Erin water services outsourced

Erin’s drinking water systems are under new management.

The town signed an interim agreement on June 11 with the Ontario Clean Water Agency, a crown corporation that will now deal with all aspects of local drinking water quality, delivery and infrastructure maintenance.

“As we transition with OCWA, we would like to express to residents that there will be no delay or interruptions in regular water services,” said Communications Officer Jessica Spina.

The systems in Hillsburgh and Erin village will continue to be owned by the municipality, with town council responsible for oversight.

Members of the water department staff who expressed an interest in continuing to work on the local systems as employees of OCWA have been offered positions, while others chose not to join the Ontario Public Service.

“We would like to thank the Water Department for the work and commitment to service they provided to the town and wish the individuals the best in their future endeavours,” said Spina.

On April 24, council voted to enter negotiations with OCWA, based on a bid that promised savings of more than $200,000 in a five-year deal. This will allow more money to be saved for water infrastructure improvements and offset the need for water rate increases.

 “There is tremendous savings in this, and we will be looking to them for advice on wastewater,” said Mayor Al Alls. “They were extremely pleased with the system, that it was well-run.”

Sections of the local systems are antiquated, prone to freeze-ups and leakage, and have been in need of replacement for some time. The town is searching for new well sites to meet provincial requirements for redundancy, and to support new residential and business growth.

OCWA operates water and wastewater systems for more than 180 clients. They will now share liability with the town for any problems with the water systems.

The agreement was signed by the CAO and mayor. The final contract had not been signed last week, presented to council or made available to the public. Alls expects that to happen soon.

Customers can continue to call 519-830-8600 for any after-hours drinking water emergencies. For water billing and water meter support during regular hours of operation, call Town Hall at 519-855-4407 ext. 221. 

Erin property taxes declining 1.8%

Assessment growth in other parts of Wellington County is lightening the tax burden on Erin residents, who will see an overall reduction of 1.8 per cent on their tax bills.

The total tax on a house assessed at $500,000 would decline about $100.

Council passed the tax rate bylaw on June 5, after a report by Director of Finance Ursula D’Angelo said the estimated savings (not including the impact of property value changes) would total $19.99 for each $100,000 of residential assessment. 

In December, council had considered enacting a .5 per cent decline in town taxes (which are 25.94 per cent of the total) using new assessment revenue of $282,665. Instead they put some of that money into the infrastructure reserve fund and settled on a .5 per cent increase.

That means for local purposes, the town will collect $6.6 million, with residents paying $1.42 more for each $100,000 of assessment value. That increase is more than offset by decreases in county and education taxes.

In January, the county passed their 2018 budget with an average tax increase of 2.5 per cent, but the percentage varies in each local municipality. In Erin it is a decrease of 1.94 per cent, or $12.41 for each $100,000 of assessment. The town will collect $14.2 million on behalf of Wellington County, which is 55.73 per cent of local taxes.  

Erin has had assessment value growth on existing properties and new construction. Other Wellington municipalities, however, have had even more assessment growth, so they are paying a slightly higher share of county taxes than they used to.

The Erin education tax totals $4.7 million, which is 18.33 per cent of the total. It is declining 5 per cent, or $9.00 for each $100,000 of assessment.

The proportion of property taxes paid by residential owners remains high, but it has declined from 87.7 per cent in 2017 to 87.5 in 2018. The commercial share is down slightly, but the industrial and farmland shares are up slightly.

The 2017 assessment roll shows the total value of all Town of Erin properties at $2,464,384,051. Final tax bills go out in mid-July, with final installments due on August 31 and October 31.

Water decision deserved public discussion

Erin town councillors could have shown some courtesy by at least pretending to have a public discussion about getting rid of the water department.

Instead, after a lengthy closed session on April 24 and a brief public slide show by a consultant, they voted 3-2 to negotiate a contract with the Ontario Clean Water Agency (OCWA) to take over water operations.

One of the most important decisions in the town’s history was taken without public notice, and without a public discussion of the strategy by councillors or staff.

With OCWA promising to save urban ratepayers $200,000 a year, it could be an excellent decision. It comes with risks, however, and with many ancient water pipes to replace and more wells needed, the savings could be a drop in the bucket. 

