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Tuesday, Nov. 25, 2014

In our opinion: UTA accountability

Deseret News editorial

Published: Tue, Sept. 2 9:08 p.m. MDT

 UTA offices

UTA offices

(Scott G Winterton, Deseret News archives)

Gov. Gary Herbert would like more elected officials to be part of the Utah Transit Authority board, a move he feels would increase the level of accountability in the wake of yet another troubling legislative audit of the agency.

That would be a positive step going forward. However, he and other public officials must demand greater accountability for the past, as well.

Among other things, the audit released last week revealed two highly unusual deals. One involved a $10 million “prepayment” to developer Jeff Vitek for a FrontRunner station in Draper, “even though there were no design specifications or immediate plans for construction.” Later, UTA chose a different contractor to build the project, but the first developer has yet to repay $1.7 million of the prepayment.

While the agency says Vitek put the money in escrow and made improvements to the site, the prepayment raises serious questions, not the least of which is that it violated UTA policy.

The audit criticizes a “general lack of documentation,” no cost-benefit analysis in conjunction with the project, insufficient legal documentation and, perhaps most troubling, “changing explanations we experienced throughout the audit.”

Without proper documentation, the audit said, it’s impossible to know whether UTA’s interests, and subsequently the public’s interests, were adequately protected. The agreement seems connected with acquiring land for the station, but agency officials have said the $10 million was not paid for that purpose. Also, the unusual prepayment caused UTA to lose “much of its ability to control the timing and completion of the project.”

The second project involves the Jordan Valley TRAX station in West Jordan. Auditors said an independent law firm hired to assist in the audit found the procurement process connected to a transit-oriented development at the site appears “to be overly favorable to the developer” and “far out of market.” The developer has yet to pay its share of the costs. Two mostly empty parking garages exist on that site.

The audit said UTA employees had raised concerns about the Jordan Valley deal, noting that the developer chosen for the project, Boulder Ventures, had not provided required financial information.

“The concerns expressed by these employees appeared justified in our review of the procurement file,” the audit said.

Even if, as the governor says, changes have been made at UTA and people responsible for some of the problems have left, taxpayers deserve an accounting. That accounting may demand a criminal investigation.

The Utah Transit Authority has an impressive record of providing a transit system unmatched by any metropolitan area its size in the United States. At least in its early years, the agency built that system with innovation and despite meager resources. It is because of that record that this audit is particularly troubling.

In order for UTA to continue staying abreast of a rapidly growing population, providing real transportation alternatives that alleviate road congestion and pollution, it will need further public resources. Potential tax increases have been mentioned.

For that to happen, public trust is essential. As contentious public comments during a board meeting last week made clear, that trust may never be restored unless a thorough accounting of irregularities involving public funds is executed.

Recommended
1. FatherOfFour
WEST VALLEY CITY, UT,
Sept. 2, 2014

If everyone gets away with it and there are no criminal charges, then there is no accountability. Business will continue as usual.

2. Sandy Citizen50
SANDY, UT,
Sept. 2, 2014

This is a sad case of lack of oversight, where we as the public get fleeced. Why do the top executives get such high salaries when you consider what other executives get much less than those who also work for public agencies? This is outrageous conduct and needs to stop. But how can we reverse this when we have cronies sit on the board of directors?

3. FT
salt lake city, UT,
Sept. 2, 2014

This is just another example of the good old boys on the hill circling their wagons and protecting their own. The people of Utah have no one but themselves to blame by consistently re-electing the same people over and over again. Just because you see these people on Sunday does not mean they have the charecter and the conviction to do the job on Monday.

4. Fan Base
Salt Lake City, UT,
Sept. 2, 2014

Start with actual transparency by not tinting the windows of the buses and trains. We want to see how many passengers are riding while we wait at the crossings.

5. procuradorfiscal
Tooele, UT,
Sept. 2, 2014

UTA Accountability?

UTA execs will never be accountable to anyone but their carpetbagging, tree-hugger buddies in the "environmental" movement and the Washington bureaucrats that make their huge salaries and bonuses possible.

Once the federal money drops out of the equation, as it inevitably must, and Utah voters see them for the horrendous drag on the economy they really are -- they'll be outta here like a shot.

On to the next loony liberal federal boondoggle.