Stories You May Have Missed

I happened to see some of these items while searching through media outlets and thought that you might be interested in seeing them. Lots of Tunnel shorties too in case you were wondering.

IS AMBASSADOR WILSON THE NEXT TO GO

It is almost a given that the NAFTA-gate scandal is not over. The Canadian politicians and bureaucrats in Ottawa have finally figured out that they have damaged significantly the relationship with United States. Damage control time and heads have to roll before the next US election. Already the Prime Minister's Chief of Staff, Ian Brodie, has said he is leaving.

To show you how serious this issue has become, it was necessary for the Prime Minister to issue a statement. Here it is:

• "STATEMENT FROM THE OFFICE OF THE PRIME MINISTER
  
  May 23, 2008
  Ottawa, Ontario
  
  Today, the Prime Minister's Office issued the following statement:
  
  Upon receipt of the Report on the Investigation into Unauthorized Disclosure of Sensitive Diplomatic Information, the following conclusions are noted:
  
  Any comments Mr. Brodie may have made during the lock-up did not reveal any information tied to the diplomatic report, of which he was made aware only on February 28. There is no evidence that Mr. Brodie disclosed any classified information.
  
  Based on the findings of this investigation, there is no evidence that Ambassador Wilson revealed any information tied to the diplomatic report or to any U.S. presidential candidate's position with respect to NAFTA, though his comments likely helped lead the reporter to the Senator Obama campaign. There is no evidence that Ambassador Wilson disclosed any classified information.
  
  The original diplomatic report was incorrectly classified and had an inappropriately broad distribution list."

Do you think I am wrong about Ambassador being the next to leave, after the appropriate time of course? Note the diplomatic language used. It did not say that he did not reveal or disclose. It just said that "there is no evidence."

Do you remember the BLOG I wrote about the Ultra Secret Canadian Playbook about how to deal with the United States? The person who was the Chair of the Group that prepared the Playbook was Transport Canada Deputy Minister Louis Ranger and a member of his Group was Windsor's own Herb Gray.

What a remarkable coincidence that both of them have had a history with the Windsor border crossing. And wouldn't it be a shame if our relationship with the United States, especially over NAFTA, is hurt as well because of the Ambassador Bridge issue.

You might find this part of the Report interesting about how Canada acts in the United States. Imagine if it was the other way around and the Americans interfered with our election process:

• "Ambassador Wilson returns the Washington Bureau reporter's call from Ottawa, where the Ambassador is attending a meeting.
  
  The Ambassador recalls the reporter saying:, “I am advised by a senior member of the government that you had a call from Clinton’s staff advising you that there would be conversations on that. The topic of NAFTA was going to become a more heated issue in the campaign, and that you should take this within the context of the heat of the campaign, the intensity of the campaign at that time leading up to the March 4th primaries.’’
  
  According to Ambassador Wilson, he explained, “[t]hat is a fabrication,. I have not received a call.” He recalls the reporter responding, “[o]h, that makes it difficult for me because this did come from someone quite senior in the government. Well, let me be quite clear with you. We’ve heard this from the Prime Minister’s Chief of Staff.”
  
  Ambassador Wilson explained to investigators that “[t]his was a story he wanted to go with and I thought the way he put it, if that goes out in that way, that’s going to cause us real awkwardness. So I tried to address the issues that were wrong in that conversation that we had up to that time; and I said, ‘Our job at this Embassy is to reach out, have contacts with a variety of people in the United States. We talk to the campaigns. This is done on a pro-active basis on our part. Campaigns don’t talk to us; they don’t reach out to us; they are too busy for that, so we reach out to them.’’’
  
  Believing he is speaking off the record, he explains that “[i]t was part of a broad conversation that we had these, with other campaigns, the three campaigns at that point, and that we had a contactwith the Obama campaign within a recent period of time,”, but that he could not be more precise on timelines because he was not part of that conversation.

Do you think the Americans are going to be happy with this explanation? Especially the Obama Democrats. I don't!

