The City of New Westminster has hacked the Hyack Festivals Association’s grant in response to ongoing concerns about “dysfunction” within the organization.
In recent years, the city has provided the association with about $150,000 plus in-kind services to organize events on the city’s behalf. City council has approved up to $15,000 cash plus in-kind services for the Hyack Parade, and $10,000 for the Canada Day fireworks.
The association had requested $185,000 in cash and $30,000 in in-kind for the Hyack Festival and parade, Canada Day celebrations, summer concert series, the Christmas parade and celebration, the Hyack float and associated expenses, the Miss New Westminster ambassador program, and staff and administration costs.
“I can’t imagine a New Westminster without a Hyack parade. I know my family loves going up every May to watch the parade. I know my family is not alone. Thousands of families in New Westminster enjoy that parade,” said Coun. Jonathan Cote. “I certainly hope the organization can take some time this year to reflect upon what happened last year, and can start to do some work on rebuilding some of the relationships.”
While Cote supported the grant for the association, he said it’s time to “put this issue to bed” for the year and deal with more important issues.
“I think what has happened with Hyack has been a distraction to our community and it’s been a distraction to this council,” he said. “I think festivals play an important role in our community, but given the significant issues facing our community, whether that be Pattullo Bridge project or some of the major infrastructure projects, we are not putting this issue into perspective.”
The City of New Westminster will require the Hyack Festival Association to submit receipts to the city and get reimbursed for the costs incurred to put on these events. It’s also requesting Hyack and the Uptown Business Association hold the parade and Uptown Live events on the same day, asking that Hyack not allocate any city funding to costs incurred related to legal and settlement costs related to last year’s dismissal of executive director Douglas Smith and adopting all of the recommendations arising out of an independent financial review.
In response to the association’s internal battles, the city hired KPMG chartered accounting to review the association’s financial records. A staff report states that no evidence was found to suggest funds were used inappropriately and the association’s books appeared to be in good order.
Still, council was divided on its support of the embattled organization, with councillors Chuck Puchmayr and Bill Harper preferring to pull the plug on all funding to Hyack.
Puchmayr said he has lost confidence in the organization and doesn’t believe it’s learned anything from the mistakes of the past year. He noted the association recently threatened to take legal action against a former Hyack director who appeared before council to seeking the city’s support for a new ambassador program.
“It has lost the confidence of the community,” Harper agreed. “They certainly lost the confidence of many of their big sponsors. They have lost the confidence of many organizations in the city. They have lost confidence with the city. I think that’s a huge problem. If they ever want to get back, they certainly have to demonstrate, to me at any rate, they need to have some real change and have a community-based board.”
Harper said “Internal strife” within the board and with past presidents led to a “complete dysfunction” at Hyack. He said the troubles began when the association’s executive terminated executive director Douglas Smith “without just cause” and without the support of the board of directors. (Smith has since received a settlement from the association.)
“The organization has not explained to the city where its $150,000 goes every year,” he said. “When we take a look at some of the reports, it looks like it has just gone into administration.”
Coun. Betty McIntosh said the city has never directed Hyack to state where the money is spent.
“I can’t sit here and not speak to it when two coucillors are maligning a group that is doing good works in this city. We’ve got to get our act together,” she said. “The amounts of money that are being suggested here are not significant.”
McIntosh said council approved $28,000 cash and $20,000 in in-kind services to the Uptown Business Association for a one-day Uptown Live event, but has given Hyack up to $15,000 for Hyack parade.
“You’ve got to give your head a shake. We are not giving them enough money to do proper events,” she said Monday night. “I don’t know how you think they are going to be able to carry through. When you have a festival, who puts the festival together except administration? That’s what Douglas Smith was paid for. He got a really good salary when he was onboard. That’s where the money went to.”
McIntosh took exception to comments that sponsors have fled from Hyack.
“What a bunch of baloney. It’s just a few councillors that are promoting this, to continue to be so darn negative,” she said. “Let’s start getting a little more positive about what we can do in this city.”
McIntosh said the recommendations from the KPMG financial review should apply to all groups getting city grants, not just Hyack.
“Those recommendations are for the city. It’s going to have to cover more than Hyack. It’s going to have to cover every grant we give out,” she said. “If you are going to create that policy, you don’t create it for one not-for-profit. You better create it for everyone.”
McIntosh questioned whether the Uptown Business Association would be asked to submit receipts to prove how it spent money on Uptown Live.
Coun. Jaimie McEvoy said the city’s grant to Hyack will be monitored right down to the penny because the association has to submit receipts for payment.
“That’s a pretty high level of scrutiny. It doesn’t get any higher than that,” he said. “There is no way to spend that money on something else. There is no way.”
McEvoy said the city is providing funds to Hyack, but it’s also sending a message about the need for the organization to get back on track.
“It’s not nearly on the scale of what Hyack used to receive before,” he said of the grant. “The city is responding to its crisis in the confidence of Hyack. That’s a fact. It doesn’t have to be zero to demonstrate that concern.”
Like his fellow councillors, McEvoy said he has opinions about actions that Hyack has and should be taking, but he doesn’t think it’s the role of government to get involved in the day-to-day operations of local groups.
“I think we do need to move forward. I still do feel the Hyack organization has a role to play in our community. I think that role is going to have to change,” Cote said. “Based on what happened last year at this point in time I am not fully convinced the Hyack organization fully represents the diversity of our community. I am not convinced the Hyack organization, based on last year, is an organization that is able to evolve and change over time, and I am not sure the organization is really aligned overall with the city’s objectives.”
