Morgan:News:2010 |Government| #2486
WHISTLER CONSIDERS PRICE CONTROLS WITHIN ITS BOUNDARIES DURING THE 2010 GAMESWhistler says that, in general terms, it wants the BC government to provide it with controls over business within its municipal boundaries during the 2010 Winter Games so that "fair and equitable pricing" can be enforced while the Games are underway.
Whistler information officer Diana Waltman says Whistler mayor Ken Melamed is hoping that a meeting can be set up with BC government cabinet ministers "to look at ways in which the municipality can ensure a high standard of customer service during Games times."
She says the municipality is in the process of developing the operational plans for delivering the Games, with the first draft of operational expected to be complete this fall. "Part of the discussion of the various aspects of service delivery and how we might capitalize on the opportunities presented by the Games is an exploration of ways to encourage fair and equitable pricing and excellent customer service on all our services," she says, "so that visitors are left with a positive impression, generating an increase in repeat business."
Waltman says that the municipality is "exploring all its options, and looking at possible legislative authority is one of them. It is taking place in consultation with the business community through the Chamber of Commerce."
She says that actual operation details, such as when the authorities it wants might be granted or when they might be applied, and whether they would contain sunset clauses, have not yet been determined, other than "it would be during the Games period." She says the concept is Whistler council's and that the Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) was not involved in the request. She also notes the "municipality is in discussion with the business community" over the matter now.
Nor, she says, has it yet been decided that only legislative changes would be required, though she doesn't rule it out. "We hadn't got that far; we are just looking into the possibility of it and... the municipality and provincial staff will review it."
Originally published to Morgan:News:2010:Gold subscribers on August 21, 2007
Morgan:News:2010 |VANOC| #2485 (Feature)
2010 EXECUTIVE NOT ATTEMPTING TO MISLEAD OVER THE COST OF THE WHISTLER ATHLETE CENTRE PROJECT The acting CEO of the Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) says the organization "did not intend to mislead" reporters when one of VANOC's management team on July 18 said the cost of the Whistler Athlete Centre was C$16 million when there was an expectation internally the cost could well be more than double that.
Dave Cobb -- VANOC's executive vice-president of Revenue, Marketing and Communications and the person who is covering for CEO John Furlong while Furlong is on holidays -- made the comment during an extraordinary meeting requested by four members of the media who were among the reporters at that July 18 meeting. The reporters -- Jeff Lee of the
Vancouver Sun newspaper, Damien Inwood of the
Vancouver Province newspaper, Mike Killeen of CTV television and Peter Morgan of
Morgan:News:2010 -- were concerned about the veracity of the statement and the subsequent disclosure by a government watchdog agency that VANOC prepared a document -- a risk register report -- seven months earlier that estimated the project budget at C$36.5 million.
VANOC's executive vice-president of Capital Construction, Dan Doyle, at a news conference at VANOC headquarters on July 18 following a VANOC Board of Director's meeting, took the podium in response to a question from
Morgan:News:2010 about the status of the budget for the Whistler Athlete's Centre.
Speaking in front of VANOC CEO John Furlong, Communications vice-president Rene Smith-Valde and two members of VANOC's Board of Directors, Doyle said, "At this point, for the scope that we're talking about, the budget is C$16 million. The Resort Municipality of Whistler has made a contribution, so it can have a bigger and better athletes high-performance centre, within the athlete's centre." Morgan:News then asked, "So the cost is C$16 million, then?" Doyle replied: "Our cost is sixteen, to VANOC, yes."
That figure has been consistently reported by VANOC in its Business Plan, released on May 8 and it was consistent with a Venue Development budget summary, prepared in April, detailing the year-by-year projected expenditures on the Athlete Centre as: "C$41,000; 2007: C$7,079,000; 2008: C$6,660,000; 2009: C$2,220,000. Total: C$16,000,000."
