Dividends for dummies

DividendsA dividend, as defined by the Business Dictionary, is “A share of the after-tax profit of a company, distributed to its shareholders…” This is reiterated in the description from the Oxford Dictionary: “A sum of money paid regularly (typically annually) by a company to its shareholders out of its profits (or reserves).”

So in order to pay a dividend, you need to make a profit. Otherwise all your revenue goes to operating expenses, salaries and taxes. And a dividend isn’t paid to just one person or shareholder: if one shareholder gets one, then every shareholder gets one. Dividends are NOT automatic, are NOT paycheques.

Now say you were a shareholder, and you stripped the revenue stream away from a company you own shares in, and in doing so, you reduced its profit to zero, and say you also caused it greater expenses – say by forcing it to pay more for legal advice or transportation and accommodations for out-of-town shareholders – would you still expect a dividend?

Common sense tells us no. No profit: no dividend.* But common sense is an uncommon attribute at our council table.

On March 13’s agenda, there was a letter from Collus-PowerStream saying the board had decided not to pay a dividend for 2015, and would decide about 2016 after it examined the company’s audited financial statements. (on the Rogers TV broadcast, it starts at 0:18:13, just after the lengthy, self-serving “community” announcements… go past Councillor “Sleepy” Ecclestone’s painful “moved by myself” grammatical error to 0:22:22).

This, course, sent The Block into a tizzy. At 0:22:37 Sleepy again does another “moved by myself” gaffe to introduce a motion to request “an explanation of why the board has chose (sic) not to declare a dividend…” and to “express our concern and disappointment.”
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Volte-face on water

janus facedOn Tuesday, Simcoe County Council voted to “… begin negotiations with the 16 municipalities regarding a “future role” for the upper tier in water and wastewater operations – a municipal domain.” The county wants to bring water and wastewater under its wing to standardize services and improve operating efficiencies much the same way it has done with housing and emergency services. Our deputy mayor voted in favour.

The only story so far on this appears in the New Tecumseth Free Press.*

Not a bad idea to explore, for public discussion and input, weigh the pros and cons. But the problem is that the issue of giving up control of the municipal service to an upper tier has not been given any attention in the local media. Nor have our county representatives – the mayor and deputy mayor – brought it to public attention, nor have they asked for public input or consultation on the issue.

And who gives the county report at the council table? That’s right: Deputy Mayor Saunderson.

Well, that doesn’t surprise you, of course. The Most Secretive Council Ever is always reluctant to tell the public anything. And public input? So far there has been absolutely NONE allowed this term on major issues such as selling our airport, privatizing our water and wastewater, selling our share of the electrical utility, Block 9, taking over water and IT services, the hospital redevelopment – so why would The Block want it now? Your opinion has never mattered to them.

But while the town is getting under the covers with the for-profit corporation EPCOR in a snug deal to privatize our water and wastewater services (in a 99-year lease?), our deputy mayor seems to have made an about-face. He voted in favour of the motion for the county to start the process to take over those services.

Without public input, of course. The best interests of this community? Not even a hint that that might be under consideration.

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The Blame Game

Blockheads playing the blame game
Remember The Name Game – that song from the Sixties that had those crazy lyrics: Shirley! Shirley, Shirley/ Bo-ber-ley, bo-na-na fanna/ Fo-fer-ley. fee fi mo-mer-ley, Shirley! Not the most intellectual lyrics of the era, I admit, but not forgotten and clearly suitable for local tastes. In Collingwood town hall, for example, they even sing their own version, The Blame Game:

Bloggers! Bloggers! Bloggers!
Bo-ba-loggers, bo-na-na fanna
Fo-fer-loggers fee fi mo-mer-loggers, Bloggers!

And so on. It’s part of the “not my fault” mindset that infuses The Block and the administration this term: blame everyone else for the mess you made yourself. Sort of like being in a five-year old’s heaven: it was broken when I found it. Not my fault! I wasn’t even in the room. She started it. I don’t know how it got in my pocket. Someone musta put it there. I didn’t do it! Wah, wah, wah!

It has been sadly amusing watching The Block and the administration fumble and bumble and stumble along their rocky ideological road, while eagerly pointing their fingers at everyone else as the source of their misfortunes. They never once take responsibility for their own decisions and actions. But instead of extricating them from the quagmire, all this flailing about and blaming others has only stuck them deeper in it.

