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Setting the Record Straight ....Again

By Ben Meisner

Monday, April 04, 2011 03:45 AM

You may have read the following  entry  by DBIA  Director Grant Zimmerman, posted early Saturday morning on the  recent  events  at the DBIA's Annual General Meeting:
 
I was asked to write in and "set the record straight" about membership in the Prince George Downtown Business Improvement Association (the "DBIA") and make some comments about providing access to the DBIA's books and records. For the record, I am currently a director on the board of the DBIA, although I do not expect to continue. I am not writing this on behalf of the directors but on behalf of myself.

Membership in the DBIA is open to tax paying "Property Owners" and "Tenants" located within the Prince George Downtown Business Improvement Area (the "BIA"). Tax paying Property Owners and Tenants in the BIA become a member simply by submitting a membership application to the DBIA. Ben, you are neither a tax paying Property Owner nor a Tenant in the BIA. You are not a member.

You, like I and many other people in attendance at the AGM, are an "Authorized Representative" of a member. By authorization, you have been given the legal authority to represent a member in all matters pertaining to the DBIA. You are the member's agent, you speak on the member's behalf. Your decisions, your words are those of the member you represent.

As a member's "Authorized Representative" you are entitled to the opportunity to inspect the books and records of the DBIA. Pursuant to Bylaw 50(1) of the DBIA Bylaws, the directors of the DBIA are required from time to time to determine at what reasonable times and places the accounts and books of the DBIA shall be open to the inspection of the members. To the best of my knowledge, the directors of the DBIA have never done this. Not because of some nefarious scheme to deny access but simply because no member has previously requested to see the books (I sit on lots of boards and do not recall ever setting access times and places). Upon request, the directors must obviously consider such request. If they have never considered such a request previously, the directors will probably want to consider: What are "accounts and books"? What obligations arise from Part 2, section 11 of the Society Act? What times and places should such accounts and books be open to inspection? The directors may even require advice from a lawyer to deal with such a request. With a volunteer board of directors it takes time to make decisions. The DBIA board of directors, like most boards, typically meets on a monthly basis. Ben, although you don't say when you, as a member's "Authorized Representative", requested access, but based on your blog, I can only imagine that you did so days before the AGM when the directors and the DBIA's one and only staff member were busy preparing for the AGM. I am not sure how you could reasonably expect the directors to comply with your request on such notice. As long as you are a member's "Authorized Representative" you are entitled to access however you must be patient as the directors determine what that means. I am sure you will get access to the books and accounts, it may just take a little time.

This does not in any way mean that you, as a member's "Authorized Representative" are not entitled to ask questions and receive answers, whether it be at the AGM or otherwise. All members are entitled to ask questions, even hard questions, and entitled to answers. This is a privilege of membership. One only hopes and expects that members put their questions forward in a thoughtful and respectful manner and provide an opportunity for the question to be answered. Unfortunately that is not always the case.

At the DBIA's AGM, I watched a number of directors resign or withdraw their names or lose the election. They are all people who committed significant time and worked extremely hard for the DBIA. They have a real passion to improve the downtown and were well into developing and carrying out a program that would have seen real and measurable improvement for downtown Prince George.

We have invited the nation to Prince George for the Canada Winter Games in 2015. The DBIA has a huge task ahead of it. Whether or not I continue as a director, I wish the directors every success and I hope that the new board give as much commitment and dedication to improving downtown Prince George as the old board because Prince George sure needs it.

Grant Zimmerman
 
 
I would accept the reasoning of Grant Zimmerman who is, at this writing, still a board member of the DBIA that requests for information should be made in a timely manner.
 
I would accept that some boards may not be aware of the policy that requires the DBIA to provide access to the books by a member or an authorized agent for a member.
 
