Davidson supports massive rail transit tax increase...

Brian Jenest and John Woods

Davidson Commissioners held an hour long meeting with CATS CEO John Lewis on Tuesday afternoon to hear the sales pitch for a new rail transit study of the North Corridor.

For nearly two decades the North Corridor has been envisioned as commuter rail on the existing Norfolk Southern rail line that runs through the LKN towns.  However, Lewis explained that last year the railroad made clear in no uncertain terms that it would not be entertaining any more shared projects with passenger rail on its lines.

The above screen shot was taken at the exact moment Lewis was explaining this failure to reach an agreement with the railroad for the so called Red Line. Commissioner Brian Jenest and in particular Mayor John Woods have taken the lead in promoting the Red Line over the years.  Their position has always been something like "Oh, the railroad will eventually come around."  Clearly, that has turned out not to be the case and the above picture says it all.

So, what does Davidson's board decide to do when CATS has its hand out for more rail transit study money?  They did what they always do.  Ask softball questions before going along.

Commissioner Beth Cashion took the lead in asking Lewis a series of leading questions.  Really, her questions were more like requests for the CATS talking points on how to respond to citizens who oppose throwing good money after bad when it comes to pursuing rail transit.  Commissioner Fuller raised what seemed like might be opposition to the study by pointing out it was dependent on $6 billion in funding falling out of the sky.  Unfortunately, he failed to call Mr Lewis on the obvious flaw in his answer.

After spending a good bit of time explaining why CATS needed to re-study rail transit in the North Corridor, Lewis explained the financing in response to Commissioner Fuller's question.  In the past, rail transit projects were funded with the following formula - 50% Federal, 25% State, and 25% Local.  However, the State has since put a 10% cap on its spending towards these projects.  Lewis described this reduction in State money as a "15% gap" - minimizing the financial hole as much as possible.

The truth is that it is more like a 40% gap.

That's because the local 25% portion can not be funded out of the existing 1/2 cent transit tax here in Mecklenburg County.  There is no capacity in the existing tax to fund more rail lines.  That's the giant elephant in the room, and every single person sitting at the dias in Davidson on Tuesday knows it.

Instead of calling Mr Lewis on that misinformation, they let it slide.

The end result of the Davidson Board supporting CATS in its continuing endeavor to build more rail lines is the acceptance of higher taxes and/or gutting Davidson's tax base to support it.

That's what Davidson's Board really did by continuing to support CATS.

Playing Three Card Monte on Public-Private Partnerships for Trains

Three weeks ago we told readers about the effort by the Metropolitan Transit Commission to gain support for its upcoming legislative agenda in Raleigh. That agenda included requests for three items:


1. Legislative permission to use Public-Private Partnerships (P3s) to finance transit projects.
2. Permission to access certain Federal loan programs for transit projects.
3. Repeal of the sunset provision for existing Special Assessment District (SAD) legislation.

These items had all been presented as critical to financing future transit line development including the stalled Red Line commuter rail project.  We raised concerns about why the MTC was pushing this along so quickly - asking local commissioners to approve supporting resolutions by it's November 19th meeting.  Of particular concern was the idea of using P3s as a mechanism to finance rail development.  With all of the controversy around the P3 project for the I77 HOT Lanes, it seemed this was being rushed along too fast for the public interest.


Then something unusual happened at Davidson's board meeting on Tuesday November 11th when the resolution was to be discussed.  Two of the three critical items disappeared - the P3 and Federal loan program requests had been removed.  Only the request to remove the SAD sunset provision remained.

Davidson's Board unanimously approved the slimmed down resolution with little debate.  On Monday of this week the Huntersville and Cornelius Boards passed the same resolution 4-2 and 4-1 respectively.


So, the obvious question...

"Why was the resolution trimmed to just one item?  Specifically, how did the controversial P3 provision disappear?"


In a November 6th email on behalf of CATS CEO, Carolyn Flowers, to MTC members, Flowers had this to say regarding the authorization to use P3s to finance transit projects:


"With respect to the public private partnership (P3) position, legislation enacted in the 2013 regular session, SL 2013-401 established a statutory framework for local governments to enter into P3 arrangements. Initially, CATS staff believed the 2013-401 framework was of limited use in implementing 2030 Plan projects and we started considering a new framework.  Over time, staff understanding of what types of P3 arrangements would be utilized for 2030 Plan projects evolved to the point where it is believed SL 2013-401 will provide a sufficient framework. For this reason, the proposed public-private partnership position may be removed from the agenda."


In response to an emailed question regarding this change, Flowers said “outside counsel recently confirmed that 2013-401 can be used for any capital project, including transit infrastructure projects”.  Flowers confirmed the outside counsel was law firm Parker Poe.

