Trying to reach a deal
Charlottetown council to meet May 11 to discuss departure of CAO 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.’’
WORKING ON DETAILS
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.’’
NEGOTIATIONS
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.’’
REVIEW
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 whether it could affect the severance offer from the city. However, Brown declined to comment.
UNDER FIRE
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.
EMPLOYEES
Saltwire Network recently spoke to several employees at city hall who said the most recent problems were to do with Lococo, not Kelly.
The employees, who Saltwire Network didn’t identify because they feared being fired if they spoke out, said they had difficulties working with Lococo.
In a letter to members of council, Lococo admitted there were problems in the workplace, but it was because Kelly was creating a toxic work environment.
However, other employees at city hall put the blame squarely on Kelly.
On May 5, Green party Leader Peter Bevan-baker tabled a copy of a letter in the P.E.I. legislature from four staff city hall staff members in which they called their workplace toxic, saying it was controlled by fear, favouritism and lies. The staff members urged council to launch an investigation into Kelly’s conduct.
While Kelly declined to talk to the media following the May 9 closed-door meeting, he did provide an email response to Saltwire Network on May 10 to the allegations detailed by staff in the letter that was tabled in the legislature.
“These are serious allegations and concerns,’’ Kelly said. “City staff expect and deserve a safe work environment. That is an absolute and an unwavering commitment. My dedication and responsibilities to staff and council remains.
“However, the situation continues to be made personal and has become untenable. There is an obvious need for a review of practices, policies and procedures. Ultimately, I want to ensure that the expectations of staff, council and residents, along with our collective priorities are met.
“It is of utmost importance that these issues are addressed, and full accountabilities are upheld. I trust that senior staff and city council will work together to help address these concerns and determine a clear path forward.’’
Brown said none of the concerns among staff were discussed during the May 9 closed-door meeting.
“That gets to beyond what the meeting was about tonight,’’ Brown said. “What was discussed is how we find a path forward and that’s what I’m trying to do as mayor.’’