By Pepper Parr
June 21, 2014
BURLINGTON, ON.
It started on Wednesday – It was to be the first day of a three day mediation marathon that on occasion started at 7:00 am and went on into the early evening.
When a crane on the pier site toppled and revealed serious imperfections with the steel being used every one of the cross beans had to be stripped leaving just the steel that formed the lazy S curve that was to make the pier distinct. The only distinct thing about the pier is its costs and the bad taste it has left in the mouths f the people who have to pay the bill.
There were between 20and 30 people in the room at times arguing over who owes what to who on the pier construction problems. But for a time all the horses were not in the starting gate and there appeared to be some confusion as to whether or not one of the key players – AECOM – was going to show up and take part in what was scheduled as a three day event to attempt to settle the several million dollar difference of opinion on who owed who what.
While Burlingtonians and the people who visit the city do enjoy the pier – it isn’t fully paid for yet. What was put to the public as a close to $7 million project ballooned to more than $14 million and could go considerable higher when the court cases get worked out.
The city has been in litigation with Harm Schilthuis and Sons Limited (HSS), the original contractor, Zurich Insurance Company (Bonding Company for HSS), Aecom, Lombard, PV &V, Craneway (Insurance Claim)
The mediation ended on Friday. There has not been an announcement as to whether or not the parties were able to come to an agreement.
How will this city council react to whatever news the city solicitor is going to give them Monday on the outcome of the court ordered mediation over the law suits on the costs of the pier? And will council be open, honest and up front with their constituents and tell them the truth, the whole and nothing but the truth. The seven of them will be asking you to re-elect them in October.
What we do know is that a Special meeting of city council has been called for Monday, June 23rd at 10:30 an when the city’s solicitor will speak to council in a closed session on the Brant Street Pier litigation.
So – something has happened and council is to get a briefing.
here are two possible directions: Mediation was successful and the city has settled with the other parties or mediation failed and the case will then go to trial.
Mediation is a way to keep differences out of a court room. People involved in legal disputes – and in the pier situation there are five law suits – are required to at least attempt to mediate that dispute. It is useful to look at who is suing who:
Harm Schilthuis and Sons Limited (HSS) vs. City of Burlington
City of Burlington vs. Zurich Insurance Company (Bonding Company for HSS)
City of Burlington vs. HSS, EFCO, Aecom, Lombard, PV &V, Craneway (Insurance Claim)
City of Burlington vs. Aecom
HSS vs. Lombard, PV &V, City, Craneway (Insurance Claim)
What is instructive here is that HSS, the original contractor, is suing their insurance company and their insurance broker. You sue when you believe the service you bought was not delivered. HSS is also suing the city of Burlington – they believed they delivered and that the city has not paid for what was delivered.
The city is suing Zurich insurance – this is the company that provided the performance bond for the construction company – HSS. Early in this term of council the insurance company, Zurich, offered the city an alternative construction solution which the city turned down.
If mediation was successful and the parties came to an agreement council may be asked to approve the settlement. Frequently in such settlements one of the conditions is a “confidentiality agreement” often referred to as a gag order. No one is allowed to say anything other than that a settlement was reached.
The city sent more than $1 million on legal fees and didn’t want the public to know until the Post filed a Freedom of Information request which the city at first decided to argue against but saw the error of that idea and held a press conference in January at which they had then city manager Jeff Fielding tell the public that $1,349,952 $1. had been spent to date on just the legal fees. The city would get a rebate on the tax portion of that bill – but a million dollars is still a million dollars.
While no one on city council will admit it today – there was more than one occasion when the city had an opportunity to settle the dispute for a lot less than it is going to cost. Exactly how much the cost will amount to may be known on Monday – in a perfect world council would have the courage of their convictions to tell the public just what that costs is – but we should not hold our breath.
While the pier problems didn’t originate with this council – all that started when Rob MacIsaac became Mayor and wanted a grand legacy project that would put Burlington on the map. And it certainly did that. Things began to go wrong when a crane that was doing work on the pier toppled over.
The contractor at the time HSS and the insurance underwriters took a closer look at the steel that was being used – and there were problems with the product. At first a few beams were to be taken out and then a few more and before the public knew the structure had been stripped of much the steel and the original contractor was of the site.
The city re-tendered the project, a new contractor was brought in along with dozens of inspectors who checked every foot of the steel that was being fabricated to ensure that nothing went wrong the second time around.
The pier officially opened last June.
A closing note in a story that may not be over yet. Earlier in the week I had occasion to be having coffee with two people who were both candidates for council in the October municipal election. It was a fine late Spring day and after coffee the two council wanna be’s decided to take a stroll towards the pier. Neither had been out on the pier before, which stunned this reporter.
Is the pier an unpopular place? Is it a $20 million dollar mistake? While the city uses a figure of $14 million + as the cost of the pier – the mediation is going to move that number very very close to $20 million.
The question the Gazette has is this: Will the public ever be given a full detailed accounting as just what Rob MacIsaac’s dream has cost the city?