The day before Election Day, Badger Democracy reported on the train maker Talgo filing a lawsuit against Governor Scott Walker, DOT Secretary Mark Gottlieb, and the state for “default of contract.” In brief:
Train manufacturer Talgo filed a “Default of Contract” suit against Governor Scott Walker and Wisconsin DOT Secretary Mark Gottlieb in Dane County Circuit Court today. Court documents filed today show that the Washington-based train manufacturer notified the state on April 4, 2012 that the “trainsets” were ready for required service testing to be conducted by WisDOT.
The state has attempted to claim that Talgo is responsible for testing, but the contract makes clear that WisDOT bears that responsibility.
The trainsets in question were not ordered for the controversial rail expansion to Madison. These trains are for use on the highly traveled Milwaukee to Chicago “Hiawatha” line. Coming on the heels of the WEDC/HUD block grant fiasco, DOT Secretary Gottlieb quickly issued a statement on November 5 to Badger Democracy, in full damage control mode:
“The Department of Transportation participated in a formal mediation process with Talgo just last week in a good faith effort to resolve disputes related to the delivery of completed trainsets. We are disappointed that process was not successful.
Talgo has failed to complete or test the trainsets and they do not meet even basic federal standards, such as those required under the Americans with Disabilities Act (ADA).The department will defend against this action and continue to act in the best interests of Wisconsin taxpayers.” (emphasis added)
All parties acknowledge and accept that 49 CFR 238.111 provides that the Operator (or railroad, as the case may be) not the Contractor is responsible for performing a pre-revenue service acceptance testing plan. Contractor will diligently work with Department and such Operator to ensure that the Operator’s pre-revenue service acceptance testing plan is efficiently implemented.
The state purchased two passenger car train sets in 2009 from Talgo, a Spanish train manufacturer.
A total of $68.9 million in passenger rail development bonds has been approved for the purchase of the rail cars ($48.5 million), as well as other costs related to construction management, purchase of maintenance equipment, and a temporary maintenance facility.
The train sets are now nearing completion, and are scheduled to be delivered to the state for initial testing in mid-March. Following testing, the cars would be ready for use on the Milwaukee to Chicago service, likely in late 2012.
Under that agreement, the state is responsible for providing a facility for the maintenance and for making payments to Talgo for
ongoing maintenance costs. [In anticipation of the completion of the Talgo cars, 2011 Act 32 provided $4,450,000 SEG in 2011-12 and $6,700,000 SEG in 2012-13 in the Department's passenger rail service appropriation for start-up maintenance costs.]
According to the LFB memo, maintenance costs were an issue of significance. Alternative solutions were offered, including a renegotiation of the maintenance agreement:
ALTERNATIVES
1. Approve the Department’s request for the approval of $2,500,000 in passenger rail development bonding for final design engineering for a permanent maintenance facility for the
State’s passenger rail cars.2. Deny the request.
3. Deny the request and direct the Department to reimburse any expenditures for the maintenance facility preliminary engineering that were made with bonds from the Department’s SEG appropriation for passenger rail service, to the extent that unencumbered funds are available in that appropriation.
4. Deny the request for additional funding and direct the Department to attempt to renegotiate the maintenance agreement with Talgo to reduce ongoing maintenance costs and, if feasible, the cost of the permanent maintenance facility. Direct the Department, in any subsequent request for funding for maintenance-related services, to report to the Committee on
the status of these negotiations.
Walker, Vos, and Darling all knew exactly what this contract entailed. They wanted to kill any new rail development as payback to their transportation construction political cronies, so they did nothing – even though it would cost taxpayers millions above and beyond the cost of honoring the contract. Vos and Darling were very vocal about how they were “saving taxpayers money” in a May 2012 edition of the Conservative-Digest.
Unfortunately, they failed to tell the whole story about the Talgo contract, and the specific issues surrounding the inevitable trainset replacement costs. You can read the entire LFB memo linked above. The LFB estimates do not include extra costs associated with continuing to use Amtrak maintenance – so the Vos/Darling article is conveniently leaving out key details. The last few lines of their joint article are the most important:
Luckily, the state has options. According to
the Legislative Fiscal Bureau, if no funds were
given for the Talgo maintenance facility, the
“agreement can be terminated by either party.”
So that’s where we are now.Wisconsin taxpayers were taken for a ride by
Doyle and the Democrats. We’re proud to say
that the ride is coming to an end.
Not quite Governor Walker, Representative Vos, and Senator Darling. When Talgo wins this lawsuit, Wisconsin taxpayers will be the ones paying back the $50 million in revenue to replace the bond issue – as you will have lost the capital purchased by those bonds.
And the trains – they will still have to be replaced in just a few short years anyway. In essence, we will end up paying for them twice. Though, after defaulting on the Talgo contract, will anyone do business with Wisconsin? Maybe we’ll be able to ride Chinese trains from Milwaukee to Chicago.
Lost loans at WEDC, federal block grant money distributed without authority, contract breaches, lost capital from bond issue, former aides convicted…
This is acting “…in the best interests of the taxpayers of Wisconsin…?”
