The Paul report delivered reinforcement for soon to be former Mayor Herb Pond’s belief that nothing illegal or untoward transpired, when he hired Tanalee Hesse without following the normal procedures in place for such hirings.
A former CAO of Penticton and Prince George, George Paul was brought in as the Third party investigator in the hiring of Ms. Hesse, an employment move which became the dominant issue of August and September council meetings and the talk of the community after a group of concerned citizens expressed their outrage at what in their opinion was a perceived special arrangement that brought Ms. Hesse into the city’s employ.
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Mr. Paul outlined that while the City did not follow the proper procedure in place for such hirings, there was no secretive agenda at play in the hiring.
Paul, reported in his findings that in his opinion, "nothing was hidden” during the course of the hiring process, suggesting that "Everyone who should have known about the decision was made aware of the decision and given an opportunity to comment," and that Ms. Hesse was formally introduced to council as the Acting Corporate Officer on the evening that council discussed the contract.
No doubt an indirect suggestion that council most likely provided tacit approval on the hiring at that time, simply by not taking issue with it as it progressed.
He also seems to have backed up the opinion of Mayor Pond that Ms. Hesse was a bargain at her 50 dollar an hour compensation scale and that "The city was fortunate to find a term contractor with the requisite skill that was willing to be compensated at this level".
Paul was investigating those portions of the process that were not part of the review of the City’s Dan Rodin who conducted his own investigation into the procedures of those days. It was an investigation that raised a few eyebrows from the concerned citizens, who felt that perhaps he was too close to the participants involved to provide an objective look at the developments and would be pressured to reach a decision to exonerate the city administration. An outcome that the Mayor seemed to predict in the Daily News on October 1.
Of course, those that still are of the opinion that something unbecoming took place with the hiring, may not feel completely comfortable with the selection of Mr. Paul as the third party. Considering his past duties and the potential for him to be in regular contact with the Mayor, council and the administration, whether through such events as the UBCM or through other governmental functions and arrangements, some may suggest that he could have a less than non-partisan outlook on the developments.
The concerned citizens group did not provide much in the way of comment from the findings of Mr. Paul, in fact the chatter on the local message board on htmf (the main platform of their outrage in the early days of the controversy) has seemed to dry up completely since the announcement of the Paul findings.
Perhaps they are taking time so as to formulate their next approach as they approach the October 27th council meeting, at which time it’s expected that Mr. Paul and possibly members of Carlyle Shepherd & Co. Chartered Accountants will be in attendance at that meeting to address questions.
It all should make for an interesting evening on Third Avenue, as the current council meets for the final time prior to the November 15th election, and providing them with one final public council session to outline their thoughts on the issue and the public perception of it.
At that point the issue may very well disappear from the agenda of current city council and the administrative branch of the civic government, but may yet live on during the upcoming council election campaign.
Two of the concerned citizens, Anna Ashley and Gina Garon, who both first became involved in the issue over the summer are running for council seats. Endorsed by a number of Rupert residents who feel they served the common good with their concerns and no doubt will still feel that there are issues of accountability and transparency at city hall.
A sentiment that may redraw that city council chamber seating chart after the middle of November.
Both the Daily News and the Northern View had details of the special session of City Council from Thursday, which outlined the results of the Paul investigation and laid the groundwork for the final scene at the end of October.
The Daily featured the developments of Thursday, as their front page, headline story.
THIRD-PARTY PROBE GIVES CITY CONTRACT ‘THUMBS-UP’
Report concludes that no-bid contract was properly handled by Mayor Herb Pond
By Kris Schumacher
The Daily News
Friday, October 17, 2008
Pages one and two
A third-party investigator into the City of Prince Rupert's controversial employment contract has concluded that "nothing was hidden" in the course of hiring Tanalee Hesse.
Prince Rupert City Council received their third-party report into the issues surrounding the municipality's employment contract with Chief Administrative Officer Gord Howie's wife at last night's special meeting of council.
Former CAO of Penticton and Prince George, George Paul, was retained to investigate the issue and report back with his observations, and ultimately supported the actions taken by Mayor Herb Pond in the hiring of Hesse without the formal approval of council.
"Everyone who should have known about the decision was made aware of the decision and given an opportunity to comment," said Paul in the report.
"Nothing was hidden, as Ms. Hesse was publically introduced as the Acting Corporate Officer on the evening that council discussed the contract ... While ultimate responsibility for these actions lies with the mayor and council through the CAO, those directly responsible for advising upon the entering into the agreements must also take responsibility for their actions or lack thereof."
Paul also found Hesse's $50 per hour compensation for services "more than reasonable," stating the cost in the local government marketplace including benefits is currently 15 per cent higher.
"The city was fortunate to find a term contractor with the requisite skill that was willing to be compensated at this level," said Paul.
"Additionally, I have reviewed the the overview of project and administrative assistance provided by Ms. Hesse under contract to the city and do not find them to be out of line with the amount of time required to complete tasks of the complexity and breadth indicated."
