New Westminster city council is taking action to end the ongoing dispute with the Hyack Festival Association.
On Monday, city council approved four recommendations concerning the embattled organization: to request all financial records and procedures from the organization so it can conduct an independent audit; to contact the registrar of B.C. Societies to investigate the conduct of the Hyack Festival Association; to administer this year's Santa Claus Parade of Lights and other events remaining in the association's 2013 granting process; and to suspend any future funding to the Hyack festival association until these governance matters are resolved to the satisfaction of the city.
"I think what the city wants to do is make sure the money that has been given to Hyack has been spent wisely," said Coun. Bill Harper.
Harper said the request to get the registrar of societies involved is akin to having WorkSafe or another regulatory body come in and do an investigation. He said the two factions within the Hyack Festival Association are at odds about who is in charge and whether the special general meeting on Oct. 17 was legitimate under the Society Act.
While those issues are in dispute, Harper said council has decided it's best that the city administer the association's events, specifically the Santa Claus Parade, so the children of the city have an event to attend this year. As long as the city has no real idea who are the legitimate members of the association's board, he said the city didn't have any choice but to suspend funding to Hyack.
"It's unfortunate, it's been very difficult, it's been very acrimonious," he said. "The factions - I call them factions in Hyack - just can't seem to get their act together and come to any resolve."
Coun. Betty McIntosh was the lone councillor to oppose any of the four recommendations approved by council at a closed session on Monday afternoon. Although she didn't oppose the request for financial information, she doesn't believe an independent audit is required.
"I know that the financials are well in hand," she said. "They have a volunteer who is a chartered accountant, who has had the books brought up to date in the past two years. I personally believe there is absolutely no issue with the financial records."
McIntosh also didn't feel it was necessary to ask the provincial registrar of societies to investigate the matter, noting the city had received a four-page letter from a lawyer who is a past president of the Hyack Festival Association.
"This council is not doing what is best for this community in my opinion - and I have a right to an opinion," she said about "dismissing" the legal opinion.
McIntosh voted against the recommendation to take over administration of this year's Santa Claus parade, noting two Hyack members who have organized parades in the past are already planning the event. She also said council is "jumping ahead" by voting to suspend funding to the association.
"To suggest that you are suspending all funding is totally inappropriate. Again, that is one of the recommendations I oppose. I think it's not really that helpful that council has put these four recommendations forward at this time," she said. "I will await and see what the next legal opinion will be."
McIntosh also announced that her husband resigned from the Hyack Festival Association board on Monday morning - only so she would not be perceived to be in a conflict of interest when considering the matter as a councillor.
"That's the only reason that he resigned much earlier today - so that I am able to sit and discuss these situations," she stressed. "I don't want anyone to think he resigned due to any other reason. It's because I am an elected councillor and I should have the right to vote on these issues."
The ongoing saga began in July, when four Hyack executive members fired executive director Douglas Smith without getting approval from the board of directors. The board of directors rehired Smith, who later left and received a wrongful dismissal settlement.
The two factions of the board of directors submitted motions to be considered at a special general meeting on Oct. 22, with each side calling for the removal of members on the other side of the debate. After five Hyack board directors resigned on the morning of the Oct. 22 meeting, the Hyack executive cancelled the special general meeting and held a board meeting, where they filled the five vacancies with new board members (including Ken McIntosh).
Although Hyack's president cancelled the Oct. 22 meeting, about 25 people attended the venue and voted to remove the three executives from the board.
"I believe there are enough issues on the table that would raise the concerns from council as to who truly is in charge of Hyack," said Coun. Chuck Puchmayr. "There was a meeting where the president, vice president and I believe the treasurer were defeated. There is one side that says it was a legitimate meeting, the other side says it was an illegitimate meeting. We are merely asking that an independent third party, namely the branch that governs societies, intervene, look at all the information before them and come back with a decision that council can feel comfortable with - that we know who the group is who is governing Hyack."
Until the governance of Hyack is determined, Puchmayr said he doesn't think the city has any choice but to take action and to organize the parade. He said it's mandatory that the city look after taxpayers' money and mitigate any possible liability that could come from allowing the organization to continue when its governance isn't resolved.
"At this point in time, I think the organization needs some time to sort out their issues and figure out what direction and where they are as an organization," said Coun. Jonathan Cote. "I think it is prudent for the city to take a pause. I myself have lost confidence where the organization is going but I am prepared to give the organization some time to work out their issues and see where they go."
Cote said he's hopeful that the Hyack Festival Association is able to get back to a position where its can once again work with the city and put on the festivals that meet the community's needs.
Besieged Hyack president Gavin Palmer told The Record Tuesday morning that the association had yet to be contacted officially by city hall regarding the recommendations approved by council.
"They are frustrated just as we are with the situation. That's obvious," he said. "Some of the things they are requesting - we are looking at that from a legal perspective. We have to look at certain things. I don't believe they would be entitled to proprietary property. We obviously want to cooperate with the city wherever we can but we are not about to give over everything we have."
Palmer said the association has no reason to be apprehensive about making financial information available, as everything is "up to snuff" and the association has nothing to hide. He wouldn't say whether the association would disclose all sponsors and participant contact information of the events it's partnered with the city on in the past year, as was recommended in the motions approved by council.
"That's a question we have internally," he said. "We are a society. We are registered under the Society Act of British Columbia. We do have some intellectual property that is ours. That is a question we have."
Much of council's discussion concerned the issue of governance and determining who is in charge at the association. Palmer doesn't think an investigation by the registrar of societies is a bad thing and said he'd appreciate the opportunity to tell a third party what's been taking place.
"We are positive we are right. Just as the other side feels they are right," he said. "Let's get to the bottom of it. Let's move forward."
The morning after learning that city council is suspending funding to the Hyack Festival Association, taking over organization of the Santa Claus Parade of Lights, requesting an independent audit of the association and asking registrar of societies to investigate conduct of association and determine who is running the ship, Palmer remained optimistic about the future of the organization.
"We carry on what we do, period," he told The Record. "This is only slowing things down for us, which is unfortunate. It's taking us off our focus. It is extremely frustrating."
