Friday, April 29, 2011

Alina Hudak misses golden opportunity to reform MDT

The resignation of Harpal Kapoor as MDT director gave county manager Alina Hudak a golden opportunity to reform and make wholesale changes to the beleaguered agency.

Unfortunately, Ms. Hudak reverts to a page from the George Burgess playbook and places Assistant County Manager Ysela Llort in charge of MDT, papering her decision with the same old bureaucratic platitudes we have come to expect from the 29th floor at County Hall.

In a one page memorandum to county officials, Ms. Hudak only acknowledges that "MDT's business and financial management continues to disappoint the community" toward the end of her opening paragraph.

This is a severe understatement, showing us all that for Ms. Hudak, keeping up appearances is more important that accountability and facing tough challenges head on.

Ms. Hudak ends her missive stating that "[m]any challenges lie ahead for MDT, and strong management will be critical for the department's success."

Her idea of "strong management" is to appoint the person responsible for this fiasco to head the department. In this case, the cure is worse than the disease.

As the Assistant County Manager with oversight responsibilities for MDT, it is Ms. Llort who was "caught by surprise" at the actions of the FTA and has since last year been unable to fix the situation.

The same team that did not satisfy federal auditors and caused the financial meltdown at MDT is now expected to "develop an action plan to address deficiencies." What makes Ms. Hudak think that the outcome will be any different when the actors have not changed.

We are all aware that Ms. Hudak has stated previously her desire to stay with the County once a new mayor is elected.

However, Ms. Hudak has shown an unwillingness or inability to make the needed changes to County operations. When presented with such an opportunity, Ms. Hudak has once again disappointed, showing she is little more than "Burgess Lite."

County Executive Office Monitoring of Miami-Dade Transit

Tuesday, April 26, 2011

Breaking News: Miami-Dade Transit director Harpal Kapoor steps down

As reported by the Miami Herald:

Harpal Kapoor, head of the beleaguered Miami-Dade Transit Agency, is stepping down from his job after failing to restore millions in federal funds suspended last year after allegations of mishandling of agency accounting practices.

“Yes, it’s true,” said Suzy Trutie, Miami-Dade County’s assistant director of communications. “He is retiring from his job.”

The announcement about Kapoor came a few weeks after he refused to sign a letter to the Federal Transit Administration acknowledging that accounting information given to federal auditors about county transit operations was “neither fully accurate nor complete.”

Kapoor could not be reached for comment and did not answer a call to his cellphone.

Mr. Kapoor's resignation is a step in the right direction, but it should not stop there.

Ysela Llort, the Assistant County Manager who is responsible for Miami-Dade Transit oversight, should do the right thing and resign as well.

Beltway Rumblings: Congressional interest grows into County misappropriation of federal funds

Inside the Beltway readers are informing us that several Hill staffers are taking great interest and are following events closely regarding the fiscal fiasco taking place in Miami-Dade County government, specifically with the misappropriation of federal funds.

Heightened interest has been placed on recent news reports of the Federal Transit Administration ceasing their audit of the Miami-Dade Transit Agency earlier this month, and the total arrogance displayed by County bureaucrats in their dismissal of federal concerns.

Staffers for the House Committee on Transportation and Infrastructure, chaired by Floridian John Mica, and the House Committee on Appropriations, chaired by Hal Rogers of Kentucky, are starting to recommend measures ranging from a forensic audit to a full blown takeover (as was done with Miami-Dade Public Housing Agency), all with the objective of preventing further abuse and waste of taxpayer dollars.

One email to us read "[p]eople are pissed off at the hubris and business as usual attitude from the County and are looking at ways to teach them a lesson."

At a time when federal funding is at a premium, and communities across the country are facing cuts in infrastructure and other funding, the County's approach has sent a message that they don't care about the freeze in federal funding, leading several Beltway insiders to question the seriousness and professionalism of County administrators.

County leaders would do well to implement accountability measures to repair their precarious relationship with the federal government and start to act seriously in how they spend federal monies, or risk further embarrassment and a possible freeze and/or denial of pending and ongoing requests for federal funds.

Monday, April 18, 2011

The County Commission must investigate the lack of leadership at Miami-Dade Transit.

Miami Dade Transit "is working with the Federal Transit Administration to address financial issues pointed out in a preliminary review, and MDT is already taking immediate corrective actions.”

So said Harpal Kapoor in November 2010.

What was the effect of this "immediate and corrective action?"

In January of this year, the FTA cut off funding to MDT, calling it a "rare action'' that was taken "to protect the taxpayers' dollars.''

FTA auditors found "very serious financial management oversight and internal control issues'' at MDT, saying that "cutoff of grant funding would continue until federal auditors are satisfied that Miami-Dade has fixed the problems and adopted new procedures."

Six months later, MDT has not "fixed the problems," prompting the FTA to stop its review, citing they cannot determine "the veracity of [Miami-Dade Transit’s] information."

