VARNA – A recently-denied request for a report showing the cost of a compliance audit of Bluewater Mayor Bill Dowson's election expenses was questioned at the Jan. 9 council meeting.

Varna resident Bev Hill raised the issue, asking in a delegation at the meeting why council would not want to know the cost of the audit, and why council would not want ratepayers to know.

According to the minutes of the Dec. 19 council meeting, Deputy Mayor Paul Klopp made a motion asking that staff prepare a report showing the total cost of the compliance audit, but the motion was lost.

Though councillors stated the belief that the vote was recorded, it was not listed as a recorded vote in the minutes.

As previously reported, Dowson's election expenses were audited after a request from former Bluewater councillor and 2010 mayoral candidate Jim Fergusson.

Auditors suggested some of Dowson's actions were "apparent contraventions," "financial reporting contraventions," or "technically a financial reporting contravention" of the Municipal Elections Act.

After reviewing the findings, a compliance audit committee decided to not pursue legal action against Dowson because it did not feel the contraventions were significant enough to warrant prosecution, and because the committee felt it was not in the best interest of the public to proceed.

The committee also did not feel the contraventions harmed other candidates or the public, and did not feel the contraventions were done intentionally.

Hill drafted a letter to council suggesting the compliance audit had completely exonerated Dowson from any intentional wrongdoing.

He wrote that while Fergusson was within his rights to request an audit, the process has "cast a negative reflection not only on Mayor Dowson but also on our entire council and our municipality."

Hill went on to state that as a ratepayer he expects the total cost of the audit to be made public, and requested to be informed of the action to be undertaken to recover those costs.

In an e-mailed statement to the Times-Advocate, Fergusson said, "The great thing about Canada is we all can voice our opinion as Mr. Hill has done.

"However, he does not own the facts: Mr. Dowson was not exonerated as Mr. Hill stated ....  The Bluewater Audit Committee simply decided not to have the municipality prosecute the mayor in a court of law.

"The residents of Bluewater should not be responsible for the audit costs and I will continue to stand up against unlawful actions by politicians. I always thought that the person who breaks the law gets punished and pays costs, not the person who calls the police."

Dowson declared a conflict of pecuniary interest before Hill's delegation, leaving Klopp as chairperson until the delegation was over.

Interim Bluewater chief administrative officer (CAO) Heather Adams sketched out the compliance audit process, which she said is outlined in the Municipal Act.

She noted that in the case where no contraventions of the Municipal Elections Act are found, the compliance audit committee can consider whether costs can be attributed to someone else.

She said in the instance where contraventions are identified, whether or not the committee decides to refer the audit to a legal proceeding, the municipality pays the cost of the audit.

She noted in the case of Dowson's compliance audit, the auditors did find contraventions but the compliance audit committee decided not to proceed with legal proceedings.

“That’s the end of the process, as far as the municipality is concerned," Adams said. "We pay the costs, stop. There’s always an opportunity for people to take private legal action.”  

Hill then asked about the lost motion for a staff report about the cost of the audit.
Klopp said he voted in favour of the motion and asked other councillors if they wanted to speak to the issue.

Zurich Coun. Janisse Zimmerman said she was for finding out the costs, saying the compliance audit was a new procedure and she thought it was important to know what this kind of procedure costs.

Klopp asked Bluewater treasurer Ansberth Willert about bills from the audit process, and Willert said costs of the audit are tracked in the general government section of Bluewater's financial statements.

"You will be able to see what we paid out in expenditures as a result of the election audit, because there are no other election expenses this year,” she said.

Hill asked later if it's up to the compliance audit committee to decide if there should be an effort by the committee to recover costs.

Adams said this was the case only in two instances: if the committee deems the original complaint to be frivolous, or if the auditor finds no contraventions.

Hill asked if this precludes the municipality from attempting to recover the expenses, and Adams said there is no authority for the municipality to do so.

Hill said he took from that explanation there are no options available for the municipality to recover the costs, and Adams said that's correct.

Hill said the issue raises ongoing concerns about transparency and accountability, referencing the councillors who spoke about why they voted the way they did on the motion for a staff report.

“I appreciate those that came forward and indicated how they voted and I guess I have some concerns ... with regards to both transparency and accountability with those that felt either unable or certainly reluctant to indicate,” he said.

Hill went on to suggest the ward system in Bluewater has created a "territorial attitude" of those elected, and is proving to be counter-productive.

He said there are regular examples of resources, both human and capital, that are being wasted because of territorial biases created by the ward system.

Hill added the main role of council is to assess, collect taxes and deliver services.

“The amalgamation of this municipality has reduced the efficiency of that process, and I would suggest that the ward walls must come down or we must investigate the de-amalgamation process,” he said.

Hay West Coun. John Gillespie later asked Hill if he was prepared to share examples with council.

"Tonight? No," Hill said, adding that he was prepared to share them with council at some point.

Gillespie said if Hill feels there are such types of situations occurring, it would be useful for him to tell council, so council can investigate.

Bayfield Coun. Geordie Palmer asked later if Hill as a ratepayer has the right to ask for a complete summary of the costs of the compliance audit.

Adams said Hill can ask, and council can decide, though she noted there is a standing resolution that staff are not to prepare a report on the matter.

Responding to another question from Palmer, Adams said Hill could ask for a copy of each and every bill under freedom of information laws.

"I don’t understand why council would not be encouraging staff to prepare a report that would identify for ratepayers what this compliance audit cost," Hill said later in the meeting.

After further discussion, Hill said he hoped council would give serious consideration to putting the auditors' report – which lists findings from the investigation of Dowson's election expenses –  on the municipal website.

Zimmerman moved that the audit report be placed on the website, and the motion passed.