EPHRATA - Grant County PUD commissioners terminated the contract of PUD general manager Tim Culbertson during their regular meeting Monday.

In a press release, board president Tom Flint cited Culbertson's personal relationship with a PUD employee.

According to the contract approved by the board in August 2011, Culbertson will receive one year's salary, $275,888, at termination.

"In our judgement, Mr. Culbertson's decision to maintain a relationship with another utility employee makes it impossible for him to discharge his unique responsibilities as general manager without the appearance of a conflict of interest," Flint said.

"The potential for such conflicts, whether actual or apparent, undermines the trust and confidence that the board of commissioners and utility employees must have in his professional judgement for him to continue to effectively lead the organization. This is why we believe a change is necessary. Our concern is the potential effects of that relationship on the utility here, we believe those effects are or likely will be adverse to the utility's interests, and we must act accordingly."

"I tried to do the right thing and disclose it," Culbertson said. He said he talked to two senior PUD officials not long after the relationship started, and asked if any policies would prohibit such a relationship. If employee policy did prohibit such relationships he expected it would come up after he disclosed it, he said.

Culbertson said he reviewed PUD policies and didn't find anything that in his opinion would prohibit a relationship.

Flint said that at some point, which he declined to specify, rumors of the relationship between Culbertson and an employee turned into something that could have caused the PUD problems. Flint declined to give any specifics.

Board members asked their attorney to hire an outside investigator to review the allegations. "Up until that time (the investigation), it was all rumors," Flint said.

Culbertson was placed on administrative leave June 19. Commissioners met in executive session June 17 at an out-of-town trade show and voted unanimously to place Culbertson on leave.

Culbertson's leave was extended to July 10 after an executive session June 29.

"I basically chose the relationship over the job," Culbertson said.

Culbertson was hired by the PUD in August 2000 as the manager for power marketing and operations. He was named interim general manager in January 2004, and hired as general manager later that year.

Board members approved a five-year contract in August 2011, in an effort to maintain stability at the utility, Flint said at the time the contract was approved. Among other provisions the contract included the year's pay in case of termination.

"Mr. Culbertson made many positive contributions to our collective success and has led the district with great skill for several years. We are grateful for his past efforts and wish him success in the future," the press release said.

"I understand their position. I understand their decision," Culbertson said. "I wish them the very best as they go forward into the future." He said he thought the utility had done some good things while he was manager.

He said he hasn't decided yet what to do next. "Take a deep breath. Don't make any rash decisions. Spend some more time with my kids and see what opportunities become available," he said.

Sarah Morford, public information officer for the PUD, said commissioners haven't decided how they will replace Culbertson. A timeline and criteria for replacement will be announced, she said.