(September 13, 2002, letter from J.White P.Eng, Proponent of Snowfluent Bid, to XCG Consultants Ltd.)


September 13, 2002

Ms. Lynne Maclennan, M.Sc.
Project Manager
XCG Consultants Ltd.                                                                                                File:  C-707
2620 Bristol Circle, Suite 300
Oakville, Ontario
L6H 6Z7

Dear Lynne:

Re:  Munster/OMB et. al.

I want to put the following on the record in response to the attached request and as a follow up to the meeting held here a few weeks ago.

1.       I was more than concerned that the meeting with respect to Munster was held before you had received and/or reviewed the Design-Build tender call documents by CRA in 1998.  This situation is only exacerbated by the fact that you had not reviewed our submission to that tender call either.

2.       The cost to us to respond to that call was $67,000 in direct costs and $13,000 in overhead costs applicable.  We want that money returned to us in consideration of what has transpired (i.e.) CRA’s preferred “bidder” that did not meet bid requirements.  We intend to recoup that money one way or another, legally of course.

3.       Now you want us to supply information vis a vis:

-          A rebid?

-          C of A for Westport?

-          Annual reports for Westport?

-          Site visits?
 

4.       Much too often we have provided detailed information for Environmental Study Reports and reviews such as you have been commissioned to carry out, only for our efforts to be converted to fodder for such reports so that engineering firm after engineering firm can justify their fees to their unsuspecting clients, as to having diligently carried out their commission when the opposite is indeed true.

Again, I draw your attention to the treatise, “Ethics in the Provision of Environmental Services” prepared by the Doctors Lee of California, which says it all.

Conflicts

First and foremost, I want to object to your consideration of the CMS proposal.  They have a lawsuit against the City of Ottawa regarding Munster.  I provided you an email confirming this, from CMS.  This constitutes a gross conflict of interest both set by legal precedent and is offensive to us as a legitimate bidder.  As a taxpayer and resident of Ottawa, I object as well.

Irrespective of Katary’s status at OMB, he has no authority to circumvent the law.  Neither does your firm, nor do your partners.  You must obey the law first and foremost.

The law is the final arbiter in all these matters.  Not even the MOE is the final arbiter of the EAA*.  While I do not wish to be uncooperative, I am concerned that my passive participation is this could be considered as my acquiescence to what is transpiring.  I cannot entertain that in any way.

As well, R.V. Anderson’s work at King City is being reviewed by CRA.  This, too, is a conflict that cannot be overlooked.  I must say that I am appalled that they did not withdraw from this exercise considering that fact, alone.

I have concluded, in review of the above, that your effort is a placebo designed to placate OMB et. al. and will result in the pipeline at an excessive cost and environmental risk to Ottawa taxpayers, irrespective of what your findings and recommendations will be.

Requirements (Precedent to any further cooperation)

For us to be any further cooperative, we require a disclaimer from you and your group that states (1) you have received no orders from any party, CRA, City of Ottawa, MOE, et. al. regarding a preferred alternative and (2) you are not involved in any way in these deliberations in an exercise to eliminate all and any of the legitimately qualified bidders by further manipulating the now discredited matrix evaluations.

We already know that CRA is completely intransigent in this affair.

Katary had tried to get CMS and CRA to come to a consensus to no avail.

Your apparent lack of briefing and failure of your client to provide you with basic documentation further heightens our distrust of this whole affair and our disdain for the participants.

The “rigging of the bids” through the evaluation matrix is tantamount to a breach of the Environmental Assessment Act, the Municipal Act, the Planning Act and the Criminal Code of Canada.  Either that or our City Engineering Department was anxious to accept the sloppiest piece of engineering work I have ever witnessed in my life.

                                                           

* Environmental Assessment Act

 

When the testimony of CRA personnel during the OMB hearings constituted direct prevarication, then we rightly and readily concluded that the process was rigged and we bidders were bilked of tens of thousands of dollars, as well as those OMB proponents like Gordon Sample, and the taxpayers of Ottawa.

Trust and ethics are no longer part of this procedure and I will thank you and your colleagues, under the circumstances, not to bring such up.  It is simply too late.

Even a cursory review of the Matrix Evaluations indicates the extent of the manipulations and subjectivity of the process to date.  We require that such an evaluation process, if you use the same, will provide identical scores for assessment items, to proponents who meet acceptable conditions as required, irrespective of any differences after the acceptability threshold is gained.  This will reduce subjectivity and potential manipulations.

