House Votes to Remove PAT’s Regulatory Duties

When the Port Authority of Allegheny County was formed the state gave the governing board the job of signing off on the plans of any private bus operator wanting to work in Allegheny County. Pennsylvania House Majority Leader Mike Turzai (R-Allegheny) is now trying to give that oversight roll to the Public Utility Commission. His effort took a big step forward Tuesday when the House passed legislation to make the change.

Turzai believes the Port Authority has been standing in the way of private companies who want to run routes in the county but he does not think the bill would create a free-for-all situation. “They have to meet requirements with respect to rates, safety, insurance and the like,” said Turzai, “But it does allow for competition in Allegheny County with the Port Authority.”

PAT Spokesman Jim Ritchie disputes Turzai’s claim, “We receive a number of applications each year to run service each year, the most recent being the Lenzner service in the North Hills, and I think for the most part we have approved almost all of these applications, at least in the last few years.” Lenzner Coach Lines successfully petitioned to offer service from two locations in the North Hills to downtown Pittsburgh after PAT eliminated a similar run.

The Authority is officially taking a “relatively neutral” stance on the bill. “Its more of a regulatory change,” said Ritchie, “It does not effect our day-to-day operations.”

The Union has come out strong against the bill saying it is a union busting move and the next step toward fully privatizing mass transit in the county. Amalgamated Transit Union Local 85 President Pat McMahon says the private companies will come in and “cherry pick” the good routes using non-union labor. He says that will eventually lead to the end of the Port Authority and service to many communities.

Rep. Turzai says there are already under served communities and destinations. “Some people want to get to Ross Park Mall, some people want to get South Hills Village, some people want to have the opportunity to come to a place of work out in Cranberry, some people want to have a chance to get to a place of work out at the airport. The Port Authority has never been able to think entrepreneurially about where people want to get to,” said Turzai. The Republican from the north hills said he thinks PAT’s management is willing to think differently by the union is standing in its way.

Turzai sees private providers providing an “overlay” of service in the county. He said it will be up to the entrepreneurs to decided where that extra service will be offered.

Lenzner Defends Application

The Port Authority of Allegheny County heard testimony today on an application by Lenzner Coach Lines to run buses between Blade Runners and the Warrendale Park and Ride lot in the North Hills and two stops in the Golden Triangle. Lenzner President Charles Lenzner says his company decided to file the application after several commuters asked it to provide the service. PAT is ending the routes that service Marshall Township March 27th as part of a 15% service reduction. Lenzner testified (upper left) that after being approached by the riders he made up a survey form and gave it to some volunteers to pass around to individuals using the PAT routes currently serving the two stops.

Lenzner plans to offer a one-way ticket from the Park and Ride lot for $5.00 and a one-way ticket from Blade Runners at 103 Marshall Drive in Warrendale for 6.25. That is nearly double the current rate charged by the Port Authority. “That reflects my cost of doing business,” says Lenzner. Tickets will have to be purchased in advance.

Charles Lenzner says he will have to hire two new administrative support staff, 4-6 news drivers and a new maintenance worker to support the expanded business. His goal is to begin operations March 28th. Lenzner says the drivers and maintenance workers will get the same pay as his other workers. He says that runs from $12.50 to $22.00 and hour with benefits. Lenzner employees are not unionized.

Amalgamated Transit Union local 85 President Pat McMahon testified against the application and the union’s lawyer helped to cross-examine witnesses. McMahon says if the Port Authority grants permission to run the service either Lenzner will have to offer laid-off PAT workers jobs and pay them union wages or the Authority will risk losing millions of dollars in federal grants. “We have a 13(c) agreement with the Port Authority of Allegheny County… if there is a successor to come in and deliver this service they would have to honor the collective barging agreement,” testified McMahon. 13(c) is a section of the Federal Transit Act that protects unionized workers. Lawyers for Lenzner Coach Lines disagree with the union’s interpretation of the word “successor.” McMahon says if the application is approved he will file a grievance.

