ANNUAL REPORT 2015 SHAPING TOMORROW TABLE OF CONTENTS LETTERS TO THE COMMUNITY 3 BOARDS & COMMITTEES 7 POWERED BY PEOPLE 10 IT’S BLUE SKIES FOR THE BLUE LINE 15 THE FUTURE IS NOW 20 FAST FACTS 21 FINANCIAL SUMMARY 22 1 MISSION To improve the quality of life for everyone in the greater Charlotte region by providing outstanding community-wide public transportation services while proactively contributing to focused growth and sustainable regional development. 2 LETTERS TO THE COMMUNITY 3 LETTERS TO THE COMMUNITY WE’RE DRIVING THE FUTURE, TODAY A message from MTC Chair and Charlotte Mayor, Daniel Clodfelter 2015 marked an additional hours of bus service. In addition, MTC policies eventful year for CATS recommend a fare increase every two years to ensure and the Metropolitan that fare revenues keep pace with inflation and reflect a Transit Commission fair-share contribution by riders to the costs of operating (MTC), as we worked to the transit system. MTC members approved a proposed advance transportation 20-cent fare increase which was effective July 1, 2014. choices and transit- oriented development in To keep us on track to realize our vision, the MTC also Charlotte. unanimously approved the 2015 federal legislative agenda. The agenda’s emphasis for 2015 included Planning for tomorrow continuation of federal resources for the build-out of starts with maximizing the 2030 Transit Corridor System Plan and supporting the opportunities we reauthorization of the federal surface transportation have today. In 2015, program. MTC Chair and Charlotte the MTC used our most Mayor, Daniel Clodfelter important capital – new Additionally, the MTC supported the City Manager ideas and relationships – in tapping a new leader for the largest transit system to shape a bright future for rapid transit and light rail in between Atlanta and Washington, DC. After an intensive the Charlotte region. search, CATS welcomed John M. Lewis as the new Chief Executive Officer. His leadership will be critical as we CATS has continued to build out the LYNX Blue Line complete the LYNX Blue Line Extension, the LYNX Blue Extension, which upon completion will connect South Line Station Capacity Project, start phase two of the Charlotte through Center City and out to the University CityLYNX Gold Line and improve our overall service. area. 2015 also brought the opening of the first phase of CityLYNX Gold Line, the city’s vision to connect east Throughout the year, the MTC was challenged to think Charlotte and west Charlotte while also linking to all differently on how to seek innovative partnerships with current and future rapid transit lines. The city also the private sector to advance the 2030 Transit Corridor solidified our transit-development partnership with System Plan. Moving forward, the city must work closely NCDOT and USDOT for the critical infrastructure to with regional local governments and state officials to support the Charlotte Gateway Station project through develop strategies that empower us to implement public- the award of a TIGER grant from USDOT. private partnerships locally and seek creative financing that leverages existing public investment. Our ongoing financial reality – that municipal, state and federal governments continue to operate under I have no doubt that with the right partners and constrained budgets – compels us to make the most unwavering commitment we can reach our goal of a of every funding opportunity. The MTC approved the comprehensive, prosperous regional transit system FY2016-2017 Transit Operating Budget and the FY2016- that supports job creation, sustainability, and economic 2020 Community Investment Plan. The Operating development, while also meeting the daily mobility Budget reflects a modest sales tax recovery, includes needs of our residents and visitors. operation of the CityLYNX Gold Line service, and 5,000 4 GREAT IDEAS ARE MOVING FORWARD A message from CATS CEO, John Lewis, Jr. Let me begin by spring, and we began construction on the retaining thanking everyone for walls, bridges, and roadbeds. We also received four the warm welcome I new light rail vehicles; and each vehicle successfully have received since completed their 1,000 miles of testing. beginning my journey as the new CATS Chief In July 2014, we began the construction phase Executive Officer. of the LYNX Blue Line Station Capacity Project. It’s been a smooth CATS and the City of Charlotte received an $18 transition, and I want million Transportation Investment Generating to thank Interim CEO, Economic Recovery III (TIGER III) grant from the John Muth for his U.S. Department of Transportation for capacity role in guiding the enhancements along the LYNX Blue Line, increasing organization over the the number of power substations and lengthening last eight months of some platforms to accommodate three-car trains. CATS CEO, John Lewis, Jr. FY15. We anticipate having this project completed by early 2016. I’m pleased to report that your transit system has enjoyed many successes, approvals and accolades Our partners in the City of Charlotte’s Engineering since our last annual report. We have passed some and Property Management Division continued to exciting milestones in fulfilling the promise made in advance the CityLYNX Gold Line Streetcar Project. 