13 Investigates: $400k+ in severance paid to Springs Utilities employees since 2019

COLORADO SPRINGS, Colo. (KRDO) -- On the heels of recent rate hikes that caused significant concerns for both Colorado Springs businesses and families, 13 Investigates learned that Colorado Springs Utilities has paid out more than $400,000 in severance packages to now-former employees of the publicly owned utility.

Last week, 13 Investigates requested Springs Utilities for all for severance payments to employees from January 1, 2019, to March 9, 2022. According to the records obtained on Tuesday, the total payout equals $427,100.80.

Springs Utilities made six payouts since Jan. 2019, with the largest severance payout being the most recent. On March 5, 2022, Colorado Springs Utilities paid out $128,682.24 to the now-former Chief Customer Corporate Services Officer.

According to Springs Utilities, the funds for severance payouts come from its overall labor budget, which makes up around 17% of the publicly owned utilities' annual budget. The Colorado Springs Utilities annual budget for 2022 was around $1.2 billion.

Springs Utilities confirmed ratepayers entirely fund their labor budget, which subsequently pays for these severance payouts. However, the publicly-owned utility says the severance payouts are not driving the higher rate prices.

The rates for Colorado Springs Utilities decreased in February.

"The entire labor budget, or isolating $427,000 in severance payouts over the last three years, is not driving customer rates," Steve Berry, a spokesperson for Springs Utilities, said to 13 Investigates over email. "The day-to-day operational, fuel, and capital costs for running a four-service utility are."

13 Investigates showed the severance payout numbers to Colorado Springs Utilities Board Chair and council member Wayne Williams on Tuesday. He says it is the cost of doing business at a high level.

"That's often the easiest way particularly at a senior level to help someone move on, and to have a mutually agreeable process," Williams told 13 Investigates. "That allows you to get the people you need in charge. So you can get done what needs to be done for the rate payers."

13 Investigates learned people identifying as employees of Colorado Springs Utilities have sent dozens of anonymous emails to elected officials in the government alleging a culture of fear amid a high turnover rate at the publicly-owned utility. Colorado Springs President Tom Strand, who previously served as the Colorado Springs Utilities Board Chairman, believes at least ten Colorado Springs Utilities employees in Senior Leadership have left the organization in the last year.

On Monday, multiple former Springs Utilities employees told 13 Investigates the workplace culture was suppressed, and employees were afraid to go to human resources to report potential conduct violations.

"If you speak up, if you go to HR, if you go to your supervisor, nothing good is going to come from this," Deborah McDaniel said to 13 Investigates. "That’s what held me back from complaining all those years was if I speak up, the likelihood that I am going to lose my job is very high, and when I have spoken up I’ve been labeled as a troublemaker.” 

Berry tells 13 Investigates that is not an accurate portrayal of Colorado Springs Utilities based on his own experience.

"We always encourage our employees to bring concerns to their leaders/managers as a first step and then Human Resources if the situation warrants it," Berry said. "Our CEO also has an open-door policy to encourage employees to schedule time with him if they have concerns and/or suggestions for improvement. Additionally, we've repeatedly shared the City Auditor's tip line with the workforce for them to anonymously report waste, fraud, and abuse."

Since he has campaigned for Colorado Springs City Council in 2019, Williams says he has received emails from alleged Springs Utilities employees. For the now utility board chair, the accusations are concerning and are addressed appropriately.

“I think the important thing to recognize is there are different levels for what someone calls a hostile work place," Williams said. "The EEOC and the Colorado Civil Rights Division have never said it meets that legal standard. That doesn’t mean there may not be people who are unhappy, but that’s a different status.” 

After bringing her concerns to the Colorado Springs Utilities Board, McDaniel filed a complaint through the Colorado Civil Rights Division alleging she was "discriminated, sexually harassed and retaliated by Springs Utilities." The complaint was later dropped when she learned a majority of her examples were past the statute of limitations.

Williams points to the 2021 Employee Pulse Survey Report as evidence against the recent accusations of a hostile work environment at Springs Utilities.

According to the survey, 1,133 Springs Utilities employees participated in the survey. As of this week, more than 1,800 people are employed with the publicly owned utility.

In the survey, nearly ninety percent said the would agree to working at Colorado Springs Utilities if they had to do it all over again. However, one of the worst rated questions asked employees if they have the adequate staff to do their jobs well. According to the survey, more than 40% of the respondents disagreed.

The Colorado Springs Utility board, which consists of Colorado Springs City Council members, is scheduled to meet on Wednesday in Executive Session for the regularly scheduled performance review with Colorado Springs Utilities Chief Executive Officer Aram Benyamin. Colorado Springs Utilities Board Chair Councilman Wayne Williams told 13 Investigates the board will address a number of the workplace concerns and high turnover rate with the CEO during the executive session.

If you have concerns you want to be investigated about Colorado Springs Utilities, email us at 13Investigates@krdo.com.