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Metro Rail / Blue Line
Term Paper ID:27793
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Essay Subject:
Essential question: is the Metro Rail / Blue Line system worth what it is costing? Will the returns be sufficient to justify the expense and defray the costs?... More...
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7 Pages / 1575 Words
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Paper Abstract: Essential question: is the Metro Rail / Blue Line system worth what it is costing? Will the returns be sufficient to justify the expense and defray the costs?
Paper Introduction: INTRODUCTION
The Metro Rail/Blue Line is beginning operation in Los Angeles County after many years of planning, argument, analysis, and concern as well as growing public expectation. Now that the system is in operation, the public may be forgiven for wondering if it will prove to be a fiscal disaster. This was always held out by opponents as a possibility based on the idea that the system was costing too much and would not provide the service needed, or at least a level of service that would justify the costs. Another concern is now clear--the system may prove to be a fiscal drain because of lawsuits and related action for the many accidents that may take place on the system. The subway portion of the system has been the most costly, the most problem-plagued, and the most disruptive to businesses and residents of
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The Southern California Rapid Transit District as the operating bodyis directly responsible for liability during construction and duringoperation, but in effect, as this is a public agency, liability will bedivided among the various governments that support the SCRTD. Department of Transportation, afederal agency that acted as banker for the project. What isnot clear is how responsibility would be divided financially, though theagency is essentially in charge of a vast amount of funds in terms ofsubsidies provided by these governments, the funds from the federal andstate governments, and revenues from the operation of the transportationfacilities in the district. An examination found that the walls would be safeif the filling of voids in the concrete and other repairs were performed,and this meant starting work on sections that had already been opened, atconsiderable cost (Willman, 1994, 1). The earthquake in January 1994 tested the concretetunnels, and it had been reported in August 1993 that sections of thesetunnels were as thin as 4.87 inches, compared to the minimum designthickness of 12 inches. The taxpayer at different levels has thusbeen responsible for the creation and building of the Metro Rail and theother rail systems which are now under the purview of the SouthernCalifornia Rapid Transit District (SCRTD). ReferencesChagall, David (1995, Dec.). The Commission meets twice a month to act onrecommendations developed by four standing committees--finance, rapidtransit, service coordination, and intergovernmental relations. Middleton discusses some of the factors that have made light railsystems successful elsewhere in California and that should make the LosAngeles system successful as well. The Southern California Rapid Transit District was created by theCalifornia legislature in 1964 as a public agency to operate and improvethe existing bus system, and to design, build, and operate a rapid-transitnetwork meeting the needs of greater Los Angeles. It bears primary responsibility for any charge of negligence, whichoccurs "when a person who has a legal duty to act carefully fails to do soand thereby injures another person or damages that person's property"(Goldman and Sigismond, 1988, 46). The subway in Hollywood encountered problemsrecently when the street started to sink because of the vibrations fromconstruction, and this caused a delay and threatened many businesses alongthe route. Local elected officialsappoint an eleven-member board of directors--five are appointed by the L.A.County Supervisors, two by the mayor of Los Angeles (subject toratification by the City Council), and four by a selection committeerepresenting the other 84 cities in the district. pp. "From Freeways to Railways: California, the State that Led the Nation into the Freeway Era, is Now Leading the Way into a New Age of Mass Transit," Railway Age, Vol. Middleton (1991) states that suchsystems typically enjoy capital costs that are substantially below thosefor heavy rail rapid transit systems because of the flexibility of thelight rail systems. For localtransportation projects such as Metro Rail and the Blue Line, theCommission: reviews and finalizes all allocations of funds coming in fromfederal, state, and local sources; decides policies; sets up priorities;and distributes funds for all of the county's transportation programs.LACTC has also been responsible for designing and building the light-railnetwork. However, as Middleton also notes, the costs for the Blue Linein Los Angeles, which includes a short downtown subway and other morecostly features needed for the projected high capacity ridership, would bethe state's most expensive light rail system yet, with a cost just under$4 million per mile, including equipment. Part ofthis has to be because of poor planning and design--it is simply too easyfor the public to get onto the tracks and in front of a moving train. Boston: Houghton Mifflin Company.Lichtblau, Eric (1995, March 31). The routes already open, notably those aboveground, have experiencedhigh rates of accident, with resulting lawsuits and settlements. In terms of the costs of construction and operating costs, light railtransport is considered economical. It providedthe lion's share of building costs in the early stages to the Metro Railproject and was projected to carry 62 percent of the final price tag forthe Metro Rail. One approach noted by Zamora (1988) that has been effective andthat is somewhat new is that of the benefit assessment, which is agovernmental levy upon real property which benefits from a publicimprovement. This agency wascreated by Congress in 1966 and oversees all national transportationissues. "Repairs in Downtown Subway Nearly Done." Los Angeles Times, A1.Zamora, Nancy J. Funding for the burgeoning public rail system has derived from taxesof various kinds as well as from bond issues and similar voter-approvedmeasures. These