Norwich — After four months of lengthy closed-door meetings, a special committee of the Connecticut Municipal Electric Energy Cooperative board recommended holding a pre-termination hearing for suspended CEO Drew Rankin, who faces eight federal corruption charges in two indictments.

Rankin was indicted Nov. 8 along with four other CMEEC officials on one count of conspiracy and three counts of theft from a program receiving federal funds in one indictment stemming from CMEEC’s hosting of lavish trips, organized by Rankin, to the Kentucky Derby for dozens of top CMEEC staff, board members, family members and invited guests.

Rankin and former board Chairman James Sullivan of Norwich face the same charges in a second indictment that alleges CMEEC reimbursed Sullivan for nearly $100,000 in personal expenses.

The criminal cases are pending in U.S. District Court in New Haven, and a preliminary schedule calls for jury selection to begin February 2020.

Rankin and former CMEEC Chief Financial Officer Edward Pryor, also indicted on four charges, were placed on unpaid administrative leave Nov. 9. Pryor retired effective Jan. 1.

The special committee of five CMEEC board members — none of whom attended either the Kentucky Derby trips or a 2015 trip to a West Virginia golf resort cited in the indictments — voted unanimously Thursday morning to forward its report to the full board.

The board approved the committee's recommendation that CMEEC General Counsel Robin Kipnis "immediately initiate the pre-disciplinary termination proceedings required by law with respect to Drew Rankin's employment status."

Labor specialist attorney Kenneth Weinstock said Rankin will be provided a copy of the committee's findings for review before the pre-termination hearing, which could be scheduled within the next few weeks.

Kipnis told the board no action is recommended regarding Pryor, because he has retired.

Under a 1985 U.S. Supreme Court ruling, a tenured public employee must receive notice of the charges against him or her and be given a hearing to respond to the charges prior to being terminated, called a Loudermill hearing, named for the Loudermill v. Cleveland Board of Education case.

The CMEEC board voted to keep the entire special committee's report confidential until after the pre-termination hearing with Rankin and a final vote by the board of directors on whether to terminate Rankin's employment.

A summary of the committee's findings contained in a memorandum was released Thursday with recommendations that went beyond Rankin's employment status and included changes in board policies and board oversight of the CEO's activities. One recommendation is to create a board executive committee to meet regularly with the cooperative CEO.

Following Thursday’s vote, the CMEEC board issued a news release and written statement saying the board adopted the committee’s recommendations: “to best serve the interests of our member municipalities and ratepayers in the communities where we operate. We are committed to serving our members by delivering lower-cost energy solutions, consistent with our mission, and restoring the highest standards of organizational integrity.”

Prior to the vote to adopt the committee's recommendations and authorize a pre-termination hearing with Rankin, three CMEEC board members who attended the Kentucky Derby trips — Chairman Kenneth Sullivan of Jewett City, Vice Chairman Ronald Gaudet of Groton and member Louis Demicco of Jewett City — recused themselves and left the meeting room. Kenneth and James Sullivan are not related.

Attorney Eileen Duggan, a labor law specialist hired by the committee, conducted the independent investigation into findings contained in the federal indictments, interviewed CMEEC and wrote a report presented to the committee. Duggan concluded that the CMEEC board "can institute disciplinary action up to and including termination of employment for 'cause,'" the summary stated.

At its annual meeting Nov. 15, CMEEC named Rankin as CEO in a list of 2019 corporate officers, along with re-electing three top board officers who had attended the Kentucky Derby trips, sparking public criticism in light of the indictments. At the time, CMEEC officials said they could not terminate Rankin without due process and established the special committee to investigate his actions as described in the indictments.

c.bessette@theday.com