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HomeMy WebLinkAboutMinutes - May 18, 2011 Election Compliance Audit Committee Citq 00 2010 Election Compliance Audit Committee PIO<IE Meeting Minutes Wednesday, May 18, 2011 6:00 pm - Council Chambers Chair: Paul Jones Present: Joseph Brown Donald Hudson Paul Jones Also Present: Debbie Shields, City Clerk John Paul Newman, Clerk I Renee Michaud, Acting Coordinator, Records & Elections Debbie Shields, City Clerk, opened the meeting and explained the process to be followed. The City Clerk called for nominations for a Committee Chair for the 2010 Election Compliance Audit Committee. Joseph Brown nominated Paul Jones to be the Chair. No other nominations were put forward. Moved by Joseph Brown That Paul Jones be the Chair for the 2010 Election Compliance Audit Committee. Carried (1) Disclosure of Interest No disclosures of interest were noted. (11) Delegations 1. David Steele -Applicant Filed application regarding Ward Two Candidate Douq Dickerson's Financial Statement David Steele. 966 Timmins Garden, Pickering, appeared before the Committee and stated that the financial statements filed on March 24, 2011, gave him reasonable grounds to believe that Doug Dickerson, local Councillor, Ward 2 had contravened a provision of the'Municipal Elections Act and requested that a compliance audit be carried out. Mr. Steele stated that his concerns were based on the following: 1 2010 Election Compliance Audit Committee Meeting Minutes Wednesday, May 18, 2011 6:00 pm - Council Chambers Chair: Paul Jones a) Form 4 - declaration of non-exempted expenses in excess of the allowable amount established by the City Clerk. b) The candidate failed to declare any inventory of signs from two previous elections, which were used during the 2010 election. c) The amount of dollars declared for a voting day appreciation party appears excessive and requires further clarification. d) The candidate claims to have raised $39,111 in addition to the surplus of $10,593.05 returned from the 2006 Election for an election that was limited to $19,154.20 and report a deficit of ($1,014.00). This does not appear reasonable and requires further clarification. Mr. Steele provided a list of area candidate's financial statements for the Committee to review as a comparison to Mr. Dickerson's financial statement. Mr. Steele noted that he had called the Ministry of Municipal Affairs and Housing to clarify information on the maximum campaign limit and was told that the limit is the limit, and no one should exceed it. Mr. Steele requests that the Audit Compliance Committee further investigate the excessive expenses reported for the voting day party. He felt that information should be provided on where the voting day party was held and a detailed listing of expenses. Mr. Steele also noted that in reviewing websites from surrounding municipalities, no other candidates in the 2010 municipal election reported such expenses and noted that the Mayor of Pickering's expenses for the voting day party were approximately $4,000. Mr. Steele requested that a complete audit of all expenses listed in the financial statement be completed as per the requirements of the Municipal Elections Act. Mr. Steele provided copies of his presentation to the Chair of the Committee. Members of the Committee asked questions of Mr. Steele for clarification purposes. 2 citli off! _ 2010 Election Compliance Audit Committee Meeting Minutes Wednesday, May 18, 2011 6:00 pm - Council Chambers Chair: Paul Jones 2. Ian Cumming -Applicant Filed application regarding Ward Two Candidate Doug Dickerson's Financial Statement Ian Cumming, 1899 Fairport Road, Pickering, appeared before the Committee and noted that he is a resident of Ward 2, and also ran in the last election as a candidate for Ward 2 against Mr. Dickerson. He noted that he filed an application for a Compliance Audit on May 4, 2011, requesting that the committee undertake an audit into the financial statements filed by Mr. Doug Dickerson as his election expenses appear to be in excess of the limit stated by the Clerk. The 2011 Election manual states that if a candidate inadvertently, after due diligence, is in fact in contravention of the act due to exceeding his spending limits, then a complete audit must be conducted. He stated that the total expenses reported in Box C are $33,331, which is $14,176.80, or 74%, over the voting ward limit. Mr. Cumming stated that the financial statements of one hundred and nine candidates running in the election as either Mayor, Regional Council, or City Council in Durham Region were examined and none of them exceeded their spending limit. In the majority of cases, candidates were substantially below the spending limit supplied by the Clerk. Mr. Cumming also stated he was concerned with the voting day party/ appreciation notices, where the funds declared ($16,094.00), seem out of kilter for a City ward and almost three times that spent by the elected Mayor of the City of Pickering. He also stated that he had been informed that Mr. Dickerson did not have a campaign party and that Mr. Dickerson was at the same party as Mayor Ryan. Mr., Cumming stated that Mr. Dickerson's voting day party went from $9,976 in 2006 to over $16,000 in 2010. Mr. Cumming stated that expenses were his main issue of concern but noted that the number of signs reported in the financial statement seemed low and noted that no previous election signs from 2006 were noted. He stated that based on his recollection it seemed like Mr. Dickerson had signs all over and felt the cost reported was insufficient. Mr. Cumming stated that he feels strongly that a compliance audit is the best way to proceed before going to judicial review. 