Burlington CAO Jonathan Leopold To Resign, "Regrets" BT-Related "Difficulties"

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Jonathan Leopold, Burlington's chief administrative officer — and a powerful force in City Hall since Bernie Sanders was mayor — announced today that he will resign in June.

In a letter to Mayor Bob Kiss, Leopold (pictured) cites "serious health problems" resulting from a 2007 car accident as the main reason for his departure. He also acknowledges his highly criticized role in the Burlington Telecom scandal, saying he doesn't want his presence to "polarize" Burlington any further.

"I regret the difficulties the city has faced as a result of the BT controversy and I hope the city is able to resolve these issues," he wrote.

(Full text of Leopold's resignation letter below).

In a press release, Kiss stated that he has accepted Leopold's resignation "with regret" and thanked him for his "hard work and personal commitment to the City throughout his career."

Kiss credits Leopold with management of the budget that resulted in "5 straight fiscal years of a level general services tax rate and an increase in the City’s undesignated reserve fund from $75,000 to over $5 million. Jonathan has also built a strong management team in the Clerk-Treasurer’s Office which will ensure a successful transition,” Kiss said in the statement.

Leopold came under serious pressure after revealing in 2009 that the city had loaned $17 million to prop up struggling Burlington Telecom — a violation of the utility's "certificate of public good" issued by the state.

Photo by Jordan Silverman

(Background: Click here to read Kevin Kelley's 2007 cover story "King Leopold." Click here to read Kevin Kelley's March 2010 cover story "City on Wire" about the BT fiasco. Click here to read Shay Totten's wrap-up of BT's very bad, no good 2010.)

As the fallout from that improper loan snowballed, Leopold resisted calls for his ouster and suspension by angry city councilors and a ballot initiative that would have let Burlingtonians vote on whether to fire him. More recently, Leopold was denied immunity by the Vermont Supreme Court in a citizen lawsuit that seeks to recover the $17 million loaned to Burlington Telecom.

In his resignation letter, Leopold admits he could have handled the BT issue better.

"In hindsight, I believe that that we could have made a more complete disclosure of the violation of Condition 60 when we first learned of it in November 2008," he wrote. "That resulted in an unfortunate division within the city. I believe it is time for Burlington to come together and move forward. I do not want my continued role as Chief Administrative Officer to polarize the city further or hinder progress in addressing the challenges of the future."

Here's the full text of Leopold's letter of resignation:

April 13, 2011  

Dear Mayor Kiss:

After considerable thought, I have decided to resign my position as Chief Administrative Officer for the City of Burlington.  Thus, I request that you not nominate me for re-appointment this June. 

As you know, I have had serious health problems the past three years arising from a car accident in 2007.  It has been challenging and difficult to recover and also fulfill my responsibilities as Chief Administrative Officer.  We have strengthened the management of the Clerk/Treasurer’s Office this year and I feel that it is time to pass the baton to new leadership.

I have been committed to and worked for our community for nearly 30 years.  I have strived to do my best to serve and protect the City's interests and am proud of the success of this administration to address the challenges the City faced in 2006.  We have rebuilt the City’s financial reserves, maintained a stable tax rate, improved the status of the retirement system, repaved City streets, strengthened Burlington’s energy sufficiency and improved City services and programs.  I truly love Burlington and want to assure that it continues to prosper.

Over the past several years, these successes have been overshadowed by the Burlington Telecom controversy.  As you have stated many times, BT is an extraordinary asset that will serve as a foundation of a vibrant economic future for the City.  The City’s efforts to overcome the financial and legal problems have been daunting but worth the effort.

I regret the difficulties the City has faced as a result of the BT controversy and I hope the City is able to resolve these issues. In hindsight, I believe that we could have made a more complete disclosure of the violation of Condition 60 when we first learned of it in November 2008.  This has resulted in an unfortunate division within the city.

I believe it is time for Burlington to come together and move forward.  I do not want my continued role as Chief Administrative Officer to polarize the City further or hinder progress in addressing the challenges of the future.  I will work with you to develop a sound budget for FY 2012 and to provide a smooth transition

I greatly appreciate the opportunity you provided me to serve the City again.  It has been an honor to work with you and the many fine City employees.  Your confidence and support has been sustaining.  I wish you and the City well and ask that you accept my resignation effective July 1, 2011.

Sincerely,

Jonathan P. A. Leopold, Jr.

Chief Administrative Officer

Comments

[kim lanier]

One down, one to go!

[strat123]

"Leopold came under serious pressure after revealing in 2009 that the city had loaned $17 million to prop up struggling Burlington Telecom — a violation of the utility's "certificate of public good" issued by the state."

You ought to revisit the CPG, Andy. There was no prohibition against BT tapping the city's special fund for money. The violation in this regard was for not paying the money back to the city's account within 60 days.

Some cite mismanagement over the failure to repay, others cite the state of the economy at the time where borrowing money from anywhere else was realistically impossible. Whichever it was, it left Leopold and Kiss with a difficult decision: fund BT in hopes the economy would pick up or let it fail. Most Burlingtonians want BT around in some capacity so it was a calculated risk, albeit ripe for political opportunism.

