City of Powell River councillors have been questioned about a large increase to the city’s insurance and legal reserve.
At the April 16 committee of the whole meeting, during question period after the committee meeting, Powell River resident Sherry Burton first asked about the Squatters Creek landfill adjacent to the former Max Cameron Senior Secondary School site on Joyce Avenue. She asked, for the safety of people and their dogs, whether the city would shut down the dog park until the site has been properly investigated, and if required, remediated.
City chief administrative officer Lisa Bhopalsingh said the city has not been advised by the provincial ministry of environment to take that action at this time.
“If we are, we will advise you,” added Bhopalsingh.
Burton said she disagreed with that statement based on a site investigation order on March 25.
“I believe there is a paragraph in there that talks about safety,” said Burton. “When using a dog park that is potentially contaminated, there are parties being affected.”
Councillor and committee chair George Doubt said he thought Burton was asking for a legal interpretation and he did not believe any councillors or staff were capable of giving that.
“Staff has responded to your question as best they can,” added Doubt.
Burton said taxpayers could be open to liability if it is found the dog park is contaminated and the city has allowed people and their dogs to continue to use it. She then asked when the city would provide notice to impacted property owners regarding the site investigation order.
“I spoke to the duplex owners on Ontario Avenue this weekend who were unaware that their properties were impacted,” said Burton.
Bhopalsingh said as soon as the city is able, it will be communicating to residents.
“I ask for the community’s patience as we work through the due process with our insurers and our legal advice,” said Bhopalsingh. “To your first point about the dog park, there may be something we can do to make people aware.”
Burton then said two large lawsuits have been filed against the city, with one involving the environmental issue of Squatters Creek. She said she appreciates the city cannot discuss the lawsuits, but lawsuits require significant legal fees to defend.
“In attempting to research how legal fees are budgeted, I note that Appendix G of the five-year financial plan states the insurance and legal reserve fund will be increased 385 per cent this year, with a transfer in of $822,637, for a balance of $1,139,414,” said Burton. “In the previous three years, this fund was topped up each year by $20,000. Are legal fees covered by this fund?”
Bhopalsingh said the city has yet to determine that, because it has different options, including the city’s insurance.
Burton said she had a concern about how the public is informed about facing significant legal costs for this year and beyond. She said in a February 2024 staff report it stated reserve funds with larger 2024 ending balances are positioned to fund significant capital costs in 2025 and 2028.
“Are legal fees considered capital costs?” asked Burton.
Bhopalsingh said they are not.
Burton said as a concerned property owner and taxpayer, she did not feel the public had been properly informed and that significant legal costs are being faced this year and beyond.
“To dump in over $800,000 into reserve funds – I’m not sure I understand what it is for – is a significant hit on property taxation,” said Burton. “I feel this is not being transparent with the public on what we are facing. I wasn’t aware this fund was so huge now and I don’t really understand what it is for.”
Bhopalsingh said she would consult with chief financial officer Mallory Denniston and see what the city is able to share.
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