SACRAMENTO (CBS13) — Two Sacramento city employees resigned after allegations of sex, drugs and fraud.

The details of the accusations against the employees are jaw dropping, but also surprising is the response from some city managers who knew some of this and still allowed the pair to keep working.

CBS13 obtained the whistleblower report with the names of the utility workers blacked out, but their workplace affair described in detail—two city utility workers in the back seat of a city vehicle at a city park engaged in sexual activities during business hours.

MORE: Read The Report.

The report shows the pair initially were disciplined for that act, and allowed to keep their jobs with a temporary decrease in pay.

But a whistleblower led to an audit investigation that revealed far more. Over two years, the pair had been meeting at a trailer where they would “spend up to three hours of their work days inside the trailer” and “would have sexual relations with each other while in the trailer…”

The investigation found drug use and “references to cocaine … bought, sold, and used during work hours at the trailer.”

While all of this was going on, the report says the pair told the city they had “worked a normal work day” and “sometimes overtime was also claimed on these days.”

Craig Powell with the government watchdog group Eye on Sacramento says the report shows big changes are needed at the utilities department that was also at the center of a city auditor nepotism investigation.

“I’m appalled, but I’m not surprised,” he said. There is the attitude of permissiveness, and ‘the rules really don’t apply to me,’ sort of attitude over there,” he said.