WATERMAIN-GATE: Who Will Survive The Investigation
Think of it...the actions of the Mayor and four sitting Councillors, amongst others, will be under review by an investigation undertaken by the Province of Ontario. What if the report is a damning one. What happens next?
I will tell you what Councillor Halberstadt has written about below but another news story has shaken again the WUC story we have been told to date and necessitates a full investigation and all questions answered!
You remember from A-Channel news the Mayor's explanation blaming the past for how they determined what the water rates should be and why we are having the big increase today:
- "In the past, they just picked the number out of the air and that was it."
(Here it is if you want to see it http://windsormunicipal.blogspot.com/2007/07/secrecy-becoming-hallmark-of-francis.html
As I have tried to show over the past few days after reviewing WUC documents, that comment does not seem to hold much water given the very thorough 2002 WUC Report and the levy action following. To me, what happened starting in 2004 needs close examination as well.
Now based on the Star story today, who picked numbers out of the air for the huge increase!
- "More WUC hikes on horizon
The WUC board increased water rates in May, but didn't have the Watson report to use as a guide. WUC chief operating officer John Wladarski said administrators had preliminary information from consultants to aid them in proposing the 87 per cent rate increase that took effect Aug. 1.
"Even though we didn't have this draft report, Watson confirmed the decision WUC made was well within what Watson was going to bring to us," Wladarski said."
Here is some more interesting data according to the Star:
- "According to the Watson report, the yearly average water bill jumped to $406 from $219 -- an 86 per cent increase. But a May WUC report had different data. It said the annual average water bill would increase from "$219 in 2006 to $298 in 2007," a 36 per cent increase."
So WUC did not wait for a few more months to get the Consultants' Report but picked a number out of the air although it was a well-educated one it seems. Why couldn't they wait? Did they consider the alternatives mentioned at the Council meeting about how to pay for the increases or did they just increase the rates much higher than they thought in May? If the rates were to be increased, why not increase them at 36% and warn people that once the Report came in, the amount could be increased dramatically? Or why not try and increase over a short period of time by staged increases?
Of course, when the WUC number went up so dramatically, the sewer surcharge number did too and that surcharge is under Council control as the Mayor told us so many times at Council too. That sewer surcharge increase blame was pointed directly by Eddie at the Councillors who are to take the blame for it aren't they? Not the Mayor! He can never be blamed for anything that goes wrong.
Back to Councillor Halberstadt. He said on his BLOG, correctly, that the main issue is:
- "It is becoming clear that the key to the provincial municipal audit of the Windsor Utilities Commission will be how the terms of reference are framed, narrowly or broadly...
Who knew what when? This is the question that is emerging surrounding the dramatic 83-percent water rate increase on August 1st. The present WUC regime, which has been at the helm for almost four years, has blamed the old regime.
Ontario Auditor General Jim McCarter told me (if he did the audit) that he would request a list of issues or concerns from the municipality. Once he went in he would have free rein to look under all stones."
Frankly, I am shocked that the Mayor called the Auditor General directly as he said at Council. I would have thought that this was a job for Administration, perhaps the CAO or the City Solicitor, not the Mayor. I am shocked as well that the Auditor General even accepted the call from the Mayor in the circumstances since the Mayor's actions might have had to reviewed by his Office! Perhaps the Auditor General was unaware of the situation or else his position may now be compromised too.
To make life easier for everyone at the next Council meeting where Councillor Halberstadt's Motion is to be heard (assuming that no more procedural tricks will be played and that the Councillor will actually get a seconder), here is what a proposed Motion that is already circulating should say:
- WHEREAS serious concerns have been raised about the finances and operations of the Windsor Utilities Commission,
WHEREAS the water main levy funds were intended to be used for capital, but may have been spent instead to fund operations in violation of the specific directions of the WUC Commissioners
WHEREAS the estimated replacement value of water mains and other system requirements is $830 million
WHEREAS one thousand or more customers of WUC may have received water but not paid any charges for the water and other fees for a number of years, and
WHEREAS the unprecedented WUC financial demands are causing severe hardship to citizens/taxpayers in Windsor
NOW THEREFORE BE IT RESOLVED THAT
1) Council hereby requests that the Ministry of Municipal Affairs & Housing, pursuant to the Municipal Affairs Act of Ontario, conduct:
a. A Provincial, Municipal Audit of the financial affairs of the Windsor Utilities Commission
b. An inquiry into the business practices and affairs of the Windsor Utilities Commission
2) Council also requests that Sandra Pupatello, Minister of Minister of Economic Development and Trade and Minister Responsible for Women’s Issues and Dwight Duncan Minister of Energy and Chair of Cabinet request that the Office of the Auditor General of Ontario undertake a special assignment and perform a “value-for-money” audit of the WUC.
3) The Ministry and the Auditor General shall be requested to investigate and report publicly to the citizens of Windsor on the questions raised into the financial affairs, and business practices and affairs of the Windsor Utilities Commission including but not limited to:
1. What are the facts involving the watermains and costs of replacement
2. What are the costs of replacement or repair since they have escalated to over a half a billion dollars
3. Were numbers picked "out of the air" by the previous WUC Administration or did they exercise sound judgment in what they were doing
4. Why were rates kept as low they were and not increased to cover capital and operating costs
5. Why was debt paid off at a time when watermains needed replacement
6. What role did "politics play in the decision-making
7. Was water levy money diverted from the capital account to the operating account in violation of the Commissioners' express directions
8. What is the true financial position of WUC today
9. Did KPMG spot the diversion and what did they do about it
10. Do the WUC Financials have to be restated
11. The Investigator must name names and tell us who should be praised and who ought to be condemned
12. What are the facts about the 1,000 or more customers who have not been charged for their water and what steps have been made to collect funds, in particular, how did this happen and how was the loss discovered
13. Has there been an attempt made to "cover-up" this matter and to attempt to fool citizens. If so, who was involved
14. Did the WUC Commissioners carry out their function in a proper fashion both with respect to oversight of the WUC and with respect to the issues now causing such concern in the City
4) The investigators shall make recommendations that they consider advisable based on the factual findings to prevent mismanagement in the future
5) The investigators be authorized to adopt any procedures and methods that they may consider expedient for the proper conduct of the investigation including taking evidence under oath
6) The investigators shall be requested to submit their reports to the Windsor public, on an urgent basis, as soon as reasonably possible.
posted by JoeBlog at 12:15 p.m.
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