TRANSPORTATION CHAIR’S MISTRESS LANDS MULTI MILLION DOLLAR TOLL ROAD CONTRACTS.

THE MOST WANTED LOBBYIST IN THE STATE OF TEXAS HAS UNIQUE INFLUENCE WITH THE HOUSE TRANSPORTATION CHAIR MIKE KRUSEE.

For years, the married republican State Rep. Mike Krusee, the chair of the House Transportation committee, and lobbyist Melinda Wheatley’s have had an intimate relationship.

A reliable inside source confirms today that Krusee and Wheatley are still “an item” and that Wheatley is now lobbying at one of Austin's most influential lobby firms, HillCo Partners, under the guise of a “public relations specialist” (so she can try and side-step filing more legally required lobbyist reports).

According to reports, HillCo’s J. McCartt, a former aide to Gov. Perry, has paid for many of Krusee’s travel bills. McCartt’s clients included TTC contractor Fluor Corp., Texas toll road investor Goldman Sachs (who plays all angles of tolling and selling our freeways) and the scandalous PBS&J—an engineering firm that has worked on several Texas toll road projects. McCartt flew Krusee to Washington in 2005 to address a conference on public-private partnerships. McCartt also flew Krusee to Las Vegas to deliver the keynote address at a PBS&J toll summit a week after the 2005 regular session ended.

About ten (10) months ago, I filed a formal “sworn complaint” with the Texas Ethics Commission (TEC) on Melinda Wheatley’s failure to file legally required lobbying reports for many months and years.

I fully expected Wheatley to pay off her chronically delinquent TEC fines soon after I filed the complaint. But she did not.

KRUSEE'S MISTRESS WHEATLEY IS THE MOST WANTED LOBBYIST IN TEXAS TODAY!

Shockingly, after 10 months, the brazen Wheatley has NOT paid any of the past delinquent fines with the TEC. Not only that, but according to the TEC’s own website, she is the most wanted lobbyist in the state of Texas today! Maybe that should not be a surprise.

AG’S OFFICE SUED WHEATLEY. WHEATLEY REFUSES TO PAY DEFAULT JUDGMENT AFTER 7 YEARS.

In 1999, the Attorney General’s office sued Melinda Wheatley for failing to pay yet another TEC delinquent account from the 1990’s. The Bankruptcy and Collections division of the AG’s office won a Travis County Court judgment that includes attorney’s fees and court costs. Wheatley has refused to pay the default judgment as well as the 10% annual interest that continues to mount each year. The AG’s office tells me a personal lien is also in place but Wheatley has not reported any ownership of property in the past seven years.

The formal complaint I filed 10 months ago was finally presented to the TEC on April 13th, 2007. The complaint has yet to be resolved or dismissed and a TEC attorney says the hearing could take place soon.

HISTORY OF KRUSEE AND WHEATLEY

Melinda Wheatley and Rep. Mike Krusee began working together on education issues in the late 90’s. In 2003 Krusee became the Chair of the House Transportation Committee after former chair Joe Pickett refused to go along with the unaccountable transportation legislation Gov. Perry wanted pushed. That same year, records show Wheatley began to lobby on Transportation issues.

Over the years, the Wheatley (12/6/1967) has kept many of the details of who she works for, and how much she gets paid, a secret.

WHEATLEY’S UNIQUE INFLUENCE WITH KRUSEE EQUALS MULTI MILLION DOLLAR CONTRACTS FOR HER TOLL ROAD CLIENTS.

Limited state records show Wheatley earned between $70k and $150k in the first two months 2005. Wheatley listed TransCore, Texas Council of Engineering Companies, Outdoor Advertising Association of Texas and City of Austin as her transportation clients.

TransCore, one of Wheatley’s many transportation clients received a multimillion dollar contract with TxDOT in Sept. 2005. The contract for eGo Plus RFID tags, branded locally as TxTag, is for 2 million tags over two years.

Another transportation client of Wheatley, the Texas Council of Engineering Companies (TCEC) included URS, HNTB, PBS&J & Carter & Burgess, Inc. All of which have received numerous multimillion dollar toll contracts.

WHEATLEY GETS NO BID CONTRACT FROM TOLL AUTHORITY

Comptroller Strayhorn’s investigative report on the freeway tolling authority shows Wheatley’s Informative Efforts, LLC, now defunct, was given a NO BID contract (see app. #5) for freeway toll road work. It was Mike Krusee’s legislation that created the freeway tolling authority.

