The URL can be used to link to this page

Home My WebLink AboutCLD-16-04 Addendum C!iJ!JlJgron REPORT CLERK'S DEPARTMENT Meeting: COUNCIL Date: May 10, 2004 Report #: Addendum to Report CLD-16-04 File#: By-law #: Subject: APPLICATION FOR COMPLIANCE AUDIT - MAYOR JOHN MUTTON'S 2003 ELECTION CAMPAIGN RECOMMENDATIONS: It is respectfully recommended that Council approve the following: 1. THAT the Addendum to Report CLD-16-04 be received for information. Submitted by: CJ.~~L ~,-\l,-- Reviewed by: Franklin Wu, Chief Administrative Officer PLB*ct CORPORATION OF THE MUNICIPALITY OF CLARINGTON 40 TEMPERANCE STREET, BOWMANVILLE, ONTARIO L 1C 3A6 T 905-623-3379 F 905-623-6506 REPORT NO.: ADDENDUM TO REPORT CLD.16-o4 PAGE 2 of4 BACKGROUND Following the distribution of Report CLD-16-04, I received a second letter from Richard Ward, dated May 6th, 2004 (Attachment #1). In paragraph numbered 2 of his letter, Mr. Ward sets out his proposal for terms of reference and an additional ground for his application for the compliance audit. Ward's Proposed Terms of Reference Paragraph 2 (a) of Mr. Ward's letter dated May 6, 2004 is consistent with his application for a compliance audit dated April 26, 2004, which is discussed in Report #CLD-16-04. I have received a letter from Mr. D. Scott Collins, Controller, Cougs Investments Ltd. dated may 10, 2004 in which he advises that Cougs Investments Ltd. and Lawrence Glen Holding Limited have no common shareholders and are therefore not associated with one another (Attachment #2). In paragraph 2 (b), Mr. Ward adds to the ground on which his application of April 26, 2004 for a compliance audit was based by asking that the audit include the value of advertising which he alleges was not provided equally to him and Mayor Mutton by Rogers Cable and Metroland, respectively. Section 66(1) of the Municipal Elections Act, 1996 defines "monies, goods and services given to and accepted by or on behalf of a person for his or her election campaign" to be "contributions". Section 71 (1) of the Act provides that a contributor shall not make contributions exceeding a total of $750.00 to anyone candidate in an election. Section 66(2) of the Act sets out rules which apply in determining whether an amount is a "contribution" for the purposes of the Act. Section 66(3) provides for the determination of the value of goods and services which qualify as "contributions" under the Act. Sections 66(2) and 66(3) read as follows: "66 (2) Contributions - rules Without restricting the generality of subsection (1), the following rules apply in determining whether an amount is a contribution: 1. The following amounts are contributions: i. an amount charged for admission to a fund-raising function, ii. if goods and services are sold at a fund-raising function for more than their market value, the difference between the amount paid and market value, iii. if goods and services used in a person's election campaign are purchased for less than their market value, the difference between the amount paid and market value, and iv. any unpaid but guaranteed balance in respect of a loan under section 75. I . REPORT NO.: CLD.16.04 ADDENDUM PAGE 3 OF 4 2. The following amounts are not contributions: i. the value of services provided by voluntary unpaid labour, ii. the value of services provided voluntarily, under the person's direction, by an employee whose compensation from all sources for providing them does not exceed the compensation the employee would normally receive for the period the services are provided, iii. an amount of $10 or less that is donated at a fund-raising function, iv. the value of political advertising provided without charge on a broadcasting undertaking as defined in section 2 of the Broadcasting Act (Canada), if, A. it is provided in accordance with that Act and the regulations and guidelines made under it, and B. it is provided equally to all candidates for office on the particular council or local board, v. the amount of a loan under section 75. Section 66(3) Contributions - Value of goods and services The value of goods and services provided as a contribution is, (a) if the contributor is in the business of supplying these goods and services, the lowest amount the contributor charges the general public in the same market area for similar goods and services provided at or about the same time; (b) if the contributor is not in the business of supplying these goods and services, the lowest amount a business providing similar goods and services charges the general public for them in the same market area at or about the same time." Mr. Ward's position seems to be that Mayor Mutton's financial