State to probe Papio settlement

Two top state officials — Auditor Mike Foley and Attorney General Jon Bruning — will investigate the City of Papillion's previously secret, $200,000 settlement with ex-Mayor James Blinn's female assistant.

Foley said Friday that his office has the authority to require Papillion to turn over any documents outlining allegations that served as the basis for the six-figure payout from the city's publicly-funded insurance company.

“How can the insurance carrier possibly pay a $200,000 claim without any documentation from the City of Papillion?” Foley asked.

“There doesn't seem to be a whole lot of paper on this thing right now. That's extraordinary, and I have never heard of anything like that. I suspect there has to be an answer, and I intend to pursue it.”

Sarpy County Attorney Lee Polikov, meanwhile, said Papillion City Hall's handling of Blinn's sudden resignation — and now the payment to his former aide — demand public accountability.

Polikov said he asked Bruning's office to look at the settlement. Bruning's spokeswoman, Leah Bucco-White, said the office plans to do so.

The World-Herald on Friday reported the payment to former mayoral assistant Racheal Cascio. A source with knowledge of Blinn's unexpected July 7 resignation said the former mayor quit after Cascio made an allegation of sexual harassment against him.

“There are some issues, naturally, on everyone's mind,” Polikov said. “Why the amount? Why no complaint? Is this public money? Was the settlement done in an open and honest manner?”

Sarpy County Board Chairwoman Joni Jones said she questions whether the county should continue to pay Blinn as a criminal public defender in light of the sexual harassment allegations.

Jones, a Papillion resident, said she supports an outside investigation of the settlement.

“The questions are coming up, and nobody from Papillion is talking,” she said. “Who are we protecting here? I just don't think the people want this swept under the rug.

“I have been concerned since July. I tried to contact Jamie. I left him several messages, and I got no phone calls back. There had to be something there because Jamie Blinn just disappeared,” Jones said.

Gov. Dave Heineman, too, “believes the information (surrounding the settlement) should be public,” said his spokeswoman, Jen Rae Hein.

Polikov said that he has no evidence of any criminal wrongdoing and that sexual harassment, by its legal definition, would not constitute a crime.

The county attorney said he expects the state auditor and attorney general to look into whether Papillion officials and the city's insurer, the Nebraska League Association of Risk Management, acted properly in reaching the settlement with Cascio.

“Their offices are both interested in open government and transparency,” Polikov said.

The settlement agreement was signed by City Administrator Dan Hoins. The city issued a statement late Friday saying Mayor David Black and City Council members “were not asked to vote on this matter.”

Hoins declined to comment on the agreement, calling it a “personnel matter.” Only two City Council members returned calls from The World-Herald.

“I have never been asked to vote on any settlement. It's also important to point out that the city itself did not pay a penny. We pay a (insurance) premium,” said council member Brian Liesveld.

“It was up to the insurance company to investigate and make a decision,” said council member Tom Mumgaard.

Blinn has never provided a public explanation for his resignation. Repeated phone calls seeking his comment on the settlement were not returned.

In the Aug. 28 settlement, Papillion agreed to pay Cascio $200,000. The money came from the city's taxpayer-funded insurance pool, which is made up of 55 cities and towns. The pool's executive director, Michael Nolan, said Papillion filed no written claim for the Cascio settlement.

Papillion also agreed to pay Cascio's COBRA health insurance premiums for the next 18 months and to pay her for 174 hours of vacation time and 120.5 hours of sick leave. Those benefits pushed the total to at least $225,000, the state auditor said.

The city agreed to give Cascio a job recommendation. She pledged to drop any plans to file a lawsuit against Papillion, city staff or former city officials or representatives. She also agreed not to seek a city job again.

The agreement even included a provision on how to respond to inquiries from the news media.

“Should any portion of the information regarding Employee's alleged claims against Employer be disclosed by the press or any other individual or entity, Employer is permitted to deny the allegations and Employee is permitted to say that the matter was mutually resolved to the satisfaction of all the parties,” it says.

Blinn, 40, has never been married. Cascio, 35, who is twice-divorced, began working for Papillion in 2001 as Hoins' assistant, making $30,000 a year.

In October 2005, Blinn created a new post of executive assistant to the mayor and gave Cascio the job and a raise. By October 2008, she was earning $53,050.

The job was abolished when new Mayor David Black took office, and Cascio was reassigned to the recreation department. She has since resigned.

Polikov, the Sarpy County attorney, said he found it puzzling that Hoins and City Council members — but not Blinn — would be informed about the settlement.

“I don't think that I could ever think of crafting an agreement like that,” Polikov said. “Jamie Blinn was obviously a focal point of the whole thing. That just doesn't pass the smell test.”

State Sen. Abbie Cornett of Bellevue, who represents Sarpy County, said she wants the city's insurer and Papillion to provide full disclosure on why the $200,000 payment was made.

World-Herald staff writer Leia Baez-Mendoza contributed to this report.

Contact the writer:

444-1056, john.ferak@owh.com

« Metro/Region

Share