Councillors blindsided by EPCOR's bid to take over the drainage department
Laura Osman | CBC News | Posted: June 9, 2016 11:52 PM | Last Updated: June 10, 2016
It's the third time EPCOR has proposed taking over the city's drainage system
City councillors say they were blindsided by EPCOR's latest proposal to take over Edmonton's drainage system.
EPCOR has drawn up a proposal to operate the utility, as it does water treatment and distribution. The drainage system includes everything from pipes that carry stinky sewage from people's homes to those that carry rainwater that pools in gutters along major streets. The net value is $2.6 billion.
Coun. Tony Caterina said there was no mention of the idea at the last month's shareholders meeting between councillors and the subsidiary.
EPCOR is owned by the city, and operates across Canada and the United States.
This is the third time EPCOR has made a bid to take over city drainage assets. It first did so in 1997, and made a second bid in 2005.
EPCOR spokesperson Tim le Riche said EPCOR's board of directors pulled out the first time.
The subsidiary is making another pitch now, in part, because the city is reviewing all its programs and services.
"We felt that this was the right time, while that process is underway, to put in our proposal," le Riche said.
In 2009, the company took over the Gold Bar Wastewater Treatment plant. The move was controversial, and some opposed to the transfer voiced concerns it could expose the facility to future privatization and take control out of city hands.
Drainage employees on edge
EPCOR said one benefit of the subsidiary taking over drainage operations would be that it would also take over the debt related to drainage, which currently stands at $447 million.
That would open up more potential borrowing for the city, which has limits on the amount of debt it can carry.
"It would also bring all of Edmonton's water utility operations under one roof, allowing for a common approach," said EPCOR president Stuart Lee.
Lee said drainage would still be owned by the city because it retains 100 per cent ownership of EPCOR.
Caterina said there are many outstanding questions about the pitch.
If council decides to look into the idea, the city will hire an independent consultant for $200,000 to investigate the potential benefits to taxpayers and ratepayers.
In a report to council, city staff said the proposal must meet a number of conditions in order to move forward. Drainage services must not be compromised, and neither should EPCOR's other responsibilities, for example.
Caterina said he wants to be sure employees are protected if the deal goes ahead. He said he has already received a number of calls from drainage employees who are worried about what will become of their jobs.
"I really didn't want our employees to be going through this process with the anxiety it's causing already," he said.
If city council decides to move ahead with the idea, EPCOR has pledged to offer new jobs to all drainage employees with comparable salaries and benefits.
Council will debate whether or not to look into the proposal further on Tuesday.