bill for toronto street lights will top $400 million - solar street light cost

After selling its street lights to Toronto Hydro in 2005 to raise $60 million, the City of Toronto will pay more than $0. 42 billion in rent over the next 30 years to recover the street lights, the contract agreement shows.
The disputed contract was obtained by the Greater Toronto Electrical Contractors Association through a request for freedom of information, which the city strongly opposes.
Bob O'Donnell, executive director of the association, said the sale could be a bad deal because no one else was allowed to bid for street lights.
Toronto MP Denzil MinnanWong agrees.
"We sold it in despair but didn't get a good price," Minnan-
Wong said in an interview.
The city is the only shareholder of Toronto Hydro.
However, by 2035, city residents and businesses will pay about $14 million a year to use street lights through property taxes.
The agreement lists annual payments as $13.
6 million, but this amount is adjusted every year due to inflation.
This means 30-
The contract will be valid for more than $0. 42 billion.
The city had sought to release the agreement and submitted a 32-
Attempt to block the page legal argument it issued.
David soknaqi, a former MP who initiated the agreement, said the agreement contained the best terms of the time because the city had just been blindfolded by the Ontario government.
Soknacki said the city was called to Queen's Park in a day or two before submitting the March 2005 budget.
Soknacki was the head of the city's budget at the time.
There, Soknacki said, he was told that provincial funds would be $60 million less than the City expected.
This forced the city to quickly find ways to fill the gap and balance the budget, as required by law.
City workers are proposing to sell street lights to Toronto Hydro, which the city also owns.
"We are aware of the time constraints and the situation we are in," Soknacki said . ".
"Is this a perfect decision? Absolutely not.
If we have enough time to make a decision, there may be other decisions that are better for the city.
He added: "contract negotiations with the local people of the two major trade unions in the city were in full swing at the time and they would feel uneasy if they suddenly cut service or staff.
Soknacki said he asked city staff to analyze the deal.
The Toronto Hydro consultant identified how many lights and poles were involved, as well as their value.
"We asked if this was a good deal in terms of return and strategic direction," said Soknacki . ".
"We both passed on both points and we were able to recommend it.
Soknacki acknowledged that the decision caused a "heated debate" on the committee at an emergency meeting in the office of Mayor David Miller ".
The city council approved the deal at a closed-door meeting. door session.
However, O'Donnell said that another bidder may charge taxpayers less for lighting services or pay more for the lighting in front.
"Unless you have a comparator, this is an overkill because there is no second bidder," he said . ".
"If they take this out for bidding. . .
They will have people who are interested and they may have a better price.
The argument put forward by the contractor states that the city acknowledged in one of its documents that the transfer of assets "could be a fair market value or a fair market value.
O'Donnell noted a pilot project in 2003 when the city invited a competitive bid to maintain the Scarborough street lamp contract.
At the time, he said, a private company outbid Toronto Hydro. (
The pilot project lasted three years.
At the end of the project, street lights went to Toronto Hydro. )
O'Donnell is also critical of the penalty provisions in the 2005 street lamp contract.
The problem is listed as high, medium or low priority.
A high priority issue-say, the whole area without lights, or a pole being knocked down-requires a response in an hour and a half.
For less serious problems, five to ten days may be allowed.
If these standards are not met, Toronto Hydro may be fined a fine of $250,000 per year.
When the city paid $14 milliona-
Mr. O'Donnell said there was little incentive for the annual fee.
Tanya brookmiller, spokesman for Toronto Hydro, noted that Hydro had never been punished under the agreement.
"We think we have provided very good service at a very fair price," she said . ".