3 ~7 cis 2010 Election Compliance F:T839'-1tr I~. Audit Committee Meeting Minutes Wednesday, May 18, 2011 6:00 pm - Council Chambers Chair: Paul Jones Mr. Cumming provided financial statements for other candidates so the Committee could compare them to Mr. Dickerson's. Members of the Committee asked questions of Mr. Cumming for clarification purposes. 3. Jolanta Duszak -Applicant Filed application regarding Ward Two Candidate Doug Dickerson's Financial Statement Jolanta Duszak, 1143 Gloucester Square, Pickering, appeared before the Committee and stated that she recently got more involved in Pickering politics due to problems with accountability within the City and at the Regional level. She noted that she decided to review the municipal election financial statements for all municipal candidates and noticed that Doug Dickerson was the only one over the limit. As a concerned resident, she is requesting that an audit be conducted into his financial statement to determine if the expenses were legitimate. 4. Doug Dickerson Candidate Ward Two Doug Dickerson and Marshall Green, Solicitor, appeared before the Committee and noted that the Municipal Elections Act is subject to interpretation. Mr. Green stated that the limit for expenses is determined by the Clerk but there is considerable ambiguity in reporting on the financial statement form. He noted the Municipal Elections Act lacks detail with genuine,implications and noted that these are the statements that are being challenged. Mr. Green stated that the act requires that all candidates file audited financial statements by a certain date. He stated that the Auditor for Mr. Dickerson placed $14,176.80 in Box C of the Form 4 which once transferred to the front of the form showed Mr. Dickerson over his spending limit. Mr. Dickerson noted that he felt the Auditor put.the expenses in the wrong section and if they had been placed in a different area he would not have been over his spending limit. Mr. Green noted that Section 76.2 prohibits any expense outside of the election campaign period, which starts on the day the candidate files a nomination and ends on December 31 of the election year. Section 76.4 states that the spending limit goes from the day the candidate files a nomination form to voting day and noted that Mr. Dickerson did not go over 4 citq vo 2010 Election Compliance Audit Committee Meeting Minutes Wednesday, May 18, 2011 6:00 pm - Council Chambers Chair: Paul Jones his spending limit before Election Day, Mr, Dickerson incurred the expenses in question after Election Day. Mr. Green also noted that Section 67.2, paragraph 6, reads that the cost of the voting day party held after Election Day is not to be included as an expense. Mr. Green stated that Mr. Dickerson's auditor filed the financial statements based on his best interpretation of the Municipal Elections Act. Mr. Green also noted that Mr. Dickerson did miss reporting on 43 signs from a previous election that he used in 2010 which had a total value of $728.25 and noted that he would still be under the spending limit when these signs are added. Mr. Green stated that the ambiguity of the Act and the changes to this legislation which were approved for the 2010 Election may have very serious consequences for Mr. Dickerson, including legal expenses or possible removal from office. Mr. Green recommended that the committee dismiss the applicants' complaints and not pursue with an audit due to the ambiguity in the act. Councillor Dickerson stated that he did not set out with malicious intent when he filed his financial statement with his auditor; he feels that the Municipal Elections Act is not clear. Members of the Committee asked questions of Mr. Dickerson for clarification purposes. (III) Matters for Consideration 1. Application for Compliance Audit on Doug Dickerson -Ward Two Candidate Financial Statement Submitted by David Steele 2. Application for Compliance Audit on Doug Dickerson -Ward Two Candidate Financial Statement Submitted by Ian Cumming 3. Application for Compliance Audit on Doug Dickerson -Ward Two Candidate Financial Statement Submitted by Jolanta Duszak 5 cit °q 2010 Election Compliance R=`Audit Committee PICKE Meeting Minutes Wednesday, May 18, 2011 6:00 pm - Council Chambers Chair: Paul Jones Moved by Joseph Brown 1. That the request for a Compliance Audit review of-Doug Dickerson's 2010 Election Finance Statement by David Steele, Ian Cumming and Jolanta Duszak be granted; and 2. That the 2010 Election Compliance Audit Committee meet next week on the appointment of an Auditor. Carried (IV) Adjournment The meeting adjourned at 8:05 pm. 6