1 Capital Metro, Human Resources Department, "April 1998 Staffing Pattern" (Austin, Texas, May 15, 1998). (Spreadsheet.)

2 Capital Metro, "Capital Metro by Job Category, December 1997" and "StarTran, Inc. by Job Category, December 1997," Austin, Texas (Computer printouts.)

3 Interview with Pat Rowan, manager, Human Resources Department, Capital Metro, Austin, Texas, March 5, 1998.

4 Capital Metro Human Resources Department, "April 1998 Staffing Pattern," Austin, Texas, April 31, 1998.

5 Capital Metro, Capital Metropolitan Transportation Authority FY 1998 Budget (Austin, Texas, March 1998), p. 30.

6 Capital Metro, Capital Metropolitan Transportation Authority FY 1998 Budget, p. 25; and Capital Metro, Human Resources Department, "April 1998 Staffing Pattern" (Austin, Texas, May 15, 1998). (Spreadsheet.)

7 Interview with David Guzman, Maintenance supervisor, Operations Division, StarTran, Inc., Austin, Texas, March 30, 1998.

8 Interview with Rick Nañez, benefits coordinator, Capital Metro, Austin, Texas, March 30, 1998.

9 Memoranda from Rick Nañez, benefits coordinator, Capital Metro, to Nancy Riley, Payroll leader, and Suzanne Perez, accounts payable leader, Capital Metro, Austin, Texas, May 16, 1997; memoranda from Rob Rodriguez, former manager, Human Resources Department, to Nancy Riley, payroll leader, and Suzanne Perez, accounts payable leader, Capital Metro, Austin, Texas, May 16, 1997; memoranda from Rob Rodriguez, former manager, Human Resources Department, to Lanell Harrivel, staff accountant, Capital Metro, Austin, Texas, May 16, 1997; memorandum from Rob Rodriguez, former manager, Human Resources Department, to Nancy Riley, payroll leader, and Rosemary Nwankpa, staff accountant, Capital Metro, Austin, Texas, January 24, 1996; memorandum from Rob Rodriguez, former manager, Human Resources Department to Nancy Riley, payroll leader, and Rosemary Nwankpa, staff accountant, Capital Metro, Austin, Texas, April 23, 1996; memoranda from Rob Rodriguez , former manager, Human Resources to Nancy Riley, payroll leader, Suzanne Perez, staff accountant, and Rosemary Nwankpa, staff accountant, Capital Metro, Austin, Texas, July 10, 1996.

10 Interview with Rick Nañez, March 30, 1998.

11 Interview with Cynthia Hansen, retirement services specialist, Frost Bank, Austin, Texas, June 11, 1998; and interview with Rick Fielder, senior assistant administrator, Frost Bank, Austin, Texas, July 3, 1998.

12 Interview with Theresa Bond, retirement services specialist, Frost Bank, Austin, Texas, April 15, 1998.

13 Letter from Theresa Bond, retirement services specialist, Frost Bank, to Capital Metro, January 13, 1998.

14 Interview with Nancy Riley, Payroll leader, Capital Metro, Austin, Texas, April 2, 1998.

15 Memorandum from Theresa Bond, retirement services specialist, Frost Bank, to Rick Nañez, benefits coordinator, Capital Metro, Austin, Texas, May 1, 1996.

16 Interview with Rose Heard, former employee, Capital Metro, Austin, Texas, February 10, 1998.

17 Interview with Rick Nañez, benefits coordinator, Capital Metro, Austin, Texas, March 18, 1998.

18 Interview with Pat Rowan, manager, Human Resources Department, Capital Metro, Austin, Texas, March 27, 1998.

19 Interview with Rick Nañez, benefits coordinator, Capital Metro, Austin, Texas, June 18, 1998, and Tim Carlson, administrative assistant, Alliance Benefit Group of Houston, Inc., Houston, Texas, June 12, 1998.

20 TPR telephone survey of transit authorities, June 1998.

21 Interview with Javier Lopez, manager, Human Resources Department, Texas Comptroller of Public Accounts, June 15, 1998.

22 Interview with Rick Nañez, March 18, 1998.

23 Capital Metro, Information Support Systems for Effective Decision Making: Reengineering Capital Metro for the Information Age, by Center for Transportation Research, the University of Texas at Austin (Austin, Texas, October 1997). (Consultant's report.)

