#RoofLeaks kicks off

In 2012, this blog launched #LiquorLeaks, a flood of documents regarding the Liquor Distribution Branch and the BC Liberal government's thirst to privatize the storage and hauling of booze in British Columbia. 

I spelled out how BC Liberal-connected Exel Logistics and ContainerWorld were strategizing to win the business. The tendering process was abruptly halted Sept. 27, 2012, the day the B.C. Government and Service Employees' Union reached a two-year deal with government. The four shortlisted companies had yet to make their final presentations. 

There is more to come from #LiquorLeaks. In the meantime, I now introduce #RoofLeaks, a compilation of records gleaned from my Freedom of Information requests directed at the B.C. Pavilion Corporation, the taxpayer-owned company that operates the Vancouver Convention Centre and B.C. Place Stadium. These are the two biggest and most-expensive buildings in downtown Vancouver. Magnets for big events and big controversy. And I will demonstrate for you why British Columbians should be concerned about how they are managed.

For starters, PavCo is seeking an order to quash my right to file Freedom of Information requests. It has effectively blacklisted me since making a complaint on Feb. 13 to the Office of the Information and Privacy Commissioner, claiming my requests are frivolous and vexatious, repetitive and systematic.

I say PavCo is wrong on all counts and I am contesting PavCo's application, which amounts to intimidation just ahead of the election. As a journalist reporting in the public interest, my goal is to show the public how its money is spent and how its assets are managed.

On Feb. 19, NDP members Doug Routley and Spencer Chandra Herbert took-up my case in the Legislature, seeking answers from Premier Christy Clark and PavCo Minister Rich Coleman. The following is an excerpt from Hansard:

Routley

D. Routley: The Premier has made claims to open government being one of her top three priorities, even telling the media that information belongs to the public. Yet on Friday we learned that investigative journalist Bob Mackin received a letter from PavCo telling him they have applied under the Freedom of Information Act to bar him from "frivolous and vexatious" claims to information. Does the Premier agree with this outrageous act by PavCo to silence one of its chief critics?
Hon. R. Coleman: The individual that the member refers to has been making and has received some information with regards to information and privacy from PavCo. But the members opposite and the members of this House should know that he is 89 percent of all the requests of information and privacy at PavCo. It's a large volume of work, so they were finally to the point where some of it became ridiculously frivolous in their minds. They asked and they have gone forward to ask the commissioner for an opinion.
 D. Routley: It's about the public interest — an uncomfortable fact for the government. It was through these claims to freedom of information that the public found out about PavCo's hundreds of millions of dollars of overspending. It was only through these requests that the public knew this.
Does the minister responsible for PavCo stand by the position that asking about massive cost overruns is frivolous or vexatious?

Coleman

Hon. R. Coleman: Through to the member opposite: well, first of all, Member, the first thing you'd like to do yourselves is to try and get your numbers straight when you're actually making public comments. I've heard your members talk about the $100 million figure quoted for the roof for B.C. Place under PavCo's chair back in 2008. The member doesn't actually want to tell the rest of the story, which was about a pillow roof to replace exactly the same roof as was there before and not a significant investment to actually redo the entire stadium, which this was. PavCo announced the final approved budget of $563 million for B.C. Place revitalization in October 2009. They did it for $514 million...

Chandra Herbert

S. Chandra Herbert: This is about freedom of information. This is about giving journalists access to information they need to do their jobs. I know the minister wants to focus on sports stadiums, but we're talking about work that the media needs done so that they can support our democracy. Under the Liberals, PavCo has had a history of mismanagement. Five times over budget, the Telus naming debacle, PavCo's float plane fiasco, PavCo's botched casino deal, the convention centre going massively over budget… The list goes on and on. The Premier claimed that open government was one of her top priorities. Will she stand today and demonstrate that she actually puts action behind her words and tell PavCo to stop trying to ban the media from doing their job?

 Notice how Coleman referred to me, not by name, but as "the individual that the member refers to?" The Premier? She didn't stand.

Here's an uncomfortable fact for Coleman: The original budget for B.C. Place renovations was not $100 million, but actually $75 million, including a new, inflatable, fabric roof. That inconvenient truth is contained in a Jan. 8, 2008 letter from PavCo chair David Podmore to Wayne Henderson of Dominion Construction, the company that eventually was awarded the bid for phase 1 work. That letter is below.

Just 14 days later, on Jan. 22, 2008, Podmore told Vancouver city manager Judy Rogers in a letter that "the scope of the rehabilitation project is in the order of $100 million which includes replacement of the roof."

