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mr.x
March 8th, 2007, 07:06 AM
FALCON TO RADICALLY CHANGE TRANSLINK MANAGEMENT

Canada.com | March 07, 2007

VICTORIA — The provincial government will radically alter the management of public transit and roadways in the Lower Mainland by scrapping the current TransLink transportation authority that it has called “dysfunctional.”

In the next few weeks B.C. Transportation Minister Kevin Falcon will introduce sweeping legislation that will create a “Council of Mayors”, who will be asked to oversee all transit decisions. The government will tell the mayors to come up with a 10-year, integrated plan for an area stretching from Pemberton to Chilliwack.

In a news conference Thursday, Falcon will also say that to make sure that bold plan actually happens, the government will also create a 11-member, full-time “Professional Board” with the expertise in law, accounting, finance and transit planning to oversee the system’s management on a day-to-day basis.

A report commissioned by a panel appointed by the government has found that under the current situation, TransLink would chalk up a $200-million deficit annually by 2013. The new government plan would end that sea of red ink by giving the TransLink authority new revenue streams. It is also contemplating allowing the authority to develop land around rail stations and major transit hubs, not unlike private transit companies in Hong Kong, to cash in on the lucrative spike in real estate that usually happens when transit is developed.

To keep TransLink from being too ambitious in the costs it passes along to the public, however, the government will set up an “Independent Commissioner” to review such things as fare hikes and make sure that local land-use plans are followed.

The TransLink board that now exists will stay in place until the new legislation takes effect, in the autumn.

The government’s move follows years of tension between the province and local governments, who are often at odds about how, where and when to build up transportation infrastructure.

Set up by the New Democratic Party in 1999, theoretically to give local government more say and independence on the planning of transportation and mass transit, TransLink has always been conflicted, caught between local politics and the demands of the province.

The NDP government, for example, had to overrule TranslLnk's attempts to impose a vehicle levy -that is tolls - as a source off revenue for the new projects it was supposed to build. The Liberals have similarly intervened, such as when Falcon scuttled TransLink’s suggestion of tolls on existing infrastructure as a way to pay for new projects.

But that leaves TransLink in a bind.

How can it raise money for projects, such as the $970 million Evergreen light rail line from Burnaby to Coquitlam, without major new revenue streams?

TransLink, for example, was more than $400 million short for the Evergreen line but the provincial government would not pump in more money, suggesting that a private-public partnership — the so-called P3s — was the way to raise the needed funds.

TransLink -- officially, the Greater Vancouver Transportation Authority -- manages the transit stem, some provincial highways and bridges as well as major municipal roads that carry traffic across municipal boundaries.

It had a major long-term expansion strategy including a major bus fleet expansion, several new rapid transit lines and a lot of regional road improvements.

Operations were to be funded from fares, the share of property taxes that used to go to hospitals, a share of provincial fuel taxes, a small levy on Hydro bills and -- potentially -- a few other things like parking taxes.

Major expansion was to be paid for from a new vehicle levy - about $70 a year - on every motor vehicle in the region. But the vehicle levy was political dynamite and a lot of local politicians, especially in Surrey, fought against it.

It never got implemented.

The province dithered for a time, then the NDP government backed away from the issue in the run-up to the 2001 election. That forced TransLink into drastic cutbacks on an expansion program it had already begun, and led directly to a long transit strike in 2001.

That cost George Puil, TransLink's founding chairman, his seat on Vancouver council the next municipal election when public anger over the strike was directed at him.

Nothing has ever surfaced to replace the vehicle levy.

Consequently TransLink is far behind on plans to expand the bus fleet, build more rapid transit, and carry out more maintenance work.

TransLink maintains it has done well under difficult circumstances.

But Falcon, who believes that TransLink is parochial and poorly run, has expressed little patience. Here’s what he said in a recent Vancouver Sun Interview:

"With the current fiscal plan that TransLink has in place today and the current projects they have in the pipeline, they are going to start significant deficits in '09, and they will essentially be bankrupt by 2012.

So the whole organization is not financially sustainable.

“They can't go forward like this,” he added. “They're lurching forward, adding new projects without putting the financing mechanisms into place, and they run off and do things like parking stall taxes etc., and it's a combination . . . that is filling the public with a deep sense of unease and lack of confidence in their ability to carry these things forward."

But the province, which prefers not to be directly linked to the thorny issues of solving gridlock and fixing eroding infrastructure, has also never really engaged fully with TransLink.

There are supposed to be three provincial representatives on the TransLink board. Yet those seats have never been filled, likely because all the local directors would have looked to the provincial appointees for policy direction and funding for projects. One of TransLink's arguments is that if the province had appointed its three directors, they would have been able to swing all the controversial, close decisions that Falcon was so frustrated with in the province's preferred directions.

obscurantist
March 8th, 2007, 11:28 AM
So, having put TransLink into debt and chaos through its meddling, the provincial government finally puts it out of its misery.

