PavCo says cost overruns not its problem

What's up with B.C. Place Stadium's roof, you say?

Well, for one thing, the price.

TSX-listed Canam Group (CAM) revealed on April 21 that it would take an "after-tax reserve of $25 million" for 2011's first fiscal quarter for "additional costs for the completion of the cables" on B.C. Place Stadium's retractable roof.

"The corporation believes this reserve represents the likely loss until completion of the project, while adding that discussions to reduce the impact of the reserve are ongoing with various project participants," said a news release.

Further information is to come April 27 when Canam Group president Marc Dutil will conduct a teleconference with financial analysts and media. Spokesman Jasmin Gosselin said Dutil was not available for earlier comment on the B.C. Place overrun.

Canam's Structal Heavy Steel Construction unit announced Oct. 28, 2009 that it scored a contract worth more than $100 million from PCL Constructors Westcoast. Steel was to be sourced from St. Gedeon de Beauce, Quebec and Sunnyside, Wash. by the company that supplied steel to 53 North American stadiums and arenas, such as Air Canada Centre, the new Giants Stadium and Red Bull Arena.

"Both the deliveries and the erection work will begin in the early part of 2010 and continue until the end of the year," said the 2009 news release.

Based on that news release, the schedule has already gone overtime. The last of the 36 steel masts was not in place until Jan. 13 of this year. The original deadline was the end of December 2010. Installation of the roof fabric was supposed to begin in February, but that won't happen until May. B.C. Pavilion Corporation CEO Warren Buckley told me earlier in April that testing of the finished retractable roof would happen at the end of August or start of September with a public open house on Sept. 25. Reopening night is Sept. 30 when the B.C. Lions host the Edmonton Eskimos.

B.C. Pavilion Corporation chairman David Podmore and Buckley did not respond to email queries about Canam's $25 million overrun. Buckley was not available when I called his office Tuesday morning, but spokesman Norman Stowe said via email: "Canam’s issue has no impact on PavCo which has a fixed price contract. No one is looking to PavCo for any shortfall."

PCL inked a $318 million fixed-price contract for the roof work in November 2009. The announced cost of the taxpayer-funded renovation is $563 million (it was supposed to be $365 million).

An announcement is expected soon that the stadium will be renamed for a brand of telecommunications giant Telus. Sources say the company won the bidding for naming rights.

APRIL 27 UPDATE

Canam reported a $39.7 million first quarter loss on April 27 and blamed it on "fierce competition in some business segments as well as the provisions for B.C. Place."

Dutil said Canam's Structal division got the B.C. Place contract in spring 2009 but the final contract wasn't executed until the fall of 2009. He said Structal's scope of work included the columns, compression beams, catwalks, arches and facade elements.

On a teleconference after his company's April 27 annual general meeting, Dutil said Structal "encountered severe delays in the cable portion of the work" in the first quarter after relying on the expertise of France-based Freyssinet.

"We are not cable experts and therefore relied on a third-party to estimate, price, plan and execute the installation of the cable work required to support the fabric roof, the centre node and all the elements required for the retractable roof system," Dutil said.

"During this first quarter we encountered severe delays in the cable portion of the work and hence we estimated that a $25 million after-tax reserve was warranted at this time. We hope to be able to recover a portion of this amount. Our first priority remains to deliver a safe, quality and timely project to our customer PCL and the end-user, B.C. Pavilion Corporation... The circumstances of the B.C. Place job are very difficult, but they confirm that even in the face of such challenges we do not run away."

"We had indications that the erection portion of these cables would be a lot faster and cost a lot less than it's turned out to be. It is my understanding that the taxpayers of B.C. are not on the hook for this, this was a contract where we have to perform at a fixed-price and we'll negotiate between ourselves and third parties. No one intends to refill the bill to someone else.

Dutil said Structal is in talks with Freyssinet to resolve the matter, but his company's work will be done in late July or early August.

"It's going to be a marvel. It's going to be well-done, safe and you're going to enjoy it for many years in Vancouver. It will just cost a little more than expected -- to us."

Asked for comment on the Canam overrun, PavCo CEO Warren Buckley told me: "This is a Canam matter and has nothing to do with the delivery of the completed stadium within the scope of the fixed price contract. There is not impact on budget and we are very confident that we are on track for a Sept. 30 completion."

Pondering poker's predicament

Is poker a game of chance or skill? Is it a game or a sport? The arguments will continue, but the ripple effects of the FBI's April 15 crackdown against PokerStars, FullTilt Poker and Absolute Poker have hit sports broadcasting. Disney-owned ESPN, which has a stake in Canada's TSN, has cancelled poker advertising and programming.

The 2011 Canadian Gaming Summit was held April 18-20 at the Vancouver Convention Centre as the global gambling industry reeled from what poker people have called "Black Friday".

