Public Belt Railroad chief 'acted recklessly and inappropriately,' mayor says

Jim Bridger resignation was 'the right decision,' Mitch Landrieu says

Jim Bridger, the New Orleans Public Belt Railroad chief who was suspended without pay last month amid investigations into his free-wheeling spending habits, resigned late Monday in a one-page letter to Mayor Mitch Landrieu.

Bridger quit 10 days after Landrieu, who as mayor is president of the Public Belt board, told the state legislative auditor that he intended to ask Bridger to resign, along with the entire board of commissioners at the quasi-city agency. The auditor is among those looking into the railroad.

So far, there's no indication any board member has quit.

Bridger had been the top administrator at the Public Belt since 2001. His annual salary was $350,000.

In his resignation letter, Bridger offered a laundry list of accomplishments during his tenure, including "an unsurpassed safety record," "earning net income of over $40 million," "investing over $30 million in the rebuilding of the Public Belt's main line," and "spending over $10 million on the support buildings and grounds along Tchoupitoulas (Street) after Katrina to support our city during its 'rebirth.'"

"In conclusion, I am leaving the Public Belt Railroad in the best condition it has been in for decades," Bridger wrote.

In a written statement Tuesday, Landrieu called Bridger's resignation "the right decision."

"I have been extremely troubled by what I have learned from the Legislative Auditor's report on the operations and management of the Public Belt Railroad," the mayor said, referring to a draft. Assistant Legislative Auditor Dan Daigle said his agency aims to release its final version Sept. 27.

"Mr. Bridger acted recklessly and inappropriately in disregarding the public's trust and best interest," Landrieu said.

"Particularly disturbing is the use of public assets including rail cars for personal and private use; the personal use of public credit cards, vehicles and fuel cards; purchases that violated the public bid laws; professional service procurement practices that violate the City Charter; and the inappropriate use of public e-mails and computer systems."

Landrieu also released a letter he sent Sept. 3 to Legislative Auditor Daryl Purpera in which he said he would call for "the immediate resignation of General Manager Jim Bridger and the full board of commissioners of the New Orleans Public Belt Railroad."
Landrieu told Purpera he intends to ask the Legislature to "reform the governance of the NOPB," noting that "it is unheard-of to have 16-year terms for a public body."

Landrieu plans a news conference at 2:30 p.m. today.

The mayor has kept the railroad at arm's length since taking office in May, opting not to attend meetings until the state auditor delivers his review.

Bridger couldn't be reached for comment Tuesday. He has said he ran the Public Belt in line with corporate standards and in full view of the board, but also agreed to implement strict austerity measures, including the revocation of credit cards and take-home cars. The board unanimously approved the changes last month.

News reports this summer revealed that Bridger had spent more than more than $108,000 between 2007 and 2009 on his agency credit card and invested $2 million in public money to sumptuously outfit a pair of vintage train cars used to host VIPs and charity events.

Commissioners on Aug. 26 suspended Bridger for 60 days beginning Sept. 1, pending the completion of the auditor's probe.

Despite Landrieu's threat to clear the board, two key members said Tuesday they hadn't been asked to step down. The Landrieu administration did not respond to a question on the matter.

James Baldwin, the president pro tempore of the board who led the push to suspend Bridger, said Tuesday morning that Landrieu "has not requested my resignation."

Baldwin said that if Landrieu makes the request, he "would talk to (the mayor) before doing anything, because I want to make sure he takes the right steps moving forward to build a better railroad."

Troy Henry, a commissioner who ran a distant second to Landrieu in this year's mayoral contest, said he has not been asked to resign, either. Henry voted against suspending Bridger, arguing the board should have waited for the auditor's review before taking any disciplinary action.

Baldwin said the commission on Tuesday was set to submit its formal response to the auditor's 32-page report, which he described as "hard-hitting and impactful."

The commission's 10-page response will be augmented by individual responses from at least two commissioners who are "specifically named" in the report, Baldwin said, though he would not identify them or describe the circumstances of their inclusion.

The offices of Orleans Parish District Attorney Leon Cannizzaro and Inspector General Edouard Quatrevaux also have opened inquiries into the operations of the Public Belt, a century-old state-chartered agency that oversees 25 miles of track stretching across the Huey P. Long Bridge, through the Port of New Orleans and on to eastern New Orleans.

Financed by user fees, the agency receives no tax revenue but operates tax-free.

In Bridger's absence, Chief Financial Officer John Morrow has been serving as general manager.

At its August meeting, Morrow reported that the Public Belt remained on pace to net more than $1 million this year, though revenues were below expectations. Income had increased since lagging severely in the early months of 2010, he said, adding that the railroad was counting on FEMA money for hurricane damages to cover the difference.

The board's next scheduled meeting is Sept. 23.

Michelle Krupa can be reached at mkrupa@timespicayune.com or 504.826.3312.