big dig

The law suit against diversion of Turnpike (I-90) monies to the untolled Big Dig (I-93) in Boston by wellknown class action lawyer Jan Schlichtmann has been rebuffed again in the courts. An appeal against an earlier ruling for the Turnpike by county superior court judge Herman Smith was this week upheld by an appeals court which characterized Smith's ruling as "a thorough opinion."

Saying the plaintiffs look unlikely to prevail on the merits of their case a judge in Massachusetts has denied them an injunction against the Massachusetts Turnpike Authority.

The law suit joined by some 2300 Turnpike users and organized by class action lawyer Jan Schlichmann claims that use of Turnpike toll revenues to maintain and service the debt of the untolled Big Dig project makes such tolls into taxes, which are therefore, the suit claims, illegal and unconstitutional.

Mass Turnpike CEO Jeffrey Mullan has written that the state Treasurer Timothy Cahill committed "several basic inaccuracies" in comments he made suggesting a settlement of the class action lawsuit led by Jan Schlichtmann. The suit claims use of Turnpike tolls to support the untolled Big Dig are illegal unconstitutional and unfair. It seeks refunds and an end to the practice of using tolls for untolled roads.

The Massachusetts treasurer Timothy Cahill has written a letter to the state Governor and the state Attorney-General in which he says the state should settle with litigants suing the Turnpike for refund of $400m in tolls on the grounds that they were unconstitutionally used for untolled sections of the Big Dig.  The letter was leaked to the press today.

Not addressing the merits of the case BUT...

Two of six employees of Aggregate Industries NE have pled guilty in US District Court in Boston to being part of a conspiracy to rip off the Massachusetts Turnpike Authority by sending bad concrete to the Big Dig project. The six were indicted on US charges in 2006.

The Massachusetts Turnpike Authority in its protracted bargaining with the state today (2008-06-24) postponed a scheduled meeting on toll rates to Monday (2008-06-29). The Turnpike has voted to raise tolls by about 60% July 1, but board members say they'll cancel the hikes if they get $100m/year in support from the state budget. That $100m/year subsidy must continue for the term of $2200m of bonds they floated to pay for the untolled Big Dig.

Leading Big Dig building contractor Modern Continental pled guilty in US Court in Boston today to 40 out of 50 charges of fraud, making false statements, and other misconduct in connection with shoddy work that led to a fatal ceiling collapse and water leaks in tunnels.

Massachusetts attorney-general Martha Coakley has announced settlements that should end litigation over the July 2006 collapse of the ceiling of the Massachusetts Turnpike's Big Dig I-90 tunnel.

Alan LeBovidge executive director of the Massachusetts Turnpike gave a colorful description of his current job. He told the Waltham MA Daily News Tribune newspaper in an interview: "I tell people I feel like the guy walking behind some big elephant with a shovel, hearing people say, 'What the hell is that guy doing?"'

Modern Continental Construction (Modern) and their insurance companies Travelers and Firemans Fund have reached a settlement on behalf of the Mass Pike of $21m for the fatal ceiling collapse of July 10 2006 and other claims. Modern has to extend their $2b performance bonds for another six years and will pay any costs above set thresholds.

The announcement was made by the Massachusetts Attorney General Martha Coakley.

Massachusetts Turnpike CEO Alan LeBovidge says there is "no way the Mass Pike can handle the costs" imposed on it by the untolled Big Dig. And apparently reflecting on the Patrick administration and the state legislature he says he sees "no appetite" for putting tolls on it.

These comments are published this morning in an interview with transport reporter Casey Ross in the Boston Globe:

Another Big Dig contractor has been fined for fraud in Boston. McCourt Construction in a guilty plea was fined $500k and ordered to pay restitution to the Massachusetts Turnpike Authority of $600k for overbilling. Their scam was billing labor hours at higher rates than workers were paid for nearly four years of work on the project 2002 to 2005.

Massachusetts Turnpike chief executive Alan LeBovidge said today the Turnpike has not been bailed out by the state. The term "bailout" has been widely used in reports there to characterize moves to have the state stand behind about $800m of Turnpike debt. LeBovidge told us today: "There hasn't been any bailout." He called the guarantees of Turnpike debt "assistance" by the state to reduce the Turnpike's financing costs.

The Boston Mob are really losing it. It's revealed in a US grand jury indictment announced today that they took a sting in which 'Mike' an FBI undercover officer posed in late 2006 as a "Massachusetts Highway Department inspector" who would take a cut on a contract for 300k yards of dirt for the Big Dig in return for steering the contract their way.

Who says crime doesn't pay. Michael P Lewis, 46, the Massachusetts Turnpike's Big Dig manager through serial scandals, multi-billion dollar cost overruns, shoddy construction, and a fatal ceiling collapse, 2000 to 2007 - the biggest public works management fiasco in America in modern times - the manager of this megamess is now on a Turnpike pension for life of $72,578 plus 80% health insurance, the Boston Globe reports.

The US Department of Justice and the Massachusetts Attorney General have announced a settlement in which joint venture project managers Bechtel/Parsons Brinckerhoff (B/PB) will pay $407m (Bechtel at least $352m, PB at least $47m) for negligence at the Big Dig project of the Massachusetts Turnpike Authority. 24 other companies that did shoddy engineering work as section designers will pay $51m in a related 'global settlement' of federal and state claims.

The Massachusetts Turnpike CEO Alan LeBovidge says the Turnpike has inherited a "megaproject riddled with problems" and calls project manager Bechtel/Parsons Brinkerhoff's past characterization of the leak problems "questionable," according to the Boston Globe this morning.

High Occupancy Vehicle lanes (HOVLs - pron hovels) in the Big Dig tunnels in Boston costing around $250m are largely unused two years after opening, the Boston Globe reports. They counted 181 vehicles in a recent peak hour northbound and only 112 southbound. The Turnpike's traffic counts show between 59 and 167 vehicles/hour are using the lanes through a broader survey period.

Mary Connaughton of the Massachusetts Turnpike Board is calling for new managers of the Big Dig project. She says that Michael Lewis the longtime Turnpike manager for the Big Dig has provided misleading information in recent reports on leaks and other problems in the project.

Powers Fasteners Inc, the Brewster NY based supplier of epoxy for ceiling anchors in the Massachusetts Turnpike's Big Dig tunnels has been indicted on a charge of manslaughter. Massachusetts attourney-general Martha Coakley announced the charge today. A Suffolk County grand jury has issued the indictment.