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January 22, 2004
DEMOCRACY IN HAMILTON

Were you were among the hundreds of people who sent letters, emails, faxes or made phone calls last fall to Premier McGuinty, Minister Dombrowsky, Minister Ramsay and other members of the Ontario government about the Red Hill expressway? We’re you puzzled by the stone wall we encountered? Today’s Hamilton Spectator has an explanation.

The newspaper reports that the City of Hamilton has employed a professional lobbying firm since 1999 to lobby the provincial government in favour of the expressway. This company charges the City $375 an hour, paid for with your taxes. So while you have a “right” to ask your government to act on your behalf, another government at City Hall has decided it can use your money to make sure your influence at Queen’s Park is minimized. The Spectator story is reproduced at the end of this email.

This is a blatant corruption of one of the few democratic rights open to citizens. The person in charge of the expressway “implementation” for the past several years is now the mayor of Hamilton, Larry DiIanni. This week we had another glimpse of Mr. DiIanni’s curious views on democracy.

On Monday, citizens were invited to speak to the Public Works Committee on whether the operation of Hamilton’s water and sewer system should be public or private. Citizens were only permitted to speak to the committee in the middle of the day when most people have to work, but nevertheless 17 presentations were made. Only one supported the privatization proposal recommended by City staff and advocated by Mayor DiIanni, and that presentation was made by a representative of the private company that currently runs the water/sewer system.

Last night Mr. DiIanni told CH television news "that those who made presentations were of special interest groups and did not represent the community". Members of CATCH (Citizens at the City Hall) observed Monday’s meeting. Mayor DiIanni arrived at the meeting at 9:54 am. He left at 10:48 am, immediately before the public presentations began. The presentations continued until 12:50. As soon as they ended, Mayor DiIanni returned to the meeting. Thus the mayor heard NONE of the citizens who he dismissed as not representing the community.

Several of the citizen presentors asked for more public consultation, including evening sessions to allow other people to speak to the committee. In response, councillors Merulla and Jackson moved to table the issue to allow this to occur. Mayor DiIanni argued against and subsequently helped defeat this motion.

Before that occurred, we got one more illustration of Mayor DiIanni’s approach to democracy. Councillor Brian McHattie asked staff to provide information about a particularly troubling part of the current contract with the private operator of the water system. The City’s 1994 agreement with this private company (then Philip Utilities Management Corporation) provides that the City pays for all required repair work that costs more than $10,000, and the private company pays for work under $10,000. There is some evidence that the private company has taken a lot of advantage of this clause by waiting until there’s more than $10,000 worth of work to be done so the City has to foot the bill. Councillor McHattie asked for records so he and other councillors could determine the truth.

Normally, requests by councillors for information from staff are automatically agreed to. But on Monday, Councillor Dave Mitchell and Mayor DiIanni objected to the request and forced a vote, defeating the request by 5 votes to 4. As a result, Councillor Sam Merulla has now taken the extraordinary step of filing a Freedom of Information request demanding that his own City government release the information.

The Public Works committee has 8 members, but DiIanni is an ex-officio member of all committees. He doesn’t usually show up, but on Monday, he cast the deciding vote to block the release of information to other city councillors.

You may have heard that Mr. DiIanni wants “public consultation” about the City budget (see below). Don’t hold your breath.


CITY BUDGET 'CONSULTATIONS'

The first opportunity for citizens to comment on the City budget mess is next Tuesday evening in Dundas where the City will hold the first of its budget consultation meetings in the former Dundas Town Hall, 60 Main Street in Dundas, from 6:30 to 9:00 pm.