After following this process over the last year, I don't find the result totally surprising. It was suggested during the governance review that a board of "experts" might be appointed by the province to replace the current board of mayors and councillors from around the region, and that the geographic scope of the transportation body might be expanded (which would tip the balance in favour of the suburbs and exurbs).

The "Council of Mayors" idea is new to me. I guess that's there to make this look like something less than a wholesale provincial re-appropriation of power. And there does appear to be some recognition of the symbiotic relationship between transportation and land use, although with the typically Gordon-Campbellesque flourish of making a transit authority into a land developer.

Although the changes that the province is imposing may not do much to increase public accountability, which was one of the biggest complaints about the current model.

At present, the board is made up of elected local councillors and mayors, who can be removed by being defeated in municipal elections, as happened to TransLink chairs George Puil and Doug McCallum in 2002 and 2005.

The proposed model will replace the board with

- a "council of mayors," which sounds more or less like the current model, except possibly weighted less by population (it depends how many mayors, and from where);

- an appointed board of "experts" (who may well know more about the topic than local councillors, but who will be accountable only to the provincial government that appoints them); and

- an "Independent Commissioner" (which sounds a bit like the "Ferry Commissioner" idea the Libs came up with when they sorta-kinda privatized BC Ferries).

More effective? Possibly. More in harmony with the province's plans? Certainly. More accountable? Doesn't look like it.

obscurantist
March 9th, 2007, 12:36 PM
More in today's paper on the changes to transit in the Lower Mainland. The BC Libs continue to hack away at the concept of regional growth strategies that was brought in under the NDP in the mid-'90s:

Property taxes and transit fares will rise under a provincial government plan to create a new, bigger version of TransLink. But a controversial parking tax and a special Hydro-bill levy that homeowners have paid for years will be scrapped. (http://www.canada.com/vancouversun/news/story.html?id=19f1bae2-1d0c-4e0b-be33-d447460c2a83) The higher taxes are a condition the province is setting in return for providing more money to TransLink from provincial fuel taxes, under a plan unveiled and endorsed Thursday by Transportation Minister Kevin Falcon.

The plan also means control over Greater Vancouver's transportation system will largely shift from local politicians to the provincial government.

TransLink -- which will gradually expand east into the Fraser Valley and north to Squamish and Pemberton -- will be governed in future by a long-term "vision" provided by the government, instead of being guided by the Greater Vancouver Regional District's sustainable growth strategy.

"The GVRD will no longer have a role in the governance of TransLink," says the report of a TransLink governance review panel. ...

The new provincial fuel-tax money will cover only one-third of the $200 million a year TransLink will need by 2013 to build everything in its plans.

In order to get it, TransLink will have to raise another one-third, or close to $70 million, from increased property taxes, and the final third from a combination of higher fares and revenue from property development around rapid transit stations and other TransLink facilities. ...

The parking tax and Hydro levy will be scrapped, but TransLink will have to replace the revenue -- about $37 million in total -- by raising property taxes, on commercial and industrial property for the parking tax money, and on residential property for the Hydro levy. ...

The plan also calls for TransLink to be given power to override municipal zoning and permitting decisions in order to get its major projects built, said Marlene Grinnell, the former Langley City mayor who chaired the review panel.

There will still be some municipal input. A board of appointed professionals will formulate options for 10-year TransLink plans, based on the provincial government's 30-year vision, and a council consisting of all the mayors in TransLink's coverage area will choose its preferred option.

But if the mayors fail to agree on the options within 90 days, the professional board will be able to impose its "base option." The plan calls for the mayors' council to meet only four times a year, while all TransLink's day-to-day decisions would be made by the appointed professional board. The board would be solely responsible for the three-year financial plans that drive TransLink's actual operations, and for hiring a chief executive.

It is not clear yet how that board will be appointed.

Meanwhile, all TransLink's ties to the regional district are being severed, which Vancouver Coun. Raymond Louie, a former TransLink director, called "most disturbing.

"It essentially eliminates local authority on land-use decisions."

TransLink chairman and Richmond Mayor Malcolm Brodie said he had thought the GVRD's Livable Region Strategic Plan would still help shape TransLink's priorities, but "I don't see that in there."

"We just can't ignore the LRSP. That needs to be clarified."

GVRD chairwoman and Delta Mayor Lois Jackson said: "I'm concerned about that, because as many of us have discussed before, land use and transportation are so linked." ...

Grinnell said TransLink would still be politically accountable to local voters, because mayors would be automatically elected to the mayor's council when they are elected in municipal elections. ...

Votes by the mayors' council will be based on population, giving the most influence to Vancouver and, increasingly, Surrey.

The mayor's council would appoint a commissioner who would hold public hearings and rule on major financial decisions.