education trip of the with access received the support of up to one-half of the respondents. group received more funds than trips often perceived of as Less frequently favored were taxes on income and prop- less essential (e.g., nonfood shopping, social-recreational) erty. A tax on the household unit was the most unpopular for the without access groUp. Trip purpose priorities were of all those listed. generally consistent with the priorities established in previous questioning (refer to Tables D-8 and D-10). COMMUNITY BENEFITS

Alternative Ways of Disbursing a Subsidy Perceptions of Community Problems

The reaction to alternative subsidy disbursement methods A majority of respondents agreed that each of the con- was mixed. Forty-two percent preferred a subsidy to the ditions listed in Table D-18 is a community problem. Per- individual in the form of reduced fare tickets. A subsidy ceptions of the crime problem parallel the high priority to those providing the service was selected by 38 percent. established for the funding of police protection. The per- Eight percent were undecided and, two percent did not ceptions of energy consumption and traffic consumption 106

0-. 0 '0 0 .0)0 4-40 Ow 4.4 (tI'O (00 0 (00) 00 (4 1)0 00. (4(0 I0 - 00-10 0 0 4.4 .0) fl 0) Z 3 0) (00 00 4-4 010 00) Z flU 0 U0 44(4 44_I 000 01.-I 0 04< 0 .0 1.4 1.1 -.4 443 01 '1_I (fi 1 0. d 440 .4 .4 o2 0 0 (0 0 0 (0 . 0) 0 .-4 0) 000 >" Z 0 '4 4-1 0) 0) 4.4 '0 0) 0 0) 0 -'4 0) Ca 0 ((0 0 0) 0 0 01 0 In 14 li '1-1 0 0) U ii 01 '1-4 0) 0) (fl (0 0) 0) 0) 0) 0) 0) .1 '-4 .4 D 00 0 00 4.4 0 U 00 .4 0 00 oH U U 0 V. '0 0 0) (nI) 0) I 0 '-4 .0)0 .-4 -'4 .0 -'4 0) I -'4 0) 4.14-1 10 (0 0. (0 00 4.1 0. 0 00 0. (0 0 0 0 4.4 0. '-4 0 '.4 0. '.4 10 U M. '-4 ' Q. 4.4 0 0 0 0 U -4 (0 0 0 U -.4 0. 0. 10 0 0) .0) 01 0) .0 0 0) 140 0) 0) 0) '0 .C-'0 .0 0 0) (/4 0. 00 00 0)0 04 3 4-I 0) II) CI) 1/) CI) 1/4 0)0 00 1 0 C U Zz< (0'0 00 (0 In '40 :4.4 LI OO" 01 30 00. :10 0 0 0 0 0 0 0 0 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 < l_o 01 H <0.4< ' I 0'. '0 '00) 4.40 '00 '0 .001 1)0 00 000 0 00. '0 0In (Cl III I 1< 00-00-10 . .-4 0 '0 '0 (1 Co 00 0 00 1/1 -10 .'-1 .-4 0 0. I 0 '0 0 .0 0)010) -O Z -('0 - 0001 .0)0(00 - 104.4 .404 4.40) '-'0) _) 01) 100) U_I0) 0 0 4.4 1.1.4 I"l 01< (_, 0. H 0 Cl) ' .4000 Z I0 (0 0) 0 10' >00 'g - 0. -.4 - In0. '00, 10 0 010 DCI) 0) .4 0 .04.4 0. (401 0 0) to 01 (1 0 I 41-4 01 U 04 44 0. 01.4 .4 0 0 0) 0 -.4 U 4.4 0) (0 '4 0' .'0 00 '0 ('-0 (0 0' 4.4 0) 0 Z< (0 (0 01 4.4 '0 'I F- 0) 0) U 01 00 0) 0 44 0) 0) 0) 0) 0) 4 4.4 01 U 0 0) .4 U .-4 0 (0.-I. HO 10 10 I '0 0 ,4 0. 0) 01 U 0'. .4 0 0' 10 10 10U0 4-' 1.4 P. 1.4 0 I 0 1L) 0 1.4 44 .'0 Ifl0."l lfl 0 Z -1 0 -.4 0 U 0 I 0 0. 10 1.1 .00-10 4-< U 0 0. '-4 - '0 U .0 U 10 44 10 0 10 .04-I U0 o0 0. 0) ,4 0 .4 10 10 (-I 0 .. 0 0/) (/4 00 0 00 0 44 0 0 0 -II

problems are also consistent with the belief of many re- lic transportation modes should be encouraged as a solution spondents that services should be expanded in order to to these community problems. Only 7 percent did not conserve gasoline and reduce traffic congestion. believe that the use of public transportation should be Perceptions of community problems can be useful as encouraged as a solution. Of the remaining 9 percent, indicators of the goals of respondents. The way in which 7 percent were undecided and 2 percent did not respond. transportation-related problems is perceived in relation to other problem areas, such as crime, helps to place such Policy Action Feasibility problems in perspective. Because of their background and Respondents were asked to evaluate the feasibility of experience, many decision-makers are likely to be highly implementing a series of policies designed to reduce trans- sensitive to transportation problems. Eighty-four percent of the respondents agreed that pub- portation problems. In this way, a comparison could be

107

0)' '-4 made between many short-range policy alternatives, includ- 00 0) 00) 0 00) ing those that would make public transportation more o U U a' 10 0 C') 10 a' N. '0 attractive to nonusers. Table D-19 points out that all policy O 00< 0. actions were considered feasible to a majority of respon- 0 0) .0 0) dents with the exception of those related to bridge tolls (i.e., U U 0 C') .-1 "4 00 0) a' 00 CO 00 additional toll plazas and increase tolls during peak hours). CO 0 The implementation of park-and-ride lots as an incentive -4 '0 0 CC .4 0 for auto users to use public transportation services was o .4 U considered very feasible by over three-fourths of those CC sampled. Other incentives considered feasible included: 'C 0 '0 make transit more acceptable to auto users; encourage C o CC 0. 0) ridesharing, preferential treatment for high occupancy CO U 0) 00 00 CO a' a' C") a' 0 N N. vehicles, and reduced fares at off-peak hours. CO N N N CCCC 4 Policies that could be considered discouraging to auto- o 0 0) 00 mobile use, such as congestion pricing, car-free zones, and 0, U ,-44C elimination of on-street parking, were considered infeasible C COb 0) 000 U 00, by more respondents. Reaction to policies to improve U 400) traffic management varied-improve timing of traffic sig- -1 C) nals seemed to be the most feasible, followed by improve CCC 0) I CC CO highway intersections, reversible traffic lanes, car-free CO "4 I.0 CO .0 zones, elimination of on-street parking, and more one-way 4.. 0 CC 0 0 0 0 streets. Implementing a policy of staggered work schedules .0 0 0. CCC .4 CC CO 0) would necessitate the cooperation of the private sector, 0 00 C '.4 CCC C 0.0 U .0 0) but if feasible could greatly alleviate congestion during 0 0 .4 U CO CO 0 U U'C CO 0 U U 0)0 0 0. 'U peak travel hours. A high proportion (86 percent) of the CO U 'UU U '.4 0 0 "4 CC 00 CCC COO CC4 n 0 CO respondents considered it feasible for implementation. .0 0) U U '0 0. 04 .4 CO U 0 '.4 C) CO C CO '-4 U Co 0 U 4.. 0 U 0 P. 00 E. U. E. 0. C.)

C B CC )OU 4 Z 0 C') N. 00 N. a' C') C') ('C C') C') .0, .4' .4' .4' 10 10 10 N. 00 00 4000 .0 .001. U ) CO CC '0 O CC .1 CC CO 0. 0) S 0 U CO ' CC C '0 0) a' N. .4' 0 C C CO C CC C. U '-4 CO C 0) U 0 -C

4-0) C U 0 C 0 ' 0 0) 4 N. CC) C') 0) '0 . N. .4' -4' 0 C') ('1 0 0 C') .4 C CO N. 10 CD 10 10 CC) CC) .4' ..4' .4' '4' C') C') N N .4 -4 P.

C. CC

to 0 CC 0 00 "4 0 CO 0 '.4 U CC CO CO CO U CCC U .0 U U 0 -4 U (0 C) 00 '0 40 'C O CC CC 0 CC '.4 CO 0 U 0 40 CC 40 40 CC CC CC 0) U CC4'O B CO CC 0O CC CC a)CO "4 j CO 00 0) CO 00 0 'C CO 0 CO CO 40 0) 'C CO 0 'C CO CC 0 0. U U Z CC CC 'C U CO 0 'C Ci U U CC 004 CC 40 Cli Z CO U U '0 C 0) CC 0) C 0 .4 0 0 C) 00 "4 .-I CO U 0 CCCO CC '4 CO U 14 U U CC .4 U U U U0) CCC 0 U .4 U CC U U 0 '.4 0 '.4 C) -4 0 CC.O CC CC CO .0 CC U '0 0 0. '.4 "4 CO CO 0 0) 00 "4 0) 00 0) 0 U 0 CCC 0 CO '.4 U CO CC C) 0 0'.4.4 CO 0) '.4 CO a) 0 0 0U U 0 0 (0 . U. H 0 0.0- CC) 00 C.) (0 (0 .4 00 00 CC. 00 .4 X 11, 108

TABLE D-19 FEASIBILITY OF IMPLEMENTING POLICY ACTIONS

Percentage of Respondents Indicating Feasibility of Action*

No Action Very Moderately Moderately Very Feasible. Feasible Undecided Infeasible Infeasible Opinion

4 Park-and-ride lots 78 18 4 Improve timing of traffic signals 56 31 9 7 7 Staggered work schedules 44 42 4 Make transit more acceptable to 38 51 7 auto users 4 - Encourage ridesharing 40 47 2 5 9 7 - Preferential treatment for 38 40 6 high-occupancy vehicles 5 2 4 Improve highway intersections 25 53 7 16 2 - Reversible traffic lanes 36 33 13 7 11 - Reduced fares at off-peak 36 31 15 hours 13 16 2 Congestion pricing 33 25 11 18 13 18 - Car-free zones 16 35 25 7 - Elimination of on-street parking 11 42 13 24 16 4 2 More one-way streets 7 47 18 11 7 Additional toll plazas 13 29 18 24 40 2 Increase tolls during peak hours 9 16 .9

*Horizontal totals for each item do not always equal 100% beciluse Ot instances of nonresponse.

INSTITUTIONAL ARRANGEMENTS FOR PUBLIC MPO members the major goal and policy-making respon- TRANSPORTATION SERVICES sibilities. Nevertheless, it is important to note that less than half of the respondents indicated that any one or- Responsibilities for Determination of Goals and Policies ganization should be responsible for preparing the goal/ Respondents differentiated between the responsibilities policy statement. There are no clear indications as to pre- of organizations/groups in the determination of public ferred responsibility for this task. transportation goals and policies (see Table D-20). Few of those sampled excluded any particular organization Planning Functions for Public Transportation from the process. Most instances of no involvement were The proportion of respondents favoring organizational advocated for state and federal organizations. Over one- involvement in various public transportation planning func- third of the respondents felt that it was the responsibility tions is given in Table D-21. Respondents assigned dual of these organizations to express opinions. Consensus was advisory and decision-making functions to federal and high as respondents advocated an advisory role for special state organizations, although only a minority supported interest groups and citizens. An impressive 82 percent any particular function for these groups. "Express opin- selected "express opinions" for both groups. ions" and "approve plans" were the most frequently se- Local political and transportation organizations were lected functions for the FHWA, UMTA, and state legis- assigned the strongest decision-making roles. A majority lators. Respondents supported identical functions for the of respondents felt that it was the responsibility of local state DOT with nearly one-third advocating that the DOT elected officials (i.e., mayor, city council), the Jacksonville Transportation Authority, and the MPO to approve goals/ implement plans. The functions assigned to special interest groups, citizens, policies. Moreover, at least 40 percent indicated that JTA and the Jacksonville Area Planning Board were mainly and the MPO should prepare the goal/policy statement. While as many recognized a responsibility of the Jackson- advisory. The responsibility for preparing plans was assigned by a majority of respondents to the JAPB. Con- ville Area Planning Board to be involved in the preparation sensus was greatest when over 80 percent of the sample of the goal/policy statement, only a few advocated goal indicated that a function of special interest groups and and policy approvel for this group. Generally, it could be concluded that respondents were citizens should be to express opinions. more willing to grant JTA, local elected officials, and Local elected officials (i.e., mayor, city council) were 109

TABLE D-20 INSTITUTIONAL RESPONSIBILITIES FOR PUBLIC TRANSPORTATION GOAL AND POLICY DETERMINATION

Percentage of Respondents Advocating Each Organization/Group Reaponsibility* Approve Prepare Coal/Policy Express No Goals/Policies Statement Opinions Involvement Undecided Federal Highway Administration 24 18 40 16 - Urban Mass Transportation Administration 22 22 38 11 4 State DOT 27 33 33 7 - State Legislators 27 16 38 18 4 Mayor 62 36 20 2 - City Council 64 27 22 2 - Special Interest Groups - 16 82 2 - Citizens 9 11 82 - - Jacksonville Transportation Authority 56 47 9 2 Metropolitan Planning Organization 51 40 27 - - Jacksonville Area Planning Board 13 40 44 2 -

* Respondents could advocate as many responsibilities as desired.

TABLE D-21 INSTITUTIONAL ARRANGEMENTS FOR PUBLIC TRANSPORTATION PLANNING FUNCTIONS

Percentage of Respondents Advocating Each Function* Organization/Group Implement Approve Prepare Express No Plans Plans Plans Opinions Involvement Undecided

Federal Highway Administration 9 38 13 42 13 2 Urban Maa Transportation Administration 7 42 13 40 9 2 State DOT 31 38 20 29 4 2 State Legislators 7 29 4 42 24 2 Mayor 38 38 20 27 2 2 City Council 31 53 18 29 2 - Special Interest Groups - 2 2 87 4 - Citizens 2 11 4 84 2 - Jacksonville Transportation Authority 76 29 40 16 - Metropolitan Planning Organization 11 53 31 27 - Jacksonville Area Planning Board. 7 18 56 27 2

Kesponaents could advocate as many functions as desired. assigned decision-making functions by approximately one- implementation for the Jacksonville Transportation Au-. third of the respondents. A majority (53 percent) felt thority. It can be concluded that respondents advocate that the city council should approve plans. An identical that the JTA, city council, and MPO be granted the prin- proportion felt that the MPO should be given powers of cipal decision-making powers. Generally, responses also plan approval. The support for mayoral power to imple- seemed to follow the existing pattern of group responsi- ment plans was exceeded only by the support for plan bilities established for the urban area. 110

SELECTED SUBGROUP ANALYSES Centralizing Decision-Making Responsibilities Subgroup analysis of goal/policy responses was under- Reaction to the idea of placing all public transportation taken to give planners additional information in assessing services under the responsibility of a single organization the likelihood that a particular statement of goals and was mixed, with a larger proportion opposing the policy. policies would be adopted. By identifying conflicts that Specifically, 20 percent strongly disagreed and 27 percent exist between subgroups, planners are in a better position disagreed, while 18 percent agreed and 20 percent strongly to channel information to specific groups and to mediate agreed. The remaining 15 percent were undecided. Of disputes between groups. Thus, the real value of a sub- those favoring the policy, the majority (88 percent) felt that the Jacksonville Transportation Authority should be group analysis relates to its usefulness in: given this responsibility. One respondent (6 percent) se- Identifying areas of goal and policy conflict between lected the state DOT and one did not respond. subgroups. Assessing the strength of conflicts based on subgroup Decision-Making Influence influence and bargaining power. o Differentially weighting subgroup responses. From Table D-22 it can be seen that the Jacksonville Increasing the efficiency and effectiveness of com- Transportation Authority was considered to have the most munication with policymaking groups. public transportation decision-making influence. On a The subgroup analysis was restricted to those issues that scale of 1 to 5, where 5 equaled strong influence, 73 percent of the respondents gave the JTA a rating of 5. The satisfied each of the following criteria: state DOT was perceived to be the most influential of There was an absence of consensus in the aggregate the organizations at the federal or state level. Special analysis. interest groups and citizens were perceived to have little It was desirable to assess whether particular policy influence on decision-making. alternatives would have the support of those groups most necessary for their adoption. Problems Related to Public Transportation There was some indication that responses might be affected by factors such as organizational or political Respondents were asked to list the most significant problems related to the provision of public transportation interests. services in the community. Eighty-seven percent responded by listing one or more problems. Their responses are sum- Organizational Subgroups marized in Table D-23. The most frequent response was Policymakers were classified into two groups, based on "limited funds." Many respondents mentioned the need organization membership and occupation. Four organiza- for public transportation improvements either in a gen- tion subgroups were identified as follows: eral way or by listing specific needs. General Purpose Local Government—This group consists of 16 individuals primarily composed of the principal TABLE D-22 elected officials of the Jacksonville urban area, such as PERCEPTION OF INSTITUTIONAL INFLUENCE ON mayors, city council members, and county commission PUBLIC TRANSPORTATION DECISION-MAKING chairmen. City managers were also included in the group- ing. The majority of MPO members belong to this group. Influence of Group* The group is instrumental in securing funding support Group Mean S.D. (N=43) for public transportation. Jacksonville Transportation Authority—This group

Jacksonville Transportation Authority 4.71 .71 consists of eight individuals: six board members and two professional staff members. JTA is the principal organiza- City Council 4.02 1.16 tion implementing public transportation services and also

Mayor 3.98 1.14 possesses extensive powers relative to the construction and improvement of the Jacksonville expressway system. 3.91 1.08 State DOT Jacksonville Area Planning Board—This group con- Metropolitan Planning Organization 3.84 1.02 sists of nine individuals: seven board members and two

Urban Mass Transportation Administration 3.44 1.37 professional staff representatives. The JAPB is an independent planning agency for the region and until recently Jacksonville Area Planning Board 3.48 1.04 was the designated MPO for the urban area. The plan- State Legislators 3.00 1.51 ning staff is involved in public transportation planning, but possesses only advisory powers. 2.88 1.60 Federal Highway Administration Other organizations—This group consists of 12 ap- Special Interest Groups 2.72 1.16 pointed officials and professional staff representing a vari- 2.58 1.16 ety of independent agencies and departments of city and Citizens state governments. These individuals serve in an advisory capacity on various transportation committees. In each * A rating scale of 1 = very little influence to 5 = strong instance, the other organization's primary interest is an influence was used. 111

TABLE D-23 SIGNIFICANT PROBLEMS RELATED TO PROVISION OF PUBLIC TRANSPORTATION SERVICES

Number of Respondents Problem Area Indicating Problem 39*

Economic

Limited Funds - 17

Need for Public Transportation Improvements (General and Specific)

Need for higher priorities for mass transit/public transportation improvements

Improve public information process 5

Need for public transportation to reduce community problems 4

Public Attitudes and Behavior

Public demand and acceptance of public transportation

Love of automobile

Preferences for Alternatives in Solving Community Problems

Preference for highway alternatives

* Problem areas cited by three or less respondents are not listed.

area of public concern other than public transportation, of subgroups. The finding of few group differences indi- such as education, highways, airways, riverports, housing, cates that goal/policy conflict for most issues exists pri- and downtown development. marily at an individual level. Jacksonville planners will Occupational Subgroups need to channel their communications accordingly. If conflicting views are not found to follow organizational or The total sample of 45 respondents was classified into occupational lines, winning and even identifying support three subgroups according to occupational position. There for policy alternatives through the bargaining process are were 15 elected officials, 16 appointed officials, and 14 bound to be affected. Because the roles and interests of professional staff members. The majority of elected officials organizations vary so widely from one urban area to belonged to the General Purpose Government classifica- another, these findings cannot be generalized to areas tion. On the other hand, appointed officials and profes- beyond Jacksonville. sional staff groups represent a cross section of each The significance of group differences on each issue in- organization, public transportation and nonpublic trans- volving the allocation of specific amounts of subsidy funds portation related. It was felt that support for some policies, was tested by the one-way analysis of variance. Where such as public transportation funding and revenue sources, significant differences were found between mean group might be related to the political aspect of one's position allocations at either the 0.05 or 0.01 levels, the Duncan's regardless of organizational affiliation. multiple range test was used to determine where significant Analysis of Findings differences occurred between groups. Table D-25 gives the mean allocation of subsidy funds After establishing the two classification schemes for sub- to public transportation by elected officials, appointed group analyses, a study of aggregate responses and ques- officials, and professional staff. Results indicate that tion content was made. Specific questions were selected elected officials allocated significantly fewer funds to pub- for subgroup analysis according to the criteria presented lic transportation than appointed officials or professional earlier in the discussion. Each question selected was staff. Recall the previous finding that public transporta- analyzed statistically, using both subgroup classification tion was allocated the highest percentage of community schemes. Table D-24 summarizes the results of the statis- tax revenues (14 percent) for the sample as a whole. Sub- tical analysis of subgroup differences. group analysis suggests that the relative support for public Although a few subgroup differences were observed, it transportation funding should be readjusted downward by should not be assumed that the value of the analysis was according a greater weight to the preferences of elected in any way limited. Differences that did exist appeared officials. Because of the discrepancy between groups, po- to follow a pattern that was consistent with the interests tential for conflict may exist.

112

TABLE D-24 SUBGROUP EXAMINATION OF SELECTED PUBLIC TRANSPORTATION GOAL/POLICY ISSUES

Difference Observed for Goal/Policy Issues Significant Difference Group Classification

Allocation of community tax revenues to public transportation Yes Elected, Appointed and Professional Staff

Allocation of subsidy funds to specific public transportation services (e.g. car/vanpooling, dial-a- ride, etc.) No -

Allocation of subsidy funds among trip purposes No -

Allocation of subsidy funds to those with access to General Purpose Government, an auto Yes JTA, JPPB, Other Organiza- tions

Allocation of subsidy funds to those without access to an auto No -

Subsidy disbursement techniques No -

Revenue sources (e.g. taxes) No -

Activities community should perform in provision of transportation services No -

Feasibility of policy actions (e.g. car-free zones, congestion pricing) No -

Performance of existing public transportation services Yes General Purpose Government, JTA, JAPB, Other Organiza- tions

TABLE D-25 MEAN ALLOCATION OF SUBSIDY FUNDS TO PUBLIC TRANSPORTATION

Mean S.D. Employment Status Group Membership Allocation

16.88 7.93 Appointed Officials 16 15.86 12.63 Professional Staff - 14 814b 8.03 Elected Officials 14

acne elected official did not respond to this question. bDifference significant at .05 level.

D-26). This question indirectly gauges the relative sup- Figure D-1 shows the distribution of subsidy funds by port for a policy to expand and upgrade services to those organizational groups among those with and without access with access to an auto. The influence of Group D would to an auto. Groups were randomly assigned letters to need to be considered in deciding whether to accord conceal their identities. Group differences were found between the mean allocations to those with access to an greater or lesser weight to the group's response. Chi square analysis revealed no significant differences auto. Group D was found to have allocated fewer funds between subsidy disbursement techniques, support for pub- than A or B for this purpose at the 0.05 level (see Table 113

100 90 80 70 60 50 40 30 20 11' 10 20 30 40 50 60 70 80 90 100 Subsidy to those without access to an auto (%) Subsidy to those with access to an auto (2) Figure D-1. Percentage of subsidy funds allocated by group members to those without and with access to an auto.

TABLE D-26 MEAN ALLOCATION OF SUBSIDY FUNDS TO THOSE WITH ACCESS TO AUTO

Mean Group Allocation S.D. ($)

A 43.33 14.79

B 37.50 26.66

C 23.75 15.29

D 19.45 20.40

lic transportation revenue sources, and activities the com- were assigned a satisfaction score for each characteristic. munity should perform in the provision of transportation Scores ranged from 1, indicating that the performance was services. unsatisfactory, to 5, signifying the selection of excellent A group mean feasibility score for each policy action performance for a particular characteristic. Individuals was plotted in Figure D-2. It was assumed that the various selecting invalid responses of "not offered" or "no opinion" degrees of feasibility constitute an interval scale. A one- for more than 50 percent of the characteristics listed (total way analysis of group means revealed no significant differ- of 14) were omitted from the question analysis. On this ences between organizational or occupational groups. This basis three respondents were removed from Group D. The finding suggests that support or nonsupport for each policy responses of individuals selecting invalid responses for 50 is uniformly distributed among groups. It also indicates percent or less of the characteristics were retained for that there is little likelihood that a relatively unpopular policy, such as a toll increase, could be adopted as a re- analysis of those items to which they could be assigned a sult of group bargaining. Policy conflicts should be mini- 1 to 5 score. mal with policymakers favoring those policies receiving Differences between subgroup opinions for each per- the greatest over-all support across groups. formance characteristic were tested by an analysis of van- Organizational group differences were observed for six ance of mean satisfaction scores. Duncan's multiple range performance characteristics (see Table D-27). Respondents test was the multiple comparison test used to identify the

114

Subgroup Means

Policy Actions Very Moderately Moderately Very Feasible Feasible Undecided Infeasible Infeasible +2 +1 0 -1 -2 I I

Encourage ridesharing

Make transit more acceptable to auto users

Car-free zones

Staggered work schedules

Preferential treatment for high-occupancy vehicles

Reversible traffic lanes

Elimination of on-street parking

Reduced fares at off-peak hours

Park-and-ride lots

Improve timing of traffic signals

Congestion pricing

Increase tolls during peak hours egend: More one-way streets Group A Group S Improve highway Group C intersections Group 0

Additional toll plazas Figure D-2. Feasibility of implementing selected policy actions.

source of significant differences between groups. The C should be studied for its possible impact on policies to brackets to the left of each set of means in Table D-27 expand and improve services. were used to identify these differences. Means enclosed by the same bracket do not differ from one another. Means CONCLUDING NOTE not bracketed by the same line are significantly different. In three instances a mean is bounded by overlapping The decision of study designers to utilize a self-admin- brackets. This mean does not differ from any of the others. istered questionnaire was reinforced by the high rates of For example, for bus services to downtown, the satisfaction response for most groups. Allowing respondents to com- of Group C was significantly less than that for Groups A, plete the questionnaire at their convenience was viewed D, and B. For bus service to other areas, the satisfaction as an impetus to participation. Generally, it was felt that of Group A was significantly less than that of Groups B a comprehensive set of information needs was identified and C. prior to the designing of the survey instrument. The study It is important to note that for each characteristic the did not suggest the existence of issues that were not an- satisfaction of Group A is less than that of one to three ticipated prior to the study. The survey instrument in its other groups. Note also that when means are ordered present form is best suited to the urban areas that are from the lowest to highest, an identical pattern is observ- seriously considering short-range modifications to public able. This implies.that there possibly is an organizational transportation services to better serve citizens dependent bias affecting opinions on certain characteristics. It is on the automobile for meeting transportation needs. Vari- particularly important to assess the influence of Group A ous modifications can be made in the basic approach to on the level of public transportation support. If the group focus on the interests and needs of a particular community. is highly influential, a generally negative perception of The questionnaire used in the Jacksonville goals study existing service characteristics may act to limit public trans- should be viewed as illustrative rather than indicative of portation support in favor of alternatives for solving com- the specific areas and questions to be covered in a given munity problems. Similarly, the positive response of Group urban area. 115

TABLE D-27 SIGNIFICANT DIFFERENCES BETWEEN SUBGROUP MEANS FOR PUBLIC TRANSPORTATION PERFORMANCE CHARACTERISTICS

Performance Characteristic Subgroup Mean S.D.