Wheatley ignored Texas law and additional conflicts of interests when she failed to list J.P. Morgan as one of her clients in 2004. The Comptroller’s Report states:

“Informative Efforts: The principals of this public relations firm are Cathy Howell and Melinda Wheatley, who are subcontractors for Nancy Ledbetter Associates, which in turn contracts with HNTB. Their relationship with the transportation industry may represent a potential conflict of interest. Informative Efforts had a consulting arrangement with JP Morgan Securities Inc., a CTRMA contractor, and was paid a retainer fee of $7,000 per month plus expenses. The Austin office of JP Morgan Securities indicated that Informative Efforts performed lobbying work and that it was a short-term contract terminated around March 2004. Melinda Wheatley was Informative Efforts’ primary contact with JP Morgan Securities. Wheatley was listed on the 2004 Texas Ethics Commission lobby list for only one client, TransCore, a sponsor of Team Texas. This company provides services and products that enable toll authorities to manage transactions using toll tags. As such, TransCore is a potential CTRMA contractor.”

How has J.P. Morgan been fairing in Krusee’s Toll Road Deals?

In 2005 the CTRMA invested $284 million in a J.P. Morgan Money Market. J.P. Morgan Securities is also part of the Cintra Trans Texas Corridor Team.

Up to $1 billion dollars of TxDOT Fund 6 bonds is controlled by J.P. Morgan Securities, which acts as the senior manager for the initial issuance. Fund 6 revenue bonds are backed by state highway revenues and anticipated federal transportation appropriations.

By refusing to file lobbyist reports, what are Wheatley (and Krusee) hiding?

What kind of partnership does Melinda Wheatley have with Mike Krusee?

Should Mike Krusee and Melinda Wheatley be investigated by the District Attorney?

Should the press ignore the fact that the House Transportation Chair’s mistress, the most wanted lobbyist in the State of Texas, has landed multi-million dollar contracts?

UPDATE AS OF 5/16/07....

TOLL ROAD LOBBY THREATENS TEXAS BLOGGER WITH LAWSUIT

In a response to a Muckraker blog article I published on 5/9/07 (see below), Hillco Partners, one of the most powerful lobby firms in Texas sent a letter to threaten me with a lawsuit. I see this threat letter as a deliberate attempt to squelch my freedom of speech by HillCo, who are connected with Rep. Mike Krusee, Gov. Rick Perry and other toll road profiteers PBS&J, Goldman Sachs and Fluor.

HILLCO PARTNERS LAWSUIT THREAT LETTER
Download and read the threat letter by clicking orange headline.

The censorship letter refers to the blog article called “TRANSPORTATION CHAIR’S MISTRESS LANDS MULTI MILLION DOLLAR TOLL ROAD CONTRACTS” (see below). It’s about Melinda Wheatley, the most wanted lobbyist in the state of Texas and her unique influence with married State Rep. Mike Krusee.

Interestingly, the HillCo Partners letter targets only one paragraph of the blog article:

“A reliable inside source confirms today that Krusee and Wheatley are still “an item” and that Wheatley is now lobbying at one of Austin's most influential lobby firms, HillCo Partners, under the guise of a “public relations specialist” (so she can try and sidestep filing more legally required lobbyist reports).”

The HillCo letter, from Attorney J. Hapton Skelton of the Law offices of Skelton and Moody, says:

“This statement is false in every respect.”

After we exchanged emails, I now wonder if HillCo is suggesting that my reliable source didn’t give me such information. Or, perhaps HillCo thinks my contact of two years is just an imaginary friend?

Since I received the original threat letter, I spoke with my contact again to confirm. My inside source tells me that she was told first hand that Wheatley did “work for HillCo”. Perhaps that could mean HillCo Partners, or a sister company called HillCo Media. I don’t know.

I don’t know anything more about Wheatley working with or not working with either HillCo company. What I do know is that my source has proven to be reliable - time after time.

My source also told me that they would not be surprised if Krusee and/or Wheatley complained to HillCo Partners to do something to shut me up, perhaps send a letter from an attorney.

