Ottawa city manager announces retirement just days before LRT report released

Ottawa City Manager resigns Ottawa City Manager Steve Kanellakos abruptly resigns just before the release of the public inquiry report into the problems with the LRT.

Ottawa city manager Steve Kanellakos has announced he is leaving his role, effective immediately.

In a letter released Monday, Kanellakos said he informed Mayor Mark Sutcliffe of his decision.

“I’m sure there will be speculation about the reasons for my departure at this time. This decision is mine and mine alone. No one asked me to leave. I’ve always deeply believed in leadership accountability. As City Manager, I am ultimately accountable for the performance of the organization. I have always deeply believed that my role is to have your backs and that it is my duty to accept ultimate responsibility for our performance,” he wrote.

The announcement comes just after an in-camera meeting of the new city council discussing legal updates regarding the light rail transit system. It also comes two days before the final report from the public inquiry into Stage 1 of LRT is released. The inquiry looked at the issues that plagued the line and the municipal decisions that led to its launch.

Kanellakos referenced the LRT report in his departure message, saying he suspects it will be critical of the city.

“On Wednesday, November 30th, the LRT Public Inquiry Commission report will be released publicly. I don’t know what the report findings or recommendations will be as we will not receive an advance copy. I do believe, based on the line of questioning and approach taken by the Commission, that the report will be critical of the City of Ottawa and City staff. Despite this, I know that City staff did their best under very difficult circumstances to ensure that the Light Rail System would meet all of our expectations,” he said.

“It is my belief, that this is the time to do the right thing and allow the organization to find a new leader who can deal with implementing the recommendations from the Inquiry unfettered from the long complex history of the project or the findings of the Commission report.”

Kanellakos has been the city manager of the City of Ottawa since 2016. He also served as deputy city manager of operations, and general manager of community and protective services for the city. He also briefly served as city manager for the City of Vaughan in 2015 before becoming Ottawa’s city manager. Prior to his roles within the City of Ottawa, Kanellakos was director of the Gloucester Police Service in the early 1990s and later became Director General of the Ottawa-Carleton Regional Police Service in the years before amalgamation.

During his tenure as city manager, he oversaw the city's response to major environmental disasters, including flooding in 2017 and 2019, the 2018 tornadoes and the 2022 derecho. He was the city manager during the "Freedom Convoy" demonstration, Canada 150 celebrations in Ottawa, and throughout the COVID-19 pandemic. He also oversaw the launch of the LRT.

In early 2020, Kanellakos challenged councillors to fire him if they believed the city had not handled the situation properly.

"I am ultimately accountable," Kanellakos said. “Look at the org chart and you’ll see my face on it. I’m accountable to Council; I’m your only employee. If you do believe that we have not done everything possible to improve this system and make this better, move a motion at the next Council to dismiss your city manager.”

No motion to remove him ever came.

The city manager is the city’s chief administrator, and oversees the city’s multi-billion dollar operating budget. In 2021, Kanellakos earned a salary of more than $370,000.

In an email to councillors Monday thanking Kanellakos for his contributions to the city, Sutcliffe said he would move a motion at city council on Wednesday to appoint the city's chief financial officer Wendy Stephanson as acting city manager.

"I would like to thank Wendy for agreeing to take on the role of Acting City Manager and I look forward to working with her and our senior leadership team in the days and months ahead," Sutcliffe wrote.