The Times Advocate, 2008-09-17, Page 66
Times -Advocate
Wednesday, September 17, 2008
Opinion Forum News
Water situation raises concerns
In a country where the demand for accountability and transparency in public bodies
is almost universal, the Bluewater council has shown how out of touch it is. At its Sept.
10 "public information" meeting in Hensall, the council and its staff stonewalled
and evaded every question raised by ratepayers about a situation which
could cost them nearly $7 million.
At the meeting called by the council to inform residents about
the arrangements for paying for the costs of the new pipeline and
water supply, we were informed that, of the total costs to
($11,270,000), the projected GreenField Ethanol plant would pay the
$6,680,000 and grants and a contribution from Hensall reserve -F'dl t pr
funds would cover $790,000.
The balance ($3,800,000) would be paid for by about 430
Hensall ratepayers through one single payment by each of $8,840
before Dec. 31, 2008, or monthly payments of $720 for the next 20
years.
Most Hensall ratepayers had agreed to the pipeline on the understanding that
GreenField Ethanol would share the costs; this was logical, since there were cheaper
alternatives available if a high volume was not required by an industrial user like
GreenField.
Since many residents have been increasingly concerned that GreenField might pull
out of the project, they naturally wanted to know how their payments would be affect-
ed if this happened, and whether the council had negotiated an agreement with
GreenField at the start of the water project, obliging the company to indemnify the
council for its share if it pulled out a later date.
There were many reasons for concern:
Until Dec. 2007, GreenField Ethanol stated in all its press releases that plants were
under construction in Johnstown, Ont. and Hensall and would be operational in 2008.
In its press release of Dec. 3, 2007, however, the company said that the Johnstown
plant would be operational in 2008, but that the Hensall plant would be operational
only in 2009. More ominously, a press release on May 28, 2008, referred to the com-
pletion of the Johnstown plant, but made no mention at all of Hensall. This was a com-
plete break with previous press releases, and raised the possibility that the Hensall
project was no longer part of GreenField's plans.
In the meantime, Hensall residents have noticed no activity at the site allocated to
the plant, and have heard that no access from Highway 4 has been granted. There has
been no announcement by GreenField of any contracts for engineering, construction,
or operation, such as those issued in January 2007 for the Johnstown, Ont. project
(which is just nearing completion now). It seems impossible that a 2009 completion
date can be met.
In the meantime, the virtues of ethanol derived from corn has been increasingly
questioned by environmental and development experts and by politicians — mainly
because of the dramatic rise in world food prices caused in part by the diversion of
corn to ethanol production. (Perhaps this is why GreenField started, in June of this
year, a $70 million project in Edmonton, Alb., to turn municipal waste into ethanol.)
An objective observer must therefore entertain the possibility that it has been impos-
sible for Bluewater council to reach an agreement with GreenField Ethanol. If the pro-
ject is dead, or even indefinitely postponed, every ratepayer in Hensall could be affect-
ed if the GreenField financial commitment died with it. Our lump -sum obligations
would increase from $8,840 to $24,372, and the monthly alternative would increase
from $720 to more than $2,000.
Naturally, many at the "public information meeting" wanted to know the status of
the negotiations with GreenField, and what would happen financially if GreenField
pulled out. Had council obtained any financial guarantees before starting the negotiat-
ing process? Who was representing Bluewater in the negotiations with this company,
which has a team of highly specialized lawyers and lobbyists, and many political
friends in Ottawa and Toronto, and which claims its top executives have had decades
of experience? After more than two years, why has there been no agreement? When
will ratepayers be informed of the status of negotiations? How would Hensall ratepay-
ers be affected if the deal did not go through?
Despite numerous attempts to obtain key information about these issues (without, of
course, disclosing sensitive details of the negotiations), the council and its staff
adamantly refused, over and over again, to provide any information if it was connect-
ed in any way with GreenField. They used the curious excuse that, since GreenField
Ethanol was a private company, council could not discuss any information about their
dealings with them. Most residents found this approach from their elected representa-
tives (i.e., employees) arrogant and unjustified. Furthermore, it fed any suspicion that
may have existed that the council had botched the negotiations, that the deal was
dead, and that council was trying to figure out a way to postpone the bad news.
I'm sure any such suspicion of incompetence is unfounded, and that work on the
ethanol project will begin soon; we all certainly hope so. If, however, I am wrong,
Hensall ratepayers may have one consolation. Since the Bluewater council dangled the
GreenField deal before Hensall ratepayers in order to get their acquiescence in the
pipeline project before any commitment was made, and since they assumed the
responsibility of negotiating with GreenField without informing the ratepayers of any
details of their objectives or progress, then the responsibility for any failure and the
consequent additional costs rests squarely on their shoulders. These costs should
therefore be shared by Bluewater as a whole, and not assumed solely by the already
overburdened citizens of Hensall.
tection. These I believe are the capital costs of the pipe and related infrastructure
needed to assure that water is available in case of a fire. Other capital costs related to
fire protection are paid for on our property tax. We pay for fire trucks and their main-
tenance on our property tax and water hydrants and their maintenance on our water
bill. Property tax uses the value of property to determine what someone pays. The
water bill uses a meter. These are substantially different ways to fund fire
protection. The current billing methods for fire protection need to be
justified.
I have identified for my own evaluation of the pricing decision the
following community outcomes:
• the pricing decision should be fair and equitable to all customers;
• the pricing decision should support conservation;
• the pricing decision should support economic development;
• the pricing decision should recover all the costs required by the
province of Ontario.
