City council has ordered a report with a detailed breakdown of the legal fees incurred by the City of Timmins.
As was hinted at last week by Councillor Walter Wawrzaszek, and placed on the agenda this week, the request is very straightforward.
"It's been mentioned in the KPMG report that we might find some savings here, but I haven't seen any reports on lawyer's fees paid out in 2015 and 2016. So I'd like a report on that if possible, if we can have a consensus," he said.
Mayor Steve Black replied swiftly to the Ward 2 Councillor.
"Just for a reminder the KPMG report was to consider an in-house counsel (lawyer). I think our past CAO (Joe Torlone) mentioned that we use a wide variety of lawyers depending on what the topic is that we're dealing with. Whether it be real estate, Police Services Act matters, in-house legal disputes on construction contracts, so there's a variety. It wasn't felt that hiring a single, in-house legal solicitor would solve all of our legal issues, and we'd still be going out to use some of those specialists. But I have no issues with getting the report and seeing the breakdown of legal fees if council wishes," said Black.
Wawrzaszek then asked current CAO Dave Landers to comment.
"We could certainly analyze the legal fees, to see where we are spending. In considering some of the use of legal services, what I've been involved in to date has been highly specialized, either environmental or construction law, which an in-house legal council would likely not be able to offer and would likely just be doing some work of sourcing out that for us. I'm not exactly sure that's the correct way to go. That being said, an analysis might point out the requirement of perhaps having a different kind of retainer for that kind of strategic legal support," said Landers.
Consultant Oscar Poloni of KPMG's Sudbury office, speaks to city council in June of 2015. Poloni made regular visits to city hall during the lengthy Core Services Review process. Andrew Autio for TimminsToday A 186-page report, prepared by consulting firm KPMG's Sudbury office, known as the 'Core Service Review' was released in October of 2015. It was a thorough probing of the city's operations, and included a number of suggestions for potential savings. Among them was a suggestion to consider in-house legal personnel.
Wawrzaszek reiterated his position.
"I really don't know how much we're paying out. If we're paying out, we'll say $500,000, could some of that be going to an employee that we could hire to do in-house, or is it a million? I don't know, so that's what I'm getting at," he said.
From 2010 to 2014, the City of Timmins spent $1.96 million on legal fees, as it relies solely on outside assistance.
The KPMG report acknowledged that outside legal assistance would still very likely be required for personnel and certain litigation matters, but the new position could take responsibility for 'less complex legal matters', including bylaw enforcement prosecution, planning matters, and insurance claims. It also said the move could be considered 'strategic', as it would create a new functional city department, and at least two positions, as an administrative assistant would also be required.
Within the report it was suggested that the city could develop a 'cost benefit analysis' to rationalize a new legal hire by consulting with larger Northern municipalities.
The cities of Sault Ste. Marie, North Bay, and Thunder Bay all have in-house legal counsel. Sudbury also has in-house legal counsel, but the position doesn't report to the CAO, but instead through the 'Corporate Services' department.
When it was time to get consensus approval to move ahead with the report, all hands went up with the exception of Councillor Noella Rinaldo.
The report will be back on a council agenda in the near future.
