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Colorado Springs Utilities Board set to meet with CEO for performance review amid accusations of toxic workplace, high turnover

Aram

COLORADO SPRINGS, Colo. (KRDO) -- After the recent rate hikes for customers, allegations of a hostile work environment, and a high turnover rate, the Colorado Springs Utilities's Chief Executive Officer will answer questions from the Utilities Board this afternoon in a closed session.

The Utilities Board, which consists of members of the Colorado Springs City Council, is scheduled to meet at 1 p.m. Wednesday at the Blue River Board Room in the Plaza of the Rockies building at the corner of Tejon St. and Colorado Ave. According to the meeting agenda, the Board will go into executive session at 2:45 p.m. for the regularly scheduled performance review with Colorado Springs Utilities Chief Executive Officer Aram Benyamin.

Benyamin was appointed by City Council in 2018 to lead the public utility with a salary of $480,000. He was first hired at Colorado Springs Utilities in 2015 as the General Manager of Energy Supply. He previously worked at the Los Angeles Power and Water Department as a Senior Assistant General Manager before coming to Colorado Springs.

According to the Los Angeles Times, Benyamin, who had worked at the utility for 33 years, was placed on administrative leave in 2014 amid controversy related to spending issues and customer services at LA Power and Water. At the time, Benyamin said he was not provided an answer on why he was put on leave. The reporting from the Times highlighted Benyamin's relationship with a union leader.

According to Wednesday's agenda, customer comment is scheduled to start at 1:40 p.m. Each customer has 3 minutes to speak. However, Springs Utilities Board Chair and councilman Wayne Williams says the executive session with Benyamin will be closed off from the public.

"Personnel matters are generally done in executive session," Williams told 13 Investigates on Tuesday. "That is so there will be a free-ranging discussion that is provided by Colorado law."

Williams said the Utilities Board holds performance reviews for the Springs Utilities CEO twice each year.

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 Colorado 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," former Springs Utilities employee Deborah McDaniel told 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.” 

Last week, 13 Investigates requested records for all severance payments to Colorado Springs Utilities 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 Colorado Springs Utilities, the funds for severance payouts come from its overall labor budget, which makes up around 17% of the publicly owned utility's annual budget. The Colorado Springs Utilities annual budget for 2022 was around $1.2 billion.

Colorado 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.

This is a developing story. 13 Investigates will attend the Wednesday board meeting and will update this article as more information comes available.

Watch a stream of the board meeting below:

Follow along with live updates from the meeting with our 13 Investigative Reporter Dan Beedie below:

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