Parker Poe has a long history of connections to Charlotte transportation issues.  One of its partners, Anthony Fox (no relation to US Transportation Secretary and former Charlotte Mayor Anthony Foxx) served on Charlotte's "Committee of 21" regarding local road needs.  He was also appointed by Charlotte to the proposed new Charlotte Douglas Airport commission.  Parker Poe is also the same firm where former long-time Charlotte City Attorney, Mac McCarley, went after leaving his job with the City.

Prior to receiving input from outside attorneys, there was good reason for CATS staff to not think this session law was applicable to building rail lines.  SL 2013-401 was spawned by House Bill H857.  When H857 was written, it was not intended to create law to be applied for transportation projects.  This was confirmed by Rep. DeanArp (R-Union) who was one of  H857's primary sponsors in the General Assembly.

In fact, one of the “whereas” clauses in H857 specifically states it does not impact projects administered by NCDOT, and NCDOT helps administer rail projects where State money is involved.  However, the whereas clauses of a bill only describe the intent of the bill.  They do not become part of the law itself.  H857 was intended for public buildings, not transportation infrastructure.  Somewhat ironically, according to Rep Arp it was meant to bring more transparency into the use of P3s, but he agreed in this case is sounded like the law generated from his bill was being used beyond its original intent.

In this case, the legal eagles in CATS’s employ seem to be sacrificing the spirit of the law by following the letter of the law.  For CATS and the MTC it is much easier to claim they have the authority they need, rather than going through the messy process of actually being granted that authority.  In doing so, the public is once again deprived of participating in the discussion.  As importantly, if this position stands, the Republican-led General Assembly would not have to vote on allowing CATS to use P3s for rail transit financing - bypassing an opportunity for more legislative oversight.

Regardless of how you feel about rail transit in general or the proposed Red Line specifically, we should expect more from our government agencies than a game of three cardmonte using legal loopholes to get what they want.

Like Frankenstein…It’s Alive!!!

With Halloween upon us this week, we bring you the latest transportation spending monster being planned for Mecklenburg County.  This one involves new ways to fund a project that just won’t die – the Red Line commuter rail from Charlotte to Mooresville as part of the regional 2030 Transit Plan.

The Red Line received an apparently fatal blow last June when Norfolk Southern indicated track sharing with commuter rail did not fit the long-term plans for the company’s O line corridor which would be used for the project.  However, that has not phased the mad scientists down at the Metropolitan Transit Commission (MTC) who have been hard at work coming up with new and creative ways to finance floundering rail transit efforts - including the Red Line.

Earlier this month, the road show to start gathering support in North Mecklenburg for that creative financing kicked off in Davidson.  The MTC is requesting the towns support the following as part of its 2015-2016 Legislative Agenda for the next General Assembly.  The MTC wants:

1. Authorization to use Public Private Partnerships as a financing mechanism for transit.
2. Authorization to access certain low interest Federal loan programs usable for transit infrastructure.
3. Removal of the sunset provision on Special Assessment District legislation so they can be used for long-term transit projects.

Immediately after the September MTC meeting, canned language for supporting resolutions was distributed to all of the participating towns.  The request was to have resolutions passed by the Commission's member boards by the MTC's November 19th meeting.

Of the North Mecklenburg towns, only Davidson has seen the presentation from LNTC Chairman Bill Thunberg at this point.  He is doing the road show on the MTC’s behalf.  Davidson will likely vote on any supporting resolution at its November meeting.  If Huntersville and Cornelius vote on such a resolution by the originally requested date, they would likely need to do so at the same meeting where the information is presented to their Boards.  That puts Board members in a real bind if they are trying to make an informed decision.

Giving limited time to review information is a standard tactic when trying to ram something through.  Pushing this through while most people are focused on something else - like our current elections - is also a good way to slide this by the voters.

Why would the MTC want to do this?  A couple of reasons come to mind...

Authorization of P3s for transit financing sets up the same sort of monstrous projects we are seeing with the I77 HOT Lanes.  During the entire HOT debate, elected officials have been using the fact that the NCGA "authorized" the use of P3s years ago to abdicate any responsibility for it.

The earliest plans for tolls on I77 were tiny compared to what the project has morphed into now. Authorizing P3s for transit financing without knowing how a project would take shape in the future will result in the same thing for a project like the Red Line.

The second reason to rush this through is that paying off these projects will require going outside the half cent transit tax originally approved by voters.  If this agenda goes forward, the local economy will be stuck paying for a much larger percentage of these projects than voters originally supported.  Before gutting the property tax base with tools like Tax Increment Financing and Special Assessment Districts to pay off any massive new loans from the Federal government or the P3 private partners, the MTC should have to go back to those same voters for additional approval.  You can be sure that is not something transit supporters want to do. 

At the October 14^th meeting in Davidson, Mayor Woods described supporting the MTC agenda as a “benign and routine request”.  It is anything but that, and we’ve previously seen this same kind of horror movie with this same cast.

