‘We are alarmed’: Mayor, City manager address Exhibition review

By Al Beeber - Lethbridge Herald on November 27, 2024.

Herald photo by Al Beeber Mayor Blaine Hyggen talks to reporters on Tuesday after release of the Deloitte third party review into the operations of the Lethbridge & District Exhibition.

LETHBRIDGE HERALDabeeber@lethbridgeherald.com

Mayor Blaine Hyggen and City manager Lloyd Brierley stood at a podium in the Culver City room of City Hall on Tuesday after the release of a third party independent review of the Lethbridge & District Exhibition and expressed their alarm.

“While our council and administration continue to review the report’s findings, I can say this: we are alarmed” and incredibly concerned about what appears to be significant mismanagement, the mayor said.

Throughout the planning and construction process, information wasn’t provided to fully informed decision making and sound oversight of the project, the mayor said.

And the report states some information that was provided to council was contradictory or inconsistent.

“This is extremely concerning given this was primarily a taxpayer funded project,” added the mayor.

He said it’s essential that experts at organizations who receive public funds “exercise high standards when managing those funds.”

He made clear that “the situation we’ve been placed in as a city is inexcusable and frustrating. I share this feeling with our community, not only as mayor but also as a long-standing resident of Lethbridge.

With the report in hand, “our council is ready to continue the critical work ahead. This will mean establishing safeguards through new policies and procedures that enhance existing due diligence practices. This will ensure accountability from all organizations receiving City funds, particularly in strategic planning and financial reporting. The findings have identified several leadership, financial and operational shortfalls that will need to be considered” including the significant under-estimation of the demolition costs of the old buildings, parking lot improvements that weren’t completed as well as the inability of the facility to accommodate livestock, added the mayor.

Deloitte’s proposed options for a future operating model will be reviewed in greater detail in coming months, said the mayor, noting with new leadership there have been significantly improved operational and financial efficiencies with the deficit being reduced by $2.4 million in less than a year.

City manager Lloyd Brierley highlighted some of the pressing issues to media, noting that it’s clear information provided to council during the early stages of project planning was incomplete.

In 2021 and 2020, LDE was asked to present to council multiple times to share information and answer questions.

He pointed out the lack of formal procurement practices that dated as far back as 2013.

He noted, however, that despite procurement processes not following common practices, Deloitte observed no inappropriate behaviour on the part of the selected construction contractor.

He addressed the absence of documentation on matters “as simple as a project charter. A charter is intended to act as a North Star of a project,” outlining basic elements such as scope, budget, deliverables and a timeline, he said.

“The absence of this document may have contributed to a lack of clarity” regarding the project, he said.

He also addressed the report’s noting of improper use of funds by LDE leadership including CEO and board. He noted the report pointed out that the LDE had little planning for future operations.

“The City will continue to work through this in coming months,” he said.

“Our residents expect the City to be responsible stewards of public dollars. We need to ensure this never happens again. While more work is needed, the findings from this report provide valuable insight into the changes that are required going forward,” he added in a City news release.