New HRT chief ending ‘unnecessary spending’

By Debbie Messina
The Virginian-Pilot
© April 26, 2010

Hampton Roads Transit, which operates and promotes bus service regionally, provides personal cars for 19 employees.

The public agency also offers free or nearly free family health insurance to 11 employees, and it sends its chief and two board members to overseas conferences every other year.

But those practices are ending.

Philip Shucet, who assumed the helm of HRT earlier this year, is on a campaign to “reduce unnecessary spending.”

“We’re spending the public’s money,” Shucet said. “As a public agency, I need to see the benefit staring me in the face.”

He said the expenditures “are not appropriate.”

HRT’s funding comes from its seven member cities, federal and state sources, and farebox collections on buses and ferries.

Shucet was hired Feb. 1 on a one-year contract as president and CEO to replace Michael Townes, who was forced to step down partly because of overruns on light- rail construction.

HRT board chairman Jim Wood, a Virginia Beach councilman, stands behind Shucet’s cuts.

“It’s absolutely the correct thing to do,” he said. “It’s unreasonable for an agency this size to have take-home cars.”

Beginning in June, the 19 employees who were given vehicles to use both during and outside of working hours will have to return them to the HRT vehicle pool. A decision will be made later as to how many can be sold and how many should be retained for employees to check out for business use only.

HRT has been paying about $140,500 annually for the vehicles, which includes maintenance, insurance and fuel. The cars are primarily for senior executives and light- rail operations staff.

“Taking home a public car – I thought that went away in the ’70s,” Shucet said. “I’m not aware of any reason or documentation that suggests anybody at HRT should be driving a public car for commuting purposes.”

Shucet will also end special health care coverage that costs HRT about $53,000 annually. Seven employees received family health insurance for free and another four received the family plan but paid 30 percent of what other employees paid.

“All employees will be treated equally with respect to payment of health benefits,” he said.

HRT’s policy is to cover 100 percent of the costs for employees only. Employees may purchase additional family plan coverage.

Shucet said he assumes the cars and health benefits were offered as “a substitute for compensation.”

“I do understand why people might be upset over this,” he said. “Some made a career and relocation choice based on these benefits. But the playing field needs to be the same for everyone.

“There are highly valued employees in this group of people, and I hope we don’t lose any of them over this.”

The benefits changes do not apply to Townes, who is on the payroll through September, when he officially retires with a one-year severance package. Townes receives special benefits including a $1,300 a month car allowance and a free family medical plan. Shucet said they are in Townes’ employment contract with the HRT board so he cannot alter the arrangement.

In another cost-cutting measure, Shucet will not renew the HRT’s membership in the International Association of Public Transport, with annual dues of $3,000.

That means the agency will no longer send two to three representatives to bi annual overseas conferences, which cost the agency $10,000 to $13,000 for each conference. Recent meetings were held in Rome, Helsinki and Vienna.

Townes and Norfolk Councilmen W. Randy Wright and Paul R. Riddick attended the conferences in Rome and Helsinki. Townes and Wright paid their own airfare and hotel.

In 2009, HRT paid all expenses for Wright and Riddick to go to Vienna. Wright said he went on HRT’s tab that year because he was a conference speaker.

HRT is one of about 18 U.S. members of the international organization, about half of which are public transit agencies, according to the group’s website.

“I’ve never been big on attending big annual meetings under the guise of networking,” Shucet said. “International travel is not cheap. I’m sure there were things to see and learn. But there’s a wealth of transit organizations here in the United States. That’s good enough for me and our member cities.”

Wright said the trips were beneficial because he established relationships with federal transit officials at the conferences that helped launch Norfolk’s light- rail project.

“There are people in the (Federal Transit Administration) I can call and e-mail,” Wright said.

Shucet also is not renewing HRT’s $500 Hampton Rotary Club membership.

In another cost-cutting measure, HRT no longer employs a California resident, at about $100,0000 a year the last two years, to manage a federal grant program that provides transportation services for low-income and disabled people.

That role will now be filled in house at less than $50,000 a year, Shucet said.

Together the changes will save about $300,000 a year, Shucet estimates.

“That’s a heck of a lot of money we can use to improve our service,” he said.