Institutional Reform

Creating Organizations That Support Efficient Transport

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TDM Encyclopedia

Victoria Transport Policy Institute

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Updated 22 July 2008


This chapter discusses various changes to transportation organizations’ policies and practices that support Transportation Demand Management.

 

 

Description

Institutional Reforms are changes to transportation organizations’ policies and practices to support TDM implementation. This involves expanding by expanding the range of options considered in transport planning to include demand management strategies, and changing the methods used to define problems and evaluate solutions.

 

Most transportation agencies where created to build roads and are not well structured to support alternatives, particularly those that rely on “soft” programs such as Financial Incentives and Marketing. Transportation planning and funding practices are often biased toward capacity expansion, away from demand management alternatives (Comprehensive Planning). As a result, current planning organizations often overlook or undervalue TDM solutions, and so fail to implement TDM strategies as much as is justified.

 

TDM Programs bridge traditional institutional and jurisdictional boundaries. For example, implementing TDM often involves coordination between transportation and land use decision-making, innovative public-private partnerships, and funding for non-traditional transportation programs. This may require new interorganization relationships. Since TDM affects consumer behavior, it may also involve new public participation and Marketing activities.

 

Below are examples of institutional reforms and implementation activities:

 

·       Establish TDM policies, goals, objectives and Priorities.

 

·       Create a TDM Program within transportation agencies.

 

·       Educate decision-makers and staff about TDM objectives, techniques and resources.

 

·       Encourage transportation professionals to learn and apply Change Management skills. Support staff who apply innovative solutions.

 

·       Developing Multi-Modal Level-of-Service Indicators suitable for evaluating the quality of various transport modes from a users perspective. This helps create a more neutral planning decisions that involve tradeoffs between different transport modes.

 

·       Apply Contingency-Based Planning by identifying solutions that will be deployed if needed to address future problems.

 

·       Allow and encourage local governments to implement efficient user-based taxes and fees such as road pricing, parking pricing and location-based utility fees (Market Reforms).

 

·       Implement Smart Growth Policy Reforms that integrate transportation and land use planning and encourage more accessible land use development.

 

·       Gather information for TDM Evaluation, such as Surveys that collect detailed information on the use of alternative modes, and barriers to increased use.

 

·       Implement Least-Cost Planning. Correct existing policies and institutional practices that favor highway expansion and automobile travel.

 

·       Establish a “Fix-it-First” policy, which means that roadway capacity expansion projects are only implemented if operations and maintenance programs for existing facilities are adequately funded (Smart Growth Policy Reforms). This reflects the higher priority of operations and maintenance, and the inefficiency of increasing future financial obligations if a jurisdiction cannot afford to support its existing facilities.

 

·       Change codes and standards to allow Context Sensitive Design, which means that planners and engineers are allowed greater flexibility to accommodate community values and balance objectives.

 

·       Create special zoning codes and development policies for Transit Oriented Development and other types of New Urbanist communities (Dittmar and Ohland, 2004).

 

·       Create regional transportation or transit authorities that support alternative modes and mobility management programs, with adequate funding (Public Transportation Group, 2002).

 

·       Develop cooperative relationships with other organizations that may influence travel. For example, transportation agencies can work with planning agencies to implement Parking Management strategies, and with education agencies to help implement School Trip Management programs.

 

·       Reallocate Road Space to favor alternative modes, when appropriate to help achieve strategic transportation and land use objectives.

 

 

Institutional Reform may involve changing the way transportation options are Evaluated. Conventional transportation planning tends to evaluate transportation system quality primarily based on motor vehicle traffic conditions (Measuring Transportation). Transportation planning based on Accessibility expands the range of solutions that can be used to solving transportation problems, including TDM. Similarly, conventional transportation planning tends to focus on a limited set of costs, such as agency expenses, travel time and vehicle costs, but may fail to account for many indirect costs, social costs and environmental costs. More Comprehensive Planning recognizes a wider range of TDM benefits, such as reduced parking costs, improve travel options for non-drivers and land use objectives that are often overlooked in conventional economic analysis.