Paul did state that it was necessary for a resolution from city council given the circumstance that proper procedures were not being followed, but once again concluded that nothing was hidden from council.
He went on to address the concerns raised by three Freedom of Information requests.
The requests were made between April 17 and Sept. 24, 2008. Paul concluded that the latter two requests were responded to "in an appropriate and responsible manner."
However, Paul had difficulty in determining if the city erred in their handling of the first FOI request because the city apparently does not have a record of that request or the reply to it, despite an exhaustive search of city records.
He called the FOI process "difficult" for both elected and appointed city officials, stating their ability to respond to allegations and criticisms had been complicated due to the original FOI applicant not providing the city with the original documentation, documentation that could not be found on city records.
Paul also cited the city's incumbent Corporate Officer as helping to "fetter" the city's response, claiming he is in possession of city records and property and has not returned them, after requests from city legal counsel to do so.
Mayor Pond stated that it had been a "very expensive and time consuming process," and that the reason this report was released at a special meeting of council last night was to ensure it reached the public as soon as possible, as well as to ensure a more informed discussion of the results is possible at the next regular council meeting on Oct. 27.
Councilor Joy Thorkelson made a motion to allow the "concerned citizens group" that first raised questions about the contract to provide six or more written questions before Wednesday, so that Paul and the external financial auditors could prepare detailed answers to the public's most pressing questions.
Councilor Tony Briglio seconded the motion, which was passed with only councillor Nelson Kinney voting against.
Citizens wishing to have specific questions addressed are encouraged to speak with Mayor Pond, a city councillor or a member of the concerned citizens group before Wednesday, as George Paul and possibly members of Carlyle Shepherd & Co. Chartered Accountants will be in attendance at the Oct. 27 council meeting to address questions.
City policies not followed, says consultant
By Shaun Thomas
The Northern View
Published: October 16, 2008 8:00 PM
Updated: October 16, 2008 9:02 PM
The City of Prince Rupert didn’t follow its own purchasing policies when it entered into contracts with Tanalee Hesse, but the failure to do so was not done with any ill intent or in any sort of secretive fashion.
Those were the findings of an investigation by both independent consultant George Paul, who served for 13 years as the Corporate Administrative Officer for the City of Penticton and for 17 years with the City of Prince George, of Community Solutions Incorporated and an investigation by the city’s external auditors, Carlyle Shepherd and Company, and reported at a special council meeting on October 16.
“While I understand that these [procurement] procedures were not followed to the letter, one of the purposes of this policy is to ensure that procurement activities that vary from the policy are approved by City Council. The City Council was advised of the particulars surrounding the procurement of Ms. Hesse’s services. Similar to the contract execution situation, under the circumstances it was necessary to have sought and passed a resolution of council when the procedures were not to be followed,” wrote Paul, who also noted that other cities have policies that negate the need for a council resolution and that he has had signing authority for up to $500,000 in the past.
“However, everyone who should have known about the decision was made aware of the decision and given an opportunity to comment. Nothing was hidden, as Ms. Hesse was publicly introduced as the Acting Corporate Administrator on the evening that Council discussed the contract...After the Corporate Administrator position was filled on a permanent basis, at least two subsequent contracts were executed with Ms. Hesse. To my knowledge no concerns were raised by the Corporate Administrator at the time those contracts were executed and filed as City documents.”
Carlyle Shepherd and Company noted that the City did not follow its purchasing policy and regulations and that Mayor Pond signing the documents was against policy and the Community Charter, but that the “2006, 2007 and 2008 Financial Plans contemplated expenditures related to corporate administration and general corporate administration expenses that would encompass those service provided by Ms. Hesse.” Paul noted that the City’s solicitors indicate that the contracts did not violate the Community Charter “because the funds were approved by council in its Financial Plan, which was adopted by bylaw”.
Paul stated that there was no indication of senior managers within the city trying to prevent others from doing their jobs, including fulfilling Freedom of Information requests, and Carlyle Shepherd and Company noted that neither Dan Rodin nor Tina Richards, the Chief Financial Officer in 2006 and early 2007 when the contracts were in place, indicated Mayor Pond or City Manager Gord Howie interfered with their duties. Paul also found that the city responded in “an appropriate and responsible manner” as it relates to the Freedom of Information Act requests, and that “the responsibility for action is in the hands of the applicants”.
In commenting on the recommendation to review the current policies, councillor Tony Briglio acknowledged the oversight in the signing of the contracts.
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“I think we learned one thing and that is that we have a policy and we broke it. We didn’t follow it…We were all involved in the hiring [of Tanalee], but just didn’t make the motion to allow the Mayor to sign.”
Council will now give the concerned citizens group until Wednesday to offer six clarifying questions on the report and will direct Paul to have answers when he comes to the October 27 meeting, which is when council will come up with action items based on the report. Anyone with questions on the report is encouraged to either contact a member of council or of the concerned citizens group.
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