Timeline: Failed sale of Jacksonville public utility JEA that led to indictment of former CEO, CFO

JACKSONVILLE, Fla. — Action News Jax has been following the possible sale of public utility JEA since 2012 when City Councilman Matt Schellenberg made the proposal to former Mayor Alvin Brown.

The failed attempt at selling JEA in 2019 led to former CEO Aaron Zahn and former CFO Ryan Wannemacher being indicted on federal fraud and conspiracy charges in March 2022.

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Zahn and Wannemacher’s trial is set to begin Wednesday, Feb. 21.

Here’s what’s happened from 2018 until now:

January 2018

Things started to ramp up when employees were sent a letter asking for their “continued employment during a possible acquisition or change of control.”

Jacksonville City Council members said they were “blindsided” by internal letters sent to JEA directors, offering them incentives to stay on if the utility is sold.

Some JEA employees told Action News Jax they’re working in a “hostile” environment as people worry that the utility might be sold.

February 2018

A local business expert told Action News Jax all signs point to the sale of JEA.

A draft study released in the same month stated, “Current market conditions can be expected to provide for a greater net value of JEA to the city than at any time in the past.”

Mayor Lenny Curry called for a special Jacksonville City Council meeting to talk about the possible sale of JEA. Then-City Council President Anna Brosche said of the sale, “I’m not going to be a part of rushing it.”

Jacksonville City Councilman Garrett Dennis said the mayor was for the sale of JEA.

“It is definitely the mayor’s agenda, and I think as the process unveils itself, it’ll be apparent that the mayor is behind a sale for JEA,” Dennis said.

Curry denied being behind the sale of JEA in an interview with reporter Danielle Avitable.

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“I don’t have enough information to have an opinion on it,” Curry said at that time. “I think it’s wise to know the value of assets that taxpayers have and JEA happens to be a large one.”

The Jacksonville City Council was formally told how the process to sell JEA would work.

A memo the Office of General Counsel sent to Curry, his cabinet, the City Council and the JEA board states any sale of more than 10 percent of JEA would require the council approval.

Action News Jax learned of scheduled meetings between Curry’s cabinet and JEA leaders ahead of a possible sale. The city of Jacksonville would not tell us what was discussed, or even if the meetings ever happened.

At a special City Council committee meeting, then-City Councilman John Crescimbeni put two ordinances on the table for the full council to consider. This could have led to the possible sale of JEA appearing on the November ballot.

Concerns were also raised about how a potential sale of JEA could affect St. Johns County customers’ water and sewer operations. According to the contract between St. Johns County and JEA from 1999, the county has the right of first refusal if JEA is sold.

March 2018

Then-JEA CEO Paul McElroy was ordered to testify under oath before the special committee on the potential sale of JEA.

The council auditor released its report, noting the city would take in between $1.7 and $5.2 billion if it sold JEA.

McElroy said as he was questioned by a special City Council committee that the utility’s revenue is in decline, and he projected sales are projected to be flat for the next five years.

April 2018

McElroy announced April 6 that he would be stepping down from day-to-day operations, just a week after he took questions from the City Council on the potential sale.

Neighbors took to social media after a Jacksonville city worker removed signs opposing the sale of JEA from their yards. A city spokesperson told Action News Jax the signs were placed in the right-of-way and were not in compliance with city codes.

Jacksonville Jaguars owner Shad Khan said selling JEA would be “a terrible idea.”

The bombshell comment came after the team’s State of the Franchise presentation.

“I think it’s a terrible idea, OK? JEA should stay the way it is,” Khan said. “I’ve seen this all over the country, when you have something, really a public entity getting privatized -- doesn’t work well with the residents.”

Aaron Zahn was named interim CEO of JEA. He told Action News Jax that privatization talks could have been handled differently.

November 2018

JEA’s interim CEO and Managing Director Aaron Zahn transitioned to the permanent post.

JEA’s board scored Zahn highest among three finalists, who were interviewed publicly by the board. The vote by the board was unanimous.

June 2019

For months, JEA has been working with experts and consultants on strategic planning for the future. The picture that’s been painted is grim, not only for the utility, but the industry more broadly.

JEA says changing energy policy, resulting energy efficiency and declining sales and emerging technologies are just a few of the things that have fundamentally changed how consumers are using water and electric services, and how JEA provides them. The senior leadership team and board have been publicly discussing what to do in the face of those challenges.

The JEA board voted to move forward with putting together a plan for a scenario that would mean hundreds of layoffs, scrapping a new downtown headquarters, reducing capital investments, and more in the next decade. This vote does not mean these changes are guaranteed to take place, but Zahn and his team will finalize a plan for what the short- and long-term implementation would involve, to present to the board next month.

If JEA continues to operate in the status quo, it would mean electric rates would have to climb 52% by 2030, with water rates up 16% in the same time frame.

September 2019

Action News Jax told you a group of City Council members moved to hire an attorney to help challenge the privatization of JEA.

