Fourteen Powell River residents have filed a petition in the Supreme Court of British Columbia asking to have five City of Powell River elected officials disqualified from office.
The petitioners are Ian Orchiston, David Harris, Gordon Crawford, Bradley Wilson, Kelly Hamilton, Rick Perin, William Cornwall, John Goes, Al Drummond, Vincent Hoet, Margaret Wilson, Clark Banks, Wilf Rennecke and Jack Dice.
The elected officials named in the petition are Mayor Dave Formosa and councillors Debbie Dee, Maggie Hathaway, Jim Palm and Chris McNaughton. As well, the city is named.
Although he is not one of the petitioners, George Orchiston, a Powell River resident, presented a copy of the court document to Formosa, Dee and Palm just before the December 5 council meeting, saying to each one, “You’re served.”
According to the claim of the petitioners, they are seeking: a declaration that the elected officials voted for two resolutions and are personally liable for $63,000 in loans that were made in contravention of the Community Charter; an order requiring the elected officials to reimburse the city $63,000; a declaration disqualifying the elected officials from holding local government office with the city until September 15, 2014; and an order for costs for the petitioners’ applications.
One petitioner, Cornwall, told the Peak he didn’t know too much about the petition and he didn’t know he was taking elected officials to court. “I’m not going to court,” he said. “I signed it without even knowing why. There were a bunch of guys standing and talking and the petition went around and I just signed it.” Cornwall also said the Peak should speak to Banks, because he had the petition.
Harris said the Peak should speak to George. “We’re trying to speak with a unified voice and he’s our spokesman,” Harris said.
The other petitioners either did not return the Peak’s phone call or said they had no comment because the issue was before the courts.
On November 4, George wrote a letter that mirrored the information in the petition and asked Formosa to vacate his office. When asked why he wasn’t one of the petitioners, George referred to a section of the Community Charter which states an application to the Supreme Court may only be made within 45 days after the alleged basis of disqualification comes to the attention of any of the electors bringing forward the application. “Potentially, there could be an argument that I knew for longer than 45 days,” he said. “I don’t think it’s a solid one, because I didn’t know. That’s why I kept asking questions.”
When asked if he was planning on running in the 2014 local government election, George said it was not his goal to hold public office on council. “I would prefer young people in town step up,” he said. “That’s what I’d prefer, young people with new ideas.”
The resolutions referenced in the petition were passed on September 15, 2011, when all the elected officials named in the petition were city councillors. The resolutions authorized loans to Powell River Waterfront Development Corporation (PRWDC).
PRWDC was incorporated in 2003, with the city as the sole shareholder. In June 2006, the council-of-the-day authorized a $51,000 shareholders loan to PRWDC. In February 2008, council authorized a $12,000 shareholders loan to PRWDC. The 2006 and 2008 motions fall outside of a three-year period of disqualification stipulated in the Community Charter.
One of the 2011 resolutions authorized the city to extend the period for repayment of the 2006 loan for a further five years. The other 2011 resolution authorized a $12,000 loan to PRWDC.
At the time all the motions were passed, the city did not have a partnering agreement with PRWDC, as stipulated by the Community Charter. The city had received a legal opinion from Woodward Walker in 2006 advising that it did not need a partnering agreement with PRWDC.
On November 4, the city held a press conference during which it announced steps it had taken to correct the mistake. PRWDC repaid the loans to the city in July, a total of $75,000, using a line of credit from a bank; council rescinded the resolutions authorizing the original loans to PRWDC; and the city applied to the province for a Municipalities Enabling and Validating Act (MEVA) amendment to correct the error.
During the December 5 council meeting, councillors voted to release a memorandum from the city’s lawyer, Donald Lidstone, to Julian Paine, the province’s assistant deputy minister for local government, which summarized a telephone conversation about the issue.
The assistant deputy minister is responsible for forwarding the MEVA amendment to the Legislature, explained Mac Fraser, the city’s chief administrative officer. “[Paine] identified that the financial liability has been resolved and it is his professional opinion that it is not worthy to proceed forward to the Legislature. By way of this memorandum from our lawyer, it’s representing the fact that he believes that all efforts have been successfully made to correct this error in accordance with procedure.”
The petitioners’ lawyer, John Rogers of Victory Square Law Office LLP, did not return the Peak’s phone call. According to its website, Victory Square is one of Western Canada’s leading union side labour law firms, providing advice and assistance to unions and workers.