Normally, councillors and the public get a chance to consider major proposals well in advance. In this case, the matter was a single line on the agenda. The town had commissioned an independent cost-benefit analysis, comparing the existing operations to two outside bids.

Normally a consultant’s presentation is printed in the agenda, so people have at least two days to think and react. In this case there was nothing.

Normally there is a staff report analyzing the pros and cons – something that had been promised on this issue – but again there was nothing. The explanation from communications officer Jessica Spina is that a recommendation from CAO Nathan Hyde would “eliminate the objectivity” of the consultant’s report.

Water superintendent Joe Babin was not allowed to speak during or after the meeting. Maybe he has some advice for council that the public should hear.

A complex matter like outsourcing water requires discussion. When did that discussion take place? Council never saw the request for proposals that went out in February.

A section of the April 24 meeting was legitimately closed to the public for matters of labour relations, employee negotiations or litigation. Other possible exemptions for confidential information and outside negotiations were not claimed. The Municipal Act limits discussion to specified topics.

Spina said that in closed session, the consultant “provided an objective view regarding the water department’s operation”, with an “overview of the department’s financial records which included proprietary information”, and that questions were asked about the analysis “as it pertains to staffing and department finances”. 

Any new strategy might be construed as impacting labour relations. There will be grey areas, but it would be advisable (though perhaps not convenient) to deal with sensitive personnel and negotiation issues in closed session, while discussing others in public.

These would include the concept of outsourcing, water quality monitoring, response to emergencies, criteria for extra costs, dispute resolution, performance in other municipalities and the option to have OCWA manage future wastewater.

In 2016, closed meeting investigator John Maddox urged Erin to keep meetings open to the public whenever possible.

“If in doubt, you should probably err on the side of caution and stay open,” he said. Councillors must limit discussion to the announced reason for the closed session, and not “wander off-topic”.

Some councillors were clearly uncomfortable when they returned from the recent closed session, having been warned not to reveal details. Councillors Jeff Duncan and John Brennan voted against starting OCWA negotiations, with concern that the mayor and CAO would be authorized to sign the contract without council seeing it.

Coun. Matt Sammut, a vocal critic of water costs, voted Yes, but had concerns about “impacting a number of lives”. He had second thoughts about his vote, but could not change it. He said if negotiators see “holes” in the deal, it should still come back to council. Mayor Al Alls told councillors to forward concerns privately to the negotiating team.

The mayor and CAO may have got their way, but at what cost? Considering that they recently promised to improve communications with the public, the meeting was still a disaster.

Erin to outsource water operations

After years of concern about the cost of running the Erin water department, town council has finally pulled the plug – deciding to contract the job to an outside agency.

The town expects to save over $200,000 per year in a five-year deal with the Ontario Clean Water Agency (OCWA), a crown corporation that operates water and wastewater systems for more than 180 clients.

Council voted 3-2 at a special meeting April 24 to begin negotiations with OCWA. They delegated full authority to Mayor Allan Alls and CAO Nathan Hyde to sign a contract without bringing it back to council. 

Councillors John Brennan and Jeff Duncan voted against the motion. They both support contracting out, but said they wanted more information.

“Negotiations will involve a dialogue about the possibility of the Town’s water department staff transitioning into new positions,” said Communications Officer Jessica Spina. “It is anticipated that OCWA will begin operating the town’s water system by August 1st of this year.”

The town will retain ownership of the system, and hopes to use the savings to reduce future water rate increases. More money will go into reserves needed for replacing antiquated parts of the system.

In February, CAO Nathan Hyde issued a Request for Proposal, and received two bids. Town council was not involved in the process, which included hiring an independent consultant, Public Sector Digest (PSD), to compare the bids to the existing costs of running the water department (about $1 million annually).

In closed session, PSD provided council with analysis, and then gave the public an abridged version. Measured in 2018 dollars with inflation at 2 per cent, a bid from H2O Systems would save the town $347,723 over 5.5 years. The OCWA bid would save $1,112,839.

Coun. Matt Sammut asked, “Do you feel a good analysis has been done from a qualitative perspective.” Tyler Sutton and Saramad Mahbouba of PSD said their only reference was the executive summaries of the bidders themselves, who each claimed to have an excellent record of service delivery. The bids were not made public.

