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This stinks so much': $74-million sand recycling contract under fire at City Hall
Edmonton Journal. Elise Stolte.
Edmonton could soon see a legislated “cooling off” period for employees wanting to do contract work with the city in the wake of a damning sand recycling audit.
The audit found its sand recycling program, which cost $74 million since 2005, was mismanaged, with a poorly worded initial contract further amended with little oversight.
On Thursday, the city manager said personal relationships between former colleagues could be part of the issue.
A city employee decided the city could save $2.5 million annually by cleaning and recycling the sand spread on streets during the winter. Then he left the city’s employ to do it. His former colleagues contracted the job to him without oversight from the law and procurement branch.
The branch told transportation committee the $2.5 million in savings were realized; city auditor David Wiun could find no record of that.
“When you put all of that together, that’s why this stinks so much,” said Mayor Don Iveson, as committee voted to explore a cooling off period. A report on what other municipalities do and recommendations will come back in January.
None of the people involved still work for the city. They retired or moved on before the audit was done.
The contract runs out at the end of December, and no sand recycling was done this summer for other reasons. New sand has been purchased to use on the streets this winter.
Doug Jones, the new deputy city manager for operations, said that decision was unrelated to the audit, but wouldn’t give more details.
Jones said few, if any, municipalities currently recycle their sand. His department will bring a detailed business case to council to determine if Edmonton’s sand recycling program should continue at all. The alternative is to dump it in a landfill.
City manager Linda Cochrane told committee the report “sickens” her: “I remain apologetic, embarrassed and sad.”
She blamed the problem on a previous lack of centralized oversight. Contracts are now handled by a central team with legal experience rather than people focused on operations. Two hundred employees have been newly trained and certified in contract management, and they’re doing a review of all long-term contracts signed previously.
As for the cooling off period, Cochrane said the city previously relied on a code of conduct that requires people to “use good judgment” to avoid a conflict or perceived conflict of interest.
“We have to pursue this cooling off period, no question,” she said, adding most organizations require a minimum of one year. “It’s not right to work for the city, then work for a company that works for the city, in a short period of time.”
Cochrane said the city is not taking legal action.
Iveson said there are still some questions to be answered.
“The investigation internally continues. We need some additional information to come to light and if any employee or contractor has any information … that would be helpful,” Iveson said.
He added those informants would have all the protections given the whistleblower whose complaint started the audit in January.
estolte@postmedia.com
