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Vancouver city hall secretly paid VANOC $2.32 million for furniture and computer equipment and gave it five months free rent, 24 hours has learned.
A Jan. 8 in-camera staff report, obtained via Freedom of Information, advised city council to rubber-stamp the purchase of “all furniture and workstations including the building security system and all hardware, software, key cards and related components” from the Olympic committee’s city-owned East Vancouver headquarters and branch office in Whistler.
Contracts over $100,000 must go to tender, but there is a loophole that allows sole source bids on “rare occasions” if approved by the city manager and/or council. City manager Penny Ballem is one of two civic appointees to the VANOC board of directors. Ballem did not comment before 24 hours’ Thursday deadline.
The report said the goods were originally worth $9 million. Under the Jan. 31 asset agreement, VANOC got five months free rent until Oct. 31 worth $50,000. The few employees left with the organization move this weekend to an undisclosed downtown Vancouver location.
"Council was informed of that purchase, it was quite a savings," said Coun. Ellen Woodsworth. "I was very much against them not paying rent at that site."
The furniture is being turned over to the Vancouver Police Department, which is taking over the former Campus 2010 for its new headquarters. City hall spent $24 million to buy the property on Graveley and Kootenay streets in 2005.
bob.mackin@sunmedia.ca