And here we go again in Wisconsin…of idiots and ideologues
Is there a better processional for the parade of idiots and ideologues in the 2013 Legislative Session? The People who were here long before Wisconsin became a state were led by visionaries that understood the motivation of a white man corrupt with power.
A Mining Bill is poised to pass out of both committees this week, on the fast track to a swift vote within weeks. A bill which would mean devastation to one of the world’s great supplies of freshwater. Water which means life not only to an indigenous people, but those who have since settled and call the Bad River watershed and Lake Superior Basin home. But damn the torpedoes, science, and those inconvenient geological facts…full speed ahead Mr. and Ms. Chairman/Woman, we have (paying) corporate constituents to serve.
The only hope for defeat of this bill lies in the Republican-controlled Senate, and the possibility that four of its members still listen to a little voice most of us hear as a conscience. Dale Schultz, Mike Ellis, Robert Cowles, and Luther Olsen may be the only sane Republicans left in this biennial assemblage of insanity we still call a “Legislature.” This writer holds out hope that the smokescreen of empty jobs promises is wearing thin in a state moving closer to honorable entry into socio-economic “Dixie”…and further away from its progressive roots.
Has there been a time in our state’s recent history which more closely resembles oligarchy than democracy? The unholy triumvirate of Walker, Fitzgerald, and Vos…let’s face it, in 2010 Jeff Fitzgerald was nothing but a figurehead. Vos is, and has been pulling the strings all along. I digress. This triumvirate has the state government in lockdown, controlling the message in and out, controlling debate, the media, and god forbid anyone should sing in the Capitol. Every moment of every day is a campaign. Public policy is built on a campaign strategy, and supported by money. Lots of it. If you are on the right (literally) side, the money pool is almost unlimited. If you are on the wrong side…well, money doesn’t follow losers. And no money, no access.
Even the Capitol press corps is being kept on a short leash, with passes and access being strictly controlled by the powerful few. Say the wrong thing, write the story the wrong way, come across as the least bit partisan (read – report what we tell you to), and no access for you. End of story, end of job as a Capitol correspondent. This sort of power concentration is rare in Wisconsin. Scott Walker has power, and he is using it.
Walker is raising unprecedented amounts of money, and spending a lot of it on his legal defense fund. Let’s all be honest here…something stinks about the way Walker has campaigned, raised money, and conducted his business in and out of office. His administration is loaded with insiders, fixers, and power mongers. No interest in governing, just power and money. Crooks, liars, sharks. The smart money is that there is something illegal here…but that same money doubts the political will of a Milwaukee County DA to take on the Walker machine. But the Feds? Reminds me of something…
Richard Nixon in 1972. Re-elected, destroying McGovern in a landslide. Everyone knew, but few said it, that Richard Milhous Nixon was a crook. The media knew – but sat on the story until after the election. Once there was blood in the water, the media went in for the kill. Before Watergate, Nixon was untouchable, and had concentrated more power than almost any other president in history. The scary part is, once the scab was ripped off, no one knew how bad the wound was, or how long it would take to heal. Maybe it never has…and maybe we failed to learn the lessons of too much power in the hands of a man like Nixon…or Scott Walker. And so here we go again…in Wisconsin.
There is some light, in this dark time of plutocracy. There are voices rising above the din, who don’t rely on a Capitol press pass. We are getting one back tomorrow. John “Sly” Sylvester is back on the air Monday, February 4th from 3 – 6:30 pm. Sly will be on one of the last remaining locally owned and independent stations in the entire country – 93.7FM WEKZ. He’ll now have a three state reach – Wisconsin, Illinois, and Iowa. Sly will also be contributing to the good fight against Democrats who are mere posers in our neighboring states – like Rahm “NAFTA, TIF King, Kill Public Schools” Emanuel, and Pat “screw the pension fund” Quinn. Station link to listen live here.
I’ll be listening. Why? Because in this time of incredible propaganda, Sly is honest about what he says and believes. He’ll question and confront both Republicans and Democrats who turn their back on Wisconsin working families. And that is important.
The new debate on economics and education will continue to demonize teachers and other public employees. It will perpetuate the myth of impending fiscal doom to preserve the wealth of those paying to spread that myth. Scott Walker will continue to do what Sitting Bull warned about in 1877: “They take their tithes from the poor and weak to support the rich and those who rule.” It is voices like Sly’s we need to call out the Walkers, Fitzes, Vos’ Emanuels, Ryans, and Johnsons of our time for what and who they are. Greedy, power-hungry, sharks and fixers who are out for blood. The life blood of Wisconsin – its people and resources in exchange for money and power.
A final quote before sign-off…a warning shot across the bow of our fragile democracy:
No, that was not from a Walker secret conversation with Robin Vos.
It was Dr. Paul Joseph Goebbels, 1935 propaganda pamphlet, quoted in Vol. I “Nazi Conspiracy and Aggression,” US Government Printing Office 1946
Vigilance. Always vigilance.
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Posted by Badger Democracy on February 3, 2013
http://bdgrdemocracy.wordpress.com/2013/02/03/and-here-we-go-again-in-wisconsin-of-idiots-and-ideologues/