Thursday, February 11, 2010

Trees as assets

Here's an interesting story from WRAL about stolen/lost/damaged state property:

http://www.wral.com/news/local/wral_investigates/story/6999284/

Buried within is this:

"Yet another high dollar loss for the state comes from damaged property. For the Department of Transportation, much of that damage happens on the side of the road. 'Trees are considered as assets,' said DOT engineer Ted Sherrod. The DOT has reported hundreds of thousands of dollars in tree losses, mostly from businesses clearing around signs in the right of way. 'We'll have about as many as 50 cases a year,' Sherrod said."

Good to hear that DOT considers trees assets. Let's hope they start treating them that way.

Thursday, December 10, 2009

Former DOT engineer gets jail sentence of 37 months

From The Daily Reflector

http://www.reflector.com/news/former-dot-engineer-gets-jail-sentence-of-37-months-1008716.html

A former Department of Transportation engineer was sentenced Tuesday in federal court to three years in prison on extortion charges in connection with bridge work done in Pitt and Beaufort counties, a spokeswoman for U.S. Attorney George E.B. Holding said.

Dalton Ray Alligood Jr. was sentenced to 37 months in prison, followed by two years of probation, for extortion under the color of official right, a violation of U.S. statutes, spokeswoman Robin Zier said. Alligood worked as a district engineer in charge of the bridge maintenance unit in Pitt and Beaufort counties for the NCDOT transportation division. He supervised 32 employees and was empowered to enter “fully operational rental” contracts with private companies, Zier said.

“Alligood used his power to extort kickbacks from contractors in exchange for contract awards,” Zier said.

In 2004, Alligood provided an excavation company two small, fully-operational rental contracts after he formed a social relationship with its owners, Zier said. The owners then offered him a 10 percent kickback on all future contracts, which Alligood accepted with the condition that the kickbacks be made in cash, Zier said.

Alligood went on to award dozens of contracts to the excavation company and received payments in excess of $300,000.

The scheme came to an end when the arrests of former NCDOT officials Danny Taylor, Chad Fornes and Mike Delmonte, who were charged with using their positions to extort cash from contractors, were reported in the media, Zier said.

Holding commented on the situation following the sentencing.

“Civil servants are responsible to perform their duties free of any conflict or improper personal gain,” he said. “Unfortunately, the defendant set aside those obligations.”

Everything that's wrong with NC state government

From WRAL.com:
http://www.wral.com/news/state/story/6579098/

Perdue probes buys from firm tied to Rand

RALEIGH, N.C. — Gov. Beverly Perdue has asked the state Department of Transportation Department to look into its purchases of costly surveillance equipment from a security company headed by a powerful politician.

Multiple media outlets reported Wednesday that Perdue said the purchases by the Division of Motor Vehicles and other state agencies were being reviewed. She said the results would be made public.

At least four state agencies have bought nearly $200,000 in equipment from Law Enforcement Associates since 2003, when state Sen. Tony Rand became the company's board chairman. The Fayetteville Democrat is stepping down as Senate majority leader to become Perdue's parole chief.

DMV bought more than $64,000 in gear from LEA without seeking competitive bids.

Tuesday, September 29, 2009

DMV commissioner claims no link between phone contract and gifts

WRAL reports http://www.wral.com/news/local/story/6102981/

Raleigh, N.C. — The commissioner of North Carolina's Division of Motor Vehicles says there's no evidence linking a phone company contract to gifts and meals provided by its workers to state employees.

Commissioner Mike Robertson said Tuesday that Verizon says 62 state workers or their family members received restaurant meals, hockey tickets and other benefits from company employees. Such acts would be in violation of the state ethics policy.

The State Bureau of Investigation has been asked to look at what happened. Robertson says the SBI is also investigating computers used to implement the state's electronic sticker program. The DMV paid for the computers, but currently some are unaccounted for.

“The SBI has been asked to look into this, and to whether or not any DMV employee had knowledge of this inventory or those stored computers," Robertson said. “It is important to note that at the end of the day, Verizon bears the responsibility for the computers not accounted for, (and) not DMV.”

Robertson says no current employees have yet been disciplined and it appears there's no evidence that the gifts had a role in expanding a Verizon state contract.

Verizon spokesman Jack Hoey said five employees will be disciplined regarding the meals and gifts, and that the company is cooperating with the DMV to find the missing computers.

