The front entrance to both Traer City Hall and Traer Municipal Utilities (TMU) pictured on Wednesday, June 25. PHOTO BY RUBY F. MCALLISTER

Telegraph Note: This story will publish in the Friday, July 4 print edition of the newspaper.

TRAER – The Traer Municipal Utilities (TMU) Board has hired a new general manager, one with a familiar face but at a significantly higher salary – former TMU Trustee Eric McEwen.

During the April 3 TMU board meeting, longtime GM Pat Stief announced his plans to retire effective June 30 from the locally-owned, public utility which manages electricity, water, gas, sewer, and internet services for Traer and across a 42-mile rural distribution area in northern Tama County. As part of his announcement, Stief advised the trustees of the need to form a search committee for his replacement. The resulting committee included Chairman Nick Podhajsky, McEwen, and Stief.

The following month, during the May 1 regular board meeting, Stief informed the trustees that a resume had been received from a member of the hiring committee, McEwen.

“Having applied, McEwen is no longer able to sit as a member of the hiring committee,” the meeting’s minutes read. “Unsure if any other board member would be able or willing to be a part of the hiring committee, Stief thought it might be beneficial to ask a citizen of the community, and former TMU Board President, to sit as a member of the hiring committee. Joe Morris was contacted about the opportunity and [said he was] interested in doing so if needed.”

From left, Eric McEwen, then-newly appointed TMU trustee; TMU General Manager Pat Stief; and then-newly elected TMU Chairman Nick Podhajsky pictured together back in January of 2018 at Traer City Hall. McEwen will take over the job of GM beginning this July following Stief's retirement. TELEGRAPH FILE PHOTO

A motion was subsequently approved that evening to appoint Morris to the committee. Following discussion, trustees agreed to continue accepting applications for the GM position through Monday, May 12. Meanwhile, McEwen retained his position as a TMU trustee.

On June 5, the board – including Podhajsky, Dave Barnes, Anita Dostal, and Sara O’Brien but minus McEwen and Stief – entered into closed session as part of the regular monthly meeting, citing Iowa Code 21.5.1.I: “To evaluate the professional competency of an individual whose appointment, hiring, performance, or discharge is being considered when necessary to prevent needless and irreparable injury to that individual’s reputation and that individual requests a closed session.”

The board entered back into regular session some 50 minutes later; Podhajsky then announced the hiring committee’s recommendation to hire McEwen as the next GM. A motion to hire McEwen while also holding a special meeting on June 11 to discuss his terms and salary was unanimously approved by roll call vote. According to Traer City Hall, a total of four individuals were interviewed for the GM position. Roughly 20-some applications were received in total for the position, Podhajsky told the newspaper in an email.

The special meeting took place at 2 p.m. on Wednesday, June 11. Barnes, Dostal, O’Brien, and Podhajsky were in attendance as members of the TMU board, while McEwen was present as a citizen, not a board member, per the minutes.

Stief was also not present during the meeting but had provided trustees ahead of time with details on holiday time, sick leave, and PTO. “Those [terms] were discussed and agreed upon by both Eric (McEwen) and the board,” the minutes state.

The trustees then turned to the topic of wages.

At the time of the special meeting, McEwen, 40, of Traer was employed as a production supervisor at Corteva Agriscience in Dysart. While he grew up in Eldora, McEwen’s grandparents, the late Richard and Jean McEwen, were longtime Traer residents.

Per a Traer-Star Clipper article published in November of 2017 ahead of that fall’s municipal elections in which McEwen was running for a seat on the Traer City Council – a seat he ultimately lost – McEwen has lived in Traer since roughly 2004.

“I worked for Traer Manufacturing until it shut down,” McEwen told the newspaper. “I now work for DuPont Pioneer as a production supervisor at the Dysart Pioneer plant. I have been married to my wife, Erin, for [four] years. We have three sons.”

Per the June 11 special meeting minutes, McEwen “requested an annual salary of $130,000 to stay somewhat comparable to what he’s currently making and the benefits he currently has” through Corteva.

As part of the trustees’ discussion surrounding McEwen’s proposal, Dostal indicated Stief was earning “roughly $100,000 annually,” making for a 30% bump in pay for the GM position if McEwen were hired at the salary point requested.

This past week, the newspaper reached out to Traer City Hall for an exact salary amount; prior to retirement, Stief was earning $100,382.62 per year.

“Dostal does not like the pay request,” the June 11 minutes continued, “she believes it’s too much for Traer, Iowa … and she’s not sure how we can justify $130,000 right off the bat.”

Both Podhajsky and Barnes agreed that “to get a quality employee hired [for] this type of position, you have to pay more than what we are currently,” per the minutes.

