In a budget year that will see a 4.61 per cent levy increase, the City of North Bay will pay David Euler $227,537 until early in 2024 to not work as its chief administrative officer.
See related: City of North Bay CAO Euler leaving position
The municipality announced on Jan. 5, that it would be embarking on a recruitment process for a new CAO after Euler, who had served in the role since 2019, was departing while accepting an early retirement package.
BayToday acquired Euler's retirement package documents through a Municipal Freedom of Information and Protection of Privacy Act request.
"David and Council have agreed that it is advantageous to search for a new CAO early in the Council’s term rather than later. Council will begin the search for a new CAO immediately," said Mayor Peter Chirico then. "We wish David all the best in his retirement and future endeavours."
John Severino was named interim CAO days later. Severino, who already serves as city engineer and oversees the infrastructure and operations business unit, is leading the city's administration while the recruitment process is underway for a permanent replacement for Euler. An announcement to that effect is expected soon.
Offering a retirement package is common in the corporate world when a new regime wants to make changes at the top but has no cause to dismiss. Euler, who in some circles was said to be nearing retirement anyway, got paid another year's salary as a parting gift because he was not seen as the right person for the job once Mayor Peter Chirico took office.
Euler replaced Keith Robicheau in December 2018 as the interim chief administrative officer early on in former Mayor Al McDonald's final term in office. Euler had been serving as the managing director of engineering, environmental services and works prior to his promotion. The interim tag was dropped in 2019 and Euler received the full backing of the McDonald administration as its CAO of choice to guide its growth mandate.
The writing was on the wall, so Euler took the package instead of fighting a losing battle with an administration that was ready to turn the page. Euler is receiving half of the $227,537 as salary (minus applicable deductions) over a six-month period that began Jan. 9. Then, within 30 days of Jan. 3, 2024, his official retirement date, the agreement calls for the City of North Bay to make a "lump sum retirement allowance payment" of the other half totalling $113,769 to Euler.
The former CAO will also be paid out for considerable earned and accrued vacation time as part of the deal. Beginning on July 10, he will receive payments for 23 weeks and four days of vacation time. Then, within 30 days after Jan. 3, 2024, Euler will receive a lump sum for the balance of his vacation days (19.94 days) in the amount of $17,450. Euler's benefits package, including health, dental, and pension contributions will remain in place until Jan. 3, 2024.
See: Only one CAO on this year's Sunshine List and he still works for the City
North Bay is no stranger to paying more than one CAO at once. In multiple instances since 2016, a sitting CAO and a CAO who had left the position prematurely, whether through resignation or dismissal, were both found to be employed by the municipality while taxpayers reaped only from one of them the benefits of the fruits of their labours.
See also: Knox resigned in June, still ranked second on Sunshine List in 2016
And: A fired CAO turns up on North Bay sunshine list...again!
Once the new CAO takes over the fifth-floor office at North Bay City Hall, the citizens will again be paying two CAOs for the work of one. If interim CAO Severino applied and is hired, unless the municipality gaps his position as city engineer, the same situation applies.
And, unless the qualifying bar is raised, Euler will also appear on the Sunshine List in 2023 and 2024 despite having only worked a few days at the beginning of this year, due to his retirement package payouts in excess of $100,000 for each of those years.
