Future of Metra board on collision course?
Despite hopes of compromise, supporters and critics of the Metra board of directors seem headed for a legislative showdown.
Investigations following the suicide of former Metra Executive Director Phil Pagano last year revealed he had swindled the agency out of at least $475,000 in vacation pay, along with other financial irregularities.
Metra directors dropped the ball in failing to catch the problems, say several state senators behind legislation to dismiss the board, which is appointed by county chairmen, Cook County commissioners and the Chicago mayor.
“Everyone knows that this board has failed,” said state Sen. Susan Garrett, a Lake Forest Democrat. “They weren't providing the type of accountability and oversight they should have during the Pagano years.”
But leaders responsible for appointing the board counter that no one could have anticipated Pagano's duplicity and note the commuter rail agency is still one of the best in the country.
“I think all the board members should stay on,” said McHenry County Chairman Ken Koehler, who appointed Metra Director and Treasurer Jack Schaffer. “These are the people who uncovered what was going on. The worst thing you could do is replace the entire board.”
After Pagano's death, it was revealed he abused his authority and allowed a climate of favoritism resulting in high-ranking executives receiving perks that padded their pensions, approved pricey change orders for a lobbying firm with ties to former Chairman Jeff Ladd and ran up pricey expense accounts. The agency was recently fined $90,000 by the Federal Transit Administration for failing to submit proper documentation for lobbyists.
A report by Metra's inspector general this spring also concluded the agency lacked a strategic plan and had inconsistent disciplinary procedures, such as rehiring employees fired for committing crimes.
“A lot of things should've been caught by this board,” said Democrat state Sen. Terry Link, of Waukegan, who sponsored pending legislation requiring Metra directors to resign so a new board could be appointed. “The only way to resolve it is to have a new board.”
“If this was the private sector, the board would have been relieved of its duties by shareholders long ago,” Democratic Sen. Jeff Schoenberg of Evanston said.
Yet Cook County Commissioner Liz Doody Gorman compared blaming Metra directors for Pagano's flaws to faulting commissioners for former Cook Board President Todd Stroger's missteps.
“The Metra board are not mind-readers. If people are lying to them, I don't see that they should be held accountable,” Gorman said.
Since the scandal broke in May 2010, Metra directors have instituted reforms tightening controls over spending and banning nepotism, installed an inspector general and hired new Executive Director Alex Clifford.
Those changes prove the agency has turned over a new leaf and gutting the board would deprive Clifford of experienced advisers, several officials said.
Clifford “needs a group around him that gives him a historical perspective,” Lake County Chairman Dave Stolman said.
Link, Garrett and Schoenberg have met with commissioners and county chairmen several times over the board's fate.
Nearly everyone agreed discussions had been cordial but so far “only one county chairman has stepped up to the plate,” Garrett said, referring to DuPage County Chairman Dan Cronin and the resignation of Metra Chairman Carole Doris of Downers Grove. “It's frustrating for legislators to not have that happen across the board.”
Doris, who became chairman in 2006, originally offered to resign in 2010 but by mutual agreement did not leave until April, Cronin said.
“I think it makes perfect sense that she would move on,” he said. “When a public body goes awry, leadership should step aside — that's part of the bargain with the taxpayers.”
But “I can't dictate that to my colleagues,” Cronin said.
Link said he had the votes to pass his legislation although it would need to clear the Illinois House and a similar bill proposed by state Rep. Jack Franks, a Marengo Democrat, died in committee.
Franks on Thursday asked the McHenry County board to start proceedings to remove Schaffer, saying he had neglected his responsibilities as a watchdog and allowed wasteful spending.
Schaffer on Wednesday said, “with the exception of one very large personal tragedy, I think the board has done a very good job over the years.”
Some county chairmen said they feared the General Assembly might go even further and give appointing authority for Metra to the governor or themselves.
“I don't think it's right that the reappointing process be taken away from the local officials that represent the counties,” Will County Executive Larry Walsh said.
“Hopefully the state will not try to usurp our authority,” Stolman said. Lake County's representative Jim LaBelle is “well-qualified” and deserves to stay, Stolman said, adding he favors a gradual exodus of current directors.
“We don't need a power struggle, we need reason to prevail,” he said.
Walsh, a former state senator, also contended that his 2009 appointee Jack Partelow “has not been there long enough to have played a role in this misuse of funds and mismanagement.”
“I hope we come to an agreed compromise that affords us the opportunity to move the ones that are up when their terms are up,” Walsh said. If push comes to shove, he said he would respect the senators' wishes.
Cook County Commissioner Tim Schneider, who was among the county officials who recently reappointed Arlington Heights Mayor Arlene Mulder to the board, called the Metra situation a serious one and said he needed time to consider the resignation issue.
An important question to consider is whether the current board becomes such a distraction that it interferes with Metra's progress, Kane County Chairman Karen McConnaughay said.
“I'm prepared to take whatever action is appropriate for myself to take that protects and advances the viability of public transit,” she said. “I think the bigger issue is to strike the proper balance between change that needs to take place and support for the new executive director in order to help Metra get moving in the right direction. The No. 1 priority is to protect public transit.”
Senators said they wanted action in the next few weeks, and Schoenberg warned, “it's quite conceivable we will have to force the issue through legislation because some people want to wish it all away.”