By: E. Eugene Webb PhD
Pinellas County, Florida - Brad Miller, PSTA CEOs' recent hasty return of Federal Grant funds misused to promote the GreenLight sales tax referendum has raised some serious questions.
In response to a series of Public Records Requests, the Suncoast Public Transit Authority supplied the following information:
In response to a series of Public Records Requests, the Suncoast Public Transit Authority supplied the following information:
First Public Records Request:
1. Please provide an
electronic copy of the PSTA Administration document requesting funds to
reimburse Homeland Security CARES program-
Community Awareness Results in
Everyone's Security $354,000.
2. Please provide an
electronic copy (PDF) of the check or wire transfer document or receipt
returning $354,000 to reimburse Homeland Security CARES program- Community
Awareness Results in Everyone's Security.
3. Please provide an
electronic copy of the PSTA Administration document or e-mail formally
approving funds to reimburse Homeland Security CARES program- Community Awareness
Results in Everyone's Security $354,000.
PSTA Response:
Rachael Garofalo
To Me
Aug 15 at 10:38 AM
To Me
Aug 15 at 10:38 AM
I emailed the files
yesterday. I’ve attached them again. Note: these are the only two
files responsive to your requests.
Thanks,
Rachael Garofalo,
Executive Assistant
Pinellas Suncoast Transit Authority
3201 Scherer Drive
St. Petersburg, FL 33716
Tel: 727-540-1806
Fax: 727-556-6506
Pinellas Suncoast Transit Authority
3201 Scherer Drive
St. Petersburg, FL 33716
Tel: 727-540-1806
Fax: 727-556-6506
What the Documents indicate:
On July 30, 2014 Marnie L. Maxwell prepared a Check
Request Form (For Travel Advances, Miscellaneous Expenses by Employees and
Payments to Vendors), for $345,090.67.
The Request was approved by PSTA CEO Brad Miller on the same day.
Note in the CHECK REQUESTED BY Section the entry is "IMMEDIATELY".
Note in the CHECK REQUESTED BY Section the entry is "IMMEDIATELY".
The PURPOSE FOR CHECK is stated as "Pay Back Grant
Funds for Grant # 2011-RA-TO-0090".
Pay Back Grant Funds is not a category listed on the Form.
Pay Back Grant Funds is not a category listed on the Form.
On July 30, 2014, PSTA Check Number 014004444 was
issued to Department of Homeland Security for $354,090.67.
There is no Response to the third Public Records Request:
Document or Board of Directors Action approving the Request or the Check to pay back Grant # 2011-RA-TO-0090".
Apparently there was no formal authorization for issuance of the $354,090.67 check.
Document or Board of Directors Action approving the Request or the Check to pay back Grant # 2011-RA-TO-0090".
Apparently there was no formal authorization for issuance of the $354,090.67 check.
A fourth Public Records Request was sent to PSTA:
Please provide a copy
of, or link to, the PSTA Charter Section, or PSTA Board approved Policy or
Procedure that supports the issuance of the unbudgeted $354,090.67 check from PSTA
funds to Homeland Security without approval by the PSTA Board.
PSTA Response:
Rachael Garofalo
To Me
Aug 19 at 8:56 AM
In response to your
request for the PSTA Charter Section, or PSTA Board approved Policy or
Procedure that supports the issuance of the unbudgeted $345,000 check from PSTA
funds to Homeland Security without approval by the PSTA Board, please see
response below from our General Counsel. Also below is a link to the
Board’s Rules & Regulations.
The reference to the $100,000 spending
limit, which is contained in Section 5.01 A of PSTA’s Rules and Regulations, is
a limitation on the CEO’s “procurement of commodities and/or services”.
The decision to pay back the grant funds was not a procurement of
commodities and/or services. The PSTA Board previously had approved the
procurement of the services that developed the ads in question.
This decision to return the grant funds was made pursuant to the CEO’s
authority to administer PSTA’s departments, offices and agencies under Section
3.02 of the Rules and Regulations, which is included in the Rules and
Regulations as well.
Note here that the PSTA General Counsel does not dispute the claim that there was no formal authorization for the refund check.
Comment:
Section 3.02 Powers and Duties of CEO is reproduced below. To see the full
Policy and Procedure Document please click the link above.
