March 4, 2004: THE TORONTO SUN

To council newbie, wild spending doesn't compute

                                                    By SUE-ANN LEVY

Taxpayers should give rookie councillor Mike Del Grande a big thank-you today.

For had Del Grande not asked the tough questions, council would have rammed through an absurd and certainly less than well-thought-out plan to spend $83.4 million this city does not have on new, state-of-the-art computer technology over the next two years.

That plan - called the "Technology End of Lease Strategy" - proposed ditching the infamous MFP lease deal (and the apparently obsolete equipment) and aggressively purchasing desktop computers, software and servers to outfit 15,398 computer work stations that would better function with the city's existing two-year-old Windows XP software.

The $83.4-million "refresh strategy" includes $20 million needed to pay off MFP leases which won't reach their full term until this time next year. The cost to "refresh" another 4,762 units of equipment purchased in 2002 and 2003 - some $18.5 million - has not been factored into that amount, however.

After a scattergun debate - in public and in private over two days - council voted 24-9 yesterday on a compromise that approves the "refresh strategy" in principle. But no replacements or purchases will occur until a blue-ribbon panel composed of council's computer literates reviews them.

"Let's do this in a prudent way," said budget chief David Soknacki, who indicated it will be up to the panel to determine the number of computers purchased and the timing.

It was the least councillors could do to show they've learned something (anything!) from the botched MFP Financial Services computer leasing deal - starting with not ramming through more computer acquisitions before truly understanding what's at stake.

After all, the 14-month-old inquiry into how the MFP deal ballooned from $43 million to $102 million is still sifting through the evidence. A report from the inquiry, which has cost taxpayers more than $10 million to date and could easily reach $14 million, is still months away.

And let's not forget that the six-figure bureaucrats and our fiscally-challenged council are still trying to figure out how to make this year's $344-million deficit disappear.

Del Grande skilfully skewered the computer plan, poking holes in it even as six city staffers and a consultant kept confusing councillors with their technospeak and predictions of viruses that could attack if council didn't commit to their plan.

Asked, for example, why the city would even consider paying for the MFP leases and new equipment at the same time, corporate services commissioner Joan Anderton said, "We're not throwing away money, we're actually transitioning the environment."

Anderton also told council in response to questions about the financing of the purchase that the "refresh strategy" would "transition" the city from capital funding to operating dollars on a "go forward basis."

"The thing I have a great difficulty with is the environment where we're going to put more than $100 million worth of computers has not changed from the environment where we put in the MFP computers," said Del Grande. (And remember, this is a city $344 million in the hole this year and nearly $2 billion in debt altogether.)

Soknacki said Del Grande "stopped a train that was heading for the station" with his good questions and his solid research.

"I think it's quite appropriate for us to take a breath and do the right thing to approve our program for computers," said Soknacki, who feels council should not be hamstrung by the MFP fiasco and also look at leasing options.

"We don't want to jump into things that are not appropriate ... it'll end up costing us too much and we'll end up repenting."

Asked about winning his first big battle at council, Del Grande said he feels very isolated.

"I just keep shaking my head ... everything that goes on here, I just keep shaking my head," he said.

"You've got to make tough decisions and say no sometimes."