24 Interview with Gerald Robichaux, Sr., interim general manager, and Susan Mugno, management support specialist, Capital Metro, Austin, Texas, March 19, 1998.

25 Interview with Pat Rowan, March 5, 1998.

26 Interview with Pat Rowan, manager, Human Resources Department, Capital Metro, Austin, Texas, April 20, 1998.

27 Capital Metro, Capital Metropolitan Transportation Authority System-Wide Performance Audit, by KPMG Peat Marwick LLP (Austin, Texas, July 21, 1997), p. 21. (Consultant's report.)

28 StarTran, Inc., StarTran, Inc. Rules and Regulations (Austin, Texas, November 1998); and interview with Fred Martinez, manager of labor, Operations Division, StarTran, Inc., Austin, Texas, July 6, 1998.

29 TPR telephone survey of transit authorities, April 1998.

30 Capital Metro, Results of the June 18th, 1997 survey of CMTA and StarTran Employees Regarding Opinions of the Human Resources Department, Austin, Texas, 1997, pp. 22-23.

31 Interview with Pat Rowan, manager, Human Resources Department, Capital Metro, Austin, Texas, April 7, 1998.

32 Interview with Pat Rowan, March 5, 1998.

33 TPR telephone survey of transit authorities, June 1998.

34 Interview with Javier Lopez, manager, Human Resources Department, Comptroller of Public Accounts, Austin, Texas, June 12, 1998; and Comptroller of Public Accounts, "Human Resources FY 98 Measures." Austin, Texas. (Computer printout.)

35 Capital Metro, Capital Metropolitan Transportation Authority: System-Wide Performance Audit,
p. 22.

36 Interview with Rick Nañez, benefits coordinator, Capital Metro, Austin, Texas, March 18, 1998.

37 Capital Metro, Capital Metropolitan Transportation Authority Retirement and Savings Plan (Austin, Texas, December 31, 1991), pp. 24-25; Capital Metro, Amendment #4 to the Capital Metropolitan Transportation Authority Retirement and Savings Plan (Austin, Texas, 1996); StarTran, Inc., StarTran, Inc. Retirement and Savings Plan (Austin, Texas, December 31, 1991),
p. 24; and StarTran, Inc., Amendment #4 to the StarTran, Inc. Retirement and Savings Plan (Austin, Texas, February, 14, 1996).

38 Capital Metro, Amendment #1 to the Capital Metropolitan Transportation Authority Retirement and Savings Plan (Austin, Texas, December 23, 1992); Capital Metro, Capital Metropolitan Transportation Authority Retirement and Savings Plan, p. 34; StarTran, Inc., Amendment #1 to the StarTran, Inc. Retirement and Savings Plan (Austin, Texas, December 23, 1992); and StarTran, Inc., StarTran, Inc. Retirement and Savings Plan, p. 33.

39 Interviews with Rick Nañez, benefits coordinator, and Pat Rowan, manager of Human Resources Department, Capital Metro, Austin, Texas, April 7, 1998.

40 Capital Metro, Contract No. CMTU-10635-1-93: Attachment SOW-1 (Austin, Texas, December 10, 1993), p. 1; and StarTran, Inc., Contract No. STAR-004-93: Attachment SOW-1 (Austin, Texas, December 10, 1993), p. 1.

41 Letter from Pat Rowan, manager, Human Resources Department, Capital Metro, Austin, Texas, to Mani Rao, Texas Performance Review, Texas Comptroller of Public Accounts, April 22, 1998.

42 StarTran, Inc. StarTran, Inc. Retirement and Savings Plan, p. 25; and Capital Metro, Capital Metropolitan Transportation Authority Retirement and Savings Plan, pp. 25-26.

43 Interview with Rick Nañez and Pat Rowan, April 7, 1998.

44 Capital Metro, Capital Metropolitan Transportation Authority Retirement and Savings Plan: Summary Plan Description (Austin, Texas, August, 1997), p. 22.

45 Capital Metro, Capital Metropolitan Transportation Authority Retirement and Savings Plan: Summary Plan Description, pp. 3 and 5.

46 Interview with Rick Nañez, benefits coordinator, Capital Metro, Austin, Texas, May 14, 1998; and interview with Rick Nañez and Pat Rowan, April 7, 1998.

