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Message from the Chair
By Bill Lochte, Bombardier
TO VETO OR NOT TO VETO…THAT
IS THE QUESTION
On Friday, April 2, in the face of a veto threat from
the White House, the U.S. House of Representatives voted 357 to 65 in
support of its version of a TEA 21 reauthorization bill. Designated
as H.R. 3550, the House bill would authorize $275 billion in funding
over six years, which equates to $51.5 billion for public transportation
(7% growth) through Fiscal Year 2009.
TEA 21 Moves to Conference
The House action clears the way for the all-important
conference committee debate. Expected to begin in June, the conference
committee, cognizant of a funding veto threat, must in Solomon-like
fashion navigate its way to a consensus between the House funding level
and Senate recommendation (S. 1072) of $318 billion, which garners $56.5
billion for transit.
Is $5 billion of additional funding worth fighting
for?
Absolutely!
They Just Don't Get It
In recent Senate testimony, an executive for the U.S.
Chamber of Commerce testified that for every $1 billion invested
in transportation, the private sector experiences a “threefold
gain” in sales that will create and sustain 47,500 jobs.
TEA 21 is much more than a “jobs” bill; it’s also an investment in America’s economic growth, security and improved quality of life for its citizens.
As these two bills go to conference, it is incumbent
on
all APTA members to stand up and be heard. The Senate
found a plan to achieve higher funding levels – without an
increase in taxes. We need to support that patriotic action.
Your opinion does matter. Please utilize APTA's Action
Center, contact your member of Congress and/or send a
note to the White House supporting the Senate's funding
levels. With all of us prioritizing America's future, there is
a good chance Capitol Hill will finally get it!
PLAN YOUR WORK AND WORK YOUR PLAN
As a member of the Strategic Plan Core Advisory
Team and Task Force, I am pleased with the level of
involvement of the business members in helping to develop APTA's 2005-2009
Strategic Plan.
The hard work we did last year developing the
Business Member Tactical Plan really paid off in
helping to shape the association's road map for
the next five years. The information gathering
process to form a "first draft" is now complete
and will be rolled out to the members at listening
sessions during the spring modal conferences.
This is the next important stage for members to
fine-tune the broad outcomes and indicators in
each goal area and to discuss specific strategies
to achieve those desired outcomes.
Please make a commitment to attend the listening
sessions and participate in these important
discussions so that the new plan truly reflects the
needs of the business members. Check the conference
programs for the dates and times of the
listening session at the Bus and Paratransit and
Rail Transit Conferences.
Of particular importance to business members
is the positive shift to new Strategic Goal 2:
Economic Vitality -- increase services that support
members -- efforts to strengthen the economic
vitality of the public transportation industry.
As you may recall, "business opportunities"
was combined with "ridership" in the now
expiring 2000-2004 Strategic Plan. This change
is significant because, while it is not strictly limited
to business members' efforts regarding economic
vitality, it is clearly the primary focus.
Also new to the 2005-2009 Strategic Plan is a
preamble that describes the essential role that
public transportation plays in our communities,
the people who depend on our services and
those who benefit indirectly.
Lastly, through the Business Member Tactical
Plan, adopted October 2, 2003, we seek to
increase business member participation in leadership
roles within APTA, including securing
bylaws changes to open to business members
additional positions on APTA's Board of
Directors. While we initially envisioned that
bylaw changes would be addressed in the
process to develop APTA's new Strategic Plan, it
has been decided by the Strategic Plan Task
Force to keep these activities separate.
Therefore, APTA Chair George F. Dixon III plans
to appoint in June a Bylaws Review Task Force
to address the business member bylaws issues,
as well as other concerns raised about the
bylaws during the upcoming listening sessions.
If the issue of association governance and
inclusivity is important to you, I encourage you
to step up and be heard.
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Industry Heightens Focus on Bonding Issues
By Saundra Lautenberg, Siemens Transportation Systems, and Fran Hooper, APTA
Largely because of the efforts of the BMBG and several business members,
bonding has recently taken on a higher profile
as an industry issue. Beginning
with supplier efforts that led to FTA
Administrator Jenna Dorn’s January
Dear Colleague letter on the subject
(see last issue), the scene has
shifted to discussions of the issue at
APTA’s spring meetings. APTA's
Procurement Task Force has
included the issue on its agenda
and will sponsor a Webinar on
bonding for APTA members June
17 at 2 p.m. EDT.
At the general manager’s seminar
in February, the topic of bonding
was brought up in a discussion session.
