Ousted Kansas City transit leader will receive double severance pay. KCATA won’t say why

Ousted Kansas City transit leader will receive double severance pay. KCATA won’t say why

The board for the taxpayer-financed KCATA was only obligated to pay Robbie Makinen one year of pay under the terms of his employment agreement.
August 1, 2022

By Mike Hendricks, Kansas City Star

The non-elected governing board of the Kansas City Area Transportation Authority agreed to pay CEO and president Robbie Makinen $600,000 in exchange for his resignation last week.

The amount represents two years’ salary, health benefits and other compensation, according to the separation agreement that The Star obtained through an open records request.

The board for the taxpayer-financed KCATA was only obligated to pay him one year of pay under the terms of his employment agreement. The board gave no reason for his forced resignation and did not explain why they agreed to pay a higher amount.

Both parties agreed not to disparage the other, and Makinen agreed not to disclose terms of the agreement. Under the Missouri Sunshine Law, however, the KCATA was obligated to provide a copy to members of the public who asked to see it.

Makinen, who is blind and 58, also agreed not to sue the board on the basis of disability, age or any other reason.

More than half of the total payout of $599,408, minus taxes, will be paid in October. The rest will be paid in 2023. Makinen’s resignation is effective Oct. 25. Until then, he will remain on paid leave, as he has been since the end of June, at his current rate of pay, which is $108 an hour, according to the separation agreement.

The board asked for Makinen’s resignation after Kansas City Manager Brian Platt issued an ultimatum: find a replacement for Makinen or the city would find an alternative bus service provider.

The KCATA provides transit service to Kansas City and other local jurisdictions on a contract basis. Two sales taxes fund Kansas City’s bus service.

City officials have increasingly complained about the timeliness and dependability of bus service provided by the KCATA since it began rebuilding service after the coronavirus pandemic.

Early this year, Makinen’s relations with city officials turned sour after he resisted their ultimately successful attempt to force the transportation authority to hand over more than $20 million in transit funds to pay for the installation of new LED street lights.

While the separation agreement gives no hint as to whether other issues might have led to Makinen’s ouster, it states that he and the board “have divergent views and that it would be in their best and mutual interests to part ways in an amicable manner....”

Five of the board’s 10 members represent communities in Missouri and five represent Kansas. They voted unanimously to accept Makinen’s resignation.

In a news release, the board praised his accomplishments as CEO since 2016 and for his nearly decade-long tenure on the KCATA board, where he was chairman for nearly five years.

In July, the American Public Transportation Association honored the KCATA with its Outstanding Public Transportation System Achievement Award for its commitment to making public transit more accessible and “groundbreaking initiatives,” most notably the zero-fare policy that Makinen convinced Kansas City and others to adopt.

The separation agreement includes a clause that allows Makinen to appear on stage at the conference in Seattle when the award is presented Oct. 11. However, he must travel there at his own expense and must agree “the other KCATA personnel will speak on behalf of the KCATA during the conference.”

An interim CEO and president has not been named while the transportation authority board searches for Makinen’s permanent replacement.

©2022 The Kansas City Star

Visit kansascity.com

Distributed by Tribune Content Agency, LLC.

Sign up for Transit Intelligence

News and commentary in public transportation, and the latest job postings and solicitations.

Daily News Briefing