By April of that year, PavCo had changed gears and was considering the pre-Olympic installation of a Frankfurt-style retractable roof for $253 million. But the anticipated completion date of Jan. 31, 2010 was deemed too close to the Feb. 12, 2010 Winter Olympics opening ceremony. The project was delayed until after the Games at a Jan. 9, 2009-announced budget of $365 million.

That budget was increased (after the BC Liberals won re-election) to $458 million on Oct. 23, 2009. The government finally admitted it would be $563 million and now claims the final price was $514 million. Oh, they're so proud that it's $49 million under the final budget. But don't dare mention those pesky scope changes and cost increases! The leaky, grease-stained roof? Nothing to see there, move along. Those are such uncomfortable facts for a party so desperate to remain in power.

For the sake of all, let's hope Auditor-General John Doyle expands his fact-finding mission into a full-blown value-for-money investigation of the B.C. Place project. The taxpayers deserve to know the truth about the evolution of such a risky project that shows no signs of breaking-even.

Roof rip 6 years ago caused costly domino reaction

B.C. Place's roof ripped and collapsed Jan. 5, 2007

UPDATE (Jan. 14): NDP Critic Spencer Chandra Herbert complained to Auditor General John Doyle on Jan. 11, seeking an investigation of the cost of B.C. Place Stadium renovations. Read my story in The Tyee here and see the letter to the Auditor General at the end of this blog post.

UPDATE (Jan. 18): Auditor General John Doyle responded to Chandra Herbert on Jan. 16 and will conduct a fact-finding exercise. A very important first step. See his letter at the end of this post. Here's my latest story in Business in Vancouver. 

Was the skyrocketing cost of B.C. Place Stadium renovations the product of simple scope change or its evil twin, scope creep?

Government has refused to release a business plan or cost/benefit analysis for the renovation of B.C. Place Stadium, begging the question: does one exist? 

When it comes to B.C. Place, there are always more questions than answers. 

Ultimately, there is one question about B.C. Place that needs to be answered, after the half-billion-dollar project. It is this: did taxpayers get value for their money? 

The only hope may be for the Office of the Auditor General to step-in and investigate the blizzard of spending that happened at the 1983-opened stadium after its roof ripped and collapsed on Jan. 5, 2007 in a disaster that was deemed preventable. (It happened, whether by coincidence or convenience, after a drastically censored, 15-page, June 20, 2006 report to the Tourism Ministry by B.C. Pavilion Corporation that proposed major improvements at the stadium because it had "worn out assets which are critical to basic tenant operations.")

John Doyle’s predecessors investigated the NDP’s controversial Fast Ferries project (which was supposed to cost $210 million but rose to $462 million) and the Liberals' Vancouver Convention Centre expansion (which was supposed to cost $495 million but rose to $883.2 million). So why not put B.C. Place under similar official scrutiny? Why not before voters go to the polls to elect a new provincial government on May 14, 2013? 

In a Sept. 28, 2012 interview with Bill Good on CKNW AM 980, outgoing B.C. Pavilion Corporation chairman Podmore maintained “there’s only one budget, that’s the $563 million.”

"What government did is they authorized an expenditure of $12 million to allow us to completely design and engineer the building. To go out and obtain firm prices from contractors and subtrades. 

“And then we bundled all that together and went back to government and said OK, we completed the engineering, this is going to cost $563 million, we can get a fixed price contract to cover that work, do you want to proceed?”

Podmore also maintained the final price tag was $514 million. His math and chronology are a tad too simple for both you and me. 

What is now known is that he told Vancouver city manager Judy Rogers in a Jan. 22, 2008 letter that the cost was “in the order of $100 million, which includes replacement of the roof.” Podmore did not use modifiers, qualifiers or asterisks in his confidential letter. He didn’t mention whether the roofing cost for the stadium "rehabilitation" included an updated inflatable top or a new retractable system. 

By late April 2008, PavCo internal documents estimated the cost of a renovation with a "spoke-wheel" Frankfurt-style retractable roof would be $253 million. Application of such a roof before the Vancouver 2010 Winter Olympics was nixed, because the best estimate for completion was less than two weeks before the Feb. 12, 2010 opening ceremony.

Podmore and Premier Gordon Campbell announced the project in a May 16, 2008 news conference at B.C. Place, but both steered clear of telling taxpayers how much it would cost for that Frankfurt-style retractable roof. 

On Jan. 9, 2009, PavCo issued a news release announcing a $365 million funding envelope for top-to-bottom renovations. 

