Tensions rising over water services: Port Colborne municipal services corp. moving forward

Between a regional report to cease conversations with Port Colborne about water and wastewater infrastructure and a crowd showing up to speak out against the proposed municipal services corporation (MSC), emotions ran high during Tuesday night’s council meeting.

Between a regional report to cease conversations with Port Colborne about water and wastewater infrastructure and a crowd showing up to speak out against the proposed municipal services corporation (MSC), emotions ran high during Tuesday night’s council meeting. With a truck parked outside City Hall digitally displaying messages such as “don’t gamble with our water” and “water is a public service,” members of the public gathered to voice their concerns about the proposed MSC. “Water is not a business opportunity,” said Fiona Barr, first vice-president of CUPE 1287, during her delegation.

The city has been considering an MSC as a way to combat issues like rising water costs and aging infrastructure that needs repairs. The intention with starting the corporation is in part to be able to address those issues outside the confines of municipality budget thresholds and funding opportunities. Describing her job as ensuring government resources are available for those who need them, Barr attended council to share concerns about how an MSC can lead to privatization, reduced quality and lack of accountability.

In her address, Barr stressed how residents deserve meaningful consultation and asked council to pause the process and commit to full consultation with residents and let them decide if it should move forward. J. Mark Rodger, a lawyer with Borden Ladner Gervais LLP who has been advising the municipality on the matter, took to the podium to quell those fears. He began by highlighting that the MSC is being formed under the Municipal Act.

“Under the Municipal Act, it prohibits these organizations from being privatized. The legislation says you cannot issue private share capital for a municipal service corporation.” He went on to say the MSC is 100 per cent municipally owned, and the city is the sole shareholder.

The city remains responsible and in control of the organization, even having the ability to revoke powers from the MSC’s board of directors and make the decisions. In that same council session, council unanimously voted to move forward with establishing the MSC — Port Colborne Public Water Ltd. Staff have also been directed to establish Port Colborne Municipal Enterprises Ltd., a holding company for current and future MSCs.

Mayor Bill Steele, Ward 3 Coun. Gary Bruno and Rodgers were made initial representatives of the board of directors for both corporations. While the municipality has been exploring the idea of having a water and wastewater MSC that takes on both municipal and regional infrastructure, it’s moving forward at this point maintaining the division of assets and two-tiered governance.

There’s ongoing friction with the Region regarding obtaining information about Region-owned water and wastewater assets. A Regional report from Tuesday morning said it would no longer participate in Port Colborne’s exploration of the MSC. Niagara Region chief administrative officer Ron Tripp reportedly said if this kind of governance change is being considered, it needs to be reviewed for all 12 municipalities, not one at a time.

The report came as a surprise to Steele and Regional Coun. Vance Badawey. The latter had heated remarks about it during council, calling this discontinuation of participation “unacceptable.”

“The city believes the Region should continue to participate constructively in Port Colborne’s review, while simultaneously undertaking its broader, Niagara-wide assessment. Simple. Very simple,” Badawey said.

Bruno agreed with Badawey and said he can’t imagine how a city like Port Colborne can document every “pipe, pump and fitting,” but the Region cannot — or perhaps won’t. He isn’t sure what the situation is. “This is simple stuff when it comes right down to it,” he said.

“And yet, this level of secrecy. We’re supposed to be partners. We’re supposed to represent the taxpayer.”

“This shouldn’t be a trade secret. It’s pipes.” Badawey said there is still hope the report will be overturned as it was deferred to the next Regional council meeting.

“You have an opportunity here to lead by example, and the City of Port Colborne is known to do that,” he said.