If, following nine requests the flag does not go up, you would think  someone at the DBIA would begin to wonder why this person continues to insist that they would like to see the books and are being denied.  After all those requests, the onus lies on the DBIA to provide the information, or, at the  very least, look at the  Society's Act to see what their responsibilities were. To say they didn't know they had to provide the information is just not good enough.
 
I began requesting a look at the books, all invoices and minutes of the board at their meetings on March 1st, 2011. I was informed, “I could not see them because I was not a member" and so I then found a business to designate me as their representative and returned to the DBIA. A day or so later I was informed that I could not become a member rep. because my,”paperwork " which was a letter from my sponsor, was not "on their letterhead" and I was refused again.
 
I complied with that latest request and returned again to your office, asking the manager that I would like to see the books and all the requested material that I was seeking.
 
I was told that the “books” were now at the accountant’s office and I could see them like everyone else at the annual general meeting.
 
I contacted the accountant to ask for a meeting to see the books, he said that he would pass the request on to another person working in his office and they would call. They didn’t, and so I initiated yet another call.
 
At this point I was told that in order for me to see the books I would need to talk to yet another director, which I did.
 
She informed me that they would not make the books available to me. She also said that, I was "not an accredited news source because I did not belong to the BC Press Council" and so she felt she didn’t need to give me information.
 
I pointed out that I am a life time achievement award winner with the RTNDA which represents the electronic media to which Opinion250 belongs. But I asked how that might relate to a request to see the books as a member of the DBIA?
 
I phone again the next day and insisted that I wanted to see the books. After much discussion I was informed that all of the invoices would be available at the annual general meeting and if I wanted to see them I would have to do so there.
 
I sent along a further three e-mails to the director in question, asking specific questions about specific items. I have not at this date received an answer to any of those questions.
 
Nearlly a month had passed and still no effort to provide the request.
 
At the annual general meeting, those books that I had been requesting were not present neither were the minute books.
 
Instead, I was informed by Dan McLaren that I should have come to him with the request, which prompts a question of why him?
 
I did not write and put into legislation the rules governing society’s under the Society’s Act.
 
As you are aware they were prepared after due consideration by government and are in place for the exact reason that I requested the information.
 
Regardless of the "society" a Board of Directors,  does not have license to interpret laws that are in place for the benefit of all members to their likes or dislikes.
 
Finally, if the Winter Games are to succeed as you suggest, they had better adopt a stance right off the bat that they have a responsibility to the shareholders, in this case the entire city taxpayers to keep them informed.
 
As in the case of the DBIA, a board of directors has a responsibility to answer to their shareholders, in this case, the taxpayers who contribute to the DBIA and that must be first and foremost , suggesting that you didn't know is a lame excuse at best.
 
Ben Meisner

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Comments

Ben;
Is the DBIA subsidized by the City, ie tax breaks, etc? If so, then ANY Prince George tax payer should have the right to see where OUR taxes are being spent.

Grant also said that to be a member you must be a TAX PAYING property owner within the DBI area therefore that should mean any one that has received an exemption from the City on their taxes does NOT have the right to be a member......?

Maybe Op250 could supply us with the properties that are receiving tax breaks from the City.
http://www.investcomoxvalley.com/businessresources/documents/Maintaining_your_bc_society_Act.pdf

This is a link to the regulations of the BC Society Act.

How does one spell forensic audit?
It was clear at the AGM on March 30th, and clear in the first "Setting the Record Straight", that Mr. Meisner has been trying to look at the accounts, books, and records of the society since the beginning of March.

Further, at the meeting Mr. Meisner clearly set out in a chronological order all the attempts he has made since the beginning of March to obtain access to the accounts, records, and books of the society.

So why does Mr. Zimmerman pretend that it is not clear when Mr. Meisner attempted to gain access to the records of the society?

And why does Mr. Zimmerman, a local lawyer, state that the directors might need to obtain legal advice as to what "accounts and records" mean?

Serious?

This is ridiculous. Accounts and records means: Open the records and books and let the members review them. No legal advice required. Why the stalling?

