Posts tagged Michael Townes

Tide’s Final Cost = $338,284,251

Feb 19th

Posted by 757HR in Light Rail Transportation

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Tide LRT Vehicles Being Delivered

HRT has released their final “cost-to-completion” for the Tide light rail system currently under construction in Norfolk. The new final cost is $338,284,251. This is, of course, much higher than the $232 million that was originally promised. Despite claims that HRT’s new President and CEO Philip Shucet is responsible for the firming up of the new number, the consultant was actually hired for the job by Townes, who knew about the cost overruns but failed to live up to City Council’s standards. It actually would make sense to me that the numbers Townes was feeding council were the preliminary numbers from his consultant. The difference between Townes’s and Shucet’s communication is that Townes should have done what Shucet did: tell council to hold on for a couple weeks while the consultant finishes the estimate.

Regardless, I hope that the project can stick to these numbers until completion. Personally, if Shucet does a good job with costs, I think we should demote him to a position to simply control LRT construction. That way we can hire a President and CEO that actually knows how to operate a transit system.

http://www.ridethetide.com/about_the_tide/cost-to-complete.shtml
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HRT’s Missing Money: Board’s Fault, Not Townes’s

Jan 8th

Posted by 757HR in Bus Transportation

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There has been much talk recently about the performance of HRT President & CEO Michael Townes. While I do think that he should share responsibility for the Tide-related cost overruns, I do not believe that he should be held responsible for not informing the board about the $80,000 allegedly stolen from the fare boxes over a six-month period in 2009. The missing money was uncovered during an independent audit of HRT. This audit was paid for and authorized by the board. In other words, the auditors worked for the board, not for Mr. Townes. If the auditors failed to inform the board of the missing money during their presentation, it is the fault of the auditor for failing to make a complete report and it is the failure of the board to make sure that the auditor gave a complete report. Mr. Townes does not fit into that equation. After Mr. Townes was made aware and an investigation was complete, the responsible employees were terminated. No charges were filed because the HRT lawyer did not think that there was sufficient evidence. No civil suit was filed because the associated costs outweighed the benefits. This means that HRT, after learning of the issue, fixed the problem and decided not to waste more money than they would have recovered (i.e. responsibility).

I believe that no matter what, you should always give credit where credit is due. The cities of Hampton Roads should change their board representation if they have failed to properly oversee HRT. They want to fire Mr. Townes because he failed to give timely notification of cost overruns. Now, fire the board for failing to take responsibility for their share of the problems. The board is not just there for sh*ts and giggles. They have a purpose. They have a duty to the residents of their respective cities to make sure that money is spent wisely.

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