By Alan Halberstadt
http://www.alanhalberstadt.com/
If City Council decides Monday night to fire the three staff in the Auditor General's office and become the first city in the province to outsource this function, the question arises -- what will become of the long-awaiting WFCU arena audit? The completion of this audit has been delayed since before the October municipal election, one of the reasons being the shortage of staff in the Auditor General's Office.
Now that the hiring of the Auditor General has been delayed again, and the specter of outsourcing has raised its head, there is legitimate concern that the WFCU Audit may never see the light of day.
Monday, February 28, 2011
Friday, February 25, 2011
Why Not Windsor?
By Alan Halbersadt
AlanHalberstadt.com
St. Catharines’ to spruce up downtown with performing arts school, theatre.
MICHAEL POSNER From Monday's Globe and Mail Published Sunday, Feb. 20, 2011 9:40PM ESTIn a novel attempt to resurrect its economic fortunes, hard-luck St. Catharines, Ont. has chosen Toronto’s Diamond and Schmitt Architects to build a new $94-million performing arts school and theatre complex in the heart of its decaying downtown.
What’s unusual about the rejuvenation project is that it’s being done in tandem with one of the city’s major institutional citizens – Brock University.
If everything goes well, Brock will move its Marilyn I. Walker School of Fine and Performing Arts – 500 students and faculty members – from its main campus at the city’s south end to a retrofitted Canada Hair Cloth building on historic St. Paul Street in April, 2014. The historic textile factory, built in 1882, closed in 2007.
At the same time, just up the hill, the new, 150,000 sq. ft., multi-venue St. Catharines Centre for the Performing Arts will open. In addition to a 700-seat main theatre, the plan includes a 300-seat recital and rehearsal hall, a 200-seat cinema, and a 300-seat community dance studio. Brock also intends to move its entire commercial theatre program, about 60 events each year, to the new downtown main stage.
Diamond and Schmitt won the design competition for both projects.
The city government has been assembling land near the southwest corner of St. Paul and Carlisle Streets for a few years. To finance construction, Ottawa and Queen’s Park are jointly providing $36-million for the $54-million Performing Arts Centre, while the Ontario government is contributing $26.2-million to the 104,000 sq. ft. Walker School, which has a construction budget of $39.6-million. To cover its share, Brock University aims to raise about $20-million through its current capital campaign.
AlanHalberstadt.com
St. Catharines’ to spruce up downtown with performing arts school, theatre.
MICHAEL POSNER From Monday's Globe and Mail Published Sunday, Feb. 20, 2011 9:40PM ESTIn a novel attempt to resurrect its economic fortunes, hard-luck St. Catharines, Ont. has chosen Toronto’s Diamond and Schmitt Architects to build a new $94-million performing arts school and theatre complex in the heart of its decaying downtown.
What’s unusual about the rejuvenation project is that it’s being done in tandem with one of the city’s major institutional citizens – Brock University.
If everything goes well, Brock will move its Marilyn I. Walker School of Fine and Performing Arts – 500 students and faculty members – from its main campus at the city’s south end to a retrofitted Canada Hair Cloth building on historic St. Paul Street in April, 2014. The historic textile factory, built in 1882, closed in 2007.
At the same time, just up the hill, the new, 150,000 sq. ft., multi-venue St. Catharines Centre for the Performing Arts will open. In addition to a 700-seat main theatre, the plan includes a 300-seat recital and rehearsal hall, a 200-seat cinema, and a 300-seat community dance studio. Brock also intends to move its entire commercial theatre program, about 60 events each year, to the new downtown main stage.
Diamond and Schmitt won the design competition for both projects.
The city government has been assembling land near the southwest corner of St. Paul and Carlisle Streets for a few years. To finance construction, Ottawa and Queen’s Park are jointly providing $36-million for the $54-million Performing Arts Centre, while the Ontario government is contributing $26.2-million to the 104,000 sq. ft. Walker School, which has a construction budget of $39.6-million. To cover its share, Brock University aims to raise about $20-million through its current capital campaign.
Sunday, February 20, 2011
Cloak Not Lifted For New Councillors
http://www.alanhalberstadt.com/
EnWin Utilities management is holding an in camera orientation session for new City Councillors Wednesday morning, with the hydro portion starting at 8:30 a.m. at the Windsor Utilities Commission corporate offices at 787 Ouellette Ave., and lasting until noon.