“The Town of Erin can expect to benefit from economies of scale and accumulated experience,” the PSD report said. The town is expecting strong technical support, reducing the need for other consultants. 

The mayor said OCWA can do the job with fewer hours and less overtime, since staff service more than one client, and that OCWA will share liability for the system.

OCWA manages 75 per cent of Ontario’s outsourced water treatment facilities, serving 4.5 million people. The agency has already made a pitch to manage Erin’s future sewer system.

Guelph-Eramosa Township used to have OCWA managing Rockwood’s water and wastewater systems, but cancelled the contract 10 years ago, citing unpredictable extra costs. Alls said he has heard positive feedback from other municipalities.

Councillors were warned not to discuss the water service bids in public, because of staff privacy and to avoid harming the town’s negotiating position. Water Superintendent Joe Babin was also barred from speaking.

“The devil is in the details – we would be derelict if we didn’t investigate further, but there are a lot of things to be fleshed out,” said Brennan. “The responsibility regarding quality is on the shoulders of council.”

Mayor Al Alls said councillors should forward any concerns privately to the negotiating team.

Duncan said the decision was “hasty”. He said bringing a tentative deal back to council in closed session would be a normal negotiation process, but the CAO said it would be unfair to OCWA and the negotiating team to have to start the process over again.

Mixed messages on Erin wastewater cost sharing

Residents who will not get wastewater service for their homes continue to get conflicting messages about whether they will have to help pay for the system.

A document from consultant Ainley Group, posted in the wastewater section of the town website, erin.ca, attempts to summarize questions from the Feb. 2 public meeting.

One question says, “I do not live in the planned wastewater service areas. Will I have to pay any of the construction or operating costs for this system?”

The Ainley answer is, “No. You will not pay anything and will benefit from having a local facility to dispose of and treat septic tank waste.”

Town council has not taken a position on this, but Mayor Allan Alls has promoted the idea that all property owners should pay for construction. The eventual local share of construction costs (after grants are received) could be $20 million.

The mayor says there is some flexibility within the Municipal Act to potentially allocate construction costs to the whole tax base. At the April 24 council meeting, he said, “I’ve been beaten down, but there’s more to go.”

Ainley President Joe Mullan said his firm’s “assumption since day one” is to have construction costs paid exclusively by serviced residents, which is normal practice in Ontario. But he said, “It’s your right to change that.”

In an earlier interview, Alls emphasized that wastewater would bring economic benefits to the entire town.

“When the Town of Erin goes out to borrow $20 million, they don’t borrow it for only a small section of people who will pay that $20 million back. You can’t do it that way. That’s not how it works in democracy.”

He suggested the issue could “bring some people out of the woodwork to run for council”.

Asked how people might react if a high tax increase was needed to cover sewer construction costs, the mayor said, “I’ll get fired.”

The Ainley document says dividing $20 million equally among the 2,672 urban lots (residential, commercial, industrial and institutional) would mean an expense per property of $7,500. The exact formula has not been decided, since costs could be allocated by various factors such as property frontage. But it is clear that sharing the construction cost with rural residents (who are the majority), plus those in unserviced urban areas, would drastically lower the cost per household. 

Ainley says the construction cost could be paid as a lump sum by homeowners, or through a loan from the town, as part of the municipal tax bill. Hook-up will be mandatory in serviced areas.

The construction cost does not include the cost of individual hook-ups, which could range from $4,000 to $8,000. This would have to be paid privately by the homeowner, to a contractor that they would have to hire themselves.

Ainley has sent individual responses to residents who submitted questions following the Feb. 2 meeting. The firm is completing an Environmental Study Report, as the Environmental Assessment (EA) wraps up. It will be open to public comment from May 14 to June 14, and the EA results can be appealed to the Minister of the Environment, as a request for a Part II Order. 

The town will be reviewing its Official Plan to identify specific areas for new housing – a step that has been delayed for several years.

The phasing of wastewater construction could follow many different scenarios, depending on planning decisions and financing.

In one scenario created by Ainley, if adequate funding is received, construction of Phase One could begin in the second half of the next council term (2020-2022). 

About 60 per cent of the Phase One capacity could service existing residents, while 40 per cent could be allocated to new development, allowing the serviced urban population to grow from about 4,500 to 8,864.

