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HomeMy WebLinkAbout03/16/1979 (Special) . . . Council ~linutes TOWN OF NEWCASTLE March 16th, 1979 Minutes of a special meeting of Council held on ~hrch 16th, 1979 at 2:00 p.m. in the Bowmanville Council Chambers. Roll Present were: Mayor Garnet B. Rickard Call Councillor Keith Barr Councillor William Clarke Councillor Ann Cowman - (at 2:20 p.m. ) Councillor Jasper W. Holliday Councillor Maurice Prout Absent: Councillor Ivan M. Hobbs (due to illness) Also Present: Town Clerk J.M. McIlroy Town Manager A.C.W. Guiler Director of Public Works J. Dunham Director of Community Services T.A. Fanning Treasurer K. DeGroot Local Study Group on Hydro Restructuring The meeting was called to consider a report of the Local Study Group on Hydro Restructuring. Resolution #C-300-79 Moved by Councillor Holliday, seconded by Councillor Prout. THAT the attached report of the Local Study Group on Hydro Restructuring be adopted. "MOTION LOST" Resolution #C-30l-79 Moved by Councillor Holliday, seconded by Councillor Prout. THAT the Report be amended to provide that the Ministry of Energy withhold a decision until the various alternatives had been made available to the public and responses received and further recommendations conveyed to the Minister at that time. "AMENDMENT CARRIED" On being put to a vote "As Amended" Resolution #C-300-79 was "Lost" Recorded Vote Councillor Barr.....Nay Councillor Clarke...Nay Councillor Cowrnan...Nay Councillor Holliday.Yea Councillor Prout.... ..Yea Mayor Rickard.........Yea . . . Spec~al Counc~l M~nutes - 2 - March 16th, 1979 Resolut~on #C-302-79 Moved by Counc~llor Holl~day, seconded by Counc~llor Prout. THAT the M~n~ster of Energy be adv~sed as follows:- "W~th the present t~me constra~nts for respond~ng to your d~rect~ve to respond by March 30th, 1979, the Counc~l was unable to obta~n publ~c op~n~on regard~ng the P.D.C. Restructur~ng ~n Newcastle and bel~ev~ng publ~c ~nput ~s mandatory for such a dec~s~on, we would therefore adv~se that the follow~ng recommendat~on was presented by the Restructur~ng Comm~ttee and that we support the recommendat~on, subject to publ~c op~n~on:- 'THAT Alternat~ve #2 of the Resources Comm~ttee Report be adopted and sent on to the Reg~onal Correlat~on Team and ~n~ster of Energy, as follows:- "THE comb~n~ng of the ex~st~ng utilit~es less the rural area ~nto one ut~l~ty under one Conunission and one Management.1f , Po~nts ~n favour of th~s alternat~ve are as follows:- The economy of scale would mean the level~ng of rates between the three Dt~l~t~es and the establ~sh~ng of one standard pol~cy for all. Th~s arrangement would lend ~tself to one centre of operat~on where the customer would only have to contend w~th one telephone number for serv~ce. Po~nts aga~nst th~s alternat~ve are as follows:- (a) Loss of ~tent~ty for each Dt~l~ty. (b) The rual customer with~n the Town of Newcastle would der~ve no benef~t from th~s alternative. " "MOTION LOST" Council Minutes . . . - 3 - March 16th, 1979 Resolution #C-303-79 Moved by Councillor Cowman, seconded by Councillor Holliday. THAT the Minister of Energy be advised that the following Alternative #1 as presented by the Restructuring Committee be adopted:- "As the Council was unable to obtain a second consultant's opinion or public opinion by March 30th, 1979, as the Minister had directed, believing that public input is manatory for such a decision Council would therefore advise him that it supports this recommendation, subject to an acceptable second (Consultant's) opinion at users cost and subject to public opinion:- 'This would entail combining the three existing Utilities within the Town of Newcastle namely Orono, Newcastle and Bowmanville with that portion of the Bowmanville Rural Area and would include St. Mary's Cement Company. This would entail the purchase of that part of the Rural District from Ontario Hydro at a cost of some 6.6 Million Dollars. This amount would be financed by Hydro over a period of thirty (30) years and would bear the going rate of interest calculated annually. At the initial start up, assuming it to be January 1, 1980, a sizeable debenture of something in the order of $800,000. would be required. Of this amount, approximately $600,000. would be for working funds and the balance for capital works projects presently under consideration. At the present time, it does not appear likely that the Ontario Municipal Board would permit the Region to debenture this amount of money. Therefore, these funds would have to be derived from other sources locally. Under Alternative 1, it would entail the purchase of all rural assets within the boundaries of Newcastle such as sub-transmission lines, all rural lines, transformers, substations, present rural office with all furnishings, some equipment, a portion of the stock as well as vehicles. With the above preamble, it is estimated that the present rate structure now in effect would have to increase. This, coupled with the proposed increase by Hydro of some 8% in 1980 would set up rates as follows:- . . ~ Council Minutes - 4 - March 16th, 1979 (a) Combining the three present Utilities and that portion of the rual District including St. Mary's Cement Company, the average increase to the customers in the Town of Bowmanville would be 11%. This would be a make up of some 20% to residential customers and 5% to general service. (b) The Village of Newcastle customers would experience an overall increase of 8%. This would be a make up of 14% to residential and 3% to general service. (c) Orono rates would also increase by 4%. This is a make up of some 6% to their domestic customers and 3% to general service. (d) By the same token, the rural district of 5,100 customers would experience a decrease in rates of 4% made up of 9% to residential and 11% to general service customers. Large industry would have an increase of approximately 14%. This would effect such customers as St. Mary's Cement Company.' Points in favour of this alternative are as follows:- (a) All customers within the Municipality would then be operating on one standard set of rates. (b) Only one Commission and one Management would be needed for the entire area. Points against this alternative are as follows:- (a) This arrangement would entail a substantial rate increase to the existing municipal customer. (b) Loss of identity in the present municipalities. (c) This, if approved, would involve the setting up of complete new organization with the employing of approximately 30 additinal trained staff. This could present a problem as where restructuring has taken place in other areas, the Ontario Hydro personnel have been reluctant to transfer particularly in the Line Department." "CARRIED" . . . Council Minutes Adjournment - 5 - Resolution #C-304-79 March 16th, 1979 Moved by Councillor Prout, seconded by Councillor Clarke. THAT the meeting be adjourned at 3:00 p.m. "CARRIED" G.B. Rickard Mayor ~~~d /1::, /;?::-_<< ..(" J .M. McIlroy Town Clerk ~