However, one thing that Mr. Zimmerman should be considering and obtaining legal advice on is the fact that the Financial Statements presented to the members of the society at the AGM were not signed by any of the directors. The signature lines were blank. Why?

Mr. Zimmerman should consider the following section of the Society Act which makes the above an offence:


"Approval by directors
40 (1) A society must not issue, publish or circulate a financial statement of the society other than to a director, employee or officer unless it is first approved by the directors and the approval is evidenced by the signatures of 2 directors.

(2) A financial statement of a society issued, published or circulated by the society other than to a director, employee or officer

(a) must have attached to it every auditor's report made in respect of it, and

(b) must not, unless it has been audited and an auditor's report has been made on it, purport to be an audited financial statement.

(3) A society that issues, publishes or circulates a financial statement that does not comply with this section commits an offence."

Why were the Financial Statements issued, published and circulated without having been first approved by the directors and the approval evidenced by the signatures of 2 directors pursuant to section 40?

If they are not following the basic rules, what else have they not done properly.....

These are public funds. Commonsense dictates that there should be ready and open access to the records of the society. Stop stalling.


To the DBIA,Initiatives PG,City of PG,I am surprised all you intelligent people who work and support these organizations haven't learned that it is not always that you have done something wrong which leads to questions and investigations,but it is almost always the perception that you are doing something underhanded.In my experience it is usually too much secrecy and not telling the truth that leads to trouble.This type of behavior has led to the downward spiral of many,just ask some past politicians.You don't have to tell the public everything,but you should keep them somewhat informed,as it's there downtown too.
Just a thought.
There exists this DBIA. In principle a good idea if it does what it is named, IE improves the downtown business area.

I suggest a similar organization for the Hart Area, College Heights, Carter business zone, et el. Perhaps with a loose assciation to the other Imporvement Associations.

Is any one interested?
PrinceGeorge:
You hit the proverbial nail on the head.
Forensic Audit is the only way to deal with it now. Where is that other feller who should waste no time in looking in to this, isn't he called a Director of Societies or something, in Victoria?
I think there is something that needs to be clarified. The DBIA is operated by a _volunteer_ board of business people representing the businesses and landowners in the DBIA area and funded by the same parties in the area. To my understanding the association is not funded by the taxpayers at large so whatever the issues are with the organization should only be the business of the parties that are within its area. They are not accountable to those of us that do not operate businesses or own property within the area.

For what it is worth, I think Mr. Meisner has unreasonable expectations on access to financial records when you consider the composition of the organization. First, by his own chronological detail, he has stated that he started attempting to access records on March 1, 2011. To date, barely a month later, he is complaining that he does not have what he wants.

I think Mr. Zimmerman's comments regarding the nature of a volunteer board of a small society are certainly pertinent. To every board I have ever been involved with, a request like this would be raised at the next regularly scheduled board. Mostly the issue would be procedural in that the societies do not generally have policies around this and must be sensitive to other overriding legislation such as personal privacy of its employees and other parties that may not be released even to a society's members. Any questions or concerns on the board's part would need clarification, possibly from outside parties such as legal and accounting professionals. It may require several board meetings before a policy is properly developed and approved to structure access to financial records to ensure it meets all legislative requirements.

I would not expect a procedural issue to be raised at an AGM and it was likely the next scheduled board meeting after Mr. Meisner's request. Therefore the first board meeting after the AGM is likely when his request would normally be considered. Say the board meets monthly (I have no idea), so this would be sometime in late April (a month after AGM). Say the request gets deferred until the following meeting so legal and accounting professionals could be consulted. Assuming the result of those consultations provide the outcome of a policy within that month, the late May (a month after the April board meeting) board meeting would approve the policy. Therefore, it is likely that the earliest Mr. Meisner would gain access to the information he has requested would be say early June. In my unprofessional opinion, this is a reasonable time frame given the nature and structure of the DBIA.