47 Interview with Pat Rowan and Rick Nañez, April 7, 1998.

48 StarTran, Inc. StarTran, Inc. Retirement and Savings Plan: Summary Plan Description (Austin, Texas, January, 1998), pp. 3 and 5; and Capital Metro, Capital Metropolitan Transportation Authority Retirement and Savings Plan: Summary Plan Description (Austin, Texas, January 1998), pp. 3 and 5.

49 Capital Metro, Capital Metropolitan Transportation Authority Retirement and Savings Plan: Summary Plan Description (Austin, Texas, January 1998), pp. 21-22.

50 Capital Metro, "Resolution of the Capital Metropolitan Transportation Authority: Resolution No. CMTA-91-1216-153," (Austin, Texas, December 16, 1991).

51 Interviews with Rick Nañez and Pat Rowan, April 7, 1998.

52 Capital Metro, Amendment #4 to the Capital Metropolitan Transportation Authority Retirement and Savings Plan; and StarTran, Inc., Amendment #4 to the StarTran, Inc. Retirement and Savings Plan.

53 Interview with Rick Nañez, benefits coordinator, Capital Metro, Austin, Texas, June 18, 1998.

54 TPR telephone survey of transit authorities, June 1998.

55 Capital Metro, Capital Metro Human Resources Policy Manual, Policy HRC-420 (Austin, Texas).

56 Interview with Ruth Lyon, Human Resources coordinator, Fort Worth Transportation Authority, June 15, 1998.

57 Interview with Rick Nañez, benefits coordinator, Capital Metro, Austin, Texas, June 1, 1998; and Capital Metro, "Loans for 1995-1998," Austin, Texas. (Computer printout.)

58 Managing 401(k) Plans, "Should the Increase to 23% in 401(k) Plan Loans Concern Sponsors?" March, 1998 (http://www.ioma.com/newsletters/401k/articles/0398.shtml). (Internet document.)

59 U.S. General Accounting Office, Private Pensions: Plan Features Provided By Employers That Sponsor Only Defined Contribution Plans (Washington, D.C., December 1997), p. 26.

60 U.S. General Accounting Office, 401(k) Pension Plans: Loan Provisions Enhance Participation But May Affect Income Security for Some (Washington, D.C., October 1997), pp. 2-3.

61 StarTran, Inc., StarTran, Inc. Retirement Plan (Austin, Texas, December 14, 1992), p. 4.1.

62 StarTran, Inc., StarTran, Inc. Retirement Plan, pp. 3.1-3.2.

63 StarTran, Inc., StarTran, Inc. Retirement Plan, pp. 1.8-1.9 and 3.2.

64 StarTran, Inc., StarTran, Inc. Retirement Plan: Actuarial Valuation as of January 1, 1997, by Rudd and Wisdom, Inc. (Austin, Texas, November 17, 1997), p. 7.2. (Consultant's report.)

65 Letter from Rudd and Wisdom, Inc., Austin, Texas, to the Retirement Committee of StarTran, Inc., November 17, 1997, p. 2.

66 StarTran, Inc., StarTran, Inc. Retirement Plan, p. 3.1; StarTran, Inc., StarTran, Inc. Retirement Plan: Actuarial Valuation as of January 1, 1997, by Rudd and Wisdom, Inc., p. 3.1 (Consultant's report.); and interview with Ronald W. Tobleman, Fellow, Society of Actuaries, Rudd and Wisdom, Inc., Austin, Texas, April 14, 1998.

67 Interview with Pat Rowan and Rick Nañez, April 7, 1998.

68 Interview with David Cowart, attorney, Jenkens & Gilchrist, P.C., Dallas, Texas, May 1, 1998.

69 Letter from Gary O. Booth, district director, Internal Revenue Service, Dallas, Texas, to Capital Metropolitan Transportation Authority, November 19, 1993; and letter from district director, Internal Revenue Service, Dallas, Texas to StarTran, Inc., c/o T. David Cowart, Esq., Jenkens & Gilchrist, Dallas, Texas, November 19, 1993.

70 Letter from district director, U.S. Department of the Treasury, Internal Revenue Service, to StarTran, Inc. c/o T. David Cowart, November 19, 1993.

71 Interview with David Cowart, May 1, 1998; and interview with Rick Nañez and Pat Rowan,
April 7, 1998.

72 StarTran, Inc., Labor Agreement between StarTran, Inc. and Amalgamated Transit Union Local 1091, July 1, 1997 - June 30, 2000 (Austin, Texas, October 17, 1997), p. 37.