statement for the 2003 Election should have included the value of what he describes as a "5 minute info-mercial continuously run" by Rogers Cable respecting Mayor Mutton which was denied to Mr. Ward. In addition, Mr. Ward contends that Metroland published stories respecting Mayor Mutton and did not publish stories respecting Mr. Ward and that Mr Ward's press release was "run after about 14,000 votes had been mailed". The Municipal Elections Act, 1996 does not regulate the length. content or timing of articles, opinions and stories that may be broadcast or published by cable television or a newspaper. A compliance audit under the Act cannot be granted on the ground that Mr. Ward objects to the Rogers Cable broadcasts and Metroland's stories in the 2003 elections unless they qualify as "contributions" to Mayor Mutton's 2003 election campaign finances under Section 66(1) of the Act. REPORT NO.: CLD-16-04 ADDENDUM PAGE40F4 In his letter dated May 6, 2003, Mr. Ward does not provide any evidence, nor is any evidence otherwise available to me that Rogers Cable's broadcasts and Metroland's publications were "given" to and "accepted by or on behalf of Mayor Mutton" for his 2003 election campaign finances. Without evidence of a gift by Rogers Cable or Metroland and an acceptance of that gift by or on behalf of Mayor Mutton, the broadcasts and publications do not qualify as "contributions" as provided in Section 66(1) of the Act. Unless the value of Roger's Cable broadcast or Metroland's publications were to qualify as "contributions" and each exceeded the total of $750 limit for contributions to Mayor Mutton's 2003 election campaign finances, and unless they were to comprise gifts which were accepted by or on behalf of Mayor Mutton, there would not be a contravention of the Act relating to election campaign finances. The result would be that a compliance audit could not be granted on this ground. 2000 ELECTION In paragraph numbered 3 of his letter dated May 6, 2004, Mr. Ward requests an audit of four contributions made to Mayor Mutton's campaign finances in the 2000 election. As you know, the Ontario Superior Court ruled that a compliance audit could not be ordered by Council on this ground since Mr. Ward's application for it was made after the expiry of period provided in the Municipal Elections Act, 1996. Council could not grant Mr. Ward's renewed application for a compliance audit respecting the 2000 Election on the ground set out in his letter dated May 6, 2004. ATTACHMENT III 'O'1M~Yffli1>.~tl td.~~:22 3709 REGIONAL RD.#9, ORONO ,ONTARIO LOB IMO MAY 6,2004. TO: PATTI L. BARRIE ELECTIONS RETURNING OFFICER AND CLERK FOR THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON AND THE COUNCIL. 1. REQUEST TO SPEAK TO COUNCIL AT THE MEETING OF MAY 10,2004. 2. TERMS OF REFERENCE FOR COMPLIANCE AUDIT REQUESTED. (a) JOHN MUTTON'S 2003 LIST OF CONTRIBUTORS SHOWS TWO $750. CONTRIBUTIONS FROM DEER CREEK GOLF COURSE I.COUGS INVESTMENTS 27 BUGGEY LANE AJAX LIS 4S7 2. LAWRENCE GLEN HOLDINGS 27 BUGGEY LANE AJAX LIS 4S7 AUDIT TO CONFIRM VIOLATION TO SECTION 72 of MUNICIPAL ELECTIONS ACT SPECIFIED IN SECTION 256 )F INCOME TAX ACT. PROPERTY TAX SUMMARY SUPPLIED APRIL 26,2004 WITH CORPORATION PROFILE REPORTDEMONSTRATES VIOLATION. (b) SECTION 66 OF M.E.A. THE VALUE OF POLITICAL ADVERTISING 66 (2) S.s. 2. ,iv B advertising not provided equally by ROGERS CABLE. 1. v~~ue of 5 minute info-mercial continuously. ruh for Mutton and Denied to Ward. METROLAND I Stories for Mutton and not for WARD. 2. Ward'S press release run after about 14,000 votes had been mailed. DETERMINE VALUE OF PREFFERANCIAL ADVERTISING NOT PROVIDED EQUALLY. 3. AUDIT OF THE FOUR DEER CREEK GOLF COURSE CONTRIBUTIONS IN THE 2000 ELECTION DETERMINING THAT MUTTON VIOLATED THE DECLARATION OF QUALIFICATIONS THAT IS SUBJECT OF DIVISIONAL COURT APPLICATION 31/04. I,WOULD BE PLEASED TO HELP CLARIFY MY CONCERNS LISTED ABOVE. From: 05/08/200420:51 #280 P.002 . . ATTACHMENT 112 COUGS INVESTMENTS L TD 21 Buggey LanG Ajax, Ontario, LiS 4S1 Tel: (905) 427-7703 Fax:(905) 427-1611 By Fax: 905-623-6506 May 10, 2004 Ms. Patti L. Barrie Municipal Clerk Municipality of Clarington 40 Temperance Street Bowmanville, Ontario, L 1 C 3A6 Re: Application for Compliance Audit - Mayor John Mutton Dear Ms. Barrie: Please be advised that Cougs Investments LId and Lawrence Glen Holdings Limited have no common shareholders and are therefore not associated to one another. If you have any questions or require additional explanation please do not hesitate to contact me. Yours truly, COUGS INVESTMENTS L TO Per: . Scott Collins C.A. Controller CC. All members of Clarington Council