Metra works on ethics policies
Metra leaders worked to clean house Friday, instituting some reforms involving perks and ethics, but the issue of an inspector general remained unresolved.
The changes come after the suicide of former Executive Director Phil Pagano, who died in the midst of a misconduct probe that revealed he had taken at least $475,000 in unauthorized vacation payouts and misused his authority.
Metra directors hired an outside firm to act as interim inspector general to investigate complaints and root out corruption but the question of who has authority to pick a permanent watchdog is generating controversy.
Metra officials have resisted a recommendation by lawmakers led by state Sen. Susan Garrett, a Lake Forest Democrat, for the governor to appoint an IG with the consent of the Senate.
A revised proposal by Garrett for the governor, attorney general, executive inspector general, auditor general and someone from the national association of inspectors general to choose the next IG didn't draw raves from Metra directors either.
Instead, most seemed to favor either having the people who appoint them select an IG or leave it up to the Regional Transportation Authority. Metra directors are appointed by a combination of suburban county board chairmen, the Chicago mayor and Cook County Board members.
The Regional Transportation Authority is recommending its board choose an IG who would be responsible for RTA, Metra and Pace, which a number of directors agreed would be most cost-effective.
Director Caryl Van Overmeiren called the controversy "an awful hullabaloo. It doesn't make a difference at the bottom line who appoints an inspector general if we don't find something ethical."
Costs for Hillard Heintz, the firm operating as interim inspector general, are expected to reach $500,000 this year, Metra Chairman Carole Doris said.
Under Pagano's tenure, 22 top executives received 401(K) contributions from Metra although the agency already offers a pension plan. A Metra ordinance gave authority over the 401(K) plan to Pagano.
Directors Friday amended policy so that any 401(K) contributions would require board approval. Doris said the agency was reviewing cases of people receiving the extra perk.
"You heard the dire budget news, we'll be looking at everything," she said.
Doris was referring to budget adjustments the agency made Friday after learning it faces a $33 million deficit linked to low ridership and rising health care and maintenance expenses. The gap will be resolved by shifting $25 million of federal capital dollars into maintenance and using $8 million in reserves.
The board also instituted a nepotism policy stating relatives can't be given preferential treatment in hiring and that employees can't become supervisors of other family members unless under extenuating circumstances and with board approval.