Mayor Steve Ferguson announced last week that Council and its Chief Administrative Officer, Marcia Wallace, have agreed to part ways. 

“By mutual agreement, neither members of Council nor Marcia Wallace are able to discuss why this has taken place,” noted Councillor John Hirsch, suggesting a settlement has been reached which includes a non-disclosure clause.

Those close to the situation, who spoke on condition of anonymity, clarified that it was Ms. Wallace who moved to end her contract with the municipality, citing a toxic work environment.

That was the creation of a small number of councillors who have questioned both Ms. Wallace’s expertise and integrity over a period of years.

Rancorous opposition from some councillors became increasingly poisonous, and, the sources say, even abusive, over the past year.

As CAO, Ms. Wallace was the prime mover behind the County’s ambitious plans to welcome housing developers by building the water and roads infrastructure they need, while in turn using pre-payment agreements as well as long-term development charges to pay for it.

She created the architecture for such agreements as well as enabled the County to take on long-term debt, with the surety of development charges coming to pay it back.

In 2022, the Association of Municipalities of Ontario presented Ms. Wallace with the Peter J. Marshall Innovation Award for her efforts to support new housing development.

Debt financing for critical infrastructure is risky for rural municipalities. The Association determined the County’s innovative solution of negotiating upfront financing agreements with developers to pre-pay development charges at the draft subdivision approval stage, rather than when building permits are issued, was worthy of its top laurel.

The award-winning concept was just one among her many successes during her five-year tenure as CAO.

The complexity of the planning required over the long term, and the number of moving parts involved, however, demanded some faith and trust. That proved hard for some councillors — especially those opposed to development in the first place — to muster. Ms. Wallace’s efforts to harness new growth to pay for needed infrastructure were met with determined resistance, such as multiplying demands for reports, reviews, and audits. 

Many residents received the news of her departure with sadness, as well as dismay at  the loss of the expertise required to direct County affairs during a time of rapid expansion.

“We thank Marcia for her excellent leadership in her five years of service and wish her well in her future endeavours,” Mayor Ferguson said.

The municipality will begin the search for a new CAO immediately. Details regarding the appointment of an interim CAO will be announced in the coming days.

Ms. Wallace, who holds a PhD in Urban Planning from the University of Waterloo, was hired in November 2019. She brought  more than 20 years of experience in the Ontario Public Service, most recently serving as the Assistant Deputy Minister for municipal services within Ontario’s Ministry of Municipal Affairs and Housing.

There, Ms. Wallace provided leadership to the division responsible for the Ministry’s regional offices, the Building Code, and disaster recovery programs.

Prior to this, she led high-profile policy and program initiatives at the Ministries of Municipal Affairs, Housing, and the Environment. Highlights from that work included designing site-specific solutions with municipalities in Central Ontario and a sector-wide transformation of government services in areas including brownfield redevelopment, energy projects, and environmental compliance.

The County has a history of rocky relationships with its CAOs.

Former Roads Director Robert McAuley was appointed acting CAO after the working relationship with its CAO, James Hepburn, ended in 2019. 

In turn, Mr. Hepburn had replaced ousted CAO Merlin Dewing in 2015. Mr. Dewing arrived from Sioux Lookout in 2011 and was relieved of his role four years later after he and Council agreed his leadership approach no longer aligned with the vision of the current council. 

Council unanimously approved the appointment of Ms. Wallace. She is a Registered Professional Planner and began her career as an assistant professor at York University in 1999 before joining the Ontario Public Service. 

She served as CAO of Prince Edward County for five years.