1. Organizational Structure and Governance
Module 2 Lesson 1
Organizational Structure and Governance
This is a cover slide to introduce the lesson. The lesson will provide an overview of transit system organizational structure and governance.
Dr. Jill Hough
Public Transportation Lecture
Week of September 8, 2014

2. Objectives After attending this lesson, students will be able to:
Understand the different ways that public transportation agencies are structured
Understand the role of transit agency boards of directors and how these boards are constituted
There are many different ways that transit agencies are structured. It can be said that there are at least 52 different ways; for each of the 50 states, the District of Columbia and Puerto Rico. The reality is much more complex. People who work in public transportation need to understand this.
Each public transportation agency has a governing board of some nature. This could be an elected unit of government such as a city or county council or it can be a specifically structured board when the transit agency is an independent unit of government.

3. Overall Context
Public transportation is structured in many different ways
Each state has its own laws
Some agencies perform more than public transportation services
The governing board structure varies
Throughout the country, many transit systems are city and county functions. This is particularly true of systems that operate in medium to small urban areas. In rural settings, the prevalent model seems to be county operation with cooperation between multiple counties. In still other circumstances, regional transit agencies that are separate units of government are the model that is used.
In many states, there are multiple models for operating transit authorities. There can be regional transit authorities as well as local government operation within a single state. Even within a single metropolitan area there can be several models. In the Los Angeles area, for example, the Los Angeles County Metropolitan Transportation Authority is the major operator, however it does not cover the entire county. There are several sub-regional systems, Foothills Transit, as well as municipal operators, Culver City and Santa Monica’s Big Blue Bus.
Each state has its own laws that establish the parameters within which public transportation operates and is structured. What is very clear is that there is no one method that seems to predominate as to how transit authorities are structured, funded and operated. Of course, there are pros and cons to all of these models.
Public transportation in the traditional sense—bus, rail and paratransit—is the predominate function of many agencies. However, this is not always the case. Some public transportation agencies have other functions. In Houston, for example, Metro has responsibility for the operation and maintenance of the freeway system and other major arterials. In the New York area, the Metropolitan Transportation Authority is an umbrella agency that includes public transportation but also has other functions such as toll bridges and tunnels.
The structure of the governing boards is also highly variable. There is no single model that is used. The number of board members is unique to each agency. The representation on the board can range from directly elected individuals, other elected representatives, and citizen members.

4. Transit Organizational Structures
Public transportation is organized in many different ways
There is no one set model that is used throughout the industry
There is not a single method in which public transportation agencies are structured. When we examine the various different ways that agencies are structured, it can be said that each agency is unique and has its own structure. This not only applies to the operating agency, but the governing boards that we will discuss later.

5. Examples are: Regional transit agencies
Municipal (city/county) transit agencies
Statewide transit agencies
Hybrid Models
The way that transit agencies are generally structured can be summed up in the 4 major categories listed in this slide.
Regional transit agencies are those that generally go beyond the boundaries of a single governmental entity and serve multiple jurisdictions. These can serve multiple municipalities and/or counties. In some case they are even multi-state in nature such as B-State Development Agency in St. Louis that serves the metro area in both Missouri and Illinois.
Many transit operations are functions of municipal or county governments. In these situations, they generally function as a department of the parent government although it is not uncommon for the public transportation to be a division of a department such as a public works or economic development department.
There are 3 statewide transit agencies in the United States. These are found in Delaware, New Jersey and Rhode Island. This description applies to the operating entity and not the oversight and funding role that most state departments of transportation provide for public transportation.
The last category is a hybrid model that could combine a regional and municipal transit agency or have both occurring in the same metropolitan region.

6. Duties that Transit Agencies Perform are Varied
Transit only services (bus, rail, and/or paratransit)
Single mode agencies
Some transit agencies perform services beyond traditional public transportation
The most prevalent function that public transportation agencies provide is the delivery of traditional public transportation services. These are usually associated with bus, rail and paratransit operations. Where there are multiple modes in a given transit agency’s jurisdiction, many times they are operated and governed by a single transit agency. However, this is not always the case.
There are examples of single mode agencies. This occurs in several major metropolitan areas. For example, The Bay Area Rapid Transit District—BART—in the San Francisco area only operates a heavy rail system (a minor note that it does contract for feeder bus services in some locations where there is not a local bus operator). Also in the Bay Area, there are several bus only agencies such as AC Transit and Eastern Contra Costa Transportation Authority. METRA in the Chicago area only operates the commuter rail service.
There are several agencies that have responsibilities beyond traditional public transportation services. In an earlier slide the examples of Houston and the NY MTA were cited. Another example is the Golden Gate Bridge, Highway and Transportation District. This is located in the San Francisco Bay Area. The District operates the world famous Golden Gate Bridge but also operates bus and ferry service in the region.

