
DATE: Thursday, November 27, 1997           TAG: 9711270658

SECTION: LOCAL                   PAGE: B5   EDITION: FINAL 

SOURCE: BY DEBBIE MESSINA, STAFF WRITER 

                                            LENGTH:  115 lines

TRANSIT AGENCIES STILL BETROTHED, BUT PRENUPTIAL OBSTACLES REMAIN

Money and histories are often sensitive areas for couples considering marriage, and it's apparently no different for public agencies exploring a merger.

Merger negotiations between the region's two transit agencies, Tidewater Regional Transit on the Southside and PENTRAN on the Peninsula, have stalled on similar issues.

They want to begin their union with financial parity, without taking on unnecessary debt. And they want assurances that there are no surprises in the new leader's background.

Still, representatives of both agencies don't see their differences as deal-breakers.

``We are two different systems with different philosophies and different financial positions,'' said Cameron C. Pitts, TRT's Tidewater District Transportation Commission chairman and a Portsmouth city councilman. ``We need to find some equal playing ground - that's been a struggle.''

Michael S. Townes, executive director of PENTRAN and the designated chief of a merged regional transit agency, said: ``It's human nature for people to protect their way of doing things and protect their culture. We're just going to have to get past these discomforts, which I view as inevitable when we're talking about a major change like this.''

Over the past two years, many deadlines have been set and broken for completing merger discussions.

Delays have been attributed to scheduling difficulties among the busy elected officials representing the two public agencies; the demands of running multimillion-dollar transit agencies; changes in the transit agency boards; and, of course, differences of opinion.

The latest deadline, Dec. 31, will surely be broken, too. Now, officials are reluctant to set a deadline for a resolution.

``Everybody wants to make sure they get the best for their area,'' said Louisa Strayhorn, a Tidewater Transportation District commissioner and a Virginia Beach councilwoman. ``Nobody wants this thing to be one-sided.''

The latest, and probably biggest, disagreements are over financial reserves and getting permission to conduct a full background check on Townes.

TRT officials are concerned that PENTRAN has little cash to bring to the table. The Peninsula agency nearly depleted its reserve funds to implement night service, which Townes called a ``rousing success.''

``Our organization has taken prudent risks that have paid off for us,'' Townes said. ``We have nothing to hide. We are very proud of what we do here.''

But some TRT officials are not comfortable with that.

``Maintaining a decent size operating capital is just a necessity to run a business enterprise,'' said W. Joe Newman, a TRT commissioner and Chesapeake councilman. ``A public transit authority is no exception.''

Pitts said TRT has historically operated with a sizable cash balance.

``Some people are not uncomfortable operating close to the wire, while others like the comfort of a cash balance,'' Pitts said.

PENTRAN is not the only party with blemishes on its financial records. PENTRAN is concerned about some unfunded liabilities in TRT's pension plan, a remnant from when the transit agency was a private operation many years ago. It resulted when many employees retired around the same time.

``When a bunch of people retire at the same time, you go into a negative position, but that doesn't mean you don't have the money,'' Pitts said.

With continued payments into the pension fund, the negative balance is shrinking, Pitts said.

Another stumbling block was getting permission to conduct the background check on Townes.

TRT commissioners say a full background check is routine when hiring a chief executive. A background check was conducted when TRT hired L.A. ``Kim'' Kimball as interim director last year.

But PENTRAN's commissioners resisted. They sensed a lack of confidence in the PENTRAN board and a possible change of heart about Townes' leadership.

``Our board felt it was inappropriate to subject him to a background check because he's already in the position,'' said Del. Flora Crittenden, PENTRAN's vice chairwoman. ``He did not apply for a job with TRT; they asked for him. It was assumed he was good enough.''

Crittenden said the board finally agreed to the background check ``simply in order to make the negotiations continue, to be cooperative.''

Townes said he followed his board's wishes and consented only when he was directed to.

``My continued employment has been the No. 1 issue from my board's standpoint,'' Townes said. ``They made it known that they will not move ahead unless there is a guarantee.''

But TRT's commissioners are not satisfied because the background check does not go as deep as some would like.

``We're just about there,'' said Commissioner W. Randy Wright, a Norfolk councilman. ``The depth is still floating, but I'm convinced we can get on with it.''

While most transit officials involved are not keen on setting more deadlines, time is a concern for TRT, which is losing its interim executive director in March. Kimball is returning home to California but will be retained on a consulting basis.

Kimball was hired in September 1996 to replace retiring James C. Echols until the merger was complete. But the merger process is taking longer than Kimball wishes to stay. Already his one-year contract has been extended by five months. ILLUSTRATION: Graphics

TRT

Serves: Norfolk, Virginia Beach, Chesapeake, Portsmouth, Suffolk

Employees: 565

Budget: $24.1 million

Fleet: 117 buses; 70 Handi-Ride vans; 41 trolleys; and three

ferries

Passengers: 8 million/year

Route miles covered:

5.3 million/year

PENTRAN

Serves: Newport News, Hampton (including Hampton middle and high

schools)