Also, Mr. Meisner's suggestion that Mr. McLaren should not have been approached regarding the financial records is curious. The DBIA website lists Mr. McLaren as the treasurer and I would think it is natural that a request to view financial records would be presented to the director responsible for the financial records, the treasurer, instead of an unidentified miscellaneous director.

The rant presented by Mr. Meisner suggests he is acting like a petulant child who is having a temper tantrum because the rest of the world is not responding to his every whim instantly. Hardly the behaviour of a respected "life time achievement award winner with the RTNDA".

I don't know if there is really an issue with the DBIA or not but I am sure one day we will all find out whether we want to or not. With all the vitriol in Mr. Meisner's posts, I do have the distinct feeling that there is something else going on than just simple investigative journalism. I am quite likely wrong but still seems odd to me.
A couple of thoughts for you, Irri:

Ben Meisner is not the only person to ask for access to the DBIA's books, in fact, he's rather late entering the picture. Another person even sought the help of select city council members, who were so considerate that they failed to respond. I appreciate the fact that the majority of the members of the board are volunteers, now please, give it a rest.

The reality is that the DBIA is as useless as paws on a priest, and the imposed tax on the already devastated downtown merchants to create jobs and opportunities for friends of city hall, was a cold and bitter wind they certainly didn't need.

The downtown was a happy, prosperous and sel-governed area of town that did very well for itself, until the DBIA was created. It went from Picadilly Square to skid row in very short order. There are deep and troubling issues about the whole organization, from conduct to expenditures, conflict of interest to dismal management. Ben is only one of thousands of us who want hard answers, not procrastination, diversion, procedural delays, etc.

The best case scenario for the DBIA is to open the books and stand proud because there is nothing untoward in them at all. The worst case scenario is their current behaviour (leading folks to believe that maybe 'someone' is fabricating an entirely new set of books, special books just for this occasion).

Folks that get continuously jerked around do have a propensity to get a little 'petulant', Irri, though I think another p word is far more appropriate. Ben ain't getting any younger, and every day more of that money is being spent...so, according to my math, that means 'now' would be an excellent time to set the records straight once and for all.
Hey Ben:
Thanks for doing a great job.
Eyesfull, you raise a good point to me that goes to the root. Should the DBIA even exist and is it a vehicle for the City to justify themselves not actually doing something about improving downtown?

On your comment about the access to books, I had not realized it was an issue for a while (shame on me). I've been late to the story and have only read Mr. Meisner's recent posts on the subject. The DBIA does not impact my daily life so it has not been a topic I have followed. I had interpreted Mr. Meisner's posts as a criticism on the outgoing board but from your comments it suggests this has been an ongoing issue for multiple years. True?

I do find some of Mr. Meisner's recent story lines to very skewed about how the world is so terrible to him and everyone else is corrupt, but I guess they work because I read his articles to find out who the next target is going to be.
The 'root' is the organization's existence at all. It was a hypothical venture that began and ended much like Stalinism. For ten years the businesses downtown have been waiting, hoping, praying to hear "Whoops, there it is!", that moment when success is at last achieved, but instead all they get is asked for spare change. Instead of being angry over products on backorder, they're angry about feces a la mode. Instead of planning expansion, they're comptemplating closure.

The whole organization has been riddled with flaws from its inception. I personally think it was engineered that way, a political diversion directing blame away from city hall, as I've said before, it's a 'fall guy' (and a darn expensive one!).

Ben was never known for being bashful about what was on his mind. But then, neither should other folks be. When Ben gets a burr under his saddle, he shares his opinion, but that's all it is. He isn't God, nor does he publicly purport to be, he's just a guy with an opinion and the metallurical composition anatomically to speak it. I don't always agree with him, but I always agree we should have the right to speak our minds.

After reading this whole thread and others about this matter, the poster who has hit the nail on the head in my view is "eyesfull", especially with the most recent post.

