The PTC and the Agents for the Status Quo

The Hillsborough Public Transportation Club Commission was in the news again continuing their jihad against Uber and Lyft in Hillsborough County.

Particularly popular with millennials, ride sharing services are in a constant battle against the Agents for the Status Quo.

The battle between technology and established rules came to a Tampa courtroom Friday as Uber and the Public Transportation Commission argued over whether the ride-sharing company could continue to operate in Hillsborough County.

The commission issued a cease and desist letter in January, which Uber has largely ignored. Friday’s hearing was on the commission’s request for a temporary injunction barring Uber from offering rides in Hillsborough County unless it complies with local taxi-cab regulations.

It is not only Hillsborough that is blocking the adoption of technology.  Uber has recently announced they will withdraw from Broward County. New York Mayor de Blasio is embattled with Uber, trying to control access to the city streets. Huh? Uber responded with a "de Blasio" mode in their mobile app to show excessive wait times due to de Blasio's rationing plan in the city.

But de Blasio has a plan to reign in Uber.

A top de Blasio ally said City Hall also expects the city’s organized left — the labor movement and its outgrowths — will help organize opposition to Uber. They are the closest thing around to natural supporters for the mayor’s side, because it’s hard to imagine de Blasio rallying much of anyone to the yellow cab industry.

Align with the status quo unions to avoid the future. Not a force ready for change.

Uber vs. status quo

Even Hillary weighed in as a Luddite, in her typical have it both ways style.

Speaking last week at the New School in Manhattan, presidential candidate Hillary Clinton said she wanted to help the hard-pressed middle class.

But she also attacked the freedom that produces dynamism.

She brought up what she called the “on demand” or “gig economy,” meaning upstarts like Airbnb, which lets people book their homes for short-term rentals, and such ride-sharing companies as Uber and Lyft. She said this development is “creating exciting opportunities and unleashing innovation, but it’s also raising hard questions about workplace protections and what a good job will look like in the future.”

She added that, as president, she would “crack down on bosses who exploit employees by misclassifying them as contractors.”

Speaking of "raising hard questions", Hillary's had enough problems figuring out her email lately. She would better serve us if she were to crack down on herself exploiting legal loopholes and misclassifying email she owes the people she wants to serve.

Talk about not getting it. Hillary, who last actually drove a car in 1996, likely has not been in a taxi since forever, is clueless about modern application of technologies... and economics, and personal choice and motivation.

I wonder what she thought about the iPhone when it was introduced.

On second thought, I don't want to know.

Uber drivers work when they want, stop working when they want. Uber has no control of their schedule. The drivers only get paid when they work. They are independent contractors. Welcome to the new world of the gig economy.

But with all her driving experience, Hillary knows better.

Meanwhile, taking a strong stand for a politician these days, Jeb Bush rode Uber in San Francisco recently.

Jeb's no technophobe.

According to this recent Wall Street Journal commentary:

Republican presidential candidates are having fun with all this. Marco Rubio,who last year sided with Uber over regulators in Miami, accused Mrs. Clinton of trying to “regulate 21st-century industries with 20th-century ideas.” Jeb Bushpointedly traveled by Uber for his visit to Thumbtack, a Silicon Valley startup. Meanwhile, Rand Paul says he would like our government to adopt the Uber model—more information and customer ratings—while Ted Cruz says his campaign will be as disruptive of politics-as-usual as Uber is of old business models.

At the state of Florida level, state Senator Jeff Brandes is preparing to take down the PTC again.

Led by state Sen. Jeff Brandes, a Republican from St. Petersburg, lawmakers have contemplated a number of bills over the past two sessions that would prevent local governments from over-regulating the ride-sharing companies. One pitched last session would have created a statewide regulatory framework for the companies that might have eliminated the local regulations constraining the companies. But the bills failed to pass.

Efforts by some state lawmakers over the years to eliminate the PTC altogether and hand the regulatory duties over to county officials have also failed. Brandes says he is determined to try again when the Legislature meets in August.

“There’s no reason for the PTC to exist,” he says. “It’s a red-tape factory.”

The commission’s regulation of Uber and Lyft limits opportunities for people wanting to earn extra cash and stymies innovation, he says. No other county in the state has an agency like the PTC.

Hillary, de Blasio, and the PTC are working against new transportation and work choices, while protecting the taxi industry, which they avoid in their chauffeur driven limos and SUVs.

They are the new Agents for the Status Quo, protecting a favored industry, the taxi club, who donates back to the Agents for the Status Quo for campaign donations. Yet another circle of money they use against the rest of us.

This not a right vs. left issue. David Plouffe, formerly Obama's campaign manager, is working for Uber. Hillary and de Blasio are on the left, but much of the Hillsborough PTC leadership are Republicans.

Locally, the Hillsborough Commissioners have started the process to sell us on a new sales tax to improve transportation. Yet three Republican commissioners on the PTC board - Ken Hagan, Victor Crist, and Al Higginbothom, seem to spend more effort trying to run Uber and Lyft out of town than they are exerting political leadership on the flawed GoHillsborough plan.

The left hand does not know what the right hand is doing.

Meanwhile, Uber continues to invest in the state of Florida, having just announced their Miami headquarters.