Here are some of the people, groups and services The Block blames for the misfortunes they have done to themselves, the town, its staff and our reputation this term. You can see how many opportunities have created for themselves in this song:

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The onerous burden of responsibility

Drinking waterImagine you’re in high school one day around the end of the year. It’s warm outside, sunny, and you want out of the stuffy classroom. You’re not paying attention. You’re looking out the window, fidgeting. Daydreaming, miles away. The teacher drones on and on but you don’t hear a single word.

Then, the bell rings. Just before the class leaves, you hear the teacher remind everyone that you are responsible for their safety, you are responsible for their wellbeing, for their health. For all the kids in the school. And their parents, too. And if you don’t do everything right, if they get hurt or sick, they can sue you and your parents and take everything you own and even send you to jail. You, the daydreamer, the class clown, the gossipy one who never paid attention.

What? How the hell did that happen? When was this ever raised? You have no idea how you found yourself in this position. Responsible for everyone? You’re never been responsible for anyone or anything in your entire life. How could you suddenly become responsible for everyone, for people you don’t even know? Is someone making this all up?

And what is it you’re supposed to do? Did the teacher say something? You don’t know. You weren’t paying attention. You never pay attention. Whatever it is you’re supposed to do, if you screw it up, you get sued. or worse: sent to jail. But how can you be expected to do something you don’t know anything about?

One big, burning question occupies your thoughts: How do I get out of this? Somehow you got yourself into it, got boxed in. Now all you can think about is how to get out from under the heavy weight of responsibility.

And that’s exactly the position The Block found itself in this term. In the first year, The Block fired (unethically and illegally, by the way) all the members of the town’s water utility service board. An in their places they put five of their own members. Five Blockheads without the slightest interest in, understanding of, or experience in water or utilities.

But they hadn’t been paying any attention. They never paid any attention. They were always too busy gossiping, making wisecracks, clowning around, daydreaming. And then they got scared. Trembling, hide-under-your blankets-and-pee-your-Spiderman-PJs kind of scared.
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The EPCOR sales pitches

Big Brother
I’m told the interim CAO is distressed – apoplectic, really – that I am aware of his sales pitch information sessions in which he touts the wonders of EPCOR to town staff. Two sessions that I know of. At the most recent one he brought along EPCOR representatives to schmooze the staff.

Apparently he is not winning them over.

It might be because, as I have been led to believe, Mr. Brown has few fans. I’m told he is generally disliked by many staff. As he is, I’ve also been told, by our municipal partners, our neighbouring municipalities, the hospital board, some local developers and a few others. Thus he may be unable to sway anyone with his blandishments.

Bringing along EPCOR doesn’t help. That’s like bringing foxes to a meeting about managing the hen house after it gets sold to the foxes. It’s made doubly worse because it’s all happening without any public input or consultation.

At these meetings Mr. Brown warns staff not to get their information from unnamed “bloggers” – me, of course – and warns that such information is false. Ooh, scary. Like I’m some local Kellyanne Conjob. Well, I’m flattered he bothers to read my posts because he has said in the past that he doesn’t. Always nice to recognize another reader.

But I’m just doing what you could – and the media should – do: go online and research the company, read the news, drill down through the archives. Read what others say about privatization, about the selling of public assets, about the loss of control, about the gobsmacking rate hikes and customer dissatisfaction that follow. I don’t need to make this stuff up, like Kellyanne does.*

True, I add a bit of editorial comment, some of my own opinion and analysis here and there, but the source material is linked for you to read for yourself and make up your own minds. I hope my own years as a reporter and editor give my posts at least a patina of credibility. If our local media did any real reporting, any investigative journalism, I wouldn’t have to do it for them.

Be that as it may, nothing Mr. Brown says can disguise the fact that this process stinks, and has done so since day one. To my eye – my vision coloured by a dozen years in local media and three terms on council – it has been unethical, immoral and illegal.

The secrecy, the back room conniving, the lack of public consultation, the lack of openness and transparency – these are the hallmarks of The Block’s abysmal behaviour since they took office. But the buck stops at the interim CAO’s office because he is in charge; he oversees the process. And since he has told staff and council that all inquiries have to go through him – he controls the process and the dissemination of information, too.

