Pelham approves audit
Port Colborne regional councillor calls move tied to east Fonthill development ‘damage control’.
Pelham council is making it clear its decision to conduct a third-party audit of its east Fonthill project is not a response to scrutiny from Niagara Region.
Instead, councillors say they approved a motion by Mayor David Augustyn Monday night to hire KPMG to conduct an audit, hoping it will reassure taxpayers that nothing untoward occurred in transactions for the development of its community centre and twinpad arena southwest of Highway 20 and Rice Road.
Councillors also supported a second motion by Augustyn that says the town “unequivocally rejects the inappropriate request” from the Region audit committee to “accept a developer’s money to influence regional and town action.”
“We’re doing it on our hook,” said Ward 1 Coun. Richard Rybiak, who seconded the mayor’s motions.
He said council’s actions were “because the time has come I guess, in our view, that we demonstrate to people that there is absolutely nothing untoward with respect to the parkland over-dedication or the development charge deal.”
At its Sept. 18 meeting, Region audit committee members supported a motion by Port Colborne Coun. David Barrick that endorsed an offer from Niagara-on-the-Lake developer Rainer Hummel to provide $50,000 in funding while asking Pelham to conduct an independent third-party audit with the assistance of the Region procurement and internal controls department.
In an interview, Tuesday, Hummel said Pelham council’s actions were “exactly what I was afraid of.”
“The town deciding to do their own audit and deciding on the terms of reference and the questions that are going to get asked is just like asking if dandelions are yellow,” he said, repeating a comparison he made during the regional audit committee meeting.
“If that’s how he feels the taxpayer is being answered, he’s the mayor. I suppose that’s his choice. Am I surprised? Not even a little bit,” Hummel said.
He was also offended that Pelham’s motion refers to “a developer’s money to influence regional and town action,” pointing out that although he offered to pay for the audit, he did not ask to be involved in the process.
Meanwhile, Barrick said Pelham’s motion seems to be a reversal to previous calls from the town to “end the scrutiny.”
Barrick agreed with Hummel’s concern that the town’s motion is “an attempt for the town to control the scope and, therefore, outcome of any audit.”
“Pelham’s motion looks to be more about damage control than addressing the issues,” he said.
Despite concerns from Hummel and Barrick, Rybiak said the foremost concern for town councillors is to ensure the vast majority of residents, whom he described as “fair-minded and reasonable,” are given the information they need to be assured that the town’s actions were “ethical, legal, normal.”
“Someone that’s bent on creating a false narrative can cause concern about anything that people don’t have a complete understanding of,” Rybiak said.
Ward 3 Coun. John Durley said he hopes the audit will put the matter to rest, at least for the majority of residents.
“We hope to put everything to bed. We’re confident that we’ve done everything according to the book, that nothing has been done wrong,” he said.
“We’d like to say here’s a third party that says everything has been done properly. Let’s put this to bed. Let’s forget about it.”
He said the cost of the study has yet to be determined, but said the city should be able to cover the costs through reserves it has set aside.
Ward 2 Coun. Catherine King said developing the audit shouldn’t be costly or time-consuming, because most of the information the consultant will need is readily available.
“This situation for the last several months has had such a negative impact on everyone — on the community, on council, on staff,” she said. “I certainly hope that this is going to put that to rest.”
Pelham councillors have no doubt the town will continue to be badgered about the issue, despite the audit.
“Like I say, ‘There’s no poison that will kill a positive mind and there’s no medicine that will cure a negative mind,” Durley said.
“There’s always going to be the naysayers out there,” King said.
Regardless, King said councillors plan to close the book on the issue, once it receives the audit report.
“This is the last straw,” she said.