Grand Haven BLP manager resigns amidst whistleblower, campaign finance allegations

GRAND HAVEN — The manager for the Grand Haven Board of Light and Power has submitted his resignation amidst an ongoing independent investigation brought forward by a whistleblower into the conduct of the utility.

GHBLP Manager Dave Walters issued a statement at the utility's monthly meeting Thursday, Oct. 19, saying he was giving a 90-day notice of his retirement, which will be effective Thursday, Jan. 18.

Earlier this week, the Grand Haven City Council voted to approve the hiring of attorney Michael Homier, of Grand Rapids-based Foster Swift, to lead an independent review of the whistle-blower allegations, which include claims the utility:

• Conducted a coordinated attempt to destroy documents to circumvent a Freedom of Information Act request.

• Repeated false and misleading statements to employees regarding a proposed charter amendment to dissolve the BLP.

• Attempted to avoid compliance with the requirements of the Open Meetings Act.

• Pressured employees to sign a letter to contribute funds and distribute door signs, all opposed to the charter amendment — potentially in violation of state law.

There've also been allegations against Walters, including violation of state campaign finance rules that don't permit public entities and employees to advocate for the outcome of a political campaign.

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A grassroots organization, the Board of Light and Power Charter Change Coalition, announced in April its intention to have a charter amendment placed on the upcoming November ballot for city voters to approve or reject. If passed, the amendment would dissolve the GHBLP and transition the utility into a city department.

There've been at least two complaints filed with the Michigan Secretary of State Office against the GHBLP. One alleges the board “used public funds or resources for campaign purposes” and “used public funds to distribute misinformation” via mailers and advertisements that contain “non-factual information,” according to a copy of the complaint obtained by The Sentinel.

The other alleges Walters overstepped his informative role during a board meeting Sept. 28 by “using a public office space, funds, and property for campaign purposes.”

The whistleblower investigation is expected to take about a month to complete; as of publication, it wasn't known if the Michigan Secretary of State Office has responded to the campaign finance allegations.

In his statement to the GHBLP on Thursday, Walters said he considered his resignation a "constructive discharge or wrongful termination" of his employment agreement, saying he was "left with no other alternative at this point given recent developments and actions."

During a meeting of the Grand Haven City Council on Sept. 18, where it first authorized the city manager to seek an attorney to investigate the whistleblower claims, Walters spoke during public comment, arguing his own “whistleblower complaint” against GHBLP Board Member Andrea Hendrick earlier this year was never properly investigated.

When asked for documentation of Walters' complaint, GHBLP Board Chair Michael Westbrook told The Sentinel in a Sept. 30 email: "The general manager’s longstanding whistleblower complaint was filed appropriately and was in the process of being investigated confidentially as appropriate."

He did not provide documentation on specific allegations from Walters about wrongdoing by Hendrick.

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Hendrick, who is currently running for mayor, did not respond to an Oct. 20 request for comment.

Walters went on to say in his resignation letter that he will "work amicably with the board to reach a fair and equitable settlement."

Westbrook sent a statement Friday praising Walters' time with the utility.

“I want to thank Dave Walters for his excellent service to the Grand Haven Board of Light and Power, and the entire region as a whole," Westbook wrote to The Sentinel. "The outpouring of support he received from the public at our board meeting immediately after his announcement is testament to his legacy of exemplary service."

Westbrook said Walters' decision was, in part, affected by charged political discourse over the past several months.

"I will tell you the politically charged environment that contributed to Dave’s decision to retire needs to stop," Westbrook said. "Politics should have no place when it comes to ensuring people have life-sustaining power.”

In an additional statement sent over the weekend to The Sentinel, Walters said city council was "quite premature" in announcing the whistleblower complaint and need for an independent investigation and insisted his "claims against the board, as well as individual members of it, are not being handled in such a cooperative manner by all board members."

"Regardless, the board and I have agreed to completely cooperate with the independently assigned investigator to ensure these new claims are appropriately reviewed and addressed," Walters wrote.

In a second email to The Sentinel dated Oct. 21, Walters said the GHBLP board went into closed session at its Thursday, Oct. 19, meeting to discuss a severance agreement for him and alleged the board approved that agreement in closed session.

If the board did so, it would be a violation of Michigan's Opens Meetings Act, as all official actions by the board must take place during open meetings.

Despite opting to resign, Walters told The Sentinel there's an "increasing possibility of a wrongful discharge claim against the board," although he didn't elaborate on whether he plans to take legal action.

Field Reichardt, one of the BLPCCC volunteers, urged the board in a Friday statement to wait on finding Walters' replacement until after the charter amendment vote is decided.

“I strongly urge every Grand Haven voter to vote 'yes' on the amendment in the coming election," Reichardt wrote in an email to The Sentinel. "The charter amendment has so many positive changes for our city, not the least of which is a much more transparent structure.”

— Sarah Leach is executive editor of The Holland Sentinel. Contact her at sarah.leach@hollandsentinel.com. Follow her on Twitter@SentinelLeach.

This article originally appeared on The Holland Sentinel: Grand Haven BLP manager resigns amidst whistleblower allegations