Tuesday, June 19, 2012

Clr. Collins Responds

Pursuant to a recent article by The Bay Observer, referenced here, we asked Clr. Collins to respond to 6 questions we posed to him. The Clr's response is posted verbatim. Note: As the responses did not strictly follow the numbered questions, we chose to list the 6 questions, followed by the Clr's response.


Questions we posed:


1. The Bay Observer published an article recently (which can be found here http://bayobserver.ca/2012/06/15/waterfront-trust-bookkeeping-raises-eyebrows/, which presents some disturbing assertions with respect to the manner in which the Hamilton Waterfront Trust is being run financially and otherwise. Our first question to you is a general one, which allows you room to say whatever you believe is pertinent, Upon review of this article, what are your observations/response to it? (please note- this general question is understood not to take the place of replies requested to the balance of the questions below)

2. At any time were you or any members of council (to your knowledge) aware of any situation where a board member may have also been providing services for a fee, thereby creating a conflict of interest situation. Additionally, at any time where you or any members of council (to your knowledge) in violation of the code of conduct inadvertently or otherwise with respect to any matter whatsoever pertaining to the Waterfront Trust ? Can you elaborate in your answer.

3. Why were monies approved for the 1.3 million dollar grant to the Hamilton Waterfront Trust's expansion of its Williams Coffee House headquarters, in light of the fact that the construction had already been underway for months? How do you respond to those that suggest that this is indicative of a privileged relationship that is being afforded?



4. Some may wonder if the censuring of the Mayor, is in any way informed by his request for financials from the Waterfront Trust. In other words, what do you say to those who may suggest that the censuring was “payback” for the Mayor raising the issues of finances of the Trust.

5. Do you believe the Trust’s finances would withstand a forensic audit and given the Bay Observer’s article and reaction to it, would you bring forward a motion to conduct such an audit, in light of angst taxpayers may have?

6. A washroom thats price has been inflated by $400,000.00 to allegedly offset a cost overrun. True or untrue? Please explain.


Clr. Collins' response, verbatim:

Thanks for sending to me, and sorry for the slow response. Unfortunately, the story is filled with a number of inaccuracies and generalizations. Be that as it may, here's my response.

It's been a number of years since we designed and developed these projects, however I'm quite certain that any real or perceived conflicts were declared at the Conservation Authority meetings, and would be part of the public record. I'm quite familiar with the Code of Conduct for Council members, and I'm not aware of any violations pre or post adoption by council many years ago.

Your third question pertains to current matters with the Waterfront Trust, and as I'm not a board member, it would be prudent to have the board address this matter. I know from my time on the board, that the expansion of the restuarant and warm up room, including change rooms/washrooms etc were proposed as a future project.

The fourth question is a real red herring. I don't recall reading Bob Bratina's name in the Bay Observer article. The only reference to him might be the part that states "Hamilton City Council continues to strongly support the HWT". As you are probably well aware, Council unanimously supported the HWT last year when they made presentation to Council, and again last week when the City unanimously approved additional funding for more work on Pier 8.

Everyone in the community is aware that Bob Bratina was censured by council for the following reasons:

Whereas, notwithstanding the Mayor's public apology to H.R. staff in December 2011, he has recently stated that the matter of monetary compensation to a member of his staff, was left to the outcome of a review by H.R.; and

Whereas, the Mayor attempted to direct that an investigation regarding the release of information to the media pertaining to a staff member in his office included on the "Sunshine List" be conducted, including a demand that staff provide signed affidavits, without any consultation with, or authorization by Council; and

Whereas, this Council believes these actions fall below the standards of conduct which are expected of a Member of Council.

Therefore Be It Resolved:

Council formally expresses its censure of Mayor Bratina for his conduct in this matter.

As you know, the events surrounding the $30,000 pay increase to the Mayor's staffer lead to a private citizens complaint filed with the City's Integrity Commissioner. As reported in the Hamilton Spectator on June, 9, 2012, in an article entitled "Bratina reprimanded Again over Peggygate", Hamilton's Integrity Commissioner Earl Basse found that Bob had "contravened a clause in Section 13 of the code of conduct — which prohibits councillors from 'maliciously, falsely, negligently or recklessly' hurting the reputations of city employees — when he blamed his chief of staff Peggy Chapman’s $30,000 raise on the city’s human resources staff." To be clear, any suggestion that the aforementioned actions and subsequent investigations and findings have anything to do with the Waterfront Trust is a stretch.

