5 Big Stories in Rhode Island This Week - December 16, 2023

BONUS

EDITORIAL: UNACCEPTABLE

Governor Dan McKee and the Rhode Island Department of Transportation Director Peter Alviti have failed Rhode Island.

There are functionally four basic minimal services that residents should receive from state government — police, fire, schools, and roads.

Many Rhode Islanders have given up on public education — public schools in too many communities are inferior, and the only students who remain are those with no options. Ironically, when McKee was visiting Mount Pleasant High School in Providence on Wednesday, a female police officer was disarming an 18-year-old student with a gun in another portion of the school.

Rhode Island’s roads and bridges are ranked among the worst in the country. They ranked poorly before Peter Alviti took over nearly a decade ago, and despite endless promises, Rhode Island has barely "moved the needle." Alviti is responsible for the quality and the safety of the infrastructure which people depend on daily. 

House Minority Leader Michael Chippendale's comments are on point when he said, "The Executive Branch in Rhode Island is responsible for maintaining and developing our state’s infrastructure – including the I-195 bridges. The Governor selects department heads and directors and prioritizes the areas where those departments focus. The responsibility for this avoidable disaster is undebatable."

Repeatedly, GoLocal has unveiled that Alviti is dishonest and has intentionally misled the public on issues such as contamination, legal matters, and the costs of projects.

Now, there is a major transportation catastrophe. Alviti’s explanations are inconsistent at best.

Alviti has repeatedly praised himself during this crisis. The self-infatuation is downright creepy. The reality is that for many in the state, their lives have been seriously disrupted, and their children’s education has been impacted.

For thousands who work for the hundreds of businesses that will be damaged by the loss of revenue during the critical holiday season, this failure of the government will severely economically damage many. Restaurants across the East Bay and into Providence have been pounded by the cancellation of dinners and holiday parties.

Unfortunately, this failure of the government is expected to last for months.

The explanation of what caused the failure is highly questionable, and an independent review is needed. According to documents GoLocal unveiled filed by a top Connecticut engineer in 2020 on the stability of the bridge and RIDOT's changes, it raises even more questions about Alviti’s competence and judgment.

The Governor is all in on Alviti. He has refused to take action so far in reaching out for an independent review and has attempted to bully the media to quash questions. When GoLocal News Editor Kate Nagle asked about an independent review, he was dismissive.

When WJAR’s Brian Crandall asked McKee about Alviti’s leadership, Crandall was bullied by the Governor, who refused to answer a question that thousands of Rhode Islanders have asked on social media and hundreds of McKee’s own social media pages. Many McKee voters have called for Alviti to be fired.

Most discomforting is McKee’s self-congratulations. After inappropriately chiding Crandall, a solid reporter and by all accounts a decent person, McKee blustered, “The people I talk to are very pleased with what is going on.”

Confusing is McKee's failure to declare a state of emergency and refusal to answer questions about tens of millions of dollars in contracts and contract extensions to favored vendors with no public bidding. The beneficiaries include the Massachusetts-based company Barletta Heavy Division, now working on the Washington Bridge and under indictment for contamination on the 6/10 project. 

McKee and Alviti announced they were engaging a New York company to provide ferry service without a public bid, even though at least two Rhode Island groups offered ferry services. Again, no accountability and no bid. RIDOT and McKee's office refused to answer questions about the engagement.

This bridge failure is not only exposing the grim underbelly of critical infrastructure but also of leadership.

For McKee to build trust during this crisis, he needs to hold his team and his appointees accountable, immediately seek an out-of-state, independent analysis of this cause, and help develop the strategy needed to correct the catastrophe.

Anything else is a failure.

#5

RI’s Shrinking University - Lost Nearly $100 Million in 4 Years While Execs Took Tens of Millions

Johnson & Wales University was a high-flying, fast-growing higher education corporation in the early 2010s.

Headquartered in Providence, it exploded in revenue, the number of campuses, and its top executive officers took mega-salaries.

In more recent years, J&W has faced a mammoth decline. 

Overall revenue fell from more than $529 million in 2014 to $344 million in 2021— an unheard-of 30% decline in seven years.

All the while, the leadership team took millions in salaries and other benefits. 

In a three-year period 2019 to 2021, J&W lost $99,085,047, according to tax records. Some of the University's tax records and audits have only been made public in recent weeks.

J&W claims the economic decline was due to COVID. But those claims don't hold up. 

