A proposed state rule change to prohibit advertising on the outside of bus shelters in the state highway right of way could eliminate most shelters used locally by Eagle Transit passengers.

The Montana Department of Transportation proposes to allow advertising only in the interior of bus shelters, purportedly to comply with Federal Highway Administration requirements.

Flathead County has 22 bus shelters, 16 of which are on state right of way. The shelters are installed and maintained by Chandler Communications, a private company that sells shelter advertising to local businesses.

There is no cost to taxpayers for the shelters.

“Without this arrangement we would not be able to afford the approximately $40,000 in annual costs associated with maintaining the shelters,” said Lisa Sheppard, director of the Flathead County Agency on Aging and Eagle Transit, the county’s public transportation provider.

By allowing ads only on the inside of bus shelters, it would be cost-prohibitive to maintain the shelters, according to Gary Walrack, owner of Chandler Communications. Businesses likely would not advertise because interior signs would not be nearly as visible.

“We’d have to go out of business,” Walrack said. “We’d have to pull out all the shelters.”

Chandler installs and maintains shelters not only in Flathead County but also in bigger cities across the state, including Great Falls and Bozeman.

“The roots of our company go back to 1958. For the last 10 years we’ve invested heavily in shelters,” Walrack said.

Flathead County Commissioner Gary Krueger was among the local officials who testified against the rule changes at a Montana Transportation Commission hearing last week. He said the financial burden of the county taking on the shelters would be significant and “may prove to be out of reach.

“If we lose the shelters, ridership will almost certainly decrease, which will in turn negatively affect the federal transit funding we receive,” Krueger told the state commission.

Sheppard agreed, noting the private/public partnership between Chandler and the county provides safe, covered and clean sitting areas for bus passengers.

“It costs us absolutely nothing,” Sheppard said. “It’s a great support for passengers. Chandler keeps them maintained and carries the insurance, pays for the lights. It would be a huge shame for the citizens of Flathead County to lose this service.”

For most shelter locations, there is no other option but to locate it on state highway right of way, she added.

Lyn Hellegaard, president of the Montana Transit Association, also testified at the commission hearing, citing the potential impact to the transit industry statewide if shelters are no longer economically viable. She contends the state has the authority to make its own rules governing outdoor advertising in the highway right of way.

“Their reason for doing this is to standardize the language and bring the state in compliance with federal law, but several testified the feds haven’t made any rule changes” that would warrant the state amendments, Hellegaard said. The [state] Department of Transportation and I disagree. In my opinion unless the state enacts the proposed regulation, nothing in federal statues is prohibiting the current public/private partnerships that currently exist.”

Montana Department of Transportation Director Mike Tooley said the Federal Highway Administration asked the state to create its own set of rules regarding outdoor advertising in highway rights of way because the state currently has no requirements.

“The proposed [state] rule is right down the middle of what other states have done,” Tooley said.

Tooley said it is the Montana division office of the Federal Highway Administration, not the federal agency’s headquarters in Washington, D.C., that asked the state to write its own rules.

“Yes, we have a lot of power and decision-making ability, but we have to walk that line,” Tooley said. “Many states allow zero advertising” on bus shelters.

“Nobody here is anti- bus shelter,” Tooley said.

He further noted the state is obligated to comply with the Highway Beautification Act and that the state could be subject to federal penalties if it violates federal law.

The Federal Highway Administration issued an order in 2012 that state use of highway right of way for advertising purposes is not allowed. That advisory instructed the federal highway division administrator to develop a plan for corrective action to bring the state into compliance with federal regulations.

The public comment period for a number of outdoor advertising proposed rule changes was April 1, but Hellegaard said she believes there’s still room for negotiations.

“I don’t think it’s a done deal,” she said. “I’m optimistic the discussion is still open.”

The Montana Transportation Commission meets on May 26 in Helena and is expected to take action on the proposed amendments. For more information, contact the commission secretary, Lory Ryan, at Lori Ryan at P.O. Box 201001, Helena, MT 59620-1001, by phone at 406-444-7200 or by email at lryan@mt.gov.

Features editor Lynnette Hintze may be reached at 758-4421 or by email at lhintze@dailyinterlake.com.