Lenzner currently has permission from the Port Authority to operate service from five downtown hotels to The Rivers Casino and to operate shuttle service for the University of Pittsburgh.

The committee hearing the testimony today will make a recommendation to the Port Authority Board. That board is expected to take final action March 25th.

Union Protests Lenzner Application

About 60 union members and supporters gathered outside of the Port Authority of Allegheny County’s offices today to object to an application by Lenzner Coach Lines to run Buses from Marshal Township to downtown Pittsburgh. The Authority was holding a hearing on the application today.

PAT is ending the routes that service Marshall Township March 27th as part of a 15% service reduction. Lenzner has applied to run 5 weekday trips with stops at Blade Runners and the Warrendale Park and Ride in the north and on the corner of 5th and Penn and 6th and Penn downtown. The union opposes the application.

“It makes no sense to cut the service to a very productive route,” says Amalgamated Transit Union local 85 Executive Council member Bryon Shane, “there is over a thousand passengers a day on these two routes.” He says this is one more way Port Authority CEO Steve Bland is trying to bust the union. “Every time we have a layoff it’s going to make our union smaller and smaller and make our voice smaller and smaller, that is exactly what their plan is, to just keep killing us by a thousand cuts.”

Union members have linked the privatization of the route to efforts to limit union bargaining in Wisconsin and to efforts in Harrisburg to privatize more state operations. “What they just did is give the largest fare increase in one swoop,” says Shane. Lenzner has applied to run the service for $5.00 one way. PAT is running the bus at $2.75 one way.

Riders of the new service will have to purchase tickets in advance.

Snow Slows Region

More than 8 inches of snow fell on the Pittsburgh region in the span of about 12 hours and that has transportation officials scrambling. The Port Authority of Allegheny County suspended service around 10:00 Monday night when conditions became unsafe or impassable on nearly every route. PAT spokesperson Jim Ritchie says managers began sending out buses again around 5 am this morning and by 6 am had buses on all but 25 routes. Service to the remaining routes is slowly being restored. Anyone planning to take the bus this morning should head to a main route if it seems like other traffic is having a hard time getting down the street where they normally catch the bus. Ritchie says the T is running well.

Callers to the Port Authority’s service center are experiencing long delays and PAT’s main web page has been crippled. Ritchie says the best way to get information this morning is to go to the Port Authority’s twitter page at twitter.com/pghtransit.

Pittsburgh Public works crews hit the street last night using trucks and salt stationed at eight different locations throughout the city. As of 6:30, Pittsburgh Public Works Director Rob Kaczorowski says about 90% of the city 800 miles of main road had been treated more than once. He says they are now doing touchup work on the main routes and have shifted focused to the secondary streets. He is asking residents on those streets to be patient. He says it will take 12-24 hours to get to every street in the city. Many of those streets have a layer of ice below the snow. In the meantime, he is asking residents to stay off the secondary streets if possible. He also reminds those who are digging out and brushing off cars parked on the streets, to not put the snow into the travel lanes. He says car owners need to move that snow to the side of the road or place it in front or behind their cars.

State Crews are also fighting the snow. PennDOT Spokesperson Jim Struzzi says they are “In the midst of a big battle here.” Struzzi says most of the interstates are just wet in the main traffic lanes but have various amounts of snow in the passing lanes and on the shoulders. Crews continue to work on the ramps to and from the highways and on the bridges. Work on the Parkway North was hindered last night when people abandon their vehicles. The off ramp to McKnight Road had the most problems after a series of accidents forced the state to close the ramp. Several abandon cars are still on the side of I-279. Struzzi says plows and salt trucks are now turning their attentions to the secondary state maintained roads. He reminds drivers to expect varying conditions as the travel and he says all drivers need to remember to clear off their cars of all snow and ice before starting their commute.