 

Current transportation funding practices often make money more easily available for highway projects than for other types of transport improvements (Sussman, 2001; Meyer, 2001). For example, in the U.S., many federal and state transportation funding accounts are dedicated to roadway improvements – these funds cannot be used for other types of transportation improvements even if they are more cost-effective, and more desirable for social, environmental or equity reasons. Such practices encourage local jurisdiction to focus on highway capacity expansion rather than management solutions to transportation problems, and discourage the use of direct user charges to fund roads and parking facilities. As long as a jurisdiction perceives that there is “free” money from other levels of government to fund highway projects, they will have little incentive to implement road pricing or other demand management strategies (Levinson, 2000).

 

Conventional planning tends to assume that transport progress is linear, with newer, faster modes replacing older, slower modes. This series model assumes that the older modes are unimportant, and so, for example, there is no harm if walking conditions and transit service decline, provided that automobile ownership and vehicle traffic speeds increase. From this perspective it is always undesirable to give public transit or walking priority over automobile travel. Transportation Demand Management requires a parallel model, which assumes that each mode can be useful, and strives to create balanced transport systems that use each mode for what it does best. Transport progress therefore involves improving all useful modes, not just the newest mode. For example, in many situations the best way to improve urban transportation may be to Improve Walking and Cycling Conditions, Improve Public Transit Service, or even to Restrict Automobile Travel, and give Priority to other modes. Although such an approach does not necessarily increase travel speeds, it improves the overall convenience, comfort and affordability of access to urban destinations.

 

 

How it is Implemented

Some institutional reforms require legislative or administrative action by policy makers and organizational executives. This may involves establishing goals, objectives and polices that support TDM, establishing a TDM Program or office within existing transportation agencies, budgeting adequate resources (money, staff time, etc.), educating transportation professionals about TDM, and overcoming identified obstacles. Least-Cost Planning can be implemented in conjunction with Institutional Reforms.

 

Some reforms can be implemented within transportation agencies. Agencies can educate planners and other decision-makers about alternatives, and change the way projects are evaluated to account for a wider range of objectives and impacts. Agencies can develop internal TDM programs.

 

Land use planning institutions may also require reforms to allow more flexible Parking Management and other Smart Growth policies (Hirschhorn, 2001).

 

 

Travel Impacts

Institutional reforms are often a key step in implementing TDM programs and specific strategies. Travel impacts depend on the design of the TDM program that is actually implemented.

 

Table 1            Travel Impact Summary

Travel Impacts

Rating

Comments

Reduces total traffic.

2

Supports all types of TDM strategies.

Reduces peak period traffic.

2

"

Shifts peak to off-peak periods.

2

"

Shifts automobile travel to alternative modes.

2

"

Improves access, reduces the need for travel.

2

"

Increased ridesharing.

2

"

Increased public transit.

2

"

Increased cycling.

2

"

Increased walking.

2

"

Increased Telework.

2

"

Reduced freight traffic.

2

"

Rating from 3 (very beneficial) to –3 (very harmful). A 0 indicates no impact or mixed impacts.

 

 

Benefits And Costs

Institutional reforms can help support all TDM objectives. These reforms can benefit agencies by expanding the menu of solutions they can apply to transportation problems. They can result in more efficient and accountable management practices, and a fairer distribution of resources. Reforms are often cost effective because they remove distortions and allow more cost effective solutions to transportation problems. Impacts vary, depending on the nature of institutional reforms and how they are implemented.

 

Costs include transition costs (such as the need to educate staff and reorganize institutions), TDM Program costs, and risks associated with unexpected consequences from new practices.

 

Table 2            Benefit Summary

Objective

Rating

Comments

Congestion Reduction

2

Supports TDM strategies that reduce driving and sprawl.

Road & Parking Savings

2

 

Consumer Savings

2

 

Transport Choice

2

 

Road Safety

2

 

Environmental Protection

2

 

Efficient Land Use

2

 

Community Livability

2

 

Rating from 3 (very beneficial) to –3 (very harmful). A 0 indicates no impact or mixed impacts.