Former Mooresville Mayor Thunberg and Davidson Mayor Woods were instrumental in pushing for the creation the money-hemorrhaging Mi-Connection cable company back in 2007.  It too was presented to the public as something that just had to be done.  Like Dr. Frankenstein himself, as Mooresville’s Mayor, Thunberg cast the tie-breaking vote that actually brought Mi-Connection to life.  It was a disastrous decision for both towns.

Now, as the LNTC Executive Director and the MTC Vice-Chairman, Thunberg and Woods are showing the same zeal in pushing for the Red Line and transit.  With that in mind, elected officials on the various town boards would be very smart to decline supporting the MTC legislative agenda.  At the very least they should not support it without a commitment to go back to the voters first on any new financing plans.

Will enough LKN commissioners oppose something destined to be more “trick” than “treat” for area residents?  We will all know soon enough.

This post originally appeared in the Herald Weekly

HOT Lanes: Disagree with Davidson Mayor John Woods? You are a liar or a scaredy cat!

We've recently been pretty rough on Davidson Mayor John Woods.  But with all his recent squashing of debate at Davidson Town Hall and colluding with the other North Mecklenburg Mayors to push the much maligned HOT Lanes project forward, it's criticism well earned.

However, his most recent quote in the Lake Norman Citizen takes the cake.  It shows an utter disdain for anyone who disagrees with him whether they be a citizen or a fellow elected official.  Referring to those who oppose the HOT Lanes plan for I77 Mayor Woods says...

 

If you ever disagree with Mayor Woods, you can be sure that he'll toss out the "misinformation" accusation at the earliest opportunity.  Tellingly, this accusation is never accompanied by exactly what the misinformation was or what the correct information should be.  He sort of just throws it out there and lets it hang in the air to color the debate.  It's nothing but a polite way to call someone a liar without using the word. 

Ironically, he has a long history of using this divisive tactic on major local issues where he's the one who turned out to be wrong.

In 2012 regarding the now sidetracked Red Line commuter rail project, John Woods had this to say in DavdisonNews.net  ...

While John Woods may think the debate is over regarding commuter rail, the actual owners of the track, Norfolk Southern, obviously would disagree.  The rail road company recently put the kibosh on track sharing in the corridor which effectively kills the project unless hundreds of millions in new funding appears, or the State gives them a sweetheart deal on their permanent use of alternative track currently owned by the North Carolina Rail Road.  Additionally, Mayor Woods himself recently said at a Community Chat in Davidson that the current financing plan for the Red Line - the financing plan he was defending in the above quoted article - is "dead"

Were those opposing the Red Line in 2012 spreading misinformation? Or were they right?

Let's go even further back in time to 2007 and we'll find, John Woods saying this to DavdisonNews.net about the oh so successful Mi-Connection deal he helped push through.

For those in Davidson who have had to suffer with the fallout of the terrible decision to enter the cable business, this one should be particularly bile inducing.  This decision pushed and supported by John Woods nearly bankrupted the town.  It has cost the town dearly in lost opportunities as millions upon millions are poured into the operation to bail out the politicians who foisted it on the citizens.

Some of the Davidson locals who opposed this disaster had experience in high finance, technology, and telecommunications.  One such person, former Mi-Connection Chairman, John Venzon, opposed the decision to create the company, but he then had the courage to step in and spend years cleaning up the mess John Woods helped create.

Again, were those opposed to this decision spreading misinformation, or were they right?

So, back to the widening of I77...

Mayor Woods has recently become the face of the HOT Lanes project among local elected officials.   He is the project's most vocal champion, and so the "misinformation" accusations start flying.  This time however, he's taking the rhetoric one step further claiming other leaders have somehow become "scared" by HOT Lanes opponents - by people who are simply asking questions and demanding information about a project that will impact their lives for decades.

Let's be clear.  The other elected officials who are questioning the project aren't scared.  They are doing their jobs to protect the citizens who elected them - a job that Mayor Woods has failed at repeatedly in the past.

Clock Runs Out on Current Red Line Finance Plan

Six weeks ago after the crossover deadline aShortChronicle reported on some quiet last minute help for the Red Line Regional Rail project from the NC Legislature  That help came in the form of S103 which would have extended the sunset provision on legislation critical to the Red Line, legislation that would allow Special Assessment Districts to fund a significant portion of the project.  See Red Line project gets quiet boost from Raleigh. More to come? for the details.

S103 barely met the deadline at crossover but appears to have come up shy in the NC House.  After an interesting series of events last Thursday evening, it now appears the sunset provision will trigger and the SAD legislation will expire as scheduled on July 1, 2013.

In the second reading of the bill on the House floor Thursday afternoon, the bill passed 95-14 at 4:59pm.  That would have possibly set the bill up for a third reading and final passage the following Monday, July 1st - the deadline date.  However, after what appears to be a flurry of activity, a motion to reconsider the second reading was brought to the floor and passed at 6:55pm by a vote of 74-14.  The bill was then sent back to the Finance Committee which effectively meant there would be no third reading by the deadline date.  However, when Speaker Tillis put the NC House "on ice" next week for all other business so the legislature can focus on the budget, that sealed the deal (or put the nail in the coffin) on S103 passing before the deadline.

