Timeline of the original Collus share sale

VindictiveWith the pending yet pointlessly vindictive Saunderson judicial inquiry – a punitive, self-serving exercise expected to cost local taxpayers of between $2 and $6 million (and potentially much more!) – I thought it might be useful to reprint in one post the timeline of the sale of half the share of Collus to PowerStream in 2011-12. I’ve posted much of this previously, in separate posts, but I also spent several days combing through online sources and archived documents to ensure I had a comprehensive timeline.

There are a few related notes included that underscore the electricity market in flux in 2011, the reasons for the sale (and for a strategic partnership versus a full sale) and the criteria used to determine the best partner. Some of the links in the timeline may no longer be valid (the Enterprise Bulletin, for example, folded, although some pages are archived on the Internet Wayback Archive), but the majority remain active.

This is a long read, because it is very detaiiled. Keep in mind a few things as you read this:

  • The process last term was fully open, and included public consultation and considerable media coverage and our neighbours in Clearview kept informed – the very opposite of this term’s secretive and deceptive privatization of our once-publicly-owned electricity utility;
  • During the process last term, the public was made aware that the town intended to sell up to but no more than 50% of the utility in order not to lose local control over rates and service. There was no public outcry or comments in the media opposed to this, no demands to sell 100%. None of the bids came in at lower than 50%. There was no opposition to the sale filed through the Ontario Energy Board (OEB) over the sale or the process, even after the winning bid of 50% was announced. This term there have been numerous complaints filed to the OEB over the sale and the secretive process;
  • No sole-sourced consultants or lawyers were hired by council last term; quite the opposite of this term where sole-source contracts have been handed out like party favours to buddies without even the pretense of an RFP;
  • Our two utilities (electricity and water) were both active and respected partners in the process; consulted, but never once harassed, confronted or bullied by the council or the administration; quite the opposite of the way they have been treated this term;
  • The goal of the sale last term was to engage a PARTNER who would work cooperatively and collaboratively with the town and the utility for the benefit of our residents, not just to grab the cash; quite the opposite of the backroom cash deal arranged this term with a for-profit, out-of-province corporation that benefits only the sole-sourced lawyer who arranged it (the same sole-sourced lawyer who was hired to provide the ‘market analysis’ and then recommended the sale of the utility);
  • The entire process, including all financials and agreements, was overseen and approved by dozens of people, including the lawyers, accountants, auditors, CAOs, clerks, treasurers, mayors, councillors, board members, CEOs, CFOs and managers of four municipalities, two utilities, KPMG, PLUS those at the Ontario Energy Board and Energy Probe. The process to privatize the utility this term was all done behind closed-door using one sole-sourced lawyer, without anything close to that level of scrutiny;
  • The administration and some council members have said publicly that they don’t have all the documents about the sale. Yet I was able to find all of this documentation with no problem. Did any of them even look? As for SPTT meetings – those were the TOWN’s responsibility, not the utility’s. If those minutes are missing, ask the clerk where they got to: it was her job to record the minutes and store them.

Continue reading “Timeline of the original Collus share sale”

Open vs secret at Collingwood Council

How two Collingwood councils handled the utility sale process very differently

SecrecyLast term, Collingwood Council went through a lengthy, open and public process to sell a portion of its electrical utility, Collus. That open process – with full discussion, community involvement, consultation and public input, and local media coverage – resulted in 50% of the utility being sold to PowerStream (an Ontario-based LDC owned by three municipalities, now merged with Alectra). The shared utility is now called Collus-PowerStream. It’s about to be sold to a private, for-profit corporation based in Alberta.

This term, our town has negotiated in secret to sell our public utility and everything has been done behind closed doors without ANY community input. Compare that to Wasaga Beach where this term’s council discussed the sale of their utility publicly many times, invited comments, conducted online and telephone surveys to get residents’ opinion, help public meetings, and in the end listened to public and chose not to sell.

Our current council has used an excessively secretive, deceptive process to avoid ALL public input so it can sell our remaining share in the utility to EPCOR. without ever once telling the public why it wanted to do so.

By comparing side by side the open process from last term and that used this term, you can see just how secretive this group has been. The closed process this term has led to several investigations, ruined reputations, bad faith, broken trust and open hostility this term (local media has not fully covered this story and the process). And make no mistake: this story is about the process, not about whether selling the utility is a good or bad decision.

But it’s not simply the sale: there has been considerable collateral damage this term, including the loss of several highly-respected and provincially decorated staff members, deteriorated staff morale,  and massive expenses incurred from council and administration interference. Not to mention we lost the golden opportunity to be part of and participate in the operation of Alectra, now Ontario’s second largest and most innovative electrical utility.

Because this is a long piece, I will publish it in two posts. Let’s start at the beginning with an overview. I’ll open in early 2011, in the middle of the previous term, and compare it to January, 2015, barely a month into the current term.

Continue reading “Open vs secret at Collingwood Council”