Tomorrow, Wednesday, July 15, the EPC (Executive Policy Committee) will be meeting at City Hall to vote on creating a Municipal Corporate Utility.

From http://winnipeg.ca/CLKDMIS/ViewDoc.asp?DocId=9382&SectionId=&InitUrl

The public is invited to present their views at this event. Each person can have up to 10 minutes to speak. There is no limit as to how many people can present.

To register to speak, call 986-3732.

We need as may people as possible to present at this meeting and to request a MOTION FOR DEFERAL. If enough people present, we will have a chance at having the decision on a MCU deferred.

This will also delay the decision on a strategic partner as the city

needs to set up an arms-length business corporation (the MCU) in order to be able to be able to bring in a *strategic partner* (private company) to manage and finance our water waste services.

We also need as many people as possible to be at City Hall on July 22 to fill the galleries if they vote on the strategic partner.

Points to speak on at the July 15th meeting:

A. Everyone should request a deferral because:
*The public consultation was not adequate.
*The public consultation happened before the actual plan was
released.
*The public needs to be informed and their questions answered
before the city votes.
*City Council is pushing this through in July while people
are at the lake. They return form the lake to find that there is a MCU and private company in place.

B. Problems with the model that the city is proposing:

The MCU creates a shell under which the strategic partner can be
brought in to manage and finance our waste water services. Yes, the shell (the MCU) will be 100% owned by the city (water services) and can never be sold, BUT the waste water services will not be 100% controlled by the city. According to the city*s Municipal Utility Business Plan (http://www.winnipeg.ca/interhom/utility/ReportToCouncil.pdf ), the city will hold 51% of stakes in the water waste, the private company, 49%. (http://waverleywest.blogspot.com/)

This means that:
*There will be a loss of transparency because private
companies do not have to reveal their financial information to the
public.
*The board of the MCU will be made up of business executives,
engineers, and water specialists, not city elected city councilors.
*Loss of control: City Council*s input will be all or
nothing. They will be able to reject or accept the entire slate of board members, but no individual members. They will be able to approve or reject the whole budget proposed by the board, but not approve only parts of it. This gives the private sector great control.
http://jennygerbasi.ca/?p=377
*The city will lose its ability to plan for the future. It
will have to ask someone else (the private company) to go along with plans before it proceeds.
*The water utility system we have now is not transparent, but
it is accountable. The system proposed will not be accountable. There will be nothing I can do once the Public Utility Board sets water rates.
*There are hidden costs when dealing with a private company
(ex, legal fees): http://www.winnipeg.ca/finance/findata/matmgt/documents//2009/173-2009//173-2009_Bid_Opportunity.pdf

*Having a for-profit company violates citizens* rights to water
(ie, community control of water).
*The P3 model for water services as proposed by the MCU is the
model that city council will use for other services, such as bio-fuels, energy, and garbage.
*Sale of water to bedroom communities: Winnipeggers will not enjoy all the profits as some will go to the MCU, and some to the private partner.
*The city has spent $1.25 million exploring the possibility of a
private partner including their $250,000 promotional campaign which they tried to pass off as *public consultation*.
*We would have to pay GST and PST on our water bills should a
private company be brought in as a partner.

C. Good questions that need answering:
* What is the city*s definition of privatization? P3s are a form of privatization and create less transparency and accountability.
Even the city*s own MCU report states that the current system works exceedingly well.
* Why is the city setting up a MCU and seeking a private
partner when the Deloite and Touche report states that there is nothing wrong with the services we have now?
* Why does the city not hire experts directly instead of
bringing in a private company?
* What is the city*s relationship with the private
partner?
* Why are private companies so interested in becoming our
private partner when the city is proposing in its plan that the private company assume risks with no reward (financial risks, no ownership of building or of water, can*t set rates)?

* How does City Hall arrive at the conclusion that it does not have the management skills to run new plant? It needs to provide proof that it does not have yet.
D. Examples were P3s have not worked:
* Moncton and Sackville: water run by U.S. filter, a subsidiary of Veolia: rate hikes and 24% return for investors
* Hamilton: sewage spill: private company refused to
accept liability for spill. Hamilton left with big bill.
* Edmonton water and waste water under MCU: loss of transparency and accountability.

E. More information on water and P3s:

* http://cupe.ca/water/atlantic-water-tour

* City of Winnipeg proposal for MCU and private partner:

http://www.publicvalues.ca/ViewArticle.cfm?Ref=00283

http://www.policyalternatives.ca/~ASSETS/DOCUMENT/Manitoba_Pubs/2008/Regional_Water_Utility.pdf

http://www.policyalternatives.ca/~ASSETS/DOCUMENT/Manitoba_Pubs/2009/FF_Water_Privatization_29_01_09.pdf

Yours truly,
Dr. Mary LeMaître, Development & Peace Chair, Archdiocese of Winnipeg and Water Watch