Mayor’s ethics in question

Laurena Weninger, Special to The Herald Tuesday, March 3, 2009 OSOYOOS

Allegations of conflict of interest against Osoyoos Mayor Stu Wells are going to be investigated further, after Osoyoos town council decided Monday to seek a comprehensive legal opinion on the matter. “In all honesty, I don‘t know where to go. I don‘t know what to say and do,” said Coun. CJ Rhodes at a committee of the whole meeting on Monday. “I don‘t even want to express an opinion at this time.” Council is trying to decide how to proceed regarding conflict of interest claims against Wells, which were received by a letter dated Feb. 18. Council is now looking for an opinion on the legitimacy of the claims, as well as information about who will pay for legal fees if this matter is forwarded to the B.C. Supreme Court. Rhodes and Coun. Michael Ryan were the only councillors at the meeting, in addition to Wells – the one at the centre of the accusations by a group calling themselves the Concerned Citizens of Osoyoos (CCOO). “It‘s a track record that is not a one-off,” said Jean Clarke, from CCOO.

It was during last fall‘s election that she started looking into the history of council motions, and she insists Wells should have excused himself from more than 20 of those decisions. Wells won the mayor‘s seat last November, after one term as councillor. He is retired from his previous occupation doing installation and repair for Telus, after 36 years. The CCOO is arming themselves with prior council minutes, copies of company ownership (Wells is listed as a director of Palmilla Properties Inc., along with Osoyoos‘ Michael Mortimer and Oliver‘s John Dimma), and a “flow chart of events” outlining their concerns. They are naming decisions made by council affecting Vista Norte Development Ltd. (also owned by Mortimer), Gateway Marine Limited (owned by Michael and Donna Mortimer) – and claiming that Wells has a direct business connection with the parties. They say Wells has “pecuniary” interest, and stood to gain from council‘s decisions – but they are also claiming that ultimately, because Wells is part owner of a development company, he shouldn‘t be allowed to vote regarding any development in the town. They also cite council‘s decision to extend sewer to the northwest part of Osoyoos, including the Willow Beach development as an issue, claiming a conflict because Wells‘ personal residence will also be serviced by the new system.

Wells is denying any conflict. “I am highly disputing the basic premise of the group,” said Wells at Monday‘s meeting. “This is very, very serious business. Some very serious allegations that I consider untruths.” He said the council will work through the issues surrounding the claims, but that people should just “cool it and take it as serious as it is,” and that there are laws against spreading such untruths. “I am taking these unfounded allegations and threats very seriously,” Wells stated in a written statement on Monday. “I am discussing with the police whether the attempt to use false accusations to pressure me to resign constitutes the criminal offences of uttering threats or blackmail. And I am discussing with legal counsel whether to proceed with a lawsuit in the Supreme Court of British Columbia against these people for defamatory libel.”
In a letter to the other councillors, he states, “It is difficult to respond to information that is inaccurate, fabricated, and completely false. These accusations come with absolutely no proof and make charges that make no sense.” He continues, “I find this a vile process, and wonder why council would even entertain meeting with this group.” He states there is no pecuniary contract, and calls the statement about a mortgage link to Palmilla and Mortimer “hogwash.”

The CCOO doesn‘t think it is hogwash. “It‘s got to do with justice to the people,” said Ray Vandenberg, from CCOO. He is working with Clarke and Rob Schuster to bring the alleged conflict to light. “You have Stu Wells and Mike Mortimer as shareholders of a company called Palmilla Properties,” Schuster said, adding that Mortimer owns Vista Norte as well. “We feel that Mr. Wells should not have voted on any issues involving Mr. Mortimer.” The Community Charter, which regulates municipal activities, states councillors must declare a direct or indirect interest that would prove to be in conflict with discussions or decisions. It also makes exception for certain things, including if the interest of the council member is an interest in common with electors of the municipality generally. Schuster himself is not without connection to Mortimer. According to an article in the Osoyoos Times of June 25, 2008, Schuster‘s participation on the town‘s finance committee was thrown into question, because of his own financial background. The committee‘s function is to review and make recommendations on the grant-in-aid applications the town receives each year. The article states Schuster declared bankruptcy in August of 2007, owing liabilities in the amount of $80,957 – and a number of Osoyoos residents lent Schuster money and never received repayment. Mortimer told the reporter he lent Schuster more than $30,000 for financial support the now-defunct Okanagan Sun newspaper.
But Schuster won‘t confirm if bad blood is behind the conflict of interest allegations, saying that this isn‘t about Mortimer, it is about Wells. “It‘s irrelevant to the issue,” he said. “I‘m going to make no comment on that issue. It‘s irrelevant.” Council will seek legal opinion, and attempt to deal with the matter as soon as possible, at a special council meeting.