I have learned that the meeting will be closed to the media and the public because part of what will be discussed is the EnWin strategy as it relates to submissions to the Ontario Energy Board.
This could mean that EnWin is making application to the OEB for another rate increase. If that is the case, it is strange that the meeting with the new Councillors Hilary Payne, Ed Sleiman and Al Mahgneigh is secret.
Council has regularly heard from Mayor Eddie Francis, head of the EnWin empire, that rate increases contemplated by EnWin are completely transparent, allowing objectors to dispute the need for the local hydro distributor to raise rates.
For several years now, I have been calling for EnWin to open its books to the media and the public. The appeals have fallen on deaf ears, with Fortress EnWin defenders claiming that confidentiality is required since, by Ontario statute, the hydro distributor is a private corporation.
In January, as a member of the city's audit committee, I proposed the following audit be conducted by the Auditor General’s office:
Potential audit topic:
As previously discussed I would like to submit a proposal for the Auditor General's Office to commence a value-for-money audit on our two city-owned utilities -- EnWin Canada Limited and its affiliates, as well as the Windsor Utilities Commission (WUC).
I conducted a survey of voters in Ward 4 during the recent municipal election and the number one priority of the respondents was the “End Hidden EnWin Utilities taxes. Another constant complaint from taxpayers has been the rising cost of water rates, and all the fixed fees attached to the combined EnWin-WUC bills.
In my research as a layperson and City Councillor, I have confirmed that WUC pays EnWin over $10 million a year for services provided by EnWin. KPMG has apparently determined that this is a good deal, however, the work has never been tendered, which might be a concern to any Auditor General.
A value-for-money audit could also look into the advantages of having EnWin apply to the Ontario Energy Board for non-profit status. If that occurred, there could be an opportunity for EnWin to provide the services to its WUC affiliate without tacking on a profit charge.
Another alternative, and one that might be cleaner, would be to transform WUC into an independent agency. The current model, in my mind, is broken, since WUC’s top managers answer to the president of EnWin, audit committee chair Max Zalev.
Because they double as VPs of EnWin, and EnWin is a profit corporation, the salaries of the WUC managers are not disclosed to the public, a transparency issue given the consequent exemption from the provincial Sunshine laws.
I am aware that an EnWin audit was conducted in the past by KPMG, but that audit was severely limited in scope, and it is my understanding that value-for money was not paramount in the reviews.
Since that audit, EnWin received several million dollars from the provincial government to implement the smart meter program, and ratepayers have not received an accounting on that file.
I believe it is incumbent upon EnWin to disclose how that money has been spent, how much remains and how effectively the program is being implemented. The lowering of legal and consulting fees is also high on the priority list of Windsor citizens, and I am aware that both EnWin and WUC make liberal use of these external services.
This would be another focus of a value-for-money audit.
At the meeting where my proposal was heard, Audit Committee Chairperson Max Zalev spoke against an EnWin Audit, claiming he was not in conflict of interest even though he doubles as President of EnWin.
The Committee decided not to go ahead with the audit.
Now City Council is contemplating eliminating the Auditor General function entirely, again delaying the hiring of an Auditor General in early February. The matter comes before Council again on Feb. 28 with much at stake.
The demise of the Auditor General Office would pretty well eliminate any chance that the cloak will come off the EnWin books, and terminate the arms-length, independent auditing function at Windsor City Hall.
EnWin Utilities management is holding an in camera orientation session for new City Councillors Wednesday morning, with the hydro portion starting at 8:30 a.m. at the Windsor Utilities Commission corporate offices at 787 Ouellette Ave., and lasting until noon.
I have learned that the meeting will be closed to the media and the public because part of what will be discussed is the EnWin strategy as it relates to submissions to the Ontario Energy Board.
This could mean that EnWin is making application to the OEB for another rate increase. If that is the case, it is strange that the meeting with the new Councillors Hilary Payne, Ed Sleiman and Al Mahgneigh is secret.
Council has regularly heard from Mayor Eddie Francis, head of the EnWin empire, that rate increases contemplated by EnWin are completely transparent, allowing objectors to dispute the need for the local hydro distributor to raise rates.