PAT Uses Twitter to Release Changes Due to G20

The Port Authority is turning to Twitter to alert riders about last-minute route changes. Spokesman Jim Ritchie says the agency is looking for as many ways as possible to get information out about changes during the G20 Summit next month..."The difficulty is the authorities that are developing the security zone downtown aren't going to tell us where we can go and can't go until a week or two prior to the event. It creates a real time challenge for us. We have to get things out very quickly."

The Port Authority's Twitter identity is "pghtransit." Ritchie says people can get updates from their computers or on their cell phones. You can also sign up for updates through the Port Authority's web site. But since not everyone has online access, Ritchie says the Port Authority is also working with schools, businesses and other groups to spread the word about route changes.

PAT Approves New Budget Plan

The Port Authority of Allegheny County approved a budget for the 2009-2010 fiscal year. The $362.9 million plan will implement a fare increase in January of 2010, and also use carryover funds from the passing year for their increasing pension spending. CEO Steve Bland says the fare increase must raise $4 million, but it will not exceed 25 cents per ride.

Board member Guy Mattola says aside from the North Shore Connector, the Authority will not spend money on any new capital projects -- much capital money will go to the renovation and upkeep of existing facilities. Mattola says they're asking for $36.4 million from Allegheny County, down from the $37.6 million granted last year. He says this only accounts for about 7% of their spending, but it is "the most important 7%," because state and federal grants depend on the amount received from the county.

The Board also decided not to implement hybrid propulsion in favor of "clean diesel" buses, aside from applying electric power to 3 new buses.

PAT to Stay Put

The Port Authority of Allegheny County is very likely to remain headquartered at its downtown facility, says spokesman Jim Ritchie. The old Manchester facility is too run down for use and would require too much money to fix, he says. "Staying downtown would cost about $27 million over the next ten years, which is $11 million less than the apples-to-apples cost of moving back to Manchester and bringing that building up to a safe and habitable level," says Ritchie. He says even after the ten-year window, maintaining and updating such an old structure would outweigh the cost of a lease, despite PAT's ownership of the Manchester building. He says the board has not yet decided the fate of the old headquarters, but demolition and "mothballing" are two options.

Dump the Pump, with Public Transit

With summer comes gasoline price hikes and road construction, creating additional traffic. But instead of complaining about being bumper-to-bumper, Port Authority Spokesperson Jim Ritchie suggests trying public transit. With the fourth annual national Dump the Pump Day on June 18, he says it’s the perfect time for commuters to ride a bus or the light rail train. Ritchie says Port Authority now has as many riders as they did before the fare increase and 15 percent worker cut.

North Shore Connector makes progress

As of this morning, Port Authority has reached a milestone in their North Shore Connector project, mining 2000 feet of the tunnels. Port Authority Rail Operations Officer Winston Simmonds says there is only 230 more feet to mine, which should be finished by next week. While the most complex part of the project will soon be complete, Simmonds says there is still a long way to go, with contractors having to put in railing and electricity. The tunnels are on schedule to open to the public in December 2011. Upon completion, the light rail transit extension will provide a route from the North Shore to downtown Pittsburgh.

McCullough Lauds Decision

Allegheny County Councilman today expressed his support for the decision made by Common Pleas Judge Judith F. Olson's to restrict drink tax revenue solely for Port Authority use.

McCullough says the judge made a brave decision and restored the rule of law in Allegheny County. The Councilman says the next step is for County Executive Dan Onorato to address the council and explain his intentions for the $12 million in tax revenue.

Onorato Will Not Appeal Ruling on Drink Tax Cash Appropriations

Allegheny County Executive Dan Onorato yesterday announced that he will not appeal Common Pleas Judge Judith F. Olson's decision to restrict drink tax revenue solely for Port Authority needs. He says that as per the judge's ruling, the $12 million slated for the county's transportation budget will be given to PAT for capital needs in 2009 and 2010, and that he will not raise property taxes to mend the deficit left in the county budget. Onorato mentioned that layoffs could possibly make up part of the deficit.

