Hospital dodged big
severance expense

TAXPAYERS WERE
saved a potentially costly
severance package when
Terrace Area Health
Council chief executive
officer Michael Leisinger
left his job last September.

A clause in Leisinger’s
contract, which is fairly
standard for managerial
contracts in the public

“health sector, could have

triggered the payment of a

year’s pay after he left the
health council’s employ
without cause.

‘Instead, a deal was
worked out with Leisin-
ger’s new employer, the
Northern: Interior Regional
Health Board in Prince
George, says local health
council chair Bob Kelly.

' "The key part of the deal
-ealls for the local health
-council to pay Leisinger’s
salary for six months. That
deal concluded the end of
March.

But that doesn’t mean
an extra cost to the health
council because the inter-
im chief executive, Tom
Novak, is here on a con-
tract being paid for by the

‘ health ministry, said Kelly.

“Tt is revenue neutral to
us,” he said.

Novak, termed an
“executive mentor”, was
brought in a year ago at
the urging of the health
ministry to set straight the
deficit-plagued local

Michael Leisinger

health council.

He then took over
operations of the health
council when Leisinger
left.

From the start, Novak’s
pay has been covered by
the health ministry. He
also acted for a period as
the interim chief executive
officer of the Kitimat
health council when its
administrative head depar-
ted.

The issue of severance
and other compensation for
senior public sector health
care officials -has proved
controversial in B.C. ,

After criticism of lucra-

tive packages paid out
elsewhere, the provincial
government passed legis-
lation and created the
Public Sector Employers’
Counc

\, for instance, has set
guidelines for pay and
raises during the term of a
contract. ,

The council also prohi-
bits “double dipping,”
whereby a person who de-
parts one public sector job
and collects. severance
then begins to work for an-
other public sector em-
ployer.

In these circumstances,
the person cannot. collect
the severance as well. as
collect a salary from the
new public sector employ-
er.

And when severance is
paid, it cannot exceed 24
months worth of salary,
which has been the upper
limit in almost ali employ-
ment situations where the
courts have ordered an
award.

Health ministry officials -

declined to comment spe-
cifically on the arrange-
ment belween the local
health council and the
health board in Prince
George.

Ministry official Jenni-
fer Hazelwood said such
agreements are generally
left up to the health au-
thorities to negotiate,

Mayor names group
to finance multiplex

EFFORTS are getting started to find more
money to build Terrace’s proposed muilti-
plex with less of a bite out of local tax-

payers’ -wallets.

Mayor ‘Jack Talstra last week named a
mayor's commitiee on financing the mul-

ass,

ces of‘financing. . ..~

The move follows last November” 5 re-
ferendum defeat of the $7.6 million pro-

ject.

A 55- -per-cent majority of Terrace vo-
ters were in favour of borrowing to build
the complex, Thornhill and outlying areas

voted it down.

Talstra said after the election, that if
more money could be found there could
be a new referendum aimed at getting ap-

proval in the outlying areas.

-oup,- which, includes business ©
y councillors" ahd: sports reps,
will be charged with seeking other sour-

tee. -

“This is to look at ways and means of
obtaining financing other than from local
tax dollars,” Talstra said of the commit-

The mayor is optimistic that the fed-
eral government may approve an infra. ff

~ Structuré s"works grant for the multiplex.’
And ‘he also ‘wails, ne eC

ne

pursue corporate® ‘contributions and ° any
other. innovative financing options its

members decide are appropriate.

Reducing the borrowing cost would
make the project more palatable to voters

on both sides of the river, Talstra added.

On the commitlee are: John Bandstra,
Bob Park, Justin Rigsby, Art Erasmus,
Mayor. Jack Talstra, Ken Veldman, Steve

Scott, Betty Barton, Sharon Taylor, Lael

McKeown, Brian Downie, Archie McDo-
nald, Ron Nixon, councillor David Hull,
councillor Rich McDaniel,

Mo Takhar,

Marylin Davies, Steve Dotto, Kim Evans.

New contractors to run dump

THE TERRACE landfill
will have a new operator
as of next month.

City council accepted
Ed Moore Contracting
Ltd.’s bid of $42,500 to
operate the dump for the
next year.

The company’s bid was
far below existing operator
Double. M Ventures bid of
$119,223.

Double M had original-
ly taken on the contract for
$43,500 but found that
tight because of the col-
lapse. of the city’s con-

struction industry over the
last couple of years,

The bids are for the
city’s subsidy over and
above what a dump opera-
tor makes recycling and
salvaging material there.

The city had continued
Double M’s contract on a
month-by-month basis at a
higher rate since last sum-
mer.

City officials had hoped
to have been able to shut
the dump down by now in
favour of a new sub-regio-
nal landfill.

But that process has
slowed because of new in-
formation about the viabi-
lity of the two praposed
sites — the existing Thorn-
hill dump and a proposed
new site under considera-
tion near Onion Lake.

’ The new contract with
Ed Moore Contracting in-
cludes the possibility to
extend the onc-year deal
for two more years.

It also includes a clause
allowing either party to
terminate it on three
months notice.

f"

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