State to conduct 'mini-audit' of UTA trustee's involvement in development

SALT LAKE CITY — State auditors will dig into a Utah Transit Authority trustee's involvement in a development that was planned near a train station.

Early Tuesday evening, the Legislative Audit Subcommittee approved an expedited "mini-audit" of UTA and trustee Terry Diehl's involvement in a "transit-oriented development" of housing, retail and office space near a future FrontRunner station in Draper.

If the findings warrant a full-blown audit, the committee can order state auditors to dig further.

Diehl submitted to UTA a conflict of interest disclosure in January 2009, identifying himself as a "consultant" to the developers. He refrained from voting on the issue.

However, environmentalists, Native Americans and government watchdogs have been critical of UTA's enthusiasm for the development and the piece of land on which they wanted the station.

Rep. Janice Fisher, D-West Valley City, who requested the audit, had a manila folder she said contained documents to prove there was a conflict and a need for an audit.

"I'm telling you, there are conflicts of interest at UTA, and they need to be examined," Fisher said. "And they need to be examined by the auditor general and the state of Utah."

As part of a compromise with the state, environmentalists and local tribes, UTA has abandoned the FrontRunner station for a parcel to the north.

UTA officials agreed to the audit. For more than a year, there have been allegations of conflicts of interest, and an audit will be an opportunity for UTA to clear its name, said Bruce Jones, UTA general counsel and president of government resources.

"We would welcome the opportunity to review and respond to that material," Jones said.

The audit subcommittee approved six additional audits during its Tuesday meeting: county and municipal use of transfer of development rights; vendor and pharmaceutical contracts with the Utah Public Employees Health Program; the efficiency of Utah State Parks and whether they should be privatized; the efficiency of the Utah courts system; the efficiency of the Division of Child and Family Services; and a mini-audit of the Utah Department of Transportation after an employee allegedly rented out UDOT properties to relatives on the cheap.

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