However, the second and final review by Partnerships BC at the request of the BC government, in a report entitled, "Report on Capital Planning and Budget For 2010 Olympics Venues", and given in April to the BC Government's 2010 Olympics Secretariat, which oversees the tax-payer funded capital spending plans of VANOC. It reported, "VANOC has indicated that the IOC has requested an additional 800 beds beyond the current scope. VANOC is currently investigating solutions, such as temporary accommodations, to meet this need. VANOC is working to finalize a solution before Fall 2007. The scope increase will result in an additional budget increase. VANOC anticipates drawing an estimated C$25 million from the [C$55.3 million contingency]management reserve to fund the original scope and current estimated costs including the additional 800 beds."
In addition, the Secretariat has access to the risk register reports as they are produced, and they are regularly discussed with VANOC officials by the Secretariat's chief financial officer, Jeff Garrad, and the president and CEO of the Secretariat, Annette Antoniak.
Doyle, late last Thursday, when asked about the C$20 million difference in projected cost versus VANOC's stated budget, agreed that the cost was likely to be closer to the higher figure and that he expected the difference to come from VANOC's C$55 million contingency. But, he said, he didn't want to reveal that in July because he was, and still is, in negotiations with contractors for the project, which is due to start construction this month, and he didn't want the contractor to know the size of his budget while those talks were underway.
The Athlete's Centre, at the core of the Whistler Olympic Village, currently consists of a high performance training building, an adjacent 100-room lodge and a number of neighbouring townhouses. The land on which it's to be built is being leased at favourable rates from the Whistler 2020 Development Corporation, which is building the Village.
Cobb told the reporters in today's meeting that VANOC's senior management team isn't as concerned about the cost fluctuations of individual projects as it is about the ceiling of the overall capital budget, which is supplied by taxpayers.
"We have agreed [internally] and we've made very clear publicly that we report on the status of our capital budget and our venue program on a quarterly basis," Cobb said. "We believe that what is of most concern to the public, are three things when it comes to our venue program. The first is whether we are going to need more taxpayer money or not -- in other words, whether we are building the project within the C$580 million. Secondly, are the venues going to be on time within the commitments we've made for athletes training, being able to properly test the venues and train our people, and thirdly, are we going to deliver quality, first-class venues. If any of those things were ever in jeopardy, we would report them to you, because that would be a material change, and have a material impact on our program. We still believe very strongly that we are going to deliver on each of those. In fact, every month that goes by, we get more and more confident that we are going to over-deliver on all of those. We're going to be under-budget, we're going to have a better schedule, and the venues will be even better than people expect... The total cost of the project is, we think, ultimately how we're are going to be judged."
VANOC keeps its contingency, still officially set at approximately C$55 million, in a central account, and Board of Director approval is required to adjust it, whether up or down, as projects are developed. Since Doyle has several scenarios of how the Whistler Athlete Centre might be delivered, the line cost of the project stays the same until the Board approves a particular approach and authorizes additional funding from the contingency to implement it.
"We've always expected that we would spend the entire contingency," Cobb said. "If we spend that entire contingency, you could look at every one of those venues that had a portion of the contingency allocated to it, and say that we underestimated the costs. But the fact is, that we expect to spend the C$580 [million total], and as we go along on the project, we'll determine where that contingency needs to get allocated, we'll go to our Board, and we'll get approval -- or not -- for those allocations. When we get approvals on that from the Board, we report on that in the next quarterly report. Anything before that [quarterly report] is preliminary... until we report in that way, decisions haven't been made. And specifically for the Athlete's Centre, the Board has not yet approved an allocation of the contingency. It has not happened yet. And it's purely speculation that it is going to happen."
Cobb also notes:
That VANOC's reporting of the Whistler Athlete's Centre "investment", which is his phrase, will remain at C$16 million for the time being, but that "it's fair to say that the cost of the Athlete's Centre is going up, but it's going up through an allocation of our contingency." He also notes that he expects management will be going to the Board meeting in September, and asking for the allocation.
VANOC is taking the approach to ensure discipline within the ranks of VANOC's project managers. "We didn't want them to think they had access to that contingency until it was a convincing case."
