It's all part of an overall TARC effort to improve reliability throughout the entire system.
Carrie Butler's resignation is effective Dec. 31.
Council members said the transit authority still needs accountability and oversight.
Some council members suggested that more accountability and oversight are needed.
The mayor office was aware of the union officials' concerns about Ferdinand Risco, "but their concerns seemed ignored or dismissed," according to the report.
Loyal TARC riders are hopeful that a brand new leader will help turn around the struggling service.
According to a news release, former Lextran general manager Carrie Butler has been appointed as TARC's new executive director.
A new report outlines some of the allegations against a former TARC director, telling a sordid story of vulgar notes, sexual images and propositions for sex with employees in exchange for promotions.
Ferdinand Risco resigned in February amid allegations of sexual misconduct involving at least six female employees of the public transportation system.
During a lengthy Tuesday night meeting on the subject, both sides accused the other of conducting a compromised investigations as both sides investigate the allegations.