The city is poised to take back full oversight of its hydro operations and community energy initiatives.
If a staff recommendation passes Monday, Guelph Municipal Holdings Inc., which runs Guelph Hydro and community energy initiatives in Guelph, will now report directly to the city.
A staff report and recommendation to council calls GMHI, the company established by council under former Mayor Karen Farbridge in 2011 to manage certain city assets, "an unnecessary filter for information between Guelph Hydro and council."
Council meets Monday as the sole shareholder of Guelph GMHI where staff will recommend GMHI cease active business operations and put them "indefinitely on hold."
Mayor Cam Guthrie has led the charge for this move since shortly after coming into office, feeling the public was not getting the full financial picture or effectiveness of what city initiatives under GMHI's umbrella.
On his blog, Guthrie said that he is "extremely pleased" with the staff recommendation, adding that GMHI and district energy has "dominated and hijacked the first year and a half of work during this term."
"Knowing now that the best course of action is to set it aside is a great feeling personally, but more importantly it is the right step to take for our community," Guthrie said.
The move means the city, which has always controlled the direction of Guelph Hydro as its owner, will now have complete oversight and management. Guelph Hydro would report directly to council.
The report going to council Monday says the "current environment in which Guelph Hydro is operating requires a closer working relationship between council and the Guelph Hydro Board to ensure all stakeholders are involved in discussions regarding the future of Guelph Hydro."
"This work and recommendation has been part of the ongoing work initiated under this term to optimize City assets and increase transparency to the citizens," Guthrie said.
City Chief Administrative Officer Derrick Thomson is now the CEO of GMHI.
Thomson said in an interview that the move, if approved Monday, would be more about process than control.
"It would streamline the process and decision making," Thomson said. "It's a good news story."
GMHI has always answered to council, but the Mayor and others felt there was a level of decision making and transparency that was not in the best interests of the city.
Guthrie became chair of the GMHI board of directors earlier this year and set about delivering a full financial disclosure of the city's community energy initiative, which council heard had been a financial and environmental bust due primarily to its limited scale and inability to sign up large customers.
"In my opinion, the original vision of GMHI never came to fruition. A singular focus on district energy ultimately proved to be a $14 million dollar journey that resulted in no economic and environmental benefits, requiring the city to write-down almost $9 million dollars," Guthrie said.
The Mayor also said that he plans on requesting at an upcoming meeting of council that anything in excess of Guelph Hydro's current annual dividend of roughly $1.5 million be put towards the city's infrastructure deficit.
