Toll road privatization in Florida is paved with political connections
Agency's go-to guy may be its downfall
John Beck, lobbyist for the Expressway Authority, is at the center of its crisis.
September 25, 2006
By MICHAEL VAN SICKLER,
St. Petersburg Times
Copyright 2006
TAMPA - John Beck boasted credentials that went beyond transportation when a Hillsborough County toll road agency retained the Tallahassee attorney in 1999.
"Mr. Beck is a former General Counsel for the Florida Department of Transportation," the Tampa-Hillsborough Expressway Authority's minutes of a February 1999 meeting noted. "(He) was actively involved in Governor (Jeb) Bush's election and transition."
That last qualification underscored the importance politics and connections have played in Beck's stint as lobbyist and consultant to an agency now struggling to survive.
Some state lawmakers say recent allegations of improper bidding practices and questionable billings - some involving Beck - are the latest reasons to consider abolishing the Expressway Authority.
Such an outcome would short-circuit the growing clout Beck has at the agency. At the same time the agency is trying to expand its role in the Tampa Bay area with additional projects, Beck is helping to redefine what it means to build a road in Florida. The change could mean billions to private companies and more tolls for motorists.
Along with lobbying and planning projects, the Expressway Authority has decided that Beck, a stocky 59-year-old Vietnam veteran, should promote road privatization, a trend favored by many Republicans.
So Beck is advising the agency on how to launch a 3-mile toll road in New Tampa. It would be the first project in Florida in which a public agency hands over the construction, maintenance and operation of a toll road to a private company. If successful, it could be a blueprint for future projects.
Considered a pioneer in this new field of road privatization, Beck speaks at conferences and advises transportation groups throughout Florida about how to do it.
Beck did not return phone calls for this story.
The planning and building of the nation's roads are increasingly being driven by market ideologies like Beck's, said Tom Downs, president and CEO of the Eno Transportation Foundation, a nonpartisan think tank for transportation professionals in Washington, D.C.
"Transportation used to be an ideologically free zone," Downs said. "They used to say, there aren't any Democratic or Republican roads. But now, with privatization, that's no longer true. Roads have become partisan like everything else."
Texas is planning a $184-billion toll road project. Chicago is leasing its Skyway for $1.8-billion. Indiana is leasing its toll road system for $3.8-billion. And Virginia transportation officials plan to lease a toll road near Richmond for more than $500-million.
All these deals are between cash-starved public agencies and foreign corporations looking for investment opportunities.
In an age when gas tax revenue no longer covers the costs of road construction, governments are promoting these deals as a painless, tax-free way to operate and construct necessary roads.
"We're at the beginning of a major move toward the privatization of public infrastructure," said Richard Reinhard, a managing director at the Urban Land Institute.
But what's not clear are the guarantees, if any, that private companies taking over the roads won't hike the tolls charged to motorists, said Anne Canby, president of the Surface Transportation Policy Project, a nonprofit coalition of traffic experts, based in Washington, D.C.
"My sense is that this whole idea has gotten ahead without the public being brought along," Canby said.
These projects reflect a strong reluctance in both parties to tinker with gas taxes. An average of 18.4 cents a gallon, federal gas taxes pale in comparison to the $4 European countries typically levy per gallon, Downs said.
Privatization deals are quite complex and require a mastery of all the legal and technological details that can make many closing documents hundreds of pages long, Reinhard said. For those who can master them, it could mean millions.
Transportation officials in Florida say few here have the expertise to negotiate such a project. Many point to Beck, who served as the DOT's top lawyer in the early 1980s, as the exception.
"He's one of a handful of people in the state who has a firm understanding of this new phenomenon," said David Fierro, a former DOT official who interviewed Beck for an August article in Florida Transportation Monthly, an industry-supported publication he edits.
As legal adviser to a number of transportation boards across the state, Beck has touted his experience in privatization.
In a 2004 letter to transportation leaders, Beck said he had done work in Florida, Georgia and Texas regarding public-private partnerships.
"He just has a wealth of knowledge on the subject," said Sally Patrenos, the Florida Transportation Commission's executive director, who said Beck organized a workshop on privatization in Tampa last year.
But it's difficult to determine which companies are still Beck clients. In the state lobbyist registry, he lists his only client as the Expressway Authority. Yet Ralph Mervine, the agency's executive director, said Beck has other clients.
"I'm sure there are lots of other people paying him than just us," Mervine said.
The workshop Beck organized for the transportation commission included two officials with Parsons Transportation, a company that once employed Beck. Another company with representatives on the panel was Washington Group International, which Beck lobbied for in 2004 and 2005.
In addition, myriad ties link Beck to some companies vying to build the New Tampa toll road project he helped draft, including former clients.
None of this will matter if the Expressway Authority doesn't pull itself out of a crisis that could spell the end for the agency, created in 1964 to build toll roads in Hillsborough.
The latest controversy erupted last month when Bush's appointees to the Expressway Authority board rejected a committee's recommendation and fired attorney Steve Anderson, a Democrat.