I have complete faith in the work and the ability of the Waterfront Trust, and believe that they continue to do excellent work on Hamilton's waterfront. The article conveniently omits the fact that the Waterfront Trust adopted the City's purchasing policy as its own purchasing policy many years ago. The organization regularly receives quotes or advertises its tenders for services and/or materials and supplies. It has consistently applied these policies to the near 30 projects it has completed over the years, including but not limited to: the construction of the waterfront trail behind the homes on Beach Boulevard, the expansion of the waterfront trail through Confederation Park, the extension of the waterfront trail along the waters edge between Pier 4 and around Pier 8, the construction and operation of the waterfront trolley, the construction and operation of Williams Fresh Cafe, the purchase and operation of the Hamiltonian and Harbour Queen vessels, the redevelopment of the Lakeland Pool and lighthouse complex, the construction of two public art installations including the Rafaga Unleashed sail on Pier 8, the construction and operation of the NHL sized ice rink on Pier 8, the lease, renovation and reopening of restaurants in the former Discovery Centre, the annual fishing derby on Pier 8, etc....

As mentioned, there are many inaccuracies in the article, especially the information related to the beach trail washroom and Lakeland Pool. If memory serves me right, the washroom, sun shelter and storage building for the beach groomer was constructed for under $200,000. Another shelter was constructed in a City park at another location along the beach for another $70,000. A third structure was to be constructed in the vicinity of Van Wagners and Beach Blvd, however the building came in over budget, and the washrooms and other amenities it was to provide were incorporated into the Lakeland building. Again, to correct another inaccuracy, Kemp Construction did not perform any work on the Lakeland facility as we did not have a signed contract with them, as such they were not "subsequently paid $140,000" for work in or around Lakeland facility.

Sorry for the long response, however the article is "raising eyebrows" for different reasons, and I thought it best to provide as much information from memory as possible.

Hope this helps!

Chad 

Your thoughts? 
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25 comments:

  1. AnonymousJune 19, 2012

    Mr. Collins since the article contained "inaccuracies and generalizations" will you be launching legal actions against The Bay Observer? Or, is your name not worth the bother?

    Also, will you have your EA contact the HCA for minutes of the meetings that outline the "real or perceived conflicts you figure were declared at the Conservation Authority meetings, and would be part of the public record?"

    That should further the clearing of your name, so would be a great benefit to your reputation. Unless.....

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  2. I'm not buying this. I believe there is much more to this. There are many more questions that need answering. As for the connection to the Mayor, there may be something there. Why wasn't the financial issue investigated when the Mayor raised it some time ago? This just doesn't sit right.

    Julie

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  3. AnonymousJune 19, 2012

    Clr Collins' garbled and choppy non-reply raises more questions than it provides answers to the very clear questions he was asked.

    He uses a major part of his response to print verbatim the censure of the Mayor which is nothing but a transparent attempt to deflect the questions raised.

    If such blatant dodging of questions is considered to be fine by Clr Collins, is it really any wonder that HWT is in the mess that it is in?

    We don't need to hear you re-state your confidence level in HWT. You are an involved party in this affair both as councillor and as the past chair. It would be quite lame if you were to state otherwise.

    What these questions posed to you are trying to ascertain is whether going forward, should the residents of Hamilton have confidence in you Clr. Collins, and all those councillors who have expressed their confidence in HWT while publicly ridiculing the mayor for raising similar questions.

    Out of respect for the publishers efforts in clearly framing the questions, you should sincerely take another shot at replying more directly to each question. Your reputation and that of other councillors is at stake here.

    ReplyDelete
  4. The easy answer is to have a forensic audit done. This will determine if there is a problem.
    Sorce

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  5. AnonymousJune 19, 2012

    Why do we care about what was declared at the Conservation Authority, not every Board Member of HCA was a Board member at the Waterfront Trust.

    If there was no formal declaration of conflict at the HWT then there was a violation.

    ReplyDelete
  6. SerendipityJune 19, 2012

    In my most humble and respectful opinion, if one's goal is to be disrespectful, disgraceful and deflective, the councillor's words were well chosen.