Bus service to downtown** A r 3.38 .92 D 3.43 .53 L 3.53 .83 C [ 4.63 .52 Bus service to other areas* A E 2.29 .95 D EL 2.71 .95 B 3.20 .77 C [ 3.57 .79 Express bus service** A [ 2.29 .95 D r 3.38 1.30 B 3.73 .88 C L 4.38 .74 Frequency of weekday buses* A E 2.67 .52 D 3.13 .64 B r 3.40 .83 C L 4.00 .76 On-time performance* A F 3.14 .69 o EL 4.00 .71 B 4.07 .76 C L 4.14 .69 Vehicle safety** - A [ 4.00 .53 D 4.14 .69 B L4.36 .63 C [5.00 .00 *Signjfjcant at .05 level **$ignificant at .01 level

APPENDIX E

GOAL! POLICY STATEMENT FOR TRI-COUNTY METROPOLITAN TRANSPORTATION DISTRICT OF OREGON GOALS SERVICE CRITERIA 1. To provide efficient, convenient and safe transit service throughout the Service shall be based upon the following four general criteria: tn-county area in accordance with Board-approved service criteria in order to: Convenience -- to provide service frequencies, times of operation, on-time performance and passenger amenities (such as shelters, air - provide basic public transportation for those without other means of conditioning, passes, etc.) to make public transit desirable and to travel, increase ridership.

- make public transit a Convenient and attractive alternative to the Access (coverage) -- to provide improved and new routes to make private auto. public transit available to all parts of the District, and to design routes so desired destinations are served in a reasonable manner. 2 To increase daily average ridership by 100% from fiscal year 1973-74 to fiscal year 1978-79, an average annual increase of 15%, and a numerical Speed -- to provide improved routings, express service and exclusive increase from 72,500 to 145,000 originating riders per day in order to: bus lanes to make public transit competitive with private auto.

- reduce traffic Congestion on existing streets and highways, Cost -- to provide the above service in a financially sound manner that is within the District's ability to support service. - save gasoline and reduce our dependence on gas imports, The following standards detail the above criteria. These standards will - reduce pollution, be used by staff, in conjunction with Tn-Met's approved Goals, to analyze present service and requests for new service. Implementation of improvements - reduce the need for large capital expenditures to accommodate in- in service to meet these standards will proceed throughout the five-year creasing automobile traffic. period ending June 30, 1979, as rapidly as vehicle availability and cost criterion permit. 3 To increase the percentage of all travelers who enter downtown Portland by bus from 18% to 36% by 1979 in order to: Convenience

- reduce congestion and air pollution in the central City, making it a Lines in urban areas shall have service at least every 10 more attractive place and contributing to its economic and social minutes during peak hours (7 to 9- am. and 4 to 7 p.m.) and survival, every 30 minutes during the midday.

- support City Parking Plan by reducing the need for long-term parking Lines in suburban areas shall have service at least every 15 spaces. - minutes during peak hours and every 60 minutes during the midday. 4 To maintain farebox revenue at a minimum of 40% of operations* cost in order to: Frequency of buses on rural lines shall be determined by community need. - maintain the overall financial soundness and efficiency of the system, Transfer lines (those lines whose major purpose is to provide - encourage Constant review of each line efficiency and operating cost. accessibility for transfer to other lines) shall have service at least every 10 minutes all day. 5 To increase the level of public transportation available to the elderly and handicapped in order to: Frequencies may be improved for peak hours when ridership consistently exceeds 100% of seated capacity, and for non-peak - improve accessibility of regular service, hours when it consistently exceeds 50% of seated capacity. - support implementation of essential special service to improve significantly the mobility of these groups. Night service (after 7 p.m.) shall be provided at one-hour minimum frequency on all urban lines and on suburban lines to 6 To support the regional land use plan and local government planning communities of over 7,000 population. efforts in order to: Saturday service shall be provided on all urban and suburban lines at a frequency rate equal to the line's weekday midday - encourage beneficial land uses and growth patterns and discourage frequency. urban sprawl, Sunday service shall be provided on the same basis as night - increase the efficiency of transit. service.

*Operations cost is that incurred by the Operations Department which includes Access drivers' and supervisors' wages, maintenance costs, fuel, tires, etc. Farebox revenue at 40% of Operations cost is expected to equal one-third of total In urban areas (designated as areas with over 3,200 persons per system costs (Operational, overhead, and capital expenditures) within the square mile) there will be a bus line within at least 1/4 mile five-year period ending June 30, 1979. of every person. Adopted by Board of Directors at December 2, 1974 meeting. In suburban areas (with 1,600 to 3,200 persons per square mile) there will be a bus line within at least 1/2 mile of every person. In rural communities (areas with 1,600 or less persons per All recommendations shall be reviewed against criteria 1, 2 and square mile) there will be a bus to the community center with a 3. Those recommendations that would provide service consistent supplemental park-and-ride site Conveniently located. with criteria shall be evaluated by gajhering the following data: Service will be provided that enables people to travel across the region without going through downtown Portland. Line house count; Line transit generators with user population 3. Speed (employment centers, commercial centers, Line transfer potntial; and Travel time on all lines shall be no more than twice that of Line travel time. auto travel time. From this data a ridership estimate shall be made by best Express service shall be provided from communities to downtown established method, currently as follows: Portland when ridership Consistently exceeds 130% of seated capacity. 31.5 rides per year per household, or 3% of population x 2 = rides per day. Express service may be provided to downtown Portland or to employment centers if research indicates supportive ridership Methods shall be updated and refined as experience dictates. of at least 40 riders per bus is available on a regular basis. All recommendations that would provide service consistent with Exclusive bus lanes shall be sought from appropriate jurisdic- criteria shall be costed with regard to service level needed tions when the ridership capacity of the buses in a corridor and vehicle requirements to obtain operating cost estimate. for one hour during peak hours equals the auto capacity of one lane in the corridor for one-hour period. Recommendations shall be prioritized in this order: 4. Cost 1. Potential of ridership/revenue, 2. Convenience, Farebox revenues of the system as a whole must be maintained to 3. Access, and cover 40% of operations cost at a minimum. 4. Speed.

Lines shall be reviewed and shall not be maintained if revenue New service that is approved for implementation shall be on an does not cover at least 20% of operations costs, with the experimental basis for a 12-month period. If performance does following exceptions: not meet basic cost criteria, the service shall be terminated. Transfer lines. Revised and Board Approved Lines with honored citizen ridership exceeding 15% of September 2, 1975 their total ridership. (Honored citizens are those persons over 65 years of age, persons legally blind, SERVICE CRITERIA persons registered disabled under the Medicare pro- IMPLEMENTATION PRIORITIES/POLICY gram, persons eligible for supplemental security I. POLICY benefits through Oregon Welfare Division who are certified disabled by Oregon Vocational Rehabilita- New service proposals shall be costed per criterion 4. Proposals tion Division, and 100% disabled veterans.) meeting that cost criterion shall be implemented in priority order. In cases where two or, more proposals have identical rating, best Lines to areas with no other transit service and potential revenue/cost ratio proposal shall be implemented first. deemed need areas by Board action because of low income population, low car ownership or similar Implementation of any new service is limited by three prime consid- factors. erations:

New service that has no potential for operating revenue of at Budgeted Operations Cost - In addition to the requirement that least 30% of cost (e.g, night service, Sunday service, rural total system farebox revenue must be maintained at 40% of service) shall only be added when system revenue as a whole is system operations cost, additional service costs must not more than 40% of operations cost. exceed the annual budgeted operations cost.

In other words, new service with good ridership/revenue poten- Vehicle Availability - Any case where addition of vehicle is tial shall be highest priority. However, new service may be required for safe and proper operations has priority over new added, within the standards set forth here, if the system as a service. whole can absorb the increased level of loss and still stay at 40% of operations cost. New service must be compatible with overall system planning.

5. Service Evaluation Procedures II. PRIORITY RATINGS

A complete list 'of recommendations, from all sources, for new or No. Criterion Description improved service shall be maintained. All recommendations will be -3 judged against the standards set forth in the following manner: 1. Convenience Frequency increase wherever unsafe, overcrowded conditions consistently occur. 118

Access Provision of service to major (regional) transportation generators whose daily population is greater than 1,000 persons.

Speed Provision of express service when ridership consistently exceeds 130¼ of seated loads or with implementation of major transit stations or exclusive lanes.

Convenience Improvement of peak and midday frequencies on urban lines.

to urban areas not currently Access Provision of service served or provision of new or improved crosstown and transfer service in urban areas.

Speed Provision of express service to employment centers.

Convenience Improvement of peak and midday frequencies on suburban lines.

Access Provision of service to suburban areas, employment centers or public facilities not currently served.

Speed Route changes to improve travel times.

Convenience Improvement of night, Saturday and Sunday service.

Access Provision of new or improved crosstown service in suburban areas.

Access Provision of new or improved service to rural areas.

Board Approved: September 2, 1975

APPENDIX F

INSURANCE SERVICES OFFICE OPINION ON WORKMEN'S. COMPENSATION LIABILITY *

The Class 1 factors have been equated to the commercial of Injuries Sustained by Employees While Riding in Em- service use class on the assumption that the fellow employer-Furnished Vehicles." A chart and compilation of ployee and employee injury exclusions nullify the pas- statutes and cases relating to co-employee suits are en- sengers hazard. These exclusions apply only if the injury closed with our report. We will be glad to discuss the arises out of and in the course of employment, however, matter with you further or to answer any questions that and therefore it becomes necessary to consider whether you may have: an employee who is injured while riding in a van under a "pooling arrangement" would be deemed to have been THE COMPENSABILITY OF INJURIES SUSTAINED BY acting within the course of his employment. EMPLOYEES WHILE RIDING IN EMPLOYER-FURNISHED To our knowledge, the issue of the compensability of VEHICLES accidents arising out of vanpooling arrangements has not The general rule as to employees having fixed hours and been dealt with yet by the courts. There are, however, a place of employment is that ". . . injuries occurring on several cases that are closely analogous, and we believe the employer's premises while they are going to and from that it is reasonable to assume that these cases would have work before or after working hours are compensable, but substantial precedential value but would not necessarily if the injury occurs off the premises, it is not compensable" be controlling in cases involving vanpooling—especially, if (Vol. 1, Larson, The Law of Workmen's Compensation, the employer retained ownership of the van. These cases Section 15.00). The reason for the rule is stated in the are considered under the heading of "The Compensability American Law Reports: Insurance Services Office interoffice correspondence from Arthur B. The Compensation Act, it has been very generally held, Francis, Commercial Auto Office, to Robert L. Brusau, Legal Office, October 27, 1976. does not authorize an award in case of injury or death 119

from a peril which is common to all mankind, or to which but merely an accommodation that they might use or not the public at large is exposed. The argument seems to be as they wished. The employer, however, supplied trans- that if the workman were permitted to recover in such portation to and from its office as a regular practice, and cases he would enjoy the privileges above those of the the employee regularly used that transportation. An public generally and in effect be insured against every sort agreement by an employer to furnish transportation need of calamity, which is not the intention of the statute. At not be expressed; it may be implied from the circum- home or on the street he may meet with accidents not stances of the case and the uniform course of conduct of arising out of his employment. The Act does not cover the parties. Mrs. Duffus (the plaintiff) testified that when such cases. The employee gets up in the morning, dresses she was hired she understood that transportation to and himself, and goes to work because of his employment; yet from her office would be furnished her. On the first day if he meets with an accident before coming to the employ- of her employment she rode to work in the automobile er's premises or his place of work, that is not a risk of and was told by one of the employees who had stopped his occupation, but of life generally. (97 A.L.R. 556) for her that it was a company car and that $4.00 a month for its use would be deducted from her wages. These facts But there is an exception to the "coming and going" were sufficient to support an inference that there was an rule. Where the transportation is furnished by an employer implied agreement to furnish transportation. as an incident of the employment, an injury sustained by In Peski, 158 F. 2d 59, an employee was killed while an employee going to or coming from work in a vehicle riding as a passenger on one of the buses provided by the furnished by the employer is generally held to arise out employer, to transport its ordnance plant workers to and of and in the course of the employment within the Com- from its ordnance plant. The employer owned the bus pensation Acts. line, and only employees were entitled to use the buses. This exception to the general rule has been held to be as The stipulated facts showed that the employees were not well established as the rule itself, and to be supported by required to use the buses provided, that many employees overwhelming authority. It may arise from the custom used other means of transportation, and that the employees or practice on the part of the employer, of furnishing were not under the control of the employer while traveling transportation, or from a continued practice which is beneficial, convenient, or advantageous to both employer on the buses and were not paid for the time spent on and employee even though such practice may not be said them. It was held, however, that, because the buses were to become part of the employment contract. (53 C.J.S. owned and provided by the employer for the special use 235) of the employees, as an incident of their employment, the California Casualty Indemnity Exch. v. Indus. Acc. accident arose out of and in the course of employment. Comm., 132 P. 2d 815, and Peski v. Todd & Brown, 158 The same result obtains when an employee is injured F. 2d 59, are two of the many cases that are supportiye while being transported to and from work by a fellow of the position enunciated in C.J.S. In California Casualty employee, provided that it was contemplated that the em- Indemnity Exchange, an employer, for the convenience of ployee should furnish, or be responsible for, transportation. its employees, purchased an automobile to transport them The American Law Reports cites the following cases as to and from work. There being no regular driver, the being supportive: Swanson v. Latham, 92 Conn. 87; Little- employees would decide among themselves who was to fields Case, 126 ME. 159; Dunn v. Trego, 279 Pa. 518; do the driving. There was a bus line between the city in Rock County v. Indus. Comm., 185 Wis. 134; and Cooper which the employees lived and the city in which the em- v. Lumbermen's Mut. Cas. Co., 179 Ga. 256. ployer's plant was located, and the employees were not There are, however, decisions that are contra. In Cram- required to use the automobile. But those who did were /itt v. Standard Acc. Ins. Co., 180 S.E. 434, for example, charged $4.00 a month for the privilege, representing a a mining company furnished a bus, which its employees pro rata share of the running expenses. In affirming an could use in coming to and from work. Those availing themselves of the service were charged $7.20 each month, award of compensation to an employee who sustained in- the amount being deducted from their wages. An em- juries in an accident while riding home in the automobile, ployee was injured while on the bus and brought a suit to the court said: recover for the injuries received. In holding the injuries It is well recognized that if an employer, as an incident of to be outside of the Workmen's Compensation Act, the the employment, furnishes his employee with transporta- court said: "Injuries sustained by an employee while being tion to and from the place of employment and the means transported by his employer to the place of his employ- of transportation are under the control of the employer, ment under an independent contract of hire, and not by an injury sustained by the employee during such transportation arises out of and is in the course of the employ- virtue of his contract of employment, are not within the ment and is compensable. There is no question that the Workmen's Compensation Act; and a declaration in as- automobile in the instant case was furnished by the em- sumpsit, waiving the tort and suing on the employer's ployer to the employees for the purpose of transporting contract of carriage for damages due to such injuries is them to and from work. It is also clear that the car was not demurrable on the ground that such injuries are com- under the employer's control. Petitioner contends, however, that the transportation furnished the employees of pensable." Stimal v. Jewett & Co., 199 N.Y.S. 2d., 473, is the company was not an incident of their employment, in accord. 120

COMPILATION OF STATUTORY PROVISIONS AND CASE LAW CO-EMPLOYEE MAY CO-EMPLOYEE IS RELATING TO CO-EMPLOYEE SUITS BE SUED GRANTED IMMUNITY Alabama Alabama X Barr v. Pceskitt 389 F. Sopp. 496 (1975); §312, Title 26, Code of Alaska K Alabama 1940 Arizona Alaska Arkansas I Workmen's Compensation Act §23,30.055 California I Arizona X Colorado Under Constitution (Art 18 §B), a person injured in an accident by a Connecticut X co-employee could bring a tort action against his co-employee--Kik- patrick v. Superior Court, 466 P 2d. 18 Delaware I District of Columbia I Arkansas Florida X King v. Cardin 319 S.W. 2d. 214 (1959); Ark Stat. §81-1340. In Neal v. Oliver 438 S.W. 2d. 313 (1969) the owner-president-general mana- Georgia I ger of a family owned corporation was held the employer of an in- Hawaii X jured employee, not a co-employee. Idaho X I Illinois §3601 of the Labor Code limits a recovery to compensation benefits Indiana I but §3601 [27 (3)] preserves an employee's right to recover against Iowa X a co-employee for acts evincing a reckless disregard for the injured party's safety. Mclver v. Savage 33 Cal. Rptr 740 (1963) held that Eansas - I a co-employee's negligence or even gross negligence will not affect Kentucky X his Civil immunity from a wrongful death iLiun arising out of a co-employee's death. Louisiana - X Cole v. State 90 Cal Rptr 74 (1970) is in accord. Maine I Colorado Maryland X Hartford A & I c. Clifton 190 P 2d. 909 (1948); Beyers v. Roll 476 P Massachusetts X 2d. 271 (1970) Michigan I Connecticut Minnesota I Comn Statutes §31-293 provides that no action may be brought against Mississippi I a co-employee except for negligence in the operation of a motor vehicle or unless the wrong was willful or malicious. Missouri I Delaware Montana I Nebraska I Title 19-2363 Del. Code Annotated; Groves v. Marvel 213 A. 2d. 853 (1965) Nevada I District of Columbia New Hampshire I Nations v. Morris 331 F. Supp. 771 (1971) held that the LHWA is the New Jersey I exclusive remedy. New Mexico X Florida New York N Collins v. Federated Mutual Imp. & Hdwe. Ins. Co., 247 So. 2d. 461 North Carolina I (1971) F.S.A. - 440101 et seq. North Dakota N Geo,rgia Ohio . I Scott v. Crescrent Tool Co. Div. of Crescent Niagara Corp. 296 F. Oklahoma X Supp. 158 (1969); Floyd v. McFolly 205 S.E. 2d. 190 (1974) Oregon . I Hawaii Pennsylvania X Chapter 386-8 of H.R.S. provides that a co-employee in immune from Rhode Island N Suit unless the personal injury is caused by his willful and wanton I misconduct. Sooth Carolina Idaho I South Dakota White v. Ponozzo 291 P. 2d. 843 (1955); Nichols v. Godfrey 411 P. Tennessee I 2d. 843 (1966) . N Texas Illinois X Utah S.H.A. Chapter 48 §138.5 (a, b);Mier v. Staley 329 N.E. 2d 1 (1975) Vernont X Indiana Virginia X §22-3-2-13 Burns N.S.A.; Littleton v. Mardigan 485 F. 3d. 251 I Washington Iowa - X West Virginia Braven v. Oggero 213 N.W. 2d. 678 held that the immunity granted by Wisconsin I the Compensation Act does not extend to co-employees even of they have been supervising positions and are alleged to have breached Wyoming I duties assigned to them in a representative capacity. Kansas Tully v. Estate of Gardner 409 P. 2d. 782 (1966) Kentucky Chapter 342.700 K.R.V. ; Jackson v. Hutchinson 453 S.W. 2d. 269 Louisiana H.B. 354, Louisiana Laws 1976 Massachusetts Murphy v. Meittinen 102 N.E. 2d. 92 (1951) Marylund Article 101 §58 MRS.; Crown Cork & Seal Co. v. Sara Mutter Sup. Ct. of Baltimore City, (Daily Record, 3-13-45) Michigan M.C.L. 413.5; Belen v. Dawson 217 N.W. 2d. 910 (1974) Minnesota N.S.A. §5-176.031; Dawley v. Thisius 231 N.W. 2d. 555 (1975) Mississippi Miss. Code 1972, §71-3-9 Missouri Lamar v. Ford Motor Co. 409 S.W. 2d. 100 (1966); Anderson v. Steuces 391 S.W. 2d. 839 (1965) 121

Montana South Carolina R.C.M. 1947 §29-101 et. seq.; State em rel. Ferguson v. Dist. Ct. Young v. Warr 165 S.E. 2d. 797 (1969) 519 P. 2d. 151 (1974) South Dakota Nebraska §62-3-1 1967 Compiled Laws R.S. 1943, §48-14; Rehn v. Bingaman 36 N.W. 2d. 856 (1950) Tennessee Nevada Williams v. Smith 435 S.W. 2d. 808 (1968) held that co-employees are N.R.S. §616-500 (1963) not immune for inteotial torts but Union Carbide Corp. v. Dunn New Hampshire Bros. Gen. Contractors 294 F. Sapp. 704 (1968) held that co-employees are irmnune for non-intentional acts. 281:14MM R.S.A. Texas New Jersey Mc Kelny v. Barker 568 S.W. 2d. 38 (1963); 490 S.W. 2d. 223 (1974) N.J.S.A. 34:15-8; Marshall v. Force Machinery Co. 303 A. 2d. 619 held that a co-employee is not relieved of liability in a tort New Mexico action by any provisions of the W.C.A. unless the liability sought to be imposed would be or could be imposed upon the employer under Hacket v. Chapman 366 P. 2d. 850 (1961) the doctrine of respondent superior. New York Utah Workmen's Compensation Act §29, subdiv/sion b; Gadini v. Naehtigall §35-1-60 U.C.A. 1953 374 N.Y.S. 2d. 981, Proctor v. Ford Motor Co. 346 N.Y. 2d. 572 (1973) Vermont North Dakota V.S.A. §624; Herbert v. Layman 218 A. 2d. 706 (1966) N.D.C.C. §65-01-08; Steiner v. Weiner 238 N.W. 2d. 918 (1976) Virginia Ohio §65.1-40 Va. Code; Wilson v. Fraser R.C. §4123.01; Gillman v. Ross 277 N.E. 2d. 256 (1971) Washington Oklahoma R.C.WA. §51.24.010 Title 85-11-12 O.S.A.; Rota Cone Oil Field Operations v. Chanun 168 West Virginia P. 2d. 1007 (1946) §23-2-6(a) W. Va. Code; Bennett v. Buckner 149 S.E. 2d. 201 (1966) Oregon Wisconsin O.R.S. §656.154; Shoemaker v. Johnson 407 P. 2d. 257 (1965) W.S.A. §102.29; Davison v. Wilson 239 N.W. 2d. 38 Pennsylvania Wyoming Apple v. Reichert 278 A. 2d. 482 (1971) §27-50, §27-54, §27-78 WS. 1957, 1967; Hackle v. Williamson 518 P. Rhode Island 2d. 621 (1974) General Laws 1956 §28-35-58; Storin v. Masterson 103 R.I. 246 (1967)

APPENDIX G

AGREEMENT PURSUANT TO SECTION 13(c) OF THE URBAN MASS TRANSPORTATION ACT OF 1964, AS AMENDED *

WHEREAS, the Congress recognized in the National Mass Transportation vided, however, that volume rises and falls of business, or changes in volume Assistance Act of 1974 that the urban mass transportation industry required and character of employment brought about by causes other than the Project operating assistance to maintain service to the public, stimulate ridership (including any economies or efficiencies unrelated to the Project) are not and assist communities in meeting their overall development aims; and within the purview of this agreement.

WHEREAS, Sections 3(e) (4), 5(n) (1) and 13(c) of the Act require, The Project, as defined in paragraph (1) shall be performed and as a condition of any such assistance, that suitable fair and equitable ar- carried out in full compliance with the protective conditions described here- rangements be made to protect urban mass transportation industry employees in. affected by such assistance; and All rights, privileges, and benefits (including pension rights

WHEREAS, the fundamental purpose and scope of this agreement is to and benefits) of employees covered by this agreement (including employees establish such fair and equitable employee protective arrangements on a na- having already retired) under existing collective bargaining agreements or tional and uniform basis for application throughout the urban mass transporta- otherwise, or under any revision or renewal thereof, shall be preserved and tion industry to those employees and employees represented by the labor organ- continued; provided, however, that such rights, privileges and benefits which izations signatory hereto; and are not foreclosed from further bargaining under applicable law or contract may be modified by collective bargaining and agreement by the Recipient and WHEREAS, the undersigned American Public Transit Association and the union involved to substitute other rights, privileges and benefits. the national labor organizations signatory hereto have agreed upon the follow- Unless otherwise provided, nothing in this agreement shall be deemed to re- ing arrangements as fair and equitable for application to any urban mass strict any rights the Recipient may otherwise have to direct the working transportation employer ("Recipient") who is a signatory hereto and who has forces and manage its business as it deems best, in accordance with the appli- been designated to receive federal operating assistance under the Urban Mass cable collective bargaining agreement. Transportation Act of 1964, as amended ("Act"); The collective bargaining rights of employees covered by this NOW, THEREFORE, it is agreed that the following terms and conditions agreement, including the right to arbitrate labor disputes and to maintain shall apply and shall be specified in any contract governing such federal union security and checkoff arrangements, as provided by applicable la, assistance to the Recipient: policies and/or existing collective bargaining agreements, shall be preserved (1) The term "Project", as used in this agreement, shall not be and continued.° Provided, however, that this provision shall not be inter- limited to the particular facility, service, or operation assisted by federal preted so as to required the Recipient to retain any such rights which exist funds, but shall include any changes, whether organizational, operational, Supplied by APTA Statistical Department. Not an official copy. technological, or otherwise, which are a result of the assistance provided. ° As an addendum to this agreement, there shall be attached where appli- The phrase "as a result of the Project" 'shall, when used in this agreement, 5 cable the arbitration or other dispute settlement procedures or arrangements include events occurring in anticipation of, during, and subsequent to the provided for in the existing collective bargaining agreements or any other existing agreements between the Recipient and the Union, subject to any chang- Project and any program of efficiencies or economies related thereto; pro- es in such agreements as may be agreed upon or determined by interest arbitration proceedings. 122

by virtue of a collective bargaining agreement after such agreement is no total time paid for by twelve, thereby producing the average monthly compensa- longer in effect. tion and the average monthly time paid for. Such allowance shall be adjusted to reflect subsequent general wage adjustments, including cost of living The Recipient agrees that it will bargain collectively with the adjustments where provided for. If the displaced employee's compensation in union or otherwise arrange for the continuation of collective bargaining, and his current position is less in any month during his protective period than that it will enter into agreement with the union or arrange for such agree- the aforesaid average compensation (adjusted to reflect subsequent general ments to be entered into, relative to all subjects which are or may be proper wage adjustments, including cost of living adjustments where provided for), he subjects of collective bargaining. If, at any time, applicable law or con- shall be paid the difference, less compensation for any time lost on account tracts permit or grant to employees covered by this agreement the right to of voluntary absences to the extent that he is not available for service utilize any economic measures, nothing in this agreement shall be deemed to equivalent to his average monthly time, but he shall be compensated in addi- foreclose the exercise of such right. tion thereto at the rate of the current position for any time worked in excess (5) (a) In the event the Recipient contemplates any change in the of the average monthly time paid for. If a displaced employee fails to exer- organization or operation of its system which may result in the dismissal or cise his seniority rights to secure another position to which he is entitled displacement of employees, or rearrangement of the working forces covered by under the them existing collective bargaining agreement, and which carries a this agreement, as a result of the Project, the Recipient shall do so only in wage rate and compensation exceeding that of the position which he elects to accordance with the provisions of subparagraph (b) hereof. Provided, however, retain, he shall thereafter be treated, for the purposes of this paragraph, as that changes which are not a result of the Project, but which grow out of the occupying the position he elects to decline. normal exercise of seniority rights occasioned by seasonal or other normal (c) The displacement allowance shall cease prior to the expiration schedule changes and regular picking procedures under the applicable collec- of the protective period in the event of the displaced employee's resignation, tive bargaining agreement, shall not be considered within the purview of this death, retirement, or dismissal for cause in accordance with any labor agree- paragraph. ment applicable to his employment.