TUNNEL MATH

According to what I understand the transaction is to be with respect to the borrowing of $75 million,

• "The Windsor tunnel corporation is responsible for paying back the loan. It would be done with toll revenues from the Canadian side and roughly $600,000 in annual rent being paid by Alinda, which has a lease to operate the Detroit side until 2020."

The maximum term for a loan from the Ontario Government is 40 years according to the Infrastructure Ontario website. The interest rate chargeable to a Municipal Corp. these days ranges from 5.52-5.62% (the loan would be cheaper if the borrowing was done by the City itself by about one half a percent but what is a few dollars of interest between friends).

Using some amortization tables, at a rate of 5.52% over a 40 year period for payback, the yearly amount payable is about $4.7M.

Doing some simple math, it means that the Canadian side of the Tunnel has to find something like $4.1 million per year to pay off the loan. Considering that it pays to the City nothing as a dividend after paying over $6 million a year at one time, where is this money going to come from?

The money to be paid back could come from maintenance funds but that wouldn't be smart with such an old Tunnel. It could come from deferring improvements but all that happens is that when the improvements are done the costs are higher. Look at how much it cost to fix up the Ventilation Building.

The obvious answer is to get the money from toll revenues. Based on the volume of vehicles that go through the Tunnel, it means adding about a dollar per automobile to pay down the cost of borrowing. Already, the Tunnel is $.75 higher than the Bridge for a round-trip crossing at $8.75. Adding in another two dollars, would just drive traffic to the Ambassador Bridge and make it even more difficult for the loan to be paid off with the reduced traffic volumes.

Can you spell D-E-F-A-U-L-T?

TUNNEL VOLUMES

It's going to be a vicious circle... increase tolls to pay back the loan thereby reducing volume which means tolls have to be increased again which means reduced volume etc. etc. etc.

As I told you, one must read to the end of the Windsor Star stories to get important information. In the Star story on Saturday "Detroit mayor's office predicts tunnel deal," it was written right at the end that

• "The tunnel talks continue amid background information released this week from the tunnel commission which showed tunnel traffic numbers have dropped three per cent from the same time frame last year."

This drop is lower than that which the Tunnel has experienced in the past, probably because of the work being undertaken at the Ambassador Gateway project. Nevertheless, the volumes are still down meaning that the Tunnel has not been able to capitalize on all their advertising in getting significant new traffic from the Bridge. In fact, as I wrote before, the region is losing tourist traffic in huge numbers. We are down hundreds of thousands in passenger cars and thousands in buses. The numbers that the Bridge is losing are not being captured by the Tunnel.

Please explain to me how is it that the Tunnel will be able to pay off its loan as volumes shrink. Once the Ambassador Gateway project is finished, expect traffic to go to that crossing because it will be easier for vehicles to crossover. And if the new DRIC bridge is built that claims that it will take away a quarter of the Tunnel's in business, then how will the loan ever be paid back?

I do not understand how Eddie will be protecting commuters and Michigan tourists when the toll rate has to rise so high to cover the cost of loan?

Another little competition factor is that the Tunnel Plaza will not be improved for years to come since the City does not have the money to make the improvements even though the Senior Levels have agreed to put in two thirds of the $30 million originally budgetted. Note that amount has increased dramatically although the City has not shared with us the increased amount nor the reason why.

Again, why would one choose the Tunnel with its cramped conditions compared with the new Ambassador Gateway?

TUNNEL TIMETABLE

I'm not sure if I understand correctly the timing on this transaction.

The Detroit Mayor would like this completed by June 30. That is the budget deadline date.

However, this loan transaction has to be worked on by Infrastructure Ontario. Their spokesperson said that the transaction cannot be completed for another five to seven weeks. That could put it past the deadline before anyone knows what the decision is.

Then there is the approval of the must be given under the International Bridges and Tunnels Act for the transfer of the Canadian side from the City to the new Tunnel Corporation. Since the Regulations have not yet been published under that Act, I do not see how this transaction can be completed by June 30.

