Calgary city council has released the financial breakdown for the $2.3 million independent panel that investigated the 2024 Bearspaw water main collapse. The disclosure highlights a significant compensation disparity, with $1.7 million of the total budget going to the panel's chair.
The $1.7 million payout to Siegfried Kiefer
The investigation into the Bearspaw south feeder main was led by former ATCO executive Siegfried Kiefer, who received $1.7 million for his role. According to the report released by Calgary council,the remaining $600,000 of the $2.3 million budget was split among five other panel members, who each earned approximately $80,000.
This massive gap between the chair's compensation and the other experts has become a focal point for critics. Councillor Jennifer Wyness specifically pointed out that while the other members were on fixed-rate contracts, the chair was paid an hourly rate, which she argued creates significant governance and accountability issues.
Emergency mandates and the discovery of a second failure
The high costs were incurred under emergency conditions established by a previous council before Mayor Jeromy Farkas took office. As reported in the city's recent disclosure, the scope of the work expanded after a second catastrophic failure was discovered, requiring additional engineering and technical tasks.
This expansion of work was cited by the city as a primary reason for the nine-month duration and the associated costs. The panel's findings have already begun to influence infrastructure strategy, most notably through the recommnedation to accelerate the twinning of the Bearspaw feeder main to ensure system redundancy.
Mayor Farkas’s plan to cap the Water Utility Oversight Board
To prevent similar spending patterns, Mayor Jeromy Farkas has pledged to implement a cap on future payments for the newly formed Water Utility Oversight Board.. While the Mayor defended the use of private-sector rates to secure independent expertise, he expressed discomfort with the precedent set by the Bearspaw panel.
The city's goal is to balance the need for high-level technical input with the necessity of managing public funds responsibly. this move comes as part of a broader effort to rebuild public trust following the 2024 water main break.
The mystery of the negotiated hourly rate
Despite the transparency of the total figures, several specific details remain unverified. The exact hourly rate negotiated for Siegfried Kiefer has not been disclosed to the public, leaving questions about the true scale of the disparity. additionally, the report does not clarify if the city's decision to use private-sector rates was the only option available during the emergency, or if other,more cost-effectiive advisory models were considered.
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