The vote provoked a political dustup, especially after the Gray Robinson law firm, which has strong ties to Bush, won the contract. The ensuing scrutiny overwhelmed an agency accustomed to operating in obscurity. The spotlight's glare revealed a number of incidents, including a couple of ill-advised meetings with Gray Robinson representatives before the board vote. The governor ordered an investigation.
Taking a week to complete the investigation, Bush's general counsel, Raquel Rodriguez, found that no laws were violated. She concluded in a Sept. 8 report that when Beck met with two Gray Robinson lawyers in July, he didn't violate any laws or procedures. Rodriguez reached that conclusion partly because Beck said he met with attorneys from other competing firms, and therefore wasn't playing favorites. He explained those meetings were in August and he hadn't yet billed the agency for them.
When the Times inquired about the invoices last week, agency officials said Beck had yet to file the invoices showing those meetings.
Some of Beck's other billings have raised eyebrows. In June, he charged the Expressway Authority $175 for an hour's work. His invoice stated he spent the time writing the governor's office about an appointment of a board member. That member was board chairman Thomas Gibbs, whom Beck enthusiastically endorsed.
Beck has written other letters in support of board members. In 2003, he e-mailed Bush an endorsement of Kimberlee DeBosier, calling her a "loyal Republican." Bush ultimately replaced her with Alba Lopez-Isa, who had a raft of recommendations from GOP fundraising heavyweights Al Austin, Carlos Alfonso and former governor Bob Martinez.
In 2005, one of Beck's business partners, Cynthia Henderson, vouched for former Sen. Jim Hargrett. Although a Democrat, Hargrett endorsed Bush for governor in 1998. Henderson noted that Hargrett was a "very strong member of the board." Henderson herself has ties to Bush, having served as a top official in his administration.
Already, there are signs the state's investigations are limiting what Beck can do. Hargrett wrote Mervine an Aug. 30 e-mail about stopping a proposed bill that could abolish the Expressway Authority.
"I suggest that the Authority get Beck started early, along with yourself, visiting our local delegation members to explain why this is a bad idea," Hargrett wrote.
Yet as of last week, Beck still hadn't been brought in to lobby for the agency on that issue, Mervine said.
"He's been told to hang tight until further notice," Mervine said.
While Beck wouldn't return phone calls, his attorney, Brant Hargrove, said Beck is being unfairly tainted.
"He's handling it well, but anytime you see yourself being portrayed improperly, it's disturbing," Hargrove said. "I know he didn't do a darn thing wrong."
Times researcher John Martin contributed to this report.
[Last modified September 25, 2006, 06:47:26]
© 2006 St. Petersburg Times: www.sptimes.com
John Beck, lobbyist for the Expressway Authority, is at the center of its crisis.
September 25, 2006
By MICHAEL VAN SICKLER,
St. Petersburg Times
Copyright 2006
TAMPA - John Beck boasted credentials that went beyond transportation when a Hillsborough County toll road agency retained the Tallahassee attorney in 1999.
"Mr. Beck is a former General Counsel for the Florida Department of Transportation," the Tampa-Hillsborough Expressway Authority's minutes of a February 1999 meeting noted. "(He) was actively involved in Governor (Jeb) Bush's election and transition."
That last qualification underscored the importance politics and connections have played in Beck's stint as lobbyist and consultant to an agency now struggling to survive.
Some state lawmakers say recent allegations of improper bidding practices and questionable billings - some involving Beck - are the latest reasons to consider abolishing the Expressway Authority.
Such an outcome would short-circuit the growing clout Beck has at the agency. At the same time the agency is trying to expand its role in the Tampa Bay area with additional projects, Beck is helping to redefine what it means to build a road in Florida. The change could mean billions to private companies and more tolls for motorists.
Along with lobbying and planning projects, the Expressway Authority has decided that Beck, a stocky 59-year-old Vietnam veteran, should promote road privatization, a trend favored by many Republicans.
So Beck is advising the agency on how to launch a 3-mile toll road in New Tampa. It would be the first project in Florida in which a public agency hands over the construction, maintenance and operation of a toll road to a private company. If successful, it could be a blueprint for future projects.
Considered a pioneer in this new field of road privatization, Beck speaks at conferences and advises transportation groups throughout Florida about how to do it.
Beck did not return phone calls for this story.
The planning and building of the nation's roads are increasingly being driven by market ideologies like Beck's, said Tom Downs, president and CEO of the Eno Transportation Foundation, a nonpartisan think tank for transportation professionals in Washington, D.C.
"Transportation used to be an ideologically free zone," Downs said. "They used to say, there aren't any Democratic or Republican roads. But now, with privatization, that's no longer true. Roads have become partisan like everything else."
Texas is planning a $184-billion toll road project. Chicago is leasing its Skyway for $1.8-billion. Indiana is leasing its toll road system for $3.8-billion. And Virginia transportation officials plan to lease a toll road near Richmond for more than $500-million.
All these deals are between cash-starved public agencies and foreign corporations looking for investment opportunities.
In an age when gas tax revenue no longer covers the costs of road construction, governments are promoting these deals as a painless, tax-free way to operate and construct necessary roads.
