My sources tell me PowerStream submitted a bid to purchase the town’s share of the Collus-PowerStream utility, late on Friday, December 9. While the amount was not stated, I am told it is a “very fair” bid. This is so far going as I predicted in my earlier post.
PowerStream paid $8 million cash for half the share in 2012 (with another $6.4 million coming through Collus from notes and recapitalization), but since then The Block and town administration gutted the board (twice), joyfully ruined the shared services agreement, and happily took away the water side thus reducing the utility’s revenue considerably. Done over two years of secret conniving behind closed doors.
IT services is hanging by a thread – town hall pulled the plug and secretly contracted (apparently sole-sourced without RFP or RFQ) with a Barrie company to do the work. And council approved Collus buying the remaining hardware so the cord has been almost fully cut. The IT relationship with Collus and the town is likely to be cancelled by January 1.
For many years, the town got exemplary IT service at a hugely discounted cost from Collus. The new contract with the out-of-towners will cost taxpayers tens of thousands more every year, but hey, it’s only money, right? Your money, of course, but what do our Blockheads care about you?
All that’s left is billing for the water side, still done by Collus, but thanks to town administration and our Blockheads, is about to cost you hundreds of thousands of dollars more a year when the share sale goes through.
Given the Block’s active and aggressive devaluation of the utility since the 2012 sale of 50%, I doubt the book value of the utility is more than $5 million now. However, PowerStream may offer more than that if for no other reason than to end the harassment and bullying and get away from the town as quickly as possible.
The deadline for the town to accept or reject the bid is, I believe, Friday, January 6, 2017, just under a month away. And that’s with the sword-of-Damocles shotgun clause hovering over their heads. Not very much time for a council whose term has been showcased by flailing inaction, and gormless dithering to make an actual decision. I bet the Blockheads do what the administration tells them to do, just like they always have.