Sunday, June 20, 2010

A very proper Auditor General

Much of the press coverage about the Auditor General's report on the Lansdowne redevelopment scheme has been highly misleading.

In his report delivered June 17, the City Auditor General was very clear that he had a tightly defined mandate. Put simply, he took the figures provided by the proponents of the project, he accepted their hypotheses about flows of funds, and verified that the numbers could produce the results the proponents claimed. Stated more bluntly, he checked the arithmetic and but was not allowed to question whether the calculations made any sense.

Quoting directly from the AG's report -- "The audit scope was limited to an assessment of the financial information contained in the LPP proposal. The audit did not include generating independent figures, nor was it intended to provide an opinion on the development itself. As such, it does not represent an evaluation of the merits of the underlying concepts for re-development of the Lansdowne Park site as presented in the LPP proposal (e.g., a private-sector partnership, revenue neutrality, the use of property taxes, the optimal site for a stadium, etc.)."

By contrast, we have seen all sorts of press statements such as 24hours which ran the headline "makes sense" with the sub-head "City's AG gives thumbs up to Lansdowne partnership".

The reality of what our cautious City Auditor General said is quite different from the unrestrained boosterism of the local media.

Defiance of Council by City Manager

Who is running things at City Hall?

I have just begun to read the report of the Auditor General which was delivered at a Council meeting on June 17. Right at the front of the report the AG notes that Council had approved a motion (77/11) on November 9, 2009 in which the City Manager was instructed to "commission an independent study to evaluate the various consequences of dedicating property taxes to a single expenditure in the City's budget and the Auditor General verify the methodology".

The Auditor General notes that "Management did not complete the independent study referred to in Motion 77/11. As such, the Auditor General could not verify the methodology."

So Council directs the City Manager to deliver a study, but nothing is done. In spite of the fact that this is one of the studies that Council directed to be delivered in conjunction with its consideration of the so-called Lansdowne Partnership plan, it seems that Council is about to proceed to consider the plan regardless.

This is the same City Manager that cancelled a design competition for Lansdowne Park even though it had been approved by Council. The City Manager failed to come back to Council to seek its approval for the cancellation -- apparently he just went ahead and did it on his own. Later he did indicate, without remorse, that this may have been an error. Such reversal of a Council decision is something that Council itself cannot do easily, but it appears that the City Manager can do as he wishes.

Now we have the second time the City Manager has defied Council and refused to carry out its instructions.

It is time for a motion of censure to be brought before Council. In addition, any further discussion of the infamous Lansdowne Partnership plan should be deferred until the report called for in motion 77/11 is delivered and considered by Council.