elementsshould make the line successful once it is in full operation, assuming itcan attract the ridership the SCRTD thinks it can. These are based on the theory that property owners shouldcontribute to public improvements in approximately the same proportion asthey benefit from that improvement. Hoffmeier, "New Financing Strategy for Rapid Transit: Model Legislation Authorizing the Use of Benefit Assessment to Fund the Los Angeles Metro Rail," UCLA Law Review (1988), 519-546. The subway portion of the system has beenthe most costly, the most problem-plagued, and the most disruptive tobusinesses and residents of the city. 238-243.Goldman, Arnold J., William D. A president is selectedby the executive committee. Sigismond (1988). The Los Angeles County Transportation Commission was created by statelaw in 1976 and is composed of 11 commissioners, all five Los AngelesCounty Supervisors, the mayor of Los Angeles, two other commissionersappointed by the mayor, a member of the Long Beach City Council, and twoelected officials representing the Los Angeles County members of the Leagueof California Cities. The funding of the subway has been beset by cost overruns,construction problems, design problems, and residential and businessprotests since the beginning. (1991). These dangers have clearly not been addressed adequatelyin the planning for the rail system and may constitute a major drain onresources over time. The primary economic drain on the system to date has been the factthat the costs of digging the subway have been higher than anticipated fora number of reasons. The Metro Rail has such connections, and in addition the line has garneredconsiderable public support in spite of the high costs. Transitofficials believed that the installation of a new construction managerwould be a key step in getting the project back on track and thus insatisfying the concerns of federal officials, who froze $1.6 billion inproject funding in 1994 because of the many missteps along the route(Lichtblau, 1995, 1). Business Law: Principles and Practices. Operating costs for the system,though, would be substantially lower than those for bus services perpassenger. The high costs may be too high whencompared to the benefits of the finished system.PARTIES INVOLVED Chagall (1985) describes the parties involved in the building andoperation of the Metro Rail system in terms of construction and operation.The first interested party is the U.S. He notes that the low density,decentralized transportation environment of California means that effectiveintegration of the light rail system with other transportation modes hasbeen one of the fundamental keys to its success. Thisincludes the City of Los Angeles and the County of Los Angeles. The prevalence of accidents on the BlueLine in the two years since that system has been running brings intoquestion the safety features that the SCRTD has considered adequate andthat may be leaving the rail line open to a drain in the form of lawsuits.In addition, the SCRTD is spending a great deal of money to correctperceived problems as well as to provide security because of a fear thatthe Blue Line passes through certain crime-ridden neighborhoods that mayendanger riders. Every one of thesuccessful systems has a well-developed network of connecting bus servicesat each train station as well as good connections with automobile services. The Hollywood leg of the subway project has beenfraught with months of financial and construction problems, including thesinkage of up to 1 inches of the ground above the tunnel. One of the main concerns wherever the subway route has gone hasbeen business disruption, and many businesses have been forced to closeentirely because of the construction process, also causing the transitauthority to incur legal and settlements costs much higher thananticipated. 192, February, 29- 39.Simon, Richard (1995, March 27). The subway has also been plagued by certain issues indicating poorplanning in the design. "Subway Project Leaves Trail of Anger, Lawsuits." Los Angeles Times, A1.Willman, David (1994, November 2 ). This has been the case for other light rail systems inCalifornia. Since this is difficult to calculate,cities use a "cost method" or proportionate theory to determine the amountto levy against each business. This agency is a mammoth bureaucracy with enormous power, and twoof its divisions heavily affect public transportation in Los Angeles. Thesubway portion may avoid this problem, but it is likely to encounter othersthat will continue to increase costs. The economic problems continue with a wide varietyof lawsuits filed by individuals and businesses along the subway route.There have been some 2,725 claims and lawsuits, and more than 1 propertyowners have filed for property tax relief. Now that the system is in operation, thepublic may be forgiven for wondering if it will prove to be a fiscaldisaster. This was always held out by opponents as a possibility based onthe idea that the system was costing too much and would not provide theservice needed, or at least a level of service that would justify thecosts. Much of the higher cost has been due to poorplanning and poor execution. Another concern is now clear--the system may prove to be a fiscaldrain because of lawsuits and related action for the many accidents thatmay take place on the system. To date, the transit agency andits insurance company have paid more than $15 million in settlements andjudgments to businesses and residents and has also paid some $5 millionfor insurance to cover construction impacts (Simon, 1995, 1). "Probe Finds Subway Deal Was Compromised." Los Angeles Times, A1.Middleton, William D. In the long term, it is the taxpayer who pays. The SCRTD is a taxpayer supported entity that has responsibility forpublic transportation throughout the Los Angeles region, includingconnecting Los Angeles with adjacent regions in the Southern Californiaarea. "Real Life Rapid Transit," Los Angeles. INTRODUCTION The Metro Rail/Blue Line is beginning operation in Los Angeles Countyafter many years of planning, argument, analysis, and concern as well asgrowing public expectation. TheUrban Mass Transportation Administration (UMTA) considers all urban mass-transit projects and provides money to state and local government to helpbuild them, with a budget of more than $2 billion per year.
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