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Charge it! Former Metra CEO lived it up on company dime

Sumptuous meals at ritzy restaurants, posh hotels, conferences in Hawaii and Miami Beach, memberships in exclusive airline clubs, free gas ...

Then there's using the corporate Amex card to front the costs of jewelry and golfing equipment.

Those are just a few of the troubling items from a trip back in time — to 2004 and 2005 when former Metra CEO Phil Pagano apparently never left home without his company American Express Card, racking up more than $60,000 in charges.

Pagano fell from grace in spring 2010 amid a probe into his misuse of funds. In a tragic turn of events, he killed himself by walking in front of a Metra train that May.

An investigation revealed the respected railway man ran the agency like a czar, rewarding cronies, getting away with exorbitant perks, lying and defrauding Metra of least $475,000 in unauthorized vacation pay.

Metra's been trying to reform itself, but Pagano's past continues to haunt the agency.

I thought I'd plumbed the depths through Freedom of Information Act requests in 2010, but a fresh look revealed new transgressions, just as Metra is poised to pass fare hikes to curtail a staggering $53 million deficit in 2012.

Records for 2004 and 2005 show about $63,000 in expenses on Pagano's corporate Amex account.

Here are some specifics:

Ÿ In March 2004, Pagano bought $1,198 of equipment from Golf Galaxy, putting it on his Amex card. He later reimbursed Metra, but the purchase violated policy.

Ÿ In December 2004, Pagano spent $2,134 using the Amex card on jewelry from the exclusive Schiffman's shop in Greensboro, N.C. He paid the money back in January 2005, according to records.

Ÿ In May 2004, Pagano charged $4,437 for accommodations at the plush American Club in Kohler, Wis. Although he never accounted for the expenditure in his expense report, Metra paid the bill.

“The jewelry is really troubling because it combines personal spending with a professional procurement card and that should never be tolerated,” said state Sen. Susan Garrett, a Lake Forest Democrat who has pushed for reforms at Metra. “It's so easy to abuse these cards; they should be terminated altogether.”

Metra spokeswoman Judy Pardonnet said new CEO Alex Clifford does not have a company credit card.

“Any expenses he incurs on Metra's behalf are paid by him personally. He submits receipts for reimbursement. The reimbursements are reviewed by Metra's auditor who also reports to the board of directors,” Pardonnet said.

The hanky-panky with the Amex card isn't surprising. As CEO, there was no one above Pagano who could call out his excesses, and the majority of Metra board directors apparently had no clue about the spending spree.

Travel expenses make up a large chunk of the bills.

Conveniently for Pagano, three conferences he deemed necessary to attend occurred in Hawaii and Miami Beach during the winters of 2004 and 2005.

Instead of Motel 6-type accommodations, Pagano opted for four-star hotels, paying $854 for stays at the Hilton and Doral Golf Resort in January 2004, for example.

And while on the road, Pagano was able to avoid riffraff at airports with memberships in United Airlines Red Carpet Club and American Airlines Admirals Club. Metra paid $1,750 in 2004 and 2005 for airline club memberships for Pagano, records indicate. Pagano accounted for these as “travel expenses” in official documents.

As for meals, brown-bagging did not seem to be an option. Instead, business was frequently conducted at swanky restaurants. For instance:

Ÿ A lunch meeting in November 2004 at Wheeling's Tuscany with consultants to discuss the New Starts construction program cost $116. Another New Starts meeting in January 2005 totaled $364. Two more in fall 2005 tallied $452. Meanwhile, construction of the New Starts projects is moving at a glacial pace because money is scarce.

Ÿ An April 2005 dinner for labor union officials at the plush Cafe Europe in Palm Beach, Fla. came to $941.

Ÿ Another meal for labor union representatives at Chicago's 437 Rush restaurant in April 2005 tallied $660.

Although alcohol is not supposed to be reimbursed at Metra, officials suspect the agency was doing just that, judging by the cost of certain meals. A case in point — a November 2004 dinner for two with the legislative affairs director at Boone's Saloon in Springfield came to $75. Boone's Facebook page indicates its food price range tops out at $10.

