ELORA – Centre Wellington council held a four-hour marathon meeting on May 4, during which accusations flew and apologies were demanded – but none were given.
The dramatic meeting opened with Mayor Kelly Linton explaining why he ruled two proposed motions out of order at council’s April 6 meeting.
He explained that since that meeting, emails have been circulating between some councillors, township staff, local bloggers, media and individuals in the community – emails that contain misinformation, and “content that crosses the line.”
Linton invited each councillor to speak their minds on the matter.
Councillors Stephen Kitras and Bob Foster, who proposed the motions in question on April 6, remained wedded to their belief that council should not have given emergency powers to the CAO and council should be meeting more frequently instead.
Other councillors defended staff members they felt were unfairly criticized in the emails, which were not in the council package.
“This is frustrating and distracting,” said councillor Ian MacRae. “We need to park the political agenda and focus on the emergency.”
Council did finally turn its attention to the agenda, which included a financial and operational update from CAO Andy Goldie and managing director of corporate services Dan Wilson, on matters that have transpired since a state of emergency was declared on March 17.
Wilson said so far, the township has cut costs in order to absorb the lost revenue resulting from closing public facilities and programs, and waiving penalties on late taxes. The biggest cost-cutting measure has been to delay any new hires, including seasonal and part-time staff. Wilson said it isn’t necessary to re-open the 2020 budget.
He said staff is reviewing the capital projects in the budget and dividing them into projects that can proceed as planned, those that are delayed for cash flow or staffing reasons, and those that should be put on hold.
Wilson said the township has a “healthy” reserve balance and can borrow up to $18 million if necessary.
“As of today, cash flow is looking pretty good,” he said.
Looking at the financial impact of COVID-19 into 2021, Wilson said officials expect proceeds from the OLG casino to decline and there are big question marks around the collection of future property taxes, development charges and federal and provincial funding.
Reduced interest rates are favourable in terms of borrowing, he said, but unfavourable on investments.
The report recommended putting the 2019 operating surplus of $783,130 into a new COVID-19 reserve fund, and using that reserve to fund any net tax supported operating shortfall in 2020.
Wilson said the forecast is based on re-opening township facilities on July 3.
Foster said staff did not look far enough into the summer. He said with losing rentals from lacrosse and festivals, “the loss will be greater than $700,000.”
Goldie acknowledged that if facility closures extend beyond the summer, the lost revenue “will be significant.”
Councillor Kirk McElwain introduced a motion to defer a decision on what to do with the surplus until council, as committee of the whole, could discuss the budget in detail.
“I don’t think we’re ready for this yet,” he said.
When questioned, Wilson said staff is preparing the 2020 interim tax bylaw, to be discussed at the next council meeting, and deferring this motion would delay tax bills.
McElwain’s motion to defer was defeated 4-3 with Foster, McElwain and Kitras voting in favour.
MacRae then introduced a motion to see if Nestlé Waters Canada would consider selling the Middlebrook well.
After private discussion with the CAO, Linton called the motion out of order, saying while there’s a moratorium on water-taking permits, and for legal reasons, there can be no discussion at council on the future of the well.
“So it has to go on the back burner,” Linton said.
The discussion, which returned to Wilson’s financial report, then got heated.
Foster said the financial accounting, “shows how unprepared we are to manage our finances during a pandemic.” He later added, “This is a recipe for bankruptcy. We should leave the surplus in the reserve.”
“Councillor Foster, fear-mongering in the middle of a crisis is incompetent. We are not anywhere near bankruptcy,” countered councillor Neil Dunsmore.
Kitras said he had problems with establishing a COVID-19 reserve fund.
“There’s not enough information here. This is just a blank cheque,” he said.
“We are just parking this money,” said councillor MacRae. “Council has the ability to move this money around.”
“We will only use what we need to use in this reserve,” said Linton. “If it is not required, we can use it on other operations.”
The motion finally passed 4-3 with Linton, MacRae, Neil Dunsmore and Steven Van Leeuwen voting in favour.
Natural Gas in Belwood
Goldie told council Enbridge Gas is interested in expanding service to Belwood and needs council approval to begin to apply for a provincial grant.
Council unanimously supported the project.
Granwood Gate Park Development Agreement
Council also unanimously passed a bylaw allowing the township to enter an agreement with Wrighthaven Homes Ltd. The developer wants to donate land for the Granwood Gate Park and pay to develop the Elora park.
O’Brien Park
Council awarded an RFP to develop O’Brien Park in Elora to Yard Weisels Inc.
Foster was the only councillor opposed.
“I like the idea of investing in parks,” Foster said. “I’m opposed only because we should not be paying for this right now.”
Scotland Street water tower
Council awarded the contract to paint the interior of the Scotland Street water tower, to Jacques Daoust Coatings Management Inc.
The project will put the water tower out of commission for about six weeks.
Water/wastewater rate study and financial plans
Foster was the only councillor opposed to the township hiring a consultant to do this work, stating he thought township staff should be able to do the work themselves.
Pier restoration of the Jack R. MacDonald Bridge
Council agreed to spend $584,000 on this final piece of the bridge restoration. Work on the piers requires building coffer dams around the piers, removing the water and then doing the work.
“I really hope we’re finished spending money on this bridge,” Van Leeuwen said. “I will be happy to see this complete.”
Asphalt contracts
Because of the drop in the price of oil, the township is able to do 10 road repaving jobs in the township for the price of three.
Kitras didn’t want to spend the money on repaving Middlebrook Road when there are still questions about the well located there, but council voted down his motion to remove this road from the paving projects.
Integrity commissioner
The final matter to come before council was the integrity commissioner’s report, and this proved to be a contentious topic as well.
At the request of council, integrity commissioner Guy Giorno’s transparency report and invoice was presented for information.
Giorno handled three complaints in 2019. File #3 had to do with the matter of Linton vs. Kitras and cost $5,880. Giorno invoiced the township a total of $8,085 for the three files.
“Overall, this expense for something I was vindicated for is a waste of taxpayer money,” said Kitras, adding he is personally out $1,700 because of the investigation.
“The mayor abused the system to attack me. He owes the public an apology.”
“I won’t be responding to councillor Kitras’s comment,” said Linton. “I don’t share his impressions.”