In discussion groups based on
transit system size, CEOs representing
large multimodal systems
agreed that they must become more
aware of the issue, particularly the
cycles of the surety market, and
they need to ask more questions of
their procurement officers. They
also noted that transit boards and
other policymakers often pressure
general managers to avoid any
management risks, and many general
managers see bonding as a risk
issue. Alternatives discussed included
holding back a percentage of
payment, ratcheting down bond
limits as projects progress, progress
payments or requiring letters of
credit in lieu of bonds. The group
recommended development of
information resources (including better risk assessment tools) to
determine if bonding is necessary,
and industry best practices on
bonding, including both "horror
stories" and positive examples of
lessons learned. This group also
advocated more standardization,
such as greater use of the procurement
guidelines.
In their discussion, it was clear
that most CEOs understand the bonding issue and they agree that
options to bonding, including comments
and alternatives suggested by
vendors, are needed. Managers of
mid-sized systems added that better
documentation regarding bonding
costs would also be helpful, and they
like the idea of reducing bond
amounts based on project completion
thresholds (e.g., after each lot of
buses is delivered).
At the APTA Legal Affairs Seminar
in February, Ed Gill of Thompson
Coburn and Jim LaRusch of the
FTA's General Counsel's Office, spoke on a variety of procurement
topics,
including bonding. In this session, both
panelists and attendees discussed at
length Dorn's new Dear Colleague letter
on FTA's bonding requirements, as well as
the BMBG's January resolution on bonding.
In the discussion, the audience was
asked whether state and local requirements
prompted higher bonding requirements;
no one indicated that this was a
significant factor.
Incorporating bonding into the issues it
is working on, the APTA Procurement
Task Force continued its discussion of the
issue in March. In the discussion, the need
for additional information on bonding
was noted, and FTA's procurement system
reviews were suggested as a source of
information about the issue. LaRusch,
who serves as FTA's advisor to the Task
Force, added that he recently asked the
participants in an NTI procurement course
if they knew how much it cost a company
to get bonding; he said that the procurement
professionals did not know the answer, while the accounting personnel in
the course did.
A key action item for the Task Force is the upcoming bonding Webinar. BART
General Manager Tom Margro, a member of the Procurement Task Force, will moderate
the Webinar. The Webinar will feature presentations by Saundra Lautenberg
of Siemens Transportation Systems; Jim Zingale, WMATAfs managing director
for procurement; and from a representative of the Willis Group. Individuals
from both the public and private sectors are invited. Check APTA's Website
for more registration information.
More Monitoring of Industry Health in
the Works
By Cliff Henke, North American Bus Industries
Concerns about the public transportation supply side’s health and how
better to monitor it have gotten the attention of
leaders both in the industry as well as in official policy-making circles. Both have heard suppliers'
concerns loud and clear,
and plan to offer new tools
to help.
The BMBG leadership in its Tactical Plan is developing several new business
development products and services. The first is a thorough third-party industry
analysis and forecast, which will be designed to help the industry raise capital
and to present to Wall Street and other financial institutions a more concrete
idea of the industry's strength and future. The second is a "sentinel" service
for upcoming procurement opportunities for transit goods and services. The
new service would be designed to bridge the gap between current services that
publish those opportunities currently available and those that look at government
expenditures or some other broad industry trends not specific to expected
goods and services purchases. Both these projects were also adopted as part
of the revised APTA Strategic Plan, which will be discussed in listening sessions
at the upcoming rail and bus conferences, with final adoption envisioned for
October at the APTA Annual Conference. Both projects are scheduled for completion
by the end of Fiscal Year 2005. The Strategic Plan delegates the responsibility
for both projects to the BMBG.
Meanwhile, APTA’s Research and Technology Committee, with input from
the FTA’s Office of Research, Technology and
Innovation, has included in next year’s research program a project that
will investigate the recent poor health of the transit bus supply chain, the
causes of its current state and recommendations for improving the situation.
The committee’s intent is to include the project in the FTA’s Transit
Cooperative Research Program next year.
The economic condition of the industry will also be a major focus of two
BMBG Outreach Committee initiatives. The first is a series of threaded email
discussions among both BMBG members and the larger business member committee;
the discussions are designed to serve as a forum for addressing supply-side
concerns in an ongoing, costeffective way, particularly between BMBG meetings
throughout the year. The first of these email discussions, which will commence
in mid-April, will focus on the industry's current economic health. The second
of the Outreach Committee projects is a follow-up survey to the previous studies
that BMBG conducted regarding business member concerns. Look for the survey
questionnaire to be emailed to each key business member contact in May. For
further information to comment, contact me at cliff.henke@nabiusa.com.
