I was surprised that only ten people stood at the lectern to speak in the Judicial Inquiry’s first public meeting, last Monday. I had expected that at least Brian Saunderson or one of his minions would have the courage to stand up in public to explain why they wanted to spend so many millions of your tax dollars pursuing their private vendettas. Explain why they launched an inquiry a few weeks before the municipal elections opened, instead of three and a half years ago, when they took office. Explain why they haven’t been able to stop looking at the past since they were elected, and start looking to Collingwood’s present – and plan for our future.
But of course that would take a spine.
However, some good, salient comments were made, in particular by John Worts, Kevin Lloyd, David O’Connor, Peter Dunbar and Irene Matwijec. And, I hope, maybe a few were made by me, too.
However, some of the other speakers asked surprising questions. Surprising because most have been answered many times in the past in local media and on my blog. In particular in my admittedly lengthy timeline of events.
I suspect many of these questioning speakers are rather new to the community, and not fully aware of the lengthy history of these events – many of which are already more than seven years old. I thought I might try to answer at least some of their questions here, so in future they have the background. I am paraphrasing their questions below.
1. How was the price of the share in Collus established?
A. World-renowned consulting firm KPMG was retained by the Collus board in Feb. 2011 to establish the value of our electrical utility as a sellable commodity, examine the options for its future, explore opportunities in the then-current political climate, and return to the board with a report that spring.
Their draft report was titled Calculation of Value, and presented to the Collus board on May 20, 2011. It determined the fair market value of all the common shares of Collus Power (on page 2 of the report) as at December 31, 2010 as:
…we have calculated the fair market value of all the issued and outstanding Shares of Collus Power Corp., as at December 31, 2010, to be in the range of $14.1 million to $16.3 million (i.e. with a midpoint value of $15.2 million).
Half of that (the RFP was for “up to” 50%) would be somewhat less than $8 million, which is what the town received from PowerStream. The balance of the funds paid to the town came from the utility’s recapitalization and from the $1.7 million promissory note held by the town, for a total of approx. $14 million.
The valuation report was marked as a draft because, as John Rockx of KPMG noted in a 2015 email,
The valuation report was left in draft format since the former controller, Tim Fryer, did not provide us with responses to a few questions in respect of the report content (see blanks on page 5 of the report) or provide us with the final December 31, 2010 financial statements of Collus Power…
Fryer, as you know, is now a councillor and running for re-election.
Continue reading “A few answers”