{"id":50539,"date":"2014-12-18T08:11:11","date_gmt":"2014-12-18T13:11:11","guid":{"rendered":"http:\/\/spacing.ca\/toronto\/?p=50539"},"modified":"2014-12-18T09:57:44","modified_gmt":"2014-12-18T14:57:44","slug":"lorinc-waterfront-toronto-two-steps-ahead-minnan-wongs-forced-outrage","status":"publish","type":"post","link":"https:\/\/spacing.ca\/toronto\/2014\/12\/18\/lorinc-waterfront-toronto-two-steps-ahead-minnan-wongs-forced-outrage\/","title":{"rendered":"LORINC: Waterfront Toronto two steps ahead of Minnan-Wong’s forced outrage"},"content":{"rendered":"

\"feature-lorinc\"<\/a><\/p>\n

One of the great fictions of the Rob Ford era is that only a tiny clutch of politicians kept watch over all the devious civil servants and special interests who were busily feather-bedding at the expense of the ordinary working person.<\/p>\n

“But for my eagle-eyed diligence,”\u00a0 as this self-serving stance has it, “tax dollars would vanish into black holes, bank accounts in the Caymans, etc.”<\/p>\n

With the muting of the Fords and the departure of Mike Del Grande from council, the last devoted practitioner is deputy mayor Denzil Minnan-Wong, who made his debut at yesterday\u2019s Waterfront Toronto (WT) board meeting.<\/p>\n

Minnan-Wong, now a director, has claimed repeatedly that WT is a Kremlin-like body that actively prevents duly elected officials from getting the real goods. The most recent opportunity for his outrage presented itself last week, when the agency revealed it had gone more than $36 million over-budget on the remake of Queens Quay West, now expected to come in at $129 million, up from $94 million.<\/p>\n

\u201cI think they had an obligation as a public body to disclose that information,\u201d he told The Globe and Mail last week<\/a>. \u201cThey\u2019re far too secretive of an organization. Too many things get discussed in private. They just close the doors \u2013 they disclose that information to the board, and the public never knew.\u201d Mayor John Tory backed up Minnan-Wong, saying he was \u201cconcerned\u201d with the agency\u2019s lack of transparency.<\/p>\n

The obvious sub-text, of course, is that WT, and its directors, not only have something to hide; they have failed in their responsibility to protect public funds.<\/p>\n

In a detailed and persuasive presentation<\/a> [PDF], WT chief operating officer David Kusturin put the lie to the insinuation that the Queens Quay over-runs were just another example of botched civil works. More on his presentation in a moment.<\/p>\n

But what\u2019s also clear is that WT\u2019s board, which includes representatives from the three orders of government and exists to protect the public interest, actively sought to verify the staff\u2019s warnings about cost-overruns as early as February 2014.<\/p>\n

Spacing has obtained the summary of an independent \u201cgovernance and control review\u201d of the Queens Quay revitalization project commissioned last winter by the WT board\u2019s finance, audit and risk management committee (members: Janet Graham, Joe Pantalone, and David Johnson, with chair Mark Wilson ex officio).<\/p>\n

The report was completed by MNP.ca<\/a>, an accounting and risk management firm, and delivered to WT on February 28, 2014. According to the executive summary, the firm identified twelve factors driving cost increases and offered a second opinion on the revised project budget. Lastly, MNP suggested three key lessons about WT\u2019s procurement model; its risk modeling and monitoring policies; and \u201cboard reporting and project oversight.\u201d<\/p>\n

On this critical last point, MNP\u2019s recommendation was that WT officials pay particularly close attention during the very early stages of complex re-development projects in order to validate or re-visit pre-construction cost estimates. \u201cA rigorous risk monitoring regime will help to compare the emerging reality against the original assumptions so that when trends begin to differ from initial assumptions, adjustments can be made.\u201d It also urged regular board updates with such projects.<\/p>\n

WT officials presented the MNP report to the board, complete with financial data, last March \u2014 months before Minnan-Wong launched his rocks-and-umbrellas crusade<\/a>. In other words, there were no surprises when last week\u2019s news hit. Little wonder, then, that WT directors like Jack Cockwell, a corporate titan with long ties to Brookfield, and Dave Johnson, a veteran Tory, had nothing but praise yesterday for how WT had managed a tough project.<\/p>\n

\u201cMy sense,\u201d said Johnson, a former Mike Harris cabinet minister, \u201cis that it wasn\u2019t as if money was wasted.\u201d Added Cockwell, who sits on the board of a conglomerate with $175 billion in assets: \u201cA lot of lessons have been learned.\u201d<\/p>\n

As for the timing of last week\u2019s release of the over-run figure, Minnan-Wong, ever in search of top-spin, implied that it had everything to do with politics. WT didn\u2019t want an embarrassing number out in the world before the municipal election.<\/p>\n

But according to Kusturin, the agency didn\u2019t reveal the figure until last week because it was still in sensitive negotiations with contractors over the cost of the numerous change orders triggered by a crucial delay in work that Toronto Hydro<\/a> [PDF] was supposed to have completed before the reconstruction of Queens Quay began. (The utility couldn\u2019t begin because the Ontario Energy Board failed to sign off on the project. The budget overruns were also caused by 110 unforeseen surprises in the ground, last winter\u2019s extreme weather and inflation in the global price of marble<\/del> granite.)<\/p>\n

It\u2019s also worth comparing the board\u2019s due diligence to Minnan-Wong\u2019s latest idea: At the end of yesterday\u2019s meeting, he tabled a motion requesting that WT reports be made public a week before meetings. But that\u2019s not real due diligence; that\u2019s about sifting through documents, looking for opportunities to nit-pick.<\/p>\n

During the meeting, WT chief executive John Campbell and chair Mark Wilson both pointed out that the agency has already internalized the lessons of the Queens Quay project and will incorporate more robust risk management measures with future projects, among them the $500 million East Bayfront LRT (as yet un-funded) and the naturalization and re-routing of the Lower Don.<\/p>\n

Improved risk oversight, said Johnson, will be important \u201cconsidering the fact that there are some major projects coming up, we hope, in terms of flood prevention infrastructure.\u201d<\/p>\n

Bottom line: WT\u2019s board and managers were actively focused on protecting their shareholders\u2019 financial interests (i.e., us, the taxpayers) long before Minnan-Wong and his megaphone came along.<\/p>\n

And they will be doing that work long after he finds something else to attack.<\/p>\n

photo by Thomas Hawk<\/em><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

One of the great fictions of the Rob Ford era is that only a tiny clutch of politicians kept watch over all the devious civil servants and special interests who were busily feather-bedding at the expense of the ordinary working person. “But for my eagle-eyed diligence,”\u00a0 as this self-serving stance has it, “tax dollars wouldContinue reading “LORINC: Waterfront Toronto two steps ahead of Minnan-Wong’s forced outrage”<\/span><\/a><\/p>\n","protected":false},"author":4051,"featured_media":50547,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"ngg_post_thumbnail":0,"_ef_editorial_meta_paragraph_assignment":"","_ef_editorial_meta_date_first-draft-date":"","_ef_editorial_meta_checkbox_needs-photo":"","_ef_editorial_meta_number_word-count":"","footnotes":""},"categories":[2,5],"tags":[],"class_list":["post-50539","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-politics","category-waterfront"],"acf":[],"yoast_head":"\nLORINC: Waterfront Toronto two steps ahead of Minnan-Wong's forced outrage - 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