73 Letter from Lydia Wommack Barton, attorney, Graves, Dougherty, Hearon & Moody, P.C., Austin, Texas, to Gerald A. Robichaux, Sr. chief operating officer, StarTran, Inc., November 13, 1997.

74 U.S. Department of the Treasury, Internal Revenue Service, "Revenue Procedure 98-14," Washington, D.C., 1998.

75 U.S. Department of the Treasury, Internal Revenue Service; U.S. Department of Labor Pension and Welfare Benefits Administration; and Pension Benefit Guaranty Association, "1997 Instructions for Form 5500: Annual Return/Report of Employee Benefit Plan (With 100 or More Participants)" Washington, D.C., p. 13.

76 Interview with Rick Nañez, benefits coordinator, Capital Metro, Austin, Texas, March 31, 1998; and letter from Richard Mendoza, CPA, Martinez, Mendoza, & Colmenero, P.C., to StarTran, Inc., February 17, 1998; and memorandum from Pat Rowan, manager of Human Resources, Capital Metro, to Andrea Cowan and Mani Rao, Texas Performance Review, Comptroller of Public Acccounts, July 6, 1998.

77 Memorandum from Pat Rowan to Andrea Cowan and Mani Rao.

78 Interview with William LeRoy, Certified Public Accountant, LeRoy Accountancy Corp., San Francisco, California, April 10, 1998.

79 Letter from Richard Mendoza to StarTran, Inc., February 17, 1998.

80 Interview with Pat Rowan, March 5, 1998.

81 Interview with Pat Rowan, manager, Human Resources Department, Capital Metro, Austin, Texas, June 2, 1998.

82 Interview with Pat Rowan, March 5, 1998.

83 Capital Metro, "Position Description Questionnaire: Statistician," Austin, Texas, p. 3; and Robert L. Conry, "Attachment to the Summary Resume of Robert L. Conry," Austin, Texas. (Resumé.)

84 Capital Metro, Capital Metro Human Resources Policy Manual, Policies HRC-155, 415, and 460 (Austin, Texas).

85 TPR telephone survey of transit authorities, April 1998.

86 Texas H.B. 1, 75th Leg., Reg. Sess. (1997), p. IX-47.

87 Capital Metro, Capital Metro Human Resources Policy Manual, Policy HRC-450 (Austin, Texas).

88 E-mail memorandum from Suzanne Perez, accounts payable leader, to Pat Rowan, manager, Human Resources Department, Capital Metro, March 11, 1998.

89 Capital Metro, "Capital Metro Job Description: Manager of Engineering and Construction" (Austin, Texas); Capital Metro, "Capital Metro Job Description: Manager of Risk Management" (Austin, Texas); and Capital Metro, "Capital Metro Job Description: Construction Coordinator" (Austin, Texas).

90 Interview with Pat Rowan, March 5, 1998.

91 TPR telephone survey of transit authorities, April 1998.

92 Interview with Fred Martinez, manager of labor, StarTran, Inc., Austin, Texas, July 6, 1998.

93 Capital Metro, Supervisor's Guide to the Performance Review Process (Austin, Texas, November 5, 1997).

94 Interview with Pat Rowan, March 5, 1998.

95 Interview with Pat Rowan, manager, Human Resources Department, Capital Metro, Austin, Texas, March 9, 1998.

96 TPR telephone survey of transit authorities, June 1998.

97 Interviews with Pat Rowan, March 9 and March 27, 1998.

98 Interview with Karen Vaughn, management support specialist, Capital Metro, Austin, Texas, May 21, 1998.

99 Capital Metro, Training Assessment Survey, Final Report-Draft (Austin, Texas, July 1, 1996) p. i.

100 Capital Metro, "UT Quality Center Training Activity `95-'97." (Internal document.)

101 Interviews with Rick Nañez and Pat Rowan, April 7, 1998.

102 Interview with Jim Robertson, assistant general manager for Development, Capital Metro, Austin, Texas, November 20, 1997.

103 Interview with Pat Rowan, April 7, 1998; and Capital Metro, " Quality Center Training Activity `95-'97" (Internal document); and StarTran, Inc., Operations Division, "Training Report By Employee Name And Training Starting Date." (Computer printout.)

104 Interview with Pat Rowan, March 5, 1998.

105 StarTran, Inc., Operations Division, "Training Report By Employee Name And Training Starting Date." (Computer printout.)