“JWU like many colleges throughout the country had fiscal challenges due to the impact of COVID but we weathered the pandemic and have completed the current fiscal year with a surplus,” said Jennifer E. McGee, the Director of External Communications & Media Relations at Johnson & Wales University. 

The financial decline began years before COVID hit America's shores in 2020, and the University received tens of millions of federal COVID-19 Paycheck Protection Program (PPP) funds.

The University, which was founded in 1914 by Gertrude I. Johnson and Mary T. Wales, two women dedicated to providing relevant and practical education, has dramatically transformed over a century and is transforming again.

Big Growth

J&W grew to multiple locations across the United States — locations in Denver, Charlotte, North Miami, as well as Providence.

The revenue exploded to more than half a billion dollars annually. 

In 2014, J&W’s revenue rocketed to $529,237,534 — and the net income jumped to $57 million for the year. In Providence, the company gobbled up real estate and expanded its campus in downtown Providence and along the waterfront off of Allens Avenue on the Providence and Cranston line.

But, behind the growth were fundamental problems, changes in education demographics, and big expenses.

The board was stacked with notable “business leaders.”

Board members included former GTECH CEO Guy Snowden, former BankRI President Merrill Sherman, and former Bryant University President William Truheart.

The board is responsible for J&W's strategic direction, oversees its budget, and approves the compensation for top executives.

One financial board member was a financial advisor who ran into serious legal troubles. 

David Brochu, former Rhode Islander and founder of StrategicPoint Investment Advisors, served on the board for years. He was fined in New Hampshire in 2016 for violating state securities regulations and stripped of his license — and ordered to pay $1.3 million in restitution to twenty-two investors, including ten Rhode Islanders whom he owes $365,000.

The revelation was just one in a series of serious legal issues for Brochu, who in 2014 was arrested on sex and weapons assault charges in New Hampshire, and, in 2010, was embroiled in a court battle after selling StrategicPoint to Focus Financial Partners. All while he was serving on the J&W's board. 

Salaries Explode for Top Executives

There were big salaries for top executives.

Then-Chancellor, President and CEO John Bowen received a total compensation package in 2014 of $1.5 million. Vice-chancellor Thomas Dwyer received more than $1 million that year. Those salaries were above average for executive compensation for university leaders, according to a study by the Chronicle of Higher Education.

J&W's overall revenue jumped to $529,237,534.

While 2014 was the height of the revenue for the University, it was not close to the high point for the compensation paid to the top executives.

$5 Million Man

In 2018, Bowen’s compensation jumped to $5.3 million, and Dwyer's was nearly $3.1 million.

In contrast, just across Providence, Brown University President Christina Paxson’s total compensation was just over $1.5 million. Brown is an Ivy League University and, in 2018, had a budget three times larger than that of J&W.

And in 2018, RISD’s President Rosanne Somerson received a total compensation of $641,000.

While the senior staff was receiving record compensation packages, the core financials had peaked and were on the precipice of collapse.

Over the past five years, Johnson & Wales University has lost more than $80 million — but the numbers are just some of the story.

Between 2016 and 2018, the University lost more than $8 million and Bowen alone received compensation of more that $8.2 million, according to J&W tax records. It is unclear if some of Bowen's take was deferred compensation. READ MORE

#4

McKee Defends Use of Indicted Contractor to Continue to Do Washington Bridge Work

Governor Dan McKee is defending his decision to use a contractor to conduct emergency repairs to the Washington Bridge that is presently under state indictment.

The emergency repair work, which is expected to cost in the tens of millions of dollars, is being awarded by McKee without a bidding process.

The company — Barletta Heavy Division — is not only under state indictment but also signed a non-prosecution agreement with the U.S. Department of Justice and paid $1.5 million for its role in dumping contaminated soil in a residential neighborhood in Providence. 

One of the top employees of the company, the supervisor over the 6/10 project, Dennis Ferreira pled guilty to federal felony charges for his role.

The federal and state enforcement actions took place after a two-year investigation by GoLocalProv that unveiled the dumping by Barletta and the impact on neighbors in the Olneyville neighborhood.

The dumping was part of the $400 plus million Rhode Island Department of Transportation 6/10 project overseen by Director Peter Alviti.

GoLocal News Editor Kate Nagle asked McKee at Wednesday’s press briefing about the continued use of Barletta on the Washington Bridge.