The DBIA as a Society has existed for more than a decade. It continues as an entity no matter who is on the Board at any given time. It has laws it must abide by. The BC Society Act is not the only one. It also has contractual agreements it must abide by.

Those laws have not changed much over the years, especially the Society Act, even though it has been under review for over a year. Good thing that it is because, in my reading of it on several occasions, it is open to a heck of a lot of interpretation as to documents, who has access to them, and how quickly they muste be accessed. There is also a difference whether a Society is a reporting society or not. The assumption, I gather, is that it is not.

The DBIA's Society has had over 10 years to prepare policies and procedures around its legal obligations. The directors and members have generally always been people who have run their own businesses and have often been on other boards. They are not people who have no experience in the matters under discussion, such as a group of people who might run the community kids hockey club Society.

The DBIA has had ample time to gets its act together. This latest squabble to me is a very sad one. It indicates to me that people are more interested in fighting amongst themselves than to get something done, which is not only important for the merchants and other businesses and the few permanant as well as travelling residents of downtown, but to many of the residents of the whole city.
Business Improvement Areas are regulated under the Community Charter, Section 215
They are limited in scope of work they can do.

From the Charter:
"BUSINESS PROMOTION scheme" means
(a) CARRYING OUT STUDIES or MAKING REPORTS respecting one or more areas in the municipality where business or commerce is carried on,
(b) IMPROVING, BEAUTIFYING OR MAINTAINING STREETS, SIDEWALKS OR MUNICIPALLY OWNED land, buildings or other structures in one or more business improvement areas,
(c) the REMOVAL OF GRAFFITI FROM BUILDINGS and other structures in one or more business improvement areas,
(d) CONSERVING HERITAGE PROPERTY in one or more business improvement areas, and
(e) ENCOURAGING BUSINESS in one or more business improvement areas.

Both the original founders of the downtown BIA as well as the past year’s Board have created separate work allowed under (a).

The first major study of how to “revitalize” the downtown dealt with the development of a public market as well as the notion that major entertainment land uses ought to be retained downtown.

So, no public market or serious follow up by the City how they might work with the DBIA to develop one. The matter of the move of the Casino out of the CBD centered around whether gambling and ancillary activities such as a cabaret are entertainment. There was a change to the OCP which set aside a proposed PAC site.

The recent Board also had a report they presented. Whether it was fully, partially or not at all paid for by the DBIA, I am unsure. However, it is clear from the Act, that it is the type of thing which is not only acceptable, but is the first on the list of 4. Given all the controversy around it, and for several other reasons, I doubt that it will be referenced by the City or even the DBIA any more than the study around a decade ago.

An interesting one is (b). The way I read it, collect taxes from the merchants to do maintenance and upgrading which should actually be a city-wide taxpayer responsibility the same as roads, lights, sidewalks etc. around small local commercial areas – Carter Light Industrial area as a for instance.

As a poster on here has already indicated, why just downtown. If the local businesses ANYWHERE in the city can do this, perhaps they ought to in order to get some better control of how their dollars are spent. Rather than increasing business property tax globally, raise it area by area and give some control to the area property owners.

(c) Graffiti removal. How much of that do we have? How much was spent on it?

(d) As far as I can tell, squat has been spent on conserving heritage property over the last decade plus. Has anyone approached the Heritage Commission about this? Of course not! So, that is another non starter.

(e) Encouraging Business. Now there is a wide open one. Can start with events, which were stopped several years ago due to what – expense? Did not encourage business? Too much of a bother? Who knows! Can go to newspaper ads for special sale days. Can go to prizes for best window display. Can go to financial incentives to move a street level retail business into downtown – say the first month rent, or an awning for the storefront. Hey, I know, some paint on the outside of the Farmers’ Market.

So, there appear to be limits, but (e) is wide open as long as a basic principle of equity is followed.

And, after a decade, why is nothing in place?

Beats me!!!!!!!