A call from some on council surfaced Thursday for Mayor Sam Katz to take responsibility and resign over project cost overruns for police and fire stations.
Days after the release of an audit showed fire hall projects had gone $3 million over budget, numbers surfaced Thursday showing costs have ballooned for the second time on the new Winnipeg police headquarters on Graham Avenue.
The mayor’s executive policy committee learned in late September that the $200 million downtown police building’s costs had increased by another $17 million because of changes to the project.
Last week, City of Winnipeg chief operating officer Phil Sheegl was forced to resign. His resignation came days before the release on Oct. 21 of the audit into fire hall projects.
But his departure may have had more to do with the new police building, not the fire stations.
“I can’t support another dime above and beyond the budget that’s there now,” said Finance Chair Coun. Russ Wyatt (Transcona).
Phil Sheegl, a friend of Katz’s, previously sat on the committee overseeing the capital costs for the new police headquarters.
“I’ve beyond mad about this,” said Coun. Scott Fielding (St. James – Brooklands).
In September, Sheegl made an unpopular decision to turf the city’s fire chief. The cost overruns for fire hall and police projects have a domino effect, using up taxpayers’ dollars slated for other facilities.
The updated price tag for the downtown police headquarters could put plans in jeopardy to build a new north district police station in Winnipeg.
Instead, it might be merged with the downtown one.
“I think you have to look at that. You have no choice but to look at that,” said Wyatt.
Coun. Ross Eadie’s Mynarski ward is the area that was supposed to be served by the new north district police station.
“The mayor and Mr. Sheegl go together. They're friends and business partners," said Eadie.
“It’s time the mayor took responsibility and he should just resign,” said Eadie.
Katz had little to say in response Thursday.
"I don't have any reaction to that. Every councillor can make a comment. That's Ross Eadie's comment and I'll let him make his comment but I wouldn't even respond to it,” said Katz.
Some worry former CAO’s Sheegl’s resignation and silence was bought with compensation.
Sources told CTV News the members of EPC received a legal opinion which said if they fired Sheegl, he could come back with a wrongful termination suit. So, a deal was reportedly struck to allow Sheegl to resign and walk away with severance pay, reported to be worth hundreds of thousands of dollars.