Continue reading “The EPCOR sales pitches”

EPCOR’s rate hikes create unrest

Corporate takeoverIt seems EPCOR isn’t the most beloved utility service out there, despite the glowing comments the interim CAO made to staff recently. I was given a recording of his hour-long talk (aka sales pitch) for EPCOR and I can only say I hope no one listening fell for it (I’ll review his talk in another post).

Despite his stumbling blandishments, EPCOR’s management style isn’t all that popular. And if you do some searching for unflattering news stories about the corporation, you can find the following online:

Global News had this one on Feb. 2, 2017: Tabor took back their water from EPCOR after a 68% increase in water rates:

Taber Town Council has decided to end its 20-year utilities contract with EPCOR just nine years into the agreement.
EPCOR was under contract to provide Taber with its water and sewage services.
The move to end the working relationship comes after the company proposed to increase utility rates by 68 per cent. All 10 EPCOR employees will now work for the Town of Taber to ease the transition.

Sixty eight per cent increase in water rates in one year! There’s a customer-friendly business model for you. I have no doubt we can expect that sort of increase here once The Block privatizes our water to EPCOR. And yes, it will be privatization, not simply management and a disaster for the town.

Closer to home, Adjala-Tosorontio is also considering outside management for its water and wastewater services. According to a story on Simcoe.Com, dated Feb. 3, 2017,

Two companies, EPCOR and Clearford Water Systems, have submitted bids through a request for proposals (RFP) process to design, build, finance, operate and maintain the system.
In one scenario, where no developer’s contributions are assumed, the wastewater user rate would cost about $2,800 a year if the project was financed by Clearford, or $3,350 a year if it were financed by EPCOR. The figures in the financial analysis were presented in 2019 dollars, which is assumed to be Year 1 of operation for the system. Council said the current rate is a flat charge of $1,313.

A little calculation reveals that under EPCOR’s management, residents’ water rates would go up annually by $2,037! That’s a 155% increase in a single year!

These are just two recent Canadian scenarios, but imagine how YOU, dear reader, will react when The Block sells our water services to EPCOR and YOUR bill jumps by 68% Or worse, 155%! Or more!

And you don’t think it will happen here? Well, read on…

Continue reading “EPCOR’s rate hikes create unrest”

Monetizing our public assets

ConsequencesIn the town’s disingenuous press release (really just a sales pitch for EPOCR) about its obsessive drive to privatize our utility services, it has this paragraph:

The Town’s RFP process solicited proposals from a wide range of potentially interested parties that could maximize the value of the Town’s remaining investment in Collingwood PowerStream Utility Services Corp. Given the terms of the existing Shareholder’s Agreement with PowerStream entered into by the previous Council, the Town has very limited options regarding how it may monetize its remaining 50% investment in the local electricity distribution company.

Monetize a public asset? Since when was that the policy? It wasn’t even raised during the election; it’s something The Block cooked up in one of their secret meetings. The very notion of “monetizing” a public asset is some American Ayn-Rand-libertarian wet dream, a wacky laissez-faire approach to enrich corporate interests that has nothing to do with standard business or professional practices of any Canadian municipality I know of.

Privatization of public assets was big in the USA, with poorly-run and inefficient municipalities thinking they could buy their way out of debt by selling everything they could. The result has not solved anything, but instead created an Orwellian nightmare where the residents are in thrall to profiteering private corporations that control their services, utilities, recreation and police while being told they are freed from the responsibility to run them.

(Let’s see… what poorly run, inefficient Canadian municipality with a myopic council comes to mind? Ah, I see…)

But what does monetize really mean? It sounds like something that makes a profit, an investment that gives us increasing dividends – but that isn’t true. It simply means selling what we own. You can’t hide that behind another word. We will be selling our water and wastewater services. And not even to the highest bidder: it will be sold to the already-anointed one. And once sold, it’s gone for good. And if we wanted dividends, The Block would have stayed with PowerStream rather than engage in its two-year witch hunt that killed the annual dividend from the utility.

(Just think of the public outcry that arose over privatizing Hydro One).

And yes, the town had “very limited options” because it’s a partnership. Clearly the author of that dreck doesn’t understand what a partnership means. You know: working together towards common goals, that sort of thing.

Fifty percent of the utility was sold to PowerStream. The goal of that sale was stated in public: to enhance customer service, create better efficiencies in billing and service but to maintain control over the service and rates. Selling more would meaning losing that control. No one who was interested in partnering submitted a bit for less than 50%. So of course you have “limited options.” That isn’t a bad thing: it’s GOOD because selling those controls is incredibly selfish, shortsighted and stupid.