As part of that flurry of activity which lead up to the reconsidering of the 2nd reading, aShortChronicle has learned from a source in Raleigh, that many legislators were informed Thursday of the impacts of passing this legislation with regards to the Red Line.  Many apparently were not aware that if this sunset provision were extended, one of its first uses would be to fund the Red Line, a project requiring a huge additional chunk of State money.  As a way to validate what this source was saying, aShortChronicle can confirm that the story from this site linked above received over 3 dozen page views between the hours of 5-7 PM Thursday evening - at exactly the time this bill was being debated.

While we're glad this site could help spread the word on what this legislation would really do and we're glad the legislature stalled it for the time being, we hope those same legislators won't let this same bill slip through in some other fashion.  Even if  S103 is now incapable of extending the sunset for these Special Assessment Districts, the same law could be reinstated as an amendment to some other bill during this legislature.

Lawmakers need to remain vigilant to ensure that does not happen.

Davidson Town Board Meeting from the Twitterverse

Tuesday evening's Davidson Town Board Meeting 

6:05PM...
@TownofDavidson monthly work session underway... #Davidson

@TownofDavidson #Davidson Q3 building permits double what they were last year.

@TownofDavidson wins "Great Main Streets" award from NC Chapter Amer Planning Assoc #Davidson 1of5 winners http://yfrog.com/oe42qmmbj 

@TownofDavidson #Davidson Mayor Woods accepting Great Main Street award... http://yfrog.com/obuo7avsj 

6:26PM
@TownofDavidson #Davidson Mayor Woods updates on Red Line...Preparing White Paper Rpt encouraging Norfolk Southern to engage in P3 project.

@TownofDavidson #Davidson...Proposed White Paper to be paid for by Charlotte. Hope is it will replace capacity study by Norfolk Southern


// Capacity study now on hold according to Mayor Woods.  This "white paper" seen as way to move project forward.  Commissioner Venzon asked about how this paper would replace the capacity study.  Mayor Woods seemed to imply that there were other reasons for Norfolk Southern balking at project other than just running freight and passenger rail on the same track.

@TownofDavidson #Davidson Mayor Woods update on transit funding report..."we're not going away"..."TIF the entire system"..."assessment districts"

@TownofDavidson #Davidson Comm Jenest on "spirited" MUMPO mtg last week...descibes HOT decision as "just moving project to next step"

6:43pm
@TownofDavidson #Davidson Affordable Housing update...hand picked jumpstart committee made up of developers and real-estate pros

@TownofDavidson #Davidson Affordable Housing program has no wait list for purchase but does have one for rental.

@TownofDavidson #Davidson Comm Wessner sees risk in discussing this turning into complaining about program as a whole

@TownofDavidson #Davidson Affordable Housing...most new & resale houses are moved past 60day threshold - open to buyers not mtg income lvls

@TownofDavidson #Davidson New Neighborhood has successful Afford Housing...built voluntarily, not b/c of Town ordinance - ironic

@TownofDavidson #Davidson Affordable Housing meeting w/ developers tomorrow, 5/28. Comm Wessner notes concern public will react negatively

@TownofDavidson #Davidson Afford Housing rules didnt apply to recent vote on Senior living facility @ exit 30 b/c they don't have kitchens

//This was an interesting discussion.  Many of the Commissioner's comments were addressed at managing the public's interpretation of what it means that this is even a topic of conversation.  There was concern that even talking about the affordable housing program would be interpreted as a lack of support for the program.  Much concern that getting developer input would be looked down upon by some in town.  They made it clear discussing this does not mean a lack of support.  Hard to say what support should look like considering that the program has no waiting list for the vast majority of the housing that developers are being required to build.  Getting developer input would seem appropriate under these circumstances.

7:11 PM
@TownofDavidson econ dev update... 137 MSC people transfering to #Davidson. Will be a big influx of new families to the area.

@TownofDavidson #Davidson retail attraction strategy...Jj Wade bldg for retail and Pickled Peach, sandwhich shop tentative for 7/1

@TownofDavidson #Davidson Summit Coffee was tentative for tonight on CNBC...has been put off.

//See DavidsonNews.net story here.

7:17pm
@TownofDavidson #Davidson Communications Update..."request tracker"...citizens can submit requests 24/7!!! goto http://townofdavidson.org/report 

@TownofDavidson #Davidson Request Tracker SLA frm immediate 4 emergencies upto 14 working days for non-safety issues. curr usage: 1-2 per wk

@TownofDavidson #Davidson Myr Woods voices concern doesnt lead 2 losing "small town personal feel" (could say same for the digital kiosks in the budget)

@TownofDavidson #Davidson Mayor Woods announces anonymous grant he negotiated for funding additional pedestrian flags for pedestrian safety

@TownofDavidson ... open meeting adjourne, heading into closed session #Davidson

7:35PM

Red Line project gets quiet boost from Raleigh. More to come?