Committee Updates
Several BMBG committees met during the APTA Legislative Conference in March.
Following is a brief synopsis of
their work:
Business Development (formerly International): The
Business Development Committee discussed progress of the upcoming trade missions
to Mexico and China, as well as deepening the working relationship with the
APTA Marketing and Communications Committee (particularly since former BMBG
International Committee Chair Dave Turney is now APTA’s vice chair of
marketing). The committee also heard from guests representing the U.S. Department
of Commerce’s International Trade Administration, who discussed their
department’s resources available to American firms seeking to do business
abroad.
Government Affairs: The Government Affairs Committee
continues to monitor the progress of TEA 21 reauthorization and
various business member-specific concerns in the legislation, such as the
exemption of federally assisted bus purchases
from state dealer laws and the extension of the bus axle weight exemption
on the interstate highway system. A new proposal
to eliminate the industry’s ability to do sale-leaseback transactions
was discussed. Committee leadership also strongly
encouraged members to show a good supply-side turnout for the business member
sponsored breakfast during the conference,
and to see members of Congress during the Legislative Conference week, particularly
those who have been assigned
districts in the committee’s Adopt-ADistrict Initiative.
Member Liaison: Several important issues were tackled
during the Member Liaison Committee’s March meeting. First, the dues
structure was discussed, with respect to perceived cost burdens that the current
dues structure places on smaller members. The consensus among those at the
meeting was that the recent changes to the structure do not represent an undue
burden on smaller firms, but that the task force appointed at January’s
BMBG Meeting to study the issue should complete its work and present recommendations
to the BMBG. Second, strategies for putting more supplier members on the Executive
Committee discussed, and it was noted that Karen Antion’s tenure as vice
chair for research and technology would expire this year. It was also noted
that several other positions were available to business members, thanks to
recent bylaw changes. Finally, APTA’s new member directory listing software
and supplier member categories were discussed.
Outreach: In addition to planning content for the
BMBG newsletter editions through the balance of the year, two other Outreach
Committee initiatives were put forward for discussion. First, the idea of
a threaded email discussion among business members was considered. The thread
would serve as an ongoing feedback mechanism among supplier members, particularly
regarding issues that might need quicker and broader feedback than what can
be discussed in person at regular BMBG meetings. A target of mid-April for
the first email, which will focus on economic issues, was established. Second,
the need for another survey was discussed, particularly to benchmark changes,
for the better or worse, in the industry's economic conditions. It was suggested
that the email discussion could help form the basis for the survey questionnaire.
Programs: The Program Committee's ambitious agenda was the first topic of
discussion, and was simplified into fewer objectives. The committee discussed
recommendations regarding selection criteria and possible nominees for a newly
created Executive of the Year award, which would be announced at a black tie
dinner on the Monday evening during the APTA Annual Meeting in Atlanta. It
was noted that a procurement success stories session moderated by Programs
Chair Jolene Molitoris will be held at the APTA Bus Conference in Denver.
A slate of names for a BMBG-sponsored speaker at the Annual Meeting was discussed,
and it was generally agreed that last year's speaker, Tom Peters, set a high
standard for this year's speaker. Finally, the committee discussed whether
2002's Transit Business Seminar should be repeated. Since no consensus was
reached, a small task force was formed to make recommendations at the next
BMBG meeting in Denver.
Profile In Business
James (Jim) Srygley
Bio data: CEO and founder of S&A Systems Inc., provider of FLEETWATCH
products and services. A charter member of APTA, he currently serves on the
APTA Awards committee and APTA Member Services Committee. He has served on
several APTA task forces (most recently the APTA Dues Task Force) and had
a leadership role in the APTA Mentoring Program. He has an engineering background
(B.S. in Engineering Science from the University of Texas and M.S. in Engineering
Economic Systems from Stanford University) and holds three patents for transportation-related
equipment.
Began his career in an Operations Research Group at General Dynamics developing
large-scale simulation models for NASA.
Leaving after a few years, he began developing and applying computer simulation
models of personal rapid transit systems, passenger stations and train control
systems for transit agencies and private companies. This led to consulting
work assisting in the installation of first-generation bus run-cutting and
scheduling systems (RUCUS) and maintenance and inventory systems (SIMS), and
to the design and development of the first FLEETWATCH systems.
Toughest career challenge: Taking an idea or concept through engineering
design, development, prototyping, testing, manufacturing, introduction, teething
and marketing. Keeping a small company afloat and growing in the "up and down"
transit marketplace is also somewhat challenging.
