The Boston Water and Sewer Commission and its fired general counsel Michael Flaherty have finalized a separation agreement that pays the ex-city councilor $253,670 on conditions that he won’t sue or disparage the quasi-public agency.

The seven-page severance agreement, signed last Friday by Flaherty and Commission Executive Director Henry Vitale and provided by the Commission upon the Herald’s request, includes a payout comparable to the $224,999 salary payroll records list Flaherty as having made as general counsel last year.

It was signed by both parties a day after the Herald published a report confirming Flaherty’s termination from the Commission on Jan. 10, based on public records the quasi-public agency was compelled to release to this publication after it appealed to the Secretary of State’s office following a series of ignored requests.

By entering into the agreement, and as a condition of receiving his severance payment, Flaherty agreed “not to sue or commence proceedings against” the “Boston Water and Sewer Commission, Executive Director Henry F. Vitale, in both his official and individual capacity,” all of its current and former commissioners, executive directors, and administrators, among other employees at the agency.

“Mr. Flaherty agrees that he will not, at any time after the date hereof, make any remarks or comments, orally, in writing, or via social media, which remarks or comments could reasonably be construed to be derogatory or disparaging to the Commission, or any of its officers, directors, employees, attorneys or agents,” the document states.

“Mr. Flaherty understands and agrees that any breach of his obligations under this agreement will immediately render the Commissions’ obligations and agreements null and void, he shall repay to the Commission all sums he has received pursuant to this agreement, and he will indemnify the releasees for the full and complete costs of enforcing this agreement, including reasonable attorneys’ fees, court costs and other related expenses,” it went on to state.

Per the terms of the agreement, Flaherty will receive a total severance payment of roughly $253,670.

That amount consists of a lump sum payment of $137,884; a $3,000 payment for attorneys’ fees; a $25,650 payment for 12 months of employer-paid health insurance premiums; and a $46,880 payout for unused, accrued vacation and personal time, according to the document.

The rest consists of a one-time payment of $40,253, which represents the difference between what Flaherty “was actually paid and what he expected to have been paid between April 1, 2024 and Jan. 10, 2024,” the document states.

Per the terms of the agreement, Flaherty is barred from seeking or accepting future re-employment with the Commission. He is also required to return all Commission files, documents and property, including any keys, key cards, passcards, cell phones and credit cards.

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Flaherty joined the Water and Sewer Commission in January 2024, after spending 20 years on the Boston City Council, including five years as Council president. He departed the Council for an unsuccessful run for mayor in 2009, and was re-elected to the body in 2013. He chose not to seek re-election in 2023.

Flaherty was an ally of Mayor Michelle Wu after she came into office, after having served together for a time on the City Council. That past association led some to speculate that Wu’s influence helped him quickly land the high-paying job with the Water and Sewer Commission.

The Commission has declined to provide a reason for Flaherty’s termination, and Flaherty has not responded to the Herald’s requests for comment on the matter. Public records from the Commission that first confirmed Flaherty’s dismissal cite exemptions “around producing records confirming personnel decisions.”

The Herald has also requested confirmation on the existence of an alleged commissioned investigation that led to Flaherty’s termination, and the related report for January 2025, but was told by the Commission in a records response that it “does not possess any such document.”

Subsequent inquiries and records requests after purported elements of such an investigation were reported by the Boston Globe have been ignored by the Commission.

Headquarters of the Boston Water and Sewer Commission. (Nancy Lane/Boston Herald)
Henry Vitale