Earlier this month, aShortChronicle reported on a statement by a reporter at a May 5th press conference on the I-77 Hot Lanes.  That statement was "the folks in Davidson were told, 'get behind us and we'll do the Red Line'".   (See  "Threats, promises, and holes in the HOT lanes dike..." for the full story.)

That statement was made as part of a question asked by Israel Balderas, formerly of WCCB Charlotte.  One week after this press conference it was announced that Balderas no longer worked for the station.

In the days following that press conference and after this post on the WidenI77.org website, there was a spirited back and forth via email between Davidson Board members and WidenI77.org.  Both aShortChronicle and DavdisonNews.net were copied on the email exchanges.  In those exchanges, two Davidson Commissioners strongly pushed back on the insinuation that there was any horse trading going on regarding the toll lanes and the Red Line.  (While these emails are public records open for anyone to see, the Commissioners' names will be omitted here since they were not asked for a quote.)  That push back resulted in updates to the WidenI77.org blog post retracting the direct implication that Davidson made a direct trade for its HOT Lane support.  WidenI77.org also requested a similar apology from Davidson's Mayor John Woods for accusatory statements he made during a recent interview claiming that those who oppose the HOT Lanes are spreading "misinformation" and causing "confusion" and "hysteria".

All of this just provides background for what happened last week and will happen this coming week.

At last Tuesday's Davidson Town Board meeting, Commissioners expressed unanimous support for the HOT lanes - sending Commissioner Jenest to the 5/22 MUMPO meeting with instructions to support the toll lanes.  (See "Davidson voices support for toll lanes" from the latest Huntersville Herald.)

Earlier that same day at the NC General Assembly, legislation that impacts the Red Line started to move, racing to beat two deadlines.  Senate bills S103 and S104 were combined into a single bill to update the rules around Special Assessment Districts and to extend the sunset for the existing SAD legislation.  The combined legislation under Version 2 of S103 sped through the State Senate during what is called "cross-over" week to beat the first legislative deadline and passed the Senate on 5/16.  This deadline is critical because bills that have not passed one chamber of the NCGA by cross-over are effectively dead for the next 2 years.  Passing the NC Senate allows the second Red Line deadline a chance to be met.  If the NC House now approves S103 and it becomes law before June 30th, the SAD sunset clause will be extended for another 2 years.  This extension is absolutely critical to the current Red Line financing plan.

This coming week events will take place that affect both the HOT Lanes and the Red Line. 

On Tuesday, 5/22, MUMPO will vote on amending the region's Long Range Transportation Plan (LRTP) and the Transportation Improvement Plan (TIP) with language supporting the HOT Lanes project.  The meeting agenda can be found here.  Ironically, the education session before this meeting will be on the legislation "now pending in the General Assembly that, if enacted, will significantly change the way transportation projects are funded. Potential impacts of the legislation will be discussed."  This refers to Governor McCrory's new transportation plan.  The irony is that immediately after learning about legislation which could impact funding for projects like widening I-77, MUMPO member are expected to vote on a plan based on what will likely be old and out of date rules within a few months.   

Also on Tuesday, the Metropolitan Transportation Commission (MTC) will receive the results of a blue ribbon panel that has been compiling ways to find more money for the region's rail transit plans.  One of the proposals according to previous reports here and here is to request an additional 1/2 cent transit tax - something that requires General Assembly approval to even put on the ballot.  While the number one problem for the Red Line at the moment may be Norfolk Southern, in the long term more money is needed, and the recommendations from this panel along with any NCGA approvals is where it will be found

Citizens should take Davidson's commissioners at their word when they state there has been no direct horse trading on the Red line for HOT lanes support.  However, there is no denying that Raleigh is already moving to support the Red Line and that the Red Line will need more support from the NCGA in the future if the project is to go forward.  When Davidson casts its vote to support HOT lanes on Tuesday, the Town certainly will not be rocking the political boat in any way that could hurt the chances for its most favorite project - the Red Line.

Bonus Observation:  The political waters are continuing to swirl for the I-77 HOT lanes as more local politicians come out of the woodwork to openly oppose the project.  See the most recent Charlotte Observer article here.  As was stated in the post about the May 5th press conference, this is going to get messier before it is all over.

Consultants, consultants, everywhere... Is North Carolina transportation decision making beholden to big consulting?

Insanity: doing the same thing over and over again and expecting different results. - Albert Einstein

Big Government, like Big Business, often uses consultants in large decision making and project delivery efforts.  Consultants bring expertise as well as additional manpower to the table.  They certainly can be useful.  However, there are two big differences between when the private sector brings in consultants and when government enlists their services.