Section 3.02
Powers and Duties of CEO/ED –The powers and duties of the CEO/ED shall include
the following:
A. The CEO/ED may
employ such employees as may be necessary for the proper administration of the
duties and functions of PSTA, and may determine the qualifications of such
persons; however, the Board must approve the number of such positions and fix
the budget for the compensation for employees. When he/she deems it necessary
for the good of PSTA, he/she may demote, suspend or remove any PSTA employee or
appointed administrative officer under the CEO/ED ʹ s jurisdiction, except as
otherwise provided by law. Such action shall be in compliance with all applicable
rules and regulations of PSTA.
B. Direct and
supervise the administration of all departments, offices and agencies of PSTA
except as otherwise provided for herein.
C. Attend Board
meetings and shall have the right to take part in discussion but may not vote.
See that all laws, rules and -12- regulations and acts of the
Board which are subject to enforcement by the CEO/ED are faithfully executed.
D. Prepare and
submit the annual operating budget and capital improvement budget to the Board
of Directors.
E. Prepare and
submit an annual capital program and all applications for federal and state
grants.
F. Recommend
changes to the fare structure and recommend changes to PSTA ʹ s service.
G. Sign
contracts, deeds and other documents on behalf of PSTA pursuant to the
provisions of these Rules and Regulations or as authorized by the Board of
Directors.
H. Develop and keep current a policy manual
which shall set forth the policies adopted by the Board of Directors.
I. Provide such
administrative assistance to the Board in connection with their official
duties, and perform such other duties as are specified in these Rules and
Regulations or may be required by the Board.
J. The CEO/ED
shall designate a department director or other managerial employee who shall
exercise the powers and perform the duties of the CEO/ED during the CEO/ED ʹ s
temporary absence or disability. The CEO/ED shall notify the Board,
electronically, who he/she has designate
Comment:
There is no provision in this Section of the PSTA
Policy and Procedures for the CEO on his/her own without Board of Directors
authorization to cause any expenditure of unbudgeted funds.
Even in its broadest
interpretation there are no grounds for CEO Brad Miller to
"Immediately" issue a check without PSTA Board approval to Homeland Security to cover his
inappropriate and potentially illegal use of Federal Homeland Security funds.
The refund request should have been brought to the PSTA Board for a full discussion and action.
A fifth Public
Records Request was sent to PSTA on August 20, 2014:
1. Request for Copy of Transmittal Letter that accompanied the PSTA Check (# 01440444) to Pay Back Grant Funds for Grant # 2011-RA-TO-0090.
1. Request for Copy of Transmittal Letter that accompanied the PSTA Check (# 01440444) to Pay Back Grant Funds for Grant # 2011-RA-TO-0090.
2.
Any and all correspondence either regular mail, FAX or e-mail from or to Home
Land Security regarding the payback of Grant # 2011-RA-TO-0090.
3.
Copies of any agreements, releases, contract cancellations or other considerations
that are or were part of the Grant # 2011-RA-TO-0090 payback negotiation or
agreement.
4.
Contact Information including person or person(s) name, physical address,
e-mail address and direct telephone number for the Homeland Security person or
persons that negotiated or agreed to the Funds Pay Back for Grant #
2011-RA-TO-0090.
PSTA Response:
1.
Request for Copy of Transmittal Letter that accompanied the PSTA Check (#
01440444) to Pay Back Grant Funds for Grant # 2011-RA-TO-0090.
2. Any and all correspondence either regular
mail, FAX or e-mail from or to Home Land Security regarding the payback of
Grant # 2011-RA-TO-0090.
See PDF from PSTA files:
Comment:
The
Letter in the PDF above sets up the case for misuse of the FEMA funds. FEMA stated, "Through a review of the
advertisements purchased and publicly disseminated, FEMA has determined that
the advertisements purchased were not used in the manner in which PSTA
expressly described in its application." Further, Based on the information
summarized above, PSTA has violated the requirements of the 9/11 Act and the FY
11 Guidance that govern its grant agreement."
Miller approved the Grant along with the advertisement procurement and should have known the
ads were not proper.
Miller deliberately mislead the PSTA Board when brought the Homeland Security ad package to the Board for their approval.
His argument has been FEMA did not respond to requests for a review of the material, but the Grant clearly spells out FEMA's intention and Miller should have followed the Grant Guidelines.
Miller deliberately mislead the PSTA Board when brought the Homeland Security ad package to the Board for their approval.
His argument has been FEMA did not respond to requests for a review of the material, but the Grant clearly spells out FEMA's intention and Miller should have followed the Grant Guidelines.