The only outcome that has been reached is that of number four.
The municipal water system is an unregulated monopoly. When utilities are
regulated and users have an opportunity to participate, the costs for the product
are allocated much differently. We need a champion in a position of influence to get
this right.
FRED SIMMONS, Exeter
Lette
l's
WILLIAM BAUER, Hensall
Rate adjustment flawed
Relief for apartment residents, but nothing for residents who use small amounts of
water and live in their own home, or multi -residential dwelling.
We now have two very similar groups — senior single people and individuals on
fixed pensions who use similar amounts of water but depending on where they live
will receive increased or decreased costs. This type of situation occurs because the
current fixed allocation is based on the assumption that every residence receives the
same benefit regardless of the size or type of home or the number of people living in it.
The apartment adjustment based on water consumption assumes that these differ-
ences exist. This is a poor way to make adjustments, as it tries to match apples to
oranges and it highlights some of the problems of using a meter as the base for cost
allocations.
Some considerations for council:
The cost of billing — These costs include the cost of the meter, bill preparation and
related office overhead. These are the only costs that directly relate to the meter.
Multi -units with one meter should only be charged once for this cost.
It has been my understanding that a large part of the fixed costs relates to fire pro -
Community made Musical Ride
a world-class event
On Thursday, Sept. 11, the community of South Huron was privileged to be the host
of the first ever "Canadians in Uniform Day".
This event saw 2,500 students, mostly in grades four to 12, attend the South Huron
Recreation Center from 9:11 a.m. to 2:30 p.m. The students were able to interact with
representatives from the RCMP, OPP, Ministry of Natural Resources, South Huron Fire
Department, Huron County Emergency Medical Services, Ornge, Canadian Armed
Forces, Canadian Coast Guard and Royal Canadian Army Cadets. The students were
able to learn about who they are and what they do. The highlight of Canadians in
Uniform Day was the RCMP Musical Ride. The general public attended after 3 p.m.
and was then able to interact with these same professionals and be treated to a sunset
performance of the Musical Ride by the RCMP
The entire Canadians in Uniform Day event was made possible through the generosi-
ty, the skills, the hard work, and talents of our local youth, businesses, and supporters
all from within the Municipality of South Huron. From accommodations, to straw, to
feed, lumber, and stable conditioning — we received it all from within our own com-
munity to provide what was needed. Support from the town was exceptional; the Ag
Building was completely emptied for the transformation into the RCMP stables. Local
businesses and individuals prepared the floor by laying down a layer of clay, followed
by shavings and straw. Students from SHDHS installed the stables on Monday and dis-
mantled them on Friday. The amount of work was enormous, but was handled with
energy and enthusiasm If you were fortunate enough to see these people work you
would have been as impressed as we were. Our very own South Huron District High
School Band also impressed the crowds with their excellent performances as the pre -
show entertainment.
The population in South Huron (10,100) did not put this event on to impress the
RCMP; we did it to impress ourselves. If you are reading this message and live or work
in South Huron you had a direct impact in this event coming to South Huron.
Our goal was for the youth of South Huron to remember forever where they first saw
the RCMP Musical Ride and all the events that took place around it. We were very for-
tunate to have had great weather and excellent interaction between our Canadians in
Uniform.
Inspector Bruce Whillans, officer in charge of the Musical Ride, commented on the
enthusiasm of the people in South Huron:
"I was extremely impressed with the inter -agency co-operation you achieved with
the armed forces, OPP, MNR, and local emergency response teams. In this financial
age, it is extremely important that we all work together to ensure a safe and secure
society. You have positively impacted the relationships. Further, the involvement of the
youth in your community (a minimum of 2,500 attended the afternoon performance)
was exceptional." The response of the audience when I asked if they are proud to be
Canadian was second to no location at which we have performed. I, and the members
of the ride, are very proud to have had the opportunity to perform here."
During the building of this event the Steering Committee was approached by many
members of the public volunteering to assist in the event. We would like to thank
everyone who helped out. If ever there was a great opportunity to feel proud of small
town Ontario, last Thursday was the day. Congratulations to South Huron. We put on a
world class event in small town Ontario.
South Huron RCMP Musical RIDE Steering Committee
Coffee Break needs your help
The Alzheimer Society of Huron County is a countywide, not for profit health organi-
zation dedicated to helping the approximate 1,100 people currently affected by
Alzheimer's disease as well as their caregivers.
Sept. 18 is National Coffee Break Day across Canada. This national fundraiser is
instrumental in securing the funds needed to keep programs and services offered by
the Alzheimer Society of Huron County right here in your community.
Last year 98 Coffee Breaks were held throughout Huron County and raised a total of
$15,000.This year we are facing a challenge as Coffee Break Hosts are down approxi-
mately 25 per cent with several of our largest supporters unable to help us this year.
Although the official date is Thurs., Sept. 18, any date is just fine to host a "Coffee
Break" event. If you are reading this and would like to help we would love to hear
from you.
Coffee Break can be as elaborate or as simple as you wish to make it. Some hosts
offer baked goods, others add Coffee Break as an addition to a regularly scheduled
monthly meeting. Some hosts have a dinner party and instead of a hostess gift guests
make a donation to the Alzheimer Society. We leave the creativity up to you. Every
new event means new people are being reached with the Alzheimer message.
If you would like to host a Coffee Break or make a donation towards Coffee Break
please call the office at 519-482-1482 or 1-800-561-5012.
Thank you in advance for your support.
THERESA WILSON
Events co-ordinator