A motion was made by Barnes to offer McEwen the agreed-upon benefits package plus $130,000 annual salary with no raise for one year; O’Brien seconded the motion. During discussion, Dostal again expressed difficulty agreeing to the salary, while O’Brien “agreed she was struggling with that amount of money.”

The motion ultimately failed 1-2, with only Barnes voting yes; Dostal and O’Brien voted against, while the chairman did not vote.

Dostal was then asked to provide a salary amount that she could agree to, to which she replied she was uncertain what such an amount should be but that it “should be less than $130,000.”

Barnes made a motion to offer McEwen the agreed-upon benefits package plus a starting wage of $127,500 combined with a review and 3% increase after six months – resulting in a roughly 27.5% increase in salary over Stief’s current wage.

The motion was seconded by Dostal and approved 3-0 on a roll call vote. The meeting was adjourned shortly thereafter; McEwen accepted the board’s offer the next day.

Trustee resignations

On Monday, June 16, O’Brien submitted her resignation as a TMU trustee via email to members of the board and the Traer city clerk.

“Effective immediately I am resigning from my position on the TMU Board,” she wrote. “The way the women on the board were spoken to at our special meeting was unnecessary. I hope the person that fills my seat is a ‘yes’ person and will agree with everything Nick (Podhajsky) and Dave (Barnes) want to do!”

Two days later, on June 18, Dostal also resigned.

“After careful consideration, I have decided to resign from my position,” Dostal wrote in an email sent to the remaining trustees including McEwen. “I concur with Sara’s assessment of the treatment we received and the inadequate handling of the matter at hand. This conduct is unacceptable and inconsistent with the expectations of a board.”

The following day, June 19, McEwen tendered his resignation as a trustee.

“I am writing to formally resign from my position on the Traer Municipal Utilities Board, effective [June 26, 2025]… It has been an honor to serve on the board and contribute to the oversight and advancement of our community’s utilities. This decision was made due to my acceptance of (the) General Manager role within TMU,” he wrote. “I remain fully supportive of the board’s mission and confident in its continued leadership and service to the community.”

According to past reporting by this newspaper, McEwen was first appointed to his position on the TMU Board in January of 2018, filling a vacancy left by former Trustee Joe Morris – a member of the current TMU search committee that recommended hiring McEwen this month as the new GM. Morris resigned in 2018 as a trustee after first being appointed in 2006. Morris was chairman from 2009-2018.

Following their resignations, the newspaper reached out to both Dostal and O’Brien for further comment.

“Being on the TMU board was a privilege. I enjoyed being a part of the community. I treated my fellow board members with respect, and I expected the same in return,” O’Brien said in a written statement. “Any ideas, thoughts, or suggestions Anita (Dostal) and I brought to the table were viewed as irrelevant and were met with sarcasm and eye rolling. This is unacceptable behavior for any person serving on a board. Traer is a wonderful community and deserves only the best citizens leading it.”

In her own written statement, Dostal echoed many of O’Brien’s points.

“I didn’t see my term ending this way,” Dostal said. “I enjoyed sitting on the board. During the whole hiring process for the new GM, I felt like Sara (O’Brien) and my suggestions were not taken into consideration and we were not a part of the decision-making process. I spent extra time and effort, only to be laughed at and told my [efforts] required much more relevant information. I would suggest whoever oversees the TMU Board looks at the timeline and how all this took place. Best of luck to those who fill the empty chairs.”

Podhajsky stands by hiring decision; next steps

Chairman Podhajsky was also contacted for comment regarding McEwen’s hiring. In a June 25 email, Podhajsky told the newspaper he had no qualms with the way the process was conducted.

“When Eric McEwen applied for the GM position, he immediately recused himself from the search committee/search process,” Podhajsky said. “The board did ask if his application was an issue, and there was no policy that would restrict him from applying. Additionally, TMU has actually hired a GM from the board in the past, who incidentally did a very good job. As far as a conflict of interest, it was handled as openly and transparently as possible. We saw it as no different than current employees applying.”

He then addressed McEwen’s new role while thanking Stief for his many years of service to TMU.

“The TMU board is pleased to have Mr. McEwen as our new GM, and looks forward to working with him. We also wish Pat Stief, the retiring GM, all the best in his retirement. His contributions to the utility in Traer have been consequential and greatly appreciated.”

Late in the day on June 26, the newspaper contacted Podhajsky regarding O’Brien and Dostal’s resignations, but he did not have a chance to respond before press time.

The next meeting of the TMU Board is set for Thursday, July 10, beginning at 7 p.m. at Traer City Hall. Currently, the board does not have enough trustees for quorum. Those interested in serving on the TMU Board are asked to contact the Traer City Clerk’s office at 319-478-2580 or tmuclerk@traer.net.