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JEA CEO placed on paid administrative leave as counsel negotiates terms of his termination

During the meeting, the board appointed JEA President and COO Melissa Dykes as Interim JEA CEO.

JSO is planning to hold a news conference around Tuesday afternoon.

After weeks of mounting criticism for his management of the city's water and electric utility, JEA CEO Aaron Zahn is on his way out.

The JEA board of directors voted unanimously Tuesday to place Zahn on paid administrative leave and directed city attorneys to determine whether he should be fired for cause or without case. They now have until Dec. 30 to negotiate his termination contract, which could cost the city hundreds of thousands of dollars.

"We have learned that [Zahn] is not that person [man for the job]," April Green, JEA chair, said.

The board appointed JEA President and COO Melissa Dykes as Interim CEO.

Prior to the meeting, Zahn and his personal attorney agreed to his being terminated without cause, which would have cost the board nearly $500,000 (less than the $842,000 his contract allows for in the event of a firing without cause). The board, however, wants to see Zhan fired for cause, which would save the city that outlay.

City Council members had accused JEA’s chief executive officer Aaron Zahn of creating a limitless bonus plan designed to enrich executives and of misleading JEA board members prior to them approving the plan last July.

At a meeting with Council members Monday, Zahn said the bonus plan was part of his vision to make JEA’s pay more competitive in order to retain and motivate employees. He denied creating it to enrich himself and said he regretted the controversy it created.

Zahn said the intentions behind the bonus plan “were pure” but that he should have discontinued it as soon as JEA began negotiating a potential sale.

"We can't go back in time, that's for sure," Green said. "We definitely believe Melissa in her abilities ... We made a correction today and Melissa is the best person, hopefully she'll run for the job."

Green said they plan to do a CEO selection process, which will be up for discussion in the future meeting.

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