A fee on rental car transactions in southeastern Wisconsin is going away — at least for a while.

The Southeastern Regional Transit Authority voted Friday not to reinstate a $2 fee that had been charged to help pay for planning of the Kenosha-Racine-Milwaukee commuter rail proposal.

That was after the new board voted narrowly to appoint Kenosha County designee Karl Ostby as its chairman.

Created by the Legislature as part of the 2009-11 state budget, the authority is enabled to levy up to $18 per rental transaction to support the local costs of KRM’s development.

Debate over fee

Maintaining the $2 fee for now was discussed, but a majority of the board favored holding off on any fee until a KRM grant plan is finalized, Antaramian said in a phone interview Friday. Antaramian said nobody on the board has shown an interest in levying the full $18.

“I think certain members of the board felt that there wasn’t a need until we actually saw a proposal,” said Antaramian, who supported continuing the $2 charge.

However, Ostby said the question of the fee is likely to arise again next month, after the authority has a clearer idea of KRM’s costs.

State can alter plans

Also still unclear is whether the state will again change the authority’s capabilities.

Gov. Jim Doyle charged the Legislature in September with developing a transit bill based on a framework that would allow for phasing in an umbrella authority that would fund and oversee bus and rail transit throughout the region. This is intended to remove all transit from the property tax levy, which KRM supporters say is necessary for the rail proposal to gain federal funding.

Rep. Peter Barca, D-Kenosha, earlier this week said the bill is currently in its fifth draft. He said the goal is to introduce it early next year.

Ostby appointment

Ostby’s appointment as the board’s chairman passed on a 5-4 vote.

Antaramian said the vote was a closed ballot, though Kenosha County Board Chairman Joe Clark said he believed it was the four Milwaukee-area designees who favored Milwaukee County Board Chairman Lee Holloway for the post.

The nine-member transit board is made up of one representative each from the cities and counties of Kenosha and Racine, two each from the city and county of Milwaukee and one appointee of the governor.

Strong local support

Antaramian and Clark, who appointed Ostby, both said they believed Ostby was an excellent choice to lead the new board.

Ostby was the chairman of a now-defunct, temporary authority that the state created in 2005 to develop recommendations on how to fund KRM. He was unreachable for comment Friday afternoon.

“I think Karl’s perfect for it because he’s been involved from the beginning,” Antaramian said. “You want some continuity and the ability to get things going right away. You want someone who’s been around for a while.”

Clark said Ostby, the recently retired president of Southport Bank, brings a good, conservative mind to the board.

“I think he’s a great leader,” Clark said. “He has a great financial mind and he’s good for the board.”