“It is totally not reasonable nor do I think any of my colleagues on the council are comfortable with something going off of this magnitude, and us not having a voice for six to eight months. I don’t think anybody got elected to be silenced for that length of time,” City Councilmember Brenda Priestly Jackson said.

October 2019

The utility began accepting bids for a possible sale on Monday, Oct. 7.

Sixteen submissions for the potential sale of JEA were opened — one by one at JEA headquarters on Monday afternoon.

But none of their names were revealed.

“Those are 16 potential qualifiers for the process. They’re not bids yet. They’re qualifying based on the minimum requirements,” said City Councilmember Danny Becton.

Later that month, JEA revealed the names of the bidders. Meanwhile, the Jacksonville City Council voted to hire special counsel to help with process of a potential JEA sale.

November 2019

The Jacksonville City Council opened its doors for its first public meeting to discuss the future of JEA, but the public didn’t show up.

At the second public “fact finding” meeting, Mayor Lenny Curry and former Mayor Jake Godbold were at odds over a JEA sale. Curry believed selling it could be a good option, but Godbold said it would be a disaster.

At the end of the month, City Councilman Matt Carlucci made a statement calling for JEA CEO Aaron Zahn to resign from the public utility company. JEA Board of Directors Chairwoman April Green addressed Carlucci’s call for the CEO to be removed, affirming the company’s support for Zahn.

December 2019

At the beginning of the month, JEA leaders headed to Atlanta to meet with prospective buyers for the utility, as Jacksonville City Council members pressed for answers and clarity on the sale process so far.

Lisa Strange Weatherby, a former JEA board member from 2012 through 2015, told Action News Jax’s Ben Becker that “the plug needs to be pulled” on a potential sale.

“There are political reasons behind it and I don’t think it’s in the best interests of citizens of Jacksonville and I should just leave it at that,” Weatherby said.

Mid-month, Jacksonville Mayor Lenny Curry said in a letter to the JEA board that he was ready to give the City Council the power to decide the future of JEA.

The next day, City Councilman Matt Carlucci told Action News Jax that he wants a grand jury to investigate JEA for ethics violations and potential conflicts of interest.

At a Dec. 16 meeting, CEO Aaron Zahn came under fire by the City Council over a proposed Performance Unit Plan, which he told the Council was an “error in judgment.”

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If it had gone through, it would have allowed higher-paid employees to make a pretty significant profit from the sale of the public utility.

At a JEA board meeting on Dec. 17, the board voted to terminate Zahn and make Chief Operating Officer Melissa Dykes interim CEO. Soon after Zahn was removed as CEO by the JEA board, Becker discovered Zahn and Curry made a combined 51 calls to each other over a 14-month period.

The next day, Dec. 18, State Attorney Melissa Nelson confirmed her office was investigating JEA. In a statement sent to Action News Jax Nelson said, “We have heard the concerns of the community over the past several months. This office is — and has been — looking into matters involving JEA. We will not be commenting further.”

On Dec. 21, City Councilman Matt Carlucci said in a statement that JEA needed to end its invitation to negotiate (ITN) process.

Jacksonville Mayor Lenny Curry said the same on Dec. 23 and at an emergency JEA board meeting on Dec. 24, the board unanimously agreed to take ITN off the table. Dykes said in that same board meeting that the ITN process cost an estimated $10 million.

Action News Jax confirmed on Dec. 27 that Chief Financial Officer Ryan Wannemacher was no longer with JEA. The utility did not say at that time if he resigned or was fired.

On Dec. 28, Jacksonville City Councilman Rory Diamond called for a special city council committee to investigate JEA.

January 2020

The State Attorney’s Office said it will hand over the results of its investigation of JEA to federal authorities.

On Jan. 20, Jacksonville City Council President Scott Wilson announces that a committee will be formed to investigate the failed sale of JEA.

A day later, Mayor Lenny Curry said he won’t be revisiting efforts to privatize JEA.

City Councilman Rory Diamond said Jan. 28 that JEA ignored auditors’ concerns about the proposed Performance Unit Plan.

That same day, at a JEA board meeting, Zahn was terminated with cause and JEA Board chair April Green resigned before the end of the meeting.

Hours later, Curry announced that the entire board would leave their positions by the end of February 2020.

February 2020

The special investigatory committee created to investigate the failed JEA sale meets for the first time on Feb. 10.

The committee is comprised of Councilman Rory Diamond, Council President Scott Wilson, Councilwoman Brenda Priestly Jackson and Councilwoman Randy DeFoor. The committee has 120 days to get to the bottom of the failed sale.

On Feb. 11, Curry’s picks for new board members are announced.

Special counsel digging into the failed sale of JEA told city leaders that JEA leadership showed presentation slides to the JEA Board in 2019, portraying misleading information about a decline in sales and manipulated information about customer growth and cash flow.

March 2020

Jacksonville City Councilman Rory Diamond calls for interim CEO Melissa Dykes to testify under oath in a deposition.

May 2020

The new Board of Directors of JEA hires former JEA CEO Paul McElroy as interim CEO for six months while they work to put in a permanent CEO. This comes after the board voted to fire Melissa Dykes without cause.