Phase Two would be entirely for new growth, and could happen about 2028-2030, eventually boosting the urban population to 14,559.

Erin dips into reserves for unbudgeted costs

The Town of Erin will use reserve funds to cover an operating deficit of $62,924 for 2017, plus an unbudgeted total of $693,388 to complete the Wastewater Environmental Assessment.

Town council agreed on April 3 to fund the deficit from the Tax Rate Stabilization Reserve, which now has a balance of $224,881. At the end of 2016, that reserve was at $383,809.

Details on the 2017 fourth quarter results were presented in a report by Director of Finance Ursula D’Angelo. It includes explanations for departments that were over or under budget by more than 10 per cent or $10,000. 

The overall operating budget is about $10.5 million. In addition, the Town had budgeted $7.6 million for capital projects in 2017, but by the end of the year had spent only $2.4 million. Council has agreed to push a list of projects forward to 2018.

D’Angelo also got council approval to cover $693,388 in outstanding costs for the Wastewater EA, to be funded equally between three reserve funds: Infrastructure, Water Lifecycle and Administration Development Charges.

The March 2016 EA contract with Ainley Group was $899,253, and the town intended at the time to budget $200,000 per year towards it for three years. That was done in 2016, and with funds brought forward from 2015, $345,865 was covered.

D’Angelo’s report indicates that no funds for the contract were allocated in the 2017 or 2018 budgets. Councillors made no comment about this, but Mayor Allan Alls said later that covering these costs from reserves was always the plan. 

Also not included in the budget or the cost of the Wastewater EA was $140,000 in management fees from Triton Engineering. When added to the Ainley obligation, the total outstanding is $693,388.

“I want to know how we missed the management fees,” said Coun. John Brennan. “Obviously that is an important part of any project, and something that we need to pay attention to as we go forward.” 

The town’s 51 reserve accounts were up by about $1 million at the end of 2017, to a total of $9.1 million, and are projected to be almost $10 million by the end of 2018.

The fourth quarter report shows the administration department 19 per cent over budget, partly because better tax collection reduced income from penalties and interest.

Administration expenses were also higher than expected by 14 per cent, with an extra $90,000 in labour costs due to staff changes, and an extra $28,000 for temporary administrative support. Insurance and deductibles were higher by $52,000 due to “ongoing corporate matters”.

The planning budget took a hit of $64,665 in legal fees for the successful defense of the Angelstone Farms zoning bylaw at an Ontario Municipal Board hearing.

Planning revenue of $18,100 was just 53 per cent of the budget projection, while labour costs were 21 per cent over budget at $37,214. On the positive side, consulting services cost only $5,600, instead of the expected $39,900.

For bylaw enforcement and crossing guards, there was an extra $5,000 for labour costs and an extra $7,982 (100 per cent over budget) for legal fees. Revenue was only $950 (43 per cent of budget).

There were many positive and negative variances in the recreation department, including an extra $103,000 in labour costs due to staff changes. Facility rental income was down by $15,000 at the Erin Community Centre due to lower activity, and revenue from baseball diamond and soccer field rentals was lower due to rain-outs. 

Council has voted in favour of doubling its general liability insurance coverage from $25 million to $50 million, for a premium increase of $1,500 annually. The full insurance contract with Jardine Lloyd Thompson Canada Inc. has an annual premium of $127,862.

Lack of trust holding town back

As the Town of Erin prepares to embark on a major expansion, it needs to deal with a chronic lack of trust between the municipal corporation and the residents it currently serves.

Of course, people know that the roads will be plowed, the water supply will remain of high quality, the ice will be ready for hockey players and the tax bills will arrive without fail. 

But most people just don’t care about how local government works, and they are under no obligation to do so. Many feel it is an out-of-control system that takes a lot of their money and only gives a little in return.

As an independent observer, I don’t think the town is out of control. Local municipal projects are often very expensive, very slow moving and highly controlled by provincial regulations and funding. 

Yes, the town should be aggressive in finding ways to be more efficient and innovative. But it also needs to do better at communicating – regaining trust and building up its image.