(b) The Recipient shall give to the unions representing the employ- (7) (a) Whenever any employee is laid off or otherwise deprived of ees affected thereby, at least sixty (60) days' written notice of each pro- employment as a result of the Project, in accordance with any collective posed change, which may result in the dismissal or displacementtof such em- bargaining agreement applicable to his employment, he shall be considered a ployees or rearrangement of the working forces as, a result of the Project, by "dismissed employee" and shall be paid a monthly dismissal allowance to be sending certified mail notice to the union representatives of such employees. determined in accordance with this paragraph. Said dismissal allowance shall Such notice shall contain a full and adequate statement of the proposed first be paid each dismissed employee on the thirtieth (30th) day following changes, including an estimate of the number of employees affected by the the day on which he is "dismissed" and shall continue during the protective intended changes, and the number and classifications of any jobs in the Recip- period, as follows: ient's employment available to be filled by such affected employees. Employee's length of service prior to adverse effect Period of protection At the request of either the Recipient or the representatives of the 1 day to 6 years equivalent period affected employees, negotiations for the purpose of reaching agreement with 6 years or more 6 years respect to application of the terms and conditions of this agreement shall commence immediately. These negotiations shall include determining the selec- The monthly dismissal allowance shall be equivalent to one-twelfth tion of forces from among the employees of other urban mass transportation em- (1/12th) of the total compensation received by him in the last twelve (12) ployers who may be affected as a result of the Project, to establish which months of his employment in which be performed compensation service more than such employees shall be offered employment with the Recipient for which they fifty per centum of each such months based on his normal work schedule to the are qualified or can be trained; not, however, in contravention of collective date on which he was first deprived of employment as a result of the Project. bargaining agreements relating thereto. If no agreement is reached within Such allowance shall be adjusted to reflect subsequent general wage adjust- twenty (20) days from the commencement of negotiations, any party to the dis- ments, including cost of living adjustments where provided for. (b) An employee shall be regarded as deprived of employment and pute may submit to arbitration in accordance with the procedures contained in entitled to a dismissal allowance when the position he holds is abolished as a paragraph (15) hereof. In any such arbitration, final decision must be reach- result of the Project, or when the position he holds is not abolished but he ed within sixty (60) days after selection or appointment of the neutral arbi- loses that position as a result of the exercise of seniority rights by an trator. In any such arbitration, the terms of this agreement are to be inter- employee whose position is abolished as a result of the Project or as a result preted and applied in favor of providing employee protections and benefits no of the exercise of seniority rights by other employees brought about as a less than those established pursuant to §5 (2) (f) of the Interstate Commerce result of the Project, and he is unable to obtain another position, either by Act. the exercise of his seniority rights, or through the Recipient, in accordance (6) (a) Whenever an employee, retained in service, recalled to with subparagraph (e). In the absence of proper notice followed by an agree- service, or employed by the Recipient pursuant to paragrahps (5), (7) (e), or ment or decision pursuant to paragraph (5) hereof, no employee who has been (18) hereof is placed in a worse position with respect to compensation as a deprived of employment as a result of the Project shall be required to exer- result of the Project, he shall be considered a "displaced employee," and cise his seniority rights to secure another position in order to qualify for a shall be paid a monthly "displacement allowance" to be determined in accord- dismissal allowance hereunder. ance with this paragraph. Said displacement allowance shall be paid each dis- (c) Each employee receiving a dismissal allowance shall keep the placed employee during the protective period following the date on which he is Recipient informed as to his current address and the current name and address first "displaced," and shall continue during the protective period so long as of any other person by whom he may be regularly employed, or if he is self- the employee is unable, in the exercise of his seniority rights, to obtain a employed. position producing compensation equal to or exceeding the compensation he received in the position from which he was displaced, adjusted to reflect The dismissal allowance shall be paid to the regularly assigned subsequent general wage adjustments, including cost of living adjustments incumbent of the position abolished. If the position of an employee is abol- whe provided for. ished when he is absent from service, he will be entitled to the dismissal allowance when he is available for service. The employee temporarily filling (b) The displacement allowance shall be a monthly allowance deter- said position at the time it was abolished will be given a dismissal allowance mined by computing the total compensation received by the employee, including on the basis of that position, until the regular employee is available for vacation allowances and monthly compensation guarantees, and his total time service, and thereafter shall revert to his previous status and will be given paid for during the last twelve (12) months in which he performed compensated the protections of the agreement in said position, if any are due him. service more than fifty per centum of each such months, based upon his normal work schedule, immediately preceding the date of his displacement as a result An employee receiving a dismissal allowance shall be subject to of the Project, and by dividing separately the total compensation and the call to return to service by his former employer after being notified in 123

accordance with the terms of the then-mxisting collective bargaining agree- the time necessary for such transfer and for a reasonable time thereafter, not ment: Prior to such call to return to work by his employer, he may be re- to exceed five (5) working days. The exact extent of the responsibility of quired by the Recipient to accept reasonably comparable employment for which the Recipient under this paragraph, and the ways and means of transportation, he is physically and mentally qualified, or for which he can become qualified shall be agreed upon in advance between the Recipient and the affected employ- after a reasonable training or retraining period, provided it does not require ee or his representatives. a change in residence or infringe upon the employment rights of other employ- If any such employee is laid off within three (3) years after ees under then-existing collective bargaining agreements. When an employee who is receiving a dismissal allowance again changing his point of employment in accordance with paragraph (a) hereof, and commences employment in accordance with subparagraph (e) above, said allowance elects to move his place of residence back to his original point of employ- shall cease while he is so reemployed, and the period of time during which he ment, the Recipient shall asswme the expenses, losses and costs of moving to is so reemployed shall be deducted from the total period for which he is the same extent provided in subparagraph (m) of this paragraph (11) and para- entitled to receive a dismissal allowance. During the time of such reemploy- graph (12) (a) hereof. ment, he shall be entitled to the protections of this agreement to the extent No claim for reimbursement shall be paid under the provisions of they are applicable. this paragraph unless such claim is presented to the Recipient within nimety The dismissal allowance of any employee who is otherwise employ- (90) days after the date on which the expenses were incurred. ed shall be reduced to the extent that his combined monthly earnings from such other employment or self-employment, any benefits received from any unemploy- Except as otherwise provided in subparagraph (b), changes in place of residence, subsequest to the initial changes as a result of the ment insurance law, and his dismissal allowance exceed the amount upon which his dismissal allowance is based. Such employee, or his union representative, Project, which are not a result of the Project but grow out of the normal and the Recipient shall agree upon a procedure by which the Recipient shall be exercise of seniority rights, shall not be considered within the purview of this paragraph. kept currently informed of the earnings of such employee in employment other than with his former employer, including self-employment, and the benefits (12) (a) The following conditions shall apply to the extent they are received. applicable in each instance to any employee who is retained in the service of The dismissal allowance shall cease prior to the expiration of the employer (or who is later restored to service after being entitled to the protective period in the event of the failure of the employee without good receive a dismissal allowance), who is required to change the point of his cause to return to service in accordance with the applicable labor agreement, employment as a result of the Project, and is thereby required to move his or to accept employment as provided under subparagraph (e) above, or in the place of residence. event of his resignation, death, retirement, or dismissal for cause in accord- If the employee owns his own home in the locality from which he is ance with any labor agreement applicable to his employment. A dismissed employee receiving a dismissal allowance shall required to move, he shall, at his option, be reimbursed by the Recipient for actively seek and not refuse other reasonably comparable employment offered any loss suffered in the sale of his home for less than its fair market value, him for which he is physically and mentally qualified and does not require a plus conventional fees and closing costs, such loss to be paid within thirty change in his place of residence. Failure of the dismissed employee to comply (30) days of settlement or closing on the sale of the home. In each case, the with this obligation shall be grounds for discontinuance of his allowance; fair market value of the home in question shall be determined, as of a date provided that said dismissal allowance shall not be discontinued until final sufficiently prior to the date of the Project, so as to be unaffected thereby. determination is made either by agreement between the Recipient and the em- The Recipient shall, in each instance, be afforded an opportunity to purchase ployee or his representative, or by final arbitration decision rendered in the home at such fair market value before it is sold by the employee to any accordance with paragraph (15) of this agreement that such employee did not other person and to reimburse the seller for his conventional fees and closing costs. comply with this obligation.

(8) In determining length of service of a displaced or dismissed If the employee is under a contract to purchase his home, the Recip- employee for purposes of this agreement, such employee shall be given full ient shall protect him against loss under such contract, and in addition, service credits in accordance with the records and labor agreements applicable shall relieve him from any further obligation thereunder.

to him and he shall be given additional service credits for each month in If the employee holds an unexpired lease of a dwelling occupied by which he receives a dismissal or displacement allowance as if he were continu- him as his home, the Recipient shall protect him from all loss and cost in ing to perform services in his former position. securing the cancellation of said lease.

(9) No employee shall be entitled to either a displacement or dis- No claim for loss shall be paid under the provisions of this missal allowance under paragraphs (6) or (7) hereof because of the abolishment paragraph unless such claim is presented to the Recipient within one year of a position to which, at some future time, he could have bid, been transfer- after the effective date of the change in residence. red, or promoted. Should a controversy arise in respect to the value of the home, (10) No employee receiving a dismissal or displacement allowance the loss sustained in its sale, the loss under a contract for purchase, loss shall be deprived, during his protected period, of any rights, privileges, or and cost in securing termination of a lease, or any other question in connec- benefits attaching to his employment, including, without limitation, group tion with these matters, it shall be decided through a joint conference be- life insurance, hospitalization and medical care, free transportation for tween the employee, or his union, and the Recipient. In the event they are himself and his family, sick leave, continued status and participation under unable to agree, the dispute or controversy may be referred by the Recipient any disability or retirement program, and such other employee benefits as or the union to a board of competent real estate appraisers selected in the Railroad Retirement, Social Security, Workmen's Compensation, and unemployment following manner: one (1) to be selected by the representatives of the em- compensation, as well as any other benefits to which he may be entitled under ployee, and one (1) by the Recipient, and these two, if unable to agree within the same conditions and so long as such benefits continue to be accorded to thirty (30) days upon the valuation, shall endeavor by agreement within ten other employees of the bargaining unit, in active service or furloughed as the (10) days thereafter to select a third appraiser or to agree to a method by case may be. which a third appraiser shall be selected, and failing such agreement, eithe (11) (a) Any employee covered by this agreement who is retained in party may request the State or local Board of Real Estate Commissioners to the service of his employer, or who is later restored to service after being designate within ten (10) days a third appraiser, whose designatios will be entitled to receive a dismissal allowance, and who is required to change the binding upon the parties and whose jurisdiction shall be limited to determin- point of his employment in order to retain or secure active employment with ation of the issues raised in this paragraph only. A decision of a majority the Recipient in accordance with this agreement, and who is required to move of the appraisers shall be required and said decision shall be final, binding, his place of residence, shall be reimbursed for all expenses of moving his and conclusive. The compensation and expenses of the neutral appraiser, household and other personal effects, for the traveling expenses for himself including expenses of the appraisal board, shall be borne equally by the and members of his immediate family, and for his own actual wage loss during parties to the proceedings. All other expenses shall be paid by the party

124

incurring them, including the compensation of the appraiser selected by such appoint its arbitrator within five (5) days after notice of submission to party. arbitration has been given. Should the arbitrators selected by the parties be unable to agree upon the selection of the neutral arbitrator within ten (10) Except as otherwise provided in paragraph (11) (b) hereof, days after notice of submission to arbitration has been given, then the arbi- changes in place of residence, subsequent to the initial changes as a result trator selected by any party may request the Americas Arbitration Association of the Project, which are not a result of the Project but grow out of the to furnish, from among members of the National Academy of Arbitrators who are normal exercise of seniority rights, shall not be considered within the pur- then available to serve, five (5) arbitrators from which the neutral arbitra- view of this paragraph. tor shall be selected. The arbitrators appointed by the parties shall, within "Change in residence" means transfer to a work location which is five (5) days after the receipt of such list, determine by lot the order of either (A) outside a. radius of twenty (20) miles of the employee's former wIrk elimination and thereafter each shall, in that order, alternately eliminate location and farther from his residence than was his former work location, or one name until only one name remains. The remaining person on the list snail (B) is more than thirty (30) normal highway route miles from his residence and be the neutral arbitrator. If any party fails to select its arbitrator within also farther from his residence than was his former work location. the prescribed time limit, the highest officer of the Union or of the Recip- ient or their nominees, as the case may be, shall be deemed to be the selected (13) A dismissed employee entitled to protection under this agree- arbitrator, and the board of arbitration shall then function and its decision ment may, at his option within twenty-one (21) days of his dismissal., resign shall have the same force and effect as though all parties had selected their and (in lieu of all other benefits and protections provided in this agreement) arbitrators. Unless otherwise provided, in the case of arbitration proceed- accept a lump sum payment computed in accordance, with section (9) of the ings, under paragraph (5) of this agreement, the board of arbitration shall Washington Job Protection Agreement of May 1936: meet within fifteen (15) days after selection or appointment of the neutral Lesgth of Service Separation Allowance arbitrator and shall render its decision within forty-five (45) days after the 1 year and less than 2 years 3 months' pay 2"''" 3 " 6 hearing of the dispute has been concluded and the record cl6sed. The decision 3 ',,'",' S " 9 by majority vote of the arbitration board shall be final and binding as the S""'' 10 " 12 10"'"' 15 " 12 decision of the arbitration board, except as provided in subparagraph (b) 15" " over 12 below. All the conditions of the agreement shall continue to be effective during the arbitration prnceeoings. In the case of an employee with less than one year's service, five In the case of any labor dispute otherwise covered by subpara- days' pay, computed by multiplying by S the normal daily earnings (including graph (a) but involving multiple parties, or employees of urban mass transpor- regularly scheduled overtime, but excluding other overtime payments) received. tation employers other than those of the Recipient, which cannot be settled by by the employee in the position last occupied, for each month in which he collective bargaining, such labor dispute may be submitted, at the written performed service, will be paid as the lump sum. request of any of the parties to this agreement involved in the dispute, to a Length of service shall be computed as provided in Section 7 (b) single arbitrator who is mutually acceptable to the parties. Failing mutual of the Washington Job Protection Agreement, as follows: agreement within ten (10) days as to the selection of an arbitrator, any of For the purposes of this agreement, the length of service of the the parties involved may request the American Arbitration Association to employee shall be determined from the date he last acquired an employment furnish an impartial arbitrator from among members of the National Academy of status with the employing carrier and he shall be given credit for one month's Arbitrators who is then available to serve. Unless otherwise provided, in the service for each month in which he performed any service (in any capacity case of arbitration proceedings under paragraph (5) of this agreement, the ar- whatsoever) and twelve (12) such months shall be credited as one year's ser- bitrator thus appointed shall convene the hearing within fifteen (15) days vice. The employment status of an employee shall not be interrupted by fur- after his selection or appointment and shall render his decision within forty- lough in instances where the employee has a right to and does return to ser- five (45) days after the hearing of the dispute or controversy has been con- vice when called. In determining length of service of an employee acting as cluded and the record closed. The decision of the neutral arbitrator shall he an officer or other official representative of an employee organization, he final, binding, and conclusive upon all parties to the dispute. All the will be given credit for performing service while so engaged on leave of conditions of the agreement shall continue to be effective during the arbitration proceeding. Authority of the arbitrator shall be limited to the deter- absence from the service of a carrier. mination of the dispute arising out of the interpretation, application, or One month's pay shall be computed by multiplying by 30 the operation of the provisions of this agreement. The arbitrator shall not have normal daily earnings (including regularly scheduled overtime, but excluding any authority whatsoever to alter, amend, or modify any of the provisions of other overtime payments) received by the employee in the position last oc- any collective bargaining agreement. cupied prior to time of his dismissal as a result of the Project. The compensation and expenses of the neutral arbitrator, and any (14) Whenever used herein, unless the context requires otherwise, other jointly incurred expenses, shall be borne equally by the parties to the the term "protective period" means that period of time during which a dis- proceeding and all other expenses shall be paid by the party incurring them. placed or dismissed employee is to be provided protection hereunder and ex- In the event of any dispute as to whether or not a particular tends from the date on which an employee is displaced or dismissed to the employee was affected by the Projgct, it shall be his obligation to identify expiration of six (6) years therefrom, provided, however, that the protective the Project and specify the pertinent facts of the Project relied upon. It period for any particular employee during which he is entitled to receive the shall then be the Recipient's burden to prove that factors other than the benefits of these provisions shall not continue for a longer period following Project affected the employee. The claiming employee shall prevail if it is the date he was displaced or dismissed than the employee's length of service, established that the Project had an effect upon the employee even if other as shown by the records and labor agreements applicable to his employment factors may also have affected the employee (Hodgson's Affidavit in Civil prior to the date of his displacement or his dismissal. Action No. 825-71). (15) (a) In the event there arises any labor dispute with respect to Nothing in this agreement shall be construed to enlarge or limit the protection afforded by this agreement, or with respect to the interpreta- the right of any party to utilize, upon the expiration of any collective tion, application or enforcement of the provisions of this agreement, not bargaining agreement or otherwise, any economic measures which are not incon- otherwise governed by Section (12) (c) hereof, the Labor-Management Relations sistent or in conflict with applicable laws or this agreement. Act, as amended, Railway Labor Act, as amended, or by impasse resolution (16) Nothing in this agreement shall be construed as depriving any provisions in a collective bargaining or protective agreement involving the employee of any rights or benefits which such employee may have under any Recipient and the union, which cannot be settled by the parties thereto within existing job security or other protective conditions or arrangements by col- thirty (30) days after the dispute or controversy arises, it may be submitted lective bargaining agreement or law where applicable, including P. L. 93-236, at the written request of the Recipient or the union to a board of arbitration enacted January 2, 1974; provided that there shall be no duplication of bene- to be selected as hereinafter provided. One arbitrator is to be chosen by fits to any employees, and, provided further, that any benefit under the each interested party, and the arbitrators thus selected shall endeavor to agreement shall be construed to include the conditions, responsibilities, and select a neutral arbitrator who shall serve as chairman. Each party shall obligations accompanying such benefit. 125

The Recipient shall be fillancially responsible for the appli- This agreement shall be binding upon the successors and assigns cation of these conditions and will make the necessary arrangements so that of the parties hereto, and no provisions, terms, or obligations herein con- any employee affected as a result of the Project may file a claim through his tained shall be affected, modified, altered, or changed in any respect whatso- union representative with the Recipient within sixty (60) days of the date he ever by reason of the arrangements made by or for the Recipient to manage and is terminated or laid off as a result of the Project, or within eighteen (18) operate the system. months of the date his position with respect to his employment is otherwise Any such person, enterprise, body, or agency, whether publicly- or worsened as a result of the Project; provided, in the latter case, if the privately-owned, which shall undertake the management or operation of the events giving rise to the claim have occurred over an extended period, the system, shall agree to be bound by the terms of this agreement and accept the 18-month limitation shall be measured from the last such event; provided, responsibility for full performance of these conditions. further, that no benefits shall be payable for any period prior to six (6) The employees covered by this agreement shall continue to months from the date of the filing of the claim. Unless such claims are filed receive any applicable coverage under Social Security, Railroad Retirement, with the Recipient within said time limitations, the Recipient shall there- Workmen's Compensation, unemployment compensation, and the like. In no event shall these benefits be worsened as a result of the Project. after be relieved of all liabilities and obligations related to said claims. In the event any provision of this agreement is held to be The Recipient will fully honor the claim, making appropriate payments, or will invalid, or otherwise unenforceable under the federal, State, or local law, in give notice to the claimant and his representative of the basis for denying or the Context of a particular Project, the remaining provisions of this agree- modifying such claim, giving reasons therefor. In the event the Recipient ment shall not be affected and the invalid or unenforceable provision shall be fails to honor such claim, the Union may invoke the following procedures for renegotiated by the Recipient and the interested union representatives of the further joint investigation of the claim by giving notice in writing of its employees involved for purpose of adequate replacement under §13 (c) of the desire to pursue such procedures. Within ten (10) days from the receipt of Act. If such negotiation shall not result in mutually satisfactory agreement, such notice, the parties shall exchange such factual material as may be re- any party may invoke the jurisdiction of the Secretary of Labor to determine quested of them relevant to the disposition of the claim and shall jointly substitute fair and equitable employee protective arrangements for application take such steps as may be necessary or desirable to obtain from any third only to the particular Project, which shall be incorporated in this agreement party such additional factual material as may be relevant. In the event the only as applied to that Project, and any other appropriate action, remedy, or claim is so rejected by the Recipient, the claim may be processed to arbi- relief. tration as hereinabove provided by paragraph (15). Prior to the arbitration This agreement establishes fair and equitable employee protec- hearing, the parties shall exchange a list of intended witnesses. In conjunc- tive arrangements for application only to federal operating assistance Pro- tins with such proceedings, the impartial arbitrator shall have the power to jects under §3 (h) and 5 of the Act and shall not be applied to other types subpoena witnesses upon the request of any party and to compel the production of assistance under §5 or under other provisions of the Act, in the absence of of documents and other information denied in the pre-arbitration period which further understandings and agreements to that effect. is relevant to the disposition of the claim. The designated Recipient, as hereinabove defined, signatory Nothing included herein as an obligation of the Recipient shall be hereto, shall be the sole provider of mass transportation services to the construed to relieve any other urban mass transportation employer of the Project and such services shall be provided exclusively by employees of the employees covered hereby of any obligations which it has under existing col- Recipient covered by this agreement, in accordance with this agreement and any lective bargaining agreements, including but not limited to obligations aris- applicable collective bargaining agreement. The parties recognize, however, ing from the benefits referred to in paragraph (10) hereof, nor make any such that certain of the recipients signatory hereto, providing urban mass trans- employer a third-party beneficiary of the Recipient's obligations contained portation services, have heretofore provided such services through contracts herein, nnr deprive the Recipient of any right of subrogation. by purchase, leasing, or other arrangements and hereby agree that such practices may continue. Whenever any other employer provides such services During the employee's protective period, a dismissed employee shall, if he so requests, in writing, be granted priority of employment to through contracts by purchase, leasing, or other arrangements with the Recip- ient, or on its behalf, the provisions of this agreement shall apply. fill any vacant position within the jurisdiction and control of the Recipient, An employee covered by this agreement, who is not dismissed, reasonably comparable to that which he held when dismissed, for which he is, displaced, or otherwise worsened in his position with regard to his employment or by training or retraining can become, qualified; not, however, in contra- as a result of the Project, but who is dismissed, displaced, or otherwise vention of collective bargaining agreements relating thereto. In the event worsened solely because of the total or partial termination of the Project, such employee requests such training or re-training to fill such vacant posi- discontinuance of Project services, or exhaustion of Project funding, shall tion, the Recipient shall provide for such training or re-training at no cost not be deemed eligible for a dismissal or displacement allowance within the to the employee. The employee shall be paid the salary or hourly rate pro- meaning of paragraphs (6) and (7) of this vided for in the applicable collective bargaining agreement for such position, If any employer of the employees covered by this agreement pius any displacement allowance to which he may be otherwise entitled. If shall have rearranged or adjusted its forces in anticipation of the Project, such dismissed employee who has made such request fails, without good cause, with the effect of depriving an employee of benefits to which he should be within ten (10) days to accept an offer of a position comparable to that which entitled under this agreement, the provisions of this agreement shall apply to he held when dismissed for which he is qualified, or for which he has satis- such employee as of the date when he was so affected. factorily completed such training, he shall, effective at the expiration of Any eligible employer not initially a party to this agreement such ten-day period, forfeit all rights and benefits under this agreement. As between employees who request, employment pursuant to this para- may become a party by serving written notice of its desire to do so upon the graph, the following order where applicable shall prevail in hiring such Secretary of Labor, the American Public Transit Association, or its designee, employees and the unions signatory hereto, or their designee. In the event of any objection to the addition of such employer as a signatory, then the dispute as Employees in the craft or class of the vacancy shall be given to whether such employer shall become a signatory shall be determined by the priority over employees without seniority in such craft or class; Secretary of Labor. As between employees having seniority in the craft or class of In the context of a particular Project, any other union which the vacancy, the senior employees, based upon their service in that craft or is the collective bargaining representative of urban mass transportation class, as shown on the appropriate seniority roster, shall prevail over junior employees in the service area of the Recipient, and who may be affected by the employees; assistance to the Recipient within the meaning of 49 U.S.C.A. 1609 (c) may As between employees not having seniority in the craft or class become a party to this agreement as applied to the Project, by serving written of the vacancy, the senior employees, based upon their service in the crafts notice of its desire to do so upon the other union represemtativen of the em- or classes in which they do have seniority as shown on the appropriate senior- ployees affected by the Project, the Recipient, and the Secretary of Labor. ity rosters, shall prevail over junior employees. In the event of any disagreement that such labor organization should become a 126

IN WITNESS WHEREOF, the parties hereto have executed this agreement party to this agreement, as applied to..-the Project, then the dispute as to whether such labor organization shall participate shall be determined by the by their duly authorized repesentatives.

Secretary of labor.

This agreement shall be effective and be in full force and effect for the period from November 26, 1914 to and including September 30, 1917. It shall continue in effect thereafter from year to year unless termin- AMERICAN PUBLIC TRANSIT ASSOCIATION ated by the A.P.T.A. or by the national labor organizations signatory hereto upon one hundred twenty (120) days' written notice prior to the annual renewal By: Stanley H. Gates, Jr. /5/ date. Any signatory employer or labor organization may.individually withdraw from the agreement effective October 1, 1977, or upon any annual renewal date Date: thereafter, by serving written notice of its intention so to withdraw one hundred twenty (120) days prior to the annual renewal date; provided, however, By: B. R. Stokes /s/ that any rights of the parties hereto or of individuals established and fixed during the term of this agreement shall continue in full force and effect, Date: 7/23/15 notwithstanding the termination of the agreement or the exercise by any signatory of the right to withdraw therefrom. This agreement shall be subject to AMALGAMATED TRANSIT UNION, AFL-CIO revision by mutual agreement of the parties hereto at any time, but only after the serving of a sixty (60) days' notice by either party upon the other. By: D. V. tIaroney, Jr. /s/

In the event any project to which this agreement applies is Date: 1-23-15 approved for assistance under the Act, the foregoing terms and conditions shall be made part of the contract of assistance between the federal govern- TRANSPORT WORKERS UNION OF ment and the Recipient or other applicant for federal funds; provided, how- AMERICA, AFL-CIO ever, that this agreement shall not merge into the contract of assistance but shall be independently binding and enforceable by and upon the parties there- By: Matthew Guinan 1sf to, in accordance with its terms, nor shall any other employee protective

agreement nor any collective bargaining agreement merge into this agreement, Date: 7-23-75 but each shall be independently binding and enforceable by and upon the parties thereto, in accordance with its terms.