If there was something that came up that had a greater need for contingency funds than the current potential call by the Athlete's Centre, "we would re-allocate it to where the need is greater. We still have enough flexibility within the program to move money around."
That VANOC auditors internally review risk register reports and other documents on a monthly basis;
That VANOC has treated reporting on the Athlete's Centre the same as it has on any other venue project;
That VANOC intends to have only C$20 million left in the capital contingency budget when the Games begin, to be used to settle, if necessary, contractor claims.
Doyle, whose experience with large government construction projects in the Highways ministry goes back years, says he's been audited more times on the VANOC project than any other project.
Doyle also noted during the meeting:
The Athlete Centre's budget, which so far incorporates housing for up to 360 athletes and support team members, does not include the potential costs for the additional 800 rooms that the International Olympic Committee has requested that VANOC provide in addition to the rooms it its supplying in the combination of the Athletes Centre and the Whistler Olympic Village. He said that if it is reported, it will be part of the Athlete Centre's budget which is covered by VANOC, not the Village's budget which has been negotiated with Whistler Municipality.
"There are pressures on this project. The challenge that we have is that the Board has asked me to get what we can for the budget. That's the reality."
One of the risks for the Whistler projects has been the possibility that this construction season would be plagued by a high forest-fire risk from a string of hot, dry weather. That would have forced VANOC's contractors to potentially shut down work until the risk abated, a common practice during that type of weather in BC. That would also have meant additional costs for VANOC as it pushed contractors to catch up the schedule delays. However, he says, the risk was mitigated, so far, by this year's relatively cool, wet summer and he expects that to free up some additional contingency funds.
Originally published to Morgan:News:2010:Gold subscribers on August 21, 2007
Morgan:News:2010 |Government| #2484
WHISTLER ASKS BC GOVERNMENT FOR "EXTRAORDINARY POWERS" TO REGULATE BUSINESS DURING THE 2010 WINTER GAMES
The Resort Municipality of Whistler has asked the BC government for what a government cabinet minister calls "extraordinary powers" to regulate business activities during the 2010 Winter Olympic and Paralympic Games.
The request was made during a secret meeting of the Municipality's city council in May, and a detailed request for what appears to be legislative amendments was written by Whistler mayor Ken Melamed on May 29 to Ida Chong, the BC minister of Community Services and minister responsible for Seniors and Women's Issues.
In response, Chong, told Melamed last month that while she "appreciates the considerable thought you have given to ensuring an optimal visitor experience when Whistler is showcased to the world during the Games", she notes that the "amendments you have requested would extend extraordinary powers to the Resort Municipality of Whistler."
Even so, she's asked her staff to analyze the request, and she also copied Whistler's request to some specific cabinet colleagues: Colin Hansen, the minister in charge of the BC government's responsibilities for the Games; Rick Thorpe, the minister of Small Business and Revenue; and Stan Hagen, the minister of Tourism, Sport and the Arts.
However, a spokesman for the Municipality says she won't release the details of what the Municipality is requesting. Information officer Diana Waltman says in a carefully worded e-mail today to Morgan:News:2010, "The letter from the mayor to the minister contains a resolution adopted by Council in a closed meeting under Section 92B (Consideration of Information Received and Held In Confidence Relating to Negotiations between the Municipality and the Provincial or Federal Government or Both, or between the Provincial or Federal Government or both and a Third Party), also Section 91I, (the Receipt of Advice that is Subject to Solicitor-Client Privilege), and therefore, under the Freedom of Information Act, cannot be disclosed."
Chong says that during the analysis, her staff will contact the Municipality "to request more information about the nature and progress of your consultations with... [VANOC] and with the Whistler business community." She adds that, "If legislative amendments to provide these additional powers are to proceed, I would expect there to be a review to determine whether the change is in alignment with government of British Columbia objectives around the management of the Games, and the economic development opportunities that are associated with hosting them."
Originally published to Morgan:News:2010:Gold subscribers on August 21, 2007