13 August 2014 Presentation to Kincardine Council on Bylaw 2014-044 – The Broken Promise

1. 13 August 2014 Presentation to Kincardine Council on Bylaw 2014-044 – The Broken Promise See references at http://www.kincardinebrokenpromise.com Michael D. Smith Slide 1

2. 13 August 2014 Presentation to Kincardine Council On Bylaw 2014-044 1.History • Currently the water reserves are at about $5.1 M and the four members of Council (Anne Eddie, Maureen Couture, Candy Hewitt and Ken Craig)believe no part of the reserves should be used to recover the stranded debt of $1.5 M • These same 4 members of Council also believe that other reserves should not be used for the stranded debt Slide 2

3. 13 August 2014 Presentation to Kincardine Council On Bylaw 2014-044 1.History • So in April 2014, by a split decision the Council decided to place the burden for the stranded debt on the same property owners who had strongly objected to the pipeline in the first place. The charge amounted to $7,260 per lot. • These property owners were already on good wells and had no use or need for the water. They had absolutely nothing to do with the origination of the project. Slide 3

4. 13 August 2014 Presentation to Kincardine Council On Bylaw 2014-044 2.Integrity and Morality • The Kincardine Broken Promise is not only highly unusual among municipalities; it appears to be a precedent. • There appears to be no record on Google or elsewhere of a Municipality breaking a commitment with its rate payers resulting in such a large unexpected and targeted tax. Slide 4

5. 13 August 2014 Presentation to Kincardine Council On Bylaw 2014-044 2.Integrity and Morality • Integrity is critical to the proper functioning of any government administration. • There will be other projects such as the natural gas pipeline and sewers at Inverhuron where you will need to make commitments with the residents • There will be businesses looking to invest in Kincardine where you may be offering incentives. • If residents and businesses can no longer trust the Council of Kincardine to keep its word, it could be devastating for future investments here. Slide 5

6. 13 August 2014 Presentation to Kincardine Council On Bylaw 2014-044 3.Democracy • Most of the discussions leading to bylaw 2014-044 were held between November, 2013 and April, 2014 when many property owners were not here Slide 6

7. 13 August 2014 Presentation to Kincardine Council On Bylaw 2014-044 3.Democracy • Council was also aware that Randy Roppel who was on vacation would have voted for Option 3 which would have paid off the $1.5 M in stranded debt with Reserves • Attempts were made to delay the vote until Randy would be back and certain members of the Council forced the vote, knowing he was the Councillor representing a significant portion of the people most effected by the bylaw • This is a serious, cynical and deliberate departure from democracy Slide 7

8. 13 August 2014 Presentation to Kincardine Council On Bylaw 2014-044 4.Communication with Constituents • During the period from November 2013 and April 2014, there was no attempt by Council to advise the targeted property owners that they were contemplating a tax of $7,260 on each property without a municipal water connection to solve their debt problems • If you read the news clippings for that 6 month period, the discussion was largely between Council and the Municipal Staff. • There were no delegations or discussions with the affected constituents. You can read the history on our web site. http://www.kincardinebrokenpromise.com/History.html Slide 8

9. 13 August 2014 Presentation to Kincardine Council On Bylaw 2014-044 4.Communication with Constituents • This lack of direct communication is not reasonable for major decisions. It reflects a cynical disregard for the property owners on the pipeline route that has been reflected in past decisions by Council on matters like: • Market Value Assessment • The Kincardine Official Plan and • The Willing DGR Host Plan • which were largely discussed and passed in the winter time. • The survey for the Willing DGR Host was conducted in the winter when almost 100% of the recipients were Bruce Nuclear workers Slide 9

10. 13 August 2014 Presentation to Kincardine Council On Bylaw 2014-044 5.Users: Definition • One of the arguments for bylaw 2014-044 is that other communities charge user fees for water pipes that pass a home that does not use or need the water Slide 10

11. 13 August 2014 Presentation to Kincardine Council On Bylaw 2014-044 5.Users: Definition • We have some references that beg to differ: • Guide to Establishing the Level of a Cost-Based User Fee or Regulatory Charge, Treasury Board of Canada Secretariat Stakeholder involvement is critical in setting user fees or taxes. • Benefit Taxes and User Fees in Theory and Practice, David G. Duff, Associate Professor, University of Toronto, Faculty of Law • The user fees or taxes relate to the benefit of the service the user receives Slide 11