But that’s The Block for you.
Continue reading “Monetizing our public assets”

The Block lied. Told you so.

StenchIf you read the media release published by the Town of Collingwood this afternoon you will realized just how much you have been lied to these past two years. It’s titled, “Council to pursue Hydro Share Sale discussions with Epcor.” This is the “unnamed company” whose name The Block and the administration tried – unsuccessfully – to hide from us.

But like I warned you: The Block is privatizing our water and wastewater services, too. All without any input or consultation from the public:

In addition to submitting an offer on Collingwood’s remaining interest in Collingwood PowerStream Utility Services Corp, EPCOR has proposed a services arrangement to operate the Town’s water and waste water system under the Town’s continued ownership.

And yet the media release has the unmitigated gall to add,

The Town plans to hold a public information session once more information is available that will provide more details of the EPCOR proposal and seek public input.

Folks, you already know this is a foregone conclusion. After two years of outright deceit and deception, your input no longer matters. The deal is already done: a fait accompli, and nothing you say at this point makes any difference. You are about to lose control of both water and electrical utilities – lose control of the rates, service levels, quality and delivery – to an Edmonton-based corporation you’ve probably never heard of.

The Block doesn’t give a shit about what you think about it. Or about anything else. They hold the public in utter contempt. And it won’t be the last time The Block lies to you, either.
Continue reading “The Block lied. Told you so.”

You’ve been duped. Again.

Duped againRemember all those blithe assurances from The Block that they were only “kicking tires” and “just exploring our options”? Well, there’s a story in the Connection that shows just how much you have been conned by your elected representatives. It’s titled,”Collingwood to continue utility sale negotiations with unnamed bidder.”

Read that headline again. Pay attention to two words: negotiations and continue. How can they be “kicking tires” or “exploring options” while continuing to negotiate with a company? A company The Most Secretive Council Ever won’t even name, but had its representatives in the room yesterday?

It’s all been a thin lie. A con game. And the result will be the loss of our public utilities at a huge expense to the taxpayer.

Council voted 7-2 — with Mayor Sandra Cooper and Coun. Kevin Lloyd opposed — to authorize solicitor Mark Rodger and chief administrative officer John Brown to “pursue further detailed discussion with one RFP proponent” that had responded to the town’s request for proposals for the town-owned share of Collus-Powerstream.

The sorry truth about the two years of backroom deals by The Most Secretive Council Ever has been revealed. This is the secret deal to privatize our electrical and water utilities I warned you about earlier. It’s been planned for the past two years and is finally coming to closure.

That unnamed bidder is most likely the Edmonton-based energy giant, EPCOR. Your public utility services are soon to be in their hands without any input or consultation with you, the owners of those services. Your rates will skyrocket, you will have no say about the service. There will be no accountability or openness. Just what The Block wants.

The only two on council who haven’t been scheming and plotting against the public’s interest are Mayor Cooper and Councillor Lloyd. The rest have acted in bad faith and betrayed the public trust.

Collingwood deserves better. And we deserve a full investigation into this, not only the process but to see if anyone benefitted from misuse of public money.

Collingwood Council’s missed initiatives

IneptitudeThe word initiative derives from the Latin word initiare “to begin.” Since 1600, it has meant “introduce to some practice or system,” “begin, set going.” While any sort of action or engagement, positive or negative, can be classified as an initiative, generally one refers only to positive enterprises when describing political or social initiatives.

I know, I know: you immediately want to interrupt and say, “but Ian, The Block don’t do anything positive, and you cannot talk about a council’s initiatives when none have occurred.” I agree, but bear with me.

It’s true that, when measuring the positive actions begun for the benefit of anyone but themselves, Collingwood council comes up woefully short: mene, mene, tekel upharsin so to speak. There simply have been none and likely won’t be any this term. This council is better described with one or more of the 44 antonyms for initiative: lethargy, indifference, indolence, apathy, diffidence, staleness, dreariness, lassitude, insipidness… they have no interest in your or my good, just their own.*

A short while ago, I wrote Council’s report card: Year 2, part 1, a post humorously (but truthfully) describing council’s sorry list of “accomplishments” for the first half of its term (forbidding you from throwing birdseed on your driveway is their main intellectual effort). Aside from my sarcastic poke at their rampant ineptitude, as you, dear reader know, there were no real accomplishments.

