Barrie mayor may be paid for his PowerStream position

thebarrieexaminer.com
April 29, 2015
Bob Bruton

PowerStream director could soon be a paid position for Barrie Mayor Jeff Lehman.

City councillors gave initial approval Monday to a motion that would add $14,000 from the hydro company to Lehman's annual salary of $89,635 for being mayor, plus his $6,000 car allowance.

"We need to have the best people in place and these people have to be paid," said Coun. Michael Prowse, who noted the money would not come from city taxpayers but from PowerStream, which is owned by Barrie, Vaughan and Markham.

Council decided in 2006 that councillors would not be financially compensated for sitting on any boards and committees, including PowerStream.

That pay was to be included in their annual salaries. There had been a system in place which paid councillors different amounts, depending upon the board or committee on which they served. Four years following the 2006 decision, a city compensation review committee recommended that councillors be able to accept committee pay, but council deleted it from the motion.

Prowse's motion would amend that policy on council remuneration. Most councillors said Lehman should be paid for sitting on the electrical utility's board of directors, given the time it requires and the responsibility. "This is not about the mayor, it's about being part of a the board of directors for a $400-million corporation," said Coun. John Brassard. "This is a major responsibility."

"I don't consider it to be a huge sum of money, but a token honorarium," said Coun. Arif Khan of paying Lehman. "And I'm pretty sure the (hydro) rates won't go down if he doesn't get the compensation."

"I think our mayor is sadly underpaid," said Coun. Bonnie Ainsworth.

Coun. Barry Ward voted against the motion on principle, saying councillors and the mayor knew what the pay was when they ran for election last year.

"The wrong message is sent," he said of taking the PowerStream money. Ward said if council wants to pay its mayor more, the money should come from taxpayers. Coun. Sergio Morales said Monday he would abstain from the vote, saying the timing was wrong for the increase - the year after a city election.

But Prowse - who chaired the meeting because Lehman had stepped aside, given the motion was about his financial compensation - said abstaining wouldn't work. "This is one of those times and abstaining doesn't count. It's a 'no' vote," Prowse said. "Everybody (all councillors) who shows up has to play."

Council will consider final approval of the motion at its May 4 meeting. Barrie councillors are paid a base salary of $30,282 and receive a $2,100 car allowance - plus expenses. Their positions are considered part-time.

The mayor's position is considered full-time. Eric Fagen of PowerStream said the compensation offered to the directors appointed to its board has not changed since the company was created in June 2004.

Directors receive $14,000 annually, he said, as well as $650 for each meeting they attend. There is an average of four board meetings per year. But salaries for PowerStream directors vary. Ron Stevens is a citizen appointee for Barrie on the utility's board.

His salary last year was $28,500. There are two components to PowerStream compensation - an annual salary and a per diem component. The per diems depend on whether a director is appointed to subcommittees or not, and how many meetings are held.

Lehman's responsibility on PowerStream could also increase. Ontario Energy Minister Bob Chiarelli announced Monday that PowerStream will merge with Hydro One Brampton, Enersource and Horizon Utilities - meaning Barrie, Markham and Vaughan would join Mississauga, Hamilton, St. Catharines and Penetanguishene to create the second-largest electrical utility in Ontario.

The board of directors of Barrie Hydro Holdings, as a shareholder in PowerStream Holdings, has received information regarding the merger and has provided direction to investigate the opportunities. Barrie Hydro's board, however, is comprised of all members of Barrie city council - although it does operate as a separate corporation - and it is the sole shareholder. So council itself has not met or voted on any matters related to the merger, as of yet.