The private sector is risking its own money on projects, and those hiring the consultants usually have a high degree of expertise in the subject area themselves.  Conversely, when government uses consultants public tax dollars are at risk, and the decision-makers, meaning the politicians, often have very limited experience in the subject matter being decisioned.

In the end, the consultants advising the public sector have very little at risk, but they can have a huge influence on how decisions get made due to their "expertise".  When things go wrong, it's the citizens who are left holding the bag.  To know this is true, one has to look no further than the disastrous Mi-Connection decision by Mooresville and Davidson  to enter the local cable business - a decision strongly driven by the advise of consultants.

We all know how that turned out.

The promises of easy money and overflowing town coffers quickly turned into annual subsidies and higher taxes and fees.  In fact, the advise seemed so bad that questions were eventually asked about whether or not the consultants could be held accountable. See Did consultants cause Mi-Connection fairy tale?

However, the $90 million Mi-Connection purchase is dwarfed by other proposed local projects being heavily influenced by consultants.  Those are the massive projects being proposed for the Charlotte region's transportation infrastructure including rail transit lines and the much covered topic of HOT lanes.  Combined, these projects total nearly $1 billion in proposed public spending.

In the realm of transportation projects, consultants from the large to the small can be found all across the spectrum of the decision making process - from assessments, to financial planning, to even the political process.  One company, Parsons Brinckerhoff, comes up repeatedly on local projects, but they are hardly alone.  And there is no reason to believe that if it wasn't this company that some other would not take its place.  Remember, the politicians who make the decisions often do not have the required expertise to do so. They will seek out advice and there are countless consulting operations ready and willing to provide their services.

What follows is a brief outline of how one company, Parsons Brinckerhoff and its "alumni" have been involved in Charlotte's transportation decision making.  This information is all available online.  It's not secret.  Yet, for some reason our local politicians keep going back to the same people even though the record is less than stellar.

Parsons Brinckerhoff's involvement in CharMeck transportation planning goes back to at least 1998.  That year, the company was involved in creating the 2025 Integrated Transit/Land Use Plan for CharlotteMecklenburg. (See page 12)  This is the plan which would utilize the revenues from the 1/2- cent transit tax implemented by referendum in that same year.  In what would soon become painful irony, this plan actually won an award in 1999 at the Las Vegas convention of the Institute of Transportation Engineers. (See page 26)

Within a few years though, things began to unravel for the finances behind the plan.  This article originally published in the Charlotte Observer outlines how the costs of the plan began to explode.  See "Price tag of transit is soaring".  One of the significant reasons for the increases was due to not including inflation in the original plan - the plan put together by Parsons Brinckerhoff.  One of the other reasons for the increased costs was the decision to significantly expanded bus service.  That decision according to this article was driven by then CATS chieftain, Ron Tober.

Eventually, the South Corridor opened in late 2007.   However, that was not before surviving a referendum to repeal the transit tax, an effort launched due to the project's massive cost overruns.  The tax surviving the referendum was due in no small part to the efforts of Parsons Brinckerhoff.  The company was a significant donor to the Save the Transit Tax effort, contributing $30,000 to the cause. (See Follow the Money. Transit. - MeckDeck.com)  Also, one of the company's alumni, a Mr Alan Wulkan, helped coordinate efforts to rally support for the tax through contacting DSS.  Mr Wulkan was working at the time through his own consulting firm, InfraConsult  (See Who is Alan Wulkan? -MeckDeck.com.)

Ultimately, the transit tax was "saved" in November 2007.  Plans for future spending stayed on track.  However, the pro-transit side was not without its casualties.  Ron Tober, the CATS boss at the time, announced his  "retirement" before the referendum.  Was he a scapegoat? Maybe. But, as you'll see he lands on his feet.

Fast forward a few years.  The economic downturn hits.  Transit plans go into hibernation.

However, eventually things get back to "normal."

Normal starts with the Red Line Commuter rail project.

The travails of this project have been covered extensively in these pages under "The Red Line Chronicle".  One area that has not been covered yet involves the consultants which have been driving the project forward over the past couple of years.  Not surprisingly, once again Parsons Brinckerhoff connections frequently come into play.  It's no secret that Mark Briggs, the project's primary expert on public private partnerships (P3), currently works for PB.  What may be less well known is that all of the project's consultants have done stints at PB.  Katherine Henderson of KKH Consulting as well as former consultant and eventual NCDOT Deputy Secretary for Transit, Paul Morris, also worked at PB.  Incidentally, all three also worked for the Raleigh-based real-estate investment group, Cherokee Investment Partners.

If you are interested in watching for more on the long-standing ties between PB and the Red Line, here is a video of PB's Mark Briggs and Mayor John Woods from the Town of Davidson sitting down for an interview on the project with The Davidson Think Tank, at Davidson College.  It's worth watching.

It's safe to say, the Red Line Regional Rail project would not exist in its current form without the strong influence of consultants - all with links the same company.  The beauty of this for them is that as long as this project stays on life support, consultants will have more work to do.  If the project eventually stops altogether, they will have already collected their fees.