7. Governance Every transit agency has some form of governing board
Just as with any corporate entity, public or private, public transportation agencies have a governing board. This could be an independent board dedicated solely to the agency or it a can be a board that performs other functions than transit such as a city council or a county board of supervisors.

8. Primary Responsibilities
Set policies
Approve budget
Approve major purchases
Select the chief executive officer
Governing boards have many different functions that they perform. Much of the scope of their authority is determined by the enabling legislation that creates the transit agency. As with the entire business of public transportation, there is not a single set of responsibilities that all boards share. There are, however, 4 commons activities that they perform. They are listed above.
The governing board sets the policies that the transit agency operates under. These polices can determine how the agency conducts its business, provides its service, complies with rules, laws and regulation and how the agency operates on a day to day basis.
The governing board must approve the budget for the transit agency. This entails both the operating and capital expenses that the agency incurs on an annual basis.
The governing board also has a role in approving major purchases. These are generally large dollar item purchase, at least in excess of $100,000. Included are all rolling stock purchases, real estate transactions, construction contracts and major consulting contracts.
The last major responsibility for the governing board is to select the agencies chief executive officer. This is the individual who operates the transit agency on a day to day basis. The individual reports to the governing board. It should be noted that this function may not apply when the governing board is a city council or county board of supervisors.

9. Makeup of Board Varies Number of members
Representation based on population, district, or other factors
The makeup of governing boards also varies.
There is no set formula as to the number of appointees. The number of members can be as little as 3 and more than 15.
The manner in which board members can represent the jurisdictions within the agency’s service area can also vary. They board members can be at large. This is probably the case in the majority of instances. However, it is not the only manner. Some board members represent specific geographic areas. This is particularly the case where board members are elected.
At the Southeastern Pennsylvania Transportation Authority, board is composed of 10 members. One member is appointed from each of the 5 counties (Bucks, Chester, Delaware, Montgomery and Philadelphia). The governor appoints one member. The Senate and House majority and minority leaders each appoint one member. This is also an example where the central city/county, Philadelphia, is under-represented in terms of both population and/or transit usage.
At the Greater Peoria Mass Transit District (Citilink), the board is composed of 5 members. The mayor of each of the three jurisdictions appoints one member for each 100,000 or portion thereof.

10. Appointment to Board Varies
Member jurisdiction
Elected officials
By virtue of another position
Appointments to the board also take place in various manners.
Board members may be appointed by the member jurisdictions that they represent on the transit board. This can be done by chief elected officer of the jurisdiction and/ or the jurisdiction’s governing body.
Elected officials, such as in the examples on the previous slide, may appoint members to the board.
In other cases, individuals serve on the board by virtue of another position that they hold.
In almost all cases, the individuals serve as voting members. However, in some cases they are ex officio with no voting rights. The latter is the case at the Capital Area Transportation Authority (CATA) in Lansing, MI, where the Board of Directors consists of 10 members appointed by member towns. Michigan State University and Ingham County have non-voting representation.

11. Who Serves on the Board Varies
Citizen members
Elected officials
Elected official designees
Appointed public officials
Directly elected members
Hybrid of the above
The membership of board, in terms of the source for the board appointment, also varies.
Individuals may be citizen members who do not hold another elected office or an appointed position.
Elected officials who are elected in some other capacity (mayor, council member, county supervisor) are commonly found on transit boards.
In some cases, an elected official may have a designated seat on a governing board. They may have the option of designating an alternate individual to serve rather than serving directly.
Appointed public officials, such as a director of a metropolitan planning organization or a city department head, can serve on transit boards.
In some cases, the board members are directly elected by the public. This is the case at BART in the San Francisco Bay area, AC Transit in Oakland, CA, the Regional Transit District in Denver, CO and Cherriotts—Salem-Keizer Transit in Salem, OR.
Transit boards may be a mix of these individuals and, thus, a hybrid of the above.

12. Paul Larrousse, Director National Transit Institute Rutgers University
Contributor
Paul Larrousse, Director National Transit Institute Rutgers University