Metro Vancouver’s board of directors is taking its first step toward what it is calling an “independent performance audit” of the beleaguered North Shore sewage plant project that is now $3.2 billion over budget from its original price tag 15 years ago.
Metro Vancouver chair Mike Hurley said the performance audit is important to restore trust in the regional government after the extraordinary cost overrun for the project was announced to the public last March.
The board has now directed Hurley to find external counsel to develop the scope and terms of reference of the audit he says will look at the “whole process” from the beginning, when the project was expected to cost only $700 million.
“We need to turn around the confidence meter in the public,” said Hurley, referencing the widespread discontent over significant tax increases, especially for property owners of North Shore municipalities.
Some directors were less bullish on the performance audit, however.
District of North Vancouver Coun. Lisa Muri expressed criticism at media coverage of Metro Vancouver.
“It’s unfortunate this story is not balanced,” said Muri, adding that media has been overly focused on money and not looking at the project history.
City of North Vancouver Mayor Linda Buchanan said the audit needs to be “fully public” and not like the opaque task force the board had struck.
“Yes, it is about the money because this is a project that went from $700 million to nearly $4 billion,” said Buchanan, noting historic documentation on the project is scant.
Several directors noted the audit may be handcuffed by the fact, according vice-chair John McEwan, there is $1 billion of ongoing claims in litigation between Metro Vancouver and the former contractor Acciona.
Township of Langley Mayor Eric Woodward questioned if this audit would simply “yield the same general result the task force went through,” noting the task force met in-camera and members already “know why it’s $3.7 billion — the public doesn’t.”
“I think this is getting out of control and I think this is a potential colossal waste of money,” said Woodward.
It remains to be seen what the audit will cost, with members bandying around figures up to $1 million.
Burnaby Coun. Sav Dhaliwal cautioned of a “knee-jerk reaction” and said Metro Vancouver is doing good work delivering on essential services such as drinking water.
“The problem has been addressed,” said Dhaliwal, one of the longest tenured directors and past chair.
But City of Delta Coun. Dylan Kruger said the audit will be “good value for dollars.”
The appointment of independent counsel to steer the audit has come with some initial controversy.
Metro Vancouver’s past chair George Harvie first announced the problem-plagued project would be independently reviewed in June. But Harvie was removed as Delta's representative at Metro Vancouver, removing him as chair, coinciding with a spending controversy concerning high-priced travel expenses, first reported by Glacier Media.
On Friday, Hurley announced a pause on international travel for board and committee members and review of travel policy.
And, this week, Hurley initially suggested William Peter Joseph McCarthy as an independent advisor only to back away from McCarthy after five local councillors questioned McCarthy’s political affiliations and possible campaign contributions to both Hurley and the BC NDP.
Councillors Daniel Fontaine (New Westminster), Paul Minhas (New Westminster), Linda Annis (Surrey), Ahmed Yousef (Maple Ridge) and Kash Heed (Richmond) have all championed an independent audit of the project.
Woodward was eager to test his comedy with the board, calling the five councillors “the factless five.”
Woodward, who is paid $168,823 as mayor, was also dismissive of media coverage of Metro Vancouver expenses, quipping that the “largest charcuterie booze fest was the premier’s last year” at a conference — this in reference to a Global News report this week that Metro Vancouver hosted an open bar and paid for fancy food totalling $64,620.94 at the 2023 Federation of Canadian Municipalities annual conference.
The board’s next meeting is Sep. 27.
