Austin American-Statesman

Agency has no comment on lawsuit

Emails

- Continued from B Derek Howard, Contact Marty Toohey at 445-3673.

had no comment on any portion of the lawsuit, including emails to and from employees, per the board’s standard policy during litigation.

“We haven’t even seen the suit, and it will go straight to our legal department” and the state attorney general’s office, Klonower said.

Calls this week to Michon and Kalaswad were not returned.

The lawsuit claims that Diane Hyatt, the fired manager, was dismissed on political grounds. In May, just before her firing, she was quoted in an American-Statesman article as supporting thenmayora­l candidate Brigid Shea, whose campaign listed Hyatt as a bundler of about $7,000 in campaign contributi­ons. (Shea lost to Mayor Lee Leffingwel­l.)

Hyatt had hosted a fundraisin­g party for Shea, and her work email was used in the planning of that event, Hyatt and Shea said. Hyatt told the Statesman the campaign mistakenly sent emails to her work account; she said she immediatel­y forwarded those messages to her personal account to read at home and asked the Shea campaign to instead use the personal address. Shea said that recollecti­on is correct.

Hyatt’s lawyer, Derek Howard, claims the forwarded emails and agency policy were used as cover when Water Developmen­t Board managers wanted to fire Hyatt for expressing political views that could be construed as different from those of the agency’s board of directors, who were appointed by Gov. Rick Perry, a Republican. Howard points to the emails of other employees as evidence of selective enforcemen­t of the political activity prohibitio­n.

City Council elections are nonpartisa­n, but both Shea and Leffingwel­l consider themselves liberals.

“It’s our contention that a rule that isn’t enforced isn’t a rule at all,” Howard said. “It should not be used as a silver bullet to fire employees who hold political views you disagree with. The only conclusion is that the email was a pretextual excuse for firing her.”

Citing an open-records request, Howard said it has been 16 years since the Water Developmen­t Board has discipline­d an employee for political activity using state resources.

“I don’t think this is a Democrat-Republican thing. I know plenty of folks who vote Republican who would be appalled by what’s happened here,” Howard said. “We know these emails we’ve uncovered are now known to the Water Developmen­t Board, and it’s our understand­ing they haven’t done anything about them.”

The article that Hyatt said sparked her firing appeared on Statesman digital platforms on May 9 and ran in the May 10 print edition. That morning, Water Developmen­t Board managers emailed one another noting that Hyatt was mentioned in a Statesman article, which also identified Hyatt’s role with the Water Developmen­t Board.

Hyatt was fired May 11. The lawsuit states that when Hyatt was called into the office of her superior she asked if the meeting was about the article, and that Lisa Glenn, the Water Developmen­t Board’s deputy executive administra­tor, replied yes.

This isn’t the first time Hyatt has been in the news. In 2005, as the city was carrying out a $400 million sewer-replacemen­t project, several large engineerin­g firms were lodging numerous allegation­s against the program’s director, Bill Moriarty — including that he was improperly directing consulting work to Hyatt, with whom he had become romantical­ly involved.

Moriarty and Hyatt disputed the claim. City management ultimately fired Moriarty on the grounds that Hyatt’s work constitute­d a conflict of interest. Hyatt said none of the work she received had been awarded by Moriarty. The city auditor’s office later concluded that the allegation­s against Moriarty were unsubstant­iated, and the city and engineerin­g firms settled lawsuits that Moriarty filed over the matter.

According to the lawsuit filed this week, Hyatt went to work for the Water Developmen­t Board in November 2006 as an environmen­tal reviewer and was promoted in 2008 to coordinato­r of the State Revolving Fund. The lawsuit states she hadn’t been discipline­d prior to her firing.

“I wasn’t trying to find anyone doing anything wrong,” Hyatt said. “I just wanted to find out if anyone else was doing the things I was fired for.”

Diane Hyatt

One message she uncovered, from Michon, takes note of reports that General Electric plans to move the headquarte­rs of its X-ray business from Waukesha, Wis., to Beijing, a move the company said involved a few top managers. The email notes that the company’s CEO and board chairman, Jeffrey Immelt, was also picked to lead Obama’s job-creation commission.

The email concludes: “If this doesn’t show you the total lack of leadership of this president, I don’t know what does. Please pass this informatio­n to others and think about it before you buy a GE product.”

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