The JEA board of directors postponed its Jan. 7 special meeting to allow city attorneys more time to determine if grounds exist to terminate former utility CEO Aaron Zahn with cause.
JEA Media Manager Gina Kyle confirmed in an email Jan. 6 the meeting has been postponed until further notice.
In an email sent Jan. 3 to JEA board Chair April Green, Deputy General Counsel Sean Granat said that after conducting “numerous interviews” and reviewing “thousands of documents,” city lawyers need more time to determine if the board can terminate Zahn with cause.
“There are several critical interviews that still need to be conducted and additional documents that need to be reviewed in order to complete a fair, adequate and thorough investigation,” Granat wrote. “An additional two weeks should provide sufficient time.”
The board voted 5-1 Dec. 17 to terminate Zahn without cause, and placed him on paid administrative leave until an agreement can be reached on his final severance package.
Zahn’s employment contract calls for $842,925 in payments in the event of a termination without cause. That includes 20 weeks of pay, a 12-month consulting contract worth $634,000 and COBRA insurance payments. Zahn’s annual salary was $520,000.
Kyle said in a phone call Jan. 6 that JEA officials had no additional comment.
A motion Dec. 17 by JEA board member Henry Brown instructed city attorneys to reduce Zahn’s payout in the negotiations. Brown also wanted to reduce Zahn’s consulting contract from 12 months to one month, cutting that part of the payout to about $52,800.
Talks between the city Office of General Counsel and Zahn’s private attorney did not meet a Dec. 30 target set by the board to finalize Zahn’s severance package and amend his employment contract.
As of Jan. 2, the Office of General Counsel said negotiations were ongoing with Zahn and his lawyer, Jacob Peek with the Peek & Miska firm.
Stephen Powell, chief tort and labor employment attorney with the general counsel’s office, also confirmed city attorneys’ request to postpone the meeting. Powell said he would be available later Jan. 6 for additional questions regarding the investigation.
Green advocated for Zahn’s termination with cause, stating she feels the CEO misled her and the board on several issues. That included an employee bonus plan that could have cost JEA up to $600 million in the event the utility is sold.
The board canceled the bonus plan Dec. 17 and on Dec. 24 ended the invitation to negotiate process toward the sale of the utility.
Green said Dec. 17 she was concerned that an investigation into Zahn could uncover more misconduct. The board authorized the Office of General Counsel to move forward with that investigation.