June
15, 2005 Transportation Committee Meeting Minutes
Attendees
David Ardman, Barton & Loguidice, PC
John Armstrong, Corning Incorporated
Robert Badger, Clough, Harbour & Associates,
LLP
Fred Buse, Schwartz Heslin Group, Inc.
Chris Cernik, Greenberg Traurig, LLP
Richard Class, Siemens Transportation
Sid David, Northrop Grumman Corporation
Garry Douglas, Plattsburgh-North Country
Chamber of Commerce
Robert Doyle, Golub Corporation
Tyler Duvall, US Department of Transportation
Terry Everetts, Dresser Rand
Company
Bill Fahey, New York School Bus Contractors Association
John Faso, Manatt,
Phelps & Phillips
John Griffin, Griffin Plummer & Associates, LLP
Bill Hollister, Amtrak
Jessica Hulsman, Northeast Solite Corporation
Linda Liszewski, Eastman Kodak
Company
Frank McEnvoy, Frank McEnvoy Associates
Dennis McGlin, United Parcel Service
Tom Minnick, The Business Council of New
York State, Inc.
Anne Noonan, Adirondack Transit Lines, Inc.
Norman Schneider, Griffin Plummer & Associates-Railroads
of NY, Inc.
Stephen Spoljaric, General Electric Energy/AIS
Steve Stallmer, Associated General
Contractors of America
Chuck Steiner, The Chamber of Schenectady County
Meeting Minutes
June 15, 2005
1:00 - 4:00 PM
Call to Order & Welcome
John Armstrong
Corning, Inc.
Committee Chairman
This meeting had been originally scheduled to review the Memorandum of Understanding
concerning the upcoming transportation bond act. Unfortunately, even with a
June 1st completion target date, the MOU was not completed as of
this meeting. When released, we will email the MOU to Transportation Committee
members for review. Then we will determine the best way to discuss the MOU
among committee members.
Tyler D. Duvall
Acting Assistant Secretary for Transportation Policy
Office
of the Secretary
U.S. Department of Transportation
Tyler joined us at this meeting to discuss the Bush Administration's Passenger Rail Investment Reform Act. http://testimony.ost.dot.gov/final/Amtrak05.pdf
This is the proposal that would transition Amtrak into a purely operating company, create a federal-state partnership to support passenger rail, introduce market-based competition to the system and set-up an interstate compact to maintain the Northeast Corridor service.
He began by emphasizing the importance of business input into overall transportation policy. He encouraged us to provide that input at every opportunity and
thought that these kinds of small forums and meetings were a good way to do it.
The Administration's 2006 Amtrak budget proposal was $0. This was not done as an attack on Amtrak but rather to begin an important discussion of the
necessity to change passenger rail service in this country. When Amtrak was created, certain service and financial goals were set. None have been achieved.
The 1970's organizational model originally used is still the same. The status quo is no longer acceptable!
The Amtrak budget in 2005 was $1.2 billion. The request for 2006 is $1.8 billion. More money, year after year, yet no increase and improvement in service.
The Administration knows that we can do better. All 15 lines lose money ranging from $46 to $466 per passenger. Over the years, we have seen innovation take
hold in all modes of transportation but Amtrak passenger rail. The Japan model is fully privatized and profitable. We need to adopt a model that will unleash
competitive activity.
The Northeast corridor moves 20 million people per year. This is 50% of the NY to Washington travel market. Lots of potential. All non-NE corridor passenger
travel carries a $28 per passenger subsidy while long all distance passenger trains carry a $214 per passenger subsidy. We can't continue to run trains
everywhere we currently run them.
He discussed several points:
- Partnerships are important. They are recommending a 50/50 partnership
for capital projects. States and localities are closer to the users and better
focused on these projects. Most are not now partnering so they are opposed.
- Separate operation and track ownership in the NE corridor. The public
should own the infrastructure for more accountability leaving Amtrak to concentrate
on operations.
- Use sound economics. Trains can't run everywhere. Better
operation will result in corridor routes. Development of tourism/travel
models.
- Managed competition. There is none now. Public entities can generate
competitive bidding and other procurement practices.
- Create public/private
partnerships for infrastructure for the future. Freight movements are highest
in decades but tracks can't improve under current model.
Now is the time for business to bring forward their message on passenger rail in the US.
Garry F. Douglas, President & CEO
Plattsburgh-North
Country Chamber of Commerce
Through remarks and handouts, Garry briefed the group on the Western Hemisphere Travel Initiative.
This is a potential new requirement that would require U.S. and Canadian citizens to present a passport "or other document, or combination of documents,
deemed by the secretary of Homeland Security to be sufficient to denote identity and citizenship." This will have major ramifications on business, ordinary
citizens on routine cross border visits and shopping, border communities and schools involved in cross border visits.
Garry outlined the history of this proposed rule coming out of the December 2004 Intelligence Bill. He expressed opposition to any requirement that U.S. and
Canadian citizens have passports, NEXUS cards or some other new form of ID requiring cost and application processes:
- Such requirements would represent a fundamental misunderstanding of
the deep social and economic integration of U.S. - Canadian border regions.
- Such requirements would severely diminish current impulse travel
which is now the main element of tourism in North America.
- Such requirements
will grant further competitive advantages to Europe and China as the rest
of the world moves toward greater integration in the global marketplace.
- Such
moves could actually diminish rather than enhance real security by issuing
hundreds of thousands of new passports or similar documents for casual
use and daily carrying leading to heightened theft.
Garry then discussed recommendations:
- Replace the current unilateral process with a fully bi-lateral, collaborative
discussion involving both countries, including border communities and other
stakeholders.
- The final recommendations must not impede or discourage
current legitimate travel which has existed for two hundred years on the
U.S.-Canadian border.
- Any proposal must be subject to a meaningful economic
impact assessment.
- Final documentation requirements must involve reasonable
options, subject to the judgment of trained border personnel.
- Need
exemptions or allowances for school aged children on field trips, sporting
events and similar situations.
Garry urged the group to send comments to:
Western Hemisphere Travel Initiative proposed Rules
Department of Homeland
Security
Washington, DC 20528
Garry also provided a hand-out from Americans for Better Borders.
Steve Stallmer
Associated General Contractors
Steve brought the group up to date on the discussions in Washington concerning the national transportation reauthorization.
The House is in agreement with the White House. $284 billion is the number and the formula would remain the same. New York State would see a 24%
increase over the 5 year life of the bill. The Senate came out at $295 billion and the White House threatened a veto. It would cover an 18% increase which
would not even cover construction related inflation. The two U.S. Senators support it due to mass transit funding levels. The extension is until July 31st.
Tyler Duvall indicated that private ownership of highway assets is getting
a lot of attention in Washington and around the country and we should be talking
about this in New York State. He also mentioned that we should expect to hear
more on the toll revenue model of financing.
Next Meeting
There was no discussion of a next meeting date.
Once the MOU is released, we'll discuss the best mode of communication to the
committee.
Please contact Tom Minnick at tom.minnick@bcnys.org or 518-465-7511 for meeting questions or further information.
