$9,150

That's the amount that Mayor Francis, Chairman of the Windsor Tunnel Commission, receives as salary to sit on the Commission. Is he overpaid?

Tell me if you still want a "publicly-owned" new bridge after reading about the Tunnel's toll machinations over the last 2 years and the losses of revenue that have been suffered. Compare the Windsor taxpayer-supported WTC's manner of doing business with that of private enterprise!

Back in March, 2005, Eddie, when discussing a toll increase, said:

• "he would prefer a toll increase to be accompanied by some form of added value for the tunnel user.
  
  He said $13 million worth of ventilation system upgrades is not something the average commuter will notice "and improving traffic flow is largely a product of U.S. and Canadian customs and is largely out of our hands."

There was no increase in 2005. I'll tell you why later even though Councillor David Cassivi who is also on the WTC stated at the time "painful as it may be to consider, we may have to look at a rate increase because it is a business and it is losing revenue."

The Mayor stated in March, 2005 "The general consensus was that until there is a comprehensive plan to improve service, we're not going to proceed with an increase...The last thing we want to do is scare people away."

Windsor kept its rate low at $3.50 while DCTC on the Detroit side increased tolls to $4.75 in January, 2005 [Note the "private" Bridge Co.'s combined toll is less than the "public" Tunnel for all of you publicly-owned crossing supporters. It made its exchange rate adjustment some time ago too]

Over a year later, the Tunnel toll is finally increased. And quite an increase it is too:

1. Single trip rates increase from $3.50 Cdn to $4 (14.3% increase) and from $2.50 US to $3.50 (40% increase)
2. 50 per cent hike in the US rate for a roll of tokens from $40 to $60. The Canadian price for tokens will also go up from $60 to $70 (a 17 per cent increase)
   
   

Part of it is due to the high-flying Loonie. Don't you just "Love this Place." Eddie's sloganeerers are at it again, calling it the "Fair Currency Exchange Rate Policy." In reality, it is old news that no one acted upon although warned about it a year before ("Commission members were told that toll revenues in 2004 fell $1.6 million from 2003 mainly because of a 10.7 per cent reduction in overall traffic and a substantial strengthening of the Canadian dollar in relation to its U.S. counterpart."

What was the main reason to increase the tolls? Was there a "comprehensive plan to improve service." Nope it was all financial:

1. $30-million Tunnel Plaza expansion is looming
2. The tunnel commission is also facing costs from the $20-million replacement of the tunnel's ventilation system which is near completion. (In June,2005 we learned that "A $13-million renovation project at the Windsor-Detroit tunnel is six months behind schedule and facing major cost overruns because of structural problems, says a report to the Windsor tunnel commission)

Of course that is only partially true. We are being fed another line from City Hall. And by the way, note that the cost increased by another $7 million. But the Tunnel Ventilation Building did get the heritage designation recently. Surely, they will not dare call this financing for the Tunnel "bridge financing" again. (sorry, could not resist the pun)

So was there a "value-add?" in 2006 that there wasn't in 2005? NO, since the issues are still ventilation and movement of vehicles.

Will people be "scared away" in 2006 by the toll increase since there was that fear in 2005. NO, since the Mayor now tells us when "Asked about fears the rate hike could hurt business, Francis countered there hasn't been a noticeable increase in traffic numbers despite the Windsor side of the tunnel providing the cheapest cross-border tolls at either the bridge or tunnel in recent years."

It is obvious that an economic case was made in 2005 for a toll increase (revenues going down, known ventilation building expenditures that increased by $7 million, strength of Canadian dollar) but for some reason that now does not hold water, WTC did not make one. Let's try and guess why.

Remember back in March, 2004, Eddie signed the Phase 1 Border deal with the Senior Levels that surprisingly included "Improvements to the Windsor-Detroit Tunnel Plaza in order to provide for more effective traffic management." That was the beginning of Eddie's PLAN to take over ownership of the Tunnel from Detroit and to then lease it out on a long-term deal or operate it. It was going to be a big money-maker for us. Of course that Plan was hidden from taxpayers and only appeared when the infamous Council Agenda Item #5 saw the light of day. When citizens opposed it, the Plan was taken off the table or else Eddie could not have moved forward!

If the Tunnel was going to be financed, then the last thing Eddie needed was possible financing sources being concerned that there was a problem and seeing traffic decreased by the increased tolls. He needed instead, to see traffic increase dramatically so he gambled that low toll prices would bring more business to the Tunnel and to the Duty Free Shop too. (The City gets a percentage from there too). His big gamble did not work as he admitted "there hasn't been a noticeable increase in traffic numbers."

To be blunt about it, do you remember when I described the Windsor Mayors having an inherent conflict as WTC Chair and Windsor Mayor [BLOG October 25, 2005 Windsor Mayors' Conflict Of Interest]. Here is a classic example of the problem that I identified in these terms:

• "In other words, is there an inherent Conflict of Interest built in when the Mayor and Councillors are both a Tunnel Commission Chair or member and when they are also a member of City Council. On the one hand the Mayor can say from a Windsor-wide perspective : "We see the tunnel as a public utility while the DCTC sees it more as a profit-generating private operation." On the other hand when the Bridge takes away Tunnel traffic, he says as a true competitor "our traffic has gone to the bridge and we have to do a better job of convincing people that the tunnel should be their crossing of choice."

In this case, Eddie's ambition to be a Border Operator coloured his vision to ensure that the Tunnel operated in the best interests of taxpayers. Councillor Cassivi saw the issue properly but the Mayor had his Grand Plan. He tried to become "Entrepreneur of the Year" but this time he did not play with his money but that of Windsor taxpayers. He jumped on the bandwagon of the privatization of high-profile public works projects. When his Plan did not work out, we as taxpayers lost almost 15 months worth of increased toll revenues!

Eddie's PLAN did not succeed for a variety of reasons, the main one being his competition. He underestimated them completely and they beat him soundly. That, after all, was the reason for the Joint Councils meeting wasn't it? He tried to end-run his competition by going directly to the Detroit Council for support but instead his lack of action in building the road to the border became the Number 1 Border issue stumbling block.

If WTC was a private corporation, the Board of Directors would have to consider seriously whether the Chair should still keep his job after this fiasco. Aren't WTC Board members in that position now?

Taxpayers also need to consider whether the Mayor should remain in his job as well after Tunnel revenues have been lost. More importantly, I am tired of the numbers games the Mayor is playing. While it is true that $30 million MAY be spent on the Tunnel Plaza (while in reality, to solve the problem only should cost a few million BLOG May 04, 2006 Paving Paradise To Put Up A Tunnel Parking Lot) only $10 million of that comes from the City. The other $20 million comes from the Senior Levels as Eddie well knows! So much for that as justification for the increase.

Where have our Councillors been as this financial bleeding has been taking place? Why haven't they been asking the multi-million dollar questions instead of just worrying over cutting $1,000 for Tylenol pills for seniors at Huron Lodge. Isn't Councillor Budget on the WTC too? As taxpayers and as owners of the Tunnel, Windsorites deserve better!