Alameda Corridor PROJECT  
Alameda Corridor jobs 21st century Transportation Equity Act
In 1991, Congress enacted the Intermodal Surface Transportation Efficiency Act (ISTEA), which established a new focus on regional planning and community involvement in the nation's transportation system. These principles were carried over into the mammoth $217 billion 1998 Transportation Equity Act of the 21st Century (TEA-21). Thanks to activism by community organizations, TEA-21 re-authorized processes that support regional planning and accountability, and added requirements meant to ensure public involvement and access to information in the transportation planning process.

Jobs Access and Reverse Commute Competitive Grant Program
As part of TEA-21, Congress created the Jobs Access Grant Program to supplement welfare-to-work transportation activities. Authorized for five years beginning with FY1999, and administered by the Federal Transit Administration, the program funds jobs access projects that provide transportation options to welfare recipients and other low- income people trying to get to jobs and job opportunities, as well as work-related support services like child care and job training. Details of Victories Federal Transportation Bill

inquiry
from
New Times Los Angeles Online Despite a long-standing promise to train and hire low-income people, officials of the $2.4-billion Alameda Corridor project revealed Thursday that they are falling far short of their goals to recruit workers from the cities along the route of the new rail link. The shortfalls prompted members of the Alameda Corridor Transportation Authority board to criticize the effectiveness of the project's hiring efforts and its $10-million program to provide job training to 1,000 underprivileged people over the next two years.

One of the authority's goals is for 30% of all work hours on the project to be performed by employees recruited from the nine cities along the corridor's route. Some of those cities contain the county's poorest neighborhoods. The project was 81 workers short of the mark at the end of last year. To fulfill another goal, 60 to 70 graduates of the agency's job training program should have been hired by the corridor's contractors as of December 1999, but only 11 were employed at that time.

"Something must be wrong if only 11 graduates are working for the project," Los Angeles County Supervisor Yvonne Brathwaite Burke said at the authority's board meeting Thursday. "There needs to be some real analysis done" of this effort. The Alameda Corridor is a 20-mile-long toll route for trains that is designed to improve the movement of cargo to and from the county's fast-growing ports. It is scheduled to be finished by the end of 2002.
Work on the new route is expected to create between 8,700 and 9,200 local jobs over the life of the project, or about 1,300 positions a year. As of December, about 600 people were on the job. The corridor's recruitment goals and educational opportunities have been of critical importance to residents and elected officials in such cities as Compton, South Gate and Lynwood, which have had unemployment rates as high as 30%.

Hiring and job training is overseen by the corridor authority, but it is administered and implemented by a team of construction firms headed by Tutor-Saliba Corp. of Sylmar. "We are behind at this point," said Larry Wiggs, community relations manager of the Tutor-Saliba consortium. "But 90% of the work remains to be done and we have another two years to attain our goals." Wiggs and corridor officials attributed the shortfalls to recruiting problems, high dropout rates and the placement of many program graduates in construction jobs unrelated to the corridor.
Although Los Angeles' port has allocated hundreds of millions of dollars for the corridor, statistics show that the hiring of Los Angeles residents fell short of the corridor's goal by 12%. "This is unacceptable," said authority board member and Los Angeles City Councilman Rudy Svorinich. "Why is my city lagging behind when Los Angeles is a major stakeholder in the corridor? We should be reaping the benefits of this project."

The former controller and chief financial officer for the $2-billion Alameda Corridor project said Tuesday that she committed an egregious error when she transferred $3 million in project funds into her personal bank account in February. "This is all from the simple click of a mouse," said Nancy Schafer, who was dismissed from her post at the Alameda Corridor Transportation Authority about a week after the transaction. "I don't know how much longer I will have to pay for this."
Although Schafer said she accepts responsibility for the mistake, she contends that other agency executives, who she says are charged with double-checking transfers of funds, may have failed to do their jobs. In one internal memo she provided to The Times, Schafer told agency officials Feb. 25 that the checks and balances designed to control project funds are meaningless if people don't use them. "Others might be negligent in their roles," she wrote.

Schafer, of Dana Point, was removed from the job March 1. The Los Angeles County district attorney's office and the corridor authority have been looking into the transaction to determine what happened. Last week, the Los Angeles city controller's office called for an independent audit committee to oversee corridor authority expenditures and contracts as the project heads into its most important phase. In an interview with The Times, Schafer, a financial consultant, detailed her version of the events that led to her sudden departure from a job she had held almost two years.
She was responsible for managing hundreds of millions of dollars in government funds and bond proceeds earmarked for the main portions of the project. Her salary was $83,762 annually. Major work is scheduled to begin soon on the most expensive element of the Alameda Corridor: a 10-mile concrete-lined trench that will contain two train tracks. Overall, the new rail and truck route will extend 20 miles from the county's ports to transcontinental freight yards near downtown Los Angeles.