Meanwhile, although the drink tax was cut from 10 percent to 7 percent on Jan. 1, some bar owners continue to charge the same price for drinks. Some owners cite the poor economy for their price increase. Though it would not be illegal to charge more for drinks, County Treasurer John Weinstein says it would be illegal if the drink tax still appeared as 10 percent on patron's bills.

F.A.C.T. Hearing

After filing a lawsuit against Allegheny County on Dec. 18, F.A.C.T. members appeared in front of Judge Judith Olson in the Allegheny County Court of Common Pleas. They argued that the county is not allowed to use surplus money raised from the 10 percent drink tax or the $2 per-day tax on car rentals on anything other than the region’s Port Authority transit system. Allegheny Councilman Chuck McCullough said road and bridge restoration and repair should not count as an earmark.

However, Allegheny County Solicitor Michael Wojcik said the drink tax and car rental tax under Act 44 is "to provide financial support for transit systems." More constricted wording could have clearly marked the money for only the Port Authority to use.

Judge Olson said a decision on whether to place an injunction will be issued as quickly as possible.

Port Authority Board Approves Collective Bargaining Agreement

The Port Authority Board of Directors voted this morning to ratify the 4-year collective bargaining agreement which was accepted on December 7th by the Amalgamated Transit Union Local 85, representing 2300 workers.

Before the vote, CEO Steve Bland told the board that there will be cash savings because employee contributions to health care more than offset wage increases, and the agreement reduces by $92 million the long-term benefits expenses that have been building up since PAT’s inception 50 years ago:

Bland commended union leaders for their work at the negotiating table and in communicating with members. He says the 95% yes vote by union members is higher than he's never seen, even though workers accepted concessions. Bland says the agreement shows employees want PAT to be sustainable.

After the meeting adjourned, Bland discussed some issues that will be coming up in the near future: improving operating efficiency and making service more effective for customers; new fare structure and collection projects—he's hoping for a monetary commitment from the county in the next month or so.

Bland expects the county drink tax money withheld by County Executive Dan Onorato to be released in the next week or so, and he says future fares must rise to keep pace with inflation.

Call To End PAT's Monopoly Over Allegheny County

State Representative Mike Turzai, a Republican from Bradford Woods, has introduced a bill that would eliminate the monopoly the Port Authority has over Allegheny County public transportation. The measure would allow for private transportation companies and other regional transportation agencies to provide services in the county. Turzai says the reason the Port Authority has had problems is because of bad management and no competition to drive them to provide good services. Turzai added that even though privatized transportation would result in higher fares for riders it would result in less tax payer funded subsidies for the the Port Authority.

Union Rejects Fact Finder Report

The president of the Amalgamated Transit Union local 85 says the terms of the fact finder’s report would set them back 50 years. Union President Pat McMahon says the three percent raise is not even enough to keep pace with inflation. He says making it even worse on the members’ budgets was the recommendation that they increase their contributions to healthcare premiums while reducing coverage. McMahon says the suggestion that union members reach age 60 and accumulate 30 years of service before retiring is a “Slap in the face.” He says his members know the next contract will not be as good for the members as the one that expired this summer but they are not willing to go this far “over night.” McMahon says he wants the riders to know that there are no plans for a strike at this time. He says he hopes the authority will enter into good faith negotiations. As long as there is progress he says he will keep the bussing running.

PAT Board Votes Yes on Contract Terms

The board of the Port Authority of Allegheny County has accepted the fact finders report setting up terms for a new labor contract. The old deal expired this summer. Members of the board say while the deal is not perfect it does for the first time deal with some of the long-term retirement and legacy costs. Pat CEO Steven bland says the real benefits are not seen for years to come when retirement and other savings begin. He says in the short term there are still real issues the board will have to deal with through cost savings and revenue stream increases. Bland and board member Eddie Edwards both stressed that if the union rejects the deal it would mean the talks are back to square one. They stressed that the report would not be used as a starting point for negotiations. At the same time the board voted on an outline of procedures to take if there is a strike. Chief among them is a total shutdown of service. The Union will announce its decision later today.

