Mayor Kevin Johnson and City Councilman Robbie Waters praised City Manager Ray Kerridge, who announced yesterday that he was resigning on March 12, at a joint press conference Thursday.

Without naming anyone in particular, Johnson and Waters both blamed other council members for the negative atmosphere at City Hall. The other council members did not attend the press conference. However, Joann Cummins, district director for Councilwoman Sandy Sheedy, attended the event.

“I think the divisiveness has certainly played a role (in Kerridge’s decision),” Johnson said.

He said he was concerned that the work environment could cause “great talent” to leave.

Johnson also faulted himself for his part in the divisive atmosphere at City Hall.

Waters also used the word “great” to describe Kerridge.

“We’ve lost a great leader,” Waters said.

City spokeswoman Amy Williams answered questions from The Sacramento Press after the press conference. She said Kerridge was not available for questions Thursday afternoon. Williams responded to the question of whether Kerridge’s resignation is linked to the city’s problems with its utilities and community development departments.

A Jan. 6 grand jury report says the city may be breaking Proposition 218, a state law that mandates how city funds are used.

City officials are also confronting findings from an investigation into the department’s approval last year of 35 permits in a Natomas flood zone. The offices of the city attorney and city manager note in a Jan. 26 report that the department broke federal rules by approving the permits.

The report lists new issues, including possible violations of city planning rules, that involve the building services division of the development department.

“In any large organization, there will be issues,” Williams said.

She said Kerridge has dedicated more than 35 years to public service and felt this was a good time to transition to a private sector position. Kerridge felt the timing of his transition was good for the city, as well as for himself, Williams said.

Kerridge feels the timing of his resignation is good because of recent developments on the issues of the 35 Natomas permits and the city budget, Williams said. Kerridge said he felt there has been “significant movement” on the investigation into the city’s approval of 35 building permits in a Natomas flood zone, Williams said.

The City Council also came together at a Feb. 11 budget session — its first budget session of the year, Williams said. Kerridge said he viewed the council members’ unanimous agreement on the issue as a positive sign. The city manager’s office creates the proposed budget.

Williams further noted that Kerridge has a private sector job opportunity.

The city is facing a $35-40 million budget deficit for the 2010/2011 fiscal year, according to a Feb. 11 report.

Photos by Anthony Bento.

Kathleen Haley is a staff reporter for The Sacramento Press.