Kennedy points finger at Phelan

SALEM – Superior Court testimony Wednesday linked Timothy Phelan to a top city official?s firing in 2011, with the former City Council president?s chief political rival – Mayor Judith Flanagan Kennedy – on the witness stand doing the talking.Kennedy told the court how former city Comptroller John Pace?s abrupt dismissal caught her by surprise – occurring as it did three days after Kennedy and the man who fired Pace discussed how Pace could repay $2,800 in salary overpayments.Meeting with Pace and former Chief Financial Officer Richard Fortucci on city budget concerns, Kennedy testified how she watched in surprise on May 6, 2011 as Fortucci “handed a piece of paper to John indicating he was seeking to terminate him as comptroller.”Asked by Pace?s attorney, Harold Lichten, how she reacted to the firing, Kennedy said she asked Fortucci: “Where is this coming from?”Kennedy went on to describe how she met again with Fortucci on the 6th and indicated she was confused by the firing in light of her previous discussion with Fortucci about having Pace repay the $2,800.?I thought we had this worked out,” she recalled saying to Fortucci.When Fortucci declined to respond, Kennedy testified she asked him if “someone else” urged him to act against Pace. She said Fortucci made a “yes” gesture and when Kennedy began reciting a list of names, Fortucci shrugged or nodded in response to hearing Phelan?s name.Asked about the testimony, Fortucci – who is currently the city?s treasurer – declined to discuss Kennedy?s recollections. Attempts to reach Phelan, who lost a bid for mayor against Kennedy last November, were unsuccessful.Pace, a Lynn resident, is suing the city, claiming his firing violates the state Whistleblower Protection Act because it occurred two months after Pace provided advice and testimony as part of Kennedy?s failed effort to remove Fortucci from the city?s top budget-making position.Two days worth of trial this week before Justice Timothy Feeley and a jury sketched out a picture of how Kennedy has dealt with the city?s top financial experts during the last five years and cast a light on Pace?s roller-coaster career.Pace wants his comptroller job back as well as “lost pay, benefits and damages reflecting emotional distress.”Questioned by Lichten, Kennedy outlined her professional relationship with Pace that included praise for him and trust in his financial judgment.?I was very confident in his knowledge of all matters financial,” she testified.As a councilor in 2003, she voted against Pace?s removal as city chief financial officer and replacement in the top finance job by Fortucci. She pushed to remove Fortucci as CFO in January 2011 because, she told Lichten, “I felt that Mr. Fortucci did not have the requisite knowledge to be charged with the important responsibility of CFO.”She acknowledged she wanted to return Pace to the CFO job and told how he had access to her City Hall office suite through a side door located yards away from his City Hall office.She appointed Pace as acting chief financial officer after Fortucci?s removal, but the City Council unanimously voted on Feb. 17, 2011 to reinstate Fortucci to the top job.In firing Pace, Fortucci – by letter – accused Pace of receiving extra pay for the CFO job between Feb. 17 and March 31, 2011 even though city lawyers advised him the council vote “automatically rescinded your temporary appointment?”Kennedy testified Pace encountered her in the mayoral office supply area on March 25 and asked:?Can you do me a favor?”?’Sure, what,'” Kennedy said she replied.?Write me a letter saying I?m no longer CFO,” she said he replied.Kennedy said then-mayoral office manager Jamie Cerulli wrote the letter but did not date it. Kennedy said Fortucci did not mention Pace?s salary overpayment until May 3 when Fortucci approached her and said, “?We?ve got a problem.?”She agreed with Fortucci that Pace should repay “several weeks” of additional pay he received but said she and Fortucci tentatively