June 2020

JEA files a lawsuit against its former CEO Aaron Zahn for counts of fraud, breach of fiduciary duty, breach of the public trust, fraudulent inducement, declaratory relief, and preliminary and permanent injunctive relief.

July 2020

Shawn Eads, the former Chief Information Officer for JEA “acknowledged” during previous testimony, he deleted data from the tablet of former Chief Financial Officer Melissa Dykes by entering the wrong password multiple times.

Councilman Rory Diamond, who is also on the committee, sent out a Tweet saying in part, “In my opinion, this is criminal.”

August 2020

Action News Jax obtains testimony taken in July from Jacksonville’s Chief Administrative Officer Brian Hughes regarding the failed sale of JEA. Hughes said he can cite “Executive Privilege” when it comes to conversations with Mayor Curry about former JEA CEO Aaron Zahn.

January 2022

Jacksonville City Council Member Garrett Dennis claims he was offered a lucrative job to give up his seat on the council and his objecting vote to the sale of JEA in mid-2019.

March 2022

Former JEA CEO Aaron Zahn and former JEA CFO Ryan Wannemacher are indicted on federal charges of conspiracy and wire fraud on March 7.

As Zahn was leaving the courthouse on March 8, Action News Jax’s Ben Becker asked Zahn, “Aaron is the Mayor’s office involved in this at all?’ At that moment, Zahn and his wife looked at each other and gave what appeared to be knowing looks.

May 2022

Aaron Zahn sells his Jacksonville Beach home.

January 2023

The Duval Republican Party calls on Governor Ron DeSantis to petition the Florida Supreme Court to commence a statewide grand jury to investigate the JEA scandal. The resolution comes in the middle of a mayoral race where candidates have been taking shots at one another over alleged ties to the proposed sale of JEA.

Emails obtained by Action News Jax reveal Republican mayoral candidate and Jacksonville City Councilmember LeAnna Cumber’s husband was involved in a bid during the attempted sale of JEA. That involvement raises questions about Cumber’s decision not to include her husband’s role in a conflict of interest document she signed.

February 2023

The Jacksonville City Council revives the special investigation committee that looked into the failed sale of JEA, targeting 2023 Jacksonville mayoral candidate and Councilwoman LeAnna Cumber.

UNF political science professor Dr. Michael Binder told Action News Jax’s Jake Stofan both Cumber and Republican mayoral candidate Daniel Davis likely don’t have totally clean hands when it comes to the failed sale of JEA, and the fact the special committee has its sights set on just one individual speaks volumes.

Cumber called it a “blatant weaponization of city hall.” Five City Council members raised concerns about the precedent set by the newly formed special committee investigating Cumber.

Late in the month, the committee uncovered new evidence showing Cumber’s husband played a role in the attempts to sell the public utility.

March 2023

The City Council’s special investigation committee said it will hand off its findings into the investigation into Cumber’s husband’s ties to the failed sale of JEA over to the city ethics commission.

At the end of the month, Action News Jax investigates and looks into three proposed state laws that local leaders say could create a scenario that leads to the City of Jacksonville potentially selling its utility company, JEA.

Meanwhile, Jacksonville Mayor Lenny Curry signed a resolution expressing strong opposition to a Florida bill some city leaders fear could pave the way for the privatization of JEA.

April 2023

City leaders are split on how to best fight back against a bill they fear could ultimately lead to the sale of JEA.

On April 4, the Jacksonville Ethics Commission decided not to take any action against former mayoral candidate and current council member Leanna Cumber and a recent investigation looking at her connections to the failed JEA sale.

Late in the month, proposed state legislation that local critics said could have created a potential “backdoor” sale of JEA does not come to fruition. The legislation would have capped the amount of money JEA and other public utilities throughout the state could have contributed to the local governments that operate them.

June 2023

A Jacksonville City Council special investigation into Council Member LeAnna Cumber’s reported connection to the controversial privatization of JEA came to a close with no immediate action. The committee never answered whether Cumber used her official position to influence the controversial sale for personal gain.

November 2023

A federal judge refuses to dismiss fraud and conspiracy charges against former JEA CEO Aaron Zahn and CFO Ryan Wannemacher.

January 2024

Zahn and Wannemacher appeared in federal court Jan. 25 to find out when their trial will begin. Aaron Zahn, JEA’s former CEO, and Ryan Wannamacher, are accused of orchestrating the sale of the public utility, to make millions for themselves and others by privatizing JEA.

Ten witnesses took to the stand and testified, including the current president of JEA, Jay Stowe. During testimony, he said he would not have made the same decisions as Zahn.

February 2024

Action News Jax reports that testimony in federal court asserted former Mayor Lenny Curry knew about the bonus scheme at the center of the criminal case related to the attempted sale of JEA.

“That never happened,” Curry said when asked about the suggestion he’d told Zahn he supported the bonus scheme.

On Feb. 15, jury selection began for Wannamacher and Zahn’s trial. Opening statements are set to begin Feb. 21.

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