Fixing the shared services agreement

Way too long!First, some history: for 15 years, Collus – now Collus/Powerstream – had a beneficial, mutually-agreed-on and successful agreement with the town to provide services back to the town at reasonable rates. These were things the town did not or could not provide itself for reasons of cost, staffing, expertise, equipment or interest. It was mutually beneficial to have Collus provide them.

The list of potential services included:

Reconnect & Collection, Meter Reading, Billing & Collecting, Customer Service, Information Technology Management, Data Tracking, Accounting, Engineering, Planning & Necessary Maintenance, Contracting with Developers, Customers & Others, Subcontracting Services, After Hours Response, Normal Hours Response, Emergency Preparedness, Provision of Supervisory Services, HR, Policy Development, Regulatory Assistance, Reporting and Capital Construction Activities.

The town, of course, had to request most of the services, and if they weren’t asked for, they weren’t provided, so the town wasn’t billed for them. What was asked for and provided was billed quarterly. These figures appeared in publicly accessible financial updates and budgets presented to council. Nothing secret here.

True, not all services on that list were provided all the time. That’s because the town never asked for that service. And it wasn’t billed for what it didn’t receive. Got that? No provision = no billing.

The agreement was supposed to be restructured in 2012 when Powerstream took over the 50% share of Collus. But the person responsible for doing so didn’t accomplish it in time and left. But Collus/Powerstream continued in good faith to provide services, billing the town only for what it did.

In fact, Collus employees have always gone well above and beyond what the service agreement stipulated. After all, the employees of Collus are also residents who love and respect their home town and want it to be the best it can be – a level of dedication one doesn’t expect from interim employees.

In July, 2014, the former council called for a new agreement to bring the contract up to date and see if there were any services to add or delete. The interim CAO was tasked with the job of having the agreement examined and recommendations made for it to be updated. Should be a simple task, right?

Instead, it resulted in the now-infamous report by True North and Beacon 2020 that condemned the agreement and Collus, publicly presented to the new council in December, 2014.

Council rightfully rejected the report and asked the consultants to fix it and bring it back with the facts straight. But that’s not what happened. I wrote about this botched report back in February, 2015.

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Debunking the Collus Myths

Debunked!I was recently told a member of town council is publicly making two incorrect statements that seriously need to be debunked:

  1. Collus is 100% owned by the town (not 50%), and
  2. Collingwood only received $8 million for the sale of its share.

Yes, I realize that these are contradictory statements (why would someone pay you for something they never bought?), but a member of the public alleges they were told to him by a council member this week. That sort of foolishness cannot go unchallenged. So let’s correct those mistakes, shall we?

Let’s get into the wayback machine to go back to 2011; the year of a provincial election when all three parties were making promises to reduce the number of electrical distribution agencies (LDCs) in the province. As noted in the EB in January, 2012,

About 15 years ago, there were 320 local electrical distribution companies; today, there are about 80, and the town’s consultant on the process, John Rockx of KPMG, has said on several occasions, the province has concerns about the continued success of many of those operations.

(First, take a moment to read an article in the Canadian Business Journal about Collus, which tells you how well respected in the province our utility was in 2011, and what its stated goals were.)

Start with number one. You can read the application to the OEB for the sale here: written in March 2012 by Scott Stoll of the town’s then legal firm, Aird & Berlis, which oversaw the whole process. Now some history…

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