Criticism of RTD Grows; Grand Jury Probe, Management Overhaul Asked

Criticism of the embattled RTD grew on two fronts Tuesday as the Los Angeles County Board of Supervisors requested a grand jury investigation and the chairman of the state Assembly Transportation Committee joined those calling for a management overhaul of the district.

Meanwhile, RTD Board President Jan Hall tried to quell a wave of criticism over high spending by top officials by recommending a new expense-reporting policy that would, among other things, require board members to surrender the transit district credit cards they use in paying some expenses.

The call for a Los Angeles County Grand Jury investigation of the transit agency came from Supervisor Kenneth Hahn, whose motion was approved by the board.

“It’s time for the grand jury to look into the whole situation,” said Hahn, adding that the inquiry should delve into the RTD’s organization, management and expenditures.

Responding to reports that hundreds of thousands of dollars may have been paid out in a scam involving phony RTD insurance claims, the Board of Supervisors also called for an investigation by the State Bar, because of the role of attorneys in making the claims. Supervisors also called on the RTD to dump its current insurance administrator, Leonard J. Russo Insurance Services Inc.

An official at the grand jury’s office declined to comment on the board’s request, and it was not clear whether the panel would respond.

Other Inquiries Under Way

A grand jury inquiry would come amid a series of other investigations of the transit agency. A panel of transit experts is wrapping up a report of bus safety that has cited a number of deficiencies in driver hiring and training. The county district attorney’s office is investigating the insurance fraud scheme as well as possible irregularities in the way that Russo obtained one of its RTD contracts--administering workers’ compensation claims.

In addition the Los Angeles city attorney’s office is expected to announce in the next few days the results of its investigation of RTD bus operators who may have driven district buses without valid licenses.

The continuing reports of problems at the transit system has prompted a number of officials, including state Sen. Alan Robbins (D-Van Nuys) and some of the county supervisors, to call for a reorganization of Los Angeles’ transit agencies.

On Tuesday, Assemblyman Richard Katz (D-Sepulveda), chairman of the Transportation Committee, joined the chorus.

“I don’t think we’re doing a good, coordinated job of planning. I don’t think we’re doing the best job of managing. I don’t think we’re coordinating existing services,” Katz said.

While admitting that there would be “tons of politics” to the move, he said he would like to see some sort of a consolidation of the RTD, the Los Angeles County Transportation Commission and possibly other agencies.

Katz, whose support for a reorganization could be crucial in Sacramento, said he is leaning toward a single countywide transportation agency that would have its own elected board.

“What we see at the RTD obviously is a lack of responsiveness by appointed officials,” Katz said.

“Between Metro Rail and the bus system, they are doing too much and not watching anything too closely,” he said.

Katz said that currently there is not the political will in the state capital to tackle a major reorganization.

“It’ll have to be developed,” he said, adding that he plans to hold special hearings in Los Angeles next month on the best way to proceed.

At the transit district’s headquarters, RTD President Hall said the agency would cooperate with a grand jury investigation, although she added, “I would not say that’s necessary.” Hall declined to comment on calls for a reorganization of the RTD, saying she will await the results of a county study of the issue that is now in progress.

Hall did outline policy changes that the board is expected to approve today to ensure better accounting of top RTD officials’ expenses for travel, entertainment and personal secretarial services.

$270,000 Spent Since ’84

The new policy was hastily drafted after disclosures last week that board members and General Manager John Dyer had spent nearly $270,000 on travel and expenses since 1984, a large share of it without submitting receipts or detailed explanations.

Hall said the so-called “honor” system that the board has used for years should be ditched in favor of requiring receipts and explanations of expenses. She said limits should be placed on expense-account meals (a maximum of $40 a day), hotel costs (“midrange”-priced rooms only) and travel (less than first class).

The district’s controller would be given explicit authority to challenge any expenses by board members or management officials, Hall said. And to aid in tracking expenses, board members would no longer have use of RTD district credit cards.

Secretarial services, beyond those provided the board by the RTD clerical staff, would be limited to 20 hours a month at a rate of $11 an hour.

Hall said she believes that the expense reporting policy would be the first comprehensive requirements imposed on RTD board members.

“We can always do something better,” she said.