One of the world's leading tech innovators, Uber, is investing in Miami where they are allowed to operate, rather than locally in Tampa, where we talk about Innovation Alliances and Destinations. But won't walk the walk.

Uber noticed. Will others innovators notice?

If the Republicans were smart, they'd start to use this "gig economy" with Uber and Lyft as an issue at the national level, since it is a favorite of millennials. Hillary won't be able to defend her position with more dissembling. Then perhaps millennials will listen to who's really pro-innovation, and who's the Agent for the Status Quo.  Hopefully our local sheep politicians will then get the message and stop acting as enemies of the future.

Is Uber the future? Let's find out.

“Throughout history, poverty is the normal condition of man. Advances which permit this norm to be exceeded — here and there, now and then — are the work of an extremely small minority, frequently despised, often condemned, and almost always opposed by all right-thinking people. Whenever this tiny minority is kept from creating, or (as sometimes happens) is driven out of a society, the people then slip back into abject poverty.

This is known as "bad luck.”

― Robert A. Heinlein

Taxes, Transit, Trains and Transportation Reality

A recent Tampa Bay Times editorial accuses the PLG of being in "transit denial"

The group — composed of the seven county commissioners, Hillsborough's three mayors and the chairman of HART, the county mass transit agency — got its first look at a multibillion dollar list of unfunded road and transit projects. But rather than transform the wish list into a thoughtful targeted proposal, the group sent the entire wish list out for a months long listening tour. Members also agreed to — what else? — hire a consultant to build public support for a plan that is not really a plan that they insisted they are not trying to sell (emphasis mine).

Sounds a bit similar, though for perhaps different reasons, to what we previously posted here. The Hillsborough County Transportation Policy Leadership Group punted on presenting transit options and presenting their draft PLAN at their long awaited meeting on Tuesday, August 12th.

The Tampa Tribune yesterday weighed in with their editorial:  Time for leadership on transportation:

It would be funded by a 1-cent sales tax increase that would raise an estimated $6 billion over 30 years. (emphasis mine)

Watch the video or read the transcript from the August 12 Policy Leadership Group meeting.  County Administrator Mike Merrill states numerous times they have NO transportation plan. They have a list of projects they want to take to the public in some type of "public outreach" effort.  Therefore, we don't know what the "it" is but the Times and Tribune assume a referendum for a 14% sales tax increase for at least 30 years is the only way to pay for "it".

Based on the information on the Transportation and Economic Development website under the section Managers and Meeting Briefing, July 29, we already started looking at all these projects. A 30 year sales tax increase would generate about $6.1 BILLION but this list of proposed projects costs between $12-$15 BILLION (operating and capital costs over 30 years). The non-transit list contains projects of approximately $4.2 billion of the $12-$15 Billion transportation ideas. The non-transit list includes $680 million for sidewalks and bike paths that do nothing to relieve congestion and it also includes expensive complete streets and streetscaping that do nothing to relieve congestion. 

The elephant in the room is our neglected roads. Our road budget, at one time, has been $50 million to almost $100 million a year. The Community Investment Tax was sold to voters as a source of road funding for 30 years. That money is now gone and our road budget has been reduced to about $10 million for the last few years.  For FY2015, the road budget is a measly $6.5 million. The budget for Animal services is over $8 million in FY2015.

Our county commissioners have known there's a critical road funding gap.  This is not new news. In addition, it appears some road improvements were held hostage back in 2010 when some commissioners anticipated the rail referendum passing. The referendum failed.  It's four years later and nothing has been done since, including re-prioritization of monies from general funds, to fund our roads, even as the size of our county budget has grown back to it's pre-recession size. Where exactly is all the money being spent?

Neglected roads in Hillsborough

According to this email blast from pro rail/transit lobbying group Connect Tampa Bay:

The days of blindly spending money on roads must end. Its time to embrace a balanced approach that treats all ideas equally and gives everyone in Tampa Bay options.

Are they out of touch with reality?

The reality is we've been blindly neglecting our roads. The F-rated roads shown above confirm our roads have been neglected for years. Some county commissioners have embarrassingly said the same thing. A road budget of $6.5 million for a county of 1.3 million residents is NOT "blindly spending on roads".  

Here's a list collected during the 2013 budget cycle of unfunded Transportation Opportunities:

2013 Transportation Opportunities - $89 million

The state and FDOT is doing their part as we see construction on so many of our state and interstate highways, I-275, I-75, Veterans. Governor Scott's "Let's keep Florida moving" plan is investing in expanding our road network to reduce congestion.  He's accelerated some road projects in the Tampa Bay area to do just that.

Governor Scott's Let's Keep Florida Moving

County taxpayers pay $70-80 million a year to fund transit services at HART. Compared to the $6.5 million budgeted for roads, today we are spending 10-15 times on transit that less than 2% use in Hillsborough County than we do on our roads that we all use. Even the buses use roads.

Transit supporters, who have come out in support of a 14% sales tax increase, made public comments at the June 18 BOCC meeting right before the then scheduled June 26 Policy Leadership Group meeting. Their public comments can be found starting at page 16 of the June 18 meeting transcript here. They advocated that for any new transportation revenues, 75% must go to transit. 