Schafer said the mistake occurred during the first two transfers of proceeds from the corridor authority's sale of $1 billion in revenue bonds. About $3 million, she recalled, needed to be sent from a bond trust account to a corridor authority operating account, so contractors could be paid. Two transfer requisitions, which Schafer supplied to The Times, show that the paperwork was prepared Feb. 19. The documents were signed by Schafer and Tim Buresh, director of construction and engineering on the project.
The requisitions, however, bear Schafer's personal Bank of America account number, instead of that of the agency's operating account. Schafer said that before the requisitions were prepared, she had uploaded information from a Palm Pilot, a hand-held computer, into her regular computer at agency headquarters in Carson. Her Palm Pilot was supplied by the agency. The uploaded information, she said, happened to contain her bank account number, appointments and credit card numbers. She said she kept those personal items in her agency-owned Palm Pilot as a matter of convenience. Schafer said that Feb. 23, the day of the transfer, she called up what she thought were agency accounts on her office computer and mistakenly selected her bank account as the destination for the $3 million.
She said she did not recognize her own account number or realize that it could easily be confused with agency accounts because they too were at the Bank of America. "My bank data somehow got uploaded from my Palm Pilot," she said. "That is how it happened." Schafer said she did not consider her personal use of the Palm Pilot a breach of the agency's financial controls. "It was human error," she said. "Just a freak accident." According to Schafer, the transfer requisitions bearing her account number were sent to Buresh, corridor authority Treasurer James P. Preusch, the bond trustee and the agency's investment managers.

Although an agency manual contained the appropriate corridor account number for bank transaction, Schafer said, apparently no one checked the requisitions for accuracy before the transfer was made. "This is an example of how even the best system in the world can break down for a day," she said. "I did everything in accordance with our procedures."
Authority chief executive James C. Hankla's only comment on Schafer's remarks was: "Clearly, the controller has the primary responsibility." He said he could not discuss the situation further because it is a personnel matter. Sources told The Times last week that the Bank of America initiated steps to return the $3 million to the agency. But Schafer said she discovered the transfer during lunch an hour after the funds were moved. Schafer recalled that she was trying to balance her checkbook and called the bank for account information. "It said I had a balance of over $3 million in my account," she said. "I thought, 'Oh, my God. Did I do what I think I did?' "
Schafer said she immediately called the bank, contacted the corridor authority's top managers and arranged to have the money returned to the agency within hours. Although Schafer said she uncovered the problem, sources said again Tuesday that the bank had started to look into the transfer independently of Schafer. Schafer said she fully cooperated with an internal review of the transfer, offering her personal financial records for scrutiny.

There's cause for alarm whenever a goodly sum of public money--$3 million in this case--winds up in the personal bank account of the chief financial officer of a public agency. It's a bad situation whether the money was in that account for only a few hours or a few days. It doesn't matter that the entire sum was returned intact. It doesn't matter whether the mistake was found and corrected by the same public official. That's why Nancy Schafer, now the former controller and chief financial officer of the $2-billion Alameda Corridor project, was fired recently.
That was the correct response, but a few other things still need resolution. Times reporter Dan Weikel, for example, quoted inside sources who said that it was Schafer's bank that noticed the huge sum of money in her account and raised a warning flag. But Schafer and other Alameda Corridor Transportation Authority officials have said that it was Schafer who found her own mistake, notified her superiors and corrected the error. For the purposes of this argument, none of that matters.

Of more concern is this: Why in blazes was the CFO of one of the nation's biggest public works projects conducting such big-money business from a hand-held electronic organizer that also contained links to her private bank account? Under what checks and balances or chain of command was she able to move such sums on her own? Where were the internal backstops, the folks who say, "Excuse me, what did you just do?"
The Alameda Corridor is a high-speed rail transport route that will connect the bustling ports of Long Beach and Los Angeles to inland transcontinental railroad connections. It will be a vital upgrade to port operations and to the Southern California economy. But it's important for a symbolic reason as well. It's a chance to show that the region can tackle a major construction project and not bollix it. Corridor officials said that such transactions now require two authorizations and can be made only between project accounts. That's good, but Los Angeles City Controller Rick Tuttle's call for an audit is still worthwhile. It might point out other flaws before another seven-figure mistake is made.



