Houston Transit Chief Shuns Top Job at RTD

After weeks of being courted, Houston transit chief Alan F. Kiepper on Wednesday turned down an offer to take the helm of the troubled Southern California Rapid Transit District, citing the district’s continuing financial problems and political rivalry among Los Angeles County transportation agencies.

Kiepper’s withdrawal means RTD must now start over searching for a new leader. Three weeks ago, the other remaining finalist on a short list of candidates, Boston transit boss James O’Leary, notified the district’s executive recruitment firm that he was no longer interested in coming to Los Angeles.

For months, Kiepper had been the leading candidate to replace former General Manager John Dyer, who resigned in January after a maelstrom of controversy over alleged mismanagement. As the overseer of the relatively successful Altanta rail mass transit system and more recently the savior of the troubled Houston bus system, Kiepper had the support here of a broad and influential array of political, business and labor leaders.

But on Wednesday, Kiepper said he was discouraged by the RTD’s continuing financial problems, including millions of dollars of red ink in both this year’s and next year’s budgets. The fact that the RTD board has been unable to reach agreement on either fare hikes or budget cuts for several months is not a good sign, he said.

He also said he was concerned about the two-headed organization of transit agencies here, which has given rise to political warfare between the RTD and the Los Angeles County Transportation Commission.

“Basically, the conclusion I came to was that principal problems of the institutional setup . . . and the funding problems were problems that an appointed official could not effectively overcome,” Kiepper said in a telephone interview from Houston. “Those are major issues that have to be dealt with before a really quality system can be produced.”

Funds Inadequate

He said it appears that the RTD does not have adequate funds to meet its responsibilities and is making shortsighted decisions, such as deferring bus maintenance, to solve immediate financial problems.

“I told the (RTD) board that over half the buses on the streets of Los Angeles would not be allowed in service in Houston,” he said, referring to battered and graffiti-marred coaches.

Kiepper said salary terms offered by Los Angeles officials were acceptable and not a major issue. Kiepper’s Houston salary, which he is currently renegotiating, is $117,000 a year, but that does not include a lucrative package of deferred compensation and other benefits. Dyer made $119,000 a year.

Houston voters recently approved a major highway and rail construction program and Kiepper said that also figured in his decision.

RTD board member Marv Holen, an attorney who headed the negotiations with Kiepper, said there was disappointment among local officials at Kiepper’s decision.

But he added, “Nothing the man said is a surprise to anyone. . . . The district is so grossly overcommitted (for the funding available). All we are doing is robbing the future to keep service on the streets today.”

Holen said the board will begin looking for additional candidates, but it may be a matter of months before a selection can be made.