The JEA board of directors will discuss the status of severance negotiations with former Managing Director and CEO Aaron Zahn at a special meeting Jan. 7.
Talks between the City Office of General Counsel and Zahn’s private attorney failed to meet a Dec. 30 target set by the board to finalize Zahn’s severance package and amend his employment contract language.
The Office of General Counsel said Jan. 2 that negotiations with Zahn are ongoing.
The board voted 5-1 Dec. 17 to fire Zahn without cause. Zahn is on paid administrative leave until an agreement can be reached. Zahn earns $520,000 a year.
A motion Dec. 17 by JEA board member Henry Brown instructed city attorneys to reduce Zahn’s payout. Brown also wanted to reduce Zahn’s consulting contract from 12 months to one month, reducing that part of the payout to about $52,800.
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.
The meeting is at 1 p.m. at JEA headquarters at 21 W. Church St. It’s open to the public.
JEA officials said they will speak with reporters at 3 p.m., or about 45 minutes after the meeting.
Board Chair April 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 if the utility was sold.
The board canceled the bonus plan Dec. 17 and ended the invitation to negotiate process toward the sale of the utility Dec. 24.
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.
Zahn’s lawyer, Jacob Peek with the Peek & Miska firm, told board members Dec. 17 his client was willing to negotiate.
Chief Operating Officer Melissa Dykes was named interim CEO after Zahn was terminated.
Mayor Lenny Curry nominated Zahn to the JEA board in January 2018. City Council confirmed him in February.
He resigned that position and was named interim managing director and CEO on April 17, 2018, to replace Paul McElroy, who resigned.
On Nov. 27, 2018, the board voted unanimously to make Zahn permanent JEA CEO.