Councillors appoint one of their own to board

An elected official has been appointed to the boards of two development corporations owned by the City of Powell River.

Council voted at the February 21 meeting to appoint Councillor Debbie Dee to the Powell River Waterfront Development Corporation (PRWDC) and the Powell River Power Development Corporation (PRPDC). Marie Claxton, city clerk, reported she had received a letter from Owen Roberts who resigned as a director of PRWDC.

The motion also appointed Dave Douglas, the city’s director of financial services, and Tor Birtig, director of infrastructure, to the PRPDC board.

Councillor Maggie Hathaway asked if the city had received a legal opinion about appointing Dee to the corporations. Mac Fraser, chief administrative officer (CAO), said that question had been asked and it was confirmed. He referred to a recent BC appeal court decision, called Schlenker v. Torgrimson, which ruled that elected officials who serve as directors of non-profit societies may have a conflict of interest if the society receives a monetary benefit from the local government. Fraser said that judgement didn’t relate to this situation because “this is a municipal development corporation, it’s not an external group.”

Councillor Chris McNaughton asked if Dee would be restricted in voting on matters relating to the development corporations.

“That is expected,” Fraser replied.

Councillor Russell Brewer said he wasn’t comfortable supporting the motion. “A number of questions have been raised recently regarding appointments to corporations and what that might mean,” he said. “It’s not just the recent appeal decision, but there’s also information about best practices for appointments to municipal corporations. I’d like to get more information before voting.”

McNaughton agreed there was some uncertainty surrounding the issue, but he appreciated the advice of the city’s CAO. “I think each day we’re getting a new memo concerning this matter,” he said. He asked if it would be advantageous to wait for a few weeks.

Fraser said he wouldn’t be bringing any more information to council. “Not to take away from Councillor Brewer’s point about whether the corporation should exist, I can confirm that procedurally it’s proper because both development corporations, the one that’s been long-standing and the new one, are approved and created as per the direction of the Inspector of Municipalities,” he said. “We have worked with our legal team and they advise us that the way we are proceeding is appropriate for a legal mechanism.”

Mayor Dave Formosa said if at some point Dee feels uncomfortable, she can resign, as any director could.

Brewer was the only councillor to vote in opposition to the motion.

During question period, Fraser confirmed that the legal opinion the city received was that an appointment of an elected official to a development corporation board “could be appropriate” and an elected official would not have a conflict of interest.

When asked why he said a councillor would have to declare a conflict, meaning he or she could not discuss or vote on issues pertaining to the development corporation, Fraser said, “they will not be in conflict, is the advice received, or I would not have allowed the chance of the appointment of an elected official to occur, to be considered, without strong advice to the contrary.”

However, Fraser also said, in light of the recent appeal court decision, “we’re taking a precautionary approach and my advice to council is that, as has been the norm for many years, when in doubt, recuse themselves.”

In conversations with Dee, Fraser said, “it was thought appropriate to suggest that she recuse herself from council decisions, simply as a precautionary approach. We don’t think it’s a conflict at all, but perception is important in conflict of interest. So my suggestion is that she recuse herself just to be absolutely sure.”

PRWDC, established in 2003, entered into a limited liability partnership with Tla’amin (Sliammon) First Nation and Catalyst Paper Corporation in 2006 to form PRSC Land Developments Ltd.

PRPDC is a new partnership with Tla’amin formed to pursue the development of a run-of-river hydroelectric project on Freda Creek.