Updated 04/23/2010 08:35 AM
Sunset Commission: ‘Cap Metro’s over spending cannot be sustained’
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Capital Metro has failed to responsibly manage its finances, and its transit service expenses are excessive.
Those are just two of the findings of the Texas Sunset Advisory Commission.
The Sunset Advisory Commission was created in 1977 to examine the effectiveness of government agencies. They conducted a review of the agency's practices and released the report to the public Friday.
The Sunset Advisory Commission found that Capital Metro took on too many financial commitments without setting aside money for the long term. The commission said the agency's lack of adequate financial planning and high cost of services put Capital Metro in long-term financial risk.
Click here to read the full report by the Sunset Advisory Commission (.pdf file).
To solve that, the commission recommends that the Capital Metro Board of Trustees:
• Maintain a two-month reserve of operating expenses
• Come up with a five-year strategic plan
• Come up with a five-year capital improvement plan
• Take measures to reduce costs and increase revenue
The report accuses Capital Metro of creating massive debt with the MetroRail, while ignoring the cost of maintaining deteriorating bridges and tracks.
Though MetroRail was federally approved, the Sunset Commission found that many bridges on the system will need major repairs or replacement.
The Sunset Commission recommends Capital Metro:
• Maintain a comprehensive rail safety plan
• Hire a rail director
• Make necessary repairs to bridges
• Develop a plan to monitor vendor contracts
• Establish plans for future projects
Another issue cited in the report is the costs associated with in-house transit services. The report states the costs are excessive and not sustainable.
Capital Metro set-up a nonprofit called StarTran, which provides most of the agency's services. The organization was originally designed to resolve conflict between the state and federal labor laws.
News 8 explored some of these same issues in the week-long series, Capital Metro: Mass Transit, Mass Confusion. Click here for the series.
The commission recommends:
• Capital Metro to competitively bid all transit services not directly provided by its own employees.
Finally, the Sunset Commission discovered that the Capital Metro Board of Trustees has not effectively engaged stakeholders, thereby eroding public trust in its decisions.
They recommend:
• Board of Trustees adopt policy that encourages more public involvement
• Get more input on paratransit issues
Though it can't be abolished if it chooses not to take any action, it is better for the agency to follow through.
The Sunset Advisory Commission will review Capital Metro again in another seven years.