APPENDIX H

INITIATING PRIVATE VENTURES

SELF-ANALYSIS—THE STARTING POINT of self-analysis. These are provided by the Small Business Administration. Rather than quickly checking an answer, The single largest determinant of success or failure in considerable thought should be given to each question. the small independent firm is the firm's owner/manager. Beyond self-analysis per se, numerous other factors must The often quoted statement that business is made up of be understood before pursuing a business venture. Some "men, money and markets" (the three Ms) is true. Busi- additional questions to assist in identifying and evaluating ness will not succeed without sufficient demand for its these factors in a preliminary way are presented in an products or services in the marketplace, without adequate additional worksheet (Fig. H-2). capitalization to see the business through its early stages, These are not in-depth, comprehensive lists of questions, or without good professional management. Management but they should serve to initiate a realistic assessment pro- is most important, however, because management must cess. It is reported widely that 90 percent of all businesses obtain the financing needed and must ascertain that suffi- fail within five years—but the 10 percent that succeed are cient market demand exists to justify pursuing the business. often the ones in which people engaged in detailed advance The overwhelming burden of responsibility is therefore planning and self-analysis. The following sections should on the shoulders of the owner/manager. help the potential business owner to engage in those plan- With this premise in mind, the first "test" to be faced ning activities. by the prospective business owner is not market or financial analysis, but self-analysis. Although there are no validated ASSESSING MARKET/BUSINESS OPPORTUNITY tests to neatly measure one's management and entrepreneur- ial potential, there are some right guidelines and ques- Once it is concluded that the owner/manager has the tions that should be faced, at least in an introspective way. capability and motivation to succeed in a business, the next The Self-Analysis Worksheet (Fig. H-i) presents a set of logical step is to analyze closely the actual feasibility of questions that may be completed as a start in the direction different types of business ventures. Although the prospec-

127

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tive business owner may be considering a specific type of balance between revenues and costs, with revenues the transportation se'rvice (e.g., specific employer work bus, result of the sale of transportation services. In approach- human service agency transportation, general commuter ing the' marketplace with a transportation service, the bus, van service, etc.), it is best to preserve the options success or failure of the revenue side of the equation until it is evident that offering a specific type of service obviously hinges on the market response or the response really represents a viable business opportunity. By "oppor- of potential customers. A middleman may be involved if tunity" it is meant that there is a good chance for profit the city provides the means whereby this demand effectively as well as a chance for the business owner to achieve other can purchase the services. If a sufficiently high level of nonfinancial objectives. demand exists for the transportation service to be profit- Making a profit is addressed fundamentally by the able, this is a market opportunity. However, determina- 128

Money: Your services and the law: Do you know how much money you will need to get your trans- Do you know what licenses and permits you need? portation business started? Have you developed a detailed Do you know what business laws you have to obey? list of initial and ongoing costs? Do you know a lawyer you can go to for advice and for help Have you counted up how much money of your own you can put into the business? with legal papers? Do you know how much credit you can get from your suppliers--the people you will buy from? Protecting your business: Have you figured out what net income per year you expect Have you made plans for protecting your business against to get from the business? Count your salary and your theft? profit on the money you put into the business. Have you talked with an insurance agent about the kinds of Can you live on less than this so that you can use some insurance you need? of it to help your business grow? Buying a business someone else has started (if applicable): Have you talked to a banker about your plans? Have you made a list of what you like and don't like about Partners: buying a business someone else has started? If you need a partner with money or know-how that you Are you sure you know the real reason why the owner wants don't have, do you know someone who will fit--someone to sell his business? you can get along with? Have you compared the cost of buying the business with the Do you know the good and bad points of going it alone, cost of starting a new business? having a partner, and incorporating your busiuos? Is the equipment up to date and in good condition? Have you talked to a lawyer about it? Will the owner of the building (if any) transfer the lease to you? Customers: Have you talked with other businessmen in the area to see Do most transportation businesses (if any) in your com- what they think of the business? munity seem to be doing well? Have you talked with the company's suppliers? Have you tried to find out whether businesses like the one you want to open are doing well in the rest of the Have you talked with a lawyer about it? country? Advertising and selling: Do you know what kind of people will want to pay for the services you plan to offer? Have you decided how you will advertise? (Newspapers, posters, handbills, radio, mail) Do people like that live in the area where you want to start your business? Do you know where to get help with your ads? Do they need a service like yours? Have you watched what other similar firms do to get people to buy? If not, have you thought about opening a different kind of transportation service or going to another area? Do you know how to get potential customers to use your service? Your building: Is a building necessary and, if so, have you foond a good one? Buying: Will you have enough room when your business grows? Do you have a well-developed plan for selecting vehicles? Can you fix the building the way you want it without Will your plan for keeping track of your supply inven- spending too much money? tories tell you when it is time to order more and how much to order? Can it be rented? Do you plan to buy most of your supplies from a few sup- Have you had a lawyer check the lease and zoning? pliers rather than a little from many, so that those you buy from will want to help you succeed? Equipment and supplies: Do you know just what equipment and supplies you need and Maintenance: how much they will cost? Do you have a well-planned preventive maintenance plan? Can you save some money by buying secondhand equipment? Have you carefully estimated maintenance costs? Will you perform maintenance functions in your firm or will Is this a wise course of action? this be done by others? Your services:

Have you decided exactly what services you will offer? Your employees: Do you know how many vehicles you will need to start? If you need to hire someone to help you, do you know where Have you found suppliers who will sell you what you need at to look? a good price? Do you know what kind of person you need? Have you compared the prices and credit terms of different Do you know how much to pay? suppliers? Do you have a plan for training your employees? Your records: Routing and scheduling: Have you planned a system of records what will keep track of your income and expenses, what you owe other people, and Have you carefully considered alternative routes and what other people owe you? schedules (if any)? Have you worked out a way to keep track of your supply in- Have you considered the effects of different routing and ventories so that you will always have enough on hand but scheduling on costs and demand? not more than you actually need? A Few Extra Questions: Have you figured out how to keep your payroll records and take care of tax reports and payments? Have you figured out whether you could make more money working for someone else? Do you know what financial statements you should prepare? Does your family go along with your plan to start a busi- Do you know how to use these financial statements? ness of your own? Do you know an accountant who will help you with your Do you have a work plan for yourself and your employees? records and financial statements?

Figure H-2. Getting down to business worksheet. Figure H-2 (Continued) 129

tion of profit also requires attention to the cost side of is true whether costs are covered from the farebox, by the business. subsidies, or through outright purchase by local government. Assessing unfulfilled needs or market opportunities MARKETS AND MARKETING is an imprecise process, necessarily tailored to some degree to each community. Yet, several essential elements of a To understand the process of assessing potential reve- market opportunity analysis should be considered. Much nues or the market opportunity for a transportation ser- of the task is comprised of studying the travel behavior vice, it is necessary first to understand some basic ideas of the community's citizens while attempting to identify about markets and marketing. and serve the needs of groups of people. In marketing, Marketing and market opportunity analysis begin and consumer/citizen groups that can be served profitably are end with the consumer. Modern marketing is not, as many termed "market segments," and "segmentation" is the believe, a deceptive, arm-twisting process. Good market- process of identifying and selecting these market segments ing practice identifies products and services that consumers or market targets. For example, senior citizens or children want and provides the process through which these wants could represent market segments. can be satisfied. This process, in the case of transporta- For a viable market, segment to exist, it should measure tion, includes identification of specific market segments, up to at least four criteria. First, the group and the po- communicating to consumers the existence of the trans- tential demand for services from that group must be of portation service and making the service conveniently sufficient size to justify the business investment. Second, available to the prospective riders. The other necessary and most important, the segment or group identified does marketing consideration is setting the price of the service. indeed have to be different from other groups that could Throughout this process, it is essential that the consumer be served; otherwise, there is no reason to develop a be viewed as "king." Being customer-oriented is central special approach to the group under consideration. Third, to the long-term success of any privately owned business. the potential segment must be economically accessible. For If the "brokerage concept" is used, this may require a example, if individual transit riders are distributed widely special sensitivity both to ultimate consumers (riders) and over a geographic area, they may not be economically ac- to the office that carries out the brokerage function. cessible. The cost of serving each passenger would be Ideally, the objectives of these two groups would be in prohibitive. Fourth, the demand from the segment must concert with one another. be sufficiently stable in the future to provide for a steady Marketing literature often refers to the four "Ps"—Prod- flow of revenues to cover equipment investment, operat- uct, Promotion, Place (or distribution), and Price. In- ing costs, and profit. This is a particularly important con- stead, one might refer to SCRP as transportation Service, sideration given the rapidly changing environment in which Communications, Routing and Price. (If the services are transit operates. Changing gasoline prices, the degree of bid for, simply replace Price with Bidding, or SCRB.) citizen concern about future fuel shortages, citizens' at- Effective marketing requires systematic attention to co- titudes toward doing their "fair share" to conserve fuel, ordinating all of these decision areas. Many local transit and numerous other factors contribute to making future systems, for example, in recent years have engaged in demand less stable than would be ideal. considerable promotion and communications, but not in The objective of the segmentation process is: (1) to a comprehensive marketing effort. The traditional fixed- recognize the differing transportation needs of various route services too often have remained the same. Prices groups in the community; and (2) to develop the types of have been tied to historic levels and supported through the services, communications, routes, and prices that will at- "public purse," and routing has remained more a political tract ridership. The net result is the provision of better matter than a response to consumer desires. In sum, many service to several groups that are each fairly homogeneous systems have continued to operate with little systematic with respect to their transportation related preferences and attention to treating existing and potential riders (consumers) as "king." As one stated this idea (Ross, R. B., "Pub- attitudes. lic Marketing: Improving Public Acceptance of Govern- In many communities, the transportation market can ment." Paper delivered to San Diego Chapter, American first be broken down into several illustrative groups as Society for Public Administration, February 18, 1976): shown in Figure H-3. Persons who use existing public transportation in most cities are "captives,", because they Unfortunately, modern government, while paying lip ser- cannot afford to own and operate' a private vehicle or vice to Jeffersonian principles, follows the dictates of cannot obtain an operator's license. As a result, they use Alexander Hamilton in decision-making: it prefers the opinion of 'experts' about what is good for the citizen to either traditional fixed-route transit or other transporta- the opinion of the citizen himself. tion, such as taxicabs, school buses, and human service agency vans. A relatively small percentage of transit MARKET OPPORTUNITY ANALYSIS riders consists of noncaptives voluntarily using existing Modern marketing and the identification of market op- transit facilities. Developing an understanding of who portunities begin with an unfulfilled need or want. If these riders are (rider profiles) and of why they ride may provide hints as to larger, untapped market segments that sufficient numbers of consumer/citizens have a need for a particular form or type of transportation, and if this could be pursued profitably. need can be met at a sufficiently low cost, a chance for the By far the greatest untapped potential is in the transit private sector to deliver transportation services exists. This nonuser group that typically is made up of healthy mdi- 130

sarily would involve a significant commitment from state All Consumer Citizens and local governments, although private enterprise could contribute in an advisory role. A second approach is piecemeal compared to the comprehensive study, but includes encouraging existing and Transit Users I I Transit Nonusers potential transportation service providers to identify tentative business opportunities and to assist these potential providers in carrying out specific feasibility studies. Whether a comprehensive community study or a series of feasibility studies, the questions that must be answered Transit 'Captives' I I Transit Noncaptives will concern many of the factors identified in Table H-i. In addition, particularly in a specific feasibility study, attention should be given to the perceptions of, or attitudes toward, the specific mode and type of service that are Low income Families I Work Commuters proposed. Much of the information needed is information about riders and potential riders of transit alternatives. This buyer behavior information is an essential base for identifying opportunities as well as for subsequently Handicapped Persons L.... Carpool/vanpool Riders designing marketing strategies to profit from the opportunities. In addition to segmentation analysis and studying potential customer behavior, another element in a market opportunity analysis is assessing existing and potential.com- Children petition. Attention should be given to both publicly and privately owned transportation that either now or in the future will serve, at least partially, the needs of the target market being focused upon. Part of this task requires Aged and Sick an understanding of local regulations, inasmuch as they may restrict or ensure competition. In any event, competi- Figure H-3. Illustrative groups of transportation profiles. tion cannot be ignored as an important consideration in determining if a market opportunity exists. Once the market has been analyzed into segments, the viduals from medium-to-high income families who have buyer behavior of potential customers has been studied, little inclination to give up privately owned vehicles. This and competition has been evaluated, the objective is to is the most difficult group to attract to group transporta- derive a specific level of sales and revenues that can be tion. A detailed study and further segmentation of this anticipated if the business is started. This task requires large, diverse group are necessary before transit-related considerable judgment and, particularly for a new service business opportunities can be identified. Any previously serving a new market, may be somewhat speculative. Past conducted community transit studies may be reviewed for experience may provide considerable insight in developing identifying (or confirming) the location of activity centers, a sound forecast for providing an existing service to an the significant traffic corridors, and the current use of existing market. different transit modes (e.g., bus, cab, vanpools, private To further pursue the task of market opportunity anal- car), as well as for insights into the travel patterns and ysis, several additional readings are provided at the end the timing of different types of. trips (e.g., work, school, of this appendix which should be useful. shopping, entertainment, church). In other words, all relevant secondary data already in transportation planner FINANCIAL PLANNING offices should be pursued if it will yield insight into the Once an apparent business opportunity has been iden- transportation needs, behaviors, attitudes, and/or the per- tified, more detailed financial analysis and planning are ceptions of the general populace. Creativity and imagina- required. If sufficient potential demand exists for the tion are key ingredients at this stage of tentatively identify- transportation service, the logical next step is to develop ing unfulfilled wants and needs or, more likely, of a detailed business plan including attention to financial generating viable transportation substitutes for the needs feasibility. If this analysis indicates a "go ahead" decision, already filled by the personal automobile. the entrepreneur must work toward obtaining financing for There are at least two approaches that can be taken the venture. The business plan, summarizing the key individually or in combination for identifying specific op- facets of the proposed business, is an essential part of the portunities for the involvement of private enterprise. One financing process. It ideally begins with a statement of is a comprehensive study of a city's transportation needs business objectives and culminates with projected financial and opportunities. The objective of such a study would statements. Although necessarily brief, a comprehensive be to identify several market segments as well as the plan provides a basis for financial sources to evaluate a transit modes and the attributes that best could serve the venture. The plan should illustrate the specific financing needs of the segments. A study of this magnitude neces- 131

TABLE H-i ILLUSTRATIVE TYPES OF FACTORS TO STUDY

Classificatory, demographic and socioeconomic characteristics Age of household head Household income Auto ownership Occupation of household head Working status of household head's spouse Home/work locations

Transportation mode behavior of household members Use of each modal type (private car, bus, taxi, etc.) Frequency of use of each modal type Trip purpose for which each mode typically is used Readiness to try a different mode for each trip purpose/modal loyalty Preference for mode attributes Modal combinations/frequency

Trip behavior of household members Purposes for which trips are made Frequency of trips for each purpose Location of trip destinations Preference for trip characteristics (travel time, travel distance, traffic congestion, parking, etc.)

Life style with respect to travel and travel related behavior Activities Interests Opinions

Transportation mode awareness and attitudes Awareness of transit routes, schedules and fares Past experience with transit modes Attitudes toward the attributes of transit modes Attitudes toward the attributes of the private auto

Media habits and use of information about transportation modes Use of media for transportation information vs. other information sources Relative importance of sources used

needs of the proposed business. An illustrative outline is ners and political leaders consider the transportation service given in Table H-2. to be essential, it may be possible to pursue mutually bene- The initial investment is the most obvious financial need, ficial financing arrangements. A city may be able to ob- and it is critical to provide adequate working capital dur- tain financing for vehicles through several state and federal ing the start-up phase. Estimations and plans to cover funding sources, such as the Section 16(b)2 program of the cash requirements for payrolls and other operating UMTA, and then lease the vehicles at cost back to a expenses during the first few months are as important as private transportation firm. The same principle could obtaining the initial financing. Analysis of cash flows in- apply to physical facilities. The entrepreneur should not volves estimating the cash receipts and cash disbursements ignore the possibility of public financing while still re- during a given time period. Although it is a difficult task taining the essential elements of an independently operated for a new business venture, it is essential to estimate and business. to provide for any foreseeable cash shortages in advance. If actual public financing is not available, an alternative Ideally, a statement of sources and uses of funds should is to seek a loan guarantee from a local government and/or be developed for the first 12 months of operation. have the city act as a cosigner on a loan. In this arrangement, the city could be held responsible in the event of ALTERNATIVE METHODS FOR INITIAL FINANCING loan default, reducing somewhat the risk for the entrepreneur. This arrangement should facilitate the availability Once the total amount of financing is known, alterna- of financing and should contribute to favorable loan terms. tive methods for generating capital can be pursued. These Support from the local government could be very bene- include: (1) seeking support from local government, (2) ficial, and for certain specialized services, such as services equity financing, (3) issuance of bonds, and (4) obtaining to the elderly and the handicapped, it is likely that such a term loan. a commitment could be obtained in many localities. The key is to identify and sell the city on the mutually bene- Local Government Support ficial aspects of such an arrangement. With or without support from local government, alterna- Although this discussion generally assumes a private ven- tive methods for financing involve equity financing or debt ture, the possibility of a joint arrangement with a local financing; and debt financing, in turn, can involve either government may be pursued. If city transportation plan- issuing bonds or obtaining a term loan. 132

TABLE H-2 ILLUSTRATIVE BUSINESS PLAN OUTLINE

I. Cover Letter

Dollar amount requested Terms and timing Type and price of securities

II. Summary

A. Business description Name Location and plant description Services Market and competition S. Management expertise B. Business goals C. Summary of financial needs and application of funds D. Earnings projections and potential return to investors

III. Market Analysis

Description of total market Industry trends Target market Competition

IV. Services

Description of services Proprietary position: legal and technical considerations Comparison to competitors services

V. Providing the Service

Vehicles and supplies needed Sources of supply Routing methods Equipment maintenance

VI. Marketing Strategy

Overall strategy Pricing policy Methods of selling and providing services

VII. Management Plan

Form of business organization Board of directors composition Officers: organization chart and responsibilities Resumes of key personnel Staffing plan/number of employees Facilities plan/planned capital improvements C. Operating plan/schedule of upcoming work for next one to two years

VIII. Financial. Data

A. Financial history (five years to present) B. Five-year financial projections (first year by quarters; remaining years annually) Profit and loss statements Balance sheets Cash flow chart Capital expenditure estimates C. Explanation of projections D. Key business ratios E. Explanation of use and effect of new. funds F. Potenial return to investors compared to competitors and the industry in general

Equity Financing individual. But it should be recognized that even a vocal minority can become a burden, and sale of over 49 per- Given the negative publicity too often facing public cent of the stock makes the primary owner even more transportation, it may be impossible to obtain partial cap- vulnerable. The advantage is that of obtaining capital italization by selling ownership shares in the business. If the enterpreneur retains 51 percent ownership, control of with no obligation to repay except through earnings. By the firm and decision-making authority still rest with that incorporating and issuing stock, the potential loss cannot 133

exceed the actual business investment itself. If incorpo- vide equipment leasing services, and collateral loans on rated, the loss of personal assets usually can occur only existing vehicles often are available. The interest charges if the owner has given a creditor a specific lien on personal are higher than from a bank because of the greater risk assets. usually assumed—but it is a source worth considering. If stock is sold publicly to the general community, the Commercial banks usually are good places to begin regulations of the Securities and Exchange Commission searching for debt capital. Assuming that a respectable (SEC) must be satisfied if the issue totals $300,000 or business plan or "loan package" is presented, a bank may more. The issue has to be registered with the SEC. When be able to finance part of the venture or to identify other it totals less than $300,000 or if it is privately placed with institutions or individuals in the community who might fewer than 25 buyers, the regional SEC office still must have an interest in the proposed transportation business. receive a notification form (Smerk, G., Handbook for Mass These could include venture capital firms or individual Transit in Small Cities, Indiana University Press, 1971). venture capitalists. Again, it is often difficult to sell stock in a new business It is wise to shop for credit and to compare the avail- venture, so most prospective business owners must con- able terms. Developing good relationships in a community sider at least some debt financing through bonds or loans. with key banking and other financial personnel in advance of seeking new business financing is wise. Open, frequent Issue Bonds communications with area bankers can result in ideas and The actual issuance of bonds is somewhat similar to the assistance that serve to stem future financial pressures. issuance of stocks, but there are major differences. Bonds Many people assume that the Small Business Administra- do not convey ownership to those who buy, but instead tion (SBA) office in the community is a highly probable create debt capital because of a contractual obligation to source of funds, but this generally is not true. Most SBA repay principal plus interest on a certain date. In the loans are bank participation loans where the bank provides event of business liquidation, bond holders are paid from the capital and the SBA guarantees up to 90 percent of the sale of assets ahead of stockholders (owners). Because the loan. The interest paid usually is one-half of one per- of these preferential rights, it usually is easier to sell bonds cent higher on an SBA guarantced loan, and one is quali- than stock, assuming an attractive rate of return is offered. fied for an SBA insured loan only after having been The debenture bond is secured by the general worth of turned down by two banks. A small portion of SBA loans the firm, although mortgage bonds or income bonds also is direct loans, and many of these in recent years have could be used. Mortgage bonds use the personal property been tied to special priorities such as supporting minority- of the borrower as security, and income bonds require owned businesses. Although independent, another SBA payment only when the firm makes a profit (Smerk, G., supported program is for creating Small Business Invest- Handbook for Mass Transit in Small Cities, Indiana Uni- ment Companies (SBIC). SBICs are licensed by SBA but versity Press, 1971). Although it is usually not done by are privately operated by experienced business people. local transportation authorities, it is conceivable that mu- These are financial institutions created to make equity nicipalities could purchase bonds issued by local private capital and long-term credit available to small businesses. transportation providers as a means of providing financial SBICs may purchase the stock of a new firm, buy bonds, aid with the probability of future financial gain to the city. or make long-term loans; they often provide managerial assistance to help ensure success. Area SBICs are alterna- Term Loans tives worth checking and may be identified by calling a local SBA office. The most common debt financing is a loan with a com- Loans also may be available from finance companies mercial bank or other institution, and this is probably the that are owned and controlled by vehicle manufacturers. most viable approach for most prospective business owners. The big three automobile companies provide financing for However, it is common for banks to require that one-half credit-worthy customers and offer vehicle leasing programs to two-thirds of the financing be owner(s) equity. The that are definitely worth investigating. In some cases, en- specific types and terms of loans vary widely, particularly tire fleets for private transportation firms can be financed across different sources of financing. in this manner. Leasing vehicles can cut the necessary In addition to banks, finance companies and insurance capital investment as well as the corollary risk tied to that companies may represent good sources. Property and initial outlay for facilities. A lease with an option to buy casualty insurance companies are more involved than other may allow the transportation service to be market tested insurance companies (which are stringently regulated) in before a major investment is made. If the demand exists new venture financing; but even they have a very small and profits are generated, the option to buy can be exer- percentage of their investments in new ventures though cised. One arrangement of this type is the equipment these investments will total several million dollars for trust obligation. Under this technique, a financial institu- larger firms. For a small firm facing considerable risks, tion is the nominal owner of the equipment and the transit may be difficult to gain access to such companies unless portation firm pays what in effect is a rental fee. When the growth and profit potentials are great. the total fees equal the equipment costs plus the interest Commercial finance companies offer a wide range of charges, the firm becomes the owner (Smerk, G., Hand- financial services and often will take a greater risk than book for Mass Transit in Small Cities, Indiana University a commercial bank. Some finance companies even pro- Press, 1971). 134

stocks, bonds, and insurance policies. A financial source Trade Credit may seek additional protection by requiring a loan cosigner one also should seek good terms with day-to-day sup- who has substantial assets and by building covenants into pliers to minimize working capital requirements. Credit the loan that restrict the flexibility of management (e.g., to charge fuel for 30 days, for example, may allow reve- requiring a set level of insurance, a certain level of work- nues to "catch up" with the costs. In general, if a time- ing capital, or restrictions on the amount of dividends or delayed payment for operating supplies is available, it can salaries that can be paid). be used to lower the working capital required and, in effect, to finance part of the business. Good relationships Sum mary with suppliers from the start can provide a very valuable Although this financing section should provide insight source of short-term credit. into some of the options available, it is good to discuss any tentative financing plans with experienced persons in Other Sources transportation as well as in the banking industry. The advice of an attorney, which is essential if securities are The entrepreneur's personal credit may be sufficient to to be issued, generally is recommended in any event. raise considerable capital if necessary. Credit unions and Finally, the additional readings cited at the end of this consumer finance companies may be necessary sources, and borrowing on insurance policies and on one's personal appendix provide information for better understanding the financing process. It is recommended that they be acquired residence (via a second mortgage) is a method often used by struggling new business owners. Other assets such as and studied. automobiles and boats can be used as security. The financial risks are obviously greater with liens directly PLANNING AND ORGANIZATION attached to personal assets. Other sources that may be Key components in a comprehensive business plan inappropriate in some cases are savings and loan companies clude attention to business goals and organization as well (for real estate construction) and state or local develop- as licensing and insurance coverage (see Table H-2). ment companies. Goals CRITERIA USED TO EVALUATE LOAN APPLICATIONS The long-range goals of the business should be estab- A "loan package" or information pack (see Table H-3) lished carefully, put in writing, and updated as necessary. typically is assembled and presented for evaluation to pos- In addition to goals related to business profit, goals may sible financial sources. Whether a bank, a venture capital- be established regarding the role one wishes to play in ist, or some other financial source, certain basic criteria the community, the level of consumer or employee satis- will be used for evaluating the loan package. Considerable faction the firm may hope to generate, and the like. A attention will be directed to the character, business ex- meaningful statement of goals may require a considerable perience, and managerial abilities of the potential owner! amount of personal introspection by the owner so as to manager. The individual's integrity plays an important determine the real goals that person has, including such dimensions as personal independence, freedom, and com- role in the financing decision, particularly if anything negative should become known about past business dealings. munity standing. The necessarily broad goals of the busi- Beyond integrity, the person's managerial capability is ness must be made operational or measurable and also central to the evaluation task. Evaluating the individual attached to a time horizon. According to one observer often requires use of informal information sources, such (Metcalf, W. 0., Starting and Managing a Small Business of Your Own, U.S. Government Printing Office, Small as former business associates, employees, and even friends. One's past business record and the business plan itself are Business Administration, 1973), one should: evaluated carefully. Also considered are the applicant's G enerate measurable goals and subgoals; effectiveness in communicating, in dealing with people, o rganize action steps to achieve goals; and in using information for decision-making. if there A how for obstacles; L me up actual performance against goals; and are to be other key people in the firm's management, they S et new goals and subgoals to keep up to date. too are evaluated. In summary, a comprehensive review of the owners and managers of the proposed firm is critical Organization to the financing process. Once clear goals are established, the company's organiza- The second major factor studied in a financing application may be established with clear lines of responsibility tion is the viability of the business idea—including plan, and authority for all personnel. In a small firm, it is credit rating, and financial standing of the potential busi- tempting to leave this task to chance rather than to analyze ness owner. The applicant's ability to repay the amount systematically the tasks that must be performed and then borrowed through earnings or, if necessary, through the to develop related job descriptions for all employees. As sale of other assets is an important criterion. In the case a firm grows, it becomes desirable to develop an organiza- of a transportation firm, the vehicles themselves usually tional chart that clearly shows the management positions act as partial collateral for a loan. Other collateral may in the business and the related levels and lines of authority have to be pledged as security—including supplies inventories (if any), accounts receivable or personally owned and responsibility. 135

TABLE H-3 ILLUSTRATIVE LOAN PACKAGE OUTLINE

I. Summary

Nature of business Amount and purpose of loan Repayment terms Equity share of borrower (equity/debt ratio after loan) Security or collateral (listed with market value estimates and quotes on cost of equipment to be purchased with the loan proceeds)

II. Personal Information (on persons owning more than 20 percent of the business)

Educational and work history Credit references Income tax statements (last three years) Financial statement (no older than 60 days)