"We're at the beginning of a major move toward the privatization of public infrastructure," said Richard Reinhard, a managing director at the Urban Land Institute.
But what's not clear are the guarantees, if any, that private companies taking over the roads won't hike the tolls charged to motorists, said Anne Canby, president of the Surface Transportation Policy Project, a nonprofit coalition of traffic experts, based in Washington, D.C.
"My sense is that this whole idea has gotten ahead without the public being brought along," Canby said.
These projects reflect a strong reluctance in both parties to tinker with gas taxes. An average of 18.4 cents a gallon, federal gas taxes pale in comparison to the $4 European countries typically levy per gallon, Downs said.
Privatization deals are quite complex and require a mastery of all the legal and technological details that can make many closing documents hundreds of pages long, Reinhard said. For those who can master them, it could mean millions.
Transportation officials in Florida say few here have the expertise to negotiate such a project. Many point to Beck, who served as the DOT's top lawyer in the early 1980s, as the exception.
"He's one of a handful of people in the state who has a firm understanding of this new phenomenon," said David Fierro, a former DOT official who interviewed Beck for an August article in Florida Transportation Monthly, an industry-supported publication he edits.
As legal adviser to a number of transportation boards across the state, Beck has touted his experience in privatization.
In a 2004 letter to transportation leaders, Beck said he had done work in Florida, Georgia and Texas regarding public-private partnerships.
"He just has a wealth of knowledge on the subject," said Sally Patrenos, the Florida Transportation Commission's executive director, who said Beck organized a workshop on privatization in Tampa last year.
But it's difficult to determine which companies are still Beck clients. In the state lobbyist registry, he lists his only client as the Expressway Authority. Yet Ralph Mervine, the agency's executive director, said Beck has other clients.
"I'm sure there are lots of other people paying him than just us," Mervine said.
The workshop Beck organized for the transportation commission included two officials with Parsons Transportation, a company that once employed Beck. Another company with representatives on the panel was Washington Group International, which Beck lobbied for in 2004 and 2005.
In addition, myriad ties link Beck to some companies vying to build the New Tampa toll road project he helped draft, including former clients.
None of this will matter if the Expressway Authority doesn't pull itself out of a crisis that could spell the end for the agency, created in 1964 to build toll roads in Hillsborough.
The latest controversy erupted last month when Bush's appointees to the Expressway Authority board rejected a committee's recommendation and fired attorney Steve Anderson, a Democrat.
The vote provoked a political dustup, especially after the Gray Robinson law firm, which has strong ties to Bush, won the contract. The ensuing scrutiny overwhelmed an agency accustomed to operating in obscurity. The spotlight's glare revealed a number of incidents, including a couple of ill-advised meetings with Gray Robinson representatives before the board vote. The governor ordered an investigation.
Taking a week to complete the investigation, Bush's general counsel, Raquel Rodriguez, found that no laws were violated. She concluded in a Sept. 8 report that when Beck met with two Gray Robinson lawyers in July, he didn't violate any laws or procedures. Rodriguez reached that conclusion partly because Beck said he met with attorneys from other competing firms, and therefore wasn't playing favorites. He explained those meetings were in August and he hadn't yet billed the agency for them.
When the Times inquired about the invoices last week, agency officials said Beck had yet to file the invoices showing those meetings.
Some of Beck's other billings have raised eyebrows. In June, he charged the Expressway Authority $175 for an hour's work. His invoice stated he spent the time writing the governor's office about an appointment of a board member. That member was board chairman Thomas Gibbs, whom Beck enthusiastically endorsed.
Beck has written other letters in support of board members. In 2003, he e-mailed Bush an endorsement of Kimberlee DeBosier, calling her a "loyal Republican." Bush ultimately replaced her with Alba Lopez-Isa, who had a raft of recommendations from GOP fundraising heavyweights Al Austin, Carlos Alfonso and former governor Bob Martinez.
In 2005, one of Beck's business partners, Cynthia Henderson, vouched for former Sen. Jim Hargrett. Although a Democrat, Hargrett endorsed Bush for governor in 1998. Henderson noted that Hargrett was a "very strong member of the board." Henderson herself has ties to Bush, having served as a top official in his administration.
Already, there are signs the state's investigations are limiting what Beck can do. Hargrett wrote Mervine an Aug. 30 e-mail about stopping a proposed bill that could abolish the Expressway Authority.
"I suggest that the Authority get Beck started early, along with yourself, visiting our local delegation members to explain why this is a bad idea," Hargrett wrote.
Yet as of last week, Beck still hadn't been brought in to lobby for the agency on that issue, Mervine said.
"He's been told to hang tight until further notice," Mervine said.
While Beck wouldn't return phone calls, his attorney, Brant Hargrove, said Beck is being unfairly tainted.
"He's handling it well, but anytime you see yourself being portrayed improperly, it's disturbing," Hargrove said. "I know he didn't do a darn thing wrong."
Times researcher John Martin contributed to this report.
[Last modified September 25, 2006, 06:47:26]
© 2006 St. Petersburg Times:
posted by Porkus Maximus Tex: at Monday, September 25, 2006
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