However the most chilling
statement may be in the last paragraph:
"Please also note that even if the debt is paid in full, the United States does not waive its right to pursue any applicable civil or criminal remedies. In addition, the State will be held liable for penalties under the False Claims Act (Title 31 U.S. Code, Sections 3729 through 3733) or other applicable statutes and/or criminal penalties under Title 18 U.S. Code, Sections 286, 287, 1001, and 1002, or other applicable statutes for any knowingly false or frivolous statements, representations, or evidence made or provided. Unless prohibited by law or contract, the State will be refunded any amount paid or deducted from any Federal payments for the debt, if the debt is later waived or terminated."
"Please also note that even if the debt is paid in full, the United States does not waive its right to pursue any applicable civil or criminal remedies. In addition, the State will be held liable for penalties under the False Claims Act (Title 31 U.S. Code, Sections 3729 through 3733) or other applicable statutes and/or criminal penalties under Title 18 U.S. Code, Sections 286, 287, 1001, and 1002, or other applicable statutes for any knowingly false or frivolous statements, representations, or evidence made or provided. Unless prohibited by law or contract, the State will be refunded any amount paid or deducted from any Federal payments for the debt, if the debt is later waived or terminated."
These statements along with a desire to get this whole issue off the table are likely key
drivers in the decision to move "Immediately" to complete the grant
pay back.
3.
Copies of any agreements, releases, contract cancellations or other
considerations that are or were part of the Grant # 2011-RA-TO-0090 payback
negotiation or agreement.
PSTA
responded there are no Documents Available.
4.
Contact Information including person or person(s) name, physical address,
e-mail address and direct telephone number for the Homeland Security person or
persons that negotiated or agreed to the Funds Pay Back for Grant #
2011-RA-TO-0090:
PSTA Response:
Tamia Minor, Grant Program Analyst,Grant Programs
Directorate,Preparedness Grants Division. T: 202-786-9581, F: 202-786-9920,
Tamia.Minor@dhs.gov
Comment:
Apparently in their haste to sweep all of this under the rug as quickly as possible, PSTA sent the $354,090.67 Check to the wrong address. The e-mail exchange below was included the PSTA response:
Apparently in their haste to sweep all of this under the rug as quickly as possible, PSTA sent the $354,090.67 Check to the wrong address. The e-mail exchange below was included the PSTA response:
See
PDF PSTA Files
Comment:
There need to be some changes at PSTA and they need to be made quickly.
E-mail Doc at: dr.webb@verizon.net. Or send me a Facebook (Gene Webb) Friend request. Please comment below, and be sure to share on Facebook and Twitter.
Disclosures: Contributor to No Tax for Tracks.
It
remains unclear why Brad Miller is so intent on using his office and
the organization he is charged with overseeing as a political tool to get the
sales tax referendum approved. It becomes even more difficult to understand
when you consider the massive amount of private money assembled to support the
GreenLight Plan.
Why
take these unnecessary risks?
Miller's
continuing efforts to skirt the rules regarding PSTA political participation in
the sales tax referendum have seriously eroded the credibility of PSTA.
There
are a host of questions that need to be answered.
1.
Why the need to move so quickly on the refund?
2.
Did Brad Miller violate the PSTA Code of Ethics by issuing the Grant refund
Check without approval?
3
If he violated the Code of ethics should he be terminated?
4.
What role, if any did Board Chairman Ken Welch play in this matter?
5.
What role if any did Greenlight Yes have in the decision to quickly repay the
FEMA Grant?
6.
Can an after the fact approval by the Board of Directors legally fix the
problem?
7.
Can PSTA funds legally be used to indirectly pay for these Greenlight ads?
8.
Can Brad Miller be trusted to run PSTA in a legal and ethical manner?
9. Should
the Department of Transportation take another look at how PSTA is spending its
funds?
10.
Should the State Attorney General open a criminal investigation into Mr. Miller
and his conduct with state and federal funds?
The
PSTA Board of Directors must stop rubber stamping everything Miller and Welch
bring to the table, get some back bone and take some responsibility.
It
is time for a full blown independent investigation and audit of PSTA's,
leadership and financial dealings.
E-mail Doc at: dr.webb@verizon.net. Or send me a Facebook (Gene Webb) Friend request. Please comment below, and be sure to share on Facebook and Twitter.
Disclosures: Contributor to No Tax for Tracks.
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