“Governor, do you think it's appropriate to give the contract for the repair work to a company that signed a federal non-prosecution agreement on contamination at 610 and is currently under state indictment — what type of message does it send to the people in the state?” asked Nagle. 

McKee said, “I'm going to go to wherever I can get the work done quickest to get the get the highways open. I'll let the legal process, there is one, you know, run out its course, but right now, my top priority is reopening the bridge. Uh, we're doing everything we can to make that happen, and I feel comfortable that we're making the right decisions,” said McKee.

U.S. Attorney Zachary Cunha told GoLocal at the time of the federal enforcement action, “When federal tax dollars fund work in our communities, we expect that the government will get what it bargains for. In this case, that didn’t happen.  [This] resolution should serve as a reminder to any company or corporate official that, when the government is footing the bill, false statements have consequences.”   

Under Alviti's tenure at RIDOT, the Massachusetts contractor has been awarded the 6/10 project, the Henderson Bridge, the Washington Bridge project, 146 project, and now the emergency repair work on the Washington Bridge.

In total, Barletta has received about $500 million in contracts from the Alviti-led RIDOT.

Federal and State Enforcement Actions and Indictments Against Barletta and Its Employee

Attorney General PeterNeronha announced in January that his office had charged Barletta and the former employee with illegally dumping thousands of tons of contaminated fill at project sites in Providence during the construction of the Route 6/10 Interchange construction project.

“As alleged in the Information, Mr. Ferreira and Barletta used the 6/10 site as an environmental dumping ground, and not only for Rhode Island waste. Worse yet, they made Rhode Island a dumping ground for Massachusetts waste,” said Neronha in January. “Their actions come at the expense of Rhode Islander’s public health and their environment. Rhode Island’s environmental and public health laws exist for a reason. To keep Rhode Islanders safe, and to preserve our environment. We will continue to aggressively enforce those laws. Because Rhode Islanders deserve nothing less.”

As alleged in the criminal information, in July 2020, the defendants authorized the disposal of more than 4,500 tons of stone and soil contaminated with hazardous materials at the Route 6/10 Interchange construction project.

In 2020, Ferreira was the Superintendent of the Route 6/10 Interchange construction project and as alleged in the information, possessed broad authority over the project, including the acquisition of material to be used on site.

As alleged in the information, Barletta is required to analyze any fill brought to the 6/10 project site for contaminants and must certify any fill be suitable for use at the site.

It is alleged that the defendants sourced known contaminated fill from the site of the Pawtucket/Central Falls Commuter Rail Station on the border of Pawtucket and Central Falls, and from a Barletta materials stockpile in the Jamaica Plain neighborhood of Boston, Mass. The site of the Pawtucket/Central Falls Commuter Rail Station has been used as a rail yard for nearly 150 years and the presence of soil contaminants, including arsenic and PAH’s, have been previously confirmed. At the Jamaica Plain site, Barletta stockpiled contaminated stone generated from railbed replacement work they conducted on the Massachusetts Bay Transportation Authority (MBTA) B and C Green lines," said Neronha's office when announcing the indictment.

As alleged in the information, the defendants authorized the transport of approximately 1,114 tons of contaminated soil from the Pawtucket/Central Falls site and approximately 3,460 tons of contaminated stone from the Jamaica Plain site to the 6/10 project site.

It is also alleged that in late July 2020, state officials with DEM and the Rhode Island Department of Transportation (DOT) asked Ferreira for an environmental certification for the transported stone, and he provided an environmental testing report with analysis from another site, to hide the fact that the 6/10 site stone was contaminated, said Neronha's office.

McKee supporter and Laborers; International's Michael Sabitoni and Barletta CEO Vin Barletta PHOTO: GoLocal

#3

EXCLUSIVE: While Drivers Were Stuck in Chaos, Gov Attends Fundraiser for RIDOT Chief-of-Staff

While tens of thousands of Rhode Islanders were stuck in traffic for upwards of three to four hours, Governor Dan McKee was attending a political fundraiser for Rhode Island Department of Transportation Chief of Staff John Igliozzi on Tuesday night.

Igliozzi, a former Providence City Councilman, is the top staffer to director Peter Alviti. According to state records, Igliozzi makes $175,926.92 at RIDOT.

McKee has repeatedly stated that he and RIDOT officials have been working around the clock to solve the RIDOT Bridge failure.

The fundraiser was held at "The Social" at 1449 Mineral Spring Avenue in North Providence. Igliozzi is expected to run for Rhode Island Attorney General in 2026.

