MUD Cuts Perks; Rate Hike on Hold
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Over $219,000 in perks, including $32,000 worth of free coffee is gone and a natural gas rate increase is in limbo.
Following an exclusive investigation by Nebraska Watchdog the Metropolitan Utilities District (MUD) Board of Directors today put a proposed 3.3% gas hike for 2010 on hold, approved a 2.3% water rate increase, and cancelled thousands of dollars in discretionary expenditures.
Those expenditures, expenses which the utility could cut without directly affecting services, range from $4,380 for golf, bowling, and basketball leagues to $32,445 for the annual company picnic.
During MUD’s regular monthly meeting members of the public criticized the utility’s spending practices. Doug Kagan, of Nebraska Taxpayers for Freedom, asked if “gold plated sirloin” was served at the picnic.
Another perk that came under fire is the company car, a 2008 Jeep Grand Cherokee, that is driven by MUD President Tom Wurtz. Paul Meyer, who is retired said, “You can get around in a Ford Focus.” Wurtz and four other top managers at MUD receive a total of $23,285 to lease five vehicles. The board agreed to examine those lease agreements at a later date.
Tom Wurtz, MUD President
Last month Nebraska Watchdog uncovered more than a dozen perks totaling $265,994.
Attorney Bob O’Connor, who represents union employees that work for the utility, warned the board that some of the perks are part of the collective bargaining agreement between the union and MUD and cannot be eliminated without union approval. Noting the board was ready to cut a $57,000 tuition assistance program and a $40,000 wellness program O’Connor said MUD was creating, “Fat, dumb, and unhappy employees.”
The board voted to keep the tuition program but the wellness program was eliminated.
Two other discretionary expenses, $6,215 for a recognition dinner and $500 for retirement cakes, were also approved. Board member Tim Cavanaugh, who is concerned that eliminating some perks could hurt employee morale, voted to keep the cakes and said he’d put in $200 of his own money to help pay for them.
Board member Dave Friend, who has been critical of the discretionary expenses, said with rate increases coming he could not vote for any of the discretionary items.
Nebraska Watchdog’s investigation revealed that many of the perks have been doled out for the last 10 years, costing ratepayers an estimated $2 million. Some board members admitted they didn’t even know about some of the perks including $2,500 for the children’s holiday party. Funding for the party was eliminated.
As for the gas rate hike, if approved by the board, the average residential customer’s bill would have jumped $21.97 a year for an annual payment of $694.84. The rate hike amounts to just over $7 million. Board Chairman Mark Doyle who voted against the increase told MUD management he wants to see what if any other options are available before he votes for higher gas rates. That vote could come as soon as the board’s next meeting which is scheduled for December 18th at 8:15 in the morning.
The water rate increase will find the average residential customer paying $4.32 more per year.
Other discretionary expenses that were eliminated:
Flowers-$8,000
United Way Loaned Executive-$6,800
Service Awards-$39,350
Veterans Club (MUD retirees)-$3,000
Flower seeds for water conservation-$10,000
Rotary Club dues-$4,231
Service Award Recognition Dinner-$13,200
Editor’s note: to see Nebraska Watchdog’s initial report on this topic click here.
Reported by Joe Jordan, joe@nebraskawatchdog.org
Posted under News, Omaha Government.
Tags: Bob O'Connor, Dave Friend, Doug Kagan, Mark Doyle, Metropolitan Utilities District, Tim Cavanaugh, Tom Wurtz
6 Comments For This Post So Far
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7:08 pm on December 2nd, 2009
$219,000 in perks were cut .However, the gas rate hike would be 7 million. Obviously, cutting perks, some of which are excessive and unnecessary, some of which are important to employee morale and even cost effective, such as a wellness and fitness program, won’t make much of a dent in the rate hike. I believe a good outside performance audit would uncover some serious waste and inefficiencies at MUD.
8:46 pm on December 2nd, 2009
I was there today too and shared my frustrations as a Taxpayor/Ratepayor and I was offended that Bob O’Connor was allowed to get up and make comment after the Public Hearing was closed. That was totally out of order. If he’s so worried that we’re making Fat, Dumb & Unhappy employees as if that would be our fault, then maybe I’ll reverse my position and recommend we keep all the free coffee, cake, picnics and dinners (which apparently were all part of this Wellness Program) and they can forego the 3.9% Pay Hike, which was 1.7% more than the Inflation Rate as measured against the CPI. Obviously these employees are not motivated by money. The MUD Board got way off track today. MUD is NOT a private company. It’s a Public Utility and by the very definition of utility should stick to providing CORE services. They’re not in the Education Business, the Health Club Business or the Pastry Industry. If the Union wants a Picnic they should throw it themselves…pot luck…and if the Union’s happiness & self-esteem is based on getting some Appreciation Certificate from a governmental body at some annual dinner then they have other issues to deal with. These things surely won’t make a big dent in the Rate Hike but it’s our money being spent friviously and no progress is going to get made without first having the right attitude. Tom Wurtz asked me not to get mad but the more I think about it the more offended I become! So choke on your angel food perks Bob O’Connor, we’re trying to keep a roof over our families heads.
1:33 pm on December 4th, 2009
I am stunned at the hypocrisy as demonstrated by two MUD board members, Dave Friend and Tim Cavanaugh, both retired Omaha Police Officers.
If Doug Kagan or Joe Jordan want to investigate who is really fleecing the tax payers, please check into their pensions. Are people aware that Friend and Cavanaugh, in addition to their overly generous pensions from the city, are also on the public till in their 2nd careers? Friend was hired as the head of security at Metro Tech’s campus, and Cavanaugh is the Chief Deputy in the County Treasurer’s office. So in addition to their obscene city pensions and sweetheart setups in their 2nd jobs (Friend used his connections with a Metro board member to get his gig while Cavanaugh was hired by his old subordinate John Ewing in the treasurer’s office) each of them, with the salary they earn as MUD board members, are “triple dipping”.
And now, these two men, who get fat off the the public trough, not from one, not from two, but from THREE different organizations at tax/ratepayer expenses, who have ZERO business experience between them, now have the chutzpah to cut employee benefits in the name of saving money for the ratepayers???? For the love of God, give me a break!!!!!!!
I hope Joe Jordan investigates this absurdity and exposes these two hypocrites for who they really are-retired cops living high off the public hog(s).
6:39 pm on December 4th, 2009
For years MUD management has been getting rid of job positions, mostly through attrition so that it was nice & quiet and orderly. Automation and outside contracting were supposed to cover the work instead. Meanwhile, the city continues to grow. And so do the number of gas and water leaks from age. And the only growth area at M.U.D. is the numbers in management, in a publicly owned company that was already inexcuseably management heavy. M.U.D. now has a computer department larger than most of the gas & water departments. Job openings are most likely to be in the Safety, Security, Human Resources or I.T. departments instead of anything directly concerning Gas or Water. M.U.D. is the prototype of a mismanaged company full of cronyism and meddling administrators when it really needs more people who can use tools and do the work of delivering gas and water to it’s customers economically. Ultimately, I believe the board members are most responsible and have gotten much to friendly with M.U.D. management and a rubber stamp. This “perk” elimination is really just a smoke screen for what really needs done to not only save ratepayers money, but also make M.U.D. a better company for both it’s customers and it’s employees. Bring on that independent audit!