For several years now, I have been calling for EnWin to open its books to the media and the public. The appeals have fallen on deaf ears, with Fortress EnWin defenders claiming that confidentiality is required since, by Ontario statute, the hydro distributor is a private corporation.
In January, as a member of the city's audit committee, I proposed the following audit be conducted by the Auditor General’s office:
Potential audit topic:
As previously discussed I would like to submit a proposal for the Auditor General's Office to commence a value-for-money audit on our two city-owned utilities -- EnWin Canada Limited and its affiliates, as well as the Windsor Utilities Commission (WUC).
I conducted a survey of voters in Ward 4 during the recent municipal election and the number one priority of the respondents was the “End Hidden EnWin Utilities taxes. Another constant complaint from taxpayers has been the rising cost of water rates, and all the fixed fees attached to the combined EnWin-WUC bills.
In my research as a layperson and City Councillor, I have confirmed that WUC pays EnWin over $10 million a year for services provided by EnWin. KPMG has apparently determined that this is a good deal, however, the work has never been tendered, which might be a concern to any Auditor General.
A value-for-money audit could also look into the advantages of having EnWin apply to the Ontario Energy Board for non-profit status. If that occurred, there could be an opportunity for EnWin to provide the services to its WUC affiliate without tacking on a profit charge.
Another alternative, and one that might be cleaner, would be to transform WUC into an independent agency. The current model, in my mind, is broken, since WUC’s top managers answer to the president of EnWin, audit committee chair Max Zalev.
Because they double as VPs of EnWin, and EnWin is a profit corporation, the salaries of the WUC managers are not disclosed to the public, a transparency issue given the consequent exemption from the provincial Sunshine laws.
I am aware that an EnWin audit was conducted in the past by KPMG, but that audit was severely limited in scope, and it is my understanding that value-for money was not paramount in the reviews.
Since that audit, EnWin received several million dollars from the provincial government to implement the smart meter program, and ratepayers have not received an accounting on that file.
I believe it is incumbent upon EnWin to disclose how that money has been spent, how much remains and how effectively the program is being implemented. The lowering of legal and consulting fees is also high on the priority list of Windsor citizens, and I am aware that both EnWin and WUC make liberal use of these external services.
This would be another focus of a value-for-money audit.
At the meeting where my proposal was heard, Audit Committee Chairperson Max Zalev spoke against an EnWin Audit, claiming he was not in conflict of interest even though he doubles as President of EnWin.
The Committee decided not to go ahead with the audit.
Now City Council is contemplating eliminating the Auditor General function entirely, again delaying the hiring of an Auditor General in early February. The matter comes before Council again on Feb. 28 with much at stake.
The demise of the Auditor General Office would pretty well eliminate any chance that the cloak will come off the EnWin books, and terminate the arms-length, independent auditing function at Windsor City Hall.
Friday, February 18, 2011
Alan's CBSA Resolution
http://www.alanhalberstadt.com/
That Windsor City Council urge Canada’s Public Safety Minister Vic Toews to establish a moratorium on the Canada Border Services Agency decision to locate a regional headquarters in Ft. Erie, initially resulting in the loss of 18 jobs at Windsor’s CBSA administration offices, until such time as the full disclosure of the impact on jobs, security and trade are made available to the public.
Approved unanimously on Feb. 14
Background
· On January 31, 2011 the Canada Border Services Agency announced the creation of a new southern Ontario region amalgamating the Windsor/St. Clair and Niagara/Ft. Erie regions.
· As part of this announcement the CBSA has decided that it will locate the new regional headquarter in Ft. Erie-the decision will take effect April 1st, 2011.
· This decision is part of the Federal Government’s Strategic Review Initiative that has as its goal to maximize efficiency and effectiveness in the Federal Public Service.
· In the immediate future we know that 18 positions will be affected-over time we expect that Windsor will lose up to 100 CBSA jobs both through attrition and migration.
· Sources within the CBSA suggest that Windsor was the preferred location based on empirical analysis and that the decision to locate the new HQ in Ft. Erie came from the Conservative Cabinet-Ft. Erie is located in a riding held by Conservative Cabinet Minister-Rob Nicholson.
Why Windsor is Preferable for Regional HQ
- Windsor is Canada’s busiest border checkpoint and is proceeding with a new major border infrastructure project that will dramatically increase capacity.