My favorite expense, actually, was the relatively modest $25 spent in August 2004 for a lunch meeting to discuss the budget.

And finally, for the CEO of a company whose purpose is public transit, Pagano seemed to use an awful lot of gas, pumping more than $1,700 into his tank in 2004 and 2005.

Garrett thinks Metra needs to produce a comprehensive report on the former CEO. “People feel they have not received a complete tally of what happened under his reign,” she said.

Clifford had no comment on Pagano's expenses.

“The Metra board of directors investigated the expenses incurred by Mr. Pagano,” Pardonnet said. “The board also put measures into place to control and review spending.”

You should knowReader Gary Drenk asked why I didn't write about toll increases for vehicles with trailers.That's because toll hikes for anything with more than two axles won't be happening anytime soon. In August, the tollway board of directors bumped up rates for passenger vehicles using I-PASS or paying in cash. Those changes go into effect Jan. 1.Back in 2008, tollway directors agreed to raise fees for commercial vehicles and vehicles with trailers, starting in 2015 with a 40 percent increase on the current rate, then a 10 percent increase in 2016 and a 10 percent increase in 2017.That means the driver of a car with a one-axle or two-axle trailer who now pays $2.85 at the Touhy Avenue Toll Plaza on the Tri-State Tollway would pay $4 in 2015, $4.30 in 2016 and $4.55 in 2017. (Complicating matters, these are daytime rates. Overnight charges are cheaper.) For more information, visit illinoistollway.com.Coming soonQuality and affordability of drivers education programs is the focus of a Tuesday forum called by state Sen. Susan Garrett. The hearing will examine oversight, safety standards and costs of drivers ed classes. It runs from 10 a.m. to noon at the James R. Thompson Center, 100 W. Randolph St., Chicago.Your voiceThanks to the Volties who responded to my column about electric cars last week. Here's a sampling:Engineer Christopher Burke writes, #8220;I have had (my Volt) for over four months now (about 7,500 miles of driving) and installed charging stations at my home and office. I use an iPad app that allows me to find downtown parking garages that have charging stations and use them at least twice a week. You would be surprised to find out how many places, including universities, talk green but do not have any electric-vehicle charging stations. I love the vehicle and am averaging an all-electric driving range of about 40 miles but see a reduction of about 20 percent during the colder weather. The blended mileage is about 220 mpg, which far exceeds my expectations.#8221;Gene Plantz of Hoffman Estates bought his Volt April 15. #8220;I love my car and think it is probably one of the best I've ever owned (this includes multiple BMW, Audi and Lexus models),#8221; he said.#8220;I currently have about 6,000 miles on it and have not been to a gas station since April 16. I'm running 99 percent electric. The plan to install 280 chargers at Walgreens (and other locations) is not being well received by electric car owners. It was announced they will charge $3 an hour, which means it is a lot more than using gasoline.#8221; And, to correct some misinformation I received, a 2012 Volt lease is available with $2,999 down for $399 per month over 36 months.Gridlock alertBreathe a sigh of relief, Jane Addams Tollway (I-90) road warriors. The Illinois tollway has wrapped up construction on I-90 between the Elgin toll plaza and Barrington Road. Repairs on I-90 between Genoa Road and Route 20 near the Belvidere Oasis will continue through October.One more thingMetra instituted minor scheduling changes for the Milwaukee North and Milwaukee West lines Sunday. Most of the changes range from one minute to four minutes. To see the new schedules, visit metrarail.com.Parking lot painWorker-bee suburbanites who drive to jobs in Chicago should brace for parking rate hikes. Chicago Mayor Rahm Emanuel's proposed budget includes a “congestion premium” for downtown parking garages. This could mean a $2 increase per day on top of the $3 tax already charged. For weekly parkers paying $60 or more, the fee would range from $15 to $25. And those with monthly parking arrangements paying $240 or more could be hit with fees from $60 to $100. 22001184 Daily Herald photo

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