The Chronicle Herald (Provincial)
Trying to reach a deal
Charlottetown council to meet to discuss departure of Peter Kelly
Charlottetown Mayor Philip Brown has called a special meeting of council for May 11 to try to reach a severance deal with the city’s outgoing chief administrative officer (CAO).
Brown confirmed on May 9 what sources previously told Saltwire Network, that Peter Kelly plans to retire as CAO, a job he took in 2016.
Council, which appoints the CAO, met in private for more than three hours on Monday night, May 9, to discuss Kelly’s wish to leave, but the meeting ended shortly after 10 p.m. without an agreement on the terms of his departure.
“We were trying to get some consensus among all of council … on our CAO and his wish to leave the corporation along with our wish,’’ Brown said following the meeting. “A lot of information was shared, a lot of discussion took place. We ran out of gas, and now we’re refueling. Hopefully (on May 11 council will) come to a conclusive decision on where we want to go with the corporation.’’
Brown said the city is trying to work out details of the settlement that Kelly will get.
“We didn’t get to that point. I believe we have to come back again … to bring some final conclusion to this whole issue,’’ Brown said following the May 9 meeting.
When the meeting ended, a few members of council left quickly, offering nothing more than a terse “no comment’’ to the media. Only the mayor agreed to do an interview.
Brown didn’t offer a timeline as to when Kelly will be leaving, but one source recently told Saltwire Network that he will depart in early June.
The closed-door session followed council’s regular public monthly meeting.
In the closed session, council received a briefing from third-party legal counsel.
“The third-party legal counsel made their presentation tonight,’’ the mayor said. “(Lawyers) came in to give an overview of what we could do going forward. We accumulated a lot of information tonight. We expended a lot of energy. I would have liked to have stayed until we had a conclusion to this issue, but we’ll have to come back.’’
Sources have also told Saltwire Network that Kelly could be in line for a sixfigure severance package.
Brown wouldn’t comment on that on May 9.
Sources also said the severance would be based on factors such as the contract Kelly signed when he was hired in 2016 and what his annual salary is.
Chantal Matheson, executive resource and privacy coordinator for the city, said May 10 she couldn’t say what Kelly’s exact annual salary is but did say it falls between $130,000 and $165,000.
“The CAO is the only position that council appoints, and the salary is negotiated as part of their contract,’’ Matheson said.
When Saltwire Network asked for a copy of Kelly’s contract, Matheson declined to provide it, saying it is considered personal information.
“Even if you were to go through the FOIPP process we would not release (it),’’ she said, referring to the Freedom of Information and Protection of Privacy Act.
Brown said the city won’t be releasing the amount of money Kelly gets as part of his severance.
“That’s an internal matter,’’ the mayor said following the closed-door meeting May 9. “That information is between the employer and employee.’’
When the media pressed him on the issue, saying that the severance package will be taxpayers’ money, Brown said his priority is to reach a deal and move on.
“I’m not privy to discuss (the details of a settlement) at this point because we’re not at a juncture where both parties have agreed. We have to work out a settlement between the two parties.’’
Just before Saltwire Network learned Kelly was set to announce his retirement, Coun. Julie Mccabe pressed council in April to conduct a review of the CAO.
Mccabe noted at the time that the review, which is supposed to happen every two years, was missed last year.
Mccabe declined to comment May 10 about whether a review should still be held, saying she was holding off on commenting on anything until after the meeting on May 11.
Saltwire Network asked Brown on May 10 if a review was done and showed Kelly had been lacking in some part of his job if it could affect the severance offer from the city. However, Brown declined to comment.
Kelly has been under fire for weeks over allegations he fired two deputy CAOS after they came forward with concerns about the city’s administration and finances.
Tina Lococo was let go from her job in early April after about six months in the deputy role while Scott Messervey was fired three years ago only a year after he was hired.
Messervey filed a lawsuit against the city that is still before the P.E.I. Supreme Court, alleging he was fired for raising financial concerns. Saltwire Network obtained emails that Lococo had sent to council with the same allegations.
None of the allegations have been proven.