Skip to content

Woodlands County councillors still waiting for legal opinion about conflict of interest accusation

Administration again directed to seek a legal opinion
David Kusch cropped
Woodlands County Anselmo Coun. David Kusch was accused by a fellow councillor of having a conflict of interest when he participated in a Feb. 4 vote on a new road-use agreement policy.

BARRHEAD - Was Woodlands County’s newest councillor David Kusch in a conflict of interest when he took part in a discussion on whether or not to delay implementation of a new policy regarding road use agreements and permits during their Jan. 7, 2020 meeting?

To answer that question, councillors instructed administration during their Feb. 4 meeting to get clarification from their legal counsel as to whether Kusch’s employment with Millar Western represented a conflict of interest.

Two weeks later, councillors are no closer to an answer.

“It was my understanding that we were going to get a legal opinion about if there was a violation of the (Municipal Government Act) over pecuniary interest,” Whitecourt Central Coun. Ron Govenlock said at the Feb. 18 Fort Assiniboine council meeting. “What have we found out?”

Acting chief administrative officer (CAO) Andre Bachand said CAO Gordon Frank had not yet done so, though it was his opinion that because the Request for Decision (RFD) did not specifically mention Millar Western, there was no conflict.

Govenlock again asked if Frank had sought a legal opinion, as directed by councillors on Feb. 4. Bachand reiterated that to his knowledge he had not.

“I want to see that legal opinion in writing so I can make sure the facts that are being presented reflect ... what happened during the council meeting,” Govenlock said. “It was my understanding that we were going to review it before the whole [log hauling] season was lost.”

Councillors then redirected administration yet again to seek a legal opinion.

Background

Back in February 2019, Woodlands County council approved a revised road-use policy that would impose a $25 fee for companies entering into a road-use agreement with the municipality, as well as a $15 permit fee for all overweight and over-dimension trucks.

The new fees were in response to the numerous issues that have arisen in recent years with companies utilizing county roads for extensive log hauls. The old road-use agreements didn’t have provisions to let the county actually enforce diligent use of roadways by companies and contractors.

The new fees and road-use agreements were supposed to come into effect in 2020. However, during the Jan. 4, 2020 council meeting, administration reported that the changes caught many users by surprise.

Chief among those users was Millar Western, a logging and sawmilling company operating in the Whitecourt area. In fact, the company had brought its concerns directly to Woodlands mayor John Burrows.

With these issues in mind, administration recommended to council during the Jan. 7 meeting to delay implementation of the new fees until April 15, 2020. After some debate, council ultimately voted 4-3 on a motion by Fort Assiniboine/Timeu Coun. Dale Kluin to delay the fees until that date.

At the Feb. 4 meeting, Govenlock charged that Kusch had a conflict of interest when he participated in that discussion and that vote, as he works for Millar Western.

Kusch was originally elected to council by acclamation in November. He took over the seat left vacant following the resignation of Anselmo Coun. Sylva Bonnett.

Govenlock cited legislation stating that a councillor would have to excuse themselves from any discussion where they would have a pecuniary interest.

He then indicated that he believed that Kusch had been told by administration that there would be no conflict of interest if he took part in that discussion.

“I’ve seen a number of other examples of councillors … that continue to take that same advice (on various topics), but for their own personal biases, it would be wise to exempt themselves from the discussion,” he said.

“There is no question in my mind that Mr. Kusch was in a conflict of interest, and that is a breach of the Municipal Government Act.”

Govenlock also stated that delaying the road-use agreement fees had deprived the county of $100,000 in revenue, though it’s not clear how he came up with that figure.

Burrows noted the delay in road-use agreements was not done specifically for Millar Western’s benefit, but all companies entering into road use agreements with the county.

Frank confirmed that was the case. “It was brought to the attention (of council) by Millar Western, but it was an across-the-board decision for all the industry,” he said.

Burrows also pointed out that administration had indicated to council in January that they didn’t quite have the tools needed to track the number of loads being hauled by one company.

Govenlock said there was a real flaw in the system if, given more than six months notice, no one could figure out a mechanism to count the number of loads being hauled by one company.

He also pointed out that Woodlands County was not unique in creating a policy to address the damages caused by heavy trucks hauling along municipal roads.

Whitecourt East Coun. Jim Rennie said there was a similar situation like this where they sought legal opinions about whether a councillor would be in a conflict of interest if, say, they voted to lower taxes on farmland when they were a farmer.

He said they determined that wouldn’t be a conflict of interest because they would benefit only in the general sense that all farmers would.

Coun. Dale McQueen, however, said that when he worked for West Fraser full-time and then part-time, he would excuse himself from any discussion, no matter what it was about, that affected the company.

“I have to agree with Ron on this one,” he said. “In my opinion, you should have been told … what your options were.”

McQueen also pointed out that earlier in the meeting, councillors had scrapped over budgets, and delaying the implementation of these fees was leaving money on the table.

Kusch, for his part, said it was his understanding that delaying the implementation of the road-use agreement fees was for the benefit of all the smaller hauling companies, not just Millar Western.

“If it is the wish of the council that I step back from this decision, I am more than willing to step back and let it go to another vote,” he said.

Ultimately, councillors passed a motion to seek legal counsel on whether or not Kusch was in a conflict of interest, which is why the matter arose again at the Feb. 18 meeting.

Barry Kerton, TownandCountryToday.com

push icon
Be the first to read breaking stories. Enable push notifications on your device. Disable anytime.
No thanks