This is really interesting. If you worked 4 years for an employer would you get 35 years credit for retirement? Not likely - unless you are Fred Gilliam - Capital Metro's General Manager, and you sign a "draft" agreement with the only and only Lee Walker. It appears like CMTA thinks it is not even a public agency at all. Of course they have pretty much gotten away with this insular, do what we want way of business for a long time.
Friday, April 3, 2009
GM - Golden Parachute Retirement Package
This is really interesting. If you worked 4 years for an employer would you get 35 years credit for retirement? Not likely - unless you are Fred Gilliam - Capital Metro's General Manager, and you sign a "draft" agreement with the only and only Lee Walker. It appears like CMTA thinks it is not even a public agency at all. Of course they have pretty much gotten away with this insular, do what we want way of business for a long time.
Internal CMTA Memo - A Ship Taking on Water

Here is an internal memo of minutes from one the staff meetings open to all CMTA and Star Tran employees. You see Fred likes to straddle the line, Transit Superman, and man of the people. Of course, this is all internal PR bullshit, and it surely massages his ego that people look up at him some kind of fucked up Transit Movie Star when he calls these meetings. The content of this meeting is starting to show that even the run of the mill CMTA worker is not at all persuaded about the agency and its really wierd ways. I especially like it when Fred asks if they prefer wage reductions or layoffs. Someone should have said, " well Fred, I wish that you had not spent every fucking nickle of the $300 million that you had in the bank, bought the most expensive trains on the planet, etc etc. Another fine bit is when the actually disclose that the Austin American Statesman refused to print the OP ED (cover our ass) piece. Major compliments are due to the Statesman Editorial Board for writing concise editorials on CMTA and refusing to print the crap that CMTA is putting out. Another interesting bit here is fishing out "contracting out" issue if the CMTA Board changes. Well, we all know that the Board of CMTA must change, since they have been passive, chair filling idiots who did not ask questions, presided over a massive 5 year spending spree, and had "no idea" about it. Margaret Gomez - what a utterly worthless Chairwoman of the Board -
Read, and see the chaos at work in CMTA and Fred as captain of a titanic ship lost at sea and taking on water
Break Bread with Fred Recap
Here is a brief recap of the Break Bread with Fred held on Monday, March 30, 2009.
Introduction
Fred began with an overview of the current financial situation and explained that recent media stories were not completely accurate. Since 2006, Capital Metro had indicated to the Board of Directors that the reserves would dip below acceptable levels by the year 2010. Decisions were made to move forward on important capital projects such as the rail system, Automatic Vehicle Locator system, facilities, etc. The Board also directed staff to put a moratorium on adjusting service until 2008. No one predicted the slump in sales tax that Capital Metro is dealing with right now, which made the declining reserve situation more immediate. The authority has seen dips in sales tax before. Fred said we’ll get through this and build the reserves back up in a few years.
Randy Hume added that everyone should know Capital Metro is current on all of its financial obligations. An article made it sound like the agency spent well past its means and that’s not true. He said all of our bills have been paid and we continue to watch our cash flow carefully.
Fred also spoke about the delay of MetroRail. Since January, the Board had been kept informed of the possibility that service would not start on March 30. In January, a problem with the rail shunting had been identified that might require additional time to correct. Then a few weeks ago Capital Metro was informed by the Federal Railroad Administration (FRA) and the Texas Department of Transportation (TXDOT) of alleged violations by two of Veolia’s trainers. One of the employees is no longer on the project, and the other served a suspension. The violations must be taken seriously, and Veolia is working with the FRA and TXDOT to address the matter. After learning of more alleged violations a week later, Capital Metro decided to cancel the celebration, even though a delay in service had already been announced. Safety is the biggest priority and Capital Metro would not open service or provide demonstration rides without the guarantee of a safe system.
Capital Metro is working closely with Veolia to refine a plan to start service. Soon, the train engineers will become certified and testing of the rail system will occur at normal operating speeds. The rail department expects to begin pre-revenue testing within the next week.
