Delay would be a mistake

Opinion

Hey there, time traveller!
This article was published 15/07/2009 (5928 days ago), so information in it may no longer be current.

For the past year-and-a-half, the City of Winnipeg has been considering creating a new, arm’s-length management model for water and sewer services. In a nutshell, we’re proposing that these services be operated as a city-owned utility, similar to Manitoba Hydro, rather than as a government department.

We see many benefits for taxpayers beginning with the fact that, by law, the new utility, our water supply and waterworks system would continue to be 100 per cent owned by the city. Any suggestion otherwise is without factual merit. City council would also retain clear oversight of the new utility, reviewing and approving annual business plans and budgets.

Public accountability would be further enhanced with rates set by the independent Public Utilities Board, providing Winnipeg with the same transparent process used in all other Manitoba municipalities, MPI and Manitoba Hydro.

To better protect taxpayers, the utility would have the ability to enter into new partnerships with engineering and construction firms — flexibility that is critical given the significant financial challenge the city is facing to upgrade its sewage treatment plants. There are a number of models being reviewed through which the city would ensure these engineering and construction partners have a stake in the successful completion of the sewage plant upgrades. Whatever the decision, the city would retain full control over this partnership as well as 100 per cent ownership of the new utility and our water and sewage treatment plants.

Despite these many benefits, there are voices, including some from outside Manitoba, who believe this proposed new management model should be delayed. If you’re a taxpayer, that would be a very costly mistake. The bottom line — there is an urgent need to immediately proceed with the upgrades to our sewage treatment plants. Imposed upon us by provincial law in order to meet strict new environmental regulations, the intent of the upgrades is to help protect our rivers and Lake Winnipeg. It’s a $1-billion challenge, and the clock is ticking if we are to meet the deadlines set by the province.

Like many governments, we have not had a strong history of coming in on-time and on-budget on projects of this scale and complexity. In fact, overruns on previous construction projects have been as high as 30 per cent, leaving taxpayers on the hook for tens of millions of dollars.

Consider the magnitude and the risk to taxpayers of proceeding with a billion-dollar construction project that is more than 20 times larger than the last major project that went over-budget. Should the same situation re-occur under the existing management model, the cost overrun for the new projects could climb to hundreds of millions of dollars.

Last November, direction from city council was clear. They said they wanted future construction projects managed in a new way that increases accountability and transparency for citizens. By involving a strategic partner in the construction process who is on the hook to help pay for any problems, like cost overruns, we believe we can accomplish both objectives.

When taken in totality, the proposed new management model will protect and hold 100 per cent public our water resource and utility while ensuring greater accountability through independent rate-setting. Taxpayers are protected with a tighter process to ensure on-time, on-budget construction of major city infrastructure improvements.

Over the past several months, this proposal has been presented to Winnipeggers through several avenues, including public meetings, a detailed discussion paper, a website and a business plan. In addition, the city has consulted extensively with employees and key stakeholders. To all, we’ve extended an open invitation to provide feedback.

Winnipeggers are encouraged to learn even more about this initiative by visiting www.winnipeg.ca and clicking on “city-owned utility.” We welcome your input.

Bryan Gray is a manager of utility development, City of Winnipeg. This was written in collaboration with co-managers Moira Geer and Henry Hunter.