The $50,000 Oversight
How not including a letter of agreement cost the City $50,000
By Robert Thomas
On October 23, 2023 with little fanfare and after the media was long gone Executive Committee came out of the in/camera portion of their meeting and approved two motions.
One motion would routinely approve new members to the Cultural Diversity Committee.
While a second would end a multi-year saga to collect all or a portion of the $50,000 advanced to Curl Moose Jaw by the City to secure the 2020 Scotties.
Excerpt of the minutes from the October 23, 2023 Executive Committee meeting - SOurce city of moose jaw
Monies which were, according to a Council motion of the day, readily collectible if the 2020 Scotties turned a profit.
Despite this Curl Moose Jaw would successfully claim the money was a grant and they were unaware of the conditions attached to the $50,000.
But how?
In City of Moose Jaw documents obtained through a Freedom of Information (FOI) request by MJ Independent the answer to the question is simple - the City forgot to adequately inform Curl Moose Jaw the repayment terms.
And the decision was made to write the monies off.
PRELUDE
On June 25, 2018 Council considered a report adapted the same dated (June 25, 2018) regarding utilizing $100,000 in City funds to secure the 2020 Canadian Women’s Curling Championship (Scotties Tournament of Champions).
“That report was on the agenda but circulated today,” former Councillor Brian Swanson would comment at the 2018 meeting.
Former city manager Jim Puffalt would respond to land the event it was “a bit of a moving target” and there was “a time crunch” on the issue.
Puffalt said there had been a meeting “to talk about the way we can share the revenue, the potential revenues from this event, The 2015 event that was held in Moose Jaw was very successful and very profitable.”
The City’s risk would be lessened by both Mosaic Place and Curl Moose Jaw repaying the City $50,000, Puffalt told Council in the June 25, 2018 meeting.
The committee needed a $300,000 commitment to make a bid for the 2020 Scotties, he said.
Puffalt discussed the risk but it had been lessened through a revenue sharing agreement being discussed with Mosaic Place and the 2020 Scottie’s Committee/Curl Moose Jaw.
“What we’re accomplishing there’s opportunity for both groups to make substantial profits and there’s no requirement by taxpayers to put money into the project.”
“The City is creating the atmosphere for the project to be successful.”
“The discussions has been held with both parties. They’re both willing to enter an agreement to discuss repayment to the City,” Puffalt stated.
It would be the second time the Scotties was held in Mosaic Place. The first time the event was held in the facility was in 2015.
Proposed by former Mayor Fraser Tolmie the motion to provide $100,000 - $50,000 to Mosaic Place and $50,000 to Curl Moose Jaw - was delayed by an amendment by former Councillor Swanson.
The final amended motion
Following Council’s vote in favour (with former Councillor Swanson opposed) a letter was sent to the 2020 Scotties Bid Committee on June 27, 2018.
The letter advised them of the terms of the City’s financial support of the bid and the repayment terms from any profits according to Council’s resolution two days earlier.
The letter sent to the 2020 Scotties Committee advising them of Council’s resolution and repayment terms of that resolution - Source Freedom Of Information request
DID THE CITY TELL THEM?
Following the event the City asked for the event financials but a common underlying theme began to develop.
Did the City adequately, or even, inform Curl Moose Jaw they had to repay $50,000 from any profits from the 2020 Scotties?
On March 8, 2020 internally it was asked what had been sent to the 2020 Scotties Committee or Curl Moose Jaw.
“My emails showed that you had sent the invoices with council motion indicating what had been approved on Sept 25th so I just wanted to make sure that since the actual event no additional information pertaining to these funds went through the City Managers office,” Stephanie Meyer wrote Heather St Dennis at city manager’s Jim Puffalt’s office.
Letter asking what the city manager’s office had sent out
The theme continued with former city manager Jim Puffalt floating the idea that repaying the funds to the City had been made clear by Council’s resolution.
Former city manager Jim Puffalt asks for thoughts on his conclusion Council’s resolution was clear about the need for repayment
The point was reinforced by finance director Brian Acker who said at least one in-camera Executive Committee meeting had made that clear.
Finance director says he concurs with former city manager Puffalt’s conclusion
The exchange came weeks after the former city manager Puffalt had asked if a letter had been sent along with the cheque.
Former city manager Jim Puffalt asks if a letter was sent along with the cheque
The response was there no letter just Council’s resolution was sent with the cheque.
No formal agreement is referenced in relation to the funds. This is despite former city manager Jim Puffalt’s speech to Council on June 25, 2018 making reference to one being negotiated.
ALL NEWS
With it being just over two years since the Scottie’s being completed the City made their second attempt to receive the financials from the event.
Although the responses from Curl Moose Jaw or their representative(s) are limited the theme of informing them of Council’s resolution is still on-going as evidenced in an April 26, 2022 letter.
The letter references the letter initially sent to the 2022 Scottie’s Committee on June 28, 2018 where a “payment would be repayable after completion of the event” if there was a profit.
April 26, 2022 letter from former city manager Jim Puffalt
TIME TO FORGIVE - TIME TO COLLECT
At their May 8, 2023 Executive Committee the decision was made to write off the $50,000 owed by the now defunct Downtown Facility and Fieldhouse Inc (DFFH).
Executive Committee also decided to pursue the $50,000 accounts receivable by the 2020 Scottie’s Bid Committee/Curl Moose Jaw.
WAS NOT AWARE
Although the FOI does exempt interactions which would be part of their legal correspondence and thus attorney and client communications there is one statement which does appear.
In the statement it is made clear at least the president of Curl Moose Jaw was unaware of Council’s motion regarding the funding.
“I did not know that motion was presented, debated or carried. My phone rang off the hook last night with people telling me varying stories about Curl Moose Jaw Inc bein delinquent in payment. I found the story this morning and reached out immediately to you,” Curl Moose Jaw president Kevin deDelley wrote finance director Brian Acker.
June 1, 2023 Email from Curl Moose Jaw president Kevin deDelley to finance director Brian Acker
Acker had previously written on June 1st “the most important thing from the City’s perspective is to be able to have an accounting of what happened to the monies, what it was used for and where any profits from the event ended up.”
The emails would set off at least one meeting between Acker and deDelley where there are no notes but it did lead to an in-camera confidential item in the October 23, 2023 Executive Committee.
Approval would be granted to write the $50,000 off with no public explanation as to why.
The event that the former city manager said would not cost taxpayers a dollar cost $100,000 with the $50,000 write-offs to the DFFH and $50,000 to Curl Moose Jaw.
Unofficially sources have told MJ Independent it was because there was no proper agreement nor letter sent out with the cheques.
EPILOGUE
At the present time there is a reportedly a $600,000 bid - twice the $300,000 bid for the 2020 Scotties - for the Men’s World Curling Championships by a Moose Jaw group which have asked for the City’s help in securing the competition.
An email request for comment from Curl Canada was not responded to.
The announcement is expected in January.