The ticket price: $250 to $1,000 per person.

But while McKee, RIDOT officials, and other politicos were sipping cocktails and downing appetizers, schools in East Providence were being closed, holiday parties were being canceled throughout Rhode Island, and Rhode Islanders' lives were thrown into upheaval. 

According to restaurant owners, cancellations continue to spiral and business is off 20% to 30% during the critical holiday season.

Presently, Igliozzi had a cash balance in his campaign account of $71,063.93 as of the last October 31, 2023 report.

McKee's office said in response to questions about his attending the fundraiser, “The Governor is on duty no matter where he is. He did briefly attend that event and then returned to the State House.”

#2

GoLocal Blasts Alviti on Repeated False Public Statements

On Monday night, GoLocal reported that an engineer for a bid on the Westbound Washington Bridge project in 2020 warned the Rhode Island Department of Transportation about a potential design flaw relating to the failure of pin joints in the project.

The warning was ignored by RIDOT officials.

On Tuesday morning, on an appearance on WPRO, Peter Alviti, the Director of RIDOT, claimed that GoLocal’s report was false.

He claimed GoLocal “identified the wrong bridge.”

GoLocal had cited the report by the engineering expert but did not report on a specific portion of 195. 

On Monday, RIDOT announced that a failure in bridge joints forced the shutdown of half of one of Rhode Island's most important highways. The expert's report was part of the Cardi Corporation's bid to do repair work in 2020.

“Alviti is incompetent. He has proven it by his management of 6/10 and the overall condition of Rhode Island’s infrastructure, which continues to be ranked at the bottom of the state rankings. What GoLocal reported was exactly what was submitted to RIDOT regarding the Washington Bridge construction project, that there was a potential failure,” said GoLocalProv CEO and co-founder Josh Fenton.

“Alviti lied about 6/10 and tried to shift the blame when we broke the story, and he is trying to do the same again,” said Fenton. “He even lied on the same radio show. He lied again when GoLocal unveiled cost overruns on 146."

"Rhode Island has amongst the worst roads and bridges in the United States, and every time Alviti's incompetence is unveiled, he blames someone else," added Fenton.

Alviti was appointed by Governor Gina Raimondo in 2015 and was reappointed by Governor Dan McKee.

RIDOT claims the closure directly impacts 90,000 vehicles a day.

READ MORE

#1

EXCLUSIVE: Engineer Warned RIDOT That Washington Bridge Joints Could Fail

On Monday night, just hours after the Washington Bridge was forced to be shutdown, GoLocal reported:

A report written by a leading bridge engineer from Connecticut warned the Rhode Island Department of Transportation that failure of the joints of Washington Bridge was possible if specific action was not taken.

The report was submitted as part of a 2020 bid by the Cardi Corporation for the construction work to repair the bridge. The work was initially awarded to Cardi and then reassigned to Barletta Heavy Machine after legal fights.

After more than 40 stories by GoLocal, the U.S. Attorney in Providence reached a $1.5 million non-prosecution agreement with Barletta and one top employee of the company pled guilty to charges.  And then, nearly three months after the U.S. Attorney's action, Rhode Island Attorney General Peter Neronha filed charges against Barletta as a corporation as well as an employee.

According to representatives of Cardi Corporation, who had partnered with the Connecticut engineer Michael “Pete” Culmo, who today is the Chief Bridge Engineer at CHA Consulting in Hebron, Connecticut, the issue was known to RIDOT officials for nearly three years.

Culmo warned in that submission that the design preferred by RIDOT officials had serious technical issues and due to wear, could cause failure.

Rhode Island Department of Transportation Director Peter Alviti said Monday night that bridge closure was the result of the pins designed to brace the bridge having been severed.

This is the very issue flagged by Culmo in his warning to RIDOT in 2020.

“The addition of the link slab alters the location of the hinge point at the end of the beams. Before adding the link slab, the hinge point is at the bearing. With the addition of the link slab, the hinge is now located at the mid-depth of the deck. End rotation brought on by live loads leads to movement at the bearing, resulting in shearing forces on the bearing pin and beam ends. This can lead to several problems. The bearing pin could fail, and the beam end could be damaged due to the force transfer at the pin. Note that the link slabs cannot be moved to the expansion ends of the hung spans, because that will lead to problems similar to those noted above,” wrote Culmo.

READ MORE