City starts court action to stop Public Health from imposing debt for new buildings

City council is seeking a court injunction to stop Wellington Dufferin Guelph Public Health from incurring costs for the acquisition or construction of capital facilities or from entering into agreements to that end until its legal authority is determined.

That court action follows Guelph’s resolution against supporting Public Health in its plans to proceed with the construction or acquisition of a new headquarters.

Mayor Karen Farbridge said on Tuesday she believes there are still alternatives to Wellington Dufferin Guelph Public Health buying land in Guelph and Orangeville and putting buildings on that land.

Public Health is planning new headquarters in those two places for a total of $22-million. The payments would be apportioned by population, with Guelph paying 49%, Dufferin 21%, and Wellington 33%.

The city said in a press release it continues to believe Public Health does not have the authority to incur debt in the city’s name without its consent. The cost to Guelph taxpayers, if the board proceeds as planned, is $10-million.

“Guelph city council has agreed it will urge the counties of Dufferin and Wellington to not support the Board of Health in proceeding with direct ownership of property,” said Farbridge.

“We will be requesting the counties participate, along with the city, in meetings with the Ministry of Health and Long Term Care to discuss alternatives that would not jeopardize provincial participation in funding accommodation costs or add to the city’s debt.”

Farbridge said one key issue is whether the province permits Public Health to incur expenses that have to be paid by the municipality.

“If the province says ‘Yes,’ we’re just going to have to deal with that,” Farbridge added.

A second concern, she said, is the province currently pays Public Health cash to help cover its leases, but there is no guarantee it will do that if Public Health owns its own land and buildings.

She said that, in effect, downloads the costs to the municipalities. However, she added that if, for example, Dufferin County owned the land and building in Orangeville and leased it to Public Health, the province would pay towards that lease – saving the municipalities money.

“There’s a big difference who owns it, and that needs clarifying,” Farbridge said.

Wellington County at its Feb. 24 council meeting, gave its approval for Public Health to purchase land in Orangeville for the building there.

Jan Craig, of Public Health, said Dr. Nicola Mercer is scheduled this Thursday to obtain similar approval from Dufferin County council.

Farbridge said she recently spoke with Wellington County Warden Chris White about the ownership issue, and he said that had not been his understanding.

Farbridge said she expects the decision from the courts on the injunction application to be decided “very quick.”

She noted capital funds for new facilities were not part of Guelph’s 2011 budget, which was approved last week.

The city acknowledges Public Health needs a new location.

Medical Officer of Health Dr. Nicola Mercer said in an interview last month the cheapest way to pay for the buildings, which have special features built into them, is to construct its own buildings.

By doing both at once, Public Health could save 8% of the total cost, simply through using one project manager and buying equipment and supplies like furnishings at the same time.

She said Public Health has spent several years searching for a building alreadyconstructed, but such buildings are “hard to retrofit” for what Public Health needs.

She needs the consent of two of the three councils to proceed.

Craig said because of the legal implications, no one can comment on the injunction application, which Public Health received on Tuesday morning.

 

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