The budget was updated to $458 million on Oct. 23, 2009. Government eventually admitted the all-in price would be $563 million. On Aug. 15, 2012, the ruling BC Liberals claimed it was $514 million -- or $49 million under budget. (Still, that’s $414 million more than what Podmore said in his 2008 letter to Rogers.)

Along the way, Podmore said the sale or lease of PavCo lands around the stadium and a naming rights sponsorship would help lessen the burden on taxpayers. The sale option was tossed and the name remains the same. 

Paragon Gaming’s proposed casino/hotel complex west of the stadium was put on hold indefinitely when Vancouver city council denied an expansion bid in April 2011. Edgewater Casino is staying put at the Plaza of Nations until at least 2015, but Paragon is talking to PavCo about using city council authority to move the existing licence to a scaled-down complex. 

Telus had a $35 million to $40 million, 20-year deal to rename the stadium Telus Park, but government cancelled the agreement in February 2012. Evidence suggests the sponsorship was scuttled because of ongoing complaints and legal threats by competitors Bell, Rogers and Shaw over the June 2011 direct award of a $1 billion, 10-year government-wide telecommunications contract to Telus. 

Instead of giving Telus a second tier, official or exclusive supplier designation in exchange for goods and services already provided, government did a straight supply-without-recognition deal with Telus in August for an undisclosed sum. Yes, the government doesn’t want to tell us how much it paid Telus for goods and services that were supposed to be provided under the sponsorship. 

And, finally, the trial of the year is scheduled to begin in B.C. Supreme Court on Oct. 21, 2013 and it's all about the roof. Cable installer Freyssinet Canada sued steel contractor Canam Group for nearly $6.5 million. Canam fought back with a $26.15 million countersuit. PavCo and general contractor PCL are listed as defendants. The legal battle has been complicated by the grease that leaked from the Geobrugg-supplied cables which stained the fabric roof. The next procedural hearing is Jan. 10 and will involve applications to add more defendants and third-parties. (Meanwhile, B.C. Place workers represented by B.C. Government and Service Employees' Union local 1703 voted 96% in favour of striking. Contracting out and scheduling are the big issues.)

Recent legal filings by a lawyer for Canam suggest the cost of damage to the roof from leaking grease may be worth $15 million and it may not be covered by insurance. PavCo knew the leaks existed more than six months before roof fabric installation.

Apologists for PavCo and those desperately hoping to keep the B.C. Liberals in power and the NDP out of power after May's election will try to play-down any concerns about B.C. Place costs by claiming stadium-related economic activity rose from $58 million to more than $100 million after the renovation. But they have no real evidence to show you or me. This is par for the course around North America, according to The Stadium Gambit and Local Economic Development by sports economists Dennis Coates and Brad Humphreys. They say that stadium and arena developments never do for a local economy what the boosters say. 

“A stadium is a public investment in real capital, as such, the rules for sensible public investment apply to stadium finance as much as they apply to public provision of highways, schools and airports... 

“Unlike most studies commissioned by stadium advocates, the consensus in the academic literature has been that the sports environment has no measurable effect on the level of real income in metropolitan areas.”

The money that’s spent on B.C. Place is spent. It’s like toothpaste that cannot be stuffed back into the tube. But now is the time to analyze what went right and what went wrong. The public has a right to know how its money was spent and whether it was spent properly. Look what happened to Quebec’s construction industry because of opaque government tendering and spending. Revelations of Mafia involvement and resignations of mayors have been among the results so far of the Charbonneau Commission inquiry into that province's construction corruption.

Lessons can be learned which can be applied to future government mega-projects in B.C. New ideas can and should be floated to make the stadium a daily revenue generator, so that it can deliver dividends to government instead of rely on annual subsidies. It is a building with great potential. 

NDP complains to Auditor General to investigate B.C. Place renovation costs by BobMackin

Auditor General agrees to examine B.C. Place renovation costs by

Why it's called PavCo, not AnswerCo

David Podmore vacated his chair on the B.C. Pavilion Corporation board of directors at the end of September, just before the first anniversary of B.C. Place Stadium's reopening from a taxpayer-funded renovation. 

It was also the end of interim president Dana Hayden's second full month as the replacement for Warren Buckley, who resigned at the end of July. 

Neither of them responded to my repeated email and phone requests for an interview. 

Stadium marketing and communications manager Duncan Blomfield (right) ran interference for his bosses. Instead of arranging an interview, he invited me on Sept. 25 to send questions. I did just that, the very next day. (See the whole list below.)

That was a month ago. I still don't have the answers.

Despite frequent reminders, Mr. Blomfield claims that the official response is going through an "approval process." 

