“As most may know, the Regional Authority Board hired Michael Ford in October 2014 as our CEO. With 30 years of experience in the transportation sector, most notably his success in expanding the service area and operations of the Ann Arbor Area Transit Authority, Mr. Ford was recruited by the RTA Board to: build a staff team; lead efforts to better coordinate service of local transit providers; and develop a comprehensive regional transit master plan to expand bus, commuter rail and on demand service that would win funding support by voters across Wayne, Oakland, Macomb and Washtenaw Counties.
In a region that has seen more than 20 failed attempts to advance a coordinated, connected regional transit system, Mr. Ford: assembled an outstanding staff; brought local transit providers together to identify collaborative projects, most notably resulting in Reflex service along Woodward and Gratiot Avenues; and guided the selection of consulting firms to develop a four-county, comprehensive transit master plan and conduct bus rapid transit and commuter rail corridor studies.
All of this work, undertaken in less than two years, set the stage for a November 2016 millage proposal that voters of the region sadly rejected by just a 1 percent margin. Despite this election defeat, reflecting voter reluctance to support tax increase proposals and a region too often divided by municipal boundaries, we are grateful that Michael Ford's and our staff's tireless efforts have raised public awareness of the need for truly regional transit service in Southeast Michigan--and have laid the foundation for its future development. However, with defeat of the millage, implementation of the master plan and the operational experience which Michael brought to his position will not be required in the near term. Given that Mr. Ford’s contract term will be expiring in October 2017, it does not appear to the Board that renewal of the contract will be warranted. Therefore, the Board has decided to ask Michael to terminate his employment, which it is characterizing as a termination without cause under his contract. We do so, thanking Michael for his service and wishing him well. Michael has agreed to accept that decision as being in the mutual best interest of himself and the Board.
If Southeast Michigan is going to compete more successfully with other regions in attracting talent, growing our economy and providing needed access to job opportunities, vital services and our rich cultural and recreational assets, we must build and operate a more comprehensive, connected, convenient and better funded public transit system. Our Board remains absolutely committed to this goal and will be seeking to build a regional consensus on the path forward.
Recently, the Board initiated an internal review of CEO expenses triggered by Freedom of Information Act requests and following our annual evaluation of Mr. Ford's job performance. We have discovered that an aggregate amount totaling $18,813.34 in overpayments inconsistent with the terms of the Employment Agreement made with Mr. Ford since he was hired in October 2014, were made for cell phone, mileage and health insurance related expenses. While this amount may appear insignificant compared to RTA administrative operations expenditures of $1.77 million since Mr. Ford's date of hire, and while the RTA has received clean external audits during this period, the Board and Mr. Ford have taken seriously these overpayments. Thus, Michael has paid back the RTA for the $18,813.34.
With respect to travel related expenses, the Board did not find that reimbursement for out of state travel should be made, as the Board did not find that Mr. Ford’s travel expense reimbursements were improper. Mr. Ford was encouraged to participate in American Public Transportation Association Conferences, and the Board approved his aggregate monthly expenses which were within authorized annual budgets set by the Board.
We have further concluded that errors in expense calculations started when the RTA was transitioning from part time loaned staff to full time staff. We did not find wrongdoing by Mr. Ford or any members of our staff. Along with Mr. Ford’s responsibility for control and oversight of the budget, as a Board we also share responsibility for not discovering these errors in carrying out our oversight role. For this reason, we have requested our external auditor to review and recommend improved internal controls in order to prevent the errors that were made.”