III. Firm Information (whichever is applicable)

New business Business plan (see outline of business plan section) Life and casualty insurance coverage Lease agreement Business acquisition (buyout) I. Information on acquisition Business history (include seller's name, reasons for sa le) Current balance sheet (not over 60 days old) Current profit and loss statements (less than 60 days o ld) Business' federal income tax statements (past three to five years) Cash flow statements for last year Copy of sales agreement with breakdown of inventory, fixtures, equipment, licenses, goodwill and other Costs Description and dates of permits already acquired Business plan Life and Casualty insurance Existing business expansion 1. Information on existing business Business history Current balance sheet (not more than 60 days old) Current profit and loss statements (not more than 60 days old) Cash flow statement for last year Federal income tax returns for past three to five years Lease agreement and permit data 2. Business plan 3. Life and Casualty insurance

IV. Projectjns

Profit and loss projections (monthly, for one year) and explanation of projections Cash flow projection (monthly, for one year) and explanation of projections Projected balance sheet (one year after loan) and explanation of projections

The legal organization of the firm is yet another im- double tax when profits are distributed to stockholders. portant consideration. The alternative legal forms of or- A major negative feature of the proprietorship as compared ganization include the sole proprietorship, the partnership, to the corporation is that business failure gives creditors and the corporation. the right to claim the proprietorship's personal assets if The proprietorship organization requires no formal cre- necessary to satisfy their claims. Also, with only one ation and is implicitly an extension of an individual owner, the available capital for the business and the ex- owner's personal business affairs. Federal income taxes are perience bases in different business areas (e.g., account- paid on the proprietor's income as part of the personal ing, marketing, personnel) may be limited. tax return or business losses may be deducted from per- A partnership may add needed capital and expertise sonal income. Also, earnings may be retained in the busi- by bringing in one or more additional owners and, as with ness (and not claimed as income) if they are used to the proprietorship, business losses may still be deducted expand or in some way improve the business. The pro- from personal income and earnings may be retained in prietor has complete freedom of operation (compared to the business. Some disadvantages are that all partners a partnership) along with all the authority and responsi- are liable for the business debts and obligations created bility. Compared with a corporation, there are no re- by other partners and, in some states, the death or with- quired corporate reports, no capital stock tax, and no drawal of a partner may automatically dissolve the busi- 136 ness legally. A partnership, like a proprietorship, allows Many bus companies, however, try to obtain minimum creditors to pursue the personal assets of the partners to coverage of $500,000/$1,000,0001$50,000. An additional satisfy their claims. A limited partnership allows for part- concern is that in some "no-fault" states medical benefits ners to come into the business and risk only the amount for injured passengers may have very high limits or be of their original investment, but it also restricts their con- unlimited. A transportation company would be well ad- trol over the business' activities and is more highly regu- vised to obtain the services of a competent insurance lated. At least one of the partners must be a general agent or consultant to obtain the proper insurance at a (not a limited) partner. reasonable price. In today's environment, given that the The corporation is a legal entity separate from the per- claims paid in accidents are often substantial, it is not sonal business of the owners, and creditors (except in surprising that insurance costs are also high and need to cases of gross negligence) normally can only make claims be carefully estimated in assessing the venture's feasibility. against the assets of the corporation, not the personal In addition to liability insurance for bodily injury and assets of the stockholders. The death of a stockholder does property damage, it is essential to carry medical payments not affect the continuation of the business; the ownership insurance, uninsured motorist coverage, and comprehen- simply is transferred through the sale of stock. Disad- sive and collision insurance on the vehicles. vantages of incorporation include: (1) a high tax rate Other types of insurance required typically include on income over $50,000 (currently a rate of 48 percent) workmen's compensation insurance covering employee in- and potential double taxation by also paying personal juries, fire and general property insurance covering build- taxes on dividends, (2) more tax reporting requirements ings, if any, and coverage for theft. The owner also may and regulations that sometimes apply only to corporations, wish to consider a policy to cover the loss of earnings and (3) the cost of becoming incorporated and, in many and expenses in the event the business has to cease opera- states, an annual payment that must be made to the state. tion temporarily because of fire or other catastrophe. Other Also, major stockholders often are required to pledge per- policies worthy of consideration include "key person" in- sonal assets as security on loans, which effectively reduces surance, employee health and life insurance (fringe bene- the potential advantage of limited liability. The possible fits), and fidelity bonds on employees to protect against disadvantage of higher taxes, however, may be circum- embezzlement. Identifying a qualified insurance agent vented by forming a Subchapter S Corporation which may require more than a random selection from the tele- allows the stockholders to file their income on their per- phone book. One nationally recognized sign of quality is sonal returns with the corporation filing only an informal the Certified Life Underwriter designation for life insur- return. ance and the Certified Property and Casualty Underwriter It may seem that the decision on a legal form for the for property and casualty coverage. business is important and complicated. It is recommended that an attorney's advice be sought so as to make the best Other Start-Up Matters decision in light of the prospective owner's individual In addition to obtaining special permits and licenses re- situation. quired for transportation firms by state and local govern- Insurance ments, other permits and licenses usually are required. A county and/or city business license, for example, is a It is important to recognize the risks inherent in run- common requirement and often involves payment of a ning a transportation business and then to design ways to significant fee. In addition, numerous laws and regula- reduce them if it can be done for a reasonable cost. This tions must be complied with—such as regulations from the concept of risk management, for example, might help jus- Occupational Safety and Health Administration; laws re- tify a program for training drivers and developing incen- garding the withholding of employee federal, state, and tives for the drivers being safety conscious. social security taxes; and laws covering the payment of One means of reducing risk is through insurance, and federal and state unemployment and disability taxes. Ex- this is an essential element of any transportation business. cise taxes must be paid by certain types of transportation The various states, often through their public utility com- firms for the use of public roads. The firm also may have missions, require that certain minimal insurance levels be to collect and remit sales tax to the state and local govern- carried by transportation firms that transport citizens. The ment. An attorney should be used to obtain relevant in- minimal levels usually vary by the number of passengers formation on federal, state, and local permits, licenses, carried in a vehicle. In California, for example, the re- and taxes. quired levels are as follows:

Bodily COORDINATION WITH REGULATORY AGENCIES Injury! There are many urban transportation agencies with Number of Per Per Property which private entrepreneurs could come in contact if they Passengers Person! Accident! Damage are attempting to provide public transportation service. However, the time and energy expended in order to Up to 12 $100,000 / $300,000 / $50,000 become fully aware of these agencies and their activities 13 to 20 100,000 400,000 50,000 would be an inordinate amount to expect of the small 30 100,000 500,000 50,000 businessman. Thus, the private transportation provider 60 or more 100,000 700,000 50,000 137

should be aware of several key regulatory agencies and, activity within municipal boundaries, but beyond those when necessary, should turn to the municipal mayor's municipal boundaries the state's sovereignty is administered office; commonly a single individual of the mayor's ad- through public service commissions. It would be in the ministrative staff is charged with transportation respon- best interests of any individuals contemplating private sibility. The four key regulatory considerations the pri; transportation services that go beyond municipal bound- vate businessman should be concerned with are: (1) aries to obtain a copy of their state's public service com- municipal ordinances, (2) state public service commis- mission rules, regulations, and statutes governing motor sions, (3) public transit or transportation authorities, and carriers. Such documents outline the procedures neces- (4) the Interstate Commerce Commission. sary for the private carrier to obtain a certificate of convenience and necessity for the authority to provide service. Municipal Ordinances In addition, such documents will list tariffs, regulations per- Often municipal ordinances will seek to regulate the taining to the publication of time tables, insurance regula- types and levels of services provided by private trans- tions, equipment and safety requirements, operating pro- portation providers within municipal boundaries. Many cedures, accounting procedures, reporting requirements, of these ordinances have been in existence for a long and other general provisions required of all firms supply- time, and they do not provide sufficient flexibility for ing either passenger or freight transportation within that state. other than traditional taxicab and fixed-route, fixed-schedule transit services. A new firm wishing to begin transportation services first should consult municipal ordinances Public Transit or Transportation Authorities dealing with the movement of passengers and freight. Public transit authorities were set up to administer or Heretofore, such ordinances in many cities sought to regulate the activities of- the private transit operator in limit the number of private transportation providers to order to ensure the safety of the public. However, as protect present providers from undue competition which public ownership increased, transit authority members would dilute an existing market and would cause the came to perceive their mission as that of protecting the economic decline of those existing providers. The ap- authority and the transit system itself from competition. proach taken was to protect taxicab markets for existing Thus, the private operator may be confronted with a taxicab suppliers either through limiting the number of municipal or regional transit authority which assumes a medallions or certificates for service or for protecting the monopoly situation over all fixed-schedule transportation existing public transit system through a local monopoly. to be provided within its service area and, in some cases, This local monopoly permitted the existing system, and the mandate to provide all public transportation services if only that system, to provide fixed-route, fixed-schedule federal funds are utilized. service of any nature within the urban boundaries. It is important that the private operator attempt to Such local ordinances now are being challenged as being determine what the attitude of the local public transit in neither the best interest of the consuming public nor authority is with respect to private operators and their of the transportation firms that are supplying these services. likely contribution to the provision of public transporta- Exemplary regulation ordinances are being written that tion services. Within the past few years there has been encourage the use of shared-ride taxi operations, that free the development of enlightened public transportation au- entry and exit into many of the heretofore protected mar- thorities which see the need for both private and public kets, and that lessen the control of the public monopoly transit operations. Such transportation authorities, utiliz- by the public transit system for fixed-route, fixed-schedule ing a marketing management perspective, attempt to in- transit service. Thus, the local ordinances within an area corporate the goals of the Urban Mass Transportation Act may vary widely with respect to the flexibility of type of of 1966 by seeking out prospective markets for public services in which the private entrepreneur reasonably can transportation services. They then provide the opportu- expect to participate. However, if individuals find that nity for both public and private transit operators exist- such ordinances prohibit the type of services they are ing within their service area to provide the service on a contemplating, the aid of the local metropolitan planning competitive bid basis. Although such transportation au- organization, city traffic engineer, or the local police de- thorities are relatively new, interest in them is growing, partment should be sought. (Many communities have their and more such actions can be expected in the near future. licensing and inspection of taxicab services performed by Thus, the private operator should attempt to ascertain the the police department.) If a community has a mayoral attitudes and motives of the local transportation authority assistant in charge of transit and/or transportation activi- and, if possible, should attempt to be included whenever ties, this individual may be helpful in securing an exemp- transportation opportunities are discussed. tion from and/or changes in local municipal ordinances. Interstate Commerce Commission State Public Service Commissions Finally, the Interstate Commerce Commission (ICC) State public service or utility commissions in most has been vested with the responsibility of regulating all states have the vested authority to control the movement surface transportation of passengers that cross state bound- of goods and people over public highways. Usually, such aries. If any private transportation venture crosses a state states give local municipalities the right to regulate such line, it is wise to check with the state's public service corn- 138 mission to determine who has jurisdiction over the pro- preneur Press, Santa Clara, Calif. (1974) Chap. 10-13. posed service. If it is considered to be interstate traffic, an DOMINGUEZ, J. R., Venture Capital. Lexington Books, ICC certificate of convenience is necessary before the op- D.C. Heath and Company (1974). eration can commence. Since the ICC has many rules and "Business Plan for Small Service Firms." Small Marketers regulations concerning the publication of timetables, in- Aid, No. 153, Small Business Administration, Washing- surance, equipment, and safety, it is best to secure profes- ton, D.C. (1970). sional legal aid in making the application. Financing Small Business: Small Business Reporter, Vol. 13, No. 7, Bank of America (1976). ADDITIONAL READINGS "Planning Your Working Capital Requirements." Small Business Administration Publication 1.10/2.3, No. 74, Self-Assessment Small Business Administration, Washington, D.C. TIMM0Ns, J. A., SMOLLEN, L. E., and DINGEE, A. L., J., New Venture Creation. First edition, Richard D. Irwin, Planning and Organizing Inc., Homewood, Ill. (1977) Chap. 1-6. BAUMBECK, C. M., LAWYER, K., and KELLEY, P. C., How PICKLE, H. B., "Personality and Success: An Evaluation of Personal Characteristics of Successful Small Business Man- to' Organize a Small Business. Fifth edition, Prentice-Hall, agers." Small Business Research Series No. 4, U.S. Govern- Inc. (1973) Chap. 10, 15. Federal Tax Course, 1978. Prentice-Hall, Inc. (1977, or ment Printing Office (1964). Steps to Starting a Business: Small Business Reporter, Vol. more recent edition). Small Marketers 10, No. 10, Bank of America (1976). "Insurance Checklist for Small Business." Aid, No. 148, Small Business Administration, Washington, D.C. (1975). Market Opportunity "Insurance and Risk Management for Small Business." BAUMBECK, C. M., LAWYER, K., and KELLEY, P. C., How Small Business Management Series, No. 30, 2nd ed., to Organize and Operate a Small Business. Fifth edition, Small Business Administration, Washington, D.C. (1970). Prentice-Hall, Inc. (1973) Chap. 5-6. Mass Transit Management: A Handbook for Small Cities. BUNN, V. A., Buying and Selling a Small Business. Small Institute for Urban Transportation, Graduate School of Business Administration, Washington, D.C. (1969). Business, Indiana University (1976). TIMMONS, J. A., SM0LLEN, L., and DINGEE, A. L., Jr., STEINHOFF, D., Small Business Management Fundamentals. New Venture Creation. First edition, Richard D. Irwin, Second edition, McGraw-Hill (1978) Chap. 11. Inc., Homewood, III. (1977) Chap. 8-9. "Operating Manual: Intercity Coach Models, P8M-4108A, CRAVENS, D. W., HILLS, G. E., and WOODRUFF, R. B., P8M-490SA." Service Publications: GMC Truck and Coach Marketing Decision Making: Concepts and Strategy. Division, General Motors Corporation, Pontiac, Mich. Richard D. Irwin, Inc., Homewood, III. (1976) Chap. 7. (1974). EDISON, J. L., "Preventive Maintenance: The Key to Safety Financing a Venture and Economy." School Bus Transportation (Apr. 1962). BAUMBECK, C. M., LAWYER, K., and KELLEY, P. C., How Principles of Vehicle Selection, Truck Group, White Motor to Organize and Operate a Small Business. Fifth edition, Corporation (1974). Prentice-Hall, Inc. (1973) Chap. 11. Care and Service of Bias Ply Truck Tires. Rubber Manu- DIBLE, D. M., Up Your Own Organization. The Entre- facturers Association, New York, N.Y. (1973).

APPENDIX I

MARKETING AND BUSINESS STRATEGY IN A PRIVATE TRANSPORTATION SERVICE

Once a business venture is under way, management tasks for management. Decisions made tend to be less risk laden are somewhat different from those required in the business and less bold than in start-up, but they are equally critical start-up phase. The tasks are different in degree as opposed over time. Indeed, the decisions may be maintenance and to basic nature. The business start-up may last for several adjustment oriented, but nevertheless they are critical to the months, if not several years. Although the transition from "fine tuning" of a well-run enterprise. To some degree, this initial management phase is gradual, it is often difficult these tasks must be planned for at the outset. 139

Over-all, business and marketing strategy must be built on an understanding of the travel need and behavior of the consumer group(s) being served as well as on a keen awareness of existing and potential competition. Understanding the target markets from which riders are sought is the foundation upon which strategic decisions are made. As discussed earlier, decisions as to the services to offer, the communications to use, the routes to take, and the prices to charge (or bids to submit) should be made so they are integrated and consistent. The marketing and business objectives should provide guidance in making these decisions, assuming they are phrased partially in terms of serving certain groups. As shown in Figure I-i, the marketing management process is predicated on a well-defined set of objectives, and it requires a sensitivity to the largely uncontrollable forces in the transportation environment. The next stage of analysis is that of assessing market opportunity. Al- though assessing market opportunity requires making some basic assumptions concerning strategy, the detailed development of strategy awaits the business/marketing strategy stage. Decisions regarding services to offer, com- Figure 1-1. Developing business/marketing strategy. munications to use, routing decisions, and the pricing of the services together make up the demand and revenue- creating decision areas of the business. Alternative Services* Before considering each of these areas, it should be re- New Service Competition iterated that the market opportunity analysis stage already Offered Private Auto Transit Other should have identified the target rider groups (segments) Routing: being sought and the basic types of services to be offered. For example, target groups could be daily commuters, the Convenience elderly, the ill, those who dislike owning and/or driving Place their own automobile, travelers to specific events, and per- Time

sons needing emergency medical attention. The modes Reliability and types of transportation service could include express Flexibility buses, employer or work buses, subscription bus services, carpools, vanpools, taxi shuttles, casual for-hire services, Drivers: ambulances, and special vehicles for the handicapped or Courteous and Helpful the elderly. The consumer groups, as well as the types of Cost to Consumer:

transportation services, may vary widely, and the ones just Price ($) cited are for illustration only. Lost Time

Social Connotation and Image

TRANSPORTATION SERVICE AND ROUTING Comfort: There continues to be a need for innovation and creativ- Seating ity in the offering of transportation services. Although Air Conditioning local regulations often impede the offering of new services, Social Comfort" and Privacy these barriers increasingly are being overcome as trans- Decor portation planners seek new and better ways of responding to community transportation needs. Safety

The viewpoint of the prospective rider is important. Why *Each aiternative may be rated as perceived by the target market as should a person consider one transportation service su- excellent (4), good (3), fair (2) or poor (1). perior to that of other competitive services (most often the Figure 1-2. Evaluative criteria used by riders in selecting a privately owned automobile)? What criteria do these con- transportation service. sumers use, implicit and explicit, in deciding which types of transportation to use for different purposes? Some factors that are used are shown in Figure 1-2. These repre- The routing task varies greatly depending on the trans- sent the factors that prospective riders often consider, and portation service offered. (Express buses, charter buses, therefore they are critical to the proposed transportation vans, taxicabs, and demand-responsive services are the issue service. They are grouped into three areas: routing, cost here rather than traditional fixed-route transit.) The to the consumer, and comfort. highest level of service might be to pick up quickly all con- 140 sumers at their doors whenever they call. The other end timing must be selected. The message must be developed, of the continuum might be to require a prospective rider and its effectiveness should be evaluated. to walk a long distance to catch the one bus available for that week. The trade-off is essentially cost vs. potential Advertising Budget and Objectives customer satisfaction (and demand). Custom designing a The amount to spend on advertising may be determined service for each person is prohibitive, although this would simply by applying a selected percentage to projected sales. generate the greatest ridership, but not necessarily revenues. (A range of from 2 to 5 percent of sales is common.) The In all the decisions that are made regarding the trans- simplicity of this approach is perhaps its only strength. For portation service, it is important to develop a differential an established business in a stable industry, such a peI- advantage over competition. In other words, for a business centage will provide a "ball park" figure. For a new trans- to survive, it may need to have a unique advantage over portation service, the figures are unlikely to be available, competition. Although the difference may be minor, it must much less useful. Advertising expenditures, in any event, be sufficient to attract customers to that service instead of should be geared toward the objectives to be accomplished. to competition. For example, riders in carpools and van- A general plan should be developed a year in advance, and pools often say they enjoy the company and conversation specific decisions on implementation should be made at with other riders, something missing from the solo ride in least three to six months in advance. an automobile. A differential advantage may be sought Within the general objectives of developing market among the evaluative criteria as well as within pricing and awareness, image and increased ridership, specific measures communications decisions. The objective is to have trans- should be stated where possible, and priorities should be portation services compare favorably to other alternative assigned. Although a given advertisement occasionally types in the minds of potential customers. The greater can address all objectives simultaneously, budget limita- propensity to use the service must be balanced against the tions usually necessitate that priorities be determined. A cost of the added attribute. Air conditioning, plush seats, new business will be concerned initially with developing stereo music, and coffee could be offered to all customers; awareness of its services and conveying a positive and con- but they must be willing to pay the required price. If the sistent image, but it also must strive for customers. After services are offered under contract with the city, the city the business is established, it can advertise specific services may specify precisely the services offered as the basis for and related information. bid preparation. In setting the budget one also should consider that the firm's advertising must "move" potential customers through COMMUNICATIONS AND PROMOTION the process of:

The second element of marketing strategy involves com- Attention -* Interest -+ Desire -, Paying Rider municating and promoting the availability and attributes of the firm's transportation services. Some mistakenly as- Advertisement must compete daily for the attention of the sume that promotion strategy is the same as marketing potential customer. If attention is achieved, advertising strategy; but it is only a part of it, although an important should develop interest in the transportation service and and essential part. Most small firms, especially new busi- should contribute to developing a desired preference for nesses, find it financially difficult to engage in promotional that form of transportation. One advertisement will seldom activities. Promotional activities are an investment in future "pull" the potential customer through the entire process; sales, in building a market awareness of the transportation several usually are essential. Once the potential customer firm and its products, and, in the long-term, in improving is interested, the advertising objectives should be more the image that the business will have. The old statement, action-oriented; for example, advertising should encourage "Build a better mousetrap, and the world will beat a path the person to take a free "trial" ride. to your door," assumes that the world knows that you have Although few small firms use the services of advertising a better mousetrap, and further it assumes that the world agencies, some agencies welcome small clients (usually knows where your door is located. on a fee rather than a percentage basis). Despite its sig- For the new transportation firm, building market aware- nificant cost, use of such services may be justified and ness is essential, as is the development of an image and should be considered. Valuable assistance also may be ob- the more specific promotion of ridership. A communica- tained from media production people, although they are tions and promotion plan should encompass consideration biased toward use of their own medium. Salespersons for of advertising, personal selling, publicity, and community various, media are notorious for selling media time and relations. The relative advantages of these elements should space that are of little actual value to the business. be evaluated in the context of the firm's promotional ob- Whether accomplished individually or through another jectives; then, a promotional mix should be developed that firm, the advertising task and its cost must be determined. most effectively will attain the objectives within the avail- This includes deciding how to reach potential riders able budget. (media), what to say (message), when to say it (timing), The core of a promotional plan usually depends on ad- and how to say it (copy and layout). All of these decisions vertising, and it should be a permanent item in the business assume a well-defined target market and a clear perception budget. In addition to setting the advertising budget, specific of the transportation firm's strengths and weaknesses rela- advertising objectives must be developed. The media and tive to competition. 141

Media and Timing sistance, and advertising agencies may be considered. Typi- The allocation of advertising dollars to certain media cally, the option is to work with production people in the media, but other inputs should be explored. and to certain periods of time is an essential element of the over-all plan. If done well, continuous and effective re- Evaluating Effectiveness suits can be achieved. The timing may be affected by a specific event or theme being promoted, but it is important The full benefit of advertising may not be realized for to consider systematically the time of year, month, week, months after the advertising occurs. Further, much ad- and/or day to assess the relative effectiveness of alternative vertising is oriented toward building an image and toward combinations. To have a significant impact, a continuous, awareness—and short-run sales cannot be used as a coordinated stream of advertising is required. Creative measure of its effectiveness. Despite these problems in- strategies may be necessary to reap maximum benefit from herent in evaluation, it is important to try to assess the a small budget. If potential demand is great at certain effectiveness of the firm's advertising efforts. Casually times, advertising should precede these periods. The asking riders about specific advertisements may be possible. amount of repetition is another decision to face, given that Also, building feedback mechanisms into advertisements, too much results in wasted exposure, whereas too little may such as coupons, provides valuable feedback. Such im- have little impact. Unfortunately, few guidelines exist to perfect but easy measures often will provide sufficient feed- fit all situations. back to aid the manager in refining advertising efforts. The general advertising task is to target the message using media that will reach the market of interest. The Personal Selling effectiveness of the specific medium must be considered as Every person who comes into contact with the market- it relates 10 the message conveyed as well as to the relative place is a potential salesperson for the firm. Although cost. A common denominator may be developed by esti- most transportation firms could not justify having a sales mating the medium's cost per thousand exposures to pro- force as such, training of drivers and others who have the spective riders. But effectiveness must still be considered. opportunity to "sell" the firm's services is often a wise For example, direct mail often is very effective, but expen- course. Building incentives to foster such activity is also sive; whereas cost per thousand exposures by newspapers desirable. Because repeat patronage is critical to the profit- may be low, but its effectiveness also may be low. ability of most services, continual reinforcement by drivers For the small transportation firm, television probably of the decision to ride can be a related and important offers less per dollar than other media. Signs on the firm's activity. vehicle are a golden opportunity to build awareness, and communications posted and/or available in the vehicle Publicity and Community Relations itself may be worthwhile. Use of flyers in certain areas or Transportation firms, partly because they often are regu- along certain routes offers potential as do billboards (if of lated by the communities in which they operate, seem to sufficiently low cost). Use of radio at commuting times capitalize more easily on publicity opportunities than do may match with a target group, and neighborhood as well other firms. Creativity in generating "newsworthy" occur- as city newspapers should be considered. Posters and signs rences can lead to considerable free exposure. If pursued in store windows may be possible. Finally, listing in the systematically, such publicity can help significantly in telephone book yellow pages is the first move to make. building awareness and in complementing advertising The manager of the transportation business should evalu- plans. Public interest in energy conservation, in pollution, ate carefully the cost and likely effectiveness of each of and in rising travel costs also contributes to publicity op- the media. portunities. Such opportunities also can be pursued in a community Message, Copy, and Layout relations context. Sponsoring groups and events that are Developing an advertising theme and developing specific tied partially to target markets can result in improved messages are particularly dependent on an understanding ridership. Speaking to community groups also may have of the target market. Determining what will get attention positive long-term benefits and will contribute to publicity. and determining what will get interest are essentials of good Some degree of social responsibility enhances the image message planning. Answering the question of why some- of the firm. The degree to which involvement is desirable one should have an interest in becoming a rider will pro- is often as much a matter of conscience as of economic vide some alternative appeals or themes that can be used. necessity. Each entrepreneur must balance economic with Quality, convenience, safety, and social contribution are social benefits in the operation of the firm. obvious possibilities. Position the message to play the firm's strengths and competitors' weakenesses. Evaluating the Marketing Program The technical layout of a printed, visual, or verbalized The over-all marketing effort illustrated in Figure I-i advertisement is usually beyond the capabilities of the needs constant monitoring and evaluation. Although often transportation firm, but it is important to plan this im- a nebulous task, particularly in the short run, attention to portant area as much as possible before talking to media the effects of various marketing policies and tactics is essen- professionals. University students in advertising or in com- tial for further refining the marketing program and for mercial art sometimes can serve as a good source of as- remaining responsive to transportation needs. 142

PRICING PROCESS mating demand at various alternative price levels. Esti- mating the effects on demand by changing fares also must Determining the price of fares that consumers will pay take into consideration possible competitive reaction to is also an essential element of the marketing mix, the ele- price changes. A price or fare war usually results in both ments that make up marketing strategy (Fig. I-i). Prices sides losing. should be set to complement the other strategy decisions, with special attention to the costs that must be covered, Setting and Collecting Fares the amount and nature of consumer demand for the trans- Prices are determined best by first understanding all of portation service, and the competition. As discussed earlier, the factors of cost, demand, and competition and by judi- regulation and legislation are important considerations in ciously integrating these considerations into the price- developing pricing policies and practices. It is assumed setting process. The fares established must be consistent here that the service involved is an independent, privately with and, hopefully, even reinforcing for other marketing owned business that does not utilize the brokerage concept mix decisions. The type and level of service offered should or a contract with government but instead offers services to be matched with an appropriate fare and promotion/ potential customer groups and hopes that revenues will communications program. Price is no more or no less im- exceed costs. portant to success than the other elements of marketing mix. The total package of elements, not just one, presented Cost-Oriented Pricing to the public will determine the success or failure of the Costs obviously determine the minimum price that can venture. be charged. Although special fares not covering costs may Certain pricing policies and tactics should be developed be used to entice rider patronage, they are only temporary regarding fare levels and fare collection. Fares may vary pricing tactics. At a given level of service, break-even for different types and levels of service and for other rea- analysis is useful for establishing the fare required to cover sons. For example, fares may be set lower at off-peak times fixed and variable costs. A target profit of a certain per- to encourage ridership when capacity is available, or spe- centage may be added to total costs to determine the fare cial promotional fares may be established for short periods required not only to cover costs, but to make the target to introduce a new service. Fares may be set at a low level profit. However, using cost-based pricing methods ignores even during the first several months of a new service to the influence of consumer demand. encourage ridership, and then fares may be increased gradually to a more optimal long-term level. This is done Demand-Oriented Pricing to facilitate initial penetration of the potential market. It assumes that many riders, once their travel behavior has Cost-based pricing may set fares at a level that potential changed, will remain loyal even with higher fares. customers will not pay. Demand-oriented pricing is focused Policies and procedures for fare collection serve as re- on determining "what the market will bear," and this issue minders to the consumer/rider of the cost of the service. must be faced before the business is stated. Since most Fare collection must be simple for the passenger as well as automobile owners underestimate (or overlook) the total for the driver. It should not delay the vehicle, and it should cost of automobile ownership and use, advantages of other be as painless for the rider as possible. Alternatives worthy forms of transportation are not seen. Many potential cus- of consideration include the cash fare box, use of pre- tomers are turned away because of their own unrealistic purchased tokens, the use of various types of passes, and the price expectations. use of a credit card arrangement for purchasing tokens. Price elasticity of demand should be considered in setting Each viable approach should be evaluated carefully with fares—that is, consideration of the effects on demand and attention to possible effects on passenger satisfaction, rider- revenues of a higher or lower price. For example, if fares ship, the time required, the relative simplicity of the can be raised substantially with little negative impacton method, and the timing of cash flows into the business. the number of riders, this indicates that revenues will rise The price- or fare-setting task, as previously discussed, substantially. However, if ridership were to drop so much assumes a privately owned business directly serving certain that revenues decreased despite the fare increase, this markets. If the business instead must submit a bid or would be an inappropriate fare change to make. Therefore, negotiate a price with a governmental unit, price setting consideration of demand requires an assessment of the may become even more critical. If the governmental body probable net impact of fare changes on the level of rider- is responsive to the needs of potential riders, the same basic ship. in the absence of countervailing reasons or evidence, factors should be used in the bidding or negotiation process. fares should be set where total revenues exceed costs by However, cost typically is emphasized with the addition the greatest amount. of a reasonable return on investment. Accurately estimating and projecting costs for the period of the contract be- Competition-Oriented Fares comes essential, a task sometimes requiring outside exper- The family automobile is the strongest competition to tise for the small firm. The total process may possess both many prospective transportation services. Competition, by economic and political dimensions, with the political fac- definition, offers potential customers alternative means of tors often determining the complexity of the task. In any travel, and therefore it may affect the price elasticity for a event, the task deserves detailed study beyond the scope specific service. Competition must be considered in esti- of this publication. 143

ADDITIONAL READINGS Marketing Decision Making: Concepts and Strategy. First BAUMBECK, C. M., LAWYER, K., and KELLEY, P. C., How edition, Richard D. Irwin, Inc., Homewood, Ill. (1976) to Organize and Operate a Small Business. Fifth edition, Chap. 10-13. Prentice-Hall, Inc. (1973) Chap. 18-19. Advertising Small Business: Small Business Reporter, Vol. CRAVENS, D. W., HILLS, G. E., and WOODRUFF, R. B., 13, No.8, Bank of America (1976).

