Turnpike head endorses strict standards
AUGUSTA — The interim director of the Maine Turnpike Authority endorsed more stringent standards for the agency Tuesday, recommending to lawmakers that an outside auditor come in four times a year to ensure that all policies are being followed.
Peter Mills, a former Republican state senator who took over at the authority after the resignation of Executive Director Paul Violette, told lawmakers that controls are needed. Violette resigned amid questions involving turnpike expenditures on fancy hotels, expensive meals and gift cards that could not be accounted for.
“We’ve been thinking deeply about how do you create a system to preclude those things from happening again after many of us are gone,” Mills told members of the Legislature’s Transportation Committee Tuesday.
The committee held a public hearing on L.D. 1538, a measure with several changes designed to give the Legislature better oversight of the authority. Sponsored by Rep. Richard Cebra, R-Naples, the bill enjoyed wide support and is scheduled for committee work sessions on Thursday and Friday.
“I call it the turnpike reset bill,” Cebra said.
During testimony, two lawmakers who have been key to bringing about the suggested reforms kept the pressure on sitting board members, saying some of them should resign or be removed.
“I think they let us down in their fiduciary responsibilities,” said Sen. Roger Katz, R-Augusta. “I question whether they should remain in those positions.”
And Sen. Dawn Hill, D-York, whom Katz credited with bringing issues at turnpike to the fore, said it’s time for some of them to move on.
“I make no judgments on individuals, but I do hope you consider asking some of them to retire to bring in some new blood,” she said.
Katz also outlined some of the problems uncovered in a January report released by the Office of Program Evaluation and Government Accountability.
“The executive director oversaw a culture of grossly excessive spending that has ended up shocking most Mainers,” he said. “Stays in extravagant hotels, meals costing thousands of dollars and other examples of simply wasting public funds are the legacy of his tenure. His own actions are now the subject of a criminal investigation by the attorney general.”
As proposed, the bill:
* Requires the authority to transfer to the Department of Transportation an amount equal to 5 percent of operating revenues each year, minus funds spent by the authority on bonds issued to benefit the department and projects funded jointly with DOT. The transferred funds can be used only on projects within 25 miles of an interchange.
* Changes the membership of the authority to a board of directors and requires that four members be from a municipality in York, Cumberland, Androscoggin and Kennebec counties. Also, the Government Oversight Committee recommended the length of terms for board members be reduced from seven to four or five years.
* Requires ongoing internal auditing of the authority’s books. Mills suggested the authority take it a step further and require the board to hire an outside auditor who would report directly to the board, not the executive director.
* Changes the fiscal year from a calendar year cycle to coincide with the state fiscal year, which runs July 1 through June 30. Mills said this may be a difficult change and it is likely to be reconsidered by the committee.
* Requires the authority to present a detailed budget of expenditures.
* Requires contracts for goods and services to be awarded through competitive bid.
* Requires the authority to adopt a fair process when working with engineering firms.
* Allows the authority to establish reciprocity agreements with other toll collecting authorities to help recover uncollected tolls. Maine loses about $500,000 a year from those who neglect to pay a toll, Mills said.
Susan Cover — 620-7015
scover@mainetoday.com