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Show r Probe alleges thefts at UP&L sites Copyright Inc. ss In todays edition, the Emery County Progress begins a series detailing the results of a investigation by Sun Advocate Staff Writer Steve Helde into alleged Illegal activity at die construction sites of Utah Power & Light Co.s Hunter and Huntington power plants over the past decade. Helde began his investigation while working as editor of the Emery County By STEVE IIEIDE Staff Writer Following a six-mon- th th investigation, the Sun Advocate has uncovered what appears to be illicit activity and graft e within the management of two large construction firms on-sit- that have performed the major work on the Hunter and Huntington power plants for Utah Power & Light Co. Supported by statements from current and former Morrison & Knudsen Construction Co. and Co. Jelco Construction employees, the investigation has repeatedly uncovered what appears to be incidents of theft within the local divisions of the two firms that may have cost UP&L, and in turn Utah of hundreds ratepayers, thousands of dollars in wasted Progress. This first Installment reveals specific Incidents of apparent theft of the Utah by members of Morrison & management time, labor and materials. Ive just reached the point where I cant let this thing go without saying something, said one former M&K employee who construction I asked not to be identified. want to be able to sleep at night, and something just has to be Knudsen Construction Co., the firm under contract by UP&L to build the tower plants. The Incidents were reported to Helde by former employees of M&K Construction who say they were witnesses to the alleged thefts. In die final stages of his investigation, Helde was Joined by Larry Warren of KUTVs Extra. Future Installments of the Joint investigation will Include a look at additional accusations by both current and former M&K employees as well as charges of employee discrimination. about the situation. Incidents reported to the Sun Advocate include the use of done and company . employees material in the construction of employees homes; theft of gas and auto and truck parts; and the use of company employees to repair and M&K maintain personal vehicles. Two participants named frequently in the activities are Charles Gebhardt, a former project supervisor for M&K at the Huntington and Hunter plant sites and currently a vice president at the companys headquarters in Boise, and Doyle Barney, a former Castle Dale mayor who once served as a Mormon bishop, and who is currrently the construction supervisor for M&K at the Hunter plant. Emery County Sheriff Lamar Guymon said he has been aware of the situation for sometime, and has been investigating the reports intensively the past six months. have been investigating the reported thefts and discrepancies at the Hunter and Huntington plants, and hope to We be able to make arrests soon, Guymon said. UP&Ls Darcie White, executive yice president in charge of corporate and public relations, said Tuesday that UP&L has been cooperating with the Emery County Sheriffs Department in investigating a number of the allegations. One of the problems we seem to face here is that there are a and lot of accusations allegations which are either denied or that when the sheriff investigates, end up being blind alleys, White said. The contractor and the company both are supposed to be working under an ethics policy which says that the use of our major equipment for uses other than the purpose intended he said. If are prohibited, these things are going on, then Emery County Wednesday, January Volume 84 No, we need to know about them, or somebody does, so we can do something about it. As far as anyone violating our ethics code, with regards to the misuse of materials and equipment, if the facts are in place, they are subject to termination, White said. We feel there is a lot more form than substance to these allegations. White said that if anyone can concerning the allegations to the company, UP&L will be quick to respond. Its a little frustrating to be hearing all the allegations and not be given anything we can really get our teeth into, he added. When asked if it was possible for illicit practices and graft to continue for a number of years (Continued on Page 2) HtT 26, 1983 information forth bring OP CAITIC COUNTRY imry Cm 4 01 LowrviK J. Water Commission puts freeze on raises changes approved by Elizabeth Hanson News writer by Larry W. Davis Progress Editor Following three years of negotiations, Cleveland and adopted Personnel Policy, county employees become eligible for a merit salary increase on their anniversary date of hiring. The policy was adopted late last year. The commissioners who passed the ordinance establishing the policy also set guidelines for the administration of the policy by a personnel manager. However, that position has yet to be filled although commissioners are expected to begin sifting through applications next town. Old lines will be kept for distribution to outlying districts. North Emery surrenders all franchise claims to the town and will transfer four shares of water Huntington-Clevelan- d stock to the towns for each connection. The 1080 shares involved are valued at $243,000 at $225 per share. The towns agree to pay a lump sum for their share of the existing water loans. This cost was estimated at $50,000, but officials believe it should be less. The towns agree to pay $2.11 per connection a month for the FHA debt North Emery incurred to build the system. For each connection North Emery sells outside the towns, $2.11 per month will be deducted from the towns payment. to Towns pay agree maintenance charge and operation of $3.15 per connection inside the town per month for five years. For each new connection, North Emery sells outside the towns, $3.15 per month will be deducted from the towns payment. Cleveland and Elmo will pay $12.25 monthly for sewer and water. They will deduct $3.25 for administrative purposes and $5.25 to apply on present indebtedness. The district will for expenses. pocket be will given Towns the existing