In the News

Daily Herald, July 25, 2010

What I love about transportation is that it's a revolving smorgasbord of issues. It was only last year I was sitting at an Illinois Senate hearing watching Illinois tollway officials get grilled on problems with the oases.

Well, this year, it's Metra on the hot seat appearing before the State Government and Veterans Affairs Committee Wednesday.

The hearing requested by Sen. Susan Garrett is intended to delve into financial and management practices at Metra, which is still reeling from the suicide of its former CEO Phil Pagano.

Pagano died in the midst of a probe into financial misconduct at the agency. Officials said he received more than $475,000 in unauthorized vacation pay and forged Chairman Carole Doris' signature on related forms.

And since the scandal broke, there's been further revelations about abuses of power under Pagano, who had broad executive authority. These include select employees getting contributions to a 401(K) plan in addition to retirement plans, executives receiving extra weeks of vacation authorized by Pagano, questionable sick day and vacation payouts to a favored few, and some curious change orders for a lobbying firm.

Expect Garrett, a Lake Forest Democrat, to ask questions about the latter issue involving the Carmen Group. The Carmen Group is a Washington-based lobbying firm whose leaders include John Ladd, an executive managing director and son of former Metra board Chairman Jeff Ladd. Documents show more than $1.7 million in change orders added to already lucrative Carmen contracts. I was intrigued by two that weren't even typed but handwritten in a messy scrawl. They totaled $568,750 and $712,000. The work involved lobbying Congress to give Metra money for capital projects, such as improvements to the UP West and Northwest lines.

Metra officials did not comment on the lobbyist question other than to say Jeff Ladd recused himself from voting on a Carmen contract in his last year as chairman in 2006. Regarding the Senate hearing, spokeswoman Judy Pardonnet said Doris was looking forward to updating senators of all the steps the agency was taking to ensure accountability and transparency.

I wasn't able to connect with the Carmen Group last week, but will include their perspective when I write about Wednesday's hearing.

Flotsam and jetsam

• In other Metra news, state Sen. Martin Sandoval said he's been approached by people in the transportation industry to seek the vacant executive director position. The Chicago Democrat who chairs the Senate Transportation Committee said last week, "I'm looking at my options, but I'm quite happy being senator."
• Gov. Pat Quinn announced Thursday about $443 million was being distributed to Metra, Pace and the Chicago Transit Authority for capital projects. Not to rain on the parade, but it's not really news. We've known for months those agencies were due to get funding from the capital bill. And don't forget, the state still owes the Regional Transportation Authority about $262 million in operating funds to be distributed to the three transit agencies. In fact, the RTA is borrowing money to make ends meet.

So where's the $443 million going? The CTA will use the money for repairs and improvements to stations and track. Metra will rehab stations including Naperville, Geneva and Fox River Grove and buy electric rail cars. Pace will buy new environmentally friendly buses and paratransit vehicles, replace its radio system and build a transit center at Toyota Park where the Chicago Fire play.