The Arizona Republic

Ex-agency chief sues state over his firing

- CRAIG HARRIS AND YVONNE WINGETT SANCHEZ THE REPUBLIC AZCENTRAL.COM

Brian McNeil, former director of the Arizona Department of Administra­tion, is seeking nearly $1.5 million from the state in a wrongfulte­rmination claim that alleges former Gov. Jan Brewer’s administra­tion engaged in unethical conduct.

Among the allegation­s in the 94page claim — a precursor to a lawsuit — is that high-ranking officials within Brewer’s administra­tion engaged in a “legislativ­e ploy” to overturn a $3 billion mental-health contract.

The claim also accuses Brewer of quietly giving staff raises that were outside state policy, despite publicly cracking down on large raises given to certain employees of the Public Safety Personnel Retirement System.

The claim further contends that Brewer staffers deliberate­ly dragged their feet on the release of public records to the media, as opposed to an attempt “to be in compliance with the letter and spirit of Arizona law.”

Brewer, who left office in January, declined to comment on McNeil’s claims.

McNeil, whom Brewer fired in late October, also says in his claim that he was terminated without explanatio­n and was denied the opportunit­y to respond to “unfounded” allegation­s of racist behavior and sexual misconduct toward a female employee.

Shortly after Brewer fired McNeil, her spokesman, Andrew Wilder, released a U.S. Equal Employment Opportunit­y Commission complaint by that employee that alleged McNeil had discrimina­ted against her.

McNeil’s claim contends that the state’s decision to “disclose the unsubstant­iated and false allegation­s” to the media was motivated to discredit him because he had fought the Brewer administra­tion over the misuse of public funds and government waste.

McNeil declined comment when reached by phone Friday.

The claim asserts that McNeil, who also served in the military, had his reputation damaged by the firing, tarnishing a long and distinguis­hed career in state government.

The claim seeks $1.46 million, including $500,000 for damage to reputation and $250,000 for emotional distress.

In addition to seeking monetary damages, the claim provides a rare public peek into the inner workings of the Governor’s Office and allegation­s of bare-knuckle politics in which Brewer rewarded friends while overlookin­g public policy or state law.

One of the biggest controvers­ies centered on a $3 billion state mentalheal­th contract awarded to Mercy Maricopa rather than former provider Magellan Health Services.

The claim contends that Brewer had been upset that Mercy Maricopa had won the bid. In March 2014, according to the claim, a lobbyist told McNeil that Brewer’s chief of staff, Scott Smith, authorized a legislativ­e ploy to get the contract overturned and awarded to Magellan Health Services.

In late March 2014, Magellan made a last-minute attempt to have the Legislatur­e derail the contract, but it didn’t work.

The claim also alleges that Joe Sciarrotta Jr., Brewer’s legal counsel toward the end of her tenure, tried to influence the decision-making process in favor of a Magellan contract. Brewer at the end of her term appointed Sciarrotta as a judge to Maricopa County Superior Court. Sciarrotta could not be reached for comment.

The claim also contends that Brewer engaged in a “bait and switch” in regard to her personnel-reform initiative­s, which imposed strict rules to follow in granting raises for state employees.

In summer 2014, McNeil ordered a rollback of inappropri­ate raises that had been given to some staff members at the Public Safety Personnel Retirement System without ADOA approval. The raises were first uncovered by The Arizona Republic, forcing the retirement of PSPRS Administra­tor Jim Hacking.

McNeil claims he discovered through his office’s investigat­ion of PSPRS that other state agencies, including the Governor’s Office, also had given out improper raises without ADOA approval. His claim says Kathy Peckardt, Brewer’s deputy chief of staff and a key player in advancing the governor’s personnel-reform agenda, pushed him to “suppress” those records.

Contacted by The Republic, Peckardt declined to answer questions, saying, “I can’t comment on pending litigation.” Brewer elevated Peckardt to head of the ADOA after she fired McNeil. Peckardt retired at the end of March.

The claim describes “significan­t friction” between McNeil and the Governor’s Office over her state parks director’s nepotism. The Republic reported at the time that then-Parks Director Bryan Martyn had hired his three sons and increased the pay for their positions.

McNeil’s claim says Brewer had no intention of disciplini­ng Martyn over the matter, but she eventually gave him a three-week suspension after McNeil expressed outrage and pushed for harsh discipline. Newly elected Gov. Doug Ducey did not retain Martyn as parks director.

Kraig Marton, McNeil’s attorney, wrote in response to questions from The Republic that McNeil had “an extremely limited relation” with Brewer during his tenure as ADOA director. Marton wrote that McNeil’s relationsh­ip with Smith “started off positively, but in time their relationsh­ip became strained.”

Asked why McNeil did not speak publicly before he was terminated about the improper behavior he now alleges, Marton wrote, “It is true that things happened that troubled Mr. McNeil while he was in state government, but he did not react or act at the time because he hoped they would get better. Also, on a number of occasions, bad results were avoided based on the hard work and diligence of McNeil and some other state employees. McNeil’s intention in discussing the matters now is to share some perspectiv­e on the additional impact on him resulting from the poor behavior and practices of the governor’s most senior staffers.” “It is true that things happened that troubled Mr. McNeil while he was in state government, but he did not react or act at the time because he hoped they would get better.”

KRAIG MARTON

ATTORNEY FOR FORMER STATE OFFICIAL BRIAN MCNEIL

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