In that previous post I promised to present you with a list of “the Blockheads’ failures and debacles, their endless efforts to destroy people, institutions, and relationships, their gobsmacking waste of tax dollars to pursue petty vendettas and personal agendas, their arrogant self-interests, their conniving, their secrecy, their blatant dishonesty and their egregious ineptness and all the rest.” And I started to. The list was long. So very long.

To be frank, after I began that post, I found myself unwilling continue. There were simply too many dreary, petty items, too many malicious actions, too much skullduggery and self-interest to expose again. I became depressed in the process of categorizing and explaining all the malevolence and evil. All that self-serving, nest-feathering, the witch hunts and vendettas … it could drive one to drink.
Dilbert, of course...
While I don’t mind writing another sententious “Malleus Politici” (and the Muse knows they deserve it) this became an extended, overly long and increasingly bitter rant even for someone given to near-hypergraphia. After some contemplation, I decided to take a different tack. I thought what I should do is to list some of the initiatives taken by other municipalities and compare those with what Collingwood has or has not done in that vein. See what positive approaches others have taken in dealing with the problems, issues and challenges in their municipality and measure ours against that.

Alas, we again fall woefully short. But if you have been reading this blog, you already know that. Still, the exercise is educational. The list as follows is neither complete nor in any order aside from what came to mind at the moment of writing.

Continue reading “Collingwood Council’s missed initiatives”

Council is privatizing our utilities

Water costs
Collingwood council and its administration are planning to privatize both our water and electricity utilities. All, of course, without consulting you, the public. Some members of council have even stated – with a straight face, mind you – they would ask for your input at a later date. A date long after it’s too late for public input to matter, of course.

They have already engaged in negotiations with outside companies to take over our utilities, all the while pretending they were just “kicking the tires.” They appointed their lawyer to oversee the sale. Consultants made reports painting the existing situation with faux negativity, from early 2015.

In 2012, the former council determined (after considerable public discussion and public consultation) to sell only 50% of its share in the electrical utility, not 100%, and not water, because that would mean a loss of control over services and rates, loss of accountability and openness, plus additional liabilities. This council is determined to give away those controls, reduce accountability and transparency. It will cost taxpayer millions. And they’re doing it all in secrecy.

“I will assure you, no decisions have been made, we are just exploring our options with any interested parties,” Councillor Madigan said last July – facetiously I assume, because by that time, more than 18 months of in camera discussions had been held. Surely he was awake through at least one of them.

Council has acted in bad faith and conned the public about this ever since it took office. No one expects them to be honest or open about it now. Their plan was made evident in 2015 when The Block fired the existing water utility board (a group of talented professionals with considerable experience in water) in violation of the town’s procedural bylaw, and replaced them with five members of their own group – none of whom have any experience in water or wastewater (and none of whom have any talent). That signalled their intentions.

A recent request for proposals (RFPs) for the sale of the town’s share of the electrical utility was sent to utility corps – including, people in the industry lead me to believe, EPCOR, in Alberta. These RFPs belie that pretense that this is just “kicking the tires.” It’s always been a full-blown conspiracy to privatize our utilities. You don’t send out RFPs to corporations just to see if they’re interested. You do it because you intend to sell. Once started, the process is irrevocable. And inevitably expensive.*

But electricity is only part of the plan. All along it’s been a bigger picture: to sell both electricity and water/wastewater services. And let the taxpayer pay for the fallout. As Food and Water Watch documented (in the USA):

Investor owned utilities typically charge 59 percent more for water service than local government utilities. Food & Water Watch compiled the water rates of the 500 largest community water systems in the country and found that private, for-profit companies charged households an average of $501 a year for 60,000 gallons of water — $185 more than what local governments charged for the same amount of water. Investor owned utilities typically charge 63 percent more for sewer service than local government utilities. Food & Water Watch compiled sewer rates survey data from dozens of states and found that private ownership increased sewer bills by 7 percent in West Virginia to 154 percent in Texas.

Continue reading “Council is privatizing our utilities”

The PowerStream deadline looms today

Our Council Blockheads at workBig day for Collus-PowerStream today: the deadline for acceptance of PowerStream’s sale offer for the remaining share of our utility expires this afternoon. And of course Council will finally deal with it at the special meeting called for noon, today, mere hours before it expires. Nothing like waiting until the last moment. They’ve had a month to deal with it, but that’s our council: inept and procrastinating until the end.