Mr. Blomfield and others at PavCo were easier to deal with before the Sept. 5 cabinet shuffle that saw the affable Pat Bell hand the responsibility for PavCo to Rich Coleman. 

Deputy Premier Coleman's portfolio already includes energy, mines, natural gas, liquor, gambling and housing. Now he also oversees the stadium and the Vancouver Convention Centre. I honestly don't know how he rates on the affability scale, because Mr. Coleman has never agreed to a one-on-one interview with me. 

So I'm going public. 

On 2012-09-25, at 3:39 PM, Duncan Blomfield wrote:
Hi Bob,
Regarding the ‘one-year anniversary’ interview request – please send me your specific questions and I will endeavor to provide specific answers.
Duncan 

Bob Mackin
Subject: Re: media request: Terracover Date: September 26, 2012 4:16:28 PM PDT 

Unfortunately, I have not received any assistance in arranging interviews.
As you asked for my questions, I have many. My hard deadline is 5 p.m. Thursday. I look forward to your answers.  

A) What is the detailed breakdown of the $514M spent on the renovation?  

B) What is the cost of the ongoing work to repair leaks and stains on the roof? When will it be complete?  

C) How many people are in management positions at B.C. Place, vs. union positions? 

D) What is the total amount of bonuses paid to management in 2011-2012 vs. 2010-2011? 

E) Has an agreement been reached with Telus for official or exclusive supplier status? 

F) What is the total owed by PavCo to Telus for its 2011 installation in anticipation of the naming rights? 

G) What was the cost of the Terracover V system?  (Bob's note: that is the plastic field cover system used to protect the field during concerts and trade shows.)

H) What was the cost to remedy the problems experienced with Terracover in February and March?   

I) What is the ideal conversion time frame for laying the Terracover after a football or soccer game? What is the ideal conversion time for removing the Terracover after a trade show or concert?  

J) Why did B.C. Place use more power and pay higher hydro rates in fall 2011/winter 2012 versus fall 2008/winter 2009, the last regular fall/winter before the temporary VANOC takeover and before the old roof was removed?  

K) What was the methodology for the $58M in annual economic benefits pre-renovation and $100M in economic benefits post-renovation?  

L) How many times was the roof opened in 2011?  

M) Why is the roof not left open as a default position and closed only in case of inclement weather? As it is, the roof is only opened for events. Are there problems with the drainage?  

N) Are event promoters charged a fee for the roof to be opened and, if so, what is the cost? 

O) Are the Whitecaps and/or Lions paying any rent whatsoever, beyond a nominal fee? Is it true that PavCo receives food and beverage revenue in exchange for the teams not paying the full price of rent for regular season games? What precisely are the Whitecaps and Lions paying for rent?  

While we wait for the answers, mark Oct. 21, 2013 on your calendar. That's the scheduled beginning of an 85-day civil trial in B.C. Supreme Court between B.C. Place steel and cable contractors Canam and Freyssinet. It will provide the most complete glimpse into troubles encountered with the the most complex stadium renovation in history. 

Exclusive: Tell us, why Brown petered out of PavCo?

The mystery continues over why Peter Brown suddenly resigned from the B.C. Pavilion Corporation board of directors on Feb. 13.


All signs point to the Howe Street wheeler-dealer being frustrated over B.C. Liberal cabinet members overturning the PavCo recommendation for Telus to be the 20-year, $35 million to $40 million naming rights sponsor of B.C. Place Stadium. But the government wants to sweep it under the rug.


Brown's departure didn't become public knowledge until March 9, a week after Premier Christy Clark was a no-show at a Telus news conference where NDP leader Adrian Dix mugged for photos with the Vancouver-based, Liberal-friendly telecommunications giant's boss Darren Entwistle. 


The Liberals promised that some of the costs of the $563 million, taxpayer-funded renovation would be  paid by sponsorship. When they went into damage control mode, Clark, Finance minister Kevin Falcon and PavCo minister Pat Bell laughably said the deal was not in the best interest of taxpayers and claimed the B.C. Place name was "iconic." Such feeble excuses.


I received, via Freedom of Information, a copy of correspondence between Brown and Falcon, including Brown's Feb. 13 letter of immediate resignation from PavCo.


A key paragraph was censored, under section 13 of the FOI act, which broadly covers "advice or recommendations" for a public body. 


The missing section comes after a line that says: "In almost every case, the government dealt with us and third parties professionally, respectfully and in good faith." It appears Brown was setting up a paragraph in which he was going to give the government a piece of his mind. 


Evidently, the Liberal government is embarrassed to show you and me why one of the party's biggest donors and one of the province's best-known businessmen skedaddled from the Crown corporation.