Politicians here in Ottawa were made doubly aware of this manipulation circumstance, also to no avail.

So the lack of trust is complete.  The question is, “What are you going to do about it?”  What are you bringing to the table that will cleanse the issue?

Considering the City hired R.V. Anderson, in spite of our objections in my letter to the Mayor dated October 24th, 2001, we could and probably should consider this a message to “get lost”; that the fix is still in.

While all this seems inconceivable, we have mental geniuses on City Council who reject OMB’s confirmation of the manipulations and state, for the record, that “it was a fair and transparent process”.  Transparent – yes.  We could easily see what they were doing.  Fair – no!

Our acquiescence to your requests could readily allow all this dirt to be swept under the carpet.  This must not occur under any circumstances.

We had reviewed the whole project and readjusted our price, as we stated to you, to $2,573,600*** plus any applicable taxes.  The land is there already and so this price reflected the cost of a new plant with superior, proven technology.  When you consider a pipeline cost at approaching some $20,000,000 in comparison, plus the $10,000,000 already spent, this is a damn scandal.

Candidly, I am surprised you have allowed yourselves to become involved, but involved you are.

You can visit Westport at any time and I suggest you visit New Hamburg, Port Stanley, Lucknow and a few other sites to look at intermittent filtration, as our filtration work is all stateside, but are designed identically.  The only difference is we mount the filters above the normal ground level to save a pumping station for draining of the filters.

You can call our web site references at your convenience (www.watertek.org).

However, my advice is to minimize the cost to the Ottawa taxpayer and minimize the run-around expense as being unnecessary.

Currently we are working for Mr. Jim Collins, an American and an old client, on such matters.  He can be reached at 435-656-3902 in Utah.  He will attest to our credibility or otherwise in all such matters.

Much more than that, until we get an indication and written conclusions from you on the negative side of this review, that the qualified bidders (3) were bilked of design-build bid preparation costs AND that you are prepared to recommend to the City to repay those costs forthwith to all bidders.

You should recommend, as well, that Doran Construction should refund all fees and expenses to the City and thus, City taxpayers - $1,192,000.

Joe Mangione and Jim Taggart, as professional engineers, were part of this rigging and manipulation and were knowingly in contravention of the above-noted laws.  They also knew they did not meet the tender call requirements.  They must refund all monies, and you must recommend the same.

Further, you must obtain, in writing from the City at the highest level, a clear indication that they will, at any level, not interfere in this process of reevaluation, as they have in the past.  We require your written confirmation of this commitment.

We also require confirmation that you will not alter the price above provided and that this cost appears in any report, with no add-ons, etc. to OMB and your client  This is a design-build price.  Both TSH and CRA manipulated the costs and their reports bore no relation to facts regarding price.  This was, in fact, the major matrix manipulation.

Finally, as professional engineers, you must indicate to us, in writing, that you are prepared to recommend whatever legal and disciplinary action necessary against any and all engineers, should you find wrong-doing or breaches of the Code of Ethics of the Engineers’ Act.

While you may feel this position and these requirements are unworkable and intransigent in themselves, put yourself in our shoes.  I am out $80,000 plus all the time spent during the OMB hearings.  Your presence does not automatically sanctify and cleanse past aggravations.  The choice is yours.  I will respond accordingly.

I am tired of being painted as the bad guy or sore loser by mental giants like Councillor Janet Stavinga, and being ignored by the Mayor and his staff. 

If you people have the integrity and the professional facility claimed during your meeting here, then you will readily understand our angst and incredulousness as to the current state of affairs, as well as our position herein stated. 

We will not, nor have we been, for the record, a part of any manipulation and rigging in this affair past, present or future.

We win and lose projects over and over again as the natural consequence of being in business according to the free enterprise paradigms.  Madame Stavinga has proven she has no comprehension of these matters.  We don’t complain when the process is fair.

We will not work with anyone who believes in or has been involved with manipulation and intransigent, unethical behaviour, or who has a conflict of interest, declared or otherwise. 

The Municipal Act says it best “…must not only be fair, but must be seen to be fair”. 

Your all-important response, please. 

Sincerely,

NORTHERN WATERTEK CORPORATION 

Jeffrey A. White, P. Eng.

President

JAW/lp

c.c.       R. Chiarelli, Mayor
            R. Pyper, CRC
            E. Lauzon, CRC
            R. Bendall
            G. Sample
            R. Pellerin, P. Eng., Sco-Terra
            B. Matthews, P. Eng., PEO
            S. Katary, OMB

 

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