On June 18, the June 26 meeting was still scheduled as County Administrator Mike Merrill said this:

THAT'LL BE BROUGHT TO THE POLICY LEADERSHIP GROUP ON JUNE 26th, SO THAT WILL BE THE FIRST TIME THAT THE ENTIRE TRANSPORTATION PLAN IS PRESENTED (emphasis mine). 

THERE WILL BE A BALANCE OF TRANSIT 

One of the transit supporters at the June 18 BOCC even stated:

PINELLAS HAS A WELL-THOUGHT-OUT PLAN THAT WE CAN SUPPORT FOR A MULTIMODAL TRANSIT SYSTEM THAT HAS SUPPORT FROM BOTH POLITICAL PARTIES

Greenlight Pinellas, as a well-thought out plan, is new news to us.  Some politicians from both parties may support it, but the Pinellas County Republican Party unanimously voted AGAINST the Greenlight tax increase and the Pinellas County Democrat Party refuses to take an official stance and endorse Greenlight. Those are Pinellas County voters, so much for a well-thought out plan.

How equitable is spending 75% of some new revenue source for transportation on transit to the 98% of us who use roads everyday? Is that a "balance of transit"? If a sales tax increase was pursued as has been mentioned, that would be almost $4.6 Billion of the $6.1 Billion over 30 years. The only reason for making such a statement is to build high cost light rail corridors that costs billions. 

It doesn't take billions to improve our bus service. Hillsborough County's bus service could DOUBLE under the current HART TDP Vision Plan, which is not currently funded, at a cost of approximately $464 million. This expansion and improvement of bus service could probably be funded locally without relying on uncertain federal funds that have all kinds of strings attached and increases the cost. 

The Transportation Policy Leadership Group is about to embark on a public outreach effort on all these transportation ideas. They must NOT hold our roads hostage in pursuit of some massive, expensive transit plan that requires a costly redesign of our county.  It would be a risk to taxpayers to pursue some huge, bold transit plan that banks on receiving federal dollars but that may NEVER qualify for federal funding.  As the AECOM transit assessment concluded:

Hillsborough County should approach making transit investments cautiously and prudently.

We can improve and expand our bus service, most likely with local funding, and do it within 10 years not decades into the future. We can reduce the burdensome PTC regulations to enable ride-sharing services like Uber, Lyft and others. 

We can bring back the golf cart short hop transportation services in South Tampa and downtown Tampa that the PTC forced out of business in 2009. They use golf cart services in Delray Beach, why not here? We can become an innovative leader of autonomous vehicles and be flexible enough to be able to utilize the next new transportation technology.

Golf Cart Short Hop Transportation Services on Atlantic Ave.
 in Delray Beach, FL

But first and foremost, the Transportation Policy Leadership Group must resolve our critical road funding gap. 

PTC Cronyism Exposed

Why is Uber, Lyft and other ridesharing services having problems with the PTC?  Because the taxi cab cartel continues to be alive and well in Hillsborough County.  Because the Public Transportation Commission (PTC) is a poster child of regulatory capture as we posted previously. 

The article below about a fund raising event for Yolie Capin was published in the La Gaceta newspaper.  Capin is currently a Tampa City Council representative for District 3 at Large district running for re-election in March 2015. It's never too soon to start the campaign donations flowing.

 Fundraiser for Democrat Tampa City Councilwoman Yolie Capin
 announced in La Gaceta newspaper

The municipal races are non-partisan. Capin is a Democrat and a number of prominent Democrats are shown on her fundraising host committee:  County Commissioners Kevin Beckner and Les Miller (previously on the PTC), Betty Castor, Property Appraiser Bob Henrique, Linda Saul-Sena and Alex Sink.

What else do we know about Capin?  She is the Vice-Chair of the PTC. Who else is on Capin's host committee? Republican County Commissioner Victor Crist who is the Chair of the PTC. Also on the host committee are Lou Minardi and Nancy Costellano.  Who are they? Minardi is the President of Yellow Cab. Nancy Costellano was a former executive with United Cab for many years and she now owns ABC Taxi.

ABC Taxi's address is 2003 W. Kennedy, Suite B, Tampa, FL according to sunbiz.org. Who else shares that address? From our December 10, 2013 post:

At the local Delegation meeting, a John Madiedo spoke opposing the proposed bill to abolish the PTC. According the PTC's November 13 minutes, Madiedo is an insurance agent for Professional Insurance Center who states that he insures 70% of the public transportation vehicles in Hillsborough County. In addition, his business is located at 2003 W. Kennedy Blvd. Tampa, FL 33606. Guess where the PTC is physically located? According to the PTC website they are located at 2007 W. Kennedy Blvd., Tampa, FL 33606. 

I found it interesting that they are located basically next to each other so searching for some additional information I found this article The Public Transportation Commission is under fire following indictment of former Commissioner Kevin White reported by WTSP's Mike Deeson in 2011

"The PTC rents its building from John Madiedo, who provides and does the insurance for the almost all of the taxicab companies the PTC regulates. 