Onorato Urges PAT and Union To Accept Recomendations

The Port Authority Board and Local 85 of the Amalgamated Transit Union have until Saturday to accept or reject the contract recommendations of fact finder Jane Rigler who was appointed by the Pennsylvania Labor Relations Board.
Allegheny County Chief Executive Dan Onorato urged both sides to accept the proposed contract which he says is an important step to getting the transit agency "off the bankruptcy track." Onorato says the fact finder's report addresses for the first time long-term legacy costs which he called a "ticking time bomb." The recommendation would trim those costs for pensions and health care by 40% over the long term.
The fact finder recommended 3% annual pay hikes for the 2,300 union drivers, mechanics and supervisors for the next 3 years. Union employees currently contribute 1% of their base wages toward their health benefits but that would go up to 3% in phases, which is the same level that non-union PAT employees contribute. The recommendation also calls for an end to a $500 a month pension supplement for employees who retire early. Possibly, the most controversial provision from the union's point of view would be employees with 30 years of service and who retire before age 60 would have to contribute the same 3% toward health care. Retirees under 65 who have 25 to 30 years service could retain health care coverage but would have to pay PAT 100% of the cost.
Onorato says the union's possible interest in continuing to work under the old contract which expired June 30 "is not an option." He says the transit agency cannot afford it. But Onorato warned that even if the factfinder's report is accepted, that is not the end. PAT must evaluate routes and get rid of underused ones while establishing routes to underserved communities.

Port Authority Gets Bids for North Shore T Station

The Port Authority of Allegheny County received four bids for the new Allegheny T Station on the North Shore ranging from $39 to $42 million. Although a contract will therefore exceed the original estimate of $30 million by about 30%, it could have been worse, according to Winston Simmonds, Rail Operations and Engineering Officer. Concrete and fuel prices are up, he says, and fabricated steel is 50% more costly this year.

Simmonds says the Port Authority is trying to mitigate costs in any way possible, e.g., by allowing a concrete alternative (to steel) for the Allegheny Station bid and by closing the Gateway Station completely during construction so the contractor can save money by having complete access.

The Port Authority will review the low bid of $39.8 million from Brayman Construction of Saxonburg, PA, along with a prior bid for the Gateway Station, with the goal of seeking board approval in July for awarding both contracts. Simmonds says the North Shore Connector will be a valuable regional asset, opening up opportunities for possible northward expansion in the future.

Market Square Businesses React to Bus Route Changes

Business owners in Market Square have differing opinions on how changing bus routes will affect them. The Port Authority moved buses out of Market Square beginning today. Restaurant and bar managers generally did not foresee any damaging effects. They say moving buses out of Market Square and possible renovations in the future could make the area more welcoming. Meanwhile, owners of smaller businesses are worried that the change will move their customers too far away. They also say they thought Market Square was fine the way it is. One business owner who wants to remain anonymous said when he voiced dissatisfaction with the plan the response he received from those around him was unwelcoming and hostile.

Lenzner asks PAT for right to run Casino shuttle

The Port authority of Allegheny county is reviewing a proposal submitted by Lenzner Coach Lines to run a bus from a few downtown hotels to the soon to be built slots parlor on the north shore. State law gives PAT the right to approve or deny any such service in the county. PAT spokesperson Judy McNeil says the application was short on specifics and the authority is trying to get more information about the proposed route and the expected fare. The casino is expected to be open next year and the new light rail service to the north shore is expected to open two years later. It is unclear if PAT could award a finite license to Lenzner. Among the questions to be answered is how such a service would impact the new light rail line.