- Published reports indicate that Windsor is a major entry for gun, drugs and human trafficking-any reduction in administrative capacity at this point is irresponsible.
- By every metric relevant to the Strategic Review Windsor exceeds Ft. Erie:
- Present and future infrastructure commitments
DRIC
- I mpacts on staff
- More CBSA employees in Windsor than Ft. Erie
- Trade and travel volumes
- No dispute that Windsor>Ft. Erie
- Stakeholder impacts
- US a major stakeholder-how is a reduction in administrative capacity at our busiest border interpreted by our US partners in the context of addressing border thickening?
- Less capacity=less security
- Less capacity=less efficiency
That Windsor City Council urge Canada’s Public Safety Minister Vic Toews to establish a moratorium on the Canada Border Services Agency decision to locate a regional headquarters in Ft. Erie, initially resulting in the loss of 18 jobs at Windsor’s CBSA administration offices, until such time as the full disclosure of the impact on jobs, security and trade are made available to the public.
Approved unanimously on Feb. 14
Background
· On January 31, 2011 the Canada Border Services Agency announced the creation of a new southern Ontario region amalgamating the Windsor/St. Clair and Niagara/Ft. Erie regions.
· As part of this announcement the CBSA has decided that it will locate the new regional headquarter in Ft. Erie-the decision will take effect April 1st, 2011.
· This decision is part of the Federal Government’s Strategic Review Initiative that has as its goal to maximize efficiency and effectiveness in the Federal Public Service.
· In the immediate future we know that 18 positions will be affected-over time we expect that Windsor will lose up to 100 CBSA jobs both through attrition and migration.
· Sources within the CBSA suggest that Windsor was the preferred location based on empirical analysis and that the decision to locate the new HQ in Ft. Erie came from the Conservative Cabinet-Ft. Erie is located in a riding held by Conservative Cabinet Minister-Rob Nicholson.
Why Windsor is Preferable for Regional HQ
- Windsor is Canada’s busiest border checkpoint and is proceeding with a new major border infrastructure project that will dramatically increase capacity.
- Published reports indicate that Windsor is a major entry for gun, drugs and human trafficking-any reduction in administrative capacity at this point is irresponsible.
- By every metric relevant to the Strategic Review Windsor exceeds Ft. Erie:
- Present and future infrastructure commitments
DRIC
- I mpacts on staff
- More CBSA employees in Windsor than Ft. Erie
- Trade and travel volumes
- No dispute that Windsor>Ft. Erie
- Stakeholder impacts
- US a major stakeholder-how is a reduction in administrative capacity at our busiest border interpreted by our US partners in the context of addressing border thickening?
- Less capacity=less security
- Less capacity=less efficiency
Tuesday, February 15, 2011
February 14 Council Question
by Alan Halberstadt
Ward 4 Councillor Alan Halberstadt asks why the rent the Provincial Offenses Office administration has negotiated with the Westcourt Building is set to rise by 50 cents per square foot every year for five years (costing the city $34,000 more a year in 2016) when commercial rents are being flat-lined or reduced across the city due to record high vacancy rates.
This item was deferred last night, on the request of Mayor Eddie Francis, and is due to come back in front of City Council later this month.
Ward 4 Councillor Alan Halberstadt asks why the rent the Provincial Offenses Office administration has negotiated with the Westcourt Building is set to rise by 50 cents per square foot every year for five years (costing the city $34,000 more a year in 2016) when commercial rents are being flat-lined or reduced across the city due to record high vacancy rates.
This item was deferred last night, on the request of Mayor Eddie Francis, and is due to come back in front of City Council later this month.
Tuesday, February 8, 2011
Windsor Auditor General On Hold Pending Review
A guest blog by Chris Schnurr
Why am I not surprised the Auditor General was not hired?
It was a mysterious Blackberry email that has delayed Windsor’s 3-year quest to hire an auditor general.
The delay this time? Information provided during a council meeting advising that the City of London was contracting out their internal audit functions over hiring an Auditor General.
As a result, city council voted 9-1 to have administration study what London was doing.
London was considering contracting out audit functions over appointing an Auditor General. A report to London’s audit committee November 15, 2010 can be read here.