Saturday, January 10, 2009

Lapsed warranty will likely cost DOT millions to fix I-795

From Jan. 9, 2009 WRAL.com :

Goldsboro, N.C. — At least one state lawmaker says a lack of accountability is to blame for a bad paving job along 18 miles of Interstate 795, which could cost the state millions of dollars to repave.

The North Carolina Department of Transportation said Thursday it could cost anywhere from $14 million to $22 million to fix the stretch of road running from Wilson to Goldsboro, which started cracking 16 months after the project was complete. A report from the Federal Highway Administration partly blames air pockets in two hot-mix asphalt layers for the problems.

"The person responsible should be fired," Sen. Neal Hunt, R-Wake, who sits on the Joint Legislative Transportation Oversight Committee, said Friday. "Bottom line – if he made a $20 million boo boo, he needs to be terminated, but you can't find out who it is (because no one person is responsible). That's the problem."

Another part of Hunt's concern is that the DOT discovered the problem four months after its 12-month warranty on the $120 million highway expired.

DOT is already paying the contractor, Wilson-based S.T. Wooten, nearly $500,000 to repair a number of large cracks and potholes along the interstate, and officials say it is likely the state will also be responsible for paying the company to repave the rest of the roadway.

Victor Barbour, the DOT's administrator for technical services, which oversees contracts, said the agency didn’t purchase an extended warranty because of the cost increase that would have been associated with the project.

But Hunt believes extended warranties are worth the investment.

"To me, it's a no-brainer, absolutely," he said. "If a private business were doing this, they would not pay the bill until they were sure it was right. Period."

Hunt wants to know why history seems to be repeating itself.

In 2007, the DOT spent about $22 million to repave a 10.6-mile stretch of Interstate 40 in Durham after finding that expansion joints were improperly constructed when new concrete was laid on top of the old during a widening project.

DOT engineers began noticing problems with it before the project was finished, and it hired the same contractor to fix it, because under state law, the lowest qualified bidder must be awarded the contract.

Bruce Dillard, the DOT's inspector general, whose job is to promote accountability and efficiency and minimize fraud, waste and abuse, said Friday his office has no intention of auditing the I-795 project. He declined to comment further as to why.

DOT says it is too premature to say whether the department will revisit its warranty policy.

"I think we'll do an evaluation process and determine what direction we need to take with regard to the warrant," Barbour said.

Reporter: Bruce Mildwurf

Tuesday, December 23, 2008

Report: Retiree rigged jobs, raises at DMV

From The Raleigh News & Observer:

Dan Kane - Staff Writer

Internal investigative files released Friday say that Greene County patronage boss Eddie Carroll Thomas had "long-standing and widespread" influence over personnel decisions in one of the state Division of Motor Vehicles' largest sections -- Driver and Vehicle Services.

Need a job? Send an application to Thomas. Want a troublesome colleague transferred? Talk to Thomas. Need someone to get you a new DMV job assignment? Thomas is "the man," employees told investigators.

All this is considerable influence for a 73-year-old man who is no longer a state employee. Thomas was once a Transportation Department maintenance supervisor, but he abruptly retired five years ago after state records showed dozens of calls from his work phone being made to top officials across state government. State and federal investigations looked into two state contracts connected to Thomas' business partners and Thomas' role as a conduit for jobs and appointments at other state agencies.

"I personally was shocked and offended by what was contained in the investigative report," DMV Commissioner Bill Gore said. "And I was offended not only as an administrator but as a citizen."

Gore turned over the investigation to Wake County District Attorney Colon Willoughby on Nov. 4. A month later, Willoughby wrote that he would not pursue it.

Part of Thomas' influence stems from his role as a political fundraiser. He raised money for both former Gov. Jim Hunt and current Gov. Mike Easley. An internal Easley campaign document from 2000 showed Thomas had been tapped to raise $40,000 from Greene County, among the state's poorest counties.

Employees told investigators that Thomas had the ear of the section's head, Wayne Hurder, who became the DMV's second-in-command in August 2007. In numerous instances, the files say, Hurder backed what Thomas wanted.

Hurder, 61, was fired Oct. 31 for using his position "to exert improper influence in personnel matters," Transportation Secretary Lyndo Tippett said in a letter that authorized release of the investigative files. Hurder has denied any wrongdoing and is suing to get his job back.