Proudest success: Watching my children grow and become successful.
Working with friends in the transit industry.
Outside of work: Playing with grandchildren, biking, walking and photography.
If there is only one thing APTA could do this year, I want it
to: Continue focusing on reauthorization.
Supports APTA because: Public transportation and the industry that
provides public transportation need the strong, central and unified voice
that APTA can provide.
Preferred mode of travel -- buses or trains: I cannot afford to answer
this.
Leadership APTA FAQs
By Franny Yuhas, Orbital TMS Leadership
APTA continues its success streak. The program recently welcomed
its seventh class of 25 transit professionals selected from a pool of well-credentialed
applicants from across the nation. Roughly 127 alumni from the program are
still APTA members working in transit. Many of the alumni hold key leadership
roles on APTA committees, task forces and other special projects, as well
as leadership roles in their own organizations. Following are few frequently
asked questions about one of APTA’s most successful initiatives, designed
to develop the next cadre of association and industry leaders.
Why Leadership APTA? It affords participants the opportunity
to not only learn about APTA (in depth: what services and resources are available
to members), but also its organizational structure. Knowing the organizational
structure of APTA, and specifically its committees, allows one to easily get
involved and contribute to the transit industry.
What will my company and I get out of it? Your APTA
membership is as valuable as you make it. Leadership APTA provides participants
with various leadership concepts, builds a sense of confidence and provides
direction for areas of interest and where a specific individual’s talents
may be best utilized within their own organization, as well as APTA. Lastly,
Leadership APTA facilitates networking among peers, both public agency and
private business. Such networking has proven invaluable to me when I need
a neutral third-party opinion on an issue I am facing. Class participants
are very willing to share their experiences when asked (even sometimes when
they are not!).
How does the course stay relevant to such a dynamic industry?
APTA is always making improvements to the program. For example, in December,
Susannah Kerr Adler (Parsons Brinckerhoff), Nuria Fernandez (Earth Tech),
John Catoe Jr. (Los Angeles MTA) and Joe Alexander (Washington Group International
Inc.) helped facilitate a very successful roundtable session for the Class
of 2004 on today’s public policy and operational challenges. In July
2003, Jay Conger, a member of the faculties at University of Southern California
and London School of Business, addressed the class about leadership development,
the subject of an article he wrote for the December 2003 issue of Harvard
Business Review. This year, the program welcomes to its faculty Dr. Joan Magretta,
a senior institute associate at the Institute for Strategy and Competitiveness
at the Harvard Business School. Joan was also a partner at Bain and Company,
a leading strategy firm, and has 20 years of consulting experience. She was
senior editor of the Harvard Business Review. Leadership APTA continues to
build on the success of its past, and it depends on participant and member
feedback to make improvements.
Isn't the program mainly for the public sector? No.
In fact, 20% of this year's class comes from the private sector; last year
around 16% of the class came from the private sector. The mix of privateand
public-sector participants is one of the contributors that makes the program
so successful, as it means networking, information exchange and learning about
how different organizations do business, including candid discussions of challenges
that exist in both the public and private sectors. In addition, the program
continues to see a growing number of participants who have worked on both
sides of the industry.
Who goes to Leadership APTA? Classes have mainly comprised
individuals who are well-seasoned professionals but who are newer to transit.
However, many promotions occur during class members' tenure; in fact, two
members of the Class of 2003 were promoted to general managers while matriculating
during the program. Many others were promoted to vice president and other
senior roles.
Where do I get more information and sign up? A revised
brochure and application form will be out in early May, and will also be posted
on the APTA Website. Applicant materials will be due to APTA by the latter
part of July. APTA is planning to host a session at the 2004 Bus and Paratransit
Conference to talk more about the program and related benefits. In addition,
visit the Leadership APTA page on the APTA Website for details about the program.
Or you can contact Leadership APTA Committee Chair Shirley Harris at purpleharris@aol.com,
or APTA Staff Advisor Joe Niegoski at jniegoski@apta.com
or (202) 496-4870.
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Business In Motion
Chair
William Lochte,
Bombardier
Chair, Outreach Committee/Publisher
Cliff Henke, NABI
Associate Publisher
Frank Di Giacomo,
METRO Magazine
Editor
Leslie Davis, METRO Magazine
Graphic Designer
Joni Hutton, Bobit Business Media
APTA Staff Advisor
Fran Hooper
The official newsletter of the American Public Transportation Association's Business Members
Ensure a positive R.O.I. …Get active in APTA.
To receive Business in Motion electronically, email Fran Hooper at
fhooper@apta.com.
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