Hamilton councillor ‘will follow the rules’ after conflict-of-interest finding

A Hamilton councillor whose son is a police staff sergeant says she will refrain from a final vote on the police budget after a conflict-of-interest finding that docks her 15 days of pay.

Coun. Esther Pauls says she respects the integrity commissioner's probe on her participation and vote on the service's spending plan during a police board meeting in December.

I will follow the rules," the second-term Ward 7 councillor said Monday.

That means avoiding police budget talks in the future, including on Wednesday when council debates the service's proposed 6.71 per cent hike, she said.

Moreover, Pauls said she will steer clear of potential conflicts involving her son while dealing with other policing matters the board discusses. And I will do that."

But Coun. Cameron Kroetsch, who filed the complaint that led to the integrity commissioner's report, argues city politicians in Pauls's situation shouldn't be on the board at all.

I think that council has to reflect on what it means to send representatives to the police services board who can't vote on one of the most significant items: the budget."

That's what Principles Integrity, which serves as commissioner, suggests in the report before council Wednesday.

Council should be aware" that the appointment of city politicians with police relatives burdens" them with the obligation of careful diligence to recognize" conflicts as they arise.

During the police budget session, Pauls failed to recuse herself, despite having received written advice on three occasions to avoid spending plan talks altogether, the commissioner noted in the report.

It should have been apparent" to her that a proposed budgetary increase for salaries, wages and benefits would obviously" represent a pecuniary interest to her son.

But after police Chief Frank Bergen's presentation on the 6.71 per cent hike, she proceeded to lean in and participate with vigour in the debate on the global amount, vociferously endorsing and ultimately voting to support the overall increase."

Pauls said she heeded conflicting advice from councillors that pointed out her son's pay had already been settled until 2025 through collective bargaining.

I assumed ... the budget wouldn't affect him personally," she said. So it was my misunderstanding."

But the budget does indeed represent a pecuniary interest for her son, the commissioner's report asserts, and therefore a deemed interest for herself."

In fact, without being able to parse out the budget line-by-line" to discuss other matters, Pauls must recuse herself from participating in the entirety of that deliberation."

In November, during the new council's inaugural meeting, Pauls was appointed along with Kroetsch and Mayor Andrea Horwath to the police board.

At the time, Pauls told The Spectator she'd consulted the commissioner and said she'd avoid conflicts tied to her son.

When it is to do with pay, I will declare it, and that's it."

Pauls isn't the first councillor board member with close relatives in the police service, which has raised eyebrows in the past but not led to formal integrity commissioner sanctions.

MP Chad Collins as a Ward 5 councillor had a sister in the service. Before him, the late Bernie Morelli, a Ward 3 representative with a constable son, was board chair.

Under the Municipal Conflict of Interest Act, council members must disclose pecuniary interests - whether direct or indirect through parents, spouses or children.

In an email, Principles Integrity previously told The Spectator a city politician on the police board may not participate in consideration of any aspect of salary discussions which might impact their family member."

But most matters of a policy nature will have no particular impact" when it comes to pecuniary interests and won't spark conflicts of interest.

Under provincial legislation, harsher sanctions for conflicts of interest can be sought at court.

But unless removal from office is on the table, or a member who benefited financially refuses to voluntarily disgorge such profits," it's not in the public interest, Principles Integrity reasoned in the report.

As it stands, the commissioner can issue a reprimand or suspend pay for up to 90 days, but Pauls showed genuine contrition" for her actions.

Kroetsch told The Spectator he didn't support pursuing the court application, saying the circumstances didn't warrant removal from office.

In fact, the first-term Ward 2 councillor emphasized, he didn't want to file the complaint at all. But after Pauls declined to share the commissioner's initial advice to her, he had to in order to get the answer."

Pauls said she didn't want to divulge that information so shortly after the new council's inauguration. We're supposed to be in unity."

It would make better sense for the commissioner to provide advice on such matters to council as a whole, and not strictly in confidence with an individual city politician, Kroetsch suggests.

Because I think it's our job to help our colleagues avoid conflicts of interest - a collegial thing."

Pauls said she would have more to say on the matter when the commissioner's report is up for discussion at council on Wednesday.

Teviah Moro is a reporter at The Spectator. tmoro@thespec.com