Utilities Commission: A Forensic audit and public enquiry must occur

Just who exactly is in control at Windsor Utilities Commission?  Presently serving on the commission’s board of directors are Councillor’s Bill Marra, Ron Jones and Ken Lewenza, Chairman.  Previously, in 2006 Dave Brister, Ken Lewenza and Ron Jones served on the commission.
According to A-Channel news coverage (transcribed below):

Resident 1:  They won’t tell us nothing about that, they won’t even talk about it.  They think we can pay it, well how are we going to get it?

Resident 2:  (I worked at) Windsor Utilities for 29 years and it’s a waste of money.  A waste of money.  I’m gonna sell my house and move out.

Reporter:  Skyrocketing water bills caused tempers to boil over at a public meeting held by the Windsor Utilities Commission.  Water bills for the average home in Windsor will be rising roughly $79 a year and sewage rates an additional $225. 

Mayor Eddie Francis was frank in explaining why that hike wasn’t gradually implemented over the past 10 years to reflect the true cost of replacing the city’s network of antiquated pipes. 

Mayor Eddie Francis:  Part of the reason that was never addressed was because of politics.  (Raises eyebrows and shrugs shoulders).  Very simple.  You don’t see the pipes.  This, between the past commission and this commission is the very first time and I know it sounds ridiculous, but it was the very first time that a study was done to effect what a proper rate would be.  In the past they just took a number out of the air and said “This is it.”

Reporter:  Back in 2004, a water main replacement levy began appearing on people’s bills.  They presumed to replace 80 year old cast-iron pipes like this one (holds up cast iron pipe).  However, it turns out that’s not where the money was going. 

Mr. Zalev:  The water main levy, which was approximately 13%  of the fixed meter charge on the water bill was being used to fund operations. 

Reporter:  The Windsor Utility Commission admits it was operating unsustainably, but says the rate hike will allow it to turn the corner and guarantees that dollars earmarked for operations and earmarked to replace pipes will remain separate. 

Mr.  Zalev:  The water main levy will pay only infrastructure and capital projects.  It will not be used for operations, it will be held in a separate bank account.

Mayor Eddie Francis:  We’re not going to play shell games.  And we’re going to go back to doing business practices in the sense that, if this is what the dollars are being established for, this is where the dollars have to go. 

Mmm, very interesting.  The Mayor claims we’re going to go back to business practices.  Except…one little question – why did councillors receive the substantial pay raise of 22% back in 2005 to ensure that this was occurring?  If you recall, on March 30, 2006, Mayor Eddie Francis stated this:

The structure of Enwin Powerlines had to be reorganized and councillors were asked to step onto the boards to provide “more public oversight to get things fixed,” Francis said. “Councillors were there for seven hours a day. We had significant problems at Enwin. It took a lot of meetings and a lot of time.”  

Councillor Zuk, at the time stated that the problems at the “utilities” have been resolved:

“…councillors’ salaries will drop this year because there won’t be as many meetings to attend, now that the problems at the utilities have been resolved.”

At the public forum Mr. Zalev stated:

Utility officials said they have to increase the water rates to replace 60 per cent of the city’s water main infrastructure and recoup the true cost of treating water. City officials hiked sewer rates to pay for the expansion of the Lou Romano Wastewater Treatment plant and infrastructure upgrades. 

But wasn’t that the reason given back in 2003, according to the January 23, 2003 edition of the Windsor Star:

The five-per-cent capital levy will appear as a separate line on water bills. The money generated by the levy — $1.2 million to $1.5 million per year — will be used for replacement and improvements to Windsor’s ailing water main system.

“We have to provide for the future,” said Wayne Miller, chief engineer of the water division.

So we were told explicitly in 2003 that the funds would be used for replacement and improvements.

Then on Saturday, it was all a big misunderstanding.  What the Mayor and Mr. Zalev stated was not true.  According to the Star:

When the utility’s books were analyzed in 2004, officials discovered the utility wasn’t spending anywhere near enough replacing water mains to keep up with its aging system. In a presentation Thursday at an open house to explain a water rate increase, Francis said that the money collected from the water main replacement levy was going into operation costs. He implied that the money wasn’t being spent on water main replacement, but it turns out, that wasn’t true. After implementing the water main replacement levy in 2003 that brought in about $3 million in revenue, the utility spent about $10 million per year replacing water mains. But it should have been spending $20 million per year, Francis said.  

So, in other words, was the WUC misappropriating $10-million per year?  Call me naiive but that is still a diversion!

We also find out that the city has no intention of collecting funds from 1,000 residents who have not been paying anything for their water or sewage service – to the tune of $3.2 million over five years.  FOR FIVE YEARS no-one realised that these ratepayers were getting a substantial freebie from the city?

What??  Does anyone know what is going on Windsor Utilities Commission?  Mr. Zalev apparently doesn’t.  The Mayor certainly doesn’t and not a word from our three councillors currently serving on the board.  Why exactly are our councillors serving on the board again?

The objective of having councillors on the Commission was to provide public oversight to make WUC accountable -  and they were paid big bucks to ensure this happened.  You mean to tell me that when the books were analysed in 2004 and councillors as well as past-chairperson Mayor Eddie Francis did nothing to rectify the problem?

I don’t buy the reasoning.  And Ken Lewenza, current chair says we’re not looking for blame.  Great – there goes ensuring accountability at the WUC.

I’m sorry, but councillors failed to protect the public interest.  Councillors failed and continue to fail to ensure that those responsible are severely reprimanded.  If this was a private corporation, the board of directors, its chair and company president would be asked to resign.

Since 2004, and with full knowledge have councillors on the board, as well as the present and past chairs knowingly overlooked this “diversion” of public dollars?

And all the Mayor can do is shrug his shoulders and say the reasons were political?

Yes – political alright – there was an upcoming municipal election – afterall, former Councillor Joyce Zuk stated the problems had been resolved, didn’t she?

This controversy deserves nothing less than a forensic audit of Windsor Utilities Commission and public enquiry.   Quite frankly, since the problems were not resolved, and the practise of diverting funds continued, all councillors should refund the $8,200 they received from sitting on the WUC board – because they were apparently asleep at the switch.

Because as the stories change, it is clear we cannot trust our elected officials to oversee operations of Windsor Utilities Commission – and Windsorites  are now paying, when they least can afford it,  for our Mayor’s and certain members of council failure to provide public oversight and accountability.

The Power of the Blog?

It would appear that after posting my blog highlighting the City of Windsor blocking access to my site from employees, it would appear city employees again have access.

According to a reader:

As of Friday morning, your blog was accessible at City Hall. Must have been a glitch ;)

Some address specific  “glitch.”