Case law
Baker v Sherwood No. 159 (Rural Municipality), 2015 SKQB 301
This is a decision affirming that municipalities must closely follow legislative language when a specific power is set out. In 2014, after the province ordered an inspection and later an inquiry into allegations involving the Rural Municipality (RM) of Sherwood and the proposed Wascana Village development, the RM looked into reimbursing council members for legal expenses related to the inquiry and passed a reimbursement bylaw.
The reimbursement bylaw cited section 355 of The Municipalities Act as the source of its authority, but had key differences. For example, the bylaw used the imperative word “shall” while the act used the permissive word “may”. The bylaw also applied to all actions or proceedings arising out of any acts or omissions of council members, while the act only permitted the municipality to pay costs of defending a liability claim against a councillor. Residents took issue with the bylaw and applied to the court to quash it.
The court quashed the bylaw as it was more expansive than what the act permitted. In particular, the court noted the use of “shall” instead of “may” and that the bylaw expanded coverage beyond the act’s limit to defending a claim. The court also considered that the bylaw was adopted for the purpose of responding to the inquiry.
Kruse v Santer, 2015 SKQB 376
The court dismissed applications against three separate council members, one on the grounds that the financial interest was “insignificant” pursuant to section 143(2)(j) of the act. That council member received $544 from the village for 45 hours of work over two and a half years, filling in for a summer student opening municipal recycling bins for the recycling collecting company. The village was obligated by its recycling contract to ensure the lids were lifted for collection and the recycling company paid the village $11 an hour to do so (the village added a dollar for a full payment of $12 an hour for the work). The member filled in for the student when no one else could be found to do so.
Shellbrook (Rural Municipality) No. 493 v Muller, 2015 SKQB 346
The court dismissed the RM’s application against a council member who failed to remove himself from council discussions on legal claim he had against the RM. While the court acknowledged that a legal action constituted a “pecuniary interest” and that the member’s insistence on participating was not inadvertence or an honest mistake, it used its discretion pursuant to section 148(6)(b) of the act to decide to not remove the member as his participation had little effect and minimal inference with council business.
Issues of interest
Amendments to municipal conflict of interest legislation came into effect in November 2015. These amendments followed the inquiry report into the Rural Municipality of Sherwood No. 159, which investigated allegations of inappropriate conduct regarding a proposed development. The inquiry report concluded the RM’s reeve stood to make $58 million on land sales and profits but failed to fully disclose his interests, influenced the approval process, and attempted to conceal his involvement. The new rules require more detail from council members declaring a conflict of interest, members to file public disclosure statements on financial interests and other involvement that may affect impartiality, a province-wide, municipal code of ethics, improved language on conflicts of interest. The provincial ombudsman was also granted jurisdiction to investigate municipal officials.
In response to the Saskatchewan Federation of Labour v. Saskatchewan, 2015 SCC 4 Supreme Court decision, the province enacted new essential services legislation effective January 1, 2016. Key changes included removing the definition of essential services, establishing an independent third-party dispute resolution body, the Essential Services Tribunal, to decide what services are essential and whether an agreement interferes with strikes or lockouts, requiring binding mediation-arbitration when an agreement is found to interfere with a strike or lockout.
Also on January 1, Saskatchewan implemented a Multi-Material Recycling Program to help fund municipal residential recycling costs. Businesses supplying waste packaging and paper in Saskatchewan must pay a fee based on the amount and type of waste they supply to a not-for-profit corporation, which in turn distributes funding to municipalities or their designate. The program will deliver nearly $4 million in recycling funding in 2016 to benefit 459 local governments while encouraging waste diversion and reduction.
The province announced new boundary alteration compensation guidelines for the Saskatchewan Municipal Board.
Summary of section activity
September 22, 2015: Introducing SUMA and SARM: What We Do by Steven Dribnenki, Saskatchewan Urban Municipalities Association, and Andrew Svenson, Saskatchewan Association of Rural Municipalities. SUMA and SARM representatives discussed the role these organizations have for their municipal members and the province.
October 27, 2015: P3s, Procurement, and Provincial Partnerships: Update on Tendering and Trade Agreements by Chris Hambleton, Civil Law Division, Ministry of Justice and Theo Litowski, Constitutional Law Branch, Ministry of Justice. An update on procurement practices of the province and the New West Partnership Trade Agreement.
November 25, 2015: The Changing Environment: Managing Contaminated and Abandoned Sites under the New Environmental Code by Jeff Paterson, Manager of Environmental Code, Ministry of Environment. Update on the new Environmental Code proclaimed on June 2015, results-based regulations, and the orphaned environmentally impacted site fund.
January 26, 2016: The Role of Reeve and Lessons Learned by Neil Robertson, Q.C.. Reflections by the interim appointed reeve of the RM of Sherwood on serving on council.
February 24, 2016: The Aftermath of the Sherwood Inquiry: Conflict of Interest Issues by Honourable Jim Reiter, Minister of Government Relations. Government Relations Minister Jim Reiter discussed the inquiry into allegations involving the RM of Sherwood and resulting legislative amendments.
March 22, 2016: Dealing with Self-Represented Litigants and Sovereign Persons by Tom Irvine, Ministry of Justice, Constitutional Law Branch, and Chrystal Atchison, City Solicitor’s Office, City of Regina. Discussion on municipal and provincial encounters with difficult self-represented litigants and the sovereign persons’ movements.
Steven Dribnenki
Chair, Public Sector and Municipal Law Section – CBA Saskatchewan