Other meetings are as follows:

  • Thursday, January 29th 6:30 - 9 pm, Hillcrest Restaurant, 510 Concession St., Hamilton
  • Monday, February 2nd 6:30 - 9 pm, Stoney Creek Municipal Service Centre, 777 Highway 8
  • Wednesday, February 4th 6:30 - 9 pm, Glanbrook Municipal Service Centre, 4280 Binbrook Road, Binbrook
  • Monday, February 9th 6:30 - 9 pm, Cathedral High School, 30 Wentworth Street North, Hamilton
  • Tuesday, February 10th 6:30 - 9 pm, Millgrove Community Centre, 855 Millgrove Side Road, Millgrove

Red Hill lobbyist gets $375 an hour
Area Liberals puzzled why city uses PR firm

By Joan Walters
The Hamilton Spectator, Thursday, January 22, 2004

A Toronto consulting firm is getting $375 an hour to deal with Ontario politicians on the city's behalf, despite the strong relationship the mayor says Hamilton now has with Queen's Park.

StrategyCorp., a government relations company, has been re-registered as Hamilton's lobbyist on the Red Hill Creek Expressway issue, The Spectator has learned.

Its job is described as representing the city with the premier, his ministers and MPPs, including arranging meetings, making telephone calls and making presentations on the city's behalf.

It was a puzzle to local Liberals why the city would need lobbyists when the mayor, the premier, and all Hamilton MPPs, including a cabinet minister, are Liberals who have pledged to stay in close contact on city-related issues.

"It's up to the city, obviously," Hamilton East MPP Dominic Agostino said. "But they can already call the premier's office, and they have access any time to the ministers and MPPs. They don't have to come through somebody else."

As well, Premier Dalton McGuinty has committed to the Red Hill Creek Expressway, the funding is in place and "it's full steam ahead," Agostino said. "I'm not quite sure what government-relations work there would be."

Mayor Larry Di Ianni says the city is still dealing with the last strands of a 20-year battle to build the expressway, including threatened lawsuits.

He said StrategyCorp. is not retained directly by the city, but by lawyer David Estrin of the law firm Gowlings. Estrin is an environmental expert retained to handle the city's Red Hill legal file.

Di Ianni said the law firm should have the option "to engage whomever they feel they need."

However, Di Ianni said that "the city administration here just doesn't know what StrategyCorp. might be getting as a retainer or as a payment from Gowlings to act on our behalf."

The Spectator was able to determine from its own sources that StrategyCorp. charges an hourly fee of $375 for Hamilton's Red Hill Creek Expressway work. The amount of time being spent on the file is unknown but has been cut since the height of the protests in the summer, and has dropped since the Liberal government took over in October.

Di Ianni said he will do more checking into the situation.

"Yes, we need to understand exactly what it is our lawyer is doing for us and that's a fair question for me to ask now that I've been in the job a couple of months," he said.

"But we also need to keep our eye on the ball on Red Hill, which is still a live file."

He said he regrets the city ever had to pay lawyers and consultants, but it was necessary "because every step of the way, people threw curves at us, that's why we've had to use them."

StrategyCorp. has worked on Red Hill since 1999, when the municipality's battle to build the expressway heated up politically.

At that time, the Harris government was in power, Hamilton had poor connections at Queen's Park, and the city needed hired guns to push for its interests on many fronts.

Now, the expressway fight is winding down, especially with the deal reached this month with the Iroquois Confederacy.

That agreement, expected to go before council within a few weeks, covers issues such as aboriginal burial and archeological sites, highway tolls and hunting and fishing rights.

Indications are that the confederacy deal may put off a threatened $100-million lawsuit launched against the city by Mohawk native Larry Green.

The use of Red Hill consultants has caused heated debate in the city over the last few years. Last summer, then police chief Ken Robertson complained that he had not been consulted about hiring policing veteran Christine Silverberg to help head off potential conflicts with Red Hill activists.

The former Calgary police chief also worked for the city in 2002, raising eyebrows when she billed Hamilton close to $60,000 for three months' work.

Total billings to the law firm to date by StrategyCorp. have not been made public. The firm was founded by Leslie Noble, a longtime Tory adviser and campaign manager to Harris.


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