 

 

Equity Impacts

Institutional reforms can provide equity benefits by creating more neutral and transparent planning, resulting in a fairer distribution of resources. It tends to benefit lower-income and transportation disadvantaged people by improving Transportation Choices. Actual impacts vary, depending on the nature of institutional reforms and how they are implemented.

 

Table 3            Equity Summary

Criteria

Rating

Comments

Treats everybody equally.

3

Reduces existing distortions that favor motorists.

Individuals bear the costs they impose.

3

Reduces external costs of automobile use.

Progressive with respect to income.

3

Increases affordable access and travel choice.

Benefits transportation disadvantaged.

3

Increases travel choice.

Improves basic mobility.

3

Can improve basic travel options.

Rating from 3 (very beneficial) to –3 (very harmful). A 0 indicates no impact or mixed impacts.

 

 

Applications

Reforms to support TDM may be implemented within any institution involved in transportation decision-making. They tend to be particularly appropriate in transportation planning and funding organizations. Institutional Reforms are most appropriate for transportation agencies. Businesses may require Institutional Reforms to establish Transportation Management Associations, Commute Trip Reduction and Parking Management programs.

 

Table 4            Application Summary

Geographic

Rating

Organization

Rating

Large urban region.

3

Federal government.

3

High-density, urban.

3

State/provincial government.

3

Medium-density, urban/suburban.

3

Regional government.

3

Town.

2

Municipal/local government.

3

Low-density, rural.

2

Business Associations/TMA.

1

Commercial center.

2

Individual business.

1

Residential neighborhood.

1

Developer.

1

Resort/recreation area.

3

Neighborhood association.

1

 

 

Campus.

2

Ratings range from 0 (not appropriate) to 3 (very appropriate).

 

 

Category

Policy Reform

 

 

Relationships With Other TDM Strategies

Institutional Reforms are a necessary foundation for many TDM policies and programs. Least Cost Planning, Change Management, Regulatory Reform, Market Reforms, TDM Programs, Commute Trip Reduction programs and Contingency-Based Planning often involve Institutional Reforms.

 

 

Stakeholders

Policy makers and executives are often responsible for Institutional Reforms. Professional and political advocacy groups may provide guidance to reforms that are implemented by policy makers and organizational executives. Some reforms are implemented by private companies, such as Commute Trip Reduction programs and Transportation Management Associations established by businesses.

 

 

Barriers To Implementation

Barriers include political opposition, and resistance to change by public officials and staff.

 

 

Wit and Humor

If you can start the day without caffeine,

If you can always be cheerful, ignoring aches and pains,

If you can resist complaining and boring people with your troubles,

If you can eat the same food every day and be grateful for it,

If you can understand when your loved ones are too busy to give you any time,

If you can overlook it when those you love take it out on you when, though no fault of yours, something goes wrong,

If you can take criticism and blame without resentment,

If you can ignore a friend's limited education and never correct him/her,

If you can resist treating a rich friend better than a poor friend,

If you can face the world without lies and deceit,

If you can conquer tension without medical help,

If you can relax without liquor,

If you can sleep without the aid of drugs,

If you can honestly say that deep in your heart you have no prejudice against creed, color, religion, gender preference, or politics,

THEN, you have ALMOST reached the same level of development as your dog.

 

 

Best Practices

·       Establish an institutional framework for multi-modal, regional transport planning and funding.

·       Apply Least-Cost Planning principles, so demand management strategies are funded if they are more cost effective overall than capacity expansion.

·       Improve Modeling and Evaluation practices to better evaluate alternative modes and TDM strategies.

·       Establish a TDM Program within transportation agencies.

·       Defining transportation improvement goals broadly to include economic, social and environmental objectives.

·       Integrate transit system service, marketing and fare payment systems.

·       Consider a wide range of solutions to transportation problems.

·       Measure transportation benefits in terms of access rather than mobility, and measure all costs, not just financial costs.

·       Develop education programs for transportation agency staff so they can implement innovative solutions.

·       Encourage innovative transportation programs, and reward their success.

·       Develop an effective evaluation program that tracks progress toward goals and objectives.