    I agree with Sorce, a forensic audit is now absolutely, positively required.
    And, damn the cost of the audit because this is a very important story to be told. Let's go back, at least to February 1, 2005 and this report: FCS05036 (just google City of Hamilton and report no), "Payments to the Hamilton Waterfront Trust (FCS05036) (Ward 2 and 5 with City Wide Implications)
    Feb 1, 2005"

    The aforementioned gives a taste of the City bailing out the Trust and not being very happy about it; and, it was not the only time. I remember this time well, and it's about time that the truth be told.
    And, thank you Mr. Best for opening the envelope.

    First things first, I guess...Minutes from the Trust, all twelve years.

    ReplyDelete
  7. Yves DubeauJune 20, 2012

    Nothing less than a forensic audit is required.
    A question for Chad, `Why did council felt best to censure the Mayor prior to receiving a completed investigation from the Integrity Commissioner`. Is there no trust in the position of IC, If the IC would have found no fault in Bob`action it would have been impossible for council to go back retroactively and fault his behavior. At the end of the day Collins might have confidence in the Waterfront Trust but the auditor who was hired to go through the books DOES NOT!

    ReplyDelete
    Replies
    1. Yves. If memory serves me well, Collins led a stand up vote against Mayor Fred. An unnecessary political; gesture intended to embarrass him. The reprint of the censure against Bratina is a repeat of that behavior. I don't know who is right on this and as I say, a forensic audit is required, but the two behaviours I mentioned, cheapen things.
      Sorce

      Delete
    2. Yves DubeauJune 20, 2012

      Sorce- I remember the stand-up vote (watched on TV. The issue was `naturizing`the Red Hill. Fred was the only member of council who was for this and it was quite obvious, but as you mention Collin requested the vote. This was mean spirited and serve to embarrass the Fred. Collins is all for telling us about the pay raise ( in my view she was underpaid comparing the salary of previous chief of staff). How much did it cost the city in additional cost because of the vote to exclude Confed. Park from a potential site for the stadium. Collins has a lot of political capital and his fellow collaborators Merulla, Morelli and others often if not always support his endeavors the and reciprocate on their pet projects. Every ward is a kingdom to their councilor and they protect themselves from `head office`.

      Delete
    3. There is no head office. There are 16 wannabe Mayors. However, like or dislike Bratina, he IS the Mayor. A hard pill for his peers to swallow; hence some of the bizarre behaviour.
      Sorce

      Delete
  8. AnonymousJune 20, 2012

    I wonder if all the contracts that were awarded, were tendered. Another area that should be looked at.

    ReplyDelete
  9. AnonymousJune 20, 2012

    I here there is more to more come shortly.

    Waterfront Trust, Part 2

    ReplyDelete
  10. Gary SantucciJune 20, 2012

    The following excerpt from the Bay Observer remains unaddressed;

    "In a letter to HWT trustees in May, 2007, the Lakeland project was only one of a number of concerns raised by the Waterfront Trust’s former external auditors, Guyatt Wood + Moffatt. After attempting to audit the Trust’s books for 2005; Guyatt issued the following opinion: Due to an absence of adequate internal controls we are unable to satisfy ourselves that all revenues and expenditures of the organization had been recorded, nor were we able to satisfy ourselves that the recorded transactions were proper."

    Question: Did the Waterfront Trust Board and executive take this report seriously and were the issues outlined by the external auditors Guyatt Wood & Moffat addressed by the Waterfront Trust?

    It would seem that full disclosure may be the only way to determine the facts in this matter.

    ReplyDelete
  11. AnonymousJune 20, 2012

    I wonder if the full Board knew of the issues listed.

    I can't believe 6 or 7 people can stay quiet about such serious issues.

    We need to see the Minutes of all Board Meetings. If there is no mention of these issues, something is up and there needs to be a serious investigation. You could argue this is not errors or a lack of proper Governance but Fraud!

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  12. AnonymousJune 21, 2012

    Why not ask Bob Bratina since he was on the board?