water system inside of the boundaries, including main lines, service laterals, water meters, fire hydrants and valves. The towns agree to line construct the new between Cleveland and Elmo within one year and to have the new system completed and separate from North Emery within three years. $3.74 h County Emery Commissioners have placed a freeze on all merit salary increases for county employees until the county has found a personnel manager to review each merit raise application. The action came in the Jan. 20 commission meeting following a motion by Commissioner Clyde Conover. According to the newly Elmo have been released from ties with North Emery Water. Users Association and free to come under the advantages of Castle Valley Special Service District for water delivery system. The association with North Emery which lasted 10 years will continue for another three while the district constructs an independent waterline for the two towns. NEWUA will continue to provide water for Lawrence and out of city areas and will be able to sell connections outside the cities. Bypass lines will have to be constructed around Cleveland and Elmo at an approximate cost of $90,000. When the work is done, the lines will be turned over to North Emery, The towns will grant permanent easement of NE lines going through the month. Because After several postponements Service Commission., UP&L agree on April hearing dates - SALT LAKE CITY A Public Service Commission hearing on Utah Power & Light Co.s coal mining ventures, postponed and extended numerous times, now is scheduled for April The case, brought by the Utah 4-- 8. of Consumer Committee Services, a watchdog agency created by the state legislature to protect consumer interests, seeks a complete accounting of UP&Ls coal mining activities. Such an accounting would be the first since the electric utility bought its first coal mine in 1972 c to supply coal for its generating plants. We want guarantees from the PSC that UP&L will operate its mines as efficiently as possible, and we wont have to go through all this again, Joseph Ingles, administrative secretary of the Committee, said. James L.Barker Jr., Utah steam-electri- assistant attorney general assigned to work with the Committee, investigating has - charges been of deliberate ...mismanagment, waste, and questionable business relationships by UP&L in the operation of the three mines, e, and Deer Creek in Emery County. UP&L, Ingle contends, could buy coal on the market cheaper than it mines it. The hearing will happen this Wilberg Barker time, predicts, ...does explaining that the PSC not want continuances. more any This matter is important enough and of sufficient public interest involved-includi- ng that all parties UP&L-wa- nt the figures made public, Barker said, "not swept under the rug. A study criticizing UP&Ls coal mining practices and costs was filed last January by Sylvia M. Siegel, a California utility expert contracted Committee situation. by to investigate the the study, by a coal mining expert, will be filed later Another of the lack of a manager, this month, Ingles said. Depositions from expert witnesses and discovery work related to the hearing are ...pretty well done, Barker noted. The first action before the PSC in the case, a pre-heari- conference, was scheduled March 19, 1982. It was postponed, according to a PSC staffer, who dug through the voluminous file on the case. That conference was extended to April, and the next action was an Aug. 2 date which was extended to Aug. 30 then cancelled. An extension of filing time was noted in September. A Nov. 29 hearing date was cancelled, as was a Jan. 24 date. This case began so long ago, its been lost in the shuffle, she said, explaining it, bifurcated, or branched off, from a UP&L case originally initiated in 1981. UP&L has made changes in their mining operations in response to the criticism levelled by the Committee, Ingles noted. We appreciate the changes and improvements UP&L has made, he said, But unless we get an order from the PSC setting standards for the future and requiring changes that need to be made in procedures, it will mean nothing. The company in the future could turn around on the Q.T. if there are no requirements, Ingles contended. Ingles would like to see the PSC set a standard allowing UP&L the market price of coal as its cost. If UP&L can mine coal for the same price they can buy it, let them, Inbles says. "If they they could either purchase coal or mine theirs at a loss and let the stockholders make up that loss-i- ts the companys choice. But electric ratepayers should not have to subsidize a company whose costs are above the market, he declares. This article reprinted courtesy of the Pyramid, Mt. Pleasant, Utah. cant, Commissioner Conover suggested that the freeze be placed on the merit increases until the manager is hired. He further suggested that those raises, once approved, can be made retroactive to the anniversary date. While Conovers Commissioner motion included the freeze, it did not specify making the raise retroaction; however, it did note that all department heads were of to the be notified commissions decision. Conover Commissioner further suggested that once a manager is hired, it would be in the best interest of the county to have regular meetings with the manager, department heads, and the commissioners. Also regarding personnel Commissioner management, Conover suggested that each department head read the new Personnel Policy as soon as possible to eliminate confusion about personnel matters, especially the hiring of part-tim- e help which he said some of the department heads believe does not affect department budgets. County Clerk Bruce Funk was instructed by the commission to inform all department heads of the requirement to read the document and to obtain copies for those needing them. Following that discussion, the commission approved requests by the assessor and recorder for additional help in their offices on a part-tim- e basis. A meeting is being scheduled for these department heads along with other county officials to review the new personnel policies. |