Alameda Corridor JOBS COALITION

" … major hiring agreement with the
Alameda Corridor Transportation Authority. It guarantees that 30% of all hours worked by new hires will go to local community residents. & funding for 1,000 local residents to receive pre-apprentice construction training (650 slots) and non-construction management training (350 slots). "
" … one of the largest hiring agreements for low-income residents in US history. "
Transportation Equity Network 7th ¶   cf March 2000, 29th

"Central to the process, ACJC established the Training and Education Corporation (TEC),which will receive just over $1 million over the project's three-year-life. ACJC forged a partnership with the Carpenters Educational Training Institute and WINTER (Women in Non-Traditional Employment Roles) to provide construction training " Jan 1999

from AFL-CIO Working for America Institute

In February 2000, the Carpenters Educational and Technical Institute transferred their Alameda Corridor Construction Pre-Apprenticeship Training Program to Century Housing Corporation. Current program site in Lennox, as well as sites in the Downtown Industrial District, Century Villages at Cabrillo in Long Beach, and other locations along the Alameda Corridor.
Suataute Anoa'i, Manager, Equal Opportunity Development sanoai@centuryhousing.org AGREEMENT ( .pdf file ) between Alameda Corridor Transportation Authority & the Alameda Corridor Jobs Coalition

$15k Liberty Hill Seed Fund grant " to monitor implementation of hiring and training agreements won from the Alameda Corridor Transportation Authority that will employ local residents in high-skilled trade agreements. "

Playa Vista Emerging Business Pgm association. Pamela Hamby 323.777.0172

endorsement Coalition on Human Needs' Min. Wage Increase initiative


Benetta Johnson Organizer/Director
Alameda Corridor Jobs Coalition
1303 West 30th Place L.A. CA 90047
213-753-8980 fax 323/731-6602
4/22/97 Election Results
L.A. CHARTER COMMISSIONER DISTRICT 8
BENETTA JOHNSON6,07230.49%
MARGERITE ARCHIE-HUDSON 13,83869.50

They'll be Working on the Railroad
by Benetta Johnson & Winton Pitcoff
from Organize! Jul/Aug 1998, National Housing Institute newsletter
which cites

The Alameda Corridor Jobs Coalition Hits a Gold Mine !
organizing
Issue #8 April 1998 newsletter of Center for Community Change on jobs, transportation & welfare reform organizing. CCC published "Getting Good Jobs: An Organizer's Guide to Job Training" $5 focusing on the new Workforce Investment Act.
1000 Wisconsin Ave. NW, Washington, DC 20007


general
" A NATIONAL PRIORITY " :
"If Congress Reneges, More Than L.A. Will Suffer" J.Y. Thomas, commissioner, L.A. City Harbor Commission, L.A.Times 4/24/95

James Flanigan staff writer, L.A. Times 11/15/95 " It's being called the most important development of the next two decades for Southern California's economy. It promises to create 700,000 jobs and to generate billions of dollars in business development. Yet most people, if they've heard of it at all, are vague on just what the Alameda Corridor is.
It's a 20-mile enlargement of railroad tracks and truck lanes to speed freight from the ports of Los Angeles and Long Beach to the yards of the Southern Pacific, Union Pacific and Santa Fe railroads and from there out to the rest of the United States. The Alameda Corridor is a necessary adjunct to a dramatic increase of trade through the ports in the coming decades - from $116 billion worth of goods this year to $253 billion worth by 2010."

Failing, But Not Fooling, Public Housing Residents
Impact of Job Interventions
National Low Income Housing Coalition
1012 Fourteenth Street NW, Suite 610
Washington D.C. 20005 202.662.1530 fax 202.393.1973

10th ¶ " In L.A., the PRRAC research is being used by a broad-based Alameda Corridor Jobs Coalition to target the $2 billion rapid rail project administered by the Alameda Corridor Transportation Authority (ACTA). The Corridor extends 21 miles from downtown Long Beach to L.A. ACTA predicts creation of 10,000 construction-related jobs and "an additional 700,000 local jobs" through the year 2020. The expanding Alameda Corridor Jobs Coalition includes representatives from two public housing developments &

Negotiations are underway between this Coalition and the Department of Transportation, ACTA & private contractors. also Long Beach Legal Aid Foundation ( Toby Rothschild, exec. dir. 562.435.3501 x222 ), which "brought in the Employment Law Center of San Francisco & the Center for Community Change".

LONG BEACH -- City Councilman Jeffrey A. Kellogg, who is leaving office because of term limits, has stepped down as the chairman and the longest-serving board member of the Alameda Corridor Transportation Authority. The government agency is responsible for building a new 20-mile rail link between the county's fast-growing ports and transcontinental rail yards near downtown Los Angeles. The estimated cost of the project is $2.4 billion.
Kellogg, the only member of the governing board to have served since its inception in 1989, has been instrumental in the development of the Alameda Corridor into a full-scale construction project. Los Angeles City Councilman Rudy Svorinich Jr. will succeed Kellogg as board chairman.

Trip Planner All regional transportation agencies

DOUGLAS R. FAILING, District 7 division chief for project development
manages a staff of approximately 470 engineers, surveyors and technical support staff responsible for delivering $1.5 billion worth of transportation improvements in Los Angeles and Ventura counties. He represented Caltrans on the Alameda Corridor Transportation Authority Governing Board.
Burlington Northern Santa Fe Railway contact Mr. Dan Guillen, Asst Dir, Alameda Corridor Project
740 East Carnegie Drive San Bernardino, CA 92408-3571
909.386.4518 fax 909.386.4519
dsg516@aol.com



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