When Kevin White had his security firm, he rented the office next door from the PTC and Madiedo. However, since White left the space, it is being rented by Michael Moses. Michael Moses is the owner of the taxicab company that caused some controversy by loaning White the money to buy his new Riverview home."

We all remember Kevin White, the chairman of the PTC who was arrested and convicted on bribery and corruption charges related to his position on the PTC and he went to prison. According to this TBT article back in May 2011 which was before White was arrested in June 2011, White was upside down on property loans yet secured another loan for a house in Riverview.  How did that happen?  The TBT reported that White got a mortgage provided by Moses Investment Holdings.

The only listed officer for the company is Michael J. Moses. Moses is part owner of two cab companies, a limousine operator and van service, all regulated by the Hillsborough County Public Transportation Commission, which decides who gets permits to operate cars for hire.The loan to White is the only mortgage Moses Investment Holdings has ever recorded in Hillsborough County. 

Agency records show Moses formed taxi, van and limo services, all under the name Bay and Beach, in 2009 with Nancy Castellano, a former longtime executive with United Cab. 

The next year he became an officer with ABC Taxi, which Castellano owned. 

Together they hold permits to operate 21 cabs, three vans and seven limousines.

This is how the taxi cab cartel operates. The SPT reported in September 2000 when a cab driver for United Cab inquired about how much taxi cab meters cost to a salesman he was fired.  Who fired him?  Nancy Costellano, then General Manager for United Cab.  SPT's article states:

...the Hillsborough Public Transportation Commission limits who can run a taxi cab business. Drivers must have a permit to operate, and in Hillsborough, nearly all the permits are held by United Cab, Yellow Cab or affiliates or subsidiaries of those companies. 

The Transportation Commission has awarded almost all of the 472 existing permits to the two cab giants. Drivers say the commission's regulations, which require 24-hour operation, make it hard for small businesses to break in.

This was back in 2000 and the taxi cab cartel anti-competitive attitude and behavior is still in play today.  Why hasn't the PTC eliminated the burdensome $50 minimum charge for limousine service?  

How does this taxi cab protectionism continue and why? Because the circle of money keeps flowing. Campaign donations flow from the taxi companies to the elected officials sitting on the PTC Board and the Board continues to protect the taxi companies by stifling competition and keeping burdensome regulations inhibiting free market competition.

The coziness of these relationships are exposed by this fundraiser for Yolie Chapin, Vice-Chair of the PTC and her host committee that consists of the Chairman of the PTC Victor Crist, two other Democrat County Commissioners and the two largest cab companies in the county. 

Were there any violations of our Sunshine Laws at this fundraising event?

Uber is now worth $18 BILLION today. The market says these are services we want and Uber and others such as Lyft, SideCar, etc. want to provide.  That's how free markets work.

Uber becomes most valuable startup

We will note that United Cab, Yellow Cab or ABC Taxi are NOT Better Business Bureau accredited companies.

This is why the taxi cartel is fighting so hard against Uber, Lyft and ride-sharing services: the taxi medallions which in today's technological age may seem archaic. 

“At the heart of our economic system is the idea of change, and that government can’t be in the business of protecting old models,” says Lee McGrath, an attorney with the libertarian-leaning Institute for Justice that has jumped into the lawsuit, representing drivers like Burgess. “If there were medallions associated with the buggy whip, we probably would still have them today.”

Here's the transcript from the PTC meeting in May. The taxi cab companies brought up the issue of insurance with regards to the ridesharing services. Those issues can be resolved. No wonder Mr. Madiedo opposes getting rid of the PTC. He's got a monopoly providing insurance to the taxi cab companies the PTC regulates.  

After public comments were made PTC Chairman Commissioner Crist decided to launch into what sounded more like a campaign stump speech. He meandered through his political bio starting with "my first elected position was student treasurer in seventh grade" and he won the candy bar contest and ended with a plea for his credibility. Crist is running for re-election in November. 

To make sure Crist makes clear who's in charge at the PTC:

I WANT TO BE CLEAR RIGHT UP FRONT.WE, THIS BOARD, THIS AGENCY, IS THE REGULATORY BODY, NOT THE INDUSTRY.IF THERE'S ANY NEGOTIATION, IT WILL NOT BE BETWEEN THEM AND YOU, IT WILL BE BETWEEN THEM AND US AND YOU AND US.WE WILL MAKE THE FINAL DECISION, AND EVERYBODY WILL HAVE TO LIVE WITH IT.END OF THE DAY, WE'RE THE REGULATOR 

Is the PTC the Regulator or Protector of the taxi cartel?  

As this Washington Times Editorial states

Prosperity for all comes from encouraging innovation, not coddling greedy cartels.

We've connected the dots. The PTC cronyism has been exposed. 

Actions speak louder than words. The PTC cannot reform itself. 

Time for the PTC circus, it's circle of money, protectionism and cronyism be eliminated!

Tampa Bay Transportation Roundup to Keep Up

There is a lot happening with the transportation issue in Tampa Bay.  Here's a roundup to keep up with what's going on this issue.

We'll start with the most serious matter - the issue of a taxpayer funded entity using tax dollars against the taxpayers. 