    ReplyDelete
  13. Yves DubeauJune 21, 2012

    If I were in Collins shoes I would welcome a forensic audit.All of this is tarnishing the good work that he did at the Waterfront Trust and only a forensic audit could possibly remove the tarnish. The simple fact that a external auditor would not sign off on the financial statement. Having said that I was watching a re-aired interview on cable,the new councilor from Flamborough was saying that if there was a red flag at the Trust that she herself would bring an investigation to this issue. A certified auditor`s refusal to sign off on the financial report was not enough. It appears that council does not feel that this serious enough to warrant an audit. In regards to Collin`s statement that they adopted city purchasing procedures baffles me when the Hamiltonian mentioned to Collins that a building was being built while the finances were recently approved for the already started building. Is that how the city works.

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  14. SerendipityJune 21, 2012

    Council showed little interest in Mayor Bratina raising the Trust's financial issues; however, it is another matter completely for Council to totally disregard Mr. Rob Rossini, Our City's General Manager of Finance and Corporate Services.

    Council is not, and never should be, a body that can display roughshod treatment of Mr. Rossini. The red flag was raised by Mr. Rossini in 2011, and, who knows, perhaps prior as well.

    Ms. Partridge is wise to recognize that red flag, good for her, and is right to speak of an investigation. If she doesn't, others will, so it's best if a councillor leads the charge here; to leave this to a citizen body would be irresponsible of any councillor at this point.

    Let's remember Mr. Rossini's words of warning-wisdom:
    “They’re in trouble,” said Rob Rossini, the city’s general manager of finance. “Right now their revenues are not covering their expenses.” (March 29, 2011, The Spectator)

    ....and start the investigation pronto!

    ps...Councillor Farr, where the heck are you on this issue? You are a present Director on the Board, no? Say/Do Something!!

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  15. AnonymousJune 21, 2012

    It is very simple, you have an external auditor sign an Adverse Opinion and your funded by the city with City Ciuncillors as Board Members, then it is an automatic forensic audit reporting to the top finncial person at the city. He/she then reports to council and the public.

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  16. I heard John Best on Bill Kelly. Kelly did his job by challenging John, but Kelly suggesting that some might say that it is all okay because progress has been made, is hogwash. Under that line of thought, let's dismiss auditors and just let staff and politicians spend without any sense of accountability- sound like a plan?
    Sorce

    P.S. Teresa. You win an O award and bury it under another topic. I appreciate the class and humbleness. Maybe it may catch on.

    ReplyDelete
  17. Gary SantucciJune 21, 2012

    I guess that as long as the $681,000.00 washroom works that's progress.

    ReplyDelete
  18. AnonymousJune 21, 2012

    Well it is time to move this up a notch.

    There is as much chance of Chad replying with clarity, or any councillor/s taking the initiative to put their beloved leader of the gang of four, under legal scrutiny, as there was any chance of getting a sensible election outcome by forcing the re-counting of a huge number of hanging, dimpled, or pregnant chads in the infamous Florida election of 2000.

    Someone has to take a lead and open the front here:

    The Hamiltonian, Petition of the Moment:

    http://www.thehamiltonian.net/2012/01/petition-of-moment.html

    and start the process here:
    https://www.change.org/start-a-petition
    by opening a petition and sending the link to everyone in the community via facebook, twitter and local blogs.

    For detailed info and how to of petitioning etc., Sudbury has taken a lead in developing a "Citizen Petition FAQ", which you can see here:

    http://www.greatersudbury.ca/content/div_clerks/documents/CivicPetitions_FAQ_20051.pdf

    So, get on with it.

    ReplyDelete
  19. AnonymousJune 22, 2012

    When causes are worthy, on-line petitions do work. Check this out:

    http://www.indiegogo.com/loveforkarenhklein?c=home

    https://www.change.org/petitions/president-barack-obama-waive-the-income-tax-on-the-donations-to-karen-the-bullied-bus-monitor?utm_medium=email&utm_source=signature_receipt&fb_source=message

    As horrid as the circumstances above are, the public outpouring and the outcome following the public petition is truly remarkable.

    ReplyDelete
  20. Hamiltonian AdminJune 22, 2012

    Note: While we do not take sides in any petition, we will post notice of any petition that is related to Hamilton's best interests. Notify us at admin@thehamiltonian.info

    The Hamiltonian Admin

    ReplyDelete
  21. AnonymousJune 22, 2012

    This is a great idea. I will await the HWT's response. If it takes too long then let's mobilize

    ReplyDelete

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