OFFICE OF THE LEGISLATIVE AUDITOR O L A STATE OF MINNESOTA EVALUATION REPORT Governance of Transit in the Twin Cities Region JANUARY 2011 PROGRAM EVALUATION DIVISION Centennial Building – Suite 140 658 Cedar Street – St. Paul, MN 55155 Telephone: 651-296-4708 ● Fax: 651-296-4712 E-mail: [email protected] ● Web Site: http://www.auditor.leg.state.mn.us Through Minnesota Relay: 1-800-627-3529 or 7-1-1 Program Evaluation Division Evaluation Staff The Program Evaluation Division was created James Nobles, Legislative Auditor within the Office of the Legislative Auditor (OLA) in 1975. The division’s mission, as set forth in law, Joel Alter is to determine the degree to which state agencies Emi Bennett and programs are accomplishing their goals and Valerie Bombach objectives and utilizing resources efficiently. Jody Hauer David Kirchner Topics for evaluations are approved by the Carrie Meyerhoff Legislative Audit Commission (LAC), which has Judith Randall equal representation from the House and Senate Sarah Roberts and the two major political parties. However, KJ Starr evaluations by the office are independently Julie Trupke-Bastidas researched by the Legislative Auditor’s professional Jo Vos staff, and reports are issued without prior review by John Yunker the commission or any other legislators. Findings, conclusions, and recommendations do not To obtain a copy of this document in an accessible necessarily reflect the views of the LAC or any of format (electronic ASCII text, Braille, large print, or its member s. audio), please call 651-296-4708. People with hearing or speech disabilities may call us through A list of recent evaluations is on the last page of Minnesota Relay by dialing 7-1-1 or 1-800-6 27-3529. this report. A more complete list is available at OLA's web site (www.auditor.leg.state.mn.us), as All OLA reports are available at our Web site: are copies of evaluation reports. http://www.auditor.leg.state.mn.us If you have comments about our work, or you want The Office of the Legislative Auditor also includes to suggest an audit, investigation, or evaluation, a Financial Audit Division, which annually please contact us at 651-296-4708 or by e-mail at conducts an audit of the state’s financial statements, [email protected] an audit of federal funds administered by the state, and approximately 40 audits of individual state agencies, boards, and commissions. The division also investigates allegations of improper actions by state officials and employees. Printed on Recycled Papeer OFFICE OF THE LEGISLATIVE AUDITOR O L A STATE OF MINNESOTA • James Nobles, Legislative Auditor January 2011 Members of the Legislative Audit Commission: Transit in the Twin Cities region has grown significantly over the past decade and, by many measures, the region’s transit system has performed well. However, the governance structure for transit in the region is far from ideal. More than 25 organizations are involved with transit planning, development, or operations in the Twin Cities region and, in some cases, their relationships are strained by overlapping responsibilities and distrust. Additionally, the lack of an agreed-upon vision and priorities for transit in the region has contributed to the transit governance challenges. The current situation has resulted in large part from the Metropolitan Council’s lack of credibility among elected officials and other regional stakeholders. Therefore, the first step toward reform should be to address the composition of the Metropolitan Council. While several approaches are possible, we recommend a Council with a mix of gubernatorial appointees and elected officials from the region. Our evaluation was conducted by Judy Randall (evaluation manager), Emi Bennett, and Julie Trupke-Bastidas. The Metropolitan Council, Counties Transit Improvement Board, Suburban Transit Association, and various other organizations cooperated fully with our evaluation. We thank them for their assistance. Sincerely, James Nobles Legislative Auditor Room 140 Centennial Building, 658 Cedar Street, St. Paul, Minnesota 55155-1603 • Tel: 651-296-4708 • Fax: 651-296-4712 E-mail: [email protected] • Web Site: www.auditor.leg.state.mn.us • Through Minnesota Relay: 1-800-627-3529 or 7-1-1 Table of Contents Page SUMMARY ix INTRODUCTION 1 1. BACKGROUND 3 Transit Modes 3 Transit Organizations 5 Governance Responsibilities 13 History of Transit in the Twin Cities Region 14 Transit Expenditures and Revenues 18 2. TRANSIT GOVERNANCE CHALLENGES AND OPTIONS 29 Principles of Effective Governance 29 Transit Governance Challenges 31 Governance Options for the Metropolitan Council 40 Other Governance Recommendations 48 3. BUS TRANSIT 53 Bus Service Overview 53 Services and Providers 56 Coordination 61 Met Council's Oversight Role 62 Funding 64 Challenges 67 Recommendations 73 4. TRANSITWAYS 77 Transitways Overview 77 Funding for Transitway Development 80 Transitway Planning and Development 81 Transitway Challenges 85 Recommendations 91 5. TRANSIT PERFORMANCE 95 Goals for Transit 95 Transit Performance Measures 97 