Mayor moves his chief of staff to CTA as budget chief

Mayor Daley today demoted his chief of staff responsible for the parking meter lease deal, naming him the CTA's budget chief.

A month ago the Sun-Times' Michael Sneed was reporting rumors that Daley's chief of staff, Paul Volpe, would replace Richard Rodriguez as CTA president.

I'm just amused that now the CTA has to give this guy a job. I wonder if Daley at least made a courtesy call to Rodriguez about it before making the announcement.

Filed under: CTA in the news

Tags: CTA, Paul Volpe



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  • Does this mean CTA is going to try to lease the Red Line? Imagine the possibilities.

  • In reply to marthat3:

    Not as absurd as it may sound. The CTA entered into a 45-year leaseback agreement with a holding company in 1998 for the property, tracks and stations on the Green Line. (Other property, such as buses, has also been leased (the other company owns it, but CTA leases it back).

    However, as I understand it, the financial/tax incentives (in federal tax code??) for such a transaction no longer exist.

  • In reply to AlexanderRusso:

    It would be an Internal Revenue Code issue on how it interpreted the safe harbor leasing provision. That's probably beyond my ken at the moment. Something like the parking meter lease probably doesn't involve safe harbor, as the LLC is operating the meter concession (i.e. setting rates and actually collecting the quarters out of the meters).

    The real problem noted in Business Week was that most of those leases had AIG as a guarantor, and the people financing them had tried to call several CTA leases and a Metra lease on that basis. In that Daley said, after the Midway lease did not close and the bid deposit was forfeited, that there was no longer a market for them, I tend to believe that.

  • In reply to marthat3:

    I'm not sure why you said it that way Kevin, but Daley is responsible for the parking meter lease deal. His chief of staff is just the fall guy.

    Obviously this guy is not good with numbers, (or was told by Daley to ignore the stupidity of leasing public property) so why is he able to be the CTA budget chief? I don't know this guy well, but is he qualified? I doubt it...

  • In reply to chris:

    Other than the implication that Daley is dumping a payroller on a payroll on an agency that needs a new funding formula (i.e. more suburban taxes) according to yesterday's topic, this isn't of much importance to me, but how many Chiefs of Staff has Daley had in his 20 years? As much as 20? And, given the Sun-Times report that Huberman was 2 steps ahead of being disciplined for a contract matter at the 911 Center, but was beyond discipline because he "no longer works for the city," I wonder how many of the people being shuffled around, including through the CTA, are in the same situation.

  • In reply to jack:

    The article stated that he's had 12 chiefs of staff, but more recently each one has served for less and less time.

  • In reply to chris:

    I heard the same on WGN-TV news. However, they then said that Volpe was being "demoted." That would be a strange perception if the CTA were in fact an independent organization.

  • In reply to jack:

    But then our moderator used that term in his link to the S-T article, which first used "dumped" and then "demoted."

    However, when my father was laid off from Purex, he wasn't "demoted" to a steel mill. He actually had to get another job. Hence, the use of the term "demotion" does not fit, unless, as I mentioned, the CTA really isn't independent. Joe, can you clarify this?

  • In reply to marthat3:

    Quote from the article that gives me hope:

    "Orozco is a straight-talking, no-nonsense manager who is almost certain to tighten things up."

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