UTA boss' severance package under review by Utah Attorney General's Office

UTA boss' severance package under review by Utah Attorney General's Office

(Utah Transit Authority, File)


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SALT LAKE CITY — The Utah Attorney General's office is reviewing the more than $200,000 former Utah Transit Authority boss Jerry Benson is getting after being fired last month, as well as other transit agency employee contracts that offer similar provisions.

"We're going to look at those on a case-by-case basis, including the Benson contract," assistant attorney general Mark Burns, director of the office's highways and utilities division, said Wednesday.

There are "multiple contracts that have severance benefits" at the UTA, Burns said, adding he has already looked at Benson's deal, but "is not in the position right now to give you a legal conclusion."

He did, however, point out that Benson's contract as president, CEO and general manager contained a clause stating if Benson was terminated without cause, including because his position was eliminated, the severance package is triggered.

Burns said he is not aware of any state agency that awards severance pay.

UTA trustees voted to let Benson go, citing a new law that takes effect next Tuesday that does away with his post. Instead, an executive director will be overseen by a new, three-member management team appointed by the governor by Nov. 1.

The mid-April decision to terminate Benson and pay him nine months of salary — at least $205,500, based on his $274,000 annual paycheck as of 2016 — has frustrated lawmakers behind the governance changes to UTA in SB136.

"We're still looking at what our options are to pull back that severance package because it's just not right," said Rep. Mike Schulz, R-Hooper, the bill's House sponsor. He said the payout could add up to as much as $250,000.

Schultz had already asked the Legislature's legal counsel to determine if the severance payments could be halted because he does not believe the new law mandated Benson's firing.

"It makes me nervous," Schultz said of the board's decision. "If that's the way the board is going to continue to operate, I don't think we can wait until Nov. 1 for this new board to be online."

From last month:

The bill's sponsor, Sen. Wayne Harper, R-Taylorsville, said he shares Schultz's concerns.

"Absolutely, absolutely," Harper said, calling the severance package "a nice parachute" for Benson that "cast a shadow on a career where he did a lot of good for UTA and the public."

Greg Bell, UTA board chairman, said Benson had no interest in staying on in a reduced capacity and was "completely opposed" to all the key changes made in the new law.

"So he was not our guy" to carry out the changes in the new law, Bell said.

He declined to talk about whether Benson would have resigned if the board had not terminated him, a decision made after a closed-door discussion. Had Benson stepped down, he would not have received severance pay.

But asked about the concerns lawmakers are raising about the severance pay, Bell said. "In the reorganization, we're saving that and more. We just disagree," and added that it was the board's decision.

"We fired him. He didn't fire himself. We terminated him," Bell said.

Related:

On Tuesday, the board's executive committee named Steve Meyer, UTA's acting vice president for operations, capital and assets, as the new executive director, a decision that will have to be approved by the full board later this month.

Gov. Gary Herbert has until November to appoint the three new trustees that will take over running UTA and replace the current 16-member board. In the meantime, Bell said the current board will fill that role.

The new law also calls for the attorney general's office to replace UTA's legal department by July 2019. UTA's general counsel, Jayme Blakeley, has already announced he is leaving as of next Tuesday.

Burns, whose division will represent UTA, said after the law takes effect next week, the transit agency's remaining five attorneys will receive a special designation from the attorney general's office.

"I want to keep them on board as long as possible. They're all good lawyers out there," he said, adding that while their compensation is "one of many details we're working on," it's included in the current UTA budget.

Trustees voted last month to allow contracting with former legal counsel, but Burns said he hopes to minimize the need for that "because we hope there will be a smooth transition."

The changes being made to UTA, which also include a controversial name change to Transit District of Utah, have been described by lawmakers as giving the agency a fresh start after years of controversy.

Besides critical legislative audits, UTA also signed a nonprosecution agreement with the U.S. Attorney's Office last year that requires cooperation with an ongoing federal investigation into transit development dealings and federal monitoring.

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