The official explanation from Brown and Podmore after the news broke in March was that Brown wanted to lessen his busy schedule and that PavCo was transitioning from a construction phase to a marketing phase. Podmore has been in no apparent rush to fill Brown's empty spot at the board table. Nor is he in any rush to tell taxpayers the final price tag for the most-expensive stadium renovation in Canadian history.

Brown's letter was an immediate notice of resignation and, based on the tone of the third paragraph, it indicates that Brown had more on his mind than a desire to lessen his schedule or assist PavCo in evolving from construction to marketing functions. Within the documents below, you might also notice how Brown mentioned he was going to visit the High Commissioner in London? That would be a certain Gordon Campbell, the former Premier of B.C. who appointed Brown to the PavCo board. 


Neither Brown nor Podmore responded to my requests for comment. When will the government come clean, and just tell us the truth?


(The B.C. Lions' season opener at B.C. Place on June 29 against the Winnipeg Blue Bombers. The rematch of the 2011 Grey Cup is sponsored by Telus. Could that be the night the consolation prize, the exclusive telecommunications supply deal for Telus, is announced?)
PeterBrownFOI Mackin

PavCo loses another director

Will the last person left please turn out the floodlights?

Another director has left the board of B.C. Pavilion Corporation, the taxpayer-owned company that operates B.C. Place Stadium and the Vancouver Convention Centre.

Peter Brown's February departure wasn't confirmed until March. The Howe Street tycoon, Order of B.C. recipient and Liberal bagman (right) claimed he wants to slow down, but the real reason was his disgust over Premier Christy Clark turning down the $35 million to $40 million B.C. Place Stadium naming rights deal with Telus.

Now joining Brown on the outside-looking-in is Derek Brindle. Brindle (below) is a lawyer with the Vancouver firm Singleton Urquhart, has a Queen's Counsel designation, and his bio states he "acts as an arbitrator and in mediations involving construction and insurance disputes. Derek advises Crown institutions and industry on risk mitigation strategies in major procurement."

UPDATE: 8:33 p.m. April 12

PavCo chairman David Podmore has emailed me this statement:

"Derek left the board in February 2012.

"He joined the Board at my invitation in 2007 to be available to provide construction legal expertise as PavCo proceeded through completion of the VCC West expansion and the BC Place Refurbishment.

"With completion of both major construction efforts PavCo is moving to a focus on business development to ensure that the business potential of these assets (VCC West, VCC East, and BC Place) are maximized, consequentially the business focus will gradually shift away from construction and more emphasis will be placed in sales and marketing as well as operations.

"Derek's advice and expertise has been most helpful through the past years where the focus has been on completion of the new facilities and the BC Place upgrade.

"Derek has been exceptionally helpful through these stages, and has resigned to allow PavCo to move to the next stage where the focus must be on business development to maximize utilization of these exceptional assets which he helped deliver, and recruit the Directors that will have the appropriate expertise to provide the guidance and advice to maximize the utilization of the exceptional facilities created during Derek' s participation on the PavCo Board."

UPDATE: 10 a.m. April 13

Brindle responded to my phone message via email:

"I resigned in February after nearly 5 years on the Board.

"I initially joined at the Chair's invitation as someone with experience and interest in construction. My preferred area of practice was, and is, in construction law. It was not my intention to overstay the construction projects to be undertaken.

"After the completion of the final construction project near the end of 2011, it was timely to move off the Board to allow for an orderly transition and focus on marketing and operations.

"Any further questions can be directed to Pavco."

UPDATE: 12:41 p.m. April 13

Here is the response when I asked if Brindle might have a few minutes to answer questions about whether his departure from the board was affected by the government-nixed Telus naming rights deal and the lawsuit by two roof contractors:

"Thank you, however, I have nothing further to add to my earlier e-mail response to your questions."

Questions persist, I say. Why no public announcement of Brown and Brindle's departures? Can one call it an "orderly transition" when there is no immediate replacement for directors who leave before the May 27 end-of-term? Why do taxpayers have to wait until a reporter gets a tip?

PavCo, coincidentally, is one of the parties named in a $6.5 million lawsuit filed by steel cable installer Freyssinet. Steel contractor Canam Group filed a $26.15 million countersuit against Freyssinet. The messy dispute, which may ultimately tell the story of this difficult renovation, could be settled in a marathon court trial to begin in October 2013.

We still have no update on the cost of the B.C. Place renovations, which were budgeted at $563 million. The government is not likely to tell us the truth while it's contesting by-elections in Port Moody and Chilliwack, for fear of losing two seats in the Legislature.