LOS ANGELES —The Transportation Corridor Agencies boards voted Thursday to accept the resignation of Neil Peterson, chief executive officer of two Orange County, Calif. toll roads.
Peterson was placed on leave two weeks ago after board members learned he was signing contracts without full board approval.
Under the settlement agreement governing his resignation, he will remain on leave through June 5 when his resignation becomes effective. Peterson will receive $78,845 in compensation and benefits. He was paid close to $250,000 annually.
Peterson, who was just named CEO last June, was placed on leave two weeks ago following a dust-up involving the approval of contracts by Peterson and one of TCA's board chairs, Lisa Bartlett.
TCA's chief engineer, Mike Kraman, has been appointed acting CEO. Kraman has over 30 years experience in the planning, design and management of major civil and transportation engineering projects, according to TCA officials.
"Michael Kraman was chosen because he is a proven leader and has been successful in overseeing complicated projects," Bartlett said.
Kraman has also "proven to be committed to TCA's goals and ensuring that they are accomplished in a financially responsible manner," she said.
The issues surrounding contracts that have led to Peterson's resignation arose during the CEO's performance evaluation in early mid-February.
Peterson and Bartlett were approving contracts over $25,000 without going before the entire board.
Peterson was adhering to a board policy adopted in 2008 that allowed TCA's chief executive and board chair to approve contracts over $25,000 for emergency legislative purposes without seeking full board approval.
The TCA staff runs two separate toll road agencies, the Foothill/Eastern Transportation Corridor Agency and the San Joaquin Hills Transportation Corridor Agency. Between them, they manage 51 miles of toll roads.
The contract exception only applied to Foothill/Eastern, not its sister agency. Bartlett, Dana Point's mayor, chairs the Foothill/Eastern board.
The exception came about because of the community backlash that resulted from plans to extend the Foothill/Eastern, according to TCA officials. The provision was inserted in 2008 to hire consultants without alerting the opposition to the hiring.
After Orange County Supervisor Todd Spitzer, who sits on both boards, criticized the policy at a public meeting, the board reversed it on Feb. 13, rescinding the ability of the chief executive and board chair to sign off on contracts above $25,000.
The board also voted at its Feb. 13 meeting to form an ad hoc committee to review TCA's contract policies and procedures, according to Lisa Telles, a spokeswoman.
Foothill/Eastern restructured its debt in December with a $2.3 billion refunding. The deal pushed final payoff of Foothill/Eastern's debt out 13 years to 2053.
