WINNIPEG Transit director Rick Borland has demanded an apology from Mayor Sam Katz's top policy expert for suggesting city staff exaggerated the case for rapid transit.

In a blistering, six-page letter obtained by the Free Press, Borland accused Katz's policy adviser, Bryan Gray, of damaging the reputations of senior transit staff and a respected independent consulting firm.

Gray's understanding of a recent rapid transit study was "flawed and misleading," wrote Borland.

Mayor Sam Katz said he regrets that Borland interpreted Gray's memo as an attack on Winnipeg Transit.

"I think Mr. Borland is disappointed that elected councillors on EPC have recommended the delay of a project he believes in very strongly," said Katz.

"He has a very passionate and personal committment to rapid transit."

The mayor wants to delay the introduction of rapid transit and use the $50 million set aside for it on community centres and conventional transit instead.

The executive policy commitee voted in favour of Katz's plan this week.

The veteran transit boss demanded that Gray write apologies to senior transit staff, the consulting firm and to the mayor and EPC for providing "erroneous and misleading advice."

Borland even offered to provide the addresses of people deserving an apology.

Borland's memo is the latest in a string of documents that have been floating around city hall, some designed to bolster the case for rapid transit, others designed to discredit the project.

Earlier this week, Katz agreed to release a positive cost-benefit study done by an Ontario-based transportation consulting firm called MKI.

The study showed that for every $1 the city spends on rapid transit, $2.14 will be returned to the local economy in the form of shorter commute times and better air quality.

Following the release of the cost-benefit study, a memo written by Gray for Katz and his cabinet was also leaked to reporters. In the memo, Gray suggested that Winnipeg Transit and the consulting firm lowballed the cost of rapid transit and questioned data provided by Winnipeg Transit to MKI.

Gray, the manager of executive policy commitee secretariat, also questioned the integrity of MKI, suggesting the consulting firm is suspect because it's parent company, McCormick Rankin Corporation (MRC), designs and manages big capital projects and, as such, could ultimately be employed by the city.

"I must be very clear here, Bryan," wrote Borland. "The suggestion by you that very credible consulting firms such as McCormick Rankin or MKI would produce a report for a client simply in order to further their financial gain is abolutely irresponsible on your part."

Gray's memo also suggested that the $50 million set aside by the three levels f government for rapid transit doesn't cover the cost of high-speed, hybrid buses, which would cost an additonal $25 million. And he said the study's accuracy is limited by the fact that it is based in part on statistics provided by the city that could not be independently verified.

Borland bristled at that suggestion.

"In 37.5 years of public service, 24.5 of which have been as director of transit, I have never been accused of providing data that would be deliberately erroneous or misleading," wrote Borland. "Your memo to the mayor and EPC seems to imply that Winnipeg Transit and its consultants have misled council and misrepresented the facts. I take strong objection toothat implication."

Borland said the format and data used for MKI's cost-benefit study are on Transport Canada guidelines, and that the study was far more conservative than a similar cost-benefit done for the Kenaston underpass.

Katz said yesterday it was "inaccurate" of Borland to suggest that his department's reputation has been damaged.

He also defended Gray's memo as being the kind of independent policy advice Gray and his staff are expected to provide to the mayor and councillors.

Katz said the cost-benefit study, Gray's memo and Borland's rebuttal have little to do with his decision to delay rapid transit.

"This has to do with priorities," said Katz. "It has nothing to do with a cost-benefit analysis or any other report."

Borland was also angry that he received the mayor's memo the day after it was given to Katz's executive policy committee and the day after it appeared in the Winnipeg Free Press.

"In general, I would have appreciated an opportunity to discuss your concerns prior to your penning a memo to the Mayor and EPC, because it is obvious to me you do not understand why the report was prepared," wrote Borland. "We could have easily discussed your concerns and resolved virtually all of them if ou had chosen to consult with me prior to the preparation of your memo. I would suggest in the future that you do that."

The memo reveals a deepening antipathy between the mayor and city staff in some departments, who have often been alerted to Katz's plans by the media.

Gray was a lawyer and director of the climate change branch of the province's energy department before his appointment to the mayor's office.

See also:

The Winnipeg Tribune - August 30, 1979 - Fast Transit urged, so fares can 'get along'

The Winnipeg Tribune - June 11, 1980 - City backward on electric buses: Piercy

Gov't of Manitoba - Energy, Science & Technology - Climate Change Branch