The lawsuit threat letter does NOT deny anything else in the article. It does not deny that HillCo Partner’s J. McCartt has paid for many of Krusee’s travel bills. Nor does the letter deny that McCartt’s clients included TTC contractor Fluor Corp., Texas toll road investor Goldman Sachs (who plays all angles of tolling and selling our freeways) and the scandalous PBS&J, an engineering firm that has worked on several Texas toll road projects.

MORE ABOUT HILLCO

Aside from the numerous connections I lay out in the original article (see below) HillCo’s J. McCartt was the treasurer of a the political action committee that pushed for an amendment to finance highway construction through the Gov. Perry’s Texas Mobility Fund in 2001. One of the first pieces of the puzzle to steal and toll our freeways.

A Texas Observer report says this of HillCo Partner’s power:

“...HillCo Partners stands apart. It has an influence and reach—stretching from the statehouse to the state Supreme Court—that almost gives it the status of a shadow government.”

THREAT LETTERS TO CENSOR BLOGGERS

Special interests have been known to send threat letters to bloggers to squelch our free speech.

It’s happened to me twice in two years. State Rep. Dawnna Dukes (whose unpopular freeway toll vote came the morning after her sisters contract was signed with the tolling authority) and Everett Owen (a “No Bid” Contractor with the tolling authority) both threatened to sue as a way to shut me up. Both times, my attorney told me they were both full of shit, that they were trying to shut me up. I called their bluff, and no lawsuits were filed.

Stay tuned.

The Revolving Door - Professional White Collar Looting

The revolving door, an important tool used for looting from taxpayers, continues to turn for the special interests.

Some folks know about the bigger stories, like how Texas Gov. Perry's transportation advisor, former lobbyist Dan Shelley, was rehired by contract winner Cintra last summer. But there are many hundreds more that take place each year, under the radar, within all areas of our government, especially in the lucrative area of roads and tolls (like PBS&J, Cintra, Macquarie and URS to name a few). TxDOT is a out of control bureaucratic organization that creates traffic congestion - with an unending appetite for revenue.

The problem becomes clear, when it pays too well for public officials to support wildly unpopular road and land grabs.

San Antonio Express reports key (so called) public transportation people in Dallas and Houston moving to the private sector for the pay-off. Including North Texas Tollway Authority Director Allan Rutter resigned Wednesday after a closed-door board meeting. Harris County Judge Robert Eckels announced he will step down.

Just months ago, San Antonio Metropolitan Planning Organization Director, Toller Joanne Walsh, moved to Parsons Brinckerhoff. And, Alamo Regional Mobility Authority director Tom Griebel is now a vice president with Pape-Dawson Engineers.

And, when the individual enters from the corporate side to "represent the public" it's an issue as well.

URS REVOLVING DOOR

Yesterday, Fort Worth Star-Telegram reports a former URS executive, Cinde Weatherby Gilliland, was hired as regional transportation coordinator for Forth Worth and in that capacity, Gilliland “will represent the city's interests in a slew of high-dollar projects”.

What do we know about URS?

URS, has one of the most disturbing records of inflating traffic forecasts, which allows doomed toll roads schemes to be built. The taxpayer always foots the bill, while the profiteers profit.

URS has produced inaccurate forecasts for nearly a half-dozen toll road projects in Florida. In some cases, the roads drew only half the cars URS predicted. One of those, the Suncoast Parkway, was projected to make $70 million; in tolls in its first year of operation, and it produced only $7 million.

Forbes, in 9/3/01, offered the following scathing statement:

"It has become painfully clear to bondholders and politicians that many of the public toll-supported projects built in the past decade, the majority blessed by URS and its ilk, have become financial albatrosses."

Standard and Poor's bond analysts, after reviewing forecasting case studies for years, have concluded:

"Optimism bias remains a consistent feature of toll road traffic forecasting."

City of Austin Councilperson Brewster McCracken's 'Independent Toll Study’, which was hijacked by tollers, hired URS. The study was completed months ago, and has proven to be a complete waste of $300,000. In Central Texas, Sen. Watson’s Toll Task force will have the same fate, if he continues to not allow the public a seat at the table.

BOONDOGGLE OF TEXAS PROPORTIONS

Many would agree that one of the worst boondoggles in Texas history was the Camino Colombia toll road, which was promised to be a 'generator of regional economic activity'. Gov. Perry's TxDOT, who are now pushing the Trans Texas Corridor land grab and freeway tolls, also praised support for the Camino Colombia.