Among the speakers at an April 20 seminar on regulation was Lawrence Walters, an Orlando, Fla., lawyer who specializes in gambling, intellectual property and constitutional issues. Here's what he had to say:

“What you have is an attempt to hold a foreign resident and operation that is legal and licenced in its host jurisdiction responsible for violating a New York misdemeanor statute that makes no reference to online poker. The feds have their work cut out for them in this case for sure.

“We believe that the thrust of the government's case here is really the fraud allegations, the bank fraud, the money laundering. These gambling indictment counts, one to seven in the indictment, were thrown in so that the government could obtain a plea to those counts and then wave around that guilty plea and say ‘see, they're guilty of illegal gambling and the (Unlawful Internet Gambling Enforcement Act) applies’. What they'll say in the backroom is ‘we've got you on the bank fraud, you're lying to these banks and we can prove it. We don't really care about that, we want you to plead guilty to the gambling offences and we can establish a bad precedent for the rest of the industry’.

“Department of Justice has been known to do this in other instances where they'll come up with regulatory offences or tax evasion and then obtain a plea to some sort of more politically charged offence.

“This is going to be one of the first cases, if it goes to trial, that will address head on whether or not the UIGEA applies to anything other than sports betting activity. Given the amount of money involved and the foreign residence of the defendants, it's going to be a precedent setting case.

“If history is any guide, the likelihood of a decision on the merits is pretty slim. In general criminal cases are resolved by way of a plea as opposed to a trial 98 percent of the time, if that wasn't the case the system would collapse. It's designed that way.

“DOJ prosecutors are ruthless in their attempts to get pleas, they will threaten families, children, and take all of your property and basically make it so that it would be financially and morally impossible to fight these cases on the merits. There have been people that have done it, they've toughed it out and won. But the likelihood is that this case will be resolved by some kind of deal.”

Lions rookie rusher charged in ecstasy bust

It’s been said that bad publicity is better than no publicity at all.

Try telling that to the B.C. Lions, now reeling from drug charges against the star running back who was featured in the club’s 2011 promotional advertising.

Yonus Davis is charged in San Jose, Calif. for attempting to possess a controlled substance with intent to distribute. He was busted April 9 by a Drug Enforcement Administration agent at his girlfriend’s house in Milipitas.

Agent Trang N. Le’s April 11 affidavit said Davis signed for a Federal Express courier package containing 67 pounds of ecstasy.

"He acknowledged that he was expecting a Federal Express parcel that was supposed to contain approximately 40 "boats" of ecstasy,” said Le’s affidavit, which explained a boat is slang for 1,000 tablets.

"Davis said he brought the ecstasy tablets for $1.50 per tablet and was expecting to earn $20,000 by selling the 40 "boats".

The court filing said Davis admitted he was expecting the parcel and was checking the Federal Express tracking number for its status.

"Yonus Davis said his ecstasy source is a Haitian male adult who goes by the name of Red. Yonus Davis said he had met Red once in downtown Seattle, Wash. a couple of months ago.

"Davis further said that he only sold the ecstasy tablets to his acquaintances."

The document said a criminal record check revealed that Davis "has a criminal history for a probation violation on Sept. 29, 2009, convictions on misdemeanor charges for possession of marijuana for sale on Feb. 13 and May 20 in 2008; a charge of battery on spouse and vandalism as a juvenile on May 28, 2002; and a charge of robbery as a juvenile on June 24, 2001."

Court filings claim Davis was paid $43,000 in 2010 when he was a rookie star and runner-up for CFL’s Gibson’s Finest-sponsored special teams player of the year.

Davis averaged 6.3 yards per carry when he rushed 34 times for 213 yards. He scored four touchdowns. A statement by head coach and general manager Wally Buono said Davis “remains part of our football club while the investigation process takes its course and we will not comment further at this time.”

For what it's worth, FedEx competitor Purolator is both the Lions' and the CFL's official courier company. The revelation that Davis was cited for spousal battery comes just over a month since the British Columbia Ministry of Children and Family Development announced a $320,000 no-bid contract for Lions players to conduct Ending the Violence Against Women Initiative workshops for high school football players.

The notice of intent said Lions players “through their accomplishments, community visibility and celebrity status are in a position to positively engage young people and raise their awareness about issues related to harassment and abuse.”

Never in the club's history has the team had such a low-key off-season. The Major League Soccer launch of the Vancouver Whitecaps and the Vancouver Canucks' first overall finish in the National Hockey League regular season have kept the orange and black off the sports pages. Until now.

Yonus Davis, arguably the most-exciting Lion in an otherwise dismal 2010 season, may have played his last game in B.C.

Yonus Davis's indictment