Like I wrote in December, if not accepted, this will trigger the shotgun clause in the shareholders’ agreement and force the issue (see below). Council could have avoided the deadline and the shotgun by simply agreeing to waive the right of first refusal and the shotgun clauses as PowerStream requested before submitting its bid, but no one in The Block was bright enough to realize the light at the end of the tunnel was an oncoming train.

The Block will be like flies stuck in amber: frozen by their failed ideology and innate stupidity; unable to respond effectively while the deputy mayor and the interim CAO try desperately to spin the issue as PowerStream’s fault instead of a debacle of their own making. That’s been the storyline fed to council and the public for the past two years and they’ll stick with it despite it having been exposed here as a poorly written fiction for a long time now.*

As evidence of their ineptitude, any bids for the share received from the RFP sent out last fall are supposed to be discussed at council’s January 20 meeting. Two weeks after today’s deadline. That’s a true Homer Simpson “Doh!” moment.

And if you’re a council watcher, you’ll recall the gormless Blockheads mouthing bromides about “kicking the tires” and “getting public input” – all the while scheming and conniving behind closed doors (where they will be, again, today). And now they’re stuck. They that sow the wind, shall reap the whirlwind. Ain’t karma a bitch?
Continue reading “The PowerStream deadline looms today”

Collingwood’s own Gong Show, part 2

Keystone councilAs promised, here is the second part of the Gong Show analysis from December 12th’s council meeting. Like I said earlier, it’s perhaps more like a Keystone Cops or Abbott and Costello skit than the TV show.

As always, you can follow along on the Rogers Community TV broadcast, starting at 2:16:30. Laugh aloud at the zany, misinformed antics of your elected representatives as they fumble and stumble their way through an agenda of items they clearly have no clue about. You should start with part 1 of my review, if you haven’t already read it.

And by the end of this post you can decide which of these titles best suits our Blockheads:

  1. The Most Secretive Council Ever
  2. The Most Inept and Ineffective Council Ever
  3. The Most Devious Council Ever
  4. The Most Disrespectful Council Ever
  5. The Most Corrupt Council Ever
  6. The Most Underhanded Council Ever
  7. The Most Petty and Vindictive Council Ever
  8. All of the above.*

So first take a look at a letter that appeared on the consent agenda of the Strategic Initiatives Committee from Dec. 7 (SIC is one of those dysfunctional and inefficient council committees created by the interim CAO, yet embraced by Blockheads at the table with no experience in process or politics who prefer to flail and fumble rather that govern efficiently). See page 96 for the letter, which says in part:

Please accept this letter as confirmation that Collus PowerStream will not be renewing its existing computer rental agreement with the Collingwood Public Utilities that expires December 31st, 2016.
With regard to the existing equipment, the Board of Directors at our November 25th meeting authorized me to offer a one-time payment of $23,920.00 plus any applicable taxes for the attached listing of user workstation equipment and associated accessories (keyboards, mice, cables etc.) we are currently using and are interested in acquiring.
We ask that you please confirm acceptance of this offer by end of day December 15th, 2016. This will allow us sufficient time to make alternate arrangements prior to year-end for replacement hardware should the Town choose to not accept this offer.

Some key concepts here to keep in mind:

  • The board authorized the request and amount offered;
  • The agreement to rent equipment ends Dec. 31 at the same time the shared services agreement ends;
  • CPS needs to know by Dec. 15 and it’s already Dec. 12;
  • The offer is more than three times what the equipment is worth.

Simple, right? Apparently not for everyone.

Some history: Collus always provided the software and the technical support for the town’s computers as part of the shared services agreement. The agreement ended in 2014 but was extended until the end of 2016 so the interim CAO could present an update agreement. It still hasn’t been done.

The town (in this case the water department) purchased the hardware and rented/leased it back to Collus (later Collus-PowerStream, CPS) for just under $22,000 a year to provide a revenue stream to the town. With the unrelenting harassment of the utility and its staff by The Blockheads and the administration, CPS wants to get as far away from this viper’s nest as possible. CPS offered to buy the remaining hardware – mostly used notebooks, monitors, mice, cables and keyboards – from the town. And end another revenue stream to the town from the utility.**

used computersNow, keep in mind that this is all equipment CPS is using, not another town department or service. Whenever a department needs computer equipment, that department head purchases it. No department head has asked for any of this equipment, not least of all because it’s old and used and they can get new with a signature on a slip of paper.

