A memorandum summarizing the Little Rock Police Department’s investigation of the Little Rock Wastewater Utility and two of its top executives will be released this morning, Police Chief Stuart Thomas said Tuesday.
The report will detail whether police detectives found any criminal activity in certain expenditures and happenings at the utility that surfaced within the past two months after articles in the Arkansas Democrat-Gazette revealed that Operations Manager Stan Miller had been living on utility property in his mobile homes at the expense of ratepayers. Chief Executive Officer Reggie Corbitt approved the living situation, even after the utility’s attorney expressed concern about it.
The Sanitary Sewer Committee - which oversees finances and certain operations of the utility - is to meet at 4 p.m. today to discuss Corbitt’s future employment, as well as the police investigation and the results of an internal audit that the committee ordered done in December. The results of that audit, put together by an independent firm, also will be released today, said committee member Jean Block.
Committee Chairman Marilyn Perryman canceled a specially called meeting scheduled for Tuesday after the internal audit report wasn’t available as she had anticipated. Corbitt’s employment was supposed to be discussed at that meeting.
An email from the audit firm’s representative sent to the utility’s Director of Administration and Community Outreach John Jarratt said the auditor was behind schedule.
“One thing Marilyn wanted was some time that the sewer committee could review this internal audit before they start having discussion about it,” Jarratt said.
Thomas had the police memorandum completed Tuesday evening, but it was being edited, he said. Mayor Mark Stodola ordered the police investigation Dec. 10,the same day Corbitt and Miller were placed on administrative leave and a day after a Democrat-Gazette article reported Miller’s stays on utility property.
Since then, the newspaper has obtained dozens of documents that show that at least $15,900 in public funds have been spent since 2012 to accommodate Miller’s living situation, as well as pay for a fence and heating pad for his dog. Documents also showed that Corbitt approved an extra 24-hour-access pass to a sewer treatment facility for Miller’s girlfriend, who is not a utility employee. Utility staff members found that Miller and Corbitt allowed an acquaintance to haul off for free hundreds of feet of surplus pipe owned by the utility.
Corbitt and Miller have been barred from contacting anyone at the utility since they were placed on paid leave. In an email sent to his attorney Friday - which was obtained by the newspaper under a state Freedom of Information Act request - Corbitt proposed a conditional settlement in which he would resign under certain stipulations. Those conditions were that he receive severance pay through the end of the year, his yearly auto allowance, continued health coverage for himself and his wife this year, and payment for his legal expenses.
Corbitt’s salary is $187,875.76 after a 1.5 percent increase took effect Jan. 1. He receives an $8,400 car allowance each year.
Wastewater Utility’s severance policy doesn’t apply to resignations. If it did apply in Corbitt’s case, he would be paid $104,777 under the policy - which states that an employee will receive his weekly pay multiplied by his full years of service.
Corbitt has several other benefits. It’s unclear how those will be affected if he is fired, resigns or retires.
Little Rock Wastewater Utility provides a 5 percent annual lump-sum contribution to Corbitt’s “457” deferred compensation retirement account and a 3 percent contribution to his “401a” retirement account.The agency pays 85 percent of his monthly health-insurance premium, a one-time contribution of $2,400 to his health savings account, 100 percent of his life insurance monthly premium and 100 percent of his disability monthly premium. He is also enrolled in the Arkansas Public Employees Retirement System.
Before the most recent investigation, Corbitt was to retire this year when a new CEO is hired. The sewer committee asked him to retire after an investigation in 2013 into longevity bonuses paid to Wastewater Utility employees found that the bonuses were funded by higher sewer rates. While the investigation turned up no wrongdoing, the committee cautioned Corbitt to communicate better with the committee and the city Board of Directors.
Corbitt was to retire when his replacement is hired - a goal has been set for no later than Sept. 1 - and then he was to be kept as a consultant as needed through December.
Because Corbitt is the head of the utility, the sewer committee has authority over him and will handle any personnel matters involving him. But the utility itself will handle any employment decisions related to Miller.
Jarratt said the utility is waiting for the results of the audit before making any decision. The normal procedure will be followed, including giving Miller the opportunity to attend a pre-termination hearing, in which any findings will be relayed to him, and he will be given the chance to explain himself - if the utility decides to terminate him.
Miller makes $151,562.85 annually, after the 1.5 percent raise took effect this year. He also has several benefits. They are: a 5 percent annual lump sum contribution to a “457” deferred compensation retirement account, a 3 percent contribution to his “401a” retirement account, 85 percent of his monthly health insurance premium is paid, a one-time contribution of $1,200 to his health savings account, and 100 percent of his life insurance monthly premium and 100 percent of his disability monthly premium are paid. He is also enrolled in the Arkansas Public Employees Retirement System.
Today’s 4 p.m. Sanitary Sewer Committee meeting will be in the Wastewater Utility’s headquarters at 11 Clearwater Drive in Little Rock.
Arkansas, Pages 9 on 01/29/2014