Statement from Mayor Cam Jackson: City is ‘surprised and disappointed’ following Brant Street Pier public notice

For immediate release: June 18, 2010

The City of Burlington is surprised and disappointed that Harm Schilthuis and Sons Ltd., who began legal proceedings against the City of Burlington in January 2010, has chosen to make selected accusations about the outstanding matters between the two parties by publishing a notice in the June 18th Burlington Post. To ensure taxpayers have the correct information, the following points are clarified:

HSS first to take legal steps against the city
On December 16, 2009, HSS notified the city, in writing, that it was unwilling and unable to complete the pier construction contract. The city’s preference is not to litigate but to find a resolution. It was HSS that first began a legal action against the city in January 2010, filing a construction lien against the city and issuing a statement of claim against the city in March 2010. The city is required to defend any claim against it.

Meeting with bonding company in July
The city has a plan of action to complete the pier in a fiscally responsible manner. In January 2010, the City of Burlington notified the contractor’s bonding company, that HSS was in default under the contract for the construction of the Brant Street Pier. This matter has been in the hands of the bonding company since that time. A meeting between the city’s legal team and the bonding company’s legal representatives is scheduled to take place the first week of July. The city’s first recourse is to give the bonding company an opportunity to remedy HSS’s default and to follow the procedures as set out in the performance bond issued by the bonding company in favour of the city.

Confidential discussions with the city and HSS
The statements made by HSS in its public notice contain several important omissions. The confidential, without prejudice discussions referred to by HSS contain significant new costs, which were not acceptable to taxpayers in the opinion of City Council, and additional conditions, which went against the advice of our legal counsel. The numerous conditions presented by HSS to the city were significant, and included warranty issues and cost increases that council is unwilling to pass on to taxpayers.

City paid HSS $3.9 million to date
HSS has said the company has not been paid by the city. To date, HSS has received $3.9 million of the total $6.5 million construction contract (before taxes), amounting to 60 per cent of the original contract. The city does not believe that HSS is entitled to further compensation at this time.

City has been harmed on pier project
The city believes it has upheld its responsibilities under the contract. The previous council approved the contract for the pier project in summer 2006. The city retained professional engineers to design the pier, hired a professional contractor to build the pier, and retained a professional engineering management firm to oversee the construction. With an incomplete pier on public display at our beautiful waterfront, it is the city and our taxpayers that have been harmed. Council will continue to pursue a course of action that fully protects taxpayers’ interests. Council and our community are anxious to get the pier completed. However, we need to protect taxpayers’ investment to date.

Communications Contact:
Donna Kell
Manager, Public Affairs
Tel: 905-335-7841
kelld@burlington.ca

Media Contact:
Mayor Cam Jackson
City of Burlington
Tel: 905-335-7600, ext. 7607
mayorjackson@burlington.ca