We were lied to. Again.

DeceitOn Monday, the Block chose a new representative for the town’s half of the Collus-PowerStream board. They advertised the position in the local media and accepted applications from several qualified local residents. They made it look like they were actually going to follow the proper and legal process for the first time. They went in camera to discuss the applications. And who did they appoint when they came out?

Councillor Deb “What’s a dividend?” Doherty. Yes, the same councillor who complained about not getting a dividend from the utility after she and her colleagues gutted the utility and killed its revenue stream. The same councillor who complained that in the 50% board partnership in which each side has the same number of votes, the other side “holds all the cards,” sets the rules and controlled the purse strings. The same councillor who has NEVER once this term gone to the utility to speak to its staff or find out their side of the story the administration has been spinning.

That’s right: The Block chose one of their own, and arguably the least qualified person among them to hold that position.

What a slap in the face to all those applicants who put their names forward, thinking The Block would act in good faith. Wouldn’t that have been a pleasant change? But of course they didn’t.

They blatantly ignored the public applications. They intended to do so all along. The whole public application thing was a lie. A despicable act of deception.

This is so unethical, so outright underhanded and sneaky it beggars further description.

Continue reading “We were lied to. Again.”

Collus-PowerStream responds about dividend

No dividendOn the April 24 council agenda is an addendum that includes the response from Collus-PowerStream about The Block’s questions over the lack of a dividend from the utility. I wrote about this last month in Dividends for Dummies. I’m glad to see what I wrote then has been proven correct.

The original letter from CPS back in February, stated, “The Board decision was based on the Dividend Policy of the Corporation including consideration of an appropriate capital structure and working capital levels required to continue to operate as a viable business.” Clearly none of The Block had the slightest clue what a dividend is (they aren’t a very bright lot, financially speaking), so they demanded instead a letter explaining why they didn’t get one. Hence my post Dividends for Dummies.

Before you read on, let me remind you that The Block fired its original appointees to the utility board because those appointees wouldn’t act in an unethical manner and divulge confidential, personal information about staff that is protected under Ontario’s Corporations Act. The administration and The Block had a hissy fit that they couldn’t get their way. In a tantrum, they fired the board. Illegally, of course.

The Block illegally replaced these three people with three members of the town’s administration (the interim CAO, the clerk and the treasurer – none of whom had any experience in the electricity sector). When the Ontario Energy Board slapped the town’s wrist for this unethical act, The Block removed the interim CAO and the treasurer and replaced them with two out-of-town lawyers (one from Ottawa, the other from the GTA, both recommended by the lawyer the town sole-sourced to oversee the share sale – anyone see a conflict here?).

So now all of the three town appointees live out of town, and there is no representation from anyone local who is a Collus-PowerStream customer. The whole process violated the town’s own bylaws and policies for board and committee appointments, but The Block and the administration hid behind the very Corporations Act they vilified earlier and claimed it gave them the right to break their own laws. Ain’t hypocrisy grand?

One of these later appointees is the town clerk who sits at the table every council meeting. During the whole Block bluster and blather at the table about the non-payment of a share dividend, NONE of them thought to simply turn their head and ask the clerk about it. None of them asked the board member sitting beside them. None of them were bright enough to figure out that at least one of their own appointees voted not to provide a dividend.

The town got the CPS response on April 7. It lists five points and explains in detail how and why dividends are calculated. I know what you’re thinking: it’s too much information for the Blockheads to digest. And I agree. I doubt one of them will get it even with this fulsome explanation. But you, dear reader, are smart enough to understand it, so read it now. Keep in mind while you do so that every board decision requires at least four of the six members to agree. At least one of Collingwood’s three appointees voted in favour of withholding the dividend.

You know how unlikely it is that most of The Block will actually read the whole letter from start to finish. They hate reading, hate learning things that contradict their alt-fact ideology. They had their minds made up about it before it arrived. They they will misrepresent it at the table and play the blame game. Just watch.
Continue reading “Collus-PowerStream responds about dividend”

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.”
Continue reading “Dividends for dummies”

Saunderson announces another tax hike

Sneaky BrianAt Collingwood Council, Monday night, Deputy Mayor Brian Saunderson revealed The Block’s plan to foist its third tax hike this term on residents. Despite the report on the town’s financial situation by the interim CAO’s pet consultant that warned Collingwood is already overtaxed, Saunderson and his Block plan to raise your taxes AGAIN this term.

At the end of the meeting, he made a notice of motion to “keep” the next tax hike at 2%. Well that simply means he’s giving staff the permission to raise it 2%*. Had he been serious about low taxes, about sustainable budgets and wise financial management, he could have simply said no increase. Zero per cent would have been the right answer. But he made it clear he supports another tax hike – the third this term. And wither Brian goes so follows his six minions.

Now lest you think this is just more of Saunderson’s lawerly, grandstanding moments – him pretending to be concerned about residents – it’s really the sort of political flimflammery we’ve become accustomed to from The Block. Consider that he made this notice before seeing the final budget documents, but long after council was presented its initial look at the upcoming budget. That was when staff proposed a hike of almost 5%.

Saunderson had weeks and weeks in which to comment and make his motion, but only made his preference known the week before the final budget is to be presented, Jan. 30. But the public didn’t know what he was planning because he announced his notice after the in camera meeting, when all the cameras were turned off and everyone in the audience had gone home. Even the media ignored him. What did it accomplish aside from forcing staff to rework everything they have prepared for presentation next week? Just a little slap in the face to staff, don’t you think?

It’s only two percent, some might say. Anyone can afford that. Not so: it will hurt our many residents working for minimum wages, and every senior struggling on a fixed income. These folk will have to figure out what to cut from their limited income – like food or hydro – to pay for the town’s latest increase. And also pay for the impending increases in user fees, and skyrocketing water and electricity rates – about to explode thanks to The Block selling our utilities to an Alberta corporation. Without public input, of course.

Two percent means more than $1 million in the town’s coffers – which will be entirely used up paying for the extra expenses incurred by breaking the shared services agreement with Collus PowerStream, and for the huge bill for creating our own IT department. Plus we’ll still have to pay for hiring all those extra staff – and of course pay for the costs of The Block’s vendettas and witch hunts – already well over $500,000 in lawyers and consultants so far. And the $100,000-$150,000 extra it has cost us by The Block renewing the interim CAO’s contract.

For astute financial management, look elsewhere. But if you’re looking for inept bumbling, you’ve come to the right council. The Block are spending your money like drunken sailors who won a lottery while on leave; they’re ratcheting up your taxes to pay for their excesses. All part of The Block’s ongoing war against low-income earners and seniors.

Collingwood deserves better.
~~~~~
* Sure, he said “up to 2%” but that’s like telling a child it can only have “up to a quart” of ice cream… and then leaving them in the kitchen with the opened gallon container… plus the additional levy approved this term will make it closer to 3%… and yes, a levy IS a tax no matter how the Blockheads try to spin it.

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.

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”