Correspondence from CRD Re: Conflict of Interest - Attendance at CRD Budget Meeting

Re: Conflict of Interest — Attendance at CRD Budget Meeting March 27, 2013

Dear Ms. Jones:

On January 11, 2013, the BC Court of Appeal overturned the BC Supreme Court decision in Schlenker v. Torgrimson, which had been a decision alleging that members of the Salt Spring Island Local Trust Committee were in conflict because of their participation on the boards of directors of not for profit organizations. The Court found that there was a pecuniary conflict of interest which would result in the disqualification of an elected official from public office.

In light of this decision and as it relates to the CRD budget process, staff have reviewed both the appointments of CRD Directors and Alternate Directors made by the CRD Board and by the municipalities to societies and boards to determine where a possible conflict of interest might exist. While it is the individual responsibility of each Director or Alternate Director to declare a conflict of interest, based on the information we have gathered, there is a possibility that both your CRD Director and Alternate appointees, Mayor Hill and Councillor Screech, may have a conflict of interest as it relates to the CRD budget.

In order to ensure your municipality is represented at the March 27, 2013 Board meeting when the CRD 2013-2017 Financial Plan Bylaw will be deliberated, your Council may wish to consider appointing another alternate in the place of your current alternate member. Section 786 of the Local Government Act states that "the Council of a municipality may appoint a council member as an alternate director" and this alternate director holds office until another council member is appointed as a replacement and the Corporate Officer is advised of the new appointment in writing.

The CRD has asked the Province to provide relief to local governments by addressing this issue through a regulatory and legislative response although it is unlikely a regulation will be brought into effect prior to the budget discussion on March 27, 2013.

Thank you for your prompt attention to this matter. If you have any questions regarding the above, please contact me at 250-360-3128.

Yours sincerely,

Sonia Santarossa Manager, Legislative Services

cc: Kim Anema, CAO Mayor and Councillor