CapMetro pres and CEO stepping down

AUSTIN (KXAN) - Capital Metro President and CEO Fred Gilliam announced he is taking early retirement from the transit agency's top job.

Gilliam, 67, will retire Oct. 16th.

He leaves at a tough financial time for the agency, with sales taxes dwindling, and a commuter train project that could end up two years behind schedule.

Gilliam started as president in 2002 and has been overseeing the MetroRail project, and has battled through tough negotiations with the bus workers' union.

He leaves after 48 years of managing public and private transit systems.

"It's a financial decision for me," Gilliam said. "Would I have retired, had I not had this window of opportunity? No."

Gilliam said he's proud of the work he's done to improve bus service reliability.  He denied whether he's stepping down because of the failure of MetroRail to start on time.

"The system will be up and running," he said. "I assure you that."

Gilliam's base salary is just more than $193-thousand dollars. Since 2004, he's been guaranteed a 5-percent raise every year. 

On top of that, Gilliam is also guaranteed longevity pay that increases $3,500 each year.  This year it would be an additional $24,340.

He is also eligible for a performance bonus of up to $30,000 with board approval. CapMetro gives him with about $17,000 as a car allowance and he's guaranteed 30 vacation days per year.

When he renewed his contract in 2004, Capital Metro gave him a $25,000 signing bonus.

But changes to his employment agreement in 2006 puts him in a position to retire with full benefits.

Even though worked for Capital Metro for 8 years, he will draw retirement pay as though he were a 35 year veteran CapMetro employee.

CapMetro has been under the scope recently for its delayed MetroRail line, now slated for a possible 2010 start date.

The newest Capital Metro board member, Chris Riley, said Tuesday he and other community members are frustrated with the rail line's progress.

Monday, Capital Metro pushed the opening of the MetroRail Commuter train until the first quarter of the year 2010, citing new software programming that has to be done.

The modifications are expected to cost between $750,000 and $1 million.

The board, except for Riley, voted to officially adopt the budget for next year. The budget includes $2.6 million of Federal stimulus money that would shore up CapMetro’s operating budget.

One of Capital Metro’s strategic goals is to double ridership by 2025, but next year's budget reduces the hours of service by 5 percent.

The new budget passed with four votes. Chris Riley was the sole “no” vote. Meanwhile, board members Mike Martinez and Johnny Trevino were absent.