APPENDIX J

FINANCIAL MANAGEMENT OF A PRIVATE TRANSPORTATION SERVICE

Financial management is critical to the successful func- recording tasks to employees as a part of their duties. An tioning of any firm. For a small transportation firm, this alternative is to use a reputable bookkeeping service. In includes attention to record keeping, management of the either case, it is essential that management knows the book- firm's cash, and the interpretation of financial statements. keeping procedures, possesses an understanding of the information compiled, and has information available on a RECORD KEEPING SYSTEM timely basis for decision-making. The records should be adequate for supplying creditors with information in the Organizing and compiling information of value to man- event of refinancing, expansion financing, or seeking short- agement decision-making is the primary reason for estab- term loans. lishing and maintaining a record keeping system. If management does not have a detailed understanding of the CASH FLOW AND STATEMENT ANALYSIS firm's revenues and expenses, there is little hope for maintaining and improving profitability. Few firms succeed A good record keeping system provides useful informa- today "in spite of themselves," so the compilation of in- tion that contributes to management decision-making. An formation for good decision-making is essential. accounting system is needed to produce a periodic income Another reason for a good set of records is that they are statement and balance sheet. These are essential docu- required by law. A business must report profit and pay ments and must be understood if the business is to be taxes, and the reported income must be substantiated by operated effectively. detailed records. The federal income tax is only one that A "flow" of cash from working capital to labor, supplies, the small business owner must pay. Substantiating records and equipment and, then, back to cash from customers is should exist for them all, whether paid by the business per essential to the functioning of a business. If the cash flow se or by the owner/manager personally. There are state were to "dry up," a cash crisis would exist that could cause taxes and usually city and/or county taxes or fees. Local a firm to cease operations and go into bankruptcy. There and state offices should be contacted for information prior must be adequate capitalization from initial business financ- to the business start-up. There are employment taxes such ing to ensure that the business can continue to operate as FICA (social security) and unemployment taxes. Indi- until customer payments start to replenish the cash supply. vidual records must be maintained for reporting employees' This requires careful planning beyond the use of a pro- income to them and to the federal, and sometimes state, jected income statement. An income statement includes government. Entrepreneurs, unaware of the array of re- noncash items (e.g., depreciation on vehicles), which quired taxes and the necessity of records for substantiation makes it insufficient as such for cash planning. Instead, of the tax bases, sometimes pay high penalty fees in addi- the actual cash receipts and cash disbursements should be tion to back taxes. estimated for the first 12 months of operation, and these Finally, regulatory agencies require information from figures can be matched later with monthly actual receipts certain types of transportation firms (which could require and disbursements in the form of a cash budget. After a substantiation), and the Interstate Commerce Commission few months of operation, a more complete understanding may even require the use of certain accounts by some types of cash-flow patterns should result, and this should allow of firms. It is advisable to obtain information on taxes and for more precise cash budgeting. The cash crisis is a com- other legal requirements from the management of similar mon cause of business failure, and the importance of cash firms (possibly in another city) and from an attorney ex- planning cannot be overstated. perienced in assisting transportation firms. Beyond cash shortages, it is also poor management to For a small firm, a full-time bookkeeper is usually a have excess cash available. Alternatives to excess éash luxury, and management instead often delegates the routine over the long-term include putting it to "work" in the busi- 144

ness (e.g., through expansion or renovation); investing it Sales or Revenue Records in short-term securities so it is, at least, earning some re- If drivers are involved in fare collection, the cash box turn; or distributing the cash as profits to the owners. Idle must be turned in at the end of each employee shift and cash not earning a return effectively lowers the rate of re- must be counted and recorded. Whatever the source of turn on owners' equity. Good cash management, therefore, income, it is usual to prepare a daily cash receipts report requires a well-planned balance between excess cash and and make daily cash deposits. The cash deposit receipt chronic cash shortages, sometimes with short-term borrow- should be attached to the report and filed. The cash report ing to smooth the "peaks and valleys" of cash receipts and form should be designed to include not only a listing of disbursements. A natural outgrowth of such planning is cash receipts, but also the name of the driver, the route judicious timing of loan payments, as well as payment of (if any), the type of job, and the vehicle involved. This operating expenses to coincide with anticipated cash re- information allows for a compilation of weekly and ceipts. It also may lead to building a cash reserve in the monthly reports which, when matched to related expenses, short run to facilitate purchasing new equipment at a later can help in evaluating the profitability of routes, types of date. jobs, vehicles, and/or drivers. If the business involves The use of financial statements, including a cash budget, billing major customers, sales invoices are prepared and is critical for successful business management. Statements sent to the customers, and a copy of each should be placed are an important source of information, not just a neces- in an accounts receivable file. When payment is received, sary exercise to secure a bank loan or to satisfy the tax the invoice copy is pulled from a receivable file, and the authorities. Statements simply represent a summary of income is recorded and deposited. Accounts receivable how well the business has performed. By studying general may be "aged" by arranging them so the oldest (and trends and the relationships between certain figures, poten- possibly overdue) invoices are at the back of the file, thus tial problems can be identified early, and the health of the facilitating sending out reminder notices. business can be evaluated. Accounting terminology, although shorthand for the accountant, is often confusing and unnecessarily complex for the small business owner. But Cash Disbursements once the terms are converted to everyday language, the The core of any cash disbursements system is a separate business owner will recognize the value of studying and checking account for the business, never to be mixed with monitoring certain figures and financial ratios (e.g., a "cur- the owner's personal account. Cancelled checks provide rent ratio" is current assets divided by current liabilities). a receipt and a record for all disbursements. It may be Average ratios for various types of businesses are published advisable to use cash disbursement voucher forms that by Dun and Bradstreet, Robert Morris Associates, and provide additional explanation for the disbursement made, National Cash Register. The industry average will not especially for disbursements made without invoices. Re- necessarily indicate the appropriate ratios for a new, very taining a copy of all invoices that are paid may serve the small business but does, nevertheless, provide a useful same purpose if the check number and date of payment benchmark to aid in evaluating the condition of a business. are recorded. Invoices should be filed when received according to their due date. Available discounts for prompt DECIDING WHAT RECORDS TO COMPILE payment should be taken advantage of. For. simplicity, payments may be made for several days at one time if the A set of records may be extremely detailed and elabo- use of cash is not a significant problem. It is good to take rate or, at the other extreme, exceptionally simple. There advantage of any interest-free credit offered by suppliers may be little actual recording of transactions in journals or to help minimize the working capital required in the ledgers; instead, systematic filing of pertinent records may business. be used. The system may be a "cash" system based on the A petty cash fund of $15 to $50 should be established timing of actual cash inflows and disbursements, or it for expenditures of less than, say, $3. A petty cash form may be a more elaborate "accrual" system constructed with the receipt attached should be filled out in each in- to reflect when revenues actually are earned. In most trans- stance so it can be charged to the appropriate expense portation firms, it may make little difference which system account. The fund can be replenished by writing a check. is used—although, if such situations as long-term contractors with infrequent payments exist, an accrual system should be considered. The need for careful control against Purchase Records clerical errors and fraud should be remembered while con- Purchase records are integrated with the cash disburse- structing a system. Use of prenumbered forms that auto- ments procedure, but they represent another type of im- matically provide duplicate copies can assist in designing portant record. For supplied that are ordered, a purchase safeguards. The complexity and nature of the system order form should be completed and filed until the order is constructed will depend in part on the specific type of received and invoiced. Then, the records may be com- transportation firm and its customers and on the type of posed and the invoice paid. If fixed assets are purchased, information considered essential for decision-making. What follows therefore is a brief overview of the basic compo- a record should be made to increase the assets of the firm nents in a simplified system, recognizing that adaptation and, if appropriate, to alert the bookkeeper to make up a to a specific firm may be necessary. voucher for depreciation expense at the appropriate time.

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Equipment and Other Records of which offer variations for different types of businesses. One-book systems and so called "pegboard" accounting" A separate card or page should exist for each piece of systems are available in office supply stores and are re- equipment with notes on the cost of the equipment, the ferred to under such names as the Johnson System, Black- amount of down payment, monthly payments (if any), bourn System, or Ideal System. By use of standard forms the balance due, and the amount of annual depreciation. and provision for automatic duplicate copies, considerable All payments and depreciation are recorded on the card. effort can be eliminated. These systems are based on It is good to use the double-declining balance method of simplified, double-entry accounting systems that do not depreciation. If the equipment's life is 10 years, for ex- require the usual double-entry process. A one-book ac- ample, rather than depreciating it at a rate of 10 percent per year, 20 percent (double) may be charged each year counting system consists of a daily cash receipts report and on the declining balance. It is also advisable for tax pur- a one-book summary that replaces all journals and ledgers poses to claim the investment tax credit on equipment. except accounts receivable, employee records, and fixed Forms for calculating this credit to taxes may be obtained asset records. Trade associations sometimes offer specific from any area Internal Revenue Service office. systems to their membership. Purchases of inventoried supplies require the addition of The pegboard system is a standardized system that uses the items to the inventory records. Each major inventory a pegboard to facilitate easy adjustment for the transfer item (e.g., fuel, oil, parts) should have its own inventory and duplication of records. It tends to reduce errors and card with all changes 'noted and with an established re- duplication of effort. McBee Automatic Business Systems order point to be certain supplies are available when and Shaw-Walker offer payroll record keeping systems needed. built on a "write-it-once" objective. The payroll check, Other records of value to management would likely in- employee earnings statement, payroll summary, and indi- clude those on repairs and maintenance of vehicles and daily, weekly, and monthly operating reports that sum- vidual earnings record can be prepared at one time. marize activity. Operating reports would probably include This brief overview of accounting records is designed daily receipts, miles traveled, hours of actual operation, primarily to alert the reader to the major components of and the number of passengers carried. The type of job or any system and to convey some idea of the nature of the route, driver, and vehicle would be recorded for each re- tasks. Reliance on a reputable accountant is desirable, ceipt so the data can be analyzed at least on a monthly especially when initiating a new business. Once operating, basis. the compilation of information in the system should con- If the firm grows sufficiently so that manual recording tribute to the management of cash in the firm and to the becomes a major task, it may be wise to consider using a development and use of financial statements for decision- data processing service. This alternative could be less making purposes. costly than hiring additional employees. Concerning general office organization and procedures, records relating to income taxes should be retained at ADDITIONAL READINGS least five years. Other files would include an alphabetical Cash F/owl Cash Management: Small Business Reporter, correspondence file and personnel files on all employees. Vol. 13, No. 9, Bank of America (1977). For items that could be filed in more than one location, Understanding Financial Statements. Small Business Re- cross-reference sheets filed in the alternative locations are porter, Vol. 7, No. 11, Bank of America (1974). helpful. STEINHOFF, D., Small Business Management Fundamentals. Second edition, McGraw-Hill (1978) Chap. 6, 7, 17, 23. COMMERCIAL STANDARDIZED SYSTEMS Financing Small Business: Small Business Reporter, Vol. There are several standardized systems available, many 13, No. 7, Bank of America (1976).

APPENDIX K

PERSONNEL MANAGEMENT IN A PRIVATE TRANSPORTATION SERVICE

Over a decade ago, a leading business writer, John Ken- is taken for granted. What concerned executives most neth Galbraith, observed that people had become the most when a new venture was entered was not the financing but scarce resource in modern organizations. He contended the sources and means for obtaining the personnel neces- that capital, once the most difficult resource to obtain, now sary to carry out the venture. Such rationale is especially 146 true in the provision of public transportation where labor the department or the number of employees doing that costs may mean 60 to 80 percent of total operating costs. particular job will change over a period of time, in some The need for a formalized personnel system, however, is cases dramatically. It may be helpful to include in the not intuitively obvious—especially in small operations. reference material the title of the immediate supervisor. Managers often may regard decisions on recruitment, se- The reference material section, properly constructed, will lection, and evaluation of employees as their subjective give the individual transit property an up-to-date file on all right as manager. These decisions, and most other per- jobs within the organization. It also will permit other sonnel activities, typically are conducted on a casual ad hoc transit systems to compare and contrast their job descrip- basis with very little time for any standard or formalized tions with those previously developed. procedure. Many managers who have followed such in- Duties of the job should be enumerated in specific formal procedures naturally will view them as satisfactory language. Any aids or equipment utilized in the per- and tend to look upon proposals that expend their working formance of that job should be specified. It is recom- day on time-consuming forms and accurate record keeping mended that firms share job descriptions with employees with great skepticism, if not automatic rejection. so that each has a complete understanding of what is ex- Good personnel programs do have far-reaching eco- pected. It is beneficial to explain the necessity of the posi- nomic and social benefits that merit substantial investments tion in the job description so that managers fully examine in time and effort by the manager. These benefits would the work activities of employees in their transportation firm. include: If no good reason can be stated for performing a certain task, it should be considered for elimination. Assurance of fair and impartial dealings with em- For transportation firms already in existence, and where ployees, thus enhancing employee cooperation. union objections are not present, it would be advantageous Facilitation of growth in capabilities of the firm's for those writing job descriptions to consider employee human resources. input into their construction. The most common method Compliance with state and federal economic employ- of developing job descriptions is to ask employees what ment opportunity commission guidelines. they do in their job, to condense these lists of activities, and Provision of the highest level of service available to return the lists to the employees for their reactions. After with limited resources. several iterations of this process, a cohesive and exact job Simply put, the main purposes of any good personnel description with accompanying duties of each job is de- program are to recruit widely, to select fairly, to evaluate veloped. properly, and to follow up on individual employees so that The job specification is a statement concerning the they develop a sense of understanding, cooperation, trust, qualifications that an individual must have in order to carry and confidence in the organization they work for and in the out the duties and responsibilities set forth by the job de- people they work with. scription. These can be subdivided into six major areas:

FUNDAMENTALS OF AN EMPLOYEE SELECTION PROGRAM Educational requirements. Experience. The employee recruitment process should be viewed Specific knowledge requirements. as a closed systemstarting with employee planning, fol- Personality requirements. lowed by recruitment and selection of employees with ap- Responsibility. propriate evaluation and follow-up. The employee selec- Manual skill requirements. tion process begins when a need for additional personnel arises. The manager should plan to fill the vacancy with Educational requirements in the job specification refer an individual who has the appropriate skills and the likeli- to the minimal formal education necessary to perform the hood of becoming a long-term employee. In essence, this job adequately. For example, it is quite common to specify is the beginning of the job analysis process that has two that the individual must have a high school diploma, a elements—the job description and the job specification. college degree in certain specific areas, or technical training The job description is a written statement covering the needed to perform a job such as an electrician or mechanic. duties and responsibilities of a job. Within the smaller or- It is important to remember that whatever educational re- ganization it can be a simple, straightforward statement. quirements are specified must be the minimum amount re- However, in a larger organization it may become quite quired to perform the job and necessary to the performance long and involved when a particular job is more highly of the job. Depending on the specific size of the trans- integrated with other positions within the firm. Particu- portation firm, there may be sufficient paper work, addi- larly, each job description contains three major elements: tion, subtraction, and handling of money required in the reference material, a statement of the job, and the duties job such that a high school degree appears to be the mini- of the job. mum educational requirement necessary for the adequate Reference material identifies what the job is, the depart- performance of this job. ment, and the date on which the present job description The quantitative amount of time (years and/or months) was made. Additional information might include the num- that an individual should have spent in related fields in ber of employees in the department and/or the number order to perform the job also should be included in the job of employees performing that particular job. Such in- specification. In the United States, transportation firms formation is necessary because the number of employees in usually do not require significant amounts of prior experi- 147

ence except in managerial jobs and in some specialized maintenance and driving employees, it is wise that the man- mechanical areas. To avoid a charge of undue discrimina- ager clearly establish the relationship between these two in tion, transit drivers and taxicab drivers generally are not the job specifications. required to have prior related driving experience. How- Finally, the job specification may contain manual skill ever, if a transportation firm can demonstrate that such an requirements necessary to perform the job. For secretarial experience requirement does not unduly discriminate, con- jobs, a specific number of words typed per minute, a spe- sideration should be given to the prior driving experience cific number of words of dictation taken per minute, and of the applicants. Driving requirements have proven bene- the ability to use certain office machines may be minimum ficial in certain European countries. In Switzerland, indi- manual skill requirements. Drivers may be required to viduals are not permitted to drive private tour vehicles in have certain manual skills, such as the ability to maneuver, passenger service until they have driven a number of years park, and drive a large vehicle in congested highway condi- in freight transportation and have demonstrated a proven tions. The possession of a valid state chauffeur's license record of accident-free driving; they also must have may satisfy that manual skill requirement. However, it mastered certain mechanical skills because they maintain would be prudent for managers to examine this manual their vehicles. skill requirement by proficiency exams conducted within Specific knowledge requirements refer to items that may their own property. not be adequately covered in the minimum educational re- Physical demands include working conditions, hazards quirements. For example, even though applicants may that are encountered, and physical strength or endurance have a high school degree, they may not be able to per- needed to perform a job. The job specification for a driver form simple mathematic calculations and/or fill in the might include physically assisting wheelchair patients on requisite forms of many transportation firms. As long as and off a lift ramp; physical endurance refers to the num- specific knowledge requirements are not used in a dis- ber of times and duration that such strength is required criminatory fashion, they can be quite detailed. It may not in performance of the job. Most individuals could drive a be unreasonable to require that an individual wishing to vehicle without power steering for a short duration, but provide transportation operator services have a complete driving such a vehicle for an 8-hour period may require a and thorough working knowledge of the street network. greater level of strength and stamina. Such physical exer- Such a specific knowledge requirement helps to eliminate tion should be taken into consideration when devising the much of the initial learning process for new transportation job specification. (However, it would be wise to equip such operators. In London, England, applicants for cabdriver vehicles with power steering in order to avoid a discrimina- licenses must know the entire city of London, all the street tion charge.) networks, and major addresses. It may take the applicant one or two years of study to completely master all this EMPLOYEE RECRUITMENT specific information. Applicants are assigned three ad- Armed with appropriate job specifications and descrip- dresses by the examiner; the potential employees must go tions, the manager is ready to seek new or additional em- to at least two of the three addresses by the most direct route or they fail the exam. Even with these high ployees. Adequate recruitment is necessary both to ensure knowledge requirements, there is no shortage of cabdriver that a sufficient number of qualified individuals is obtained and to ensure adherence to state and federal guidelines for applicants in London. Although such high requirements making employment opportunities available to minority are not being advocated for U.S. transportation firms, and economically disadvantaged individuals. There are managers must judge what specific knowledge is required two possible sources of additional employees—internal and must consider what base level of information on street sources and external sources. Individuals that are most networks and destinations they desire for beginning operators. qualified to fill a particular job vacancy often are the ones who are already employed. These applicants can be reached Personality requirements (cooperativeness, initiative, through internal memos, bulletin boards, or posting new judgment, etc.) in the job description have become ex- job opportunities. Care must be taken not to give too tremely difficult to declare. This does not negate the re- much preference to internal employees, because such an sponsibility of the transit manager to consider the appro- act may be a violation of Affirmative Action programs. priate personality requirements for good employees. For Thus, it is prudent to advertise new jobs, both within and example, if the driver will be driving a demand-responsive without the present organization. vehicle for the transportation disadvantaged, the employer Advertising through local media may be the best way of may require that the individual be pleasant, show mature ensuring that a broad range of applicants is informed of judgment, and display patience in dealing with handi- job opportunities. The Affirmative Action and Equal Em- capped individuals. ployment Guidebook for Employers lists four major steps A job specification also should state any personnel or that can be taken to ensure nondiscrimination in adver- equipment for which the individual is responsible. A street tising: supervisor in a typical transit property may supervise the work of transit drivers along the route, or the transit drivers 1. Place classified ads only under "help wanted" or may have complete responsibility for equipment assigned to "help wanted, male/female" listings. Inform all publica- them during the working day. Because there is the possi- tions that sex segregated listings cannot legally be used bility of conflict with respect to the vehicles between unless sex is a bona fide, occupational qualification for the 148 job. Be sure that the content of the ad does not indicate local area, and other helpful information pertaining to the any race, sex, or age preference or qualification for the job. job market can be obtained. Advertise in media directed towards minorities and Employee referrals create advantages and disadvantages women, newspapers, magazines, "soul" and Spanish lan- for companies. It is good for employee morale to be in- guage radio stations, and other specifically oriented radio cluded in the recruitment process by recommending a and TV programs. Use such media regularly; it takes time qualified individual for a similar position. Care should be to get the message through. taken to avoid nepotism and cronyism in the selection of Where jobs have traditionally been typed as "male" all applicants. In addition, the EEOC Guidelines suggest or "female," emphasize interest in recruiting both sexes. that organizations should "avoid recruitment primarily by All advertising should include the phrase, "Equal 'word of mouth' or 'walk-ins' " because this tends to per- opportunity employer, M/F." (To date "EEOC Em- petuate the present composition of the work force in vari- ployer" still suggests only racial nondiscrimination.) ous job categories. Where minorities and females are not represented well at all levels, reliance on such recruitment The purpose of advertising is to create interest so that po- procedures has been ruled by the courts to be "discrimina- tential employees apply for the position. tory." On the other hand, if your work force is already Educational institutions can be an excellent source of composed of minority employees (black and female)., it applicants. High schools often have career or employment is highly recommended as a process of recruiting addi- offices to aid graduates in securing their first full-time jobs. tional employees. In either situation, employee referrals Colleges can be a source of full-time and especially part- should be treated as well as, but with no preferential treat- time help needed on transit properties, and graduates may ment over, other applicants. desire a career in the public transportation field. Trade Unsolicited applicants refers to individuals that may call schools and technical schools are excellent sources of ap- or walk in and ask for any probable job openings. At first plicants for clerical, secretarial, technical, and mechanical blush it may appear that this is not a good source of future work. The Affirmative Action and Equal Employment employees; however, one must realize that if people take Guidebook for Employers recommends that the manager the time and effort to seek out employment opportunities, "establish and maintain personal contact with counselors they may be highly motivated. Applications should be and principals of schools in the local labor area, particu- taken from these people for future reference. larly schools with large minority enrollment." It further Professional organizations are used primarily for upper suggests to "tell them you are looking for minorities, males level supervisory and managerial positions. A local certified and females, for nontraditional jobs. Specify kinds of jobs, public accountants organization is an excellent source, for education, and training needed. Urge them to encourage example, for managerial level personnel in accounting and students to take courses to qualify for these jobs." finance. Human service agencies also may be a source of new Considerable aid in the acquisition of applicants can be employee applicants. Often, human services have part-time found through employment agencies. Employment agen- and full-time drivers that would be excellent potential cies can be either public or private organizations. Some candidates for full-time operator positions. Depending on may charge a fee that varies with the salary paid to the the size and nature of the system, many of the skills and individual and the degree of urgency to fill the position. qualities they acquired as a driver for a human service It is not uncommon for the fee to be equal to one month's agency would be readily usable in the private transporta- salary of the new employee; thus, it is best for managers to tion firm. Thus, it is advisable to list all such openings with understand the total cost involved in utilizing an employment agency. Most transit properties use private employ- social service agencies. The local Veterans Administration office also may be a ment agencies only for managerial positions. When using source of applicants. Veterans, especially those who have employment agencies, it is recommended by EEOC officials developed readily usable skills while in the armed services, that all job orders placed with such organizations empha- make good employees. Veterans offices keep an updated size a policy of hiring applicants based on merit and that file on those seeking employment. the company is interested in referrals of qualified minorities Many communities have existing public training pro- (male and female) for all jobs. In addition, EEOC's Em- grams or specialized training programs that could be de- ployee Selection Guidelines further suggest that as a matter veloped to meet the specific needs of the transportation of general policy the transit property list all jobs within the company if the number of employees needed is sufficient. organization with the local state employment service. The In order to determine what public training programs are state employment service can refer all levels of individuals available in an area, contact the following agencies in the (clerical, technical, skilled or unskilled) to the individual transit property. community: The largest source of new applicants is available through National Alliance of Businessmen. the public employment agency at the state level. Typically, Regional Manpower Administration, U.S. Department the state employment agencies are set up and administered of Labor. by the state government with the help of rebated federal State Employment Services. tax dollars. Thus, the quality and level of performance of City and State Human Resource Departments. these agencies may vary from state to state. By cooperat- Office of the Mayor. ing with local state agencies, considerable information con- Community Action and Model City Agencies. cerning the local job market, the prevailing wage in the Apprenticeship Information Centers. 149

