First it was the City Hall sex scandal. Then it was Solid Waste’s Moonlighting Madness Sale. Now the city is mopping up another fine employee mess, this time at Redding Electric Utility.

What started four years ago as a quiet internal review of the utility’s Customer Service Division to improve systems caused a cascade of events that ended last month in a heap of hard feelings, labor-relations conflicts and secret reports.

In 2004, the city hired a Sacramento consultant to survey the customer service at REU. That resulted in an internal customer-service improvement plan that was put in place in 2005.

But the changes did not sit well with some of REU’s 170 employees. In fact, employee backlash was so bad that certain new ways have since been reversed and the old ways put back.

The city had anticipated resistance to core changes and knew a culture shift would take some time.

“We had a number of discussions and issues with SEIU (Service Employees International Union) about whether the changes were affecting working conditions and morale and so on,” City Manager Kurt Starman said recently.

But as time wore on and employees continued to complain about one thing and another, the city hired Diane Davis Investigations in Redding “to evaluate current employee concerns,” the city said.

The Davis investigation of labor issues began several months ago and wrapped up July 18.

“The investigation was not initiated because of allegations of misconduct,” City Attorney Rick Duvernay said in a statement. “The investigation did not reveal any misconduct and did not result in the imposition of any discipline.”

A July 22 letter (page 1) (page 2) (page 3) from REU Director James Feider and Personnel Director Linda Johnson to the union outlines certain changes stemming from chronic employee concerns, including:

– A traditional chain of command rather than a previous “matrix model” that had employees reporting to multiple people.

– A promise of performance evaluations from first-line supervisors.

– An end to “records of discussion” file notes about employee errors.

– An end to limits on lunchtime social interaction between supervisors and employees.

It says the final investigation report was shared only with the utility director, personnel director and the city attorney.

It finishes with a rather pointed suggestion that union members should complain to the chain of command before involving the union or the personnel department, even though city policy explicitly says unwelcome behavior is reportable at any level of the organization or to outside federal and state agencies. Click here to see full policy.

“I’ve heard employees aren’t all that happy with the outcomes, but we’re trying,” Johnson said Monday. “Since ‘99 when I arrived here, we’ve been dealing with customer service concerns. It’s a hard job, and customers are sometimes mad at you. I’m as dedicated now as I was then about improving things. There are things I can’t change, but the director and I are working hard to make them as equitable and fair as possible if we know about them. If there are more concerns, we want to know. We want morale to get better.”

* * *

A rumor persists that what really prompted the Davis investigation was sexual misconduct or harassment reminiscent of recent City Hall staff misbehavior.

Starman said that isn’t true.

Rather, he said, an employee decided to leave her job, and expressed complaints on her way out about an uncomfortable work atmosphere.

“She had an allegation about the work environment,” he said.

Asked if it was characterized as a “hostile working environment,” often code for sexual harassment or discrimination, Starman said no, it was less than that — “more of an unpleasant environment or situation. I would say it was tense.” He declined to be more specific.

The Davis investigation checked out concerns of harassment or hostile conditions but nothing was substantiated and no one was blamed, he said.

“We found no violations of local, state or federal law or policy. So, no. No disciplinary measures were taken.”

* * *

It was said that during the investigations, statements and reports were kept so confidential that employees had to sign confidentiality agreements to get written copies of their own statements.

“Sometimes we do require that,” Starman said. “If we give an employee a report which could be copied or distributed to 20 other people, it then would in effect become a public record. We believe that some personnel matters require a certain level of privacy protection by law and so are not public record. So, yes, sometimes we ask that.”

For the same reasons of employee privacy, the city attorney says he will not release the investigation report.

Duvernay said the city “has determined that the report is exempt from disclosure. … With very limited exceptions involving employee misconduct, courts have recognized there exists a strong public policy in the law against disclosure of personnel records.”

* * *

Feider characterized the Davis investigation as the latest in an ongoing attempt to improve business practices and customer service ever since ‘99, and that included the Y2K rollover.

“In personnel management kinds of issues, there are always challenges and always opportunities,” he said. Beyond that, he said, he wasn’t at liberty to discuss confidential findings. “From my perspective, I don’t care to comment.”

Feider is to retire from his utilities director post on Oct. 3, which the city announced in a July 1 news release.

Feider said the timing of his retirement had absolutely nothing to do with the REU investigation. Starman echoed that: “No, he’s been thinking about retirement for quite a while,” Starman said.

* * *

This is at least the fourth city investigation and personnel upheaval in the last 12 months.

Late last year, high-level supervisors resigned in disgrace and lower-grade employees were disciplined after revelations of a series of sexual relationships in City Hall rooms and corridors on company time. The city released a heavily redacted investigation report upon court order, in April.

In the spring, the Convention Center manager vanished for a couple of weeks, then resigned amid reports of a management style that perhaps included abusive behavior and excessive drinking at after-hours events. The city released a heavily redacted investigation report upon court order, in July.

During the summer, the city found a widespread pattern of employee theft and resale of off-limits materials dumped at the Solid Waste Division Transfer Station. The city released a heavily redacted investigation report in August.

Brewer can be reached at kellyb.anewscafe@gmail.com.

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