1998 – to shape the Charlotte area’s future around Phase I, which operates from Time Warner Cable more efficient, accessible, and wide-ranging transit Arena to Novant Health Presbyterian Hospital, that greatly contributes to the quality of life. experienced some construction delays, but through an aggressive recovery schedule we were able to The Blue Line Extension, from Seventh Street get back on track and began testing in March. The in Uptown to UNC-Charlotte, kept pace with its CityLYNX Gold Line service went through a series of promise for progress as we continued to advance safety tests, certifications, and simulated operations the project and maintain the schedule and budget. as we prepared to launch the service in early FY15. Major utility relocations were completed by early 5 Looking to the future, we continued to seek funding CATS received FTA Region 4’s Superstar Award opportunities to advance the next phase of the for a transit agency consistently demonstrating CityLYNX Gold Line. In February, we received outstanding transit service in an area with a notification from the FTA that Phase II of this project population over 200,000. This award reflects our was earmarked for $75 million in Small Starts excellence in bus, paratransit, light rail, and vanpool Funding. This represents a 50 percent federal services and reflected CATS’ expansion projects, share for the Phase 2 extension of the Streetcar including light rail expansion and streetcar service Project. The City of Charlotte is funding the $75 initiation. Congratulations to all our employees and million local share of the $150 million project. contractors for their dedicated work. Staff also started the public process to review and There’s no doubt last year’s enthusiasm, hard develop an alignment for the Southeast Corridor/ work and innovative thinking propelled us in the LYNX Silver Line. The study officially began in directions we needed to go. To get from here to February with public meetings scheduled for early there, it will take all of us working together to cast FY16. The study is anticipated to be complete by the die, model our ideals, and strategically shape the end of June 2016. CATS’ legacy far into the future. As the year flew by, the MTC approved the FY2016-17 Operating Budget and FY16-2020 Community Investment Program (CIP). Both were affected by, BLE construction, implementation of Phase I of the CityLYNX Gold Line Streetcar service, and our recently assumed management of the Charlotte Transportation Center. Despite reductions in key sources of income and fluctuating fuel costs, we continued to recover financially from the recession, focusing on maximizing assets and providing core services to the community. 6 BOARDS AND COMMITTEES Metropolitan Transit Commission The Metropolitan Transit Commission (MTC) is CATS’ governing board and is responsible for reviewing and recommending all long-range public transportation plans. The MTC reviews the transit system’s operating and capital programs and sets policies that guide the transit system’s use of public monies. The MTC is composed of voting and non-voting members. The voting members are the mayors and managers of the City of Charlotte; Mecklenburg County; and the six towns in Mecklenburg County: Cornelius, Davidson, Huntersville, Matthews, Mint Hill and Pineville; and a board member from the North Carolina Department of Transportation. To ensure regional involvement, the MTC includes five non-voting members representing local governments outside of Mecklenburg County and one non-voting member from the South Carolina Department of Transportation. Pictured from left: Jill Swain, Mayor of Huntersville; Bill Thunberg, Lake Norman Transportation Commission; John Woods, Mayor of Davidson; Daniel Clodfelter, Mayor of Charlotte; Ralph Messera, Matthews Designee; Dena Diorio, Mecklenburg County Manager; and Chuck Travis, Mayor of Cornelius. Not Pictured: Trevor Fuller, MTC Chairman and Mecklenburg County Commission Chairman; Anthony Roberts, Cornelius Town Administrator; Greg Ferguson, Huntersville Town Manager; Hazen Blodgett, Matthews Town Manager; Ted Biggers, Mayor of Mint Hill; Brian Welch, Mint Hill Town Manager; Jack Edward, Mayor of Pineville; Hayes Brigman, Pineville Town Administrator;