APPLICATION FORMS Preliminary questions should be confined to the items indicated on the job specification form as being minimum All inquiries and applicants for a job should be asked to qualifications for the performance of that job. If indi- fill out an application blank. Typically, an application viduals possess all the minimum job specifications for the blank requires the applicant's name, address, previous work performance of that job, they should go to the next step history, name of previous employers, and educational back- in the selection process—the employment, interview. ground if such is felt necessary to the performance of the Employment interviews typically are one of three types: job. (1) a patterned interview, (2) a nondirective interview, or The application blank has four major purposes (3) a group interview. There are advantages and disad- I. It serves as a convenient device for circulating in- vantages to each type of employment interview. It is best formation about the applicant to other members of the infor managers to decide which type of interview they feel terview team. most comfortable with and try to perfect this technique. It secures the desired information from the applicant In the patterned interview, the same questions are ad- in a convenient form. ministered to every applicant in a highly structured fashion. It provides a useful device for storing information Although it may appear that this method is too formal, for later reference. the average manager through practice with this instrument It has become a necessary form to keep on file in can become quite fluid in administering the questions and order to demonstrate compliance with the state and federal make them sound less formal to avoid the appearance of a EEOC guidelines. sterile, patterned approach. Questions should be designed to gain specific information from all applicants. Questions In order to comply with EEOC Guidelines, an "applica- should cover work history, employment desires, major re- tion flow" record should be developed. Such an applicant lated experience, and other items the manager feels are flow record would include data on sex, race, date of appli- important in attempting to identify prospective employees. cation, who decided whether or not the individual was to The patterned interview permits the manager to work out a be hired, and the reasons for this decision. Depending on method of comparison when several applicants are later the size of the transit property, such an applicant flow being considered. record could be set up on either a daily or weekly basis, In the nondirective interview, the interviewer asks gen- although it is recommended that a daily applicant flow eral questions that invoke more than a simple yes or no record be used. If no applicants apply on a certain date, answer from the applicant. Such questions as "How did the form should so indicate. The applicant flow record you get along with your last employer?" or "How did you will provide the appropriate records and data collection feel about your fellow employees in your last job?" may for quarterly reports on minority and female applicants, be asked of the applicant. In addition to the specific in- interviews for each job opening, the percentage of total formation gained from the interview, the interviewer at- applicants, and the total hires by job category. When tempts to put the applicant at ease and to find out how minorities and females are not hired, the records will show the individual responds in such an environment. One why the decision was made not to hire such individuals. danger of the nondirective approach is that applicants will After all applicants have been dutifully logged in the Af- not be compared against one another in the final decision. firmative Action application flow record, they should fill Thus, care should be taken to limit the nondirective ap- out the application for employment. proach to the same major areas as those used in a patterned interview. THE SELECTION PROCESS The group interview technique can be viewed in two ways. One is to have a group of employees all interviewed Once sufficient numbers of employee application forms at the same time with two or more managers conducting have been amassed, the selection process can begin. Obvi- the group interview. Such an interview shows how a per- ously, it would be extremely difficult to interview every son reacts to other candidates, but it may inhibit shy indi- applicant that applied for the position. It is not uncommon viduals. The most common form of group interview is that to utilize the application form as the initial screening device of two managers interviewing one applicant. Such a col- to eliminate those applicants that obviously could not per- laborative effort requires more time on the part of manage- form the job. In especially small organizations it may be ment, but it gives two opinions of each individual appli- possible to interview, at least for a short time, each applicant. One interviewer may write, while the other asks cant that applies for the position. Although such a process is time-consuming, even for the small firm, it does help to questions to facilitate the interview process. Conducting an employment interview can be a stressful build goodwill within the community. situation. Unless managers are used to conducting such Depending on the size of the organization, the manager employment interviews, they may find such interpersonal may wish to utilize a two-step screening process whereby processes to be extremely difficult. Advance preparation the first interview would be a short, preliminary interview can be helpful in minimizing these difficulties and ensuring asking a limited number of questions with the major pur- better selection of future employees. Six steps to facilitate pose of being able to sort out those individuals that the interviewer felt were not capable of performing the job. interviews are: Care must be taken to ensure that the initial screening Prepare for the interview. is not used to discriminate unduly against minority groups. Establish and maintain rapport with the applicant. 150

Give information about the firm and its accomplish- likely applicants. Putting the applicant in back of the ments. wheel of a vehicle and observing how the individual Make observations anc inferences without writing maneuvers that vehicle within the yard where property them down immediately. and lives will not be in danger could be considered an ap- Record results later. plicable and worthwhile test that has content validity. Al- Evaluate the interview and do better the next time. though driving skill and ability can be aided through training, it may not be within the financial ability of smaller REFERENCE CHECKING firms to enter into such expensive training functions. Thus, it would be well within the transit manager's EEOC Guide- It is highly probable that several of the applicants, more lines to administer such an exam to prospective employees. than you would normally intend to hire, are called from the initial interviews for further. consideration. The next EMPLOYMENT DECISIONS AND OFFERS step in the selection process could be reference checking. Reference checking ensures that the individual's application Informing applicants that they have been rejected is a form is a true indication of task performance and secures difficult but important task, because the majority of indi- additional information concerning quality of previous work. viduals interviewed for a job will be rejected. However, Reference checks can be made by mail or by telephone. it is your best opinion that either these individuals would Because of fear of public disclosure, the telephone refer- not be good drivers (or whatever specific jobs for which ence check is becoming much more common and is recom- they were being interviewed) or that others would be more mended as a more accurate method of obtaining employee qualified to perform the task. Managers can benefit indi- information. Giving the referenced organization the individuals in making sure they do not attempt jobs that they vidual's social security number will help their personnel obviously are not qualified to do. The employer also en- locate the appropriate files, and it may be necessary to sures that patrons or clients are going to receive the highest call back when the files have been located. In general, level of service by choosing the best qualified individual to from a referenced organization the interviewer should at- perform that task. In either case, the rejection should be tempt to find out what type of employee the applicant was looked upon as a situation that is best for all. for that firm, the type of-work performed, and the general Record keeping for both rejections and acceptances can ability to carry out those job assignments. Critical ques- be done on the applicant flow record. A clear, concise tions typically asked are, "Would you reemploy this indi- statement of why the individual was accepted or rejected is vidual for a similar position?" or "How would you rate this necessary for each applicant. Although such detail may individual in comparison with your best employees?" not seem necessary, in the long run it saves valuable managerial time. Since many individuals interview for several ADMINISTERING TESTS jobs at one time, do not be surprised when a potential employee declines an offer. Make the offer as soon as the Within recent years considerable attention has been given decision is made and in a manner that demonstrates a clear to discriminatory practices which both private and public preference for this individual becoming an employee. firms utilize in the selection of new employees. No element in the selection process has received more attention than THE PHYSICAL EXAM that of tests and testing procedures. The cumulative effect of all this attention has been that very few tests will stand Most job offers carry the stipulation that the applicant up under the scrutiny of the EEOC Guidelines that state: must be able to pass a physical exam to ensure good health and sufficient physical stamina to perform to the job speci- Many court decisions have upheld the basic principles of EEOC's Employee Selection Guidelines which prohibit fications. The physical examination reveals the candidate's any job qualification or selection standards which dis- physical qualifications and helps to protect the other em- proportionately screen out individuals in groups protected ployees. Potential candidates should not be excluded from by Title VII unless (1) they can be significantly related to employment based on physical deficiencies that neither job performance and (2) no alternative nondiscrimina- impair their ability to perform the task nor create potential tory standards can be developed to meet requirements shown to be justified by 'business necessity.' Employee contamination of other employees. For example, many selection procedures subject to these Guidelines include cancer victims have been discriminated against because all tests (defined as 'any paper and pencil performance they previously had cancer. In many cases, the cancer measure used as a basis for any employment decision') would not have prevented them from performing various and other requirements such as personal histories, bio- graphical information, background requirements, specific jobs, and it is not a communicable disease. Thus, to educational or experience requirements, interviews, and eliminate someone on the basis of a history of cancer would interview rating systems which result in a significantly be unduly discriminatory. differential rate of rejection for groups protected by Title VII. NEW EMPLOYEE ORIENTATION PROCEDURES In the absence of a validation for paper and pencil tests, the EEOC Guidelines require evidence of "content valid- All new employees, even in the small firm, feel some- ity"—that is, that the test is an actual sample of work to be what misplaced the first few days on the job. Appropriate performed. Thus, for some positions, such as drivers, it orientation procedures can decrease the time of discomfort may be appropriate to test the driving ability of the most for the new employee and make the new employee a pro- 151

ductive member of the organization in a much shorter SUMMARY period of time. In addition, appropriate orientation procedures tend to overcome many of the present employees' The foregoing personnel discussion has attempted to undesirable traits if such exist. present an entire conceptual framework of how more effective employee planning, recruitment, selection, and evalüa- tion can be carried out by the transportation firm. The material will be an effective guide in planning for Affirma- TRIAL PERIOD—FULL EMPLOYMENT STATUS OR tive Action programs which meet or exceed EEOC Guide- DISMISSAL lines. It is important, however, that the manager of both All new employees should understand that they are em- large and small firms remembers that any conceptual pro- ployed on a temporary status to determine their long-range cess is just that—conceptual in nature—and the manager potential for the job and for the organization. Employees must apply it to the specific local situation. also should understand that at the end of a set number of days (60 or 90 days are recommended), a decision will be ADDITIONAL READING made to either accept them fully into the position or to BAUMBECK, C. M., LAWYER, K., and KELLEY, P. C., How terminate their employment with the firm. Formal records to Organize and Operate a Small Business. Fifth edition, of this meeting should be kept. Prentice-Hall, Inc. (1973) Chap. 16.

APPENDIX I

THE FEDERAL CONTEXT FOR LOCAL PUBLIC TRANSPORTATION PLANNING AND IMPLEMENTATION

EVOLUTION OF PUBLIC TRANSPORTATION PLANNING The Changing Planning Process

Background Section 134 in the 1962 Federal-Aid Highway Act is Urban transportation planning is a relatively new and a said to have "created modern transportation planning." It rapidly changing field that has developed in the United led to "the creation of new institutions and a new profes- States largely in response to federal programs. Before the sion with new technical tools" (L-1). The Act required 1930s, federal highway aid could not be used in urban areas that every urban area over 50,000 follow a continuing, co- (population of 2,500 or more). The cities built their own operative, and comprehensive (3-C) planning process in roads and these roads were financed through taxation of the development of an urban transportation plan. PPM 50-9 and IM private enterprise. Transportation planning was not a 50-4-68, issued in 1967 and 1968, respectively separate field of study. It was included as one element of clarified the elements of this process (L-2, L-3). The city planning. process was defined as a sequential and orderly flow of Increasing use of the private automobile and increasing technical stages from development of estimates of travel city growth during the 1930s and 1940s led the American needs to implementation of transportation improvements. public to become concerned with the need for improved It called for use of a methodology based on population urban mobility and additional urban transportation facili- studies and economic forecasting. Evaluation of long-range ties. The federal interest in transportation began with laws plans for the major construction of new facilities involved responding to the mobility problems of urban areas by use of a complex modelling process that permitted network providing for highway construction. The transportation capacity to be tested against projected future travel needs. planning field developed in response to the need for plan- During the 1960s, a great deal of effort was put into the ning the construction of major, new urban highway net- continual improvement of the planning process and the works being funded with federal monies. Since this first refinement of the analytical models. A new emphasis on involvement, the federal government's influence on local mode-split models, which tested transit services as well as transportation planning and decision-making has steadily highway capacity against assumed future needs, also de- increased. Perhaps, the most important federal influence veloped. By the end of the 1960s, a fairly uniform urban was the provision in 1962 that made funding conditional transportation planning process supported by complex ana- upon a transportation planning process. These require- lytical models for use in evaluating large networks of trans- ments have changed and expanded in response to develop- portation systems had developed. ing issues, and the planning process has evolved with them. In the late 1960s, the planning process began to be ques- 152 tioned by the American public. Changing national and on transportation emphasized the need for substantial local priorities and a new political awareness allowed federal involvement in urban public transportation. In citizens to halt or retard the construction of new facilities. his message, he detailed the decline of urban public trans- In response, the planning process changed to consider non- portation because of the changing pattern of city develop- transportation criteria, such as air quality and neighbor- ment that resulted from automobiles and trucks. He stated hood cohesiveness, in the evaluation of transportation that transit was necessary to promote economic efficiency improvements. The federal provisions supporting these and livability in areas of future development. He recom- changing priorities included public hearing requirements, mended federal support for capital costs and recommended the drafting of environmental impact statements, relocation that this support be tied to planning and that public trans- programs, requirements for the preservation of open spaces, portation be incorporated into a coordinated areawide and requirements for the development of state action plans. transportation system (L-7). States were required to develop action plans to assure that The Urban Mass Transportation Act of 1964 marked many new procedures were included in the traditional the beginning of substantial federal involvement in urban planning process. The procedures required consideration of public transportation. The act implicitly assumed that new a range of alternatives; identification of social, economic, capital and the purchase of new equipment would correct and environmental effects; timely involvement of other declining ridership. "The $75 million budget was directed agencies and the public; a systematic interdisciplinary ap- toward the preservation of urban transit service in selected proach; and documentation of the process used in reaching cities through the conversion of failing private transit decisions (L-1). With these new requirements, the plan- companies to public ownership" (L-8). Approval of fed- ning process changed from a scientific and deterministic eral funds was tied to planning by the requirement that approach to a more interdisciplinary and choice-oriented the service be part of the comprehensively planned devel- approach (L-4). The planning process ideally serves, now, opment of an urban area. Between fiscal year 1965 and as the catalyst for constructive debate between different fiscal year 1974, funding for urban public transportation groups of citizens in an urban area with conflicting objec- increased 1700 percent (L-9). The first major increase tives and priorities. There is no longer considered to be one in funding occurred with the Urban Mass Transportation rational, objective, technical procedure to use in deciding Assistance Act of 1970 when Congress discovered that the one best action. Alternative plans with significantly there was real grass roots support for urban public trans- different beneficial and adverse effects are analyzed in order portation as a solution for environmental concerns, urban to provide the widest range of information on improve- sprawl, and opportunity problems of the poor, elderly, ments and resulting effects (L-1). and handicapped (L-10, L-11). Section 5 of the National Mass Transportation Assistance Act of 1974 brought oper- From Highways to Transit ating subsidies. It also directly tied the 3-C planning requirements to the public transportation planning field. While the planning process was changing in direction, Federal subsidies for urban public transportation now changes were also occurring in the types of transportation cover almost everything, including planning and research. improvement being considered. The first transportation Transportation planners are now definitely involved in plans largely concentrated on urban highway networks. Public transportation (which was primarily considered to public transportation planning. consist of bus or rail service) was regarded as a service From Long-Range to Short-Range to be provided by the private sector under local and federal taxation and regulation. During the 1950s and 1960s, In 1975, the Federal Highway Administration (FHWA) transit revenues could no longer keep pace with costs and and the Urban Mass Transportation Administration many companies went out of business. With the financial (UMTA) jointly issued regulations requiring the develop- crisis of the private companies came a shift in both local ment of short-range plans that emphasized noncapital governments' and the federal government's attitudes toward solutions to immediate transportation needs (L-12). These public transportation. It came to be regarded as a service regulations caused a noticeable shift in emphasis from to be provided by local government and, finally, as a service long-range, generalized planning to short-range, 3- to 5- to be subsidized with local, state, and federal taxes (L-5). year system management planning (L-13). The new plan- As public transportation became a governmental responsi- ning process has been characterized as a multiyear plan- bility, the transportation planning field broadened to in- ning process. The first year of the plan is firm and clude public transportation as well as highways. detailed, with each succeeding year becoming less firm Federal funding for transit actually began in 1961 when and less detailed (L-1). In order to relate short-range several key commuter railroads threatened to discontinue and long-range planning, there is a new emphasis within service to major metropolitan areas (L-6). At this same planning agencies on programming implementation through time, several cities were faced with the discontinuation of annual appropriations. This required emphasis on annual bus service by private companies unable to meet their costs appropriation decisions has made the planning process through fares. Many of these cities lacked the resources more politically oriented. The required emphasis on non- to purchase the assets of these companies and continue capital solutions has also made the process more politically service and so there was a great deal of pressure placed on oriented as some noncapital measures, such as parking the federal government to assist the cities with bus service restrictions, are often politically distasteful. The regula- as well as rail service. President Kennedy's 1963 message tions also require substantial public involvement, which can 153

lead to failure to make decisions. The planning agency is stated that highway projects for funding were to be "se- now required to be the catalyst for constructive resolution lected by appropriate local officials with the concurrence of conflicts among public interest groups and political of the State highway department" (L-13). The most re- jurisdictions (L-1). cent U.S. Department of Transportation regulations, is- There is also some controversy concerning the actual con- sued September 17, 1975, state that "urban system high- tent of a short-range plan. Many planners feel that there way projects shall be initiated by local officials in whose is a distinction between implementing low-capital trans- jurisdiction the project is located" and that "public mass portation management measures and implementing capital transportation projects shall be initiated by principal elected intensive stages of the long-range plan. However, both officials of general purpose local governments in consulta- are short-range actions. The major emphasis is on man- tion with local transit operating officials or by local transit aging demand in the development of a transportation sys- operating officials" (L-12). Proposed highway-transit leg- tems management (TSM) element, while the major em- islation submitted to President Carter by the U.S. Depart- phasis is on predicting demand in the implementation in ment of Transportation would completely shift decision- stages of a long-range plan (L-14). The TSM includes making on the use of urban highway funds in urban areas "actions that modify the current institutional and oper- of more than 200,000 population to the local governments. ational characteristics of the existing transportation sys- The federal grants would be sent directly to urban areas tem in an effort to achieve maximum productivity without over one million population, and sent to states but ear- major capital investment" (L8). Typically the short- marked for local governments for urban areas between range plan may also address federally funded transporta- 200,000 and 1,000,000. These funds will be apportioned tion that is not funded through the U.S. Department of on a population basis (L-16). Transit funds are already Transportation. There are at least eight other federal handled in this manner. The actual local governmental agencies that provide money for urban public transpor- recipients are designated by state governors but state tation (L-15). These agencies fund transportation as a agencies are bypassed in this manner. "support service." The transportation provided supports Since 1973, the planning process has come to involve social service programs (welfare, employment service, shared power. Comprehensive planning agencies (local etc.) by providing a means for clients to reach the service. and regional), special purpose agencies, transit operators, Various constraints accompany these transportation funds local elected officials, state agencies, city and county in order to assure that the client is, indeed, the one re- engineers, traffic engineers, and citizen interest groups are ceiving the service. The local planner is now involved now all involved in the planning process. Each agency in coordinating and improving the efficiency of these trans- has a different role because each has a different perspective, portation efforts as part of the short-range plan, as well different experience, and different constituencies with dif- as other noncapital intensive efforts. ferent interests. There has been a definite shift in the planning process from state control to local control. Local From State to Local comprehensive planning agencies are increasingly respon- The U.S. Constitution gave the responsibility for roads sible for significant portions of transportation planning and streets to the states. When the federal government work programs. became involved in highway funding in 1916, each state was directed to establish a state department of highways. From State to Local to Regional Through the department of highways, each state was assured the sovereign right to determine which projects Section 134 of the 1963 Federal Aid Highway Act were funded (L-13). The states were given a strong role required that local governments agree to use a 3-C plan- in the 1962 Federal Aid Highway Act. Unlike the high- ning process. To conform with the provisions of the act way program, however, the Urban Mass Transportation many of the larger urban areas assigned the responsibility Acts have always emphasized selection by local officials. for planning and the development of the planning process There has recently been growing pressure for local in- to one local agency—frequently a regional comprehensive volvement in the planning and programming of highways planning agency or a regional transportation agency. These as well as transit, as concern for the environment began regional planning organizations planned for an area that to be expressed. may have encompassed several local government jurisdic- In 1962, the Federal Aid Highway Act stated that the tions. In 1975, FHWA and UMTA jointly issued regula- planning process was to be "carried on cooperatively by tions requiring that all state governors designate a metro- States and local communities" (L-13). The early partici- politan planning organization (MPO) in every urban area pation of local communities under this act was almost (L-12). It was strongly recommended that this agency solely the participation of local staff in technical matters be a regional comprehensive planning agency. This agency (L-13). In 1970, federal legislation specified that there was also given the responsibility for linking programming would be no highway project approved "unless the respon- with planning, which involves decisions concerning the dis- sible public officials of such urban area . . . have been bursement of federal transportation funds among compet- consulted .....and that the projects to be funded were ing users. This designation and delegation of funding to be "selected by the appropriate local officials and the programming authority has raised a continuing controversy. State highway departments, in cooperation with each Do the regulations force states and local governments to other ..... (L-13). In a 1973 amendment, legislation create a regional level of government and delegate statu- 154 tory authority to it? Is a subfederal, regional level of shared-ride taxi, etc.) out of business and to subsidize government being developed? Because the designated MPO the fixed-route service (L-20). It is now realized that dif- must report to a local policy body, usually separate from ferent services provided by many providers are needed the MPO and composed of both local elected officials to compete with the automobile in terms of convenience and appointed officials representing the state, the legal and flexibility. The transportation planner must now ad- answer to these questions is currently no. However, the dress the problem of encouraging the reestablishment of issue does continue to cause tension between MPOs and flexible, privately supplied services to supplement the ex- the local governments they are designed to represent, co- isting fixed-route service and to provide service where ordinate, and serve (L-17). fixed-route service is. not appropriate. Transportation improvements may now include regulatory reform, insurance The Developing Market Orientation assistance, etc. The market appoach is to match the needs of the user with the abilities of the providers and to In proposed policy issued August 1, 1975, UMTA indi- encourage providers in both the private and the public cated that in grant requests they were looking for "a mix of transit options with the choice of service being dictated sectors to develop and provide the necessary service to the user. Different services serve different needs. by the demands existing in a corridor as part of an urban area" (L-18). As local planners have gained experience THE TRANSPORTATION SYSTEMS with public transportation planning there has developed MANAGEMENT ELEMENT a growing appreciation of the fact that there is no one best form of public transportation. A new change is now Objectives of Transportation System Management occurring in the public transportation planning process The joint regulations published by the Federal Highway based on this awareness. Instead of promoting a single Administration and the Urban Mass Transportation Ad- public transportation mode (fixed-route, fixed-schedule bus ministration on September 17, 1975, required development or rail) to solve an urban area's transportation problems, of a short-range plan entitled "A Transportation System the focus of the planning approach is now on identifying Management (TSM) Element" (L-12). This was the first public transportation market segments. A market segment time that a short-range plan encompassing all modes had is composed of those people within the urban area who been required by the federal government. UMTA had are both able and willing in a designated future time required that a Transit Development Program (TDP) period to decide to use and pay the fare for a specific describing and justifying capital and operational transit type of public transportation service (L-19). Traditional improvements over five years be developed as a condi- design criteria (for example, one-quarter mile service area tion for funding approval. The TSM objectives are, how- for fixed-route services) may indicate the ability of in- ever, both broader and different in kind than the TDP dividuals to use a service bit not their willingness. Both which it replaced. the needs and desires of individuals for particular public The objective of the TSM element is to plan for the transportation service attributes must be determined be- short-term transportation needs of an urban area through fore potential market segments for public transportation the more efficient use of existing transportation resources, services can be identified. All public transportation modes both highway and public transportation (L-21). Through (private as well as public) must then be analyzed in an the TSM planning requirements, the U.S. Department of effort to identify the best match. The focus is now on Transportation believes that the need for new, major, consumer needs not on the design standards of a single capital investments can be reduced; that a better balance mode. Because of operating subsidies from the federal between highway and public transportation improvements government for the support of existing systems, all alterna- can be achieved; and that national energy and environ- tives may now be considered because the existing system mental problems can be reduced. Energy and environmental is no longer in danger of disappearing while new ideas considerations may dictate that traffic be reduced rather are being tried. Public transportation may now be than accommodated, which requires transportation system planned as one element in a coordinated transportation management (L-21). Transportation system management system and not as competition to the automobile. is viewed as either an alternative or a supplement to the The new market orientation recognizes that public trans- construction of new facilities. The regulations also con- portation is operating in an entirely different organiza- tinue to require the development of a long-range plan for tional environment now than it did a century ago. Rail- the construction of new facilities. roads and trolley cars were so superior to their early competition (walking, horseback, and carriage) in terms Required Content of travel time, comfort, and convenience that an individual The federal regulations are intentionally vague about user was better off even if required to wait for the next the content of a TSM. The intent of the regulations is train or take an indirect route. The automobile is, how- to force urban areas to consider noncapital intensive trans- ever, so superior to railroads, trolley cars, and other fixed- portation improvements and, in the case of transit, to route, fixed-schedule service (in terms of travel time, com- program their implementation. The actions to be consid- fort, and convenience) that fixed-route services cannot ered are not actually specified, nor is the process by which compete in low density areas. The initial government actions must be evaluated. The advisory information on reaction to the decline of fixed-route services was to regu- TSM plans attached as an appendix to the joint regulations late all competing public transportation services (jitney, lists eight major categories of actions that should be con- 155

sidered in the development of the TSM element. These The problem confronting the decision-maker is con- categories, and the actions within each category, are listed tinually redefined: Incrementalism allows for countless in Appendix M. Measures directly dealing with public end-means and means-ends adjustments which, in effect, transportation alternatives are included in all categories. make the problem more manageable. Each urban area is not required, however, to include Thus, there is no one decision or "right" solution actions from each category in its TSM plan. but a "never-ending series of attacks" on the issues at hand through serial analyses and evaluation. Required Process As such, incremental decision-making is described as remedial, geared more to the alleviation of present, con- The TSM requirement is a "process-oriented require- crete social imperfections than to the promotion of future ment" as opposed to a content-oriented requirement (L- social goals (L-24). 21). Every urban area is required to follow a planning process that considers noncapital intensive transportation The actual TSM requirements are vague and the incre- improvements. The TSM plan must specify the over-all mental planning approach could be used in TSM plan- policy objectives and the strategy selected to accomplish ning. A variety of other approaches that attempt to tie them (L-12). The existence of a TSM plan and the pro- short-range actions to long-range transportation plans and gramming of TSM actions in the Transportation Improve- identify basic policy directions to be followed could also ment Program (TIP) are required as a condition of UMTA be used. The regulations do not specify that TSM actions funding approval for urbanized areas with a population of should collectively lead to the completion of long-range 200,000 or more. Federal highway funds are also jeopar- plans. They also do not specify that the actions taken dized if a TSM plan is not developed. In effect, then, there should be solely designed to remedy existing problems are three process-oriented, federal requirements for a TSM without considerations of long-range goals. plan: TSM Implementation Develop and specify local goals and policy objectives which provide for the short-range transportation needs of The program for implementation of TSM actions must the urban area through efficient use of existing resources. be included in the urban area's TIP. Inclusion of TSM Specify a strategy for accomplishing the goals and actions in the TIP is required to receive any form of UMTA policy objectives. funding. This requirement not only assures that TSM Plan for and implement TSM type of improvements. actions will be implemented, but it also reduces the federal funds available for long-range plans. In this way, the less- These requirements are in addition to the requirements capital intensive TSM actions are effectively emphasized. developed over the past years with regard to long-range planning, which have also been reiterated in the joint EFFECT AND ANTICIPATED EFFECT OF FEDERAL regulations. LEGISLATION AND GUIDELINES Although the regulations do not specify the process to be followed in developing a TSM to any extent, other Federal Grants Predetermine Local Choices authors have suggested items to be included. In his evaluation of TSM plans submitted during the first year of Federal grant programs encourage local urban areas to their requirement, Meyer (L-22) recommended that the plan transportation improvements that meet the require- TSM process should identify the mechanism to be used ments of the federal program in order to receive funds. in plan development, the general planning process which The decision to implement a transportation improvement is the framework for the TSM process, the relationship is not necessarily based on the local need for the improve- between TSM and the long-range plan, the analysis and ment, but rather on the amount of federal dollars that evaluation criteria, and the mechanism to be used in can be obtained with one dollar of local money (L-1). monitoring the effectiveness of the actions taken. When the federal government first became involved in funding urban public transportation with capital grants, Incremental Planning Approach there were two effects. First, local governments were able to purchase bankrupt or declining transit companies that The TSM regulations suggest to other authors (L-23) they would not have been able to purchase without federal that the federal government is encouraging local govern- help. Unfortunately, these same local governments were ments to adopt an incremental planning approach. The also unable or unwilling to adequately financially support incremental planning approach has been summarized as the companies that they purchased. The second effect follows: was to encourage all local governments, regardless of I. Rather than attempting a comprehensive survey and size, to plan for public transportation improvements that evaluation of all alternatives, the decision-maker focuses would substitute capital improvements for labor. Many only on those policies that differ incrementally from exist- local governments planned for the construction of fixed- ing policies. guideway (rail) public transportation even though they Only a relatively small number of policy alternatives did not have the population density to justify that type are considered. of improvement. Other local governments purchased all For each policy alternative, only a restricted number new equipment, regardless of need, in order to reduce of "important" consequences are evaluated. maintenance expense. 156