I spoke recently with Garland Williamson, a farm owner and businessman. He has no specific objection to construction of a wastewater system, but is concerned about the town spending millions of dollars and lacking expertise.

He wonders how the town will manage a doubling of its population if it can’t properly manage what it has now.

Often it is what people actually see when they drive around town that affects their confidence in the municipality. Williamson brings up the example of the entrance to the medical centre and Tim Hortons from the intersection on County Road 124.

The county did not want traffic coming in from that intersection, but agreed to a compromise – a sharp curve in which two cars cannot pass by in opposite directions. And the number of parking spaces is inadequate.

People don’t care how much it was the county’s fault or the town’s fault, or the fact that it was a previous council. They just know it is a municipal failure, and that they are stuck with it for a long time.

He also raises the property standards bylaw. You can drive around town and see properties with old cars and other junk out front – apparent violations of the bylaw. There are various new homes where the landscaping is not completed until years after the house construction. There have also been many complaints about improper dumping of soil fill. There’s a general feeling that nothing is being done.

Mayor Allan Alls said the Town has to pick its battles, since bylaw cases often get bogged down in expensive court battles. Just recently, council agreed to upgrade the Bylaw Enforcement Officer position from part-time to full-time on a contract basis.

CAO Nathan Hyde and the mayor acknowledged that the town has an image problem.

“We do need to communicate a lot better with the public – we need to have positive outreach with the community,” said Hyde, who has been CAO for just over a year.

He is hoping that the recent hiring of Jessica Spina as Communications and Special Projects Officer will help with that process. There will be a Citizen Engagement Charter coming out later this year, and development of a new Strategic Plan. 

He said the staff reorganization last year was designed to improve delivery of core services, and that performance standards are in place to measure how well they succeed.

“My mission is to make Erin a future-ready community, which means ready for growth and ready for investment,” he said. “That’s us being ready for wastewater down the road. Council has bought into that vision and that’s the direction we’re going.”

All of the department heads are new in the last two years, and staff are under a customer service mandate, so let’s give them a chance to deliver.

“We want the public to have over time a level of comfort in what we’re doing, because we exist to serve them,” said Hyde.

Erin council remuneration totals $120,062

Remuneration for Erin town council members totaled $120,062 in 2017, according to an annual report by Director of Finance Ursula D’Angelo.

Mayor Allan Alls received a salary of $27,000, while each of the other members received $16,200. Other benefits including employer contributions for pension and insurance premiums are valued at up to $7,018.

The Municipal Act requires the treasurer to provide an itemized statement of amounts paid to members of council and other boards.

Councillors are allowed to claim the cost of attending conferences and other expenses. The town paid expenses of totalling $1,173 for the mayor, $2,706 for John Brennan and $1,725 for Jeff Duncan. Councillors Matt Sammut and Rob Smith claimed no expenses.

Anyone considering running for council in the October 22 election should be aware of a Candidate Information Session to be held Thursday, April 12, 6:30 p.m., in Aboyne Hall at the Wellington County Museum and Archives near Fergus.

It is a free education session conducted by the Ontario Ministry of Municipal Affairs. It covers qualifications, financial obligations, candidate responsibilities and the roles of council and municipal staff.

Nominations can be filed as of May 1 and the deadline is July 27.

Tennis Club to be independent of Town

The Town of Erin is doing away with four Community Centre Recreation Boards, but is promising to do so with minimal disruption.

A financial audit advised council last fall that having independent groups such as the tennis club within the town’s structure creates an issue with oversight. A report from Clerk Dina Lundy said this could expose the town to legal liabilities and “reputational risk should there be issues with how these enterprises are managed”.

Council voted on March 6 to repeal a 1985 Erin Township bylaw that established recreation boards to operate the Erin Tennis Club (ETC) and the Ballinafad Community Centre (BCC), which are still active, and for Victoria Park and the Hillsburgh Community Centre, which are not.

The BCC is considered integral to the Parks and Recreation Department, so that board will be converted to an advisory committee. The Town of Halton Hills has agreed to increase its annual contribution to the Ballinafad centre from $500 to $5,000, and they will receive regular financial statements from Erin.

The tennis club gets no funds from the town, and membership fees are used for maintenance and a variety of programs. Unlike other sports organizations, the club operates on town property without a rental agreement, and the town holds their reserve funds.

