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July 18, 2002

Dear Mr. Morrill:

This letter follows up our previous conversations concerning the future of Charlotte's historic trolley operations in the South End and Uptown area.  I will describe the plans we have developed in conjunction with the Charlotte Trolley, and how we expect to proceed in making those plans a reality.

After many months of study and discussion, the Charlotte Area Transit System and Charlotte Trolley have agreed that historic trolley and light rail operations in the South Corridor should be fully integrated and operated by CATS when light rail service starts in mid-2006.  We reached this conclusion for the following reasons:

1.  The historic trolley operation in the South Corridor is intended to be more than just a tourist novelty.  It has been designed to provide a regular public transportation service connecting the South End and Uptown Charlotte, which at the same time preserving an important part of Charlotte's history.  Because of the nature of the planned trolley service, it logically should be considered to be a part of the region's growing public transportation system.

2.  Integration of the trolley and light rail operations under a single operating management structure will help insure that safety and service quality will be maximized benefiting both users of the service and the general public.

3.  Integration of the operations will help us minimize operating and capital costs through economies of scale and elimination of the duplicative administrative structures and activities.

4.  Finally, we believe that integration of the operations will help facilitate achievement of the economic development potential for both the trolley and light rail operations.

For these reasons, the Charlotte Area Transit System (CATS) believes that use of transit sales tax revenues for operating and capital expenses associated with the historic trolley is justified.  However, this staff position must be received and approved by the Metropolitan Transit Commission (MTC) before it can become a reality.  The MTC is the policy making board for CATS and is made up of elected and appointed public officials. 

CATS staff had originally proposed that integration of the trolley and light rail operations occur in late 2005 or early 2006 as we begin testing and training for the start up of light rail operations.  However, the Charlotte Trolley proposed that CATS assume operating responsibilities earlier to help facilitate operation of a seven day a week service between the South End and Uptown when the Convention Center link is completed in 2003.  Seven-day service will help support the hundreds of millions of dollars in investment that has occurred in the South End and Uptown along the rail corridor.  In addition, we believe that assuming operating responsibility for the trolley earlier than originally proposed will give us valuable operating experience as an organization that will benefit us as we prepare for light rail operations.  It will also give us the opportunity to develop a working relationship with the North Carolina Department of Transportation's Rail Division staff.  This still will function as the Federally required safety oversight organization for CATS rail operations.

As a result, CATS staff and representatives of the Charlotte Trolley have begun meeting to develop operating and capital plans for making the historic trolley operation a regular part of the CATS public transportation system beginning in 2003.  Our plan is to complete these operating and capital plans this Fall and to incorporate them into the staff proposal FY2004 Transit Program and accompanying budget.  This Program and budget will be submitted to the MTC by December 15, 2002.  During its review of the FY2004 Program and budget, the MTC will consider the policy issue of using transit sales tax funds to make the historic trolley operating a part of the regional transit system.  The MTC must act on the FY2004 Program and budget by March 31, 2003.  In accordance with the Transit Governance Interlocal Agreement, the MTC approved FY2004 Program and budget must be reviewed by and concurred in by the Charlotte City Council and the Mecklenburg Board of County Commissioners by June 2003.  Assuming success in achieving these approved actions, CATS would then assume responsibility for the historic trolley operation in July or August of 2003, following the start of the new fiscal year on July 1, 2003.  (The exact date for this to occur will be determined during the development of operating plans in the months ahead and will be coordinated with the completion of the Convention Center link).

Because the current trolley shop cannot remain indefinitely at its Atherton Mill location, our capital planning will need to include the development of a permanent operating and shop facility to store and maintain the historic trolleys in the future.  We believe that Charlotte Trolley's original plan to utilize the old Duke Power Trolley Barn at Bland Street as the permanent operating and shop facility for the historic trolley operations continues to make sense.  This historic facility is well-positioned as it is immediately adjacent to the South Corridor rail line and returning its use to a trolley facility will help preserve an important part of Charlotte's history, creating an attraction that will contribute to continued economic development.  Accordingly, it is our intention to include the ultimate purchase and renovation of the Duke Power Trolley Barn in our capital plan and budget for the trolley operation as part of our FY2004 Program and budget proposal to the MTC.  I must note that CATS' purchase of the Barn and actual renovation work cannot be undertaken until FY2004 or sometime after July 1, 2003 assuming the aforementioned approvals.

I hope that the content of this letter clarifies our intention toward the historic trolley operation and the Duke Power Trolley Barn.  Please let me know if you need additional information from us.

Sincerely,

 

Ronald J. Tober