It could take months and months before anything could be done, especially since the issue of ownership is a hotly contested one with the Ambassador Bridge. Do you really believe that the Fed are going to do anything to jeopardize their legal position vis-à-vis the Bridge Company to help out our Mayor on an unimportant transaction like the Tunnel.

WHY ARE THE STAR AND HENDERSON SO AFRAID

No recent Editorial or Column on the Tunnel deal with Detroit. I wonder why not. Are they afraid to say it makes no sense for the City of Windsor for fear that the Mayor may be criticized for foolishly risking the money of taxpayers?

VEHEMENT OBJECTIONS

An interesting description of the in-camera meeting where staff received increases of up to 15% in the column of Gord Henderson:

• "I was out of town when the news broke that council, over vehement in-camera objections from councillors Dave Brister and Al Halberstadt, had agreed to provide close to 400 managers and non-union professionals with salary."

I'm not certain who told Gord what went on at that meeting since my information is that Councillor Brister did not say a word.

How then could it be said that he vehemently objected? Obviously, he has been taking hand raising lessons from the Mayor. You may recall that the Mayor has been trying to teach Councillors Halberstadt and Gignac how to hold their hands up at Council meetings.

Clearly the Mayor has told Council Brister that when he opposes something vehemently, when he puts his hand up he should put up his hand in a fist.

Let's see if he does that at Council now, If he does, then you will know the reason.

WHAT IS THE TUNNEL DEAL

Give your Councillor a call and ask him/her what the Tunnel deal is all about. You will not receive an answer because I'm told that none of them know since none of them have been told. Oh there might be one or two of them who have been let in on the secret but the vast majority haven't got a clue.

That is why I found these lines in the Star story on Saturday so funny. I'm going to reverse the order of how it was put in the newspaper and you can see what I mean:

• "We are aggressively pursuing everything to put this in an acceptable form to bring forward to (Windsor's) council for a decision."
  
  
• "But it's the kind of transaction where you can't jam a loan application down people's throat and expect them to pony up $75 million because you need it in a hurry."

So please explain to me how Councillors will exercise due diligence in the transaction that has to be completed so soon when they have not got the faintest idea what it is all about. It sounds very much like the Arena deal where they will get an Administrative report and then be told to vote yes or no.

Nope, no jamming here to meet a June 30 deadline.

UTTER CONTEMPT FOR WINDSORITES

Councillors have been neutered on the border issue since only Eddie is the spokesperson. That had been decided previously and in a public Council meeting. However, it was necessary to confirm it recently again, as disclosed on Face-to-Face, since a number of Councillors had the nerve to discuss the border in public.

If there is anything to be discussed in detail, it appears that the Councillors cannot say anything but must refer the discussion to the Mayor for handling. That is if they are to be true to their Resolution according to the Mayor.

That Councillors should agree to this in light of their legal obligations is mind-boggling to me.

We may as well save money and petition the Province to do away with Councillors in Windsor. In fact, let's do away with Council meetings entirely. Heck, most key decisions seem to be made in camera anyway.

Administration is doing a good job to ensure that Windsorites have no idea what is going to be held at Council. Here is the City's Council Agenda website on Friday, May 23 at 2:20 PM, after the noon time-period by which delegations have to register if they are to speak, as well as the Communications website.

Note that it was the websites for the previous meeting that was still being shown as late as Friday afternoon!

The excuse given for the failure:

• "We have been experiencing some technical difficulties, according to our I.T. Department."

Interstingly, that was the same excuse given before when I tried to download the WFCU Agreement when the website failed:

• "I am advised by our IT department that there were issues with the website this afternoon that have now been corrected."

Sure problems can develop with the Internet. No one is perfect. However, for no one in Administration to know that there was a problem with the website for an entire week is an absolute disgrace.

Doesn't anyone in Administration ever check the website? Is IT asleep? Does the Clerk's Office care?


I assume that they only discovered the problem when I sent an email complaining.