Resign or be fired, HRT chief is told by 4 board members

NORFOLK

Four Hampton Roads Transit board members from three cities have asked President and CEO Michael Townes to resign or face possible dismissal over spiraling cost overruns to build Norfolk’s light-rail starter line.

Board members have learned over the past two weeks that the project, which was budgeted to cost $232 million when construction started, could rise to about $340 million, a 47 percent  increase. The opening date has been pushed into 2011, a year beyond the original schedule.

A letter dated Dec. 28 and addressed to Townes was signed by the following board members: Virginia Beach Councilmen John Uhrin and Jim Wood,  Norfolk Councilman W. Randy Wright,  and Chesapeake Councilman Rick West.

Wood is HRT’s chairman, and Wright is vice chairman.

The letter, obtained by The Virginian-Pilot through the Freedom of Information Act, says the board members plan to present a resolution to fire Townes on Jan. 28, at the  board’s next meeting.

“We would prefer to negotiate an amicable separation from you in the form of a resignation, and we are still open to discuss this,” the letter says. “However, in the absence of such a settlement, we will bring forward the resolution.”

The board’s executive committee met for more than three hours behind closed doors last week but did not reach a consensus on whether to oust Townes.

Meanwhile, the Virginia Beach City Council is working on a resolution calling for Townes’  termination. The resolution is  expected to be considered next month.

Townes is on medical leave for knee surgery and did not return a  call to his cell phone Wednesday.

Speaking about the letter Wednesday, Wood said, “I really think we need to restore confidence in the management at HRT.”

Uhrin said: “I think the public deserves the opportunity to know with confidence that their tax dollars are being managed wisely.  With the last overruns coming out of left field and with the board not getting updated, we clearly need a change in leadership.”

Wright characterized the problems as “a nightmare.”

“We need to regain credibility with the public on a project that’s skyrocketed beyond what we signed up for,” he said. Construction is a little more than halfway complete on the 7.4-mile starter light-rail line, which runs from the medical center on Brambleton Avenue, through downtown, to the city line at Newtown Road.

Most HRT board members did not learn  of the new cost projections and schedule until they were contacted by The  Pilot in mid-December. The new $328 million price tag  provided at the time increased again last week to as much as $340 million.

At this time last year, HRT said the original $232 million price tag had jumped to $288 million.

Wood said continued cost escalation and the lack of information provided to board members  is  damaging .

“We have rarely had good regional cooperation on anything, but transit is one area where we can work well together,” he said. “When there’s a loss of confidence in your paid staff of a regional organization …  that damages regional cooperation.”

A study is under way for expanding light rail into Virginia Beach. The Chesapeake City Council voted last month to pursue a similar study. Portsmouth is looking at light rail as well.

 Despite the recent problems, some board members praised Townes for his leadership in launching the light-rail project.

“He’s done a stellar job in coming up with the federal funding to make this project fly, but we just don’t have the confidence he’s the guy to manage the project,” Uhrin said.

West said: “He’s been a great leader and has done a lot of things for HRT.

“The whole future of light rail becomes bigger than what’s in the best interest of Mr. Townes,” said West, who initially opposed dismissing Townes. “There were overruns. It was on his watch. He needs to be responsible for them.”

Norfolk Councilman Paul Riddick was critical of Townes when the new numbers first came out  but has since stood behind him.

“If I were Michael, I would not resign,” he said. “If you feel like you’re right and don’t have anything to hide, you just let the chips fall where they may. You don’t cave in when you know you’re right.”

The state and federal government will fund about $27 million of the latest  $52  million in overruns. HRT officials hope to find funding for the rest, but if they can’t, Norfolk  taxpayers will be on the hook.

That brings the federal share of the $340 million project to $174.2 million and the state share to $87.1 million. The city’s contribution had been set for $53.7 million, but could rise to cover the remaining $25 million.

Pilot writer Harry Minium contributed to this report.

Debbie Messina, (757) 446-2588, debbie.messina@pilotonline.com