Former New Rochelle city manager's separation agreement will deliver up to $445K

Former New Rochelle City Manager Kathleen Gill, who resigned amid controversy over municipal ethics and the city’s climate change policies, has New Rochelle taxpayers on the hook for up to $445,000 in a lucrative separation agreement ratified by the City Council.

Gill, who had worked for the city in a variety of posts over 27 years, had almost nine months left on her 2-year contract. The council decided to pay her for the rest of her contract, plus another five months beyond what her contract demanded. That came to an estimated $279,000, which included an estimated $93,000 for Gill’s bonus months.

The agreement also granted her up to 36 weeks of unused personal time and sick days she accumulated over her 27 years in New Rochelle City government. That payout could total up to $166,000. Gill will receive up to $445,000, depending on how many days Gill had squirreled away.

In addition, the pact continues Gill’s health insurance policy, with no premium, in perpetuity, unless she finds employment with another municipality that guarantees free health insurance after she retires.

New Rochelle residents debated the merits of Gill’s abrupt resignation on April 9, which occurred after the New Rochelle City Council met behind closed doors to address the future of Gill, one of the city’s longtime employees. The Council's lone Republican, Al Tarantino, told Tax Watch last week that it was "a forced resignation."

More: Kathleen Gill, veteran New Rochelle official, resigns as city manager after 16 months

Resident Vince Malfitano said the payout was a glaring example of elected officials showering benefits upon a departing employee, all paid for by the city’s already-stressed taxpayers.

“If you had to reach into our own pocket for the buyout for the city manager I wonder if you would have done it,” Malfitano said. “But you are reaching into my pockets, but you don’t care because you're playing your games. This is what bad government looks like.”

But Alisse Waterston said she was pleased by the Council’s oversight, and Gill’s resignation.

“I’m heartened that this city and its mayor take seriously your responsibility to govern the city of New Rochelle, ensuring that your appointees understand that they are accountable to you,” she said. “I understand you have taken this step to find a city manager to implement the policies you intend to put in place to address the development of affordable housing that will repair the harmful consequences of gentrification.”

New ethics ruling on Sustainable Westchester vote

The separation agreement was signed on April 9, just one day before the New Rochelle Ethics Board issued its latest ruling on a complaint filed by independent journalist Robert Cox, who publishes the Talk of the Sound news website. Cox has reported on the city’s relationship with Sustainable Westchester, a consortium of municipalities that support the clean-energy industry by making electricity from renewables the default provider of electrical supply in 29 Westchester municipalities.

Gill in December had nullified the city’s contract with Sustainable Westchester after she received the findings of the Ethics Board regarding votes taken by then-Mayor Noam Bramson and Councilwoman Sara Kaye, who both served on the nonprofit’s board of directors, and voted on the contract when it came before City Council.

Bramson, who did not run for re-election, became Sustainable Westchester’s executive director in January.

The April 10 ruling came in response to Cox’s complaint that Bramson’s successor, New Rochelle Mayor Yadira Ramos-Herbert, had violated the city’s Code of Ethics by voting to reauthorize the city’s contract with Sustainable Westchester that Gill had nullified.

His complaint questioned whether Ramos-Herbert’s attendance at the nonprofit’s annual meeting as a voting member created a conflict of interest, which would have required the mayor to disclose her interest when the matter came up for a vote at the City Council.

The board backed Ramos-Herbert, who argued that she never had a personal membership or served as an officer of the nonprofit, nor had she received a financial benefit from the group. She said she did not cast a vote at the annual meeting.

She also maintained that the city of New Rochelle was no longer a member of Sustainable Westchester, which has become a new point of contention. City spokeswoman Kathy Gilwit said the city "is not currently a member."

More: Electric customers of Sustainable Westchester pay $48M more with 2-year renewables pact

Ramos-Herbert cited a February 2024 document from the city, which notes that the city had neither paid its annual dues of $1,000, nor paid Sustainable Westchester $215,000 to participate in programs that syncs waste reduction information for DPW schedules and allows participation in the nonprofit sustainable landscaping program and its Smart Homes program.

However, the document also stated that the city remains a member of the nonprofit community aggregation program, which makes its renewable energy electric supply the default choice for New Rochelle ratepayers, and was the subject of Cox’s ethics complaint.

The City Council also took a new vote after the November election to reinstate the contract.

Officials at Sustainable Westchester assured Tax Watch that New Rochelle remained a member in good standing at the nonprofit, noting that its ratepayers continue to receive their electrical supply through the nonprofit’s two-year contract, which expires in October.

Former New Rochelle Mayor Bramson, the nonprofit’s executive, said as far as he knew, his hometown was still firmly entrenched in Sustainable Westchester’s renewable electricity program.

“No one has informed us that New Rochelle is no longer a member,” Bramson said.

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David McKay Wilson writes about tax issues and government accountability. Follow him on Twitter @davidmckay415 or email him at dwilson3@lohud.com.

This article originally appeared on Rockland/Westchester Journal News: New Rochelle NY city manager leaves with deal worth up to $445K