106 Capital Metro, " Quality Center Training Activity `95-'97." (Internal document.)

107 Interview with Pat Rowan, manager, Human Resources Department, April 2, 1998.

108 V.T.C.A., Labor Code, Title 5, Subtitle A.

109 Capital Metro, FY 1998 Budget (Austin, Texas, March 1998), p. 25.

110 Capital Metro, "Capital Metropolitan Transportation Authority Schedule of Insurance Policies," Austin, Texas, July 1997, p. 2.

111 Texas Workers' Compensation Commission, Hazard Survey Report of StarTran (Austin, Texas, June 20, 1995).

112 Letter from Richard Oliver, chief of Safety Inspections, Workers' Health and Safety Division, Texas Workers' Compensation Commission, to StarTran, Inc., April 29, 1996; and letter from Delbert F. Miller, chief of Notifications and Reviews, Workers' Health and Safety Division, Texas Workers' Compensation Commission, to Ms. Julie Maxwell, safety industrial specialist, StarTran, September 4, 1996.

113 Letter from Janet R. Opre, Safety Services inspector, Workers' Health and Safety Division, Texas Workers' Compensation Commission, to StarTran, Inc., May 12, 1997.

114 Capital Metro/StarTran Inc., Accident Prevention Plan (Austin, Texas, July 1995); and letter from Janet R. Opre to StarTran, Inc., May 12, 1997.

115 Interview with Dell Miller, Extra-Hazardous Employer Program, Texas Workers' Compensation Commission, Austin, Texas, April 14, 1998.

116 Interview with Irma Facundo, risk manager, Capital Metro, and Ted Beason, Texas Municipal League, Austin, Texas, March 5, 1998.

117 Capital Metro, Capital Metropolitan Transportation Authority: System-Wide Performance Audit,
p. 182.

118 Memorandum from Elaine Timbes, interim chief operating officer, Capital Metro, to Andrea Cowan, manager, Texas Performance Review, Comptroller of Public Accounts, July 6, 1998.

119 Based on a TPR review of Capital Metro's workers' compensation claims, as of January 31, 1998.

120 Capital Metro, Capital Metro Analyzation Summary, by Infosource International (Austin, Texas, February 1996), p. 5. (Consultant's report.)

121 Interview with Irma Facundo, risk manager, Capital Metro, Austin, Texas, April 14, 1998.

122 Capital Metro, Capital Metro Analyzation Summary, p. 4.

123 Letter from Tim Newby, president, StarTran, Inc., to Michael Bolton, general manager, Capital Metro, April 8, 1996.

124 Based on TPR review of Capital Metro's workers' compensation claims, as of January 31, 1998.

125 Interview with Joe Deering, State Office of Risk Management, Austin, Texas, March 27, 1998.

126 StarTran, Inc., Labor Agreement between StarTran, Inc. and Amalgamated Transit Union, Local 1091, July 1, 1997-June 30, 2000 (Austin, Texas, October 17, 1997), p. 47.

127 Memorandum from Pat Martin, manager of Contracts and Procurement, Capital Metro to Fred Martinez, Elaine Timbes, and Milton Turnipseed, Capital Metro, February 3, 1998.

128 Interview with Fred Martinez, Operations Department, Capital Metro, Austin, Texas, May 4, 1998.

129 Interviews with John Mugno and Jay Wyatt, Amalgamated Transit Union, Austin, Texas, May 1, 1998.

130 Research and Oversight Council on Workers' Compensation, "Fraud in the Texas Workers' Compensation System," Texas Monitor (Winter 1997), p. 1. (Newsletter.)

131 V.T.C.A., Labor Code, §418.001(b)(1).

132 Interview with Irma Facundo, risk manager, Capital Metro, Austin, Texas, March 6, 1998.

133 Comptroller of Public Accounts, Children First: Houston Independent School District School Performance Review (Austin, Texas, October 1996), p. 353.

134 Texas Workers' Compensation Commission, "System Data Report through December 1997," Austin, Texas, February 1998, p. 1.

135 U.S. Bureau of Labor Statistics, Annual Occupational Injury and Illness Survey, 1995 (Washington, D.C., October 1996).

136 Texas Workers' Compensation Commission, Occupational Injuries and Illness in Texas, 1995 (Austin, Texas, July 1997).