Federal operating subsidies became inevitable to support privately owned traditional bus transportation on fixed the public transportation systems purchased, planned, and routes. Local ordinances and policies requiring private renovated with federal capital. Unfortunately, operating operators to charge low fares or provide unprofitable subsidies encourage local urban areas to ignore deficits service may ensure that the public subsidizes peak-hour in making determinations concerning service and fares commuting service, even when that service could be pro- within the funding limits of the subsidy. The signing of vided without tax subsidy at a profit by a private supplier. the National Mass Transportation Assistance Act of 1974, There has not been enough attention to date on user sub- which authorized federal operating subsidies, created the sidies. User subsidies may, however, offer governmental impression that local public transportation financial prob- agencies one method for supporting the development of lems would finally be solved. In actuality, a very serious private public transportation services while continuing to problem may have been created. What will happen when support the publicly owned services. the nation's priorities shift again and the public transportation subsidy program is reduced or eliminated? Where Federal Requirements May Predetermine System Design will local governments find the money to provide the services that are now being expanded with federal dollars? In the past, federal programs have placed most of their More immediately, what will happen if the federal fund- emphasis on capital assistance for the construction of new ing level remains the same but inflation increases? In intraurban rail systems and the modernization and exten- this case, the immediate local financial problem has only sion of existing rail systems. About 70 percent of capital been delayed a few years, in exchange for a serious future grant funds are used for rail systems (35 percent for new financial problem when federal money is no longer avail- rail systems and 35 percent for improvements or exten- able. sions), while only 30 percent of capital grant funds are The smaller urban areas are often the most affected by for bus purchases (L-10). This past emphasis on capital federal funding policies, programs, and changes. Although intensive or high technology systems in the capital fund- the total dollar amount the many smaller urban areas ing program encouraged local governments to plan systems receive may be considerably less than the amount only a that would be eligible for funding. Cities, such as St. few large urban areas receive, a large percentage of total Louis and Denver, planned capital intensive, fixed-guide- expenditures in the smaller urban area's bus system may way systems, such as rail or PRT (personal rapid transit) be federal whereas only a small percentage of a larger systems, even though their demographic characteristics did urban area's operating budget may be federal (L-25). not warrant such systems (L-28). Because of this percentage difference, the small urban area Federal funding policies sometimes have encouraged the may have the more difficult time finding alternate funds development of only one system to service the entire com- or cutting programs. munity, regardless of whether a combination of services would better meet local requirements. One purpose of Private Suppliers are Affected by Federal Legislation the Urban Mass Transportation Assistance Act of 1964, as amended, was to "encourage the planning and estab- The Urban Mass Transportation Act of 1964, as lishment of areawide urban mass transportation systems" amended, was designed to provide "assistance for the de- (L-26). Areawide systems are now seriously being ques- velopment of comprehensive and coordinated mass trans- tioned. Many transportation professionals believe that portation systems, both public and private" (L-26). Guide- many different services need to be developed in order to lines concerning the recipients of federal funds specify, serve the many different segments of the population. however, that the recipient must be a governmental agency. The new and proposed guidelines for discretionary, Although the governmental agency may contract to a federal capital grants should have a different effect from private operator to provide service, the effect has been current and past guidelines. New guidelines require that for the local governments to become public transportation extensive analysis should be made of noncapital intensive providers. In 1973 there were 185 publicly owned, public capital improvements before applying for federal funds. transportation agencies. These publicly owned transporta- Capital improvements are to be planned in increments tion agencies carried 91 percent of all the urban public rather than as continuous systems with priority placed transportation passengers, earned 88 percent of all the on immediate needs rather than on projected needs. Im- revenues, owned 79 percent of all the vehicles, and em- proved management of existing services is considered an ployed 90 percent of all the employees (L-27). These alternative to the construction of new services. These new publicly owned transportation agencies also compete with guidelines make it very difficult for urban areas to plan private suppliers, although this competition is not often officially or professionally recognized. Frequently local or for the construction of new services. state legislation established many years ago prohibits the The proposed new guidelines for establishing formula development of jitney service or shared-ride taxi service, grants (funding both capital and operating costs) continue both of which could provide public transportation service to emphasize rail and fixed-guideway systems and tradi- that could compete with fixed-route service very effectively tional bus transit. The new formula is based on urban along major travel corridors and in low density suburban area population, population density, rail mileage, fixed- areas. Public dial-a-ride service often directly competes guideway route mileage, fixed-route mileage, bus seat with existing taxi service and this is currently not officially miles, and the number of buses over 12 years old (L-29). recognized. Traditional transit may even compete with Cities that offer variable route public transportation service 157

using vans or taxis can be at a disadvantage with regard The Next Few Years to obtaining federal grants under this formula. The new legislation proposed by the Department of Transportation includes several changes. Under the new Operating Subsidies Encourage Deficits proposal, the operating subsidies can apply to 50 percent Federal operating subsidies for urban public transporta- of the operating deficit regardless of previous local com- tion are not currently tied to performance requirements mitments. Current regulations require that local govern- and are not proposed to be tied to performance requirements maintain their existing level of support. The effect ments in the future. Because they are not tied to per- of the current requirement has been to encourage service formance requirements, the more a public transportation expansions beyond the means of local government support company loses, the more subsidy it may be eligible to in order to secure federal funds. Fifty-four percent of receive (L-10). There are, however, limits on the total total apportioned funds will be eligible for operating sub- dollar amount of subsidy available. In spite of these limits, sidies (L-16). The formula grant program would be au- operating subsidies do encourage deficit management poli- thorized for a 4-year period, and the discretionary grant cies. An analysis of public transportation services in program would be authorized for a 5-year period (L-16). various sizes of urban areas around the United States However, under the proposed legislation, the federal prior to federal operating subsidies showed that those money available for transportation (including public trans- public transportation systems with the largest operating portation) would not increase substantially between now deficit (largest percentage of operating costs not met by and fiscal year 1981. These changes combined with the revenues) were located in those urbanized areas with new emphasis on noncapital improvements, the new pro- a state operating assistance program, a locally earmarked posed formula that emphasizes rail and fixed-route service, tax for public transportation, or a combination of state and the new regulations concerning the elderly and the and local assistance programs (L-25). In other words, handicapped will all have some effect. In general, tradi- those urbanized areas that had a regular subsidy program tional public transportation services will continue to be had services with greater operating deficits. Population favored, with both route expansion and better manage- size had very little to do with the relative size of the ment of existing services being of prime concern in order operating deficit (L-25). The reason that operating sub- to meet both TSM requirements and to increase the local sidies have this effect is that they are used to preserve areas formula apportionment. The lack of increase in the existing services at existing fares. Unprofitable services are federal money will require more local and state participa- continued, low fares are continued, and labor wages and tion and possibly more use of private or nonprofit services benefits are increased to meet or exceed inflation. Con- to supplement traditional service. There could be some sequently, the deficit grows. As the deficit grows, the short-term stability in the grant program, allowing local subsidy is increased in order to preserve the existing planning processes to be formalized. High technology service and fares. If the public transportation service is improvements should be emphasized less in planning ef- also improved or expanded, the subsidy program allows forts, with more emphasis put on alternatives analysis. improvement without reduction of existing services. This Short-range planning will definitely be emphasized. also raises the amount of deficit. The major effect that a federal subsidy program can be expected to have is to REFERENCES keep local taxes from rising to meet the growing deficit, MANHEIM, M. L., "The Emerging Planning Process: and, in areas without local or state subsidy programs, to Neither Long-Range nor Short-Range, But Adap- encourage the increase of deficits through the preservation tive and (Hopefully) Decisive." Paper presented of existing services and fares. at the 56th meeting of the Transportation Research Board, January 1977. Elderly and Handicapped Service U. S. DEPARTMENT OF TRANSPORTATION, Rules and One of the most obvious examples of the effect of Regulations, PPM 50-9: Urban Transportation Plan- federal grant programs on local services and local planning (June 21, 1967). ning efforts has to do with elderly and handicapped. Fed- U. S. DEPARTMENT OF TRANSPORTATION, Rules and eral requirements that all systems receiving federal funds Regulations, Guidelines Supplementing IM 50-4-68 offer half fares to the elderly and make design changes in (Apr. 1968). both vehicles and fixed facilities to accommodate those BELLOMO, S. J., "Issues and New Directions in in a wheelchair and the semiambulatory have made and Statewide Transportation Planning and Program- will make significant changes in local decisions concerning ming." Paper presented at the 56th meeting of the Transportation Research Board, January 1977. station design and vehicle specifications. The existence BESHERS, E. W., "Federal Transit Operating Sub- of a special federal program for the funding of private sidy Options." Transportation Research Record 573 nonprofit services to serve the elderly and the handicapped (1976) p. 12. (16[b]2) will assure that these nonprofit services develop. MERTINS, H. J., National Transportation Policy in Although those effects may be desirable, they are examples Transition. Lexington Books, D.C. Heath and Com- of the influence of a federal program on local decisions pany (1972). concerning urban public transportation. NORTON, H. S., National Transportation Policy: 158

Formation and implementation. McCutchan Pub- R. B., Marketing Decision Making: Concepts and lishing Company (1966). Strategy. Richard D. Irwin Inc. (1976). L-8. "Urban Transportation Alternatives: Evolution of L-20. DAVIS, F. W., JR., and AEX, R. P., "Management Federal Policy." TRB Special Report 177 (1977) and Organization for Promoting the Utilization of 38 pp. Paratransit." University of Tennessee, Transporta- L-9. SCHEINER, J. I., and STARLING, G., "The Political tion Center (Nov. 1977) (Mimeographed). Economy of Free-Fare Transit." Urban Affairs L-21. U. S. DEPARTMENT OF TRANSPORTATION, "Trans- Quarterly, Vol. 10, No. 2 (Dec. 1974) p. 170. portation System Management. Supplementary In- L-lO. U. S. CONGRESS, Congressional Budget Office, Ur- formation on Development and Implementation of ban Mass Transportation: Options for Federal As- TSM Plans" (Dec. 1975) (Mimeographed). sistance (Feb. 1977). L-22. MEYER, M., "A Review of Transportation System L-1 1. SMERK, G. M., "Federal Transit Policy: Specula- Management in Response to New Federal Policy." tions on the Future." Transit Journal, Vol. 1. No. 3 Working Paper 76-3, Massachusetts Institute of (Aug. 1975) p. 5. Technology, Center for Transportation Studies L-12. U. S. DEPARTMENT OF TRANSPORTATION, Rules and (Oct. 1976). Regulations. "Transportation Improvement Pro- L-23. EDWARDS, J. L., and BEIMBORN, E. A., "Some Per- gram." Federal Register, Vol. 40, No. 181 (Sept. spectives on the Future Relationships Between 17, 1975) pp. 42976-42984. Long and Short Range Urban Transportation L-1 3. U. S. DEPARTMENT OF TRANSPORTATION, "Urban Planning." Paper presented at the 56th meeting of System Study." Report to the United States Con- the Transportation Research Board, January 1977. gress (Dec. 1976). L-24. DAVIDOFF, P., "Advocacy and Pluralism in Plan- L-l4. HEANUE, K. E., "Changing Emphasis in Urban fling." A Reader in Planning Theory, A. Faludi Transportation Planning." Paper presented at the (Ed.), Pergamon Press (1973). 56th meeting of the Transportation Research Board, L-25. U. S. DEPARTMENT OF TRANSPORTATION, Transit January 1977. Operating Performance and the impact of the Sec- Transportation Authorities in Federal L-15. BROOKS, S., tion 5 Program (Nov. 1976). Human Services Programs. U. S. Dept. of Health, L-26. U. S. DEPARTMENT OF TRANSPORTATION, Rules and Education, and Welfare (Atlanta) (Mar. 1, 1976). Regulations, Urban Mass Transportation Act of DEPARTMENT OF TRANSPORTATION, "High- L-16. U. S. 1964 and Related Laws (Feb. 5, 1976). way-Transit Legislation Summary of Recommenda- "National Transportation Policy-A Proposal." tions." (Dec. 20, 1977) (Mimeographed). L-27. Transit Journal, Vol. 1, No. 1, p. 3 (Feb. 1975). L-17. MALLEK, J., "From Bunker Hill to the MPO." Rural and Urban Roads (July 1976) pp. 8-9. L-28. VEATCFI, J. F., "Federal and Local Urban Trans- portation Policy." Urban Affairs Quarterly, Vol. 10, L-18. NATURAL RESOURCES DEFENSE CouNcIL, INC., Land Use Controls in the United States. The Dial No. 4 (June 1975) p. 398. Press (1977). L-29. "Washington Seeks to Create Surface Transporta- (Jan./Fèb. 1978) pp. 17-19. L-19. CRAVENS, D. W., HILLS, G. E., and WOODRUFF, tion Fund." Metro

APPENDIX M

ACTIONS TO BE CONSIDERED IN A TRANSPORTATION SYSTEMS MANAGEMENT ELEMENT

The following major categories The appendix to the joint regulations published by the Actions to be considered. of action should be considered for inclusion in the Trans- Federal Highway Administration and the Urban Mass portation Systems Management element. While the feasi- Transportation Administration on September 17, 1975, bility of and need for individual actions may differ with lists eight categories of actions to be considered in the de- the size of an urbanized area or the extent of its conges- velopment of a TSM element (U.S. DEPARTMENT OF tion, all categories of actions should be considered. It is TRANSPORTATION, Rules and Regulations, "Transportation expected that some actions in each category will be ap- Improvement Program." Federal Register, Vol. 40, No. propriate for any urbanized area. 181 (Sept. 17, 1975) pp. 42976-42984). These actions are a. Actions to ensure the efficient use of existing road quoted as follows: space through: 159

Traffic operations improvements to manage and con- Staggered work hours trol the flow of motor vehicles such as: Flexible work hours Channelization of traffic Reduced transit fares for offpeak transit users One-way streets Increased peak-hour commuter tolls on bridges and Better signalization and progressive timing of traffic access routes to the city signals b. Actions to reduce vehicle use in congested areas Computerized traffic control through: Metering access to freeways Encouragement of carpooling and other forms of Reversible traffic lanes ridesharing Other traffic engineering improvements Diversion, exclusion and metering of automobile ac- Preferential treatment for transit and other high- cess to specific areas occupancy vehicles, such as: Area licenses, parking surcharges and other forms of Reserved or preferential lanes on freeways and city congestion pricing streets Establishment of car-free zones and closure of se- Exclusive lanes to bypass congested points lected streets to vehicular traffic or to through Exclusive lanes at toll plazas with provision for traffic no-stop toll collection Restrictions on downtown truck delivery during peak Conversion of selected downtown streets to exclu- hours sive bus use C. Actions to improve transit service, through: Exclusive access ramps to freeways Provision of better collection, distribution and inter- Bus preemption of traffic signals nal circulation services (including route-deviation Strict enforcement of reserved transit rights-of-way and demand-responsive services) within low- Special turning lanes or exemption of buses from density areas turning restrictions Greater flexibility and responsiveness in routing, Appropriate provision for pedestrians and bicycles, scheduling, and dispatching of transit vehicles such as: Provision of express bus service in coordination with Bicycle paths and exclusive lanes local collection and distribution services Pedestrian malls and other means or separating pe- Provision of extensive park-and-ride services from destrian and vehicular traffic fringe and transportation corridor parking areas Secure and convenient storage areas for bicycles Provision of shuttle transit services from CBD fringe Other bicycle facilitation measures parking areas to downtown activity centers Management and control of parking through: Encouragement of jitneys and other flexible para- Elimination of on-street parking, especially during transit services and their integration in the metro- peak periods politan public transportation system Simplified fare collection systems and policies Regulation of the number and price of public and Provision of shelters and other passenger amenities private parking spaces Better passenger information systems and services Favoring parking by short-term users over all-day d. Actions to increase internal transit management ef- commuters ficiency such as: Provision of fringe and transportation corridor park- Improve marketing ing to facilitate transfer to transit and other high- Developing cost accounting and other management occupancy vehicles tools to improve decision making Strict enforcement of parking restrictions Establishing maintenance policies that assure greater Changes in work schedules, fare structure and auto- equipment reliability mobile tolls to reduce peak-period travel and to encourage Using surveillance and communications technology off-peak use of transportation facilities and transit ser- to develop real time monitoring and control vices, such as: capability

AGENCY RESPONSIBILITIES FOR TRANSPORTATION

REGIONAL (MULTICOUNTY OR COUNTY) AGENCIES have also organized Regional Transportation Authorities that both plan and provide public transportation services. There are many different types of agencies that perform A few urban areas have planning or transportation district regional planning. The two most common forms are the organizations. Most urban areas also have privately sup- Regional Council of Governments (COG) and the Re- plied public transportation services that operate at a regional Planning Commission (RPC). Many urban areas gional scale. 160

REGIONAL COUNCIL OF GOVERNMENTS bonding authority, and are the recipients of earmarked taxes (N-I, N-2). The regional council of governments is a voluntary association of local, general purpose governments (cities and SUBSTATE DISTRICT DIVISIONS OR SPECIAL DISTRICTS counties) that pay dues in order to belong. Some COGs are tax exempt corporations. Representatives (usually The district division is a regional division of a state elected officials) of the local, general purpose governments agency that has administrative and/or service responsibili- form the executive board that controls the organization. ties. It is composed of professional personnel that are re- A professional planning staff may be employed by the sponsible solely to the parent state agency. Most states executive board. Depending on the state's enabling legisla- have district highway offices that handle state construction tion and the desires of the member governments, a COG and maintenance. Connecticut has transit district offices may only be involved in planning activities or may be a that provide transit service. A few states have district major provider of regional services (including specialized planning agencies instead of regional planning agencies or transportation for special interest groups, such as the councils of governments. The district planning agency elderly and the handicapped). Most COGs are financed functions as a division of the state planning agency. primarily with federal funds through planning and project grants that are matched by the local government dues. PRIVATE TRANSPORTATION PROVIDERS Some regional councils of government have fragmented responsibilities because of the cities or other political juris- A study of transportation services found that 39 percent dictions within the urban area that do not participate and of the providers of transportation services in an urban therefore do not pay dues. Generally, every government area were private, profit-making enterprises (N-3). These represented will have only one vote, regardless of popula- services included profitable fixed-route bus services (serv- tion size, and this may discourage the active participation ing commuter runs), taxi services, and emergency medical of the larger governmental bodies. services. Although the number of trips these services provide is small in comparison to the public transit services, REGIONAL PLANNING COMMISSIONS these private agencies are very important. With the declining availability of public funds to support increased Regional planning commissions (RPC) are special pur- services, the private supplier will need encouragement to pose public bodies that do not directly report to local, gen- expand services. Most private providers operate at the eral purpose governments. The commission is usually an regional, urban area scale. Their service area is generally appointed body that consists of citizens from the various regulated. They may be allowed to leave a service area to communities in the regions. These citizens are appointed deliver a passenger, but may be prohibited from picking to the commission by the local governments within the up a passenger for the return trip. region. An RPC generally has a professional planning staff, and typically does not perform any nonplanning LOCAL AGENCIES functions. Most RPC staffs are financed primarily by federal grants and contracts, combined with local appro- There are two basic types of local agencies that do local priations. planning: the community development agency (CDA) and the planning commission. A city or county may use either REGIONAL TRANSPORTATION AUTHORITY one or both. There are two main types of local transportation agencies: the transportation authority and the trans- Many urban areas have developed regional transporta- portation department. These agencies operate separately tion authorities with the responsibility of both planning and from the planning agencies. In addition, some local areas operating the traditional public transportation services. have local regulatory commissions. Also at the local level The authority may be composed of officials appointed by there is usually a variety of social service agencies that local and/or state elected officials or may be an elected provide transportation services to their client groups. body. A professional planning and management staff may be employed by the authority. In a few urban areas, the COMMUNITY DEVELOPMENT AGENCY authority was already in existence with responsibility for other services, such as water and sewer service. In these The community development agency (CDA) is a rela- areas, the responsibilities of the authority were increased tively new organizational concept. It is the result of or- by transferring responsibility for the traditional public ganizational experiments that took place under the Model transportation services (fixed-route bus and rail) to the Cities Program. Most local governments have organized a existing authority. Some transportation authorities are rela- CDA to handle federal community block grants and, pos- tively weak because they are dependent on other agencies sibly, revenue sharing. A CDA is both a planning and an for their funding and have narrowly defined responsibilities. implementation agency. It may implement some programs Other regional transportation authorities are very powerful with its own staff, but generally contracts with other city agencies that act almost as a metropolitan unit of govern- agencies (such as a public works department or a housing ment. They may have direct powers for implementing authority) to implement. The CDA director is responsible services, have the power to condemn property (including to, and employed by, local elected officials—but usually the privately owned transportation systems), have independent agency also reports to one or more citizen committees. 161

The citizen committees have only review functions. CDAs garages, meter parking attendants, etc.). Its responsibili- may or may not be involved in transportation planning. ties may be broad or narrow, ranging over all modes or focused on one mode or on traffic engineering. PLANNING COMMISSION

The planning commission concept was formed in the REGULATORY COMMISSIONS 1920s to remove important land-use development decisions Some local areas have commissions that regulate private from politics. It is a lay board, appointed by local elected services, such as taxis. In many urban areas, however, this officials, with a professional staff (the planning depart- power rests solely with the local elected officials. ment). The commission's primary concern generally is land-use zoning. There are several organizational arrange- SOCIAL SERVICE AGENCIES ments for incorporating the planning commission into local government. The commission may be semiautonomous Most urban areas have a number of social service agen- and its actions may be overruled only by a majority vote cies that provide transportation services to their client of the city council. In this arrangement, the staff is em- groups. A study made in Texas determined that 42 percent ployed by the commission. At the other extreme, the of the agencies involved in providing transportation service planning commission may only be advisory to the profes- within urban areas were social service agencies (N-3). sional planner (director of the planning department), who, There are usually restrictive regulations governing the in turn, is a member of the mayor's cabinet (N4). Most operation of these services. The services are usually re- states require in their enabling legislation that a planning stricted to a few user groups, and then only when they are commission be involved in long-range transportation plan- obtaining the primary service, of the social service agency. ning. In particular, major street plans are generally re- Currently, there are many local attempts at coordinating quired as input into the approval of subdivisions. Some and consolidating these services. states also require planning commissions to be involved in long-range transit planning. State law generally does NEIGHBORHOOD AGENCIES not require short-range transportation planning. Some large urban areas have neighborhood planning TRANSPORTATION AUTHORITY agencies that are subdepartments of a city, a county, or a regional planning agency. These agencies have the same The transportation authority is usually a semiautono- range of concern as the parent agency (including transit), mous, appointed citizen board with a professional staff. but only focus on those issues that affect the neighborhood. It may also be elected. Its responsibilities may include all modes of transportation (from airports and parking to REFERENCES transit) or may include only one transit element. The authority is often appointed by the mayor and/or the city N-I. EDWARDS, J. L., and BEIMBORN, E. A., "Some Per- council. In general, its function with regard to transit is spectives on the Future Relationships Between Long to provide the policy directives and broad objectives, while and Short Range Urban Transportation Planning." the day-to-day management is left to the general manager Paper presented at the 56th meeting of the Trans- of the system and his staff. Frequently, however, the portation Research Board, January 1977. authority does get involved in more detailed aspects of the WICKHAM, D., DAVIS, F. W., and MUNDY, R., "Insti- operation because of political pressure. tutional Factors that May be Caused by or Result from Implementation of Transportation Services." TRANSPORTATION DEPARTMENT University of Tennessee, Transportation Center (Working Paper). The transportation department is composed of profes- BRIGGS, R., Specialized Transportation Providers in sionals who are responsible to, and employed by, the local the Context of the Transportation Complex. Uni- elected body. The department is usually formed through versity of Texas at Dallas (Jan. 1978). combining the traffic engineering office with various other HAGMAN, D. G., Urban Planning and Land Develop- offices that handle transportation matters (i.e., parking ment Control Law. West Publishing Co. (1971). THE TRANSPORTATION RESEARCH BOARD is an agency of the National Research Council, which serves the National Academy of Sciences and the National o Academy of Engineering. The Board's purpose is to stimulate research concerning the nature and performance of transportation systems, to disseminate information that the research produces, and to encourage the application of appropriate research findings. The Board's program is carried out by more than 150 committees and task forces composed of more than 1,800 administrators, engineers, social scientists, and educators who serve without compensation. The program is supported by state transportation and highway departments, the U.S. Department of Transportation, and other organizations interested in the development of transportation. The Transportation Research Board operates within the Commission on Sociotech- nical Systems of the National Research Council. The Council was organized in 1916 at the request of President Woodrow Wilson as an agency of the National Academy of Sciences to enable the broad community of scientists and engineers to associate their efforts with those of the Academy membership. Members of the Council are appointed by the president of the Academy and are drawn from academic, industrial, and governmental organizations throughout the United States.

The National Academy of Sciences was established by a congressional act of incorporation signed by President Abraham Lincoln on March 3, 1863, to further science and its use for the general welfare by bringing together the most qualified individuals to deal with scientific and technological problems of broad significance. It is a private, honorary organization of more than 1,000 scientists elected on the basis of outstanding contributions to knowledge and is supported by private and public funds. Under the terms of its congressional charter, the Academy is called upon to act as an official—yet independent—advisor to the federal government in any matter of science and technology, although it is not a government agency and its activities are not limited to those on behalf of the government.

To shaie in the tasks of furthering science and engineering and of advising the federal government, the National Academy of Engineering was established on December 5, 1964, under the authority of the act of incorporation of the National Academy of Sciences. Its advisory activities are closely coordinated with those of the National Academy of Sciences, but it is independent and autonomous in its organization and election of members. TRANSPORTATION RESEARCH BOARD NON-PROFIT ORG. National Research Council U.S. POSTAGE 2101 Constitution Avenue, N.W. P A I D Washington, D.C. 20418 WASHINGTON, D.C.

ADDRESS CORRECTION REQUESTED PERMIT NO. 42970