COUNCIL DECIDES NOT TO PURSUE ALLEGATIONS AGAINST WELLS

OSOYOOS TIMES-March 25, 2009- By Karen Knelsen Osoyoos Times

Osoyoos town council voted unanimously on March 20 not to pursue any action against Mayor Stu Wells based on conflict of interest allegations raised last month. A special public meeting publicized legal advice the Town received on the matter. In mid-February, a group calling themselves the Concerned Citizens of Osoyoos (CCOO), led by Ray Vandenberg, Jean Clarke and Robert Schuster, brought forth allegations of conflict of interest against Wells, all referring to 13 different matters he voted on as councillor between 2006 and 2008. Barry Romanko, the Town’s chief administrative officer, said that, based on legal advice sought by the Town, there is no evidence that the mayor, or any other parties, benefitted financially in voting matters regarding Vista Norte Development Ltd. The development group is owned by Michael and Donna Mortimer who own shares in a separate company called Palmilla Properties with Wells. CCOO alleged that Wells was in conflict when he voted on any developments being applied for by Vista Norte. Wells has said even though he owns shares in Palmilla Properties with the Mortimers, he has never benefitted from Vista Norte’s dealings and he was not yet sworn into office when council voted on a Vista Norte application for a marina in 2005.

They also claimed he was in conflict when he voted on development applications for other projects including the Watermark Beach Resort and the Indigo condominium project. Clarke said the reason her group believes Wells was in conflict when voting on projects not related to Vista Norte is because Wells is a developer. “He has an overall interest in development in Osoyoos,” Clarke said. “That’s why those issues were mentioned. This is how we saw it, it showed a pattern.” It was also alleged that Wells was in conflict whenever he voted on the proposed Northwest Sewer Project because he is a one-third owner of a house located in the area the project would affect. This was the only allegation the Town’s lawyers identified as having any possible grounds for conflict of interest. Romanko said the lawyers reported that since the property Wells shares title on could gain value from the connection of the Town’s sewage system to the northwest shore of Osoyoos Lake, he may have been in conflict by voting on it. But the lawyers noted that Wells sought legal advice on the matter of conflict before attending the vote on the project and the lawyers felt that seeking the advice proves a show of good faith, and is enough to excuse him from any possible conflict claims. Romanko also said the lawyers’ report noted that since Wells was serving as councillor during the time the votes in question were made, and that since he now serves as mayor and there has been an election in the interceding time, the allegations are now irrelevant.

It was Coun. Margaret Chadsey who made the motion not to proceed with forwarding the allegations to the B.C. Supreme Court and Coun. C.J. Rhodes seconded the motion. “I was elected as a councillor to do something very simple for this town, and that’s to do the right thing,” Rhodes said. He added that he was happy with the results of the legal opinions, but expressed displeasure at the amount of money and time spent on a matter apparently having no legal grounds. Chadsey also spoke, expressing hope the matter is behind them. “The role of council is multifaceted and we have so much work to do. This takes up too much of our time,” she said. “I hope that this is the end of it.” Although Coun. Ted Cronmiller was absent from the special meeting, the three councillors present plus Wells were enough to make up the necessary two-third majority for the vote.

In Romanko’s opening statements he explained the Community Charter included sections which allowed Wells to sit in on the meeting’s deliberations and cast his own vote. However, Wells voluntarily excused himself from the mayor’s chair and Coun. Michael Ryan, as acting mayor for the month of March, chaired the meeting. Romanko also explained that a group of at least 10 Osoyoos residents could continue to pursue the conflict allegations on their own. Clarke, who was present at the special meeting with Schuster and Vandenberg to hear council’s decision, said that despite the legal advice heard on Wells’ good faith actions in the matter of the sewage project, he did not follow due process. She said she was disappointed with council’s decision and added that Wells, instead of seeking legal advice beforehand, should have recused himself from matters in which he was concerned about potential conflict of interest, not the other way around. According to the minutes of council meetings, Wells at no time recused himself from any matters before him. Schuster took exception to Rhodes’ concern over money spent by the Town to investigate the matter, saying it cost his group only a little over $1,000 in legal fees. He also said their legal opinions directly contradicted those received by the Town. Clarke said the group did their homework and wouldn’t have gone to the Town if they weren’t sure of their grounds. But Vandenberg said the group won’t be pursuing the matter further. “I’m satisfied with the outcome for the simple reason he knows now he has to watch his step,” Vandenberg said. “I’m not prepared to spend a whole bunch of money to take it to supreme court. “I still believe we would win but it’s not good for the town.” Vandenberg said Wells slandered the group by calling them liars and asked for a public apology.