The five courts were built and paid for by the town, which borrowed $171,000 for the project in 2002. There was a major court resurfacing in 2015, with the club paying more than half the cost.

The town will now sever its financial relationship with the club and negotiate a new agreement for use of the courts, which will also ensure public access.

ETC President Chuck Hall said there is concern about the club losing coverage under the town’s insurance, and reminded council that club members have made significant contributions of money and volunteer labour towards the facilities.

CAO Nathan Hyde said the club could be allowed to continue temporarily on town insurance, and that staff will work with them “to make the transition as seamless as possible”.

Mayor Al Alls said, “We won’t leave you stranded.”

Dina Lundy no longer Erin clerk

Clerk Dina Lundy is the latest senior staff member to leave the employment of the Town of Erin.

The town’s policy on personnel matters does not allow the release of further information, but Mayor Allan Alls said Lundy was a loyal employee who will be missed.

“The change is not related to any further restructuring by/within the Town,” said Chief Administrative Officer Nathan Hyde. “We wish Dina the best of luck with her future endeavours.”

Virtually all of the Erin department heads, and several other employees, have left for various reasons in the last two years.

Lundy worked in the town’s finance department from 2010 to 2013, and then was appointed clerk after previous clerk Kathryn Ironmonger became CAO.

In an unrelated move, Hyde recently had town council appoint him as the town’s second deputy clerk. 

He said it was a precautionary housekeeping measure commonly used by municipalities to provide redundancy, since clerks have specific legal duties related to elections. The existing deputy clerk is Lisa Campion.

Erin gets a new fire chief

After a lengthy recruitment process, Jim Sawkins has been hired as the new head of Erin Fire and Emergency Services, replacing Dan Callaghan who retired in December.

Town council confirmed the appointment in a closed session on Feb. 20, and Sawkins will start on March 12.

“I am pleased to welcome James to the town to fill this important role,” said Erin Mayor Allan Alls. “He will add value to our efforts to move the community forward and ensure that our Fire & Emergency Services are future ready.”

Erin’s new chief has broad experience, including 20 years as a military firefighter, but has been at the centre of controversy in two communities.

He recently stepped down after serving as Director of Protective Services and Fire Chief since 2011 in the Town of Inuvik in the Northwest Territories. The community of 3,200 is located on the Dempster Highway in the Mackenzie River Delta, close to the Beaufort Sea.

Sawkins was the focus of CBC coverage last fall, with some firefighters in the 40-person department complaining about his leadership. One firefighter resigned after a personal dispute. There were also complaints about firefighters’ requests for additional training being denied.

Another resigned after a house fire in October that was initially extinguished, but reignited a few hours later, destroying the structure. The Northwest Territories Fire Marshall said there wasn’t enough evidence remaining to say why the fire reignited.

Reached by phone in Inuvik, Sawkins said there were “a handful of disgruntled firefighters” who disagreed with some of his management decisions, and that it was a “complex situation”.

“I was brought in to do a job – to build up the fire department,” he said. “I’ve done everything I could do there.”

He said was leaving the town on mutually agreeable terms, and that he was interested in moving back to Ontario to be closer to family members.

Regarding the fire that reignited, he said, “the fire was out when we left”, and that it was not a factor in him leaving the job.

“I’m looking forward to being part of the Erin team and meeting the firefighters,” he said.

Sawkins previously served as fire chief in both the Township of Muskoka Lakes (175 volunteer firefighters), and the Township of Tiny (86 volunteers). He also worked in fire services with the Canadian Forces, as a fire chief and senior instructor.

After almost six years with Muskoka Lakes, he was fired by the township council in 2010, sparking protests and some resignations by volunteer firefighters. They wanted council to reinstate the fire chief and fire the chief administrative officer instead.

Councillors stuck to their original decision, saying it was a routine issue, relating to communication and a new management direction for the department.

The fire chief’s termination came just weeks after more than 20 firefighters staged a protest at the township office in Port Carling. They used municipal fire trucks to block off access to the building. Some complained of budget cuts to the fire department and a lack of respect from council.

In a letter distributed to district fire chiefs and obtained by the Huntsville Forester newspaper, Sawkins asked firefighters not to put the public at risk. He considered running for mayor of Muskoka Lakes, but did not do so.