Peer Region Comparisons 100 Intra-Regional Comparisons 116 Recommendations 122 LIST OF RECOMMENDATIONS 125 AGENCY RESPONSE: Metropolitan Council 127 vi GOVERNANCE OF TRANSIT IN THE TWIN CITIES REGION AGENCY RESPONSE: Counties Transit Improvement Board 129 AGENCY RESPONSE: Suburban Transit Association 135 RECENT PROGRAM EVALUATIONS 139 List of Tables and Figures Page TABLES 1.1 Transit Modes in the Twin Cities Region 4 1.2 Ridership by Transit Mode, 2009 5 1.3 Key Organizations with Responsibility for Transit in the Twin Cities Region 7 1.4 Transportation Advisory Board Members 10 1.5 Transit Governance Responsibilities in the Twin Cities Region, by Entity 14 1.6 Legislative Changes to Transit Governance in the Twin Cities Region, 1967-2008 17 1.7 Transit Operating Expenditures, 2005 to 2009 19 1.8 State General-Obligation Bonds for Transit, 2003-2009 26 1.9 Transit Passenger Fare Revenues, 2005 to 2009 27 2.1 Principles of Effective Transit Governance 30 2.2 Governance Structure—Status Quo 43 2.3 Governance Restructure Option 1—Staggered Terms and Metropolitan Council Members Appointed by the Governor 44 2.4 Governance Restructure Option 2—Staggered Terms and a Mix of Appointed and Elected Metropolitan Council Members 45 2.5 Governance Restructure Option 3—Staggered Terms and County Commissioners as Metropolitan Council Members 47 2.6 Governance Restructure Option 4—Metropolitan Council Members Directly Elected 48 2.7 Comparison of Metropolitan Council Governance Options 49 3.1 Suburban Transit Providers in the Twin Cities Region and Cities Served 56 3.2 Select Bus Operating Statistics for the Twin Cities Region, 2009 57 3.3 Metropolitan Council Procedures for Regional Transit Providers, 2010 64 3.4 Projected Regional Bus Transit Provider Operating Reserve Balances, Calendar Year 2011 72 4.1 Existing and Potential Transitways in the Twin Cities Region, 2010 78 4.2 Light Rail and Commuter Rail Operating Statistics, 2009 80 4.3 Transitway Capital Funding Sources 82 5.1 Transit-Related Goals in State Statutes 96 5.2 Selected Performance Measures of Transit 98 5.3 Factors Affecting the Comparability of Transit Performance Outcomes 99 5.4 Characteristics of Peer Regions and Transit Modes, 2008 101 5.5 Ridership and Miles of Service, Twin Cities Region and Peer Regions, 2008 103 5.6 Population and Access to Transit Services in the Twin Cities Region, by County, 2010 110 viii GOVERNANCE OF TRANSIT IN THE TWIN CITIES REGION 5.7 Transit-Dependent Households and Access to Transit Services in the Twin Cities Region, by County, 2010 112 5.8 Performance on Selected Measures by Transit Service Type and Provider, 2009 120 FIGURES 1.1 Jurisdictions of Various Transit Organizations in the Seven-County Twin Cities Region, 2010 8 1.2 Transit Operations Funding Sources, 2009 21 1.3 Budgeted Transit Capital Funding Sources, 2009 22 3.1 Service Areas of the Suburban Transit Providers, 2010 55 3.2 Communities in the Twin Cities Metropolitan Region Subject to the Regional Transit Capital Levy, 2011 66 4.1 Transitways in the Twin Cities Region, 2010 79 4.2 Federal “New Starts” Planning Process 83 5.1 Percentage of Ridership by Transit Mode, Twin Cities Region and Peer Regions, 2008 105 5.2 Bus Services by Route Type in the Twin Cities Region, 2009 117 5.3 Route-Type Passengers Served by Provider in the Twin Cities Region, 2009 118 Summary Major Findings: Key Recommendations: The Twin Cities region’s transit The Legislature should restructure system has performed well on most the Metropolitan Council so that it measures of efficiency, has a mix of appointed and elected effectiveness, and impact in Council members, all serving comparison with 11 peer regions. staggered terms. (pp. 41-49) (pp. 100-115) Given the current structure of the However, the governance of transit Metropolitan Council, we do not in the Twin Cities region is recommend eliminating other complex and fraught with distrust, organizations involved with transit, and coordination among the many such as the Counties Transit The region has transit organizations in the region Improvement Board or the made significant has been difficult. (pp. 31-34) Transportation Advisory Board. (pp. 51-52) advances in The Metropolitan Council’s role as transit in recent the regional transit planner has We do not recommend eliminating years, but the been hampered by how members the suburban transit providers, region’s transit are appointed; as a result of its although there are opportunities for governance structure, the Council lacks some consolidation. (p. 52) structure is far adequate credibility and accountability among stakeholders. The Metropolitan Council should from ideal. (pp. 34-35) coordinate with stakeholders to prioritize potential transitways for Additionally, there is no agreed- future development based on the upon set of priorities for transitway needs of the region. (pp. 91-92) development in the Twin Cities region, and existing Minnesota law The Legislature should amend prohibits consideration of all Minnesota law and allow potential transitways in the region.