And it’s all at least 3-4 years old (which means the laptops may not even be up to running Win 10) and may not be in the best shape after daily use for that time. Much of it would normally be replaced with new equipment in the next 12-28 months as per the town’s hardware replacement cycle.

But our Blockheads are apparently experts on IT, even though some of them can’t even configure their own home wireless without IT intervention.

And don’t forget: the shared services agreement to provide IT services to the town ends in January, 2017, before that vaunted mid-month report from the consultant. Second, the recent PowerStream offer to buy the Collus share has a deadline of Jan. 6. If accepted, there will be no relationship of any sort between the utility and the town. And if not accepted, PowerStream will invoke the shotgun clause and the whole shebang will unravel 30 days later.

This where the fun starts – be prepared to laugh and roll your eyes. And to shake your head in wonder at the pettiness of our Blockheads.

And then gasp in disgust at the backstabbing and deviousness that happened a mere two days later. Of course, you won’t read any of this in the local media. You’re welcome.
Continue reading “Collingwood’s own Gong Show, part 2”

Collingwood’s own Gong Show, part 1

The Gong ShowHas there ever been a more inept, ineffective group at the council table in Collingwood? Certainly not in the 26 years I’ve been here. Not in the dozen years I covered it for the media, not in the 11 years I served on council have I seen anything so comical.

Rogers TV really should put a laugh track on their broadcasts of council meetings. They could call it the Gong Show – had that name not already been taken by a more serious TV show.

But until then, you should watch the December 12, 2016 meeting. You’ll roar, you’ll chuckle, you’ll guffaw over the zany antics of our madcap councillors as they flail about trying to understand what they’re doing. It’s funnier than a Marx brothers’ skit. And it will take more than just this one post for me to cover this slapstick madness. So here’s part one…

Start at 53:14 into the show (I’ll deal with the pointless waste of tax dollars on a peer report about the hospital that says nothing at another time). This is about a letter on the consent agenda (A8) from Collus PowerStream about the final closure of the IT services provided to the town. It says:

We are hoping that we can agree to a very early discontinuation date. We understand, the Town has created specific IT job descriptions with the intention of recruiting for those positions in the very near future. In addition with your recent acquisition of an outside IT consulting firm we believe it is time to operate independently.

At 53:28 Deputy Mayor Saunderson reads the motion, saying, “Moved by myself…” (here’s your first big chuckle of the night: none of the Blockheads know that it should be “moved by me…“! Yuck, yuck, yuck… I guess they don’t teach English in law school…) and then says the town will utilize (why use the solid one-syllable “use” when three bloated syllables will do?) the IT services provided by Collus PowerStream “up to June 30, 2017… or until mutually agreed upon earlier.”

Yep: lotsa laughs already. The Blockheads gutted the shared services agreement and their interfering this term will cost taxpayers at least $1 million more a year starting in 2017. But now they’re in panic mode because they didn’t plan for this.

The agreement actually ended some time ago (end of 2014, I believe), but on the promise of an updated agreement coming, it was extended to January, 2017. So Collus-PowerStream has no obligation to provide ANY services (including billing for water) in 2017. And last Friday PowerStream put in a bid for the town’s share of the utility with a deadline of January 6. After that, there will be no Collus-PowerStream left, just PowerStream. With no obligation to the town whatsoever.

Not to mention that this council and administration have connived behind closed doors to sell our share of our utility without any public input. The administration sent out RFPs trying to find a buyer (ignoring PowerStream’s first right of refusal in the contract…). Hardly conducive for continued relations.

The town already sole-sourced the IT services this fall to a Barrie company (and again without public input). So who do they think is going to going to do the work to complete the transition? And after two years of harassment, bullying and a $500,000 morale-destroying witch hunt cooked up by The Blockheads, everyone at Collus wants to get free of any relationship with the town as soon as possible. January is late enough to be in this viper’s nest.

But The Blockheads press on, oblivious.

Continue reading “Collingwood’s own Gong Show, part 1”

Collus share bid received

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.

Continue reading “Collus share bid received”