The head of Winnipeg's transit system has accused a senior mayoral advisor of misleading Mayor Sam Katz on the merits of a rapid transit project. Transit director Rick Borland is demanding Bryan Gray apologize to Katz for providing poor advice and to the bus service and one of its private consultants for tarnishing their reputations.

In a letter leaked to the media yesterday, Borland blasts Gray for writing a recent memo that suggests the findings of a cost-benefit study on rapid transit are questionable and unverified. " In the process you have called into question the professional integrity of a number of very credible individuals and companies," Borland says in the letter.

Sources and supporters of the proposed Bus Rapid Transit (BRT) system say Gray's memo could have been largely responsible for convincing Katz and his council cabinet to shelve the project's $50-million first leg on Wednesday.

Borland says in the six-page letter that Gray, manager of Katz's executive policy committee secretariat, has been "absolutely irresponsible" in suggesting a Markham, Ont., firm provided positive findings on rapid transit "in order to further their financial gain."

The transit director also accuses Gray of wrongly describing a projected $319,000 annual additional operating cost for BRT as a financial risk.

Borland argues that this amount would be more than offset by an expected $800,000 increase in fare revenue on the system of high-tech buses that would run on dedicated roadways.

Katz insisted yesterday Gray did nothing wrong and owes no apologies.

"Mr. Gray is very thorough with what he did, and I have no problem with his memo in any way, shape or form. And I'm glad that myself and EPC received a copy of it," Katz told The Sun.

"You can read a report, interpret it one way and the next person can interpret it another way. Why do people go to court? Because one lawyer sees it one way, and another sees it another way. Interpretation is interpretation, but the facts of life are that everybody should have the information."

Borland couldn't be reached for comment yesterday. Gray didn't return a call to his office.

While Katz suggested Gray's memo is merely "diplomatic" in asking questions about BRT, Coun. Gord Steeves (St. Vital) said the fuss is unjustified.

"People make decisions based on how they feel about the direction of the city,"a said Steeves, an EPC member who voted to shelve BRT.