Phillips calls for Metro to tap “entrepreneurial energy” to reduce costs

May 21, 2009

Summary

Motion requests report on cost saving and money-generating activities

Story

Facing a $168 million shortfall over the next two years, Metropolitan King County Councilmember Larry Phillips said today it’s time for Metro Transit to start thinking “outside the box” when looking for ways to reduce costs and generate revenue. Phillips introduced a motion calling on the transit agency to begin exploring ways to expand entrepreneurial opportunities and develop collaborative partnerships as an alternative to reducing service.

“We must harness King County’s entrepreneurial spirit to find ways Metro can reduce costs and generate some cash to keep buses on the streets despite the decline in tax revenue,” said Phillips. “Metro has already tapped into some entrepreneurial efforts such as advertising in the Downtown Seattle Transit Tunnel and service partnerships with cities and businesses, but it’s time to dig deeper and expand those opportunities. For example, can we help pay for implementing RapidRide by allowing companies to buy sponsorships at new RapidRide stations?”

King County’s Transit Division has been successful in leveraging resources through initiatives such as the Transit Now service partnerships, employer Flex Pass programs and Adopt-a-Stop programs where volunteers take responsibility for keeping bus shelters clean. Metro has also benefited from the entrepreneurial efforts of graduate students from the University of Washington who developed the real-time bus arrival Web site One Bus Away.

Phillips’ motion calls on Metro to explore potential revenue sources and costs savings that would make reducing service one of the last options Metro would take to balance the budget shortfall. The proposed strategies to examine include:

• Technology partnerships,
• Leased use of its passenger facilities by private transportation providers and vendors,
• Sponsorships and expanded advertising opportunities,
• Increasing maintenance and service partnerships.

The motion calls for the Executive to present to the Council by July 1 a report on the range of current and planned Transit Division strategies that minimize service cuts by reducing costs, generating revenue and leveraging resources through partnerships.

“King County’s park system was able to reduce the public subsidy for parks by becoming more entrepreneurial, and this economic downturn is providing Metro Transit with the same opportunity,” said Phillips. “Thinking creatively and tapping into opportunities to partner with businesses, residents, and other municipalities will put Metro in a better position to meet the future.”