Call issued for Norfolk inquiry into inflated light-rail costs

NORFOLK

City Councilman Andy Protogyrou wants the city to conduct its own investigation into how the light-rail project ran up $106 million in cost overruns.

The investigation is necessary to help restore the public's trust and confidence in Norfolk's leadership, he said.

Protogyrou distributed a two-page memo in which he detailed his request to the rest of City Council on Tuesday. His request comes about a week after a state audit indicated that Hampton Roads Transit officials, who are overseeing construction of the project, knowingly misled federal, state and city officials about light-rail costs.

The audit also indicated that some top city officials were aware of escalating costs and did not immediately divulge them to taxpayers and all of Norfolk's elected leaders.

Protogyrou acknowledged that federal and state officials probably will conduct their own investigations. But he said a city inquiry, independent of the city manager's office, is still necessary. He wants City Auditor John Sanderlin, who reports directly to the council, to conduct the investigation.

"Our own investigation must occur so that it can never happen again," Protogyrou wrote. "We must establish a renewed sense of public trust through a sincere examination of the city's conduct."

Protogyrou said Sanderlin should examine all communications between city officials and HRT and interview city employees and council members. He wants Sanderlin to tell the council how the city might have done a better job of monitoring costs and communicating with the public.

Protogyrou said a portion of the audit indicated that light rail was $9 million over budget before the city signed an agreement to fund light rail. "I can't say mistakes were made," he said. "But after reading the audit, I do have concerns.

"I want John Sanderlin to tell us where our processes worked and where they didn't."

Light rail, originally budgeted at $232 million, will now cost an estimated $338 million. HRT is constructing the 7.4-mile project with a combination of federal, state and local funds.

Mayor Paul Fraim said he talked about light-rail cost overruns with Peter M. Rogoff, head of the Federal Transit Administration in Washington, on Monday.

"We discussed the need for the federal inspector general to conduct a review of the whole matter," he said. "I am all for providing the public with as much truthful information as possible."

Fraim said he plans to speak with Protogyrou and the rest of the council before committing to a city investigation. The council 's next scheduled meeting is Jan. 11.

Councilwoman Angelia Williams declined to comment, saying she hadn't yet read Protogyrou's memo. Councilman Barclay C. Winn, a member of the HRT board, said he's not sure another investigation is necessary.

"I think the federal and state government will give it a pretty thorough level of scrutiny," Winn said.

"I'm all about getting to the bottom of it," he added, but said he is not sure the auditor is the right person to do it.

Vice Mayor Anthony L. Burfoot said he hadn't reviewed Protogyrou's request but wants the focus to remain on HRT "and the deception that took place there."

"We have a new city manager coming to Norfolk," he said of Marcus Jones, the budget director for the city of Richmond who will start in February. "We need to focus on getting this train back on track, and by that, I mean the city government."

City Manager Regina V.K. Williams, who will step down from her position in January, also released a letter Tuesday strongly defending her role in light rail and blaming HRT for failing to tell the city about light-rail cost overruns.

Williams said the city was diligent in monitoring HRT, twice asking independent consultants "to verify the information we were receiving" about construction costs.

"But always we are dependent on the good faith of our partners and the soundness of the information they provide," she wrote.

Williams called The Virginian-Pilot's reporting of her role in withholding information about light rail from the council and the public "jaundiced."

"I typically rise above the Pilot's zeal to mak e rather than accurately report the news," Williams wrote. "But when the personal integrity and professional conduct of myself and my staff are attacked without substantiation, I must challenge the assertion with facts."

"It is not appropriate to cast aspersions on the character of public officials without any evidence of wrongdoing," she also wrote.

The newspaper reported in stories published on

Dec. 15 and 17 that the state's audit of light rail indicated that Williams and other officials knew about cost overruns and did not immediately provide that information to the council and public. The audit quoted from e-mails and other evidence obtained by the state through the Freedom of Information Act.

Williams did not directly address the allegations made in the state audit. But she wrote: "Never did the City Administration shy away from or fail to disclose information we had determined to be reasonably credible."

Harry Minium, (757) 446-2371, harry.minium@pilotonline.com

Regina Williams' open letter