URS forecasted the traffic revenue for Camino Colombia at $9 million for the first year - but it only produced $500k. That is about 6% of the URS forecast!

Camino Colombia was quickly sold auction style on the steps of the Webb County Courthouse in 2004, with TxDOT in attendance. John Hancock Financial Services Inc. bought back its investment for $12 million at that auction. TxDOT then paid John Hancock a premium of $20 million, $8 million more than was needed.

Taxpayers keep paying for corrupt failures, while our "leaders" pretend to be working for the public best interest. They continue to profit - and use the revolving door to work both sides of the table - to continue the fleecing of the taxpayer.

Toll Road Study Hires Traffic Forecaster with Fractured Crystal Ball.

I think URS might stand for "UnReliable Special people"

Councilman Brewster McCracken's 'Independent Study' of Austin's 2.2 billion toll road plan is causing many people grave concern.

The study was unanimously approved by the Austin City Council. A March 3, 2005 city resolution promised "the study is not to be delayed". Ten months have passed and the process is just getting started. People for Efficient Transportation pushed for and publicly supported the idea of an independent study, until recently.

The tollers have hijacked the study and now the tolling authority has been allowed to hire a contractor with a long history of inflated revenue projections to push fiscally irresponsible toll projects. They are stacking the deck. I believe a TRUE Independent Study is crucial, because the Austin toll plan will break new ground by privatizing and tolling most of our public expressways. With the possible additional cost of thousands of dollars a year for the average family -- the affordability of our great city is at stake.

Traditional toll roads have been brand new roads utilized as a means of raising money to pay for a whole new road. In Austin, the plan calls for tolling existing public highways to generate money for more toll roads.

With traditional toll roads, the public has a choice between the toll road and a public expressway. In contrast, Austin's 'freeway tolls' permanently take the option of a free expressways away from drivers. Austin's freeway tolls are created with primarily gas tax dollars, and politicians have stated publicly that 'the toll booths will never be removed.

The steering committee created by Brewster McCracken, who himself voted twice for the toll plan, includes Rep. Mike Krusee, Rep. Mark Strama, Commissioner Gerald Daugherty, Toll Authority's Bob Bennett, Toll Authority's Johanna Zmud, TxDOT's Bob Daigh, Austin Councilwoman Betty Dunkerly, Round Rock Councilman Joe Clifford, Wilco Commissioner Frankie Limmer and Hays County Judge Jim Powers.

That pro-toll committee will give a company called CRA direction to perform the study.

Earlier this month, McCracken's pro-toll committee allowed the tolling authority to hire URS to supply the fundamental traffic forecast numbers.

URS, has one of the most disturbing records of inflating traffic forecasts, in the industry.

URS has produced inaccurate forecasts for nearly a half-dozen toll road projects in Florida. In some cases, the roads drew only half the cars URS predicted. One of those, the Suncoast Parkway, was projected to make $70 million; instead, it produced just $14 million. URS predicted that the Parkway would take in $70 million in tolls in its first year of operation, and it produced only $7 million - a tenth of the projection. URS predicted the Osceola would bring in around $9.4 million in tolls every year. It Instead, brought in less than $6 million annually and could end up going $1 billion or more over its original $150 million budget.

Forbes, in 9/3/01, offered the following scathing statement,

"It has become painfully clear to bondholders and politicians that many of the public toll-supported projects built in the past decade, the majority blessed by URS and its ilk, have become financial albatrosses."

Standard and Poor's bond analysts, after reviewing forecasting case studies for years, have concluded

"Optimism bias remains a consistent feature of toll road traffic forecasting."

Many would agree that one of the worst boondoggles in Texas history was the Camino Colombia toll road. Camino Colombia was promised by politicians to be a 'generator of regional economic activity'.

Records show, that Governor Rick Perry's appointed board that governs TxDOT, the same group that are now pushing freeway tolls, also pushed for the Camino Colombia toll road fiasco.

URS forecasted the traffic revenue for Camino Colombia at $9 million for the first year - but it only produced $500k. That is about 6% of the URS forecast! Camino Colombia was sold auction style on the steps of the Webb County Courthouse in January 2004, with TxDOT in attendance. John Hancock Financial Services Inc. bought back its investment for $12 million at that auction. TxDOT then paid John Hancock a premium of $20 million for Camino Colombia.

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