At first glance, there appears to be significant differences in powers between an Auditor General and those of a contracted out auditor – namely greater legislative authority to pry into city finances – something an external auditor would not have.
The report highlights several benefits to hiring an Auditor General with the most significant being the ability to audit a municipality’s local boards, corporations and grants recipients.
Windsor Airport, the Tunnel Commission and Enwin Utilities could conceivably be audited under the Auditor General model.
A contracted out auditor may only examine boards and commissions by request, and cannot audit grant recipients.
Thus, an audit of Windsor Airport, the Tunnel Commission or Enwin presumably could only be conducted if requested and authorized by city council.
An Auditor General may also examine an individual under oath. A contracted out auditor cannot.
According to the London Free Press, an outside firm would lack the powers an Auditor General has:
The previous council drove the issue to the one-yard line, with politicians voting unanimously in favour of hiring an outside firm that lacks the full powers of a true financial watchdogfor taxpayers (Patrick Maloney, London Free Press, December 15, 2010).
That council had decided to hire PriceWaterHouseCoopers for approximately $300,000, but London’s Chamber of Commerce preferred the Auditor General model at $800,000:
But Gerry Macartney, general manager of the London Chamber of Commerce, disagrees.
The chamber has called on the city to spend as much as $800,000 to hire an auditor general, a position Macartney says has several advantages.
An auditor general, he says, has legislative powers to probe city financial books that an external firm would not.
As for the increased cost, Macartney says chamber research shows cities can expect a 308% return annually on what they spend on an auditor general.
Fontana, who couldn’t be reached for comment Tuesday, spoke out during the election campaign in favour of the auditor general. The post would “strengthen the process and procedures and responsibilities,” he argued (Patrick Maloney, London Free Press, December 15, 2010).
Frankly, this smacks of a tactic to thwart prying eyes from the finances at Fortress Enwin or the newly created Windsor Airport Corporation.
How convenient.
Why am I not surprised the Auditor General was not hired?
It was a mysterious Blackberry email that has delayed Windsor’s 3-year quest to hire an auditor general.
The delay this time? Information provided during a council meeting advising that the City of London was contracting out their internal audit functions over hiring an Auditor General.
As a result, city council voted 9-1 to have administration study what London was doing.
London was considering contracting out audit functions over appointing an Auditor General. A report to London’s audit committee November 15, 2010 can be read here.
At first glance, there appears to be significant differences in powers between an Auditor General and those of a contracted out auditor – namely greater legislative authority to pry into city finances – something an external auditor would not have.
The report highlights several benefits to hiring an Auditor General with the most significant being the ability to audit a municipality’s local boards, corporations and grants recipients.
Windsor Airport, the Tunnel Commission and Enwin Utilities could conceivably be audited under the Auditor General model.
A contracted out auditor may only examine boards and commissions by request, and cannot audit grant recipients.
Thus, an audit of Windsor Airport, the Tunnel Commission or Enwin presumably could only be conducted if requested and authorized by city council.
An Auditor General may also examine an individual under oath. A contracted out auditor cannot.
According to the London Free Press, an outside firm would lack the powers an Auditor General has:
The previous council drove the issue to the one-yard line, with politicians voting unanimously in favour of hiring an outside firm that lacks the full powers of a true financial watchdogfor taxpayers (Patrick Maloney, London Free Press, December 15, 2010).
That council had decided to hire PriceWaterHouseCoopers for approximately $300,000, but London’s Chamber of Commerce preferred the Auditor General model at $800,000:
But Gerry Macartney, general manager of the London Chamber of Commerce, disagrees.
The chamber has called on the city to spend as much as $800,000 to hire an auditor general, a position Macartney says has several advantages.
An auditor general, he says, has legislative powers to probe city financial books that an external firm would not.
As for the increased cost, Macartney says chamber research shows cities can expect a 308% return annually on what they spend on an auditor general.
Fontana, who couldn’t be reached for comment Tuesday, spoke out during the election campaign in favour of the auditor general. The post would “strengthen the process and procedures and responsibilities,” he argued (Patrick Maloney, London Free Press, December 15, 2010).
Frankly, this smacks of a tactic to thwart prying eyes from the finances at Fortress Enwin or the newly created Windsor Airport Corporation.
How convenient.
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