Chaos on Carden Street, a case study

Posted April 6, 2014

The big event

Last week, a judge found the city of Guelph guilty of wrongful dismissal of the primary contractor who was hired to build the new city hall as well as the Provincial Offences Court conversion of the old city hall. In a civil lawsuit, Urbacon Building Corporation, sued for $19 million. A city countersuit of $5 million joined the fray, a $3 million suit involving the architects and the bond company’s non-performance bond.

In this mixture of lawsuits, claims and counter claims and a failed mediation session, Mr. Justice Donald MacKenzie has yet to state his judgment and has encouraged the two main parties to meet and negotiate the costs.

The key element here is the judge came down on the side of Urbacon. What will eventually follow are the actual judgment and the allocation of costs. Resolution of this costs may end up in a second trial if the parties cannot agree. It will not change the verdict. That could occur if the city appeals the ruling and the verdict is overturned. That would move the case ahead by at least two more years. An appeal would increase the city’s costs in terms of legal and court costs.

A management in crisis

In the fall of 2006, Guelph voters elected former Mayor Karen Farbridge and ten councillors who were her followers.

This began an odyssey of hirings and firings as the new administration quickly shaped management into its ideological mold. The action included a mixture of policies that emphasized the environment, heritage, labour compensation, and anti-development issues.

Within months, the Chief Administration Officer (CAO), Larry Kotseff, and Chief Financial Officer (CFO), David Kennedy, were dismissed without cause. Two years later, the cost of these dismissals were more than $500,000.

Since that decision, the city has had two CAO’s and four CFO’s. This brings into question, who was deciding to dismiss long-term city managerial employees if the people charged with evaluating staff performance were let go or resigned?

The purge of staff has been a hallmark of the Farbridge administration. The fallout is staff uncertainty, fear of losing one’s job, primary and secondary mismanagement, clumsy internal organization, nepotism, loss of productivity, absenteeism, favouritism, all multiplying and leading to overall staff dysfunction.

Murphy’s rule, times two

Looking back, the Farbridge administration has had a dodgy history managing conflict. Case in point was the legal costs incurred trying to get out of a provincially mandated Public Health partnership between the City and County’s Dufferin and Wellington. The legal costs of an outside lawyer assigned to make the city’s failed case, has never been revealed. Further, the city had to cough up $10 million as its share of the new Public Health Centre on Stone Road.

In fact, the cost of consultants and lawyers has mostly been a state secret in the past eight years. As one observer noted: “This mayor has been one of the most litiganist in living memory.”

Then we connect with the Guelph Police Services request to spend $34 million on a new police headquarters. The Mayor has been a paid member of the Police Services Board since her election in 2006. Is it unfair to think that she failed to tell the board that the city couldn’t afford that expense? Instead, she informs council that the GPSB can appeal to the province to force the city to pay. Where was the Mayor’s renowned steely resolve when that topic was raised? She was missing in action (MIA).

Secrecy of operational costs continues to confound citizens. The costs of operating the multi-million dollar Waste Resource Innovation Centre (WRIC) the fancy name for the city dump remain a state secret.

Even being truthful about the annual real property tax increases escapes the administration’s responsibility to the taxpayers. Despite public protest about the annual increases exceeding the Consumer Price Index, in 2014, the property tax increase will be 4.36 per cent. When council struck the rate of 2.36 per cent last December, they conveniently left out the increase in assessment. That also boosted the cost to property owners.

The first casualty in war is the truth

Often, the details and costs of operations are conveniently left out. The task of informing the public falls on the shoulders of the 13-person city communications department. Why does Guelph need 13 staffers to communicate with the citizens when compared to General Motors, one of the largest corporations in America, which only employs 35 to do the job?

And boy! Right now those GM communicators are earning their money.

It is an example of our administration trying to control the message. There has been little opposition in the past eight years as the two newspapers and the community television channel have frequently expressed confidence in the Farbridge administration’ handling of city business. News, good or bad, should tell both sides of the story.

But this isn’t about the news media, it’s about a sick and irresponsible administration that has spent money on their aspirations, ambition and minority beliefs at the expense of the citizens.

What it all boils down to is a lack of competence that ricochets through all levels of our municipal government.

Restoring confidence in our city governance and instilling the principles of competence will be a daunting task for the next council.

What’s needed in our city is a large dose of sunshine to open the closed closets of civic power.

Reminder: Tickets for the GrassRoots Guelph Blast Off breakfast are going fast. This kick-off event is on April 16 starting at 8 a.m. at the Guelph Country Club located on 133 Woodlawn Road East. Guest speaker is Candice Malcolm, Ontario Executive Director for the Canadian Taxpayers Federation. Call Rena Akerman at 519 837 4010 for tickets. Cost is $18 advance sale or $25 at the door. Price includes breakfast buffet.

 

 

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