And yet, County Manager Alina Hudak continues to place her trust in Mrs. Llort and Mr. Kapoor.

After six months and with $185 million in federal funding on the line, Miami-Dade County taxpayers deserve to know what exactly is being done to protect their interests. Mrs. Hudak, Mrs. Llort and Mr. Kapoor must all be held accountable.

It is time that the County Commission initiate a full investigation into the practices and procedures at Miami-Dade Transit, including their compliance with all federal guidelines, to ensure that the same issues that have caused the FTA to doubt "the veracity" of MDT have not spilled over into other areas.

Begin a full investigation now, or the County Commission risks further losing the voter's trust.

Friday, April 15, 2011

Why do Ysela Yort and Harpal Kapoor still have their jobs?

Miami-Dade Transit is once again in boiling hot water as federal regulators further clamp down on the agency.

According to the Miami Herald:
Federal regulators have abruptly suspended audits of the Miami-Dade Transit agency, intensifying concerns about how long a crucial cut-off of federal funding will drag on.

In two letters dated April 8, Yvette Taylor, regional administrator of the Federal Transit Administration in Atlanta, notified the county-run transit agency that after nine weeks of probing county records, the federal agency cannot determine “the veracity of [Miami-Dade Transit’s] information’’ and was suspending its review until the county fixes eight areas of concern.

The unusual move — which caught county officials by surprise — means a five-month federal cutoff of some $185 million in grant money the county relies on to fund daily operations will continue indefinitely. The uncertainty raises the specter of potential funding issues for bus and rail services down the road, although county officials are playing down any such concerns.

The latest setback for the beleaguered Miami-Dade Transit agency comes after the FTA took the extraordinary step in November of suspending all federal grant payments to the county-run transit agency amid concerns about shoddy financial management and weak internal controls.

Since early February, federal contractors have camped out at the county agency, poring over thousands of transactions in a bid to get a clearer picture of the agency’s financial practices and procedures. The hope was the problems would be resolved and federal funding restored.

That was the "hope," but not the result.

Ysela Yort, with her $260,970 salary, was "caught by surprise" and is "playing down" the severity of losing access to $185 million.

MDT Director Harpal Kapoor, whom we all remember as the $242,602 a year bureaucrat that was part of the infamous Doral warehouse meetings with ousted mayor Carlos Alvarez, also can't explain what's going on.

Why do Ysela Yort and Harpal Kapoor still have their jobs?

Contrast this with the recent news of the FAA administrator who resigned over sleeping air traffic controllers. When subordinates failed to do their job, the top person and supervisor resigns.

But that is not the case at County Hall.

Ms. Yort and Mr. Kapoor continue to draw their hefty salaries in exchange for fiscal mismanagement, playing down crises, and platitudes about "delivering excellence," while the federal government and others continue to express grave concern over their management practices.

County manager Alina Hudak (whom we accused of being "Burgess lite") famously told the Miami Herald that she "hopes to continue in some capacity after a new mayor comes in."

In her handling of the MDT crisis and of its perpetrators, Ms. Yort and Mr. Kapoor, Ms. Hudak is showing the same lack of leadership that plagued George Burgess, where accountability gives way to excuses.

If this is the way Ms. Hudak runs Miami-Dade County, the next mayor will do well in wishing her a speedy retirement to enjoy her six figure pension.

Wednesday, April 13, 2011

Cason wins in Coral Gables, a harbinger of things to come.

Garnering 39 percent of the vote, Jim Cason was elected mayor of Coral Gables yesterday, promising to tackle the largest issue facing the city - a nearly $200 million shortfall in the city’s pension fund.

The first time office holder won because as voters told the Miami Herald: “The main issue was the control over the budget and pensions. They need to be reined in.’’

As Miami-Dade County faces an election for mayor on May 24, is Cason's election in Coral Gables a harbinger of things to come? We think so.

The voters of Miami-Dade County already resoundingly rejected the fiscal lunacy of former Mayor Alvarez, voting him out of office based on his decisions to raise taxes and his inability or unwillingness to address budget and pension issues facing the county.

Of the eleven people now running to replace Alvarez, one will have to emerge with a coherent plan to tackle excessive salaries, runaway budgets, and the pension obligation dangling over county hall like the Sword of Damocles.

Mayoral aspirants would be wise to take a page from Mayor Cason's playbook that included "an extensive brochure detailing the city’s pension issues, with the headline: The Real Truth About the Financial State of the City of Coral Gables."

Contrary to the opinion of many so-called political campaign consultants, the people of Miami-Dade County are not dumb and cannot be led to vote through silly slogans and visceral appeals. Rather, the people of Miami-Dade are ready for a candidate to face fiscal reality and explain to us how he or she will deal with these challenges.

The people are ready to listen, are any candidates ready to speak the truth?