Sawkins is a Member of the Canadian Association of Fire Chief’s National Advisory Council, Member of the National Fire Protection Association, and past President of the Northwest Territories Fire Chief’s Association.

Town looks at contracting out water services

Erin is inviting companies to submit proposals to take over operation of the town’s drinking water systems, even though town council has not made a decision to proceed with such a change.

“This will answer once and for all – do we do it the most economical way?” said Mayor Al Alls. “I thought it was a good idea.”

CAO Nathan Hyde took the initiative in consultation with the mayor, but did not bring the matter before town council. There is no cost to the Request for Proposal (RFP) process and no commitment to actually contract out the functions of the water department.

Bidders must submit proposals by Feb. 28, with a full public report to be provided for town council in April. If council accepts a proposal, the transition could start immediately.

 “It is an opportunity for council to review all options for operating the water systems in an efficient and effective manner, so that rate payers are satisfied that they are getting value for the services being provided,” says an information sheet published with the RFP at erin.ca.

“Council and the public have previously raised questions relating to the cost of water services, and it is staff’s job to ensure that we are delivering these services at an optimum price, while planning for future infrastructure replacement costs.”

The RFP will help the town decide whether to keep the water system in-house or negotiate an external partnership. The water infrastructure would continue to be publicly owned.

The mayor said that an external provider could potentially be involved in providing or securing funding for water infrastructure, and could be considered for management of the wastewater system once it is built.

 “Cost is an important factor in this competition but it will not be the sole determining factor,” says the RFP.

In 2015, council set the water rate at $3.99 per cubic metre, for a five-year period. This was a reduction from the previous rate of $4.29, but it is still considered high, the result of five earlier years of 20 per cent annual increases (2009-2013).

The Town of Erin has four main wells, 33 km of watermain, 194 fire hydrants and 1,300 services, plus a water tower and other reservoirs. There are two main drinking water systems serving Erin village and part of Hillsburgh, plus small systems for the Municipal Office, Ballinafad Hall, Barbour Field and the Hillsburgh Fire Hall.

An outside company would have to provide 24/7 operational coverage, including full compliance with government regulations, emergency response, water meter and valve inspections, and all equipment repairs and maintenance. The RFP proposes a five-year contract. The company would become the project manager for capital projects.

Information from the 2018 budget process shows the annual operating expenditures of the water department at $1.5 million, with capital projects this year expected to cost $123,000. Reserves total about $2.2 million, intended for upkeep of the system. The department is funded by the actual water users in Hillsburgh and Erin village.

The town is currently conducting an Environmental Assessment, attempting to find suitable locations for new wells that would back up existing sources and provide support for new growth.

Town still won’t release termination costs

Mayor Al Alls says the Town of Erin is justified in not releasing the total of severance payments to terminated municipal employees over a five-year period.

“We’re doing it for legitimate reasons, to protect the privacy of individuals,” said Alls. The town is also concerned that the information could harm their position in legal proceedings, resulting in a cost.

Local media have requested the combined severance payments from January 2012 to August 2017, arguing that the release would not enable members of the public to know how much was paid to any individual former employee.

The town has received legal advice and decided not to release the figure, even though the County of Wellington and all other lower tier municipalities have been willing to do so. The issue has been appealed to the Ontario Privacy Commissioner.

Alls said that the town would only release the information if the commissioner orders it to do so.

There has been a major town staff turnover in recent years, including most senior managers. Some employees have been terminated, but some have left under other circumstances such as retirement. So not all would be normally entitled to a severance payment.

In a letter, resident Jane Vandervliet complained about how difficult it has been to get staff cost information from the town, or to get an enquiry about budgeting for severances onto the council agenda.

“Surely taxpayers have a right to know what such personnel upheavals are costing them,” she said.

“Isn't the Council the go-to place for taxpayers to direct such concerns?

“Last June I had attempted to get the Town of Erin to give me the severance totals for the past five years. I gave up as their buffaloing tactics worked. The reason I wanted the severance totals was so that I would be able to monitor the Town budget for employee wages and benefit totals.

“These assumed severance payouts, with the departure of so many long-term employees, would be extremely significant to a low population municipality like Erin.”