Metra directors exiting gradually under compromise

There won’t be resignations en masse, but the majority of Metra board directors who served during former Executive Director Phil Pagano’s tenure are expected to be gone within a year.

State senators who had pushed for sweeping out the entire board have reached a compromise with the county chairmen, Chicago mayor, and Cook County commissioners who have authority to appoint them.

Pagano committed suicide in May 2010 even as authorities were scrutinizing his misuse of agency funds. Investigators concluded Pagano took more than $475,000 in vacation pay he wasn’t entitled to, forged the chairman’s signature, and exerted total control over Metra operations — leaving directors in the dark.

Under the deal worked out last week, all 11 Pagano-era Metra board directors except for two appointed in July 2009 will exit by the end of June 2012.

The agreement also requires Metra’s next chairman to be a newcomer and not one of the directors around during the Pagano era.

That could mean the new chairman is one of three directors seated after the scandal — Elmhurst businessman Paul Darley, South Holland Village President Don De Graff and Orland Park Trustee Brad O’Halloran — or a person appointed in the upcoming months.

“We’re starting to see light at the end of the tunnel,” said state Sen. Susan Garrett, who with other senators had pushed for resignations across the board. “We’ve made a huge amount of progress in reforming Metra although more needs to be done,” the Lake Forest Democrat said.

DuPage County Chairman Dan Cronin said, “I think the commitment to new leadership is central to the agreement. Speaking as a county board chairman, we want to demonstrate we can lead the reform effort.”

County leaders had been divided on whether their appointees should stay or go, but concerns the Senate could strip away their appointing authority influenced the compromise.

“We wanted to keep the ability to supervise and oversee (appointments),” Lake County Chairman Dave Stolman said.

The agreement also means board officers Vice Chairman Larry Huggins, Treasurer Jack Schaffer and Secretary Arlene Mulder will not be allowed to continue in those positions although the timing of the resulting changes was not clear.

“The good news is that this has brought together the leadership of various counties to talk about public transit,” Kane County Chairman Karen McConnaughay said. A task force McConnaughay directed to recommend Kane County’s new Metra representative is expected to make an announcement later this week.

Director Jim LaBelle, whose term expires in 2012, said the agreement provides for a fresh start on Metra but allows officials with institutional knowledge to pass it on to incoming board members.

Metra officials are expected to discuss the chairman issue at a July 15 meeting.