Monday, August 25, 2014

$238,005.54 HLP GM Severance

Recently the General Manager of Heber Power retired. Thanks to a GRAMA request by a Heber 
resident, ratepayers are now able to read the pertinent "Early Retirement Severance Agreement."   
To entice the GM to leave earlier than his requested Mar 2015 departure, he was able to cash in 
unused vacation (11.5 days or $8,286),  sick leave (57.38 days or $41,339), which appears to be 
normal HLP policy.  

Note that HLP gave 8 sick days per year, for many years until it was 'returned' to 12 days last 
year, for the 36 employees.  There is now nearly $1 Million in UNFUNDED accrued benefits.

That total accrual of $49,623.06 was accumulated in his 7-8 years of employment with HLP.

He was also awarded $150,000 in "severance" pay, $30,000 donation to his retirement fund 
AND $4,780.08 for in-lieu-of health insurance payment.   Provisions were made to allow him to 
"use" up his 551 hrs of "2014 vacation and sick leave allotment to extend his retirement date 
(for retirement pay purposes) until November - thereby increasing his retirement pay by over 3%.
rate amount
Vacation, sick hours 551 $90.06 $49,623.06
Paid Holidays 5 $90.06 $3,602.40
In-lieu of insurance $1,593.36 $4,780.08
Consultant services $0.00
Severance $150,000.00
401K $30,000.00
TOTAL $238,005.54
As there are 5 paid holidays during that extra period before officially 
retiring, he will be paid an additional $3,602.40 for not working on those 
days, while on vacation.
What will Mr. Stewart, the now retired HLP GM, be required to do? Nothing!  
****   Wait,  not exactly - if his expertise or knowledge is required  
"to support the  criminal prosecution" etc. against Mr. Furness, he will be 
paid $90.06/hr. plus    expenses.

It should be remembered that the GM was overseer of  Mr. Furness while he was 
embezzling funds, he was the one who signed the checks, approved loans, and was 
responsible for managing Heber Power, operationally and financially.    
(Hundreds of thousands of dollars of loss, litigation and investigation costs)
Interestingly, section 20 of the HLP employee policy manual states:
"Severance pay will not be paid if the Exempt Manager voluntarily resigns,
is discharged for cause, or retires."

Coincidentally, that section also states if a manager is simply "terminated 
without cause," he would receive 3 to 6 months of severance pay.

Oh, about that recent puff piece in the news about his retirement, that was 
required (with his approval of content) in the severance agreement.

Thanks to HLP for releasing the information, a great step forward in the 
needed transparency.

Click here for Wasatch Taxpayers website to view the agreement itself.

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