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13627I 2 RESOLUTION NO. 13,627 3 A RESOLUTION TO STATE THE DISAPPROVAL OF THE LITTLE 4 ROCK BOARD OF DIRECTORS OF THE GRANT OF BONUSES TO 5 LITTLE ROCK WASTE WATER EMPLOYEES MADE AFTER FEE 6 INCREASES WERE APPROVED TO SUPPORT THE ISSUANCE OF 7 BONDS REQUIRED TO ACCOMPLISH COURT - MANDATED 8 CHANGES TO THE LITTLE ROCK SANITARY SEWER SYSTEM; TO 9 DIRECT THE LITTLE ROCK SANITARY SEWER COMMITTEE TO 10 INVESTIGATE THE MANNER IN WHICH THE BONUSES WERE AP- 11 PROVED AND TO REPORT THE FINDINGS OF THE INVESTIGATION 12 TO THE BOARD OF DIRECTORS ON JANUARY 22, 2013; AND FOR 13 OTHER PURPOSES. 14 15 WHEREAS, the Board of Directors approved significant rate increases for sanitary sewer charges, to 16 support the issuance of bonds required to fund improvements mandated by a Federal court settlement 17 against the Little Rock Waste Water Utility, after it was assured that the increases were only the amount 18 required to meet the mandated improvements to comply with state and federal environmental laws; and, 19 WHEREAS, prior to the end of 2012 it was reported that various employees of the Little Rock Waste 20 Water Utility would receive bonuses that were not otherwise a part of the utility compensation plan, and 21 information as to the intention to make such a payment was never shared with the Board of Directors, of 22 City officials; and, 23 WHEREAS, the Little Rock Sanitary Sewer Committee is appointed to oversee the intra -city 24 operations of the Little Rock Waste Water Utility and should have made this information available to the 25 Board of Directors during the review of potential rate increases; and, 26 WHEREAS, it is the understanding of the Board of Directors that the Little Rock Sanitary Sewer 27 Committee was not clearly informed of the intention to provide these extra salary benefits to Utility 28 employees until December 2012; 29 NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE CITY 30 OF LITTLE ROCK, ARKANSAS: 31 Section 1. The Board of Directors states its disapproval of the payment of bonuses to employees of 32 the Little Rock Waste Water Utility as recently reported. [Page 1 of 21 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 Section 2. The Board of Directors directs the Little Rock Sanitary Sewer Committee to investigate why information about these bonuses was not shared with the Board of Directors when it considered whether, and to what extent, to increase the rates for sanitary sewer services. Section 3. The Board of Directors asks that the Little Rock Sanitary Sewer Committee consider appropriate disciplinary action if it finds that the possibility of the proposed bonuses was known to utility management at the time of the requested rate increases, yet no information about the bonuses was shared with the Board of Directors. Section 4. The Board of Directors directs that the Little Rock Sanitary Sewer Committee report to the Board of Directors by January 22, 2013, the actions it has taken, and the findings and conclusions it has reached, in response to the directives of this resolution. Section 5. Severability. In the event any title, section, paragraph, item, sentence, clause, phrase, or word of this resolution is declared or adjudged to be invalid or unconstitutional, such declaration or adjudication shall not affect the remaining portions of the resolution which shall remain in full force and effect as if the portion so declared or adjudged invalid or unconstitutional were not originally a part of the resolution. Section 6. Repealer. All laws, ordinances, resolutions, or parts of the same, that are inconsistent with the provisions of this resolution, are hereby repealed to the extent of such inconsistency. ADOPTED: January 8, 2013 ATTEST- APPROVED- 1 y, City Clerk Mark Stodola, Mayor A ROV A TO LEGAL FORM: Thomas M. Carpenter, Ci Attorney H H H H H H H H [Page 2 of 21