Setting the Record Straight
An employee asked if there is going to be any attempt to set the record straight in response to the Statesman’s stories. Fred replied that the financial update at the Board meeting addressed several inaccuracies in the media. Information about the agency’s favorable and clean financial audit for last year was posted to the agency’s Web site. A guest editorial was submitted to the Statesman, but they declined to publish it. He said there is some other outreach that staff is doing to keep the public accurately informed, but it will be difficult to overcome the damage that has already been done. A full-page ad was considered, but the agency didn’t think the benefits outweighed the cost of $12,000. The guest editorial is available on the Web site now. The agency is trying its best to mitigate the damage and over time will overcome it. Fred said it’s important that employees know the truth, and he encouraged employees to ask questions.
Early Retirement Option
An employee asked Fred to shed some light on the early retirement packages being offered. Fred said it’s truly an individual decision. People who are considering retirement in the next few years should seriously look at this option and see if it makes sense for them. Capital Metro has staff and resources that can help employees make the best decision for them and their family. Fred explained that it is a cost-saving mechanism for the agency, but that he’s not encouraging everyone to do it. If several people do take it, there will be some critical positions that must be re-filled.
Those concerned about the future of the organization should know that public transit is not going away. During tough economic times many people depend on public transit more than ever. Capital Metro may have to reduce trips where the ridership is low and shift service to meet the demands.
CAMPO Review and Future of StarTran
An employee followed up with a question about how the CAMPO Peer Review recommendations will affect the future of StarTran. Fred responded that the CAMPO recommendations included streamlining the relationship by either unifying all employees as public or contracting all services out; or maintaining the current situation with the goal to improve labor relations. This is a policy decision not a management decision. The board has stated that they don’t like the current arrangement between Capital Metro and StarTran. More than a year ago, the board went in the direction of unifying the workforce as public employees. After the Union said they did not want to be public employees, the board stopped pursuing it. Fred stated that he has not encouraged the Board to go one way or another. If the Board membership changes, they might decide to go in a whole new direction.
May 15 MetroRail Report
An employee asked what is expected to happen between now and May 15 when Capital Metro is supposed to report back to the community on MetroRail. Fred said the May 15th date gives the agency and Veolia adequate time to pinpoint any and all remaining challenges to opening the system and refine the action plan for rail. Capital Metro will work with everyone involved to resolve any outstanding issues. Fred’s goal is to establish a new date after everyone is confident that the system will operate safely. If rail is not already in operation by May 15, Capital Metro will report back to the community with a plan to begin service. He said the agency will not allow the media’s criticism to affect the decision of when to open the system. Once it opens, it will be a system that the agency and the community can be proud of.
Other Cost Saving Actions
An employee asked if other cost-saving measures, such as downsizing departments, are possible. Fred said there have already been several measures implemented, such as a hiring freeze and asking departments to reduce budgets by 15 percent. There are other things being considered, and Finance will continue to look at ways to save money but avoid layoffs.
Fred added that no matter what happens Capital Metro has to make sure it’s not living beyond its means. The best thing employees could do is spend their money locally. A lack of confidence to spend money is the reason for the decline in the economy.
An employee followed up with a question of whether the agency would give priority to salary cuts across the board versus layoffs. Fred replied that he would much rather have salary cuts than layoffs. If that were to occur he said the agency would make sure that everyone fully understands the reasoning and implications behind it, and that the policy is implemented fairly. Fred then asked the attendees what their preference would be, and the consensus in the room was that salary cuts would be preferable to losing one’s job. In 2002, 2003 and 2004, the economy was worse off than it is today. The only difference is that the agency’s reserves were higher. Fred said we weathered that storm then and we’ll get through these times.
Donna Simmons, Human Resources Director, added that employees who have cost-saving ideas should submit them to the Recognizing Resourcefulness (R2) program. Employees who make suggestions that lead to monetary savings for the agency could be rewarded with a percentage of the estimated savings.
Fred closed by thanking everyone for all of their hard work and said it makes a difference to the agency and the community.
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