This brings us to the HOT lanes on I77, the second massive project underway in the region.  This has already been covered here and in most of the local professional media.  There's no need to go into its details other than to say the experts on tolling at PB have been hard at work once again.  It is fare to say they truly are the experts.  This article outlines their experience in the field and includes a reference to the I77 project.  A quick google search shows the company has been involved for quite some time on the project.  Here's a reference from 2010, and there are multiple references to Parsons Brinckerhoff speakers featured at local meetings on the project.  Many of these meetings have been conducted to push back on the efforts of the WidenI77.org citizen activist group that has been gaining traction recently in its opposition to HOT lanes.  Parsons Brinckerhoff consultant, David Ungemah, has been a frequent speaker at these meetings.

So, why is all of this important?  Why bring this up now?  As always, the answer is money.

Currently, the Charlotte Mecklenburg transportation plan is broke.  It's busted.  It's  "at least $3 billion short" according to one consultant (not Parsons Brinckerhoff by the way) and that's just the mass transit plan.  That's not even including roads.  That's $3 billion short off the plan PB developed 15 years ago back in 1998.

To remedy this problem guess who has been brought in to help come up with a new plan? 

Ron Tober, now with Parsons Brinckerhoff, that's who - along with David Ungemah.

As mentioned earlier, Ron Tober, the former CATS executive who oversaw the build of the South Corridor and its huge cost overruns, landed on his feet.  In this article he laments that his departure from CATS in 2007 was driven by “vicious and mean-spirited” attacks.  Now, he returns as a member of the consulting firm which has benefited greatly from helping save the transit tax.  Even more telling may be something on Mr Tober's Linked In profile.  His first foray into the private sector after leaving CATS appears to have been with InfraConsult.  The same consultants that helped "save" the transit tax in 2007 by contacting Mecklenburg DSS to figure out how to convince the elderly to vote for the tax.

Was Mr Tober a scapegoat in 2007?  Maybe.  But it seems more like a case of like minded people taking care of their own.

Now, Mr Tober is back as part of a funding work group charged with coming up with a plan to raise more money for Charlotte transit plans.  See this article from the Charlotte Business Journal for the details. 

However, he is not alone.  As mentioned PB's David Ungemah is also helping beat the bushes for more transportation funding.  He was a scheduled speaker at last Friday's Charlotte Chamber 2013 Transportation Summit speaking on the topic of "Innovation Meets Revenue Generation".

So, here we have the same company which developed Charlotte's mass transit plan 15 years ago - a plan that was woefully optimistic - coming back to help solve the financing problem.  One of those people is someone who left after overseeing a project with massive cost overruns.  The idea never seems to occur to anyone with any real authority, elected or otherwise, that the plan may just be a bad plan.  And finally, the same consultants who put together this plan for mass transit are now being heavily involved in promoting an "innovative" solution to our road congestion problems.

Insanity: doing the same thing over and over again and expecting different results.

The question has to be asked.  Are we insane?

UPDATE: Here's the CBJ's new article on Ron Tober's return to Charlotte transit as a PB consultant.

UPDATED: Shakeup at NCDOT. Will it affect the Red Line?

In case you missed it, the shakeup at NCDOT has begun with Deputy Secretary for Transit, Paul Morris, being one of its first casualties.  Hat tip to the Daily Haymaker blog for picking up on this one.

As mentioned previously, Paul Morris's fate at NCDOT could be a harbinger of things to come with the Red Line project.  Mr Morris was brought onto the project by NCDOT as a consultant to get the project off of life support and then managed to work his way into a cabinet level appointment.  His experience working for well-connected outfits like Parsons Brinckerhoff and Cherokee Investment Partners certainly couldn't have hurt that meteoric rise, and I'm guessing having Deputy Secretary for Transit on his resume won't hurt either as he eases back into the private sector.

How his departure affects the project remains to be seen.  In light of events earlier this week with the introduction of pro-Red Line legislation at the General Assembly, the jury is still out on where this train ride is headed.

UPDATE: Other Links to story line...

Paul Morris will be replaced by Richard Walls per the Triangle Business Journal.  A quick review of Mr Walls previous employers shows that the new Dep Sec Transit may be no different than the old Dep Sec Transit - big-time consulting background, former employers involved in issues, more sure to come on this one...

NCDOT undergoes organizational changes - Railway Track & Structures

NCDOT leadership gets total makeover -Triangle Business Journal

The Fix is in for the Red Line - Senator Tarte Throws Support To Red Line Enabling Legislation

This is becoming a trend with our North Meck pols and transportation issues.

In another case of watch what they, not what they say...

Today, as one of his first major acts as the North Mecklenburg Senator, Jeff Tarte added his name to the list of sponsors for Senate Bill 103 mentioned here yesterday.  If there were any doubts that this bill is intended to support the Red Line, this should put them to rest.

You can't say you weren't warned.

