The Jacksonville City Council will hold a special fact-finding hearing later this month to examine JEA’s beleaguered employee bonus plan that has “sparked a degree of outrage unique in our community’s history,” according to a letter two council members sent to JEA CEO Aaron Zahn on Thursday evening.
The letter, signed by Rory Diamond and Ron Salem, told Zahn that the bonus plan appeared to be an “attempt to enrich JEA employees and executives” at the expense of ratepayers.
“It is clear from listening to our colleagues on the Jacksonville City Council, they would like a full and entirely thorough review of the ... plan. Their and our outrage is palpable,” according to the letter. “Likewise, we have spoken with Mayor Lenny Curry, and he too encouraged us to fully vet and review the ... plan in an open and transparent process.”
The council will hold the hearing on Dec. 16. The council has requested JEA provide all documents related to the plan and has asked that JEA officials appear at the meeting prepared to answer questions.
The bonus plan, which JEA officials say they plan to abandon, has become a crisis for the utility’s leadership since City Council Auditor Kyle Billy released a report last month identifying a number of concerns, including the possibility that it could result in a $600 million payday for employees if JEA is sold next year.
Documents obtained by the Times-Union this week revealed the plan contained provisions that conflicted with legal advice provided by city attorneys before JEA’s board approved the plan and that the city’s General Counsel Jason Gabriel told JEA officials last month to abandon the plan.
Zahn said he decided to postpone the plan until after JEA decides whether to privatize, and JEA officials continue to say the decision was made before city attorneys told them to cancel the plan.
Under the rules of the bonus plan, employees could purchase shares for $10. After a three-year period, JEA would calculate the value of the shares using a formula that takes into account the change in JEA’s valuation from the beginning of the period to the end. Employees would then be paid the new value of the shares they purchased.