The Eye previously posted here, here and here about the egregious activities that PSTA's taxpayer funded Greenlight Pinellas advocacy campaign has been doing under a false claim of "education". We reported that PSTA's CEO Brad Miller spoke at the kick off event of the private advocacy campaign "Yes for Greenlight" in February on taxpayer time and dime. We wondered who Miller was "educating" speaking to a group of people who already support the referendum. That was a collaboration rah rah event not an education session. Is that even legal? 

PSTA CEO Brad Miller speaks at Yes for Greenlight,
private pro Greenlight advocacy campaign's kick off event 

Thankfully, state senator Jeff Brandes asked for an investigation and the Tampa Bay Times reported:

The state Department of Transportation launched an investigation Thursday into how the Pinellas Suncoast Transit Authority spent public money to educate voters about Greenlight Pinellas.

Common sense tells us that Greenlight Pinellas, hiring PR firm Tucker Hall and spending almost a million dollars of taxpayer money, is an advocacy/marketing campaign encouraging voters to support the Greenlight Pinellas referendum. If the common sense answer is not provided with this investigation of Greenlight, then don't our electioneering laws need reforming?

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The first campaign filing for the private pro rail PAC "Friends of Greenlight" was filed.
 The SaintPetersblog reported:

According to the Pinellas County Supervisor of Elections website, of the nearly forty donations the committee received through March 31— totaling $66,350 in cash and $7,084 if in-kind offerings — the largest contributor was a $50,000 check from utility giant Duke Energy. The Pinellas Realtor Organization also gave $10,000. 

Advocacy group Tampa Bay Partnership chipped in with administrative services worth $6,781 and $266 in office supplies while TBP chair Barry Alpert gave $1,000. 

Palm Springs-based SEIU Florida Public Services Union also donated $2,500

Same playbook as 2010. Duke Energy of the Tampa Bay Partnership seeded Friends of Greenlight with $50K like SunTrust of the Tampa Bay Partnership seeded the initial $50K to Moving Hillsborough Forward in 2010. The circle of Tampa Bay Partnership money goes round and round for rail.

SunTrust donates $50,000 to Moving Hillsborough Forward 3/26/2010

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The results of a recent poll of "likely voters" in Pinellas commissioned by SaintPetersblog and done by professional organization StPetePolls show the referendum in trouble:

Just 29% of likely voters say they plan to vote ‘Yes’ to “approve the Greenlight Pinellas transit referendum and sales tax increase on the ballot in November.” Forty-eight percent are opposed to the plan, while 23% say they are unsure.

Even when asked if they would favor the referendum if the sales tax increase was smaller and funding only went toward buses with no light rail provision, a majority of likely voters opposed the plan (52% to 23%).

Interesting results after PSTA spent $400K of taxpayer dollars last year to launch and lobby Greenlight Pinellas and they are spending another $400K of taxpayer dollars this year. 

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There is lots of confusion surrounding the Howard Frankland bridge. Does Greenlight Pinellas goes over the bridge? NO. 

The  FDOT 5 year work plan has the Howard Frankland Bridge replacement project in the District 7 plan. FDOT agreed to spend $25 million to include some infrastructure to accommodate future premium transit. The Tampa Bay Times reported late last year:

At the Tampa Bay Partnership breakfast (emphasis mine), Florida Department of Transportation Secretary Ananth Prasad said his agency has committed to spending $25 million on a substructure that would strengthen the bridge span, FDOT officials said. 

"We're not building any amenities but rather we're making the structure strong enough to build a light rail," said Ming Gao, FDOT planning manager.
Gao said the project is still in the study phase, so the announcement does not alter previous progress. 

The bridge was built in 1959 and is structurally worn. Current plans include swapping out the bridge with a new one that looks much similar. But the new design would include room on either the side or middle lanes for "transit envelopes," or spaces where buses, tolled express lanes or a light rail could fit (emphasis mine).

We did find this from FDOT letter in 2012:

FDOT was already considering managed/bus toll lanes
and congestion pricing

The outcome of the Greenlight Pinellas referendum could weigh into the final decision but here's some cost information regarding the replacement and adding some type of transit:

• "The price to replace just four lanes of roadway will be about $367 million" FDOT said. That does not include relieving the traffic bottleneck at the Tampa International Airport/Memorial Highway interchange.
• If the project adds two express lanes in each direction to accommodate bus rapid transit and cars paying tolls to avoid the free, congested lanes, the cost would increase by $339 million to $706 million.  
• And if the new bridge were built to accommodate a transit exclusive guideway — a corridor for either light rail or bus — the cost would increase by $989 million to $1.36 billion. That price would include additional work in both Hillsborough and Pinellas to accommodate an enhanced transit system and link with new transit terminals."

Adding bus/managed toll lanes is LESS than 2 times the cost of replacing the bridge while adding light rail would cost 4 times MORE than the cost of replacing the bridge.  Bus/managed toll lanes are more cost-effective, would be higher utilized, it is user pays based on the individuals decision and the revenue generated would go back into improving and maintaining the toll lanes. Light rail would be high cost, lower utilized, the fares are highly subsidized by all taxpayers whether they ever use it or not, it would not relieve congestion and a new long term revenue source would need to be found to keep it operating.