[Jimmy]

"fund BT in hopes the economy would pick up"

Within 60 days? Unless they thought they were going to recoup that money within 60 days, they knew they were violating the CPG, the city charter and state law. There is no excuse for that.

[Tim]

"Use every man after his desert, and who should 'scape whipping? "

Hamlet

If you pay everyone what they deserve, would anyone ever escape a whipping? Treat them with honor and dignity.

[Jo-Jo]

Tim: you can do that, feel free.
Others may choose to yell: adios scoundrel!

[reelvermonter]

The Burlington budgetary issues have never been about Leopold and/or Kiss. They are historical and go back decades. Dozens of city councilors, several mayors and any number of public employees have simply failed over the years to develop a systematic budgetary process which is transparent, financially sound and technology driven. Blame can be cast in many directions and over a substantial number of indiviuals. Many of those who have come late to the party tend to ignore the historical realities. At this point, the only solution is a comprehensive rebuilding of the city's budgetary process, coupled with a new and robust technology backbone. Any thing less is just more politics and more money down the rabbit hole.

[Mull-it]

@ ReelVermonter, your comment is very interesting. I'd like to hear more of this analysis: what changes are needed to the process and the technology? This sounds like a good follow-up story for Seven Days.

[tapdancing]

@ Reelvermonter:

Whether or not your thesis about historic, systemic budgetary problems is true, that doesn't mean that mayors who come to the office lately, and ignore the problems, or make them worse, aren't culpable.

Furthermore, the BT fiasco isn't about a historic budgetary problem. It's about a very specific act of malfeasance: taking money from the cash pool without disclosure; not paying the money back; and then hiding the theft. That has nothing to do with "historical" budgetary problems. That is a specific act which may turn out to have criminal implications.

Sounds like you're trying to absolve Kiss/Leopold for their acts. Nice try.

[Jcarter]

"Kiss credits Leopold with management of the budget that resulted in an increase in the City’s undesignated reserve fund from $75,000 to over $5 million."

Wait what? What is this undesignated reserve fund? Why is it undesignated? And why if there is a surplus to the extent that 4+ Million dollars have been chocked into is there a need for this tax increase Kiss is calling for?

Sounds like this "undesignated fund" should be designated the Kiss/Leopold Retirement Fund.

Either way, Don't let the door hit you on the way out Johnny Boy. I suspect your resignation has more to do with the SCOV denying your immunity plea then anything else, hoping that resigning satifies the plaintif's.

[Jen]

Come on Dale, turn the knife!

[Oh Boy]

I'm no fan of Leopold's style or decisions (or Kiss' blind devotion), but the guy is a bulldog I'd rather have in our corner protecting this community's interest in BT. Does his departure mean he's given up hope in getting BT's financial house and mngt back on track? Yikes. We need a tough guy at the table representing us as BT's future is negotiated.

[Jcarter]

OH BOY,

While you may want someone that is a bull dog in the corner representing the interest of BT, why have one that is stealing from the kitty.

Leopold resigning is akin to the other half dozen cases this past year of people embezzeling money. As soon as the public officials catch wind they resign attempting to dodge the bullet, cut their losses and run. THat's what Leopold is doing, he wasn't granted immunity and so he is getting the hel out of Dodge. Then TJ can blame the mismanagement on Johnny Boy and close the case since JL is gone. Kiss gets off free, at least until election time anyways. These two are crooks, you can't straighten out BT until you get rid of the theifs. Good Riddance. If BT happens to fail, so be it, but the rest of the City can't be put at financial risk of a single quasi-city entity that may or may not even really exist.

[Jimmy]

My prediction is that Citi finally said they're taking the fiber where it lies in the ground. That would be the death knell for BT, and a good time for this guy to get out of Dodge.

[KissMyArse]

I hear he's moving to a new full time, 24-hour-a-day position at the Chittenden County Correctional Facility.

No one will miss this guy. He's a pompous arse who is retiring in shame. This pathetic exit from the public stage will stay with for the rest of his life.

The only thing surprising to me is that it took him this long to go. Kiss is next.

[Dwayne]

Dear mr. Leopold,

Give us our money back.

Sincerely,

Burlington taxpayers.

Ps: why wait until June? Just go now. We are so tired of you.

[dale tillotson]

My apologies to Jen for being so late in my response.
I wanted to make sure the knife was good and dull before turning it more.
All please keep in mind though that this was not a knife in the back. I have always been straightforward in my request of Mr. Leopold's resignation.
This is totally in reverse of our leader Mayor Kiss in the situation when he did not retain Wayne Gross, after saying 6 weeks before he was doing a good job. Then he dumped him.
Yep that was just another historic Kiss moment.
While Gross screwed up the disc golf mess and I told him so and felt he needed to be replaced Kiss said no and gave him a vote of confidence 6 weeks before canning him.
All said and done Kiss is a terrible leader, time for him to resign.