County and city officials are hoping an agreement reached last week over the Wellington Terrace will be a positive step towards better relations between the two neighbours.
Warden Chris White announced at council on March 29 that Guelph and Wellington have reached an agreement over a dispute on funding the seniors’ home in Aboyne, which has been dragged out since before the new Terrace was opened.
White said the issue began back in 1996 when the provincial government decided all upper tier municipalities had to provide a home for the aged or be a partner in such a facility. Wellington County owned Wellington Terrace in Elora at the time, but council several years later to build a new facility because that building needed too much work. It chose Aboyne and the county museum lands for the new location.
Guelph had partnered with the county in order to meet the provincial requirements. White said the county expected it would help pay for “bricks and mortar,” but the city felt otherwise.
The two have been in a dispute and involved in litigation over the Terrace since 2004.
The county sued because Guelph was withholding not only payment on the building, but also its share for residents from Guelph living in the building.
Further, Guelph believed only 14 per cent of the beds there were being used by Guelph citizens, and the county said that figure was 20%.
White said the agreement states the county will pay the full cost of the building and own it entirely, and Guelph will pay the 20% figure the county wants for operating costs for Guelph residents.
The result of the settlement is the county will receive $4.1 million from the city, and “We agreed to drop all lawsuits.”
But White is hoping for more than just that.
For the past several years, it seems the city and county have been battling each other in court over a wide variety of issues.
White said with this agreement he hopes “it sets the template for ambulance and social services” – two other jurisdictional disputes between the two. “I’m hoping this deal re-sets the relationship.”
He said, “The city got what it wanted. The city does not have to pay for bricks and mortar, and it’s our asset. This clears the slate for us with the city.”
He added, “We look forward to a constructive relationship with the city on long-term care going forward.”
Mayor Karen Farbridge said she is pleased with the agreement and sees better days ahead with the county.
“The Terrace agreement was particularly frustrating for county council,” she said.
That agreement went back to 1996 and there had been no other since then. When Farbridge was off council, the city became embroiled in the dispute about paying for the building of the new Terrace.
The county wanted 20% of that $26 million cost and now the city will not have to pay it.
“That was very important to us,” Farbridge said.
She said the county wanting Guelph to pay for some of the capital cost “was a key part of the litigation.”
Further, she said, in the absence of a formal agreement, Guelph had continued paying $166,000 a year as its share of the operating costs of the Terrace; about 14%.
The Terrace has 176 residents.
The new agreement calls for a 20% fee to the city. Farbridge said that appears to be a five year average and Guelph recognizes costs have gone up since 1996, when the percentage of 14 was set, “which may have been the average when the original agreement was set.”
She said the way the agreement is now structured, Guelph pays a flat 20% of operating costs even if only 18% of the Terrace residents are from the city. That percentage remains even if the city residents living there goes above 20%.
Farbridge said that gives the city certainty of costs so it can budget for it. As for better relations, Farbridge said, “I certainly hope so. I certainly appreciate working with the warden on this … It’s symbolic of wanting to advance to other things. I may help pave the way for that.”
