Councillors here are sending their mayor to voice concerns to the Westario board of directors about certain practices.
Discussion was deferred from the last council meeting at David Turton’s request.
In reading the town’s resolution, Councillor David Turton said “the council of the town of Minto recognizes the issues and concerns identified in the municipality of Brockton letter dated June 26, 2009 regarding Westario Power.”
“Further, the town of Minto requests that Mayor David Anderson bring these concerns to the Westario board of directors, and further that Westario Power and its partner municipalities to work towards a resolution of those issues.”
Turton believed that the mayor was doing a good job bringing concerns forward.
Anderson said that he and treasurer Gord Duff have had quite a few discussions on the issue.
He said that in many municipalities, both the local municipalities and Westario Power are asking for letters of credit.
“Generally what a letter of credit is … if an individual is developing a subdivision … and in Westario’s case they are putting in poles and light standards … they want a letter that there is money there to finish the job if something happens and the developer backs out.”
“Otherwise Westario would be left holding the bag.”
Anderson said it is much like a line of credit, but to ensure the money is there for a project’s completion.
He said that from the letter from the Brockton Economic Development Committee it sounds like contractors have had to put money up front and would be paid back later.
Brockton’s letter stated that one member municipality advised that one developer encountered a situation of entering the third phase of a planned subdivision was advised that “up front” deposits of $3,000 per lot were required.
“Those are some concerns I’m going to bring to the board of directors.”
Anderson said there were also concerns as to the differences in project quotes, where the prices are higher than the initial quotes.