 

 

Examples and Case Studies

TransLink (www.translink.bc.ca)

The Greater Vancouver Transportation Authority, known as TransLink, was created by the British Columbia Greater Vancouver Transportation Authority Act in 1998. It is an independent organization governed by a board consisting of representatives from regional municipalities. It was established to provide coordination between different jurisdictions and modes, allowing one organization to plan and provide services for all forms of transportation in the region.

 

TransLink’s mandate is to plan and finance a regional transportation system that moves people and goods efficiently and supports the regional growth strategy, air quality objectives and economic development of the Greater Vancouver Regional District (GVRD). TransLink supports the GVRD’s Livable Region Strategic Plan, a plan developed to address the regional growth we face. The goals of the plan include preserving green space, reducing urban sprawl and protecting our air quality.

 

TransLink’s subsidiary companies and contractors provide

·       Public transit services (buses, SkyTrain, West Coast Express and HandyDART)

·       Transportation Demand Management - trip reduction programs and promoting transportation alternatives such as cycling and carpooling.

·       Major Road Network - in partnership with municipalities and other agencies, TransLink helps fund the maintenance, rehabilitation and improvement of the Major Road Network - 2,100 lane kilometres of roadways within the GVRD.

 

TransLink is funded through property taxes, a portion of fuel taxes collected in the region, and special taxes on parking. All revenues collected by TransLink are allocated to its transportation programs and services.

 

 

Auckland Transport Governance and Funding (www.arc.govt.nz)

In 2003 the New Zealand Government began establishing the Auckland Regional Transport Authority (ARTA), which will have responsibility for all Auckland area transport, including rail, bus, ferry, pedestrian and cycle transport. ARTA will be responsible for:

·       Operational planning of integrated road and passenger transport infrastructure and services for the region, including consultation as appropriate with Transfund, Transit, TrackCo and territorial authorities, and travel demand management programs.

·       Funding of Auckland transport projects and services including contracting of passenger transport services.

·       Implementation of operational plans.

·       Funding all roads other than state highways, including c0-funding of all local roads in conjunction with territorial authorities.

 

This new authority will be accountable to the Auckland Regional Council (ARC). The ARC will continue to have statutory responsibility for the Auckland Regional Growth Strategy, Auckland Regional Land Transport Strategy and the Auckland Regional Policy Statement.

 

The ARTA will receive government and local money to implement the plan and will contract with Auckland transport companies. It will be run by a board, the members of which will appointed by a panel representing the ARC and the seven Auckland city councils. The ARC will have a majority on this panel. Another body, tentatively called Auckland Regional Holdings, is proposed to govern other regional infrastructure, such as the assets of Infrastructure Auckland. The government will provide a number of new funding options to support regional transportation improvements, including additional fuel taxes, and possibly road tolls and parking levies.

 

 

Preventive Maintenance (FCM, 2002)

Preventive infrastructure maintenance programs tend to be cost effective, but may require institutional reforms that place a greater value on avoided costs and longer-term benefits. As one guidebook explains, “Preventive maintenance is intended to treat small problems before they require more expensive repairs. By slowing the rate of deterioration, treatment can effectively increase the useful life of pavement. However, the practice of systematically identifying payments that would benefit most from preventive maintenance, and of implementing treatments in a timely manner, is often neglected.”

 

 

City of Cambridge (http://bpc.iserver.net/codes/cbridge)

The City of Cambridge, Massachusetts has established a Parking And Transportation Demand Management Planning department, which has its own staff, programs and responsibilities.

 

 

Regional Transportation Operations (www.ite.org/library/reg_trans_ops.htm)

Regional Operating Organizations (ROOs) are partnerships among transportation and public safety agencies (police, fire departments, disaster management, etc.) to coordinate transportation operations on a regional basis. These cooperative efforts take different forms depending on needs, available resources, and existing policies, procedures, and institutional relationships of partners within the region. They are increasingly common in North America. They:

 

·       Bring together transportation, public safety, and emergency management operators to provide more effective management of incidents, disasters, and emergency evacuations.

 

·       Establish new sources of funding for transportation and regional control of major roadway and transit assets.

 

·       Reduce construction and incident-related delays through multi-agency coordination and real-time information dissemination.

 

·       Enable agencies to share transportation data and software resources via an integrated information backbone.