Fee for service reviews to be addressed in October
By Al Beeber - Lethbridge Herald on July 13, 2024.
LETHBRIDGE HERALDabeeber@lethbridgeherald.com
With representatives of Economic Development Lethbridge and Tourism Lethbridge expressing concerns about the need for reviews of their fee-for-service organizations, the Economic and Standing Policy Committee of Lethbridge city council on Thursday voted to have administration work with them on developing a scoping document, timeline, budget, workload and resources from both needed for such reviews.
Administration is also being asked to return to the SPC’s meeting on Oct. 10 with a report considering the KPMG report recommendations for EDL which will be discussed at the July 23 meeting of council and provide the information requested in the first part of the motion.
The discussion of City reviews of EDL and Tourism Lethbridge came about from an Official Business Motion presented by councillor John Middleton-Hope on June 11. A referral motion from Deputy Mayor Jeff Carlson had the matter by an 8-1 vote going to the SPC Thursday.
Middleton-Hope’s motion called on administration to determine the following:
1. whether each external entity is achieving its defined objectives in an effective and efficient manner at a cost-benefit to the City of Lethbridge,
2. whether each fee-for-service agreement has clearly defined performance metrics that provide a clear, concise picture of alignment with City of Lethbridge priorities and with outcomes that correlate to the funds provided.
3. whether, in each case, the City of Lethbridge would be best served by continuing with the existing fee-for-service model or considering other models for the delivery of such services.
4. the efficacy of existing connection points between these two entities and internal City departments as well as any potential synergies or changes that merit consideration.
His motion stated that economic development and tourism are “integral municipal activities to attract investment and foster a vibrant city” and that presently these activities are conducted by external parties that are contracted under-fee-for service agreements.
During a lengthy discussion Thursday, the SPC heard statements from both EDL and Tourism Lethbridge representatives on why the reviews aren’t necessary and also the reasoning behind them from both City Manager Lloyd Brierley and Chief Financial Officer/treasurer Darrell Mathews.
Brierley told the SPC he’s been involved in government for more than 26 years “and I don’t consider this something to be concerned about. It’s usually ‘how do we work better together, ensure we’re aligned, corporate goals and objectives, and to the best outcomes for the community.'”
In response to a question from councillor Ryan Parker if he supports the review proposal and if it’s the norm within organizations, Brierley said regular reviews are the norm “and typically a very good business practice.”
Some discussion focused on a KPMG report recommendations regarding EDL and whether the City fulfilled recommendations.
EDL Chief Executive Officer Trevor Lewington told the SPC in response to a question from councillor Belinda Crowson the KPMG report resulted in 13 recommendations, five of those directed at EDL which are complete. Eight action items are outstanding which require some sort of feedback from the City and “specifically from council,” Lewington said.
Mathews noted fee for service providers for the City “provide municipal components or services for the community and that’s why they get funding through our operating budget.
“We always need to take a look at those,” said Mathews, for the dollar values and the community benefit.
The difference in this review, said Mathews, said it would go further into giving a full-cost benefit.
“It’s actually going to take a look at a lot of those other factors, the benefits,” added Mathews, it doesn’t mean funding is taken away – there could be recommendations that more funding is needed.
“It does actually set up the performance metrics, it reviews the mandate that council has to ensure it’s correct, to make sure that there is a mandate and objectives provided,” with the review also looking at other methods with the same objectives that could be done, he said, pointing out the contents of the OBM.
Lewington told the SPC the review, if it goes ahead, would be the sixth in nine years for his organization. He said as stewards of public funds, EDL believes in tangible results.
He said EDL was “surprised and concerned about this motion given that it had been ‘under discussion for some time’ without anyone’s involvement.”
He said the EDL operates under an MoU established by council in 2002.
“The partnership model underscores the shared critical importance of economic development for our community,” he said, noting the MoU spells out roles and responsibilities for each party “and under my leadership for the last nine years, EDL has been in full compliance with all of our obligations,” Lewington said.
“We understand and appreciate council’s commitment to ensuring accountability and transparency in all initiatives and programs. These same values are at the core of EDL’s mission and as stewards of public funds, we prioritize delivering tangible results and maximizing value for all taxpayers and funders,” he said.
Tourism Lethbridge’s board chair Michelle Day Miles said that organization was disheartened by the proposed review, noting it’s been transparent in its operations. She noted it was already undergoing an external third-party review, the results of which will be shared with council.
Day Miles said Tourism Lethbridge is trying to understand why a review is being requested and that the organization.
Bridget Mearns, a former city councillor and chair of Tourism Lethbridge’s advocacy committee, gave the SPC a history of Tourism Lethbridge and how tourism was fragmented in Lethbridge until that organization was created with different groups here representing their own sectors. She said funding was directed to a single entity to maximize every dollar spent.
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With the reticence displayed by the EDL, it certainly makes one wonder what they have to hide. With hundred thousand dollar wages for executive directors, overstaffing of organizations, and ED’s sitting one each others boards no wonder they don’t want a review. The city hands over how many millions per year to the organizations, and even then when they have a shortfall they go begging for more and the city always obliges. Yeah, do the review, have it done by a third party, and release it to the public. Let the citizens know where the money is going.