Nanaimo Taxpayers Wasted $5675

Nanaimo Taxpayers Nearly Wasted $11,350

In the overall scheme of things when you are talking about a city budget which exceeded $200,000,000 last year the saving of $5675 does not seem like much of a big deal.

However, it does illustrate how Nanaimo taxpayers hard earned dollars can be squandered with barely a second thought.

A Little Story With Huge Implications

This may seem like a long winded article for basically what many may consider as really small potatoes, but believe me it clearly illustrates a lot of what is wrong with how tax dollars are spent, not only in Nanaimo, but likely any municipality you would care to mention.

Centre Stage is the really poor investment city hall has made on behalf of Nanaimo taxpayers. Councillors wishing to support the arts folk in Nanaimo can rationalize providing a space for fledgling arts groups, and it seems that the money is no object, nor where the money is spent.

The building at 25 Victoria Road has an assessed value of $283,000 and so far has been supported with over $800,000 of YOUR hard earned tax dollars.

A group under the leadership of Ms Camela Tang has operated the theatre for the past three years, and during that time have been responsible for a nearly $40,000 bill being picked up by Nanaimo taxpayers due to burst pipes in an unheated building. Earlier this year the group pitched city council for a $40,000 operating grant, up from the $11.350 which council did approve.

When city council refused the $40,000 ask the group notified the city taxpayer they would no longer operate the theatre past the end of June 2014. They had already received the full $11.350 from the city to manage the facility and should only have been entitled to $5675 which would represent the amount due for six months operation. This is how Nanaimo taxpayers wasted $5675, and city council did not instruct city staff to recover the $5675. Why? A good question.

The Saga Continues

After issuing an RFP to find someone to replace Tang's group for the specified amount of $11.350 city staff came to council with a recommendation to accept a deal with a new group to run the theatre. The group was the only offer on the table.

The agreement staff was recommending said the new group would be paid $11.350 for the operation of the theatre for the balance of 2014. At this meeting I appeared as a delegate and tried to determine exactly what the new group would be paid for 2014. It was clear that Councillor Bestwick and Mayor Ruttan believed the new group would be receiving $5675 for the balance of 2014 in spite of how the agreement was written.

During that meeting when asked for clarity, Mr. Hickey a senior city manager first indicated the group would receive only 50% of the total for 2014. When I pressed, noting that is not what the agreement said, Mr. Hickey agreed that for 2014 the group would receive the full $11.350 for only half a year.

At this point city council had already approved the agreement which would have seen this new group paid twice what they thought they were agreeing to.

The Saga Continues to Continue

I asked city staff for an explanation and clarity the day after the meeting of council and was told that during discussions with the new group it was felt they should receive the full $11,350 for 2014 to help them get started.

I then asked staff when they had been given the authority to exceed the wishes of council, and have now been told the agreement has been adjusted so the new operator will only receive $5675 for 2014 rather than the previously agreed amount of $11.350.

The 'Take Away' From This Little Saga

On the evening of the council meeting, when council finally realized they had approved spending $5675 more than they thought they were, no one took steps to address the matter.

City staff would have changed nothing, had I not pointed out how this whole process was flawed, and that staff was acting beyond the authority given them by council.

A Small Saving Of Tax Dollars

As the President of the Nanaimo Ratepayers Association I have appeared before city council on a number of occasions identifying what I believe to be wasteful spending or poor decisions. This however, is the first time I can point to a genuine saving of city taxpayer dollars.

The question remains: why has this council not instructed staff to recover the $5675 Tang's group received from the city for services they did not deliver?