Corrupt Bargain in Houston Light Rail Contracts (FR Original Find)

4/23/04 | me

[GOPcapitalist]

FROM TODAY'S HOUSTON CHRONICLE

April 22, 2004, 11:55PM

Metro agrees to contract for next 4 light rail lines

By LUCAS WALL

Metro has taken a significant step toward the construction of Houston's next four light rail lines.

Directors on Thursday authorized signing a five-year contract estimated at $60 million with STV Inc. of New York, the same consortium that shepherded development of the Main Street line, which opened Jan. 1.

...

Six firms competed for the project, which includes options for two two-year extensions. Dennis Hough, the Metropolitan Transit Authority's director of contracts, said STV and its 16 subcontractors stood out as the most qualified companies to continue oversight of light rail construction in Houston.

NOW TAKE A LOOK AT WHAT REALLY HAPPENED:

TEXAS ETHICS COMMISSION
CONTRIBUTOR SEARCH
Please Click On the Report Number to View Reports

STV Incorporated, to Citizens For Public Transportation, $3,000.00 03-JAN-03 http://204.65.203.2/public/216570.pdf

Stv Incorporated, to Citizens For Public Transportation, $25,000.00 26-JUL-03 http://204.65.203.2/public/230485.pdf

NOTE: Citizens for Public Transportation was the pro-Metro Political Action Committee that ran the referendum campaign for the light rail expansion that STV just got.

[GOPcapitalist]

Wham Bam Tram Ping! Follow the money trail and connect the dots to Metro's CORRUPT BARGAIN.

[Hermann the Cherusker]

Oh man! A company gave money to a political campaign?

Have you ever checked how much the Portland Cement Association and similar groups gives to pro-highway referenda and politicians. I'm sure you'd be outraged about that too!

[flashbunny]

The thing is we actually need and use highways. And that the money used to pay for highways comes from people who will be using them.

The choo-choo fanatics instead take money from people who will never use them in order to run nearly empty trains.

[antivenom]

STV Incorporated, to Citizens For Public Transportation, $3,000.00 03-JAN-03 http://204.65.203.2/public/216570.pdf

Stv Incorporated, to Citizens For Public Transportation, $25,000.00 26-JUL-03 http://204.65.203.2/public/230485.pdf

[Army Air Corps]

Don't forget the costs associated with the repairs on the current train due to its numerous accidents; accidents that continue to occur.

[Hermann the Cherusker]

The thing is we actually need and use highways. And that the money used to pay for highways comes from people who will be using them.

Um ... I rarely drive on highways, but you folks keep on taking all the gas tax money I pay while driving on local streets. I could undoubtedly make do with the old US Highway network if I had too for the travelling I do (I already use it a fair amount).

The choo-choo fanatics instead take money from people who will never use them in order to run nearly empty trains.

The trains we ride around Philadelphia and New York and DC are typcially full. Must be a Texas thing to build them and not use them.

[Hermann the Cherusker]

Don't forget the costs associated with the repairs on the current train due to its numerous accidents; accidents that continue to occur.

Those costs *should* (but probably aren't) be paid for by the insurance of the idiot motorists who keep hitting it. Its not like the train is jumping off the tracks and suddenly hitting unsuspecting motorists.

Just how stupid are you guys down there anyway? Don't you know not to drive in front of a moving train and expect it to stop?

This seems pretty elementary to me, like not turning right on red without first looking to check if cars are coming on the road you are turning onto.

[Army Air Corps]

No, it is a bureaucratic thing. When planners place the rails though turn lanes and other oddities, traffic accidents are likely to occur. Also, NYC's trains were built underground (gee, what an idea) so that they would not pose a traffic hazzard. Other parts of the NYC rail system are above gorund so that folks do not run the risk colliding with the bloody train.

[razorback-bert]

Saw one of your pretty new rail cars sitting out front of my motel in Sonora last night. The Metro Transit Police were escorting it to make sure no one stole it in transit.

[Guvmint_Cheese]

What on earth am I going to do with a stolen METRO rail car? Run it into somebody??? Oh yeah, I guess that's what you do with them :-P

[Hermann the Cherusker]

We have in-street trolleys in Philadelphia. I don't ever hear about people running into them. They even run through the left turn lane.

[flashbunny]

"Um ... I rarely drive on highways, but you folks keep on taking all the gas tax money I pay while driving on local streets. I could undoubtedly make do with the old US Highway network if I had too for the travelling I do (I already use it a fair amount). "

That's just the point - even if you rarely use them, you still use them. There are countless people who will be paying for publicly funded mass transit that will never step foot in one. Plus highways are just one of the things that gas taxes pay for. They're an important part of the system. That's like saying they shouldn't build a road in another county with state gas tax dollars becausey you never drive there. The money is spread out to make the whole thing work better as a system - and that benefits all motorists who pay gas taxes and use the system.

Commuter rail is a different beast. Local, state, and many times federal tax dollars are spent on it. They are often sold with underestimations of cost and overestimations of ridership. Along with claims that heaven on earth will materialize at every point along the track if we just spend $80,000 a foot to build it. But they never materialize, and ridership sags in most of these areas. Why? Because if there really was a demand to have these things, private industry would be chomping at the bit to build and run them. But instead they're pushed through by activists who smell nirvana and contractors who smell money.

Ultimately, if you take all the people who pay gas taxes and never use the highway and compare them to all the the people who will pay for but never use commuter rail, the "paid without benefit" pile for commuter rail will be hundreds of times larger than the gas tax pile.