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The Hillsborough County PTC continues to be a problem. The PTC has a history of corruption and cronyism. They hired a lobbyist last year and the taxi cab industry hired their own lobbyists to descend on Tallahassee. The PTC Chairman County Commissioner Victor Crist even recently went up to Tallahassee. The PTC truly is a three ring circus as we posted before here, here and here. State senator Brandes and State representative Grant have been trying to reign in the PTC and burdensome regulations but it's difficult against an entrenched industry who wants to protect their turf and inhibit competition.  

The Tampa Bay Times recently reported on Brandes and Grant's bills in the state legislature and Uber and Lyft moving forward to provide service.

Lyft is going rogue. The ride-sharing service, which uses a smartphone application to connect passengers with drivers who use their personal vehicles, began accepting passengers in Tampa on Friday evening.Under Grant's revised proposal, special districts could not impose a minimum wait time or fare on app-based commercially licensed driver services, such as town cars and limousines. Special districts would also be prohibited from restricting the number of available limousine permits.

While the bill would make way for Uber's black car service to operate here, it would not affect ride-sharing services such as Lyft, which the PTC considers a taxicab company. 

Lyft, which bills itself as a technology company, sees things differently. 

"Lyft's new peer-to-peer model does not easily fit into existing frameworks," Lyft spokeswoman Paige Thelen said in an email Friday, "which is why we created a strict set of safety standards that are far more strict than what's required of taxis and limos."

The Tribune reported Friday:

Uber, a ridesharing service that lets customers use a smartphone to find a driver, said late Friday afternoon the company has started offering its UberX service in Tampa. The announcement comes only a few days after Lyft, which offers a similar service, began operating in the city. 

Both are part of a new wave of companies offering services that challenge the way traditional taxi and limousine services operate. With UberX and Lyfft, customers use an app to find drivers, who often aren’t professional drivers and use their own cars. Rates can fluctuate and could rise during high-demand periods.

Safety issues, background checks, licensing and insurance liability can all be dealt with without the burdensome PTC. Technology and the Internet allows anyone who uses these new services to immediately rate the service they were provided for all the world to see.  That's quicker than any PTC regulator could ever report. Technology can and should rid us of some bureaucracy.

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We continue to follow what is going on with TBARTA as we've reported TBARTA has numerous issues. It appears now there is a proposal to merge/consolidate the MPO's Chairs Coordinating Committee into TBARTA. At a meeting Friday of the West Central Florida Metropolitan Planning Organizations Chairs Coordinating Committee Staff Directors Workshop, this presentation was about the consolidation. 

TBARTA was not originally established to fairly represent, on a proportional population basis, the counties it represents. TBARTA was created in 2007 at the behest of the special interest organization Tampa Bay Partnership and the Partnership has always appeared to have dominate influence over TBARTA. Friday's presentation confirmed that influence. This is one of the recommendation's from the consolidation presentation: 

Coordinate legislative priorities developed by TBARTA, MPO's
and Tampa Bay Partnership, secure funding as "one voice"

Tampa Bay Partnership is not elected nor appointed but they do have dominate influence over TBARTA. When a special interest has that much influence, isn't that cronysim? Would the Partnership then have dominate influence over the MPO's too with this consolidation? This should be raised as a concern and a red flag for the MPO's to NOT merge into TBARTA.  

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We'll end with a video from NoTaxForTracks Pinellas At the Annual Oldsmar Parade.  
Lots of resounding NO's in Oldsmar to raising their taxes to pay for a train. These are people who actually live and vote in Pinellas and not deep pocketed special interest groups or people who don't even live in Pinellas and can't vote on Greenlight.

PTC's Regulatory Capture on Display

The Hillsborough County PTC is a case study in regulatory capture.  

First, what is regulatory capture? It is defined by Investopedia as

Regulatory capture is a theory associated with George Stigler, a Nobel laureate economist. It is the process by which regulatory agencies eventually come to be dominated by the very industries they were charged with regulating. Regulatory capture happens when a regulatory agency, formed to act in the public's interest, eventually acts in ways that benefit the industry it is supposed to be regulating, rather than the public. 

Public interest agencies that come to be controlled by the industry they were charged with regulating are known as captured agencies. Regulatory capture is an example of gamekeeper turns poacher; in other words, the interests the agency set out to protect are ignored in favor of the regulated industry's interests.

Wikopedia explains 

Regulatory capture is a form of political corruption that occurs when a regulatory agency, created to act in the public interest, instead advances the commercial or special concerns of interest groups that dominate the industry or sector it is charged with regulating. Regulatory capture is a form of government failure; it creates an opening for firms to behave in ways injurious to the public (e.g., producing negative externalisties). The agencies are called "captured agencies". 

Recent events put the PTC's regulatory capture on display.  Last week's local Hillsborough County Delegation public hearing included several local bills.  One of them was proposed by State Rep Jamie Grant and State Senator Jeff Brandes for a Hillsborough county referendum to abolish the PTC, if the referendum passed.  For transparency, I spoke in support of the bill though I preferred since the state legislature created the agency 38 years ago, they should be able to abolish it without going thru a referendum. There may be some legal reason why a referendum is necessary, but I do believe that if a referendum was held, it would pass.  And the special interests, mostly taxi cab and limo services that benefit from the PTC, must think so too because they showed up en masse to oppose the bill. 

