St. Pete Beach officials investigate city manager

While Alex Rey avoided termination at a recent special commission meeting, St. Pete Beach officials stripped their city manager of authority and launched an official investigation into his conduct.

Issues arose during Rey’s yearly review at a June 13 city commission meeting, when all five commissioners relayed city employee concerns regarding Rey’s leadership. Those included allegations of creating “a toxic work environment,” promoting divisiveness and not following procurement processes.

Commissioners approved an investigation into Rey’s conduct and called a special meeting June 16, to establish its scope. However, residents and Mayor Adrian Petrila called for his immediate removal.

Petrila and the city attorney noted that Rey disregarded implicit instructions not to speak to anyone about the investigation and immediately discussed it at length in a full staff meeting.

“I brought this up at the (June 13) commission meeting, that leaving the person that’s being investigated in an authority position could lead to potential problems, just like we’ve seen come up in the last two days,” Petrila said. “Based on that information, I will make a preliminary motion of removal of the city manager from his position …”

Public speakers agreed. One likened Rey remaining the city’s manager to leaving “the fox in charge of the henhouse.”

City commissioners – which includes the recently elected mayor – have all heard numerous complaints from employees that Rey has created a toxic work environment. Finance Director Vince Tenaglia abruptly resigned to take the same position in Seminole earlier this month.

Commissioner Mark Grill said he heard that Rey’s “around-the-room discussion” of the investigation caused further discord among staff. He called the increasing divisiveness worrisome and a long-time concern.

“Because we’re not going to be productive,” Grill added. “We’re not going to achieve our objectives as a city.”

St. Pete Beach City Manager Alex Ray at the June 16 meeting. Screengrab.

Petrila said Rey’s latest misstep was “clear” insubordination and violated the city charter. He also noted Rey waited until after the June 13 review to notify commissioners that he missed a pension plan deadline.

Petrila said the delay was to “not further expose his failure of leadership and execution of his job duties.” The mayor relayed that he subsequently received an email from the city employee’s union detailing procurement, contracting, hiring and firing process concerns.

In addition, Petrila said he received reports that Rey had limited financial record access to some employees and planned to promote others following the June 13 meeting. Petrila, who defeated two-term former Mayor Alan Johnson in a contentious March election, motioned to replace Rey with the city’s fire chief on an interim basis.

“I will amend my motion to state that we suspend the city manager, again, for the purpose of limiting any potential interference with the investigation,” Petrila said.

Commissioners preferred to hear the investigation’s results before removing or suspending Rey. However, they did approve a motion to eliminate the city manager’s hiring, firing and spending authority without the commission’s consent.

Rey cannot offer promotions or raises, and the commission agreed to hold him accountable for any violations.

“If there is any interference with this investigation by the city manager – directly or through any third party or any surrogate – that there’s immediate removal, suspension or termination,” said Commissioner Chris Marone.

Rey pushed back against the claims of impropriety. He acknowledged morale issues during the June 13 review and blamed carryover from a “toxic” election.

He admitted to discussing the investigation at a regularly scheduled staff meeting the following morning but said he urged everyone to participate in the process without fearing repercussions.

“I did apologize to them for the fact that they are having to go through this; it’s not easy to be in an organization where this is going on,” Rey added. “I was just trying to encourage people to relax, keep your head high, keep doing the work.”

However, City Attorney Andrew Dickman relayed he “politely” instructed Rey not to discuss the investigation with staff or residents. Dickman called that typical procedure.

He and a contracted employment lawyer will now interview city employees, review procurement contracts and disseminate unfilled public records requests. Dickman estimated that the investigation would take 100 billable hours and cost $20,000.

He will provide the city commission with an update in about 30 days and conclude the investigation within two months.

One St. Pete Beach resident bemoaned the wait. “If this was your personal business, you know this person would be suspended,” she said. “Absolutely. My goodness, how much does it take?”