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Building permits reinstated

Blueprint-forgery mystery deepens as city inspector calls it quits

By: Jen Skerritt

Posted: 03/13/2013 1:00 AM | Comments: 0 | Last Modified: 03/13/2013 9:36 AM | Updates

Arnel Mercado says he's pleased his home no longer faces a threat of demolition. (WAYNE GLOWACKI / WINNIPEG FREE PRESS ARCHIVES) Photo Store

What we know and don't know

It's now up to engineering regulators to determine who forged an engineer's seal on blueprints for three city properties built by Hollywood Homes.

What we know:

City building inspector Sig Steinhilber alerted city property officials to the problem with Hollywood Homes' permits.
Hollywood Homes' owner, Dave Haner, purchased the blueprints from InterPro Design, a company registered to Steinhilber's wife.
Haner was involved in a previous legal dispute with Steinhilber's son. Douglas Steinhilber hired Hollywood Homes to build a house on Perth Avenue in 2008 and later terminated the contract due to problems with the home's construction.

What we don't know:

Whether the City of Winnipeg found Steinhilber was in a conflict of interest due to his involvement with InterPro Building Design Service. Winnipeg officials have declined to discuss internal personnel issues.
Who forged the documents. Both Hollywood Homes and Steinhilber state they did not do it.

It will be up to engineering regulators to determine who forged blueprints for three Winnipeg homes after an internal city review did not probe who doctored the documents.

On Tuesday, city officials announced building permits for three of Hollywood Homes' properties on Pritchard and Bowman avenues and Chevrier Boulevard have been reinstated after an engineer certified the projects. The city had previously ordered Hollywood Homes to obtain a new building permit for all three properties or demolish them after officials discovered submitted drawings were "deliberately altered" to indicate they were approved by an engineer.

Hollywood Homes owner Dave Haner alleged he purchased the blueprints with a false engineering seal from InterPro Building Design Service, a company registered to city building inspector Sig Steinhilber's wife. Haner's allegations sparked an internal city review into building-code compliance, allegations regarding misuse of professional engineering seals and the potential conflict of interest of a city employee.

On Tuesday, city property director Barry Thorgrimson said it's not up to the city to determine who forged the seal, as the city's job is to make sure the three homes have the appropriate engineering seals and are inspected. Two of the properties are currently occupied by families who were worried their homes might be demolished after the building permits were revoked.

The engineer whose seal was forged has now approved the blueprints for the three Hollywood Homes properties, Thorgrimson said, and the city's demolition order has been lifted.

He said the City of Winnipeg's investigation is now closed and Association of Professional Engineers and Geoscientists of the Province of Manitoba will probe further into the forgery. Regulators say an individual found guilty of falsifying an engineer's seal could be charged with fraud or fined up to $20,000.

Thorgrimson said city "missed" the problems with Hollywood Homes' permits when they were initially submitted. He confirmed Steinhilber was the whistleblower who brought the permit problems to the department's attention.

Steinhilber has decided to retire. His final day of work at the City of Winnipeg was last Friday. "I'm moving on with my life. I'm starting a new chapter," Steinhilber said, declining to speak further.

The City of Winnipeg requires employees to disclose any potential conflict of interest, though officials do not have a way to track how many employees have made such a disclosure to their supervisors or department heads. According to Winnipeg's code of conduct, employees should not engage in any outside business that could interfere with or impair their ability to carry out their civic duties.

Thorgrimson said the city dealt with the potential conflict-of-interest matter internally and declined to discuss specific personnel issues. He said every employee should have an opportunity to do business outside of work if it does not jeopardize their role with the City of Winnipeg, noting officials handle each case individually.

Property chairman Coun. Jeff Browaty (North Kildonan) said he's reasonably comfortable that Winnipeg has safeguards in place to protect the integrity of inspections and permits. However, Browaty said he plans to ask for an in-camera briefing to find out more about the internal investigation.

"I think we do need to ask questions about what happened here," he said, noting issues involving city employees cannot be discussed publicly.

Arnel Mercado, who lives in the Pritchard Avenue property with his family, said he's relieved his home is no longer facing a threat of demolition. He thought there were no issues with his home until he decided to renovate the basement in November. When he applied for a permit, a city inspector told him the home never had a final inspection of its construction.

Mercado said the city should investigate the matter further and make sure there are proper protections for homeowners.

jen.skerritt@freepress.mb.ca

Republished from the Winnipeg Free Press print edition March 13, 2013 B1

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Updated on Wednesday, March 13, 2013 at 9:36 AM CDT: corrects cutline, adds fact box

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