12. 13 August 2014 Presentation to Kincardine Council On Bylaw 2014-044 5.Users: Definition Making home owners pay a tax for a service they don’t want or need is not consistent with these and many other references and is totally unfair. We are happy to pay for the water service if and when we hook up, but not before. Slide 12

13. 13 August 2014 Presentation to Kincardine Council On Bylaw 2014-044 6.Cottagers: Definition • Cottagers are only here for an equivalent of 2 or 3 months of the year • Many have cottages because they inherited them from their parents and they from their parents • Over half are retired and on fixed incomes • They find it difficult to address an extra financial burden of $7,260 plus up to $20,000 for hook up costs • Many home owners have double lots where the second lot is a parking or storage lot and they are receiving a second tax bill. Its bad enough to receive a tax bill for water you won’t use but it’s a total insult to receive 2 tax bills for water you won’t ever use. Slide 13

14. 13 August 2014 Presentation to Kincardine Council On Bylaw 2014-044 6.Cottagers: Definition • In some cases, cottagers are less fortunate than average. • Some cottagers in Inverhuron have been dealing with increased taxes and costs of living by severing off parts of their property but the severed lots are then difficult to sell due to pending charges from: • Bylaw 2014-044 • New Sewer and Water Project and • The DGR • And their property values are further depressed from the anti-nuclear publicity from Fukushima Slide 14

15. 13 August 2014 Presentation to Kincardine Council On Bylaw 2014-044 7.Year Round Home Owners: Definition • 15% to 20% of the people effected by Bylaw 2014- 044 are year round home owners • Again most of the year round people effected by the Bylaw are retired and on fixed incomes • We have a number of year round people speaking tonight and you can hear their stories yourselves. Slide 15

16. 13 August 2014 Presentation to Kincardine Council On Bylaw 2014-044 8.Kincardine Treated Water: Definition • There seems to be a perception in some Councillor’s minds that Kincardine water is better and safer than our well water Slide 16

17. 13 August 2014 Presentation to Kincardine Council On Bylaw 2014-044 8.Kincardine Treated Water: Definition • May we remind you: • The Walkerton tragedy involved people in the City of Walkerton • The farmers on their own rural wells outside Walkerton continued to have good water at that difficult time Slide 17

18. 13 August 2014 Presentation to Kincardine Council On Bylaw 2014-044 8.Kincardine Treated Water: Definition • Kincardine Treated water • The lake is fed from the Penetangore River that also has manure from livestock and chemical fertilizer from farmers’ fields • In addition, the effluent from the sewage treatment plant flows into the lake upstream from the water intake pipe • If Lake Huron evolves like Lake Erie, we could have toxins from algae making our lake water unsuitable for drinking or cleaning even if boiled. See “Toledo’s Contaminated Water”. Slide 18

19. 13 August 2014 Presentation to Kincardine Council On Bylaw 2014-044 • Water contaminated from an algae bloom • You can’t drink the water. • You can’t shower with it. • You can’t wash dishes with it. • Boiling won’t help. • Can cause liver and nervous system damage. • Over 400,000 people effected. Slide 19

20. 13 August 2014 Presentation to Kincardine Council On Bylaw 2014-044 8.Kincardine Treated Water: Definition • In 1996 the Grey Bruce Health Unit declared that the Tritium levels in Kincardine Municipal water were within safe limits • They also declared that drilled wells in this area had no Tritium whatsoever. • In other words, our well water is much safer than Kincardine Treated water and frankly we would rather not have radioactive water from Kincardine arbitrarily shoved down our throats. Slide 20

21. 13 August 2014 Presentation to Kincardine Council On Bylaw 2014-044 9.Following the Budget Rules • One argument used by Council is the budget rules i.e. • 1. Money comes from different isolated pots • If the Water Pot runs dry, the Municipality cannot take money from the Sewer Pot • 2. If reserves have been built up for future replacement and repairs, those funds cannot be used for debt retirement Slide 21