Victor Crist, county commissioner and chairman of the PTC who opposed the bill, spoke first. He laid the groundwork for the oppositions talking points for the day to fuel a fear that bad or corrupt service would occur in Hillsborough if not for the PTC and that the PTC is required for public safety. Crist further stated that they are working an internal audit plan focused on internal staff policies and procedures. That audit plan was discussed at the PTC's November 13 meeting per the meetings transcript where Interim Director Kevin Jackson recommended the audit be done by the county's Internal Performance Auditor and the PTC unanimously voted on a motion to do that. However, when Rep. Grant asked Crist if his "reform" plan includes reforming the $50 minimum limo charge, Crist simply stated that his highest priority is what the audit is focused on, internal policies first. 

After Crist, the special interest troops who opposed the "abolish the PTC" bill and support maintaing the status quo were lined up to speak. Here's where the PTC as a "captured agency" was on full display. Public safety was their cry of the day as if the 66 other counties in Florida who do not have a PTC have no safety regulations.  

No one from either side stated there should not be safety regulations -- background checks, vehicle inspections--common sense safety regulations that can be managed by the county. But as one speaker stated who supported the bill, there are good regulations and there are bad regulations.  If 66 other counties can manage their vehicles for hire, why can't our county commission?  For goodness sakes, the entire county commission makes up our entire Environmental Protection Commission aka EPC. One of the most compelling cases against the PTC was made by Rep. Grant when he pointed out that the PTC is accountable to no one.  Apparently the only way the PTC can be held accountable for bad, anti-free market, anti-competitive regulations is thru lawsuits.

So now there is a lawsuit filed by the Institute for Justice (IJ) regarding the burdensome $50 minimum charge to step your foot in a limo, whether your destination is 2 miles or 20 miles.  Yesterday IJ won their first hurdle when the judge dismissed the Motion to Dismiss" filed by the defendants as the Tribune reported

A limousine company and two limousine customers won the first round in their lawsuit challenging a $50 minimum fare rule set by the Hillsborough County Public Transportation Commission. 

Circuit Judge Charles E. Bergmann denied a motion Monday by county lawyers to dismiss the lawsuit filed by Thomas Halsnik, owner of Black Pearl Limousines, and limousine customers Kenrick Gleckler and Daniel Faubion.

I caught the end of the hearing and an important piece of information not reported is there is a Motion to Intervene filed by Red Top Cab Company and West Coast Transportation Services doing business as West Coast Shuttle.  According to Sunbiz.org, the Florida Department of State Division of Corporations website, I did not find a West Coast Shuttle corporation registered but did find Red Top Cab and West Coast Transportation Services. Also registered is Yellow Cab Company of Tampa, Inc.  that has the same address and Registered Agent as the other two companies. Yellow Cab is one of the largest taxi cab services in Hillsborough county with exclusive access to TIA with United Cab. A hearing is scheduled with Judge Bergmann to hear this motion by the Interveners. Once again, regulatory capture was on display by the very special interests that the PTC regulates.

After the hearing, I spoke with the IJ attorney Justin Pearson. He was happy with the decision and stated, 

"It's not against the law to give customers a better deal and be able to bargain for themselves.  The PTC agrees that it is against the law, but the judge agreed with IJ and has allowed the lawsuit to move forward. There was an agreement to dismiss the PTC chairman Victor Crist from the lawsuit but other than that change, the lawsuit will move forward in its entirety."

I asked Pearson what happens next and he explained

"Next is Discovery where both sides will be able to ask questions for information each side has. The interveners representing the taxi cabs and limos confirms the entrenched interests will use their own money to hire an attorney to intervene in a lawsuit to protect their entrenched interest. After Discovery will be a Motion for Summary Judgement."

The Eyes glad to see the lawsuit moving forward and we will be watching it as it does.

Let's regress for a moment.  At the local Delegation meeting, a John Madiedo spoke opposing the proposed bill to abolish the PTC. According the PTC's November 13 minutes, Madiedo is an insurance agent for Professional Insurance Center who states that he insures 70% of the public transportation vehicles in Hillsborough County. In addition, his business is located at 2003 W. Kennedy Blvd. Tampa, FL 33606. Guess where the PTC is physically located? According to the PTC website they are located at 2007 W. Kennedy Blvd., Tampa, FL 33606.  I found it interesting that they are located basically next to each other so searching for some additional information I found this article The Public Transportation Commission is under fire following indictment of former Commissioner Kevin White reported  by WTSP's Mike Deeson in 2011

The PTC rents its building from John Madiedo, who provides and does the insurance for the almost all of the taxicab companies the PTC regulates. 

When Kevin White had his security firm, he rented the office next door from the PTC and Madiedo. However, since White left the space, it is being rented by Michael Moses. Michael Moses is the owner of the taxicab company that caused some controversy by loaning White the money to buy his new Riverview home.

Cozy huh?

