Scorching audit reveals mismanagement of Osgoode-area Springhill landfill

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It’s the dump the city forgot.

The auditor general’s office on Thursday tabled a scorching review of the city’s handling of the Springhill landfill, exposing missing documentation, unrealized revenue and complete lack of oversight in managing the deal with the dump’s private-sector operator, Tomlinson.

The contract is so bad, auditor general Ken Hughes told council’s audit committee that the city should consider if Tomlinson is a “good business partner” for this partnership and any future ones. Tomlinson does a lot of business with the city.

The former Osgoode township originally made the deal with Tomlinson to run the Springhill landfill, on Springhill Road west of Bank Street. The amalgamated City of Ottawa assumed the deal. The auditor’s office highlighted the “difficult” relations between the city and the company, which has ended up in legal disputes.

Shockingly, the auditor’s office found no documented evidence of contract management at the city prior to 2014 when it came to the Springhill landfill.

On top of that, Tomlinson allegedly showed no cooperation.

The city has only collected $6.3 million in royalties from the landfill, but the initial estimate would have the city pay up to $8 million for cleanup costs at the site, plus millions more over the next 40 years to remediate the 100-acre property. According to the AG’s office, the province has described the contamination has “one of the worst in eastern Ontario.”

According to the auditor, the city still doesn’t have a good idea of the royalty costs owed to city hall.

The dump was 75-per-cent filled as of the end of 2017.

There was an arbitration award in 2016, but according to the city, it’s secret. An arbitrator award was marked confidential and the city’s legal department has been fighting to make it not confidential, the audit committee heard.

In fact, the audit committee on Thursday was scheduled to go into a closed session to discuss the nitty gritty of the deal. It’s secret because of the legalities.

“Clearly the taxpayer got a bad deal on this from Day 1,” said Coun. Eli El-Chatiry who challenged city manager Steve Kanellakos to explain how the municipal bureaucracy didn’t better manage the contract.

“Yes, we should’ve,” Kanellakos said. “We didn’t.”

More to come.

jwilling@postmedia.com

twitter.com/JonathanWilling

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