Hurder said that Thomas, who he acknowledges is a friend, held no influence over him. Hurder joined the DMV in 1993 and made $101,867 a year. Hurder told investigators he met Thomas five years ago.

"Nobody speaks for me," Hurder said. "The district supervisors and others on my staff know that nobody can speak directly for me."

Thomas could not be reached for comment.

Costs to taxpayers

The personnel moves cost taxpayers, Gore said. Employees who shifted to other offices -- without their direct supervisors' approval, or in some cases without their knowledge -- cost the state at least $80,000 unnecessarily. Hurder said the moves were made to combat manpower shortages.

When it came time to interview job candidates for positions in the eastern part of the state, Hurder called upon Thomas' nephew, Danny Thomas, to drive from Morganton, 200 miles west of Raleigh, where he was a district supervisor. Records show those trips cost the state thousands in travel expenses.

Thomas and another DMV supervisor, Mike Salisbury, handled much of the examiner interviews for jobs in the eastern part of the state. Salisbury, Danny Thomas, Hurder and other DMV employees would regularly join Eddie Carroll Thomas for dinner. Danny Thomas told investigators that his uncle and Hurder would discuss personnel matters.

The files show an instance in which interviews for two examiner jobs in eastern North Carolina were supposed to be handled by Danny Thomas, but inadvertently got assigned to another supervisor, Nadine Barnes. She did not pick a person recommended by Eddie Carroll Thomas. Hurder ordered the paperwork redone to show the person Thomas recommended was one of the top two choices for two positions.

DOT playing favorites? Some think so

From WRAL.com :

Raleigh, N.C. — Are state leaders playing favorites when it comes to allocating funding for highway projects in some cities?

A Charlotte transportation official and a Wake County commissioner seem to think so.

In a Dec. 5 letter to President-elect Obama, R. Lee Myers, chairman of the Mecklenburg-Union Metropolitan Planning Organization, asks the incoming administration to freeze all federal funding to North Carolina for highway projects, saying an investigation into the state's Board of Transportation and transportation officials is needed.

Myers accuses Department of Transportation Secretary Lyndo Tippett and Democratic majority leader Sen. Tony Rand, D-Cumberland, of showing favoritism in a recent decision to allocate $275 million in funding over the next six years for the future Interstate 295 outer loop in Fayetteville.

Both Tippett and Rand are from the Fayetteville area.

In comparison, Charlotte received $104 million over the next six years for the Interstate 485 loop, and Raleigh received $5 million for the Interstate 540/N.C. Highway 540 loop.

I-295 is projected to have about 30,000 vehicles per day traveling on it by 2020, Myers said.
Traffic on the completed portion of I-485, is "unbelievably congested" at 120,000 vehicles a day, Myers said. The uncompleted portion, he said, is projected to have approximately 130,000 vehicles a day by 2030.

Myers said the decision is political and, although legal, is far from being a "systematic distribution of funding."

"The failure to require a more just and fair system is the fault of the North Carolina Legislature," Myers writes. "However, insofar as federal funding is concerned, this is your opportunity to bring about a significant change in the way the federal government does business."

Wake County Commissioner Joe Bryan agrees.

"We've got to start prioritizing in this type of economic situation we're in now," Bryan said. "I have no idea of their personal involvement in this. That's a decision by the Board of Transportation. Whatever the case is, I think the public can figure it out for themselves."

Rand denies any favoritism, saying funding has been distributed fairly.

Through 2008, I-485 received $1.05 billion, and I-540 received $757 million. I-295 received $66 million.

"When you look where the money's spent, it's obvious we haven't taken advantage of the situation in any improper way," Rand said. "It's obvious we waited in line."
To complete Raleigh's loop, the DOT says toll roads are necessary.

DOT says that because of Fort Bragg's growth, Fayetteville needs and deserves the funding.
"It's going to challenge our schools, challenge every bit of infrastructure we have, and highways are a huge part of that," Rand said.

It's unclear how Obama will respond.

As for the state's new administration, Governor-elect Beverly Perdue says one of her top priorities is to transform the Board of Transportation.

"I do not want them approving individual roads," Perdue said. "I want to depoliticize how roads and bridges and maintenance is done in the state."