When it came to working with PowerStream in 2012 in their bid to purchase 50 per cent of Collus, Paul Bonwick argues he did what he needed to and more to disclose his involvement.
Bonwick, brother of former mayor Sandra Cooper, took the witness stand Wednesday afternoon to begin his testimony in the Collingwood Judicial Inquiry.
Inquiry counsel Kate McGrann led his examination-in-chief, coming out of the gate with a question about Bonwick’s sources.
McGrann said over the course of the inquiry, documents and testimony have shown Bonwick provided PowerStream with confidential information from strategic partnership task team (STT) meetings (that’s the team assigned to manage the request for proposal process and choose a winning bidder).
“Who were you speaking with to get that information?” asked McGrann.
Bonwick asked her to be more specific, later stating he had discussions with at least three members of the STT, including Dean Muncaster (now deceased), Ed Houghton (former CEO of Collus) and Rick Lloyd (former deputy mayor).
Based on emails included in the foundation document, Bonwick received a draft letter on Jan. 30, 2011, prepared by Houghton for Cooper directing the Collus board to undertake a valuation and explore options related to Collus, including the possibility of a sale.
The letter urges the information be kept in strict confidence.
Bonwick testified he didn’t recall getting the email and was kind of “surprised” at receiving it, as his sister didn’t ask him, directly, to review it.
Prior to that email, Bonwick sent other emails to Cooper that included a draft he prepared of her inauguration speech, and other emails encouraging her to be firm in her requests for departmental efficiencies and to extend those requests to the town’s utilities (including Collus).
Bonwick said his conversations with his sister at the time were “general” and did not explicitly refer to a utility sale.
Bonwick testified he did help Cooper as part of her mayoral campaign team.
Cooper took office in December 2010.
Email records show Bonwick reached out to Brian Bentz, the president and CEO of PowerStream on Jan. 10, 2011, stating Collingwood council had a “financial situation” and needed a “significant capital injection.”
He goes on to state he remembered, during his time in office, discussions about a potential sale of Collingwood’s utility.
“It is a result of that possibility I would like to meet and discuss PowerStream’s level of interest in pursuing such an option,” said Bonwick in his email to Bentz.
Bonwick said he did speak to Houghton before reaching out to Bentz, and Houghton “confirmed” Bonwick’s previous research that Bentz was “a well-respected and successful leader within the mergers and acquisitions” section of the energy industry in Ontario.
Bonwick also obtained Bentz’ email address from Houghton for his Jan. 10, 2011 contact.
After receiving the email, Bentz reached out to Houghton to find out more about Bonwick. Bentz kept notes from the call, which state Houghton told Bentz Bonwick was a highly-respected friend who could help PowerStream, but told Bentz he had to decide.
Houghton testified earlier this week he recalled the phone call and telling Bentz that Bonwick was “involved significantly” in many different Collingwood developments.
“I probably told him the area’s where he’s helped us out,” said Houghton. “At the end of the conversation was ‘you folks do what you need to do, don’t hire him because of what I said.’”
McGrann was cross-examining Houghton at the time.
“So you said a bunch of nice things about him and then said don’t hire him because of what I said?” asked McGrann.
“I said nice things because they were true,” said Houghton.
Houghton testified around this time he expressed what he referred to as a “sensitivity” to Bonwick naming Collingwood in his correspondence with PowerStream.
He said he asked Bonwick not to reference Collingwood when approaching PowerStream for work.
“I remember [Houghton] raising the issue of referencing Collingwood specifically in introductions and discussions until Collus had got its head wrapped around what it was doing,” said Bonwick. “I just recall him being sensitive to Collingwood being profiled in a manner of speaking.”
According to Houghton, when he raised his concern again, Bonwick sent him a proposal he drafted outlining the scope of the work he proposed to do for PowerStream.
“Mr. Bonwick didn’t owe me a commitment,” said Houghton. “He sent me a proposal, I reviewed it, it didn’t say Collingwood, I was happy with that.”
What the proposal, which was sent Jan. 18, 2011, did say was Bonwick’s company, Compenso Communications Inc., would identify local distribution companies in the province of Ontario that may present an opportunity for purchase.
Bentz also requested documentation showing Bonwick’s relationship with the mayor would not present a conflict of interest.
Bonwick provided a letter from Cooper on May 18, 2011, which, he testified, he drafted for her, then she put it on her letterhead and signed it.
The letter, argued Bonwick, represented proof of his disclosure.
The description of Bonwick’s work for PowerStream contained in the letter states his potential services could include advice in matters related to public relations, strategic planning, acquisitions, and media relations.
“He has also stated that these responsibilities could potentially incorporate advice related to the Town of Collingwood subject to certain conditions unfolding in the coming months,” states the letter.
McGrann challenged Bonwick’s claim the letter provided disclosure he would be working with PowerStream on the potential sale of Collus, a sale that had not yet been decided by the town.
“Common sense has to prevail,” said Bonwick. “I realize this is not a letter drafted by a lawyer, but how could you not interpret this as full disclosure based on writing it to a larger [local distribution company] when you’re talking about acquisitions … why would I approach my sister, the mayor, to disclose that I’m going to be working on an acquisition in Orangeville or Midland.”
McGrann pointed out that Cooper, during her testimony, said she didn’t know what acquisitions meant.
“Do you remember saying to your sister that your work with PowerStream would involve a Collingwood local distribution company?” asked McGrann.
“Clearly I must have or this letter would not have got signed,” said Bonwick. “There has to be some level of common sense here. We’re sitting here talking about the mayor of Collingwood sending a letter to the president and CEO of an outside local distribution corporation advising that I have spoke to her, that I am going to become engaged on matters that could potentially incorporate advice related to the town of Collingwood … We know that PowerStream is not interested in buying the public library and getting into a partnership with the soccer field. It’s specific to local distribution companies.”
McGrann asked if there was any more information provided, and Bonwick said he didn’t know how much more could have been provided.
“Is it fair to say you don’t recall the conversation?” asked McGrann.
“Fair to say,” said Bonwick.
His testimony was to continue with further examination by McGrann this morning beginning at 9 a.m.