The local Delegation failed because there must be a majority of the state senators and a majority of the house representatives separately approve even if there is an overall majority that approves.  There was not a majority of house representatives who approved.  Together with Democrat House Representatives Janet Cruz, Mark Danish, Betty Reed, Darryl Rouson, Republicans Jake Raburn and Dan Raulerson voted no so the House side opposed 6-3.

We will continue monitoring reforms the PTC implements and perhaps a future state bill will stop the burdensome regulations.  According to this Times article 

Rep. Grant and Senator Brandes said they now plan to pursue a statewide law. It would not seek to eliminate the PTC, but rather would ban what they see as transportation regulations that are anticompetitive and anti consumer.

"The biggest frustration today was that the narrative was framed that public safety and a competitive market can't coexist in Hillsborough County," Grant said.

The PTC has been able to survive for 38 years because they are accountable to no one. That's why there has never been disciplined policies and procedures documented or enforced. That is indefensible after 38 years. The cronyism is deafening.  Also, it appears Hillsborough County provides much of the support structure already:

• Three County Commissioners sit on the board with one of the commissioners as the current Chair
• PTC meetings are held at County Center with county staff support
• Interim Director and his staff are county staff
• County Attorney's office provides their legal services to the PTC, including representing the PTC in the above mentioned lawsuit.
• County's Internal Performance Auditor is to audit them (wouldn't an outside auditor be better)
• PTC uses the county website and phone system:  http://www.hillsboroughcounty.org/index.aspx?NID=2595

So why isn't the county simply managing the entire process so there's also accountability?

The real answer to reforming this captured agency is not maintaining the existing PTC and simply making changes to internal procedures. The answer is to get rid of it. Place the PTC's vehicle for hire responsibilities in a structure where there is accountability that does not enable corruption or unethical practices. The PTC is a case study for regulatory capture, an agency that appears to be run by the entrenched interests who circle their wagons at every opportunity to maintain status quo to protect their turf. 

Let's put an end to this captured agency!

Hillsborough County agencies fighting change

We have yet another Hillsborough County agency fighting against the tides of change and modernization.

TAMPA — Hillsborough County’s Civil Service Board will consider on Tuesday spending $75,000 to lobby state legislators against a proposal that would strip the board of some of its power over county employees.

The proposal pits the civil service board against 21 elected and appointed agencies, from the children’s board to the county commission.

Like the wasteful Public Transit Commission (see here, here, here and here), the Civil Service Board was created by the state legislature (in the 1950s!).  Like the PTC, Hillsborough County is unique in the state with such a board.

How did the other counties get by without these agencies?  Yet somehow they've survived.

Civil service board Director Dane Petersen said his agency saves taxpayers money by centralizing the kind of human resources activities that each of its 21 clients would have to do themselves.

“There’s a lot of economy of scale that comes with us,” Petersen said.

There is also a lot of bureaucracy and inefficiencies from centralization in any organization.  Delegation to those actually responsible for the outcomes leads to more timely and less costly decision making. Who knows better about the skills and resources needed at a particular agency than those who work at it every day?

Even the Tribune editorial recommends reforming the Civil Service Board:

Hillsborough County commissioners had good reason to vote unanimously to pursue legislation loosening civil service controls over government workers, and the Civil Service Board should not use county tax dollars to fight the plan.

Hillsborough is the only county in the state with such an elaborate civil service system, and the evidence is strong that a restructuring is in order.

...

Board members also should remember no one is talking about getting rid of civil service.

But its extensive reach is no longer necessary or appropriate.

Nothing like this would ever happen int he private sector.  It the mission changes, or new inefficiencies need to be introduced to be competitive, it happens.  If you fight the change, you're gone.  Be a team player.  Don't fight the boss.  But you can fight the boss in the public sector.

Like the PTC the Civil Service Board is considering hiring a lobbyist for the state legislature to help save its hide. Since both agencies were created by the state, they can set up their defenses in Tallahassee to protect themselves.

Unlike the PTC, the Civil Service Board is totally funded with your direct tax dollars. 

Your tax dollars at work, paying lobbyists, protecting civil servants from serving you more effectively. 

I should note the PTC does not get its money directly from taxpayers, but from the public transportation companies it regulates... taxis, limos, ambulances... which of course are paid by you... under the power of the law of the state.  A distinction without a difference.  

Your fee dollars at work, paying lobbyists, protecting civil servants from serving you more effectively. 

Here we are with 2 county agencies that no one else in the state needs are fighting us so they can continue to provide overpriced services we don't need.

This is yet another proof of Pournelle's Iron Law of Bureaucracy 

Pournelle's Iron Law of Bureaucracy states that in any bureaucratic organization there will be two kinds of people:

First, there will be those who are devoted to the goals of the organization. Examples are dedicated classroom teachers in an educational bureaucracy, many of the engineers and launch technicians and scientists at NASA, even some agricultural scientists and advisors in the former Soviet Union collective farming administration.

Secondly, there will be those dedicated to the organization itself. Examples are many of the administrators in the education system, many professors of education, many teachers union officials, much of the NASA headquarters staff, etc.

The Iron Law states that in every case the second group will gain and keep control of the organization. It will write the rules, and control promotions within the organization.

The PTC and Civil Service Board are protecting their own turf at the expense of their mission and their customers.

You.

Updated. Fixed a typo on the title.