Way back during last year's  primary campaign for NC Senate 41, then Candidate Tarte's inconsistency on this issue was pointed out here - Dueling Press Releases In NC Senate 41 Race Reveal Inconsistency For One Candidate.

Red Line Enabling Legislation Submitted

Well that didn't take long!

As was reported in the January 18th post, Red Line Lobbying Picks Back Up, readers of aShortChronicle were reminded to keep an eye out for this legislation, and today it arrived.  With the new Republican led General Assembly barely 3 weeks old, a pair of bills were submitted today, which if passed, significantly enable the spending of over $450 million North Carolina tax dollars on the Red Line Regional Rail project in Mecklenburg County.

The enabling legislation comes in the form of Senate Bills 103 and 104 introduced by Republicans Fletcher Hartsell (R-Cabarrus), Wesley Meredith (R-Cumberland), with S103 now also sponsored by Jeff Tarte (R-Mecklenburg) (Sen Tarte added 2/20. See update below).

The bills seem innocuous enough on their own.   S103 slightly modifies the existing law which allows special assessments for "critical infrastructure" to be levied when a petition is signed by a majority of property owners in the assessed area.  Furthermore, these property owners must represent a super majority (66%) of the assessed value in the Special Assessment District (SAD).  The change in S103 actually makes the "voting" process in this law more fair.  S104 eliminates the current sunset provision on the legislation.  That date is July 1st of this year.

What is not so innocuous is how this legislation will be used to support the Red Line project if passed as-is.

The Red Line is a $450 million project, and this legislation will provide about 1/4 of the required funding via a complex SAD.  The remaining funds come from other pools of money - NCDOT funds, Charlotte Transit Tax dollars, and a TIF that will consume nearly all of the incremental tax revenue generated near the rail line.  However, this Special Assessment District funding is absolutely KEY. Without it, there is no Red Line financing plan.  Effectively, votes for S103 and S104 are votes to allow the spending of all this other money as well.

Also, as has been covered extensively in The Red Line Chronicle page, SAD and TIF financing mechanisms are attractive for this project precisely because they do not require direct voter approval.  That's hardly a very small-d democratic approach to spending this kind of money.

So what should legislators do?

If they are concerned at all about paying more that just lip service to out of control spending, they should take steps to ensure this legislation does not open the door to spending hundreds of millions on a project like the Red Line.  Capping the amount of funding supported by these SADs would be a good start.

UPDATE 2/20 - If there were any doubts that this bill is intended to support the Red Line, Senator Tarte adding his name to the list of sponsors should put them to rest. However, this should not be a surprise.  Way back during last year's primary campaign for NC Senate 41, then Candidate Tarte's inconsistency on the Red Line was pointed out here - Dueling Press Releases In NC Senate 41 Race Reveal Inconsistency For One Candidate.

Charlotte Streetcar...a real "threat" from Governor Pat or just kabuki theater?

From Thursday's Charlotte Observer...

Gov. McCrory warns streetcar could risk light rail money

and Friday at WCNC...

Council Members to Gov. McCrory: Wait, was that a threat?

Call me a cynic, but people need to remember that this is politics.  What you see is not always what is really going on.  To think that Governor Pat McCrory is going to let anything derail the Blue Line Extension is fantasy.

Governor Pat is and always has been a mass transit supporter in all its forms and at all costs.  Between his two runs for the Governor's mansion he spent his time lobbying for higher transit taxes elsewhere around the country.  See here for an example as recently as 2011 from our neighbors to the south in Atlanta.

As was pointed out in the above CO article, Governor Pat has in the past supported going outside the Mecklenburg County transit tax in support of the Red Line.  Also true is the fact that backing out now on the Blue Line Extension is highly unlikely with the Full Funding Grant Agreement in place.  Finally, the newly preferred way to build infrastructure for NC Republican appears to be increased use of local funds rather than more State funds.

The Red Line plan, the Charlotte Streetcar plan, and the I77 HOT lanes plan are ALL following this model.

Here's how this very likely could play out.  Governor Pat's "threat" causes the Charlotte City Council which is dominated by Democrats to reflexively vote to put Streetcar funding in a future CIP simply because a Republican "threatened" them.  That gets the Streetcar moving again - accomplishing the real goal of the so called "threat".  Governor Pat feigns outrage, but nothing happens to the BLE.  

The other projects go forward as well following the additional local funding model.  Much of the time this will be done without even asking the voters.  My guess is that at some point they will actually use the Charlotte Streetcar as the example of how local funding works to support these other efforts.

There is one way to know if the above is possibly not the case.  As the NCDOT reorganizes under the new Transportation Secretary (Tony Tata), if Paul Morris keeps his job as DepSec for Transit that can be taken as a sign it's going to be full speed ahead and business as usual.  If he is replaced, then maybe there is a course correction in the works when it comes to building trains.

Until we know what happens at NCDOT, this is all just kabuki theater.