Disciplinary decision on hold while utility slush fund investigation continues in Port Angeles

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PORT ANGELES — Disciplinary decisions for two electric utility workers who allegedly were untruthful during a State Patrol investigation into a scrap metal slush fund have been put on hold, a city official said Thursday.

The State Patrol has extended its investigation into a bank account that funded employee get-togethers with proceeds from recycled copper, brass and other scrap that was intended for the garbage.

Decisions stemming from recent disciplinary hearings for Light Operations warehouse worker Sean Hairell and Light Operations Manager George Drake will be made after the State Patrol completes its investigation, Port Angeles Assistant City Attorney Heidi Greenwood said.

“We anticipated having a decision early this week,” Greenwood said.

“Then we got notified that there was going to be further investigation.”

More information

State Patrol Detective Krista Hedstrom, who conducted a five-month review of the alleged improper use and misappropriation of public property by city electric utility employees, said additional information came forth after the allegations were reported last month in the Peninsula Daily News.

“There were a couple of people that came forward after they read the article in the paper,” Hedstrom said Thursday.

“What I’m doing is following up on that.”

The original report included evidence of a “City Light Slush Fund” bank account that was at least 21 years old.

The account was funded by proceeds from employees cashing in recyclable fuses to pay for Christmas and retirement parties and potlucks, according to the state investigation.

Hedstrom said Hairell and Drake had been untruthful during the investigation.

Port Angeles City Manager Dan McKeen was scheduled to preside over disciplinary hearings for the two longtime electric utility workers Feb. 22.

Hairell, a 10-year employee, was placed on paid administrative leave Feb. 11.

Drake, a 26-year Light Operations worker who was appointed to the utility’s top spot in 2013, was not placed on leave.

Their employment status had not changed as of Thursday pending the results of the investigation, Greenwood said.

Possible action

Action against Drake and Hairell could range from counseling to termination, City Human Resources Manager Abbi Fountain told the PDN last month.

The original investigation recommended no criminal charges.

The Jefferson County Prosecuting Attorney’s Office will make a charging decision after the supplemental report is complete.

Hedstrom said she planned to forward the report to Jefferson County prosecutors within the next two weeks.

At the request of Clallam County Prosecuting Attorney Mark Nichols, Jefferson County Prosecuting Attorney Michael Haas agreed to review hundreds of pages of investigative reports by the Port Angeles Police Department and State Patrol.

“They’re performing an independent review,” Nichols said Thursday.

Haas said the review was being handled by a deputy prosecuting attorney.

According to a Dec. 17 summary of the State Patrol investigation, the slush fund bank account at First Federal — or “copper fund” — dated back to at least the early 1990s and contained up to $1,100 before it was closed in January 2015 after city police began an investigation into missing light poles.

City police “found no criminal activity” over employees taking the poles that would have otherwise been sent to the landfill, according to the 14-page summary.

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Reporter Rob Ollikainen can be reached at 360-452-2345, ext. 56450, or at rollikainen@peninsuladailynews.com.

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