LRW asked the city to approve a rate increase for all of it's customers to meet Sierra Club project requirements and maintenance costs, then approved a one time bonus for all of it's employees including executives.
Following the payout, city leaders asked LR Sanitary Sewer Committee (LRSSC) to investigate the $1250 payments given to 189 employees in December 2012, months after city directors approved rate hikes in June 2012 without knowing those extra payments were even being discussed.
LRW's CEO Reggie Corbitt said he did not need the city's approval to move forward with the so-called loyalty payments but he did need to come up with a way to compensate his employees. There hadn't been any raises in two to three years and there was hiring freeze due to a lack of funds. The board disagreed with the way Corbitt decided to distribute the payments without disclosing the move.
Following their investigation the committee is demanding more transparency from the CEO in the future. There will be no merit raises in 2013 at this point and Corbitt announced he is stepping down December 31, 2014.
The LRSSC will begin the process of of finding a replacement soon.