"The trains we ride around Philadelphia and New York and DC are typcially full. Must be a Texas thing to build them and not use them."

It's apparently a los angeles thing as well. People advocate publicly funded rail mass transit citing numerous benefits that never materialize. If people really want these things built and they feel it will be used, then they should pool money and do it through the private sector. The vast majority of people who will pay for this will never, ever use it. That's what's wrong with it.

[lentulusgracchus]

The trains we ride around Philadelphia and New York and DC are typcially full. Must be a Texas thing to build them and not use them.

Yeah, well, the City Planning Director in Houston is from ......<drum roll> New York City. First thing he did when he got here was change all the downtown traffic lights to New York City-style synchronization, so they all turn red at once, and then back to green all at once. Screwed things up royally. And remember the rail line operator's motto: "The public be damned!"

And furthermore, while I'm still on the subject, and since you've vouchsafed to lecture us from your expert database of personal experience riding New York's train system, could you please review for us the significance of those ubiquitous lapel-buttons of yesteryear that read, "I hate the L.I.R.R.!"?

Waiting on expert reply.

[lentulusgracchus]

Saw one of your pretty new rail cars sitting out front of my motel in Sonora last night.

Sonora?! Not Mexico? You mean, the damn rail cars are made in Mexico, too?

[YCTHouston]

...and this is why we hate yankees.

[jettester]

I personally worked with Dennis Hough and found him to be one of the most inept contracts manager I've ever seen. I do not know where Metro found him but I'd always feel like taking a shower after dealing with him.

[jettester]

I'm guessing that since you did not get too specific with your "connect the dots" scenario that you want us to believe that you've found a smoking gun of some sorts? That because this contractor contributed to the campaign that was in favor of continuing to build more light rail, that somehow this gave them some kind of advantage?

Have you ever worked on a contract of this type personally? Let me give you a little insight that might calm you down just a little before you pop your "safeties." It is a normal expectation in doing business like this, that as one of the "winning" contractors for a project, that you might be asked to help "contribute" to any cause that furthers the work to be performed. There is no collusion or nefarious dealings in making this happen. STV has the right, as well as any of its' competitors, to make donations to support the legal process by which they work. The fact that STV followed the legal guidelines and publicly admitted they were supporting the side they did shows that they followed the law. If they tried to "slip it under the table" and got caught, that would be another thing and they should be prosecuted for doing so. But that is not what happened here.

Considering STV was already the winning contractor for this portion of the contract for Metro, I do not see any "conspiracies" in the way this worked out. If, instead, STV had not won the previous contract and then made a contribution only to be awarded the follow-on contract, then I would say you should get a little concerned about the awards process.

I bet you there are more freepers out there who have been part of these kind of transactions (especially sales types) who know exactly what I am talking about. This is normal - you might not like it, but it is legal.

[Hermann the Cherusker]

That's just the point - even if you rarely use them, you still use them.

Last time I drove down a non-toll Interstate was at Christmas time. I don't expect to be doing so again until September, when I head out on vacation. I think I'd rather pay tolls per use instead of $500 per year in gas taxes.

Because if there really was a demand to have these things, private industry would be chomping at the bit to build and run them. But instead they're pushed through by activists who smell nirvana and contractors who smell money.

First off, before American began subdizing highways, rail lines and streetcars and interurban lines were built all over the place only by private industry and linked up all major cities and most minor towns without government assistance. With the advent of the subsidized motor highway, these companies were bankrupted and their capital plant abandoned for scrap. The demand was there before the government changed the rules of the game in favor of cheap auto transportation.

Second, I have yet to hear of a single road financed by private industry on its own. Why aren't they chomping at the bit to build roads? Of course the reason is no road has ever turned a profit. Heck, the busiest highways can't even support themselves when it comes to earning enough through the gas tax from use on them alone to build and maintain them. Most people are not going to be willing to pay the $0.20 per mile in tolls it takes to actually run a highway.

Third, the gas tax only pays for a portion of road expenses in this country. There are many places where sales taxes and other general revenue sources are routed directly to the State DOT. To say nothing of the universal practice of paying for local roads through property tax revenue. I'd be more willing to listen to complaining about "subsidized mass transit" when I also start hearing complaining about "subsidized highways".

It's apparently a los angeles thing as well. People advocate publicly funded rail mass transit citing numerous benefits that never materialize. If people really want these things built and they feel it will be used, then they should pool money and do it through the private sector. The vast majority of people who will pay for this will never, ever use it. That's what's wrong with it.

I'd be more than happy to have my fares doubled to pay full board on using commuter rail.

I strenuously object as well, though, to having to subdize auto commuters through my gas and property tax bills. Are you willing to see the gas tax doubled to remove the subsidization of highway travel?

[Hermann the Cherusker]

The LIRR has long been considered the worst run commuter rail line in the country. It is also one of the worst thought out with the unbiquitous "change at Jamaica".

As to traffic light synchronization, it works great for moving NYC traffic north and south on Manhattan. You can drive from Soho to Harlem and never stop. It sucks for going crosstown, but then, Manhattan is long, not narrow, and far fewer people are going across. Why somebody would think this is a brilliant idea for a round city like Houston is beyond me.

And remember the rail line operator's motto: "The public be damned!"

That was Commodore Vanderbilt, and he was referring to his cross-Hudson ferry operations. Railroad interests cam later.