22. 13 August 2014 Presentation to Kincardine Council On Bylaw 2014-044 9.Following the Rules • But we should mention some recent transactions by the Municipality of Kincardine. • We have the sale of Bruce Telecom for about $25 M. This company originated in Ward 3. • We have license fees from Samsung Pattern of about $13.5 M from Wind Turbines in Ward 2. • That’s close to $39 million from Ward 2 and 3 but not one dime of these funds is available to clear the stranded debt of $1.5 M for Ward 2 and 3 Taxpayers. • Where is all this money going? What is fair and equitable? Slide 22

23. 13 August 2014 Presentation to Kincardine Council On Bylaw 2014-044 9. Following the Rules • So we have Council using the argument of following the budget rules when substantial funds are available to clear the stranded debt. • It does not look like following the rules at all; it looks like a punitive and vindictive charge on the shore line homes that could be easily and rightfully avoided. Slide 23

24. 13 August 2014 Presentation to Kincardine Council On Bylaw 2014-044 10. Legal Action • We have formed the “Kincardine Pipeline Promise Association” for the purpose of opposing the "Broken Promise" • We have retained a Law Firm with significant municipal experience to challenge the Broken Promise legally Slide 24

25. 13 August 2014 Presentation to Kincardine Council On Bylaw 2014-044 10. Legal Action • We are collecting funds to pay our legal fees and while individual donations come in small amounts, they have grown significantly thanks to the broad based support from our members. •   We believe we have a strong case that Bylaw 2014 - 044 is not legal and can be quashed under Section 273 of the Municipal Act and under the principles of natural justice. Slide 25

26. 13 August 2014 Presentation to Kincardine Council On Bylaw 2014-044 11.Summary • Ethics and Morality: The decision on the stranded debt reduces itself to a question of keeping a promise, past, present and future. • Procedure: No Communication or Democracy • Hardship: Many people cannot afford this. • Reciprocity: The shore line people get few benefits and pay more than their share of taxes • We don’t want this water: Walkerton, Tritium or Toledo Slide 26

27. 13 August 2014 Presentation to Kincardine Council On Bylaw 2014-044 12.Conclusion • We would ask that one of the 4 Councilors (Anne Eddie, Maureen Couture, Candy Hewitt, Ken Craig)who voted for Bylaw 2014-044 permit a re-vote during the first 2 weeks of September with the full Council present. • Please give this important bylaw the due consideration it deserves. Slide 27

28. 13 August 2014 Presentation to Kincardine Council On Bylaw 2014-044 12.Individual Cases • We have 5 individual cases that help give a personal perspective on how Bylaw 2014-044 effects individual people. • These are not statistics with Options 1 through 7, these are real people. • The average time of each story is 2 minutes. Slide 28

29. 13 August 2014 Presentation to Kincardine Council On Bylaw 2014-044 Individual Story #1 – Linda Gallina Linda Gallina • Told by Son-in-Law Ken Young • Driveway is 1500 feet long and lies between Craig Drive and Whippoorwill Lane. Whippoorwill Lane Driveway Craig Drive Slide 29

30. 13 August 2014 Presentation to Kincardine Council On Bylaw 2014-044 Individual Story #2 – Florene O’Brien Upper Lorne Beach Road • Lorne Beach • Home is 800 feet from the water pipe line at Upper Lorne Beach Road. Florene O’Brien Florene O’Brien Collins Drive Slide 30

31. 13 August 2014 Presentation to Kincardine Council On Bylaw 2014-044 Individual Story #3 – Karen Ballock Victoria Street • Inverhuron • Home is on bedrock over 1000 feet from the water pipe line at Victoria Street. Driveway Karen and Steve Ballock 171 Victoria Street, Inverhuron Slide 31

32. 13 August 2014 Presentation to Kincardine Council On Bylaw 2014-044 Individual Story #4 – Reverend Gordon Geiger represented by his son Ross. Reverend Gordon Geiger 236 Victoria Street Inverhuron Slide 32

33. 13 August 2014 Presentation to Kincardine Council On Bylaw 2014-044 Individual Story #5 – Double Lots Inverhuron explained by Sylvia Stepnow on behalf of Mary Morris and other double lot owners. 71, 73, 75, 77 Lake Street The lots on the Victoria Street side have and will always be used for parking and storage yet they are billed for a water connection. Lake Street 51, 53, 59 Lake Street Victoria Street Slide 33 Pine Street

34. 13 August 2014 Presentation to Kincardine Council On Bylaw 2014-044 Thank you for hearing our story Slide 34