A local grassroots group is urging citizens to pack the council chambers of City Hall Monday night to “raise their voice” against a possible appeal of an Ontario Energy Board (OEB) decision that recently quashed a deal to sell part of Orillia’s utility to Hydro One.
“The main thing is to come out and use your voice, ask questions and let us know what your concerns are,” said Coun. Sarah Valiquette-Thompson who, along with fellow councillors Rob Kloostra and Mason Ainsworth, are supporting Monday night’s rally. “We should be listening to people, guiding them through this process ... that’s what we’re here for.”
The three city councillors were opposed to the deal with Hydro One.
The city was approached by Hydro One in 2015 and agreed to sell the distribution arm of Orillia Power for $26.35 million, which officials estimated was double its value. As part of the deal, Hydro One agreed to assume the $10 million in debt Orillia Power had amassed and said it would protect the 36 affected jobs – for one year. There was also rate certainty for 10 years.
As part of the pact, Hydro One agreed to purchase up to 36 acres at the Horne Business Park and, pending OEB approval, build an integrated systems operation centre. Hydro One said two other buildings – a warehouse and regional operation centre – would be built there regardless of the outcome of negotiations.
The OEB, in its 23-page decision, said, in essence, the deal did not pass its no-harm test and would have led, over time, to higher rates for Orillia’s electricity customers.
In the wake of the surprising OEB decision, Mayor Steve Clarke said the city would review its options. “From my perspective, it’s fair to say, it’s not over,” he said.
On Monday night, Orillia CAO Gayle Jackson revealed about $1 million has been spent in legal fees related to the deal to this point.
The trio of city councillors – and many in the community – say it’s time to walk away from the deal and stop “wasting” money on more legal fees. Part of Monday night’s 'It is over!' rally includes a call to ‘Stop the OEB appeal.’
But Valiquette-Thompson is worried that may not be possible. She points to one sentence in a 50-page ‘Definitive Agreements’ document that she thinks means the city’s future path is already set: “Each of the purchaser and the vendor shall use their best efforts (which shall not be less than commercially reasonable efforts) to cooperate and assist the other, so that the required approval can be obtained as soon as reasonably possible, and in any event prior to the closing date."
“Basically, it says the City of Orillia should use its best efforts to close this deal,” she said. “A few of us on council are a little perturbed it’s not spelled out more clearly. But to some members of council, we think it means we already have our course drawn out for us … they would argue that an appeal is pretty much enshrined in that document.”
With that in mind, she questions why city staff and the mayor haven’t been more “up front” about that.
“The mayor said we’re looking at next steps and options … Why are we telling the public that? It’s not true,” she claimed. “Let’s just start telling the public what this OEB decision means.”
She hopes a packed council chamber Monday night might help sway the opinion of some councillors.
“If there’s a big turnout, at least we could get council to turn their minds to have a public open house or town hall meetings,” said Valiquette-Thompson. “From the very beginning, I think we have done a very lackluster job of involving the public. The one public forum we had … was kind of disorganized.”
City council’s regular meeting starts at 7 p.m. Monday night. Valiquette-Thompson hopes citizens will be out in full force – and stick around to the end of the meeting. At the conclusion of each council meeting, there is an opportunity for citizens to express concerns.
“I’m hoping to get people out, to hear them and there’s some things at the council table a few of us could do to get council to reconsider and, perhaps, to plot a new course,” said Valiquette-Thompson.
She noted that at a special meeting last week, she tried, unsuccessfully, to get her colleagues’ approval to obtain another legal opinion about their obligations that seem to be enshrined in previous documents. At that meeting, Coun. Jeff Clark was absent.
“At the very least, (I hope) we can get council to reconsider and get another legal opinion to shed light on what we have to do given this OEB decision … that would help,” she said.
She said OEB officials told her an appeal could last four to seven months. Depending on the outcome of that appeal, the matter could then go to Divisional Court, she said.
“At the very least, at the council table, maybe we could crystallize that course of action,” she said. For example, she said council could decide to appeal to the OEB but then “say that’s enough.”
Any citizen can speak at the conclusion of Monday night’s meeting. They must provide their name and address. City councillors, by virtue of their rules, are not allowed to answer questions or engage in debate. The citizens’ comments are recorded and become part of the official record of proceedings.
