Buffalo's embattled human resources commissioner is facing mounting problems.

A final report prepared by the mayor's lawyer has raised serious concerns about the performance of Karla L. Thomas, The Buffalo News has learned.

Byron W. Brown confirmed that the report from acting Corporation Counsel David Rodriguez confirms that "things could have been done" by Thomas and other city employees to correct problems that were red-flagged in a January audit. The most glaring issue involved disclosures that the city had paid more than $2 million in health insurance premiums for 170 deceased workers.

Brown disclosed today that talks have been under way with insurance carriers. The city has secured an agreement to recoup about $750,000 in premiums that were paid for the deceased individuals. The city also received assurances that insurers will reimburse about $240,000 for double payments the city made for policies that covered  some employees.

Meanwhile, Brown reiterated that he is not ruling out firing Thomas from her $91,734-a-year job.

"Everything is on the table," Brown said.

When will Brown make a final decision on a controversy that has been festering for months?

"I will be taking action in the very near future," he said

Brown would not discuss details of the internal report from the Law Department, but the review confirms deficiencies that were red-flagged by city auditors.

As it related to the city's payment of premiums for dead employees, Thomas was warned about the problem in January. Auditors insisted that she did nothing to correct it until a follow-up review was performed last month. At that point, another city department stepped in and purchased access to Social Security death data.

Today, yet another Common Council member called for Thomas' ouster. North representative Joseph Golombek Jr., a political ally of the mayor, said after reviewing the audit, he is convinced that Thomas must be terminated.

"This is inexcusable, and the commissioner must be held accountable for all the actions that occur in her department," Golombek said. "Therefore, if she won't resign, she should be removed from her position."

Golombek, who is involved in a tough Democratic primary fight to try to unseat state Assemblyman Sam Hoyt, said he is troubled that Thomas apparently took no steps to rectify problems even after the mayor directed her to take such actions earlier in the year. But unlike other city commissioners, the head of the Human Resources Department has a state-mandated six-year contract. Thomas has more than four years left on her contract. In recent months, several city lawmakers have argued that even with the state regulations, the mayor has ample ammunition to remove Thomas based on incompetence.

Brown said Golombek and other lawmakers have a right to their opinions. But the mayor said it's important to follow a clear review process.

"I didn't want to react emotionally. I wanted all of the details in this matter to be reviewed," Brown said in defending his decision not to take action after Comptroller Andrew A. SanFilippo's office released a scathing follow-up report last month.

bmeyer@buffnews.comnull